<p data-end="568" data-start="388">Abadeen has released the whole-floor penthouse crowning its recently completed <a href="https://www.apartments.com.au/buildings/park-residences-cremorne-2-sutherland-street-cremorne-nsw-2090">Park Residences</a> development in Cremorne, bringing the near-300 sqm residence to market for the first time.</p>

<p data-end="803" data-start="570">Occupying the entire top floor of the boutique Lower North Shore development, the penthouse includes 221 sqm of internal living and a 74 sqm wraparound terrace, with a prized north-facing aspect taking in views across Middle Harbour.</p>

<p data-end="1041" data-start="805">The residence has been completed and fully furnished following a collaboration between Abadeen Executive Chairman Justin Brown and internationally recognised interior designer Jack Freeman, Founder and Managing Director of FREEMAN &amp; CO.</p>

<p data-end="1239" data-start="1043"><a href="https://www.apartments.com.au/developers/abadeen">Abadeen</a> and Freeman approached the penthouse as a finished home, sourcing furniture, artwork, lighting and objects from Australia and overseas.</p>

<p data-end="1239" data-start="1043">[smartcode_project:default project_id=114246 project_image_fid=378718]</p>

<p data-end="1459" data-start="1241">Pieces from Parisian design house Pierre Augustin Rose sit alongside contemporary artworks and bespoke lighting, with Freeman drawing on recent visits to PAD Paris and Salone del Mobile Milano for the final collection.</p>

<p data-end="1582" data-start="1461">Brown said the aim was to create a penthouse that felt more like a large-scale private home than a traditional apartment.</p>

<p data-end="1777" data-start="1584">"The experience begins the moment the lift doors open. You're welcomed into an elegant dining room before the home opens into an extraordinary living space framed by sun-drenched harbour views.</p>

<p data-end="2018" data-start="1779">"Every time someone walks through the front door they pause. It's not just the view, it's the incredible sense of space, the warmth created by the northern sunlight that fills the interiors, and the way every room connects so effortlessly.</p>

<p data-end="2245" data-start="2020">"It has all the proportions of a luxury home, while delivering the effortless lifestyle and personalised experience of living in a world-class six-star hotel, combined with the simplicity and convenience of apartment living."</p>

<p data-end="2245" data-start="2020">[smartcode_project:default project_id=114246 project_image_fid=378713]</p>

<p data-end="2438" data-start="2247">A secure lift provides exclusive access to the penthouse level, opening to a dedicated arrival foyer and dining area before the residence expands into its main living and entertaining spaces.</p>

<p data-end="2577" data-start="2440">Floor-to-ceiling glazing runs across the northern side of the home, connecting the interiors with the terrace and Middle Harbour outlook.</p>

<p data-end="2772" data-start="2579">The penthouse also features a fireplace and substantial chef's kitchen, while the wraparound terrace has been designed to accommodate both everyday outdoor living and larger-scale entertaining.</p>

<p data-end="2245" data-start="2020">[smartcode_project:default project_id=114246 project_image_fid=378720]</p>

<p data-end="2245" data-start="2020">Freeman said the interiors had been deliberately kept restrained to complement the scale, natural light and outlook already established by the architecture.</p>

<p data-end="2996" data-start="2932">"The penthouse is a serene study in quiet luxury," Freeman said.</p>

<p data-end="3264" data-start="2998">"The interior pairs soft, sculptural forms with warm timber, pale stone and a restrained neutral palette. Curated artwork and metallic accents add depth, while abundant natural light creates a calm, effortlessly refined atmosphere. In my world, less is always more."</p>

<p data-end="3384" data-start="3266">Freeman said the approach was centred around collecting individual pieces rather than simply decorating the apartment.</p>

<p data-end="3531" data-start="3386">"Every material, every object and every piece of furniture has been curated with intention. I am a true believer in collecting versus decorating.</p>

<p data-end="3823" data-start="3533">"The architecture already provided extraordinary natural light, remarkable volume and an uninterrupted connection to Middle Harbour. Our role was to complement those qualities with unique one-of-a-kind pieces of fine art and collectible design sourced from recent travels around the world."</p>

<p data-end="3823" data-start="3533">[smartcode_project:default project_id=114246 project_image_fid=378694]</p>

<p data-end="3986" data-start="3825">Among the collection are solid bronze sculptures by Lorenzo Quinn, alongside a curated crystalware collection and pieces sourced from international design fairs.</p>

<p data-end="4199" data-start="3988">Park Residences sits opposite Cammeray Golf Club, Cammeray Croquet Club and Grand Slam Tennis Cammeray, around 300 metres from Neutral Bay Village and its established collection of restaurants, cafés and retail.</p>

<p data-end="4370" data-start="4201">Brown said the combination of a whole-floor floorplan, northern aspect and proximity to Neutral Bay was becoming increasingly difficult to find on the Lower North Shore.</p>

<p data-end="4516" data-start="4372">"Completed whole-floor penthouses with a sun-drenched north-facing aspect and sweeping Middle Harbour views are exceptionally rare," Brown said.</p>

<p data-end="4717" data-start="4518">"Add a quiet position opposite golf, croquet and tennis facilities, a level walk to Neutral Bay Village and only minutes to the CBD, and you have a lifestyle that's incredibly difficult to replicate.</p>

<p data-end="4883" data-start="4719">"This is a home that offers the privacy and generosity of a luxury residence together with the convenience of one of Sydney's best-connected harbourside locations."</p>

<p data-end="4947" data-start="4885">The penthouse will be exclusively marketed by SRM Residential.</p>

<p data-end="4947" data-start="4885">[smartcode_project_cta:default project_id=114246]</p>


Joel Robinson

Abadeen unveils penthouse at Park Residences in Cremorne

<p>New Brisbane developer Dalcott has unveiled Marrone, the first of three residential projects it is planning in and around Browning Street in South Brisbane.</p>

<p><a href="https://www.apartments.com.au/new-apartments/marrone-south-brisbane-39-browning-street-south-brisbane-qld-4101">Marrone</a> will comprise 97 predominantly two- and three-bedroom apartments, with larger residences aimed squarely at the owner-occupier market.</p>

<p>The project will sit in a quiet pocket of South Brisbane between South Bank and West End, close to the restaurants, cultural attractions and riverfront amenity that have driven the suburb's continued transformation.</p>

<p>Dalcott is targeting buyers looking for more space and amenity than has traditionally been offered in the inner-city apartment market, particularly downsizers and professionals wanting to remain close to the city.</p>

<p>[smartcode_project:default project_id=149951 project_image_fid=377072]</p>

<p>Resident facilities will be concentrated around an extensive rooftop amenity offering, including a swimming pool, spa, infrared sauna, warm and cold magnesium plunge pools, private lounge, dining room and outdoor entertaining areas.</p>

<p>Dalcott Managing Director Lachlan Cottee said South Brisbane's combination of lifestyle, connectivity and established character had been central to the approach to Marrone.</p>

<p>“South Brisbane offers a combination of lifestyle, connectivity and character that’s difficult to replicate elsewhere in Brisbane,” Cottee said.</p>

<p>“Our focus has been on creating homes that feel connected to that environment while providing the level of design, functionality and quality that today's owner-occupiers expect.”</p>

<p>The residences will feature an expressive material palette. Italian Calacatta Viola marble, known for its deep burgundy veining, will be paired with aged brass tapware, Chestnut engineered timber flooring and Tuscan Oak joinery.</p>

<p><img alt="Marrone" data-entity-type="file" data-entity-uuid="b8d833da-3b30-496a-ae30-07bdff371b50" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%2010.52.35%E2%80%AFAM.png?VersionId=P6DAgOfaQzIXljKKK5j3e5NhWtrHIu9G" /></p>

<p>Bathrooms will feature Nara Japanese ceramics and glass bricks, while clay, walnut and brass lighting will be used throughout the apartments.</p>

<p>Dalcott has appointed Realm Projects, led by Managing Director Shane Foley, to handle sales and marketing following previous sold-out collaborations between the groups.</p>

<p>Foley said the Brisbane apartment buyer had become increasingly focused on the quality of the home itself rather than simply securing an inner-city address.</p>

<p>“We expect to see strong demand from buyers who still want all the advantages of inner-city living but aren’t prepared to compromise on the quality of their home,” Foley said.</p>

<p>“Many will be downsizers looking to leave behind the maintenance of a traditional family home without giving up the space they enjoy, while others are likely to be professionals wanting a residence that reflects the way they live today.”</p>

<p>“Marrone responds directly to that demand, with generous floorplans, exceptional resident amenity and a location that places some of Brisbane’s best dining, entertainment and cultural attractions within walking distance.”</p>

<p><img alt="Marrone" data-entity-type="file" data-entity-uuid="61f7b22f-899e-4c0f-940a-7d3ab1bfb93a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%2010.52.44%E2%80%AFAM.png?VersionId=PvN1JYxBgUpyCB7efKo52WGdSDs9nmim" /></p>

<p>Marrone will be the first project delivered as part of Dalcott's broader investment in the precinct.</p>

<p>It will be followed by La Terra, a boutique project comprising penthouse-style, single-level apartments on a northeast corner site with extensive resident amenity and city views.</p>

<p>Cottee said Marrone represented the first stage of the group's longer-term plans for the area.</p>

<p>Dalcott was established in 2025 by Lachlan Cottee and Ben Dalgliesh, combining development and construction capability under an integrated model and focusing on architecturally considered residential projects.</p>

<p>Marrone will initially be offered through a pre-release registration campaign ahead of its broader public launch.</p>


Dalcott targets owner-occupiers with South Brisbane debut Marrone

<p>Parnell Developments is the latest to seek significant uplift through the NSW Government's Housing Delivery Authority on a Strathfield site previously approved for a much smaller apartment development.</p>

<p>Parnell has sought approval for a 32-storey mixed use tower across&nbsp;<a href="https://www.apartments.com.au/new-apartments/7-lyons-street-strathfield-nsw-2135">3-7 Lyons Street and 18 Parnell Street</a>, a&nbsp;1,857 sqm site around 400 metres from Strathfield Station. The building would yield 160 apartments, 15 per cent of which will be dedicated affordable as per the government mandate for buildings seeking additional uplift.</p>

<p>Approved previously was a nine-storey building back in 2022 with just over 30 apartments. That approval came prior to the project being&nbsp;progressively reconsidered as planning policy shifted toward greater density around transport hubs.</p>

<p><img alt="Strathfield" data-entity-type="file" data-entity-uuid="c5af5281-a643-4eb2-b8c4-0081b59c04c7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%209.16.48%E2%80%AFAM.png?VersionId=37bd3mI7rHNpThOV_75VO8xsGFwWOi1u" /></p>

<p>Turner has designed the latest building that would replace&nbsp;existing detached homes across the four lots.</p>

<p>The apartment mix comprises 22 one-bedroom apartments, 107 two-bedroom and two-bedroom-plus configurations, and 31 apartments with three or more bedrooms. The scheme also includes 203 car spaces across six basement levels and 58 bicycle spaces.</p>

<p>The proposal has been designed around a three-storey podium addressing Lyons Street, with the tower rising above and stepping toward its upper levels.</p>

<p>Turner said the podium was deliberately scaled to respond to the existing street, while the taller element has been designed as part of the emerging skyline anticipated around Strathfield Town Centre and the wider Homebush transport-oriented development precinct.</p>

<p>The Lyons Street frontage would have a more active, pedestrian-focused character, incorporating the commercial tenancy, landscaping and a brick-framed podium with an awning.</p>

<p><img alt="Strathfield" data-entity-type="file" data-entity-uuid="14b20874-b8c3-4ac7-bc03-92be9a69fb78" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%209.17.48%E2%80%AFAM.png?VersionId=av.9TxtqIRTC6v3PkSuu1rL9rreWoe2h" /></p>

<p>Parnell Street, which faces the railway corridor, has been given a different architectural treatment, with double-height breeze blocks, landscaping and communal areas used to soften the interface with the rail infrastructure.</p>

<p>The tower itself uses curved and recessed facade elements, with wave-like indentations across the northern elevation breaking the building into three vertical forms.</p>

<p>A palette of grey concrete, brick and breeze blocks is complemented by clay and terracotta accents, while the upper tower adopts a lighter expression through articulated slab edges, vertical fins and recessed glazing.</p>

<p>Residents would have access to 467 sqm of communal open space spread across three levels. The ground floor would accommodate the more active resident areas, including barbecue and group gathering spaces and an internal communal room capable of being used for working from home.</p>

<p>A more passive viewing deck is proposed at level three, overlooking the ground-level landscaping and neighbouring tennis courts, while a rooftop "sunset deck" at level 30 would provide another social and relaxation space.</p>

<p><img alt="Parnell" data-entity-type="file" data-entity-uuid="c3dce401-a80f-4682-8471-4caa01180880" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%209.17.34%E2%80%AFAM.png?VersionId=Xyo8JVqbOhSJXNy6Ih.1cHL.O6i0bGR." /></p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>Strathfield has been earmarked for substantial change through the Strathfield Town Centre planning work and the nearby Homebush TOD precinct.</p>

<p>Turner's report says the project has been designed to act as a transition between the existing low and mid-rise development surrounding the site and the taller built form expected to emerge across the town centre.</p>

<p>The proposal is being assessed as State Significant Development under the HDA pathway, alongside the concurrent request to amend the Burwood Local Environmental Plan.</p>


First look: New apartment tower pitched for Strathfield Town Centre precinct

<p>An $18 million penthouse has hit the market in Main Beach as construction tops out on La Mer, the $155 million apartment development rising just metres from the beach.</p>

<p>Spanning around 600 sqm across the top two levels of the 29-storey tower on Main Beach Parade, the four-bedroom penthouse is one of the latest eight-figure residences to test the upper end of the Gold Coast apartment market.</p>

<p>Its launch comes amid continued activity at the very top of the market, following the $30 million off-the-plan sale of a Burleigh Heads penthouse earlier this year, which surpassed the Gold Coast's previous $24 million apartment record set in 2023.</p>

<p>The <a href="https://www.apartments.com.au/new-apartments/la-mer-main-beach-3580-main-beach-parade-main-beach-qld-4217">La Mer penthouse</a> has been designed as a private residence in the sky, with 360-degree views spanning the ocean, Broadwater, hinterland and Gold Coast skyline.</p>

<p>[smartcode_project:default project_id=95606 project_image_fid=378731]</p>

<p>All four bedrooms have ensuites, while the ocean-facing master retreat occupies around half of the upper level and includes its own lounge, private balcony, two walk-in wardrobes and an oversized ensuite with a freestanding stone bath positioned to take in the views.</p>

<p>The residence also features a kitchen designed to accommodate a private chef, a 3.6-metre island bench, expansive butler's pantry, wine cellar and integrated bar.</p>

<p>[smartcode_project:default project_id=95606 project_image_fid=378732]</p>

<p>A rooftop pool and substantial outdoor entertaining area with its own kitchen sit above the residence, while a grand staircase connects the two internal levels. The penthouse also has its own express lift.</p>

<p>OTP Group Director James Elliott, who is marketing La Mer, said the penthouse was expected to appeal to high-net-worth buyers seeking either a permanent Main Beach residence or Gold Coast holiday home.</p>

<p>“The La Mer penthouse represents exceptional value, considering its quality design, size, privacy and location, not to mention the 360-degree views capturing the beach and Gold Coast Broadwater,” Elliott said.</p>

<p>“We’re anticipating interest from high-net-worth individuals and couples seeking a residence or holiday home in the sought-after village enclave of Main Beach, taking advantage of the unprecedented growth underway in the area and neighbouring The Spit.”</p>

<p>[smartcode_project:default project_id=95606 project_image_fid=378736]</p>

<p>La Mer is being developed by developer-builder ODUS and Nazero, in partnership with funder Metrics Credit Partners.</p>

<p>ODUS Director Byron Sakha said topping out the tower had provided the opportunity to release the project's most significant residence.</p>

<p>“We’ve worked with internationally-recognised studio Sici Design on the penthouse interiors, with a focus on ensuring it isn’t luxury for luxury’s sake. Every element has been thoughtfully designed to enhance quality of life for those who call it home,” Sakha said.</p>

<p>“The views are the hero of virtually every space, but we’ve given equal attention to the fittings and finishes, so every detail exudes elegance and refinement.”</p>

<p>Sici Design Founder and Director Maria Papadopoulos said the extensive views became an integral part of the interior design rather than simply something the residence was designed around.</p>

<p>“The views weren't something we designed around, they became part of the design itself, with the true luxury of La Mer in its feeling of peace, calm and wellbeing,” Papadopoulos said.</p>

<p>“Luxury isn't defined by how something looks, but how it makes you feel, and we believe a luxurious home should be beautiful to live in, not stressful to maintain.”</p>

<p>The interiors combine Austral Dream Dolomite natural stone and travertine with timber flooring and a restrained coastal palette.</p>

<p>[smartcode_project:default project_id=95606 project_image_fid=378734]</p>

<p>Designed by Plus Studio, La Mer is one of the more boutique additions to the rapidly changing Main Beach apartment market.</p>

<p>The tower comprises just 24 full-floor, three-bedroom plus multipurpose room apartments below the two-level penthouse, giving the project a considerably lower density than many of the larger towers being developed across the Gold Coast.</p>

<p>Residents will have access to a pool and spa, gym, sauna, barbecue facilities, private sun lounges, yoga lawn and outdoor beach shower.</p>

<p>The penthouse has been released as part of the final collection of residences at La Mer, with remaining apartments priced from $4.3 million.</p>

<p>Construction is expected to complete later this year, with a fully furnished display apartment now open on level four.</p>

<p>[smartcode_project_cta:default project_id=95606]</p>


ODUS releases $18 million penthouse crowning La Mer Main Beach

<p><a href="https://www.apartments.com.au/developers/far-east-consortium">Far East Consortium</a> is preparing to commence construction on <a href="https://www.apartments.com.au/new-apartments/640-bourke-street-melbourne-640-bourke-street-melbourne-vic-3000">640 Bourke Street</a> this October, marking the next milestone for the Melbourne CBD development and its higher-end Eliza Collection.</p>

<p>Spanning levels 44 to 68 of the 68-storey <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>-designed tower, the Eliza Collection has been conceived as a lower-density offering within the broader development, with only five apartments on each floor, dedicated lift access and a collection of resident spaces reserved exclusively for Eliza Collection residents.</p>

<p>The Eliza Collection forms part of Far East Consortium's broader move toward larger-format residences at 640 Bourke Street, where the number of apartments was reduced from earlier plans as apartment sizes increased.</p>

<p>[smartcode_project:default project_id=509 project_image_fid=365685]</p>

<p>"What it's meant for 640 Bourke is we've actually reduced the number of apartments. We've increased the overall size of the apartments. We don't have any studios in here, and what that does for a project is it elevates it," Far East Consortium Director of Sales and Marketing Lauren Sheldon said.</p>

<p>Rothelowman Associate Jun Chang said the design process provided an opportunity to create more generous floorplans.</p>

<p>"We were given the opportunity to be more generous. The apartments became bigger and squarer than any other apartments which had been designed in the CBD before that."</p>

<p>[smartcode_project:default project_id=509 project_image_fid=368869]</p>

<p>That thinking carries through to the Eliza Collection, where the residences have been designed around the space and functionality associated with a larger home, but positioned high above the centre of Melbourne.</p>

<p>Kitchens are equipped with Gaggenau appliances, a butler's pantry, temperature-controlled wine cabinet and sculptural pendant lighting, while engineered timber flooring, stone and porcelain finishes and custom cabinetry feature throughout the broader interiors.</p>

<p>Privacy and security are another point of distinction. Eliza Collection residents have dedicated lift access, while 640 Bourke Street will provide concierge services and secure resident parking. Short-stay accommodation, including Airbnb, will not be permitted within the development.</p>

<p>[smartcode_project:default project_id=509 project_image_fid=365689]</p>

<p>Eliza Collection residents will also have exclusive access to selected amenity spaces across levels one and three of the restored Eliza Tinsley building. These include the Salon with grand piano, an art therapy room, private dining rooms and treatment rooms.</p>

<p>They sit within more than 3,000 sqm of amenity planned across 640 Bourke Street, alongside facilities including a pool, gym, whisky lounge and further social and wellness spaces.</p>

<p>The Eliza Tinsley building itself is central to the wider project's identity. Rather than treating the existing Eliza Tinsley façade as a separate element, Rothelowman used it as a starting point for the architecture of the new tower, with the historic building to accommodate the project's gallery and lobby.</p>

<p>"It's a significant asset and wants to be celebrated and experienced by all residents every single time they go in and out of the building," Rothelowman Principal Stuart Marsland said.</p>

<p>[smartcode_project:default project_id=509 project_image_fid=368872]</p>

<p>The tower will rise behind the retained heritage building at 640 Bourke Street, placing residents within walking distance of Southern Cross Station, Flagstaff Gardens, Queen Victoria Market and the Docklands waterfront.</p>

<p>With construction scheduled to begin in October, Far East Consortium has established an onsite display gallery at 640 Bourke Street, including fully built apartments that allow the project's layouts, materials and finishes to be inspected at full scale.</p>

<p>A fully built Eliza Collection apartment is also available to view at the display suite by appointment ahead of the planned October construction commencement.</p>

<p>Eligible purchasers who buy before construction commences can secure the full available off-the-plan stamp duty savings, subject to eligibility and applicable conditions.</p>

<p>[smartcode_project_cta:default project_id=509]</p>


Far East Consortium brings Eliza Collection to 640 Bourke Street ahead of October construction start

Dwelling Values

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<p><span>The 0.7% fall in Melbourne dwelling values over the three months to April 2018 was the greatest fall over a three month period since February 2012, CoreLogic has noted.</span></p>
<p><span> Over the 12 months to April 2018, Melbourne dwelling values increased by 3.7% which was the slowest rate of growth since March 2013. </span></p>
<p><span>With the recent declines, dwelling values in Melbourne are now 1.1% beneath their November 2017 peak. It deteriorated again in May, according to the latest data, with prices down 0.5% in May.</span></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/2018/5/24/melbourne%201.jpg" alt=""></p>
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<p>Looking at the quarterly value change across the 10 market segments shows values fell across the higher valued housing stock. </p>
<p>Each of the 7th to 10th deciles recorded a fall in dwelling values, with the declines becoming progressively greater. </p>
<p>The 6th decile recorded the largest quarterly increase, there was no change in values across the 5th decile and the four lowest value deciles continued to record modest growth.</p>
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<p>The 10th decile was the only market sector where values fell over the past year while only the 8th, 9th and 10th deciles recorded growth that was lower than the headline city-wide figure. </p>
<p>While the 2nd decile recorded the strongest annual growth at 12.0%, each of the 1st to 3rd deciles recorded double-digit capital gains over the past twelve months. </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/2018/5/24/melbourne%202.jpg" alt=""></p>
<p>The figures shows a significant difference in the housing market’s performance between the most affordable and most expensive housing stock.</p>
<p>Based on the annual change data, the market for housing valued in excess of $1.12 million has weakened over the year while housing stock valued below $600,000 has continued to achieve strong value growth. More recently, housing stock valued at over $800,000 has started to see value declines.</p>
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<p>We have a free e-book from Castran Gilbert on property investment in Melbourne.</p>
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j.ballantyne1990-6AQqhLzZaK

Melbourne's biggest value declines across the pricier property markets: CoreLogic Decile Report 

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<p><span>CoreLogic undertook analysis of the recent March 2018 quarter consumer price index (CPI) data which confirmed that in inflation adjusted terms, dwelling values are now lower in most capital cities.</span></p>
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<p><span>(Note: consumer price index (CPI), which measures inflation, increased by 0.4% over the March 2018 quarter to be 1.9% higher year-on-year. With the release of this data, it is also possible to look at inflation-adjusted or real changes in dwelling values across the capital cities. When looking at these figures, the inflation adjustment means that value growth is lower).</span></p>
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<p><span>The results showed that national dwelling values fell by -1.0% and </span>were -0.7% lower over the past 12 months, however, Hobart was the only capital city where real values increased over the quarter (+3.0%) with Sydney recording the largest quarterly fall (-2.2%).</p>
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<p><span>Over the past twelve months, only Melbourne (+3.4%), Hobart (+10.9%) and Canberra (+1.0%) have seen dwelling values outpace inflation. The largest decline over the year was recorded in Darwin (-9.3%) followed by Perth (-4.3%) and Sydney (-4.0%).</span></p>
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<p><span>Over the past decade, only Sydney (+43.3%) Melbourne (+38.7%) </span><span>and Hobart (+6.4%) have recorded ‘real’ growth in dwelling values.</span></p>
<p><a href="https://www.propertyobserver.com.au/images/2018/4/26/corelogic%20expert%20obs%201.jpg" target="_blank">Click here</a> to enlarge</p>
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<p><span>These latest figures really highlight just how </span><span>narrow value growth has been in the national housing market over the past decade. It also highlights that low mortgage rates alone have not been the key driver of value growth - mortgage rates are </span>the same in Sydney as they are in Perth yet the former has recorded real growth of 43.3% while the latter has seen values fall by -25.0%.</p>
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<p><span>With dwelling values dropping over recent months, all capital cities, except Hobart, now have real values which sit below their previous peak. Nationally, values are -2.0% lower than their June 2017 peak and across the combined capital cities values are a slightly greater -</span><span>2.5% lower. Let’s take a look at how dwelling</span><span>values have tracked in inflation adjusted terms across each capital city.</span></p>
<p><a href="https://www.propertyobserver.com.au/images/2018/4/26/corelogic%20expert%20obs%202.jpg" target="_blank">Click here</a> to enlarge</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/2018/4/26/corelogic%20expert%20obs%202.jpg" alt=""></p>
<p><span>Sydney </span><span>– </span><span>values are 5.3% lower than their June 2017 peak.</span></p>
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<p><span>Melbourne </span><span>– </span><span>after peaking in December 2017, values are currently -0.9% lower.</span></p>
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<p><span>Brisbane </span><span>– </span><span>values peaked back in March 2008 and are currently - 12.5% lower.</span></p>
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<p><span>Adelaide </span><span>– </span><span>values currently sit -7.4% below their June 2010 peak.</span></p>
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<p><span>Perth </span><span>– </span><span>the city has seen values fall by -28.5% from their peak in December 2006. dwelling </span><span>values.”</span></p>
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<p><span>Hobart </span><span>– </span><span>with values increasing a further 10.9% over the past year, it is the only city where real dwelling values are currently at their peak.</span></p>
<p><span>Darwin </span><span>– </span><span>real dwelling values peaked in March 2013 and have since fallen by -28.2%.</span></p>
<p><span>Canberra </span><span>– </span><span>dwelling values are -6.8% lower than their June 2010 peak.</span></p>
<p><span>Although the rate of inflation is quite slow and remains below the Reserve </span><span>Bank’s </span><span>target range of 2% to 3% annually, value growth is now broadly slower and is expected to remain that way over the coming quarters.</span></p>
<p><span>As </span><span>a result, when looking at inflation-adjusted dwelling values the expectation is that they will continue to fall over the coming quarters which means that as the cost of other items increase and inflation rises, relatively speaking, the cost of housing will reduce. </span><span>We’ve </span><span>seen this result occurring in most capital cities for a number of years but is a relatively recent development in Sydney and Melbourne.</span><span>”</span></p>
<p><span>The </span><span>flow-on effect of value falls remains to be seen, however, it may result in less expenditure elsewhere across the economy, particularly in Sydney and Melbourne which have had strong retail demand over recent years due to the wealth-effect of increasing dwelling values.</span><span>”</span></p>
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<p><span><em><span>CAMERON KUSHER</span> is head of research for CoreLogic. You can contact him <a href="https://blog.corelogic.com.au/about/"><span class="s2">here</span></a>.</em></span></p>
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ckusher-ujnxiKuFQs

Hobart the only capital city where real dwelling values sit at their peak

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<p>Since moving through a peak growth rate last November, capital gains across Australia’s housing market have been losing momentum, with national dwelling values unchanged during October 2017.</p>
<p>For October, conditions were flat across both the combined capital cities and the combined regional areas of Australia, however over the past twelve months growth in the capital cities (+7.0%) has outperformed the regional areas (+4.9%).</p>
<p>Click here <a href="https://www.propertyobserver.com.au/images/2017/11/1/INDEX1.jpg" target="_blank">to enlarge</a>.</p>
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<p><span>CoreLogic head of research Tim Lawless said t</span><span>he </span><span>slowdown in the pace of capital gains "can be attributed primarily to tighter credit policies which have fundamentally changed the landscape for borrowers.</span><span>” </span></p>
<p><span>“Lenders </span><span>have tightened their servicing tests and reduced their appetite for riskier loans, including those on higher loan to valuation ratios or higher loan to income multiples. Additionally, interest only borrowers and investors are facing premiums on their mortgage rates which are likely to act as a disincentive, especially for investors who are generally facing low rental yields on investment properties. </span></p>
<p><span>“In </span><span>fact, the peak rate of growth in dwelling values lines up closely with the peak growth rate for investment lending in late 2016. We saw the housing market respond in a similar fashion through 2015, and the first half of 2016 as investors faced tighter credit conditions following the announcement from APRA that lenders </span><span>couldn’t </span><span>surpass a 10% speed limit on investment lending.</span><span>” </span></p>
<p><span>“Of </span><span>course, housing market conditions rebounded swiftly through the second half of 2016 once the investment related credit limits were achieved and the cash rate was adjusted lower in May and August last </span><span>year” </span><span>Mr Lawless said. </span></p>
<p><strong>Sydney joins Perth and Darwin as the only cities to record a fall in dwelling values over the past three months </strong></p>
<p><span>While most of the broad regions are experiencing a slowdown in the rate of capital gains, only three capital cities have recorded a negative movement in values over the three months ending October: Sydney (-0.6%), Perth (-0.7%) and Darwin (-4.4%). Mr Lawless said, </span><span>“Seeing </span><span>Sydney listed alongside Perth and Darwin, where dwelling values have been falling since 2014, is a significant turn of events.</span><span>” </span></p>
<p><span>This is the first rolling quarterly fall recorded in Sydney dwelling values since May 2016, when the first round of macro-prudential changes were still working their way through credit policies, and mortgage rates were only just starting to reduce in line with the first cut to the cash rate. Despite the recent downshift in values, Sydney dwelling values are up 74% since the growth cycle commenced in early 2012. </span></p>
<p><strong>Melbourne conditions remain resilient relative to Sydney</strong></p>
<p><span>For </span><span>Melbourne’s </span><span>housing market, conditions have remained much stronger relative to Sydney; dwelling values were 0.5% higher over the month to be up 1.9% over the rolling quarter. Mr Lawless attributes this resilience to </span><span>Victoria’s </span><span>record breaking migration rate, which is creating unprecedented housing demand. Additionally, strong jobs growth and a healthier level of housing affordability relative to Sydney are also supporting continued growth in housing values in Melbourne. </span><span>“Despite </span><span>the stronger growth profile, Melbourne dwelling values are now rising at their slowest quarterly pace since mid-2016</span><span>,” </span><span>Mr Lawless said. </span></p>
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<p><strong>While market conditions in Sydney, and to a lesser extent, Melbourne, are easing, other markets are showing very different trends</strong></p>
<p>Hobart continued to be the strongest capital city, with dwelling values pushing 0.9% higher in October, to be up 12.7% over the past twelve months. Mr Lawless said, “Hobart is benefitting from renewed housing demand in the form of interstate migration, particularly Sydneysiders and Melbournites who appear to be utilising their enhanced wealth positions to buy very well in Hobart, where housing prices are substantially lower than those in Australia’s largest cities.”</p>
<p><strong>The trend in Brisbane and Adelaide has remained relatively subdued</strong><span>, with Adelaide dwelling values unchanged in October, while Brisbane values were only 0.2% higher. On an annual basis, dwelling values are only 2.7% higher across Brisbane and 4.6% higher in Adelaide. </span></p>
<p><span>The two toughest real estate markets, Perth and Darwin, are showing a further divergence in their performance</span><span>. Perth dwelling values moved sideways over the month, however the annual rate of decline has slowed from -4.9% in August last year to -2.5% over the twelve months ending October 2017. The trend in Darwin </span><span>hasn’t </span><span>been as encouraging, with values slipping -4.4% lower over the past three months to be down -5.3% over the past twelve months. The correction across </span><span>Darwin’s </span><span>housing market has now surpassed 20% since values peaked in May 2014. </span></p>
<p><span>Unit markets generally underperforming relative to houses, except in Sydney </span><span>The performance across product types is very different from city to city. Some cities, such as Brisbane, Adelaide, Darwin, Canberra and to a lesser extent Melbourne, are showing a substantial performance gap between houses and units. Mr Lawless said, </span><span>“The </span><span>under performance of the unit sector in these cities likely relates to higher supply levels relative to demand and less challenging affordability constraints which is supporting demand across the detached housing sector.</span><span>” </span></p>
<p><span>“The </span><span>Sydney unit market is slightly outperforming the detached housing sector, with an annual growth rate of 7.9% for units compared to a growth rate of 7.7% for houses. While Sydney is seeing a large number of new units added to the market, it seems that high levels of investment activity and strained affordability is helping to drive a better performance across this sector.</span><span>” </span></p>
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jonathanchancellor-7SQnKwU6yx

Sydney prices slip again with Hobart overtaking Melbourne as hottest capital: CoreLogic

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<p>Four times per year we get the unbridled pleasure of the official residential property price indexes.</p>
<div>Here, then, is a 60-second overview of the June 2017 quarter figures. </div>
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<div>The total value of Australia's dwelling stock rose by +$631 billion or +10.4 per cent to $6.72 trillion in the 2017 financial year. </div>
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<div>That now represents a +53 per cent increase in dwelling stock value from the $4.4 trillion recorded at the end of 2011. </div>
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<div>I'd take the data series back further, but since it only begins in Q3 of that calendar year, I can't.</div>
<p><a href="https://www.propertyobserver.com.au/images/2017/09/21/A1.jpg" target="_blank">Click to enlarge</a></p>
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<div>The annual stock value gains were mainly driven by the two most populous states. New South Wales (+$336 billion) and Victoria (+$215 billion) accounted for some 87 per cent of the total increase. </div>
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<div>Detached houses have outperformed attached dwellings on average since 2003, reflecting rising land values and a relative scarcity of this dwelling type in the thriving, landlocked suburbs of Sydney and Melbourne.</div>
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<div>Over the June 2017 quarter the attached dwellings index performed strongly, however, helped along by the +11.7 per cent year-on-year gain for attached dwellings in Sydney (with the harbour city retaining a healthy weighting for that dwelling type). </div>
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<div><strong><span style="text-decoration: underline;">City by city</span></strong></div>
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<div>There were strong quarterly residential price index gains in June 2017 for Sydney (+2.3 per cent) and Melbourne (+3 per cent), with those two capital cities recording a twin +13.8 per cent annual increase. </div>
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<div>The Reserve Bank of Australia noted in its September Board Minutes released today that Sydney market conditions had eased in recent months, as reflected in softer auction clearance results and various other timelier measures. </div>
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<div>Annual price growth in Hobart notched up a pacy +12.4 per cent - with more to come later in the year - while there was steadier price growth in Canberra, Adelaide, and Brisbane. </div>
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<div>Perth and Darwin recorded further declines, but the pace of decline has slowed, and more timely measures suggest that conditions appear to be levelling out somewhat in these resources capitals. </div>
<p><a href="https://www.propertyobserver.com.au/images/2017/09/21/Resi%20Price.jpg" target="_blank">Click to enlarge</a></p>
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<div>The mean dwelling price in Australia increased by $51,700 or +8.2 per cent in FY2017, to hit a record high of $679,100.</div>
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<div>In New South Wales, the mean dwelling price rose to $903,700, possibly helped along by the sale of Sydney's most expensive house in the second quarter of the calendar year (the 'Elaine' estate in Point Piper, which transacted for a lazy $75 million or so - punchy). </div>
<p><a href="https://www.propertyobserver.com.au/images/2017/09/21/A4.jpg" target="_blank">Click to enlarge</a></p>
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<div>Finally, the number of dwellings increased by +2 per cent or +190,500 over the financial year to 9,906,100.<br><br>That's now well ahead of the rate of the official population growth, as the supply response hits its straps. </div>
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<div>There was a substantial increase of +2.35 per cent in Queensland's dwelling stock in FY2017, or +45,500 additional dwellings, reflecting the high volume of apartment completions in inner city Brisbane and elsewhere. The state population probably gr<span>ew by <span>~</span>75,000 over th</span>e same period. </div>
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<div>In absolute terms there was a robust uplift in the total dwelling stock of New South Wales (+50,900) and Victoria (+53,500), although in Victoria's case even this record rate of new dwelling construction is not keeping up with rollicking population growth.</div>
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<div><strong><span style="text-decoration: underline;">The wrap</span></strong></div>
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<div>As always, the interesting stuff is in the detail, but the overview shows that Melbourne's housing market was still powering along in the second quarter of 2017, while Hobart will glide into top gear in the latter half of the calendar year. </div>
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<div>
<p class="p1"><span class="s1">PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank"><span class="s2">AllenWargent</span></a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank"><span class="s2">blogger</span></a>.</span></p>
<p class="p2"><span class="s3"><em>His latest book is </em><a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank"><span class="s2"><em>Four Green Houses and a Red Hotel</em></span></a><em>.</em></span></p>
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pwargent-M4siyDbqQY

Australia's mean dwelling price rises 8 percent to $679,100

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<p>Sydney housing market conditions have slid month on month and Hobart is now Australia's best performing capital city based on growth in dwelling values over the past twelve months according to CoreLogic.</p>
<p>Tim Lawless, CoreLogic head of research said national dwelling values remained flat during August, with capital city values edging 0.1% higher and regional dwelling values slipped 0.2% lower, adding this steady result provides further evidence that the housing market has moved through its peak growth phase. </p>
<p>“We’re seeing capital gains in markets like Sydney, which were previously very strong, now being weighed down by affordability constraints and tighter lending conditions," he said.</p>
<p>"The knock-on effect is a curb in investment credit growth and higher mortgage rates for investment and interest only mortgages.</p>
<p>“Looking at the past three months, it provides a clear indication of the trends, with national dwelling values rising by only half a percent over the three months to August 31 - the lowest rolling quarterly gain since June last year.</p>
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<p>"The national market moved through a peak rate of growth during the three months ended November 2016, when dwelling values were rising at the rolling quarterly pace of 3.7%. </p>
<p>"The slowdown in growth conditions is most visible in Sydney, where housing values had been growing strongly.</p>
<p>"Since values started rising in 2012, the typical Sydney dwelling has seen its value rise by 75%, equating to an approximate dollar value gain of $521,000 on the median dwelling valuation.</p>
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<p>"Sydney’s quarterly growth rate peaked over the three months ending October 2016 when dwelling values jumped by 6.3%. Since that time, the rolling quarterly rate of appreciation in Sydney dwelling values has consistently eased, reaching the current rate of just 0.3%.</p>
<p>"In Melbourne, the housing market has been more resilient to a slowdown.</p>
<p>"This is evident in the hedonic index results as well as auction clearance rates, which have consistently been above 70%. Inventory levels also remain exceptionally tight across the Melbourne market. </p>
<p>"Melbourne’s quarterly rate of growth has slowed since peaking at 4.4% in November last year, however the most recent three month period has seen dwelling values rise by 1.9%, less than half the peak rate of growth but substantially higher than Sydney’s pace of capital gains.</p>
<p>"While the trend in capital gains has eased across the largest capital cities, in Hobart the market has gathered some momentum; the annual pace of capital gains, at 13.6%, is now the highest of any capital city. According to Mr Lawless, the annual growth rate for Hobart hasn’t been this high since 2004. </p>
<p>“The sheer affordability of housing is likely one of the key drivers for Hobart’s values appreciation.”</p>
<p>"With a median house value of just $403,174, Hobart houses are approximately half the value of Melbourne and almost two thirds lower than Sydney house values.</p>
<p>"In addition to the strong capital gains, Hobart rental rates have also risen, providing a solid rental yield and pushing the total return well beyond the other capital cities. </p>
<p>"The CoreLogic accumulation index, which measures the combined return of capital growth and gross rental yields, is showing a total annual return of 19.5% across Hobart which represents an attractive investment opportunity for savvy buyers.</p>
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<p><img src="https://www.urban.com.au/images/2017/09/01/Screen%20Shot%202017-09-01%20at%2011.15.41%20AM.png" alt=""></p>
<p>"In Perth and Darwin, housing values have continued to trend lower over the past month and rolling quarter. However, the annual trend highlights the rate of decline has been easing.</p>
<p>"Since peaking in 2014, Perth dwelling values have declined by a total of 10.8%, while the cumulative decline across Darwin has been more severe with values down 18.6% from the market peak.</p>
<p>“The silver lining around the decline in values is a substantial improvement in affordability.</p>
<p>"Based on a dwelling price to income ratio, Darwin is Australia’s most affordable capital city with a ratio of 4.4. This means dwelling prices are typically 4.4 times higher than gross household incomes across the city.”</p>
<p>"Rental yields slipped to a new record low across Australia in August.</p>
<p>"Nationally, the gross yield on a dwelling reduced to 3.62% in August, down from 3.87% in August last year. “Record low yields are largely a capital city phenomenon, with yields across the combined regional areas of the country tracking 165 basis points higher than the combined capital city yield..</p>
<p>"While there was a reduction in gross rental yields across each of the capital cities over the past twelve months, only Melbourne (2.9%) and Sydney (3.0%) are recording rental yields at record lows.</p>
<p>"To provide some context about why yields are so low in these cities, dwelling values in both cities are up approximately 13% over the past twelve months while rents only increased by 4.7% across Melbourne and 4.0% across Sydney.</p>
<p>“The imbalance between rental growth and value growth has been a constant feature of the housing market over the growth cycle to date, however with the pace of capital gains easing at the same time that rents trend higher, the Sydney and Melbourne markets could be approaching the bottom of their yield cycle.”</p>
<p>“Slower growth conditions in Sydney, and to a lesser extent Melbourne, are likely to be a welcome evolution in housing market conditions by policy makers such as the RBA. So far the trend has been gradual, implying that macroprudential policies are having a flow through effect on housing conditions.</p>
<p>“The growth cycle in both cities has run for five and a half years, providing a substantial wealth boost for home owners but also creating much frustration for those who don’t own a home. Sydney and Melbourne dwelling values have increased by 75% and 56% respectively since the growth cycle commenced in early 2012, however growth rates have been far more moderate across the other capital cities.”</p>
<p>“The policy settings around investment credit growth and new interest only settlement targets have seen credit policies tighten and pushed mortgage rates higher for both investor and interest only loans. These disincentives are likely to continue to weigh down investment demand which will have a more pronounced effect in those markets where investors are most concentrated,” Mr Lawless said.</p>
<p>“Clearly, tighter credit policies and higher mortgage rates for investors are dampening the Sydney market more than others.</p>
<p>"Another contributing factor to slower home value appreciation is the high price of housing relative to incomes, particularly in Sydney.</p>
<p>“The recent availability of stamp duty concessions in New South Wales and Victoria is likely to provide some support for first time buyers, however it’s not likely that that a rise in first home buyer activity will completely offset the demand gap left by fewer investors.</p>
<p>“Overall, the outlook for Australia’s housing market depends on a broad range of factors including local economic and demographic conditions as well as supply factors and credit polices. However, if the current trends continue, Sydney dwelling values could start to drift lower over coming months.</p>
<p>“If the current trends continue, by the end of the year we could see dwelling values across Australia’s two largest housing markets, Sydney and Melbourne, trend lower as they move through their cyclical peaks.</p>
<p>“Historically, a negative shift in home values has followed every growth phase, so it’s reasonable to expect a period of moderate value falls following such a sustained period of strong capital gains.”</p>
<p>"With the Spring selling season about to commence it will be interesting to monitor the impact of higher inventory levels on the Sydney and Melbourne market.</p>
<p>"Particularly so given evidence of slowing growth conditions accompanied by stock levels already being higher than they were a year ago across both cities." </p>
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Sydney housing market conditions slide month on month: CoreLogic

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<p>GUEST OBSERVER</p>
<p>The cost of housing continued to rise across most parts of the country over the past 12 months.</p>
<p>Bracket creep should come as no surprise in markets like Sydney and Melbourne where dwelling values have increased by 77% and 61% respectively over the past five years.</p>
<p>While Sydney and Melbourne dominated as the two capitals with the highest proportion of sales at at least $1 million, most other capital cities and regional areas also enjoyed a proportional lift in home sales over the million dollar mark.</p>
<p>The CoreLogic analysis confirmed that over the 12 months to June 2017, 15.4% of all house sales and 8.8% of all unit sales nationally were at a price of at least $1 million. By comparison, 12 months earlier 14.4% of all house sales and 7.5% of all unit sales were at least $1 million in value.</p>
<p>The latest data shows that instances of dwellings selling for at least $1 million is much more prevalent across the combined capital cities. Over the 12 months to June 2017, 23.2% of all houses and 10.8% of all units sold in capital cities were sold for at least $1 million. The proportion of sales of at least $1 million has increased over the year from 21.5% of houses and 9.1% of units.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/08/10/Screen%20Shot%202017-08-10%20at%2011.38.10%20AM.png" target="_blank">Click to enlarge</a></p>
<p><img src="https://www.urban.com.au/images/2017/08/10/Screen%20Shot%202017-08-10%20at%2011.38.10%20AM.png" alt=""></p>
<p>While regional housing markets generally have lower housing costs than capital cities, the proportion of sales occurring for at least $1 million is also increasing in these areas. Across the combined regional areas the proportion of houses selling for at least $1 million has increased from 3.5% in June 2016 to 4.1% in June 2017. Meanwhile, the proportion of units selling for at least $1 million has increased to 3.5% of all sales in June 2017, up from 3.2% a year earlier.</p>
<p>Delving into the individual capital cities, and not surprising, Sydney and Melbourne have had substantially more properties sell for at least $1 million over the past year than any other capital cities.</p>
<p>Over the past year, 47.8% of all houses and 21.3% of all units sold in Sydney transacted for at least $1 million. By comparison, 10 years earlier just 13.8% of houses and 4.7% of units transacted from at least $1 million over the year.</p>
<p>In Melbourne, more than a quarter (25.9%) of house sales and 7.4% of unit sales were at least $1 million in value. By comparison, ten years earlier 5.8% of house sales and 2.7% of unit sales over the year were at least $1 million.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/08/10/Screen%20Shot%202017-08-10%20at%2011.39.09%20AM.png" target="_blank">Click to enlarge</a></p>
<p><img src="https://www.urban.com.au/images/2017/08/10/Screen%20Shot%202017-08-10%20at%2011.39.09%20AM.png" alt=""></p>
<p>In all of the other capital cities the proportion of houses selling for at least $1 million is higher than it was a decade ago. More than 10% of house sales over the past year in Perth and Canberra were at least $1 million in value. Perth is also the only city to have recorded a lower proportion of unit sales of at least $1 million over the 12 months to June 2017 compared to a decade earlier.</p>
<p>With dwelling values continuing to climb, we anticipate that in another 12 months we’ll see an even higher proportion of sales sitting at or above $1 million.</p>
<p>The flip-side to this is that the ongoing increase in the proportion of residential properties selling in excess of $1 million highlights the ongoing deterioration in the availability of housing affordability.</p>
<p>Although the Federal Government attempted to address housing affordability in the Budget this year, it is clear that in order to improve housing affordability there is much more work to be done on both supply and demand drivers of the market.</p>
<p><span>Cameron Kusher is research analyst for CoreLogic. You can contact him </span><a href="https://blog.corelogic.com.au/about/" target="_blank">here</a><span>.</span></p>
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Million dollar sales reach record levels: Cameron Kusher

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<p>GUEST OBSERVER</p>
<p>The housing market is gradually responding to higher mortgage rates, tighter credit policies and affordability challenges, with the quarterly trend in capital gains moderating relative to early 2017.</p>
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<p>The July 2017 CoreLogic Home Value Index results recorded a 1.5% rise in dwelling values across the combined capital cities for the month.  Most individual capital cities recorded a rise, however, a 3.1% gain in Melbourne was a significant driver for the strong monthly result across the combined capitals.</p>
<p>The latest housing market results highlight the diversity of housing market conditions, with dwelling values down over the month in Brisbane (-0.6%), Perth (-1.3%) and Darwin (-1.2%).</p>
<h3>Index results as at July 31, 2017</h3>
<p>Click to enlarge</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/2017/08/02/2017-08-01--indices.jpg" alt=""></p>
<p>The recent bounce in capital gains may be partially due to a recovery from the seasonal slump in values recorded in April and May. However, other factors, such as stamp duty concessions for first home buyers in New South Wales and Victoria, may also be having a positive impact on market demand.</p>
<p>It’s still too early to measure the effect of first home buyer incentives, which went live on July 1st. However historically, the first time buyer segment has been very responsive to stimulus measures.</p>
<p>Despite the higher month-on-month capital gains in June and July, the quarterly trend rate of growth has clearly reduced.  The rolling quarterly pace of capital gains across the combined capitals has fallen from 3.6% in February earlier this year to reach 2.2% at the end of July. </p>
<p>The slowdown in growth conditions is most evident across the hottest markets, with the quarterly growth trend reducing from 5.0% in Sydney earlier this year to 2.2% at the end of last month.  Melbourne growth conditions have also slowed, though to a lesser extent, with growth easing from a 2017 quarterly peak of 5.5% to 4.2%.</p>
<p>The divergence in growth rates between Sydney and Melbourne is also evident in auction clearance rates.  Sydney’s clearance rate has been below 70% for seven of the past eight weeks, while Melbourne auction clearance rates have consistently held around the mid 70% range. </p>
<p>Melbourne appears to be benefitting from consistently high population growth which is creating strong demand for housing, as well as consistently high jobs growth and more affordable housing options relative to Sydney.</p>
<p>At the other end of the growth spectrum, Perth and Darwin have continued to see dwelling values slip lower over the month, taking the cumulative decline to 10.2% in Perth and 14.5% in Darwin since both markets peaked in 2014.</p>
<p>The ease in the rate of decline has been most visible in Perth, providing a signal that the Western Australian capital may be approaching the bottom of the downturn; listing numbers have been falling across Perth which is a positive sign of improving conditions, and transaction numbers have found a new floor at around 2,500 sales per month.</p>
<p><span class="s1">TIM LAWLESS</span><span class="s2"><em> heads up the CoreLogic RP Data research and analytics team and can be contacted<a href="https://blog.corelogic.com.au/author/timlawless/" target="_blank"> here.</a></em></span></p>
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Housing market is gradually responding to higher mortgage rates

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<p><span>A 3.1 percent gain in Melbourne dwelling prices over the month drove combined capital figures in the July 2017 CoreLogic Home Value Index.</span></p>
<p><span>The July 2017 CoreLogic Home Value Index results recorded a 1.5 percent rise in dwelling values across the combined capital cities.</span></p>
<p><a href="https://www.propertyobserver.com.au/images/2017/08/01/Screen%20Shot%202017-08-01%20at%2011.25.19%20AM.png" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="https://www.urban.com.au/images/2017/08/01/Screen%20Shot%202017-08-01%20at%2011.25.19%20AM.png" alt=""></span></p>
<p><span>Tim Lawless, </span>CoreLogic head of research , the latest housing market results highlight the diversity of housing market conditions, with dwelling values down over the month in Brisbane (-0.6 percent), Perth (-1.3 percent) and Darwin (-1.2 percent).</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/08/01/Screen%20Shot%202017-08-01%20at%209.52.28%20AM.png" target="_blank">Click to enlarge</a></p>
<p><img src="https://www.urban.com.au/images/2017/08/01/Screen%20Shot%202017-08-01%20at%209.52.28%20AM.png" alt=""></p>
<p><span>“The </span><span>recent bounce in capital gains may be partially due to a recovery from the seasonal slump in values recorded in April and May," he said.</span></p>
<p><span>"However, other factors, such as stamp duty concessions for first home buyers in New South Wales and Victoria, may also be having a positive impact on market demand.</span><span><br></span></p>
<p><span>“It’s </span><span>still too early to measure the effect of first home buyer incentives, which went live on July 1st. However historically, the first time buyer segment has been very responsive to stimulus measures.</span><span>” </span></p>
<p><span>"Despite the higher month-on-month capital gains in June and July, the quarterly trend rate of growth has clearly reduced. </span></p>
<p><span>"The rolling quarterly pace of capital gains across the combined capitals has fallen from 3.6 percent in February earlier this year to reach 2.2 percent at the end of July. </span></p>
<p><span>"The slowdown in growth conditions is most evident across the hottest markets, with the quarterly growth trend reducing from 5.0 percent in Sydney earlier this year to 2.2 percent at the end of last month. </span></p>
<p><span>"Melbourne growth conditions have also slowed, though to a lesser extent, with growth easing from a 2017 quarterly peak of 5.5 percent to 4.2 percent. </span></p>
<p>“Melbourne appears to be benefitting from consistently high population growth which is creating strong demand for housing, as well as consistently high jobs growth and more affordable housing options relative to Sydney.”</p>
<p><span>"At the other end of the growth spectrum, Perth and Darwin have continued to see dwelling values slip lower over the month, taking the cumulative decline to 10.2 percent in Perth and 14.5 percent in Darwin since both markets peaked in 2014. </span></p>
<p><span>"The ease in the rate of decline has been most visible in Perth, providing a signal that the Western Australian capital may be approaching the bottom of the downturn; listing numbers have been falling across Perth which is a positive sign of improving conditions, and transaction numbers have found a new floor at around 2,500 sales per month."</span></p>
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Melbourne's stellar mid-year price growth leaves other capital cities behind: CoreLogic

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<p>The growth in home values has eased in the June 2017 quarter, according to CoreLogic’s latest report.</p>
<p>For more information see the video below:</p>
<p><iframe src="https://www.youtube.com/embed/puHG-9b6tuQ" frameborder="0" width="450" height="253"></iframe></p>
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Dwelling value growth softens in June 2017 quarter: CoreLogic's Tim Lawless

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<p>Captial gains momentum slowed over Q2 2017 with combined dwelling values rising by 0.8 percent over the June quarter according to CoreLogic.</p>
<p>The CoreLogic Hedonic Home Value figures for June show the slowest quarterly growth rate since dwelling values fell over December 2015 quarter.</p>
<p>Tim Lawless, CoreLogic head of research said the CoreLogic Home Value Index recorded a recovery from the 1.1 percent fall in May, with an 1.8 percent rise in capital city dwelling values over the month of June.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/07/03/Screen%20Shot%202017-07-03%20at%209.46.33%20AM.png" target="_blank">Click to enlarge</a></p>
<p><img src="https://www.urban.com.au/images/2017/07/03/Screen%20Shot%202017-07-03%20at%209.46.33%20AM.png" alt=""></p>
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<p>“This stronger month-on-month reading can be partially explained by the seasonality in the monthly growth rates," he said.</p>
<p>"Adjusting for this effect suggests an easing trend in housing value growth has persisted through the second quarter of 2017.</p>
<p>"The June quarter results showed that capital city dwelling values were 0.8% higher across the combined capitals index; the slowest quarterly rate of growth since December 2015 when the combined capitals index fell by 1.4 percent.</p>
<p>“This trend towards lower capital gains across the combined capitals index is mostly attributable to softer conditions across the Sydney housing market, where quarter-on-quarter growth was recorded at 0.8 percent over the June quarter; down from 5.0 percent over the March quarter. In contrast, the quarterly trend in Melbourne has been more resilient, with growth easing from 4.2 percent over the March quarter to 1.5 percent over the three months ending June.”</p>
<p>"For Sydney, the more pronounced slowdown is supported by weaker auction clearance rates which have been tracking in the high 60 percent range across the city over the last three weeks of June, while in Melbourne, clearance rates have moderated but remained above 70 percent.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/07/03/Screen%20Shot%202017-07-03%20at%209.48.06%20AM.png" target="_blank">Click to enlarge</a></p>
<p><img src="https://www.urban.com.au/images/2017/07/03/Screen%20Shot%202017-07-03%20at%209.48.06%20AM.png" alt=""></p>
<p>“Both markets experienced auction clearance rates consistently in the high 70 percent to low 80 percent range over the March quarter."</p>
<p>Across the combined capitals, the annual pace of capital gains eased from 12.9 percent three months ago to 9.6 percent for June 2017. Sydney’s annual growth rate has slowed to 12.2 percent over the twelve months ending June 2017, down from a recent high of 18.9 percent three months ago. Melbourne’s annual growth rate is now the highest of any capital city at 13.7 percent over the twelve months ending June 2017.</p>
<p>Lawless said the change in rental growth conditions is most noticeable in Canberra and Hobart, where rents are respectively increasing at 8.4 percent and 6.2 percent per annum, however Sydney and Melbourne rental markets have also seen a turnaround in what was previously a sluggish rental market.</p>
<p>"Rents in both cities are 4.5 percent and 4.1 percent higher over the past twelve months.</p>
<p>"The growth in rents can be attributed to the ongoing significant rate of net migration into New South Wales and Victoria.</p>
<p>“While the rental growth turnaround will be welcomed by landlords looking to recover higher mortgage costs, the consequence is that renters are now facing renewed pressure as rents rise.</p>
<p>"In Perth and Darwin, rental conditions remain subdued, falling by 8.3 percent and 5.4 percent respectively over the year, while Brisbane rents slipped 0.2 percent lower and Adelaide rents held reasonably firm, up 1.1 percent. </p>
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<p><a href="https://www.propertyobserver.com.au/images/2017/07/03/Screen%20Shot%202017-07-03%20at%209.49.27%20AM.png" target="_blank">Click to enlarge</a></p>
<p><img src="https://www.urban.com.au/images/2017/07/03/Screen%20Shot%202017-07-03%20at%209.49.27%20AM.png" alt=""></p>
“It’s likely that landlords will be seeking to recover some, or all, of their increased financing costs associated with higher interest rates on investment in interest only loans by progressively increasing weekly rents. With record-low wages growth and so much new housing supply coming to market, this remains to be seen.
<p>“Although growth conditions have lost momentum across the largest housing markets, we are yet to see any signs of a material downturn.</p>
<p>"The key drivers for a slowdown have been gradual. They include: mortgage rates pushing higher despite a steady cash rate, lender credit policies tightening up and housing affordability - which remains a significant barrier for many prospective buyers. Additionally, higher supply levels in the unit market appear to be creating a drag on the performance of the unit sector in specific segments.</p>
<p>“The impact of macroprudential measures announced by APRA at the end of March are still flowing through to mortgage rates and credit policies. We are likely to see further tightening and repricing around investment lending and interest only lending over the coming months.</p>
<p>“Considering investors comprised just over 55 percent of new mortgage demand across New South Wales, based on the latest housing finance data from the Australian Bureau of Statistics, a further slowdown in investment activity is likely to have a more substantial impact on housing demand in Sydney relative to other markets.</p>
<p>“There is a possibility some of the slack created by less investment in the Sydney housing market could be taken up by first home buyers taking advantage of stamp duty concessions that go live on July 1, however if this is the case, it’s likely to be temporary as higher first-time buyer demand could simply push prices outside the range applicable to the concession.”</p>
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