<p>Melbourne developer Spacious Group has completed Voyage Altona, one of the closest new apartment developments to Altona Beach.</p>

<p>Off the plan purchasers have started moving into the 49-apartment project on Pier Street, with the remaining move-in-ready one-, two- and three-bedroom apartments starting from just over $500,000.</p>

<p>Display apartments have now been fitted out, allowing prospective buyers to inspect the completed residences by appointment.</p>

<p>[smartcode_project:default project_id=112195 project_image_fid=372638]</p>

<p>The completed apartments feature open-plan living and dining areas which extend onto private balconies and terraces, while full-height glazing maximises natural light throughout the interiors.&nbsp;</p>

<p>Hybrid timber-look flooring, stone benchtops, Miele appliances, porcelain-tiled bathrooms and generous storage feature throughout the building which also features landscaped communal areas, expansive shared terraces, lift access and secure on-grade parking.</p>

<p>Drawing inspiration from its bayside setting, Voyage adopts a restrained palette of warm neutral tones and textured finishes. Many of the apartments take advantage of views across Port Phillip Bay, while the indoor-outdoor living spaces have been designed to make the most of the coastal outlook.</p>

<p>[smartcode_project:default project_id=112195 project_image_fid=3286]</p>

<p>Voyage was developed to address what Spacious Group identified as an undersupply of higher-quality apartment product in Altona, with a focus on owner-occupiers looking to remain within the bayside community.</p>

<p>"Voyage responds to very strong local buyer demand for quality, owner-occupier-focused product," says Barry Plant Projects Director Jarrod Farey, who has handled sales since the project's launch.</p>

<p>"The project delivers an elevated lifestyle proposition, with its design and quality of finish far exceeding anything previously produced in the area, as well as its proximity to Pier Street Village and the beach."</p>

<p>The majority of purchasers have been local downsizers and owner-occupiers looking to stay within the Altona community but who previously had limited opportunities to buy a brand-new apartment.</p>

<p>[smartcode_project_cta:default project_id=112195]</p>


Joel Robinson

Spacious Group completes Voyage Altona in Altona's beachside precinct

<p>Homecorp has secured approval for a $360 million apartment development at Budds Beach, paving the way for one of the Gold Coast's most amenity-rich residential projects to launch later this year.</p>

<p>Gold Coast City Council has approved Lýon Residences, a 32-level tower that will deliver 178 two and three-bedroom apartments across a prominent corner site at 8-10 Acacia Avenue and 25-27 Oak Avenue.</p>

<p>The approval comes as developers continue to invest in premium lifestyle-driven apartment projects on the Gold Coast, where owner occupiers are increasingly prioritising amenity as much as apartment size and location.</p>

<p><a href="https://www.apartments.com.au/new-apartments/l-on-residences-25-27-oak-avenue-surfers-paradise-qld-4217">Lýon Residences</a> has been designed around a resort-style wellness offering, headlined by a Moroccan-inspired spa precinct featuring treatment rooms, a Nordic sauna and steam room, hot and cold plunge pools, a soaking pool and a residents-only juice bar.</p>

<p>The rooftop will include a heated infinity pool and spa, residents' lounge with private kitchen and bar, gymnasium, yoga and Pilates studio, outdoor entertaining areas and barbecue facilities overlooking the Surfers Paradise skyline.</p>

<p><img alt="Lyon" data-entity-type="file" data-entity-uuid="2d3e29af-8793-486e-a684-52cef862241f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-15%20at%204.32.26%E2%80%AFPM.png?VersionId=ayG2zpLf3SS6Zy8XmKDcQods4kVWb0gm" /></p>

<p>Homecorp Founder and CEO Ron Bakir said Budds Beach provided the ideal location for the company's latest luxury apartment project.</p>

<p>"Budds Beach represents one of the most unique and sought-after pockets of the Gold Coast, and Lýon Residences has been designed to reflect that sense of rarity and refinement," Bakir said.</p>

<p>The project arrives as wellness continues to become a defining feature of new residential developments both in Australia and internationally.</p>

<p>The latest Global Wellness Institute figures show wellness real estate remains the fastest-growing segment of the global wellness economy and is forecast to exceed $1.8 trillion by 2030. Australia continues to rank among the world's 15 largest wellness real estate markets, with developers increasingly integrating health, recreation and community facilities into apartment projects.</p>

<p>Queensland is also experiencing strong population growth, with the Gold Coast continuing to outperform many other Australian cities as demand for new housing remains elevated ahead of the 2032 Olympic and Paralympic Games.</p>

<p>Bakir said the project had been designed to respond to that shift in buyer expectations.</p>

<p>"Strong population growth and sustained demand across the Gold Coast continue to highlight the need for well-designed new housing supply. Lýon Residences responds directly to this demand while setting a new benchmark for residential living," he said.</p>

<p>Each apartment has been designed to maximise views across the coastline, the Nerang River and the Gold Coast hinterland.</p>

<p>Located just minutes from Surfers Paradise beach and the Broadwater, the development also offers easy access to the light rail network, Broadbeach and Burleigh Heads.</p>

<p>Early site works are underway, with construction expected to commence later this year.</p>


Homecorp approved for Budds Beach apartment tower, Lýon Residences

<p>New apartment developments with uninterrupted, north-facing views over Perth's Swan River are exceptionally rare.</p>

<p>Recognising just how limited those opportunities are, <a href="https://www.apartments.com.au/developers/edge-visionary-living">Edge Visionary Living</a>, one of Perth's most respected builder-developers, targeted <a href="https://www.apartments.com.au/developments/applecross-wa-6153">Applecross</a>, assembling an unrepeatable 6,342 sqm riverfront site on the corner of Moreau Mews and Canning Beach Road to create one of Perth's only new north-facing apartment developments directly overlooking the Swan River.</p>

<p>Today, <a href="https://www.apartments.com.au/buildings/riviere-residences-applecross-59-canning-beach-road-applecross-wa-6153">Rivière Residences</a> offers buyers a unique opportunity to choose between completed residences ready to move into now and off-the-plan homes in the final stage, Rivière West.</p>

<p>[smartcode_project:default project_id=28384 project_image_fid=3823]</p>

<p>Across the completed East and Central buildings, residents are already enjoying the development's luxury amenity, while two of the precinct's hospitality venues are now open.</p>

<p>The completed component of the development gives buyers the advantage of experiencing the finished product firsthand, including its uninterrupted river views, while still having the opportunity to secure a residence in the final stage.</p>

<p>"People are wowed by the view and the quality of the apartments,"&nbsp;Edge Visionary Living Sales Executive, Holly McSweeney, says.</p>

<p>"They're looking for the convenience of lock-and-leave living, but they're not looking to downsize on quality."</p>

<p>[smartcode_project:default project_id=28384 project_image_fid=3826]</p>

<p>The rarity of the development hasn't been lost on prospective buyers, McSweeney says.</p>

<p>For McSweeney, it all comes back to a location that is becoming increasingly difficult to replicate.</p>

<p>"Location, location, location," she says. "We are nestled right on the front of the Swan River. You can never get built out, so wherever you are in Rivière Residences, you've got views of the river forever."</p>

<p>The unique waterfront position has resonated particularly strongly with local downsizers. McSweeney says many buyers are long-time Applecross residents looking to transition from large family homes into a luxury apartment without sacrificing space, quality or the lifestyle they've enjoyed for decades.</p>

<p><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/N_FowNW0wu8?si=vb25XFq1wZ-iufAW" title="YouTube video player" width="560"></iframe></p>

<p>A major focus for Edge in recent years has been resident amenity. Across its apartment portfolio, from beachfront developments in Scarborough to luxury towers in South Perth, the developer has increasingly invested in the spaces beyond the apartment itself.</p>

<p>The strategy has largely been shaped by downsizer demand. Many buyers are moving from large family homes with swimming pools and established gardens. While they're looking to leave the maintenance behind, they don't want to compromise on lifestyle.</p>

<p>At Rivière, <a href="https://www.apartments.com.au/architects/hillam-architects">Hillam Architects</a> designed the resident facilities as an extension of each apartment. A 25-metre heated swimming pool takes advantage of the north-facing river outlook, complemented by a large gym, sauna and steam rooms, private dining spaces, residents' lounges, a cinema, games room, and dedicated wine and whisky rooms.</p>

<p>[smartcode_project:default project_id=28384 project_image_fid=372542]</p>

<p>The waterfront location has also proved to be a major drawcard. Residents are within walking distance of the Raffles Hotel, South of Perth Yacht Club, the Heathcote Cultural Precinct and the cafés, restaurants and boutiques along Ardross Street.</p>

<p>Beyond the location and amenity, McSweeney says many buyers take confidence from Edge's fully integrated development model.</p>

<p>Having delivered apartments across Perth for decades, Edge now designs, develops and constructs its projects in-house, giving the company greater control over quality, delivery and the finished product.</p>

<p>"What I love is when people walk through their apartment for the first time and say, 'This is better than what we imagined,'" McSweeney says. "We hear that all the time."</p>

<p>Completed apartments in the East and Central buildings are now available to inspect by appointment, while Rivière West, the final stage of the precinct, is expected to be completed in the first quarter of 2027.</p>

<p>[smartcode_project_cta:default project_id=28384]</p>


North-facing Swan River views drive demand at Rivière Residences in Applecross

<p>Nearly 60 per cent of apartments at McNab Group's $220 million The Tannery development in Brisbane's West End have sold ahead of the project's public launch, including a suburb-record $2.57 million sale for a two-bedroom apartment.</p>

<p>The early sales campaign has secured buyers for 50 of the project's 87 apartments, highlighting continued demand for larger owner-occupier apartments that combine generous floorplans with premium lifestyle amenities in one of Brisbane's most tightly held inner-city suburbs.</p>

<p>[smartcode_project:default project_id=143337 project_image_fid=374768]</p>

<p>McNab Group Executive Chairman Michael McNab said selling more than half the project before launch reflected changing buyer expectations.</p>

<p>"Selling more than half the project before public sales open tells us buyers are actively seeking apartments that offer something genuinely different," McNab said.</p>

<p>"Today's buyers are looking beyond four walls. They want homes that genuinely enhance the way they live, with spaces that support health, connection and everyday wellbeing."</p>

<p>[smartcode_project:default project_id=143337 project_image_fid=374767]</p>

<p>A key point of difference for the project is the adaptive reuse of the heritage-listed Dixon's Tannery building, which will become The Retreat, a residents-only wellness precinct rather than being redeveloped into additional apartments.</p>

<p>The Retreat will feature a sauna and steam room, hot and cold plunge pools, a commercial-grade gym, Pilates studio, cinema, library, co-working spaces and private dining room. Rooftop amenities will include a swimming pool, landscaped gardens, outdoor entertaining areas and dog-friendly spaces.</p>

<p>[smartcode_project:default project_id=143337 project_image_fid=374760]</p>

<p>Designed by Cottee Parker Architects with interiors by Tom Mark Henry and landscape architecture by Aspect Studios, The Tannery comprises 87 two, three and four-bedroom apartments across 11 levels overlooking the Brisbane River.</p>

<p>Cottee Parker principal Dee Passenger said preserving the original tannery building had been central to the project's design.</p>

<p>"The easy option would have been to maximise the site's development potential with additional apartments. Instead, McNab has chosen to preserve the original tannery as a shared wellness retreat, ensuring this important piece of Brisbane's history remains at the heart of the community."</p>

<p>Passenger said sustainability also played a key role in the design, with materials from the original industrial site salvaged and repurposed throughout the development.</p>

<p>[smartcode_project:default project_id=143337 project_image_fid=374761]</p>

<p>Motiv CEO Carly Cottam said buyers had responded strongly to the combination of larger apartments, wellness facilities and the West End lifestyle.</p>

<p>"We are seeing more buyers looking for homes in the sky that provide the space and functionality of a traditional home, while benefiting from the convenience and lifestyle that apartment living brings," Cottam said.</p>

<p>She said purchasers included both owner occupiers and investors, with demand coming from local buyers as well as interstate purchasers.</p>

<p>Coinciding with the public launch, McNab also announced a partnership with Queensland Ballet, whose neighbouring Thomas Dixon Centre shares historical ties with the original Dixon family.</p>

<p>Located on a 4,465 sqm site at 439 Montague Road, The Tannery overlooks the Brisbane River and is around 10 minutes from the CBD.</p>

<p>Construction is underway, with completion expected in the second half of 2027.</p>

<p>[smartcode_project_cta:default project_id=143337]</p>


More than half of residences sold before public sales as McNab announces significant partnership with Queensland Ballet

McNab's The Tannery nears 60 per cent sold before public release, sets two-bedroom West End record

<p>Iwan Sunito's vision for a landmark mixed-use precinct in Sydney's Inner West has taken a major step forward, with approval granted for the $1.9 billion Five Dock development first unveiled earlier this year.</p>

<p>The approved scheme by <a href="https://www.apartments.com.au/developers/one-global-capital">One Global Capital</a> will deliver an 80,500 sqm mixed-use precinct comprising 840 apartments, integrated hotel accommodation, commercial and retail space, alongside publicly accessible open space designed to create a new destination for the growing suburb.</p>

<p>"This is a significant milestone for One Global Capital and for the future of housing delivery in Sydney," Sunito said.</p>

<p>"The Housing Delivery Authority was established to identify major housing projects capable of delivering meaningful supply more efficiently, and we are delighted that Spencer Street has been recognised as one of those projects.”</p>

<p>He said the declaration reflected the rapid progress achieved since acquiring control of the site.</p>

<p>"In less than seven months we have progressed from taking control of the site to securing entry into one of the NSW Government's most important planning pathways. It reflects the experience of our team, the strength of our consultant group led by Urbis, and our long-term commitment to delivering transformational projects that contribute to Sydney's future."</p>

<p>When the project was revealed earlier this year, Sunito described the opportunity as one of the strongest development sites he had worked on.</p>

<p>"I probably hadn't appreciated the uniqueness of the site until more recently when putting together the concept plans," Sunito said.</p>

<p>"The proximity to the water, and the golf course opposite, is unlike any other part of Parramatta Road. We have a unique position and view corridors over the water that makes this one of the best sites I've worked on."</p>

<p>The development has evolved since its initial announcement, with the approved plans increasing the residential component from the originally proposed 750 apartments to 840 homes while retaining the project's focus on creating an integrated neighbourhood rather than a standalone residential development.</p>

<p><em>Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/a-city-within-a-city-iwan-sunito-flags-1-5-billion-mixed-use-precinct-in-five-dock">"A city within a city": Iwan Sunito flags $1.5 billion mixed-use precinct in Five Dock</a></em></p>

<p>The precinct will combine apartments with hotel accommodation, commercial workplaces, retail offerings and public spaces, creating a mixed-use environment intended to serve both residents and the broader Five Dock community. The proposal also continues the collaboration between One Global Capital and internationally recognised architect <a href="https://www.apartments.com.au/architects/koichi-takada-architects">Koichi Takada</a>, whose previous work with Sunito includes Infinity, Arc and Skye North Sydney.</p>

<p>Takada previously said the design was driven by a philosophy of integrating nature into the built environment.</p>

<p>"The concept for this development is born from our design approach to naturalising architecture," Takada said.</p>

<p>"The public realm benefits from biophilic design that integrates generous landscaping, and the development is optimised for natural daylight, airflow and water views to foster wellbeing, sustainability and spaces that foster community interaction."</p>

<p>Sunito has consistently described the project as a "city within a city", with a strong emphasis on creating a destination that extends beyond housing.</p>

<p>"We want to create a development that's not only to be seen, but to be experienced by the whole local community," he said.</p>

<p>The approval comes as Five Dock continues its transformation ahead of the opening of the Sydney Metro West line, with the new Five Dock station set to significantly improve connections between the Inner West, Parramatta and the Sydney CBD.&nbsp;</p>

<p>The precinct will also benefit from its proximity to the Parramatta Road corridor, nearby waterfront parklands and established retail and dining offerings that have made Five Dock one of Sydney's most tightly held Inner West suburbs.</p>


Iwan Sunito secures approval for $1.9 billion Five Dock mixed-use precinct

Dwelling Construction

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<p>EXPERT OBSERVER</p>
<p>Dwelling approvals posted a much smaller than expected 0.2% dip in Dec, following a sharp 10.9% jump in November. The Consensus had been looking for a 5% pull back. Annual growth lifted to 2.7%yr, the first positive since June 2018, albeit with monthly comparisons flattered by base effects. Measured on a quarterly basis, Q4 saw a 6.1%qtr rise but approvals still down 8.3%yr.</p>
<p>As noted in our preview, the previous month's gain was heavily concentrated in NSW, which posted a 50%+ rise, approvals ex NSW down 0.9%. We attributed much of this to a delayed effect associated with regulatory changes rolled out in October with December expected to see the spike reverse.</p>
<p><img src="https://www.urban.com.au/images/2020/2/4/Dwelling%20Approvals%20CL%20JAN.JPG" alt=""></p>
<p>The December detail confirmed this with a sharp reversal in NSW (–30%mth) but the impact was negated by an even sharper high-rise-driven spike in Vic (+34%mth). Our initial take is that this is again largely a temporary effect relating to the lumpy high rise project pipeline. That said, Vic is showing a decent lift in non high rise approvals as well that may be an early sign that the wider market upturn is starting to flow through to non high rise segments.</p>
<p>Outside of NSW and Vic, approvals across the rest of Australia fell 3.6%mth on a combined basis and are tracking a much weaker profile. For the December month, approvals fell 5.7% in Qld, slumped 20% in SA but rose 5.4% in WA.</p>
<p>The segment breakdown nationally showed an estimated 11% pull back in high rise approvals which followed a 40% jump in Nov. 'Low-mid' rise approvals surged strongly, up an estimated 19% in the month and 22%yr. Private house approvals dipped 0.1%mth to be down 7.1%yr. On a combined basis, non high rise approvals were up 4.1%mth but still down 0.8%yr.</p>
<p>Renovation approvals continued to fall sharply into year end, the total value of approvals down further 1.8% in December to be down 5.5% for Q4 as a whole – the fastest pace of decline since 2016.</p>
<p>Non residential building approvals pared back some of their recent weakness, jumping 35% in the month but still down 17.5% for Q4 as a whole – the segment can be extremely volatile month to month but has moved into a fairly clear downtrend since August.</p>
<p>Overall the December update shows a complex mix with one off factors likely again exaggerating strength but some hints of firming elsewhere. As always, housing-related data should be treated with extra caution through the December-January period as seasonality can amplify volatility. On balance we continue to expect approvals to show a muted and slow response to rate cuts with a gradual lift in non high rise approvals coming through more strongly by mid-2020 (overlaid with a slightly boost from bushfire-related rebuilding) but high rise holding broadly flat. While the monthly profile for total approvals may be shaping into a sharper turning point the detail suggests the underlying cycle is turning more slowly. Either way, its likely to be a few more months before we get a clear read.</p>
<p><strong>MATTHEW HASSAN </strong>is a Senior economist at Westpac</p>
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Have dwelling approvals reached a turning point? Matthew Hassan

j.ballantyne1990-6AQqhLzZaK

Australia building activity to plummet but set for mid 2020 recovery: BIS Oxford Economics

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Significant slowdown in dwelling commencements this quarter: Cameron Kusher

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<p>If the leading dwelling construction indicators do not improve in the first half of 2019, then the pipeline of building work will be exhausted at a concerning rate, according to HIA's latest report.</p>
<p>The report found the pipeline of building work has expanded over recent years and the backlog that once existed has been reduced.</p>
<p>Tim Reardon, HIA Chief Economist said, “The downturn in the level of home building activity will be contained to the next two years, as long as migration policy is not tightened further."</p>
<p>“In 2018, market confidence fell away as dwelling prices corrected, adversely impacting all segments of the market. Investors and owner occupiers are delaying purchase decisions and foreign investment has also fallen dramatically for numerous reasons."</p>
<p>“Builders in markets with a significant volume of work in the pipeline – such as Melbourne – have not been affected by the downturn yet, but other markets that were already performing poorly – such as Perth – have seen their market fall to a new historic low point," he stated.</p>
<p>Tim Reardon is of the opinion that the building industry, which has been a driving factor for the rest of the economy for the past five years, will now be relying on the rest of the economy to deliver a "contained" downturn.</p>
<p>“The expectation that governments will not constrain net overseas migration is central to this outlook for a contained downturn."</p>
<p>“If the fall in overseas migration accelerates then interest rate cuts are likely to be necessary in order to mitigate the adverse impacts of this home building downturn on the wider economy,” concluded Mr Reardon.</p>
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The pipeline of home building work is shrinking: HIA

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<p>CoreLogic head of research Tim Lawless has noted although dwelling values have been falling over the past three months, rental rates have been increasing over the same period.</p>
<p>"In fact, rental rates are higher over the year in all capital cities other than Perth and Darwin and within all regional markets except for regional Western Australia," Lawless said.</p>
<p>"The markets experiencing the greatest increases in rents over the past year have been Hobart (10.2%) which has recorded double-digit annual rental growth for the first time since August 2009 and regional Tasmania (7.6%) which is experiencing the strongest rental growth since the end of 2008. </p>
<p>Lawless said with rental rates climbing at a time when dwelling values are falling, the result is that gross rental yields are starting to repair after a long period of yield compression.</p>
<p>"In fact, at a national level yields have not been as high as they are currently in 11 months."</p>
<p>Rental yields are lifting from record lows in Melbourne and Sydney.</p>
<p>"Throughout the last 12 months, gross rental yields in Sydney and Melbourne have lifted from historic lows.</p>
<p>"Although the increase in yields is gradual, gross rental yields in Sydney are now at their highest level since October 2016 and in Melbourne yields are the highest they have been since September of last year.”</p>
<p>“Ordinarily, higher yields would be a factor attracting more investment activity to the market, however a combination of softer dwelling values, tighter credit and lower sentiment will likely continue to dampen investment participation in the housing market.less competition from the investment sector has likely supported a rise in first home buyer buying."</p>
<ul>
<li>Highest rental yield: Darwin 5.9% </li>
<li>Lowest rental yields: Melbourne 2.9% </li>
</ul>
<p> <img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/3/1/INDEX%201.jpg" alt=""></p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/3/1/INDEX%202.jpg" alt=""></p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/3/1/INDEX%203.jpg" alt=""></p>
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Gross rental yields in Sydney and Melbourne have lifted from historic lows: CoreLogic

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<p>Concerns about returns from Australia's burgeoning rent-to-build sector have been put forward by the fund manager of the $120 billion AustralianSuper’s property division, according to reports in The Australian.</p>
<p>The Australian said the superannuation firm had some doubts about the potential performance of the assets.</p>
<p>AustralianSuper senior investment manager for property Christine Phillips was reported as saying demand for build-to-rent properties in Australia was clear, and their supply was under consideration by large developers, such as Lendlease and Mirvac, but returns were in question.</p>
<p>“I don’t dispute the demand side of it. I think that there is definitely a market for institutional owned rental — professionally run rental accommodation that treats its tenants with respect,” she said.</p>
<p>“They’re able to not take the development profit, they’ve probably got land that’s sitting there at a cost that makes the numbers stack up better, they’ve got the end operation that can operate it once it’s up.</p>
<p>“The question for everyone is what return do we need to invest in Australia, and that’s proving difficult.”</p>
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Concerns about returns from Australia's burgeoning rent-to-build sector

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<p>GUEST OBSERVER</p>
<p>Approvals by local councils to build new homes rose by 10.9 per cent in June after falling by 5.4 per cent in May. House approvals rose 4 per cent to 13-month highs. </p>
<p>What does it all mean?</p>
<p>Apartment approvals bounced higher in June, but the long-term trend shows that home builders are now increasingly looking to build free-standing homes or townhouses. The share of new building allocated to townhouses has hit a 7-year high of 14.7 per cent while detached houses now account for 51.1 per cent of building – a 15-month high. Whether local councils are saying no to high rise apartments or whether it is the end- buyer saying no, builders, developers and building material providers will need to carefully watch future trends.</p>
<p>More homes are still being approved for construction by local councils. Some thought that the housing pipeline would be well and truly drying up by now, but that’s certainly not the case. The number of council approvals is actually little-changed on a year ago.</p>
<p>What do the figures show?</p>
<p>Building Approvals:</p>
<p>Dwelling approvals rose by 10.9 per cent in June after falling by 5.4 per cent in May. In trend terms, approvals rose by 0.1 per cent in June – the first rise in four months.</p>
<p>Over the past year 219,284 new homes were approved, down from the record high 242,629 in the year to August 2016.</p>
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<p> </p>
<p>House approvals rose by 4.0 per cent in June – the third straight gain and the highest number in 13 months. Meanwhile ‘lumpy’ apartment approvals rose by 20.1 per cent in June after falling by 12.4 per cent in May. Apartment approvals have moved in a dramatic zig-zag fashion for the past five months.</p>
<p> </p>
<p>Across states/territories: NSW (+24.8 per cent); Victoria (+6.1 per cent); Queensland (+0.1 per cent); South Australia (-20 per cent); Western Australia (+19.6 per cent); Tasmania (-8.3 per cent). Trend terms: Northern Territory (-2.7 per cent); ACT (+5.9 per cent).</p>
<p> </p>
<p>Western Australian approvals hit 7-month highs in June. NSW approvals rose the most in 11 months.</p>
<p> </p>
<p>Dwelling approvals in May were down by 2.3 per cent on a year ago in seasonally adjusted terms and were down by 14.9 per cent in trend terms.</p>
<p> </p>
<p>The value of all commercial and residential building approvals rose by 2.2 per cent in June – the third straight gain. Residential approvals rose by 5.5 per cent with new building up by 5.4 per cent while alterations &amp; additions rose by 6.7 per cent to a 6-month high. Commercial building fell by 2.6 per cent in June after rising 13.5 per cent in the two previous months.</p>
<p> </p>
<p>What is the importance of the economic data?</p>
<p> </p>
<p>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.</p>
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<p><span>What are the implications for interest rates and investors? </span></p>
<p><span>Home building remains healthy – and it’s not just new homes but also renovations, tracking near record highs. At present building isn’t soaring nor slumping, but the Reserve Bank will certainly need to keep housing well and truly in the centre of its radar screen over the coming year. </span></p>
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<p class="p1"><span class="s1"><em>Craig James is the chief economist at </em><a href="https://www.comsec.com.au/default.aspx"><span class="s2"><em>CommSec</em></span></a><em>.</em> </span></p>
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cjames-5S2v74qSNK

Builders again embrace houses: Craig James

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<p><img src="https://counter.theconversation.edu.au/content/76776/count.gif?distributor=republish-lightbox-advanced" alt="The Conversation" width="1" height="1">GUEST OBSERVER</p>
<p class="p1"><span class="s1">Crane-spotters rejoice. The <span class="s2">10th Rider Levett Bucknall (RLB) Crane Index®</span> is public. And the news is, well, rather illuminating.</span></p>
<p class="p1"><span class="s1">Operating since 2012, the Australian RLB Crane Index® tracks the number of tower cranes in key cities in Australia. Based on the theory that cranes in the sky indicate major project construction, the index gives a simple insight into the construction sector’s health within Australia.</span></p>
<p class="p1"><span class="s1">So, what does the 10th edition tell us?</span></p>
<p class="p1"><span class="s1">The most obvious message is that if cranes were the only thing that mattered in the competition between the capitals, Sydney would win hands down. Sydney’s skylines are home to more than 50 percent of Australia’s cranes. Melbourne has 22 percent and Brisbane 12 percent, with the remaining 10 percent divvied up between other major cities across the country. While the overall number of cranes in Australia has declined slightly, the index in Sydney and Melbourne continues to rise.</span></p>
<p class="p2"><a href="https://www.propertyobserver.com.au/images/2017/05/03/Screen%20Shot%202017-05-03%20at%208.31.09%20AM.png" target="_blank">Click to enlarge</a></p>
<p class="p2"><img src="https://www.urban.com.au/images/2017/05/03/Screen%20Shot%202017-05-03%20at%208.31.09%20AM.png" alt=""></p>
<p class="p5"><span class="s1"><strong>Most cranes are used to construct apartments</strong></span></p>
<p class="p1"><span class="s1">But it’s not just the number of these soaring splendours of the sky that is of interest to those keeping an eye on cities. There have also been shifts in the number of cranes dedicated to sector.</span></p>
<p class="p1"><span class="s1">The vast majority of cranes (about 84 percent) are used on residential sites – ie. the construction of apartments. Commercial projects come in a pitiful second with 5 percent of crane activity. Other sectors, including health, education, infrastructure and recreation projects, make cameo appearances to make up the remaining 11 percent.</span></p>
<p class="p1"><span class="s1">The distribution of cranes amongst project types, however, and the shift in this distribution, is different from city to city. All cities apart from the east coast powerhouses of Sydney and Melbourne experienced a decrease in cranes on residential projects. And the increase in cranes building apartments in Sydney (34) far outstrips any increase in Melbourne (13).</span></p>
<p class="p5"><span class="s1"><strong>Cranes cluster in Melbourne but spread all over Sydney</strong></span></p>
<p class="p1"><span class="s1">Another interesting insight from the index is the geographical dispersal of cranes across cities. The index report contains heat maps showing hot spots for crane activity. Again, the difference in the dispersal of cranes across Sydney compared to Melbourne is particularly telling.</span></p>
<p class="p2"><a href="https://www.propertyobserver.com.au/images/2017/05/03/Screen%20Shot%202017-05-03%20at%208.33.11%20AM.png" target="_blank">Click to enlarge</a></p>
<p class="p2"><img src="https://www.urban.com.au/images/2017/05/03/Screen%20Shot%202017-05-03%20at%208.33.11%20AM.png" alt=""> </p>
<p class="p2"><a href="https://www.propertyobserver.com.au/images/2017/05/03/Screen%20Shot%202017-05-03%20at%208.34.24%20AM.png" target="_blank"> Click to enlarge</a></p>
<p class="p2"><img src="https://www.urban.com.au/images/2017/05/03/Screen%20Shot%202017-05-03%20at%208.34.24%20AM.png" alt=""></p>
<p>While Sydney’s 292 residential cranes are scattered throughout the entire metropolitan area, Melbourne’s 122 long-armed navvies are more concentrated in its inner urban core.</p>
<p class="p1"><span class="s1">Why the increases in cranes dedicated to residential construction in Sydney and Melbourne? And why the differences in dispersal versus concentration between the two cities?</span></p>
<p class="p1"><span class="s1">The larger apartment blocks which require cranes are expensive to construct – the square-metre rates are at least double the rates of lower-density dwellings. For these larger projects to be feasible, they need to be in a neighbourhood where the price of the finished apartment is still less than the price of a separate dwelling – ie. areas with a higher median house price.</span></p>
<p class="p1"><span class="s1">Previously, this situation did not apply to many suburbs. However, the most recent surge in housing prices in Sydney has pushed up prices, rendering high-rise construction feasible in many more areas. This has extended not only the prevalence of high-rise, but also their footprint across the city.</span></p>
<p class="p1"><span class="s1">Of course, the price surge has also been experienced in Melbourne, but to a lesser degree and in a more concentrated manner, with Melbourne’s pricier suburbs sticking closely to the inner urban core.</span></p>
<p class="p1"><span class="s1">A second reason for the increase and dispersion in Sydney is that many of these larger projects are now approved by Sydney planning panels, rather than by local government. The majority of members of these panels are experts appointed by the planning minister. Hence they avoid the anti-densification tradition that lingers in some local government areas, again enabling approval and construction of high-rise throughout the suburbs.</span></p>
<p class="p1"><span class="s1">The RLB crane index is therefore not just a source of fascination for urban crane-spotters. Although it isn’t exactly rigorous evidence of city morphology over time, it’s interesting to look sideways from traditional indices for novel expressions of change.</span></p>
<p>Jennifer Kent is<a href="https://theconversation.com/profiles/jennifer-kent-13822"> </a>research fellow, University of Sydney and can be contacted <a href="https://theconversation.com/profiles/jennifer-kent-13822" target="_blank">here</a>.</p>
<p>Peter Phibbs is chair of Urban Planning and Policy, University of Sydney and can be contacted <a href="https://theconversation.com/profiles/peter-phibbs-27130" target="_blank">here</a>.</p>
<p class="p1"><span class="s1">Both are authors for The Conversation.</span></p>
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jchancellor-FAypfDUnLy

Crane-spotting: a way to tell which Australian cities are growing and where

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<p><span>New home sales bounced back in November 2016 according to the latest </span>New Homes Sales Report from the Housing Industry Association.</p>
<p>Harley Dale, HIA chief economist, said following a dip to a two year low last October, the November bounce in new home sales is a reminder that the national new home construction sector remains in strong shape</p>
<p>“The sector may have just passed its peak, but the short term outlook is a healthy one, a conclusion supported by other leading indicators such as the ABS measures of Building Approvals and Housing Finance," he said.</p>
<p>"The survey shows a 6.1 percent bounce in seasonally-adjusted new home sales.</p>
<p>"Over the three months to November 2016 the total number of new home sales fell by 0.7 percent to be down by only 0.2 percent when compared to the same three month period in 2015.</p>
<p><span>“At this stage of the new home building cycle that’s a very impressive result – </span><span>this is already the largest and longest national new home construction cycle in history.</span><span><br></span></p>
<p><span>“</span><span>A healthy outlook for new home construction in the first half of 2017 is good news for the Australian economy, because of the huge impact that new home construction has on broader economic activity. Without the boost from housing over the last five years the domestic economy would have at some point </span><span>slipped into recession.</span></p>
<p><span>“You wouldn’t want </span><span>to be seeing signals of an imminent and sharp slowdown in national new home building acti</span><span>vity, and we’re not. Looking further out, the declines in construction activity </span><span>will inevitably </span><span>become chunkier."</span></p>
<p><a href="https://www.propertyobserver.com.au/images/2017/01/20/Screen%20Shot%202017-01-20%20at%2010.37.01%20AM.png" target="_blank"><span>Click to enlarge</span></a></p>
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jonathanchancellor-7SQnKwU6yx

New home sales bounce back in November 2016: HIA

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<h3 class="post-title entry-title"> </h3>
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<div>Australia's GDP increased to $1.67 trillion in financial year 2016, measured in seasonally adjusted Chain Volume Measures terms, now tracking at just above $420 billion per quarter.</div>
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<div>Following on from yesterday's post, a quick look here at industry gross value added (GVA).</div>
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<div>Having accounted for just over 5 per cent of industry GVA three decades ago, mining's share has swelled to 8.9 percent as export volumes begin to ramp up.</div>
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<div>Finance and insurance also now accounts for 8.9 per cent of industry GVA, up from just 4.9 per cent in 1986.</div>
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<div>You can click on the chart to expand it (or use the touch screen, if you have one of those, of course).</div>
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<div><a href="/images/2016/09/28/GVA.jpg" target="_blank">Click to enlarge</a></div>
<br><div class="separator"><img src="/images/2016/09/28/GVA.jpg" alt=""></div>
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<div>On the other hand, manufacturing is shrinking as a share of the pie, declining from a share of 11.1 percent at the beginning of this chart to just 5.8 percent in 2016.</div>
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<div><strong><span style="text-decoration: underline;">Construction wind-down</span></strong></div>
<div> </div>
<div>The latest figures show that the contribution of construction to GDP has remained solid at 7.6 per cent, tracking at around $32 billion per quarter.</div>
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<div>A decade ago construction was contributing only $13 to $14 billion per quarter. </div>
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<div>This suggests that the planned 'hand-off' from resources to residential construction was generally a success between 2012 and 2016. </div>
<div> </div>
<div>However, this does also mean that as residential construction eventually winds down there will be quite a hole in domestic demand to be plugged by something other than rising mining export volumes.</div>
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<div>Given the respective skill-sets of all those construction workers, tradies, and project managers, the answer should be: infrastructure and non-residential construction, as I looked at in a bit more detail here. </div>
<div> </div>
<div>Indeed, the unprecedented stamp duty windfall from Sydney's property boom is already funding a range of infrastructure projects in Sydney and New South Wales. </div>
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<div>But what about the gaping gulf left behind in the resources regions? </div>
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<div>Troubling, and this may be leading to an exodus of regional workers. </div>
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<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
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