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

Joel Robinson

From ONE to ERA: Why buyers are choosing GWH again in Newcastle West

Virgate Property Group is preparing to commence construction of Verdé, its new apartment development in Melbourne's Arts Precinct at Southbank, following a strong run of sales that has seen more than half of the project's 173 apartments secured.

Verdé has attracted a broad mix of first home buyers, owner-occupiers upgrading from nearby inner-city suburbs and investors, with younger owner-occupier couples aged between 28 and 45 accounting for the strongest enquiry. Many are already living in Southbank, South Melbourne, Albert Park, Port Melbourne, South Yarra and the CBD.

"Verdé is located in one of the most desirable pockets of southern Melbourne," Blair Property Group Director Darren Blair, who is managing sales at Verdé, said.

"It's within walking distance of the Arts Centre, Royal Botanic Gardens, Albert Park Lake, and Southbank's restaurants and retail. It's a great lifestyle location with strong amenity and liveability, which made it a very attractive choice for the project."

[smartcode_project:default project_id=4661 project_image_fid=372549]

Virgate was already familiar with the precinct, having previously delivered the successful Domain House development in neighbouring South Melbourne. That experience gave the developer confidence to acquire the Coventry Street site and continue expanding its presence in Melbourne's inner south.

"We had been keeping an eye on the site and the broader precinct for a few months before deciding to move forward with the acquisition," Virgate said.

The project was ultimately secured in 2020 following feasibility studies, planning assessments and due diligence, with the brief centred on delivering "a high-quality, considered design that feels both refined and fit for purpose."

[smartcode_project:default project_id=4661 project_image_fid=314259]

Designed by <a href="https://www.apartments.com.au/architects/bruce-henderson-architects">Bruce Henderson Architects</a>, Verdé comprises 173 one, two and three-bedroom apartments priced from $599,000. The architecture is distinguished by a faceted glass façade that responds to both the site's outlook and Melbourne's changing light conditions.

According to Bruce Henderson Architects, the coloured glazing gives the building a distinctive identity while also providing privacy and solar shading, with residences oriented to capture views across the bay, city skyline and surrounding parklands.

Inside, <a href="https://www.apartments.com.au/interior-designers/designoffice">DesignOffice</a> has created interiors focused on natural light, efficient planning and enduring materials. Apartments feature engineered oak flooring, natural stone benchtops, floor-to-ceiling glazing and SMEG appliances, while a restrained material palette aims to complement the expansive outlooks rather than compete with them.

[smartcode_project:default project_id=4661 project_image_fid=372550]

Resident amenity has also been designed around everyday functionality rather than occasional use. Facilities include a concierge-serviced lobby, residents' lounge with fireplace, library and co-working space, gym, terrace garden with barbecue facilities, ground-floor café, and package delivery management.

The project's location continues to be one of its strongest drawcards. Positioned on Coventry Street, Verdé sits within walking distance of the National Gallery of Victoria, Arts Centre Melbourne, Royal Botanic Gardens and Albert Park Lake, while Southbank's dining precinct, Sturt Street trams and the new ANZAC Station are all nearby. The surrounding education catchment also includes Melbourne Grammar, Melbourne Girls Grammar, Mac.Robertson Girls' High School and several major university campuses.

The sales team says buyers have responded particularly well to the combination of location, design quality and long-term liveability.

"They're responding really positively to the quality of the design, premium resident amenities and the uninterrupted views. Many also appreciate the location and how connected it is to everything they need."

The ability to secure stamp duty savings before completion has also been a key factor for purchasers, alongside the opportunity to personalise finishes ahead of settlement.

With construction set to commence soon and more than half the apartments already sold, Verdé enters its next phase as one of the Arts Precinct's more established apartment developments, offering remaining buyers an opportunity to secure a residence before construction advances further. Expected completion is scheduled for late 2027.

[smartcode_project_cta:default project_id=4661]

Virgate's Verdé Southbank moves toward construction as sales fly past halfway stage

Downsizer-focused apartment development Kooyongkoot in Hawthorn has been recognised at the 2026 Better Future Melbourne Design Awards, taking home Gold and Silver awards in two categories.

<a href="https://www.apartments.com.au/new-apartments/kooyongkoot-hawthorn-1-kooyongkoot-road-hawthorn-vic-3122">Kooyongkoot</a>, currently being delivered by developer PQD and designed by Cera Stribley, received Gold in the Interior Design – Proposed category and Silver in the Architecture – Proposed category.

The dual recognition reflects the design approach behind the boutique development on prestigious Kooyongkoot Road, where the focus has been on creating homes for downsizers seeking the space, quality and functionality of a detached house within a low-rise apartment building.

Rather than maximising apartment numbers, <a href="https://www.apartments.com.au/developers/pqd">PQD</a> and <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a> limited the development to just 18 residences, allowing for larger floorplans, greater privacy, generous landscaping and expansive communal spaces.&nbsp;The majority of the apartments also benefit from corner aspects, allowing for dual sources of natural light.

Now around 70 per cent complete and on track for completion in November 2026, Kooyongkoot will comprise a mix of garden residences, ter​race apartments, sub-penthouses, and is crowned by two half-floor penthouses with direct lift access and private rooftop terraces.

[smartcode_project:default project_id=102717 project_image_fid=355297]

The Silver Award for Architecture recognised the way the building responds to its prominent corner position at the ent​rance to Hawthorn's Scotch Hill precinct, one of Melbourne's most established residential neighbourhoods.

Rather than competing with the grand homes that line Kooyongkoot Road, the architectural approach focused on restraint and longevity, using curved brickwork, generous landscaping and carefully considered proportions to integrate with the existing streetscape.

"The form feels fluid and timeless, as though shaped by the landscape itself – architecture that belongs, rather than competes," said Chris Stribley, Co-Founder and Managing Principal of Cera Stribley.

The judging submission also highlighted practical innovations throughout the building, including lift cores servicing only nine homes each, a central landscaped lightcourt designed to bring daylight and ventilation into the building, and fully enclosed private storage rooms with lighting, power and shelving to better accommodate residents transitioning from larger family homes.

[smartcode_project:default project_id=102717 project_image_fid=355293]

The Gold Award for Interior Design recognised the project's focus on long-term liveability rather than display-home aesthetics.

According to the awards submission, the interiors were designed from the inside out, prioritising how homes would function over decades of daily use through generous proportions, practical storage, durable natural materials and flexible layouts.

The specification includes natural stone throughout, upgraded acoustic glazing, V-ZUG appliances and fully enclosed storage rooms, alongside an amenity offering focused on wellness, entertainment and everyday convenience.&nbsp;

Residents will have access to a gym and yoga studio, a wellness centre featuring traditional and infrared saunas, a cold therapy shower and treatment room, as well as a residents' lounge and golf simulator/cinema room for entertainment.&nbsp;Kooyongkoot has also considered the everyday convenience of its residents by offering a private carwash and pet wash facilities on site as well as dedicated parcel lockers and oversized fully enclosed storage rooms.&nbsp;

[smartcode_project:default project_id=102717 project_image_fid=355303]

The project's attention to detail has already resonated with buyers. Earlier this year, Kooyongkoot recorded one of Boroondara's highest apartment sales when an $8 million penthouse was purchased by a Melbourne CEO downsizing from a nearby family home.

"Every detail feels deliberate, from the overall design down to the smallest touches," the purchaser said.

"The level of quality and refinement is exceptional, but what really sold it was how liveable it felt... It felt like a place where everything had been considered, not just a luxury building."

[smartcode_project:default project_id=102717 project_image_fid=355304]

Sustainability also formed a key part of both award submissions. Kooyongkoot is targeting a minimum 7.5-star NatHERS rating across all residences, supported by passive design principles, high-performance glazing, EV charging infrastructure, water reuse systems and a wellness model focused on lower-energy dry facilities rather than pools and large wet areas.

Located within walking distance of Scotch College, Methodist Ladies' College, Koo​yong Lawn Tennis Club, Aubur​n Village and Camberwell Junction, Kooyongkoot continues to target owner-occupiers looking to remain in Melbourne's inner east without compromising on space or quality. A limited selection of two, three and four-bedroom residences remains available, with prices starting from $1.9 million.

[smartcode_project_cta:default project_id=102717]

Kooyongkoot wins Gold and Silver at Better Future Melbourne Design Awards

New apartment supply has become increasingly constrained across <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a> in recent years, with fewer projects progressing through to completion as development conditions have become more challenging.

It makes <a href="https://www.apartments.com.au/developers/novm">NOVM</a>'s 2021-completed <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> one of the most recently completed residential towers on the Parramatta River, and among the newest apartment developments in Sydney's second CBD.

With the project largely completed before the sharp escalation in construction costs and inflation following the pandemic, The Lennox is now offering pricing that would be difficult to replicate in a comparable new development in Parramatta today, or across much of Western Sydney.

The majority of the 413 apartments at The Lennox sold before and shortly after completion. A limited release of the remaining apartments has recently been brought to market by capital partner <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a>, with entry-level pricing from $700,000 and two-bedroom apartments available from under $1 million.

Rising above the Parramatta River at 12 Phillip Street, The Lennox comprises one, two, three and four-bedroom apartments, appealing to first home buyers, young professionals, families, downsizers and interstate investors seeking a completed apartment in one of Australia's fastest-growing economic centres.

[smartcode_project:default project_id=5743 project_image_fid=372394]

Rather than positioning Parramatta as an alternative to Sydney's CBD, Equitifund believes the city has reached a point where it stands on its own merits.

"Parramatta is no longer simply an alternative to Sydney CBD, it's becoming a destination in its own right," Equitifund Executive Chairman Greg Huxley said.

"The Lennox captures that evolution with a level of quality and amenity that's difficult to match at its price point."

[smartcode_project:default project_id=5743 project_image_fid=953]

Designed by <a href="https://www.apartments.com.au/architects/marchese-partners">Marchese Partners</a>, the tower responds directly to its riverfront setting through expansive glazing and open-plan layouts that maximise views across the Parramatta River and city skyline. Interiors feature engineered timber flooring, stone benchtops, stainless steel appliances and floor-to-ceiling glazing, while generous balconies extend the living spaces outdoors.

Marchese Partners says the project was conceived to balance high-quality apartment living with practical, long-term functionality, pairing larger, efficient floorplans with amenities more commonly associated with five-star hotels.

That emphasis continues through the resident facilities, which include a 20-metre rooftop swimming pool, fully equipped gym and wellness spaces, full-time concierge, a residents' lounge, function room, private lifts, secure basement parking and rooftop communal areas overlooking the Parramatta River. Ground-floor boardwalk retail and dining further activate the riverfront and integrate the building into the surrounding public realm.

[smartcode_project:default project_id=5743 project_image_fid=925]

Australian housing and finance group Equitifund has secured the remaining apartments, believing there are few completed apartment opportunities in Parramatta that offer the same combination of location, amenity and pricing.

Equitifund National Sales Director Ben Hamblett says buyers are increasingly recognising that premium apartment living no longer needs to come with Sydney CBD pricing.

"The Lennox is where aspirational living becomes attainable," Hamblett said.

"Wake to river and mountain views, step into Sydney's Second CBD, and arrive home to resort-calibre amenities, all without the harbour price tag."

Hamblett says owner-occupiers are also attracted by the convenience of having Westfield Parramatta, Church Street's dining precinct, Parramatta Park, Riverside Theatres, Western Sydney University and major transport connections all within walking distance.

"At The Lennox, lifestyle is not an afterthought, it is the foundation."

[smartcode_project:default project_id=5743 project_image_fid=5374]

The Lennox places residents within walking distance of Parramatta Square, Westfield Parramatta, Church Street Eat Street, Parramatta Station, the ferry wharf, Light Rail, the future Sydney Metro West, Parramatta Park and CommBank Stadium, reinforcing Parramatta's position as one of Australia's most connected metropolitan centres outside Sydney's CBD.

Equitifund says buyers visiting the display suite consistently comment on the quality of the finishes, generous floorplans, river and skyline views, and the walkability of the location. The project has attracted a broad mix of local professionals, upsizers, downsizers, buyers relocating from Sydney's inner suburbs and interstate investors seeking long-term growth opportunities.

That demand aligns with Parramatta's continued evolution as an economic powerhouse. Equitifund Research and Market Insights specialist John Bekiaris says sustained population growth, infrastructure investment and expanding employment opportunities continue to support long-term housing demand across the city.

"Parramatta has evolved from a satellite city into one of Australia's most important economic centres. Population growth, infrastructure investment and employment are all supporting sustained long-term housing demand."

[smartcode_project_cta:default project_id=5743]

The apartment price gap drawing Sydney buyers west

A luxury beachfront apartment at Rainbow Bay has more than doubled in value since it sold off the plan six years ago, setting a new local apartment record in the process.

The three-bedroom apartment in the Flow development on Petrie Street, the first of four new projects locally by Paul Gedoun's S&amp;S Projects, has sold for $7.4 million, after originally selling for $3.27 million when the project launched in 2020.

The seventh-floor apartment, comprising 187 sqm of internal living space and a 54 sqm balcony overlooking Froggies Beach and Snapper Rocks, was purchased by a local family.

The transaction was negotiated by Pezet Matheson director Kerry Pezet and equates to more than $30,000 per sqm.

Pezet said the sale reflected the limited opportunities to buy into the boutique beachfront development.

"The sale highlights the rarity of opportunities within the boutique beachfront development, where residences seldom become available," Pezet said.

"Flow is one of the Gold Coast's most tightly held buildings. Buyers from our database move quickly when residences become available, and achieving an off-market sale at $7.4 million demonstrates the depth of demand for property of this calibre."

<img alt="Flow" data-entity-type="file" data-entity-uuid="c585b206-2130-4eee-a50c-3f27c51a7c70" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-06%20at%208.33.25%E2%80%AFPM.png?VersionId=m3pHRDV62Y3fvN.XQuQHq.52ilTWpRLf" />

Flow was the first of four luxury apartment developments delivered by Paul Gedoun's S&amp;S Projects at Rainbow Bay and was completed in 2023.

Positioned on the beachfront overlooking Snapper Rocks, the residence includes three bedrooms, three bathrooms, a powder room and views stretching north along the coastline towards Surfers Paradise.

Pezet Matheson Residential principal Mitchell Lambert said buyers continued to prioritise quality beachfront apartments in tightly held locations.

"Flow Residences offers a rare combination of elevated beachfront positioning, architectural excellence, comprehensive resident amenity and premium finishes, which is exactly what discerning purchasers are seeking," Lambert said.

"The transaction further reinforces Rainbow Bay's reputation as one of Australia's premier coastal lifestyle destinations, where limited supply and growing demand continue to support strong market performance."

Pezet Matheson originally marketed and sold out Flow off the plan, making the latest transaction a return to one of the project's original buyers.

Paul Gedoun is selling his third project, <a href="https://www.apartments.com.au/new-apartments/radia-rainbow-bay-271-boundary-street-coolangatta-qld-4225">Radia Rainbow Bay</a>, after recently completing, and selling out, <a href="https://www.apartments.com.au/buildings/esprit-217-227-boundary-street-coolangatta-qld-4225">Esprit</a>. He has plans for a <a href="https://www.apartments.com.au/news/qld/first-look-s-s-projects-proposes-88-apartment-wellness-tower-at-coolangattas-boundary-street">fourth building</a>, 88 apartments on <a href="https://www.apartments.com.au/new-apartments/209-213-boundary-street-coolangatta-qld-4225">Boundary Street</a>.

Rainbow Bay apartment doubles in price since off the plan sale during pandemic

Dwelling Values

<html><body>
<div style="text-align: left;" align="center">
 
Residential property prices have had four consecutive quarters of growth according to the ABS who report property prices rose 2.2 percent in the March quarter. 
 
Price rose 3 percent in Sydney, 3.1 percent in Melbourne and fell 1 percent in Perth and Darwin 0.9 percent in Darwin.  Marcel van Kints, Program Manager for the ABS Prices Branch said while residential property prices rose in most capital cities this quarter, Sydney and Melbourne continue to drive the national result.
 
Yearly growth in residential property prices reached 10.2 percent in the March quarter 2017, according to the ABS. Sydney recorded the largest through the year growth of all capital cities at 14.4 percent and by Melbourne at 13.4 percent. The total value of Australia's 9.9 million residential dwellings increased $163.1 billion to $6.6 trillion. The mean price of dwellings in Australia is now $669,700. 
 
</div>
<a href="https://www.propertyobserver.com.au/images/2017/06/22/Screen%20Shot%202017-06-23%20at%209.53.58%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/06/22/Screen%20Shot%202017-06-23%20at%209.53.58%20AM.png" alt="">
</body></html>

jonathanchancellor-7SQnKwU6yx

March quarter rise for residential property prices: ABS

<html><body>
GUEST OBSERVER
In 1956, US geophysicist M. King Hubbert predicted that the rate of petroleum production for a given geographic area follows a hump-shaped curve, and that the world would reach “peak oil” production in 1970.
And, as the figure shows, Hubbert was pretty right about the peak part, not so much about the inevitable decline thereafter. But the reason “Hubbert Peak” is in the zeitgeist is because once something peaks there is a natural narrative about its secular decline thereafter.
<a href="https://www.propertyobserver.com.au/images/2017/06/01/file-20170601-25664-18glgj0.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/06/01/file-20170601-25664-18glgj0.png" alt="">
The Hubbert Peak. Red line = predicted Green line = actual. Wikipedia
Perhaps that’s why there has been so much focus this week on the possible peak of Sydney housing prices, and even Australian equities. The CoreLogic hedonic price index was down in May by 1.3% in Sydney and 1.7% in Melbourne.
This was met with some relatively measured responses like that of AMP economist Shane Oliver who tweeted: “May is weak seasonally so exaggerates but the boom is likely over…”  
That seems like an awful lot of faith to put in one datum point. But perhaps Oliver and others are right. And perhaps there is a very happy story where more supply is coming online while demand is being cooled by APRA’s crackdown on interest-only loans to investors.
Partially consistent with that happy scenario, the ABS reported that new housing approvals in April were up by 4.4% on a seasonally-adjusted basis, helping claw back some of the 10.3% decline (on revised figures) from the previous month.
On the demand side, however, figures released by the RBA on Wednesday showed investor credit up 0.6% on a seasonally-adjusted basis in April – a rate of growth unchanged from March. That put annual growth at 7.3%. If APRA’s measures have given investors pause then it doesn’t seem to have filtered through to the data yet.
Altair Asset Management chairman Philip Parker was worried not only about the housing market, but the ASX as well. In a remarkable decision, Altair announced that it “was to sell all the underlying shares in the Altair unit trusts and to then hand back the cash to those same managed fund investors”.
This sort of thing doesn’t happen every day – particularly by a fund manager with a 30-year track record. Or, as Parker put it: “Giving up management and performance fees and handing back cash from investments managed by us is a seminal decision, however preserving client’s [sic] assets is what all fund managers should put before their own interests.”
Parker expressed serious concerns about China, the US, and equity valuations in Australia. But his chief concern was property-driven household debt in Australia, saying: “When you speak to people candidly in the banks, they’ll tell you very specifically that they are extraordinarily worried about the over-leverage of the Australian population in general.” 
It’s not just Parker who is worried. Melbourne-based funds manager JCP Investment Partners recently warned that interest-only loans could be to Australia what sub-prime mortgages were to the US at the brink of the financial crisis. The RBA’s increasingly urgent observation that around one-third of mortgage holders don’t have a month’s payment buffer is certainly consistent with that.
The deeper worry is that the Australian banks have been lending – both on interest-only and amortising loans – far too much as a proportion of people’s incomes. I don’t know if Australian banks have been overlending, but here’s a little test. Suppose one puts the same post-tax income and expense variables into a big-4 bank calculator in Australia and a major national US bank. Which says you can borrow more, and by how much?
I did that exercise for a couple both earning A$80,000 pre-tax with two children, no other debts, a modest credit card limit, and reasonable expenses. I then did the same for the same income and expense profile in the US (but in US dollars with US tax rates). Banks taking equivalent risks should lend those hypothetical couples the same amount.
The US lender would allow maximum monthly repayments of $3,733. The Australian lender would allow $4,709. More than 26% more.
I don’t know if we have reached peak anything in Australia. But the real question is, if we have, what does the other side of the curve look like? The US petroleum data, or Hubbert’s scary curve?
Richard Holden is professor of Economics and PLuS Alliance Fellow, UNSW and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/richard-holden-118107" target="_blank">here</a>.
</body></html>

j.ballantyne1990-6AQqhLzZaK

Have we finally reached "peak" house prices? Richard Holden

<html><body>
Dwelling values across the combined capital cities fell 1.1 percent in May month on month on the back of declines in Sydney and Melbourne.
Releasing the CoreLogic May 2017 Home Value Index Results, Tim Lawless, CoreLogic head of research said values have fallen during May in four of the past five years.
Reading through the seasonality, he said, indicates that value growth in the market has lost momentum, particularly in Sydney and Melbourne where affordability constraints are more evident and investors have comprised a larger proportion of housing demand.
 “The past three months has seen capital city dwelling values rise by a modest 0.4 percent, with four of the eight capitals recording a fall. Over the past three months, Sydney dwelling values are unchanged while Melbourne values have increased by 0.7 percent,” he said.
“The trend in growth rates across the smaller capital cities was mixed with dwelling values across Brisbane and Adelaide continuing to inch higher while values in Perth and Darwin showed further easing over the most recent rolling quarter.
"A steep drop in the Hobart index has reversed the gains recorded over the previous quarter and the Canberra index was also -1.5 percent lower over the past three months.
“Adding to the complexity in reading the current market is the recent Australian Prudential Regulation Authority (APRA) announcements at the end of March for a new round of macroprudential measures aimed at slowing the pace of interest only lending.”
<a href="https://www.propertyobserver.com.au/images/2017/05/31/Screen%20Shot%202017-06-01%20at%209.40.26%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/05/31/Screen%20Shot%202017-06-01%20at%209.40.26%20AM.png" alt="">
He said another factor that is likely contributing to slower growth conditions is a dent in consumer confidence as consumer sentiment towards housing, as measured by Westpac and the Melbourne Institute, has shown a marked downturn in May.
“In particular, the Westpac ‘time to buy a dwelling index’, fell 6.5 percent over the month. According to Westpac, ‘consumer sentiment towards housing shows an increasingly negative view’.
"Other market indicators suggest a slower pace of growth such as a reduction in market activity, a moderating trend in auction clearance rates and rising advertised stock levels.
“It appears that housing activity has eased which is attributable to a range of factors including affordability constraints, tighter credit policies, rising mortgage rates and a downturn in consumer sentiment towards housing."
<a href="https://www.propertyobserver.com.au/images/2017/05/31/Screen%20Shot%202017-06-01%20at%209.42.55%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/05/31/Screen%20Shot%202017-06-01%20at%209.42.55%20AM.png" alt="">
According to the report the largest year-on-year falls have been in Melbourne (-12.4 percent), Brisbane (-11.1 percent) and Sydney (-4.3 percent) suggesting that housing demand has eased relative to a year ago across the three largest cities.
CoreLogic’s Mortgage Index was tracking 9.3 percent lower than at the same time last year over May.
The number of residential properties advertised for sale has started to edge higher across some cities, with Sydney in particular seeing a surge in newly advertised stock, up 15 percent compared with last year, while total advertised listings are now 6.3 percent higher than a year ago, according to Mr Lawless.
He said higher stock levels should provide prospective buyers with more choice and reduce some of the urgency that has been contributing to rapid selling times and price escalation. 
<a href="https://www.propertyobserver.com.au/images/2017/05/31/Screen%20Shot%202017-06-01%20at%209.49.37%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/05/31/Screen%20Shot%202017-06-01%20at%209.49.37%20AM.png" alt="">
"Based on the most recent data from the Australian Bureau of Statistics, investors comprised 48 percent of the value of new mortgage demand (excluding refinances) in March, well above the long term average, but the lowest proportion of mortgage demand since August last year," he said.
“Considering we are yet to see the full effect of the recent round of macroprudential measures flow through, there is a high possibility that investor activity, and consequently housing demand, will slow further during 2017.
“Investor demand will also be dampened due to higher mortgage rates and tighter credit policies as well as the added disincentive of low rental yields and reduced ability to claim depreciation and travel expenses.
“While we are expecting investment activity to slow, the fact is other asset classes aren’t likely to be as attractive as property to investors. Cash and bonds continue to provide low but safe returns and equities remain volatile. Considering the alternatives, we are likely to see property investment remain a popular option,” he said.
"Mortgage rates could edge higher over coming months as lenders accommodate recent macroprudential announcements within their credit policies.
"The funding levy announced in this year’s federal budget could also see higher mortgage rates as lenders potentially pass on some of the associated costs.
“The jury is still out on whether the housing market has peaked, however if it hasn’t, a peak could be just around the corner.
"Based on CoreLogic data, as well as other indicators, it’s fair to say that growth conditions appear to be slowing in Sydney and Melbourne while the performance across other capital city regions remains mixed.
"The housing market remains as diverse as ever and the flow of data over coming months will be critical to get a better understanding of the trends.” 
</body></html>

jchancellor-FAypfDUnLy

Melbourne housing market declined in May, and so did Sydney

<html><body>
The failure of regulators to halt recent east coast house price growth has led to the downgrade of the wider Australian banking sector.
The global ratings agency S&amp;P Global Ratings has downgrade the credit quality of 23 banks and lenders, including Australia's biggest regional bank.
It comes as it warns of a sharp correction scenario in property prices and bigger bank losses.
The Ratings agency base case for the housing market is an "orderly unwind" of house prices.
"We still maintain our base case expectation that the unwinding of these imbalances will be orderly and we think that will be either a slowdown growth rate of property prices or a very mild decline in property prices," S&amp;P advised.
"That is our base case."
The downgrades were triggered by S&amp;P's decision to increase Australia's "economic risk" score, from three to four on account of economic imbalances, specifically rising property prices and high household debt.
The big four banks were spared because of their implied "too big to fail" government guarantee status. 
S&amp;P Global Ratings director Sharad Jain said risks to the Australian economy had become even more pronounced since the ratings agency downgraded the Australian banking sector to negative watch back in October 2016 as house prices continued to move higher and higher.
"Growth in private sector debt was more or less in line with expectations since then while property prices accelerated in the two quarters," Mr Jain said.
Mr Jain said that until the imbalances had "substantially unwound" the banking sector remains exposed to an "elevated level of risk of a sharp correction for property prices".
"To reflect the increased risk, we have lowered our assessment of the standalone credit profiles [SACPs] of almost all financial institutions operating in Australia."
Mr Jain acknowledged that house price growth had begun to slow and that the macro-prudential interventions made by APRA were likely to have more impact in the months ahead and see the imbalances "move in the right direction".
Jain said that although he expected macro-prudential measures from the Australian Prudential Regulation Authority, such as caps on investor and interest only lending, to contribute to a further slowing of house price growth in Melbourne and Sydney, the impact of a correction on the banks "was no longer consistent with our previous assessment".
Among the bigger institutions to be hit by the downgrade are AMP Bank, Bank of Queensland and Bendigo and Adelaide Bank. AMP has been downgraded to A+ with a negative outlook to A with a stable outlook while Bank of Queensland and Bendigo and Adelaide Bank have both been downgraded from A- with a negative outlook to BBB+ with a stable outlook.
Among the others to be downgraded were Australian Central Credit Union, Auswide Bank, Community CPS Australia, Credit Union Australia, Defence Bank, Fisher &amp; Paykel Finance, G&amp;C Mutual Bank, Greater Bank, IMB, Liberty Financial, mecu, Members Equity Bank, MyState Bank, Newcastle Permanent, Police Bank, QPCU, Rural Bank, Teachers Mutual and Qudos Mutual (formerly Qantas Credit Union).
The downgrade brings S&amp;P's ratings in line with rival Moody's.
Meanwhile the Australian Financial Review says investors are surging into mortgage bonds in Australia.
New residential mortgage-backed securities issuance has more than doubled so far this year to $10.5 billion from $5.1 billion a year earlier, data compiled by Bloomberg show.
More than half of the issuance has been fuelled by non-bank lenders. 
</body></html>

Orderly correction in property prices forecast by S&P

<html><body><div class="cq-article-content-paras section">
Do house prices always double every decade? I ponder the well versed notion every time I compare the latest price with its earlier sale.
Sydney's most affordable weekend auction acquisition was a hefty $502,500 for a three bedroom house at Windsor, in the Hawkesbury district.
Having traded at $255,000 in 2008, its price had nearly doubled over its nine year ownership, so mark that result to yes they can.
It had traded at $257,000 in 2005, showing that prices can fall too, albeit not quite off a cliff.
And it was interesting that the cottage's price had exactly doubled in amazing quick time from $110,000 in 2000 to $220,000 in boom time 2003.
These differing price surges nicely illustrate recent CoreLogic research calculating the current boom was actually subdued compared to previous times.
Over the 10 years to January 2016, Sydney home values increased by a total 78 percent - somewhat short of the so-called benchmark doubling over the decade.  
Sitting smack on 100 percent, Melbourne was the only capital city housing market where home values doubled over the decade.
Looking at the 10 years to January 2006, Sydney home values more than doubled but the 138 per cent growth was the lowest performing capital as the 2004 price reversal hit hard.
Melbourne recorded home value growth at 167 per cent, with Perth out front with 175 percent growth in that decade.
There are lessons to be learnt from what’s happened to Perth where property valuer Gavin Heaney recently recalled boom time Western Australia thought it was "infallible."
“They say in the top end of Perth on a quiet day you can hear the property values falling,” a jocular Hegney was cited by www.news.com.au as saying last month.
Some years on after the end of the mining boom, Perth is still on its knees with financial counsellors in demand with people neck-deep in debt coming to them for advice. 
People who were earning high incomes during the mining boom are now struggling to get work and pay their mortgages.
With little wage growth and eratic economic uncertainty, it is likely that even for Sydney there are limits to what people can pay for housing.
It seems Sydney is starting to see common sense and wise economics as we move through the latter stages of the autumn auction market. 
Those many consecutive weekends of 80 percent clearance rates might be a thing of the past.
Meanwhile property investors who paid reckless prices will soon emerge as tax loss selling usually begins in May before the end of the financial year.
I will be watching for how deep they go as this is when investors crystallise capital losses.
The proportion of loss-making resales over the December 2016 quarter sat at 21 percent in Perth, while Sydney saw fewer than 2 percent resale losses.
This article first appeared in the Daily Telegraph. 
</div></body></html>

Tax loss time for property investors to test market 

<html><body>
Citi says its sees property prices falling by as much as 7 percent as the housing boom unwinds by 2018.
Lending curbs will hit and household debt will be lowered, according to Citi, with the hardest hit potentially being apartments in inner-city Brisbane and Melbourne.
The forecast from Citi came in a 47-page analysis addressing tighter lending standards, higher lending rates, reduced foreign investment and increased supply relative to demand.
Sentiment towards real estate compared with lowering debt had "soured" even before the latest efforts by the Australian Prudential Regulation Authority to rein in lending to investors, according to the Citi analysts.
"APRA's tightening measures probably contributed to the April prices result, but Easter and school holidays may also have contributed to the slowdown," the Citi analysts wrote.
"Given the stretched house price valuations in Sydney and Melbourne some correction would seem likely as supply continues to catch up to demand.
"The largest price falls would be higher rise, inner city apartments in Brisbane and Melbourne given their greater potential for oversupply.
"Either way, we aren't expecting large enough price falls to trigger a downturn in the economy, but the downside risks have risen as house prices and household debt have continued to increase briskly."
The Citi modelling advised if APRA succeeds "ultimately we see some mild deleveraging, there could be a partial correction in house prices during the course of the next two years.
"This would be the case even if population growth remained strong."
</body></html>

Inner Melbourne and Brisbane to be hardest hit as Citi sees property prices falling 7 percent

<html><body>
GUEST OBSERVER
The CoreLogic Home Value Index of capital city home prices rose by 0.1 percent in April and was up 11.2 percent over the year.
It was the smallest monthly lift in prices in 16 months. Prices rose in six of the eight capital cities. Regional house prices by 1.1 percent in March (latest available).
High end decline: Prices of homes in the upper quartile of properties by value fell by 0.4 percent in April – the biggest decline in 17 months.
Manufacturing: The Performance of Manufacturing index rose by 1.7 points to 59.2 in April – a reading just below 15-year highs. A reading above 50.0 indicates that the sector is expanding. This was the seventh consecutive month of expansion.
China data: The manufacturing purchasing managers’ index eased from 51.8 to 51.2 in April (forecast 51.6). The services index eased from 55.1 to 54.0. 
What does it all mean?
You can debate all you like about the accuracy of economic indicators. But it is hard to argue with surveys of businesses. The latest survey of manufacturers indicates that business conditions are around the strongest levels in 15 years. The NAB survey of a broader range of businesses suggest conditions are the best in at least 9 years. Overall, the economy is in good shape.
<a href="https://www.propertyobserver.com.au/images/2017/05/02/Screen%20Shot%202017-05-02%20at%207.58.58%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/05/02/Screen%20Shot%202017-05-02%20at%207.58.58%20AM.png" alt="">
Policymakers will be happy that home prices recorded more modest gains in April, especially the Sydney market. But there is more evidence that higher home prices in Sydney and Melbourne and spreading to other capital cities and regional centres. This was always on the cards with investors perceiving that Sydney and Melbourne markets had become more fully valued and shifting their attention to other markets. 
Annual growth in regional house prices is the strongest in 21⁄2 years with regional NSW leading the way. House prices in regional NSW are up 10.2 per cent on a year ago – the fastest growth in the eight years of records. And Hobart home prices are recording the strongest annual gains for over 12 years. 
What do the figures show?
Home prices
The CoreLogic Home Value Index of capital city home prices rose by 0.1 percent in April and was up 11.2 percent over the year. It was the smallest monthly lift in prices in 16 months.
In regional Australia, house prices rose by 1.1 percent in March and were 4.9 percent higher than a year ago. (Regional prices cover just houses and data is up to the end of March).
<a href="https://www.propertyobserver.com.au/images/2017/05/02/Screen%20Shot%202017-05-02%20at%208.02.30%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/05/02/Screen%20Shot%202017-05-02%20at%208.02.30%20AM.png" alt="">
In capital cities, house prices rose by 0.3 per cent in April while apartment prices fell by 1.2 per cent. House prices were up 11.9 per cent on a year ago and apartments were up by 6.2 per cent.
The average Australian capital city house price (median price based on settled sales over quarter) was $661,200 and the average unit price was $550,000.
Dwelling prices rose in six of the eight capital cities in April: Hobart (up 1.0 per cent), Adelaide (up 0.8 per cent), Brisbane (up 0.6 per cent), Melbourne and Darwin (both up 0.5 per cent). Sydney prices were flat while prices fell in Perth (down 1 per cent) and Canberra (down 2.8 per cent).
Home prices were higher than a year ago in six of the eight capital cities. Prices rose most in Sydney (up 16.0 per cent); followed by Melbourne (up 15.3 per cent), Hobart (up 13.6 per cent); Canberra (up 8.4 per cent); Adelaide (up 2.2 per cent); and Brisbane (up 2.1 per cent). Prices fell in Perth (down by 6.0 per cent) and Darwin (down 2.3 per cent)
Total returns on capital city dwellings rose by 14.9 percent in the year to April with houses up 15.5 per cent on a year earlier and units up 10.6 per cent.
Performance of Manufacturing
The Performance of Manufacturing index rose by 1.7 points to 59.2 in April. A reading above 50.0 indicates that the sector is expanding. This was the seventh consecutive month of expansion for the Australian PMI® and the strongest monthly result since February 2017 and before that, since May 2002.
AIG notes “All seven activity sub-indexes in the Australian PMI® expanded in April. New orders remained elevated (61.5 points) while sales surged higher (65.5 points), as did production (60.7 points), exports (58.6 points) and employment (55.9 points). Inventories eased to a more modest rate of expansion (51.2 points) in April.”
“Comments from manufacturers in April indicate demand continues to improve. Increasing exports are a key theme, with several manufacturers reporting success in new markets in Asia. Stronger output and prices in the local agricultural and mining sectors is supporting demand for some types of machinery, equipment and chemicals, while large public infrastructure projects are fuelling demand for building materials, metals, transport equipment and others. Cyclone Debbie appears to have dampening activity in Queensland and Northern NSW, although the direct impact on manufacturing has not been severe.”
What is the importance of the economic data?
The CoreLogic Hedonic Australian Home Value Index is based on Australia’s biggest property database. Unlike the ABS Index, which excludes terraces, semi-detached homes and apartments, the CoreLogic Hedonic Index includes all properties. Home prices are an important driver of wealth and spending. 
The Australian Industry Group compiles the Performance of Manufacturing Index (PMI) each month. The Australian PMI is the Australian equivalent of the US ISM manufacturing gauge. The PMI is one of the timeliest economic indicators released in Australia. The PMI is useful not just in showing how the manufacturing sector is performing but in providing some sense about where it is heading. The key ‘forward looking’ components are orders and employment.
<a href="https://www.propertyobserver.com.au/images/2017/05/02/Screen%20Shot%202017-05-02%20at%208.04.03%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/05/02/Screen%20Shot%202017-05-02%20at%208.04.03%20AM.png" alt="">
What are the implications for interest rates and investors?
The latest economic news is generally positive. Manufacturing is expanding solidly with exports leading the way. And home prices have flattened in the high-flying Sydney market. The thing to watch now is the extent to which high prices in the south-east spread across Australia.
The flattening out of home prices in Sydney and declines in apartment prices represent a wake-up call to investors. At present total returns on shares is out-performing returns on homes. The Reserve Bank has no need to lift or cut rates as yet. Rate hikes are still more likely to come in 2018 but the risk is that they arrive earlier rather than later. 
Craig James is the chief economist at <a href="https://www.comsec.com.au/default.aspx">CommSec</a>. 
</body></html>

cjames-5S2v74qSNK

Home prices flatten: Craig James

<html><body>
Dwelling value growth was flat in Sydney over April with Melbourne values up 0.5 percent over the month according to CoreLogic's Hedonic Home Value Index for April
Tim Lawless, head of CoreLogic research said the moderation in growth was due largely to a slightly negative April result in Australia’s largest capital city housing market, Sydney, where dwelling values were broadly flat (rounded up from - 0.04 percent) over the month. 
<div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
<a href="https://www.propertyobserver.com.au/images/2017/05/01/Screen%20Shot%202017-05-01%20at%2010.18.10%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/05/01/Screen%20Shot%202017-05-01%20at%2010.18.10%20AM.png" alt="">
"The result for Melbourne was also lower than previous months of 2017, with dwelling values up 0.5 percent over the month,” he said.
"Dwelling values increased by 0.1 percent across the combined capital cities in April, with housing market conditions slowing in both Sydney and Melbourne.
"The softer results across Australia’s two largest capital cities comes after dramatic capital gains were recorded over the second half of 2016 and the first three months of 2017.
"Between July 2016 and the end of March 2017, Sydney dwelling values surged 11.3 percent, whilst Melbourne values increased slightly more at 12.6 percent in the same period.
"The April results mark the weakest monthly change in dwelling values across the Sydney market since December 2015, when CoreLogic reported a 1.2 percent fall in Sydney dwelling values; the soft reading comes after dwelling values have risen by 75.1 percent over the past five years, an annual rate of growth of 15 percent over this period.
"Most other capital cities also recorded softer growth conditions in April than for the first three months of 2017.
The trends generally remain positive, with quarterly growth of 2.9 percent across the combined capitals index.
"Based on the rolling quarterly change in dwelling values, the strongest housing market is currently in Hobart, where home values have risen 5.1 percent over the past three months.
"Hobart’s housing market has staged a solid improvement over the past two years and is now the third best performing capital city on an annual basis, with dwelling values moving almost 14 percent higher over the past twelve months alone.
“We need to be cautious in calling a peak in the market after only one month of soft results.
“April, in particular, coincides with seasonal factors including Easter, school holidays and ANZAC day long weekend.
</div>
</div>
</div>
</div>
<div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
<a href="https://www.propertyobserver.com.au/images/2017/05/01/Screen%20Shot%202017-05-01%20at%2010.32.47%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/05/01/Screen%20Shot%202017-05-01%20at%2010.32.47%20AM.png" alt="">
"The softer results should also be viewed against a backdrop of an ever evolving regulatory landscape s which is firmly aimed at slowing investment and interest-only mortgage lending. Testament to this is mortgage rates which have been edging higher, particularly for investors and interest-only loans, as well as rental yields which have been hovering around record lows. The higher cost of debt, as well as stricter lending and servicing criteria, has likely dented investment demand over recent months.” 
“In a city like Sydney, where more than 50 percent of new mortgage demand has been from investors, a tighter lending environment for investment purposes has the potential to impact housing demand more than other cities."
</div>
</div>
</div>
</div>
 
</body></html>

Melbourne makes move on Sydney's top price growth mantle: CoreLogic

<html><body>
Between January 2000 and February 2007, capital city dwelling values increased by 98.2% compared to an increase of 44.9% over the period from January 2010 to February 2017, according to CoreLogic's latest Property Pulse.
The property data firm says that so far this decade, dwelling values growth is less than half that over the same period last decade.
While values consistently moved higher over the previous decade, there has been very little growth in values so far this decade.
<a href="https://www.propertyobserver.com.au/images/2017/03/30/Screen%20Shot%202017-03-30%20at%2011.15.43%20am.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/03/30/Screen%20Shot%202017-03-30%20at%2011.15.43%20am.jpg" alt="">
Sydney dwelling values increased by 61.1% compared to 78.3% over the same period this decade between January 2000 and February 2007.
Early in 2000, values rose rapidly before starting to fall in 2004.
By comparison, values fell early in this decade but have been trending higher since June 2012.
Sydney is the only capital city that has recorded a greater increase in values so far this decade compared to the previous decade.
<a href="https://www.propertyobserver.com.au/images/2017/03/30/Screen%20Shot%202017-03-30%20at%2011.22.36%20am.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/03/30/Screen%20Shot%202017-03-30%20at%2011.22.36%20am.jpg" alt="">
Melbourne dwelling values increased by 95.6% between January 2000 and February 2007 compared to an increase of 55.1% so far this decade.
Brisbane dwelling values increased by a mere 6.6% since January 2010 compared to an increase of 147.2% between January 2000 and February 2007.
Similar to Brisbane, growth in Adelaide dwelling values has been much softer this decade compared to last.
<a href="https://www.propertyobserver.com.au/images/2017/03/30/Screen%20Shot%202017-03-30%20at%2011.22.43%20am.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/03/30/Screen%20Shot%202017-03-30%20at%2011.22.43%20am.jpg" alt="">
Between January 2000 and February 2007, dwelling values rose 124.4% compared to an increase of 11.0% between January 2010 and February 2017.
Perth dwelling values declined by -3.3% between January 2010 and February 2017, by comparison they increased 199.4% between January 2000 and February 2007.
While values in Perth rose continuously throughout the first 86 months of last decade, they’ve declined since the end of 2014.
<a href="https://www.propertyobserver.com.au/images/2017/03/30/Screen%20Shot%202017-03-30%20at%2011.22.51%20am.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/03/30/Screen%20Shot%202017-03-30%20at%2011.22.51%20am.jpg" alt="">
Hobart dwelling values increased by 198.0% while over the same 86 months so far this decade, values are just 3.4% higher.
Growth in the Hobart housing market slowed shortly after February 2007 and has only recently started to show signs of a sustained recovery.
Darwin dwelling values increased by 97.3% between January 2000 and February 2007 compared to a fall of -5.0% between January 2010 and February 2017.
<a href="https://www.propertyobserver.com.au/images/2017/03/30/Screen%20Shot%202017-03-30%20at%2011.22.58%20am.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/03/30/Screen%20Shot%202017-03-30%20at%2011.22.58%20am.jpg" alt="">
So far this decade growth has been sluggish with values having fallen since the middle of 2014; by comparison values trended higher throughout the previous decade.
Canberra, dwelling values have increased by 23.8% between January 2010 and February 2017 compared to an increase of 133.4% between January 2000 and February 2007.
According to research analyst Cameron Kusher, Sydney and Melbourne were the only cities to record dwelling value increases of more than 25% since the beginning of 2010.
“As a comparison, the weakest growth in values between January 2000 and February 2017 was 61.1% in Sydney which is actually higher than the growth in all capital cities except for Sydney so far this decade,” he said.
“Our research reinforces concerns around over-valuations in the housing market, if any, are very much focused within Sydney and Melbourne.
“For the remaining capitals, the reality is that since the beginning of the decade there has been very little value growth.”
</body></html>

Dwelling value growth falls over decade: CoreLogic

<html><body>
A downturn in China would trigger a recession in Australia, modelling by consulting firm Deloitte Access Economics shows. 
House prices would fall by 9 percent, in the “China sneezes, Australia catches pneumonia” scenario.
Although the Reserve Bank would respond by cutting rates and, when rates reached zero, by pumping liquidity into the market, Deloitte warns that global financial markets may become more ­reluctant to finance Australia’s deficits and may push rates higher.
Deloitte partner Chris Richardson says that while a Chinese downturn is not his central forecast, its elevated debts and reliance on government stimulus spending to keep growth going means that it is a plausible risk, particularly given global tensions over trade.
“Compared with the global ­financial crisis, Australia’s vulnerabilities are higher, our defences are weaker, and this time around China would be a cause of the problem rather than a part of the solution,” Mr Richardson says, in an advance copy of a speech to be delivered to the National Press Club today, and reported by The Australian.
The Deloitte modelling is based on a scenario in which China’s growth rate slows from the 6.5 percent targeted this year to less than 3 percent.
Mr Richardson notes that ­Australia’s dependence on China is greater than with any other country.
Employment would contract by 500,000, with half those numbers formally joining the unemployed and the remainder exiting the labour force.
The construction industry would account for more than a third of the 500,000 jobs lost across the economy and would contract by 25 percent. 
Deloitte says a downturn in China is only one scenario, with it also being possible that China and Asia more generally may sustain the growth that has supported Australia’s extended run of growth since the 1990-91 recession.
Queensland would be among the hardest hit regions in Australia from a severe slowdown in China.
Deloitte says the slowdown in China’s economy since 2011 had already taken a toll, Deloitte Queensland managing partner John Greig said.
The scenario of China stumbling is one of the three potential scenarios detailed in major consultancy Deloitte’s latest “Building the Lucky Country” series report.
The report says that “none of these three scenarios is the ‘most likely’ outcome for Australia. But they’re all plausible”.
The report says that Australia’s gains from our relationship with China have been huge, but there is a flip side in that Australia has increased its dependence on China.
“Australia doesn’t have the defences we had back in 2008 and 2009 — we lack firepower in interest rates and the Budget,” report author Chris Richardson said.
</body></html>

Dwelling Values

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

Dwelling Values

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

Developments

New apartments

New townhouses

News