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

Joel Robinson

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

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

Sammut secures approval for debut Brisbane apartment development in Toowong

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

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

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

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

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

WM Residences fills gap in Mordialloc townhouse market

Sydney

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A $38 million sale has been reported of Andrew Roberts' Gladswood Gardens, Double Bay property.
The six bedroom, eight bathroom harbourfront property is set on the northern point of Double Bay.
It was sold by the Bondi Beach-bound Multiplex scion Andrew Roberts who had it listed through Bill Malouf of LJ Hooker, The Australian reported.
The 1145 square metre north-facing holding has a three-level house completed in 2005 after Roberts paid $10.1 million in 2003.
Andrew Roberts, the former chief executive of Multiplex, has spent a record $25 million off the plan for a luxury Bondi Beach penthouse in the Pacific Bondi Beach complex.
Mr Roberts now heads RF Capital, which invests in commercial property, listed equities, ­private equity, and resources.
The house, which comes with heated pool, four-car garage, jetty and mooring, was once part of the Gladswood House grounds until subdivided by the Parisi family in 1950 for 10,000 pounds.
<div id="Content_Content_propertyPhotos_MainImage_upnlHeroImage">
<div id="Content_Content_propertyPhotos_MainImage_MainImagePlaceholder"><a id="Content_Content_propertyPhotos_MainImage_MainPhotoLink" href="https://www.domain.com.au/ore/Public/Gallery/Photo.aspx?adid=2008377543&amp;pic=1&amp;mode=Buy&amp;AgencyID=4382" target="ImageWindow"><img src="https://b.domainstatic.com.au/w790-h526-2008377543_1_pi_150226_060531" alt="11a gladswood gardens double bay NSW 2028"></a></div>
</div>
Bill Malouf briefly had it for sale in 2010 when it was tipped to sit between the Sydney records set in 2008, when Craig-y-Mor fetched $32.4 million and Coolong sold for $45 million to Ivan Ritossa, the head of foreign exchange at Barclays Capital, through estate agent Bill Bridges. 
<div id="gallery">
<div><img src="https://b.domainstatic.com.au/w790-h526-2008377543_4_pi_150226_060531" alt="11A Gladswood Gardens Double Bay"></div>
</div>
Title Tattle recalls the property was sold to Andrew Roberts through Laing &amp; Simmons Double Bay agent Bart Doff by the Ho hotel investment family who were relaxing at Huka Lodge, New Zealand, when Title Tattle breezed through some years ago.
The property had previously traded in 1989 for $7.28 million when sold by Robert Hampshire whose plans to merge it with Gladswood House failed after a tussle with then neighbour Alan Bond.
That was unquestionably one of the most riveting property dramas of the highflying late 1980s.
One of Australia's then wealthiest, Alan Bond, and the entrepreneurial property developer Dr Robert Hampshire were engaged in an expensive and intriguing tussle over who should own and restore the Sydney sandstone landmark Gladswood House. And neither got their way, with both sold out separately by the early 1990s.
Bond owned Gladswood House, built in 1856 on the prime Double Bay peninsula, but Dr Hampshire, the flamboyant Sydney developer, snookered Bond by secretly securing the adjacent property.
Both men harboured a $30 million desire to restore the baronial mansion, which was once set on two hectares, to its place as one of Sydney Harbour's most elegant homes.
Title Tattle recalls Dr Hampshire said at the time: "It's like Solomon's purse."
Each one worth (supposedly) nothing on its own but worth the world together.
Looking on from his neighbouring holding, Hampshire believed Gladswood House rivalled Kirribilli House and Carthona, the Oxley Darling Point residence, as the finest harbour-side homes.
Occupied by the crew of Bond's Southern Cross II, the Gladswood Gardens castle had purchased by Bond's Endeavour Resources Pty Ltd for $2.4 million in January, 1986.
Alan's then wife, Eileen Bond, who had a flair for interior design, told Title Tattle back then that "We really do love that house. We certainly won't sell, but it would be nice to get the property next door."
Gladswood House's previous owners include the property developer Warren Anderson and the investment banker Robert Whyte. 
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jchancellor-FAypfDUnLy

Andrew Roberts secures $38 million for Double Bay harbourfront

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Just 2.4% of Sydney resales in the December quarter made a loss, according to CoreLogic RP Data.
The effects of Sydney's boom seemed to fade at the edges of the city. Central Coast regions Wyong (6.8%) and Gosford (6.0%) recorded the highest proportions of loss-making resales of any Sydney region (CoreLogic RP Data includes Central Coast suburbs in its Sydney analyses). Pittwater also recorded a 6% loss rate.
Just two council areas had a 100% success rate over the quarter: Hunters Hill and Botany Bay.
In the latest Pain and Gain report, CoreLogic RP Data noted that the chance of making a gross profit increased with a home's holding time. Profit-making properties were held by the vendors by an average of 10.2 years, and homes that sold for over double their purchase price were held of an average of 16.8 years.
In Hunters Hill, the average hold period for homes sold in the December quarter was 10.5 years. The median profit made on resales was $680,000.
Similarly, the average hold period for a Botany Bay house sold in the final 2014 quarter was 11.3 years. The median profit there was more modest, at $299,500.
Botany Bay
The Botany Bay council region includes Botany, Botany Bay, Banksmeadow, Daceyville, Eastgardens, Eastlakes, Hillsdale, Mascot, Matraville, Pagewood and Rosebery.
The median price of a <a href="/news">Botany</a> house was $971,500 in January 2015, according to CoreLogic RP Data, while the median unit price was $700,000.
The vendors of <a href="https://www.realestate.com.au/property-house-nsw-botany-118577511" target="_blank">29 Brighton Street in Botany</a> (pictured above) sold it for $865,000 in December last year. They paid $525,000 for the three bedroom house in September 2007, with last year's sale resulting in a gross profit of $340,000.
<a href="https://www.realestate.com.au/property-house-nsw-botany-118926799" target="_blank">6 Livingstone Avenue in Botany</a> was another property that sold for a gross profit recently.<img src="/images/2015/04/10/Picture%2046.png" alt="" style="font-size: 12.1599998474121px; line-height: 1.3em;">
Source: CoreLogic RP Data
In February, the property sold for $1,175,000 after being held for 36 years by the vendors, who purchased the home for just $42,500 in 1979.
Hunters Hill
The Hunters Hill local government area includes Henley, Hunters Hill, Huntleys Cove, Huntleys Point and Woolwich.
Houses in the suburb of <a href="/news">Hunters Hill</a> sold for a media price of $1,909,000 in January 2015, while units sold for a median price of $1,085,000.
<a href="https://www.realestate.com.au/property-house-nsw-hunters+hill-118110583" target="_blank">62 Park Road in Hunters Hill</a> sold for $1,890,000 in November. The vendors paid $410,000 for the character home on a 803 square metre block in 1992. Over their 22 years of ownership, the home's value increased by 361%.
The vendors of <a href="https://www.realestate.com.au/property-house-nsw-hunters+hill-118164419" target="_blank">42 Bonnefin Road in Hunters Hill</a> held their home for a much shorter time, selling it in November 2014 after five years of ownership.
The two storey home sold for $1.89 million late last year. The vendors paid $1,585,000 in December 2009, with last year's sale resulting in a gross profit of $305,000.
Almost a third of Sydney homes sold in the December quarter sold at least double their purchase price.
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jrichardson-uRX5hFdKfN

Hunters Hill and Botany Bay sales have 100% success rate in December quarter: CoreLogic RP Data

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The record-breaking Sydney weekend auction streak resumed after the Easter holidays with an initial 86.8% clearance rate reported this weekend. Melbourne auctions remained strong, recording a clearance rate in the high 70s.
Sometimes the Easter break triggers a change in energy, sometime upwards, sometimes downwards (as it did in 2014), but not this year in the major auction cities which have been both having schools holidays.
There were 525 Sydney auctions listed this weekend with another rise in numbers scheduled next weekend, before a pause in activity <a href="/expert-insights/buying/agents-ensure-anzac-day-auction-slim-pickings">for the centenary of the Anzac </a>landings at Gallipoli.
Abbotsford secured the top sale at $5,215,000, while there were nine auctions at Neutral Bay  followed by St Ives, Ryde and Wahroonga each with seven offerings, according to Australian Property Monitors.
These had been a record initial 87.5% election day auction success rate on the pre-Easter 28 March weekend as Sydney’s supercharged housing market hit eight weeks above 80%. The revised figure was 83.7%. The Easter weekend had just the 34 offerings.
There was a strong $1.28 million McGrath auction sale (below) of a Toongabbie development offering.
<img src="https://i3.au.reastatic.net/800x600/95b0ba13455400e6d1c3ec87240c68586b9973e93f35186015651ac9415b2624/main.jpg" alt="43 Cornelia Road, Toongabbie" title="43 Cornelia Road, Toongabbie" data-index="0">
The 1,552 square metre approved two lot Toongbabbie subdivision with existing three bedroom cottage had been marketed at $990,000 plus expectations.
The Abbotsford top seller had been held by the same family for six decades on the shores of the Hen and Chicken Bay. 
Selling agent Fayez Yammine of Devine Real Estate said the past record was set in February with a sale on St Albans Street at $4.9 million, well up on the suburb's CoreLogic RP Data $1.46 million median house price.
Melbourne had a 78% weekend success rate among the initial 540 REIV results.
The REIV was expecting about 670 auctions in 252 suburbs on the 11 April weekend across Melbourne.
The top Melbourne auction locations were Reservoir (11 auctions) and Mount Waverley (10 auctions), followed by Carnegie and South Yarra with seven auctions in each.
There were just the 44 auctions, mostly coastal, on the Easter weekend in Victoria.
On the busy 28 March pre-Easter weekend there was a Melbourne clearance rate of 79% on the initial 1,291 auctions reported to the REIV.
Auctions included a three-level warehouse residential conversion at 118 Victoria Street, Brunswick East, (top above) that been listed with adjusted expectations above $875,000. It fetched $917,500.
The open-air home comes with two bedrooms, industrial concrete floors, trussed ceilings, and infinity edge pool.
<a href="https://www.jelliscraig.com.au/property-details-118-Victoria-Street-Brunswick-East/218699#.VRMrFDpMIzU" target="_blank">Jellis Craig agent Craig Shearn</a> had the scheduled auction.
It last sold at $614,000 in 2006 when Craig Shearn was quoting $500,000 to $550,000.
It had been the Youngs Motor Product premises.
The REIV reported the top sale was in Middle Park. <a href="https://www.realestateview.com.au/Real-Estate/162-page-street-middle-park/Property-Details-buy-residential-8528338" target="_blank">Realestateview</a> indicates it was a 1915 single fronted terrace sold through Marshall White agents Oliver Bruce and Michael Paproth.
Top 5 Houses
162 Page St MIDDLE PARK $3,375,000 3 Edwin Rd TEMPLESTOWE $3,100,000 1 Nerolie Ct WANTIRNA SOUTH $2,210,000 259 Bridport ALBERT PARK $2,022,000 1/96 Campbell Rd HAWTHORN EAST $1,915,000
<div class="pd-content-line">Top 5 Bargain Houses</div>
3 Fuchsia Ct NEWCOMB $235,000 70 Cox Rd CORIO $237,000 19 Mortlake Av DALLAS $283,500 43 Filipi Dr ST ALBANS PARK $314,000 25 Wynnette Ct EPPING $325,000
Top 5 Flats/Apartments
23/156 Rose St FITZROY $1,400,000 80A Marriage Rd BRIGHTON EAST $1,175,000 1/8 Loddon St BOX HILL NORTH $1,170,000 33 Lilly St CLIFTON HILL $1,115,000 2/65 Park La MOUNT WAVERLEY $1,000,000
Top 5 Bargain Flats/Apartments
1/38 Balliang St SOUTH GEELONG $195,000 18/54 Balston St BALACLAVA $270,000 3/54 Cunningham St NORTHCOTE $290,000 21/81 Edinburgh St RICHMOND $300,500 6/5 Redan St ST KILDA $326,000
<a href="/news">Source: REIV </a>
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Only the slightest dip as Sydney and Melbourne auctions resume with energy after Easter

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GUEST OBSERVATION
Over the past few months of 2015, I have found myself dealing with a similar conversation almost every day. Many clients have been looking for help to think through a very difficult and challenging situation.
My clients (usually Sydney based ambitious families in their 30s and 40s) have all been battling the very same problem: “How do we get our family 'forever home' with the insane price rise in Sydney property?”
I doubt that I need to mention just how enormous the prices have been. Apparently <a href="https://www.theaustralian.com.au/business/property/melbourne-sydney-housing-prices-continue-to-rise-rp-data-shows/story-fn9656lz-1227204705717" target="_blank">Sydney is now up 57% since January 2009</a>. What makes this even more challenging is that the once affordable parts are now part of the unaffordable parts of town close to the city. 
If you read, what other people are willing to say (not that you should believe it) but<a href="/expert-insights/buying/the-factors-that-will-continue-to-drive-sydneys-prices-higher-peter-chittenden"> prices appear likely to continue to rise</a>.
From what I can see on my end is that affordability is pushed to the hilt for most families. Most families are taking out very large loans but what i see is that it does not meant they are not willing to push it a bit further.
With five year fixed interest rates at 4.4%; Buyers are undoubtedly saying I do not mind if the property prices do not grow further. I am just happy to make sure I do not have to rent long-term.
With rental prices at 3-3.5% of the house value; it is not such a crazy argument to have a stable home and potentially get some capital growth. Interest rates at 7% however and it would be a totally different story.
Without going in to detail about how I think Sydney property prices work, why they are very special, dangerous in some parts and very safe in others; it has been very interesting to have these conversations.
What makes it exciting is that we have actually ended up in very different places and decisions.
While a mortgage brokers job on the surface is very similar and boring to most, in reality when they take a financial planning approach with an education mindset they are able to help clients deal with their situation in their very own individual way.
An outcome that is suited to them and their future.
I love this about my job, it’s never a one-dimension answer and I believe in all these cases the client has made a great decision for them.
So fundamentally, what is the problem and what are the options?
<ul>
<li>Option 1: do I continue to rent in Sydney and be pushed out of the market forever</li>
<li>Option 2: do I buy a home with a huge debt</li>
<li>Option 3: do I invest elsewhere</li>
<li>Option 4: do I save a bit more money and wait for Sydney prices to fall or cool down?”</li>
<li>Option 5: Many others as you will see.</li>
</ul>
"What do options create? Problems"
It’s important to know that even though they all want the very same thing - a family home to last them forever; they are all have very different circumstances. Some have property already, some know their future plans exactly, some have lots of savings built up and some have very little savings but very high incomes. No matter where they have come from and where they are today, they are all dealing with this problem of "how can we get a home in Sydney with these ridiculous prices".
Couple 1 – Don’t buy in Sydney but invest elsewhere
This couple are in their mid 30s and are soon to be getting married. One partner is from Melbourne and both are very successful in what they do. To complicate things, depending on their employment they may move to Melbourne one day.
They do not have any kids, but long-term they would love to live on the Northern Beaches in a family home. They are renting together at the moment and are questioning what they feel like is a ridiculous amount on rent each month.
At our initial conversation, they were planning on buying a two bedroom unit in North Sydney as this is what suited their needs today. We discussed the pros and cons and the more we chatted the more the conversation went in many alternative ways. 
At the end of the conversation, we realised the two bedroom unit was not the right move. We agreed that even though they knew it may be better to buy their longer term home today in Northern Beaches and rent it out, they were not sure, where, when and what they wanted.
After many followup chats, they decided to invest elsewhere and in another state. They chose to buy a great unit in Brisbane with the help of a buyer's agent. They still kept plenty of cash aside and are potentially going to buy another investment property in Melbourne in the future.
The outcome, was to get one to two great long-term investment properties and delay the home purchase due to uncertainty around where, when and what. A great result I believe, as the assets they are purchasing are top properties and it would have been riskier to buy something that did not suit their needs in Sydney long term.
Couple 2 – Buy dream home today, but fix it up and rent it out
This couple had a very large amount saved up from years working overseas. While they have no immediate plans to get married or have children they are very sure they want to stay in Sydney long-term and know the areas they love.
Happily renting a cheap property on the beach, they decided to buy a home today in the inner east. They went for the worst house in the best street approach and they are spending the first few months, tidying it up before renting it out.
While they are not planning on living in the property for at least five years, they will be making a tax deductible loss and have improved the rental return with their small renovation. 
Couple 3 – Buy their dream home but in the Central Coast for a third of the price
This couple were at a similar point in time, not married and with no kids on the horizon just yet. They loved space and the sea, and after a few discussions they did not want to put a huge debt over their head.
To buy a home near the sea in Sydney would have cost them a fortune and after a few trips up the coast they decided to buy a home on the central coast at less than a third of what they would have paid for something similar in Sydney.
This decision suited them to a tee. They can now live the life they want but without the worry of a huge mortgage over their head and pressure to earn very high incomes.
Couple 4 – Buy a great Investment Apartment in Sydney and borrow at 88% to keep cash available for the home.
This couple similar to the above were looking to purchase a property in Sydney with the idea of selling again in five years to buy a home. After a long and lengthy discussion, we agreed that this may not be the best decision due to buying and selling costs, the type of investment they were looking at and what they want to buy long term.
We agreed that if they were going to buy in Sydney it would need to be a great asset that they could hold forever – not have to sell. They would have to get a great property and after some heavy negotiation with a very sharp agent they picked up a top two bedroom unit in the inner east of Sydney. A beautiful unit that will stay highly desirable forever.
We realised to buy this place and put down a 20% deposit would be a big ask and may not be wise. We decided to borrow at 88% and paid a portion of lenders mortgage insurance as a result. This kept a significant amount still available for when they purchase a home one day and lowered their risk for what was a minimal fee. A very happy outcome and couple. They haven’t got the dream home yet but they do have a cracking property in Sydney market for the next five years at least.
Couple 5 – Buy now with the help of parents and pay down the debt fast
This couple in their 40s and had a family already well underway. After a divorce, a wedding and bringing up teenager kids in Sydney, savings were limited. Fortunately however their combined salaries serviced loans well over $2 million.
After a lengthy chat, it was clear that it would be possible to use the equity in their retired parents investment property. While extreme care was taken, they are now able to purchase the home they want today. It should not affect their parents as long as they continue to pay the loan and in a few years hopefully they can remove this guarantee. With interests low, they are able to pay down the debt significantly over the next five years as long as they bought within their limits due to the very high incomes. A great result that means they have their home forever now for the family and do not have the stress of having to continually pay very high rent for a family of four.
These are just five examples and there are actually many other examples. Sydney prices are insane and difficult but there are other ways to cut the cake.
Chris Bates is a director at boutique financial advisors <a href="https://www.canopyprivate.com.au/" target="_blank">Canopy Private</a>.
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ChrisBates-qgpJqFG5wJ

Sydney's insane property prices - the tale of five couples: Chris Bates

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New Savills research shows that London is the most expensive city in the world for businesses to relocate their employees.
Hong Kong and New York are not far behind. In all three cities, the provision of office and living space now costs more than $110,000 per employee, per year.
Sydney ranks ninth on the Savills Live/Work Index (see table below) which has been dominated by London, Hong Kong and New York since it was launched in 2008. 
It is the second time that London has reached the top slot, having toppled Hong Kong in 2014, the capital's live/work costs at $118,085 per year, are still some way off the record $128,000 per year set by Hong Kong in 2011.
The recent Live/Work Index also indicates that London costs have dropped 7.3% in dollar terms since 2014.
Meanwhile, Hong Kong and New York have closed the price gap with London, showing a drop of 2.3% and a rise of 1.1% respectively.
Further down the rankings, a strong economic recovery and rising commercial and residential rents are combining with the strong dollar to make north Amercan cities increasingly expensive.
San Francisco, in fifth position, has shown the biggest increase, with growth in rent and other real estate costs up 4.8% since 2014, and 55.1% since 2008. 
<div align="center"><img src="https://232.v3.savills-vx.com/_images/Relocation_4.jpg?1428443524.16361" alt="Live/Work Index" width="475" height="712"></div>
<div id="txt_03" class="vx_text">
Source: <a href="https://www.savills.co.uk/research_articles/186576/187068-0" target="_blank">Savills World Research</a>
</div>
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Sydney ninth most expensive city on live/work index: Savills International

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There was 20% annual growth achieved on a recent Sylvania Waters flip.
<a href="https://www.mcgrath.com.au/buy/house-sylvania-waters-nsw-2224/250586/?searchID=48403317" target="_blank">The house</a> sold at auction for $1,441,000 after an update. 
<img src="/images/2015/04/07/sylvania%20waters%20april%207%20two.jpg" alt="">
This was the house in <a href="https://www.mcgrath.com.au/buy/house-sylvania-waters-nsw-2224/221941/?searchID=48403317" target="_blank">April last year</a> sold at $1.2 million.
The place had been spruced up during the unintended quick flip.
Bidding on 9 Roper Crescent opened at $1.1 million.
<img src="/images/2015/04/07/sylvania%20waters%20april%207%20three.jpg" alt="">
It was signalled as on the market at $1,436 million.
There were four bidders, but just two for the last $200,000 or so.
<img src="/images/2015/04/07/sylvania%20waters%20april%207%20four.jpg" alt="">
David Greig at McGrath Sylvania Waters told Property Observer that there were six registered parties on the four bedroom, two bathroom house.
There was $1.2 million plus price guidance on the part two storey house with rear oasis-like swimming pool with Travertine and palm surrounds.
Sylvania Waters is the suburb where the governor of the Reserve Bank Glenn Stevens resides.
The governor, too, owns a non-waterfront property; it's a two-storey house on 657 square metres which was bought in 1993 for $312,500.
Given price growth and renovations over the past 16 years, he could also recoup over $1 million.
"My house is not a fibro house, but it is a piece of spec rubbish built in the 1970s, and in many respects it shows that," Stevens told a 2007 House of Representatives hearing.
Back in the 1950s, Gwawley Bay oyster farmers sold out to the developer Jim Goyen, who constructed the suburb on land reclaimed from the Georges River.
After installing an eight-kilometre concrete retaining wall, more than 2 million cubic metres of shell-strewn sand was dredged during the 1 million pound infrastructure scheme.
The local council approved the development, with privately owned waterways, after sending the shire engineer to Florida Keys in the US to see how it could be done.
Property Observer noted there are diminishing numbers of original buyers remaining in the 50 year old houses, but some turned up to the recent auction.
The suburb's record was set at $4.6 million in 2004. The six bedroom, six bathroom house in the governor's street is on an unusually large 1,290 square-metre block on the open waters. 
There was one residence aiming for a waterfront record with $4.8 million expectations. The two-storey James Cook Island residence featured as Lois Lane's home in the 2006 movie Superman Returns. But it sold at $3.55 million in 2013, after four years on the market, unable to withstand the kriptonite effect of the global financial crisis.
It is among the last seven sales above $3 million that have all gone to buyers of Chinese descent since 2010.
Loss-taking was the norm on the waterfront after the global financial crisis. Four 2009 sales reflected losses between 6% and 25% on their purchase price. 
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Sylvania Waters flip yields 20% price growth under the RBA Gov's near watch

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A working Paddington garage has been sold for $1.2 million. It sold to a neighbour.
The almost 100 year old building was once the fire station, complete with horses and water-laden carts.
Three generations of auto mechanics later took the reins, the Goodyer marketing advised.
The hillside 1a Ormond Street property has the potential to match the adjoining three and four-storey Paddington home.
There is a heritage listed 1917 facade.
It has a 5.8 metre wide by 12.6 metre deep footprint. Owner Les Rechnitzer was selling up after 17 years. The <a href="/news">Paddington</a> house price median sits at around sub-$1.6 million after a slight dip, according to CoreLogic RP Data.
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Paddington garage sells at $1.2 million

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Louis Christopher, the managing director of SQM Research, has upgraded his forecast Sydney house price growth to a probable 11% to 15% for 2015.
There were previously 8% to 12% price growth expectations for Sydney.
But he puts the current surge in some perspective, noting it was not happening elsewhere in the country. 
He maintains that despite all the hype, Sydney prices are still more affordable than at the peak of the last boom.
"Back in December 2003, on our valuation, the market was 55% over fair market value," Christopher told the AFR's Robert Harley.
"Today it is 25% over fair value.
"So it is over valued, but not to the magnitude it was in 2003," he says.
In a position paper entitled, The National Housing Bubble That Isn't, Christopher argued: 
"Let me tell you it’s wrong to take a broad-brush stroke on the housing market when all the evidence suggests there is no national housing bubble currently in existence.
"Sure, you could make the claim that Sydney property is overvalued and in bubble territory.
"Perhaps you could make the claim that parts of Melbourne are also experiencing a strong run up in prices as well.
"However, please try telling residents of Adelaide that they are in the midst of a property bubble when prices have been almost stagnant for the past 12 months. Prices haven't done much better in Brisbane, Hobart or Canberra for that matter. 
"Or the Gold Coast and Sunshine Coast which have recently bottomed out after a housing price crash. "There are also literally hundreds of other smaller townships and residences dotted around the country which have not experienced capital growth in a very long time and are running at discounts to incomes.
"These localities are influenced by local factors.
"No matter how cheap mortgages are, prices in these localities will still rise and fall, largely as a result of the fortunes of their local economies."
He presented a table from the Australian Bureau of Statistics that showed one and 10-year annualised results for most cities which he wrote appeared "rather benign".
<img src="/images/2015/04/02/sqm%20april%202%20one.png" alt="">
He does not rule out that there won’t get a housing bubble in future.
"Our forecasting modelling does suggest that the current low rates and low Australian dollar will be increasingly stimulatory to at least the Melbourne and Brisbane markets on top of the already booming Sydney market," said Christopher.
<img src="/images/2015/04/02/sqm%20april%202%20two.png" alt="">
Source: <a href="https://mail.privatemedia.com.au/owa/14.3.224.2/scripts/premium/redir.aspx?SURL=si9mxRlYo-925eHFwMaV6v6j2mhx4EDoA_-M8dPEXj8EDlvZAzrSCGgAdAB0AHAAOgAvAC8AcwBxAG0AcgBlAHMAZQBhAHIAYwBoAC4AdQBzADUALgBsAGkAcwB0AC0AbQBhAG4AYQBnAGUAMQAuAGMAbwBtAC8AdAByAGEAYwBrAC8AYwBsAGkAYwBrAD8AdQA9ADkAYgBhAGQAYgBkADgANwAwAGEAZABkAGIANABhAGYANwAyADIAMAA2AGMAMgBlAGIAJgBpAGQAPQBkADMAYgBlADEAMgA4ADQAZAA2ACYAZQA9ADAAYQBhAGIAOQA2AGQAYwA1ADQA&amp;URL=http%3a%2f%2fsqmresearch.us5.list-manage1.com%2ftrack%2fclick%3fu%3d9badbd870addb4af72206c2eb%26id%3dd3be1284d6%26e%3d0aab96dc54" target="_blank">2015 Housing Boom and Bust Report</a> The above table covers SQM's forecasts for 2015 made back in September.
"For the record, given the interest rate cut we have had and the fall in the Australian dollar, we now believe our ‘Scenario Two’ forecasts are increasingly in play over the base case ‘Scenario One’ forecasts.
"And on those numbers, Melbourne and Brisbane house prices could take off, particularly later in the year."  "In Sydney itself, I recognise the market is trading in overvalued territory.
"If our forecasts are right for this year, the market will move to a point which would suggest it is 40% overvalued.
"That would be the second highest point we will have reached since the 1980s." <a href="https://mail.privatemedia.com.au/owa/14.3.224.2/scripts/premium/redir.aspx?SURL=h8JfaAFIDGnokiBxMQxjhX-CjhJW9JcIt_cAljfrhO0EDlvZAzrSCGgAdAB0AHAAOgAvAC8AcwBxAG0AcgBlAHMAZQBhAHIAYwBoAC4AdQBzADUALgBsAGkAcwB0AC0AbQBhAG4AYQBnAGUALgBjAG8AbQAvAHQAcgBhAGMAawAvAGMAbABpAGMAawA_AHUAPQA5AGIAYQBkAGIAZAA4ADcAMABhAGQAZABiADQAYQBmADcAMgAyADAANgBjADIAZQBiACYAaQBkAD0AMgA1ADIANABhAGUAYwA1ADgAYwAmAGUAPQAwAGEAYQBiADkANgBkAGMANQA0AA..&amp;URL=http%3a%2f%2fsqmresearch.us5.list-manage.com%2ftrack%2fclick%3fu%3d9badbd870addb4af72206c2eb%26id%3d2524aec58c%26e%3d0aab96dc54" target="_blank"></a><img src="/images/2015/04/02/sqm%20april%202%20three.png" alt="">
Louis Christopher points out that there are some very logical reasons "which are not in any way associated with cheap mortgages".
"Sydney has, for example, strong population growth," he said.
"The city expanded by an estimated 90,000 people last year.
"With this population increase the city has still been underbuilding even while building approvals have picked up.
"NSW has a strong state economy and the future is looking good on infrastructure spending, presuming the 'poles and wires' sell-off goes through state parliament.
"Sydney unemployment is lower than the national average."
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Sydney price growth to be even stronger than forecast: SQM Research

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City of Sydney Council has refused requests for large tracts of industrial land in the city’s inner south to be rezoned for residential development.
The Council’s Central Sydney Planning Committee voted last Thursday (26 March) to preserve most of the area, called the South Sydney Employment Lands, for mainly business uses.
A report put on public exhibition mid-last year discussing proposed changes to the area’s zoning received 59 submissions. Many argued that residential development should be allowed more broadly than proposed on the 265 hectare area, which lies mainly in the suburbs of Rosebery and Alexandria in Sydney’s inner south.
“Most of these submissions come from landowners in the investigation areas … however, there are also some submissions from landowners in the proposed B6 Enterprise Corridor zone who also see a role for residential on their land,” the report that considered the submissions noted.
The latest report’s review and analysis determined that, in general, residential development should be banned on those sites.
There will be a limited number of exceptions in the so-called investigation areas around Botany Road south of Beaconsfield and between McEvoy Street and Bowden Street near Green Square station.
Council accepted the report’s recommendations to allow affordable housing and consider private residential developments on a site-by-site basis in those areas. One condition on any private residential development would be that developers would have to share half of any monetary benefit they received when rezoning increased the value of their land with Council to provide services such as infrastructure and affordable housing.
Residential development will be banned elsewhere in the South Sydney employment lands.
<img src="/images/2015/03/31/zoe-mar-31-one.jpg" alt="">
Source: City of Sydney
Noise and other environmental factors made residential uses incompatible with existing industrial operations in the area, the report said.
It argued that residential developments were more profitable for land owners, which would discourage them from keeping their land for business uses if the zoning changed.
“Where sites are being developed for residential uses there can be significant resistance to providing even a small amount of commercial or retail space in a development. This is because of markedly higher returns that developers receive from developing a residential product as opposed to a commercial product,” the report said.
“Importantly, once this land is developed for residential purposes and subdivided it can almost never be converted for commercial uses in the future. This puts the burden on government to be cautious about allowing residential uses on those lands that may be needed for productive purposes in the future.”
Many former industrial sites around the country are being redeveloped as apartments and private housing, <a href="/expert-insights/building/rezoning-from-industrial-yielding-fresh-residential-infill-housing">where local government policies are encouraging urban renewal</a>.
In neighbouring Green Square, another previously industrial area which has been rezoned to allow residential development, few sites are now wholly dedicated to business.
“In the southern employment lands, permitting residential uses would almost certainly have a similar impact that it has had in the Green Square urban renewal area … Restricting residential development is essential to ensuring employment uses can continue to locate in the area,” the report said.
It noted that the City of Sydney was ahead of its targets for housing development so there was “no clear or urgent argument for why strategically important employment lands should be immediately released in favour of residential development”.
In the greater Sydney area, 8597 new housing lots were released for development in 2014, up from 6690 in 2013, the<a href="https://www.udia.com.au/reports-and-submissions/reports-submissions-2015" target="_blank"> latest UDIA State of the Land report</a> showed.
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zfielding-GvX3Uq9KTa

City of Sydney refuses inner south residential rezoning requests

<html><body><div id="post-body-5899603589334484546" class="post-body entry-content">
<div>It has long been apparent that since 2005 Sydney has not constructing enough dwelling stock to keep pace with the city's <a href="https://petewargent.blogspot.com.au/2015/03/help-commentary-on-demographics-and" target="_blank">burgeoning population growth</a>, which would inevitably lead to a surge in prices.</div>
 <img src="https://1.bp.blogspot.com/-Qyzz354APPQ/VRPWZSpyqyI/AAAAAAAAT-o/RgOP6BmiWes/s640/Dem9.jpg" width="640" height="246"> <div>Only from 2014 has this finally begun to be addressed, by <a href="https://petewargent.blogspot.com.au/2015/01/record-high-for-dwelling-commencements" target="_blank">construction ramping up</a> to a pace somewhat more appropriate for the massive and ongoing surge in headcount.</div>
<div> </div>
<div><img src="https://3.bp.blogspot.com/-z8YzjlNHmbg/VLfEY8cprII/AAAAAAAASd8/ejl6pzwobL0/s640/AA7.jpg" width="640" height="271"></div>
<div> </div>
<div>However, it should be emphasised that <a href="https://petewargent.blogspot.com.au/2015/03/help-commentary-on-demographics-and" target="_blank">data released last week</a> showed the population growth of New South Wales is still tracking at 106,400 per annum, which in absolute terms is the greatest population growth in the country. </div>
<div> </div>
<div>By the time the Q4 2014 data has washed through, it seems likely that Greater Sydney's population increased by close to ~90,000 persons in 2014.
</div>
 Housing finance soaring <div>Contrary to what you might think, <a href="https://petewargent.blogspot.com.au/2015/03/housing-finance-commitments-burst" target="_blank">my analysis</a> of the latest <a href="https://petewargent.blogspot.com.au/2015/03/housing-finance-commitments-burst" target="_blank">Housing Finance</a> data showed that the number of owner occupiers buying into the Sydney market presently remains well below the levels seen in the preceding boom period (and in population-adjusted terms today's figures would be comparatively lower still).</div>
<div> </div>
<img src="https://1.bp.blogspot.com/-9aPwmEZpiQE/VP-UY7zQfPI/AAAAAAAATsI/aTiAlvbEI3k/s640/HF3.jpg" width="640" height="260"> <div>However, what is certainly the case is that since the middle of 2013 the prices that Sydney homebuyers have been prepared to pay have been rising very sharply. 
</div>
<img src="https://3.bp.blogspot.com/-NXRIMoAFWjo/VP-UZ6Sn29I/AAAAAAAATsc/boVxqziPyD8/s640/HF4.jpg" width="640" height="263"> <div>Meanwhile, investors became wise to the supply shortage and began piling into the market in <a href="https://petewargent.blogspot.com.au/2015/03/sydney-record-high-investor-loans" target="_blank">record numbers</a>. The volume of investor loans is now breaking <a href="https://petewargent.blogspot.com.au/2015/03/sydney-record-high-investor-loans" target="_blank">new highs by the month</a>.</div>
 <img src="https://3.bp.blogspot.com/-8ckLfm5geVY/VQJEXp9qZsI/AAAAAAAATvY/9w_Mn0Y1CxA/s640/Loans1.jpg" width="640" height="261"> Stock levels remain muffled <div>Despite rising prices, data compiled by <a href="https://sqmresearch.com.au/" target="_blank">SQM Research</a> has shown that the level of stock on market remains below where it was a year ago, and far beneath the stock on market levels of the only equivalently sized Antipodean city.</div>
 <div class="separator"><a href="https://1.bp.blogspot.com/-7IvMpCuJXio/VRcVTXTmesI/AAAAAAAAUB8/Ek4YKFQzUss/s1600/SQM%2Bsom.jpg"><img src="https://1.bp.blogspot.com/-7IvMpCuJXio/VRcVTXTmesI/AAAAAAAAUB8/Ek4YKFQzUss/s1600/SQM%2Bsom.jpg" width="640" height="260"></a></div>
 <div>We are now at last beginning to see the first impacts of new developments coming online, with a further ~25,000 apartment approvals for Sydney in the past 12 months, and <a href="https://petewargent.blogspot.com.au/2015/01/record-high-for-dwelling-commencements" target="_blank">dwelling completions</a> also just beginning to hit their straps.</div>
 <img src="https://1.bp.blogspot.com/-ZD2OaSeqgHA/VPUtgOVuliI/AAAAAAAATfI/uoYdFeE_voI/s640/approvals1.jpg" width="640" height="270"> At the present time vacancy rates in Sydney remain significantly lower than where they were in 2004 at the end of the preceding boom period. <div class="separator"><a href="https://4.bp.blogspot.com/-QWGY4ErVhvQ/VRcVTWnxWDI/AAAAAAAAUB4/_7ftk2qsucA/s1600/SQM%2Bvr.jpg"><img src="https://4.bp.blogspot.com/-QWGY4ErVhvQ/VRcVTWnxWDI/AAAAAAAAUB4/_7ftk2qsucA/s1600/SQM%2Bvr.jpg" width="640" height="262"></a></div>
<div class="separator"> </div>
However, vacancy rates are finally being nudged higher around a few key construction hubs, which will put upwards pressure on apartment vacancy rates and an equivalent downwards pressure on unit rents. <div> </div>
<div>These include certain suburbs in the inner west (Erskineville), the inner south (Mascot, Green Square), north Sydney (Chatswood, North Sydney), and the surrounds of Olympic Park (Homebush Bay, Rhodes), to name a few.</div>
 <div>For all that, we do need some perspective here. Nationally, building approvals have <a href="https://petewargent.blogspot.com.au/2015/03/building-approvals-smash-record-high" target="_blank">smashed an all-time record high</a> at more than 200,000 on a rolling annual basis. Of these, Greater Sydney has approved 25,440 units and 13,337 houses in the past 12 months. </div>
<div> </div>
<div>That's a jolly good start. Yet even if every single one of those 38,777 approvals makes it through to completion - which they won't - then in aggregate even this will barely make a dent in Sydney's inherent supply shortage.</div>
<div> </div>
<div>Sure, there are doubtless dozens of vacant apartments up for rent way out at Australia Avenue. But what impact will this have on what is happening in the more popular established suburbs? Probably somewhere close to zilch, because of the diminished level of <a href="https://petewargent.blogspot.com.au/2013/11/planning-land-prices-and-house-prices" target="_blank">substitutability</a>. It has been estimated that Sydney needs some 130,000 new dwellings. I'm not so sure about that, but I do know that it will take more than a few strong months of building approvals to redress an imbalance which was nearly a decade in the making.</div>
 Dwelling prices rising <div>Unsurprisingly, CoreLogic-RP Data records Sydney home values as rising strongly. Its "<a href="https://www.corelogic.com.au/research/rpdata-corelogic-home-value-index" target="_blank">Daily Home Value Index</a>" has historically tended to record a mid-year dip which invariably leads to misplaced excitement, so we might expect to see prices on this chart dwindle across the next month or two.</div>
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 <div>This weekend was the busiest auction weekend ever in Sydney with more than 1,100 properties scheduled to go under the hammer ahead of the traditional Easter break.</div>
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<div>All the way back in <a href="https://petewargent.blogspot.com.au/2013/08/how-white-hot-can-red-hot-sydney-market" target="_blank">August 2013</a> Australian Property Monitors (now under the Domain banner) reported that the auction market had shifted seamlessly from "red hot" to "white hot".</div>
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<div>This weekend's preliminary result busted all previous records with a massive 87.5 percent clearance rate reported. Domain circumvented the auction heat/pigment conundrum by simply declaring the market as the hottest it has ever seen. The <a href="https://news.domain.com.au/domain/real-estate-news/sydney-achieves-highest-clearance-on-biggest-auction-day-20150328-1m9vzq" target="_blank">Sydney Morning Herald reported</a>:</div>
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<div>"The Domain Group senior economist, Dr Andrew Wilson, says he's "absolutely astonished". "This could not have been rationally predicted – the highest clearance rate on the biggest auction day ever. This is the hottest of hot auction markets ever."</div>
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<div>
The good Doctor Wilson has <a href="https://doctorandrewwilson.blogspot.com.au/" target="_blank">courted a little controversy</a> with the introduction of his divisive "<a href="https://doctorandrewwilson.blogspot.com.au/" target="_blank">Countdown to Sydney $1,000,000 median house price</a>" counter Pictured below). Based upon current market trends, Dr. Wilson sees this as being 442 days away, though after this weekend's auction frenzy the $1 million median house price may hover into view sooner still.
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