Design-led developer-builder Lowe Living has unveiled its latest residential development, Jardin House, marking its first foray into Melbourne's blue-chip City of Boroondara.

Located a short walk from Camberwell Junction, <a href="https://www.apartments.com.au/new-apartments/jardin-house-by-lowe-living-camberwell-335-camberwell-road-camberwell-vic-3124">Jardin House</a> has been designed to appeal to affluent local downsizers and established families seeking a low-maintenance alternative to the large homes that have long defined Camberwell and surrounding suburbs.

The project will comprise a collection of two and three-bedroom apartments ranging from 92 sqm to 280 sqm, alongside a limited number of penthouse residences featuring rooftop terraces spanning more than 100 sqm, with optional private pools.

&nbsp;

[smartcode_project:default project_id=146717 project_image_fid=372212]

Lowe Living Co-Founder and Managing Director Tim Lowe said Camberwell represented a natural next step for the developer as it expands into some of Melbourne's most tightly held residential markets.

"Jardin House is an important project for our team as it marks the next evolution of our portfolio into different well-established blue-chip pockets of Melbourne," Lowe said.

"Camberwell, with its incredible walkability, family-led neighbourhood feel and superb access to education and transport, makes it a natural choice for us."

[smartcode_project:default project_id=146717 project_image_fid=372227]

Designed by Tristan Wong Architects, with interiors by Hecker Guthrie and landscaping by Acre, the development takes inspiration from the Art Deco architecture that remains a defining feature of many of Camberwell's established streets.

A curved facade, arched openings, textured brickwork and sculpted forms reference the suburb's architectural heritage, while extensive landscaping softens the building's presence and creates a strong connection to the surrounding tree-lined streetscape.

The project will be set behind a secure gated entrance, with residents arriving through landscaped gardens designed to create a transition between the public realm and private residences.

Inside, the residences feature natural stone and timber finishes, full-height glazing, Miele appliances and generous open-plan living areas designed for long-term owner occupation.

[smartcode_project:default project_id=146717 project_image_fid=372225]

While the apartments themselves have been designed to attract discerning owner-occupiers, it is the amenity offering that sets Jardin House apart from many other boutique projects currently launching across Melbourne.

The centrepiece is a 350 sqm private bathhouse curated in partnership with Aurora Spa &amp; Bathhouse founder Lyndall Mitchell.

The wellness precinct includes mineral pools, hydrotherapy experiences, a Himalayan salt room, sauna, steam room, cold plunge pools and dedicated relaxation spaces, creating what Lowe Living describes as a private wellness retreat exclusively for residents.

[smartcode_project:default project_id=146717 project_image_fid=372222]

The collaboration follows Lowe Living's recent partnership with Aurora at Maison Savoy in Brighton, although Jardin House is the first project to incorporate both indoor and outdoor wellness experiences.

Emma Lowe, Co-Founder and Managing Director of Lowe Living, said wellness was becoming an increasingly important consideration for apartment buyers.

"Collaborating with Lyndall Mitchell from Aurora Spa &amp; Bathhouse for a second time is an intentional nod to creating residences that are more than just homes, but a way to enrich the lives of our residents through wellness and longevity," Lowe said.

The amenity offering is complemented by a Technogym fitness studio, residents' lounge, private dining spaces and concierge services.

The launch comes as developers increasingly target Melbourne's established eastern suburbs, where rising land values, ageing housing stock and growing downsizer demand are creating opportunities for boutique apartment projects.

Lowe said the company expects significant generational wealth transfer across suburbs such as Camberwell in coming years, creating further demand for luxury apartment living.

"Camberwell is a blue-chip suburb where homes regularly transact for multiple millions of dollars," he said.

"The generational change of wealth in these locations expected in the coming years is significant, so we see an opportunity to create exclusive residences that appeal to older families and downsizers in order to meet this demand."

Apartments at Jardin house start from $1,195,000. The project forms part of Lowe Living's near-$1 billion portfolio of new developments across Melbourne.

[smartcode_project_cta:default project_id=146717]

Joel Robinson

Lowe Living launches Jardin House in Camberwell

As <a href="https://www.apartments.com.au/developments/north-sydney-nsw-2060">North Sydney</a> continues its transition from a commercial centre into a more layered residential and lifestyle precinct, a new generation of apartment developments is reshaping expectations around scale, amenity, and long-term liveability.

Improved transport connections through the Victoria Cross Metro, continued investment in dining and public spaces, and a constrained supply of new luxury apartments have sharpened demand for homes that combine proximity to the CBD with the privacy and outlook traditionally associated with harbourside houses.

At 177 Walker Street, <a href="https://www.apartments.com.au/developers/aland">ALAND</a>’s new apartment development <a href="https://www.apartments.com.au/new-apartments/the-walden-north-sydney-177-walker-street-north-sydney-nsw-2060">The Walden</a> enters the market with a distinctly residential approach to high-rise living. The 30-level tower will deliver 161 residences, ranging from one-bedroom apartments through to sub-penthouses and a full-floor penthouse, all oriented to capture uninterrupted views across Sydney Harbour, the Opera House, and out toward the Pacific Ocean.

[smartcode_project:default project_id=134323 project_image_fid=6395]

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, the project takes advantage of the site’s natural topography and elevated position above the harbour. Rather than relying on density alone, the architecture focuses on outlook, orientation, and spatial flow, with every apartment occupying a corner position to maximise natural light and cross ventilation.

Rothelowman says the site itself shaped much of the architectural response.

“The site has a long history in terms of its inevitable transformation and when we came in, we took inspiration from the idea of reestablishing a sense of the site’s natural terrain and fall. Our scheme aims to integrate with the terrain and the landscape, using the undulating site to slowly reveal glimpses and views of the harbour. The rotation of the tower off grid means every apartment has a view and is naturally cross ventilated. The building's colour palette is quintessentially Sydney, with bronze and sandstone and a luminescent green colour in the glass, making it very earthy and grounded in its location.”

[smartcode_project:default project_id=134323 project_image_fid=6399]

Inside the residences, the emphasis moves toward larger-format living typically associated with standalone homes. Kitchens sit at the centre of the apartments, connecting directly to open-plan dining and living areas before extending outward into expansive winter gardens and balconies. Calacatta marble, bespoke joinery, integrated appliances, and custom metal detailing are used throughout, while three distinct interior palettes, Terrace, Opera, and Harbour, allow buyers to personalise the spaces without compromising the architectural consistency of the project.

The larger residences place particular attention on separation between entertaining and private zones. In many apartments, master suites occupy the outer corners of the floorplates, allowing bedrooms to benefit from floor-to-ceiling glazing and harbour outlooks independent of the living spaces. Dressing rooms and ensuites continue the material palette through fluted detailing, freestanding baths, and layered stone finishes.

Rothelowman says the design intent centred on creating homes that feel enduring rather than transient.

“Our philosophy is all about the way people live in these spaces, and we wanted to create homes that reflect the quality of life in this unique Sydney location. The apartments showcase expansive living spaces that are generous, sophisticated, and bold, with the ability to connect with views throughout each apartment.”

[smartcode_project:default project_id=134323 project_image_fid=353235]

A separate four-storey amenity building known as The Pavilion expands the residential offering beyond the apartments themselves. Positioned alongside the tower, the building consolidates wellness, recreation, and social spaces into a dedicated resident retreat. Facilities include a 20-metre rooftop pool and sundeck, sauna, spa, ice bath, wellness studio, gymnasium, concierge service, wine cellar, residents’ lounge, private dining spaces, and dedicated co-working areas with meeting rooms and boardroom facilities.

The amenity mix reflects the buyer profile emerging in North Sydney, where owner-occupiers and downsizers are increasingly prioritising convenience, apartment scale, and long-term usability over purely investment-driven decisions.

The Walden also represents a significant milestone for ALAND, marking the company’s first major move into Sydney’s inner-city luxury apartment market after more than two decades delivering large-scale residential communities across Greater Sydney. Founder Andrew Hrsto says the Walker Street site stood apart because of both its positioning and its rarity.

[smartcode_project:default project_id=134323 project_image_fid=6390]

“As a company, we had been searching for a site in one of Sydney’s blue-chip locations, spanning the Eastern Suburbs, the Sydney CBD and the North Shore, and when we had the opportunity to purchase this site, we immediately recognised that it could be something iconic.”

At launch, The Walden recorded more than $103 million in sales, with buyers drawn to the project’s harbour positioning, apartment scale, and proximity to the Metro, which now connects North Sydney to Barangaroo in three minutes and Martin Place in five.

ALAND has commenced construction, and is expecting a completion date in 2028.

[smartcode_project_cta:default project_id=134323]

The Walden pairs house-scale living with North Sydney connectivity

The ACT will become the first jurisdiction in Australia to abolish stamp duty for all first home buyers, with no income caps and no property price thresholds from 1 July.

The move, announced as part of the ACT Budget, completes a key election commitment from the Barr Government and removes what Chief Minister Andrew Barr described as one of the biggest barriers to entering the housing market. The reform forms part of the ACT's long-running transition away from transaction taxes and towards a broader-based property tax system.

"This budget marks a major milestone in our long-term tax reform program," Barr said, adding that the government had maintained a sustained focus on removing barriers to home ownership. He said stamp duty had long been one of the largest upfront hurdles facing buyers and that from July, "that barrier is gone" for first home buyers in the Territory.

[smartcode_project:default project_id=139989 project_image_fid=350986]

The changes come alongside a range of measures designed to encourage new housing supply, including support for the delivery of so-called "missing middle" housing such as terraces, townhouses and low-rise multi-unit developments.

The announcement has renewed debate around whether the ACT's approach could provide a blueprint for improving housing affordability nationally.

New research from OurTop10.com.au, conducted by Primara Research, suggests the Territory's decade-long reform agenda has produced outcomes unmatched elsewhere in Australia.

While stamp duty costs have increased by an average 67 per cent nationally over the past decade, the ACT has recorded growth of just 15 per cent, the lowest increase of any jurisdiction.

The Territory has also emerged as one of the strongest performers on housing delivery. Based on population-weighted housing targets, the ACT is sitting less than one per cent behind its target. Victoria is the next closest at seven per cent behind, while the national average sits 25 per cent below target. New South Wales is tracking 39 per cent behind.

The latest reform removes one of the final barriers facing first home buyers in Canberra.

[smartcode_project:default project_id=139989 project_image_fid=359152]

The average Australian home buyer currently pays $61,714 in stamp duty. In the ACT, that figure is $38,399 despite the Territory having the third-highest median house price in the country.

Until now, the ACT's first home buyer concession scheme only applied to purchases up to $1.02 million, around $51,000 below Canberra's median house price of $1.071 million. In practical terms, many first home buyers were unable to access the median-priced home without losing the concession.

From July, those restrictions disappear.

Every first home buyer in the ACT will pay no stamp duty, regardless of income or purchase price.

Canberra remains one of Australia's most expensive housing markets, with dwelling values increasing 82 per cent over the past decade. However, that growth ranks only 11th among Australia's 15 major housing markets, suggesting affordability pressures have been less severe than in many other parts of the country.

Simon Ma, CEO of OurTop10.com.au, said the latest reforms recognise that many first home buyers have simply outgrown thresholds set years ago.

"Many first home buyers aren't just looking for a way onto the ladder, they want a home their family can actually live in," Ma said.

"In a market where the median house price is over a million dollars, a concession scheme that cuts out at $1.02 million was never going to get them there.

"Removing the ceiling entirely means ACT first home buyers can now pursue the home they actually want, rather than limiting themselves to a price point designed for a very different market."

Whether other states follow remains to be seen. But at a time when most jurisdictions are struggling to improve affordability while also increasing housing supply, the ACT has quietly become the national test case for both.

15% stamp duty growth. Just 1% off the national housing target. Zero stamp duty for FHBs. Is the ACT the blueprint for the great Australian dream?

ACT abolishes stamp duty for first home buyers

A rooftop pool and spa overlooking the Brisbane CBD, private dining spaces, expansive landscaped gardens and a residents' lounge are set to crown <a href="https://www.apartments.com.au/new-apartments/callista-on-park-west-end-49-mollison-street-west-end-qld-4101">Callista on Park</a>, the final residential building within Brisbane's West Village precinct.

The rooftop amenity collection has been designed as an extension of the lifestyle already established throughout West Village, providing residents with a series of indoor and outdoor spaces that capitalise on the building's elevated position above West End.

A swimming pool and heated spa form the centrepiece of the rooftop offering, surrounded by landscaped gardens developed through a collaboration between developer Sekisui House and ASPECT Studios. The design incorporates expansive lawn areas surrounded by English garden-inspired planting.

[smartcode_project:default project_id=134800 project_image_fid=370648]

Residents will also have access to two barbecue and outdoor dining areas positioned to take advantage of views across Brisbane's skyline, neighbouring Mollison Park, and the surrounding inner-city landscape.

For larger gatherings, the rooftop includes a private dining room centred around a substantial stone island bench, complete with a full kitchen and a 10-seat dining table set beneath four-metre-high ceilings. The space has been designed to overlook both the rooftop gardens and the Brisbane CBD skyline.

A separate residents' lounge provides an additional indoor retreat connected to the broader rooftop amenity offering, creating another space for residents to work, relax or entertain guests.

[smartcode_project:default project_id=134800 project_image_fid=370647]

The attention to detail extends beyond the rooftop.

Upon arrival, residents will enter through a lobby featuring a bespoke ceiling light installation developed in collaboration between Sekisui House and Alcorn Middleton Architecture. The arrival experience is complemented by private resident mailboxes and carefully considered interior finishes designed to reflect the premium positioning of the building.

[smartcode_project:default project_id=134800 project_image_fid=372541]

The amenity offering forms part of Callista on Park, the final residential release within the decade-long transformation of the former Peters Ice Cream Factory site into West Village, one of Brisbane's most established mixed-use communities.

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> and being delivered by <a href="https://www.apartments.com.au/builders/hutchinson-builders">Hutchinson Builders</a>, Callista represents the most premium residential offering within the masterplanned precinct.

Construction is now entering its final stages, with scaffolding beginning to come down and completion expected in the first quarter of 2027.

Prices for the three-bedroom plus MPR apartments start from just over $2.6 million.

[smartcode_project:default project_id=134800 project_image_fid=351535]

Callista will mark the final opportunity to purchase within West Village, where residents have direct access to more than 35 retail, dining, wellness and medical operators including Harris Farm Markets, Woolworths, Function Well and Goodlife Health Clubs, Metro Arts, and a growing collection of restaurants and cafés.

Located just 800 metres from the Brisbane CBD, the precinct also places residents within walking distance of South Bank, West End's dining scene, riverfront parklands and major public transport connections.

For Sekisui House, which has delivered more than two million homes globally, Callista serves as the concluding piece of the West Village masterplan, bringing together the precinct's heritage character, parkland setting and emphasis on walkability in a final collection of larger-format residences.

[smartcode_project_cta:default project_id=134800]

Rooftop pool, private dining and skyline gardens to crown West Village's final apartment release, Callista on Park

<a href="https://www.apartments.com.au/developments/wahroonga-nsw-2076">Wahroonga</a>’s enduring appeal has long been tied to its balance of bushland, established amenity, and access to some of Sydney’s most respected education and healthcare institutions.

Along Fox Valley Road, that combination is becoming increasingly sought after by buyers looking to remain connected to the Upper North Shore lifestyle while prioritising walkability, wellbeing, and convenience.

Developer Capital Corporation's initial vision of a 62-hectare site on Fox Valley Road was that they could create their own walkable community, bordered by&nbsp;more than 25 hectares of bushland and adjoining Coups Creek.

<img alt="Wahroonga" data-entity-type="file" data-entity-uuid="b84917a1-0d75-49b9-888c-ddf7ebfd6692" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/NEW2026_Wahroonga_Walkway.gif?VersionId=Gk3_xi5ssYfalmwuQQ5umQakddceC31j" />

<a href="https://www.apartments.com.au/new-apartments/the-residences-at-wahroonga-estate-169-fox-valley-road-wahroonga-nsw-2076">The Residences at Wahroonga Estate</a> draws directly on the area’s natural landscape, with walking trails and green corridors linking into sections of Lane Cove National Park. The surrounding network of bushwalks, cycling tracks, and reserves reinforces the suburb’s long-standing reputation as one of Sydney’s most nature-oriented residential pockets, while still maintaining close ties to village retail and transport infrastructure.

The address places residents within minutes of Wahroonga and Turramurra villages, where cafés, local grocers, boutiques, and everyday services support a highly localised lifestyle. Popular nearby venues including The Fox Café and Breeze Valley Café provide easy options for morning coffee or casual dining, while longstanding retailers such as IGA Wahroonga Fresh and Novella Fine Books continue to anchor the area’s village character.

&nbsp;

<img alt="Wahroonga" data-entity-type="file" data-entity-uuid="c4a950f7-4f05-4370-b360-b106359788e5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/2026_Wahroonga_Entry_Gates.gif?VersionId=7n5kh9ymu.azYEYDemJkPgiIAfSw44oj" />

Healthcare access remains one of the defining locational advantages of the estate. Sydney Adventist Hospital, known locally as The San, sits directly adjacent and is one of the largest and most respected private hospitals in New South Wales. The hospital precinct incorporates specialist medical services, radiology, physiotherapy, and outpatient care, contributing to growing buyer demand from downsizers and owner-occupiers seeking long-term convenience and peace of mind.

Research commissioned by Capital Corporation found that health and wellbeing considerations are increasingly influencing downsizing decisions, particularly among buyers wanting to remain within familiar neighbourhoods while accessing medical infrastructure more easily.

Education has also historically underpinned demand across Wahroonga and the broader Upper North Shore. The estate sits close to several of Sydney’s leading private and independent schools, including Knox Grammar, Abbotsleigh, Barker College, Pymble Ladies’ College, Ravenswood School for Girls, and Loreto Normanhurst. Co-educational options including Wahroonga Adventist School and Sydney Adventist School further strengthen the area’s appeal to established families looking for long-term schooling pathways within a tightly held catchment.

[smartcode_project:default project_id=135247 project_image_fid=262183]

Transport connectivity supports the suburb’s liveability without compromising its quieter residential character. Wahroonga and Turramurra train stations provide direct rail access into the Sydney CBD, while the nearby Pacific Highway and M1 motorway strengthen links across the North Shore and broader metropolitan area. At the same time, the heavily treed streetscape and low-density character continue to distinguish the precinct from more urbanised parts of Sydney.

The Residences at Wahroonga Estate forms the first stage of <a href="https://www.apartments.com.au/developers/capital-corporation">Capital Corporation</a>’s broader masterplanned vision for the precinct, delivered alongside the Seventh-day Adventist Church.

[smartcode_project:default project_id=135247 project_image_fid=364995]

Designed by <a href="https://www.apartments.com.au/architects/group-gsa">GroupGSA</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/coco-republic-interior-design">Coco Republic</a>, the development integrates landscaped communal spaces including a pet-friendly Green Spine, resident lounge, BBQ pavilion, and direct bushland access, reinforcing the project’s focus on outdoor connection and community-based living.

Now under construction by Gold Star iCIRT-rated builder <a href="https://www.apartments.com.au/builders/dasco-australia">DASCO</a>, The Residences at Wahroonga Estate will deliver a collection of one, two, and three-bedroom apartments priced from $990,000, with completion anticipated in 2027.

[smartcode_project_cta:default project_id=135247]

Capital Corporation to cater to Upper North Shore downsizers by creating walkable community at The Residences at Wahroonga Estate

Arek Drozda

<html><body>
GUEST OBSERVATION
Residential property is <a href="https://www.propertyobserver.com.au/residential/a-roof-over-your-head-or-the-biggest-investment-you-ll-ever-make-how-should-we-treat-residential-property/2014020967655" target="_blank">considered an investment class</a> and, as such, it is subject to market cycles where prices fluctuate over time.
Being aware of the stage of the market cycle can help in timing purchase and sale decisions.
However, it is rather difficult to gauge the state of the market and its future direction by examining only historical prices, even if these are reported on a daily basis - as is the case with RP Data's Home Value Index. Periods of rises and falls in prices are of different durations and subsequent movements can have very different magnitudes.
Frankly speaking, the dynamics of the Australian real estate market are very little understood despite its value exceeding more than threefold the capitalisation of all companies listed on the Australian Securities Exchange. Financial institutions are not investing in it directly hence long term research on performance and cycles is almost non-existent, or at least not available to the public. 
True, we do have various, raw measures of price movement, reports on auction clearance rates, vacancy rates, intentions to buy, asking prices, or various affordability indexes but these were developed primarily in support of valuation or risk management activities of lenders and insurers, or for the purpose of economic modelling, and not necessarily to help in decision making by individuals. Besides, each of these measures on its own gives only a partial picture of the market.
Traders in shares, bonds, currencies and similar financial instruments have developed a myriad of secondary “technical indicators” to aid in recognition of prevailing market cycles and trends. There are no such indicators available for buyers and sellers of residential properties.
The only thing that comes close to a true market gauge is the concept of a “property clock” but it tends to be very subjective and readings often differ from one commentator to another. In other words, we are missing a truly analytical perspective on the state of the property market.
To address the lack of consistent, long term analytical measures that help understand the state of property market in Australia, I have compiled a set of unique indicators which I would like to share with you on a regular basis.
The aim of this first set of indicators is to provide a broad perspective on the national property market as a whole. Peculiarities of local markets will be assessed with another set of indicators which I intend to publish at a later date.
About the Indicators
The first two indicators in the set (buy-rent indicator and purchase affordability indicator) provide objective measures of relative attractiveness of residential real estate to prospective buyers. In other words, whether there is a potential incentive, “value” if you like, for prospective buyers to consider buying a property or not.
The third indicator, economic wellbeing indicator, reflects perceptions of Australians about the economy. Since people are more inclined to commit to a substantial purchase if they have a positive outlook on the economy, this indicator evaluates the likelihood of people committing to property purchases.
The fourth indicator, private housing credit impulse, measures what people are actually doing. That is, whether perceptions about the value of owning a property and outlook on the economy translate to actual purchases or not.
The fifth indicator, property prices gauge, aims to forecast how the collective actions of buyers will likely impact property prices and whether actual change in prices is proportionate to the volume of money flowing into the property market at any given time.
Actual prices feed back into the value proposition, as reflected in the first two indicators, which closes the information loop. This is the minimum set of indicators that allows drawing a definite conclusion on the overall state of the property market now and in the recent past.
The indicators are calculated back to mid 1980’s and where possible I publish them with a reference to the change in prices of established houses (as reported by the Australian Bureau of Statistics) to show how well they reflect the reality over time. I will provide my interpretation of the latest results, a bit more extensively than usual in this first edition, but please feel free to derive and share your own conclusions via comments.
A short explanation of some conventions to help in interpreting the information:
<ul>
<li>
Market outlook can be: positive, positive with negative bias, neutral with positive bias, neutral, neutral with negative bias, negative with positive bias and negative 
</li>
<li>
Charts are labelled as:
</li>
</ul>
Estimate – if data estimates are used in calculations of the latest measure,
Preliminary – if mix of actual and estimated data is used to calculate the current measure, and
Final – where all inputs are actual data.
Caveat
The information is provided in good faith and does not constitute financial advice. Use with caution and at own risk.
Arek's April state of the market summary is on the following pages. Please click below. 
<hr class="system-pagebreak">
Summary
Market outlook: positive with negative bias
 
<ul>
<li>Current conditions favour purchasing over renting but change in trend is imminent (as at December 2013) </li>
<li>Purchase affordability is at a historically high level and has most likely reached its peak (as at December 2013) </li>
<li>Confidence in the economy has started to deteriorate in recent months but is still positive (as at March 2014) </li>
<li>Housing credit is growing strongly, indicating healthy demand (as at March 2014) </li>
<li>Actual prices are slightly ahead of what could be expected based on housing credit growth (as at February 2014)</li>
</ul>
 
National real estate price forecast
Conditions are supportive of further growth in prices in June 2014 quarter and beyond, however increasing pessimism about the economy indicates a possible slowdown in the pace of that growth.
#1 Optimal accommodation choice: Buying more advantageous than renting
<img src="/images/2014/04/28/BRI_April2014.png" alt="">
The Buy-Rent Indicator (BRI) identifies how cost of buying is changing in relation to cost of renting.
BRI bottomed in June 2012 (indicating the lowest point in the current cycle) and it has been rising consistently since then. Although still in buy-territory, the indicator is fast approaching the equilibrium line.
This indicator is constructed based on a simple concept that renting and buying are substitute accommodation options, hence the optimal choice depends on which cost is rising in relation to the other.
BRI in “buy zone” implies that the cost of buying a property has either declined more or risen less, in percentage terms, than cost of renting, therefore making this accommodation option more attractive.
The practical use of this indicator is for identifying market cycles and for timing purchase and sale decisions. In particular, market cycles can be determined by identifying peaks or troughs on the graph (for example, the last two peaks were in March 2008 and June 2010 - and coincide with peaks in national property price indexes).
The crossing of the indicator from rent to buy zone gives a signal that costs of buying started to decline, or at least are rising less than costs of renting.
For those intending to buy in the current cycle the optimal point for making a purchase is when the indicator crosses into buy territory, if the decline is driven by falling interest rates. However, if the fall is caused primarily by falling prices the optimal point is when the indicator turns up, confirming that purchasing costs have bottomed in the current cycle.
The crossing of the indicator from buy to rent zone (which is now approaching) gives a signal that buying costs are rising faster than rental costs.
In the market where property prices are rising, this marks the point in time when opportunities to purchase a property at attractive prices may be all but exhausted in the current cycle. Prices are expected to continue on the upward trajectory from this point onwards which will cause buying costs to rise further.
For those intending to sell in the current cycle, the crossover marks the optimal point if costs of buying are rising due to changes in interest rates. If buying costs are rising primarily due to price increases, the optimal point for selling will be when the indicator peaks, which should coincide with a peak in property prices.
Please note, this indicator can be calculated only on a quarterly basis and is therefore lagging (the latest reading is for December 2013). That is, the confirmation of the cycle peak or trough can be delayed for up to six months.
#2 Purchase affordability: At historically high level, started to decline 
 <img src="/images/2014/04/28/PAI_April2014.png" alt="">
The Purchase Affordability Indicator (PAI) compares changes in the annual cost of buying to changes in average full time adult income, therefore it identifies how purchase affordability has changed over time.
PAI is at historically high level, comparable to that reached in 2009 or 1994, but has recorded a decline in December 2013 from a peak reached in September 2013.
This indicator explains the reason why prices have been growing so strongly. That is, relative to incomes of Australians working full-time, property prices are still very affordable (in the past 30 years purchase affordability was only better between September 1996 and December 2002).
PAI is a lagging indicator and the latest available reading is for December 2013. This indicator will continue to decline if cost of buying grows faster than adult full time incomes. However, prices have still a lot of room to move before they reach an overpriced territory.
Article continues on next page. Please click below.
<hr class="system-pagebreak">
#3 Perceptions about economy: Outlook is positive but conditions are deteriorating
<img src="/images/2014/04/28/EWI_April2014.png" alt=""> 
The Economic Wellbeing Index (EWI) is designed to reflect general perceptions of Australians about the current economic conditions.
The EWI is in positive territory but has been declining since June 2013.
A more volatile raw measure of the index is trending up again but only after it recorded significant falls in the previous four months and crossed over into the negative territory.
Declining EWI indicates that perception of Australians about the state of economy started to change to less upbeat since mid-2013 but overall, it is still positive.
The key premise behind this indicator is that people are generally less inclined to make big purchases when they are worried about the state of the economy. This has certainly been a pattern in the past – every time the index crossed into the negative territory, property prices either declined or reduced the rate of growth.
The index is still positive so there should be still plenty of positively thinking buyers and property prices are not likely to decline however, increased uncertainty should take some heat off the market.
The EWI is updated monthly and therefore it offers quite timely insight into the perceptions about the state of economy.
#4 Demand: Housing credit continue to grow
 <img src="/images/2014/04/28/PHCI_April2014.png" alt="">
The Private Housing Credit Impulse (PHCI) provides an indication of the level of buyer activity in the residential property market in Australia, hence it reflects underlying demand for properties.
The March 2014 estimate is positive and reached its highest value since December 2011.
Positive and rising value of the indicator reflects continued strong demand for residential property.
The practical use of this indicator is to provide early warning about impending changes in housing credit uptake, and hence, changes in the underlying demand for residential property.
The most significant signals are when the indicator turns up after bottoming in the negative territory or when it turns down after peaking in a positive territory - since these indicate major trend reversal points.
PHCI bottomed in December 2011 when the decline in the rate of quarterly growth in mortgage finance reached the lowest level and started to improve (i.e. when mortgage finance started accelerating again). This trend was immediately reflected by the reduction in the rate of declines in property prices.
As more money started to flow into the property market, it coincided with a pick up in residential property prices from December 2012 onwards. The demand for property has been rising ever since, with a minor slowdown in June 2013 quarter.
The indicator is currently close to a level at which it turned down on two previous occasions - the September 2006 peak, after which credit declined significantly in a lead up to the Global Financial Crisis (which also coincided with a period of severe purchase unaffordability), and in June 2010 when property prices reached another peak, induced by post GFC stimulus.
In contrast to those previous occasions, property is now much more affordable than in 2006 and demand for residential property seems to be real (rather than induced with incentives, as in 2010), so there is a strong momentum for mortgage credit to continue to rise. However, there could be a temporary slowdown in the strength of that rise as a result of self-imposed credit restraints due to economic uncertainty.
It is important to note that, although this indicator is reported in quarterly intervals, it is derived on a monthly basis. In other words, it is initially calculated based on estimated values which are subject to subsequent revision once actual data becomes available. Hence, the latest quarterly reading can change from one month to the next.
#5 Property price expectation: Values are rising and are close to the level of actual prices
 <img src="/images/2014/04/28/PPG_April2014.png" alt="">
The Property Prices Gauge (PPG) is a proxy of a property price index. It becomes a leading indicator when combined with House Price Index (HPI).
PPG continues on the upward trajectory after a temporary slowdown between March and July 2013. The value of the indicator is close to the value of establish house price index.
Expected and actual prices are relatively close now, although were at variance for a while. This indicates that recent price rises are now in line with underlying demand and are not the result of a mad rush to buy.
PPG is calculated from credit related statistics and is not dependent on any reported property price data. It provides a good indication of the magnitude and future direction of the actual price movement.
The most significant signals from this indicator are when it diverges from actual prices - it points to either underlying strength or weakness of the market.
For example, it provided ample warning about 2008 price falls - almost a year in advance, and then signalled strength of a subsequent recovery. Post-June 2010, it provided evidence that the market was stronger than actual price falls indicated and again, signalled market recovery since March 2012.
The index is calculated on a monthly basis but house price data can only be updated in quarterly intervals.
You can read more of Arek Drozda's pieces here.
AREK DROZDA is an independent analyst who has worked in the public and private sectors for over 20 years in business development, data analysis and in building geographic information systems. 
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