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

Joel Robinson

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

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

Sammut secures approval for debut Brisbane apartment development in Toowong

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

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

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

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

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

WM Residences fills gap in Mordialloc townhouse market

Sydney

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A rare DA-approved residential site in Botany will go to auction in August 25 with a price guide of $10 million.
The site at <a href="https://www.realestate.com.au/property-other-nsw-botany-123164338" target="_blank">10-12 Morgan Street</a> comes with DA consent of a five-storey apartment block, with a mix of 34 one, two and three bedroom apartments.
There can also be basement parking with spaces for 58 cars.
The development could command a gross realisation of $30 million plus.
Tony Laing, listing agent and co-principal of Raine &amp; Horne Commercial Bondi Junction said it is certain to attract strong local and overseas developer interest.
“The real value in this site, which will go to public auction on Thursday 25 August, lies in the DA approval, and it’s expected the property could command a gross realisation of $30 million plus in off-the-plan sales for a developer."
Based on current property market conditions in Botany, Tony expects the 1-bedroom apartments will sell for between $650,000 and $700,000.
For a 2-bedroom apartment the expected price is $850,000- $925,000, while 3-bedroom apartments should fetch $1.1-$1.2 million.  
“We expect that once the apartments are ready to market, the development’s superb location will be a major selling point,” he said.
“The site is situated in a superb growth precinct in Botany, which is undergoing a major gentrification through a number of boutique residential developments, combined with the launch of more contemporary restaurants and alfresco cafes. 
“Botany now provides an affordable upmarket Eastern Suburbs lifestyle and is the logical next step for those priced out of the inner east.
“We expect the apartments will attract a young demographic, with a split of investors and owner-occupiers jockeying to buy into this rare residential opportunity.”
 
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j.ballantyne1990-6AQqhLzZaK

Rare DA-approved site in Botany with $30 million plus potential to go under the hammer

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The high quality of Australia’s universities is a major drawcard for international students, but accommodation availability is just not keeping up with supply in Sydney.
In the latest rankings, Sydney University sits on The Times Higher Education top 100, giving the long established international rivals a run for their money. It came in ranked at 61st in the world. The University of NSW joins Sydney among the universities in another ranking, the QS top 100. 
Australia's international student population continues to grow at a double digit rate, recent research from the estate agency, Savills International.
The OECD noted this reflects an international trend of student mobility when they reported more than four million international students were enrolled in tertiary education outside of their country of origin in 2013, an increase of 50 percent from 2005 levels.
Australia hosted the third largest number of international students at 6.2 percent in 2013, behind the US and UK at 19.4 percent and 10.3 percent respectively.
Sydney's standing contributes to robust demand for international student accommodation. 
New South Wales, then Victoria and Queensland have the greatest number of enrolments. 
NSW has around 327,000 domestic higher education students with another 93,000 international students.
The top nationalities, China, India, Vietnam, Republic of Korea and Malaysia. 
Chinese students provided over 27 percent of the total number of international students in Australia in 2015. 
Australia ranked as the third most popular destination for Chinese students (12.1 percent) after the US (33 percent) and Japan (12.3 percent). Australia was also third most popular for students from India after the US (48.2 percent) and UK (11.5 percent).
This has made property investors, institutional and private, move beyond the traditional property markets into student accommodation where the fundamentals are strong.
Some five percent of students are in university accommodation, five percent are in commercial accommodation with 90 percent renting privately or living at home.
At the moment there is a "critical undersupply" of appropriate Purpose Built Student Accommodation (PBSA) in Sydney, Savills Sydney student accommodation director Conal Newland said..
The high occupancy levels, robust revenue growth and attractive yield pricing make student accommodation is an attractive investment, he concluded.
The result of the growing levels of investor activity has meant that the student accommodation market is changing rapidly. 
Savills research indicates that more than $2 billion of capital has been earmarked for development projects across Australia since the start of 2015. 
Several new institutional investors have entered the market including Blue Sky Private Real Estate, Cedar Pacific, Global Student Accommodation, Scape, Valparaiso and Wee Hur. They have joined the likes of Unilodge, best known for their Central Park, Chippendale offering.
There are currently 67,695 PBSA beds in the eight Australian capital cities. All cities have an existing supply of less than 12 percent per full-time student with the exception of Canberra's 27 percent.
Melbourne and Brisbane have the largest development pipelines.
Sydney has a limited pipeline over the next four years with an additional 3,665 beds, of which around 38 percent are proposed by universities.
Savills nominated Urbanest as the most active off-campus developer with three properties completed since 2015 and another two in development.
Sydney saw 3,200 beds delivered in 2015 with these new properties trading at circa 70 percent occupancy in their first semester of operations.
In 2016 the average occupancy levels are at above 90 percent.
A number of universities, including the University of Western Sydney have commenced on-campus projects.
UNSW has been active delivering new halls of residence at the Kensington Campus in 2014 and 2015.
University of Sydney is an increasing participant – particularly at lower rental levels with the delivery of the Queen Mary building and weekly rents less than $300.
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jchancellor-FAypfDUnLy

 Student housing not meeting supply in Sydney

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A local owner-occupier has paid $8.6 million for an office/warehouse complex at Hornsby in Sydney’s north-west in an off-market deal brokered by Savills Australia.
The 29-33 King Road property comprises 4,697 square metres of industrial office and warehousing across three buildings, including 3918 square metres of warehouse and insulated cool room space and 779 square metres of office space. 
The property — one of the largest industrial facilities in the Hornsby Industrial Precinct — was sold subject to a short-term lease to integrated ovens and baking systems maker, Auto-Bake. 
Selling agent Leigh Burges of Savills said the buyer was seeking a spacious and well-presented facility with an efficient layout, including cranes and truck marshalling areas, in a good location.
The King Road location offers quick access to the M1 and M2 motorways, Burges said.
The vendor was a private investor.
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jonathanchancellor-7SQnKwU6yx

Owner-occupier pays $8.6 million for warehouse in Sydney’s Hornsby through Savills

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GUEST OBSERVER
The announcement by the Minister for Social Housing Brad Hazzard that the Riverwood social housing estate will be renewed with a mix of private, social and affordable housing demonstrates the value of Private Public Partnerships.
The recently completed mix of social and market housing at Riverwood delivered by Urban Taskforce member PAYCE Consolidated demonstrates how the same quality of building can house a mixture of private owners and social housing tenants.
The social housing component is managed by St George Community Housing who are also a member of the Urban Taskforce.
The scale of development at Riverwood is particularly large with around 1,600 new social and affordable housing that are expected to be funded by an even greater number of private sector homes spread across a 30.5 hectare site.
Precinct wide developments like this are a good use of Private Public Partnerships as the innovation of the private sector is maximised, financial returns for the developer and investor are secured, while balanced by the provision of community amenities, services and infrastructure.
It will be important to have a realistic tendering process that respects the input of the private sector rather than having a process that is overly prescriptive. The private sector may well have ideas about site layouts, construction methods, materials and the design of the public spaces that are innovative and these innovative approaches need to be encouraged.
The Urban Taskforce is supportive of the renewal process being driven by Minister Hazzard and the Government’s approach of opening the process to private sector innovation.
 
Chris Johnson is chief executive officer of property development industry group Urban Taskforce and can be contacted <a href="https://www.urbantaskforce.com.au/index.php?option=com_content&amp;view=article&amp;id=97&amp;Itemid=126#.Vdaart55dFI" target="_blank">here</a>.
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Proof private owners and social housing tenants can live side by side: Chris Johnson

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No-one predicted Sydney's residential price growth would be as strong as it is has been to the halfway point of the year. 
Sydney prices are up around 9 percent so far this year which puts median house prices at around $890,000 and apartments at around $680,000.
All the 2016 forecasts of the Sydney property market had the brakes going on after three years of strong double digit annual growth.
Even the Reserve Bank of Australia Governor Glenn Stevens didn't see it happening when he gave his predictions for the Sydney property market in his appearance before the House of Representatives Standing Committee on Economics in February. 
Glenn Stevens suggested home prices would “take a bit of a breather for a while” with the slowdown in Sydney prices “quite welcome.”
He'd previously noted the panicked buying that had been fuelling the boom in Sydney had eased following tougher lending rules imposed by the Australian Prudential Regulatory Authority. 
"I think what we've seen is that things have calmed down a bit."
The current growth cycle has been running for four years since early 2012. Sydney ranks as the capital city with the largest gains over the cycle with dwelling values some 57 percent higher.
Private treaty home are selling in quick time, in just 31 days according to CoreLogic. Auction clearance rates are sitting at above 70 percent. Values are up around 12 percent annually.
This latest price re-acceleration, after a periodic dip or two, has almost become the trend rate given the current low interest rate backdrop, albeit without the incessant boom headlines in the media.
Most of the prices being paid are solid, rather than panicked, but they are still too expensive for many.
We can't keep going at this pace, especially with our low inflation wage environment.
Buyers are taking on more debt than they could ever repay if interest rates rose significantly, the big dark cloud that doesn't appear to be closing in quite yet.
The latest forecast on house price growth suggests things might slacken off and soon.
Indeed price growth is set to halve over forthcoming months, according to the HSBC chief economist Paul Bloxham who said the house price growth was "somewhat surprising."
Bloxham points to three factors in his forecast.
He suggests the escalation of the taxation of foreign buyers to weigh on the market, along with ever tighter lending standards, and also an oversupply of apartments.
He forecasts national growth to slow from the national 9 percent in 2015 to around 4 percent to 5 percent later this year.
The 2017 house price growth will be even slower - between 0 percent and 5 percent, he tips.
Bloxham points to solid demand from foreign buyers as one of the main causes for the continued impressive growth in Sydney. 
Given the recent fall of the Australian dollar against the yuan, Australian housing was just as cheap now for a Chinese buyer as it was four years ago, he said.
But he expects recent increased stamp duty and land taxes for foreign buyers and changes to local bank lending practices as likely to weaken this demand over coming quarters.
Bloxham anticipates further tightening of lending standards for Australian borrowers should there be a strong pick-up in investor borrowing.
The mooted oversupply of apartments will be the third factor prompting house price growth to halve by year's end, though Bloxham concedes the oversupply won't happen for a while yet, if at all in Sydney.
This article was first published in the Saturday Daily Telegraph. 
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Low interest rates yes, but several factors working against continued Sydney surge

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Landlord-favourable markets have allowed Sydney and Melbourne CBD office markets to record their strongest rental growth in over five years, according to real estate services firm Cushman and Wakefield's latest report. 
Their MarketBeat report series for Brisbane, Melbourne and Sydney CBD office markets reveals that growth in service sector employment is driving strong demand in Sydney and Melbourne, but Brisbane is yet to feel the effects. 
Above average economic growth in New South Wales of 3.5% over the past year, compared to trend of 3.1%, has continued to fuel demand for office space. Vacancy has remained tight despite an injection of new supply to Sydney CBD in the first half of 2016, including international Tower 3 and 200 George Street.
“Enquiry levels have been very high in Sydney. When combined with limited vacant space has resulted in gross effective rents rising over 6% this quarter. This is the strongest quarterly gain we have seen in Sydney since 2008,” said Tim Molchanoff, head of Office Leasing.
 <img src="/images/2016/07/01/Screen%20Shot%202016-07-03%20at%2011.58.16%20PM.png" alt="">
<img src="/images/2016/07/01/Screen%20Shot%202016-07-03%20at%2011.56.13%20PM.png" alt=""> 
While CBD office rental growth has been stronger in Sydney, Melbourne's CBD is also experiencing rising demand with no new stock added in Q2 and vacancy below the long-run average. The landlord favourable market has resulted in prime net rents rising 3.3% in Q2, the strongest quarterly rise since 2011.
 <img src="/images/2016/07/01/Screen%20Shot%202016-07-04%20at%2012.03.31%20AM.png" alt="">
 <img src="/images/2016/07/01/Screen%20Shot%202016-07-04%20at%2012.01.51%20AM.png" alt="">
In contrast, rents in Brisbane eased further over the quarter. The market is set to experience double the long-term average new supply in 2016, with over 133,000 sqm expected over the year. While this new supply will keep direct vacancy at near record levels, much of the impact has now been priced into prime market rents.
“We estimate that the market is now at, or near, the bottom of the cycle. Although there are green shoots of recovery such as ongoing employment growth in the finance sector, it will likely take some time for a significant tranche of this current vacancy to be absorbed," said Dr Dominic Brown, head of Australia &amp; New Zealand Research.
 <img src="/images/2016/07/01/Screen%20Shot%202016-07-04%20at%2012.09.12%20AM.png" alt="">
<img src="/images/2016/07/01/Screen%20Shot%202016-07-04%20at%2012.05.28%20AM.png" alt="">
 
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Sydney office rents surge ahead in Q2 2016: Cushman and Wakefield

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Strong growth in Australia’s aged care sector has underpinned the sale of a 4,071 sqm landholding in Sydney's North Manly.
An aged care provider secured the Warringah Golf Club’s clubhouse facilities at 397 Condamine Street.
The sale follows the proposed relocation of Warringah Golf Club’s clubhouse facilities to a new site on the golf course, or close to it. 
The deal was brokered by CBRE’s Aaron Arias, Richard Gell and Matthew Sartori. The actual price wasn't disclosed.
“The strong result reflects the current strength in demand for residential development and aged sites in the sub $20 million price range," Arias said.
CBRE’s health, aged care and retirement living specialist Matthew Sartori said while many providers look to acquire regional bed licenses to operate facilities prior to acquiring greenfield sites, some operators were looking to purchase greenfield sites earlier to guarantee location of choice. 
“Typically, aged care has not been able to compete with the residential development market on prime sites, but with a bit of a shift within the market, and with perceived over-supply of residential in certain areas, with the right site criteria, this is changing – as demonstrated by this sale,” Sartori said. 
Further evidencing the momentum in the aged care market, a private operator recently secured a residential site within the mid-north coast region, close to health facilities.
Also in Sydney’s northern suburbs, a Frenchs Forest site within the proposed Health Employment Precinct exchanged hands with healthcare development being the most likely future use. CBRE brokered the deal. 
“The elderly and healthcare will play a significant part of our economy and country for years to come, as well as countries around the world, in an unprecedented way,” Sartori said. 
 
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Aged care provider secures Warringah Golf Clubhouse site in Sydney

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Surface coatings service provider Wethpark Holdings has sold an industrial property in Sydney's Smithfield for $1.56 million. 
The 2,595 sqm corner site at 1 Hume Road is fully fenced with electric fences and comprises freestanding offices and amenities, as well as five ongrade roller shutter doors and six loading docks. 
CBRE’s John Micallef and Elijah Shakir negotiated the sale on behalf of Wethpark Holdings to a private buyer. 
It was previously used as a transport yard and the site's current setup is ideal for yard users, according to the agents.
It recently received development approval for a new warehouse/office construction.
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Surface coaters sell industrial site in Sydney's Smithfield 

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A corner block in Sydney’s inner west suburb of Rozelle fetched $5.3 million at auction recently, more than $1 million above its reserve price.
The 610-612A Darling Street property comprises three adjoining terraces and three retail shops and has a total land area of nearly 493 sqm.
The three residential flats earn a steady rental income. The property is fully leased with a gross income of approximately $249,440 pa + GST.
The property was sold through Raymond Hung of Raymond Hung Real Estate at June 30 Cooley Auction.
In addition to excellent exposure, the property is very near to Rozelle weekend markets.
 
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Corner block in Sydney's Rozelle sells $1 million above reserve

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The former site of Italian biscuit manufacturer, Aurora Biscuits, in Sydney’s Marrickville has sold for $2.633 million to a private investor through Raine &amp; Horne.
The factory, located at 44 Shepherd Street, is on 500 sqm land area and the selling price of $5,266 per square metre was “a record result for Marrickville,” said selling agent Luke Smith of Raine &amp; Horne Commercial. 
Aurora Biscuits, famous for its green and red labelling, is winding down after current owner Joe Gullotto was unable to find a buyer to take over the biscuit manufacturer. The manufacturer’s products have been a regular on the shelves of independent grocers for the past 50 years.
“The factory is nearly 850 sqm over two levels and is zoned B7 Business Park making it ideal for a wide range of reconfigurations or developments,” said Smith.
The factory and warehouse offers front and rear roller shutter access, a goods hoist to the first floor, ample 3-phase power, car parking and a 2.3 X 2.3 m cool room.
“Located in a popular and central position just 6 kilometres from the Sydney CBD, this property is part of a rapidly evolving precinct that is attracting food providers, micro-breweries, bakeries, marketing agencies, coffee roasters, gyms and cafes, in addition to the district’s traditional industrial tenants,” said Smith.
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