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

Joel Robinson

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

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

Sammut secures approval for debut Brisbane apartment development in Toowong

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

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

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

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

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

WM Residences fills gap in Mordialloc townhouse market

Dwelling Approvals

<html><body><div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
Data from the ABS show residential building approvals increased by 3 percent in April, exceeding a monthly total of 20,000 according to the housing Industry Association.
HIA economist Geordan Murray said approvals for multi-unit dwellings drove the headline growth in April, with approvals growing by 8.1 per cent during the month.
“The growth in multi-unit approvals was driven by the eastern sea-board states, where we saw multi-unit approvals jump by 20 percent in Queensland, 19 percent in New South Wales, and 7 percent in Victoria. South Australia also posted an increase of 3 percent," he said.
“Approvals for detached houses continue to flow through at a steady rate. While there was a decline of 2 percent in the month, there were a total of 9,695 detached dwellings approved which is still on par with the monthly average over the last couple of years. 
“In contrast to the situation with multi-unit approvals, the number of detached house approvals fell across the eastern sea-board states while all other states and territories posted improvements. It’s pleasing to see the likes of South Australia post the strongest month of detached house approvals in more than two years.
"We maintain our view that the level of new home building activity in to 2016 is likely to be lower than we saw during 2015, however this result suggests the 2016 level may be closer to the peak than initially expected.” 
According to the HIA, during April 2016, total seasonally adjusted new home building approvals saw the largest increase in South Australia (+13.7 percent) with growth in Tasmania (+13.6 percent), New South Wales (+10.4 percent), and Queensland (+6.7 percent). 
Approvals fell by 2.7 percent in Victoria and by 0.6 percent in Western Australia. 
<a href="/images/2016/05/31/Screen%20Shot%202016-05-31%20at%202.47.05%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/05/31/Screen%20Shot%202016-05-31%20at%202.47.05%20PM.png" alt="">
</div>
</div>
</div>
</div></body></html>

jonathanchancellor-7SQnKwU6yx

Resurgence in multi-unit dwelling approvals: HIA

<html><body>
GUEST OBSERVER
Dwelling approvals rose by 3.0 percent in April. The value of all building soared by 18.3 percent – the biggest monthly rise in four years. Building was at record highs in trend terms.
Net foreign debt rose by $9.1 billion to a record $1027.8 billion as at the end of the March quarter.
Net exports (exports less imports) will provide a solid 1.1 percentage-point contribution to economic growth in the March quarter. The CBA Group estimates that the economy grew by 1.1 percent in the March quarter to be up 3.2 percent over the year. If the data is confirmed tomorrow it would show the economy growing at the fastest annual rate in 2½ years.
Lending up: Private sector credit (lending) rose by 0.5 per cent in April to stand 6.7 per cent higher than a year ago – the strongest growth in seven years.
The approvals data has implications for banks, building and building material companies. The balance of payments data has implications for trade-exposed businesses and companies vulnerable to changes in the Aussie dollar. 
<a href="/images/2016/05/31/Screen%20Shot%202016-05-31%20at%202.12.18%20PM.png" target="_blank">Click to enlarge</a>
 <img src="/images/2016/05/31/Screen%20Shot%202016-05-31%20at%202.12.18%20PM.png" alt="">
What does it all mean?
Did the Reserve Bank get it wrong? Or do policymakers just have a new-found belief that the economy can go faster without generating higher inflation?
Certainly all of today’s economic readings were strong: credit (lending) growth at 7-year highs; biggest lift in building work in four years; record value of building approvals; record exports; and a solid export contribution to economic growth. Overall, the Australian economy may have grown at the fastest pace in 2½ years in the March quarter. We will know tomorrow. But we tip 1.1 per cent economic growth in the quarter to be up 3.2 per cent over the year. Economic growth over the past three quarters may have run at a 3.7 per cent annual rate.
The gloomsters may point to Australia’s record foreign debt and high current account deficit. The more positive observers will point out that debt servicing is not far from the best levels in over 30 years.
Foreign debt is an issue for global investors. But the half a cent lift in the Aussie dollar after today’s data suggests that investors understand the somewhat unique Australian situation.
What do the figures show? 
Building Approvals:
Dwelling approvals rose by 3.0 per cent in April after a 2.9 per cent gain in March. Over the past year 235,025 new homes were approved, up from March but still down on the record 239,507 approvals in the year to October 2015.
House approvals fell by 1.9 per cent in April (private sector fell by 2.3 per cent). Meanwhile ‘lumpy’ apartment approvals rose by 8.1 per cent in April after rising by 2.4 per cent in March. Private sector apartment approvals rose by 8.7 per cent in April.
Dwelling approvals in April were up by 0.7 per cent on a year ago with house approvals down by 8.9 per cent while apartments are up by 11.5 per cent.
Across states and territories in April: NSW approvals rose by 10.4 per cent; Victoria fell by 2.7 per cent; Queensland rose by 6.8 per cent; South Australia rose by 13.8 per cent; Western Australia fell by 0.6 per cent; Tasmania rose by 14.0 per cent. In trend terms, approvals fell by 15.2 per cent in the Northern Territory and rose by 6.7 per cent in the ACT.
The value of all commercial and residential building approvals rose by 18.3 per cent in April (biggest rise in 4 years) after falling by 4.3 per cent in March. Residential approvals rose by 8.4 per cent with new building up by 7.2 per cent while alterations &amp; additions soared by 18.7 per cent. Commercial building rose by 47.3 per cent in April to be up 32.4 per cent over the year.
Balance of Payments
The broadest measure of Australia's external position - the current account – improved in the March quarter (smaller deficit), with the deficit narrowing from $22.6 billion to $20.8 billion. 
The balance of goods and services was in deficit by $8.1 billion after a $10.9 billion deficit in the December quarter. Exports rose by 4.4 per cent in real terms while imports fell by 0.8 per cent.
At the end of the March quarter, net foreign equity was $15.7 billion – essentially Australians own more assets overseas than foreign investors own here in Australia. But the positive net foreign equity position weakened from $57.89 billion in the December quarter.
The trade sector (exports less imports) will provide a 1.1 percentage point contribution to economic growth in the March quarter.
Terms of trade (ratio of export to import prices) fell by 1.9 per cent to 78.7 in the March quarter – lowest level in 10 years. The terms of trade for goods fell by 2.8 per cent but the terms of trade for services rose by 1.0 per cent.
Net foreign debt rose by $9.1 billion to a record $1,027.8 billion as at the end of the March quarter.
The debt servicing ratio (net income on foreign debt to goods and services credits) improved from a near 4-year high of 8.2 per cent to 8.1 per cent in the March quarter.
The current account deficit to GDP ratio eased from a near 6-year high of 5.5 per cent to 5.1 per cent in the March quarter.
The net foreign debt to GDP ratio rose from 63.8 per cent to a record high of 64.3 per cent in the March quarter.
Government Finances
Government consumption spending rose by 0.9 per cent in the March quarter after a 0.6 per cent increase in the December quarter. Total public investment rose by 0.7 per cent in the March quarter after rising by 5.8 per cent in the December quarter. Overall, spending by the government sector rose by 0.8 per cent in the March quarter after lifting by 1.5 per cent in the December quarter.
<a href="/images/2016/05/31/Screen%20Shot%202016-05-31%20at%202.15.32%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/05/31/Screen%20Shot%202016-05-31%20at%202.15.32%20PM.png" alt="">
Private sector credit
Private sector credit (lending) rose by 0.5 percent in April after a 0.4 percent gain in March. Annual credit growth rose from 6.4 percent to 6.7 percent – equalling the fastest annual pace in 7 years. 
Housing credit grew by 0.4 percent in April after a 0.5 percent gain in March. Housing credit is up 7.0 percent on a year ago. 
Owner occupier housing credit rose by 0.5 percent in April to stand 7.3 percent higher than a year ago – the fastest annual growth since September 2010.
Investor housing finance lifted 0.3 percent in April to stand 6.5 percent higher over the year – the slowest growth in 31 months.
Personal credit was down 0.1 per cent in April after falling by 0.3 per cent in March. Personal credit was down 0.9 per cent over the year – just up from the slowest annual rate in almost 4 years.
Business credit rose by 0.8 per cent in April to record highs. Business credit is 7.4 per cent higher than a year ago – the fastest growth rate in seven years.
<a href="/images/2016/05/31/Screen%20Shot%202016-05-31%20at%202.17.32%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/05/31/Screen%20Shot%202016-05-31%20at%202.17.32%20PM.png" alt="">
What is the importance of the economic data?
The Bureau of Statistics' monthly Building Approvals release contains figures on local council approvals to build residential structures such as homes and units as well as commercial premises such as offices and shops. Approval is one of the first stages of the construction ‘pipeline’ and is thus a key leading indicator of future activity. An increase in approvals would point to stronger future activity for construction-related companies.
The quarterly Balance of Payments figures have few short-term effects on financial markets. The importance of the data is merely to highlight Australia’s trading position with the rest of the world as well as the contribution of foreign trade (exports less imports) to the latest estimates of economic growth.
Private sector credit figures are released by the Reserve Bank on the last working day of the month. Credit is separated into three categories – housing, other personal and business. Private sector credit is effectively the amount of loans outstanding in the economy. If growth in lending is strong then it suggests that credit from financial institutions is freely available, underlying demand for assets such as cars and houses is firm and that the price of credit (interest rates) is attractive.
What are the implications for interest rates and investors?
Today’s data will give the Reserve Bank policymakers some extra time to assess the next move. It is hard to fault the latest data readings with most parts of the economy now pointing north. Ordinarily data similar to that released today would cause analysts to tip rate hikes, rather than rate cuts. But at present deflation and disinflation are upper most in policymaker minds – here and abroad.
 It is almost as if some analysts had forgotten that the mining construction boom had progressed to the mining production boom. Exports hit record highs in the March quarter and further gains lie ahead.
<a href="/images/2016/05/31/Screen%20Shot%202016-05-31%20at%202.20.01%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/05/31/Screen%20Shot%202016-05-31%20at%202.20.01%20PM.png" alt="">
Craig James is the chief economist at <a href="https://www.comsec.com.au/default.aspx" target="_blank">CommSec</a>.
</body></html>

cjames-5S2v74qSNK

Record exports, building, business loans: CommSec's Craig James

<html><body>
GUEST OBSERVER
Dwelling approvals were stronger than expected in April, posting a 3 percent rise against expectations of a 3 percent fall.
Approvals have risen 6 percent over the last 2mths with the monthly trend rate lifting back to 1.2 percent, an double-digit annualised pace.
However, the detail carries a strong warning that this renewed uptrend is unlikely to sustain and may be prone to a sharp reversal in coming months. 
All of the gain is coming from a resurgence in ‘high rise’ approvals, up an estimated 16% in April alone and nearly 40% since Feb (Westpac estimates of seasonally adjusted approvals).
That is unlikely to continue both in light of the segment’s typically ‘lumpy’ monthly profile and its exposure to investor activity – a segment currently coming under additional pressure from tightening lending conditions domestically and efforts to rein in non-resident purchases.
Meanwhile, other segments are looking much more subdued: private detached house approvals declined 2.3 percent mth and ‘low-mid-rise’ unit approvals posted a small rise but coming off a sharp fall in March (Westpac estimates of seasonally adjusted approvals).
The state detail shows the high rise increase was concentrated in NSW and Qld.
Ex high-rise, approvals are showing tentative signs of stabilising in NSW and WA and are continuing to track higher in Qld and Vic, giving a very mixed read on trends overall.  The value of renovation and non res building approvals both posted strong gains in April, lifting trend growth into strong positive for renovations but just flat for non res building.
Overall, approvals continue to surprise to the upside but the detail is much less positive given the extent to which high rise approvals are driving gains. Details  Private houses  –2.3%mth, –8.9%yr      
Private 'units'    8.7%mth, 13%yr                       
NSW     10.4%mth, 18.8%yr   Vic       –2.7%mth, –4.6%yr   Qld       6.7%mth, 16.8%yr     WA       –0.6%mth, –28.4%yr SA        13.7%mth, 30%yr                  
Alteration &amp; additions^   18.7%mth, 13.7%yr     Non-residential^                         47.3%mth, 32.4%yr       ^ value      
 
Matthew Hassan is senior economist with <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>.
</body></html>

Matthew_Hassan-HHWHptmrw4

High-rise resurgence offsetting slowdown in other housing segments: Westpac's Matthew Hassan

<html><body>
GUEST OBSERVER
Fishermans Bend is Australia’s largest urban renewal zone and has Melbourne’s biggest speculative apartment supply pipeline.
17,873 residential dwellings have been proposed in Fishermans Bend since January 2014, yet only one project, Gravity Tower has proceeded. More than 6,500 dwellings currently hold planning approval while a further 23 projects totaling 10,800 dwellings are still awaiting a decision.
So what’s the problem?
The 450 hectares of land located adjacent to Melbourne’s existing CBD is prime for residential living. It presents the growing city an opportunity to expand whilst alleviating current housing affordability concerns. The City of Melbourne is forecast to grow by 100,000 new residents per year and is earmarked as Australia’s largest city by 2051, overtaking Sydney.  Further, social trends to live in close proximity to Melbourne’s CBD have added existing pressure on dwelling supply across the inner ring.
Fishermans Bend was rezoned from an industrial use in 2012. In 2014 the existing Fishermans Bend Strategic Framework Plan was released. But the plan has caused large uncertainty over the precinct’s future livability, which has ultimately stifled development. Vague transport and infrastructure plans specifically have undermined confidence. As a result land owners have postponed construction and flipping approved development sites has become a common practice.
The newly elected Victorian Minister for Planning, the Hon Richard Wynne, is to reboot the plans with the intention to create a clear vision for the future Fishermans Bend community. Appointing the Fishermans Bend Advisory Committee (FBAC) in July 2015 was his first step.  Whilst the plans are not set to be finalised until the end of 2016 multiple amendments have already been made:
<ul>
<li>
Land coverage increased: An additional 250 hectare zone has been added to the Fishermans Bend precinct; labelled as the employment precinct.</li>
<li>
Neighbourhood planning: Individual localised structure plans will be devised for the four neighbourhood precincts of Wirraway, Sandridge, Lormier and Montague, in addition to the overarching plan.</li>
<li>
Interim mandatory height limits: previously discretionary height controls were made mandatory in April 2015.</li>
<li>
Proposed Transport infrastructure: The 2014 infrastructure plans for two metro stations and a tram extension from the western end of Collins Street across the Yarra River were never finalised. A new integrated transport plan will be developed.</li>
<li>
Alternative use of the Port of Melbourne: In 2015 the Victorian State government leased the Port of Melbourne on a further 50 year term putting redevelopment plans on hold.</li>
<li>
Public third party engagement: A draft Communications and Engagement Plan was released in September 2015 putting greater emphasis on community and stakeholder engagement.</li>
</ul>
The sheer magnitude of potential development activity is a major challenge. Docklands, Melbourne’s most recent urban regeneration precinct is 20 years into its urban renewal and has witnessed a mere 5,300 apartments developed in this timeframe.
A multitude of factors will still need to be overcome by the refreshed plans to ensure Fishermans Bend emerges as a complementary mini city to the world’s most livable city, MELBOURNE.
<a href="/images/2016/02/22/Picture2_10Feb2016.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/02/22/Picture2_10Feb2016.jpg" alt="">
Annabelle Atkins is Research Analyst for JLL in Australia and can be contacted <a href="https://www.jllapsites.com/research/author/annabelle-atkins/" target="_blank">here</a>.
</body></html>

jchancellor-FAypfDUnLy

Melbourne’s hot spot for future apartment supply: Annabelle Atkins

<html><body>
GUEST OBSERVER
Dwelling approvals posted a better than expected rebound in Dec with a surprisingly strong rise in detached house approvals aiding an expected partial recovery in units from a big fall in Nov. Total approvals rose 9.2%, well above the consensus expectations of +4%. While approvals are still down 4.3% over the 2mths, the Dec detail was positive.
In particular, private detached house approvals posted a surprisingly strong 5.4% gain (+4.5%yr). This segment is typically more stable than total approvals and for most of 2015 was drifting lower at 0.6% a month. The gain accounted for the upside surprise vs expectations in Dec.
In contrast, the ‘other housing’ segment, i.e. units, posted a solid 12.8% rebound in line with expectations following the 22% slump in Nov (approvals down 6.5%yr). The detail shows a ‘modest’ partial rebound in high rise approvals (we estimate +12% in seasonally adjusted terms vs a 33% drop in Nov) with a slight gain in ‘low-mid-rise’ approvals. Interestingly, on a combined basis, detached housing and non-high rise units are now showing a reasonable uptrend running around +4% in annualised terms.
<a href="/images/2016/02/04/Screen%20Shot%202016-02-04%20at%2011.21.39%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/02/04/Screen%20Shot%202016-02-04%20at%2011.21.39%20AM.png" alt="">
Looking by state, the bulk of the monthly volatility was in Vic which whipped around ±35% in Nov-Dec. Approvals posted a solid 2.1% gain in NSW, pulled back 4.6% in Qld (though following a strong gain in Nov) and jumped in WA (though still down 29%yr). The state detail on detached houses showed gains in all states with a very strong 13.9% surge in Qld. The latter suggests some of the Dec gain in total detached housing could be an anomaly (Qld accounted for 2.1ppts of the 5.4%mth surge). 
The value of renovation approvals rose 3.5% in Dec to be up 11%yr, a reasonably solid uptrend in place albeit heavily concentrated in NSW where approvals recorded a big jump in Dec (+9.8%mth, +28.6%yr).
<a href="/images/2016/02/04/Screen%20Shot%202016-02-04%20at%2011.23.34%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/02/04/Screen%20Shot%202016-02-04%20at%2011.23.34%20AM.png" alt="">
In stark contrast, the value of non res building approvals continues to bump around a weak level with unconvincing momentum. A 6.1% fall in Dec left approvals flat vs a year ago with quarterly results suggesting activity will pull back sharply once current projects start to wind down.
Looking at 2015 as a whole, the calendar year saw a record 232k dwellings approved, a 13.7% jump on 2014 and blitzing previous records (prior to 2014, the record high was 201k in 1973). For the first time ever there was virtually a 50:50 split between detached houses and unit approvals with the latter accounting for almost all of the growth in the year.
The Dec report showed a better than expected finish to the hear, also hinting at some residual momentum in non-high rise sectors holding the construction cycle up. More generally, the concentration of units and longer time required for these projects points to another significant leg higher in actual construction work before an eventual peak comes in late 2016.
Matthew Hassan is senior economist with <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>.
</body></html>

2015 saw a record 232,000 dwellings approved: Westpac's Matthew Hassan

<html><body>
GUEST OBSERVER
Dwelling approvals came in weaker than expected in Aug, with a fall in units dragging total approvals down 6.9% vs expectations of a 2% dip.
That said, the decline comes off a higher base with the Jul gain revised up from +4.2% to +7.9%. The net result is that the level of approvals in Aug is only 1% lower than the consensus forecast implied off the old base.
<a href="/images/2016/01/12/Screen%20Shot%202016-01-12%20at%208.57.28%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/01/12/Screen%20Shot%202016-01-12%20at%208.57.28%20AM.png" alt="">
It's becoming an all too familiar refrain for monthly housing data, but volatility continues to cast major doubts over underlying trends. Some sort of slowdown is underway with approvals passing a clear peak back in Mar. The extent of the slowdown is proving difficult to pinpoint though.
Current trend figures show declines running at a 5–10% annualised pace but only a month or two ago the decline appeared to be running more in the 10-15% range. The monthly volatility is such that this trend pace could easily move again once another month's data is incorporated.
<a href="/images/2016/01/12/Screen%20Shot%202016-01-12%20at%208.58.35%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/01/12/Screen%20Shot%202016-01-12%20at%208.58.35%20AM.png" alt="">
The detail shows the Aug decline was concentrated in ‘unit’ approvals which were down 11.4% following a 14.6% surge in Jul. Our estimates indicate that, within this segment, 'high rise' approvals have driven all of the Jul-Aug variation with the smaller 'low rise' sub-segment showing a more consistent downtrend throughout.
Private sector houses posted a surprisingly strong 4.9% gain in Aug, a relatively big move for what is usually a more stable segment. Note that private sector houses held flat throughout the most recent surge in approvals (since late 2014) which has entirely driven by units.
<a href="/images/2016/01/12/Screen%20Shot%202016-01-12%20at%209.00.25%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/01/12/Screen%20Shot%202016-01-12%20at%209.00.25%20AM.png" alt="">
The state breakdown shows the Jul-Aug volatility centred on NSW where unit approvals spiked 98% in Jul, reversing 66% in Aug to be back below their Jun level.
Three month averages smooth the state level volatility somewhat. For 'high-rise' they show continued strength in NSW but signs of a fairly sharp downturn coming through in Vic (we have noted in previous bulletins that this is likely being accentuated by a pull forward in approvals associated with the new Vic state government levy introduced in July).
<a href="/images/2016/01/12/Screen%20Shot%202016-01-12%20at%209.01.59%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/01/12/Screen%20Shot%202016-01-12%20at%209.01.59%20AM.png" alt="">
For non-high rise, the state figures suggest strengthening approvals in NSW vs a moderation in Vic, flat-lining approvals in Qld and declines in WA.
The value of renovation approvals pulled back sharply in Aug, down 7.9%mth, with the 3mth rolling average growth rate slowing abruptly from 9.3% in Jun to –1.7% in Aug.
The value of non residential building approvals also fell 10% in Aug although that followed a similar-sized gain in Jul and is well within the range of volatility for this segment. Approvals are still on a reasonable rising trend.
<a href="/images/2016/01/12/Screen%20Shot%202016-01-12%20at%209.03.24%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/01/12/Screen%20Shot%202016-01-12%20at%209.03.24%20AM.png" alt="">
Overall, the Aug detail is a little less downbeat than the surprisingly weak headline number would suggest. The main takeaway though is that a downturn of some sort is underway, the extent of which remains highly uncertain.
Matthew Hassan is senior economist with <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>. 
</body></html>

Watch for a lift in the 'drop-out' rate between unit approvals and construction: Westpac's Matthew Hassan

<html><body>
GUEST OBSERVER
The Australian Bureau of Statistics (ABS) released building approvals data for October 2015 earlier today. 
Focusing just on dwelling approvals, although they were slightly lower than the recent record high levels, the overall number of dwellings approved for construction remain extremely high from a historical standpoint.
<a href="/images/2015/12/2/Chart-1.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2015/12/2/Chart-1.jpg" alt="">
There were 19,652 dwelling approvals in October which was 3.9% higher over the month and 12.3% higher year-on-year.  If we look at approvals over the past 12 months there has been a record high 233,180 approvals which is 17.3% higher year on year.
<a href="/images/2015/12/2/Chart-2.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2015/12/2/Chart-2.jpg" alt="">
In October 2015, there were 9,435 houses and 10,218 units approved for construction nationally.  House approvals are -2.1% lower over the month and -2.3% lower year-on-year.  The more ‘lumpy’ unit approvals have increased by 10.1% over the month and are 30.2% higher year-on-year.  The data highlights the rising prevalence of unit approvals and this is particularly reflected if we look at the annual approvals.  For the first time ever there have been more units approved (117,072) over the past year than houses (116,111).
<a href="/images/2015/12/2/Chart-3.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2015/12/2/Chart-3.jpg" alt="">
With the rising prevalence of unit construction there has also been a record high proportion of high-rise approvals over the past year.  Looking at unit approvals over the past year, 25.5% of approvals were for townhouses, 9.1% were for low-rise (less than four storeys) and 65.4% were for high-rise (four storeys or more).  
To put the rise in high-rise into context, a year ago 56.5% of unit approvals were high-rise, five years ago the figure was 38.1% and a decade ago high-rise accounted for 36.9% of unit approvals.  Clearly densification and demand for inner city living is driving the rising demand for high-rise units.  
It’s also important to note that over recent years, Chinese and Indians have overtaken New Zealanders and those from the United Kingdom as our largest sources of migrants.  While New Zealanders and those from the United Kingdom often prefer houses like most Australians, Chinese and Indians are much more accustomed to living in smaller homes and in much higher density environments.  This is another driver of the growing prevalence of high-rise approvals.
<a href="/images/2015/12/2/Chart-4.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2015/12/2/Chart-4.jpg" alt="">
Turning to approvals in the capital cities, there were 17,236 capital city dwelling approvals in October which was 15.9% higher over the month and 16.9% higher year-on-year. There were 6,691 houses and 10,545 units approved for construction over the month.  House approvals fell by -1.8% over the month to be -6.6% lower year-on-year while unit approvals increased 30.8% over the month and were 39.2% higher year-on-year.
<a href="/images/2015/12/2/Chart-5.jpg" target="_blank">Click to enlarge</a>
 <img src="/images/2015/12/2/Chart-5.jpg" alt="">
Across the individual capital cities, house approvals generally fell over the month however, they have for the most part been trending higher of late but are lower relative to a year ago.  Over the month there were 1,373 approvals in Sydney, 2,244 in Melbourne, 945 in Brisbane, 1,410 in Perth, 540 in Adelaide, 77 in Hobart, 43 in Darwin and 59 in Canberra.  Year-on-year the changes in approvals have been recorded at -3.8% in Sydney, +2.4% in Melbourne, -6.8% in Brisbane, -23.9% in Perth, +24.4% in Adelaide, +6.9% in Hobart, -30.6% in Darwin and -45.9% in Canberra.
<a href="/images/2015/12/2/Chart-6.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2015/12/2/Chart-6.jpg" alt="">
While housing approvals may be showing early signs of slowing across the capital cities, the same can’t be said for unit approvals which in most cities remain at or close to record highs.  Across the capital cities there were 3,630 approvals in Sydney, 3,640 in Melbourne, 1,671 in Brisbane, 677 in Perth, 561 in Adelaide, 6 in Hobart, 215 in Darwin and 145 in Canberra.  The year-on-year changes in approvals have been recorded at +73.7% in Sydney, +32.6% in Melbourne, +37.4% in Brisbane, -10.8% in Perth, +18.4% in Adelaide, -80.6% in Hobart, +83.8% in Darwin and +0.7% in Canberra.
Based on the data it seems that the demand from developers to seek approvals for units, particularly high rise approvals, is continuing to climb.  Countering this is the slowing in detached housing demand.  As mentioned earlier, the biggest sources of migration to Australia are more comfortable with high-rise development and this coupled with the fact it is relatively more affordable than detached houses seems to be driving the demand. 
The challenge from here with value growth now slowing is how many of these approvals will be delivered to the market.  We already have concerns surrounding potential settlement risk for projects already under construction given that banks have recently changed lending requirements to investor.  Keep in mind that unit stock is much more likely to be purchased by investors than detached houses.
Although there has been a slight easing of approvals over recent months they remain at near record highs.  Of course population growth is winding down, particularly overseas migration, which should result in an ongoing improvement in housing supply relative to housing demand.
Cameron Kusher is research analyst for CoreLogic RP Data. You can contact him <a href="https://blog.corelogic.com.au/author/cameron-kusher/" target="_blank">here</a>.
</body></html>

ckusher-ujnxiKuFQs

Dwelling approvals remain at near record high levels thanks to high-rise approvals: Cameron Kusher

<html><body>
Dwelling approvals are historically close to record levels according to CoreLogic RP Data, who found Melbourne leading the nation in the number of approvals.
The CoreLogic RP Data Housing Market and Economic Update for August 2015 found Sydney follows Melbourne, followed by Perth and Brisbane.
 
<a href="/images/2015/08/28/Screen%20Shot%202015-08-28%20at%206.10.02%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/08/28/Screen%20Shot%202015-08-28%20at%206.10.02%20PM.png" alt="">
</body></html>

Dwelling Approvals

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

Dwelling Approvals

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

Developments

New apartments

New townhouses

News