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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<div>The Sydney weekend auction market produced another strong result at the weekend although APM senior economist Dr Andrew Wilson acknowledges the trend has clearly weakened over recent weeks.  </div>
<div> </div>
<div>"Saturday’s 83.2 percent clearance rate was the lowest non-holiday rate reported since March 7," he noted. The revised result sits even lower, though still in the 80s. </div>
<div> </div>
<div>There was a $1.26 median house price across Sydney auction and an $843,500 median apartment price. Just the five sales below $500,000 in the Sydney metropolitan suburbs. </div>
<div> </div>
<div>
<div>The most expensive property reported sold at auction at the weekend was a 1960s three bedroom home at 4 Sverge Street Mosman sold for $3,050,000 by McGrath Mosman. 
Mosman again had the highest sale across Sydney - at $3.05 million at 4 Sverge Street - again through McGrath, albeit at half last weekend's $6 million top reported sale.
The weekend sale was a 1960s original on 768 square metres.
</div>
<div>The most affordable property reported sold at the weekend was a two bedroom Canley Vale apartment (below) that fetched $365,000, then outside of Sydney a two bedroom home at 39 Allambee Crescent, Blue Haven that sold for $295,000 by Raine and Horne Charmhaven.</div>
<div> </div>
<div>The Canley Vale apartment sold a $163,000 in 2008, reflecting a very healthy 12% annual growth.</div>
</div>
<div> </div>
<div>
<div id="Content_Content_propertyPhotos_MainImage_upnlHeroImage">
<div id="Content_Content_propertyPhotos_MainImage_MainImagePlaceholder" class="img-wrapper"><img class="js-first-image" src="https://b.domainstatic.com.au/w800-h600-w3456-h2304-2011962878_1_pi_150507_124645" alt="11/55 bartley st cabramatta NSW 2166"></div>
</div>
<a id="Content_Content_propertyPhotos_lnkPhoto" href="https://www.domain.com.au/ore/Public/Gallery/Photo.aspx?adid=2012019634&amp;pic=1&amp;mode=Sold&amp;AgencyID=8437" style="line-height: 1.3em;"> </a>
</div>
<div>Saturdays result was slightly lower than last weekend’s 83.3 percent but well ahead of the 75.1 percent recorded over the same weekend last year. </div>
<div> </div>
<div>"Sydney’s weekend clearance rates however have now fallen over three consecutive Saturdays which may indicate early signs of the usual mid-year hibernation for the market as buyers and sellers re-focus on a spring campaign," Dr Wilson suggested.</div>
<div> </div>
<div>Sydney's overall weekend clearance rate was a smidge down at 83.2%, compared to last weekend's initial 83.3%, which was then revised down to 81.9% after the late notified results.</div>
<div> </div>
<div class="separator">Saturday’s weekend result was achieved from high auction numbers for this time of the year with 686 listings – just below last weekend’s 692 but well ahead of the 580 listed over the same weekend last year.</div>
<div class="separator"> </div>
<div class="separator">Over 650 auctions are expected next weekend.</div>
<div> </div>
<div>The Blue Mountains again reported the highest regional clearance rate with 100% from just two reported auctions.</div>
<div> </div>
<div>Next highest was the north west with 96.2 percent with just one of the 26 reported auctions failing to sell under the hammer.</div>
<div> </div>
<div>The inner west followed with 87.5 percent, the northern beaches 86.7 percent, Canterbury Bankstown 86.5 percent, the lower north shore 86.2 percent, the city and east 85.5 percent, the west 83.3 percent, the upper north shore 81.3 percent, the south 80.0 percent, and the south west 69.0 percent.</div>
<div> </div>
<div>The central coast with a 66.7 percent clearance rate.</div>
<div> </div>
<div>
<div>Sydney’s upper north shore hosted the most number of auctions of the suburban regions with 98 scheduled.  Next highest was the inner west with 93 followed by the south 87, the city and east 74, the lower north and the west each with 60, Canterbury Bankstown  43, the northern beaches 42, the north west 33, the central coast 19 and the Blue Mountains with 2 auctions scheduled this weekend.</div>
<div> </div>
<div class="separator">The most popular suburb for auctions in Sydney on the weekend was Wahroonga with 12 followed by Mosman with 11, Baulkham Hills 10, Hurstville and Blacktown each with nine.</div>
</div>
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jchancellor-FAypfDUnLy

Mosman again the weekend's dearest with Canley Vale $365,000 the cheapest

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For the third time this year Thornleigh has secured another suburb price record.
This time, the Daily Telegraph reports, it was the sale of a renovated four-bedroom house on Beresford Road which bettered the $1,715,000 set last month when the record was set twice on the same day.
Auctioneer Leon Axford sold <a href="https://www.realestateview.com.au/Real-Estate/37-beresford-road-thornleigh/Property-Details-buy-residential-8947628" target="_blank">37 Beresford Road</a> through Dion Verzeletti at Ray White at $1,717,000 today. <a href="https://au.news.yahoo.com/video/watch/28508435/property-bubble-bigger-than-estimated/#page1" target="_blank">Channel 7 were there</a>.
<img src="https://i3.au.reastatic.net/800x600/56e73ac2c4a76a378b7f9ba23cb7c97c7f3cdb45b76d5b5c2d2090d1cee674cb/main.jpg" alt="37 Beresford Road, Thornleigh" title="37 Beresford Road, Thornleigh" data-index="0">
Property Observer recently noted Thornleigh was among 14 Sydney suburbs scoring a perfect 100% auction clearance rate during the autumn selling season.
Thornleigh on the upper north shore headlined the remarkable feat <a href="/expert-insights/buying/thornleighs-100-autumn-auction-success-rate-and-the-13-other-stellar-sydney-hotspots">with 23 sales over the three months to May 31</a>.
The $1,717,000 house had been extensively renovated having previously (photo below) sold at $660,000 in 2013 and at $640,000 in 2010.
<img class="js-first-image" src="https://b.domainstatic.com.au/w800-h600-6747086_1_pi_150228_085305" alt="37 beresford rd thornleigh NSW 2120">
Thornleigh's runner up now is 20 Handley Avenue, (below) a five bedroom country style homestead.
<img src="https://i1.au.reastatic.net/456x342/07c6c3fd3959eadaed1cb608088d03b78596262841232e83d31c38f03847f97d/main.jpg" alt="20 Handley Avenue, Thornleigh" title="20 Handley Avenue, Thornleigh" data-index="0">
Still on the podium is 23 Judson Road, a five bedroom single storey home (below) on a 778 square metre triangular block.
<img src="https://i1.au.reastatic.net/456x342/b2bf40fa180206e8289961625184f19419bcb7aff967a9a5732619e744b6707a/main.jpg" alt="23 Judson Road, Thornleigh" title="23 Judson Road, Thornleigh" data-index="0">
The suburb went into 2015 with a $1,525,000 top sale price.
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$2000 higher, so Thornleigh's third record residential sale in 2015

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Australia has boosted its prime residential price index, with Sydney and Melbourne boosting their international status as number 10 and 11 respectively on the latest Knight Frank Prime Global Cities Index.
The index enables investors and developers to monitor and compare the performance of prime residential prices across key global cities, with prime property corresponding to the top five per cent of the wider housing market in each city.
The Knight Frank Prime Global Cities Index increased by 3.9% globally in the year to March 2015. North American cities occupy three of the top four rankings for annual price growth, while luxury properties are, on average, 46% more expensive than in Q2 2009 when the index hit its financial crisis low.
 
Out of the 56 markets monitored by Knight Frank, only 14 locations registered price declines.
The worst performing was war-torn Ukraine, showing a 15.5 percent drop in rates, followed by Cyprus, where values fell by 8.2 percent and China, falling by 6.4 percent.
 
The index, which is compiled on a quarterly basis using official government statistics or central bank data, indicated that Hong Kong is currently the top performing market today in terms of growth in property values, registering an increase of 18.7 percent.
 
The second top performing market is Turkey, where values accelerated by 18.6 percent, followed by Ireland in the third place (16.8 percent), Luxembourg (12.1  percent) and Estonia (11 percent).
According to Knight Frank’s Associate Director for Residential Research in Australia, Michelle Ciesielski, Sydney and Melbourne have increased on the index by 7.4% and 7.2% respectively over the past 12 months.
“Despite the mainstream market in Sydney over the same time achieving growth of 16.5% for houses, and 12.9% for apartments, those purchasing prime properties in Sydney have preferred to wait for the right opportunity, at the right value.
“The two years following the introduction of the Significant Investor Visa in 2012, we saw more Chinese-based purchasers in the prime residential market.
“However, over the past 18 months we’ve witnessed more local purchasers, with many expats returning to Sydney and Melbourne.
 “We expect growth to continue in the top five per cent of the residential market with the current low-interest rate environment, steady business confidence and a weaker Australian dollar than we saw when the Significant Investor Visa was first introduced.
“Attracting more net worth individuals to Australia, from July 1, the Government will be offering a more expeditious, 12-month pathway to permanent residency for those meeting an AUD$15 million threshold under the Premium Investor Visa,” said Ms Ciesielski.
According to the report, globally the index showed a mixed picture. Previous strong performers such as London slipped back, whilst cities such as San Francisco, Vancouver and Sydney climbed the rankings.
The report found the ongoing tussle between globalisation (wealth creation, improved connectivity) on the one hand and protectionism (including foreign buyer restrictions, capital controls) on the other is set to dominate purchase decisions for luxury buyers and hence market performance going forward, as explored in this year’s <a href="https://www.knightfrank.com/wealthreport" target="_blank" style="line-height: 1.3em;">Wealth Report</a>.
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Sydney and Melbourne boost international status: Knight Frank Prime Global Cities Index

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Pharmacists Gary and Mary Smoker have relisted their Mosman trophy home, Ardagh.
It had initial $15 million hopes through Brendan Warner of Raine &amp; Horne Mosman, but is now listed through Richard Harding at LJ Hooker who says there had been only five owners in a rich 110 year history, "truly one of the North Shore's finest family estates."
<a href="https://www.realestate.com.au/property-house-nsw-mosman-119904045" target="_blank">Set on 2700 square metres</a>, the seven-bedroom Federation mansion with pool and tennis court was built in 1905.
In 1922 it was bought by former British trade commissioner John Adamsand his wife Gwynneth who sold it in 1964 to pianist John Champ.
Smoker, a former Mosman alderman, bought the Prince Albert Street property in 1993 for $1.7 million. 
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Ardagh, the Mosman trophy home relisted

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Most of the price data that clutters up the airways is essentially useless information.
Boffins sitting in an office in Paris look at a number which says “Australian property values rose 9% in the past year” and imagine that tells them something about conditions in the fictitious creature they call the Australian property market.
Suddenly we have the OECD telling us we’re at risk of a price correction after gazing at Australia through an out-of-focus telescope across a distance of 17,000km. Seriously, these turkeys have no right to even express an opinion. Especially as that opinion is based on a meaningless statistic.
I’ve read in the past two weeks at least five different figures purporting to describe the median cost of the home in Sydney, ranging from $750,000 to $1 million.
Most of them are fanciful and inaccurate but that doesn’t stop commentators from giving them enormous import. The walking talking ego generally known as Graham Richardson pontificated that the average Sydney home cost a million dollars and declared that no one could afford that. The statement was inherently absurd because if the Sydney market is raging and a million dollars is the median price, clearly a lot of people can afford it because half of all sales are higher than that median figure.
The bottom line is: the average, mean or median is not a million dollars. CoreLogic RP Data’s latest figures suggest the median dwelling price for Sydney is currently $752,000. The other bottom line is that this figure is meaningless and misleading when you understand that Sydney has over 700 suburbs with median house prices ranging from $345,000 to $3.46 million.
It’s particularly meaningless and misleading in this context: first-home buyers can’t afford to pay $752,000 therefore, according to the misinformed, we have an affordability crisis which means we need to scrap negative gearing, ban foreign investment, cut out all first-home buyer grants because apparently they just inflate prices, introduce lending restrictions, call another federal parliamentary inquiry because the 18-month inquiry recently concluded didn’t discover anything new and savage the Federal Treasurer for daring to suggest a good job enhances your prospects of getting a loan.
The end result: truth, accuracy, balance and fair play just took another hammering - but, hey, lots of newspapers got sold.
The latest edition of Market Monitor from the Real Estate Institute of Queensland highlights how unhelpful it is to quote a single price statistic for an entire large city.
CoreLogic RP Data says the home value index for the Greater Brisbane area rose 3.1% in the past 12 months. Domain says the median house price increased 2.8%.
What do you deduce from that? That the Brisbane market is lukewarm? That growth in the city is anaemic at best? Richardson, in his irresponsible outburst on Sky News last week, declared Brisbane had recorded “no growth for years”.
You have to look deeper, otherwise you’re wasting everyone’s time.
Market Monitor shows the median house price for the Brisbane City local government area rose 7.2% in the year to April. So the Brisbane City Council area has been better than the wider Brisbane metropolitan area. 
And many individual suburbs did considerably better than that. Northgate grew 12.7% and Holland Park 13.5%, while Chermside rose 18.4% and Nudgee 17.3%.
A scan of the figures suggests that the middle market suburbs of Brisbane City have done much better than the LGA average, which in turn in much higher than the Greater Brisbane average result.
But media quotes the area average rise, which creates a quite misleading impression.
If you take the time to look through a report like Market Monitor, there are hundreds of stories about suburban and town markets, all doing different things influenced by local events - oblivious to the level of interest rates or the ignorance of media talking heads or the pompous proclamations of twits working for a bureaucracy based in Europe.
TERRY RYDER is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a> 
Terry was joined by Property Observer editor at large Jonathan Chancellor yesterday for a webinar on why research is the key to successful property investing in 2015. You can download slides and audio from the webinar here.
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Accurate price data or useless information? Terry Ryder

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Conditions in the housing market in Sydney and parts of Melbourne had remained "very strong," though trends were more mixed in other cities, according to the Reserve Bank of Australia June meeting minutes.
The ratcheting up of the market strength comes after prior commentary that had these markets as "strong." 
It noted dwelling investment looked to have grown strongly in the March quarter and forward-looking indicators of construction activity pointed to a further pick-up.
Members noted that conditions in the established housing market had continued to vary across the country.
"Although housing price inflation had remained high in Sydney and, to a lesser extent, in Melbourne over recent months, there had been some divergence in price developments for different segments of these markets; price inflation of detached houses had increased, whereas price inflation for units had eased in both cities."
This trend was picked up in the <a href="/expert-insights/buying/apartment-price-decline-mays-most-marked-trend-corelogic-rp-data">June CoreLogic RP Data statistics</a>. 
"Noting that housing price growth in other cities and regional areas had declined over recent months, members discussed the strength and composition of underlying supply and demand conditions in different parts of the housing market."
They also observed that there was a relatively low stock of dwellings for sale in Sydney and Melbourne and that dwellings took only a short time to sell.
Members noted that housing credit growth overall had been broadly steady at around 7% (on a six-month-ended annualised basis), though the latest data on loan approvals had showed a pick-up.
Over the past six months or so, growth in investor credit had eased back to be running at an annualised pace of a bit above 10%. However, over more recent months there had been solid increases in housing loan approvals to both owner-occupiers and investors, particularly in New South Wales, following earlier declines.
 
  
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Units off the boil, but house inflation in Sydney and parts of Melbourne now "very strong" RBA June minutes 

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New figures from the Commonwealth Bank in conjunction with CoreLogic RP Data show a number of 'extreme' conditions for selling property located within the western, outer west, outer south west and inner Sydney suburbs.
The <a href="/expert-insights/buyers-favoured-over-sellers-in-queensland-commonwealth-bank-home-buyers-index">Commonwealth Bank-CoreLogic Home Buyers Index (HBI)</a> April 2015, released today, noted Liverpool-Fairfield and Blacktown as suburbs which market conditions became much less favourable for sellers during the three-month period ending in April.
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The report also suggested appropriately-priced are selling quickly and often above list price, with buyers "having much less negotiating power due to low stock levels and rapid selling times."
 
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'Extreme' selling conditions in Sydney pockets: Commonwealth Bank-CoreLogic Home Buyers Index

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The debate over Sydney’s property price bubble (Yes there is! No there isn’t!) sits smack bang in the middle of one of the most fascinating economic questions of our time: how risky is sudden asset price inflation?
And if the risk is judged to be high what, if anything, are policymakers to do about it?
In the 24/7 world of US and European bond markets, traders’ Bloomberg screens have bleated dire warnings since bond yields went negative last year for the first time in modern economic history. In China, speculators watch equity markets in Shanghai and Shenzhen that have risen more than 150% in the past 12 months. And in Australia, Australian_property_bubble is its own Wikipedia page.
As my former boss Saul Eslake pointed out last week in the Sydney Morning Herald, to use the term bubble in relation to asset prices is “emotionally laden”. It has no definition in the academic literature, other than a generalised notion of a sudden and upward acceleration in asset price movements that poses the risk of a violent crash.
Alan Greenspan’s famous term “irrational exuberance,” was another expression of emotion. Bubbles – the endgame of a bull market – are not as well defined as a bear market, which generally refers to a 20% or more fall in equity prices, or an economic recession, which is two consecutive quarters of negative GDP growth.
What is a bubble and other tricky definitions
One of the big challenges in defining a bubble is in establishing its start. Sydney property prices are a case in point. In 2014, the ABS residential property price index for Sydney indicated a 14.7% rise for the year. That’s strong growth, and was at least double the rate of growth seen in other capital cities. But extend the starting point back five years, and Sydney’s property prices have increased by 39%, roughly on par with Canberra (36%) and Melbourne (35%). Go back 10 years, and Sydney’s property price growth of 57% is significantly less than the national weighted average of (85%) and less than half that of Darwin (168%) and Perth (133%), or even Melbourne (113%).
So are Sydney property prices in bubble territory, or are they just catching up after a period of flat-to-negative growth in the early 2000s? What of other factors such as the underlying dynamics of supply and demand, housing density, urban planning and land value?
When policymakers are staring in the face a potential bubble, their real concern is the underlying drivers of that sudden, rapid surge. Is the bubble a symptom of systemic risk?
Growth in credit and foreign investors
In Sydney’s case, two potential systemic risks merit scrutiny. The first is the very rapid growth in credit being used for property investment; that is, the expansion of leverage. The second is increasing foreign investment that is reportedly flowing into the Sydney property market, purportedly from China.
These are, however, two very different risk stories. Of the two, leverage is far more pernicious. Excessive household leverage in particular walks down a well-worn path toward financial instability - as the global financial crisis amply reminded us - where it can take years for families to repair their balance sheets after a hit. “Buyer beware” is a theoretically correct construct, but not a particularly practical one should a government have to face down armies of homeowners sinking under negative equity.
Rising capital inflows hold much less risk, particularly in an Australian context. A sufficient magnitude of outflows would dampen market prices, potentially cause the Australian dollar to weaken somewhat and ultimately require some current account adjustment. One could argue that this outcome may be an upside risk for growth, not a downside one.
Reserve Bank of Australia governor Glenn Stevens’ comments last week in Brisbane make it clear that his focus is square on the risk of leverage. He notes pointedly that Australian households already have a high debt burden taken on in the years leading up to the 2008 financial crisis; the point of the speech was a plea was for government to shoulder the burden by getting on with a boost in useful (non-mining) infrastructure investment while cheap finance is so plentiful.
Macroprudential actions
Should Stevens’ concerns on household indebtedness move from words to action, the policy response would be to temper leverage. The most targeted and effective approach is to make borrowing more expensive through more stringent customer debt-to-income tests.
The RBA and Australian Prudential Regulation Authority (APRA) could also reduce the allowable maximum loan-to-valuation ratios (LVRs) thereby requiring higher deposits – following the example of the Reserve Bank of New Zealand – or, in a nod to recommendations in the Financial Services Inquiry, increase the Big Four banks’ risk weights on capital held against mortgage loans.
These types of measures are often called “macroprudential”– that is, regulations applied to maintain financial system stability by directly addressing perceived underlying risks. Macroprudential regulation is a term that has come back into vogue in the post-GFC world. In reality, the concepts are not new.
As Luci Ellis and Paul Woolley pointed out in an RBA paper back in 2012, a macroprudential policy stance is more a state of mind around monitoring and acting on systemic risks rather than a specific set of policy measures or tools.
Lower stamp duties, increase capital gains tax?
A second course of action would be for the federal or state government to shift market dynamics through tax incentives. Lowering stamp duties would reduce transactions costs, potentially freeing up more supply in the existing housing stock. So could shifting the pension asset test to increase the incentive to downsize from the family home once it is no longer needed. Introducing greater capital gains tax on properties sold within a short period or reducing the benefits of negative gearing would go a long way toward discouraging investor-driven acquisitions, while imposing new levies on purchases by non-residents could dampen capital inflows.
The problem with changing property-related tax policies for residents is twofold; not everyone will be happy, and the need for gradual introduction to allow for adjustment means impacts may be slow. An additional issue with trying to limit property purchases by non-residents through tax is that its target is a great unknown.
Hong Kong’s failure to deflate
As will be discussed in depth in a paper released by the Australian Centre for Financial Studies and Finsia this week, there continues to be a remarkable lack of comprehensive and reliable data on both the source and ultimate destination of foreign investment into Australia, and particularly into the residential and commercial property market. With such thin evidence as to both the total size and the source of these anecdotal flows, policymakers are shooting in the dark.
Beyond this, it cannot be guaranteed that raising borrowing costs and shifting tax incentives would deflate a perceived property bubble. Hong Kong and Singapore have both tried it, and arguably failed. In 2010, Hong Kong moved to simultaneously require a significant increase in deposits for investment properties while also adopting additional stamp duties on investment properties, with higher penalties for non-resident investors. Singapore followed suit in 2013.
The impact on Hong Kong has been negligible. Despite concerns of market disruption in 2010, property prices continued to climb and hit an all-time high last year. Singapore did see its property prices flatten in 2013, then fall by 4% in 2014.
However, there has also been a significant decline in the volume of both existing and new home sales according to the Urban Redevelopment Authority, suggesting that these measures may not have had the desired impact of increasing housing affordability or supply. And although prices have not increased, they remain high relative to Singapore household income.
Crazy indeed.
Amy Auster is Deputy Director at the Australian Centre for Financial Studies. She can be contacted <a href="https://www.australiancentre.com.au/AboutUs/Staff/AmyAuster" target="_blank">here</a>.
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Blowing bubbles: the tricky task of tackling Sydney's property market 

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From social housing to speculators. 
The first government-sold heritage terrace at Millers Point that fetched $1,911,000 just 10 months ago is back for sale.
The 1880s terrace was the first of scheduled 293 public housing properties to be sold off by Government Property NSW in August last year.
<a href="/expert-insights/buying/vacated-millers-point-four-level-terrace-fetches-1-911-000-at-private-state-government-auction">The then rundown four-bedroom heritage-listed</a> home had been vacant since early 2011 with the last public housing tenant paying $77.20 a week rent at the property which has water views over Walsh Bay.
The relisted <a href="https://sydneysothebysrealty.com/5095303/119-Kent-Street-Millers-Point" target="_blank">119 Kent Street, Millers Point </a><a href="https://sydneysothebysrealty.com/5095303/119-Kent-Street-Millers-Point" target="_blank">home</a> sits on a 109 sq m block with no parking.
The house has original fireplaces and floorboards, 3.25m high ceilings and a sandstone-walled sunlit courtyard.
It is marketed by Harriett France a Sotheby's as "recently refreshed with new kitchens and bathrooms - scope for further improvement."
Around $2.5 million is expected by the Sfeir family.
The controversial sell off, which has resulted in the relocation of public housing tenants, is tipped to set off a major gentrification in the historic suburb.
The state government <a href="https://rediscovermillerspoint.com.au" target="_blank">has created a website </a>to sell the virtues.
 
 
 
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Quick flip profits sought for 119 Kent Street, Millers Point former state government offering 

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There were 14 Sydney suburbs scoring a perfect 100 per cent auction clearance rate during the autumn selling season.
Thornleigh on the upper north shore headlined the remarkable feat with 23 sales over the three months to May 31.
In second place with 22 sales was Naremburn on the lower north shore.
Sydney's clearance rate for the autumn quarter sat at 83.3 per cent with 161 suburbs scoring auction success results above the Sydney-wide clearance rate. 
With winter auctions now underway, Thornleigh won't be on the next 100 percent list given a three bedroom weekend offering (below) was withdrawn, now for sale with offers sought above $1 million.
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<div id="Content_Content_propertyPhotos_MainImage_MainImagePlaceholder" class="img-wrapper"><a id="Content_Content_propertyPhotos_MainImage_MainPhotoLink" class="feature" href="https://www.domain.com.au/ore/Public/Gallery/Photo.aspx?adid=2011994087&amp;pic=1&amp;mode=Buy&amp;AgencyID=17346" target="ImageWindow"><img class="js-first-image" src="https://b.domainstatic.com.au/w800-h600-w1600-h1200-2011994087_1_pi_150608_045111" alt="71 beresford road thornleigh NSW 2120"></a></div>
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<div class="img-wrapper">Backing onto natural bushland with a north east to rear aspect, the elevated home was marketed as providing "an exceptional investment opportunity" with future potential for the 765sqm site. The estimated return was $600 per week according to the McGrath marketing. It was bought by a super fund at $535,000 in 2009. </div>
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<div class="img-wrapper">Nearby Cherrybrook in the Hills district was among other strong 100% performers during Autumn, according to Australian Property Monitors.</div>
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Ditto Killarney Heights on the northern beaches, North Willoughby on the lower north shore, Manly Vale on the northern beaches, Westmead and North Strathfield in the inner west and the southern suburbs' Mordale, Birrong, Kareela and Gymea South.
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There was Lalor Park in Blacktown, Wentworthville in the west.
APM Domain Group senior economist Dr Andrew Wilson most of the 14 suburbs tended to be next to much better known suburbs, but they had recently come into their own as a more affordable alternative.
The Sydney suburb with the lowest clearance rate was Middleton Grange in Sydney's west, where 46 per cent of homes sold under the autumn auction hammer.
On Saturday Sydney secured an auction clearance rate of 83.3 per cent.
 
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