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.

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;

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;

“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;

[smartcode_project:default project_id=110291 project_image_fid=302785]

<h2>Affordable product leads, premium demand remains resilient</h2>

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;

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;

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.

Jual (Shenton Park, Celsius Property) also posted a strong quarter with 28 sales, reaching 39% sold in one quarter.

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;

[smartcode_project:default project_id=148957 project_image_fid=364102]

<h2>Prices underpinned by costs, and the delivery risk is growing</h2>

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.

David Cresp said a growing challenge for private Build‑to‑Sell developers is simply securing a builder in the current environment.

“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;

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.

[smartcode_project:default project_id=108869 project_image_fid=317905]

<h2>Supply: improving later, but still constrained, and Perth lags eastern benchmarks</h2>

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;

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;

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”.

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;

Joel Robinson

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

<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.

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.

Sammut Director Julian Sammut said the group had been actively searching Brisbane for several years before identifying Toowong as the right fit.

“Brisbane was the right step for Sammut,” Sammut said.

“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.”

<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" />

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.

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.

“We are DA approved now which is very exciting,” Sammut said.

“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.”

<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" />

Bureau^proberts said the design responds to Toowong’s evolving urban character, balancing contemporary apartment living with the area’s established residential identity.

“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.

The architecture practice said the project’s form was shaped by its riverfront setting, flood considerations, neighbouring building scales, and view corridors.

“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.”

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.

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.

Sammut secures approval for debut Brisbane apartment development in Toowong

Developer Lanevick is heading back into Sydney’s apartment market after focusing more heavily on the luxury townhouse and terrace sector in recent years.

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.

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.

“Traditionally it’s been difficult for people in that market to downsize because there just hasn’t been the right product available,” Maroun said.

“We’re targeting buyers who might have 30 to 40 per cent of their house value sitting in the bank after downsizing.

“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.”

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.

“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.”

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.

“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.”

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.

“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.

Maroun said Lanevick saw a first-mover advantage within the precinct as planning controls continue to evolve to accommodate greater housing density.

“We think there’s a real opportunity there that hasn’t really been serviced properly yet,” he said.

“There’s going to be a broader evolution of the whole Gladesville village precinct over time, particularly with more activation and mixed-use outcomes.”

The Venus Street proposal will include a commercial and retail component at ground level designed to contribute to that evolving streetscape activation.

“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.

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.

&nbsp;

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

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.

The New York-based investor has focused his firm, GreenPoint Partners, on addressing the supply shortage hitting middle market housing in Australia.

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.

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.

“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.

“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.”

<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" />

GreenPoint Partners brings years of experience assembling and scaling real estate operating businesses across major markets. And Green sees a big opportunity in Australia.

“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.”

Green said being a builder-developer would give the company the capacity and flexibility it required to deliver reasonably-priced homes.

“We want it to be at that attainable level; not super high end luxury but at that attainable level,” he said.

<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" />

&nbsp;

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.

Green praised local policy settings.

“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.”

One Living is also&nbsp;looking at high-density projects and could take on more institutional funding in the future.

“The way we will be able to achieve economies of scale is through size,” Green added.

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

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.

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.

Projects by Buxton Director Heath Thompson, who is selling WM Residences, says the townhouses x that perfect middle ground be

"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.

"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."

[smartcode_project:default project_id=134646 project_image_fid=6109]

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.

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.

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.

[smartcode_project:default project_id=134646 project_image_fid=6110]

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.

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.

[smartcode_project:default project_id=134646 project_image_fid=6116]

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.

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.

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.

[smartcode_project_cta:default project_id=134646]

WM Residences fills gap in Mordialloc townhouse market

Sydney

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DEXUS Property Group and DEXUS Wholesale Property Fund have secured the windfall sale of the office tower at 39 Martin Place, Sydney.
The transaction follows the finalisation of negotiations relating to the compulsory acquisition of the property by Transport for NSW for the construction of the Sydney metro.
A total of $332 million will be received for the office tower and shopping circle, representing a premium to the property’s book value of $222.6 million at June 2016.
This is in addition to the exchange on the transfer of the leasehold interest in the Martin Place Shopping Circle which is expected to settle in late 2016.
Proceeds from the transaction will be used by DEXUS and DWPF to repay existing debt facilities.
DEXUS bought the property in 2012 for $143 million.
The 39 Martin Place premises were a B-Grade property located in a prominent position adjacent to Martin Place railway station, providing 14,525sqm of office accommodation (74% occupancy by income) over 20 levels together 1,816sqm of retail space (100% occupancy by income), comprising 6 retail shops with major anchor being Tiffany &amp; Co.
The adjoining Martin Place Shopping Circle provides a further 805sqm of retail space as part of a convenient underground pedestrian link to the railway station.
The construction of 39 Martin Place was completed in 1972 and major refurbishments were completed in 1997 and 2011, with the latest including $15 million of improvements incorporating lift cars and the full refurbishment of six floors.
"The property presents DXS and DWPF with an attractive medium-term repositioning opportunity in a precinct being revitalised through the current refurbishment of neighbouring properties," DEXUS advised on acquisition. 
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j.ballantyne1990-6AQqhLzZaK

DEXUS secures 39 Martin Place office tower sale

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Bondi Pizza will open its next Australian location at Broadway Sydney on November 14.
It will complete the line-up of new international and domestic retailers in the centre’s $55 million level two redevelopment.
The restaurant will have a fit out featuring a floor-to-ceiling mural painted by local Glebe-based artist, Lance Corlett.
Jeff Fisher, Bondi Pizza CEO, said that after opening its first restaurant on Bondi Beach in 2009, the Broadway store will be the seventh Sydney restaurant, with existing stores stretching from Bondi to Parramatta, including sites at Eastgardens, Brighton-Le-Sands, Top Ryde and Macquarie.
Bondi Pizza will have 480 square metre in the recently unveiled level two, which boasts a 3,400 square metre expansion.
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Bondi Pizza to open at Broadway Sydney

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Sydney’s landmark Lands and Education buildings on Bridge Street – known as “The Sandstones” – are one step closer to being transformed into a world-class hotel.
The NSW Government today announced the next stage of a $300 million plan to revitalise the historic buildings.
The Singapore-based Pontiac Land Group has lodged its Development Application (DA) for the planned transformation.
Minister for Finance, Services and Property Dominic Perrottet said the heritage redevelopment would allow locals and visitors to enjoy the history and heritage of the Sandstones for the first time since they were built in the late 1800s.
“When the Sandstones were first built, their beauty inspired the people of Sydney. This restoration will inspire us all again.”
The designs unveiled by Pontiac Land Group show ground-level retail and dining and a rooftop salon in the Lands building, to be open to the public.
More than 250 hotel rooms and suites are included in the plans for the two buildings, Mr Perrottet said.
Pontiac has extensive experience in the adaptive re-use of heritage buildings, including the flagship Capella Hotel in Singapore.
The Sandstones are subject to strict heritage protections, and the development will need to comply with Conservation Management Plans, endorsed by the NSW Heritage Council.
The DA will be considered for approval by the Department of Planning and Environment, and will be on public exhibition from November 17 to December 13.
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Sydney's landmark Sandstones hotel conversion revealed

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North Sydney and Hornsby takes the top spot among Sydney’s region with the highest weekend clearance rate, according to CoreLogic’s latest report.
The data firm says that of the 156 auctions known to CoreLogic 89% resulted in a successful outcome.
This is followed by the Northern Beaches with 88% and the City and Inner South with 87%.
<a href="/images/2016/11/10/Sydney%20sub%20regions.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/11/10/Sydney%20sub%20regions.jpg" alt="">
The region with the lowest auction clearance rate was the South West where only 47% of the 48 auctions known to CoreLogic were sold.
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North Sydney and Hornsby ranks as Sydney's best auction hotspot: CoreLogic

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An offshore purchaser has paid $13 million for an approved townhouse development site in Lindfield.
Setting a new record for Sydney’s Ku-Ring Gai council area, the sale came after 180 enquiries and 24 offers to CBRE's Danny Shi and Aaron McLean.
Based on the approval for 16, three-bedroom townhouses, the sale price translates to a record rate of $812,500 per townhouse site.
“There is still huge demand for townhouse development sites on Sydney’s north shore, particularly from offshore buyers,” Mr Shi said, adding that 20 of the 24 offers had been from Chinese groups.
“Developers perceive townhouses to be lower risk than apartment product, particularly in markets such as Lindfield, which have low levels of new supply.”
Situated at 18 – 20 Bent Street, the site has a total area of 2,719sqm and presently accommodates two residential dwellings.
Mr Shi said there have been limited quality townhouse offerings in recent times, despite the underlying demographics supporting this type of product.
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Offshore $13 million Lindfield townhouse development site sets new record

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Rosebery Properties and Filetron, a Cottle family company, are selling three separate lots of land with a value of over $100 million in Rosebery.
It is part of an ongoing rapid transformation from industrial to residential.
Located at 12-40 Rosebery Avenue and 108 Dalmeny Avenue, Rosebery, the site consists of a large area of 15,215sqm with existing industrial and commercial buildings equating to 11,722.80sqm generating an existing rental income in excess of $2,000,000 + GST.
The site has a huge dual frontage in excess of 170 metres to both Rosebery Avenue and Dalmeny Avenue and is located within one of Sydney’s strongest new apartment suburbs, with a potential Gross Floor Area of 32,864.40sqm and a height limit of 29 metres.
Agents Michael Crombie and Trent Gallagher of Colliers International have the offering. 
Michael Crombie said it was one of the best sites to come onto the market in 2016.
"It has great scale, over multiple titles, quality buildings and solid income, allowing staging of the development.
“Well known developers have focused heavily on the Rosebery precinct, including Meriton, Mirvac, Stockland, Top Place, LivStyle &amp; JQZ as Rosebery provides a lifestyle choice for the discerning investor or occupier, with so many new trendy eateries within the precinct."
Rates being achieved in nearby residential development projects such as “Symphony” by Meriton a 215 unit brand new development on Epsom Road, Rosebery due for completion mid 2017 are as high as $19,000 per square metre.
Offers close December 6.
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$100 million price tag for Rosebery lots

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Sydney’s rental vacancy trend is steady, according to Herron Todd White’s latest market report.
The property advisory firm states that the rental vacancy situation is that of a balanced market while demand for new houses are fair which is consistent with a steady trend in new house construction due to increasing volume of house sales.
<a href="/images/2016/11/04/Capital%20city%20houses.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/11/04/Capital%20city%20houses.jpg" alt="">
The Sydney property market is rising with new properties occasionally sold at prices exceeding their potential resale value.
Other balanced markets include Brisbane, Melbourne and Canberra.
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Sydney's balanced rental vacancy: HTW

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Housing price growth in Sydney remains stronger than any where else in the country due to the welcoming accompanying spurt in jobs along with improved economic conditions.
But the substantial cost of housing in Sydney makes it a less desirable location for people to live here. 
The price boom of 2012-2016 will result in many young families considering alternatives to Sydney, especially when it comes time to upgrade to a bigger house.  
Overseas migration typically attracts the headlines as the key factor in population growth and price growth, but what is often overlooked is the impact of interstate migration on the demographic composition of the states and territories.
Yes net overseas migration added 180,000 people to the Australian population, but some 350,000 people moved between states and territories in 2015. 
Victoria recorded the highest overall population growth rate of all states and territories at 1.9 percent, adding an extra 114,900 people to the population with net overseas migration the main contributor to growth in Victoria, adding 62,800 people to the population over the year. The remainder of Victoria's population change was explained by natural increase (+37,600) and net interstate migration (+14,500).
NSW's was 1.4 per cent, adding 103,000 over the year ending March 2016, but NSW had 90,000 interstate arrivals over the year and around 100,000 who left.
The exodus is underway.
The change in interstate migration over recent years has increasingly seen a shift from Queensland as the destination to Victoria due to its substantially more affordable housing costs and job prospects.
The recent change has been driven by the working age population, in particular between 20-29 years old. It follows that this mobile demographic will eventually buy their first home in Melbourne rather than Sydney. 
The latest CoreLogic data showed annual growth in Sydney home prices remains just shy of 11 percent and growth remains close to 10 percent in Melbourne.
But there are big difference in prices.
Sydney's $920,000 to Melbourne's $665,000 for houses.
Sydney's $690,000 to Melbourne's $495,000 for apartments.
Sydney units have regularly been more expensive than Melbourne houses and Sydney median unit prices have consistently been higher than Melbourne median house prices since early 2012.
It was telling that the latest CoreLogic release confirmed Sydney's price growth was strong across both houses and apartments. 
Detached Sydney house prices were up 10.9 percent compared with units at 9.1 percent highlighting the lively supply/demand dynamic that exists across the Sydney region.
In Melbourne however there is a substantial difference in growth rates between houses and units, with house values up 9.6 percent compared with a 5.2 percent increase in unit values over the past year.
Brisbane’s housing market has shown a even larger spread, with house values up 4.7 percent compared with units which have had a 1.4 percent fall in unit values over the year. 
Cameron Kusher at CoreLogic believes outside of Sydney and Melbourne, cheaper housing alone was proving not enough to attract people to these cities as they lacked a strong economy with decent employment prospects.
So the young families aren't leaving the city in favour of seachange and treechange lifestyle locations.
Indeed Melbourne had the largest overall population growth of all Greater Capital Cities up by 91,600 people, or 2.1 percent to $4.5 million, followed by Sydney up 83,300 to 4.9 million in 2014-15.
Greater Sydney's population grew by 1.7 percent in 2014-15, which accounted for 80 percent of the total NSW growth, with Waterloo, in inner Sydney, having the largest increase, up by 3,100 people.
This article was first published in the Saturday Daily Telegraph.
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jchancellor-FAypfDUnLy

The Sydney exodus is underway as prices rise

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Small residential projects provide an opportunity for 'mum and dad-style' investors to break into the next level of property speculation, but many of these opportunities are drying up, according to Herron Todd White’s (HTW) latest market report.
The property advisory firm states that it’s important to be well informed as even the most seemingly minor of projects can be a financial undoing – particularly if you don’t get fully prepared before taking the leap.
The report stated the strength of the Sydney property market, demand for housing and overall affordability have seen professional developers and mum and dad developers invest in the property market with small scale developments.
"It seems that investors are moving away from the once traditional investments such as government bonds and also shares which are seen as more volatile with higher risk for less return," the report said.
"This along with the increases in property values has proven that the property market has more appeal."
A lack of available land in already established areas has seen a rise in popularity of redevelopment on both a large scale and on the small mum-and-dad scale as developers take advantage of infill rezoning, transport infrastructure projects and overall demand for new products.
"The northern suburbs of Sydney is price restrictive for the mum-and-dad developer, creating a barrier to entry for developers who are not cashed-up," HTW said.
"The only way mum-and-dad developers can participate is if they already own the property.
"We note the recent sale of an approved two lot subdivision in the leafy north shore suburb of Lindfield."
"The property sold for $2.55 million in January 2015. The purchaser subsequently secured approval to subdivide the rear portion of the block. This same house with approved subdivision plans re-sold in July 2016 for $3.92 million.
"That’s a profit of $1.37 million over 18 months for obtaining approval only.
"This is reflective of the difficulty in obtaining approval in this area, the potential end value for a new dwelling if sold and how entry level mum-and-dad investors can be priced out of the market."
It noted that south west parts of Sydney has seen an explosion in development.
Areas such as Parramatta, Holroyd, Fairfield and Liverpool generally see dwellings on far larger allotments than inner city suburbs which makes way for development opportunities subject to council approval.
Typical small scale projects include:
• Dual occupancies (granny flats, two dwellings on one title, duplex pairs);
• Subdivision of an existing parcel where the owner keeps the main dwelling and sells off the vacant parcel.
When taking on such projects an understanding of the council’s local environmental plans and development control plans is a necessity to ensure any viability with proposed projects.
Generally sites that meet minimum requirements of frontage, size and zoning will be highly sought after, as the approval process for any development can be far less strenuous and cost and time effective.
The issue for mum and dad developers is trying to compete with local small scale developers. They are generally at a disadvantage because they tend not to have:
• Start-up capital to fund projects, in particular the ability to compete for purchase of a site while still being able to make any profit;
• Experience in building and understanding of local council requirements;
• Straight through process of completing the task in the most cost effective way;
• Lack of connection with builders. Mum-and-dad developers would generally have to pay cost plus labour rather than local developers who can source materials cheaper and cover labour themselves.
The projects that the mum and dad developer often tackle that can be very successful, due to the reasonably cost effective start-up costs, are where they consolidate their own site and remove the need to compete in purchasing expensive land. This is normally by way of granny flats, second dwellings and parcel subdivisions.
These small scale developments are well received by the buyer market. The reason for this is because they appeal to different sections of a very active market, such as:
• An investor looking to purchase a site with dual income;
• The extended family arrangements which are popular with residents of the south western area.
• Affordability for the buyer of a smaller home.
As a mum and dad developer the important concept is not to go beyond means and ability. Start off small and build from there.
Within the eastern suburbs and inner west regions there is generally limited small development projects undertaken by mum and dad developers. Even the smaller scale developments of approximately three to six units are generally undertaken by more experienced developers mostly due to the price points and land acquisition costs.
The more common types of small projects tackled within these regions are duplex pairs, dual occupancy (granny flats) and renovation and shift.
There is a wide range of buy-in price points for a duplex site in the eastern suburbs depending on area.
More prestige beachside areas of Bondi, Bronte, Clovelly and Dover Heights will set you back generally $2.75 million plus. Suburbs in the lower eastern suburbs such as Chifley, Malabar and Little Bay will set you back approximately $1.6 million plus for a duplex site with company title used to get approvals through council as opposed to the more conventional strata title or Torrens title.
“We have seen these areas undertake more renovation projects of existing dwellings with the potential for capital gains. Renovated properties are receiving good premiums at present and experienced renovators are receiving good profits from renovating and selling,” the report advised.
Some examples of renovation and shift are 4 Broughton Street, Paddington which previously sold in September 2015 for $1.95 million.
The property was a fully renovated three bedroom,  three bathroom Victorian terrace with one car space and was recently re-sold in August 2016 for $2.9 million.
2 Walter Street, Leichhardt previously sold in July 2015 for $990,000 in poor condition. The property was fully renovated and extended and was re-sold in July 2016 for $1.75 million.
Properties are also being purchased to hold for redevelopment potential in the longer term. Areas such as the Sydenham to Bankstown Urban Renewal Corridor (inner west) and areas close to the South East Light Rail (eastern suburbs) have been popular for their future potential.
The southern regions of Sydney have seen more opportunities for smaller developers with the most common types of small projects tackled being generally duplex pairs, dual occupancy (granny flats) and small scale townhouse or villa developments.
Popular development suburbs include Carringbah, Cronulla and Miranda. The strong demand for new product has seen an influx of owner builders and developers in recent years.
Entry level duplex sites generally start from $1.3 million with duplex construction costs ranging from $750,000 to $1 million depending on size and quality and finished product generally ranging from $1.3 million to $1.9 million.
Some small townhouse developments have also been popular in these locations with a recent example being 69 Caringbah Road, Caringbah.
This property was purchased in July 2015 for $1.805 million and gained development approval for three townhouses. These are currently on the market with asking prices in the vicinity of $1.5 million.
Granny flats have also become increasingly popular with a 2-bedroom granny flat being built for circa $120,000 to provide extra rental income.
These areas have also seen opportunities for renovation and shift. For example a property at 3/7 Whitewood Place, Caringbah South comprises a 3-bedroom, 2-bathroom single level villa which was previously sold in March 2016 for $855,000. Following renovation the property sold on 26 August 2016 for $1.3 million.
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'Mum and dad' developers getting locked out of Sydney small project property market: HTW

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Investor demand for industrial assets remains steady, with strong interest from off shore investors in long WALE, larger scale assets in Sydney’s Western corridor compressing yields sharply, according to Colliers International's latest market report.
Private and owner occupier tenants continue to remain dominant in the city fringe and South Sydney, however their strategies for acquisition differ.
Investment sales in tighter markets tend to be for smaller assets &lt;500sqm, where rental yields tend to be higher, owner occupiers are targeting assets in larger assets 500 to 1,500 sqm with the low cost of debt being a significant driver of activity.
Owner occupancy is becoming a significant driver of investment activity in all sub markets.
Historically, owner occupancy was largely concentrated in the smaller, 1,000sqm strata market, however large scale retailers are now acquiring industrial facilities over 15,000sqm in the western market.
Consequently, land is becoming hotly contested amongst investors and owner occupiers, with serviced land supply across industrial precincts in tight supply.
"We are anticipating further owner occupier activity in the larger industrial markets in the medium term," the report states.
New South Wales Government data indicates that there is less than twenty years of zoned industrial land, at present absorption rates.
Serviced land, which is connected to utilities, is even scarcer, with only three years supply available.
"Further land release, is constrained by the natural geographic barriers surrounding Sydney. Given the tight levels of land supply we anticipate competition for new land releases and land values to rise across all Sydney industrial markets in the medium term.
Looking ahead, rental growth is anticipated to remain steady as demand levels from the logistics sector, a key driver of demand for larger assets stabilises. Construction services are providing positive momentum, thanks to historical highs in residential construction," the report advised.
From an investment perspective, the hunt for higher yields is anticipated to push some investors into secondary assets. Yield spreads between the prime and secondary markets in the lead up to the GFC fell to 50 basis points, presently they are 120 basis points which points to investors overvaluing risk in the secondary markets.
With competition for industrial assets still high amongst investors, secondary assets will be a key part of future strategies, particularly for assets with development upside and proximity to high quality infrastructure links.
Sydney has the largest infrastructure pipeline of any state in Australia. According to the government’s own forecasts, there will be an estimated $39 billion in transport infrastructure spending in NSW over the next four years.
Sydney’s western industrial precinct continues to strong investment conditions with strong interest from off shore investors – Singapore, HK, Japan, Kwap from Malaysia, Mitsui. US investor Blackstone has broken the previous investment record held by Ascendas, after acquiring $1.3 billion of Goodman industrial assets across the East Coast, in two tranches. This sale will provide Goodman with strong financial support to fund future land acquisitions and developments globally.
Domestically, REITs such as Charter Hall and Mirvac, as well as fund management group AMP are actively pursuing industrial opportunities. In June, AMP acquired JP Morgan’s industrial portfolio worth over $250 million, on a portfolio weighted average yield of 6.5 per cent.
"Prime initial yields in the west compressed by a further 15 basis points from June to September on the back of strong investment volumes. With prime yields compressing to 10 year highs, we anticipate that the spread between prime and secondary industrial assets will tighten from its current margin of 120 basis points over the coming twelve months as investors look for higher performing returns, with development or repositioning upside.
Land acquisition opportunities are becoming tightly contested, with owner occupiers actively competing with established developers for opportunities. Landlords are also looking at speculative opportunities with Goodman building a 22,000sqm facility in Oakdale Central, and Mirvac developing 19,000sqm in Wallgrove Road, Eastern Creek. Developers are speculatively developing due to tight vacancy rates in the Western market, and limited opportunities for tenants in the 10,000sqm plus market," the report stated.
Tenant demographics are becoming more diversified in the western market, with 40 per cent of tenants being from storage, transport and logistics businesses, however the strong performance of retail discretionary spending by consumers is driving demand from retailers looking for storage and distribution facilities.
Tenant activity from corporates has been consistently strong, with tenants such as White Wires, Blackmores, Tyre Max and Pet Barn moving into the west. Incentives are bene ting from this strong demand, falling slightly to 15 per cent, however rental pricing is still a signi cant driver of tenant demand, with Blue Star print group moving from Rydalmere due to lower rents.
Rental growth performance is strong, with net effective rents up by 3 per cent year on year, higher than their 10 year average growth rate of 2.3 per cent. We are forecasting industrial effective rents to rise in the next twelve months by between 3-5 per cent, due to asset and land scarcity, and rising demand from tenants with exposure to discretionary retail.
According to the government’s own forecasts, there will be an estimated $39 billion in transport infrastructure spending in NSW over the next four years.
Sharp rises in capital values, over a relatively short term, may encourage some owners to realise gains.
Recent sales evidence in the northern market shows that capital value uplift of 20 to 30 per can occur on the back of strong investor demand, and diminishing supply levels.
An example of this was 20 Whiting Street in Artarmon transacted for $2.2 million in December 2014, was recently sold for $2.8 million, an increase of 21 per cent in eighteen months. The vendors of a 9,000sqm asset at 28 Rodborough Road French’s Forest realised a 25 per cent rise in capital values since acquiring their asset for $15 million in December 2014, and selling it recently $20 million.
This exceptional rise in values is all the more extraordinary given that prior to 2014, capital values in the north had seen little or no growth. Such robust capital growth is attracting private and institutional investment interest from off shore investors.
Owner occupiers, are also prevalent, particularly in the construction, food retail and technology sectors.
Leasing activity in the secondary market is also showing positive signs, a key driver of which has been demolition clauses which are typically more common in prime markets.
Weight of capital, whilst an early driver of improving investment levels, has now been matched by strong rental performance with prime net effective rents growing by 21 per cent in the last twelve months, secondary net effective rents have risen by 10 per cent during the same period.
Prime incentives remain steady at an average of 16 per cent, with secondary incentives lower at 14 per cent. The disparity, which is unique to the northern market, is being driven by demolition clauses in prime assets, due to the new masterplan that is encouraging rezoning industrial zones to residential use.
The shrinking pool of available assets in the South Sydney market is creating opportunities and challenges for investors, tenants and landlords. Since 2012, an estimated 29 per cent of the Southern industrial market has been withdrawn for rezoning to residential development, and the acquisition of land for WestConnex and Sydney Metro.
For tenants, this means that there are fewer available assets leading many of them to look for owner occupancy opportunities, however vacant possession are rarely available. Tighter space availability is leading to buildings using investment style methods such as expressions of interest, to lease their space.
This has significant benefits for landlords, reducing their incentives and increasing their face rents but entering a competitive bid process.
One recent leasing deal saw three parties competitively bid for an industrial facility, with the winning party accepting terms five per cent above the initial face rental o er, with no incentives. We anticipate that tight vacancy will lead to more of these EOI style leasing campaigns in the short to medium term.
For investors, holding assets close to public transport amenity and within the B6 planning overlays, converting their industrial assets to office use is becoming a popular strategy to reposition older assets, and attract higher rents.
Alexandria has been at the epicentre of this redevelopment trend, appealing to tenants from the technology and creative industries, attracted to the industrial feel of the area, and blank canvas creative opportunities large floorplate former industrial assets offer. From a rental perspective, pricing for an industrial facility in this area is typically $150-250 per square meter on a net face basis, however after a simple office conversion these rents escalate to between $350-425/sqm.
In the strata unit market, popular amongst owner occupiers, recent off the plan developments have seen significant increases in their capital value rising by over 30 per cent in the past eighteen months.
Recent investment sales in the South have been scarce, however cap rate compression continues to remain a feature as fewer assets are contested by a still rising number of investors.
"Looking ahead, the rapid pace of change in the South Sydney market will drive changes to the mix of assets, tenants and owners. Vertical industrial facilities such as those seen in other land constrained markets in the UK, and Asia, will become a feature of this market as developers look to cater to goods and service delivery to adjacent growing residential areas and city centres," the report states.
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