<p>Perth’s new apartment market recorded its strongest quarter of sales since Q4 2021, with 412 apartments sold in Q1 2026 and a record quarterly sold value of $537 million, according to Urbis’ latest Apartment Essentials results.</p>

<p>Urbis said the March quarter result reflects strong, highly product‑specific demand across both ends of the market, from more attainable projects delivering at scale, through to premium stock being absorbed by equity‑rich downsizers.&nbsp;</p>

<p>David Cresp, Partner at Urbis, said the key story in Perth is not demand, it is the market’s ability to convert demand into delivered housing.&nbsp;</p>

<p>“This is the strongest sales quarter since Q4 2021, and it reinforces that demand in Perth is real and it’s local,” David Cresp said. “But the task now is delivery, turning that demand into projects that can actually be built and completed.”&nbsp;</p>

<p>[smartcode_project:default project_id=110291 project_image_fid=302785]</p>

<h2>Affordable product leads, premium demand remains resilient</h2>

<p>Sales in Q1 were led by more affordable projects, with The Boulevard (SKS Group) recording 115 sales in the quarter, the presentation noting this is only the second time a single project has surpassed 100 quarterly sales. The project was able to offer more affordable housing product right next to a train station.&nbsp;</p>

<p>Palmyra West (Finbar) also delivered strong results with 28 sales in Q1, following 84 sales in Q4, with an average price of under $800,000, underscoring depth of demand for well‑located, attainable new stock.&nbsp;</p>

<p>At the premium end, Urbis said downsizer demand is continuing, with the results highlighting Romeo (Applecross, Finbar) recording 75 sales and reaching almost 50% sold in one quarter.</p>

<p>Jual (Shenton Park, Celsius Property) also posted a strong quarter with 28 sales, reaching 39% sold in one quarter.</p>

<p>Urbis noted that Perth apartment demand is not speculative, not investor‑led, and not uniform, describing it as localised, often equity‑driven and highly product‑specific, a pattern reflected in the polarisation between strong “attainable” performers and premium downsizer product.&nbsp;</p>

<p>[smartcode_project:default project_id=148957 project_image_fid=364102]</p>

<h2>Prices underpinned by costs, and the delivery risk is growing</h2>

<p>Urbis said pricing pressure is cost not demand‑driven: construction costs and delivery risk are now a central constraint, with the results noting build costs remain elevated and volatile, and that energy, fuel and labour uncertainty weigh on feasibility.</p>

<p>David Cresp said a growing challenge for private Build‑to‑Sell developers is simply securing a builder in the current environment.</p>

<p>“Developers are really feeling the pressure from a building market that was operating at capacity and securing a builder is challenging,” David Cresp said, adding that even where a builder can be secured, “trying to get to the price that makes the development financially viable is incredibly challenging in the current market.”&nbsp;</p>

<p>Urbis’ broader WA commentary also notes that industry remains at or above capacity with lot and housing creation, and that many builders are limiting new sales to manage stretched workforces and fixed‑price contract pressures, conditions that flow directly into apartment feasibility and delivery timing.</p>

<p>[smartcode_project:default project_id=108869 project_image_fid=317905]</p>

<h2>Supply: improving later, but still constrained, and Perth lags eastern benchmarks</h2>

<p>While near‑term supply remains constrained, Urbis’ forecast shows completions lifting “Supply is forecast to be back above 1,500 apartments per annum for the first time since 2019”, with 1,775 completions forecast for 2026, and volumes remaining above that level over the following years.&nbsp;</p>

<p>Looking further ahead, completions are forecast to reach 2,500 in 2028, with the report noting 32% of that total is social/affordable, reflecting the role of government‑supported delivery in rebuilding the pipeline.&nbsp;</p>

<p>However, Urbis said Perth remains behind comparable markets on pipeline scale. In a national comparison of projects under construction, the report shows under construction Perth Build‑to‑Sell (BTS) at 3,446 apartments versus the Gold Coast at 7,922. Mr Cresp said “The challenge for Perth is how to we grow the delivery pipeline”.</p>

<p>Urbis’ conclusion is that Perth’s market is increasingly defined by product discipline and delivery certainty, with the research identifying “delivery certainty is key” and calling out builder risk and procurement models as core success factors, alongside “timing and staging”.&nbsp;</p>


Joel Robinson

Perth apartment sales hit strongest pace since late 2021 as builder capacity tightens

<p><a href="https://www.apartments.com.au/developers/sammut-developments">Sammut Group</a> has secured development approval for its latest Brisbane apartment project, marking the Sydney developer’s next step in expanding its Queensland pipeline following the success of its debut Gold Coast development, Coast.</p>

<p>The approved project at <a href="https://www.apartments.com.au/new-apartments/44-glen-road-toowong-qld-4066">44 Glen Road, </a><a href="https://www.apartments.com.au/developments/toowong-qld-4066">Toowong</a> will deliver a 15-storey riverfront apartment building with 42 residences, significantly increasing the scale of the site’s previous approval for a smaller luxury scheme. Designed by Bureau^proberts, the development will comprise a mix of predominantly four-bedroom and two-bedroom apartments positioned to maximise Brisbane River and city views.</p>

<p>Sammut Director Julian Sammut said the group had been actively searching Brisbane for several years before identifying Toowong as the right fit.</p>

<p>“Brisbane was the right step for Sammut,” Sammut said.</p>

<p>“With the success of Coast we thought we should definitely look to do more in Queensland alone. We then pushed up to look at Brisbane. We've been looking for I'd say two to three years actually and it was hard to find the right location.”</p>

<p><img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-23%20at%203.27.14%E2%80%AFPM.png?VersionId=dYAVIL7qdcGA8ojvkslSrLjczXFejSSx" /></p>

<p>Sammut said suburbs including New Farm and Teneriffe were considered before the group ultimately focused on Toowong due to its strong downsizer demographic and limited supply of developable riverfront land.</p>

<p>The site was acquired off-market after what Sammut described as a lengthy negotiation and planning process, with the developer pursuing an uplift to the original approval.</p>

<p>“We are DA approved now which is very exciting,” Sammut said.</p>

<p>“We've had our change approval come through and we've obviously doubled the height, 15 storeys plus rooftop. We've got 42 amazing apartments that are going to be coming to market soon.”</p>

<p><img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-23%20at%203.27.26%E2%80%AFPM.png?VersionId=ohkRkY0dIZlqdfME2EZePsCQavRiBadE" /></p>

<p>Bureau^proberts said the design responds to Toowong’s evolving urban character, balancing contemporary apartment living with the area’s established residential identity.</p>

<p>“A place where traditional Queensland living has taken place for centuries; Toowong is seeing a shift of contemporary influence, commercial and retail hubs mixed with well-considered residential offerings – all the while maintaining its character and charm,” the architect noted in planning documents submitted to Brisbane City Council.</p>

<p>The architecture practice said the project’s form was shaped by its riverfront setting, flood considerations, neighbouring building scales, and view corridors.</p>

<p>“They said the mix of four and two-bedroom apartments capture the ‘fundamental qualities of Queenslander living,’ translated into the context of a contemporary subtropical building.”</p>

<p>The development sits just off Coronation Drive within walking distance of Toowong’s retail precinct and the upgraded Regatta ferry terminal, while also benefiting from proximity to the incoming green bridge connection to West End. Sammut said the accessibility and amenity offering were central to the site’s appeal.</p>

<p>The approval adds to growing residential activity along the Toowong riverfront, joining nearby projects including Consolidated Properties’ Monarch Residences and Spyre Group’s ARC Residences.</p>


Sammut secures approval for debut Brisbane apartment development in Toowong

<p>Developer Lanevick is heading back into Sydney’s apartment market after focusing more heavily on the luxury townhouse and terrace sector in recent years.</p>

<p>Lanevick, founded and directed by Steve Maroun, is expecting to receive approval in the coming months for a new apartment development in Gladesville, with the aim to launch it to the market later this year.</p>

<p>The 51-apartment project, designed by Studio Johnston, will comprise a mix of one-, two-, and three-bedroom apartments positioned toward the Hunters Hill downsizer market.</p>

<p>“Traditionally it’s been difficult for people in that market to downsize because there just hasn’t been the right product available,” Maroun said.</p>

<p>“We’re targeting buyers who might have 30 to 40 per cent of their house value sitting in the bank after downsizing.</p>

<p>“They still want good spacious entertaining areas, they still want quality design, but they also want flexibility and the ability to enjoy life a bit more after working hard for a long time.”</p>

<p>The project sits near Boronia Park and within close proximity to the Parramatta River foreshore, an area Maroun says offers more of a Hunters Hill lifestyle than a traditional apartment precinct.</p>

<p>“From a lifestyle perspective, it’s really more Hunters Hill than Gladesville,” Maroun said. “You’re close to the foreshore, close to parklands, and still connected back into the village precinct.”</p>

<p>From level four and above, apartments will capture water views&nbsp;toward Sydney Harbour. Communal amenity will include rooftop entertaining areas, wellness spaces, and a gym tailored toward owner-occupier buyers.</p>

<p>“We’ve really designed these apartments around that buyer coming from the Hunters Hill LGA and what they’re actually looking for in their next chapter.”</p>

<p>The proposed development has also been designed to respond to the changing character of the broader Gladesville town centre, where a growing number of mixed-use and residential proposals are expected to emerge over the coming years.</p>

<p>“Gladesville presented a rare opportunity to deliver a genuinely design-led residential project within an evolving lifestyle precinct, just moments from the growing Gladesville town centre, and we’ve approached the project with a strong focus on architecture, liveability and long-term community value,” Maroun said.</p>

<p>Maroun said Lanevick saw a first-mover advantage within the precinct as planning controls continue to evolve to accommodate greater housing density.</p>

<p>“We think there’s a real opportunity there that hasn’t really been serviced properly yet,” he said.</p>

<p>“There’s going to be a broader evolution of the whole Gladesville village precinct over time, particularly with more activation and mixed-use outcomes.”</p>

<p>The Venus Street proposal will include a commercial and retail component at ground level designed to contribute to that evolving streetscape activation.</p>

<p>“A big part of the thinking was how do you activate that area properly and create more vibrancy and amenity, which is what Hunters Hill has been looking for,” Maroun said.</p>

<p>Lanevick’s focus since 2020 has largely been on smaller-scale luxury townhouse and terrace developments. The developer recently completed Royale Randwick, also designed by Studio Johnston, where prices reached $3.65 million. The project was featured in the UDIA NSW 2026 Professional Development Prospectus and was also named a finalist for Development of the Year.</p>

<p>&nbsp;</p>


Lanevick to cater for Hunters Hill downsizers with new Gladesville apartment development

<p>Property developer One Living, backed by former Macquarie banker turned investment manager Chris Green’s investment firm, has unveiled plans to bring more institutional capital into housing to help address the national supply crisis.</p>

<p>The New York-based investor has focused his firm, GreenPoint Partners, on addressing the supply shortage hitting middle market housing in Australia.</p>

<p>It is backing the new One Living business to develop more than 1000 units along the eastern seaboard. The new firm is starting with a development on Mona Vale Road, on the border of Mona Vale and Pymble, in Sydney’s Northern Beaches, with around 140 apartments planned. They are eyeing off more sites across the city.</p>

<p>With cost pressures rising in the industry, One Living’s model is to be a vertically integrated developer-builder, so it can respond directly to the housing gap by removing the cost inefficiencies embedded in traditional residential delivery.</p>

<p>“We are building a platform designed to operate at scale and starting in a market where there’s a clear need for quality, attainable housing,” One Living joint managing director Joseph Scuderi said.</p>

<p>“It’s that missing middle – it’s that attainable end of housing… that’s what most Australians invest into and what Australians can actually afford.”</p>

<p><img alt="Mona Vale" data-entity-type="file" data-entity-uuid="798dfa93-4941-4db6-a696-31e9dc18e81c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.31.50%E2%80%AFPM.png?VersionId=mKBqi5C_DmeiXS.AtJkcR8LQIxqCqmFi" /></p>

<p>GreenPoint Partners brings years of experience assembling and scaling real estate operating businesses across major markets. And Green sees a big opportunity in Australia.</p>

<p>“For its size, sophistication and importance to the community, Australia’s living sector has remained largely under-institutionalised, which represents significant opportunity,” Green said. “GreenPoint identified that gap, assembled the right team, and is backing One Living to build a platform that is aligned to market needs.”</p>

<p>Green said being a builder-developer would give the company the capacity and flexibility it required to deliver reasonably-priced homes.</p>

<p>“We want it to be at that attainable level; not super high end luxury but at that attainable level,” he said.</p>

<p><img alt="Mona Vale" data-entity-type="file" data-entity-uuid="74a5344a-4b26-4d4a-ada3-056b1220be77" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.32.15%E2%80%AFPM.png?VersionId=vY8hXHO4reBMdO8ZXMWCNtGZJofUPQ3j" /></p>

<p>&nbsp;</p>

<p>One Living will undertake a component of affordable housing in its schemes, which it will own and operate, and it could also run build-to-rent on some sites.</p>

<p>Green praised local policy settings.</p>

<p>“The NSW government is being very supportive, strategic and pragmatic in terms of how do we generate more supply of housing,” he said. “We think it’s actually positive for development and the bit that’s been lacking at that attainable level is that it’s lots of relatively small private developers, whereas we want to create an institutional platform.”</p>

<p>One Living is also&nbsp;looking at high-density projects and could take on more institutional funding in the future.</p>

<p>“The way we will be able to achieve economies of scale is through size,” Green added.</p>


One Living enters Sydney's new apartment market with Northern Beaches site acquisition

<p>It's been several years since there's been an opportunity to buy a brand new townhome in Melbourne's coastal suburb of Mordialloc. Even apartment developments in recent times have been few and far between in the area.</p>

<p>Local developer LDS Property identified the gap in new housing, securing a site on White Street, directly opposite&nbsp;Woodlands Golf Club Mordialloc. They've recently launched&nbsp;<a href="https://www.apartments.com.au/new-townhouses/wm-residences-mordialloc-102-white-street-mordialloc-vic-3195">WM Residences</a>, just 13 townhouses which they have already started building.</p>

<p>Projects by Buxton Director Heath Thompson, who is selling WM Residences, says the townhouses x that perfect middle ground be</p>

<p data-end="683" data-start="511">"Mordialloc residents have had limited options to downsize within the suburb, often forcing them to look elsewhere despite long-standing ties to the area," Thompson says.</p>

<p data-end="882" data-start="690">"With very little comparable new supply coming to market, projects like WM Residences are well placed, particularly as buyers look to capitalise on current conditions amid constrained supply."</p>

<p data-end="882" data-start="690">[smartcode_project:default project_id=134646 project_image_fid=6109]</p>

<p>The development, designed by regarded architecture firm&nbsp;<a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a>,&nbsp;adopts a deliberately restrained architectural approach, focusing on simplicity, durability and liveability rather than overt design gestures.</p>

<p>The boutique scale is central to the offering. With only 13 three-bedroom residences, each home is configured to prioritise functional layouts and everyday use, supported by private terraces and secure two-car garages.</p>

<p>Ewert Leaf’s design response leans into a calm, neutral material palette. Interiors are defined by oak flooring, white walls and soft finishes, creating a consistent and understated backdrop. The approach avoids trend-driven detailing in favour of longevity, with an emphasis on natural light and spatial clarity.</p>

<p>[smartcode_project:default project_id=134646 project_image_fid=6110]</p>

<p>Beyond aesthetics, the homes are designed to meet contemporary performance expectations. Each residence targets a minimum 6-star energy rating, incorporating double glazing, comprehensive insulation and all-electric Bosch appliances.</p>

<p>The project’s location supports a walkable coastal lifestyle, sitting within close proximity to Mordialloc’s foreshore, Main Street retail strip and the train station. Local cafés and dining venues, including Suburbia Deli and Hendriks Café, are within a short walk, reinforcing the area’s established neighbourhood character.</p>

<p>[smartcode_project:default project_id=134646 project_image_fid=6116]</p>

<p data-end="247" data-is-last-node="" data-is-only-node="" data-start="0">While <a href="https://www.apartments.com.au/developments/mordialloc-vic-3195">Mordialloc</a> is often defined by its beach and pier, the project taps into other areas of day to day living, offering easy access to local food, casual dining and transport, rather than positioning itself purely as a lifestyle retreat.</p>

<p>WM Residences reflects a continued trend across Melbourne’s coastal suburbs towards smaller-scale, design-led townhouse developments, particularly on infill sites where proximity to amenity is already established.</p>

<p>With construction commenced prior to its market entry, the project aligns with a growing preference among buyers for developments with visible progress and defined delivery timeframes.</p>

<p>[smartcode_project_cta:default project_id=134646]</p>


WM Residences fills gap in Mordialloc townhouse market

Bubble

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<p>Dwelling prices sit around 33% higher than the last peak, but is that a Sydney-wide boom or indeed bubble?</p>
<p>The catchup growth in the past year has been at around 15%, but over the past decade at 5% annually, which was exceeded by Darwin (7.4%), Melbourne (6.4%) and Perth (6%).</p>
<p>There is no doubting many sales in many suburbs are seriously overpriced. I would call them bubble prices. There was a Maroubra sale where with a coat of paint difference a <span style="line-height: 1.3em;">$1.46 million sale of a</span><span style="line-height: 1.3em;"> two bedroom semi on 310 square metres had last sold at $1 million in March 2013<span style="line-height: 1.3em;">.</span></span></p>
<p>I couldn't spot the $460,000 difference. </p>
<p>The silly prices could easily result in any exit - perhaps even over as long as the next decade - in tears given some buyers are seriously over paying currently.</p>
<p>If they want to keep it has their longtime, forever family home, the exuberance won't be as apparent longterm as if they were investing in a reckless pursuit of yield, frustrated by what returns they can get elsewhere.</p>
<p>Rental markets are softer, and looming construction supply will see further softening.</p>
<p>But it should be noted there are home sales and market segments where the market is yet to bounce to any significant extent - especially prestige homes where Chinese buyers are absent and from the indulgent coastal beach home market unless Justin Hemmes is present.</p>
<p>Title Tattle turned up to a recent weekend Queen Street Woollahra auction - where the only bid came from the McGrath auctioneer Scott Kennedy Green.</p>
<p>He had tried to get $7.5 million plus interest, and passed it in on a $7.2 million vendor bid. The sandstone, semi-detached <span>1867 Victorian terrace set on a 417 sqm parcel close to the Woollahra Village featured in the Willem Rethmeier and Jenne Reed Burns 2000 book, Private Sydney after Elizabeth Wadsworth's renovation. Elizabeth Wadsworth popped into the auction from next-door where she has wanted $8 million plus for her 1850s terrace, St Aubyn since last year.</span></p>
<p>Not one attendee at the 188 Queen Street auction of apparent Asian descent, either fourth generational or fly in. </p>
<p>They are all busy buying up in the re-emerging Bellevue Hill and Double Bay. Eventually disappointed underbidders from these adjoining suburbs will help underpin the Woollahra recovery, but not yet.</p>
<p>Last month Title Tattle reported the mining heiress Sarah Louise Fudge sold Spicer House, Woollahra for $5.5 million.</p>
<p>Her landmark home in Woollahra was listed $5 million plus hopes given her relocation to Hollywood. </p>
<p>The 1886-era residence Spicer House traded in May 2011 for $5.5 million<span style="line-height: 1.3em;">.</span></p>
<p><span style="line-height: 1.3em;">Remember the former tennis champion Pat Rafter sold his Woollahra terrace for $2.4 million late last year.</span></p>
<p><span style="line-height: 1.3em;">The Wallis Street</span><span style="line-height: 1.3em;"> contemporary three-bedroom terrace</span><span style="line-height: 1.3em;"> cost $2.35 million in 2007, so price growth didn't cover the stamp duty over the seven year period.</span></p>
<p><span style="line-height: 1.3em;">The Noosa-based </span><span style="line-height: 1.3em;">sportsman would have been wiser retaining</span><span style="line-height: 1.3em;"> his Sydney home on Hopetoun Avenue, Mosman which was sold in 2007 for $7.75 million. Onthehouse website cautiously suggests that Mosman home could be worth $10.6 million now.</span></p>
<p><span style="line-height: 1.3em;">But Chinese interest in Mosman is light compared to say Epping.</span></p>
<p><span style="line-height: 1.3em;">Last month 10 Hermington Street, Epping sold at $1.1 million, some $70,000 over reserve, which shows to me that over the top sale prices are in decline. But the auction was significant as there were 17 registered bidders, 11 of whom took part.</span></p>
<p><span style="line-height: 1.3em;">Low </span>interest rates have encouraged many more buyers into the market, and as long as rates stay low, not withstanding APRA's macropridential attempts, local buyers will try their luck.</p>
<p>And if the RBA succeeds in being the dollar down, then foreign buyers and expats will underpin the market. </p>
<p><span style="line-height: 1.3em;">Of course once rates rise then it will be regrets for many, despite the banks saying everyone is ahead of their repayments and that they are ensuring loans are being processed with anticipated higher debt borrower capabilities.   </span></p>
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jchancellor-FAypfDUnLy

Woollahra heads the suburbs the 2015 boom has bypassed

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<p>When considering the current surge in Sydney and Melbourne home values, it is worthwhile revisiting how strong conditions were during the housing boom of 2001 through to 2004.</p>
<p>Although the rate of capital growth in Sydney and to a lesser degree Melbourne is strong it is nowhere near as strong as the rapid home value growth recorded between 2001 and 2004.</p>
<p>At the beginning of 2001 the rate of growth in home values began to accelerate.</p>
<p>The pick-up in value growth began in Sydney and Melbourne and then flowed through to the other capital cities. A major difference between the post-2000 growth phase and the current growth phase is that the post-2000 phase was not preceded by falls in home values.</p>
<p>Another major difference is of course that the growth post-2000 was broad-based whereas the current growth in home values has been narrow, largely focussed on Sydney and Melbourne.</p>
<p>Finally household debt levels were substantially lower in 2001 than they are now, which is likely another major contributor to the stronger increase in home values then compared to now.</p>
<p>The previous growth phase is widely accepted to have commenced at the end of 2000 however, the commencement of the current rises in values has varied across each city.</p>
<h3>Sydney</h3>
<p>Home values began rising from May-12 and have increased by 38.8%, over the same period post-2000 they had risen by 60.2%.</p>
<p align="center"><strong>Sydney value growth 2001-04 vs. current growth</strong></p>
<p align="center"><img src="https://www.corelogic.com.au/resources/property-pulse/article-graphs-img/2015-06-01--property-pulse-sydney.jpg"></p>
<p> </p>
<h3>Melbourne</h3>
<p>Home values began rising from May-12 and have increased by 23.6% compared to 58.0% over the same period post-2000.</p>
<p align="center"><strong>Melbourne value growth 2001-04 vs. current growth</strong></p>
<p align="center"><img src="https://www.corelogic.com.au/resources/property-pulse/article-graphs-img/2015-06-01--property-pulse-melbourne.jpg"></p>
<p> </p>
<h3>Brisbane</h3>
<p>Home values reached a low point in May-12 and have since increased by 10.9%, in comparison home values had increased by 91.5% over the same timeframe post-2000.</p>
<p align="center"><strong>Brisbane value growth 2001-04 vs. current growth</strong></p>
<p align="center"><img src="https://www.corelogic.com.au/resources/property-pulse/article-graphs-img/2015-06-01--property-pulse-brisbane.jpg"></p>
<p> </p>
<h3>Adelaide</h3>
<p>Home values reached a recent low point in Mar-12 and have since increased 7.0%, in the post-2000 growth phase values had increased by 74.6% over the same timeframe.</p>
<p align="center"><strong>Adelaide value growth 2001-04 vs. current growth</strong></p>
<p align="center"><img src="https://www.corelogic.com.au/resources/property-pulse/article-graphs-img/2015-06-01--property-pulse-adelaide.jpg"></p>
<p> </p>
<h3>Perth</h3>
<p>Home values started rising from Oct-11 and have risen by 14.5% to Apr-14, over the same timeframe post-2000 home values had increased by 55.4%.</p>
<p align="center"><strong>Perth value growth 2001-04 vs. current growth</strong></p>
<p align="center"><img src="https://www.corelogic.com.au/resources/property-pulse/article-graphs-img/2015-06-01--property-pulse-perth.jpg"></p>
<p> </p>
<h3>Hobart</h3>
<p>Home values reached a low point in Nov-13 and have increased by 8.9% compared to a 16.7% increase over the same timeframe after 2000.</p>
<p align="center"><strong>Hobart value growth 2001-04 vs. current growth</strong></p>
<p align="center"><img src="https://www.corelogic.com.au/resources/property-pulse/article-graphs-img/2015-06-01--property-pulse-hobart.jpg"></p>
<p> </p>
<h3>Darwin</h3>
<p>Home values hit a low point in Jan-12 and have since risen by 17.3%, over the same timeframe post-2000 home values in the city rose 22.1%.</p>
<p align="center"><strong>Darwin value growth 2001-04 vs. current growth</strong></p>
<p align="center"><img src="https://www.corelogic.com.au/resources/property-pulse/article-graphs-img/2015-06-01--property-pulse-darwin.jpg"></p>
<p> </p>
<h3>Canberra</h3>
<p>Home values have been rising since the end of Jan-12 and have increased by 8.5% compared to 96.3% over the same timeframe post-2000.</p>
<p align="center"><strong>Canberra value growth 2001-04 vs. current growth</strong></p>
<p align="center"><img src="https://www.corelogic.com.au/resources/property-pulse/article-graphs-img/2015-06-01--property-pulse-canberra.jpg"></p>
<p><br><br></p>
<p>The data shows that Sydney and Melbourne are the stand-out cities for capital growth currently. More importantly, the rate of capital growth over recent years across each capital city is significantly lower than over the same timeframe from 2001 onwards. In fact, Hobart and Darwin are the only capital cities in which the post-2000 level of capital growth is even close to the current level of capital growth. </p>
<p> </p>
<p>Article by Cameron Kusher, CoreLogic RP Data senior research analyst.</p>
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ckusher-ujnxiKuFQs

Is this a house price boom? Comparing the 2015 with 2001 to 2004: Cameron Kusher

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<p><span style="line-height: 1.3em;">Sydney is one of the most resilient property markets in the world, so estate agent John McGrath says</span><span style="line-height: 1.3em;"> buyers and sellers need to ignore the bubble commentary. </span></p>
<p><span style="line-height: 1.3em;">"Sydney has proven itself over and over again to be one of the most resilient property markets in the world, </span>with<span style="line-height: 1.3em;"> long-term fundamentals that form a bedrock of strength for the market." </span></p>
<p class="p4"><span style="line-height: 1.3em;">But he says the boom is definitely going to end at some point. </span></p>
<p>"That doesn’t mean price growth will end, it will continue on but in a less spectacular fashion."</p>
<p>He told the Today Show's Lisa Wilkinson that the Sydney market still had "a few percent to go."</p>
<p>"The Sydney and Melbourne markets are red hot…probably close to where they are going to go in this cycle.</p>
<p>"I think we are close to the top of the market.</p>
<p>"Don't panic, don't over stretch your budget," he advised.</p>
<p>When asked what will take Sydney out of the boom? He listed a few things on <a href="https://www.switzer.com.au/the-experts/john-mcgrath-property-expert/why-sydney-prices-wont-fall/" target="_blank">his switzer blog</a>.</p>
<ul>
<li>The market will at some point reach a natural peak – prices will get too high and buyers will lose interest. This isn’t happening yet, partly because finance is so cheap.</li>
<li>Investor activity, which has been a major driver of Sydney’s boom, will taper off as yields become too low.</li>
<li>Interest rates will begin rising at some stage as the economy improves and this will put the brakes on activity – but this is a long way off. </li>
</ul>
<p><span style="line-height: 1.3em;">"It’s a bit unusual to have such a long stretch of significant price rises," he </span>conceeds.</p>
<p><span style="line-height: 1.3em;">"But it doesn’t mean a calamity awaits us. </span></p>
<p><span style="line-height: 1.3em;">"A big part of the growth we’re experiencing today is simply catch-up after several years of little growth. </span></p>
<p class="p5">"Everyone needs to calm down and remember that this is a solid, high performing property market in a truly international business hub and in my opinion, it is going to stay that way for a long time to come. </p>
<p class="p4">He says a big fundamental is that Sydney is vastly undersupplied with natural borders that limit the amount of new homes that can be built, yet demand keeps on rising due to the city’s strong population growth and increasing engagement from overseas buyers. </p>
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No calamity coming: Why Sydney still has price growth in 2015: John McGrath

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<p><span>Talk in the industry is about whether or not house prices are in a bubble, if so have we been in one for some time and is it expensive bubble or a seriously expensive one?</span></p>
<p><span>One quote I read recently in relation to the current housing market was "One thing seems clear: If we’re having a discussion about whether or not house prices are in a bubble (as we have been for some time now), house prices do not represent good value at the current level. The debate is about whether they are expensive, or seriously expensive."</span></p>
<p><span style="line-height: 1.3em;">Now, of course we're all guilty of making sweeping comments - and myself more than most given my tendency towards a macro focus on this blog - but this snippet gives the full broom treatment to Australia's property markets.</span></p>
<p><span style="line-height: 1.3em;">The last time I checked in at the back end of 2014 there were 9,448,300 dwellings in Australia, a figure that will be approaching 9.5 million or so today. </span><span style="line-height: 1.3em; font-weight: bold;"> </span></p>
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<div><span style="line-height: 1.3em;">Are some of those dwellings expensive? Indeed, and some of them are extraordinarily so in the present and persistent low interest rate climate.</span></div>
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<div>But equally, aren't some house prices very cheap? Very much so - in outer suburban Adelaide and Hobart, for example, and in any number of regional centres - although of course, "cheap" does not been good value ("cheap today is cheap tomorrow" as the old real estate mantra goes).</div>
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<div>The same holds true of share prices and indices, for that matter.<br><br>Are some share indices and stocks trading at high valuations? Yes. In fact, globally some markets are romping ahead to dizzying heights as I looked at only earlier this week.</div>
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<div>That does not mean that some individual stocks don't offer great value, though, particularly for those investors with the requisite skills in fundamental analysis.<br><br>With the benefit of hindsight, although not my favourite sector due to being capital intensive and reliant on the sale of commodities, 1999 was a great time to buy resources stocks. 2009 was an amazing time to load up on bank shares.  Today, health care and materials companies are worthy of consideration.</div>
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<div>Of course, this doesn't mean all companies in a sector are worth buying, or even any of them. There is no "one size fits all."</div>
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<div><strong>Focus</strong></div>
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<div>This was one of a raft of pieces of late referencing popping property bubbles, property speculators, the end of the property boom, shares now being due to outperform property, and so on.</div>
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<div>All fair enough, although the truth is that ex-Sydney (and to a lesser extent Melbourne) there hasn't actually been a property boom to date in this cycle, rather a protracted period of relatively flat prices in real terms, and correspondingly there is no "Australian property bubble".<br><br>Resources influenced Perth and Darwin are seeing declining rents, the polar opposite of frothy conditions, while a number of mining towns have already capitulated. Canberra's property markets seem similarly uninspired.</div>
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<div>Why so much angst from equities-only investors then, one wonders, apart from the wider ramifications for the Australian economy and share markets of a genuine and material property correction?</div>
<br><div>An obvious point from a fundie perspective is that more funds under management equals more fees, so naturally enough does make sense to point out from time to time the benefits of a diversified share portfolio over the risks of holding a specific investment property or portfolio of properties.<br><br>I'm not sure whether it makes a great deal of difference, though. In my experience there exists a fair proportion of investors who are simply "shares people" or "real estate" people, and they won't ever be budged either way!<br><br><strong>Stock valuations decline</strong>
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<div>Perhaps another of the reasons for the angst is that the Australian share markets (generally!) have been on the receiving end of a bit of a shellacking over the past month, which naturally the financial media reports unfailingly on a daily basis.</div>
<br><div>Since threatening to crunch through 6,000 on March 18 the market has tanked, paring all the way back down to 5,600.<br><br>6,000 now seems like a distant dream once again, although the recent dovish Board Minutes from the Reserve Bank reinstated a moderate easing bias, which may help to fire markets up again.</div>
<div> </div>
<div>Now as intelligent people both you and I know that such short term movements don't mean a great deal for stock market investors with a long term mindset.<br><br>In fact, cheaper market prices equates to a greater array of buying opportunities for those with an appropriately disciplined investment approach.</div>
<div> </div>
<div>But it's funny what daily media headlines can do to folk, particularly when Sydney house prices are suddenly once again rising at an annualised pace of somewhere north of 15%. </div>
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<div>The XJO (ASX 200) chart shows that this index has pulled back to the same level as the beginning of March 2007, well over eight years ago.</div>
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<div><img src="/images/2015/05/22/ASX.jpg" alt=""></div>
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<div>While experienced investors are well aware that accumulated returns inclusive of dividends have been robust, a good proportion of Mum and Dad investors tend to like to see capital gains, preferably of the fast buck variety.<br><br><strong>Sydney property leads cycle</strong>
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<div>What seemed to be a highly unlikely outcome for much of the past decade is now once again becoming a reality - Sydney houses selling for double what they did during their last cyclical low around 2005.</div>
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<div>Granted I have only come across a few such examples to date, all of them houses rather than apartments, and usually in popular beachside suburbs such as Bondi, but I expect this will become an increasingly common occurrence over the year ahead.</div>
<div>
<br>Of course, the main advantage that property investors have over share market investors is the use of leverage which can magnify gains...and losses.</div>
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<div>An investment which doubles in value can see the dollars invested increased 10 or 20 fold before transaction and holding costs - for those who get it right and are prepared to hold through the lean periods of the cycle.</div>
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<br>Dare we even mention it, some folk even used 100 per cent leverage in the period leading up the the financial crisis, making the returns on "investment" extraordinarily high.<br><br><strong>Risks to the downside</strong>
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<div>There is an old saying in investment that if something sounds too good to be true then it probably is.<br><br>So, what's the catch? </div>
<div> </div>
<div>One such catch is that most people just aren't very good at investing in property. The stats show that most don't achieve their goals, owning only one or two properties, with many selling within the first early years of ownership.</div>
<div> </div>
<div>It's not always entirely their fault, mind - property advisers have recommended some desperate choices over the last decade, including mining towns and any number of far-flung locations which haven't fared anything like as well as Sydney has. </div>
<div> </div>
<div>It was popular for a while to say that capital city investors were singing the same old tune from years ago and had failed to move with the times, though I haven't heard anyone saying that of late as the Sydney market continues to take off.<br><br>Inner ring Brisbane is now seeing prices rising again too, though not for all property types and suburbs it must be said, and I believe that generic apartments will struggle through this cycle.</div>
<div> </div>
<div><strong>Spruikfest</strong></div>
<br><div>You only had to set foot in the <em>Sydney Homebuyer Show</em> this year to see that the property forum was packed to the rafters with the flocking crowds far outweighing the numbers at the share trading and investing event.</div>
<div> </div>
<div>This is what always happens when house prices are rising, of course.</div>
<div> </div>
<div>Unfortunately so too were the self managed superannuation fund (SMSF) property spruikers out in force, barking orders about setting up trust structures to buy property to anyone who would listen - and anyone who wasn't listening as well, come to think of it.</div>
<div> </div>
<div>The thing to remember is that property and shares are not really directly comparable investments for any number of reasons which I don't have the space or inclination to repeat here.</div>
<div> </div>
<div>Equities are a far "cleaner" and more liquid asset class, very well suited to retirees of the right mindset contrary to popular opinion, particularly given the favourable tax treatment of franked dividend income in Australia.<br><br>No tenants or related headaches. No repairs and maintenance bills, Quick and easy to sell parcels of shares. </div>
<div> </div>
<div>Property investment suits many long term Mum and Dad investors, despite its illiquidity, and the leverage can see them magnify gains (or losses) at a greater rate, provided they invest well (or badly).</div>
<div> </div>
<div>For reasons I never really got my head around some property advisers have recommended investing in towns where there is acres of land around and thus no scarcity. </div>
<div> </div>
<div>The key to long term successful property investment is finding an asset which is in extremely high demand.<br><br>This generally means the larger capital cities, near jobs and where people want and need to live - and is scarce in supply, which ideally means a dwelling with a land value content, and in a land-locked suburban location.<br><br>The long run data shows that even most average capital city property has generally done well through the cycles, beating inflation over time.<br><br>It won't be long before the Sydney median house price has doubled again since 2003, soon thereafter to be threatening the $1 million level.</div>
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<p><em><span>PETE WARGENT </span>is the co-founder of <a href="https://allenwargent.com/" target="_blank">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></p>
<p><em>His book '<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>' is out now.</em></p>
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Blowing bubbles (again): Pete Wargent

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<p><span style="line-height: 1.3em;">Sydney p</span><span style="line-height: 1.3em;">urchasers need to be very careful, because at some point there has to be some correction, </span><span style="line-height: 1.3em;">HSBC Australia chief economist Paul Bloxham has again warned.</span></p>
<p><span style="line-height: 1.3em;">"Sydney house prices are running at an unsustainable pace," he told AAP.</span></p>
<p><span style="line-height: 1.3em;">Following recent strong gains that are set to continue, HSBC is forecasting Sydney house prices will be broadly flat in 2016, though not experiencing a big fall.</span></p>
<p>"The more Sydney house prices go up, the more likely it is that they will have to correct, and that's not necessarily a bubble," the former RBA economist said.</p>
<p>Earlier this year, after the February rate cute, he noted he was <span style="line-height: 1.3em;">worried about the Sydney property market.</span></p>
<p>Speaking at the Australian Mortgage Innovation Summit, HSBC’s chief economist, Paul Bloxham, said the only housing market that the RBA and APRA needed to be cautious of was Sydney. <br><br>"In Sydney, this is going to be quite a challenge.</p>
<p>"The rest of the market doesn’t look over inflated. </p>
<p>"I don’t think there is a housing bubble in Australia. </p>
<p>"I think that if Sydney sees the same trends as we have seen over the last year or two, that is house prices is running at an annual inflation rate of 13% year on year, then if that continues for very much longer than you will need to see prices at some point will come down.”</p>
<p>The summit was hosted by Asia-Pacific Banking &amp; Finance.</p>
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Not necessarily a bubble: HSBC's Paul Bloxham on Sydney house prices

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<p>The <em>Australian Financial Review</em> columnist Chris Joye has suggested "the Reserve Bank of Australia's governor Glenn Stevens is trying to unravel a <a href="https://www.britannica.com/EBchecked/topic/239059/Gordian-knot" target="_blank">Gordian knot</a> created by his institution's inconsistencies".</p>
<p>"The RBA is blowing the mother of all housing bubbles to deflate an overvalued exchange rate," Joye wrote today.</p>
<p>He said "it is replacing one asset pricing conundrum with another, arguably more dangerous, one" with "unprecedented monetary policy settings in the form of the cheapest borrowing rates in history to put downward pressure on the Aussie dollar".</p>
<p>Joye suggests "when the RBA cut rates in February it judged the local housing market was cooling".</p>
<p>"Much like it thought rate cuts in 2013 would not fuel an unsustainable housing boom that would force regulators to introduce macro-prudential rules to slow credit growth running at three times the rate of incomes," Joye wrote.</p>
<p>"On all these counts the RBA's forecasts have proven badly wrong.</p>
<p>"It has probably been blindsided by housing dynamics over the last couple of years because it has never confronted these conditions before.</p>
<p>"Back in 1991 the value of housing debt divided by disposable household incomes was just 35%.</p>
<p>"Today it is over 140% - beyond any previous peak.</p>
<p>"And climbing every day."</p>
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"RBA is blowing the mother of all housing bubbles": Chris Joye

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<p>The buyers' agent Richard Wakelin has suggested the potential policy levers could be pulled that could be used to temper the Sydney property boom.</p>
<p>1) The NSW government could hike stamp duty.</p>
<p>2) The NSW government could reduce first-home buyer grants to dampen demand.</p>
<p>3) The supply of new property could be improved through reducing infrastructure charges levied on developers.</p>
<p>4) Government could heavily tax land-bankers, adopting a solution used in recent times by the Chinese government.</p>
<p>5) Councils could reduce the red tape around planning and redeployment of vacant sites.</p>
<p>6) Macro prudential policy could also be tailored such that banks have to observe tighter lending rules in Sydney than elsewhere in the country.</p>
<p>"Of course, many of these actions would be unpopular in certain quarters and others would have undesirable consequences," Richard Wakelin told The Australian Financial Review.</p>
<p>"For instance, a lax planning regime would likely exacerbate an acute issue.</p>
<p>"Moreover, to work, these policy prescriptions would require an as-yet unseen degree of coordination between the various levels of Australian governments.</p>
<p>"That is clearly unlikely, particularly in the lead-up to a NSW state election.</p>
<p>"But this more holistic approach is perhaps something for the future," he suggested.</p>
<p>{mijopolls 94}</p>
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Six solutions to cool the Sydney property market boom

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<p><span>Economist Paul Bloxham is worried about the Sydney property market.</span></p>
<p>Speaking at the Australian Mortgage Innovation Summit, HSBC’s chief economist, Paul Bloxham, said the only housing market that the RBA and APRA needed to be cautious of was Sydney. <br><br>"In Sydney, this is going to be quite a challenge.</p>
<p><span>"The rest of the market doesn’t look over inflated. </span></p>
<p><span>"I don’t think there is a housing bubble in Australia. </span></p>
<p><span>"I think that if Sydney sees the same trends as we have seen over the last year or two, that is house prices is running at an annual inflation rate of 13% year on year, then if that continues for very much longer than you will need to see prices at some point will come down.”</span></p>
<p><span>The summit was hosted by Asia-Pacific Banking &amp; Finance, and reported on by <a href="https://www.brokernews.com.au/news/breaking-news/economist-doubts-macroprudential-tools-will-cool-off-housing-197298.aspx" target="_blank">Australian Broker Online</a>.</span></p>
<p><span>Bloxham said the Reserve Bank should follow New Zealand's macro-prudential policies, in the form of LVR caps.<br><br>“Those tools were effective for a very short period of time, but then the RBNZ followed up with lifting interest rates,” he said. <br><br>“We had the RBNZ lift interest rates by 100bps last year between March and July. It was really probably that lift in interest rates that was the main thing that kept the housing market contained in the end.”</span></p>
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No Australian housing bubble, but watch Sydney: HSBC's Paul Bloxham

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<p>Craig James has raised the possibility another rate cut added to risks of a bubble developing in the housing market.</p>
<p>He doesn't make any conclusion while noting home prices are at record highs across Australia and annual price growth of 8% remains well above the long-term average growth rate of 4.8%.</p>
<p>"The strength of the housing market will clearly feature at the Reserve Bank Board meeting," he said today ahead of tomorrow's meeting.</p>
<p>He was also reacting to the CoreLogic RP Data Hedonic Australian Home Value index jump by 1.3% in January after lifting by 0.9% in December.</p>
<p>"Home prices are up by 8.0% on a year ago, after recording 7.9% annual growth to December," he said.</p>
<p>The index noted the most affordable 25% of capital city suburbs have recorded a gain of 7.3% in January compared to 8.8% across the middle 50% of suburbs and 7.9% across the most expensive 25%.</p>
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Craig James says housing bubble concerns must be under RBA consideration

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<p><span id="ctl00_ContentPlaceHolder1_lblNewsTitle" class="nItemTitle">Steve Keen,</span><span style="line-height: 1.3em;"> <span>head of economics, politics and history at </span>London’s Kingston University, envisages the RBA </span><span style="line-height: 1.3em;">making a couple of cuts this year - "and possibly more than that".</span></p>
<p><span style="line-height: 1.3em;">"The unemployment in Australia now is the worst it’s been in 10/15 years, and the only thing keeping it up is the housing bubble because that is pumping borrowed money into the economy, people are spending that money, and of course also foreign buyers pumping money and buying real estate," he told Lelde Smits from the <em><a href="https://www.finnewsnetwork.com.au/archives/finance_news_network108975?utm_source=Finance+News+Network%2C+FNN+Investor.&amp;utm_campaign=d8898229af-FNN_Investor_Daily_Afternoon_21_01_2015&amp;utm_medium=email&amp;utm_term=0_93a5b03408-d8898229af-137686745" target="_blank">Finance News Network</a> .</em></span></p>
<p><span style="line-height: 1.3em;">"<span>Those are really the only two massive inflow sources into the economy. </span></span></p>
<p><span style="line-height: 1.3em;"><span>"If the housing bubble pops then that inflow also stops and we therefore have a downturn driven by having finally a housing bubble bursting. </span></span></p>
<p>"So those dangers are there, you can see plenty of reasons for the cash flow spigot to be turned off, I can’t see many ways of turning it on anymore."<br> <br>He would be surprised to see it below the 2%, but wouldn’t be amazed.</p>
<p>He  suggests what he sees as the bubble could keep going, "but what it means is we are more and more fragile on the bubble continuing indefinitely".<br> <br>Asked for the catalyst for the property bubble to pop, Keen sees two things.</p>
<p>"Partly the economy itself slowing down so much that the negative returns in rental become excessive.</p>
<p>"Those people are having carrying costs and of course passing those carrying costs on to the Australian public through negative gearing, but they none the less have those carrying costs to handle.<br> <br>"And also, if there is anything going wrong in China.</p>
<p>"Things going wrong in China can go in both directions, we have a serious downturn in China, then it’s quite possible Chinese capital could respond by going offshore and do more buying overseas.</p>
<p>"So a slowdown in China, because it is a speculative slowdown, doesn’t have to mean a slowdown in demand for Australian real estate."</p>
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