A wave of investment, renewal and precinct growth continues to shape the northern edge of Macquarie Park, where daily life is supported by a rare combination of university activity, corporate employment, major retail, and expansive green corridors. It’s this convergence of amenity and connectivity underpins the setting for <a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a>’s <a href="https://www.apartments.com.au/new-apartments/la-vera-94-talavera-road-macquarie-park-nsw-2113">La Vera</a>, which has now topped out and is tracking toward completion in mid-2026.

Within this pocket of the precinct, residents move easily between the area’s key anchors. Macquarie Centre, home to more than 360 retailers, fresh food offerings, dining and entertainment, sits at the heart of local convenience and functions as a major transport interchange. The Metro, T1 rail line and extensive bus network place much of Sydney within quick reach, while surrounding arterial links support direct access to neighbouring districts.

[smartcode_project:default project_id=134951 project_image_fid=5829]

Green space remains a defining feature of the immediate environment. Lane Cove National Park stretches along the northern boundary of the precinct, offering bushland trails, cycling routes and quiet riverfront pockets. Shrimptons Creek and the campus grounds of Macquarie University extend these recreational networks, softening the urban setting and creating a daily connection to nature that informs the project’s architectural response.

<a href="https://www.apartments.com.au/architects/cox-architecture">Cox Architecture</a> have shaped La Vera around these contrasts. The building’s northern elevation adopts an organic, curvilinear form that mirrors the natural topography of the national park. Three sculpted forms soften the tower’s profile and encourage a stronger transition between indoor living areas, balconies and the broader landscape.

[smartcode_project:default project_id=134951 project_image_fid=223737]

Cox Director Felipe Miranda says the building’s outlook played a central role in the design process.

“The vision for the project was to conceive a building that adopted an organic and curvilinear form to the northern portion that faces the Lane Cove National Park… The residents that reside in the northern portion of the building benefit by having beautifully crafted curved balconies that speak to the natural context and heighten the relationship of their internal living spaces to the external balconies,” Felipe Miranda of Cox Architecture said.

Toward the city-facing side, the design shifts to a more urban expression. A gridded facade and extensive glazing capture CBD views, creating a dual strategy that blends ecological outlooks with metropolitan orientation.

[smartcode_project:default project_id=134951 project_image_fid=5827]

La Vera delivers 169 residences across one- to four-bedroom layouts, reflecting the needs of young families, downsizers, first-home buyers and investors seeking long-term certainty within a high-amenity location. From the project, residents can walk to Macquarie University, Macquarie Hospital and nearby corporate offices, reach national park trails within minutes, and enjoy retail and dining without relying on a car.

The project is delivered by Urban Property Group, a 4.5-star iCIRT-rated developer-builder with more than three decades of experience. The company has become a leader in adopting 10-Year Latent Defects Insurance (LDI), first introduced on its Parq Bexley development and now embedded into its pipeline.

[smartcode_project:default project_id=134951 project_image_fid=223727]

La Vera is the first development in Macquarie Park approved to offer this 10-year LDI policy, adding another layer of protection for purchasers and reinforcing the transparency of the construction process.

Urban Property Group CEO Patrick Elias says this assurance has become increasingly important for buyers navigating the off-the-plan market.

“Consumers are a lot more weary and a lot more concerned in buying off the plan than they ever have been… Having LDI is a tool to portray the confidence that we have in our product, and a confidence we want buyers to share,” Urban Property Group CEO Patrick Elias said.

Urban Property Group's in-house construction team is forecasting a mid-2026 completion, with <a href="https://www.apartments.com.au/project-marketer/home789">HOME789</a> appointed as the project marketer.

[smartcode_project_cta:default project_id=134951]

Staff Writer

La Vera delivers a nature-connected address within Macquarie Park’s core

<a href="https://www.apartments.com.au/buildings/aura-by-aqualand-north-sydney-168-walker-street-north-sydney-nsw-2060">AURA</a>&nbsp;doesn’t just rise over North Sydney, it redefines it. Now in its final release, <a href="https://www.apartments.com.au/developers/aqualand-australia">Aqualand</a>’s $1 billion architectural statement is not just complete, but already reshaping the way people live, connect and dine in this rapidly evolving harbourside CBD.

Positioned beside the new Victoria Cross Metro Station and boasting panoramic views across Sydney Harbour, Aura’s 386 residences crown a mixed-use precinct designed with unapologetic ambition. The curvaceous sandstone-inspired form by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a>, paired with <a href="https://www.apartments.com.au/interior-designers/richards-stanisich">Richard Stanisich</a>’s understated interiors, sets a design tone that’s both monumental and intimate.

At its peak, literally, the two penthouses so spectacular they command their own names; La Davina and Il Magnate. The residents are spread across the&nbsp;entire top floor, offering what many consider the most refined residences ever built in North Sydney. Designed by Richard and Kirsten Stanisich, each four-bedroom home is meticulously crafted to evoke calm, space, and permanence.&nbsp;

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/VB70993aG-I?si=adRBlXQliYmYvaSz" title="YouTube video player" width="560"></iframe>

The kitchens are fully wrapped in natural stone, with integrated Gaggenau appliances, Sub-Zero fridges, concealed sculleries, and even a zip hydro tap delivering boiling, chilled and sparkling water on demand. A linear stone fireplace anchors the open-plan living space, dividing lounge and dining zones with quiet sophistication.&nbsp;

[smartcode_project:default project_id=30959 project_image_fid=292861]

The master suite, meanwhile, feels more like a private retreat, complete with a custom stone makeup vanity, walk-through dressing area, and spa-inspired ensuite with heated stone floors, a freestanding Villeroy &amp; Boch tub, and timber veneer joinery throughout.

Kirsten Stanisich, Director of Richards Stanisich, said the penthouses offer incredible scale reflective of a single residence.&nbsp;

“We sought inspiration for these remarkable residences from the classic top-floor Parisian apartment," Stanisich said.

"We looked at what made these French apartments so elegant and found it really came down to their scale. It was ultimately this generosity of space that we used for the AURA penthouses, where we’ve designed considered rooms with deep large-scale proportions."

[smartcode_project:default project_id=30959 project_image_fid=310337]

Everyday living at Aura feels no less elevated. A dedicated 24-hour concierge, Technogym fitness centre, sky dining terraces, and a resort-style pool serve a lifestyle designed to rival luxury hotels.

At street level, Aqualand’s own hospitality arm, Etymon Projects, curates a precinct of LA-style bistros, Japanese fine dining, and local wine bars, all seamlessly integrated into the building’s sculptural podium.

[smartcode_project:default project_id=30959 project_image_fid=310337]

This final chapter, aptly dubbed The Finale, is more than a sales phase, it’s an invitation to two of the most exclusive apartments ever to be built in North Sydney.

With limited residences remaining, buyers can access curated incentives including stamp duty rebates, rental guarantees, legal fee coverage, and even $20,000 towards dining within the precinct.

From generous one-bedders to The Icons, two singular penthouses priced well into prestige territory, Aura’s offerings reflect a scale and calibre rarely seen in urban Sydney. And with move-in now immediate, this is no longer a promise of future luxury. It’s happening.

[smartcode_project_cta:default project_id=30959]

Aqualand unveils penthouse collection at AURA By Aqualand in North Sydney

There’s no sign of the development wave that began several years ago slowing along Old Burleigh Road.

Around 10 new apartment developments are either underway or preparing to launch along the 800-metre strip stretching from the southern edge of Surfers Paradise towards the heart of Broadbeach, collectively adding just shy of 1,000 new apartments to the beachfront corridor.

The latest plans propose a further 30 apartments to replace an original six-unit walk-up on a 658 sqm site at <a href="https://www.apartments.com.au/new-apartments/20a-old-burleigh-road-surfers-paradise-qld-4217">20A Old Burleigh Road</a>. The 14-storey building has been designed by Ferro Chow Architecture, which recently joined the Elevation Architecture Group.

The developer behind the project is Geoffrey Booth, whose Future Liv In has focused on delivering rental accommodation across regional Australia.

<img alt="Old Burleigh Road" data-entity-type="file" data-entity-uuid="99d393e7-d404-43bc-80cb-6255c39b83d6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-01-05%20at%2012.28.44%E2%80%AFPM.png?VersionId=ZFT8F3mOny4M4ut.kFF3woC9WH9oR5gT" />

The Old Burleigh Road development will comprise 18 two-bedroom apartments, 10 three-bedroom apartments, and a single four-bedroom residence occupying the entirety of level 12. Above, the building will be crowned by a two-storey penthouse with its own private lift, several multi-purpose rooms, and two rooftop terraces — one featuring a puppy lawn and spa, the other offering a private swimming pool, sunset deck, and built-in barbecue.

Resident amenities will be located on the second level and include a pool with adjoining spa, cabana, and pool deck, along with an indoor residents’ lounge featuring a bar and an alfresco barbecue kitchen.

In the architectural statement submitted by Elevation Architecture, the project is referred to as “UMI”, which the firm says has been “inspired by the majestic hinterlands and shaped by the coastal climate”.

“It is an exemplar of how community living can still feel at one with nature, breathable, and deeply connected in place,” the architects noted.

They added that the site benefits from established building separation to adjoining towers, helping to maintain privacy, sunlight, and residential amenity, while still offering direct beach access within an urban setting.

“Drawing inspiration from the Gold Coast hinterlands and the region’s natural landscape, the podium and tower detail highlights the contrasting elements of treetop green and cliff-face peach. The vibrant texture and materiality shaped by time has a richness in depth and character.”

<img alt="Old Burleigh Road" data-entity-type="file" data-entity-uuid="b3d6c923-a0ab-4d74-86da-177313447e8e" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-01-05%20at%2012.28.38%E2%80%AFPM.png?VersionId=i2fygmoVQM6hWpbATTAW_yTitoMTrnI1" />

Old Burleigh Road has become a hotspot for developers, with the three-tower Jewel development kickstarting a wave of projects up and down the strip when it was completed in 2020.

Currently under construction and approaching completion is <a href="https://www.apartments.com.au/new-apartments/faro-broadbeach-123-old-burleigh-road-broadbeach-qld-4218">FARO Broadbeach</a> by 5Point and Bottega, 21 large-scale half- and full-floor apartments. 5Point is also behind the recently launched <a href="https://www.apartments.com.au/new-apartments/lumara-108-old-burleigh-road-broadbeach-qld-4218">Lumara</a>, another 37 apartments to add to the pipeline.

Luxury builder GRAYA is progressing construction on <a href="https://www.apartments.com.au/new-apartments/enclave-by-graya-118-old-burleigh-road-broadbeach-qld-4218">Enclave</a>, its first Gold Coast tower, while Polycell remains the most active developer on the street. They are preparing to launch <a href="https://www.apartments.com.au/new-apartments/sandpiper-broadbeach-155-old-burleigh-road-broadbeach-qld-4218">Sandpiper</a>, a 50-storey redevelopment of the former Sandpiper Holiday Resort that will deliver around 200 apartments alongside extensive resident amenity. The group also has another 130-apartment project approved nearby, as does <a href="https://www.apartments.com.au/news/qld/dvb-approved-for-second-broadbeach-apartment-development">Dean Gallagher’s DVB Projects</a>.

Joel Robinson

First look: Old Burleigh Road apartment development wave continues

Sunshine Coast developer Habitat Development Group continues to position itself as one of the region’s largest new apartment developers.

Its latest project is in Maroochydore, where it is currently delivering <a href="https://www.apartments.com.au/new-apartments/the-millwell-2-millwell-road-east-maroochydore-qld-4558">The Millwell</a>. Adjacent to the new 53-hectare Maroochydore City Centre project, Habitat is planning a further 180 apartments on a 3,468 sqm site at <a href="https://www.apartments.com.au/new-apartments/132-136-aerodrome-road-maroochydore-qld-4558">132–136 Aerodrome Road</a>. The site was purchased with approval for a smaller 13-storey, 103-unit building.

Habitat will demolish the two existing retail centres, currently home to the Salvation Army Family Store and Neighbours Aid, and replace them with an 18-storey building featuring the significant rooftop amenities that have become a hallmark of Habitat developments in recent years. The rooftop will include both indoor and outdoor spaces, anchored by an infinity swimming pool.

<img alt="Maroochydore" data-entity-type="file" data-entity-uuid="ad434d07-666b-4614-b33e-530ad6a2d261" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-01-05%20at%2010.12.33%E2%80%AFAM.png?VersionId=7pyLsPWKQuwv0us3_v.9DmbzEc2VZe9Z" />

There will be a mix of one- to four-bedroom apartments.

The Development Assessment Report, submitted to the Sunshine Coast Council, says the proposal&nbsp;is not speculative, but a response to both zoning intent and demonstrated housing need.

“The proposed development represents an appropriate and logical intensification of the site, consistent with the planning framework and the intended urban outcomes for the locality.”

Across the Sunshine Coast, councils are increasingly scrutinising not just height or yield, but whether new projects genuinely align with the long-term structure plans underpinning growth corridors. The&nbsp;ASTP Planning Report&nbsp;reinforces the approach, noting that the project has been shaped around site responsiveness rather than generic typology.

“The development has been designed to respond to the physical constraints and opportunities of the site, while delivering a high-quality residential outcome that integrates with the existing and emerging urban context.”

<img alt="Habitat" data-entity-type="file" data-entity-uuid="3a03fc54-4ca5-4868-88d0-eeced70604e2" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-01-05%20at%2010.12.28%E2%80%AFAM.png?VersionId=1pkK3lJrrZjkghTLBReM2zatcas4Nc4B" />

In mid-2025, Habitat, a developer that also builds its own projects, commenced construction on The Millwell, located just over one kilometre from the new proposal. The Millwell will comprise more than 200 apartments across two eight-storey buildings.

Habitat also has two projects on Lake Kawana in Birtinya: <a href="https://www.apartments.com.au/new-apartments/st-clair-birtinya-930-931-waterside-retreat-birtinya-qld-4575">St Clair</a>, a 200-unit, two-building development launched last year and set to welcome buyers this year; and Esperance, a 175-apartment project currently progressing through the development approval process.

First look: Habitat continues to bolster Sunshine Coast apartment pipeline with Maroochydore development plans

John Camilleri, the breeder of legendary racehorse Winx, is set to deliver a landmark two-tower beachfront development that would redefine the Surfers Paradise skyline.

Camilleri, who spent around $100 million acquiring development sites across the Gold Coast in 2025, has lodged plans for two new towers on the dress-circle stretch of Garfield Terrace, just two days before Christmas.

In assembling the site, Camilleri's Celestino Developments has effectively acquired the 71 Garfield project by Iris Capital and AALTO by Weiya Holdings, creating an unrivalled <a href="https://www.apartments.com.au/new-apartments/63-79-garfield-terrace-surfers-paradise-qld-4217">4,000 sqm beachfront holding along Garfield Terrace</a>.

The proposal comprises two residential towers of 55 and 48 storeys, linked by a dramatic skybridge which will home “exclusive VIP and wellness amenities.”

In total, the development would deliver 275 two-, three- and four-bedroom apartments across the two towers, rising above a shared landscaped podium that incorporates a central green space and a beachfront swimming pool stretching more than 90 metres.

<img alt="DBI" data-entity-type="file" data-entity-uuid="097900f3-6bef-4919-b168-b08f2f762876" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-30%20at%209.37.58%E2%80%AFAM.png?VersionId=et0SpmcvaPPVrexI_zWi46BVFtZBxAzx" />

Architecture firm DBI, in documents submitted to Gold Coast City Council, said the project at 63–79 Garfield Terrace would “establish a new benchmark for beachfront residential living on the Gold Coast.”

"The project occupies a rare, uninterrupted oceanfront site and has been shaped by a design philosophy that merges architectural elegance with environmental responsiveness and a carefully curated lifestyle experience. Together, the 48-storey North Tower and 55-storey South Tower form a distinctive twin-tower composition whose dynamic silhouette will make a significant contribution to the Surfers Paradise skyline."

DBI said the architectural language draws inspiration from the fluidity and movement of the coastal landscape.

"Each tower is defined by organic, curving forms and continuous balcony ribbons that wrap the buildings, providing deep shading, enhancing environmental performance, and reinforcing the rhythmic, sculptural expression of the façade. These balcony forms also reduce the apparent mass of the towers while maintaining strong visual continuity from podium to summit. Sculpted reflective downturns run along the western spine of both towers, shifting and lifting as they extend upwards to frame service zones and open eastward to maximise ocean views."

<img alt="Garfield" data-entity-type="file" data-entity-uuid="a2a00ce3-a0e9-45d6-b4b5-b7baed592ac5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-30%20at%209.53.40%E2%80%AFAM.png?VersionId=DnruWV1dhLrtXOeElwekyd7vPq2gw55t" />

The project’s most striking feature is the skybridge at level 45, which will house executive lounges, formal dining spaces, wellness facilities and panoramic ocean-facing views.

“The skybridge enhances the identity of the development, promotes social interaction, and delivers a lifestyle experience not found elsewhere on the Gold Coast,” DBI added.

The podium will host an extensive suite of recreational amenities, including resident lounges, private dining rooms, a large open green lawn, and the signature 90-metre pool stretching along the beachfront. The pool is divided into lap, lounge and children’s zones.

The southern end of the podium will accommodate additional wellness facilities, including a gymnasium, plunge pools, treatment rooms and a dedicated yoga lawn.

<img alt="Garfield" data-entity-type="file" data-entity-uuid="ee1b4f25-231f-4804-83b1-a573a1481962" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-30%20at%209.55.47%E2%80%AFAM.png?VersionId=zObzIA3D5w7EwqPsHjr2pKrA4vbB28zL" />

There will be 127 apartments in the North Tower and 148 in the South Tower, including multiple penthouses, while the Enderley Avenue and Oceanway frontages will be activated by a series of food and beverage tenancies.

Camilleri emerged as the most active site acquirer on the Gold Coast in 2025. He spent just over $30 million acquiring Pacific Point, a 10-level Surfers Paradise apartment block and an adjoining three-level duplex, from fellow racing identity and Aquis billionaire Tony Fung. Plans are now underway for a 93-apartment, 40-storey tower on the 1,682 sqm site.

He also paid $53.65 million for the 1,500 sqm Garfield Terrace site previously marketed as AALTO by Weiya Holdings, before acquiring the adjoining parcel from hotel billionaire Sam Arnaout’s Iris Capital, the developer behind V&amp;A Broadbeach.

First look exclusive: Billionaire Winx breeder’s bold two-tower Surfers Paradise play with 45th-storey skybridge

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

<html><body>
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
</body></html>

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

<html><body>
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."
</body></html>

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

<html><body>
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>.
</body></html>

pwargent-M4siyDbqQY

Capital city prices rise 10 percent

<html><body>
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.” 
</body></html>

jrobinson-rf4aSBido9

Melbourne market records highest annual growth in seven years: REIV

<html><body>
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.
</body></html>

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>

Annual Growth

Editor's Picks

Have something to contribute?

The latest real estate & off the plan properties & news, delivered to your inbox.

Developments

New apartments

New townhouses

News

The latest real estate & off the plan properties & news, delivered to your inbox.

Annual Growth

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

The latest real estate & off the plan properties & news, delivered to your inbox.

Developments

New apartments

New townhouses

News

The latest real estate & off the plan properties & news, delivered to your inbox.