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


Joel Robinson

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

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


Sammut secures approval for debut Brisbane apartment development in Toowong

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


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

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


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

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


WM Residences fills gap in Mordialloc townhouse market

Sydney

<html><body>
<p>CoreLogic data shows settled transaction numbers have levelled over the most recent three months.</p>
<p>At just under 110,000 settled transactions, sale numbers are down 5.3% compared with the June quarter.</p>
<p>They are 15% lower than the September quarter last year.</p>
<p>There are fewer than 20,000 dwellings currently being advertised for sale across Sydney, which is less than half the number of homes that were listed for sale five years ago.</p>
<p>CoreLogic head of research Tim Lawless said reduced stock levels create urgency in the market, adding to the upwards pressure on dwelling values.</p>
<p>“Conversely, in markets like Perth and Darwin, where dwelling values have been falling consistently, the slowdown in transaction numbers is related to demand, which is evidenced by the higher number of homes available for sale, as well as the sharp slowdown in migration rates.</p>
<p>"With advertised stock levels close to record highs in Perth and Darwin, buyers now have a lot more choice when selecting a property and can negotiate hard on price,” he said.</p>
<p>Perth and Darwin have consistently been recording the highest vendor discounting rates at just over 8% on average, as well as the longest average selling time at 75 and 84 days on average.</p>
<p> </p>
<p><a href="/images/2016/10/03/Monthly%20settled%20dwelling%20sales%20national.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/10/03/Monthly%20settled%20dwelling%20sales%20national.jpg" alt=""></p>
<p><span style="font-size: 12.16px; line-height: 1.3em;">As the spring selling season progresses, CoreLogic is now seeing a rise in newly advertised listing numbers, however, there are fewer newly advertised properties entering the market compared with a year ago across the combined capital cities.</span></p>
<p>Lawless said the weaker new listing trend is mostly attributable to the Sydney market, where newly advertised listings are 18% lower than the same time last year.”</p>
<p>“Interestingly, real estate agent activity across CoreLogic platforms, as measured by the CoreLogic listings index, has been tracking higher than a year ago, despite the lower amount of fresh stock being added to the market. Increased levels of agent activity translating into fewer new listings indicates a heighted level of competition amongst real estate agents for listings. Sellers may also be nervous about selling in a strong market, especially with the consequential challenges of buying well in that same market.”</p>
<p>According to Mr Lawless another factor affecting transaction counts is the level of undercounting due to the record-high number of off-the-plan sales yet to reach settlement.</p>
<p>As off-the-plan units move through their settlement phase, transaction numbers will revise higher, he said. </p>
<p>He also suggested despite the low mortgage rate environment, high transaction costs may also be a disincentive for the lower numbers transacting in the housing market.</p>
<p>"Due to bracket creep and higher dwelling values, we’ve also seen stamp duty dollar value payments rise substantially.</p>
<p>"In addition, percentage-based expenses such as agency commission fees for vendors have moved higher as the value of housing rises.</p>
<p>"It is likely that an increasing number of home owners are weighing up the pros and cons of the costs associated with selling and buying, or, staying where they are.</p>
<p>"It seems an increasing number, particularly in Sydney, are choosing the latter.”</p>
<p>“Clearly, many factors are at play across Australia’s housing market. In fact, there isn’t just ‘one’ single housing market nationally, there are a multitude where conditions vary substantially by way of geography, housing type, and price point,” he said.</p>
</body></html>

jchancellor-FAypfDUnLy

Just how much Sydney property listings have shrunk: CoreLogic

<html><body>
<p>NSW Government figures showing new home building in Sydney at a 16-year high have been welcomed by the Housing Industry Association.</p>
<p>HIA Senior Economist Shane Garrett said these figures from the NSW Department of Planning &amp; Environment indicate that 30,191 new homes were completed in Sydney during 2015/16, the highest since 1999/2000.</p>
<p>“This represents a 10.4 per cent increase on the previous financial year, with multi-units now accounting for two out of every three new homes in the Sydney area,” he said.</p>
<p>In 2015-2016, 30,191 new houses and apartments were completed, up 10 per cent year-on-year, figures from the Metropolitan Housing Monitor released to Fairfax Media on Tuesday found. This compared to 30,520 new homes built in 1999-2000, when builders were rushing into the market before the introduction of GST in July 2000.</p>
<p>About 40 percent of the completed houses and apartments were concentrated in six local government areas, including the City of Sydney, Blacktown, Camden, Parramatta, Liverpool and The Hills.</p>
<p>“The output of the residential building industry has provided homes for almost 80,000 people in the Sydney area during 2015/16 alone. It is important that Sydney’s dwelling stock expands in order to accommodate the strong, migration-driven growth in the local labour market," he said.</p>
<p>“The strength of new home building in Sydney over the past few years owes much to the low interest rates in place, as well as the rebound in tourism and skilled services in the city.</p>
<p>“However, obstacles with respect to planning, land supply and the affordable delivery of housing infrastructure all risk preventing the Sydney economy from reaching its full potential over the long term."</p>
</body></html>

j.ballantyne1990-6AQqhLzZaK

Sydney home building at 16-year high: HIA

<html><body>
<p>Pegasus, one of Palm Beach’s landmark properties, remains for sale.  </p>
<p>The north-facing residence has been the home of retired law professor <span>Jane Swanton </span>since the 1970s.</p>
<p><img src="/images/2016/09/29/Pegasus%20interior.jpg" alt="" width="341" height="181"> </p>
<p>Swanton was the first female graduate of the law school to be appointed to the lecturing staff of Sydney University.</p>
<p>The two-storey house is perched on a triangular 1144 square metre block above the Palm Beach baths.</p>
<p>It has five bedrooms, two bathrooms and takes in panoramic views over the beach, Pittwater and north along the coast.</p>
<p><img src="/images/2016/09/29/Pegasus%20exterior%202.jpg" alt="" width="351" height="171"></p>
<p>Peter Robinson and David Edwards, of LJ Hooker Palm Beach, are selling the<a href="https://www.realestate.com.au/property-house-nsw-palm+beach-123430822" target="_blank"> white 1940s house with its yellow awnings</a>.</p>
<p>There was a $12 million asking price. </p>
</body></html>

Pegasus at Palm Beach yet to find buyer

<html><body>
<p>The Sydney metropolitian council regions with the highest proportion of loss-making resales over the June quarter were: Fairfield (5.1%) and both Gosford and Strathfield (4.4%), according to the latest CoreLogic Pain and Gain report. </p>
<p>The report compares the most recent sale price to the previous sale price in order to determine whether the property sold at a gross profit or gross loss.</p>
<p>Some 2.5% of Sydney houses and 2.1% of units resold at a loss over the second quarter of 2016, with the proportion of loss-making resales remaining at near record lows.</p>
<p>Only 2% of homes resold in Sydney over the second quarter of 2015 sold at a loss.</p>
<p><a href="/images/2016/09/28/pain%20and%20gain%20sydney.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/09/28/pain%20and%20gain%20sydney.jpg" alt=""></p>
<p>The Botany Bay council area recorded no resales at a loss over the quarter.</p>
<p>Even those council areas that recorded the highest proportion of loss-making resales recorded a very low proportion of loss-making resales relative to other areas of the country.</p>
<p><a href="/images/2016/09/28/sydney%20pain%20and%20gain%20chart.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/09/28/sydney%20pain%20and%20gain%20chart.jpg" alt="" style="display: block; margin-left: auto; margin-right: auto;"></p>
<p>Get the full report <a href="https://www.corelogic.com.au/news/file-download?id=56fe4d38-98f3-4f82-b763-e91283945def" target="_blank">here</a></p>
</body></html>

Fairfield ranks as Sydney's weakest property location: CoreLogic

<html><body>
<p>Sydney-based developer JQZ has acquired a factory site previously used by the chocolate-maker Darrell Lea in Kogarah, with plans to build more than 550 apartments and townhouses.</p>
<p>Although the price wasn’t disclosed, the deal is believed to be nearly $80 million. JQZ bought the site from Land &amp; Portfolio Pty Ltd - a Lea family company. </p>
<p>The site at 152-206 Rocky Point Road spans nearly 3.3 hectares, with JQZ proposing to build a mixed-use community that will include four towers with about 550 apartments and 18 townhouses.</p>
<p>Jian Qiu Zhang, founder and CEO of JQZ, said the site was perfect for a new master-planned community.</p>
<p>“Kogarah has been identified as a ‘strategic centre’ by the NSW government.  This community will be perfectly located within two to three kilometres of the major employment hubs of Hurstville and Kogarah,” he said.</p>
<p>“Kogarah is home to St George Bank’s head office, which once its major renovation is complete, should result in 3,000 jobs on the site.” </p>
<p>Construction is expected to commence in January 2017 and will be undertaken by JQZ’s own in-house building service.</p>
<p>The site was formerly the factory of confectioner Darrell Lea for many decades. Brisbane-based Quinn family of VIP Pet Foods bought Darrell Lea in 2012, but in 2014 they closed the factory and moved the Darrell Lea manufacturing business to Ingleburn in Sydney’s south-west fringe. Since then the factory site has been vacant.</p>
<p>JQZ expects the development will attract investors, first home buyers and downsizers.  </p>
<p>The site is close to schools and educational institutes such as TAFE and transport. Shopping centres, cafe and restaurants are nearby.</p>
</body></html>

jonathanchancellor-7SQnKwU6yx

JQZ buys former Darrell Lea site in Sydney's Kogarah for apartment project

<html><body>
<p>Centuria Property Funds has unconditionally exchanged on the sale of its commercial office property located at 90 Crown Street, Wollongong.</p>
<p>The gross sale price was $43.9 million to a Melbourne based funds management group.</p>
<p>It sets a new record for the Wollongong commercial property market achieving rate per square of $4,786.</p>
<p>The asset was purchased in 2005 for $30.675 million.</p>
<p>According to Jason Huljich, CEO of Unlisted Property at Centuria, Wollongong has recently received significant interest from investors as yields continue to compress in traditional core markets.</p>
<p>“Although much of Centuria’s investment focus is on major metropolitan and fringe markets, primarily in Sydney, Melbourne and Brisbane, where buyer demand has been expanding significantly, we are also seeing strong demand within the core regional markets such as Wollongong,” said Mr Huljich.</p>
<p>“90 Crown Street is well located within the heart of the Wollongong CBD, with excellent access to retail, entertainment and transport links. As one of only a limited number of office developments in the market designed to attract corporate and government occupiers, this landmark property attracted substantial interest from investors.</p>
<p>“Ongoing upgrades to the Wollongong city centre, the expansion of the Wollongong Public Hospital and its popularity for both business and lifestyle have also driven buyer demand,” he said.</p>
<p>Mr Huljich said interest in the sales campaign and the record rate per square metre were validations of Centuria’s active management philosophy.</p>
<p>“The property is fully leased, primarily to Government tenants and delivers an estimated annual income of $3,636,018, which equates to a passing yield of 8.3 percent.</p>
<p>“While managing the asset, Centuria undertook various works to improve the building’s sustainability, achieving a NABERS rating of 4.5 stars and over 70% of the leases were reset prior to taking the asset to market.</p>
<p>"Development approval for additional office and retail space was also secured, which contributed to achieving an excellent result for investors,” he said.</p>
<p>The sale was managed by Knight Frank’s Richard Garland and Jonathan Vaughan, in collaboration with MMJ Real Estate -Wollongong's Geoff Jones, Travis Machan and Tim Jones.</p>
</body></html>

Centuria exchanges 90 Crown Street Wollongong for record price

<html><body>
<p>Matraville is set for a new residential development for August 2017 with the construction of Verge.</p>
<p>Verge Matraville encompasses a collection of 22 two and three bedroom apartments, with many enjoying city, Botany Bat and surrounding parkland views.</p>
<p>Prices for the apartments start from $865,000 for two bedrooms and $995,000 for the three bedrooms.</p>
<p>A colour palette of turquoise blue and green inspired by the ocean contrasts with tones of pastel oranges, wile grey oak timber graces the floor.</p>
<p>The gourmet kitchens feature CaesarStone bench tops, breakfast bars and splash backs.</p>
<p>The building will also feature street-level retail spaces.</p>
<p>For more information, <a href="https://www.vergematraville.com.au" target="_blank">click here.</a></p>
<p> </p>
<p> </p>
</body></html>

Verge Matraville set for August 2017 completion

<html><body>
<p>Sydney is at risk of a "housing bubble", according to a report from UBS Wealth Management.</p>
<div>
<p>The UBS Global Real Estate Bubble Index report analysed residential property prices in 18 cities around the world. </p>
<p>UBS says Sydney's housing market has been overheating since the city became a target for foreign investors several years ago.</p>
<p>It had been the least risky city in Asia Pacific in 2012. </p>
<p><a href="/images/2016/09/27/Screen%20Shot%202016-09-28%20at%207.16.56%20AM.png" target="_blank"><br class="Apple-interchange-newline">Click to enlarge</a></p>
<p><img src="/images/2016/09/27/Screen%20Shot%202016-09-28%20at%207.16.56%20AM.png" alt=""></p>
<p>"When combined with rigid supply and sustained demand from China, this has produced an ideal setting for excesses in house prices," the report said.</p>
<p>Sydney housing prices peaked in the second half of 2015 after an increase of 45% since mid-2012.</p>
<p>"Since then, prices have corrected by a low single-digit," it noted on Sydney.</p>
<p>"The Australian residential market is influenced by a rapidly growing foreign demand (in particular, Chinese), which has tripled in value over the last three years.</p>
<p>"Increasing supply and further tax measures to reduce foreign housing investments may end the price boom rather abruptly." </p>
<p>The report noted the situation is fragile for the most overvalued housing markets.</p>
<p>A sharp increase in supply, higher interest rates or shifts in the international flow of capital could trigger a major price correction at any time, the report warned.</p>
<p><a href="/images/2016/09/28/Screen%20Shot%202016-09-28%20at%2010.52.29%20AM.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/09/28/Screen%20Shot%202016-09-28%20at%2010.52.29%20AM.png" alt=""></p>
<p>Vancouver tops the index in 2016.</p>
<p>"Bubble risk also seems eminent in London, Stockholm, Sydney, Munich and Hong Kong.</p>
<p>"Deviations from the long-term norm point to overvalued housing markets in San Francisco and Amsterdam.</p>
<p>"Valuations are also stretched, but to a lesser degree, in Zurich, Paris, Geneva, Tokyo and Frankfurt."</p>
<p>In contrast, Singapore, Boston, New York and Milan are fairly valued, while Chicago’s housing market remains undervalued relative to its own history.</p>
<p>While property overvaluations have become more pronounced in many major cities since 2011, according to the report, Vancouver faces the greatest risk of a housing bubble, while London is the riskiest city among the major financial centres. </p>
<p>In contrast, New York, Hong Kong and Singapore prices have stagnated or decreased over the last year, according to the index.</p>
<p>The report noted 'bubble risk zones" where prices within that zone have increased by 50 per cent on average since 2011. </p>
<p>"What these cities have in common are excessively low interest rates, which are not consistent with the robust performance of the real economy," the report stated.</p>
<p>"In a world in which more than a third of all government bonds offer negative yields, investing in tangible assets remains popular.</p>
<p>"So it is hardly any wonder that housing markets are again overheating, just a few years after the last major wave of global correction.</p>
<p>"We see a significant overvaluation of housing markets in some key financial centers.</p>
<p>"What these cities have in common are excessively low interest rates, which are not consistent with the robust performance of the real economy.</p>
<p>"This is illustrated by the Eurozone, where monetary policy cannot accommodate the macroeconomic differences between the countries.</p>
<p>"Yet other countries such as Australia, Canada and the UK are also keeping their interest rates artificially low.</p>
<p>"When combined with rigid supply as well as sustained demand from China, this has produced an ideal setting for excesses in house prices.</p>
<p>"Even in the cities with the clearest signs of a real estate bubble, it is not possible to predict exactly the timing and duration of a correction.</p>
<p>"The situation is nevertheless fragile for housing markets.</p>
<p>"A sharp increase in supply, higher interest rates or shifts in the international flow of capital could trigger a major price correction at any time."</p>
<p>It says the publication UBS Global Real Estate Bubble Index reveals the financial centers where the imbalances are most apparent, and the cities where house prices still have fair valuations overall. </p>
</div>
</body></html>

UBS sees overheated Sydney's housing bubble risk

<html><body>
<p>If online listings are any guide, the rental market in Sydney has been tightening lately, with fewer rentals being advertised across a high number of suburbs.</p>
<p>According to the REINSW inner Sydney vacancy rates were unchanged in August at 1.9 per cent, but middle ring Sydney tightened by 0.3 per cent to 1.6 percent, while outer Sydney's vacancy rate of 1.7 per cent was the lowest since November 2015.</p>
<p><a href="/images/2016/09/23/B1-1.jpg" target="_blank">Click to enlarge</a></p>
<div id="x_post-body-4479739622962738159" class="x_post-body x_entry-content">
<div class="x_separator"><img src="/images/2016/09/23/B1-1.jpg" alt=""></div>
<br><div>Smoothing the figures on a 4mMA basis to nip out a bit of the noise shows that Sydney vacancy rates have been fairly flat over the past year in the middle and outer ring, but are some way tighter in the inner suburbs.</div>
<div> </div>
<div><a href="/images/2016/09/23/B2-1.jpg" target="_blank">Click to enlarge</a></div>
<br><div class="x_separator"><img src="/images/2016/09/23/B2-1.jpg" alt=""></div>
<div> </div>
<div>The vacancy rate in Newcastle has sneaked back up to 3 percent.</div>
<div> </div>
<div>The Tenants' Union (TU) Rent Tracker found that Sydney unit rents moved 5 percent higher over the past year, while house rents were 3 percent higher. </div>
<div> </div>
<div><a href="/images/2016/09/23/Rents1.jpg" target="_blank">Click to enlarge</a></div>
<br><div class="x_separator"><img src="/images/2016/09/23/Rents1.jpg" alt=""></div>
<br><div>Rents have moved sharply higher in Randwick and Woollahra over the past year according to the TU, but regional areas have been found to be "much more stable".</div>
<div> </div>
<div>The TU believes that the CPI measures understate Sydney's rental price growth. Their long run data also shows Sydney rents rising much faster than inflation.</div>
<br><div class="x_separator"><a href="/images/2016/09/23/A4.jpg" target="_blank">Click to enlarge</a></div>
<div class="x_separator"><img src="/images/2016/09/23/A4.jpg" alt=""></div>
<div class="x_separator"> </div>
<div class="x_separator"><span>According to the TU over the last 20 years new rents have generally increased at an average of around 8 per cent across Sydney and 5 per cent across the rest of New South Wales.</span></div>
<div class="x_separator"><span> </span></div>
<div class="x_separator">
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
</div>
</div>
</body></html>

pwargent-M4siyDbqQY

Sydney vacancy rates tighten again

<html><body>
<div id="post-body-8750789597338754868" class="post-body entry-content">
<div>If there's a subject that I get more emails about than anything else it's the supply of new apartments in Sydney.</div>
<div> </div>
<div>When prices take off you should generally expect a supply response as more projects become viable, until eventually the new supply kills the up-cycle.</div>
<div> </div>
<div><a href="/images/2016/09/22/8.3%20PROPERTY%20CONSTRUCTION%20CYCLE.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2016/09/22/8.3%20PROPERTY%20CONSTRUCTION%20CYCLE.jpg" alt=""></div>
<div> </div>
<div>And after a period of under-building you only need a working pair of eyes to see that this is taking place in Sydney.</div>
<div> </div>
<div>But instead of drawing conclusions based on emotions or pre-determined 'crashnik' conclusions, let's take a look at what the actual numbers say to see whether we can draw some more specific inferences. </div>
<div><strong><span style="text-decoration: underline;"> </span></strong></div>
<div><strong><span style="text-decoration: underline;">Approvals boom</span></strong></div>
<div> </div>
<div>The first thing to note is how far approvals are tilted towards the multi-unit sector in Sydney today, partly as a result of the constrained supply of land close to the city and the Pacific Ocean.</div>
<br>There were some 55,458 approvals over the year to May 2016 - almost double the level of three years ago - and almost exactly two-thirds of these were multi-units at 66 per cent.<br><br><a href="/images/2016/09/22/A2.jpg" target="_blank">Click to enlarge</a>
</div>
<div class="post-body entry-content">
<img src="/images/2016/09/22/A2.jpg" alt=""><br><br><div>When looking at the individual LGAs the most striking point of note is just how many approvals there have been in western areas such as Camden, Blacktown, Parramatta, and Liverpool, as well as in the increasingly populated Hills District.</div>
<div> </div>
<div>Incidentally, the Sydney LGA actually covers an enormous area and more than thirty inner ring suburbs, so it's generally expected that there would be the highest number of approvals in that LGA.</div>
<br><a href="/images/2016/09/22/A3.jpg" target="_blank">Click to enlarge</a>
</div>
<div class="post-body entry-content">
<img src="/images/2016/09/22/A3.jpg" alt=""><br><br><div>When the weight of new apartment supply hits home there is likely to be fallout in some of these western suburban localities.</div>
<div> </div>
<div>It's also noticeable how remarkably few approvals there have been in some of the blue chip LGAs such as Mosman, Hunters Hill, Manly, and Woollahra. </div>
<div><strong><span style="text-decoration: underline;"> </span></strong></div>
<div><strong><span style="text-decoration: underline;">Completions lag</span></strong></div>
<br><div>If the impact of the supply response has been muted to date, then the next chart explains why. </div>
<div> </div>
<div>Despite a 21 per cent year on year increase in annual approvals, annual net dwelling completions have increased by only 3 per cent to 30,901 in the year to May 2016 (with a slightly lower 62 per cent of these being multi-unit dwellings).</div>
<div> </div>
<div>While this is an improvement in completions of about one third over the past three years, it needs to be acknowledged that the Greater Sydney population growth is now tracking at abou<span>t <span>~</span>85,00</span>0 per annum (while the cyclical low for completions in 2009 was cataclysmically bad, and the lowest nadir since 1953).</div>
<div> </div>
<div class="separator"><a href="/images/2016/09/22/A1.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"><img src="/images/2016/09/22/A1.jpg" alt=""></div>
<br><div>This implies that as I have concluded here previously the ratio of dwelling completions to population growth in Sydney was still tracking at below its long run average at least until 31 May 2016.</div>
<div> </div>
<div>And although population growth in Sydney is higher today than it was in the past, there have been 10 years since 1950 where more net dwelling completions were notched up than there were over the past year. </div>
<div class="separator"> </div>
<div class="separator">A prime reason for the supply response being slower than through preceding market cycles is that multi-unit projects on brownfield sites requiring land remediation take a great deal longer to complete than turnkey detached housing developments on greenfield land. </div>
<div class="separator"> </div>
<div class="separator">The number of net dwelling completions remains almost comically low in the blue chip LGAs of the eastern suburbs and lower north shore - with NIMBYism clearly alive and well - but supply is starting to hit its straps in some of the aforementioned higher-density LGAs.</div>
<div class="separator"> </div>
<div class="separator"><a href="/images/2016/09/22/A4.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"><img src="/images/2016/09/22/A4.jpg" alt=""></div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Where the pipeline will hurt</span></strong></div>
<div> </div>
<div>The widening gap between approvals and completions means that there are more dwellings under construction in Sydney than has ever been the case before in any Australian city. </div>
<div> </div>
<div>In particular, there is a concentration risk in play with so many of the dwellings under construction being high-rise apartments. </div>
<div> </div>
<div>Take a look at the figures for Parramatta, for example, where there have been 8,646 multi-unit approvals since July 2012 but only 4,946 net dwelling completions. </div>
<div> </div>
<div>That's one heck of a potential supply pipeline, with more units due to come online in adjoining LGAs as well. </div>
<br><div class="separator"><a href="/images/2016/09/22/A5.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"><img src="/images/2016/09/22/A5.jpg" alt=""></div>
<br><strong><span style="text-decoration: underline;">The wrap</span></strong><br><br><div>These data lag by a few months, and they show that despite having had relatively little impact to date Sydney's supply response is poised like a coiled spring. </div>
<div> </div>
<div>Up until the end of May 2016 net dwelling completions had barely increased from the prior year in tracking at around 30,000.<br><br>However, there is a record number of dwellings in the under construction phase, so this will be one data series to watch closely. </div>
<div> </div>
</div>
<div class="post-footer">
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
</div>
</body></html>

Sydney

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

Sydney

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

Developments

New apartments

New townhouses

News