The residential transformation of St Kilda Road is set to continue into with more new apartment plans for the sought-after boulevard.

Wing Tai Asia has lodged plans for a major residential tower at 464-466 St Kilda Road, replacing the former VACC House with an 18-storey mixed-use development designed around a retained heritage podium and a sculpted contemporary tower.

The proposal, prepared under Victoria’s Significant Residential Development with Affordable Housing pathway, would deliver 325 apartments and ground-floor retail across the prominent 4,653 sqm boulevard site in Melbourne’s St Kilda Road North Precinct.

The project centres on the adaptive reuse of the site’s heritage-listed VACC Building, an eight-storey office designed by Bernard Evans that has occupied the address for decades. Planning documents state the development would involve “carefully dismantling and conserving off-site the original metal fabric of the podium visible from St Kilda Road,” before reinstating it as the defining frontage of the new scheme.

Above the restored podium, Wing Tai is proposing a curvilinear residential tower. The scheme includes 172 one-bedroom apartments, 63 two-bedroom apartments, 66 three-bedroom apartments, and 24 four-bedroom apartments, alongside two ground-floor food and beverage tenancies fronting St Kilda Road.

The tower has been designed with substantial articulation and variable setbacks to minimise perceived bulk and maintain view corridors along the boulevard. Urbis, which prepared the planning report, said the design “has been significantly articulated through a curvilinear design” with “an interplay with materials, façade expression and depth” to create visual separation and visual interest.

The proposal also includes 254 basement car spaces, landscaped pedestrian links connecting St Kilda Road and Queens Lane, and a biophilic landscape strategy featuring canopy trees, raised planters, cascading greenery and a glass oculus pool overlooking the eastern frontage.

Planning documents confirm the $270.1 million development will contribute 3 per cent of project costs to the Social Housing Growth Fund as part of the application process.

Wing Tai acquired the St Kilda Road property in 2018 alongside Abacus Property Group for $95.38 million, before later consolidating ownership of the site. The property previously served as the Victorian Automobile Chamber of Commerce headquarters for around 60 years.

The transformation of the St Kilda Rd boulevard is already beginning to materialise, with a number of high-profile projects recently completed, launched, or approaching launch as developers continue to back the long-term appeal of the precinct.

Among the most notable recent completions is Louise by Samuel Property Group, just off the strip on Queens Lane, the same pocket Hirsch &amp; Faigen recently launched The Queensbury. Mirvac is too on the same street with The Albertine, which is approaching completion.

Dexus recently secured approval for its slice of St Kilda Road, while Gurner also has approved plans for the precinct.

Joel Robinson

Wing Tai unveils 325-apartment St Kilda Road tower on former VACC House site

Malaysian developer <a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> is the latest to jump into St Leonards booming Transport Oriented Development precinct.

The developer, which has previously delivered Sapphire by the Gardens apartment development in Melbourne, identified the Atchison Street site in 2023. It filed a Scoping Report around 12 months ago, and now has revealed the designs for the new&nbsp;40-storey mixed-use tower.

The State Significant Development Application covers <a href="https://next-portal.urban.com.au/projects/14650/summary">20-22 Atchison Street</a>, a 1,374 sqm site positioned between St Leonards Station and the new Crows Nest Metro station.

Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the project would deliver 181 apartments, above a four-storey commercial podium, five basement levels, and new public domain works along Mitchell Street. The apartment mix comprises 35 one-bedroom apartments, 39 one-bedroom-plus-study apartments, 85 two-bedroom apartments, and 22 three-bedroom residences.

The proposal has been lodged as a shop-top housing development under the NSW Government’s TOD planning pathway, which allows increased density around key transport infrastructure. The site sits within the recently rezoned Crows Nest Accelerated TOD Precinct.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b799673d-48e2-46b0-801a-0e33a9330100" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20site.png?VersionId=dPh0UfwfaHpbFL1R7H1cbZNbIW0CHbCC" />

SP Setia acquired the Atchison Street site as part of its continued expansion into the Australian apartment market. In comments made to City &amp; Country (The Edge Malaysia) in 2023, SP Setia President and CEO Datuk Choong Kai Wai described the acquisition as “a strategic move” aligned with the group’s post-pandemic market recovery strategy.

“Our target for this exceptional development is local and overseas buyers, including first-home buyers, downsizers and investors,” Choong said.

The tower has been designed as a slender vertical form rising from a mixed-use podium, with COX Architecture positioning the development as a response to the evolving St Leonards and Crows Nest skyline.

“The purpose of the project is to facilitate the delivery of high-quality housing at a strategically located site and deliver a built tower outcome that is consistent with the desired future character of St Leonards and aligns with the TOD controls,” the design report stated.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b1a85eee-76f7-436c-a6da-73ba827b9b13" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20entry.png?VersionId=dA9jHGPMcm.dDbwk4QfxqWiY5bfh3UVt" />

The podium would incorporate retail uses fronting Atchison Street, commercial tenancies, landscaped communal areas, and pedestrian improvements along Mitchell Street. Vehicle access and loading would be consolidated via Atchison Lane.

Residents would have access to more than 665 sqm of communal indoor and outdoor spaces, while the development proposes 96 parking spaces across five basement levels.

The proposal also includes a commitment for 10 per cent of residential floor space to be allocated toward affordable housing through a monetary contribution.

COX said the tower form responds directly to the emerging high-density character of the precinct while seeking to maximise solar access, cross ventilation, and outlook from apartments.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="2163f85c-f63b-4be3-aafa-f8763976cec5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29_5.png?VersionId=WiAmtIKJ6.ZQ41EtYEQ1fol7AeorKBlL" />

“The building is orientated towards north,” the Apartment Design Guide compliance report noted, adding that the tower’s slim form was driven by the constrained inner-urban site dimensions.

The design also incorporates landscaped setbacks and communal open space at podium level, intended to soften the interface with surrounding streets and improve pedestrian amenity.

The project adds to a growing wave of redevelopment proposals reshaping St Leonards and Crows Nest following the opening of the Sydney Metro City line and the NSW Government’s push for higher-density housing around major transport nodes.

Last week Stockland filed plans just down the road. They want to build a <a href="https://www.apartments.com.au/new-apartments/601-pacific-highway-st-leonards-nsw-2065">52-storey tower on Pacific Highway</a>.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">First look: Stockland plans 52-storey, 538-apartment St Leonards tower&nbsp;</a>

First look: SP Setia targets St Leonards skyline with 40-storey TOD tower

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> has revealed plans for a new mixed-use tower at 10 Dangar Street, Wickham, advancing a proposal that would reshape the southern gateway to Newcastle’s city centre with one of the city’s tallest residential buildings.

The State Significant Development proposal, now on exhibition, seeks approval for a <a href="https://www.apartments.com.au/new-apartments/bowline-10-dangar-street-wickham-nsw-2293">43-storey tower</a> immediately adjacent to the Newcastle Interchange. The project would deliver around 200 apartments, including 42 affordable housing dwellings, alongside 99 co-living units, a 171-room hotel, retail space, and new public domain integrated through the site.

The scheme marks a significant escalation of plans previously approved for the site. Urban Property Group took over the prominent 2,904 sqm parcel, where excavation and demolition had already commenced under an earlier consent for a 14-storey mixed-use development.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="58a96dd9-407f-4d20-86b4-94e4bfeef74b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20podium.png?VersionId=LGlf08pdFGAZDzvx_CXC4XakHNZRuEE0" />

Designed by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, the tower has been conceived as a landmark transit-oriented development anchored to the Newcastle Interchange precinct. The proposal includes 245 build-to-sell apartments across a mix of one, two, and three-bedroom residences, as well as two penthouses. Fifteen apartments and one operational unit are earmarked for NDIS housing. The co-living component would add a further 99 units, while the podium would accommodate retail uses and hotel facilities.

SJB said the site presents “a valuable opportunity to anchor the precinct by setting the standard for design, active ground planes and character at the key southern gateway.”

The architecture responds directly to the site’s position beside major transport infrastructure and within one of Newcastle’s fastest-evolving urban renewal precincts. The tower form sits above a sculpted podium designed to frame new public spaces, including a through-site pedestrian link connecting Station Street to Hannell Street, landscaped plazas, and activated retail edges.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="a7bd6ff0-f7db-4ce8-a6dc-ea56e72c6149" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20lanne.png?VersionId=xzf39VADyhj7zBQY2I9fx9vI62u2tuSb" />

The design report describes the project as part of the broader transition of Wickham into “a vibrant, high-quality mixed-use urban precinct” that leverages proximity to the station, open space, and regional connectivity.

A detailed public art strategy has also been prepared for the development. The strategy positions the project as “a transit-oriented development of state significance at the gateway to Newcastle’s city centre” and outlines a series of integrated artworks responding to Newcastle’s industrial and transport heritage.

Creative Road’s curatorial framework for the project, titled Unveil, draws on “stratified surfaces, carved volumes, and light-filled apertures” while referencing Newcastle’s transformation from an industrial city into a contemporary education and technology hub.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="77a882bb-14b1-4d28-99ff-9438e39508c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20site.png?VersionId=cevgo_vN0eKPK78P8YcEu3mKPLkpFqE7" />

The proposal is being advanced through the NSW Housing Delivery Authority pathway after being declared State Significant Development in June 2025. The accompanying scoping report states the development aims to “maximise the site’s proximity to the Newcastle Interchange by delivering transit-oriented development” while increasing housing supply and affordable housing provision within the Newcastle LGA.

Urban Property Group’s plans align with the long-term strategic vision established under the Wickham Master Plan, which identified the interchange precinct as suitable for substantial uplift in height and density. The current proposal would significantly intensify that vision, positioning the tower among the tallest developments proposed for Newcastle.

The site sits immediately north of the Newcastle Interchange, bounded by Dangar Street, Hannell Street, and Charles Street. It is surrounded by a rapidly growing cluster of residential towers and mixed-use projects that have emerged following the completion of the light rail and transport interchange.

First look: Urban Property Group unveils Newcastle’s latest tower at Wickham interchange

Bottega House has completed settlement of a landmark riverfront site in Macquarie Street, St Lucia, representing its first major Brisbane development.&nbsp;

Positioned on the banks of the Brisbane River, the <a href="https://www.apartments.com.au/new-apartments/180-macquarie-street-st-lucia-qld-4067">premium site at 180 Macquarie Street</a> features uninterrupted river frontage in one of Brisbane’s most tightly held residential precincts.&nbsp;

The proposed development, currently under assessment with Brisbane City Council, has been designed by <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/mim-design">Mim Design</a> and will deliver a boutique collection of premium residences positioned specifically for owner occupiers and downsizers.&nbsp;

The residences are set to redefine luxury apartment living in the area, with a focus on architectural quality, refined finishes, landscape integration and elevated amenities including curated wellness facilities, resort-style pools and recreation spaces rarely seen in the local market.&nbsp;

Exclusive sales for the project will be led by Keenan &amp; Byrne, ahead of an anticipated launch later this year.&nbsp;

Bottega House Managing Director Nick Malloch said the project reflects the group’s ambition to deliver a highly curated residential offering within one of Brisbane’s most tightly held precincts.&nbsp;

“This is an incredibly rare riverfront opportunity and one we have approached with a long-term perspective,” Malloch said.&nbsp;

“Our vision from the outset was to create a boutique collection of residences that feel more like private homes than traditional apartments, with generous proportions, refined finishes and exceptional amenity throughout."

Malloch says there is a&nbsp;lack of premium owner-occupier stock of this quality in the market, particularly for downsizers wanting space, privacy and a true lifestyle offering without compromise.&nbsp;

"Demand is expected to be strong given the scarcity of premium riverfront opportunities of this nature within Brisbane’s inner-west."&nbsp;

Bottega House secures landmark riverfront site in St Lucia 

<section data-scroll-anchor="false" data-testid="conversation-turn-6" data-turn="assistant" data-turn-id="request-WEB:84a2af5e-d7cf-4ddf-922a-f4d44d6c6caa-2" data-turn-id-container="request-WEB:84a2af5e-d7cf-4ddf-922a-f4d44d6c6caa-2" dir="auto">
<section data-scroll-anchor="false" data-testid="conversation-turn-2" data-turn="assistant" data-turn-id="request-WEB:5a5ab36c-8dd3-454c-b456-c501f22f0eb4-0" data-turn-id-container="request-WEB:5a5ab36c-8dd3-454c-b456-c501f22f0eb4-0" dir="auto">
The arrival of the first piling rig officially marks the commencement of construction at SIERA’s new beachside apartment development, Exhale, in Northcliffe.

<a href="https://www.apartments.com.au/new-apartments/exhale-surfers-paradise-8-enderley-avenue-surfers-paradise-qld-4217">Exhale</a>, a glass-encased tower featuring 54 large-scale apartments at 8 Enderley Avenue, is SIERA’s third Gold Coast development. It follows the recently completed PIPIS Bilinga beachfront project, which achieved suburb-record prices, and the soon-to-be-completed Chevron Island development, Tapestry.

[smartcode_project:default project_id=112661 project_image_fid=359603]

<a href="https://www.apartments.com.au/developers/siera">SIERA</a> Founder and Managing Director Brent Thompson said the arrival of the piling rig represented a significant milestone for the development, which is scheduled for completion in late 2028.

Over the next month, around 260 piles are expected to be installed as work progresses on the basement structure. The building is anticipated to rise above ground level early next year, before unveiling its sculptural glass curtain wall, developed in collaboration with specialist façade engineers.

“The façade was designed to maximise panoramic coastal views while creating a distinctive architectural identity,” Thompson said.

[smartcode_project:default project_id=112661 project_image_fid=355935]

Designed by BDA Architecture, Exhale will comprise just 54 two- and three-bedroom residences across 26 levels, a level of low-density living rarely delivered in this beachside pocket between Surfers Paradise and Broadbeach.

The project has been conceived as a resident-only building, with no short-stay accommodation permitted. SIERA says the model is intended to appeal to long-term owner-occupiers rather than transient holiday demand.

[smartcode_project:default project_id=112661 project_image_fid=361052]

Residences have been designed with large-format layouts and expansive glazing, with most apartments featuring more than 30 metres of glass frontage to maximise natural light and ocean views.

The amenity offering spans two levels and centres on wellness and lifestyle, including a heated magnesium pool, sauna, yoga and Pilates studio, gymnasium, private dining facilities, cinema lounge, and dedicated surfcraft storage.

[smartcode_project:default project_id=112661 project_image_fid=359607]

More than half of the apartments have already sold. SIERA has also opened a sales gallery for Exhale at its Chevron Island commercial premises, near its Tapestry tower and the site of its second Chevron Island apartment development, which is slated to launch in early 2027.
</section>
</section>

[smartcode_project_cta:default project_id=112661]

SIERA kicks off construction at Northcliffe tower Exhale

Corelogic

Property values across the country continued to decline over November, research from property data firm CoreLogic found, but there was a further ease in the speed of the declines.

Dwelling values (which incorporates both houses and units), contracted a further one per cent in November, driven by declines in Hobart (-2 per cent), Canberra (-1.2 per cent), and Sydney (-1 per cent).

Capital city housing markets declined -1.2 per cent, with Brisbane (-2.2 per cent), Hobart (-2 per cent) and Sydney (-1.5 per cent), feeling the declines the hardest.

Capital city units however dropped just -0.6 per cent. Hobart (-1.8 per cent), Sydney (-0.9 per cent) and Canberra (-0.8 per cent) the capital's the most affected in the unit market.

Declines however have continued to soften since August when the national index dropped by -1.6 per cent.

CoreLogic Research Director Tim Lawless said the easing in the rate of decline is mostly emanating from the Sydney and Melbourne markets, but is also evident across many of the smaller capitals and most regional markets.&nbsp;

“Three months ago, Sydney housing values were falling at the monthly rate of -2.3 per cent. That has now reduced by a full percentage point to a decline of -1.3 per cent in November," Lawless said.&nbsp;

"In July, Melbourne home values were down -1.5 per cent over the month, with the monthly decline almost halving last month to -0.8 per cent.

“The rate of decline has also eased across the ACT (from a -1.7% fall in August), and is no longer accelerating in Brisbane. Most of the broad rest-of-state markets have also seen the pace of declines decelerate."

Lawless said that it is possible we are seeing the initial uncertainty around buying in a higher interest rate environment wearing off, while persistently low advertised stock levels have likely contributed to this trend towards smaller value falls. He does however note that housing risk remains skewed to the downside while interest rates are still rising and household balance sheets become more thinly stretched.

“There is still the possibility that the pace of declines could reaccelerate, especially if the current rate hiking cycle persists longer than expected.

"Next year will be a particular test of serviceability and housing market stability, as the record-low fixed rate terms secured in 2021 start to expire."

<h2>Melbourne Market Snapshot</h2>

<ul>
	<li>Unit values across Melbourne dropped just -0.2 per cent across November, the lowest declines the Victorian capital has seen since May. 
	&nbsp;</li>
	<li>It's stark comparison to the housing market, which dropped another -1 per cent.</li>
</ul>

[smartcode_project:default project_id=112174 project_image_fid=199593]

<ul>
	<li>Unit values are now -4.1 per cent down over 2022, almost half the declines felt in the housing market, now -8.1 per cent since the turn of the year. 
	&nbsp;</li>
	<li>The median Melbourne unit value is now $597,000, and houses $759,000.</li>
</ul>

<h2>Sydney Market Snapshot</h2>

<ul>
	<li>Unit values across Sydney dropped just -0.9&nbsp;per cent across November, the third highest of all the capital city markets. 
	&nbsp;</li>
	<li>Sydney houses dropped another -1.5 per cent in November.</li>
</ul>

[smartcode_project:default project_id=22748 project_image_fid=204929]

<ul>
	<li>Unit values are now -8.2 per cent down over 2022, which is double the declines in Melbourne. Houses in the Harbour capital are down -11.9 per cent in the same period. 
	&nbsp;</li>
	<li>The median Sydney unit value is now $781,000, and houses $1,025,000.</li>
</ul>

<h2>Brisbane Market Snapshot</h2>

<ul>
	<li>Brisbane had the biggest divergence between the house and unit market in November 
	&nbsp;</li>
	<li>Unit values across Brisbane dropped just -0.2&nbsp;per cent across November, the third best performing unit market across the capitals. 
	&nbsp;</li>
	<li>Brisbane houses however were the worst performer, down -2.2 per cent</li>
</ul>

[smartcode_project:default project_id=102309 project_image_fid=163977]

<ul>
	<li>The Brisbane unit market has been one of the biggest success stories of 2022, bucking the trend of the downturn. Values are still 7.1 per cent higher than they were at the start of the year. 
	&nbsp;</li>
	<li>The Brisbane house market has also remained resilient, just ticking into negative territory, down -0.8 per cent this year. 
	&nbsp;</li>
	<li>The median Brisbane unit value is now $492,000, and houses $798,000.</li>
</ul>

CoreLogic Research Director Tim Lawless said the easing in the rate of decline is mostly emanating from the Sydney and Melbourne markets

Property downturn continues, but rate of decline softens again: CoreLogic

This time has come for apartments to reign over houses.

It feels like for the last decade, houses have been the ones growing exponentially (that&#39;s because they have) - while apartments, while still seeing solid growth, have been playing second fiddle.

The latest data however out of property data house CoreLogic shows apartment values rose faster than houses in more than half of a pool of suburbs across the country in the past three months, as stretched affordability and lower borrowing capacity forced buyers to opt for high-density homes.

Rising rents are also expected to lure more investors to the unit market and help fuel further price gains this year.

Of the 899 suburbs analysed, units outperformed houses across 489 markets in the last three months.

Compared to a 12 month analysis, only 180 of the same 899 suburbs saw apartments outperform houses.&nbsp;

&quot;This suggests it is a more recent phenomenon where unit values would out-perform houses,&quot; CoreLogic advised.

&quot;It is also in line with the nature of downturns historically, where houses tend to have more volatility, and deeper declines than what we may see in the unit segment.&quot;

Across the capital cities, growth rates have generally been stronger in unit markets further from the CBD.

Sydney&#39;s Newtown was one of 20 Greater Sydney suburbs which saw the unit market outstrip houses. Among others were Darlinghurst, Darlington and Zetland near the CBD, and Caringbah South and Woolooware in the Sutherland Shire area.

In Woolooware, unit values&nbsp;are two and a half times cheaper than houses. Units rose&nbsp;4.9 per cent over the last three months to a median $1.036 million, while the 2.5 per cent house price declines took the median house price to $2.7&nbsp;million.

Sydney-wide, the median house price is now 70 per cent more expensive than units.&nbsp;

Melbourne&#39;s Kensington saw the biggest difference in the house and unit market, with units rising 7.2 per cent and houses remaining flat.

[smartcode_project:default project_id=28968 project_image_fid=195528]

Port Melbourne and Balaclava also saw big swings in favour of the unit market.

Melbourne&#39;s&nbsp;houses are 59 per cent more expensive than units -&nbsp;a drop from 61 per cent earlier this year, while the ACT showed a slight drop with&nbsp;house prices 73 per cent higher compared to units -&nbsp;down one per cent from last year.&nbsp;

Looking ahead, the increased overseas migration, and the relative affordability of units compared to houses, as well as the recent upswing in new investor financing seen in February and March, will likely help insulate the apartment sector.

<h2>The biggest differences in Sydney markets</h2>

<h2><a href="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/syd.png"><img alt="" height="614" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/syd.png" width="1558" /></a></h2>

<h2>The biggest differences in Melbourne&nbsp;markets</h2>

<a href="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/screen_shot_2022-05-25_at_11.10.17_am.png"><img alt="" height="616" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/screen_shot_2022-05-25_at_11.10.17_am.png" width="1556" /></a>

<h2>The biggest differences in Brisbane markets</h2>

<h2><a href="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/screen_shot_2022-05-25_at_11.12.36_am.png"><img alt="" height="616" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/screen_shot_2022-05-25_at_11.12.36_am.png" width="1556" /></a></h2>

&nbsp;

Of the 899 suburbs analysed, units outperformed houses across 489 markets in the last three months

The suburbs where apartments are outperforming houses

The Brisbane unit market is showing consistent growth,&nbsp;according to CoreLogic&#39;s Monthly Hedonic Home Value Index.

Values jumped 1.4%, following the 1.6% gains in March and 1.5%&nbsp;over February. Values are now 6% up over 2022 already, well on their way to matching the 14.4% growth over 2021.

The quarterly performance, up 4.6%, is the highest in the country for the unit market.

The median apartment value in Brisbane is now $488,393. At the start of 2021, it was just over $390,000.

[smartcode_project:default project_id=109830 project_image_fid=184164]

Following the RBA&#39;s first interest rate rise in nearly 12 years at the May meeting,&nbsp;the Real Estate Institute of Queensland (REIQ) said the&nbsp;resilient Queensland market the higher rate forecasts.

REIQ CEO Antonia Mercorella said given the level of inflation, this may not be the last interest rate rise we see, but it was important to recognise that many market conditions and external factors remain favourable in Queensland.

&ldquo;We know that consumer confidence is key, and this move by the RBA will certainly make people stop and think more carefully about how much they are prepared to borrow, because it&rsquo;s a timely reminder that interest rates can and do go up,&rdquo; she said.

[smartcode_project:default project_id=13276 project_image_fid=80720]

&ldquo;While on the face of it, it&rsquo;s not an insignificant rise, in the grand scheme of things interest rates have been at historic lows for some time and are still very low.

&ldquo;This is also where our relative affordability is an advantage, as our average home loan rate is much lower than in capital cities like Sydney and Melbourne, and so the impact will be felt less here.

&ldquo;We remain confident in the resilience of the Queensland market because the need and demand for housing is irrespective, and an interest rate rise simply causes people to rethink what they are prepared to spend and how big of a loan they are prepared to enter into.&quot;

Total advertised inventory of both houses and apartments&nbsp;is more than 20 per cent below levels from a year ago in Brisbane, and around 40 per cent lower than the previous five-year average.

[smartcode_project:default project_id=27815 project_image_fid=192735]

The median apartment value in Brisbane is now $488,393. At the start of 2021, it was just over $390,000

Brisbane apartment market insights: What happened over April

Melbourne&#39;s unit market has continued to hold firm despite a cooling off in the house market.

CoreLogic&rsquo;s national Home Value Index pegged the Melbourne-wide apartment growth at 0.4% over April, the third consecutive month growth in the unit market has outstripped growth in the house market.

The Melbourne unit market (which incorporates both units and townhouses), is now 0.2% since the start of 2022, after posting 0.2% growth across March and 0.1% in Feb. Values started the year poorly, going backwards -0.4% in January.

The median apartment value in Melbourne is now $630,671.

[smartcode_project:default project_id=1260 project_image_fid=177634]

The growth in unit values is a stark contrast to the house market, which is sliding due to the affordability factors brought to more of a head following the RBA&#39;s interest rate hike in May, and expectation of further rate hikes.

Houses Melbourne-wide, on average, have remained flat since the start of 2022, but that was mainly due to a strong start in January. The rolling quarterly growth is now -0.5% after a 0.2% decline across April, CoreLogic data found.&nbsp;

CoreLogic&rsquo;s Research Director Tim Lawless&nbsp;says the weakening state of the market has taken the rolling quarterly trend into negative territory across Melbourne for the first time since these cities were in the midst of extended lockdowns in mid-to-late 2020.

[smartcode_project:default project_id=2806 project_image_fid=175415]

Advertised inventory, at a national level, is tracking almost 30 per cent below the previous five-year average however, in weaker markets like Melbourne, advertised supply levels have normalised, with listings in Melbourne 8.2%&nbsp;higher.

Higher stock levels across these markets can be explained by an above average flow of new listings coming on the market in combination with a drop in buyer demand

&ldquo;With higher inventory levels and less competition, buyers are gradually moving back into the driver&rsquo;s seat. That means more time to deliberate on their purchase decisions and negotiate on price,&rdquo; Lawless says.

Rental markets are also showing multi-speed conditions, with most of the capital cities experiencing an upward trend in rental growth in 2022. Nationally, rents were up 2.7% over the three months to April, taking the annual change in national rents to 9.0%. A year ago, the annual change in national rents was 4.9 per cent. Based on the annual change, house rents (+9.1 per cent) are rising faster than unit rents (+8.7 per cent), however this trend is changing sharply as demand for unit rentals increases.

[smartcode_project:default project_id=253 project_image_fid=52822]

&ldquo;On a rolling quarterly basis, we are now seeing unit rents rising faster than house rents especially in Melbourne where rental conditions across the unit sector were previously much softer,&rdquo; Lawless says.

&ldquo;The shift in rental demand towards units reflects both rental affordability pressures, which are deflecting more demand towards the &lsquo;cheaper&rsquo; unit sector, and the return of overseas migrants and visitors. Rental demand from overseas arrivals tends to skew towards inner city and higher density precincts.&rdquo;

In Melbourne, unit rents are 3.6 per cent higher over the past three months compared with a 1.2 per cent rise in house rents. Higher yields and long-term prospects for capital growth could see investors comprising a larger portion of housing market activity.

[smartcode_project:default project_id=3281 project_image_fid=46048]

With the cash rate set to move through a rapid tightening cycle, CoreLogic expect this trend towards a gradual softening in the growth rate will become more pronounced over the coming months, before the national index starts to trend lower.

&ldquo;Although we are expecting the housing market to move into a downturn through the second half of the year, it is important to remember the context of the recent growth phase,&rdquo; he says.

Melbourne's unit market has continued to hold firm despite a cooling off in the house market


alisonwarters@gmail.com

Melbourne apartment market insights: What happened over April

Melbourne units saw more growth than houses across the Victorian capital over the month of March, CoreLogic&#39;s most recent Home Value Index found.

Unit values rose 0.2 per cent Melbourne-wide, compare to the -0.2 per cent value losses across the housing market.

Since the start of the year, unit values are down -0.2 per cent, however, a sign of the market bouncing back in the city and its surrounds, unit values in the City of Melbourne LGA are up 8.6 per cent in the last six months.

[smartcode_project:default project_id=2929 project_image_fid=137895]

Melbourne unit rents are up 6.9 per cent&nbsp;over the past year, after posting a peak to trough fall of&nbsp;8.5 per cent.

Through the pandemic to-date, house rents in capital&#39;s have risen by 13.8 per cent, compared with a 3.4 per cent rise in unit values nationally.

CoreLogic&#39;s Research Director, Tim Lawless, says the net result is that renting a unit is substantially more affordable than renting a house.

[smartcode_project:default project_id=3459 project_image_fid=179458]

&quot;This affordability advantage, along with a gradual return of overseas migration, employees progressively returning to offices and inner city precincts regaining some vibrancy, are likely key factors pushing unit rents higher,&rdquo; Lawless said.

There&#39;s further growth anticipated for the Melbourne unit market.

&quot;In the lead-up to the federal election, both major political parties have already announced additional support for first home buyers in the form of an extension to low deposit home loan guarantees,&quot; Lawless added.

[smartcode_project:default project_id=2806 project_image_fid=175417]

&quot;Historically, first home buyers have reacted positively to stimulus measures.

&quot;A return of migration will also impact the change, with higher overseas migration&nbsp;a net positive for housing demand.

&quot;The most immediate flow through is likely to be seen in higher rental demand which could incentivise investors and, in the longer term, flow through to purchasing demand from permanent migrants.&quot;

Melbourne unit rents are up 6.9 per cent over the past year, after posting a peak to trough fall of 8.5 per cent


Melbourne units outperform houses over March: CoreLogic

Melbourne apartment values bounced back from a decline across January, posting 0.1 per cent gains in February, CoreLogic&#39;s Monthly Hedonic Home Value Index showed.

The growth outstripped houses, which were flat across the month.

Apartment values across Melbourne rose seven per cent over 2021, which was the lowest growth across all major capitals, namely due to the extended lockdowns Victorian&#39;s faced.

Overseas arrivals and seasonal rental market strength have given a shot in the arm to the rental market, which has been more apparent in the unit market.

[smartcode_project:default project_id=3459 project_image_fid=179455]

CoreLogic&#39;s Head of Research Tim&nbsp;Lawless says the&nbsp;stronger trend in unit rents is most visible in Sydney and Melbourne.

&ldquo;Anecdotally, demand for unit rentals in these cities has been bolstered by a combination of worsening rental affordability deflecting more demand towards the higher density sector, where rents tend to be lower, and demand starting to return from overseas arrivals,&rdquo; Lawless&nbsp;said.

With the pace of growth in housing values softening while rental growth holds reasonably firm, the gross yield profile has finally stabilised at 3.2%, the lowest rate on record. Sydney (2.4%) and Melbourne (2.8%), which have the lowest yield profiles, recorded a slight strengthening in gross yields this month, as rental growth nudges higher than growth in housing values.

[smartcode_project:default project_id=2929 project_image_fid=137897]

Lawless believes&nbsp;we could be seeing rental yields moving through the bottom of their cycle.

&ldquo;After several years of yield compression where gross rental yields reached historic lows across most of Australia&rsquo;s capital cities, we are finally seeing early evidence of yield repair. If rents continue to rise faster than housing values, which is a strong possibility in Sydney and Melbourne, yields will continue to improve.

&ldquo;Cities such as Brisbane and Adelaide, where housing values are still consistently rising faster than rents, are likely to see yields compress to new record lows.

&quot;Despite the downwards trend, yields in these cities remain well above Sydney and Melbourne levels,&rdquo; Lawless said.

&nbsp;

Apartment values across Melbourne rose seven per cent over 2021, which was the lowest growth across all major capitals, namely due to the extended lockdowns Victorian's faced

What happened to Melbourne apartment values in February?

Sydney is approaching a point in the real estate cycle where growth in apartment values is nearly matching the growth in the housing market,&nbsp;CoreLogic&#39;s&nbsp;monthly Hedonic Home Value Index found.

Apartment values rose 0.7 per cent over November, compared to the one per cent gains in houses. For context, across March this year, Sydney houses posted double the growth of apartments, 4.3 per cent in a single month compared to 2.1 per cent for&nbsp;apartments.

Sydney apartment values are now 15.3 per cent up over 2021, just over half of the nearly 30 per cent gains for houses. That&#39;s stretched the median gap between apartments and houses in the harbour capital to $523,000.

Sydney&#39;s median apartment value is now $837,000, compared to $733,000 at the start of 2021.

[smartcode_project:default project_id=7758 project_image_fid=150461]

Although values are continuing to rise across the country, the November result was the softest outcome since January when values rose 0.9 per cent.

Tim Lawless, CoreLogic&rsquo;s research director, says the slowdown in the pace of growth is due to a number of reasons.

&ldquo;Virtually every factor that has driven housing values higher has lost some potency over recent months,&quot; Lawless noted.

&quot;Fixed mortgage rates are rising, higher listings are taking some urgency away from buyers, affordability has become a more substantial barrier to entry and credit is less available.

&ldquo;With such a large value gap between the broad housing types, it&rsquo;s no wonder we are seeing demand gradually transition towards higher density housing options simply because they are substantially more affordable than buying a h​ouse.&quot;

Sydney's median apartment value is now $837,000, compared to $733,000 at the start of 2021

Sydney apartment insights: What happened to Sydney apartment values in November?

Melbourne apartments values continued to show their resilience&nbsp;over 2021, with a further 0.5 per cent growth in November, CoreLogic&#39;s&nbsp;monthly Hedonic Home Value Index found.

Melbourne&#39;s rolling quarterly gains are now at 1.7 per cent,&nbsp;following a one per cent gain over October and 0.2 per cent growth over September.

The median apartment value across Melbourne is now 8.4 per cent higher than it was at the start of 2021, up from $576,000 to $626,000

[smartcode_project:default project_id=2806 project_image_fid=175417]

Based on median values, capital city houses are now 37.9 per cent&nbsp;more expensive than capital city units &ndash; the largest difference on record. In dollar value terms, a capital city house is averaging around $240,500 more than a capital city unit.

In Sydney, where the gap between house and unit values is the widest, a house costs $523,000 more on average than a unit. Melbourne&#39;s gap is around $360,000.

Although values are continuing to rise, the November result was the softest outcome since January when values rose 0.9 per cent.

[smartcode_project:default project_id=2929 project_image_fid=137895]

Tim Lawless, CoreLogic&rsquo;s research director, says the slowdown in the pace of growth is due to a number of reasons.

&ldquo;Virtually every factor that has driven housing values higher has lost some potency over recent months. Fixed mortgage rates are rising, higher listings are taking some urgency away from buyers, affordability has become a more substantial barrier to entry and credit is less available,&quot; Lawless noted.

&ldquo;With such a large value gap between the broad housing types, it&rsquo;s no wonder we are seeing demand gradually transition towards higher density housing options simply because they are substantially more affordable than buying a house.&quot;

[smartcode_project:default project_id=108979 project_image_fid=181109]

Apartment rents in Melbourne continue to rise at a faster pace than house rents over the past four or five months, one of the few capital city&#39;s to be doing so, as investors become more and more inclined to get back in to the inner-city market.

&ldquo;Melbourne&rsquo;s unit sector was previously recording the weakest rental conditions of any capital city, with rents plunging -8.5% between March 2020 and May 2021,&quot; Lawless said.

&quot;It seems that more tenants are taking advantage of the renewed affordability of unit rentals, especially across inner city precincts where rents had previously fallen sharply.&quot;

In Sydney, where the gap between house and unit values is the widest, a house costs $523,000 more on average than a unit. Melbourne's gap is around $360,000.

Melbourne apartment insights: What happened to Melbourne apartment values in November?

Brisbane apartment values spiked 1.3 per cent over October, posting its second highest monthly returns of 2021, CoreLogic&#39;s Hedonic Home Value Index found.

The continued growth sees Brisbane&#39;s apartment values rise 3.3 per cent on a rolling quarterly average, following 0.6 per cent gains last month and 1.4 per cent growth over August.

Apartment values ended 2020 at $390,000. Now the median apartment value is $437,000, up 9.7 per cent year to date.

[smartcode_project:default project_id=108278 project_image_fid=173613]

Brisbane&#39;s rental increase has also been one of the highest in the country, up 2.3 per cent over the last three months, only second to Sydney where rents rose 2.4 per cent.

Overall Brisbane was the fastest growing market over October, with values up 2.5 per cent across the combined house and unit markets.

It was another month in Brisbane where the price gap between houses and units grew further. Houses saw 2.8 per cent gains, more than double the rate of growth for units.

&nbsp;

&ldquo;As housing becomes less affordable, we expect to see more demand deflected towards the higher density sectors of the market,&quot; CoreLogic&#39;s research director, Tim Lawless, said.&nbsp;

[smartcode_project:default project_id=102309 project_image_fid=163974]

&quot;House prices continue to outpace wages by a ratio of around 12:1,&quot; Lawless noted.

&quot;This is one of the reasons why first home buyers are becoming a progressively smaller component of housing demand.&quot;

Lawless&nbsp;expects the flick to higher density&nbsp;to occur most prevalently&nbsp;in Sydney than anywhere else in the country. The gap between the median house and unit value is now nearly $500,000. In Brisbane it&#39;s around $300,000. Melbourne&#39;s house median was $731,000 after the 2.8 per cent October gains.

[smartcode_project:default project_id=106960 project_image_fid=170163]

&quot;With investors becoming a larger component of new housing finance, we may see more demand flowing into medium to high density properties,&quot; Lawless added.

&quot;Investor demand across the unit sector could be bolstered as overseas borders open, which is likely to have a positive impact on rental demand, especially across inner city unit precincts.&rdquo;

&nbsp;

Apartment values ended 2020 at $390,000. Now the median apartment value is $437,000, up 9.7 per cent year to date

Brisbane apartment insights: What happened to Brisbane apartment prices over October?

Sydney apartments values continued their strength&nbsp;over October, posting 1.2 per cent gains over the month to now be 14.5 per cent over the calendar year,&nbsp;according to the monthly Hedonic Home Value Index by CoreLogic.

The gains follow 1.4 per cent growth in August and 1.6 per cent in both June and July.

Over 2020, values were down -0.2 per cent.

The median has now jumped over $100,000 since the start of the year, when the median apartment value was $733,000. Now it&#39;s $837,000.

[smartcode_project:default project_id=7758 project_image_fid=150461]

CoreLogic&#39;s research director Tim Lawless believes Sydney will see the highest trend toward high density living compared to the other capitals, as the gap between the median apartment value and median house value rises to over $500,000. (Sydney&#39;s median house value is now $1.33 million, up 1.6 per cent over October).

&ldquo;As housing becomes less affordable, we expect to see more demand deflected towards the higher density sectors of the market,&quot; CoreLogic&#39;s research director, Tim Lawless, said.&nbsp;

&quot;House prices continue to outpace wages by a ratio of around 12:1,&quot; Lawless noted.

&quot;This is one of the reasons why first home buyers are becoming a progressively smaller component of housing demand.

[smartcode_project:default project_id=7758 project_image_fid=150450]

&quot;With investors becoming a larger component of new housing finance, we may see more demand flowing into medium to high density properties,&quot; Lawless added.

&quot;Investor demand across the unit sector could be bolstered as overseas borders open, which is likely to have a positive impact on rental demand, especially across inner city unit precincts.&rdquo;

Sydney has seen the largest rise in rents over the last three months, up 2.4 per cent, followed&nbsp;by Brisbane, regional Queensland and regional New South Wales (all up 2.3 per cent).

The median has now jumped over $100,000 since the start of the year, when the median apartment value was $733,000. Now it's $837,000

Corelogic

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

Corelogic

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

Developments

New apartments

New townhouses

News