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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Sydney's City Tattersalls Club members have voted by a massive majority in favour of the proposed airspace development above the club’s premises at 194-204 Pitt Street, clearing the way for the club to sign a development management agreement (DMA) with partners ICD and Sinclair Brook.
A huge 93.6% voted in favour of the development that will see $96 million flow through to the club. 
“The majority in favour of the project was phenomenal and, as far as we know, a record in the club’s 120-year history,"  said Patrick Campion, chairman of City Tattersalls Club. 
 "This year we have submitted a far better stage 1 development application (DA) and we have received feedback from City of Sydney Council to which we have responded," said Tony Guilfoyle, CEO of the club.
"Council will now go through its process in analysing the club’s application. Assuming approval from Council, the club will embark upon an expression of interest (EOI) campaign for the right to part own and/or operate the 100 room hotel and the Design Excellence competition will also be officially launched.” 
The terms of the DMA include five floors of club and hotel facilities from ground, two basement floors of club cellars, storerooms and other utility rooms. There will be a hotel with nearly 100 rooms from levels 5 to 10 with a sky terrace restaurant and bar on level 7. The ground floor would be earmarked for retail.
The $96 million to the club will be allocated as follows: $71 million towards the design and development work on the new club and hotel, $20 million for fit-outs works and $5 million in cash.
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j.ballantyne1990-6AQqhLzZaK

City Tattersalls Club members give tower project the green light

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GUEST OBSERVER
The announcement by the NSW Government of the preferred route of the light rail from Parramatta to Strathfield should lead to significant new development along the route. 
The selection of the light rail route through the urban renewal areas of Camelia and then the Olympic site at Homebush is clearly seen as a driver of new development.
This is a great opportunity to champion a new form of mixed use urban density where jobs, recreation, retail and living all work together.
The connection to Westmead is important as this is clearly a major centre of jobs and of potential urban renewal. The transport link can also connect the proposed development at North Parramatta back into the centre of Parramatta.
The connection with Sydney Olympic Park should give this precinct the direct transport connection it desperately needs and hopefully stimulate new jobs as well as residential accommodation.
The branch to Carlingford along the existing heavy rail line is another opportunity to encourage urban renewal with mixed use development.
The Urban Taskforce is concerned about the proposed Special Infrastructure Contribution (SIC) of $200 per square metre of GFA of new residential developments. While providing funds for the Light Rail itself the contribution will also increase the cost of housing. A 100 square metre apartment will clearly have an extra $20,000 added to its cost. The danger of adding a high contribution amount is that development may not be economically viable and so funds will not flow to the infrastructure. Further discussions with industry are needed to ensure that the SIC is workable.
The Urban Taskforce has argued strongly for a clear link between infrastructure and density and the announcement about the light rail route opens the opportunity to deliver significant new density. One advantage of the SIC is that it is an encouragement to planning bodies to support significant amounts of development so that funds are raised. Without significant density uplift there will be little funds raised.
While the SIC does not apply to development related to jobs there needs to be strong planning incentives to support more jobs in Western Sydney and particularly related to transport infrastructure.
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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jchancellor-FAypfDUnLy

Parramatta- Strathfield light rail must drive significant new development: Urban Taskforce

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GUEST OBSERVER
Sydney’s property market is set to show signs of change in 2016 as the market moves into a ‘transitional’ phase, and I predict the following market trends for 2016.
Consistent property prices.  
Property prices remain quite consistent throughout 2016.  There’s strong speculation that the Reserve Bank will reduce interest rates again, but if they do, I personally don’t envisage the banks passing it on to consumers. We’ll see a continued decline in investors which will coincide with an increase in owner occupiers.  This is a very good long-term thing as it helps the market have a healthier balance.
More robust conversation on how to encourage first home buyers.  
Home ownership is ingrained into Australian DNA: It’s not an entitlement but it’s always been encouraged. I would be saddened to see that change as I want to see more young people on the property ladder and experience the same things as previous generations. 
The industry needs to focus on encouraging first home buyers to enter the market. Personally, I’m not convinced that throwing money at first home buyers through grants is the right way to go, nor am I convinced that allowing them to make purchases with their superannuation is the right way to go either. It will be nice to see some pressure applied to banks – for them to look at giving discounts or concessional rates to first home buyers. I would still love for first home buyers to continue to be offered deals with a five per cent deposit and a more competitive interest rate.
Developers to become nervous and less likely to take risks.  
We have seen a general sense of nervousness from developers recently so I hope to see a greater sense of balance around approvals as a result.  In 2015, we saw a lot of developments granted planning permission but I think heading into 2016 we will see them feel a bit of pain because some purchased their sites on such narrow margins. As market levels fall away slightly, some developers might struggle to cover costs.  
Towards the end of 2016 we might start to see some investors potentially walk away from their deposits because they perceive that they paid too much for it in 2015 and see that it’s no longer worth the risk. Personally, I see this as very much a knee-jerk reaction as most investments should be viewed with a long-term strategy in mind.
2016 will be the year that Chinese developers really arrive in Sydney – and they’re going to aggressively market their developments in mainland China. I have no problem with foreign developers coming in but there should be a quota of stock that must be sold to Australian residents.
Changes to lending rules will freeze out some investors.  
The early part of 2015 saw investors buying off-the-plan but as these developments start to take shape and bricks go into the ground. The recently introduced macroprudential measures will make it difficult for buyers to complete the purchase.  Investors might have committed to an off-the-plan purchase as their mortgage lender considered them qualified to borrow at the time, but when it comes to the buyer needing the finance, there will be changes to lending rules, which – I think – is unfair.
Going into 2016, mortgage lenders will start freezing out investors, as lenders actually don’t have an obligation to provide the finance. They will simply say that they can’t provide the finance on the original terms (say, a 5% deposit) and that now much more is needed. Lenders might have said yes on a certain date in principle but the framework of their in-principle agreement should carry through.
Under-supply of housing.  
I believe that while town planners and councils might be meeting their quota in terms of dwellings being built, they might not be the right dwellings for the demand.  In my opinion, a disproportionate level of apartments are currently under construction – and now that the investor boom is over, we have an issue.  Planners should take a responsible and sensible approach to what the demand looks like, and offer tangible solutions.  We have to be careful we don’t build too many units and apartments because it will rob some suburbs of their identity.
Furthermore, I believe that there is a huge density problem.  We know that Australians have more living space per capita than anywhere else in the world, so are apartments really what is needed?  You’re not going to have a family of five on the 32nd floor of a high rise, are you?  Now that the investor market is slowing down, I want to know who’s going to be buying because the stock being built does not necessarily correlate to demand.
Suburb desirability and price changes from council amalgamations.  
When councils amalgamate in 2016, certain suburbs will be impacted on more than others in their desirability and/or price.  Look at somewhere like Botany for example, all of a sudden it could become part of an enlarged eastern suburbs council. Of course it’s going to become a lot more desirable and expensive. 
On the flip side, look at what happened when the government tried to divide Mosman into five suburbs – the sentiment was so strong against it that the call was rejected.  You really need to think about what’s in a postcode, in a suburb, in a council area because there could certainly be an impact on desirability for the better or the worse.  Just look at the conversation about the Woollahra, Hunters Hill, Ryde and Lane Cove councils right now.
More disruptors, disintermediation and ‘uberisation’ – but unlikely to take off.  
More disruptors will try to enter the market and shake things up for real estate but that they will be less likely to survive in the new landscape. Disruptors are more likely to thrive in a strong seller’s market when vendors struggle to see value for money.  These start-ups might have all the key ingredients to disrupt the traditional model, but in a softer market, like the one we are transitioning into, these new players will struggle to succeed.
As the market returns to something that resembles an ‘everyday market’ in 2016, we will see a lot of agents leave the industry. Those who were in it for a quick buck will quickly realise that they now have to work for their money and this hopefully means that the quality and standard will improve across the board.  It’s a great opportunity to raise the bar for the next boom.  This will allow us to improve entry level education standards so it will be far more difficult for the fly- by-nights to get a job in the industry.
Sydney to become a spider’s web.  
I really think that we will start to see Sydney become more of a spider’s web in 2016.  Regions of Sydney have always been so disconnected but for the first time ever we will see a joining of the dots.  Some areas currently considered as outposts will benefit from the construction of four new metro train stations, the south-west rail link, and the development of eight new stations in the north-west.
To give credit where credit’s due, the planning of Sydney’s transport system has vastly improved. With the new developments underway, it’s going to open up some key suburbs and make them more desirable.  As transport infrastructure improves, we will slowly start to see the divide between east and west fade as a result of greater accessibility.  Starr Partners’ buying data already proves these divides are softening right across Sydney.
Semi-abandonment of the auction process.  
As the market grew more robust over the past year or so, more people opted for auctions, but as it softens, I anticipate that people will start walking away from the process.
As experts, agents need to start assessing the what, the why and the where, and what works best for the individual property and people involved rather than resolutely sticking to just the one method of sale.  In a strong market, vendors are very prepared to follow the auction path but when things soften or when clearance rates fall, we can expect a semi-abandonment of the auction process.
 
DOUGLAS DRISCOLL is CEO of real estate agency <a href="https://www.starrpartners.com.au/" target="_blank">Starr Partners</a>.
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douglasdriscoll-EkfdEjJSsC

Sydney 2016 property market forecast: Douglas Driscoll

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The increase in the value of Sydney homes over recent years has been significant and Sydney home owners now have a substantial amount of equity, it will be interesting to see what they do with it.
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The latest CoreLogic RP Data Home Value Index results were released earlier this week.  Apart from an update how house and unit values have shifted in November, the release includes the latest update on median selling prices for houses and units across the capital cities.  From this data it is becoming increasingly evident that housing costs in Sydney have well and truly separated from the rest of the country.
The CoreLogic RP Data Home Value Index results highlight just how much stronger value growth has been in Sydney, and to a lesser degree Melbourne, relative to all other capital cities.  The first chart highlights that since the current growth phase commenced in June 2012, value growth has been significantly greater in Sydney than in most other cities.  This has occurred despite the fact that Sydney was already the most expensive capital city.
<a href="/images/2015/12/7/Screen%20Shot%202015-12-07%20at%202.16.35%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/12/7/Screen%20Shot%202015-12-07%20at%202.16.35%20PM.png" alt="" width="716" height="358">
The second chart compares median house and unit prices across each of the capital cities.  This data is based on median prices over the three months to November 2015. Sydney has the greatest median house ($950,000) and unit price ($675,000).  In fact, Sydney’s median unit price is higher than the median house price in all other cities except Melbourne where they sit at the same level.  To put the differential into some perspective the combined median house ($495,000) and unit price ($400,000) is lower than the median house price in Sydney.
<a href="/images/2015/12/7/Screen%20Shot%202015-12-07%20at%202.17.54%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/12/7/Screen%20Shot%202015-12-07%20at%202.17.54%20PM.png" alt="" width="626" height="308">
 
It is important to remember that the median price provides an indication of the typical home selling at a period of time.  It can be impacted by compositional bias if lower or higher priced stock is selling.  Nevertheless it does afford an understanding of what the typical home is currently selling for.
To better understand exactly how much Sydney has separated from the rest of the capital cities in pricing terms, we’ve looked at the approximate dollar value change from the recent low point in the market through to the end of November.  The data shows that home values have increased substantially across Sydney and those who have owned a property in Sydney for more than a few years are likely to have accumulated a sizeable level of equity in their property.
<a href="/images/2015/12/7/Screen%20Shot%202015-12-07%20at%202.19.12%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/12/7/Screen%20Shot%202015-12-07%20at%202.19.12%20PM.png" alt="" width="775" height="610">
At their most recent low, Sydney median house prices were recorded at $620,000 and median unit prices were $465,000. From that time to the end of November Sydney house values had increased by 51.7% and unit values by 38.3%.  In dollar value terms this is an increase of $320,265 and $178,245 respectively. Of course some of that increase may be due to improvements however, that rise in the value of Sydney houses and units are much greater than increases in all other capital cities.
The substantial rise in prices and the subsequent boost in housing equity probably also points to why many lifestyle markets are now seeing value rises.  Anecdotally, home owners from Sydney and Melbourne are now more able to purchase lifestyle properties given the wealth effect of higher property prices.  It also indicates that someone could sell out of Sydney, buy into another market and pocket a significant amount of capital from the balance from the sale.  This is probably quite appealing to some Sydney-siders that are retired or close to retirement as well as those that own their own business.
Cameron Kusher is research analyst for CoreLogic RP Data. You can contact him <a href="https://blog.corelogic.com.au/author/cameron-kusher/" target="_blank">here</a>.
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Sydney prices have separated from the rest of the country: Cameron Kusher

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There were a total of 249,133 residential properties available for sale across Australia as at the week ending 29 November 2015, with 110,884 capital city properties available for sale, indicating that total stock levels are -1.7% lower than last year across the combined capital cities and -2.8% lower nationally. 
Over the most recent four week period, the majority of listings newly added to the market were within the capital cities, with 30,539 new advertisements, compared to 18,104 in regional towns, which means 63% of new listings were in capital cities, while across the total stock pool, capital city listings account for just 45% of available properties
<a href="/images/2015/12/7/201511-Listings-table.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2015/12/7/201511-Listings-table.jpg" alt="" width="696" height="155">
 
<ul>
<li>
Melbourne – 9,477, which is 2.5 per cent higher compared to the same period last year (9,246)</li>
<li>
Adelaide – 2,537, which is 1.5 per cent higher compared to the same period last year (2,500)</li>
<li>
Canberra – 756, which is 16 per cent higher compared to the same period last year (652)</li>
</ul>
While in terms of total stock, levels are higher, relative to last year, in Sydney, Perth and Darwin. While Perth and Darwin’s total stock levels have continuously been recorded at a higher volume compared to the relative period one week ago for the entirety of 2015, this has only been the case since mid-September in Sydney.
At one point this month, the total available stock in Sydney was the greatest it has been since late 2011, and based on the four weeks ending 29 November, there were a total of 24,579 residential Sydney properties available for sale, the highest volume of listings since late 2013, giving buyers plenty of choice across the Sydney market.
To put this further into perspective, three months ago, at the end of August, there were just over 19,000 Sydney properties listed for sale. Stock levels have been increasing due to two things, firstly the increase in new listings being added to the market each week, which has been trending upwards since May this year, likely attributed to the increase in home values across the city and associated vendor confidence, while since March sales volumes across the city have generally been slowing.
<a href="/images/2015/12/7/201511-Capital-City.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2015/12/7/201511-Capital-City.jpg" alt="" width="778" height="294">
Nationally, total listings are -2.8 per cent lower than they were one year ago. Across South Australia, the number of total listings is virtually the same as one year ago, while in the Australian Capital Territory, total listings are just -1.9 per cent lower. Across all the other states and territories, the difference between total stock this year relative to last year is more prominent, with Northern Territory (+9.7 per cent) and Tasmania (-7.0 per cent) showing vast differences.
<a href="/images/2015/12/7/201511-National.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2015/12/7/201511-National.jpg" alt="" width="650" height="246">
 
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High volume of Sydney stock available for sale: CoreLogic RP Data's Shana Miller

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A $325,000 one bedroom Harris Park, Parramatta apartment was the weekend's cheapest Sydney auction sale.
Last traded for $210,000 in 2011, the ground floor apartment comes with a master bedroom and en-suite.
The sale - at 9.65% annualised price appreciation - was secured by Nick Scognamiglio and David Lao of Starr Partners Parramatta.
Having been rented for $300 per week in 2011, the selling agents suggested the market rent for <a href="https://www.realestate.com.au/property-unit-nsw-harris+park-121301078" target="_blank">1/16A Wigram Street </a>would still be a $300 per week rental, a gross rental yield of 4.8%.
Located at the back of an established complex, the unit is in walking distance to vibrant Harris Parks shops, restaurants and public transport. 
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4.8% rental yield prospect at Parramatta's cheapest weekend sale

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Glenn Stevens, the governor the the Reserve Bank of Australia, gave a speech recently with what he advised had a fairly uncontroversial prediction. 
"There will be economic downturns from time to time," he said, adding if one turns out to be a big one, it will be very new experience for a lot of Australians.
"Close to half the workforce has never seen really high, nationwide unemployment."
He noted a lot of Australians had not ever seen how tough conditions can become "when virtually every industry and region is contracting.
"That they have not seen this is a good thing – in the sense that it results from the fact that we have not a really serious downturn for a long time now."
There have been many dips, but the last national recession was 1992. 
"But if one comes, it will be a shock," Glenn Stevens warned.
Spring provided a small shock for its eager sellers across Sydney as sale prices fell from their earlier peaks.
The stellar price achieved earlier this year for the inferior house down the street wasn't going to be secured for your better home. That was the anecdotal evidence that emerged during spring sales, then this week's more official recognition that Sydney had recorded its biggest fall in nearly five years. 
Sydney wasn't alone as CoreLogic RP Date suggest dwelling prices fell 1.5% in November across all the capital cities combined.
The data had Sydney houses down 1.5% during November and down 1.4% for the quarter to $950,000. For apartments Sydney was down 0.7% during November but up 0.6% for the quarter to $675,000.
CoreLogic's Tim Lawless noted the negative Sydney performance in November, which came after October had been a flat market, was likely to provide the Reserve Bank with a greater degree of flexibility in adjusting interest rates next year without as much risk of overstimulating the housing market.
Let's not forget that Sydney prices sit 48% higher than at the start of the now flagging price growth cycle.
Sydney dwelling prices are still up 12.8% on what they were this time last year too.
Ofcourse most owners sit out any such dips not having to sell - at a loss let alone the ignominy of taking less than the neighbours got.
I recall when banks were evicting then selling homes during that early 1990s recession and it was not pretty.
Currently only two per cent of homes resold in Sydney are selling at a loss for their vendor based on their initial purchase price, according to the CoreLogic RP Data Pain &amp; Gain report.
The prestige Mosman and Pittwater, and the mortgage belt of Gosford, were the council areas that recorded the highest proportions of these loss-making resales.
The prestige market has been especially problematic. Recently a $10 million Mosman harbourfront sale occurred which was the same price as its 2011 sale, so no gain in four years for the bank chairman who sold.
In Woollahra $6 million was secured for a contemporary terrace which fetched $6.5 million in 2011 when bullishly sold by a former assistant Reserve Bank governor.
Property success can be a toss of the coin chance outcome, depending on your timing in the cycle, but also the recklessness of your purchase price.
Macquarie Reseach's controversial forecast that house prices across Australia could fall 7.5 per cent from the 2015 peak over 2016 and into 2017 has had some early impetus this spring, but let's see how 2016 kicks off.
This article was first published in the Saturday Daily Telegraph.
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Sydney prices going backwards, but for how long?

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Actor Richard Roxburgh, star of Rake, and his wife, the SBS TV celebrity chef Silvia Colloca have reportedly bought at Newport for $3 million.
But they are yet to sell <a href="/news/actor-richard-roxburgh-lists-bilgola-home-for-sunday-auction">their five bedroom Bilgola Plateau home</a>. It now comes priced at $1.9 million plus.
Their northern beaches modern beach-style retreat was pulled from recent scheduled auction by James Baker at Raine and Horne Palm Beach.
With views over Pittwater,<a href="https://www.realestate.com.au/property-house-nsw-bilgola-121101482" target="_blank"> the modern two level home on Lower Plateau Road </a>was initially marketed to fetch around $2 million. The couple added a deck off the master bedroom since paying $1.62 million in 2009.
They are planning on staying on the northern beaches having bought on the cliff at Newport, Fairfax Media advised.
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Rake's Richard Roxburgh upgrading to Newport

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<a name="1515adbefb515e76_OLE_LINK3" href=""></a>
GUEST OBSERVER
Sydney property prices fell by 1.4%, marking the biggest fall in nearly five years.
Melbourne property prices fell by 3.5% in November – the largest fall in 18 months.
The CoreLogic RP Data home value index of capital city home prices fell by 1.5% in November to stand 8.7 % higher over the year. 
Dwelling prices rose in just three of the eight capital cities in November.
The performance of manufacturing index lifted by 2.3 points to 52.5 in November, the highest reading in two years. A reading above 50.0 indicates that the sector is expanding.
Production, orders, employment, exports and sales all recorded healthy gains in November.
What does it all mean?
So far so good. The second day this week of better economic data. A mild correction in property prices (particularly in Sydney and Melbourne) is a good thing, while a healthy expansion is taking place in manufacturing activity (two-year high).
The slide in capital city home prices in November marked the first fall in six months and the biggest slide nationally in 18 months. No doubt the weakness in home prices is being driven by the tightening in lending criteria by the banking sector.
In particular the concerted effort to cool investor demand or speculative home purchases is paying dividends.
Sydney house prices recorded a 1.4 % slide in November - its biggest fall in almost five years. But keep in mind Sydney home prices are still up almost 13 % over the year. 
While it was encouraging that Sydney and Melbourne prices pulled back, the perfect scenario would have been for a credible lift in prices across other capital cities.
Dwelling prices fell in five of the eight capital cities, and while “Rest of State” prices managed to lift by 0.3 % in November, annual growth holds at a paltry 2.8 %. 
This highlights the issues facing policymakers in attempting to manage a very diverse housing market. What we would expect to see is the lift in capital city house prices eventually filters out across the regional towns over the next 12-24 months.
The consolidation in home prices is unlikely to see home building dry up.
There is a record pipeline of dwelling approvals that suggest a lot of building work will take place over the next 12-24 months - supportive of a lift in activity levels over the medium term.
The rebalancing effect across the economy continues to take place.
Manufacturing activity is now expanding at the fastest pace in two years and more importantly the sub-indices like, employment, production, sales and exports are all showing a credible lift.
The results mirror the lift in manufacturing investment in last week’s business investment data. No doubt the weaker Australian dollar will continue to support the sector.
What do the figures show?
Home prices
- The CoreLogic RP Data Hedonic Australian Home Value index of capital city home prices fell by 1.5 % in November to stand 8.7 % higher than a year ago.
- House prices fell by 1.6 % in November while apartments fell by 0.9 %. House prices were up 9.1 % on a year ago and apartments were up by 6.6 %.
- The average Australian capital city house price (median price based on settled sales over quarter) was $626,000 and the average unit price was $525,000. The average Sydney house price was $950,000 – still some way off the $1 million mark.
- Dwelling prices rose in just three of the eight capital cities in November: Adelaide (up 0.7 %), Brisbane (up 0.6 %) and Perth (up 0.3 %).
- Prices fell most in Melbourne (down 3.5 %), Hobart (down 2.4 %), Sydney (down 1.4 %), Darwin (down 1.3 %) and Canberra (down 0.5 %).
- Home prices were higher than a year ago in six of the eight capital cities. Prices rose most in Sydney (up 12.8 %), followed by Melbourne (up 11.8 %), Canberra (up 4.5 %), Brisbane (up 4 %), Adelaide (up 3.3 %), and Hobart (up 1.1 %).
- Prices fell in Darwin (down 4.2 %) and Perth (down 4.1 %).
- Total returns on capital city dwellings in the year to November rose by 12.8 % with houses up 13.0 % on a year earlier and units up 11.4 %.
CoreLogic RP Data noted that as a consequence of the tighter lending environment for rental yields, combined capital cities investors, as well as gross rental yields being at near record lows, participation in the housing market from investors has reduced from 54.1 % of all new mortgages in May 2015 to 45.4 % at the end of September, which is the lowest level since July 2013.
Data released by APRA at the end of last month showed the pace of investment related housing credit growth fell below the APRA 10 % speed limit for the first time since September last year, with the monthly change in investment credit growth the lowest since October 2011.
According to today’s results, the slowdown comes after auction clearance rates have moderated back to the low 60 % range since the last week of October, whilst average selling time and vendor discounting rates also continue to rise from their record lows.”
Performance of Manufacturing
- The Performance of Manufacturing index lifted by 2.3 points to 52.5 in November. A reading above 50.0 indicates that the sector is expanding.
- Production, orders, employment exports and sales all recorded healthy gains in November.
<a href="/images/2015/12/1/Screen%20Shot%202015-12-01%20at%2011.36.33%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/12/1/Screen%20Shot%202015-12-01%20at%2011.36.33%20AM.png" alt="">
Savanth Sebastian is an economist for <a href="https://www.commsec.com.au/" target="_blank">CommSec</a>. 
 
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Sydney home prices record biggest slide in five years: CommSec Research

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Australian Property Monitors (APM) has released a list of auction results in Sydney for Saturday 28 November. 
<a href="https://www.homepriceguide.com.au/saturday_auction_results/Sydney.pdf" target="_blank" rel="nofollow">Click here</a> for the auction results, and click on each street address to see the property's marketing.
 
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