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

Annual Growth

Apartment values across Melbourne rose 0.5 per cent over August, according to the latest data released by property data firm CoreLogic.

The&nbsp;August gains put apartment values up 1.6 per cent over the quarter, after 0.4 per cent growth over July and 0.8 per cent in June.

Over the year to date, values are up 6.6 per cent, with the median now sitting at $615,909. The median apartment price at the start of 2021 was $577,000.

[smartcode_project:default project_id=5328 project_image_fid=163914]

Melbourne house values rose 1.4 per cent over August, marking another month where house performance continues to outstrip apartments, although the gap is starting to narrow given renewed housing affordability constraints.

Throughout the first quarter of the year, capital city house values were rising approximately 1.1 percentage points faster than units each month. By August the average performance gap reduced to 0.7 percentage points.

CoreLogic&#39;s research director Tim Lawless believes the convergence of growth in house values and unit values could be another demonstration of affordability becoming more challenging.

[smartcode_project:default project_id=103179 project_image_fid=167471]

&ldquo;The narrowing gap between house and unit value growth is most noticeable in Australia&rsquo;s most expensive city, Sydney, where the monthly growth rate for houses was 2 percentage points higher than units in March.

&quot;That &lsquo;gap&rsquo; has now reduced to 0.6 percentage points in August.

&quot;Based on median values, Sydney units cost almost $470,000 less than a house. At the same time, the growth gap between houses and units in Melbourne and Brisbane has widened.&rdquo;

Unit rents are starting to rise in Sydney and Melbourne, which is a good metric for investors to follow. Australia&#39;s two biggest capitals were the hardest hit by the strict border closures and lack of international migration.

[smartcode_project:default project_id=100675 project_image_fid=170523]

Nationally, rents have lifted by 8.2% over the 12 months ending August, the largest rise in rents since 2008.

&ldquo;The weaker trend in unit rents across Australia&rsquo;s two largest cities is likely a reflection of their greater exposure to temporary overseas migrants as a source of rental tenancy, especially foreign students who would normally underpin inner city high rise rental demand, Lawless says.

&quot;The sharp drop in demand due to closed borders has been exacerbated by high supply levels as both cities come out of an unprecedented surge in inner city apartment construction,&rdquo; Lawless added.

Sydney unit rents have consistently risen each month during 2021, while in Melbourne, unit rents have been rising since June.

Unit rents are starting to rise in Sydney and Melbourne, which is a good metric for investors to follow

What happened to Melbourne apartment values over August?

Westpac have revised upwards its outlook for Australian dwelling prices.

It had predicted, earlier this year, a 20% increase over 2021 and 2022.&nbsp;

But a stronger than expected surge over the first half of 2021 is now expected to see prices up 18% this year with a further 5% coming next year.

While the duo, Bill Evans, Westpac&#39;s chief economist and Matthew Hassan, its senior economist, see lockdowns as likely to cause some loss of momentum in the third quarter, particularly in the Sydney market, they see a swift rebound with price growth lifting again into year end.

Price growth is expected to slow to 5% in 2022 with most of the increase occurring in the first half.&nbsp;

Prices are then expected to decline 5% in 2023 as stretched affordability in most markets combines with the RBA&rsquo;s first rate hike cycle since 2009.

<a href="/developments/sydney-nsw?source_news_article_id=107113&amp;ref=news_body_link"><img alt="" height="800" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/template_photoshop_sydneycbd_3.png" width="1200" /></a>

&quot;The upswing that emerged at the start of this year has continued to run ahead of expectations with markets carrying strong momentum into the second half,&quot; they noted.

Prices nationally rose 12.2% over the first six months, an extraordinary 25.6% pace in annualised terms.

The update noted deteriorating affordability is already weighing heavily on buyer sentiment with the &lsquo;time to buy a dwelling&rsquo; index in the Westpac Melbourne Institute Consumer Sentiment Survey is down 25% from its peak last November.&nbsp;

&quot;There are also tentative signs that finance to owner occupiers has peaked.&quot;

They see macro&ndash;prudential tightening as highly likely.

<a href="/developments/melbourne-vic?source_news_article_id=107113&amp;ref=news_body_link"><img alt="" height="800" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/template_photoshop_melbournecbd_10.jpg" width="1200" /></a>

&quot;The timing is expected to be delayed until around March&ndash;June 2022.&nbsp;

&quot;Measures are expected to be successful and to weigh more heavily on markets where affordability is stretched.&nbsp;

&quot;Price growth is expected to stall in Sydney and Melbourne through the second half of 2022 but maintain some positive momentum in most other markets where affordability is still attractive.&quot;

The combination of rising rates; stretched affordability; and macro&ndash;prudential policies is likely to see prices easing off their highs by an average of around 5% in 2023 with all markets expected to see modest declines, Westpac forecast.

Bill Evans, Westpac's chief economist and Matthew Hassan, its senior economist now see a total gain over the two years of 23% with 18% coming in 2021

jchancellor

Westpac forecast 18% dwelling price rise in 2021 and 5% next year

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Expert Observer

There were two pieces of positive news in the past week which demonstrate the value to the nation and its citizens of growth in the property market.

One came from research from the Real Estate Institute of Australia which shows that the median house price for the Australian capital cities has risen from $160,000 in 1996 to $825,000 today.

The Real Estate Institute of Australia says the median house price has risen more than 400% in the past 25 years. 

It sounds extraordinary – but, to put it in perspective, it equates to an average annual increase of 6.6% per year. Healthy, and certainly ahead of inflation and wages growth, but not monumental.

[smartcode_project:default project_id=89516]

This is despite fairly muted growth since 2016. The data shows that over the past five years, the median house price in the capital cities grew 25%, from $683,000 to $825,000, while “other dwellings” rose by 10% to $600,000.

The other item of note came from the Australian Bureau of Statistics. It says that a booming property market helped add half a trillion dollars to Australia’s household wealth in the December Quarter, taking the total to just over $12 trillion.

The nation recorded its biggest gain in quarterly wealth since 2009 despite COVID-19 concerns and employment fears over the end to JobKeeper.

According to the ABS, total household wealth increased 4.3%, or $502 billion, in the last three months of 2020, marking the highest quarterly growth rate since the December Quarter of 2009.

[smartcode_project:default project_id=27427]

The property market was the key driver. During the December Quarter, residential assets grew by $246 billion, or 3.5%, the biggest rise since the December Quarter of 2016. That came on top of a $200 billion rise in house values for the September Quarter.

ABS head of finance and wealth Katherine Keenan says: “The growth in residential assets was seen across both owner-occupier and investor housing in the December Quarter. Owner-occupier housing loans grew 1.9%, the strongest growth in four years, while investor housing loans grew 0.4%, which was the first positive growth in the past two years.”

The housing debt to income ratio decreased from 139.2 to 139 over the quarter, as growth in income exceeded growth in housing debt. The ratio has fallen for the past four quarters.

This is mostly good news for nation. I’m telling you this because you won’t hear it from mainstream media. What you will hear is that it’s a crisis. Indeed, several crises. An affordability crisis, a debt crisis and a social crisis. 

[smartcode_project:default project_id=25382]

But I see mostly positives. The key factors here are that this gives confidence to most Australians, encouraging them to spend, which benefits the economy and creates jobs, and it helps people establish the financial base to fund their retirement.

Successive federal governments for the past 20 years or so have encouraged Australians to invest to provide for their retirement years, placing less reliance on the public purse. 

For many Australians, real estate is the option of choice because they feel they understand it and they see it as a safe and solid option for growth.

The current national property boom is a big step down that path.

Terry Ryder is the founder of hotspotting.com.au

ryder@hotspotting.com.au

twitter.com/hotspotting
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The Real Estate Institute of Australia says the median house price has risen more than 400% in the past 25 years

terryryder

Why the growth in the property market is important to Australia: Hotspotting's Terry Ryder

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After a stronger than expected housing turnaround, NAB are now forecasting dwelling values to rise by an average of eight per cent nationally across 2021, with a view that 2022 will also see strong gains.

The revision comes after the turnaround in the housing markets, pared with low interest rates, the government's HomeBuilder grants and stamp duty concessions on newly built properties.

"The housing market has fared significantly better than expected over the past year, despite significant headwinds from slower population growth and a weaker labour market," the NAB report read.

"Lower interest rates and household income support from the Federal Government have been a key support amidst the challenges of the pandemic.

"While the impact of lower rates is broad-based, there are some key dynamics underlying our forecast."

[smartcode_project:default project_id=90553]

NAB expect the smaller capitals to continue to outpace Sydney and Melbourne, but the two biggest capital city markets have closed the gap from NAB's previous forecasts.

In the Q2 update in mid-2019, NAB were forecasting a -4.3 per cent average decline across the country, with Melbourne (-7.3 per cent) and Sydney (-4.7 per cent), driving the losses.

In Q3, following a positive response to COVID-19, NAB flipped their forecast, predicting five per cent gains nationally over 2021 and Melbourne (+3.6 per cent) and Sydney (+4.4 per cent), going full circle.

Now NAB expect nearly eight per cent gains average, with Sydney and Melbourne not far behind other capital city markets.

<img alt="" height="791" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/nab_q4_forecast.jpg" width="1200">

They expect the best performer to be Brisbane, where there are 10.1 per cent gains forecast for 2021 and 6.3 per cent for 2022.

Adelaide and Hobart are predicted to see the strongest gains over 2022, up 7.4 per cent after 8.9 per cent and 9.7 per cent gains over 2021.

Sentiment has been on the turn for a number of months and the NAB Residential Property Index ended 2020 at a survey high +45 points. Confidence levels returned to levels last seen before COVID in late-2019 as expectations lifted sharply for house price growth across the country.

<img alt="" height="905" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/nab_sentiment_q4.jpg" width="1200">

NAB economist Alan Astor says first home buyer demand remains very strong in new and established housing markets and is likely being supported by historically low interest rates and government support such as the First Home Loan Deposit Scheme and HomeBuilder.

"The brief pullback in house prices earlier in the year may have also helped sentiment among these buyers."
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The revision comes after a stronger than expected housing market, pared with the low interest rates, the government's HomeBuilder grants and stamp duty concessions on new properties.



NAB raises dwelling price forecast for 2021 and 2022

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Capital city residential property prices rose by 2.2 percent in the March 2017 quarter, to be 10.2 percent higher over the year.
Apartment price growth has been strong in Sydney in recent years, but overall established house prices have comfortably outperformed through this cycle to date, partly reflecting an apartment overbuild in some regions. 
<a href="https://www.propertyobserver.com.au/images/2017/06/22/A4.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/06/22/A4.jpg" alt="">
The total value of Australia's dwelling stock has now increased by 50 per cent since December 2011, rising by $2.2 trillion to a total of a shade over $6.6 trillion. 
<a href="https://www.propertyobserver.com.au/images/2017/06/22/A4.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/06/22/A4.jpg" alt="">  
Sydney leads, for now
Over the year to March the strongest price growth was recorded by Sydney (14.4 per cent) and Melbourne (13.4 per cent), though it seems highly likely that Sydney's annual growth rate is now firmly on a downwards trajectory from here. 
At the other end of the scale more annual price declines were suffered by Perth (-3.5 per cent) and Darwin (-5.9 per cent). 
The tight Hobart market recorded the strongest quarterly gain (3.4 per cent) to be up by a boisterous 11.3 per cent over the past year. 
Indexing the numbers back to 2003 shows how long run dwelling price performance between the capital cities is converging, with the resources capitals coming back down to earth following the peak of the mining boom.
<a href="https://www.propertyobserver.com.au/images/2017/06/22/A5.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/06/22/A5.jpg" alt="">
At the state level New South Wales has seen a huge surge in its mean dwelling price which has increased from $535,300 at the end of 2011 to $886,800, for an absolute increase of $351,500 or 66 per cent.  
Reflecting the end of the resources construction boom, over the same timeframe mean prices were up by only 3 per cent in Western Australia and declined by 2 per cent in the Northern Territory. 
<a href="https://www.propertyobserver.com.au/images/2017/06/22/A6.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/06/22/A6.jpg" alt="">
Nationally the mean dwelling price has increased by $182,800 or 38 per cent since the end of 2011. 
Of the $2.2 trillion increase in the total value of the dwelling stock since 2011, the three most populous states of New South Wales ($1.2 trillion), Victoria ($0.6 trillion), and Queensland ($206 billion) together accounted for 91.5 per cent of the increase.
<a href="https://www.propertyobserver.com.au/images/2017/06/22/A3.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/06/22/A3.jpg" alt="">
Supply response picks up
Finally, a quick look at the net increase in the dwelling stock, which has picked up the pace in swelling by 194,000 dwellings over the year to March 2017. 
The March stock figures are preliminary and subject to revision - the increase looks decidedly low in New South Wales, for example - but the annual rate of increase has clearly picked up the pace since 2012.
It's interesting to note that while Victoria has increased the size of its dwelling stock by 10.3 per cent over the past half decade - much faster than the 6.7 per cent increase in New South Wales - the strong annual increase of 2.2 per cent is still only just ahead of the state's rampant rate of population growth.
The wrap 
There were more strong gains in dwelling prices in Sydney (3 per cent) and Melbourne (3.1 per cent) across the first quarter of the calendar year.
Meanwhile Adelaide prices rose by 1.5 per cent to be 5 per cent higher over the year, and Canberra snuck in under the radar to record annual growth of 8.9 per cent. 
The above having been said, the double digit annual growth rate is likely to represent the peak for this cycle, with a raft of macroprudential measures appearing well set to douse investor activity. 
 
PETE WARGENT is the co-founder of <a href="https://allenwargent.com/">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/">blogger</a>.
His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx">Four Green Houses and a Red Hotel</a>.
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pwargent-M4siyDbqQY

Capital city prices rise 10 percent

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A record number of sales under the hammer has delivered Melbourne’s strongest property market in seven years, despite modest growth in median prices in the last three months of 2017.  
New REIV data shows house prices in metropolitan Melbourne rose for the seventh consecutive quarter in December, up 1.1 per cent to a median of $821,000. This increase boosted the city’s annual price growth to 13.2 per cent for 2017 – the highest since 2010.  
REIV President Richard Simpson said price growth in 2017 was undoubtedly bolstered by a buoyant auction market with more than 25 auction records broken.
“While price growth slowed in the December quarter due to increased supply and reduced investor activity, 2017 was a record-breaking year for Melbourne’s property market,” he said. 
“High levels of interstate and overseas migration, new Government initiatives for first homebuyers and record low interest rates have contributed to significant double-digit price growth last year.” 
TOP GROWTH SUBURBS – DECEMBER QUARTER
<table class="t1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td class="td1" valign="bottom">
 
</td>
<td class="td2" valign="middle">
Suburb
</td>
<td class="td3" valign="middle">
Dec-17 Median
</td>
<td class="td4" valign="middle">
Sep-17 Median
</td>
<td class="td5" valign="middle">
Quarterly Change
</td>
</tr>
<tr>
<td class="td6" valign="bottom">
1
</td>
<td class="td7" valign="bottom">
TOORAK
</td>
<td class="td8" valign="middle">
$4,600,000
</td>
<td class="td9" valign="middle">
$3,210,000
</td>
<td class="td10" valign="middle">
43.3%
</td>
</tr>
<tr>
<td class="td11" valign="bottom">
2
</td>
<td class="td12" valign="bottom">
SOUTH YARRA
</td>
<td class="td13" valign="middle">
$2,280,500
</td>
<td class="td14" valign="middle">
$1,799,500
</td>
<td class="td15" valign="middle">
26.7%
</td>
</tr>
<tr>
<td class="td11" valign="bottom">
3
</td>
<td class="td12" valign="bottom">
MENTONE
</td>
<td class="td13" valign="middle">
$1,200,000
</td>
<td class="td14" valign="middle">
$1,002,500
</td>
<td class="td15" valign="middle">
19.7%
</td>
</tr>
<tr>
<td class="td6" valign="bottom">
4
</td>
<td class="td7" valign="bottom">
SURREY HILLS
</td>
<td class="td8" valign="middle">
$2,285,000
</td>
<td class="td9" valign="middle">
$1,930,000
</td>
<td class="td10" valign="middle">
18.4%
</td>
</tr>
<tr>
<td class="td11" valign="bottom">
5
</td>
<td class="td12" valign="bottom">
ESSENDON
</td>
<td class="td13" valign="middle">
$1,715,000
</td>
<td class="td14" valign="middle">
$1,450,000
</td>
<td class="td15" valign="middle">
18.3%
</td>
</tr>
<tr>
<td class="td11" valign="bottom">
6
</td>
<td class="td12" valign="bottom">
HAWTHORN
</td>
<td class="td13" valign="middle">
$2,718,000
</td>
<td class="td14" valign="middle">
$2,300,000
</td>
<td class="td15" valign="middle">
18.2%
</td>
</tr>
<tr>
<td class="td6" valign="bottom">
7
</td>
<td class="td7" valign="bottom">
MALVERN
</td>
<td class="td8" valign="middle">
$2,370,000
</td>
<td class="td9" valign="middle">
$2,014,000
</td>
<td class="td10" valign="middle">
17.7%
</td>
</tr>
<tr>
<td class="td11" valign="bottom">
8
</td>
<td class="td12" valign="bottom">
KEYSBOROUGH
</td>
<td class="td13" valign="middle">
$885,000
</td>
<td class="td14" valign="middle">
$760,500
</td>
<td class="td15" valign="middle">
16.4%
</td>
</tr>
<tr>
<td class="td11" valign="bottom">
9
</td>
<td class="td12" valign="bottom">
CANTERBURY
</td>
<td class="td13" valign="middle">
$3,300,000
</td>
<td class="td14" valign="middle">
$2,875,000
</td>
<td class="td15" valign="middle">
14.8%
</td>
</tr>
<tr>
<td class="td6" valign="bottom">
10
</td>
<td class="td7" valign="bottom">
 ROSEBUD
</td>
<td class="td8" valign="middle">
$624,000
</td>
<td class="td9" valign="middle">
$552,000
</td>
<td class="td10" valign="middle">
13.0%
</td>
</tr>
</tbody></table>
Top performing suburbs in the December quarter were almost exclusively located at the premium end of the market and included Toorak, South Yarra, Surrey Hills and Canterbury.  
“Demand for houses in the city’s most exclusive suburbs continues to outstrip supply, with increased competition delivering exceptional results for vendors in these areas.”    
The affordable end of the market also performed well in December with the median house price in the outer suburbs increasing 2.4 per cent over the quarter to $666,500.
“Increased participation from owner-occupiers is driving values in the city’s outer suburbs, with these areas offering buyers the ideal combination of affordability and space.”
“Strong price growth over the past year has meant that houses within 20km of the CBD are almost out of reach for many first homebuyers. These buyers are now looking for new entry points to the market, especially in established suburbs with infrastructure, amenities and services.”
Melbourne’s apartment market rebounded in December with the citywide median price increasing 1.2 per cent to $594,500.
Simpson added that regional Victoria had also experienced its strongest property market in recent years with house prices up 2.6 per cent in the December quarter to a record high $396,500 – an annual increase of 10 per cent on the same period last year. 
“Regional cities and towns within commuting distance of the CBD have certainly benefitted from strong price growth in Melbourne with a number of these areas now recording median house prices higher than those in the outer ring.” 
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jrobinson-rf4aSBido9

Melbourne market records highest annual growth in seven years: REIV

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Most Australian property markets saw modest growth in 2015, according to Residex.
Sydney was again the exception – given houses and units achieved annual growth of 18.36% and 13.48% respectively.
Melbourne houses also recorded strong annual growth of 13%.
Perth houses saw an unexpected surge of 2.30% in the month of December, while Adelaide, Hobart and ACT houses showed steady capital growth over the last 12 months.
"The end of 2015 marked the end of the Sydney housing boom," Residex advised.
The upswing in the current cycle lasted almost two years and, in real dollar terms, the median house increased by approximately $375,000.
Historically, Sydney has been the leader of growth with the Melbourne and Brisbane markets following.
Given this, the Melbourne house market could peak sometime in the first quarter of 2016 while Brisbane could follow later in the year. However, global economic trends and a national crackdown on speculative buying may hamper growth for these other east coast cities.
Table 1 shows the capital growth, rent and sales summary for December 2015.
Table 1: December 2015 Summary
<a href="/images/2016/02/02/Table_1_Capital_City_Summary.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/02/02/Table_1_Capital_City_Summary.jpg" alt="">
Source: Residex
Graph 1 shows the monthly capital growth trend of Sydney and Melbourne. The graph depicts Melbourne’s peak growth in houses following Sydney.
Graph 1: Monthly Capital Growth Trend: Sydney and Melbourne  
<a href="/images/2016/02/02/Graph_1_Monthly_Growth_Sydney_Melbourne.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/02/02/Graph_1_Monthly_Growth_Sydney_Melbourne.jpg" alt="">
Source: Residex
Residex suggested it was difficult to say what exacerbated the last upswing in Sydney and whether similar factors will impact other major dwelling markets.
"Many have speculated and reported anecdotes of Chinese foreign investment pushing up real estate values," Eliza Owen, the market analyst for Residex/Onthehouse.com.au said.
"There is currently no reliable dataset in existence that documents foreign investment in Australian residential real estate, so it is not rigorously sound to say that this contributed to the enormous value increases.
"In any case, the People’s Bank of China has placed restrictions upon citizens taking capital out of China to encourage investment within their own country (citizens are permitted to take just US$50,000 out of the country each year. This action could limit the growth experienced in other Australian cities.
"It is also not necessarily true to say that speculative domestic investment bid up the market.
"However, there is some evidence suggesting that investors became more active than owner occupiers in the latest housing boom."
The ABS collects data on the amount of money lent for the purposes of owner occupation versus investment. In recorded history, 2014 was the first time investor loans overtook owner occupier loans. Graph 2 presents this dataset over the last 5 years. It is worth noting that the figures in Graph 2 are for Australia wide lending, so the phenomena of investors overtaking owner occupiers may not be specific to the Sydney market.
Graph 2: Significant Lender’s Finance Commitments to Investors vs. Owner Occupiers
<a href="/images/2016/02/02/Graph_2_Investors_v_Owner_Occupiers.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/02/02/Graph_2_Investors_v_Owner_Occupiers.jpg" alt="">
Source: ABS Catalogue Number 5609.0 – Housing Finance, Australia Note: Excluded refinancing for owner occupiers
 
The graph suggests that either investors were paying more money for dwellings or investors were buying a higher volume of dwellings at this time.
Theoretically, investors who owned property in Sydney could have continued to bid up prices in the market while interest rates were low. The ability to borrow equity against property facilitates this – the higher property prices go, the more equity investors have to purchase new dwellings.
In July 2015, the Australian Prudential Regulation Authority (APRA) announced regulations<a href="https://blog.residex.com.au/2016/01/29/january-market-update/?utm_source=membersNewsletter&amp;utm_medium=email&amp;utm_campaign=Cid=ResiJanNews16&amp;mc_cid=9124f9ec50&amp;mc_eid=1c64ff30b3#footnote-3">[3]</a> that would require lenders to hold more capital against home loans. By the beginning of July 2015, a downswing in the Sydney market had begun. Sydney house values fell 0.14% in the month of December, the first fall in the aggregate market since January 2014.
One of the criticisms of APRA’s decision was that it was not specific to the rapidly growing markets of Sydney and Melbourne.
However, of the 514,066 sales Residex recorded across Australia for 2015, approximately 20% were in the Sydney metropolitan region and a further 20% were concentrated in the Melbourne metropolitan.
"If anything, high home loan rates may have caused investors to spread their wealth among more affordable cities across the country."
Property developers Stockland and Mirvac have reported that there are Sydney buyers interested in Brisbane apartments.
Private developers have also recorded Sydney buyers making up as much as 40% of investment in new developments.
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jchancellor-FAypfDUnLy

Brisbane property set for price peak in late 2016: Residex

<html><body>
The headline growth figures certainly look a bit on the soft side. But the breakdown of the growth components provides a much more interesting picture. 
Government consumption provided the biggest contribution to growth while household consumption held up relatively well. The biggest drag was net exports which detracted 0.6 percentage points from growth. In addition the drawdown in inventories also crimped growth by 0.2 percentage points. Overall, not an “ideal” mix of growth drivers, but close enough for this point in the cycle. 
The good news is that productivity is still rising while wage costs are falling and price pressures are restrained.
The economic growth figures are largely important as an historical record. But the data can’t tell us much about the here and now. And certainly the figures have limited use in telling us where the economy is going. But for the Reserve Bank the data serves as a base for its forecasts. It’s a case of ticking the figures off to ensure that there are no surprises. 
<a href="/images/2015/09/02/Screen-Shot-2015-09-02-at-2.27.22-PM.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2015/09/02/Screen-Shot-2015-09-02-at-2.27.22-PM.jpg" alt="">
<div class="page" title="Page 2">
<div class="layoutArea">
<div class="column">Overall the data confirms that growth over the past year has been below trend but “ok” for an economy that is going through a generational transition. Despite all the doom and gloom about the winding back of mining investment, fiscal contraction and horror stories about the collapse of the manufacturing sector it is pretty clear that the economy is in reasonable shape – certainly in better shape than most other so-called “advanced” economies.</div>
<div class="column">
 While media commentary is likely to focus on the fact that growth is a touch on the soft side the key point is that Australia has completed 24 consecutive years of growth. It is an achievement to be celebrated. And interestingly the drawdown in inventories in the quarter may be as a result of the lift in domestic demand, and it does mean that businesses will be re-stocking shelves in coming quarters – supporting the overall growth figures.
</div>
<div class="column">
 Looking forward growth will continue to remain mixed over the next few months. The transition from mining to housing-led investment continues to be the dominant driver of activity. Although somewhat encouragingly the ongoing lift in consumer and business confidence is now translating through to a lift in risk appetite and investment plans.
</div>
<div class="column">
 CommSec tips the economy to grow by 2.75-3.00% over the coming year. CommSec believes that given the ongoing below trend growth outcomes, the Reserve Bank is unlikely to lift interest rates over the next year. 
</div>
</div>
</div>
<a href="/images/2015/09/02/Screen%20Shot%202015-09-02%20at%202.35.11%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/09/02/Screen%20Shot%202015-09-02%20at%202.35.11%20PM.png" alt="">
<div class="page" title="Page 2">
<div class="layoutArea">
<div class="column">What do the figures show?</div>
<div class="column">
 National Accounts:
</div>
<div class="column">
 Economic Growth: The economy grew by 0.2 per cent in the June quarter after a 0.9 per cent increase in the March quarter.
</div>
<div class="column"> </div>
<div class="column">
The economy has grown 2.0 per cent over the past year, below the decade-average growth rate of 2.8 per cent and below the 15-year average of 2.9 per cent. In 2014/15, the economy grew by 2.4 per cent.
</div>
<div class="column">
 The non-farm economy grew by 0.2 per cent in the June quarter after a 0.9 per cent lift in the March quarter. Annual growth stands at 1.9 per cent.
</div>
<div class="column"> </div>
<div class="column">
Farm GDP fell by 2.6 per cent in the June quarter after rising by 0.3 per cent in the March quarter. Farm GDP rose 4.1 per cent over the year.
</div>
<div class="column"> </div>
<div class="column">
At current prices, GDP rose by 0.3 per cent in the quarter to be up by 1.6 per cent over the year. The annual growth rate is well below the decade average of 6.2 per cent. Over the year to June 2015, the Australian economy was valued at $1,612 billion.
</div>
<div class="column"> </div>
<div class="column">
Growth drivers: The biggest contributions to growth came from government consumption (+0.4 percentage points), followed by household consumption expenditure (+0.3pp), and public investment (+0.2pp). The biggest drag on growth was net exports (exports less imports) (-0.6 percentage points), inventories (-0.2pp) and dwelling investment (-0.1pp).
</div>
<div class="column">
 Inflation: In terms of domestic price pressures, the household consumption implicit price deflator rose 0.7 per cent in the June quarter after a 0.3 per cent lift in the March quarter. Annual growth stands at just 1.4 per cent. Real non-farm unit labour costs rose by 1.1 per cent in the June quarter after falling by 0.6 per cent in the March quarter. Real non-farm unit labour costs rose by just 0.9 per cent over the year. 
</div>
</div>
</div>
<a href="/images/2015/09/02/Screen%20Shot%202015-09-02%20at%202.54.08%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/09/02/Screen%20Shot%202015-09-02%20at%202.54.08%20PM.png" alt="" width="740" height="261">
 
<div class="page" title="Page 3">
<div class="layoutArea">
<div class="column">
Productivity: Gross value added per hours worked in the market sector rose 0.4 per cent in the June quarter after 0.3 per cent growth in the March quarter. Annual growth stands at 0.8 per cent. Hours worked in the market sector were up 0.3 per cent in the quarter to be up 1.7 per cent for the year.
</div>
<div class="column"> </div>
<div class="column">
States &amp; Territories: The best description of the performance of States and Territory economies is state final demand plus net exports. The ACT had the fastest annual growth rate in the June quarter (up 5.4 per cent), followed by Victoria (up 2.9 per cent), NSW (up 2.4 per cent), South Australia (up 0.7 per cent) and Tasmania 
</div>
<div class="column">(up 0.5 per cent). The Northern Territory contracted by 11.4 per cent followed by Western Australia (down 2.4 per cent) and Queensland (down 0.8 per cent).</div>
<div class="column"> </div>
<div class="column">
Consumer spending lifts. Household spending rose by 0.5 per cent in the June quarter to be up 2.5 per cent for the year. Only five of the 17 sectors recorded weaker spending in the quarter. Spending on Health rose by 2.5 per cent followed by Communications (up 1.9 per cent). But spending fell in Cigarettes &amp; tobacco and Alcoholic beverages (both down 2.2 per cent) and Electricity, gas and fuel (down by 2.0 per cent).
</div>
<div class="column">
 Industry sectors: Thirteen of the 19 industry sectors expanded in the June quarter. Rental, hiring and real estate services grew by 2.7 per cent, contributing 0.1 percentage points (pp) to growth in the quarter. Five other sectors contributed 0.1 percentage points to growth. The weakest sectors were Mining (down 3.0 per cent and removing 0.3pp from growth) and Agriculture, forestry and fishing (down 2.3 per cent).
</div>
<div class="column">
 Other points:
</div>
<div class="column"> </div>
<div class="column">
Profit share falls. In seasonally adjusted terms, the ratio of profits to total factor income fell from 26.3 to 25.4 per cent in the June quarter. The wages share rose from 53.0 per cent to 53.4 per cent.
</div>
<div class="column">
 Household savings ratio rose. The household saving ratio lifted from 8.3 per cent to 8.8 per cent in seasonally adjusted terms in the June quarter. In trend terms household saving held steady at 8.6 per cent in the quarter.
</div>
<div class="column">
 Imports ease as a share of spending. The imports to sales ratio fell from 0.394 in the March quarter to 0.392 in the June quarter.
</div>
<div class="column"> </div>
<div class="column">The inventory to sales ratio rose from 0.627 in the March quarter to 0.643 in the June quarter. </div>
<div class="column"> </div>
<div class="column"><a href="/images/2015/09/02/Screen%20Shot%202015-09-02%20at%202.57.16%20PM.png" target="_blank">Click to enlarge</a></div>
<div class="column"><img src="/images/2015/09/02/Screen%20Shot%202015-09-02%20at%202.57.16%20PM.png" alt=""></div>
<div class="column"> </div>
<div class="column">
<div class="page" title="Page 3">
<div class="layoutArea">
<div class="column">What is the importance of the economic data?</div>
<div class="column"> </div>
<div class="column">
The quarterly National Income, Expenditure and Product release (national accounts) from the Bureau of Statistics is the most complete assessment of Australia’s economic performance. Detailed estimates are provided on incomes (wages, profits), spending (such as household, dwelling investment and trade (exports and imports) and production (comparing industry performance). Other data includes household saving and the economic performance of States and Territories.
</div>
<div class="column"> </div>
<div class="column">The main use of the national accounts figures is as a historical record of economic performance. The information has little forward-looking value for currency, interest rate or share markets.</div>
<div class="column">
 What are the implications for interest rates and investors?
</div>
<div class="column">
 The national accounts data is backward looking. But the data is taken into account by the Reserve Bank, serving as a base for forecasts. The Reserve Bank uses six-month annualised growth figures to ascertain how the economy is travelling. And in that context growth looks more robust annualising at around 2.2 per cent.
</div>
<div class="column">
 Importantly business confidence and conditions remain healthy and should support a lift in activity over the latter part of 2015.
</div>
<div class="column">
 At present there is no rush to lift or cut interest rates although the risks lie with another rate cut given the patchiness in the economy. CommSec believes interest rates will remain unchanged over the rest of 2015. 
</div>
<div class="column"> </div>
<div class="column"><a href="/images/2015/09/02/Screen%20Shot%202015-09-02%20at%202.59.28%20PM.png" target="_blank">Click to enlarge</a></div>
<div class="column"><img src="/images/2015/09/02/Screen%20Shot%202015-09-02%20at%202.59.28%20PM.png" alt=""></div>
<div class="column">
<div class="column"> </div>
<div class="column">Savanth Sebastian is an economist for CommSec. You can follow him on Twitter <a href="https://twitter.com/commsec" target="_blank">here</a>.</div>
</div>
</div>
</div>
</div>
</div>
</div>
</body></html>

Australia's 24th consecutive year of growth: CommSec's Savanth Sebastian

<html><body>
Sydney's annual growth rate sits at 18.4% for the year to July, the highest on record since 2002, according to CoreLogic RP Data's head of research Tim Lawless.
In the Sydney Housing Market video for August he said one factor contributing to the higher value is a short supply of homes for sale, adding currently listings in Sydney are down on average.
"In Sydney we are currently tracking approximately 18,150 advertised property listings, which is historically well below average, he said. 
"To provide some context, in late 2011 when market conditions were relatively soft there were slightly more than 40,000 homes available for sale across the Sydney market."   
Click <a href="https://www.propertyobserver.com.au/https://vimeo.com/135932427" target="_blank">here</a> to see the video.
</body></html>

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