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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As the debate escalates on whether Sydney house prices are set to fall, plateau or edge up in 2016, a very small number of loss making sales are occurring across Sydney. Rare opportunities to possibly snare a bargain.
Currently only 1.7 per cent of homes sold are selling at a loss for their vendor based on their prior purchase price, according to CoreLogic RP Data, with the numbers increasing the further outside of what were the early 2015 suburban Sydney hotspots.
In recent months the municipalities of Rockdale, Fairfield and Ashfield have had three percent or higher of sales as loss takers.
Regional Sydney loss-making districts have been Wyong, Gosford and the Blue Mountains.
The prestige market has also been problematic with losses in Mosman, Pittwater and Woollahra muncipalities.
The biggest known price drops last year were in Darling Point when mining boss Peter Freyberg, the Australian head of Glencore Xstrata, sold his four-bedroom residence for $5.5 million having paid $7 million in 2008 ahead of the GFC.
Urologist Phillip Stricker sold his Darling Point penthouse last year for $6.575 million after paying $7.4 million in 2010.
A $10 million Mosman harbourfront sold last year at the same price as its 2011 sale, so no gain in four years for the vendor, the Commonwealth Bank chairman David Turner.
In Woollahra $6 million was secured for a contemporary terrace which fetched $6.5 million in 2011.
Property success depends on your timing in the cycle, but also not getting emotionally carried away in your purchase price negotiations, one agent noted.
"The most important factor is the time the property is held; the property market is cyclical so those who buy at the peak of the market must ensure they are not selling at the following trough," CoreLogic RP Data advised.
The 1.7% of homes resold in Sydney over the third quarter of 2015 that sold at a loss was the lowest proportion on record.
Outside Sydney it noted while localities linked to the mining sector have seen their proportion of loss-making sales rise over recent years, the coastal markets have generally seen conditions improve.
The proportion of loss-making resales has been recorded at: 1.7% in Illawarra, 2.6% in Newcastle-Lake Macquarie, 12.5% in Richmond-Tweed and 8.3% in Mid-North Coast.
Coastal lifestyle locations continued to be traps for overpaying with one sale at Avoca Beach at $825,000 in 2004, reselling at $705,000 last year. At Ettalong Beach an apartment sold last month at $350,000 having been bought in boomtime 2003 at $360,000.
But price dips are an opportunity for savvy buyers. Hong Kong jockey Nash Rawiller and his wife Sarah secured $3.7 million for their redundant Maroubra home.
Rawiller, who won three Sydney riding premierships after making the move from Melbourne in 2007, had bought the property for $3.07 million in 2012 after it had sold at $4 million in pre-global financial crisis 2008.
The 3.7% of homes in Rockdale that experienced a total loss in the September quarter typically went back by $158,000. It was a similiar $150,000 for the Pittwater loss takers who had owned for around five years. However 96% of Pittwater homes were sold at a profit, typically gaining $411,000 having owned for nine years.  
In the Blue Mountains there was a typical $72,000 loss for the three percent who went out backwards.
The data doesn’t include expenses such as holding costs and purchase and selling costs so the proportion of actual loss-making re-sales would be higher on a net basis.
This article was first published in the Sunday Telegraph.
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jchancellor-FAypfDUnLy

Prices potentially going backwards - most obvious in Sydney prestige market

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Only 1.7% of homes resold in Sydney over the third quarter of 2015 sold at a loss which is the lowest proportion on record, according to the CoreLogic RP Data Pain &amp; Gain report.
The Burwood and Hunters Hill council areas each recorded no resales at a loss over the quarter.
The highest proportion of loss-making resales over the quarter were found in: Rockdale (3.7%), Pittwater (3.6%) and Blue Mountains (3.1%) however, the proportion of loss-making resales in these regions was extremely low relative to other cities. 
 
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po-LsXgBTHBmX

Where the biggest loss making property sales in Sydney are: CoreLogic RP Data Pain & Gain report

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Two bedroom apartments account for the majority of the Sydney apartment stock, at 56% of occupied apartments., according to a report by Angie Zigomanis, senior manager of residential property at BIS Shrapnel in a report on the deterioration of affordability in Sydney.
Studios and one bedroom apartments account for another 28% of Sydney’s occupied apartment stock, with the remaining 16% containing three or more bedrooms.
The majority of movers into three bedroom apartments are owner occupiers (58%), with the higher percentage (31%) being fully owned.
"This suggests the majority of owner occupiers coming into three bedroom apartments are downsizers and are buying with full equity," Angie Zigomanis noted.
His study of Australian Bureau of Statistics, shows tenure differs across apartments in Sydney.
Studio and one bedroom apartments are dominated by rental tenants, who account for 70% of households moving into these apartments over the prior five years.
"In contrast, only 9% were fully owned suggesting that studio and one bedroom apartments are not attracting downsizers.
"Around 57% of movers into two bedroom apartments were tenants."
The report noted the deterioration of affordability in Sydney had encouraged a shift towards both apartments over houses, and also into middle suburbs compared to inner ring suburbs.
BIS Shrapnel’s Sydney apartments report found 55 per cent of apartment building approvals in 2014/2015 were located in middle-ring suburbs, compared with the 37 per cent in 2010/2011.
Overall commencements of apartments in buildings four storeys and above have increased from 8,300 dwellings in 2010/11 to the record 19,450 dwellings in 2014/15.
He noted dwelling completions exceeded underlying demand for the first time in 2014/15, with the deficiency falling slightly.
"However, given the estimated deficiency of 42,300 dwellings at June 2015, it will take some time for the market to return to balance, and this should still support an elevated level of new dwelling activity."
Median unit price growth remained high at 14.9% in 2014/15 compared to rental growth of just 1%.
"The result has been that indicative unit yields in Sydney are now around their previous lows of 2003 to 2005, at 3.7% in June 2015," the report noted.
 To find out more information, <a href="https://www.bis.com.au" target="_blank">click here</a>.
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Downsizers with full equity snapping up Sydney three bedder apartments: BIS Shrapnel

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Sydney and Melbourne continue to lead the office market recovery in Australia, according to latest figures from JLL Research. 
Statistics on national office markets for the fourth quarter of 2015 showed positive net absorption of 26,700 sqm over the quarter across CBD office markets and 296,900 sqm over the past 12 months. 
The net absorption for 2015 was nearly 100,000 sqm higher than the 20 year average for CBD office markets (197,000 sqm).
“Activity in the office sector is intrinsically linked to the health of the labour market. While the rate of hiring varied by state and industry sector, overall headcount growth was firm in 2015,” said JLL’s head of Strategic Research, Australia, Andrew Ballantyne.
“Employment growth was strongest in NSW and VIC and this was reflected in above trend net absorption results for the Sydney and Melbourne CBDs in 2015.”
Brisbane CBD, however, surprised on the upside with a sharp reduction in sub-lease availability over 2015, he added.
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The availability of backfill space from relocation to new development stock, however, resulted in the national CBD office market vacancy rate rising to 12.6% from 12% in the previous quarter. 
The Sydney CBD recorded positive net absorption of 24,400 sqm in 4Q15 and 144,800 sqm over the past 12 months. However, vacancy rate rose marginally by 0.1 percentage point to 7.8% in 4Q15 from the previous quarter.
“The recovery in the Sydney CBD office market continues to be led by the technology sector. Expedia and Dropbox committed to new space and expanded their occupational footprint in the Sydney CBD in Q4,” JLL’s head of Office Leasing, Australia, Tim O’Connor said.
He said the trend of new entrants into Sydney would remain a relevant theme in 2016 and the announcement of new infrastructure projects by the NSW government was a positive for the medium-term economic outlook.
“As the demand recovery across Sydney’s office markets crystallises, the number of genuine options for tenants has diminished and competition for space has translated into positive effective rental growth.”
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Prime gross effective rents in the Sydney CBD increased by 3.9% in Q4 and by 9.5% over 2015. Rental growth was not limited to the CBD with the Sydney Fringe (+12.2%), North Sydney (+6.6%) and Parramatta (+6.6%) all recording above trend effective rental growth in 2015.
The Melbourne CBD recorded 3,700 sqm of positive net absorption in 4Q15 and 128,500 sqm over the past 12 months. As a result, the vacancy rate compressed from 10.1% in Q3 to 10% at the end of 2015. 
“The relatively flat net absorption result masked the divergence in prime and secondary vacancy rates. The availability of good quality space has allowed companies to upgrade the quality of their premises and the prime grade vacancy rate moved below 10%,” O’Connor said.
While office market net absorption surprised on the upside in Sydney and Melbourne over the past 12 months, only four of the six monitored CBD office markets recorded positive net absorption over 2015. 
The Brisbane CBD was one of the markets to perform above expectations and recorded four successive quarters of positive net absorption in 2015. Net absorption in Q4 came in at 11,300 sqm and was 26,600 sqm over 2015. 
“While leasing volumes remain thin in Brisbane, a reduction in sub-lease availability from 3.28% of total stock in 2014 to 1.44% in 2015 provides tangible evidence that companies are willing to retain excess space in anticipation of modest headcount growth in the short-term,” Ballantyne said.
The Perth CBD recorded positive net absorption of 600 sqm in 4Q15. However, net absorption was negative 19,100 sqm over 2015.
“It is too early to confidently call the trough in the Perth CBD office leasing market. However, the rate of contraction has slowed significantly over 2015 and the physical market will show further signs of stabilisation in 2016,” Ballantyne said.
Canberra recorded positive net absorption of 18,000 sqm over 2015. As a result, Canberra’s vacancy rate has trended down over 2015 and finished the year at 14.1%.
In 4Q15, the Adelaide CBD recorded net absorption of -11,300 sqm and vacancy increased to 16.7% over the quarter. The vacancy rate in Adelaide is now at the highest level since 1999.
“The easing of leasing incentives we recorded in Sydney over the latter part of 2015 will become a more pronounced theme in 2016. However, vacancy pressures in Perth, Adelaide and Brisbane will require owners to commit capital expenditure to reposition assets to ensure that they remain relevant in competitive leasing markets,” concluded O’Connor.
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Sydney, Melbourne lead office market recovery: JLL research

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February auction clearance rates are almost always much stronger than where December left off. But the extraordinary stock market turmoil we've seen so far this year has the potential to un-nerve the Sydney property market at least in the short term.
It is possible that the optimistic outlook that typically starts most years may not fully emerge - and even the wet deluge that dominated the holiday break could undermine the psyche necessary to secure a healthier auction start. Or at least delay listings given the odd jobs to spruce the home up for sale were put off.
We could be nervous and grumpy this February.
Ofcourse December auctions results didn't finish up that flash with a 53 per cent clearance rate.
The fatigued market saw the success rate fall over most of the spring selling season and then into early summer.
Last year February there was an 83 percent opening success rate which was well up on the December 2014 close of 69 per cent.
There have been even bigger rebounds in recent times as February 2013 had a 63 per cent success rate as against the 49 percent in December 2012.
Confident starts after the summer break are no guarantee that the year doesn't deteriorate into tougher market conditions.
And I think that will happen this year, with the early bird vendor getting the best offers before the predictable pre-Easter overload.
This is not to say 2016 won't be a healthy market. But we are not going to see prices skyrocketing month after month across all of Sydney.
We will even see in some suburbs where the inferior house down the street fetched a better price last year than the better home up for auction this year because the mood has shifted from crazy to cautious.
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<div>The RBA governor Glenn Stevens wasn't wrong in June last year when he suggested some crazy prices were being paid. </div>
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<div>After consecutive 15 percent plus price growth years, the Sydney housing market gained 11.5 percent during 2016, according to Core Logic RP Data. </div>
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<div>But Sydney was the weakest performer of any capital city, with dwelling values down by 2.3 percent during the December quarter. Houses at a $935,000 median and units at $676,000.</div>
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<div>But home buyers are still substantially wealthier from housing in Sydney.</div>
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In dollar terms, Sydney home owners saw $82,000 added to their wealth during 2015. And $227,000 in the growth cycle since the end of the global financial crisis in early 2009.
When deciding just how to list your home this year, best ask your prospective listing agents not only how they went late last year but contrast their results against the overall suburban trend.
It was interesting to see CoreLogic RP Data note while Sydney’s auction clearance rate over the December quarter was 59 percent there were pockets of the Sydney market where clearance rate performance sits much stronger than the broader market.
For instance the eastern suburbs came in with the highest clearance rate at almost 75 percent, followed by the inner south and inner west at 67 percent. But Blacktown and Parramatta were in the low 40s.
BradfieldCleary director and auctioneer Bob Guth said that in his view the best time to market eastern suburbs real estate is February when there is less competition from other homes and apartments and this often leads to the best under-the-hammer results.
His eastern suburbs Sydney agency has its first eight auction scheduled for next week, so it will be interesting to see how they go.
This article was first published in the Saturday Daily Telegraph.
 
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Sydney February auctions to test the always better than December precedent

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Dwelling values across Australia’s capital cities were 0.9% higher in January driven partially by a rebound in Sydney and Melbourne.
The recent growth conditions have pushed the Melbourne market into first place for annual growth in dwelling values with an 11.0% rise compared with Sydney where values are 10.5% higher over the past twelve months. 
According to the January 2016 CoreLogic RP Data Hedonic Home Value Index results, dwelling values across Australia’s combined capital cities showed a 0.9 per cent rise in January after recording no change in December and a 1.5 per cent drop in November. 
This month on month rise wasn’t quite enough to pull the rolling quarterly rate of growth back into the black, with capital city dwelling values remaining 0.6% lower over the past three months. Hobart led the monthly figures with a 4.7% jump in values, followed by Melbourne where values were 2.5% higher and Canberra with a 2.8% lift. Sydney values also showed a rise of 0.5%, while the remaining four capital cities showed dwelling values to be either flat or down. 
The rolling quarterly trend was looking similarly diverse, with four of Australia’s eight capital cities recording negative dwelling value movements over the past three months, with Sydney dwelling values showing the largest fall, down 2.1 per cent. Values are down over the rolling quarter in Darwin (-1.4%), Adelaide (-0.9%) and Melbourne (-0.1%) as well. The strongest growth in home values over the quarter across the capital cities was found in Hobart with a 3.0% capital gain. 
Despite recording the largest annual decline in home values (-4.1%), Perth dwelling values posted a 1.7 per cent rise over the three months to the end of January. Other capital cities to record a rise over the rolling quarter were Brisbane (+0.8%) and Canberra (+1.2%). 
Over the past twelve months, capital city dwelling values have risen by 7.4% with Sydney’s capital gains of 10.5% no longer the highest annual rate across the capitals. While still a high rate of annual growth, Sydney’s annual rate of capital gain is now at a 29 month low and has been progressively softening since peaking at 18.4% in July last year. 
Melbourne’s housing market has been more resilient to slowing growth conditions which has propelled the annual growth rate to the highest of any capital city, with dwelling values 11.0% higher over the past twelve months. Previously, during the height of the growth phase, there was a large separation between Sydney’s housing market, which was streaking ahead, and Melbourne’s, where the rate of capital gain was substantial but still well below the heights being recorded in Sydney. The latest data reveals Sydney’s housing market is now playing second fiddle to Melbourne’s, at least in annual growth terms.
In fact, over the past six months, the performance gap between Sydney and Melbourne is stark. Sydney dwelling values have reduced by 0.6 per cent between July last year and the end of January 2016, compared with a 3.0 per cent rise across Melbourne dwelling values. The last six months have also seen both Brisbane and Canberra dwelling values rise by 2.0 per cent while Hobart values are 1.3 per cent higher and Adelaide dwelling values have been virtually flat with a 0.1 per cent rise.
Tim Lawless is head of the CoreLogic RP Data research and analytics team and can be contacted <a href="https://blog.corelogic.com.au/author/timlawless/" target="_blank">here</a>.
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tlawless-5VLUrbAk9s

Sydney now second fiddle to Melbourne: Tim Lawless

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Sydney’s established suburbs have just one thing in common when we talk about their existing houses in that for years now we have seen no new housing developments – they have simply dried up.
They no longer exist nor will we see any more new developments, so the number of houses in a particular suburb is all but fixed forever. Unlike outer Sydney where new housing estates are being released at the fastest rates ever witnessed before to meet the growing consumer demand – however the new markets are totally different from the established property markets.
It’s interesting to note that the established housing markets are contracting with less properties being offered to the marketplace which is underpinning property prices. Just as interesting is the observation that the overseas buyers are now strong participants in the established Sydney property markets followed by the local buyers in close pursuit.
This is what many are calling the perfect storm where if you removed the overseas buyers the Sydney established property markets would bear no resemblance to what we witnessed in 2015. With the NSW government now fixated on high – density residential strata developments many property buyers are observing that established houses are the best investments because production has ceased.
Whilst the NSW government has no problems encouraging the new residential subdivisions of airspace we certainly don’t envisage we will see any outdoor public spaces being converted to residential housing subdivisions.
We can also throw into the ‘perfect property storm’ record low interest rates where households are leveraging their borrowings to the maximum in order to take full advantage of the lowest rates in property history. When they leverage high this takes longer to pay down the principal home loan which in turn slows down the number of properties being offered to the market place which is exactly what we are witnessing today.
Just as interesting is that the last cash rate increase by the Reserve Bank of Australia (RBA) was back on November 3, 2010 when the RBA increased the cash rate +0.25 percent to 4.75 percent.
To show further proof a recent analysis by Digital Finance Analytics identified that 13 percent of households with an owner occupied loan would be in financial discomfort if rates were to rise at all. This is a smaller proportion to investment property owners who came in at 27 percent. However, more than one third of households said that they would be in difficulty if rates rose by 3 percent.
With many property owners closely following the cash rate musings emanating from the RBA – they may be better advised to watch their respective lenders a lot more closely.
Business analysts warned this week if there are no RBA cuts in 2016 then the banks would again act independently by announcing their own independent rate increases. Many quickly forget that in 2015 the big banks joined hands and raised their respective rates between 15 and 20 basis points.
Based on this data, for that to happen we would see the investment property hardest hit with a very distinct possibility of surging nervous investors trying to off – load their newly acquired investment properties. On the flip – side the major banks are most concerned that this newly created investment property loan portfolio has them exposed – so we in all probability will see them massaging their mortgage books in 2016.
This of course does not bode well for all the new developments awaiting release to the respective marketplaces where Melbourne has approximately another 20,000 new apartments ready to be released over the next five years with Sydney sitting at around 6,000 new apartments.
Then of course we have the dilemma with the apartments already sold off – the – plan with plenty of talk that many of those won’t proceed with their contracts. In particular the Big Four banks are only too well aware of their exposure to these new markets. That would explain why they have commenced their whisper campaigns – where we can expect to read plenty more in coming months.
When the property flows are weak the prices shoot up which is exactly what has happened to the established markets. The new investment markets are the ones that dominated in 2015 so there is a very good chance they may dominate conversations in 2015 for all the wrong reasons. What also needs to be factored in are the new developments where 100 per cent of these apartments were sold offshore. It’s anyone’s guess what may happen should we see these newly created markets start showing the first signs of panic.
<h5>MOSMAN – 2088</h5>
• Number of houses on the market this time last year – 58
• Number of houses on the market last week – 36
• Number of houses on the market this week – 45
• Number of apartments on the market this time last year – 43
• Number of apartments on the market last week – 32
• Number of apartments on the market this week – 38
<h5>CREMORNE – 2090</h5>
• Number of houses on the market this time last year – 8
• Number of houses on the market last week – 9
• Number of houses on the market this week – 11
• Number of apartments on the market this time last year – 18
• Number of apartments on the market last week – 11
• Number of apartments on the market this week – 15
<h5>NEUTRAL BAY – 2089</h5>
• Number of houses on the market this time last year – 4
• Number of houses on the market last week – 6
•Number of houses on the market this week – 6
• Number of apartments on the market this time last year– 37
• Number of apartments on the market last week – 23
*Number of apartments on the market this week – 27
 ROBERT SIMEON is a director of <a href="https://www.rwm.com.au/" target="_blank" title="RWM" rel="nofollow">Richardson Wrench Mosman and Neutral Bay</a> and has been selling residential real estate in Sydney since 1985.  He has also been writing real estate blog <a href="https://www.rwm.com.au/news/" target="_blank" title="Virtual Realty News" rel="nofollow">Virtual Realty News</a> since 2000. 
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robertsimeon-hRNTwJyXkQ

Simply put, property will be as steady as she flows: Robert Simeon

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CoreLogic RP Data's senior research analyst Cameron Kusher has weighed into the Sydney property market decline debate through his twitter <a href="https://twitter.com/cmkusher" target="_blank">@cmkusher</a> by asking, why exactly is the fact that Sydney house prices are allegedly not booming any more a bad thing?
Sydney house prices have recorded a sharp decline over the last quarter with the fall marking the end of the Sydney property boom, according to figures released recently by Domain.com.au. 
Despite the property boom ending, Sydney and Melbourne are set to reclaim some of the losses record over the final quarter of 2015, according to CoreLogic RP Data's head of research Tim Lawless.
In preparation for the announcement on Monday, Lawless said Sydney will bounce half a percent higher over the first 27 days of January while dwelling values in Melbourne are likely to increase by around 2 percent by the months end.
He said that the month to date performance will help to offset the 2.3% fall in Sydney values recorded over the December quarter, while the higher growth rate in Melbourne should bring Australia’s second largest city back into positive growth territory on a rolling quarterly basis.
Although there will be higher index readings across the largest cities, Tim suggests it's likely that housing market conditions will track lower than what we saw over 2015.
Property Observer will keep you up to date with the home value index when it is released on Monday.
 
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Tweet of the day: Cameron Kusher on Sydney's possible bust 

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Estate agent John McGrath anticipates it’s going to be a lot quieter on the eastern seaboard property front. 
"While South-East Queensland will continue bubbling away in the early stages of its growth cycle, Sydney and Melbourne have reached the slow down point," he suggested.
"The boom is over but the growth cycle isn’t," he wrote in his Switzer blog. 
He anticipates ups and downs in the monthly reporting of price movements but still some overall annual price growth. 
He noted Sydney property values had risen by almost 50% since mid-2012.
"So if you purchased a property in 2011 for say, $600,000, your property would be worth about $900,000 now.
"That’s fantastic news for people who owned property before the boom but for those who missed the opportunity to buy before the growth, it’s just painful." 
 {mijopolls 127}
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Boom is over, but not growth cycle: John McGrath

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Light rail upgrades within Sydney's inner east is tipped to push up the value of local apartments by a possible 20 percent, a real estate agent has predicted.
Greencliff executive director David Butt said additional and improved transport in and out of the CBD is key to residential planning as fewer apartments are sold without car spaces and options such as car sharing are becoming more popular. 
"Potential investors are aware that the light rail and the redevelopment of George Street into a pedestrianised street is going to have a huge flow-on affect to residential buildings on or near the street with more people wanting to live in these apartments and the rentals and sales prices are increasing as a result," he said.
“We are actually seeing prices increase as construction progresses – the further along construction is delivered, the higher prices grow.
"Providing additional and improved transport in and out of the CBD is key to residential planning as fewer apartments are sold without car spaces and options such as car sharing are becoming more popular."
<a href="https://dulwichgreen.com.au" target="_blank">Dulwich Green</a>, (above) a development project marketed by Greencliff, is located just 10 minutes to Dulwich Hill Light Rail Station, part of the newly completed Inner West Light Rail Extension.
The start of the light rail construction around the Lumiere Residences at 101 Bathurst St, (below) managed by Frasers Property, had piqued interest in further sales, he said.
<img src="/images/2016/01/28/Lumiere.jpg" alt="" width="1465" height="2191"> 
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