As apartment living continues to evolve across Sydney's growth corridors, the quality and distribution of shared spaces is increasingly shaping how residents experience home. Rather than functioning as add-ons, amenities are being embedded into the daily rhythm of a building, supporting everything from quiet retreat to social interaction, often within a single vertical community.

At <a href="https://www.apartments.com.au/new-apartments/aeris-melrose-park-nursery-street-melrose-park-nsw-2114">Aeris</a> in Melrose Park, this approach is resolved through a layered amenity offering that unfolds from ground level through to its upper podium. Developed by <a href="https://www.apartments.com.au/developers/sekisui-house-australia">Sekisui House Australia</a> in partnership with Hankyu Hanshin Properties, the project introduces 468 apartments across two towers and a mid-rise building, positioned at the highest point of the broader masterplan.

[smartcode_project:default project_id=426 project_image_fid=359199]

The amenity experience begins at street level, where two courtyards sit within a landscaped setting that connects residents to the wider network of parks and green spaces. These green spaces are not isolated pockets but part of a wider pedestrian network that links Aeris to the surrounding <a href="https://www.apartments.com.au/developments/melrose-park-nsw-2114">Melrose Park</a> precinct, including Central Park, future schools, and the Town Centre opening in July 2026. The result is a transition that moves from public to private without abrupt boundaries, allowing residents to pass through shaded, tree-lined environments before reaching the building itself.

Moving upward, the focus shifts to the level five podium, where the primary communal facilities are concentrated. This space brings together a 16-metre swimming pool, outdoor seating areas, and a communal BBQ zone arranged to take advantage of elevated outlooks. Seating is positioned beneath pergolas, creating pockets of shade that extend the usability of the space throughout the day. The pool edge aligns with views toward the wider district, reinforcing the sense of elevation that defines the project’s positioning.

In the adjacent building, this is complemented by quieter, more contemplative spaces, including an outdoor cinema set within the same level. Positioned to operate primarily in the evening, it introduces a different tempo to the shared environment, shifting from daytime activity to after-hours use without requiring separate zones.

[smartcode_project:default project_id=426 project_image_fid=360299]

The podium also accommodates an intimate private resident gym. Located on the lower levels, it gives residents convenient access to fitness facilities without leaving the building.

Above, the elevated podium sky deck extends the amenity offering, providing additional open-air spaces with elevated outlooks across the surrounding landscape. While more restrained in program, this upper level reinforces the project’s vertical progression, from ground-level greenery to elevated outlook, allowing residents to move between distinct spatial conditions within a single address.

This distribution of amenities reflects a deliberate response to how residents use space across the day. Sekisui House Australia Sales and Marketing Director Peter Kalaf points to the role these shared areas play in shaping buyer demand. Aeris has been conceived as more than a collection of apartments, with the podium pool, gym and outdoor cinema forming part of a broader lifestyle offering that extends the home beyond each individual residence.

[smartcode_project:default project_id=426 project_image_fid=360300]

What distinguishes Aeris is not the inclusion of these elements individually, but how they are arranged in relation to one another. Active, social, and passive spaces are layered vertically rather than separated, allowing residents to choose between them without leaving the building or moving far from their apartment. This proximity supports both routine use, such as a morning swim or evening workout, and more occasional gatherings, whether around the BBQ area or within the cinema setting.

The amenity design also sits within a broader framework of connectivity across Melrose Park. The Melrose Park Town Centre, anchored by Coles and Dan Murphys, features a mix of retail, dining, health and lifestyle offerings, bringing everyday convenience closer to residents. By the end of the year, more than five hectares of parks and open space, equivalent to around seven football fields of green space on residents' doorstep, will further enhance the precinct, allowing the internal facilities at Aeris to operate as an extension of the wider neighbourhood rather than a substitute for it.

Construction at Aeris continues to gather momentum, with ground floor slabs expected to be completed in late 2026 before the first sections of the buildings begin to rise above ground.

[smartcode_project_cta:default project_id=426]

Joel Robinson

Elevated amenity anchors daily life at Aeris, Melrose Park

Repeat buyers are one of the strongest measures of confidence in any apartment development.

At <a href="https://www.apartments.com.au/new-apartments/era-newcastle-west-124-126-bull-street-newcastle-west-nsw-2302">ERA</a> in Newcastle West, some purchasers are returning to <a href="https://www.apartments.com.au/developers/gwh">GWH</a> after living at the developer's One Apartments. Their decision to purchase again was driven by the quality of life they found after moving into their first GWH home.

Keith Wilton had spent years living in a house in East Maitland before deciding it was time for a change. Apartment living had always been on his radar, but he was selective about what he wanted.

<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/FH_1EzB-1vs?si=XScVlP1ERsTDJoME" title="YouTube video player" width="560"></iframe>

"I had some boxes I wanted to tick," he says.

Keith points to the open-plan design, generous outdoor areas and considered inclusions as key reasons One Apartments worked for him.

“One of those things was a nice indoor open plan area, but also I wanted a nice outdoor open area that I could entertain on in summer or Christmases or birthdays,” he says.

He also found value in the smaller details, from integrated appliances to shared resident spaces including the pool, cinema and rooftop areas.

[smartcode_project:default project_id=135096 project_image_fid=356818]

After comparing several developments, he chose One Apartments because of GWH's longstanding local reputation and his own experience working with the developer on a commercial project more than a decade earlier.

"I knew that they were local, that the quality of the build was going to be up there. I'd looked at other apartment complexes around and close by, and I just knew that here was a better decision location wise."

Today, Keith says the move has completely changed how he experiences Newcastle.

"I enjoy living in this location because it's more of a lifestyle change. That Newcastle city living where you can walk to restaurants and bars and even beaches and parks and even shopping across the road."

[smartcode_project:default project_id=135096 project_image_fid=356828]

Beyond the location, he says it's the sense of community that has surprised him most.

"Everyone loves living here because they chose to live here, but everyone looks out for each other. It's a real great community feel here."

For Aimee and Lyle Goodman, the journey started almost by chance.

<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/tsioMLcnjas?si=zq-ys3JuWpfa5hFv" title="YouTube video player" width="560"></iframe>

The couple happened to be having coffee in Newcastle when they noticed the site where One Apartments was about to begin construction.

"We were aware GWH was planning a development," Aimee says. "We made one phone call and things moved pretty quickly after that."

As busy business owners, they initially thought apartment living would simply reduce the maintenance that came with larger homes. Instead, it fundamentally changed how they spent time together.

"We actually catch up more as a family now," Aimee says.

"We've had homes with big yards and lots of space, but everyone ended up in different rooms. Here we'll have dinner together, the kids can play, and we spend far more quality time together."

[smartcode_project:default project_id=135096 project_image_fid=356829]

Lyle says their confidence came from GWH's reputation within Newcastle's building industry.

"I know people who've worked across different apartment projects, and whenever GWH came up the feedback was always the same. They're rock solid. They're quality."

That confidence only grew throughout the buying process.

"One of the things that really impressed us with GWH was the whole process, was the communication," Lyle says. "It was consistent, it was regular, there was no problem if we had some weird questions, there was no problems in getting answers."

[smartcode_project:default project_id=135096 project_image_fid=351104]

Aimee says one moment stood out.

"The project actually finished on time. We realised we needed to hurry up and sell our house because everything was happening exactly when they said it would."

The positive experience at One Apartments ultimately gave all three buyers the confidence to purchase again with GWH, this time at ERA.

Their confidence reflects what many buyers are seeking in today's apartment market. Location remains important, but so too does certainty around delivery, quality and long-term liveability.

[smartcode_project:default project_id=135096 project_image_fid=356822]

ERA builds on those foundations with 280 one, two and three-bedroom apartments across two landmark towers in <a href="https://www.apartments.com.au/developments/newcastle-west-nsw-2302">Newcastle West</a>.&nbsp;

Designed by <a href="https://www.apartments.com.au/architects/fk-australia">Fender Katsalidis</a>, the project will include more than 2,000 square metres of resident amenities, including a resort-style pool, gym, sauna, private cinema and rooftop entertaining spaces overlooking the harbour and coastline.&nbsp;

The development is also within walking distance of the Newcastle Interchange, Honeysuckle, Darby Street, the harbour foreshore, restaurants, retail and the city’s beaches, continuing the walkable lifestyle that existing GWH buyers say has transformed how they live.

[smartcode_project:default project_id=135096 project_image_fid=356826]

For Keith, the appeal remains straightforward.

"You feel at home even before you've moved into your home."

For Aimee, the change is measured in time.

“I just felt like I had more time,” she says.

[smartcode_project:default project_id=135096 project_image_fid=351102]

Construction at ERA is now underway, with more than half of the residences already sold and limited two and three-bedroom apartments remaining in the East Tower release. Priced from $980,000 for two-bedroom residences and $1.46 million for three-bedroom residences, buyers can secure an apartment with a 10 per cent deposit, with premium homes offering ocean views from Level 8 and harbour views from Level 10.

ERA is also backed by Resilience Insurance's 10-year Latent Defects Insurance policy, providing protection against structural or waterproofing defects for 10 years after completion. The project is anticipated to be completed in early 2028.

[smartcode_project_cta:default project_id=135096]

From ONE to ERA: Why buyers are choosing GWH again in Newcastle West

Virgate Property Group is preparing to commence construction of Verdé, its new apartment development in Melbourne's Arts Precinct at Southbank, following a strong run of sales that has seen more than half of the project's 173 apartments secured.

Verdé has attracted a broad mix of first home buyers, owner-occupiers upgrading from nearby inner-city suburbs and investors, with younger owner-occupier couples aged between 28 and 45 accounting for the strongest enquiry. Many are already living in Southbank, South Melbourne, Albert Park, Port Melbourne, South Yarra and the CBD.

"Verdé is located in one of the most desirable pockets of southern Melbourne," Blair Property Group Director Darren Blair, who is managing sales at Verdé, said.

"It's within walking distance of the Arts Centre, Royal Botanic Gardens, Albert Park Lake, and Southbank's restaurants and retail. It's a great lifestyle location with strong amenity and liveability, which made it a very attractive choice for the project."

[smartcode_project:default project_id=4661 project_image_fid=372549]

Virgate was already familiar with the precinct, having previously delivered the successful Domain House development in neighbouring South Melbourne. That experience gave the developer confidence to acquire the Coventry Street site and continue expanding its presence in Melbourne's inner south.

"We had been keeping an eye on the site and the broader precinct for a few months before deciding to move forward with the acquisition," Virgate said.

The project was ultimately secured in 2020 following feasibility studies, planning assessments and due diligence, with the brief centred on delivering "a high-quality, considered design that feels both refined and fit for purpose."

[smartcode_project:default project_id=4661 project_image_fid=314259]

Designed by <a href="https://www.apartments.com.au/architects/bruce-henderson-architects">Bruce Henderson Architects</a>, Verdé comprises 173 one, two and three-bedroom apartments priced from $599,000. The architecture is distinguished by a faceted glass façade that responds to both the site's outlook and Melbourne's changing light conditions.

According to Bruce Henderson Architects, the coloured glazing gives the building a distinctive identity while also providing privacy and solar shading, with residences oriented to capture views across the bay, city skyline and surrounding parklands.

Inside, <a href="https://www.apartments.com.au/interior-designers/designoffice">DesignOffice</a> has created interiors focused on natural light, efficient planning and enduring materials. Apartments feature engineered oak flooring, natural stone benchtops, floor-to-ceiling glazing and SMEG appliances, while a restrained material palette aims to complement the expansive outlooks rather than compete with them.

[smartcode_project:default project_id=4661 project_image_fid=372550]

Resident amenity has also been designed around everyday functionality rather than occasional use. Facilities include a concierge-serviced lobby, residents' lounge with fireplace, library and co-working space, gym, terrace garden with barbecue facilities, ground-floor café, and package delivery management.

The project's location continues to be one of its strongest drawcards. Positioned on Coventry Street, Verdé sits within walking distance of the National Gallery of Victoria, Arts Centre Melbourne, Royal Botanic Gardens and Albert Park Lake, while Southbank's dining precinct, Sturt Street trams and the new ANZAC Station are all nearby. The surrounding education catchment also includes Melbourne Grammar, Melbourne Girls Grammar, Mac.Robertson Girls' High School and several major university campuses.

The sales team says buyers have responded particularly well to the combination of location, design quality and long-term liveability.

"They're responding really positively to the quality of the design, premium resident amenities and the uninterrupted views. Many also appreciate the location and how connected it is to everything they need."

The ability to secure stamp duty savings before completion has also been a key factor for purchasers, alongside the opportunity to personalise finishes ahead of settlement.

With construction set to commence soon and more than half the apartments already sold, Verdé enters its next phase as one of the Arts Precinct's more established apartment developments, offering remaining buyers an opportunity to secure a residence before construction advances further. Expected completion is scheduled for late 2027.

[smartcode_project_cta:default project_id=4661]

Virgate's Verdé Southbank moves toward construction as sales fly past halfway stage

Downsizer-focused apartment development Kooyongkoot in Hawthorn has been recognised at the 2026 Better Future Melbourne Design Awards, taking home Gold and Silver awards in two categories.

<a href="https://www.apartments.com.au/new-apartments/kooyongkoot-hawthorn-1-kooyongkoot-road-hawthorn-vic-3122">Kooyongkoot</a>, currently being delivered by developer PQD and designed by Cera Stribley, received Gold in the Interior Design – Proposed category and Silver in the Architecture – Proposed category.

The dual recognition reflects the design approach behind the boutique development on prestigious Kooyongkoot Road, where the focus has been on creating homes for downsizers seeking the space, quality and functionality of a detached house within a low-rise apartment building.

Rather than maximising apartment numbers, <a href="https://www.apartments.com.au/developers/pqd">PQD</a> and <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a> limited the development to just 18 residences, allowing for larger floorplans, greater privacy, generous landscaping and expansive communal spaces.&nbsp;The majority of the apartments also benefit from corner aspects, allowing for dual sources of natural light.

Now around 70 per cent complete and on track for completion in November 2026, Kooyongkoot will comprise a mix of garden residences, ter​race apartments, sub-penthouses, and is crowned by two half-floor penthouses with direct lift access and private rooftop terraces.

[smartcode_project:default project_id=102717 project_image_fid=355297]

The Silver Award for Architecture recognised the way the building responds to its prominent corner position at the ent​rance to Hawthorn's Scotch Hill precinct, one of Melbourne's most established residential neighbourhoods.

Rather than competing with the grand homes that line Kooyongkoot Road, the architectural approach focused on restraint and longevity, using curved brickwork, generous landscaping and carefully considered proportions to integrate with the existing streetscape.

"The form feels fluid and timeless, as though shaped by the landscape itself – architecture that belongs, rather than competes," said Chris Stribley, Co-Founder and Managing Principal of Cera Stribley.

The judging submission also highlighted practical innovations throughout the building, including lift cores servicing only nine homes each, a central landscaped lightcourt designed to bring daylight and ventilation into the building, and fully enclosed private storage rooms with lighting, power and shelving to better accommodate residents transitioning from larger family homes.

[smartcode_project:default project_id=102717 project_image_fid=355293]

The Gold Award for Interior Design recognised the project's focus on long-term liveability rather than display-home aesthetics.

According to the awards submission, the interiors were designed from the inside out, prioritising how homes would function over decades of daily use through generous proportions, practical storage, durable natural materials and flexible layouts.

The specification includes natural stone throughout, upgraded acoustic glazing, V-ZUG appliances and fully enclosed storage rooms, alongside an amenity offering focused on wellness, entertainment and everyday convenience.&nbsp;

Residents will have access to a gym and yoga studio, a wellness centre featuring traditional and infrared saunas, a cold therapy shower and treatment room, as well as a residents' lounge and golf simulator/cinema room for entertainment.&nbsp;Kooyongkoot has also considered the everyday convenience of its residents by offering a private carwash and pet wash facilities on site as well as dedicated parcel lockers and oversized fully enclosed storage rooms.&nbsp;

[smartcode_project:default project_id=102717 project_image_fid=355303]

The project's attention to detail has already resonated with buyers. Earlier this year, Kooyongkoot recorded one of Boroondara's highest apartment sales when an $8 million penthouse was purchased by a Melbourne CEO downsizing from a nearby family home.

"Every detail feels deliberate, from the overall design down to the smallest touches," the purchaser said.

"The level of quality and refinement is exceptional, but what really sold it was how liveable it felt... It felt like a place where everything had been considered, not just a luxury building."

[smartcode_project:default project_id=102717 project_image_fid=355304]

Sustainability also formed a key part of both award submissions. Kooyongkoot is targeting a minimum 7.5-star NatHERS rating across all residences, supported by passive design principles, high-performance glazing, EV charging infrastructure, water reuse systems and a wellness model focused on lower-energy dry facilities rather than pools and large wet areas.

Located within walking distance of Scotch College, Methodist Ladies' College, Koo​yong Lawn Tennis Club, Aubur​n Village and Camberwell Junction, Kooyongkoot continues to target owner-occupiers looking to remain in Melbourne's inner east without compromising on space or quality. A limited selection of two, three and four-bedroom residences remains available, with prices starting from $1.9 million.

[smartcode_project_cta:default project_id=102717]

Kooyongkoot wins Gold and Silver at Better Future Melbourne Design Awards

New apartment supply has become increasingly constrained across <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a> in recent years, with fewer projects progressing through to completion as development conditions have become more challenging.

It makes <a href="https://www.apartments.com.au/developers/novm">NOVM</a>'s 2021-completed <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> one of the most recently completed residential towers on the Parramatta River, and among the newest apartment developments in Sydney's second CBD.

With the project largely completed before the sharp escalation in construction costs and inflation following the pandemic, The Lennox is now offering pricing that would be difficult to replicate in a comparable new development in Parramatta today, or across much of Western Sydney.

The majority of the 413 apartments at The Lennox sold before and shortly after completion. A limited release of the remaining apartments has recently been brought to market by capital partner <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a>, with entry-level pricing from $700,000 and two-bedroom apartments available from under $1 million.

Rising above the Parramatta River at 12 Phillip Street, The Lennox comprises one, two, three and four-bedroom apartments, appealing to first home buyers, young professionals, families, downsizers and interstate investors seeking a completed apartment in one of Australia's fastest-growing economic centres.

[smartcode_project:default project_id=5743 project_image_fid=372394]

Rather than positioning Parramatta as an alternative to Sydney's CBD, Equitifund believes the city has reached a point where it stands on its own merits.

"Parramatta is no longer simply an alternative to Sydney CBD, it's becoming a destination in its own right," Equitifund Executive Chairman Greg Huxley said.

"The Lennox captures that evolution with a level of quality and amenity that's difficult to match at its price point."

[smartcode_project:default project_id=5743 project_image_fid=953]

Designed by <a href="https://www.apartments.com.au/architects/marchese-partners">Marchese Partners</a>, the tower responds directly to its riverfront setting through expansive glazing and open-plan layouts that maximise views across the Parramatta River and city skyline. Interiors feature engineered timber flooring, stone benchtops, stainless steel appliances and floor-to-ceiling glazing, while generous balconies extend the living spaces outdoors.

Marchese Partners says the project was conceived to balance high-quality apartment living with practical, long-term functionality, pairing larger, efficient floorplans with amenities more commonly associated with five-star hotels.

That emphasis continues through the resident facilities, which include a 20-metre rooftop swimming pool, fully equipped gym and wellness spaces, full-time concierge, a residents' lounge, function room, private lifts, secure basement parking and rooftop communal areas overlooking the Parramatta River. Ground-floor boardwalk retail and dining further activate the riverfront and integrate the building into the surrounding public realm.

[smartcode_project:default project_id=5743 project_image_fid=925]

Australian housing and finance group Equitifund has secured the remaining apartments, believing there are few completed apartment opportunities in Parramatta that offer the same combination of location, amenity and pricing.

Equitifund National Sales Director Ben Hamblett says buyers are increasingly recognising that premium apartment living no longer needs to come with Sydney CBD pricing.

"The Lennox is where aspirational living becomes attainable," Hamblett said.

"Wake to river and mountain views, step into Sydney's Second CBD, and arrive home to resort-calibre amenities, all without the harbour price tag."

Hamblett says owner-occupiers are also attracted by the convenience of having Westfield Parramatta, Church Street's dining precinct, Parramatta Park, Riverside Theatres, Western Sydney University and major transport connections all within walking distance.

"At The Lennox, lifestyle is not an afterthought, it is the foundation."

[smartcode_project:default project_id=5743 project_image_fid=5374]

The Lennox places residents within walking distance of Parramatta Square, Westfield Parramatta, Church Street Eat Street, Parramatta Station, the ferry wharf, Light Rail, the future Sydney Metro West, Parramatta Park and CommBank Stadium, reinforcing Parramatta's position as one of Australia's most connected metropolitan centres outside Sydney's CBD.

Equitifund says buyers visiting the display suite consistently comment on the quality of the finishes, generous floorplans, river and skyline views, and the walkability of the location. The project has attracted a broad mix of local professionals, upsizers, downsizers, buyers relocating from Sydney's inner suburbs and interstate investors seeking long-term growth opportunities.

That demand aligns with Parramatta's continued evolution as an economic powerhouse. Equitifund Research and Market Insights specialist John Bekiaris says sustained population growth, infrastructure investment and expanding employment opportunities continue to support long-term housing demand across the city.

"Parramatta has evolved from a satellite city into one of Australia's most important economic centres. Population growth, infrastructure investment and employment are all supporting sustained long-term housing demand."

[smartcode_project_cta:default project_id=5743]

The apartment price gap drawing Sydney buyers west

Apartment Approvals

National multi-unit approvals increased by 36 per cent in the three months to May 2021 to be 25.7 per cent higher than last year.&nbsp;

It was the strongest quarterly result for apartment approvals since 2018, stated HIA economist, Angela Lillicrap.

They were driven by a rise in apartment approvals in Queensland and Western Australia.

<img alt="" height="855" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/approvals_broad.jpg" width="1200" />

Matthew Hassan, the Westpac economist noted high rise approvals, where up 186 percent year on year in Queensland and 105 percent in WA.&nbsp;

In NSW highrise approvals were up 59 percent year on year based on the quarterly data, while it was 42 percent in Victoria.

[smartcode_project:default project_id=7758 project_image_fid=150460]

Hassan noted that high rise approvals were greater than low rise apartment approvals.

NSW lead the low to mid rise apartment growth, up 69 percent, followed by Victoria up 8 percent and Queensland by 4 percent.&nbsp;

[smartcode_project:default project_id=102309 project_image_fid=163979]

Meanwhile detached building approvals fell back in May from the record level set in April but remain elevated according to the Australian Bureau of Statistics release.

Approvals for private sector houses fell across all mainland states: Western Australia (-18%), South Australia (-16.9%), Queensland (-13.8%), Victoria (-5.8%) and New South Wales (-4.6%), in seasonally adjusted terms. 
&nbsp; 
Detached approvals will remain elevated for several more months as approval authorities work through the remaining HomeBuilder projects, stated HIA economist, Angela Lillicrap.

Ryan Felsman, the senior economist at CommSec, noted council approvals to build new homes fell by 7.1 per cent in May after falling by 5.7 per cent in April.&nbsp;

&quot;But approvals are still up 52.7 per cent on the year &ndash; the strongest annual growth rate in 11 years,&quot; Felsman advised.

In May, total house approvals fell by 10.3 per cent (up 53.6 per cent on the year) with apartments up 0.7 per cent (up 51.0 per cent on the year).&nbsp;

Over the past year, 144,827 new houses were approved &ndash; the most for a 12-month period in over 37 years.

AMP Capital cheif economist Shane Oliver noted the decline in building approvals from their peak likely reflects the end of the HomeBuilder subsidy at the end of March, which brought approvals forward.&nbsp;

&quot;However, approvals remain very high, the AIG&rsquo;s June Construction PMI survey continues to point to strong new orders for new houses and the lagged impact of the surge in approvals up until recently points to a significant further rise in dwelling construction activity over the remainder of this year.

&quot;This is good news for continuing economic and jobs recovery.&nbsp;

&quot;Continuing strength in home building against the back drop of the collapse in population growth also holds out the prospect that the property market will move into a situation of underlying oversupply in the next year or so which should ultimately slow the gains in home prices and help improve affordability,&quot; Oliver said.

Multi-unit approvals increased by 36 per cent in the three months to May 2021, the strongest quarterly result since 2018

jchancellor

Apartment approvals see strongest quarterly result since 2018

<html><body>
The Australian Bureau of Statistics (ABS) housing approval numbers for January 2019 show a collapse in apartment approvals in Victoria and NSW.
The ABS January 2019 housing data indicates a fall in apartment approvals in Victoria of 55 per cent and in NSW of 41 percent over the last year.
Detached home approvals have remained steady but apartment approvals have dropped dramatically across Australia but particularly in NSW and Victoria.
In January 2018 Victoria had 3362 apartment approvals but this has dropped to only 1,500 in January 2019.
NSW had 3,359 approvals in January 2018 and this has dropped to 1,987 a year later in January 2019.
The drop in apartment approvals in NSW is even more dramatic when measured against the high point of 3,814 approvals in September 2017.
This is a drop of 1,827 from the peak which is a 48 per cent drop.
Drops in the order of 50 percent over a year are highly unusual and it does not look as though the drop is slowing.
Over the last year house approvals dropped from 2,556 in January 2018 to 2,425 in January 2019 which is only a 5 per cent drop.
Clearly the investor market is on hold in the major cities as housing prices fall and this impacts on apartment sales.
The message from the development industry is that pre commitment sales have tapered off dramatically in Sydney so even those apartments that have been approved may not proceed.
The supply chain of new apartments is looking to be very low in the years ahead.
The collapse in approvals for new apartments has been fuelled by negative attitudes about apartment development from politicians and media in the build up to the NSW election on 23 March, the slow -down in funds from China, the falling dwelling prices in the market and a general lack of confidence by investors, owner occupiers and the development industry in new residential property.
Which ever party wins the NSW election will need to address the confidence issue quickly as there are around 300,000 direct jobs in residential development and if half the number of apartments will be built in coming years then half the number of jobs will be needed.
The Urban Taskforce is developing a series of actions that the next NSW government can take to minimise unemployment in the industry.
CHRIS JOHNSON is the Urban Taskforce CEO 
</body></html>

cjohnson-8xfqfuuCSq

Apartment approvals collapsing in Victoria and New South Wales: Chris Johnson

<html><body>
EXPERT OBSERVER
Dwelling building approvals fell an as expected 1.5% in October, with unit approvals down 5.4%.
The trend in alterations and additions is falling at around 0.1% a month.
The trend in non-residential approvals is also falling.
<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/2018/12/4/Approvals1.jpg" alt="">
The downtrend in dwelling building approvals and in the value of alternations and additions points to gradual decline in dwelling investment over the year ahead.
<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/2018/12/4/Approvals2.jpg" alt="">
Meanwhile in other data released today
<ul type="disc">
<li class="x_MsoListParagraph">September quarter business indicators were on the soft side with company profits up 1.9%qoq (against market expectations for a 2.4% gain), the wages bill rising just 0.9%qoq (and don’t forget this allows for wages and employment growth), sales volumes slowing to just 0.1%qoq and flat inventories pointing to a detraction from growth of 0.3 percentage points.</li>
</ul>
Taken together this points to a bit of a softening in growth after a few stronger quarters and suggests downside risks to our September GDP growth forecast of 0.6%qoq, although there is data on net exports and public demand to be released tomorrow. 
Finally
<ul type="disc">
<li class="x_MsoListParagraph">ANZ jobs ads fell 0.3% in November with annual growth slowing to 2.3%yoy pointing to softer jobs growth ahead.</li>
<li class="x_MsoListParagraph">The Melbourne Institute’s Inflation Gauge for November basically stalled with headline inflation slowing to 1.6%yoy and underlying inflation slowing to just 1.3%yoy suggesting that inflation may be actually slowing this quarter.</li>
</ul>
Implications for interest rates
Along with CoreLogic data showing ongoing falls in house prices, today’s data adds to our expectation that RBA rate hikes are at least two years away and that there is rising risk that the next move by the RBA will be a rate cut rather than a rate hike.
SHANE OLIVER is Head of Investment Strategy and Chief Economist at AMP Capital.
 
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soliver-smf6LQXgW9

Unit approvals lead building approvals decline in October: Shane Oliver

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EXPERT OBSERVATION
Dwelling approvals came in slightly below expectations in April with a 5% fall vs consensus forecasts of a 3% decline. Annual growth slowed to 5.2%yr. The detail was mostly on the soft side.
Private detached house approvals were flat in the month but supported by an abnormally large 20% jump in WA which was coming off very weak reads in February-March. We suspect this relates more to processing issues than conditions on the ground which are still not conducive to a pick-up in the west (Perth house prices still declining and rental vacancy rates above 5%). Ex WA, private detached house approvals were much softer, down 6.7%.
Private units were the main driver of the headline decline, posting a sharp 11.5% drop in the April month. Our estimates indicate high rise unit approvals were down over 20%. While extreme volatility makes this sub-segment hard to read, the monthly series looks to be shaping into a second leg lower, as indicated by site purchase data over the past year. That said, it will still take some time to confirm. ‘Medium density’ approvals also declined sharply, by around 6%mth.
By state, the pull back in units was concentrated in Vic (–8.4%mth but still up 25.8%yr). NSW posted a decent 5% gain and Qld nudged up 1.2% but in both cases approvals are still down on a year ago. Approvals have firmed slightly in SA but are showing clear trends lower in both WA (despite this month's jump) and Tasmania.
The value of renovation approvals dipped 0.3% after a 6.5% drop last month. Although approvals are still up 16%yr the monthly trend has swung into a clear decline.
The value of non-res building approvals fell 4%mth to be down nearly 20%yr. The dominant driver continues to be a sharp fall back in the previously very strong office segment with the slowdown concentrated in NSW and Vic.
The latest Foreign Investment Review Board (FIRB) annual report has also been released with data confirming the slump in foreign residential purchases. It shows a dramatic 67% drop in FIRB approvals to just 13.2k in 2016-17 from just over 40k in 2015-16. Note that these counts include purchases of existing properties and developer 'off the plan’ approvals, the latter counting projects with multiple properties as a single approval. Our estimates suggest the underlying number of new properties purchased via FIRB approvals saw an even bigger fall, from 52k in 2015-16 to 13.5k in 2016-17. Note that the full impact on activity may take time to come through as developers may still be selling properties in projects that obtained FIRB approval in previous years. More generally, the wider foreign buyer share of total market activity looks to have shrunk from 10-15% to 3-4%.
Overall the April data-flow is broadly in line with our expectations that approvals are tilting towards taking another leg lower through 2018 with the main impact on new dwelling construction coming in 2019.
Matthew Hassan is senior economist with <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>.
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j.ballantyne1990-6AQqhLzZaK

Private units the main driver of dwelling approval decline: Westpac

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Apartment approvals are now declining quite quickly in Sydney, while confidence is picking up off the mat in Brisbane, especially for tonwhouses and semi-detached dwellings.
The latest ABS figures relate to the month of February, but with more and more new apartments failing to value up at completion it's only a matter of time before unit approvals in Sydney decline further. 
<a href="https://2.bp.blogspot.com/-8KDQ7ddnUSs/WsRdTaQ0IOI/AAAAAAAApQU/q0yQ91byCVooH8yyLXqJ2FwjMW0P4VwhwCLcBGAs/s1600/BA1.jpg"><img src="https://2.bp.blogspot.com/-8KDQ7ddnUSs/WsRdTaQ0IOI/AAAAAAAApQU/q0yQ91byCVooH8yyLXqJ2FwjMW0P4VwhwCLcBGAs/s640/BA1.jpg" width="640" height="380" data-original-height="826" data-original-width="1389"></a>
Approvals for houses are generally mirroring internal migration trends, with Brisbane and Melbourne attracting the most migrants from elsewhere in Australia, but Perth having experienced an outflow of residents. 
<a href="https://3.bp.blogspot.com/-oGVxuL_jhSk/WsRdUBBuVYI/AAAAAAAApQY/pME7lZ0_Aoc1jfP1KEyDkBw0yDp_9VfvQCLcBGAs/s1600/BA2.jpg"><img src="https://3.bp.blogspot.com/-oGVxuL_jhSk/WsRdUBBuVYI/AAAAAAAApQY/pME7lZ0_Aoc1jfP1KEyDkBw0yDp_9VfvQCLcBGAs/s640/BA2.jpg" width="640" height="392" data-original-height="834" data-original-width="1361"></a>
Totting it all up, there is little evidence yet of a bust in residential construction, with more than 221,000 dwellings approved over the year to February 2018, although we are now well off the peaks.
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The high-rise apartment sector has also calmed down a bit now, with a notable shift towards more approvals for family appropriate dwellings, such as terraces, semi-detached homes, townhomes, and low-rise apartments. 
<a href="https://1.bp.blogspot.com/-QZ6ps6FvdDw/WsRdVAttpII/AAAAAAAApQg/5k1Gf7mxpFojj7zk6h6wmhVDUy8hPYzMACLcBGAs/s1600/BA4.jpg"><img src="https://1.bp.blogspot.com/-QZ6ps6FvdDw/WsRdVAttpII/AAAAAAAApQg/5k1Gf7mxpFojj7zk6h6wmhVDUy8hPYzMACLcBGAs/s640/BA4.jpg" width="640" height="376" data-original-height="818" data-original-width="1390"></a>
Commercial boom
Another point of note is that the annual value of non-residential building approvals have boomed to their highest ever level at just shy of $48 billion, keeping building activity sustained at a high level in 2018. 
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There has been record activity across approvals for warehouses, offices, schools, universities, and aged care facilities. 
This is a positive signal, for there will be a significant hole to plug as Sydney apartment construction fades. 
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pwargent-M4siyDbqQY

Sydney building approvals declining quickly: Pete Wargent

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EXPERT OBSERVATION
Apartment building has started the year with solid growth.
Building Approval results were released today by the Australian Bureau of Statistics and report that new apartment approvals were up by 5.5% during the three months to January 2018.
Over the year to January 2018, new apartment approvals totalled 106,000 a very high level by historic standards. The annual volume of apartment approvals has been north of the 100,000 mark continuously since early 2015.
New building approvals remain strong in the Melbourne area. This market continues to be supported by high levels of inward migration – a result of the remarkably healthy labour market in the city. Melbourne’s ability to accommodate an expanding population so well has been a big factor in its recent economic success.
Growth in building approvals in Western Australia for two successive months is also a further sign that the down phase of their building cycle ended along with 2017.
New detached house approvals across Australia were largely unchanged over the three months to January 2018. The pipeline of activity on this side of the market also remains high and our expectation is that the market will continue to cool slowly over the year.
The heavy obstacles placed in the way of foreign buyers over the past year and well as the possibility of interest rate rises later this year are still likely to drag new home building activity lower over the medium term."
During the three months to January 2018, Victoria saw the largest increase in new home approvals (+26.0%) with growth also occurring in Tasmania (+7.0%) and Queensland (+1.3%). The ACT was hit by the largest decline in new dwelling approvals (-57.5%), followed by the Northern Territory (-23.2%) and South Australia (-11.2%). There were also reductions in New South Wales (-10.2%) and Western Australia (-1.2%).
Shane Garrett is a senior economist at HIA. He can be <a href="https://hia.com.au/business-information/economic-information/economic-group" target="_blank">contacted here.</a>
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jrobinson-rf4aSBido9

New apartment approvals continue to soar: HIA's Shane Garrett

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Australian apartment building approvals experienced a sharp downturn in March, as approvals dropped by 28.4 percent throughout the month, supporting a fall in total dwelling approvals of 19.9 percent.
Matthew Pollock, national manager of housing at Master Builders Australia, remarked that the statistics highlight the need for the Federal Budget to support a greater level of investment into Australia’s housing sector.
“These latest results suggest the housing boom which has been driven primarily by apartment construction in Sydney and Melbourne is beginning to run out of steam,” he said.
Apartment approvals in New South Wales fell by 27 percent, to 2,526, the lowest level since January 2016. Victoria did not fare much better, with apartment approvals down by 13 percent in March.
However, the value of alterations and additions increased by 1 percent in March and has risen for seven straight months.
“The record rates of new home building last year and this year are a result of the industry playing catch-up after a decade of underinvestment into our housing stock,” Pollock added.
“New home construction will need to be maintained at 200,000 new dwelling per year for at least the next five years if we are to meet the needs of a larger population and ensure supply constraints do not push up future house prices.”
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Budget must support new home building as building approvals fall

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GUEST OBSERVER
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The latest figures from the Australian Bureau of Statistics (ABS) for dwelling approvals show a slow down for NSW particularly for apartments and proposed extra costs could slow housing production even more.
Apartment approvals have dropped by 12% between July and October 2016.
The high point of 4,105 new apartments approved in NSW in July 2016 has dropped to 3,620 in October which is a significant decrease. Housing approvals have also fallen but not by the same amount with all homes dropping from 6,500 in July 2016 to 5,945 by trend in October 2016.
There are a number of signals from the NSW Government that are likely to add more costs to developing apartments and houses and this will add uncertainty to those investing in new housing. The release of the District Plans by the Greater Sydney Commission has highlighted a number of new levies to housing.
An affordable housing levy of up to 10 percent is now proposed in the District Plans as well as statements about Value Capture levies. On top of this the NSW Minister for Planning is encouraging changes to Negative Gearing that would reduce the investment interest in new homes that are needed for the rental market and potential changes to the BASIX sustainability program could lead to additional building costs.
There will be an uncertain environment over the next 12 months as the very broad District Plans are discussed leaving confusion over just which planning rules apply. The council elections at the end of 2017 for amalgamated councils could put decision making on hold.
All of this uncertainty is in the context of an increased number of new homes needed in Sydney yet the uncertainty is likely to slow production down. The Department of Planning has indicated that an average of 36,250 new homes are needed over the next 20 years but the highest production has been 30,000 for the last financial year. The government’s high growth scenario would require 41,500 homes a year.
<a href="/images/2016/12/01/Screen%20Shot%202016-12-01%20at%209.51.02%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/12/01/Screen%20Shot%202016-12-01%20at%209.51.02%20AM.png" alt="">
 
Clearly for Sydney the NSW Government must be encouraging an increase in housing supply of around 10,000 more than is currently occurring but the uncertainty over the District Plans, Affordable Housing levies, Value Capture levies, Council Amalgamations and potential changes to BASIX will slow housing supply down.
What is needed is policies that stimulate more housing production like the Urban Taskforce proposal for 4,000 affordable homes a year rather than a raft of new levies, taxes and an uncertain planning environment. The current slow down on housing approvals should be seen as an early warning that support for housing production is needed.
Chris Johnson is chief executive officer of property development industry group Urban Taskforce and can be contacted <a href="https://www.urbantaskforce.com.au/index.php?option=com_content&amp;view=article&amp;id=97&amp;Itemid=126#.Vdaart55dFI" target="_blank">here</a>.
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jchancellor-FAypfDUnLy

Apartment approvals slow in Sydney as more costs are imposed

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The property market may be in for a hard landing as early has 2017, according to investment bank Morgan Stanley’s recent predictions.
The reasons cited are a soft rental market, an oversupply of new apartments and worsening affordability, says an article in the Australian Financial Review based on Morgan Stanley’s outlook.
It predicts apartment approvals to fall by more than half over the next two years as settlement risks and a sharp cut in development financing hurts developers.
"In short, we believe the growth contribution from the housing boom has already peaked and look for a plateau over 2017 and decline through 2018," strategists Daniel Blake, Steven Ye, Chris Nicol and Antony Conte write.
"New apartment projects should slow sharply as focus turns to settlement of the existing pipeline."
The outlook is based on more pessimistic expectations about net migration rates than others, according to Morgan Stanley, and is the result of a new index  — MSHAUS — combining six factors including oversupply, rental vacancy rates that could rise to 4.5 percent from 3 percent in two years, tighter lending standards and lower expected growth in home values.
The index is in a range close to its lowest level since 2004, says the report. 
<a href="/images/2016/10/21/MorganStanley.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/21/MorganStanley.jpg" alt="">
"A growing overbuild, deteriorating rental market conditions, further worsening in housing accessibility, tighter credit supply and more subdued price expectations all suggest a further softening in the outlook over 2017," it says.
Planning approvals of apartments, townhouses and semi-detached homes will fall to 57,000 in the fourth quarter of 2018 from 124,000 in trend terms in July this year, the report says. 
Settlement risk – both for individual buyers and whole developments – is a major concern. 
"In our view, the greatest vulnerability is settlement risk on the 160,000 apartments that we forecast completing through end 2017," the report says. "Listed developers report low failure rates currently, but also confirm credit availability has tightened, especially for foreign investors."
It also applies to buildings, despite the growth of alternative financing sources. 
The report says the nearly $120 billion in settlements due by end-2018 makes this a genuine concern.
The rental market is also the softest since 2003, it says. 
"We think they will weaken further, on the back of an increasing apartment overbuild. Rent inflation has already slowed sharply and is running at a record low of 0.9 percent, year on year."
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