<p>A landmark former orphanage site in Surrey Hills could be transformed into a new residential community under plans lodged by <a href="https://www.apartments.com.au/developers/antipodean-land-developments">Antipodean Land Developments</a> that would deliver 76 apartments and townhouses while restoring some of the suburb's most significant heritage buildings.</p>

<p>The burgeoninng Melbourne-based developer has submitted plans for the 9,158 sqm site at 1 Kent Road and 24 Durham Road, home to the former St Joseph's Home for Destitute Children, a historic institutional complex dating back to the late 19th century. The proposal seeks to adaptively reuse several heritage buildings while introducing two new four-storey residential buildings set within extensive landscaped grounds.</p>

<p>Designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a> and Kerstin Thompson Architects, the project has been conceived as a contemporary residential village embedded within a restored heritage precinct. The development team describes the design approach as "The Village in the Garden," with new buildings positioned among mature landscaping by OCULUS and significant heritage structures.</p>

<p><img alt="First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills" data-entity-type="file" data-entity-uuid="44ec8c1b-c0b6-44ae-859e-5811b3e6a023" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Untitled%20design%20%281%29.png?VersionId=p.p1_KFh4iQoV4nisdnPfQBAsWNi7m79" /></p>

<p>The proposal would deliver 76 dwellings comprising a mix of apartments and duplex-style residences, significantly increasing housing supply on one of the largest privately held residential landholdings in Surrey Hills. The development includes 127 car spaces, 24 bicycle spaces and more than 1,000 sqm of communal amenity, with the existing chapel building earmarked for conversion into resident facilities.</p>

<p>According to the planning submission, the project centres on the restoration and adaptive reuse of the site's most significant heritage assets, including the original c.1889 St Joseph's building, the chapel designed by architect Augustus Andrew Fritsch, and the historic brick perimeter walls and entry gates. The proposal also incorporates the retention of other contributory buildings including the former infirmary and school building.</p>

<p>Tract Consultants, in the planning report accompanying the application, said the scheme had been shaped through extensive heritage analysis and design development.</p>

<p>"The shared vision for the Site by the project team has culminated in a scheme which successfully breathes life back into a historic site while delivering upon the objectives of Victoria's Housing Statement in a carefully curated and contextually responsive manner."</p>

<p><img alt="First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills" data-entity-type="file" data-entity-uuid="7263b7d8-95ea-400f-9531-6ca7d22c3c33" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Untitled%20design%20%282%29.png?VersionId=4cR1tiWOsDpgxEOwZi5vVFcyvvOsYkIE" /></p>

<p>The proposal is being assessed under Victoria's Significant Residential Development with Affordable Housing pathway. As part of the application, three per cent of the project's residential development cost would be contributed to the Social Housing Growth Fund. The development would also provide a diverse mix of one, two and three-bedroom residences targeting a broader range of buyers than typically found in Surrey Hills' detached housing market.</p>

<p>Sustainability initiatives include an anticipated 66 per cent BESS score, natural cross-ventilation to 80 per cent of apartments, 28 per cent deep soil landscaping and a canopy cover outcome exceeding local planning requirements. The proposal also sets aside more than 1,083 sqm for communal indoor and outdoor resident amenity spaces.</p>

<p><img alt="First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills" data-entity-type="file" data-entity-uuid="33fad46f-fe26-4d0a-acfd-6b776e1c6a3d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Untitled%20design.png?VersionId=D9F6WVSyYCtGvSUmith35LRp6R7PQkw_" /></p>

<p>Planning documents describe the property as one of the largest underutilised residential sites in Surrey Hills, arguing it presents a rare opportunity to introduce "missing middle" housing in an established inner-eastern suburb while preserving and revitalising a significant heritage precinct.</p>

<p>Antipodean Land Developments has built a reputation for design-focused residential projects across Melbourne, particularly in the medium-density sector. Previous developments include Neighbourhood in Brunswick East, delivered with Breathe Architecture, and Balfe Park Lane, designed by Kerstin Thompson Architects.</p>

<p>They've been very active in site acquisition as they build out their future development pipeline. They recently launched Thornubury House, 45 apartments above a mix of commercial, retail, and food and beverage tenancies, and have plans for a boutique project in Fitzroy and another <a href="https://www.apartments.com.au/news/vic/antipodean-plan-apartments-for-deepdenes-missing-middle-on-whitehorse-road">"missing middle" project</a> on Deepdene's Whitehorse Road.</p>


Joel Robinson

First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills

<p>Developer <a href="https://www.apartments.com.au/developers/auyin-property-development">Auyin</a> is the latest to turn to the Victorian Government's Development Facilitation Program in an effort to secure approval for its long-planned, mixed-use project in Elsternwick.</p>

<p>In 2018, Auyin lodged plans with Glen Eira City Council for a 14-storey building, however Council approved a reduced eight-storey scheme. A subsequent VCAT appeal in 2019 upheld the eight-storey height limit.</p>

<p>The project was later amended to nine storeys, but Auyin is now seeking to revive something closer to its original vision. The developer argues that the planning context has evolved significantly over the past decade, particularly within the Elsternwick Activity Centre, where higher-density development has increasingly been encouraged along Glen Huntly Road.</p>

<p>The proposal would transform the 1,239 sqm site at <a href="https://www.apartments.com.au/new-apartments/7-12-horne-street-elsternwick-vic-3185">7-15 Horne Street</a>, opposite Elsternwick Railway Station, into a 13-storey residential and retail development designed by CBG Architects, with 40 apartments</p>

<p>The site currently comprises three commercial properties.</p>

<p><img alt="First look: 13-storey mixed-use tower planned for Elsternwick activity centre" data-entity-type="file" data-entity-uuid="5f465dd4-509b-4082-a669-0253b313914b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/elsternwick%20podium.png?VersionId=72frWi0SmQ5AVJ3ARRhX5ILUYObhTm7x" /></p>

<p>The proposed apartment mix comprises 25 two-bedroom and 15 three-bedroom residences above 200 sqm of retail space at ground level. Residents would have access to a 90 sqm wellness facility, a 351 sqm communal indoor and outdoor terrace on the third level, and extensive landscaped areas throughout the development. A publicly accessible 135 sqm plaza would be created on the north-east corner of the site, providing seating, landscaping, and a new gathering space adjoining Horne Street.</p>

<p>The design adopts a four-storey podium that references the finer-grain character of the surrounding streetscape, with the upper tower recessed behind generous setbacks on all boundaries.</p>

<p><img alt="First look: 13-storey mixed-use tower planned for Elsternwick activity centre" data-entity-type="file" data-entity-uuid="e637e763-2abc-4c34-a0aa-5c7ad36fae18" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/elsternwick%20open.png?VersionId=J1AoOpZgTyaF.KeeFSX6lMjEScX8KKRi" /></p>

<p>A key element of the proposal is the reconfiguration and widening of the surrounding laneways. Vehicle access would be retained from Lois Lane, with upgraded pedestrian connections linking Ross Street and Horne Street. The development would provide 58 residential car spaces, two retail car spaces, and 52 bicycle spaces across two basement levels and ground-floor facilities.</p>

<p>Architecturally, the building draws inspiration from the established character of Elsternwick Village. The façade combines dark charcoal brickwork, textured concrete, bronze-toned metal detailing, and extensive planting integrated into podium and tower levels. The design also incorporates a chamfered corner treatment and publicly accessible plaza intended to strengthen pedestrian activity around the station precinct.</p>

<p>Elsternwick's last new development completion was&nbsp;EVA Elsternwick by Pitard late last year. <a href="https://www.apartments.com.au/developers/milieu-property">Milieu</a> is working away on its nature-led neighbourhood, <a href="https://www.apartments.com.au/new-apartments/elsternwick-gardens-by-milieu-8-gordon-street-elsternwick-vic-3185">Elsternwick Gardens</a>, on Gordon Street, with its first stage expected to complete next year.</p>


First look: Auyin seeks mixed-use apartment project in growing Elsternwick Activity Centre

<p><a href="https://www.apartments.com.au/new-apartments/otium-parkdale-123-125-como-parade-east-parkdale-vic-3195">Otium Parkdale</a>, the 13-residence boutique development by&nbsp;<a href="https://www.apartments.com.au/developers/huxtable-property">Huxtable Property</a>, has entered its final stages of delivery, with completion expected within the coming month and more than half of the residences sold.</p>

<p>The Como Parade East project is nearing the finish line at a time when opportunities to purchase new apartments in <a href="https://www.apartments.com.au/developments/parkdale-vic-3195">Parkdale</a> remain exceptionally limited. Fewer than 10 per cent of dwellings in the bayside suburb are apartments, making developments like Otium a relatively rare addition to a market traditionally dominated by detached housing.</p>

<p>[smartcode_project:default project_id=134974 project_image_fid=5427]</p>

<p>The three-level development comprises 13 residences, including ten two-bedroom apartments and three larger three-bedroom homes, all positioned above a secure basement car park.</p>

<p>Designed by <a href="https://www.apartments.com.au/architects/almeida-architects">Almeida Architects</a> with a strong connection to its coastal surroundings, Otium combines red brick, exposed concrete and dark metal detailing with integrated landscaping and greenery. Expansive glazing, generous balconies and terraces have been incorporated throughout the design to maximise natural light and reinforce indoor-outdoor living.</p>

<p>Inside, the residences feature engineered European oak flooring, natural and reconstituted stone benchtops, Bosch kitchen appliances, ducted heating and cooling, lift access and secure entry systems. The larger three-bedroom residences on the upper level have been designed with house-like proportions, while the two-bedroom apartments prioritise functionality, flexibility and low-maintenance living.</p>

<p>[smartcode_project:default project_id=134974 project_image_fid=5421]</p>

<p>The project is now in its final stages, with <a href="https://www.apartments.com.au/builders/labco">Labco</a> completing the remaining landscaping and external finishing works following the completion of the residences' interiors.</p>

<p>Otium's location within the heart of Parkdale continues to underpin its appeal. Residents will be just steps from local cafés, restaurants, shops and the newly elevated Parkdale Station, while the beach is less than a kilometre away.</p>

<p>With the project tracking ahead of schedule, buyers can currently secure a residence with a five per cent deposit and benefit from settlement terms of up to eight months. The advanced stage of construction also provides buyers with the opportunity to walk through the near-complete residences and experience the quality and finishes firsthand ahead of completion.</p>

<p>[smartcode_project_cta:default project_id=134974]</p>


Otium Parkdale enters final month before completion as rare apartment opportunity nears sellout

<p>A new boutique apartment development is entering the market in <a href="https://www.apartments.com.au/developments/chermside-qld-4032">Chermside</a>, with Brisbane-based developer <a href="https://www.apartments.com.au/developers/ausdev">Ausdev</a> bringing 33 residences to a well-connected pocket of Brisbane's north.</p>

<p><a href="https://www.apartments.com.au/new-apartments/parkdrive-apartments-chermside-25-sammells-drive-chermside-qld-4032">Parkdrive Apartments</a>, at 25 Sammells Drive, will comprise a mix of one- and two-bedroom residences positioned within walking distance of Westfield Chermside, The Prince Charles Hospital, and Bradbury Park.</p>

<p>Established in 1989, Ausdev has a long-standing presence across both development and construction, with Parkdrive Apartments representing its latest residential project in Brisbane's northern suburbs.</p>

<p>[smartcode_project:default project_id=152125 project_image_fid=363778]</p>

<p>The development has been designed around open-plan living and natural light, with residences featuring stone benchtops, timber cabinetry, BOSCH appliances, and private balconies that extend the living areas outdoors.</p>

<p>Kitchens are positioned as the centrepiece of the homes, incorporating natural material palettes and integrated appliances, while bathrooms have been designed with a focus on functionality and understated finishes.</p>

<p>Residents will have access to a communal barbecue and entertaining area on Level 3, providing shared outdoor space within the development. Secure parking and lift access are also incorporated into the building.</p>

<p>The project will deliver a limited collection of 33 apartments, with one-bedroom residences priced from $749,000.</p>

<p>[smartcode_project:default project_id=152125 project_image_fid=363782]</p>

<p>Beyond the building itself, the location places residents within easy reach of several of Chermside's key amenities. Bradbury Park is around 350 metres away, while Westfield Chermside is approximately 1.3 kilometres from the site. The Prince Charles Hospital is located within 750 metres, and the Chermside Bus Interchange is around 1.5 kilometres away, providing connections across Brisbane.</p>

<p>Parkdrive Apartments adds to the growing residential pipeline in Chermside, a suburb that continues to evolve as a major retail, healthcare, and transport hub for Brisbane's north.</p>

<p>[smartcode_project_cta:default project_id=152125]</p>


Ausdev introduces boutique Parkdrive Apartments to Chermside's growing centre

<p><a href="https://www.apartments.com.au/developers/skymark-group">Skymark</a>'s boutique Cronulla development Solis has secured a 10-year Latent Defects Insurance policy through Resilience Insurance, providing buyers of the 16-residence building on Ewos Parade with structural and waterproofing protection that extends a decade beyond the building's completion.</p>

<p>Currently under construction and due for completion in late 2027, <a href="https://www.apartments.com.au/new-apartments/solis-cronulla-8-ewos-parade-cronulla-nsw-2230">Solis</a> is one of a small number of new developments in the Sutherland Shire to carry Resilience LDI coverage, a distinction that carries increasing weight as buyer confidence in the off-the-plan sector continues to be shaped by how developers stand behind their product.</p>

<p>Latent Defects Insurance, which entered the Australian market in 2022 when Resilience Insurance was approved to offer the cover, protects buyers against major structural or waterproofing defects for ten years post-completion. Unlike traditional statutory warranties, it operates as a first-resort policy, if a covered defect arises, the insurer responds directly, without the buyer needing to pursue the builder or developer through a lengthy claims process.</p>

<p>Resilience Insurance CEO Corey Nugent has noted that the product addresses something fundamental to the new apartment market.</p>

<p>"The overarching feedback from prospective buyers in the new development space is that they want more confidence and assurances around the quality of the build," Nugent says.</p>

<p>"Resilience Insurance Latent Defects Insurance not only gives them complete peace of mind for 10 years, but it shows the developer they are buying from is standing by their product."</p>

<p>[smartcode_project:default project_id=150499 project_image_fid=370898]</p>

<p>For Solis, the Resilience LDI policy adds a meaningful layer of accountability to an already considered project. The development comprises nine two-bedroom and seven three-bedroom residences, including one dual-level three-bedroom apartment, across a five-storey building on Ewos Parade, positioned between Shelly Beach and South Cronulla.</p>

<p>Garden apartments connect directly to private landscaped courtyards, while upper-level homes capture beach views to the east from level four and above.&nbsp;</p>

<p>All 16 residences include at least one balcony or courtyard, and select apartments on the upper floors feature bar areas and secondary flexible living spaces.</p>

<p>Hiba Sander, Managing Director of Skymark, says Solis offers a rare balance, nestled between the quiet beauty of secluded beaches and the lively charm of South Cronulla's esplanade.</p>

<p>"It's a place to choose your pace and live gracefully, seaside'," Sander says.</p>

<p>[smartcode_project:default project_id=150499 project_image_fid=370900]</p>

<p>The architecture, designed by <a href="https://www.apartments.com.au/architects/ida-design-group">IDA Design Group</a>'s Michael Trinh, draws from the natural erosion patterns of <a href="https://www.apartments.com.au/developments/cronulla-nsw-2230">Cronulla</a>'s sandstone headlands, translating the organic forms of the coastline into soft curves, pavilion-style massing, and a material palette chosen for longevity in a salt-tinged environment.&nbsp;</p>

<p>Textured natural stone, soft renders, and timber-look battens reference the tones of the surrounding cliffs, while the building has been oriented to maximise natural light and passive ventilation, with primary living spaces facing north and east to capture morning sun and sea breezes.</p>

<p>"At Solis, our aim was to create architecture that feels quietly confident, grounded in natural materials like stone and timber, and elevated by light and landscape," Trinh says.&nbsp;</p>

<p>"The buildings are designed to sit gently within their coastal surrounds, with expansive glazing and abundant greenery creating a seamless dialogue between inside and out."</p>

<p>[smartcode_project:default project_id=150499 project_image_fid=370897]</p>

<p>Interiors by <a href="https://www.apartments.com.au/architects/hot-black">Hot Black</a> carry the same material language through to every room. Kitchens feature integrated Gaggenau appliances, sculpted stone benchtops, and Lo &amp; Co joinery, while bathrooms feature natural stone, timber, and brushed metal finishes.&nbsp;</p>

<p>Hot Black Founder and Design Director Sophie Safrin describes the intent as one of considered restraint: "At Solis, every detail has been thoughtfully considered to create a timeless coastal retreat, calm, refined, and effortlessly liveable. From natural finishes to seamless indoor-outdoor flow, Solis offers a quiet elegance that's deeply connected to its surroundings.</p>

<p>The landscape, designed by Julian Brady of <a href="https://www.apartments.com.au/landscape-architect/sitedesignstudios">Site Design Studios</a>, treats green space as an integral part of the resident experience rather than an afterthought.&nbsp;</p>

<p>"Gentle curves and layered native plantings mirror the ebb and flow of the ocean," Julian Brady says, "creating a serene connection between architecture and place."&nbsp;</p>

<p>Coco Republic has provided bespoke furniture packages tailored to the project's coastal palette.</p>

<p>[smartcode_project:default project_id=150499 project_image_fid=370899]</p>

<p>Skymark has an established track record in the Sutherland Shire, with a portfolio spanning Cronulla, Woolooware and Burraneer that includes Isla, Sylva, Bask, Shells, Sula and Mist. Securing LDI on Solis reflects a broader shift in how the developer is positioning its buildings to buyers, at a time when Resilience Insurance expects the policy to become mandatory in New South Wales by 2028.</p>

<p>Sales at Solis are launching soon through Ray White Projects, with an official event scheduled for 11 June. Enquire for more information.</p>

<p>[smartcode_project_cta:default project_id=150499]</p>


Skymark takes out 10-year Resilience Insurance LDI at Solis Cronulla

Apartment Market

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<p>The Reserve Bank of Australia has concerns on the apartment market, warning a flood of new apartments could come onto the market in certain areas, pushing down prices and causing heavy losses for developers.</p>
<p>The concerns were voiced in its latest Statement on Monetary Policy. The central bank pointed out that residential building approvals have been almost 50 per cent higher than their long-term average over the past two years, helped by low interest rates and buoyant housing prices in the eastern states.</p>
<p>While residential building approvals, especially for higher-density apartments, have fallen in recent months, the RBA statement noted dwelling investment should hold up as developers start work on projects that are already in the pipeline.</p>
<p>It said private dwelling investment continued to grow at an above-average rate over the year, but fell unexpectedly in the September quarter, largely because poor weather disrupted construction. </p>
<p>Residential building approvals, especially higher-density dwelling approvals, have fallen in recent months (Graph 3.6). Nevertheless, the large amount of work in the pipeline should continue to support a high level of dwelling investment for the foreseeable future.</p>
<p class="p1"><a href="https://www.propertyobserver.com.au/images/2017/02/13/Graph3.6.png" target="_blank"><span style="font-size: 12.16px;">Click to enlarge</span></a></p>
<p class="p1"><span style="font-size: 12.16px;"><img src="https://www.urban.com.au/images/2017/02/13/Graph3.6.png" alt=""></span></p>
<p class="p1"><span style="font-size: 12.16px;"><a href="https://www.propertyobserver.com.au/images/2017/02/13/ResiDwellPipeline.png" target="_blank">Click to enlarge</a> </span></p>
<p class="p1"><img src="https://www.urban.com.au/images/2017/02/13/ResiDwellPipeline.png" alt="" style="font-size: 12.16px;"><span style="font-size: 12.16px;"> </span></p>
<p>The central bank pointed out that that "an approved apartment takes around three times as long to complete as a detached house".</p>
<p>It added that the longer lag between the decision to approve a higher-density dwelling and its completion makes it easier to forecast dwelling investment levels further into the future.</p>
<p>But it also "means that the impact on the supply of housing, including prices and vacancy rates, may be less predictable than in the past".</p>
<p> By late last year, the residential dwelling pipeline was equivalent to 12 per cent of GDP, and the number of dwellings yet to be completed accounted for 2.5 per cent of the country's total supply of housing.</p>
<p>"This large pipeline of work primarily reflects strong growth in building for higher-density dwellings (such as apartments)," the RBA says.</p>
<p class="p1"><a href="https://www.propertyobserver.com.au/images/2017/02/13/ResiActivity.png" target="_blank"><span class="s1">Click to enlarge</span></a></p>
<p class="p1"><span class="s1"><img src="https://www.urban.com.au/images/2017/02/13/ResiActivity.png" alt=""> </span></p>
<p>It noted the average completion time for an apartment in 2016 was around six quarters, almost three times longer than for detached houses, and twice as long as for townhouses.</p>
<p>It acknowledged the large pipeline of dwelling investment will continue to support economic activity and employment over the next couple of years.</p>
<p>But the RBA pointed out there are risks involved with the high level of activity and the shift to higher-density buildings especially as the apartment construction "is geographically concentrated, particularly in inner-city Melbourne and Brisbane".</p>
<p>Their statement also said a risk existed that developers might not be able to respond in time to signs of over-supply and waning house prices, "so a general oversupply is more likely to build up".</p>
<p>The RBA warns that "if these risks materialise, there could be an increase in the proportion of newly completed apartments that fail to settle and a rise in the share of work yet to be commenced that is not undertaken".</p>
<p>The central bank said conditions in the established housing market differ significantly across the country (Graph 3.7; Graph 3.8). </p>
<p class="p1"><a href="https://www.propertyobserver.com.au/images/2017/02/13/Graph3.7.png" target="_blank"><span style="font-size: 12.16px;">Click to enlarge</span></a></p>
<p class="p1"><span style="font-size: 12.16px;"> <img src="https://www.urban.com.au/images/2017/02/13/Graph3.7.png" alt=""></span></p>
<p class="p1"> </p>
<p class="p1"><a href="https://www.propertyobserver.com.au/images/2017/02/13/Graph3.8.png" target="_blank">Click to enlarge</a></p>
<p class="p1"><span style="font-size: 12.16px;"><img src="https://www.urban.com.au/images/2017/02/13/Graph3.8.png" alt=""></span></p>
<p>Conditions in the housing market in Sydney and Melbourne strengthened over the second half of 2016, but they have remained relatively subdued elsewhere. In the private treaty market, the average discount on vendor asking prices has decreased, but the average number of days that a property is on the market has increased from the lows of 2015, mainly reflecting developments outside Sydney and Melbourne.</p>
<p>In general, price growth for detached houses has been stronger than for apartments, particularly in the capital cities where the supply of new apartments has increased the most. </p>
<p>For example, in the second half of 2016, apartment prices declined noticeably in Brisbane while growth in prices for detached houses increased. Conditions in Perth remain particularly weak; prices and rents have continued to decline and the vacancy rate has increased further (Graph 3.9). </p>
<p>Rental growth in the rest of the country remains subdued and vacancy rates have been steady near their long-run average for some time.</p>
<p class="p2"><a href="https://www.propertyobserver.com.au/images/2017/02/13/Graph3.9.png" target="_blank"><span style="font-size: 12.16px;"><span>Click to enlarge</span></span></a></p>
<p class="p2"><span style="font-size: 12.16px;"> <img src="https://www.urban.com.au/images/2017/02/13/Graph3.9.png" alt=""></span></p>
<p class="p1"><strong>Low interest rates support demand</strong></p>
<p>The RBA said low interest rates are support housing demand.</p>
<p>"Over recent months, loan approvals have picked up, largely reflecting stronger demand from investors. Bank lending standards have been tightened over the past couple of years, which is a positive development given the already high levels of debt," it added.</p>
<p>Housing credit growth increased a little in recent months to an annualised rate of around 6½ per cent, but remains below the pace seen in 2015. The pick-up in housing credit growth reflected faster growth in credit extended to investors more than offsetting slower growth in owner-occupier credit, and has been consistent with trends in housing loan approvals (Graph 4.13).</p>
<p class="p1"><a href="https://www.propertyobserver.com.au/images/2017/02/13/Graph4.13.png" target="_blank">Click to enlarge</a></p>
<p class="p1"><img src="https://www.urban.com.au/images/2017/02/13/Graph4.13.png" alt=""> </p>
<p>The recent strength in housing loan approvals was concentrated in New South Wales and Victoria, while conditions remain weak in Western Australia (Graph 4.14), it said. The recent increase in overall housing loan approvals is consistent with a pick-up in housing price growth and turnover.</p>
<p class="p1"><a href="https://www.propertyobserver.com.au/images/2017/02/13/Graph4.14.png" target="_blank">Click to enlarge</a></p>
<p class="p1"><a href="https://www.propertyobserver.com.au/images/2017/02/13/Graph4.14.png" target="_blank"><img src="https://www.urban.com.au/images/2017/02/13/Graph4.14.png" alt=""></a></p>
<p class="p1">Average loan-to-valuation ratios are continuing to decline, reflecting the effects of tighter lending standards that were in part prompted by the measures introduced earlier by APRA.</p>
<p class="p1">According to the central bank, "a significant portion of the increase in investor credit growth is also likely to reflect the extension of credit to investors settling the payment of newly completed apartments that were purchased off the plan at an earlier time." </p>
<p class="p1">The pick-up in investor credit growth also follows reductions in interest rates through the middle of 2016. Since November, most lenders have increased fixed and some variable housing interest rates, especially for investors or borrowers with interest-only loans.</p>
<p class="p1">Three of the four major banks have increased their standard variable rates for investor loans by 7–15 basis points but have left owner-occupier rates unchanged. Two major banks also announced increases in interest rates for interest-only loans. Other lenders have increased variable lending rates to both owner-occupiers and investors by 10–15 basis points. Some lenders have indicated that they have implemented these changes in response to higher funding costs and to meet regulatory requirements, such as APRA’s guidance for a maximum growth rate on investor credit of 10 per cent. Overall, these interest rate increases are estimated to have boosted the average outstanding housing interest rate by less than 5 basis points (see Table 4.2). </p>
<p class="p1"><a href="https://www.propertyobserver.com.au/images/2017/02/13/Table4.2.png" target="_blank">Click to enlarge</a></p>
<p class="p1"><img src="https://www.urban.com.au/images/2017/02/13/Table4.2.png" alt=""></p>
<p class="p1">In addition to increasing the differential between advertised interest rates for new owner-occupier and investor loans, many lenders appear to have reduced the discretionary discounts available to new borrowers, it said.</p>
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jonathanchancellor-7SQnKwU6yx

Apartment oversupply could push down prices, hurting Melbourne and Brisbane developers: RBA

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<div>The Reserve Bank of Australia (RBA) released its Statement on Monetary Policy for February 2017.</div>
<div> </div>
<div>Lots to digest as usual!</div>
<div> </div>
<div>Firstly, and probably the most interesting part, I thought, was the section concerning inflation forecasts. </div>
<p><span>The RBA sees inflation returning to the 2 to 3 percent target range, and as such interest rates are now likely to be on hold unless the labour market deteriorates from here. </span></p>
<p><a href="https://www.propertyobserver.com.au/images/2017/02/13/RBA1.jpg">Click to enlarge</a></p>
<div class="separator">
<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/2017/02/13/RBA1.jpg" alt=""> </div>
<div> </div>
<div>Secondly, it also looks as though forecasts for growth in the economy are quite upbeat, tracking at around 3 per cent in 2017/18 and 3 per cent in 2018/19, before potentially rising further. </div>
<div> </div>
<div><a href="https://www.propertyobserver.com.au/images/2017/02/13/RBA2.jpg" target="_blank">Click to enlarge</a></div>
<p> <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/2017/02/13/RBA2.jpg" alt=""></p>
<div class="separator"> </div>
<div>Finally, housing.<br><br>There was lots to look at in terms of housing markets, although nothing particularly ground-breaking. </div>
<div> </div>
<div>Rental price growth is soft, apartment approvals are falling sharply, and turnover in the housing market is well below the average since 2008, reflecting low levels of stock on the market.</div>
<div> </div>
<div><a href="https://www.propertyobserver.com.au/images/2017/02/13/TO.jpg" target="_blank">Click to enlarge</a></div>
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<div class="separator"><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/2017/02/13/TO.jpg" alt=""></div>
<div> </div>
<div> </div>
<div>On another related point, it's interesting to see that after copping a huge amount of heat for possibly 'overstating' dwelling price growth, CoreLogic's index has now seen other data providers catch up towards a similar rate of growth.</div>
<div> </div>
<div><a href="https://4.bp.blogspot.com/-fwYuSVH_zK0/WJ1xtkyg0nI/AAAAAAAAhq4/yj9DVQpv9DcgG2YagkiH7egejLALYgDhQCLcB/s1600/RBA1.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"><a href="https://4.bp.blogspot.com/-fwYuSVH_zK0/WJ1xtkyg0nI/AAAAAAAAhq4/yj9DVQpv9DcgG2YagkiH7egejLALYgDhQCLcB/s1600/RBA1.jpg"><img src="https://4.bp.blogspot.com/-fwYuSVH_zK0/WJ1xtkyg0nI/AAAAAAAAhq4/yj9DVQpv9DcgG2YagkiH7egejLALYgDhQCLcB/s400/RBA1.jpg" width="391" height="400"></a></div>
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<div class="separator">
<em>PETE WARGENT is the co-founder of </em><a href="https://allenwargent.com/"><span class="s2"><em>AllenWargent</em></span></a><em> property buyers (London, Sydney) and a best-selling author and </em><a href="https://petewargent.blogspot.com/"><span class="s2"><em>blogger</em></span></a><em>. </em>
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Apartment approvals are falling sharply: Pete Wargent

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<p>Apartments in the Central and North Coast of New South Wales, the Gold Coast, Coffs Harbour and Melbourne are at market peak in February, according to the latest property clock from Herron Todd White. </p>
<p>Units in Adelaide, Darwin, Townsville and Whitsundays are at the bottom of the market.</p>
<p>Coffs Harbour's residential units were peaking in January. </p>
<p><a href="https://www.propertyobserver.com.au/images/2017/02/01/Screen%20Shot%202017-02-01%20at%2012.57.48%20PM.png" target="_blank">Click to enlarge</a></p>
<p><img src="https://www.urban.com.au/images/2017/02/01/Screen%20Shot%202017-02-01%20at%2012.57.48%20PM.png" alt=""></p>
<p> </p>
<p>Property Observer found this two bedroom apartment, <a href="https://www.realestate.com.au/property-unit-nsw-sawtell-124657638" target="_blank">9/69 Boronia St Sawtell</a> (below) listed for sale for $345,000. It last traded for $195,000 in 2013.</p>
<p><img src="https://www.urban.com.au/images/2017/06/Screen%20Shot%202017-02-06%20at%2011.07.18%20AM.png" alt=""></p>
<p>A two bedroom apartment, <a href="https://www.realestate.com.au/property-apartment-nsw-coffs+harbour-124474918" target="_blank">2/4 Solitary St Coffs Harbour</a>, (below) is on the market for $395,000, having last sold for $308,500 in 2007.</p>
<div id="listing_header">
<h1><span><img src="https://www.urban.com.au/images/2017/06/Screen%20Shot%202017-02-06%20at%2011.10.26%20AM.png" alt=""></span></h1>
A two bedroom apartment at <a href="https://www.realestate.com.au/property-apartment-nsw-coffs+harbour-124425778" target="_blank">20/22 Orlando Street</a> (below) that has been listed for sale for $615,000.</div>
<div> </div>
<div>It last sold for $395,000 in 2013.</div>
<div> </div>
<div><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/2017/06/20_22%20Orlando%20Street.jpg" alt=""></div>
<div>  </div>
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Apartments along NSW coastline top of February property clock: HTW

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<p>GUEST OBSERVER</p>
<p>Lenders failing to provide off the plan apartment purchasers with a funding pre-approval which lasts until settlement could prove costly for thousands of buyers in Victoria.</p>
<p>Victorians who bought off the plan apartments scheduled to be completed this year face losing their deposits due to new design standards requiring more space.</p>
<p>The big four banks have made a policy in line with the new standards by refusing to lend for one-bedroom apartments smaller than 50 sqm.</p>
<p>The situation is unfair as banks had applied different standards for the developers of the apartment projects.</p>
<p>If banks are prepared to fund a development for construction then they should take the same stance on providing finance when it comes to the buyers of those off-the-plan apartments.</p>
<p>Many Melbourne apartment projects due to be completed in 2017 were designed in 2014 or prior, before the discussions about the new designguidelines had even been made public.</p>
<p>The banks should be offering to fund the buyers of those apartments under the same policy that exists when the construction started.</p>
<p>Buyers of off-the-plan apartments should be able to go to the bank that funds the construction and take out a pre-approval that will last them until settlement.</p>
<p>This reduces a part of the risk for the buyer as they don’t have finance risk. It also reduces problems for the developer as they don’t have settlement risk and overall it’s a win/win situation for the bank.</p>
</div>
<div>
<p><em>Mark Mendel, is founder and chief executive officer of iBuyNew.com.au and can be contacted <a href="https://www.ibuynew.com.au/">here.</a></em></p>
</div>
<div> </div>
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Lender design stance just hurts buyers: iBuyNew's Mark Mendel

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<p class="p1"><span class="s1">While Sydney suburbs dominated CoreLogic’s top 10 list that looked at the biggest change in median values for units in the 12 months to September 2016, Melbourne too figured prominently with Carrum at number six.</span></p>
<p class="p1"><span class="s1">Carrum (postcode 3197) had a median unit price of $552,017 with a change of 26.3 percent over the same period, according to CoreLogic’s Best of the Best 2016 report. There were a 80 deals during the period.</span></p>
<p class="p1"><a href="https://www.propertyobserver.com.au/images/2017/01/11/Screen%20Shot%202017-01-11%20at%209.40.46%20AM.png" target="_blank" style="font-size: 12.16px;">Click to enlarge</a></p>
<p><img src="https://www.urban.com.au/images/2017/01/11/Screen%20Shot%202017-01-11%20at%209.40.46%20AM.png" alt=""></p>
<p>Property Observer looked up some sales around the median price.</p>
<p class="p1"><span class="s7" style="font-size: 12.16px;">A two-bedroom unit at <a href="https://www.realestate.com.au/sold/property-unit-vic-carrum-122706622" target="_blank">2/13 True Avenue, </a></span><span class="s6" style="font-size: 12.16px;"><a href="https://www.realestate.com.au/sold/property-unit-vic-carrum-122706622" target="_blank">Carrum, Vic 3197</a> sold for $550,000 in June 2016 through Harcourts. It previously sold in 2015 for $400,000, according to RP Data, reflecting a change in value of 37.5 percent in just over a year.</span></p>
<p class="p2"><span class="s6" style="font-size: 12.16px;"> <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/2017/01/16/Carrum2.jpg" alt=""></span></p>
<p class="p4"><span class="s1" style="font-size: 12.16px;">A three-bedroom unit at </span><a href="https://www.realestate.com.au/sold/property-apartment-vic-carrum-121649046" target="_blank" style="font-size: 12.16px;"><span class="s2">7/36 Melaluca, </span><span class="s3">Carrum, Vic 3197</span></a><span class="s4" style="font-size: 12.16px;"> sold for </span><span class="s5" style="font-size: 12.16px;">$540,000 in 2016 after being on the market for 603 days, according to RP Data. Its last listed price was $598,000, according to RP Data. </span></p>
<p class="p4"><span class="s5" style="font-size: 12.16px;"><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/2017/01/16/Carrum.jpg" alt=""></span></p>
<p><span class="s5">Melbourne's only other entrant on the list was Keysborough. </span></p>
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Carrum ranked second best price growth suburb for units in Melbourne in 2016

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<p class="x_MsoNormal" style="text-align: left;" align="center">GUEST OBSERVER</p>
<p class="x_MsoNormal"><span>Houses outshone units across Melbourne in 2016, but 2017 may well be the year of the apartment for the astute investor.</span></p>
<p class="x_MsoNormal">Period- or older-style apartment performance was sluggish in 2016 across Melbourne, with activity, rental and capital growth rates measured relative to houses. There was a dampening effect caused by an excessive boom in the high-rise or multi-unit sector over recent years.</p>
<p class="x_MsoNormal"><span>But it is evident from ABS financing and building approval numbers that the much-needed correction in the multi-unit sector has begun, and prices and volumes of new supply in this category will continue to shrink over 2017.</span></p>
<p class="x_MsoNormal"><span>Consequently, there is a strong case to be made that period style apartments are undervalued at the moment. Indeed, with investors looking for safer assets in 2017, we anticipate a rush-to-quality out of high rise and into older-style apartments and houses.</span></p>
<p class="x_MsoNormal"><strong><span>Growth continues in 2017. Around 5 to 10 percent in inner suburbs.</span></strong></p>
<p class="x_MsoNormal"><span>Although residential property has performed strongly in Melbourne over the last four years, don’t be surprised if 2017 sees further growth.</span></p>
<p class="x_MsoNormal"><span>Underpinning this view is evidence of persistent buyer demand off the back of lower interest rates, and a shortage of stock on the market. This shortage of stock is essentially the result of four years of buoyant sales volumes exhausting the pool of discretionary vendors. Eventually, one would expect potential sellers to respond positively to the price growth signal out there, but it hasn’t happened yet, and it may not eventuate until sometime in mid-2017.</span></p>
<p class="x_MsoNormal"><span>Furthermore, the broader fundamentals of the market remain benevolent:  a rising population, a relatively steady economy – with unemployment appearing to be stabilising around 6% – and, of course, low interest rates.</span></p>
<p class="x_MsoNormal"><span>In-demand property types in the inner and middle ring suburbs should record solid capital growth of around 5 to 10 per cent in 2017. But lower-demand properties in the high rise CBD sector and outer suburban areas will see little growth.</span></p>
<p class="x_MsoNormal"><strong><span>Paul’s tips for those considering property in 2017.</span></strong></p>
<p class="x_MsoNormal"><strong><span>Don’t procrastinate</span></strong><span>. The Melbourne auction market remained unusually active right up to the final weekend of the year. This augurs well for 2017, as our experience is that a late end-of-year run invariably heralds a good start to the following year. If you are a prospective buyer, don’t make the mistake of waiting to see what happens in February and March before jumping in. You may find that property prices are 5 per cent higher in April than they finished 2016.</span></p>
<p class="x_MsoNormal"><strong><span>Don’t place too much weight on overseas events.</span></strong><span> The commentariat spent much of November and December agonising over the implications of the coming Trump presidency. Just know that the Australian property market has been subject to numerous external shocks that were supposed to damage it  – the GFC, the tech wreck, wars and international terrorist events – and didn’t.</span></p>
<p class="x_MsoNormal"><strong><span>Focus on what you can control.</span></strong><span> Whilst you can’t control what happens to the world economy or who is in the White House, you can control the property assets that you invest in.  Make getting that right your priority. Focus on selecting high quality property with a track record and propensity for capital growth.</span></p>
<p class="x_MsoNormal"><em>Paul Nugent is a director of Wakelin Property Advisory and can be contacted <a href="https://www.wakelin.com.au" target="_blank">here</a>. </em></p>
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Investors will rediscover value in period-style Melbourne apartments: Paul Nugent

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<div id="post-body-8331073014349855294" class="post-body entry-content">
<div>One should typically expect to see vacancy rates rise in December and January, and nationally vacancy rates were up to 2.8 per cent before Christmas according to SQM Research. </div>
<div> </div>
<div>The increase was largely driven by Brisbane, which jumped to 3.7 percent.  </div>
<div class="separator"> </div>
<div class="separator"><a href="https://www.propertyobserver.com.au/images/2017/01/17/VR.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"> </div>
<div class="separator"><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/2017/01/17/VR.jpg" alt=""></div>
<br><div>As these numbers aren't seasonally adjusted it's technically 'chart crime' to smooth them over a few months, but nevertheless this can help to give a sense of the trend. </div>
<div> </div>
<div><a href="https://www.propertyobserver.com.au/images/2017/01/17/VR2.jpg" target="_blank">Click to enlarge</a></div>
<br><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/2017/01/17/VR2.jpg" alt=""><br><br><div>We expect to see seasonal spikes in vacancy rates in suburbs such as Indro, Toowong, and perhaps Milton, at least in part because there are fewer students around over the summer break. </div>
<div> </div>
<div>The tasty action is happening in the construction hubs such as the Valley and Newstead...</div>
</div>
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<a href="https://www.propertyobserver.com.au/images/2017/01/17/4006.jpg" target="_blank">Click to enlarge</a><br><div class="separator"> </div>
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<div><span style="text-decoration: underline;"><em> </em></span></div>
<div><span style="text-decoration: underline;"><em>Source: SQM Research</em></span></div>
<br><div>And especially South Brisbane and West End, though the student effect is a part of this December jump too.</div>
<div> </div>
<div><a href="https://www.propertyobserver.com.au/images/2017/01/17/4101.jpg" target="_blank">Click to enlarge</a></div>
<br><div class="separator"><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/2017/01/17/4101.jpg" alt=""></div>
<br><div><em><span style="text-decoration: underline;">Source: SQM Research</span></em></div>
<div><span> </span></div>
<div>The trend is not the landlord's friend in these areas, with several thousand more inner city apartment completions expected to come onstream before the end of June. </div>
<div> </div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
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Where Brisbane landords face rental challenges in 2017: Pete Wargent

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<p><span>Oversupply is slated to effect the Brisbane apartment with price growth for 2017 predicted between -4 to zero percent, according to HSBC.</span></p>
<p><span>Paul Bloxham, HSBC senior economist said there will be limited effect on the detached house market due to the lack of substitutability. </span></p>
<p><span>"A key difference for the Brisbane market, when compared with Melbourne, is that housing price growth has been far more limited than in Melbourne, which could limit the scope for significant price falls," he said.</span></p>
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Apartment oversupply to drive Brisbane prices: Paul Bloxham's 2017 forecast

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<p>The asking price for a one bedroom unit in Perth has been discounted from $320,000 in September to $250,000 according to SQM Research.</p>
<p>SQM Research managing director Louis Christopher said the Perth vacancy rate is very high at 7.3 percent and looks like it could be going up still, while<a href="https://sqmresearch.us5.list-manage1.com/track/click?u=9badbd870addb4af72206c2eb&amp;id=fe3dc22b2f&amp;e=0aab96dc54"> </a>asking rents for units are well down over the past three years.</p>
<p>"Back in September, the owner of 1019/305 Murray Street wanted $320,000. Now, after successive price drops, the price tag for this one-bedroom unit has dropped to $250,000, so you could be bagging a bargain," he said.</p>
<p>"There is some very sobering news on the Perth CBD.</p>
<p>"A<a href="https://sqmresearch.us5.list-manage1.com/track/click?u=9badbd870addb4af72206c2eb&amp;id=df8a1d628b&amp;e=0aab96dc54">s</a>king prices for some units are up and look like they could be bottoming. Given the big discount of $70,000, it may be worth a look. But if you're a landlord looking to invest, you might be scratching around for tenants for some time, as business activity in Perth remains depressed due to the mining downturn, keeping the vacancy rate well up."</p>
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Perth one bedder listed at $250k: SQM Research

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<p>Liberal politician Tim Wilson has leased his one bedroom apartment in the middle of South Yarra for $500 a week.</p>
<p>He's lived the South Yarra lifestyle for six years but he and partner Ryan Bolger have moved following Wilson gaining preselection for the Liberal seat of Goldstein.</p>
<p>The <a href="https://www.hockingstuart.com.au/UNIT_5_11-21_MARNE_STREET_SOUTH_YARRA_VIC_3141_LEASED" target="_blank">art deco apartment</a> (above) in the Castle Towers building is located between Fawkner Park and the Royal Botanical Gardens.</p>
<p>Wilson paid $560,000 in 2010 for the apartment.</p>
<p>According to <em>The Australian</em>, they are off to Sandringham.</p>
<p>The couple paid $755,000 for the 1975 unit.</p>
<p>The two bedroom street front villa had a price guide of $780,000.</p>
<p>It sold through Chisholm&amp;Gamon agents Sarah Eckert and Len Sharp.</p>
<p> </p>
<p> </p>
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