Repeat buyers are one of the strongest measures of confidence in any apartment development.

At <a href="https://www.apartments.com.au/new-apartments/era-newcastle-west-124-126-bull-street-newcastle-west-nsw-2302">ERA</a> in Newcastle West, some purchasers are returning to <a href="https://www.apartments.com.au/developers/gwh">GWH</a> after living at the developer's One Apartments. Their decision to purchase again was driven by the quality of life they found after moving into their first GWH home.

Keith Wilton had spent years living in a house in East Maitland before deciding it was time for a change. Apartment living had always been on his radar, but he was selective about what he wanted.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/FH_1EzB-1vs?si=XScVlP1ERsTDJoME" title="YouTube video player" width="560"></iframe>

"I had some boxes I wanted to tick," he says.

Keith points to the open-plan design, generous outdoor areas and considered inclusions as key reasons One Apartments worked for him.

“One of those things was a nice indoor open plan area, but also I wanted a nice outdoor open area that I could entertain on in summer or Christmases or birthdays,” he says.

He also found value in the smaller details, from integrated appliances to shared resident spaces including the pool, cinema and rooftop areas.

[smartcode_project:default project_id=135096 project_image_fid=356818]

After comparing several developments, he chose One Apartments because of GWH's longstanding local reputation and his own experience working with the developer on a commercial project more than a decade earlier.

"I knew that they were local, that the quality of the build was going to be up there. I'd looked at other apartment complexes around and close by, and I just knew that here was a better decision location wise."

Today, Keith says the move has completely changed how he experiences Newcastle.

"I enjoy living in this location because it's more of a lifestyle change. That Newcastle city living where you can walk to restaurants and bars and even beaches and parks and even shopping across the road."

[smartcode_project:default project_id=135096 project_image_fid=356828]

Beyond the location, he says it's the sense of community that has surprised him most.

"Everyone loves living here because they chose to live here, but everyone looks out for each other. It's a real great community feel here."

For Aimee and Lyle Goodman, the journey started almost by chance.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/tsioMLcnjas?si=zq-ys3JuWpfa5hFv" title="YouTube video player" width="560"></iframe>

The couple happened to be having coffee in Newcastle when they noticed the site where One Apartments was about to begin construction.

"We were aware GWH was planning a development," Aimee says. "We made one phone call and things moved pretty quickly after that."

As busy business owners, they initially thought apartment living would simply reduce the maintenance that came with larger homes. Instead, it fundamentally changed how they spent time together.

"We actually catch up more as a family now," Aimee says.

"We've had homes with big yards and lots of space, but everyone ended up in different rooms. Here we'll have dinner together, the kids can play, and we spend far more quality time together."

[smartcode_project:default project_id=135096 project_image_fid=356829]

Lyle says their confidence came from GWH's reputation within Newcastle's building industry.

"I know people who've worked across different apartment projects, and whenever GWH came up the feedback was always the same. They're rock solid. They're quality."

That confidence only grew throughout the buying process.

"One of the things that really impressed us with GWH was the whole process, was the communication," Lyle says. "It was consistent, it was regular, there was no problem if we had some weird questions, there was no problems in getting answers."

[smartcode_project:default project_id=135096 project_image_fid=351104]

Aimee says one moment stood out.

"The project actually finished on time. We realised we needed to hurry up and sell our house because everything was happening exactly when they said it would."

The positive experience at One Apartments ultimately gave all three buyers the confidence to purchase again with GWH, this time at ERA.

Their confidence reflects what many buyers are seeking in today's apartment market. Location remains important, but so too does certainty around delivery, quality and long-term liveability.

[smartcode_project:default project_id=135096 project_image_fid=356822]

ERA builds on those foundations with 280 one, two and three-bedroom apartments across two landmark towers in <a href="https://www.apartments.com.au/developments/newcastle-west-nsw-2302">Newcastle West</a>.&nbsp;

Designed by <a href="https://www.apartments.com.au/architects/fk-australia">Fender Katsalidis</a>, the project will include more than 2,000 square metres of resident amenities, including a resort-style pool, gym, sauna, private cinema and rooftop entertaining spaces overlooking the harbour and coastline.&nbsp;

The development is also within walking distance of the Newcastle Interchange, Honeysuckle, Darby Street, the harbour foreshore, restaurants, retail and the city’s beaches, continuing the walkable lifestyle that existing GWH buyers say has transformed how they live.

[smartcode_project:default project_id=135096 project_image_fid=356826]

For Keith, the appeal remains straightforward.

"You feel at home even before you've moved into your home."

For Aimee, the change is measured in time.

“I just felt like I had more time,” she says.

[smartcode_project:default project_id=135096 project_image_fid=351102]

Construction at ERA is now underway, with more than half of the residences already sold and limited two and three-bedroom apartments remaining in the East Tower release. Priced from $980,000 for two-bedroom residences and $1.46 million for three-bedroom residences, buyers can secure an apartment with a 10 per cent deposit, with premium homes offering ocean views from Level 8 and harbour views from Level 10.

ERA is also backed by Resilience Insurance's 10-year Latent Defects Insurance policy, providing protection against structural or waterproofing defects for 10 years after completion. The project is anticipated to be completed in early 2028.

[smartcode_project_cta:default project_id=135096]

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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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.
Mr Kusher found that over the five years to the end of 2016, a substantial decline occurred in the proportion of suburbs with a median value below $400,000.
As a comparison, 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 fell to 41.0 percent for houses, and 55.3 percent for units.
<a href="https://www.propertyobserver.com.au/images/2017/02/16/Screen%20Shot%202017-02-16%20at%2011.20.39%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/2017/02/16/Screen%20Shot%202017-02-16%20at%2011.20.39%20am.jpg" alt=""> 
Looking back at the individual capital cities over the past five years highlights a significant shift in the proportion of suburbs with a median value under $400,000, particularly in Sydney and Melbourne.
Today’s analysis revealed that five years ago, with the exception of Darwin and Canberra, every capital city had at least 20 percent of its 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.
<a href="https://www.propertyobserver.com.au/images/2017/02/16/Screen%20Shot%202017-02-16%20at%2011.20.46%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/2017/02/16/Screen%20Shot%202017-02-16%20at%2011.20.46%20am.jpg" alt="">
We noted that across each city there has been a substantial decline in 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 recorded a fairly substantial decline in the proportion of suburbs with a median value of less than $400,000 over the past five years.
<a href="https://www.propertyobserver.com.au/images/2017/02/16/Screen%20Shot%202017-02-16%20at%2011.20.54%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/2017/02/16/Screen%20Shot%202017-02-16%20at%2011.20.54%20am.jpg" alt="">
For those earning a relatively low income in Sydney and looking to buy a house or unit, they 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.
Key Findings:
• At the end of 2016, looking at both houses and units, 20.5 percent of Sydney suburbs had a median value of less than $600,000 compared to 38.5 percent of suburbs having a median value of at least $1 million. To further highlight deteriorating housing affordability in Sydney, 34.6 percent 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.
• 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 offered 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.
• The proportion of suburbs with a median house value of less than $400,000 at the end of 2016 was recorded at: 0.1 percent in Sydney, 6.3 percent in Melbourne, 29.2 percent in Brisbane, 28.0 percent in Adelaide, 18.9 percent in Perth, 52.1 percent in Hobart and 0.0 percent in Darwin and Canberra. For units the proportions were recorded at: 6.5 percent in Sydney, 31.8 percent in Melbourne, 62.7 percent in Brisbane, 85.1 percent in Adelaide, 46.4 percent in Perth, 88.4 percent in Hobart, 57.6 percent in Darwin and 45.8 percent in Canberra.
<a href="https://www.propertyobserver.com.au/images/2017/02/16/Screen%20Shot%202017-02-16%20at%2011.21.01%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/2017/02/16/Screen%20Shot%202017-02-16%20at%2011.21.01%20am.jpg" alt="">
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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ckusher-ujnxiKuFQs

The heightened decline in suburbs under the $400,000 median: Cameron Kusher

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Over the five years to December 2016, the number of suburbs nationally with a median value of at least $1 million has increased by 176%.
There was a time in which having a dwelling worth $1 million or more meant that the property was exclusive and rare. 
Today dwellings with a $1 million valuation are becoming much more common. 
At the end of 2016, there were 760 suburbs nationally that had a median value of at least $1 million. 
This figure has increased from just 275 suburbs nationally five years earlier.
Units have been the big mover with the number of $1 million suburbs increasing by 479% over the five years compared to a 160% increase for houses.
<a href="https://www.propertyobserver.com.au/images/2017/02/07/Screen%20Shot%202017-02-07%20at%207.24.28%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/2017/02/07/Screen%20Shot%202017-02-07%20at%207.24.28%20pm.jpg" alt="">
Some 87% of the suburbs nationally that had a median value of at least $1 million were located in either New South Wales (70.3%) or Victoria (16.7%) up from 75.6% in New South Wales (60.4%) and Victoria (15.3%) five years earlier.
The combined capital cities accounted for 93.5% of all the $1 million suburbs in 2011 and this increased marginally to 93.6% in 2016. 
This is representative of the higher cost of housing in capital city markets. 
It also highlights the relatively weaker value growth performance of regional housing markets throughout recent years.
<a href="https://www.propertyobserver.com.au/images/2017/02/07/Screen%20Shot%202017-02-07%20at%207.27.45%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/2017/02/07/Screen%20Shot%202017-02-07%20at%207.27.45%20pm.jpg" alt="">
Escalating dwelling values in Sydney, and to a lesser degree Melbourne, have resulted in an increasing proportion of the suburbs with a median value of at least $1 million over the past five years. 
At the end of 2011, 57.8% of the suburbs nationally with a median value of at least $1 million were in Sydney, by the end of 2016 the proportion had risen to 65.4% of suburbs nationally. 
The proportion of $1 million suburbs in Melbourne has increased to 16.4% of suburbs nationally at the end of 2016 from 15.3% at the end of 2011.
Further highlighting the rapid increase in values over recent years is the data for suburbs with a median value of at least $2 million.
At the end of 2011, 39 suburbs nationally had a median value of at least $2 million. 
By the end of 2016, this figure had risen to 136 suburbs nationally, an increase of 249% over five years. 
At the end of 2011, 30 of the 39 suburbs were located in Sydney and by the end of 2016, 115 of the 136 suburbs were located in Sydney.
<a href="https://www.propertyobserver.com.au/images/2017/02/07/Screen%20Shot%202017-02-07%20at%207.28.30%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/2017/02/07/Screen%20Shot%202017-02-07%20at%207.28.30%20pm.jpg" alt="">
While rising housing values increase the asset wealth of owners, it is also reflective of the fact that for those who don’t yet own a home it is becoming increasingly difficult to save a large enough deposit in order to purchase a home. 
This is particularly the case in Sydney and Melbourne where over the past five years, dwelling values have increased by a total of 68.1% and 43.3% respectively. 
Meanwhile, wages are increasing at their slowest pace on record and housing affordability is once again a central them in the political debate. 
The rise in suburbs with a median value of at least $1 million over recent years is reflective of the growing chasm between those that own homes and those who don’t.
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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Number of million dollar suburbs surges to 760 during 2016: CoreLogic

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Dwelling sales hitting the $2 million mark have trended substantially higher over recent years according to CoreLogic’s latest weekly report.
While driven largely by sales in Sydney and Melbourne housing markets, CoreLogic research analyst Cameron Kusher said, “A home selling for or in excess of $1 million was once the domain of the wealthy and indicative of the luxury housing market, sales of or in excess of $1 million are becoming much more regular.”
<a href="/images/2016/10/27/Annual%20number%20of%20dwellings.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/27/Annual%20number%20of%20dwellings.jpg" alt="">
Over recent years Mr Kusher noted a substantial rise in sales of homes at or above $2 million however even though they remain a much smaller proportion of overall sales than sales between $1 million and $2 million. “Perhaps $2 million is the new $1 million?” he says.
Key Findings:
• Over the 12 months to June 2016, there were 11,319 houses and units sold nationally for at least $2 million. Note: while there has been some decline over recent months however, this could also be reflective of some transaction details having not yet come through;
• Over the previous 12 months, there were 10,668 dwellings sold for at least $2 million, 10 years earlier there were 3,254 sales and 20 year earlier there were just 236 sales.
<a href="/images/2016/10/27/Annual%20number%20of%20houses%20and%20units.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/27/Annual%20number%20of%20houses%20and%20units.jpg" alt="">
A split between houses and units nationally shows that there were 9,882 houses and 1,437 units sold for at least $2 million over the past year.
As shown in today’s above chart, the number of units selling for at least $2 million is still lower than its peak in late 2007.
Mr Kusher said, “It should be noted that the data is based on settled sales so does not include yet to settle off-the- plan unit sales. Once settled, they will be included in the data at their contract date.”
<a href="/images/2016/10/27/Annual%20number%20of%20houses%20and%20units%20NSW.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/27/Annual%20number%20of%20houses%20and%20units%20NSW.jpg" alt="">
As can be seen in the third of the above charts, that highlights the number of sales of at least $2 million for New South Wales and Victoria versus the other states and territories.
The surge in sales at that price point has largely occurred in the two largest states. In fact, in the other states and territories the number of sales of at least $2 million is still lower than the previous peak.
A similar story exists for sales of, or in excess of, $2 million in Sydney and Melbourne compared to the other capital cities.
Sales at this price point have surged substantially higher across the two largest capital cities over recent years while they remain lower than their previous peak across the combined other capital cities.
Over the 12 months to June 2016, there were more units sold for at least $2 million in Sydney and Melbourne than houses sold above that price point across each of the other capital cities.
<a href="/images/2016/10/27/Annual%20number%20of%20houses%20and%20units%20Sydney.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/27/Annual%20number%20of%20houses%20and%20units%20Sydney.jpg" alt="">
Sales of properties at a price point above $2 million are becoming a much more regular occurrence in Sydney and Melbourne while they are much rarer elsewhere in the country.
According to Mr Kusher, this is just another example how the cost of housing in our two largest capital cities is detaching itself from the rest of the country.
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jonathanchancellor-7SQnKwU6yx

The rising prevalence of sales of $2 million or more: Cameron Kusher

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GUEST OBSERVER
The almost 4.5 year growth phase in capital city home values have driven prices higher and this week we look at the now significant premium for housing in Sydney and to a lesser degree the premium in Melbourne.
CoreLogic calculates capital city median selling prices on a rolling three month basis. 
As at September 2016, the combined capital city median house price was recorded at $600,000 and the median unit price was $510,000. 
Importantly, because a median is based on sales and transactions that are mostly occurring in Sydney and Melbourne, this figure is heavily influenced by these two cities.
<a href="/images/2016/10/25/Quarterly%20median%20house.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/25/Quarterly%20median%20house.jpg" alt="">
With home values rising at a much stronger rate in Sydney and Melbourne there is increasingly a significant premium for housing across these two cities. 
The median house price in Sydney is recorded at $890,000 and the median unit price is $675,000.  In Melbourne, median price are recorded at $641,500 for houses and $485,100 for units.
<a href="/images/2016/10/25/Sydney%20Vs%20Melbourne%20units.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/25/Sydney%20Vs%20Melbourne%20units.jpg" alt="">
The second chart highlights Sydney median unit prices and Melbourne median house prices over time.  Interestingly, Sydney units have regularly been more expensive than Melbourne houses and this remains the case currently. 
In fact, Sydney median unit prices have consistently been higher than Melbourne median house prices since February 2012.
Looking at median selling prices of houses over the September quarter across the individual capital cities shows a substantial premium in Sydney. 
Across the cities, median prices were recorded at: $890,000 in Sydney, $641,500 in Melbourne, $505,000 in Brisbane, $440,000 in Adelaide, $480,000 in Perth, $349,500 in Hobart, $500,000 in Darwin and $625,000 in Canberra. 
The median house price in Sydney is 39% higher or $248,500 more expensive than median prices in the second most expensive city, Melbourne. 
Although the premium for Sydney housing is rising and wide on an historic basis, the Sydney premium (in percentage) terms was higher than it is currently for all capital cities back in late 2003.
<a href="/images/2016/10/25/Quarterly%20median%20selling%20house.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/25/Quarterly%20median%20selling%20house.jpg" alt="">
Turning to the median selling price of units, we’ve already noted that Sydney median unit prices are higher than median house prices in all other capital cities at $675,000. 
Elsewhere median unit prices are recorded at: $485,100 in Melbourne, $390,000 in Brisbane, $351,500 in Adelaide, $410,000 in Perth, $283,000 in Hobart, $440,000 in Darwin and $421,000 in Canberra. 
Sydney’s median unit price is $189,900 or 39% higher than Melbourne’s. 
As with houses, although the Sydney unit premium is substantial, in percentage terms it has been greater in the past.  
<a href="/images/2016/10/25/Quarterly%20median%20selling%20units.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/25/Quarterly%20median%20selling%20units.jpg" alt="">
Although the gap in housing costs has been greater in the past, in dollar value terms it is substantial.
And is likely to be a challenge in the future. Housing in Sydney and Melbourne has become more expensive than elsewhere in the country due to much stronger job and broad economic conditions.
Despite these factors we anticipate that the substantial cost of housing in Sydney will make it a less desirable location for people to migrate to. 
The latest demographic data shows that a greater number of net overseas migrants are choosing to move to NSW rather than Vic. 
Meanwhile, net interstate migration into Vic is at a record high while the outflow from NSW is historically low but has started to pick-up.
We expect that migration, particularly interstate migration, into Vic (which is a proxy for Melbourne) will continue to rise while over the coming years while it is anticipated to slow into NSW (as a proxy for Sydney).
Housing costs are likely to be one of the key drivers of this change. While both economies are strong and creating jobs we expect that more interstate migrants will be attracted to Melbourne due to its substantially more affordable housing costs, rather than Sydney.
Outside of Sydney and Melbourne, cheaper housing alone is proving not enough to attract people to these cities.
This highlights the importance of a strong economy with decent employment prospects and shows that housing affordability alone is no longer enough of a lure to attract migrants to a region.
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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Analysing the Sydney housing price premium: Cameron Kusher

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The Australian Bureau of Statistics (ABS) released building approvals data for March 2015 yesterday. 
The data showed that over the month there were 19,419 new dwelling approvals which was a record high and 2.8% higher than levels in February. The data highlights that approvals and subsequently new housing construction is continuing to surge across the country.
<img class="aligncenter size-full wp-image-4655" src="https://blog.corelogic.com.au/wp-content/uploads/2015/05/Chart-1.jpg" alt="Chart 1" width="500" height="158">
In March there were more units (9,767) approved for construction than there were houses (9,651). Although this may not sound like a big deal, this has only occurred on two previous occasions. 
House approvals were 0.5% higher over the month and are 1.3% higher year on year. In comparison, unit approvals rose 5.3% over the month and are 57.9% higher year on year. Keep in mind that the number of unit approvals tend to be more volatile than houses however, the surge coupled by the fact that there were more approvals for units than houses shows a growing tendency toward new unit construction.
<img class="aligncenter size-full wp-image-4656" src="https://blog.corelogic.com.au/wp-content/uploads/2015/05/Chart-2.jpg" alt="Chart 2" width="500" height="159">
Over the past 12 months, there have been a record high 210,484 dwellings approved for construction which is 11.2% higher than at the same time last year. Over the period, there have been 114,874 houses approved and 95,608 units. Although house approvals outnumber unit approvals on an annual basis, unit approvals accounted for a record high 45.4% of all dwelling approvals over the past year.
<img class="aligncenter size-full wp-image-4657" src="https://blog.corelogic.com.au/wp-content/uploads/2015/05/Chart-3.jpg" alt="Chart 3" width="500" height="180">
While there is a growing prominence of units approvals, so too is there a growing prominence of these approvals being for high density stock. Over the 12 months to March 2015, a record high 60.5% of all unit approvals were for units in a block of four or more storeys. To put this surge into perspective, 10 years ago just 39.7% of unit approvals were for units in these higher density buildings. You only have to drive through inner city areas of Sydney, Melbourne or Brisbane to see that there is a current shift towards much higher density living and today’s data shows there is plenty more in the pipeline.
<img class="aligncenter size-full wp-image-4658" src="https://blog.corelogic.com.au/wp-content/uploads/2015/05/Chart-4.jpg" alt="Chart 4" width="500" height="158">
The capital city data isn’t seasonally-adjusted so it doesn’t line-up with the national data however, over the month there were 15,349 dwellings approved for construction across the combined capital cities. Like the national figures, this was also a record high number of approvals following a 9.7% monthly increase and a 33.5% year on year increase.
<img class="aligncenter size-full wp-image-4659" src="https://blog.corelogic.com.au/wp-content/uploads/2015/05/Chart-5.jpg" alt="Chart 5" width="500" height="159">
Looking at the split between capital city house and unit approvals there were 6,709 houses and 8,640 units approved for construction over the month. House approvals were 7.5% higher over the month and 9.0% higher year on year. Unit approvals increased by 11.5% over the month and by 61.8% over the year. Although total approvals were at a record high neither houses or units recorded their highest month for approvals.
Across the capital cities, dwelling approvals increased over the month in all capital except for Melbourne and Darwin. year on year approvals are higher in each capital city except for Canberra.
<img class="aligncenter size-full wp-image-4660" src="https://blog.corelogic.com.au/wp-content/uploads/2015/05/Chart-6.jpg" alt="Chart 6" width="500" height="157">
Looking at annual approvals across the capital cities, annual approvals are at a record high in Sydney, Melbourne and Brisbane as well as being just shy of a record high in Perth. Hobart (40.4%), Melbourne (25.5%), Brisbane (25.1%) and Darwin (12.1%) have recorded the greatest increases in approvals over the year. Dwelling approvals have fallen -36.8% in Canberra over the year, while increases in Sydney (4.9%), Adelaide (10.3%) and Perth (11.4%) have been relatively moderate.
<img class="aligncenter size-full wp-image-4661" src="https://blog.corelogic.com.au/wp-content/uploads/2015/05/Chart-7.jpg" alt="Chart 7" width="500" height="156">
Annual house approvals were higher in March 2015 than a year earlier in all cities except for Adelaide (-1.3%) and Canberra (-9.0%). Across the remaining cities the annual increases in house approvals were recorded at: 16.5% in Sydney, 14.6% in Melbourne, 29.6% in Brisbane 6.1% in Perth, 54.0% in Hobart and 6.9% in Darwin. What is noticeable from the above chart is that Melbourne (the 2nd largest city) has approved substantially more houses (22,878) than Sydney (the largest city) (13,776). Similarly, Perth (the 4th largest city) has approved far more houses (19,783) than both Sydney and Brisbane (the 3rd largest city) (10,826).
<img class="aligncenter size-full wp-image-4662" src="https://blog.corelogic.com.au/wp-content/uploads/2015/05/Chart-8.jpg" alt="Chart 8" width="500" height="156">
While annual capital city unit approvals have risen by 15.2% over the year, across the capital cities unit approvals were lower over the year in Sydney (-0.2%), Hobart (-6.9%) and Canberra (-49.9%). Elsewhere the annual increases in unit approvals have been recorded at: 35.2% in Melbourne, 21.7% in Brisbane, 36.5% in Adelaide, 28.4% in Perth and 16.6% in Darwin.
<img class="aligncenter size-full wp-image-4663" src="https://blog.corelogic.com.au/wp-content/uploads/2015/05/Chart-9.jpg" alt="Chart 9" width="500" height="181">
When we look at the annual approvals picture, more than half of all approvals over the year were for units in Sydney (66.2%), Melbourne (56.9%), Brisbane (58.6%), Darwin (56.2%) and Canberra (53.9%). Over the past 12 months, a record high 52.7% of all capital city dwelling approvals were for units. Unit approvals have accounted for more than half of all approvals in Sydney, Darwin and Canberra for many years however, it is a relatively new phenomena in Melbourne and Brisbane. 
In our opinion this raises some concerns given the rapid ramp-up in unit approvals in these two cities. Although lifestyle preferences are changing we have some concerns about an oversupply of units in these markets. Especially when you consider that unit stock is generally favoured by investors and rents are already growing at their slowest pace in a decade. 
Furthermore, capital growth for units is lower than that for houses across four of the five cities in which there have been more unit approvals than house approvals over the past year, the exception is Darwin. Value growth for units over the year has been particularly sluggish in comparison to house value growth in Melbourne and Brisbane.
The data is encouraging; there remains a large volume of new house and unit developments being approved for construction. Much of the new unit stock is high density which by nature means most of it is taking place in inner city areas. 
Although there is a strong pipeline of construction we continue to have concerns of a new unit oversupply in certain areas, particularly in inner city Melbourne and Brisbane. There are some concerns a record-high level of approvals, should they ultimately end up constructed, should alleviate some of the housing shortages and contribute to a slowing of the escalation in home values. What is somewhat worrying is that the Sydney market, where home values are escalating rapidly on the back of low overall housing supply, is not experiencing as significant a ramp-up of approvals as we are experiencing across most other capital cities. 
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Dwelling approvals hit new record highs in March 2015: Cameron Kusher

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Measuring the cost of housing and housing affordability is such an abstract idea because it is not a one size fits all measure and there are so many factors which contribute to affordability or unaffordability.
Most of the common measures have one or a number of glowing weaknesses which I will cover.
<ul>
<li>Interest rates</li>
</ul>
What interest rate do you use when a typical mortgage is 25 to 30 years? Most measures utilise the current mortgage rate and while that may tell you what affordability is like now affordability is important to analyse throughout the life of the mortgage not just as you purchase. With generational low mortgage rates right now, affordability in many areas looks good but if rates were to normalise affordability would look very different.
<ul>
<li>Household income</li>
</ul>
What figure do you use for household income? Much like interest rates household incomes will fluctuate over the 25 to 30 year cycle of a mortgage. Given this, are household income measures appropriate or is it better to assume a single or dual income household? Furthermore, outside of the Census, which is conducted every five years, this data is only published semi-regularly and at a state level. Housing markets and income levels are very different across different regions of the country.
<ul>
<li>International comparisons</li>
</ul>
Is a home in Australia the same as a home anywhere else in the world? In the sense that it provides shelter it is, however, tax regimes, the cost and scarcity of developable land, the provision of infrastructure and the availability of jobs are all other factors that contribute to the cost of housing. Furthermore, most comparisons are not apples with apples. Australian housing markets are dominated by detached houses whereas markets like Tokyo, Singapore, Hong Kong and Manhattan are largely apartment markets while London for example is predominately attached housing types (what we would call terraces or townhouses). The fact that Australian homes are, at least for the large part, detached and the largest in the world will also contribute to a higher cost.
Ryan Fox and Richard Finlay from the RBA wrote an excellent paper back in 2012 which provides an overview of some of the challenges around blending household income data with housing prices which is available <a href="https://www.propertyobserver.com.au/https://www.rba.gov.au/publications/bulletin/2012/dec/2" target="_blank">here</a>.
CoreLogic RP Data don’t regularly publish a measurement of housing affordability, however, a different perspective on housing affordability is to look at the cost of renting relative to the price of a home. Using our data on advertised median rental rates and median selling prices of homes we can determine how many years difference there is between the cost of renting and the cost of a home. This analysis focusses on the relative affordability between the two primary means of shelter; renting or owning a home. This analysis doesn’t factor in interest rates or household incomes and doesn’t compare internationally. What it does do is look at the difference between the two forms of housing residents have, to rent or to purchase.
With rental growth at its lowest level in more than a decade, we would expect that the number of years of rent required to purchase a home will rise over the coming year. As a result we may see more residents choosing not to purchase their own home despite the low mortgage rates available.
<img src="https://blog.corelogic.com.au/wp-content/uploads/2015/04/chart-1.jpg" alt="chart 1" width="500" height="181">
Across the combined capital cities, the annual rent for a house is $25,552, for a unit it is $24,013 and for combined houses and units (dwellings) it is $25,311. In comparison, the median house price is $559,000, the median unit price is $470,000 and the median dwelling price is $530,000.
Based on this data, to buy a house would take 21.9 years of rental payments, to buy a unit requires 19.6 years of rent and a dwelling would take 20.9 years of rental payments. As the chart shows, the differential has been greater at the end of 2007 and there has been little change over recent years. In saying this, in March 1997, the differential was much lower at 10.8 years for houses and 11.7 years for units.
<img src="https://blog.corelogic.com.au/wp-content/uploads/2015/04/chart-2.jpg" alt="chart 2" width="500" height="182">
In Sydney, the cost of a house is equivalent to 24.6 years of rents and the cost of a unit is 21.7 years of rent.
<img src="https://blog.corelogic.com.au/wp-content/uploads/2015/04/chart-3.jpg" alt="chart 3" width="500" height="182">
Across Melbourne the median house price is equivalent to 23.8 years of rent while the cost of a unit equates to 21.3 years of rent.
<img src="https://blog.corelogic.com.au/wp-content/uploads/2015/04/chart-4.jpg" alt="chart 4" width="500" height="181">
A typical Brisbane house costs 20.9 years’ worth of rent while the typical Brisbane unit costs 17.7 years of rent. Note that the 17.7 years is the lowest since July 2004.
<img src="https://blog.corelogic.com.au/wp-content/uploads/2015/04/chart-5.jpg" alt="chart 5" width="500" height="183">
The median house price in Adelaide is equivalent to 22.0 years of rent and the unit price amounts to 20.6 years of rent.
<img src="https://blog.corelogic.com.au/wp-content/uploads/2015/04/chart-6.jpg" alt="chart 6" width="500" height="182">
The median Perth house costs 21.0 years’ worth of rent while the median unit costs 19.1 years’ worth of rent.
<img src="https://blog.corelogic.com.au/wp-content/uploads/2015/04/chart-7.jpg" alt="chart 7" width="500" height="183">
A typical house in Hobart costs the equivalent of 18.9 years of rent while a unit costs 17.0 years of rent.
<img src="https://blog.corelogic.com.au/wp-content/uploads/2015/04/chart-8.jpg" alt="chart 8" width="500" height="183">
A house in Darwin costs 18.4 years’ worth of rent while a unit costs 18.9 years’ worth of rent.
<img src="https://blog.corelogic.com.au/wp-content/uploads/2015/04/chart-9.jpg" alt="chart 9" width="500" height="182">
The median house price in Canberra is equivalent to 22.6 years of rent while the median unit price is 19.7 years of rent.
<img src="https://blog.corelogic.com.au/wp-content/uploads/2015/04/chart-10.jpg" alt="chart 10" width="500" height="232">
It is also interesting to look at the relativity between cities. The way to read this chart is if you use Sydney as an example, rents are on the left and purchase prices are at the top. Given this, if you rent in Sydney and want to purchase in Sydney it costs 22.4 years of rent, whereas if you live in Sydney but want to purchase in Melbourne it is equivalent to just 16.8 years of your Sydney rent.
The table shows that those renting in the more expensive cities would have a much easier time entering into home ownership outside of these cities. On the other hand, if you are thinking about buying in Sydney but are currently renting in another city you could be in for a nasty shock when you go to purchase.
By no means do I think this analysis is a perfect picture of housing affordability however, I do think it is a different way to measure it. It still has the weakness of using medians and of course, very few people purchase the median home and in particular first time buyers should be looking to purchase below the median price. Nevertheless it does show the difference in the cost of renting and housing and potentially provides some food for thought for those looking to enter into home ownership.
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Measuring the relativity of housing costs: Cameron Kusher

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The Australian Bureau of Statistics (ABS) released Consumer Price Index (CPI) data for the March 2015 quarter recently.
The data showed that over the quarter, headline inflation was recorded at 0.2% taking annual inflation to 1.3%. The Reserve Bank’s (RBA) preferred measures of underlying inflation, the trimmed mean and weighted median, were recorded at an annual rate of 2.3% and 2.4% respectively. Headline inflation is well below the RBA’s target range of 2% to 3% however, underlying inflation is towards the bottom of the RBA target range.
From a housing market perspective, it is useful to understand the real change in home values. We all know that the Sydney market is recording strong rates of value growth at the moment while most other capital cities are seeing more moderate growth. When you take the impact of inflation into consideration, growth is generally much more tepid.
<img class="aligncenter size-full wp-image-4534" src="https://blog.corelogic.com.au/wp-content/uploads/2015/04/Chart-14.jpg" alt="Chart 1" width="500" height="181">
Over the 12 months to March 2015, nominal home values across the combined capital cities increased by 7.4% however, including inflation, real home value increases have been recorded at 6.0%.
Across the individual capital cities, real home value growth over the past year has been below 1.5% in all cities except for Sydney (12.5%) and Melbourne (4.2%).
<img class="aligncenter size-full wp-image-4535" src="https://blog.corelogic.com.au/wp-content/uploads/2015/04/Chart-25.jpg" alt="Chart 2" width="500" height="498">
When you compare the annual change in real capital city home values to the 10 year real annual change it shows that only Sydney, Melbourne and Brisbane are outperforming the decade average. Elsewhere real home values have increased at a rate which is below the decade average.
<img class="aligncenter size-full wp-image-4536" src="https://blog.corelogic.com.au/wp-content/uploads/2015/04/Chart-33.jpg" alt="Chart 3" width="500" height="182">
Over the past five years, real combined capital city home values have increased by 1.2% per annum compared to 2.2% per annum over the past decade and 4.3%pa over the past 15 years.
Over the past five years, real home values have increased at a rate of 4.0% per annum in Sydney and by 1.3% per annum in Melbourne. Every other capital city has recorded real value falls over the period with values down -2.3% per annum in Brisbane, -1.3% per annum in Adelaide, -1.0% per annum in Perth, -3.9% per annum in Hobart, -1.6% per annum in Darwin and -1.2% per annum in Canberra.
Even over the past 10 years home values have fallen in real terms in Hobart whilst they have recorded gains elsewhere. Over the longest time frame shown, 15 years, Perth has recorded the strongest annual value increases at 5.5% per annum, followed by: Melbourne (5.0% per annum), Brisbane (4.8% per annum), Hobart (4.7% per annum), Canberra (4.6% per annum), Adelaide (4.5% per annum), Darwin (4.2% per annum) and Sydney (3.5% per annum).
<img class="aligncenter size-full wp-image-4537" src="https://blog.corelogic.com.au/wp-content/uploads/2015/04/Chart-43.jpg" alt="Chart 4" width="500" height="179">
One of the features of the capital city housing market has been the strength of growth in home values across Sydney and Melbourne since the end of 2008 following value falls during the financial crisis in 2008. From December 2008 to March 2015 nominal home values have increased by 40.2% however, in real terms value growth is much more moderate at 18.2% over the period. Over this period real home values have recorded falls in Brisbane, Adelaide and Hobart while Perth, Darwin and Canberra have each recorded real home value growth of less than 10%. Only Sydney (42.0%) and Melbourne (26.9%) have recorded any significant real increases in home values over the period.
Earlier this week RBA Governor Glenn Stevens noted that there is generally too much attention on the Sydney housing market which ignores the 80% of Australians that don’t live in that city. Looking at the real change in home values really highlights this point; value growth has been comparatively very strong over recent years in Sydney, while most cities have actually recorded real declines in values.
What’s also interesting is that although Sydney is seeing a strong rise in both nominal and real home values currently, over the past 15 years it has been the overall weakest performing capital city housing market.
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Inflation adjusted home value growth changes the narrative: Cameron Kusher

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The last Census showed that across Australia we have ample bedrooms to cater to our population yet the lack of new housing supply over recent years along with increasing demand for homes has resulted in increases in home values. 
Particularly in Sydney and Melbourne the escalation in home values over recent years has been strong while most other capital cities have largely remained on the sidelines.
The 2011 Census showed that at that time there were 21,507,717 residents of the country. The data also showed that there were 7,760,320 private dwellings which were occupied at the time with a further 10.7% unoccupied. Given this, and if we assume that everyone has a dwelling to live in, each occupied dwellings would have an average of 2.77 residents.
<img class="aligncenter size-full wp-image-4530" src="https://blog.corelogic.com.au/wp-content/uploads/2015/04/Number-of-bedrooms.jpg" alt="Number of bedrooms" width="1349" height="680">
According to the Census data, on average occupied dwellings in Australia have 3.1 bedrooms which is theoretically more than ample bedrooms to house the population. 
The above table which is lifted from the Census shows that there are far more bedrooms than required across the country. In fact, if we exclude those labelled as ‘none’, assume the four bedrooms or more category is just four bedrooms and exclude those where the number of bedrooms aren’t stated there were 22,866,601 bedrooms at the time of the 2011 Census. When you consider that many married couples sleep in the same room there is actually a substantial oversupply of bedrooms nationally.
The problem is we have a housing market and taxation system which largely discourages home owners from moving to more appropriate accommodation as their lifestyle evolves. Furthermore, the high cost of housing makes it difficult for some younger home owners to move into more appropriate accommodation as their family grows.
 First of all, home owners are taxed via stamp duty when they buy a new home, if they also sell they incur agent commissions. Both of these factors act as a disincentive for home owners to move on a more regular basis. 
<img class="aligncenter size-full wp-image-4531" src="https://blog.corelogic.com.au/wp-content/uploads/2015/04/Chart-24.jpg" alt="Chart 2" width="500" height="180">
The disincentive for home owners to move on a more regular basis is highlighted when we look at the turnover of house and unit stock. On a monthly basis, the record-high number of sales occurred in July 2003 when there were 59,414 sales over the month. In comparison over the past 12 months there has been an average of 40,561 dwelling sales a month which is -32% lower than the peak.
While sales volumes peaked in July 2003, the national population was recorded at 19.7 million persons at the end of June 2003. The latest data to September 2014 shows that the national population was 23.6 million persons which is 3.9 million more persons than there were in June 2003. Despite the fact that the population is substantially larger than it was in 2003 there are now fewer homes selling. 
Housing is one of the most heavily taxed asset classes; the most recent data for the Australian Bureau of Statistics (ABS) showed that over the 2012-13 financial year, $35.931 billion in property related taxes were collected by state and local governments. Looking at the breakdown of this data, property related taxes were collected from the following sources: 17% was land taxes, 40% was municipal rates, 36% was stamp duty on conveyances, 3% was government guarantee borrowing levies and 4% was from other sources. 
Stamp duty in particular is the most contentious of these taxes because it is only collected from homes which are transacted rather than being broadly taxed on all homes. Over a typical year only around 5% to 7% of properties nationally are sold, given this more than a third of all property related revenue is collected based on how many homes are sold in a given year. As I have mentioned previously, in my opinion shifting away from a turnover dependent tax such as stamp duty to a more stable and broad tax such as land tax would seemingly make sense as well as potentially improve labour mobility and encourage residents to shift into more appropriate accommodation.
While investment properties incur capital gains tax, the sale of a home that is owner occupied doesn’t incur any capital gains tax. If the owner occupied home is sold, agent commissions are payable and if a new home is purchased stamp duty would be payable. This is probably one of the major reasons for the excess number of bedrooms across the country, after the children move out of home there is simply no real incentive to downsize. Furthermore, many homes have seen significant value appreciation over the past 25 years so there is substantial equity in these homes which can be withdrawn by the owners.
As owners of owner occupied property enter into retirement, their tax-free home is also currently not included in the pension asset test. Essentially this means that if an owner has held their home for say 25 years they have likely seen a significant rise in the home’s value and can then retire and still receive the pension. Again, if they were to sell and re-purchase they would incur stamp duty so there is little incentive to do so. Most people enter retirement with little or no mortgage so excluding the family home from the pension asset test seems counter-intuitive as it creates an additional cost to the government for people who can afford to sell or take out a reverse mortgage in order to fund their own retirement. On the other hand, there is the argument that some pensioners have very little other than their home to fund their retirement so there would likely need to be some balancing with regard to this policy. You also don’t necessarily want to put pensioners in a position where they have to sell their home to fund their retirement and as a result have to move further away from their support network.
Australia needs to investigate ways to encourage greater household mobility along with encouraging people to shift over time into more appropriate housing. The removal of stamp duty would seem like an easy place to start along with including the family home in the pension asset test for retirees. Stamp duty removal would make it easier for home owners to move into more appropriate and suitable accommodation as their family life cycle changes. Including the family home in the pension asset test may act as a disincentive for retirees to stay in their large tax-free homes and would also reduce the impost on the Government to pay a pension to these retirees, many of whom have the equity in their home to fund their own retirement or could release the equity to fund their retirement by moving to a smaller home.
The data clearly shows that there isn’t an undersupply of bedrooms, it is simply that many of these homes are locked away from the market because there is no incentive to move homes. Incentivising home owners to shift to more appropriate accommodation could go a long way to improving supply-side issues in the housing market.
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Australia has a glut of bedrooms but a dearth of policies: Cameron Kusher

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Earlier this week the Australian Bureau of Statistics (ABS) released building activity data for the December 2014 quarter. 
The data includes quarterly figures for dwelling commencements and dwelling completions. With a record number of dwelling approvals coming through the system, it is important to track this data as it provides insight into how many of these approvals are ultimately being constructed.
Over the past 30 years, approvals and commencements have been highly correlated with the vast majority being approved and commenced in the same quarter. If we look at the relationship between approvals and completions, most houses are completed two quarters after approval while most units are constructed three quarters after being approved. 
<img class="aligncenter size-full wp-image-4516" src="https://blog.corelogic.com.au/wp-content/uploads/2015/04/Chart-13.jpg" alt="Chart 1" width="500" height="179">
Based on this data over the past 30 years, 96.5% of house approvals have moved to the commencement phase and 96.2% of unit approvals have been commenced. 
Looking at the completion rate for houses based on a two quarter lag, 95.1% of houses which have been approved are ultimately completed. For units the completion rate has been somewhat lower. Using a three quarter lag between approval and completion, 86.9% of units approved for construction have been completed. 
On this logic, detached housing approvals are much more likely to result in a completed product, with a fallout rate of just 5%, while apartment approvals are less likely to ultimately be constructed, with a dropout rate close to 15%.
<img class="aligncenter size-full wp-image-4517" src="https://blog.corelogic.com.au/wp-content/uploads/2015/04/Chart-23.jpg" alt="Chart 2" width="500" height="179">
The results are much different over the past five years with the correlations not as strong as they have been over the longer term, particularly for apartments. 
The commencement rate for properties approved for construction over the past five years has been stronger than it has been over the past 30 years. Over the past 30 years, 96.5% of houses approved had been commenced in the same quarter compared to 98.1% over the past five years. For units, the commencement of approvals has typically been a quarter later over the past five years however, the likelihood of commencement has increased from 96.2% over the past 30 years compared to 97.8% over the past five years. 
Looking at the completion rate of approvals over the past five years, with a lag of two quarters 96.7% of houses approved for construction have been completed over the past five years. For units, based on a three quarter lag 85.1% of units approved have been completed. Note that the completion rate of houses over the past five years has been stronger than over the past 30, while the unit approval to completion rate has been slightly lower.
One of the possible reasons for the reduced completion rate of units is likely to be the increasing level of high density unit construction. While the data indicates a lag of three quarters from approval to completion the reality is higher density unit construction takes significantly longer to complete often a number of years. 
The data highlights, whether you look at it over the longer or shorter timeframe, that houses which are approved for construction are ultimately more likely to be completed than units. With a record-high number of unit approvals currently there is no guarantee that they will all end up constructed. The long term and short term averages indicate we should expect around 15% of apartment approvals won’t transition to a completed product.
The more timely dwelling approvals data showed an all-time high number of approvals in January and the second strongest month on record in February. The data clearly shows that the pipeline of housing construction is continuing to grow and that commencements will likely remain high for most of 2015 while the heightened level of completions is likely to extend out over the next few years at least.
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The relationship between dwelling approvals, commencements and completions: Cameron Kusher

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Regional population growth data was recently released by the Australian Bureau of Statistics (ABS) for the year to June 2014.
By combining this data over time with dwelling approvals over time we can derive localised information to approximate the extent of oversupply and undersupply in the capital city housing markets.
The combined capital cities recorded an increase in population over the 12 months to June 2014 of 288,994 persons, down from an increase of 308,206 persons the previous year. While the population increased by 288,994 persons, there were a record-high 145,268 dwelling approvals over the year. The population increase was -6.2% lower over the year while the number of dwelling approvals was 25.6% higher. Based purely on a ratio of population growth to dwelling approvals there was one dwelling approved for construction for every 1.99 residents added to the capital cities. This represents a significant improvement on the ratio of one dwelling approval for every 2.66 new residents over the previous year.
The 2011 Census reported that across the nation, households had an average of 2.6 persons. Based on this figure, we have approved significantly more homes than required based on population growth over the past year. Unfortunately, measuring housing demand is not quite so simple. We must also consider how much of the new demand is from overseas migration compared to natural increase as well as factors such as demolitions and holiday home demand.
I haven’t found any literature on housing demand from overseas migration compared to natural increase however; I think it is a reasonable assumption that overseas migration creates a more immediate addition to housing demand than natural increase. There has been a noticeable slump in net overseas migration to Australia over the past year. Although it is a little bit old now, the former Deputy Governor of the Reserve Bank (RBA) gave a speech entitled ‘Housing and the Economy’ to the National Housing Conference in November 2009. Two of the most interesting and relevant points to housing demand from the speech were:
<ul>
<li>A higher proportion of the new dwellings built are simply replacing existing homes that have been demolished. The RBA estimated that between 2001 and 2006, around 15% of new dwellings built replaced those that had been demolished; 10 to 15 years earlier that figure was less than 10%. </li>
<li>A significant proportion of dwelling investment appears to have gone into holiday homes or second homes. Census data (2006 Census) shows that the number of dwellings built has exceeded the increase in the number of households by a large margin. As a result, the ratio of the number of dwellings to the number of households has been rising over time; as at 2006, there were 8% more dwellings in Australia than there were households. Presumably, most of this surplus reflects holiday homes and second homes.</li>
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Based on these two points from the former Deputy Governor’s speech, in order to cater to dwelling replacements and secondary homes we should construct 23% more dwelling than the previous simplistic analysis of measuring the rate of population growth compared to approvals. There are a few points and assumptions to keep in mind here:
<ol>
<li>This analysis is based on approvals not completions and approvals won’t necessarily become a completion; based on our calculations completion rates are historically 98% for houses and 85% for units. </li>
<li>The heightened level of inner-city unit development in most instances would see fewer homes demolished to make way for this new construction. </li>
<li>Holiday and second homes ae generally more likely to be located outside of the capital city than within. </li>
<li>Anecdotally activity from foreign buyers is increasing, a proportion of these homes sit unoccupied and don’t even enter into the rental market. So while the supply of housing has increased if the property sits vacant it is more reflective of secondary homes.</li>
</ol>
Given these qualifications, the point about holiday and second homes is likely to be less relevant here, but in the absence of more up-to-date data we will still allow for the 15% of homes which have been demolished when looking at the approvals data.
The 2011 Census reported that on average, Sydney, Brisbane and Darwin had 2.7 persons per household, Melbourne, Perth and the ACT had 2.6 persons per household and Adelaide and Hobart had 2.4 persons per household. Returning to the original findings, over the year to June 2014 the capital city population increased by 288,994 persons and 145,268 dwellings were approved for construction.
If we adjust these figures based on the average household sizes as at the 2011 Census, based on population growth the capital cities required 109,825 new homes. If we further adjust for the assumption that the country needs to approve 15% more homes to replace demolitions, the capital cities required 126,298 new homes last year. Given this, 18,970 more homes were approved for construction than were required over the year compared to a deficiency of 19,076 homes the previous year.
<img class="aligncenter size-full wp-image-4473" src="https://blog.corelogic.com.au/wp-content/uploads/2015/04/Chart-11.jpg" alt="Chart 1" width="500" height="181">
The above chart shows that new dwelling approvals were typically sufficient for the rate of population growth throughout the 1990s however, since the beginning of the 2000s population growth has boomed while new approvals have largely been unresponsive. Dwelling approvals are now climbing on the back of rising home values and increasing demand for homes. Keep in mind, the heightened level of dwelling construction will have to persist for a number of years to make up for the cumulative effect of the insufficient supply response over the past decade or so.
Over the past year, each capital city had more homes approved for construction than was required based on population growth. While dwelling construction is a positive outcome for the economy, it is important to note that an approval doesn’t necessarily translate into a completion. Furthermore, there is a time lag between approval and completion; these homes are required right now, not in a year or twos time (or longer in some unit developments).
The following charts track the annual population growth and annual number of swelling approvals across each of the capital cities.
<img class="aligncenter size-full wp-image-4474" src="https://blog.corelogic.com.au/wp-content/uploads/2015/04/Chart-21.jpg" alt="Chart 2" width="500" height="180">
<img class="aligncenter size-full wp-image-4475" src="https://blog.corelogic.com.au/wp-content/uploads/2015/04/Chart-31.jpg" alt="Chart 3" width="500" height="179">
<img class="aligncenter size-full wp-image-4476" src="https://blog.corelogic.com.au/wp-content/uploads/2015/04/Chart-41.jpg" alt="Chart 4" width="500" height="178">
<img class="aligncenter size-full wp-image-4477" src="https://blog.corelogic.com.au/wp-content/uploads/2015/04/Chart-51.jpg" alt="Chart 5" width="500" height="179">
<img class="aligncenter size-full wp-image-4478" src="https://blog.corelogic.com.au/wp-content/uploads/2015/04/Chart-61.jpg" alt="Chart 6" width="500" height="179">
<img class="aligncenter size-full wp-image-4479" src="https://blog.corelogic.com.au/wp-content/uploads/2015/04/Chart-7.jpg" alt="Chart 7" width="500" height="180">
<img class="aligncenter size-full wp-image-4480" src="https://blog.corelogic.com.au/wp-content/uploads/2015/04/Chart-8.jpg" alt="Chart 8" width="500" height="181">
<img class="aligncenter size-full wp-image-4481" src="https://blog.corelogic.com.au/wp-content/uploads/2015/04/Chart-9.jpg" alt="Chart 9" width="500" height="179">
The above charts show that the disconnect between new dwelling approvals and population growth since the beginning of the 2000s has been largest across the four most populous capital cities. These four cities are also home to a majority of the national population and have also been recording the greatest increase in residents over that period.
A further important consideration for housing supply and demand is the type of new product that is being built. While the city-wide analysis can be useful it should be remembered that new housing is typically either new detached houses on the outskirts of the city or medium to high density product within the inner city areas. We are seeing over time a shift from greenfield and brownfield detached housing development to inner city infill and higher density development across most capital cities. In fact, over the past year more than half of all capital city dwelling approvals have been for units as opposed to houses.
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The analysis shows that within the four largest capital cities there has been a deficiency of dwellings approved for construction over recent years compared to the rate of population growth.
Over the past 24 months or so there has been a surge in dwelling approvals, at the same time the rate of population growth has slowed. The RBA has spoken many times about looking to extend this period of heightened construction activity for a number of years. Not only would this have a multiplier effect throughout the economy but it would also help to improve the undersupply of housing which currently exists.
<img class="aligncenter size-full wp-image-4482" src="https://blog.corelogic.com.au/wp-content/uploads/2015/04/Chart-10.jpg" alt="Chart 10" width="500" height="182">
In 1991, 29.9% of all dwelling approvals across the combined capital cities were for units showing an overwhelming majority of approvals were for houses. Over the most recent year, 51.6% of capital city dwelling approvals were units. In 2013 (50.1%) and 2014 (51.6%) it was the first time that there were a greater number of capital city unit approvals than house approvals. The above chart shows that since 2010 when 38.1% of all approvals were for units, there has been a strong trend towards a smaller proportion of house approvals.
<img class="aligncenter size-full wp-image-4483" src="https://blog.corelogic.com.au/wp-content/uploads/2015/04/Chart-111.jpg" alt="Chart 11" width="500" height="180">
Over the past 12 months, each of Sydney, Melbourne, Brisbane, Darwin and Canberra have approved more units than houses. Sydney, Darwin and Canberra have approved a majority of units for more than a decade however, in Melbourne and Brisbane the rising prominence of unit approvals is a relatively new phenomena. Adelaide, Perth and Hobart have each recorded a significantly lower proportion of unit approvals, in fact as a proportion, Perth and Hobart had fewer unit approvals last year than they had 20 years ago.
Data from the 2011 Census showed that across the separate house category, the most prevalent number of bedrooms is three bedrooms (49.6%) and four bedrooms (32.4%). When you combine the Census data for semi-detached and units, the most prominent number of bedrooms in two bedrooms (50.1%) and three bedrooms (28.6%). To look at it another way, 88.8% of detached houses have three bedrooms or more compared to 66.9% of units having two bedrooms or fewer. The point being that more units are being approved (and constructed) however, they typically have fewer bedrooms and are likely to have a smaller average household size than a detached house would. Given this, it is likely that as more units are constructed, we will actually need more housing than we would have if houses had been exclusively built because of the potential smaller household size. The challenge of course is that while the pipeline of approvals is very strong, there are more unit approvals than houses and ultimately these units are less likely to be built than houses.
The other feature we are seeing in the market is the rise and rise (and rise) of the investor segment. In fact the value of loans to investors has been greater than new loans to owner occupiers over each of the past six months and that has never happened before. A lot of the new unit construction taking place is to cater to demand from the investment segment of the market. The important thing to note is that while investment style detached houses are fairly similar to houses for owner occupiers, the same is not necessarily the case for units. The type of unit that someone is willing to live in while they are renting is often quite different to what they would be willing to live in as an owner occupier. This is largely in relation to internal floor area, kitchen size and design and balcony size. With investment purchases surging, a large proportion of the new unit development is targeted at that market while units for owner occupation are not as prevalent.
Of course developers build what product is going to sell. The potential cause for concern is that many of these investors exit the housing market when the returns aren’t as strong as they currently are. What could then happen is a lot of investment stock hits the market at a time of falling demand coupled with a product offering which is not what the market wants.
Despite this potential cause for concern, it is very encouraging to see an improving relationship between housing demand and housing supply. With population growth looking likely to slow further it would be encouraging, particularly from a housing affordability perspective if the heightened level of approvals persisted. More importantly of course will be that we see these approvals ultimately constructed, particularly in our largest capital cities where housing deficiency has been greatest.
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Cameron Kusher

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