<p>Perth’s new apartment market recorded its strongest quarter of sales since Q4 2021, with 412 apartments sold in Q1 2026 and a record quarterly sold value of $537 million, according to Urbis’ latest Apartment Essentials results.</p>

<p>Urbis said the March quarter result reflects strong, highly product‑specific demand across both ends of the market, from more attainable projects delivering at scale, through to premium stock being absorbed by equity‑rich downsizers.&nbsp;</p>

<p>David Cresp, Partner at Urbis, said the key story in Perth is not demand, it is the market’s ability to convert demand into delivered housing.&nbsp;</p>

<p>“This is the strongest sales quarter since Q4 2021, and it reinforces that demand in Perth is real and it’s local,” David Cresp said. “But the task now is delivery, turning that demand into projects that can actually be built and completed.”&nbsp;</p>

<p>[smartcode_project:default project_id=110291 project_image_fid=302785]</p>

<h2>Affordable product leads, premium demand remains resilient</h2>

<p>Sales in Q1 were led by more affordable projects, with The Boulevard (SKS Group) recording 115 sales in the quarter, the presentation noting this is only the second time a single project has surpassed 100 quarterly sales. The project was able to offer more affordable housing product right next to a train station.&nbsp;</p>

<p>Palmyra West (Finbar) also delivered strong results with 28 sales in Q1, following 84 sales in Q4, with an average price of under $800,000, underscoring depth of demand for well‑located, attainable new stock.&nbsp;</p>

<p>At the premium end, Urbis said downsizer demand is continuing, with the results highlighting Romeo (Applecross, Finbar) recording 75 sales and reaching almost 50% sold in one quarter.</p>

<p>Jual (Shenton Park, Celsius Property) also posted a strong quarter with 28 sales, reaching 39% sold in one quarter.</p>

<p>Urbis noted that Perth apartment demand is not speculative, not investor‑led, and not uniform, describing it as localised, often equity‑driven and highly product‑specific, a pattern reflected in the polarisation between strong “attainable” performers and premium downsizer product.&nbsp;</p>

<p>[smartcode_project:default project_id=148957 project_image_fid=364102]</p>

<h2>Prices underpinned by costs, and the delivery risk is growing</h2>

<p>Urbis said pricing pressure is cost not demand‑driven: construction costs and delivery risk are now a central constraint, with the results noting build costs remain elevated and volatile, and that energy, fuel and labour uncertainty weigh on feasibility.</p>

<p>David Cresp said a growing challenge for private Build‑to‑Sell developers is simply securing a builder in the current environment.</p>

<p>“Developers are really feeling the pressure from a building market that was operating at capacity and securing a builder is challenging,” David Cresp said, adding that even where a builder can be secured, “trying to get to the price that makes the development financially viable is incredibly challenging in the current market.”&nbsp;</p>

<p>Urbis’ broader WA commentary also notes that industry remains at or above capacity with lot and housing creation, and that many builders are limiting new sales to manage stretched workforces and fixed‑price contract pressures, conditions that flow directly into apartment feasibility and delivery timing.</p>

<p>[smartcode_project:default project_id=108869 project_image_fid=317905]</p>

<h2>Supply: improving later, but still constrained, and Perth lags eastern benchmarks</h2>

<p>While near‑term supply remains constrained, Urbis’ forecast shows completions lifting “Supply is forecast to be back above 1,500 apartments per annum for the first time since 2019”, with 1,775 completions forecast for 2026, and volumes remaining above that level over the following years.&nbsp;</p>

<p>Looking further ahead, completions are forecast to reach 2,500 in 2028, with the report noting 32% of that total is social/affordable, reflecting the role of government‑supported delivery in rebuilding the pipeline.&nbsp;</p>

<p>However, Urbis said Perth remains behind comparable markets on pipeline scale. In a national comparison of projects under construction, the report shows under construction Perth Build‑to‑Sell (BTS) at 3,446 apartments versus the Gold Coast at 7,922. Mr Cresp said “The challenge for Perth is how to we grow the delivery pipeline”.</p>

<p>Urbis’ conclusion is that Perth’s market is increasingly defined by product discipline and delivery certainty, with the research identifying “delivery certainty is key” and calling out builder risk and procurement models as core success factors, alongside “timing and staging”.&nbsp;</p>


Joel Robinson

Perth apartment sales hit strongest pace since late 2021 as builder capacity tightens

<p><a href="https://www.apartments.com.au/developers/sammut-developments">Sammut Group</a> has secured development approval for its latest Brisbane apartment project, marking the Sydney developer’s next step in expanding its Queensland pipeline following the success of its debut Gold Coast development, Coast.</p>

<p>The approved project at <a href="https://www.apartments.com.au/new-apartments/44-glen-road-toowong-qld-4066">44 Glen Road, </a><a href="https://www.apartments.com.au/developments/toowong-qld-4066">Toowong</a> will deliver a 15-storey riverfront apartment building with 42 residences, significantly increasing the scale of the site’s previous approval for a smaller luxury scheme. Designed by Bureau^proberts, the development will comprise a mix of predominantly four-bedroom and two-bedroom apartments positioned to maximise Brisbane River and city views.</p>

<p>Sammut Director Julian Sammut said the group had been actively searching Brisbane for several years before identifying Toowong as the right fit.</p>

<p>“Brisbane was the right step for Sammut,” Sammut said.</p>

<p>“With the success of Coast we thought we should definitely look to do more in Queensland alone. We then pushed up to look at Brisbane. We've been looking for I'd say two to three years actually and it was hard to find the right location.”</p>

<p><img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-23%20at%203.27.14%E2%80%AFPM.png?VersionId=dYAVIL7qdcGA8ojvkslSrLjczXFejSSx" /></p>

<p>Sammut said suburbs including New Farm and Teneriffe were considered before the group ultimately focused on Toowong due to its strong downsizer demographic and limited supply of developable riverfront land.</p>

<p>The site was acquired off-market after what Sammut described as a lengthy negotiation and planning process, with the developer pursuing an uplift to the original approval.</p>

<p>“We are DA approved now which is very exciting,” Sammut said.</p>

<p>“We've had our change approval come through and we've obviously doubled the height, 15 storeys plus rooftop. We've got 42 amazing apartments that are going to be coming to market soon.”</p>

<p><img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-23%20at%203.27.26%E2%80%AFPM.png?VersionId=ohkRkY0dIZlqdfME2EZePsCQavRiBadE" /></p>

<p>Bureau^proberts said the design responds to Toowong’s evolving urban character, balancing contemporary apartment living with the area’s established residential identity.</p>

<p>“A place where traditional Queensland living has taken place for centuries; Toowong is seeing a shift of contemporary influence, commercial and retail hubs mixed with well-considered residential offerings – all the while maintaining its character and charm,” the architect noted in planning documents submitted to Brisbane City Council.</p>

<p>The architecture practice said the project’s form was shaped by its riverfront setting, flood considerations, neighbouring building scales, and view corridors.</p>

<p>“They said the mix of four and two-bedroom apartments capture the ‘fundamental qualities of Queenslander living,’ translated into the context of a contemporary subtropical building.”</p>

<p>The development sits just off Coronation Drive within walking distance of Toowong’s retail precinct and the upgraded Regatta ferry terminal, while also benefiting from proximity to the incoming green bridge connection to West End. Sammut said the accessibility and amenity offering were central to the site’s appeal.</p>

<p>The approval adds to growing residential activity along the Toowong riverfront, joining nearby projects including Consolidated Properties’ Monarch Residences and Spyre Group’s ARC Residences.</p>


Sammut secures approval for debut Brisbane apartment development in Toowong

<p>Developer Lanevick is heading back into Sydney’s apartment market after focusing more heavily on the luxury townhouse and terrace sector in recent years.</p>

<p>Lanevick, founded and directed by Steve Maroun, is expecting to receive approval in the coming months for a new apartment development in Gladesville, with the aim to launch it to the market later this year.</p>

<p>The 51-apartment project, designed by Studio Johnston, will comprise a mix of one-, two-, and three-bedroom apartments positioned toward the Hunters Hill downsizer market.</p>

<p>“Traditionally it’s been difficult for people in that market to downsize because there just hasn’t been the right product available,” Maroun said.</p>

<p>“We’re targeting buyers who might have 30 to 40 per cent of their house value sitting in the bank after downsizing.</p>

<p>“They still want good spacious entertaining areas, they still want quality design, but they also want flexibility and the ability to enjoy life a bit more after working hard for a long time.”</p>

<p>The project sits near Boronia Park and within close proximity to the Parramatta River foreshore, an area Maroun says offers more of a Hunters Hill lifestyle than a traditional apartment precinct.</p>

<p>“From a lifestyle perspective, it’s really more Hunters Hill than Gladesville,” Maroun said. “You’re close to the foreshore, close to parklands, and still connected back into the village precinct.”</p>

<p>From level four and above, apartments will capture water views&nbsp;toward Sydney Harbour. Communal amenity will include rooftop entertaining areas, wellness spaces, and a gym tailored toward owner-occupier buyers.</p>

<p>“We’ve really designed these apartments around that buyer coming from the Hunters Hill LGA and what they’re actually looking for in their next chapter.”</p>

<p>The proposed development has also been designed to respond to the changing character of the broader Gladesville town centre, where a growing number of mixed-use and residential proposals are expected to emerge over the coming years.</p>

<p>“Gladesville presented a rare opportunity to deliver a genuinely design-led residential project within an evolving lifestyle precinct, just moments from the growing Gladesville town centre, and we’ve approached the project with a strong focus on architecture, liveability and long-term community value,” Maroun said.</p>

<p>Maroun said Lanevick saw a first-mover advantage within the precinct as planning controls continue to evolve to accommodate greater housing density.</p>

<p>“We think there’s a real opportunity there that hasn’t really been serviced properly yet,” he said.</p>

<p>“There’s going to be a broader evolution of the whole Gladesville village precinct over time, particularly with more activation and mixed-use outcomes.”</p>

<p>The Venus Street proposal will include a commercial and retail component at ground level designed to contribute to that evolving streetscape activation.</p>

<p>“A big part of the thinking was how do you activate that area properly and create more vibrancy and amenity, which is what Hunters Hill has been looking for,” Maroun said.</p>

<p>Lanevick’s focus since 2020 has largely been on smaller-scale luxury townhouse and terrace developments. The developer recently completed Royale Randwick, also designed by Studio Johnston, where prices reached $3.65 million. The project was featured in the UDIA NSW 2026 Professional Development Prospectus and was also named a finalist for Development of the Year.</p>

<p>&nbsp;</p>


Lanevick to cater for Hunters Hill downsizers with new Gladesville apartment development

<p>Property developer One Living, backed by former Macquarie banker turned investment manager Chris Green’s investment firm, has unveiled plans to bring more institutional capital into housing to help address the national supply crisis.</p>

<p>The New York-based investor has focused his firm, GreenPoint Partners, on addressing the supply shortage hitting middle market housing in Australia.</p>

<p>It is backing the new One Living business to develop more than 1000 units along the eastern seaboard. The new firm is starting with a development on Mona Vale Road, on the border of Mona Vale and Pymble, in Sydney’s Northern Beaches, with around 140 apartments planned. They are eyeing off more sites across the city.</p>

<p>With cost pressures rising in the industry, One Living’s model is to be a vertically integrated developer-builder, so it can respond directly to the housing gap by removing the cost inefficiencies embedded in traditional residential delivery.</p>

<p>“We are building a platform designed to operate at scale and starting in a market where there’s a clear need for quality, attainable housing,” One Living joint managing director Joseph Scuderi said.</p>

<p>“It’s that missing middle – it’s that attainable end of housing… that’s what most Australians invest into and what Australians can actually afford.”</p>

<p><img alt="Mona Vale" data-entity-type="file" data-entity-uuid="798dfa93-4941-4db6-a696-31e9dc18e81c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.31.50%E2%80%AFPM.png?VersionId=mKBqi5C_DmeiXS.AtJkcR8LQIxqCqmFi" /></p>

<p>GreenPoint Partners brings years of experience assembling and scaling real estate operating businesses across major markets. And Green sees a big opportunity in Australia.</p>

<p>“For its size, sophistication and importance to the community, Australia’s living sector has remained largely under-institutionalised, which represents significant opportunity,” Green said. “GreenPoint identified that gap, assembled the right team, and is backing One Living to build a platform that is aligned to market needs.”</p>

<p>Green said being a builder-developer would give the company the capacity and flexibility it required to deliver reasonably-priced homes.</p>

<p>“We want it to be at that attainable level; not super high end luxury but at that attainable level,” he said.</p>

<p><img alt="Mona Vale" data-entity-type="file" data-entity-uuid="74a5344a-4b26-4d4a-ada3-056b1220be77" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.32.15%E2%80%AFPM.png?VersionId=vY8hXHO4reBMdO8ZXMWCNtGZJofUPQ3j" /></p>

<p>&nbsp;</p>

<p>One Living will undertake a component of affordable housing in its schemes, which it will own and operate, and it could also run build-to-rent on some sites.</p>

<p>Green praised local policy settings.</p>

<p>“The NSW government is being very supportive, strategic and pragmatic in terms of how do we generate more supply of housing,” he said. “We think it’s actually positive for development and the bit that’s been lacking at that attainable level is that it’s lots of relatively small private developers, whereas we want to create an institutional platform.”</p>

<p>One Living is also&nbsp;looking at high-density projects and could take on more institutional funding in the future.</p>

<p>“The way we will be able to achieve economies of scale is through size,” Green added.</p>


One Living enters Sydney's new apartment market with Northern Beaches site acquisition

<p>It's been several years since there's been an opportunity to buy a brand new townhome in Melbourne's coastal suburb of Mordialloc. Even apartment developments in recent times have been few and far between in the area.</p>

<p>Local developer LDS Property identified the gap in new housing, securing a site on White Street, directly opposite&nbsp;Woodlands Golf Club Mordialloc. They've recently launched&nbsp;<a href="https://www.apartments.com.au/new-townhouses/wm-residences-mordialloc-102-white-street-mordialloc-vic-3195">WM Residences</a>, just 13 townhouses which they have already started building.</p>

<p>Projects by Buxton Director Heath Thompson, who is selling WM Residences, says the townhouses x that perfect middle ground be</p>

<p data-end="683" data-start="511">"Mordialloc residents have had limited options to downsize within the suburb, often forcing them to look elsewhere despite long-standing ties to the area," Thompson says.</p>

<p data-end="882" data-start="690">"With very little comparable new supply coming to market, projects like WM Residences are well placed, particularly as buyers look to capitalise on current conditions amid constrained supply."</p>

<p data-end="882" data-start="690">[smartcode_project:default project_id=134646 project_image_fid=6109]</p>

<p>The development, designed by regarded architecture firm&nbsp;<a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a>,&nbsp;adopts a deliberately restrained architectural approach, focusing on simplicity, durability and liveability rather than overt design gestures.</p>

<p>The boutique scale is central to the offering. With only 13 three-bedroom residences, each home is configured to prioritise functional layouts and everyday use, supported by private terraces and secure two-car garages.</p>

<p>Ewert Leaf’s design response leans into a calm, neutral material palette. Interiors are defined by oak flooring, white walls and soft finishes, creating a consistent and understated backdrop. The approach avoids trend-driven detailing in favour of longevity, with an emphasis on natural light and spatial clarity.</p>

<p>[smartcode_project:default project_id=134646 project_image_fid=6110]</p>

<p>Beyond aesthetics, the homes are designed to meet contemporary performance expectations. Each residence targets a minimum 6-star energy rating, incorporating double glazing, comprehensive insulation and all-electric Bosch appliances.</p>

<p>The project’s location supports a walkable coastal lifestyle, sitting within close proximity to Mordialloc’s foreshore, Main Street retail strip and the train station. Local cafés and dining venues, including Suburbia Deli and Hendriks Café, are within a short walk, reinforcing the area’s established neighbourhood character.</p>

<p>[smartcode_project:default project_id=134646 project_image_fid=6116]</p>

<p data-end="247" data-is-last-node="" data-is-only-node="" data-start="0">While <a href="https://www.apartments.com.au/developments/mordialloc-vic-3195">Mordialloc</a> is often defined by its beach and pier, the project taps into other areas of day to day living, offering easy access to local food, casual dining and transport, rather than positioning itself purely as a lifestyle retreat.</p>

<p>WM Residences reflects a continued trend across Melbourne’s coastal suburbs towards smaller-scale, design-led townhouse developments, particularly on infill sites where proximity to amenity is already established.</p>

<p>With construction commenced prior to its market entry, the project aligns with a growing preference among buyers for developments with visible progress and defined delivery timeframes.</p>

<p>[smartcode_project_cta:default project_id=134646]</p>


WM Residences fills gap in Mordialloc townhouse market

Sydney

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<p>The latest CoreLogic Pain &amp; Gain report reveals the average profit on resale has increased to $262,672 while average loss was $71,529 over September 2016 quarter.</p>
<p>CoreLogic's latest <em>Pain and Gain Property Report</em> delivers market analysis for residential property resales over the September 2016 quarter.</p>
<p>It compares the most recent sale price to its previous sale price in order to determine the magnitude of profits made, or losses incurred by a vendor when selling a home.</p>
<p>Sydney recorded the highest value of profit-making resales of all regions in Australia over the quarter, earning an overall profit of $6.22 billion in the three month period.</p>
<p>However, the most dramatic change over the year occurred in Perth and Darwin where the instances of loss on resales almost doubled.</p>
<p>Meanwhile Tasmania’s Hobart recorded a lower proportion of dwellings resold at a loss.</p>
<p>Adelaide was one of only three capital cities to record a lower loss rate this quarter while Melbourne now has the lowest proportion of loss-making house resales of all capital cities at 2.1%.</p>
<p>In Brisbane, the number of loss-making unit resales was more than double that of houses.</p>
<p><strong>Key Findings:</strong></p>
<ul>
<li>$477.9 million in realised losses form resales compared to $17.0 billion in realised profits.</li>
<li>Average loss was $71,529 while the average profit was significantly higher at $262,672.</li>
<li>9.4% of national dwellings resold over the third quarter of 2016 transacted for less than their previous purchase price and slightly higher than the 9.3% over the June 2016 quarter.</li>
<li>Compared with the same quarter last year, the proportion of loss making sales shifted 1.3 percentage points higher, continuing the trend towards more loss making sales across the Australian housing market.</li>
<li>By proportion, loss making sales reached a recent low point over the three months to November 2016 when 7.9% of all resales made a loss.</li>
<li>Over nine out of every 10 homes resold for more than their previous purchase price over the September 2016 quarter.</li>
<li>Capital city housing markets recorded lower proportions of loss-making resales than regional areas of the country.</li>
<li>Regional homes resales in coastal and lifestyle markets continued to trend lower in the coastal and lifestyle markets.</li>
<li>Losses climbing in most regions linked to the resources sector.</li>
</ul>
<p>According to Cameron Kusher, head of research at CoreLogic, of worthwhile note is that across Australia, those homes that resold at a loss had a typical length of ownership of 6.1 years for houses and 6.5 years for units.</p>
<p>Across all gross profit sales realised, the typical length of ownership was recorded at 9.1 years for houses and 7.6 years for units.</p>
<p>He said the latest results highlight that ownership of property, whether for investment or owner occupier purposes, "should be seen as a long-term investment”.</p>
<p>“Although the occurrence of losses rose over the quarter, in most cites the instances of homes reselling at a loss is low with the exceptions being Perth where almost two out of every five dwellings resold at a loss and Darwin where approximately three out of every 10 resales was at a loss over the quarter.”</p>
<p><strong>Across the individual capital cities, the proportion of loss-making resales over the September 2016 quarter were recorded at:</strong></p>
<ul>
<li>Sydney 2.3% compared to 1.7% Sept 2015.</li>
<li>Melbourne 4.9% compared to 4.9% Sept 2015.</li>
<li>Brisbane 8.5% compared to 7.3% Sept 2015.</li>
<li>Adelaide 7.2% compared to 9.0% Sept 2015.</li>
<li>Perth 19.6% compared to 10.8% Sept 2015.</li>
<li>Hobart 8.4% compared to 12.0% Sept 2015.</li>
<li>Darwin 30.7% compared to 17.4% Sept 2015.</li>
<li>Canberra 12.2% compared to 11.4% Sept 2015.</li>
</ul>
<p>According to Kusher, by comparing individual city figures to those of one year ago, it provides insights into the strong and improving housing markets and those which have weakened.</p>
<p>He said: “The cities with the dramatic changes over the year have been Perth and Darwin where the instances of loss have almost doubled and Hobart where there have been far fewer dwellings reselling at a loss”.</p>
<p>“In most instances, houses virtually always show a lower proportion of loss-making resales than units.</p>
<p><span>“</span>The likely reason for this is that the value of a house is largely derived from the land and its location. Also, typically houses have increased in value at a faster rate than units.</p>
<p><span>“</span>Over the September 2016 quarter, 8.0% of houses resold at a loss nationally compared to 12.7% of units.”</p>
<p>Across the combined capital cities, the report shows that houses were almost half as likely to be resold at a loss compared to units over the September 2016 quarter, with the figures recorded at 5.6% and 10.2% respectively.</p>
<p>Both houses and units have seen the proportion of loss-making resales trend higher over the past year however, units have trended higher at a more rapid pace than units.</p>
<p>This data set is available from 1994 and over that period, units have never recorded a lower proportion of loss-making resales than houses.</p>
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jchancellor-FAypfDUnLy

Sydney secures $6.2 billion of profit-making property resales: CoreLogic

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<p>A fully leased office/retail building close to Bondi Junction in Sydney has sold for nearly $17 million through CBRE.</p>
<p>It's been bought by interests associated with Brent Maksimovich.</p>
<p>The property at <a href="https://www.realcommercial.com.au/property-offices-nsw-woollahra-502009110" target="_blank">156 Edgecliff Road</a> in Woollahra went on the market last year.</p>
<p>According to the agents, it sold for a “record yield” over and above the vendors expectations.</p>
<p>The corner property was sold via a public expressions of interest campaign and the final deal was struck at $16,970,352, according to RP Data.</p>
<p>The building has five established tenants and generates net income of $950,000 p.a. Its net lettable area is 1,125.7 sqm with an additional 180 sqm of FSR available subject to council approval.</p>
<p>Designed by Tzannes, the building was completed in December 2010.</p>
<p>The selling agents were Nicholas Heaton and Scott Gray-Spencer of CBRE.</p>
<p>It previously exchanged hands in 2013 for $5,750,000, according to RP Data.</p>
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jonathanchancellor-7SQnKwU6yx

Fully leased commercial building in Sydney's Edgecliff sells for close to $17 million

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<p>Multiplex has completed M&amp;L Hospitality’s makeover of 161 Sussex Street in Sydney's Darling Harbour.</p>
<p>The former Four Points by Sheraton Sydney was rebranded recently to Hyatt Regency Sydney, marking the Hyatt Regency’s return to Sydney.</p>
<p>The redevelopment included refurbishment of the existing hotel, a new 3,667 square metre convention centre and a 25-level tower including 13 new hotel levels and 10 levels of A-grade high rise commercial office space.</p>
<p>The additional 25-storey tower has added 222 new guest rooms to what was already Australia’s largest hotel, bringing the total number of rooms to 892.</p>
<p>A lot of construction took place over the top of the Western Distributor Freeway, a major feeder road from the Sydney CBD to the Sydney Harbour Bridge.</p>
<p>David Ghannoum, regional managing director at Multiplex, said a big challenge was building over an operating freeway and in a live hotel environment and care was taken to complete the works with minimal disruption to the 80,000 vehicles using the Western Distributor daily and the 600-700 guests staying at the hotel each night.</p>
<p>Work started in December 2014 and took two years to finish.<br> </p>
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j.ballantyne1990-6AQqhLzZaK

Darling Harbour sees return of Hyatt Regency to Sydney

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<p>Sydney continues to have the highest home value changes over the last 12 months, according to CoreLogic’s latest report.</p>
<p>The property data firm says that over the 12 months Sydney’s home value has increased by 15.4%.</p>
<p>It is slightly down on the 15.5% as at December 31.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/01/24/Capital%20city%20home%20values.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/01/24/Capital%20city%20home%20values.jpg" alt=""></p>
<p> </p>
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Sydney home values grow 15.4% over last 12 months: CoreLogic

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<p><span>GUEST OBSERVER</span></p>
<p><span>The Urban Taskforce acknowledges the incredible position that Mike Baird has achieved for the state of NSW.</span></p>
<p><span> The next Premier for NSW must be someone who continues the drive for growth with infrastructure </span><span>that has been the hallmark of Mike Baird’s term.</span></p>
<p><span>Mike Baird as NSW Premier has been a great champion of the growth of metropolitan Sydney with a </span><span>commitment towards delivering badly-needed public tr</span><span>ansport networks throughout Sydney. </span></p>
<p><span>Sydney is Australia’s global city and as a result is must develop into a well</span><span>- connected metropolis, with additional density, housing and services located around a metro rail network. </span><span>It is crucial the new Premier continue this approach to ensure Sydney’s continued success as a growing, prosperous global city with a high standard of living.</span></p>
<p><span>The alignment of infrastructure, transport and urban planning will be critical to the sh</span><span>ape of the new </span><span>cabinet once a new Premier has been appointed.</span></p>
<p><span>While the urban growth of Sydney is clearly a priority for the state, the recent Orange Bye</span><span>-election demonstrates that the NSW Government must ensure that the rural and regional areas are incorporated </span><span>into the government’s agenda.</span></p>
<p><span>According to many economic commentators NSW is starting see some head winds come its way. </span><span>The reduction in red tape and providing a planning system that gives certainty but also promotes innovation and investment in the built environment are now more than ever essential to our s</span><span>tate’s economic </span><span>success.</span><span><br></span></p>
<p><span><em>Chris Johnson is chief executive officer of property development industry group Urban Taskforce and can be contacted <a href="https://www.urbantaskforce.com.au/index.php?option=com_content&amp;view=article&amp;id=97&amp;Itemid=126#.Vdaart55dFI" target="_blank">here</a>.</em></span></p>
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Next NSW Premier must continue to drive Sydney’s growth: Chris Johnson

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<p><span>Residential vacancy rates in Inner Sydney fell 0.2 percent to hold at 1.8 percent over the Christmas period, according to the December 2016 REINSW Vacancy Rate Survey.</span></p>
<p><span>REINSW President John Cunningham said the December 2016 </span><span>REINSW Vacancy Rate Survey </span><span>was at 2.0 percent, up 0.2 percent for Sydney.</span></p>
<p><a href="https://www.propertyobserver.com.au/images/2017/01/18/Screen%20Shot%202017-01-18%20at%209.22.01%20AM.png" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="https://www.urban.com.au/images/2017/01/18/Screen%20Shot%202017-01-18%20at%209.22.01%20AM.png" alt=""></span></p>
<p> </p>
<p><span>“Middle Sydney and Outer Sydney saw rises of 0.6 percent and 0.2 percent to 2.1 percent and 2.0 percent respectively, while Inner Sydney bucked the trend to fall 0.2 percent at 1.8 percent," he said.</span></p>
<p><span>“The changes seen to vacancy rates in Sydney and right across the state reflect the holiday period, we anticipate a flurry of activity as the year progresses,” Mr Cunningham said.</span></p>
<p><a href="https://www.propertyobserver.com.au/images/2017/01/18/Screen%20Shot%202017-01-18%20at%209.26.14%20AM.png" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="https://www.urban.com.au/images/2017/01/18/Screen%20Shot%202017-01-18%20at%209.26.14%20AM.png" alt=""></span></p>
<p> </p>
<p><span>"The Hunter rose 0.2 percent to 2.2 percent led by an increase in Newcastle of 0.7 percent to 2.4 percent. </span></p>
<p><span>"In the Illawarra, vacancy rates fell 0.3 percent at 1.3 percent with Wollongong down 0.5 percent at 1.5 percent. </span></p>
<p><span>"Across regional areas, Albury fell 0.1 percent at 3.3 percent, New England fell 0.5 percent at 3.7 percent and South Coast slipped 0.2 percent at 1.2 percent."</span></p>
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Inner Sydney Christmas vacancy rates slide

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<p>GUEST OBSERVER</p>
<p>Planning approval of the Sydney Metro from Chatswood to Sydenham is great news, however there is a lack of certainty for development around the stations and areas around the rail corridor.</p>
<p>The planning approval of the Sydney Metro including tunnels under the harbour demonstrates the commitment of the Baird Government to an extensive metro network across metropolitan Sydney.</p>
<p>Along with the Metro West line between Sydney and Parramatta the Metro network sets the framework for extensive areas of urban renewal around the new stations, which will help boost must-needed housing supply.</p>
<p>The Urban Taskforce is concerned, however, that planning for the urban renewal of areas around the rail corridor is taking far too long.</p>
<p>Developers have no certainty and cannot proceed with housing projects as strategic land use planning around the metro is lagging far behind.</p>
<p>An example is the Sydenham – Bankstown Urban Renewal Corridor Strategy.</p>
<p>The draft Strategy was exhibited by the Department of Planning in October 2015, however rezoning proposals for areas along the Corridor are on hold until local councils prepare detailed planning controls.</p>
<p>This could take an additional 2 years, even more if the council is subjected to an amalgamation, before the local environmental plan is complete.</p>
<p>Developers simply cannot sit on land for that long with no outcome.</p>
<p>Until planning around these corridors comes up to speed, the NSW Government must fast track plans around metro stations, or develop a process where land owners and developers can obtain a development approval or rezoning in significantly less than 3 years.</p>
<p>The Department of Planning’s Guide to Preparing Planning Proposals issued in August 2016 states that the rezoning proposals have merit ‘if they are consistent with relevant district, corridor or precinct plans applying to the site, including any draft regional, district or corridor plans released for public comment.’</p>
<p>It seems that the Greater Sydney Commission Planning Panels are not following this guide.</p>
<p>Boosting Sydney’s housing supply is absolutely critical if we are to alleviate the housing affordability crisis.</p>
<p>It is an excellent time to fast-track planning proposals for new housing around proposed metro rail stations.</p>
<p>Chris Johnson is chief executive officer of property development industry group Urban Taskforce and can be contacted <a href="https://www.urbantaskforce.com.au/index.php?option=com_content&amp;view=article&amp;id=97&amp;Itemid=126#.Vdaart55dFI" target="_blank">here</a>.</p>
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Urban renewal process around Sydney Metro taking far too long: Urban Taskforce

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<p>GUEST OBSERVER</p>
<p>Demand for property on realestate.com.au rocketed in 2016, with the REA Group Property Demand Index increasing by 16.2 percent across the year, according to the REA's latest property demand index.</p>
<p>After peaking in October and November, demand for property dropped slightly to close out 2016, with the index falling 6.6 percent nationally in December.</p>
<p>The easing of demand nationally suggests that the record price rises in Sydney and Melbourne last year are likely to be more subdued as we move further into 2017.</p>
<p>The key drivers of this demand decline are likely due to Australian banks increasing interest rates for buyers independently of the Reserve Bank of Australia in late November and early December and continuing affordability issues across the Eastern seaboard.</p>
<p>Given the RBA has indicated that it may still cut the cash rate further, the banks have sent strong signals that they will respond by not passing cuts onto borrowers and we expect out of cycle interest rate rises by banks to continue.</p>
<p>This will be a key issue for borrowers this year, especially first home buyers and investors, with access to cheap money becoming more difficult.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/01/04/REA-1.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/01/04/REA-1.jpg" alt=""></p>
<p>The states which saw the largest declines in demand in December were New South Wales and Victoria. Continued concerns about apartment over supply are starting to cause concern in these markets with demand for apartments dropping by more than 7% in both states.</p>
<p>Western Australia and Northern Territory remain the lowest in-demand markets on realestate.com.au, however Western Australia’s demand index was relatively stable and both states saw an increase in apartment demand.</p>
<p>The result suggests that barring any surprising negative economic news or changes to the supply outlook in Western Australia, the bottom of the housing market could be close.</p>
<p>Tasmania continues to see elevated levels of demand and is now the strongest demand market in Australia. Relative affordability is likely a key factor driving interest.</p>
<p>National Demand for property dropped by 6.6% on realestate.com.au in December, down from the peak levels achieved in October and November.</p>
<p>Victoria saw the largest decline over the month, driven by low levels of demand for both houses and apartments.</p>
<p>New South Wales followed closely, suggesting the housing boom may be over, or at the very least slowing quickly, in both Sydney and Melbourne.</p>
<p>Despite December declines, Tasmania, New South Wales and Victoria continue to see the highest levels of demand in Australia with Western Australia and Northern seeing the lowest.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/01/04/REA-2.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/01/04/REA-2.jpg" alt=""></p>
<p>Victoria and New South Wales saw the largest decrease in people looking to buy on realestate.com.au in December. Affordability remains a the key driver in both states</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/01/04/REA-3.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/01/04/REA-3.jpg" alt=""></p>
<p>Housing demand on realestate.com.au declined in all states, however the largest drops were in New South Wales and Victoria. Tasmania and Western Australia saw the smallest declines.</p>
<p>Tasmania, Victoria and New South Wales continue to see the highest level of demand for houses.</p>
<p>Despite declining in December, the index for housing is still well up in all states for the 2016 calendar year.</p>
<p>Western Australia is the exception, where conditions have worsened over the past 12 months, however the bottom of the market appears to be close.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/01/04/REA-4.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/01/04/REA-4.jpg" alt=""></p>
<p>Apartment demand dropped by 5 percent nationally in the month to December, performing marginally better than houses over the same time period.</p>
<p>Demand for apartments nationally on realestate.com.au remains high, the third highest point recorded.</p>
<p>Concerns of apartment over-supply are impacting demand in New South Wales and Victoria, with these states experiencing the largest declines in December 2016.</p>
<p>Surprisingly, demand for apartments increased in the relatively weak markets of Western Australia and Northern Territory in December.</p>
<p><em>Nerida Conisbee is the Chief Economist at <a href="https://www.realestate.com.au/buy" target="_blank">REA Group</a>.</em></p>
<p><span> </span></p>
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Price growth in Sydney and Melbourne forecast to be subdued in 2017: REA's Nerida Conisbee

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<p>Sydney has had a slight softening in the growth in home values, according to CoreLogic's opening 2017 data report.</p>
<p>The property data firm says that Sydney saw an increase of 15.1 percent in home values over the last 12 months. It came in at 15.5 percent during 2016.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/01/09/Capital%20city%20home%20values.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/01/09/Capital%20city%20home%20values.jpg" alt=""></p>
<p>Melbourne ranked second in increases over the last 12 months while Perth suffered a decline of 4 percent plus in home values.</p>
<p>However Sydney saw a mild 0.2 percent softening during the first week of 2017.</p>
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Sydney prices start 2017 softer after stellar 15.5 percent increase in 2016: CoreLogic

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<div>There are certainly some weird ideas out there about property supply.</div>
<div> </div>
<div>Take the example of Pyrmont, if only because I lived there for many years, and as a property owner in the suburb, it's one of the locations I know pretty well. </div>
<div> </div>
<div>From time to time I've heard it said that suburbs like Pyrmont have "too much supply".</div>
<div> </div>
<div>I guess I can kind of see why you might think that if you'd just landed in Sydney, for with about 13,000 residents jammed in to one tight square kilometre, it's the densest suburb in Australia.</div>
<div> </div>
<div>Thing is, the bit of the suburb where people want to live was developed about 25 years ago now!</div>
<div> </div>
<div>There's been very little of note lately, though. </div>
<div> </div>
<div>From memory that was a little unit development on Pyrmont Bridge Road, and there's been a bit going on at Ultimo. </div>
<div> </div>
<div>Oh, and then there was Lend Lease's 391 apartments in the new 40-storey tower at Darling Square, although they sold out in, what, five hours?</div>
<div> </div>
<div>If you were to fast forward to a decade's time I expect that Wentworth Park and White Bay will be developed with apartments, probably the fish markets too one day, while if Mirvac get their way there will be a commercial/residential tower on top of what is now the Harbourside tourist trap.</div>
<div> </div>
<div>These types of developments can take years to become a reality, though. </div>
<div> </div>
<div>At the end of the day, there isn't an oversupply issue here because more and more people want to live in the area by the year.</div>
<div> </div>
<div>Ultimately there are shedloads of people like me who'd enjoy a lazy 5-minute stroll into the city in the morning instead of driving through miles of petroleum fumes and vehicular logjam. </div>
<div> </div>
<div>After accounting for the inevitable frictional vacancies, vacancy rates in Pyrmont are essentially zero. </div>
<div> </div>
<div><a href="https://4.bp.blogspot.com/-xBc8yaCwwn0/WG7AugNs4OI/AAAAAAAAhDw/tWnNA8e6WNEx3TzLnbLqoU-3wbKYLHcVgCLcB/s640/PYMRONT.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<p><a href="https://4.bp.blogspot.com/-xBc8yaCwwn0/WG7AugNs4OI/AAAAAAAAhDw/tWnNA8e6WNEx3TzLnbLqoU-3wbKYLHcVgCLcB/s1600/PYMRONT.jpg" target="_blank"><img src="https://4.bp.blogspot.com/-xBc8yaCwwn0/WG7AugNs4OI/AAAAAAAAhDw/tWnNA8e6WNEx3TzLnbLqoU-3wbKYLHcVgCLcB/s640/PYMRONT.jpg" width="640" height="340"></a></p>
<div>Source: SQM Research</div>
<div> </div>
<div>There will be the new developments over time, but we're more or less always playing catch up with demand. </div>
<div> </div>
<div>You could say the same of, say, Coogee in the beachside eastern suburbs, or Manly to the north. Stacks of demand, not much of note being built. </div>
<div> </div>
<div>Even in inner-city Erskineville, which has seen development aplenty both within the suburb and all around it, vacancy rates are very tight, because it's such a convenient and popular location to live in. Loads of demand.</div>
<p><a href="https://4.bp.blogspot.com/-xyZE02fQnNE/WG7ArXnXA-I/AAAAAAAAhDk/9JLq0Ia5jekQu87qnSXqg03szTeCAM9LACLcB/s640/ERKO.jpg" target="_blank">Click to enlarge</a><br><br><a href="https://4.bp.blogspot.com/-xyZE02fQnNE/WG7ArXnXA-I/AAAAAAAAhDk/9JLq0Ia5jekQu87qnSXqg03szTeCAM9LACLcB/s1600/ERKO.jpg" target="_blank"><img src="https://4.bp.blogspot.com/-xyZE02fQnNE/WG7ArXnXA-I/AAAAAAAAhDk/9JLq0Ia5jekQu87qnSXqg03szTeCAM9LACLcB/s640/ERKO.jpg" width="640" height="342"></a></p>
<div> </div>
<div>Source: SQM Research</div>
<div> </div>
<div>Those are the kind of suburbs I don't mind owning property forever in, through the cyclical peaks and troughs.</div>
<p>Apartment glut<br><br> Now, this is not to say that things aren't a little different elsewhere.</p>
<div>Where exactly? Follow the cranes!</div>
<div> </div>
<div>Wentworth Point is just a mass of new apartments, and without being unkind, I can't imagine what it would be like to live there.</div>
<div> </div>
<div>I guess you'd soon get used to it, though, since as far as I could tell there's only one road in and out (like the Twiglet zone: "Easy to enter, impossible to leave")!</div>
<div> </div>
<div>Vacancy rates are up, up and away...</div>
<div> </div>
<div><a href="https://3.bp.blogspot.com/-Ahyf5FSt0-A/WG7KfKxVcCI/AAAAAAAAhEA/zs6zwtQHABUHOvMA4r_2xAmvBDSm6quigCLcB/s640/Wentowrth%2Bpoint.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div><a href="https://3.bp.blogspot.com/-Ahyf5FSt0-A/WG7KfKxVcCI/AAAAAAAAhEA/zs6zwtQHABUHOvMA4r_2xAmvBDSm6quigCLcB/s1600/Wentowrth%2Bpoint.jpg" target="_blank"><img src="https://3.bp.blogspot.com/-Ahyf5FSt0-A/WG7KfKxVcCI/AAAAAAAAhEA/zs6zwtQHABUHOvMA4r_2xAmvBDSm6quigCLcB/s640/Wentowrth%2Bpoint.jpg" width="640" height="350"></a></div>
<div> </div>
<div>
<div>Source: SQM Research</div>
<div> </div>
</div>
<div>In Parramatta, there have been high rise towers going up all over the show throughout the last year, a huge concentration risk of generic, high rise, shoebox apartments. </div>
<div> </div>
<div>With net multi-unit completions rising fast in 2015 and 2016, vacancy rates have already increased to well above 3 per cent, and there's always an inherent risk of understatement in reported vacancy rates at this stage in the construction cycle. </div>
<div> </div>
<div>There were another 3,500 dwellings approved in the last financial year too, and overwhelmingly, they were multi-unit in nature at 2,750. Golly gosh...</div>
<p><a href="https://1.bp.blogspot.com/-TEDIDC6V4OI/WG7AtXKDdgI/AAAAAAAAhDo/chxzk69LiMoioCMQi8YHsNZgVBCO_LCqQCLcB/s640/PARRA.jpg" target="_blank">Click to enlarge</a></p>
<p><br><a href="https://1.bp.blogspot.com/-TEDIDC6V4OI/WG7AtXKDdgI/AAAAAAAAhDo/chxzk69LiMoioCMQi8YHsNZgVBCO_LCqQCLcB/s1600/PARRA.jpg" target="_blank"><img src="https://1.bp.blogspot.com/-TEDIDC6V4OI/WG7AtXKDdgI/AAAAAAAAhDo/chxzk69LiMoioCMQi8YHsNZgVBCO_LCqQCLcB/s640/PARRA.jpg" width="640" height="356"></a><br><br> I also read somewhere this week that Blacktown is about to "boom".</p>
<div>Hmm, well that depends how you define 'boom', I guess! A construction boom, maybe. A boom in traffic congestion?</div>
<div> </div>
<div>That too! I'm somewhat less than convinced about there being a 2017 property boom in the conventional sense, though. </div>
<div> </div>
<div>One thing that you can say in favour of the LGA of Blacktown is that at least there is a level of diversity of development stock between apartments and detached dwellings. </div>
<div> </div>
<div>Even so, with more than 11,700 dwellings approved over the last three years and a huge construction pipeline, it looks likely to me that vacancy rates will only be heading north putting more downward pressure on rates.</div>
<p><a href="https://4.bp.blogspot.com/-TF-oPQjYAWw/WG7AuciggyI/AAAAAAAAhDs/TFT0_qDYPbIDlgfzuRJlH8xW199o2Y31gCLcB/s640/BLACKTOWN.jpg" target="_blank">Click to enlarge</a></p>
<div><a href="https://4.bp.blogspot.com/-TF-oPQjYAWw/WG7AuciggyI/AAAAAAAAhDs/TFT0_qDYPbIDlgfzuRJlH8xW199o2Y31gCLcB/s1600/BLACKTOWN.jpg" target="_blank"><img src="https://4.bp.blogspot.com/-TF-oPQjYAWw/WG7AuciggyI/AAAAAAAAhDs/TFT0_qDYPbIDlgfzuRJlH8xW199o2Y31gCLcB/s640/BLACKTOWN.jpg" width="640" height="340"></a></div>
<div> </div>
<div>There are plenty more suburbs like Parramatta and Blacktown that face a surfeit of new stock as mentioned here previously, including in the Hills District. </div>
<div> </div>
<div>And that's before we even mention the wild exuberance in Western Sydney house prices, with suburb records being smashed by the month in 2016 just as mortgage rates are now beginning to creep back up. </div>
<div> </div>
<div>It'll be very interesting to watch all of this play out in 2017. </div>
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