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

Joel Robinson

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

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

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

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

Kooyongkoot wins Gold and Silver at Better Future Melbourne Design Awards

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

The apartment price gap drawing Sydney buyers west

A luxury beachfront apartment at Rainbow Bay has more than doubled in value since it sold off the plan six years ago, setting a new local apartment record in the process.

The three-bedroom apartment in the Flow development on Petrie Street, the first of four new projects locally by Paul Gedoun's S&amp;S Projects, has sold for $7.4 million, after originally selling for $3.27 million when the project launched in 2020.

The seventh-floor apartment, comprising 187 sqm of internal living space and a 54 sqm balcony overlooking Froggies Beach and Snapper Rocks, was purchased by a local family.

The transaction was negotiated by Pezet Matheson director Kerry Pezet and equates to more than $30,000 per sqm.

Pezet said the sale reflected the limited opportunities to buy into the boutique beachfront development.

"The sale highlights the rarity of opportunities within the boutique beachfront development, where residences seldom become available," Pezet said.

"Flow is one of the Gold Coast's most tightly held buildings. Buyers from our database move quickly when residences become available, and achieving an off-market sale at $7.4 million demonstrates the depth of demand for property of this calibre."

<img alt="Flow" data-entity-type="file" data-entity-uuid="c585b206-2130-4eee-a50c-3f27c51a7c70" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-06%20at%208.33.25%E2%80%AFPM.png?VersionId=m3pHRDV62Y3fvN.XQuQHq.52ilTWpRLf" />

Flow was the first of four luxury apartment developments delivered by Paul Gedoun's S&amp;S Projects at Rainbow Bay and was completed in 2023.

Positioned on the beachfront overlooking Snapper Rocks, the residence includes three bedrooms, three bathrooms, a powder room and views stretching north along the coastline towards Surfers Paradise.

Pezet Matheson Residential principal Mitchell Lambert said buyers continued to prioritise quality beachfront apartments in tightly held locations.

"Flow Residences offers a rare combination of elevated beachfront positioning, architectural excellence, comprehensive resident amenity and premium finishes, which is exactly what discerning purchasers are seeking," Lambert said.

"The transaction further reinforces Rainbow Bay's reputation as one of Australia's premier coastal lifestyle destinations, where limited supply and growing demand continue to support strong market performance."

Pezet Matheson originally marketed and sold out Flow off the plan, making the latest transaction a return to one of the project's original buyers.

Paul Gedoun is selling his third project, <a href="https://www.apartments.com.au/new-apartments/radia-rainbow-bay-271-boundary-street-coolangatta-qld-4225">Radia Rainbow Bay</a>, after recently completing, and selling out, <a href="https://www.apartments.com.au/buildings/esprit-217-227-boundary-street-coolangatta-qld-4225">Esprit</a>. He has plans for a <a href="https://www.apartments.com.au/news/qld/first-look-s-s-projects-proposes-88-apartment-wellness-tower-at-coolangattas-boundary-street">fourth building</a>, 88 apartments on <a href="https://www.apartments.com.au/new-apartments/209-213-boundary-street-coolangatta-qld-4225">Boundary Street</a>.

Rainbow Bay apartment doubles in price since off the plan sale during pandemic

Cameron Kusher

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Taxation revenue from property continues to climb, according to CoreLogic’s latest Property Pulse.
The property data firm says that revenue earned from property taxes has seen a bolstering of state and local government bank accounts with the latest Australian Bureau of Statistics (ABS) data showing that state and local governments nationally collected $49.567 billion (51.9 percent) of their total taxation revenue from property, a record high proportion and 9.6 percent higher over the year.
Stamp duty on conveyances accounted for the largest overall proportion of property tax revenue.
Over the 2015-16 financial year, state and local governments raised $20.607 billion in revenue from stamp duty, accounting for 41.6 percent of total property tax revenue.
According to CoreLogic research analyst Cameron Kusher, as a proportion of total property tax revenue, stamp duty has previously been higher however, over the past few years there has been a substantial increase in the value of revenue collected from stamp duty.
<a href="https://www.propertyobserver.com.au/images/2017/05/04/Screen%20Shot%202017-05-04%20at%2011.08.45%20am.jpg" target="_blank">Click to enlarge</a>
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He said, “It is pretty easy to see what booming housing markets do for state government coffers with the NSW and Vic governments seeing stamp duty revenues surge.
Of course, when the housing market isn’t booming it has a substantial impact on stamp duty revenue, see NSW and Vic in 2008-09 and WA more recently.
The uncertainty surrounding stamp duty and its dependence on stock turnover makes it an inefficient and volatile source of taxation revenue.
Because stamp duty is only collected from properties which transact, the state governments are relying on values and transactions rising across the 5% to 7% of properties which turnover in any given year to drive their major source of property tax revenue.”
<a href="https://www.propertyobserver.com.au/images/2017/05/04/Screen%20Shot%202017-05-04%20at%2011.08.55%20am.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/05/04/Screen%20Shot%202017-05-04%20at%2011.08.55%20am.jpg" alt="">
CoreLogic also noted that the three largest sources of property tax revenue; land tax, municipal rates and stamp duties on conveyances, accounted for 90.3% of all property related tax revenue to state and local governments in 2015-16 and 46.9% of total taxation revenue.
Mr Kusher said, “We already know that $20.607 billion in tax revenue came from stamp duty on conveyances, a further $7.237 billion came from land taxes and $16.924 billion came from municipal rates.”
“Land taxes and municipal rates are much more guaranteed income streams than the more volatile stamp duty on conveyances.
<a href="https://www.propertyobserver.com.au/images/2017/05/04/Screen%20Shot%202017-05-04%20at%2011.09.06%20am.jpg" target="_blank">Click to enlarge</a>
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For this reason, it would make sense to move from stamp duty to a much more efficient, easier to collect and holistic land tax.
The reality is that any such move is unlikely to be supported by the NSW and Vic governments currently given how much revenue these states continue to rake in due to the ongoing housing booms in Sydney and Melbourne,” he said.
<a href="https://www.propertyobserver.com.au/images/2017/05/04/Screen%20Shot%202017-05-04%20at%2011.09.12%20am.jpg" target="_blank">Click to enlarge</a>
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Cameron Kusher is research analyst for CoreLogic. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>.
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jonathanchancellor-7SQnKwU6yx

Tax revenue from property continues to climb: CoreLogic

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Low interest rates coupled with higher levels of demand for housing has seen property sales in some areas take off faster than in others, according to CoreLogic’s latest Property Pulse.
The property data firm will take a look at the 10 suburbs in each state with the shortest median selling time for houses and units over the 12 months to January 2017.
CoreLogic research analyst Cameron Kusher said that given mortgage rates have fallen over recent years, certain cities, namely Sydney and Melbourne, have seen heightened demand and a rapid rate of sale for properties.
<a href="https://www.propertyobserver.com.au/images/2017/04/27/Screen%20Shot%202017-04-27%20at%209.52.28%20am.jpg" target="_blank">Click to enlarge</a>
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(Note - today’s analysis only calculates where there were at least 10 observations of paired listings and subsequent sales over the year and is calculated on private sales excluding properties advertised for auction due to the selling time for an auction is often better described as a marketing period that typically lasts for around six weeks.
The figure is calculated by the difference from the date at which a property is first listed compared to its contract date).
<a href="https://www.propertyobserver.com.au/images/2017/04/27/Screen%20Shot%202017-04-27%20at%209.52.37%20am.jpg" target="_blank">Click to enlarge</a>
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Montagu Bay in Hobart now has the shortest median days on market for houses over the past year at five days. For units, South Penrith and Wyoming in Sydney has the shortest median days on the market at 7 days.
The most obvious trend is that the majority of suburbs listed are within capital cities. This is generally the case across each state and territory.
The CoreLogic analysis highlights that housing market conditions are generally stronger in the capital cities than they are in regional areas.
Mr Kusher said, “In most instances, the suburbs that are not in capital cities are located in regions close to the capital city, highlighting how housing demand has rippled outwards from the capital cities as prices rise.”
<a href="https://www.propertyobserver.com.au/images/2017/04/27/Screen%20Shot%202017-04-27%20at%209.52.48%20am.jpg" target="_blank">Click to enlarge</a>
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Although Sydney and Melbourne have grabbed the headlines over recent years for their comparatively strong rates of capital growth, in other capital cities there are suburbs experiencing a very rapid rate of sale.
For example, Brisbane values have increased by less than 5 percent over the past year but each of the suburbs listed for houses have a median days on market figure of less than 20 days.
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Mr Kusher said With mortgage rates and the number of properties available for sale remaining low we would anticipate that the current rapid rate of sale in Sydney, Melbourne, Hobart and Canberra will remain low, however there have been some early signs that stock levels are starting to rise which may lead to an easing in the perceived urgency to buy across some markets.
"Outside of these areas, suburbs in sought after locations with relatively low stock available for sale are also likely to see transactions occurring at a fairly rapid pace, especially if vendors ensure that they are setting realistic initial listing prices.”
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Where are the top ten fastest selling suburbs?: Cameron Kusher

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Accessing super offers little help for buyers looking to purchase in Sydney and Melbourne first time home buyers expecting to use superannuation savings as a deposit for a property, according to CoreLogic research analyst Cameron Kusher.
“Money accumulated in funds is relatively immature and unlikely to sufficiently boost buying power in order to enter into the market,” he said.
"Last week the ABC crunched some numbers for purchasing using superannuation.
"They developed figures which showed that based on the average earnings for a 25 to 34 year old, including their 9.5 percent super and a $7,125 per annum co-contribution, and assuming returns of 3.2 percent per annum, the average person in this age group could save $45,545 in their super.
“For arguments sake, let’s say they could have a deposit of $50,000 which means if the buyer put down a 10 percent deposit, they could possibly purchase a property worth up to $500,000.
"Keep in mind that they would still have to pay lender’s mortgage insurance (LMI) if they were borrowing more than 80 percent of the value of the property.”
 “Ultimately, a purchase price of $500,000 is not going to allow the potential buyer to access very many detached homes in Sydney and Melbourne, particularly if they want to live closer to the city.”
Click to enlarge
<img src="https://www.urban.com.au/images/2017/04/27/Screen%20Shot%202017-04-27%20at%2010.01.09%20AM.png" alt="">
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Outside of Sydney and Melbourne, CoreLogic research confirmed that there are far greater options for potential first home buyers with a purchase price of $500,000.
“Keep in mind when we talk about the national housing affordability challenges, it is largely a Sydney and Melbourne problem.”
What your super money will get you: Sydney: Only 4.1 percent of all the suburbs in the city have a current median house value of $500,000 or less and 19.7 percent of suburbs have a median unit value of $500,000 or less. Gosford, Wyong and Blacktown are the dominant council areas for the locations of this house.
For units, potential buyers can make it closer to the inner city; however, the closest area will be the council areas of Auburn and Parramatta council areas. Melbourne: With a budget up to $500,000 potential purchasers in Melbourne will have access to 18.7 percent of suburbs for houses and 50.1 percent of suburbs for units.
For a house, the closest you will find to the city centre in Melbourne is within the Hume council area close to the airport. For a unit there are far more options and this budget would get you as close as central Melbourne with units in Melbourne, Kensington and Carlton having a median value of less than $500,000.
Canberra and Darwin: Residents of Canberra (7.1 percent) and Darwin (7.5 percent) also have very little access to houses throughout the city with a budget of $500,000. At the same time, a majority of suburbs have a median unit value of $500,000 or less in Canberra (83.2 percent) and Darwin (90.6 percent).
Brisbane, Adelaide, Perth &amp; Hobart: Residents of Brisbane (39.6 percent), Adelaide (47.9 percent), Perth (37.8 percent) and Hobart (76.6 percent) have much greater access to houses worth $500,000 or less. In each of these cities a budget of $500,000 would allow buyers to purchase a unit in at least three quarters of all the suburbs across the city.
“Both the ABC data and our research highlights that access to superannuation to purchase a home would largely help buyers outside of Sydney and Melbourne. With both cities being the housing markets most stretched for affordability, allowing first-time buyers to access their Super for a deposit is going to make little difference in affording these buyers with access to the housing market.”
“Furthermore, accessing superannuation has the potential to add to housing demand which is already outstripping supply and potentially lead to even greater increases in values not only in Sydney and Melbourne but potentially elsewhere as well.” 
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Accessing super little help for buyers looking to purchase in Sydney and Melbourne: Cameron Kusher

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Nine out of 10 people who sold a property during the December 2016 quarter made a profit according to the latest CoreLogic Pain &amp; Gain report.
Based on house and unit resales, $18.8 billion in profit was realised over the quarter; the median profit for resales was $172,000.
In contrast, the total gross losses realised over the quarter was recorded at $467 million with a median gross loss of $33,000 per sale.
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Nationally, this equates to 8.9% of the dwellings that resold over the final quarter of 2016 transacted for less than their previous purchase price, and moderately lower than the 9.3% over the September 2016 quarter. However, when compared with the December 2015 quarter, the proportion of loss-making sales has increased from 8.2% of all resales at a loss. 
Report author Cameron Kusher said Capital city housing markets continued to record a lower proportion of loss-making resales than regional areas of the country.
“Regional area trends are showing that homes reselling at a loss are lower in coastal and lifestyle markets, while in the markets linked to the resources sector, losses remain very high although they have eased a little over the quarter.”
An area breakdown (see below) identifying the profits and losses performance differences over the December 2016 quarter delivers some interesting observations. 
As an example, in Sydney’s inner north, the council area of Willoughby recorded the highest median loss over quarter at $803,000, while close neighbour Hunters Hill recorded the highest profit in the city at $113,000.  In Melbourne, Nillumbik experienced the highest median loss at $379,000 while the Booroondara profited by $653,750.
The below table provides a snapshot (more in attached report) of the areas to experience the greatest median losses, lowest median losses, greatest median profits &amp; lowest median profits.
<a href="https://www.corelogic.com.au/resources/img/media-releases/2017-03-31--Pain_Gain-1.jpg" target="_parent">CLICK TO ENLARGE</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/20/2017-03-31--Pain_Gain-1.jpg" width="700" height="425">
The CoreLogic Pain &amp; Gain data shows that across the country, 7.6% of houses and 12.3% of units that resold over the December 2016 quarter transacted for less than their previous purchase price.  In the capital cities, the proportion of houses resold at a loss over the quarter (5.4%) were almost half that of units (10.0%) while across the regional markets, the proportion of house resales at a loss (7.6%) was much lower than the 17.8% of units resold at a loss.
Mr Kusher said Sydney was the only region where the proportion of units resold at a loss over the quarter was actually lower than houses. 
"On the other hand, in Melbourne, Brisbane and the ACT the proportion of units resold at a loss over the quarter was more than five times greater than houses resold at a loss.” 
“A retrospective look at the data indicates that it has been extremely rare for resales of houses to record a higher proportion of loss than units.  This is reflective of the fact that house values have typically increased at a more rapid pace than units.” 
“In a market like Sydney, where more units have been built than houses over the past two decades, and the gap between house and unit prices is substantial, the trends have changed recently with units proving less likely to resell at a loss than houses.
“This is likely linked to the fact that there is a wide gap between house and unit prices in the city and for many units are now the only option for home purchase,” Mr Kusher said.
<img src="https://www.corelogic.com.au/resources/img/media-releases/2017-03-31--Pain_Gain-2.jpg" alt="2017-03-31--Pain_Gain-2" width="800" height="528">
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SEQ property sale loss felt especially at Somerset

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The Australian Tax Office (ATO) released their taxation statistics for the 2014-15 financial year last week, and from a housing market perspective it provides some really valuable data on property investor behaviour.
<a href="https://www.propertyobserver.com.au/images/2017/04/20/rsz_the_number_of_individuals_claiming_a_net_rental_loss_has_flat_lined_over_recent_years__.png" target="_blank">CLICK TO ENLARGE</a>
<img src="https://www.urban.com.au/images/2017/04/20/rsz_the_number_of_individuals_claiming_a_net_rental_loss_has_flat_lined_over_recent_years__.png" width="700" height="425">
Over the 2014-15 financial year, property investors claimed $11.120 billion in net rental losses compared to $7.491 billion in net rental profit.  The value of net rental profit rose by 0.3% over the year while the value of net rental losses was -2.3% lower resulting in an overall position of $3.628 billion in net rental losses claimed over the year. The $3.628 billion in rental losses over the year was the lowest value of overall losses since 2003-04.
<a href="https://www.propertyobserver.com.au/images/2017/04/21/rsz_pct_of_individuals.png" target="_blank">CLICK TO ENLARGE</a>
<a href="https://www.propertyobserver.com.au/images/2017/04/21/rsz_pct_of_individuals.png" target="_blank"><img src="https://www.urban.com.au/images/2017/04/21/rsz_pct_of_individuals.png" width="700" height="425"></a>
Over the 2014-15 financial year, 15.7% of individuals claimed net rent. Overall, 6.0% of individuals claimed a net rent profit, and 9.7% of individuals claimed a loss.
The data also highlights that a relatively small proportion of individuals actually own an investment property, but the portion is growing. In the 2004-05 financial year, 13.6% of individuals claimed net rent. In 1994-95, the figure was 11.3%.
<a href="https://www.propertyobserver.com.au/images/2017/04/21/rsz_net_rental_profit.png" target="_blank">CLICK TO ENLARGE</a>
<img src="https://www.urban.com.au/images/2017/04/21/rsz_net_rental_profit.png" width="700" height="425">
The above table breaks down the proportion of total individuals that are claiming a net rental profit or loss by their age.  Individuals aged 70 to 74 years of age are the most likely to be claiming a net rental profit while individuals aged between 50 and 54 years of age are the most likely to be claiming a net rental loss.
If we look at the proportion of total net rental loss/profit claimants by age group, the trends are quite interesting.  Less than a quarter (24.4%) of those individuals claiming a net rental profit are less than 45 years of age.  Conversely, almost half of those individuals claiming a net rental loss over the year were under 45.   The table shows that as an individual ages, they are increasingly less likely to be claiming a net rental loss.
<a href="https://www.propertyobserver.com.au/images/2017/04/21/rsz_average_net_rental.png" target="_blank">CLICK TO ENLARGE</a>
<img src="https://www.urban.com.au/images/2017/04/21/rsz_average_net_rental.png" width="700" height="425">
Looking at the average net rental profit/loss by age group shows that older individuals are likely to claim greater net rental profits.  At the same time, individuals aged between 50 to 54 years of age are likely to be claiming the greatest losses.
<a href="https://www.propertyobserver.com.au/images/2017/04/21/rsz_loss_by_income.png" target="_blank">CLICK TO ENLARGE</a>
<img src="https://www.urban.com.au/images/2017/04/21/rsz_loss_by_income.png" width="700" height="425">
Individuals with a taxable income of between $500,001 and $1 million are most likely to be claiming a net rental profit while individuals earning between $40,000 and $50,000 are the least likely to claim net rental profits.  In terms of net rental losses, 23.8% of all individuals with taxable incomes between $250,001 and $500,000, as well as $500,001 and $1 million, are claiming net rental losses.  As taxable incomes increase, the data shows that these individuals are overall more likely to own rental properties and therefore claim either a net rental profit or loss.
<a href="https://www.propertyobserver.com.au/images/2017/04/21/rsz_claimants_of_net_rental.png" target="_blank">CLICK TO ENLARGE</a>
<img src="https://www.urban.com.au/images/2017/04/21/rsz_claimants_of_net_rental.png" width="700" height="425">
Looking only at those individuals claiming a net rental profit or loss, the most likely to be claiming either have a taxable income of $100,001 to $150,000.  The least likely income range to be claiming a net rental loss or profit are those with a taxable income of more than $1 million.The above table shows the average net rental profit or loss claimed by taxable income ranges. People with a higher taxable income generally receive both the greatest average net rental profits and net rental losses.  
<a href="https://www.propertyobserver.com.au/images/2017/04/21/rsz_the_number_of_individuals_claiming_a_net_rental_loss_has_flat_lined_over_recent_years___1.png" target="_blank">CLICK TO RESIZE</a>
<img src="https://www.urban.com.au/images/2017/04/21/rsz_the_number_of_individuals_claiming_a_net_rental_loss_has_flat_lined_over_recent_years___1.png" width="700" height="425">
Previous data has shown that relatively few people sit in the higher taxable income brackets however, those that do and own an investment property enjoy substantially greater average profit or loss from those rental properties.
<a href="https://www.propertyobserver.com.au/images/2017/04/21/rsz_2012-2013.png" target="_blank">CLICK TO EXPAND</a>
<img src="https://www.urban.com.au/images/2017/04/21/rsz_2012-2013.png" width="700" height="425">
The final table highlights the number of individuals with interests in rental properties over the three most recent years along with how many properties they have an interest in. Overwhelmingly most people that have an interest in a rental property have an interest in only one with 90.3% of individuals having an interest in two or fewer rental properties.  
Over the most recent year, the number of individuals with an interest in five properties has recorded the greatest growth (7.4%) followed by: six or more properties (5.3%), four properties (4.5%), three properties (4.0%), two properties (3.4 properties) and one property (1.7%).
The data provides great insight into the characteristics of property investors.  The data shows that just under 16% of individuals are property investors and, over recent years, the number claiming a net rental loss has been relatively unchanged.  
Furthermore, as interest rates have fallen, relatively fewer individuals are claiming a net rental loss.  As you would expect, people in the middle of their working life are most likely to be claiming net rental losses and older individuals are most likely to be earning a profit from their rental property.  Those on higher incomes tend to claim higher average net rental profits and losses.  
Finally, for most Australians that own a rental property, they only own one. However, individuals with a greater number of investment properties have been experiencing faster growth than those with relatively few properties over recent years. With interest rates having fallen even further since June 2015 we would anticipate that the total value of net rental losses has also reduced.  At the same time we have seen investment lending become more active since mid-2015. 
It will be interesting to see if that reflects a greater number of individuals owning investment properties, or those that already own investment properties buying more.  We will have to wait until next year’s data to see how this plays out.
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The number of individuals claiming a net rental loss has flat-lined over recent years: Cameron Kusher

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Data recently released by the ABS shows that household net worth has increased substantially over recent years however, household debt is also climbing to new record highs.
The ABS’ recent release on finance and wealth for the December 2016 quarter showed that the net worth of Australian households was $9.405 trillion. 
This comprised $11.710 trillion in assets minus $2.306 trillion in liabilities (including share capital). 
Over the 12 months to December 2016, net worth has increased by 8.3% with asset values increasing by 7.9% and liabilities increasing by 6.4%. 
The data breaks out the value of residential land and dwellings which as at the end of 2016 was valued at $6.114 trillion having increased by 8.3% over the year. 
Residential land and dwellings accounts for 52.2% of total household assets.
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<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/12/2017-04-10--image1.jpg" alt="">
Using the data that the ABS publishes on wealth, the Reserve Bank (RBA) publishes a number of finance ratios for households comparing debt and assets to disposable incomes.
At the end of 2016, the ratio of household debt to disposable income was recorded at 188.7%, the highest on record and rising by 1.6 percentage points over the quarter and 3.1 percentage points over the year. 
The ratio of housing debt to disposable income was recorded at 133.8% which was also a record high. 
Based on this data, 70.9% of total household debt was housing debt. 
Over the quarter, housing debt increased by 1.5 percentage points and was 4.5 percentage points higher over the year.
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While the ratios of household and housing debt to disposable incomes is at record-high levels, so too are the ratios of household and housing assets to disposable incomes. 
The ratio of housing assets to disposable incomes sits at 910.6% having increased by 23.2 basis points over the quarter and 42.2 basis points over the year. 
Meanwhile, the ratio of housing assets to disposable income sits at 500.4% having increased by 18.2 basis points over the quarter and 23.8 basis points over the year. 
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Comparing household debt to assets results in a ratio of 20.7% while the figure for housing debt to housing assets is 26.7%. 
This indicates that although household and housing debt is at an historic high level, the value of the assets that this debt is held against is also higher than it has ever been. 
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The data within this report should be viewed with some caution because it is not a granular analysis; so while the national figures may show a strong financial position, at smaller geographies, particularly where dwelling values are falling, the position is likely to be dramatically different. 
With regard to debt, the figure is measured as a national measure and includes those households that are renting and those that own a home but carry no housing debt.
Some households have held their homes for many years and paid down a substantial amount of the debt on the home. 
For those that have either recently purchased, bought at the peak of a market which has since declined or those using interest-only mortgages they are unlikely to be in such a strong position as the national figures indicate. 
Those that don’t own a property asset are also likely to have substantially less household assets than those that do own a home.
Overall household debt is higher than it has ever been and although asset values are also at a record high, there remains concerns about how healthy it is to have such high levels of private debt. 
Furthermore, high debt, particularly for recent purchasers of residential properties, creates risks in the event of a housing market downturn which could see home owners enter into a period of negative equity. 
Especially with the heightened level of investor purchasing recently, investors have demonstrated a greater willingness to sell at a loss because that loss can be offset against future gains. 
Those that own owner occupied property do not enjoy a similar ability to offset these losses and are potentially much more financially vulnerable in the event of a housing market downturn. 
The high level of household debt is also expected to limit the ability for the RBA to lift interest rates suggesting that a neutral cash rate setting will be lower than it has been in the past.
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Household net worth sits at $9.406 trillion: Cameron Kusher 

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Building activity data released by the ABS showed there were more newly built units completed over the December 2016 quarter than houses, the first time on-record this has occurred.
The number of new dwellings approved for construction has recently fallen from historically high levels which will over time result in fewer commencements and completions moving forward. 
The latest building activity data for the December 2016 quarter, showed that dwelling commencements and completions were actually higher over the quarter. 
Meanwhile, the number of dwellings under construction and the number of dwellings approved but awaiting commencement fell.
Over the December 2016 quarter there were 28,690 new houses that commenced construction and 27,887 new units which commenced construction. 
While new house commencements were 3.4% lower, new unit commencements increased by 3.9%. 
Since the end of 2016 there has been a substantial decline in house and unit approvals so it is reasonable to expect that dwelling commencements will follow the lead of approvals and start to trend lower over the coming quarters.
<a href="https://www.propertyobserver.com.au/images/2017/04/18/Screen%20Shot%202017-04-18%20at%202.58.27%20pm.jpg" target="_blank">Click to enlarge</a>
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In terms of dwelling completions, 28,102 new houses and 28,527 new units completed construction over the December 2016 quarter. 
This marked the first quarter on record that more new units had been completed than new houses. 
New house completions rose by 0.7% over the quarter while new unit completions surged 26.1% to a new record-high.
<a href="https://www.propertyobserver.com.au/images/2017/04/18/Screen%20Shot%202017-04-18%20at%202.58.34%20pm.jpg" target="_blank">Click to enlarge</a>
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At the end of the quarter, there were 64,332 new houses under construction and 152,635 new units under construction. 
There has been little change in the number of houses under construction over recent quarters while new unit construction remains historically high but has begun to fall. 
Interestingly when you look at the individual state data, the number of new units under construction in New South Wales is continuing to climb to new historic highs while the number under construction in Victoria and Queensland, where concerns around inner city unit supply are more pronounced, is now clearly trending lower.
<a href="https://www.propertyobserver.com.au/images/2017/04/18/Screen%20Shot%202017-04-18%20at%202.58.39%20pm.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/18/Screen%20Shot%202017-04-18%20at%202.58.39%20pm.jpg" alt="">
Finally if we look at the number of new houses and units approved for construction but not yet commenced, there were 9,814 houses and 29,044 units yet to start the construction phase. 
The number of new houses approved but not commenced increased by 5.0% over the quarter while the number of new units fell by 11.7% from its historic high the previous quarter.
<a href="https://www.propertyobserver.com.au/images/2017/04/18/Screen%20Shot%202017-04-18%20at%202.58.43%20pm.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/18/Screen%20Shot%202017-04-18%20at%202.58.43%20pm.jpg" alt="">
With dwelling approvals having fallen quite significantly from record high levels since December 2016 it is reasonable to expect that there will be fewer commencements going forward, particularly for units. 
Completions on the other hand could remain high for some time given that there are still many houses and units under construction. 
New house and unit completions have averaged 43,497 a quarter over the past five years, even if there were no additional new commencements based on this run-rate it would take almost five quarters for the stock to clear.
It is also important to note the fact that the number of units under construction has started to decline in Victoria and Queensland while it continues to rise in New South Wales. 
Commencements data shows that the number of starts have also fallen in Victoria and Queensland while they continue to trend higher in New South Wales. 
The pull-back in Victoria and Queensland for commencements is probably related to unit oversupply concerns in the inner city areas of the state capitals. 
In fact the rate of growth for units is already dramatically lagging that of houses in Melbourne and Brisbane while the same trends are not evident in Sydney.
It is clear that the market is responding to the heightened level of dwelling construction over recent years. 
While it appears that in most states commencements are now falling they have continued to climb in New South Wales which ultimately is positive given it is the state with the largest overall undersupply of housing.
Cameron Kusher is research analyst for CoreLogic. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>.
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Newly built apartments outnumber houses for the first time on record: Cameron Kusher

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With recent record high levels of new housing construction and investor mortgage activity, the supply of housing stock available for rent is climbing and is expected to continue to increase.
Australia has a growing population and the people moving to Australia need to be housed somewhere.  
Over recent years the uplift in population growth has not been met with a commensurate rise in property sales. Rental advertisement counts suggest that the population growth is increasingly being housed via investment housing (rental accommodation) which aligns with the lift in investor housing finance commitments over recent years.
Over the 12 months to January 2017, there were 362,708 houses advertised for rent and 287,233 units advertised for rent nationally. 
The number of rental advertisements over the past year was 8.7 percent higher for houses and 9.3 percent higher for units.  The rental market is currently seeing historic low rates of rental growth and with the amount of rental accommodation ramping up it is easy to see why.  Keep in mind this data is only those properties advertised for rent and not every rental property will be advertised for rent each year.
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<img src="https://www.urban.com.au/images/2017/03/14/2017-03-13--image1.png" width="571" height="187">
The two tables within this report highlight the council areas that have seen the greatest increases and decreases in rental advertisements over the past year.  Note that we have only included council areas that have had at least 1,000 rental advertisements over the 12 months to January 2017.
Click to enlarge
 <img src="https://www.urban.com.au/images/2017/03/14/2017-03-13--image2.png" width="561" height="508">
Western Australia council areas feature heavily on the list of regions that have seen the greatest increase in rental advertisements over the year, many of which are located in Perth.  Investor activity has been sluggish in WA so this may indicate that as the economy has weakened and people have migrated away from WA, perhaps home owners are looking to rent out their home rather than selling into weak market conditions. 
A number of NSW regions are also featured on the list and this is probably more reflective of the ramping-up of housing supply purchased by investors.
Of those regions with at least 1,000 rental advertisements over the past year, only 17 council areas have actually seen a decline in rental advertisements over the year.  Two of the improving housing markets for value growth, Canberra and Hobart, are amongst these 17 council areas. 
The areas with less rental stock advertised than a year ago also tend to be more slanted towards regional areas rather than capital cities.  
This is not surprising given that housing supply has largely been increasing in capital cities rather than regional markets.  Despite the housing construction boom in Sydney at the moment, Kogarah, Warringah and Manly have recorded fewer properties advertised this year compared to last year, signaling tighter rental conditions.
Click to enlarge
<img src="https://www.urban.com.au/images/2017/03/14/2017-03-13--image3.png" width="564" height="506">
With a record high number of new dwellings still under construction, most of which are units and many of which have been purchased by investors, it is anticipated that the number of properties advertised for rent will continue to rise. 
The impact of this is that rental growth is likely to remain dampened and those in the rental market in most regions will have an increasing number of properties to choose from.  For owners of investment properties and property managers should be mindful of their local rental conditions, and set their weekly rents accordingly to maximize their occupancy as well as income. 
Landlords in areas where the supply of rental properties has shown a rise may find they need to hold their rents steady or in fact, provide a discount on their rental expectations in order to keep or attract tenants.
Cameron Kusher is research analyst for CoreLogic. You can contact him <a href="https://blog.corelogic.com.au/about/" target="_blank">here</a>
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Rising rental listings signal ongoing softness across some rental markets: Cameron Kusher

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New South Wales and Victoria now account for a historically high proportion of national mortgage demand which continues to drive dwelling values much higher across these two cities compared with other regions.
The current housing market growth phase has really been all about Sydney and Melbourne.
When you look at dwelling value growth, increases have been substantially higher in Sydney and Melbourne than in all other capital cities.
At the same time, demand for mortgages has surged across NSW and Vic (both of which are proxies for Sydney and Melbourne) while it has barely increased across the remaining states and territories.
The first chart highlights the change in capital city dwelling values over the current growth phase.
The growth phase broadly began in June 2012 and over the period, only Sydney and Melbourne have recorded value rises greater than 21%.
The rise in values has been supported by low interest rates and availability of mortgage finance however, other factors such as localised economic performance, population growth and foreign demand have driven the much stronger growth in Sydney and Melbourne than across the other capital cities.
<a href="https://www.propertyobserver.com.au/images/2017/02/27/Screen%20Shot%202017-02-27%20at%206.53.06%20pm.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/27/Screen%20Shot%202017-02-27%20at%206.53.06%20pm.jpg" alt="">
Looking at mortgage finance across the states and territories, in December 2016 the value of mortgage lending across each state and territory was recorded at: $14.5 billion in NSW, $9.6 billion in Vic, $5.1 billion in Qld, $1.6 billion in SA, $2.7 billion in WA, $0.3 billion in Tas, $0.2 billion in NT and $0.7 billion in ACT.
Over the month, NSW (41.8%) and Vic (27.7%) accounted for a combined 69.5% of the value of all housing finance commitments which was an historic high.
In June 2012 when the current growth phase commenced, 33.6% of housing finance commitments were in NSW and 27.1% were in Vic.
<a href="https://www.propertyobserver.com.au/images/2017/02/27/Screen%20Shot%202017-02-27%20at%206.53.19%20pm.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/27/Screen%20Shot%202017-02-27%20at%206.53.19%20pm.jpg" alt="">
The value of housing finance commitments for owner occupier housing in December 2016 across the states and territories were recorded at: $7.7 billion in NSW, $6.0 billion in Vic, $3.5 billion in Qld, $1.1 billion in SA, $2.0 billion in WA, $0.3 billion in Tas, $0.1 billion NT and $0.4 billion in ACT.
Since the current value growth phase commenced in June 2012, monthly mortgage lending to owner occupiers has increased from $4.3 billion in NSW and $3.9 billion in Vic.
<a href="https://www.propertyobserver.com.au/images/2017/02/27/Screen%20Shot%202017-02-27%20at%206.53.29%20pm.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/27/Screen%20Shot%202017-02-27%20at%206.53.29%20pm.jpg" alt="">
In December 2016, the value of mortgage lending to investors across the states and territories was recorded at: $6.8 billion in NSW, $3.7 billion in Vic, $1.7 billion in Qld, $0.5 billion in SA, $0.7 billion in WA, $0.1 billion in Tas, $0.1 billion in NT and $0.2 billion in ACT.
More than three quarters (76.3%) of investor mortgage finance nationally in December 2016 was in NSW (49.6%) or Vic (26.7%).
While the proportion of lending to investors has previously been higher in each state, combined they make up the largest share on record.
At the beginning of the current growth phase, 37.3% of national investor finance commitments were in NSW and 25.1% was in NSW.
<a href="https://www.propertyobserver.com.au/images/2017/02/27/Screen%20Shot%202017-02-27%20at%206.53.42%20pm.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/27/Screen%20Shot%202017-02-27%20at%206.53.42%20pm.jpg" alt="">
The data shows just how concentrated mortgage demand nationally is currently in NSW and Vic.
With the demand focused so much on those two states, it’s no wonder values in Sydney and Melbourne have increased so much more than in the other capital cities.
While steps have been made to cool mortgage demand, particularly from investors in Sydney and Melbourne, the data points to the fact that demand remains unquestionably strong.
With interest rates remaining at close to historic lows, it is clear that further changes will be required in order to slow mortgage demand and dampen the increases in dwelling values being experienced in Sydney and Melbourne.
Cameron Kusher is research analyst for CoreLogic. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>.
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Mortgage demand has surged in New South Wales and Victoria: Cameron Kusher

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GUEST OBSERVER
A retrospective look at median dwelling values across the suburbs of Australia shows the bracket creep that has occurred over the current growth cycle, highlighting the deterioration of more affordable housing across the capital cities over the past five years.
At the end of 2016, 7.6 percent of suburbs nationally had a median house value under $200,000 and 5.9 percent of suburbs had a median unit value below $200,000. 
To put these figures into some perspective, 11.4 percent of suburbs had a median house value of at least $1 million and 3.0 percent of suburbs had a median unit value of at least $1 million.
Over the five years to the end of 2016, there has been a substantial decline in the proportion of suburbs with a median value below $400,000. 
At the end of 2011, 53.5 percent of suburbs had a median house value of less than $400,000 and 69.8 percent of suburbs had a median unit value of less than $400,000. 
By the end of 2016, the proportion of suburbs with a median value of less than $400,000 had fallen to 41.0 percent for houses and 55.3 percent for units.
<a href="https://www.propertyobserver.com.au/images/2017/02/20/Corelogic-1.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/20/Corelogic-1.jpg" alt="">
A five year retrospective look at the individual capital cities highlights the significant shift in the proportion of suburbs with a median value under $400,000, particularly in Sydney and Melbourne.
In 2011, the proportion of total suburbs with a median house value below $400,000 across each capital city was: 21.2 percent in Sydney, 28.9 percent in Melbourne, 40.9 percent in Brisbane, 40.5 percent in Adelaide, 31.1 percent in Perth, 69.2 percent in Hobart, 2.1 percent in Darwin and 1.1 percent in Canberra. 
Units offer a more affordable option highlighted by the proportions of suburbs values below $400,000 at: 38.8 percent in Sydney, 48.2 percent in Melbourne, 81.7 percent in Brisbane, 94.3 percent in Adelaide, 59.8 percent in Perth, 92.7 percent in Hobart, 53.3 percent in Darwin and 44.6 percent in Canberra.
<a href="https://www.propertyobserver.com.au/images/2017/02/20/Corelogic-2.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/20/Corelogic-2.jpg" alt="">
By 2015, the proportion of suburbs with a median house value below $400,000 had shifted to: 1.2% in Sydney, 12.2% for Melbourne, 31.4% in Brisbane, 29.5% in Adelaide, 15.5% in Perth, 55.7% in Hobart and 0.0% in both Darwin and Canberra. 
For units, the proportion of suburbs with a median value of less than $400,000 in December 2015 were recorded at: 10.9% in Sydney, 34.9% in Melbourne, 64.4% in Brisbane, 87.7% in Adelaide, 37.2% in Perth, 88.4% in Hobart, 51.4% in Darwin and 50.5% in Canberra.
<a href="https://www.propertyobserver.com.au/images/2017/02/20/Corelogic-3.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/20/Corelogic-3.jpg" alt="">
The proportion of suburbs with a median house value of less than $400,000 at the end of 2016 was recorded at: 0.1% in Sydney, 6.3% in Melbourne, 29.2% in Brisbane, 28.0% in Adelaide, 18.9% in Perth, 52.1% in Hobart and 0.0% in Darwin and Canberra. 
For units the proportions were recorded at: 6.5% in Sydney, 31.8% in Melbourne, 62.7% in Brisbane, 85.1% in Adelaide, 46.4% in Perth, 88.4% in Hobart, 57.6% in Darwin and 45.8% in Canberra.
<a href="https://www.propertyobserver.com.au/images/2017/02/20/Corelogic-4.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/20/Corelogic-4.jpg" alt="">
Five years ago every capital city except for Darwin and Canberra had at least 20% of suburbs with a median house value of less than $400,000. 
At the end of last year, it was virtually impossible to find houses for less than $400,000 in Sydney, Darwin and Canberra while less than 7% of suburbs had a median house value below $400,000 in Melbourne. 
Across each city there has been a substantial decline in more affordable housing over the past year despite the fact that outside of Sydney and Melbourne there has been only moderate value growth over the period.
Even units have recorded a fairly substantial decline in the proportion of suburbs with a median value of less than $400,000 over the past five years.
At the end of 2016, looking at both houses and units, 20.5% of Sydney suburbs had a median value of less than $600,000 compared to 38.5% of suburbs having a median value of at least $1 million. 
To further highlight deteriorating housing affordability in Sydney, 34.6% of suburbs had a median unit value of less than $600,000 at the end of 2016. 
In each other capital city, a higher proportion of suburbs had a median house value of less than $600,000 than the proportion of suburbs with a median unit value of less than $600,000.
If you are earning a relatively low income in Sydney and are looking to buy a house or unit, you are competing for a rapidly declining pool of housing stock across the city. 
The pool is also declining across the remaining capitals, albeit not at the same pace of decline as in Sydney.
Cameron Kusher is research analyst for CoreLogic. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>.
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Cameron Kusher

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