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

<html><body>
A record price for a waterfront property in Cabarita, located on the Parramatta River, has been linked to the development of the WestConnex motorway.
The contemporary double storey, waterfront home, located at 11 Collingwood Avenue was sold at auction by Ross Musso and Dib Chidiac of Raine &amp; Horne Concord for $5.413 million.
It smashed the previous suburb record by $413,000.
“The WestConnex is the largest ever urban transport project in NSW history and buyers are recognising that the infrastructure improvements will halve travel times to the Sydney CBD,” says Mr Chidiac.
The M4 Widening project involves converting the three lane M4 motorway from Parramatta to North Strathfield to four lanes. The M4 will be extended from Concord Road, North Strathfield to the City West Link at Haberfield via a 5.5km tunnel that will have three lanes in each direction under Parramatta Road (‘M4 East’).
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j.ballantyne1990-6AQqhLzZaK

Agents suggest WestConnex helps smash Cabarita waterfront record

<html><body>
Sydney house median price jumped 2.7 percent over the September quarter to a record $1,068,303, Domain calculations suggest.
The growth can be attributed to investor activity, according to Domain Group chief economist Andrew Wilson.
“The growth is raging back into Sydney … we have auction clearance rates in the mid-80 per cent range, and there were two interest cuts in August and May this year,” Dr Wilson said.  
The lower north shore was the strongest Sydney region over the 12 months as it increased by 12 percent in a year however apartments only increased by 1.1 percent to a median of $685,865.
Median houses prices in Australia capitals:
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="64">
 
</td>
<td valign="top" width="149">
September 2016
</td>
<td valign="top" width="106">
June 2016
</td>
<td valign="top" width="106">
September 2015
</td>
</tr>
<tr>
<td valign="top" width="64">
Sydney
</td>
<td valign="top" width="149">
$1,068,303
</td>
<td valign="top" width="106">
$1,039,947
</td>
<td valign="top" width="106">
$1,046,539
</td>
</tr>
<tr>
<td valign="top" width="64">
Melbourne
</td>
<td valign="top" width="149">
$773,669
</td>
<td valign="top" width="106">
$750,407
</td>
<td valign="top" width="106">
$708,816
</td>
</tr>
<tr>
<td valign="top" width="64">
Brisbane
</td>
<td valign="top" width="149">
$521,152
</td>
<td valign="top" width="106">
$525,954
</td>
<td valign="top" width="106">
$505,171
</td>
</tr>
<tr>
<td valign="top" width="64">
Adelaide
</td>
<td valign="top" width="149">
$494,911
</td>
<td valign="top" width="106">
$496,436
</td>
<td valign="top" width="106">
$481,282
</td>
</tr>
<tr>
<td valign="top" width="64">
Perth
</td>
<td valign="top" width="149">
$556,609
</td>
<td valign="top" width="106">
$578,444
</td>
<td valign="top" width="106">
$588,890
</td>
</tr>
<tr>
<td valign="top" width="64">
Canberra
</td>
<td valign="top" width="149">
$661,912
</td>
<td valign="top" width="106">
$659,229
</td>
<td valign="top" width="106">
$630,858
</td>
</tr>
<tr>
<td valign="top" width="64">
Hobart
</td>
<td valign="top" width="149">
$338,703
</td>
<td valign="top" width="106">
$331,207
</td>
<td valign="top" width="106">
$333,619
</td>
</tr>
<tr>
<td valign="top" width="64">
Darwin
</td>
<td valign="top" width="149">
$595,466
</td>
<td valign="top" width="106">
$616,000
</td>
<td valign="top" width="106">
$661,395
</td>
</tr>
<tr>
<td valign="top" width="64">
National
</td>
<td valign="top" width="149">
$752,879
</td>
<td valign="top" width="106">
$740,630
</td>
<td valign="top" width="106">
$727,170
</td>
</tr>
</tbody></table>
 
The inner west was the strongest performer over the quarter despite the lower north shore outpacing every other region this year.
The apartment market has shown signs of slowing down in some areas such as Canterbury Bankstown, the south and the west recording modest price declines in the quarter.
 
Median unit prices in Australian capitals:  
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="64">
 
</td>
<td valign="top" width="149">
September 2016
</td>
<td valign="top" width="106">
June 2016
</td>
<td valign="top" width="106">
September 2015
</td>
</tr>
<tr>
<td valign="top" width="64">
Sydney
</td>
<td valign="top" width="149">
$685,865
</td>
<td valign="top" width="106">
$678,244
</td>
<td valign="top" width="106">
$679,456
</td>
</tr>
<tr>
<td valign="top" width="64">
Melbourne
</td>
<td valign="top" width="149">
$466,779
</td>
<td valign="top" width="106">
$446,609
</td>
<td valign="top" width="106">
$442,348
</td>
</tr>
<tr>
<td valign="top" width="64">
Brisbane
</td>
<td valign="top" width="149">
$367,518
</td>
<td valign="top" width="106">
$378,327
</td>
<td valign="top" width="106">
$382,219
</td>
</tr>
<tr>
<td valign="top" width="64">
Adelaide
</td>
<td valign="top" width="149">
$301,939
</td>
<td valign="top" width="106">
$305,886
</td>
<td valign="top" width="106">
$294,481
</td>
</tr>
<tr>
<td valign="top" width="64">
Perth
</td>
<td valign="top" width="149">
$364,752
</td>
<td valign="top" width="106">
$367,632
</td>
<td valign="top" width="106">
$388,767
</td>
</tr>
<tr>
<td valign="top" width="64">
Canberra
</td>
<td valign="top" width="149">
$403,775
</td>
<td valign="top" width="106">
$398,728
</td>
<td valign="top" width="106">
$409,052
</td>
</tr>
<tr>
<td valign="top" width="64">
Hobart
</td>
<td valign="top" width="149">
$251,073
</td>
<td valign="top" width="106">
$276,544
</td>
<td valign="top" width="106">
$284,417
</td>
</tr>
<tr>
<td valign="top" width="64">
Darwin
</td>
<td valign="top" width="149">
$448,418
</td>
<td valign="top" width="106">
$448,417
</td>
<td valign="top" width="106">
$431,600
</td>
</tr>
<tr>
<td valign="top" width="64">
National
</td>
<td valign="top" width="149">
$536,294
</td>
<td valign="top" width="106">
$529,386
</td>
<td valign="top" width="106">
$529,950
</td>
</tr>
</tbody></table>
The biggest Sydney regional drop was in Canterbury Bankstown where apartments declined by 4.7 percent to a median of $505,000.
Apartments across Sydney have increased by 0.9 percent in the 12 months to September.
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Sydney house median peaks over $1m again, but units turning into negative

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A significant landholding in Sydney’s North Strathfield comprising 23 separate residential houses is being offered for sale.
Some $90 million has been suggested as the likely selling price through JLL.
Located at 1-5 &amp; 9-19 Brussels Street, 126-134 George Street, 2-4 &amp; 8-20 Mena Street, North Strathfield, NSW, the site measures approximately 13,760 square metres.
The property has potential for a larger residential development, subject to council approval on the current proposed zoning changes for the precinct.
The site is currently zoned R2 – Low Density Residential and will be sold conditionally on rezoning. 
The property has three street frontages to Brussels Street, George Street and to Mena Street, and is approximately 550 metres from North Strathfield train station.
“This is one of the first sites of this size that has been offered for sale in the Inner West precinct,” said JLL agent Michael Binskin.
Offers close November 23.
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$90 million expected for 23 adjoining Strathfield homes

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Ray White Hotels Australia and CBRE Hotels have listed the beachside institution, The Clovelly Hotel.
It has been trading for over 150 years.
"The Cloey is one of those folklore hospitality businesses that most Sydney-siders, and numerous others from much further afield, will have an affinity with" commented Andrew Jolliffe.
Iris Capital bought it in 2008 and extensively renovated in 2012.
Conjunction agent Daniel Dragicevich noted an element of the $9.1M in annual sales is notionally underwritten by the sheer weight and regularity of visitors to the area.
"There's no coincidence that the list of owners of other iconic beachside hospitality properties reads like a veritable hotel industry hall of fame roll call" concluded Daniel Dragicevich noting Justin Hemmes (Coogee Pavilion), Chris Cheung (Coogee Pavilion), Kim Maloney (Bondi) and Arthur Laundy/Fraser Short (Watsons Bay). 
The Clovelly Hotel is being sold via an international EOI process until November 23 meaning the successful purchaser can potentially take advantage of the legendary Christmas and New Year trade enjoyed by the hotel.
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Iconic Clovelly Sydney hotel hits the market in time for summer ownership

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EG Funds Management has exchanged contracts to sell 223 Liverpool Street, Darlinghurst to ST Real Estate Austraila, European based clients of Fidinam Australasia Real Estate.
The property was sold for $33 million, having been purchased by EG in 2014 for $17.45 million denoting an equity IRR of approximately 40 percent.
The asset, with a net lettable area of 4,477sqm, is currently in the process of attaining Development Approval for a staged refurbishment and repositioning of the entire building.
Formerly known as Holdsworth House, the five-level heritage listed building was the seed asset for EG’s Core Plus Fund No. 1 (CPF1).
EG identified the asset’s repositioning potential during the fund raising of CPF1. The eastern city Sydney fringe asset was encumbered with a number of existing leases and unfavourable floor configuration.
“The asset offered an excellent opportunity to add value through a complete refurbishment while providing a robust initial yield at acquisition” says Divisional Director, Daniel Farley.
“Following strong unsolicited interest, EG has capitalised on an extremely strong Sydney office market, with the sales price providing returns consistent with the acquisition’s refurbishment strategy, minus the delivery risk”
CPF1 is a closed-end fund, focused on acquiring assets that can benefit from the active asset management, refurbishment and repositioning capabilities, for which EG is well known.
EG were represented in the sale by Jonathan Vaughan and John Bowie Wilson from Knight Frank, while Craig Stuckey of Fidinam represented the purchaser.
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EG sells Sydney fringe asset for $33 million

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Blacktown narrowly eclipsed the eastern suburbs having the highest auction clearance rate in Sydney, according to CoreLogic’s latest weekly report.
There was a 93.8 percent success rate with 16 auctions cleared in Blacktown.
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This is followed by the Northern Beaches with an auction clearance rate of 90 percent.
The district with the lowest clearance rate was the Central Coast with only 75 percent of its auctions resulting in a successful outcome.
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Blacktown eclipses the eastern suburbs with highest auction clearance rate: CoreLogic

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Australia’s top property developers represented by the industry association Urban Taskforce Australia have come together with a proposal to the NSW Government to deliver a new form of affordable housing.
It has been suggested it could produce 40,000 new affordable homes in Sydney over the next 10 years.
“Sydney’s housing affordability crisis is clearly getting worse as indicated by calls for action by Federal Treasurer Scott Morrison and by State Planning Minister Rob Stokes’s recent statement about a shortage of 100,000 homes in Sydney,” says Urban Taskforce CEO, Chris Johnson.
“There is a simple answer to providing more homes and to housing affordability in Sydney by modifying slightly the NSW Affordable Rental Housing State Environmental Planning Policy.”
“The NSW government can modify the current Affordable Rental Housing SEPP to create a real incentive to the property industry to provide large numbers of affordable homes across Sydney.
"The current Affordable Rental Housing SEPP 2009 gives little incentive to the property industry to build affordable homes but by changing the formula to give a 20% bonus floor space and height, thousands of new affordable homes could be built each year.
"The effect of the 20% bonus would be that a 5 storey apartment building would become 6 storeys or a 10 storey block would become 12 storeys.”
“The Urban Taskforce estimates that up to 4,000 new affordable homes could be produced each year leading to 40,000 over a ten year period. This would have a massive impact on the current supply of affordable homes across Sydney at a scale we have never seen before.”
“The Urban Taskforce proposal uses the definition of affordable housing from the Federal Government’s National Rental Assistance Scheme (NRAS) where newly built 1,2,3 and 4 bedroom homes are rented at a 20 percent discount to the market rent of each local government area with dwellings remaining in the affordable housing scheme for up to 10 years. At the end of the 10 years the homes are sold back to the general market. This proposal ensures that affordable housing stock is constantly renewed and does not become run down. The developer also has the opportunity to recoup the costs of providing the housing at the end of the ten year period which ensures there is sufficient incentive to encourage developers to provide this form of housing.”
“Some Sydney councils champion inclusionary zoning where the developer must provide a percentage of homes as affordable but this is only another form of taxation on housing production, and will only increase the cost of the remaining houses being sold to mums and dads and first home buyers. We believe that rather than imposing a tax on the developer an incentive approach with bonus floor space is more equitable and more likely to lead to large numbers of affordable homes being built.”
“The scale of housing delivery of up to 4,000 a year along with the guaranteed 10 years rental income is likely to establish a new asset class for institutional investors like superannuation funds who like a low risk long term investment. This type of affordable housing product could potentially inject billions of dollars into affordable housing which currently is not being invested in the sector ensuring there is scale and enough housing for low to moderate income earning households. Attracting this institutional investment will ensure a long-term sustainable supply of affordable housing.”
“In places like the US, Canada and the UK institutional capital has been investing in affordable housing for more than 40 years but for a number of reasons Australia has missed out on this type of institutional investment in housing and as a result has made Sydney home prices one the most expensive in the world”.
“We call on the NSW Government to seriously consider our affordable housing proposal urgently. Our proposal doesn’t put any pressure on the government’s budget nor is it asking for any tax payers handout. It is a simple incentive based system which provides affordability across all of Sydney and across all dwelling sizes. All it needs is for the Planning Minister Rob Stokes to make an amendment to the existing Affordable Rental Housing SEPP,” says Chris Johnson.
“Sydney currently has a housing supply problem despite reaching 30,000 housing completions last financial year this is 6,000 less than the average needed each year for the next 20 years. To increase supply by 4,000 affordable homes a year will certainly help manage population growth.”
The Urban Taskforce established a special affordable housing sub-committee to develop the proposal.
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Bonus floor space sought by Sydney property developers to increase affordable home supply 

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A whole floor tenanted strata office investment on Pitt Street, Sydney in Randstad House on the market through Ray White Commercial Sydney’s Christian Minards and Anthony Harris.
The property, Level 4/109 Pitt Street, Sydney, is 930 sqm and has nine separate strata lots with existing leases.
According to Christian Minards the property will return net rental income of $530,000 per annum with a weighted average lease expiry (WALE) of 3.16 years as of October 2016.
Ranstad House has 20 levels of offices, a public car park for 143 cars and a ground level retail arcadewith direct access to Wynyard’s trains and buses.
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Mr Minards said the Sydney CBD is currently expiring an unprecedented level of capital works being undertaken being a mix of NSW Government and private enterprise investment.
“This is evident with the resumption of numerous office buildings for the Sydney Metro rail, light rail from Circular Quay down George Street and the redevelopment of Wynyard,” he said.
“The private enterprise developments are also gathering momentum with Brookfield set to build their office development above Wynyard Station while AMP will be looking to get moving with their plans for Quay Quarter. Ultimately these projects when completed will truly enhance the Core precinct of the CBD.”
The property will go to auction at 10:30am (AEDT) on Tuesday, October 25, 2016, at the Mezzanine level, 50 Margaret Street, Sydney.
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Whole Sydney CBD office level for sale

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Median house prices in Sydney began to escalate at the end of 2012 as successive cuts to interest rates and the underlying dwelling deficiency firmly in place released pent up demand into the market, according to QBE's latest housing report.
Sydney’s median house price experienced a considerable increase totalling 58% over the four years to June 2016 to be $1,047,600.
Purchaser demand was initially boosted by improved affordability as variable rates fell below 6.5% in 2012 keeping the ratio of mortgage repayments on a median priced house to just over 31% of average household income, which initiated the upturn before further interest rate cuts fuelled stronger price growth through 2013.
The return of solid price growth drove more investors into the market. At the same time, a strong recovery in the New South Wales economy, attracted surging overseas migration and a record low interstate outflow, which in turn caused Sydney’s dwelling deficiency to escalate.
As prices rose, the next wave of demand was driven by investor buyers attracted by price growth and attractive yields in light of the falling interest rates. The value of residential investor loans in New South Wales surged 153% in the three years to 2014/15. In comparison, the number of loans to owner occupiers were 9% higher in the same period.
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Median house price growth peaked at 24.4% per annum over 2014/15 but has since slowed considerably, estimated to have declined by a marginal 0.4% in the year to June 2016. Investor finance is now contracting after banks tightened access to credit and increased interest rates for investor loans in 2015.
Loans to investors began to fall dramatically in December quarter 2015, being 22% down on the corresponding period a year earlier, while the total annual decline of loans to investors in 2015/16 was 17%. Over the twelve months to June 2016, median house prices in inner and middle Sydney (where prices are significantly higher) were in decline while outer Sydney maintained growth of 3.9%.
This correction, largely driven by the impact of regulatory changes targeted at investor buyers, is in contrast to the strong fundamentals in the house market.
Vacancy rates continue to remain tight at 1.8% in June 2016 while underlying demand is forecast to remain strong due to strong population growth from solid net overseas migration and low net interstate migration.
With investors making room in the market, loans to owner occupiers have accelerated, recording an 11% rise in 2015/16.
This is expected to somewhat offset further expected weakness in investor loans, with Sydney’s median house price forecast to see further price growth of 1.7% in 2016/17 to be $1,065,000 at June 2017.
However, the growing impetus from owner occupiers is likely to slow. New dwelling supply began to exceed demand in 2015/16, with Sydney’s underlying dwelling deficiency finally beginning to ease.
Further expected falls in the deficiency through to 2018/19 is expected to continue to ease pressure on prices.
Together with continued weakening investor demand, this is expected to precipitate a fall in Sydney’s median house price.
Low interest rates should prevent any major flood of forced sales onto the market to drive down prices significantly, with a forecast fall in the standard variable rate to below 5% in 2017/18 also providing some support.
Sydney’s median house price is forecast to pull back to $1,055,000 by June 2018 and $1,050,000 by June 2019, resulting in median house price growth being effectively flat by the end of the forecast period.
New South Wales is the only state that is forecast to maintain its underlying dwelling deficiency through to 2019 despite record levels of dwelling completions coming through. Strong population growth has supported rising underlying demand while the low interest rate environment has supported affordability.
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Tight vacancy rates and limited rental growth are expected to continue to drive investor demand. Moreover, compared to many other capital cities, aggregate new dwelling supply in Sydney has been characterised by a proportionate increase in both new house and unit supply. As a result, both house and unit markets are likely to remain in deficiency over the forecast period.
Price growth in the Sydney unit market has been below that of the house market. Sydney’s median unit price rose by an estimated 41% in the four years to June 2016. However, price growth has already started to flatten with the median unit price growing by just 3% in 2015/16.
Slowing rental growth and falling yields as well as changes to the regulatory landscape have impacted investor demand. Investors are more prevalent in the unit market than the detached house market and it is expected that the larger falls expected in investor demand mean the unit market will have greater downside in price than the house market over the forecast period.
With higher interest rates and lower loan–to–value ratios for investor lending, capacity for investors to enter the market or pay higher prices is being curtailed. Similarly, the new level of apartment construction taking place may have an impact on vacancy rates and rental growth as the dwelling deficiency is slowly eroded.
Sydney’s median unit price growth is forecast to fall 1.8% in 2016/17 and cumulatively by 6.8% over the three years to June 2019 to a median unit price of $680,000.
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Sydney unit price growth forecast to be flat: QBE Housing Outlook

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The latest research from Sydney Units Cityscope shows that apartment sales in Sydney’s CBD have decreased appreciably both in number and total sales value in the last quarter, according to CoreLogic’s latest report.
For the three months to October 2016, there were 180 sales at a total value of $213 million, compared to 296 sales at a total value of $462.8 million for the previous quarter.
The yearly figures have increased in total sales value but decreased in number, with 898 sales at a total value of $1.15 billion for the twelve months to October 2016, compared to 947 sales at a total value of $1.04 billion for the previous year.
The table below shows sales recorded for the past eight updates of Sydney Units Cityscope:
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Notable sales in the October 2016 update of Sydney Units Cityscope include:
<ul>
<li>Lot 131, 157-167 Liverpool Street, Sydney, a 1,085-sqm apartment with four balconies, a terrace, deck and pool, two storage areas and five parking spaces in the basement, which was transferred for $30.15 million; 
</li>
<li>Unit 1101, 61-69 Macquarie Street, Sydney, a 203-sqm, two-bedroom apartment with balconies, a storage lot and basement parking for 3 cars, which sold for $9 million; 
</li>
<li>Unit 59, 155-161 Macquarie Street, Sydney, a 199-sqm, three-bedroom apartment with a balcony and basement parking for four cars, which sold for $4.25 million; and 
</li>
<li>Unit 2503, 127-153 Kent Street, Sydney, a 146-sqm, two-bedroom apartment with a balcony, which sold for $4 million.</li>
</ul>
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