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

Joel Robinson

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

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

Sammut secures approval for debut Brisbane apartment development in Toowong

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

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

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

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

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

WM Residences fills gap in Mordialloc townhouse market

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The decline in dwelling approvals appears to be losing momentum, the HIA chief economist Tim Reardon advised after the latest Australian Bureau of Statistics release of its monthly building approvals data covering all states and territories.
Approvals in May 2019 were up by 0.7% from the previous month.
The improvement was led by multi-unit approvals (+2.1%) with detached house approvals down marginally (-0.2%), noted Reardon.
"Recent positive news relating to house prices and new home sales has started filtering through," he said.
"Even if this isn’t the bottom of the cycle the pick-up in new home sales in May suggests the pace of decline is slowing.
"We’re hopeful market confidence has improved following the Federal election and retention of current property taxation arrangements.
"Back-to-back interest rate cuts from the RBA and the pending reforms to APRA’s mortgage lending guidelines should act to minimise any further contraction in residential building."
Seasonally adjusted building approvals in May 2019 were up by 14.4% in Victoria and were flat in NSW.
Approvals declined in Tasmania (-1.2%), South Australia (-2.9%), Western Australia (-4.7%) and Queensland (-6.3%).
In trend terms, approvals in May lifted by 7.2% in the ACT and were down by 6.1% in the Northern Territory.
<a href="https://www.propertyobserver.com.au/images/2019/7/4/building%20approvals%20.jpg" target="_blank">Click here</a> to enlarge:
<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/2019/7/4/building%20approvals%20.jpg" alt="">
Source: HIA 
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Housing downturn loses momentum as good news rolls in: HIA 

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Simon Norris is the newly elected National President of the Housing Industry Association (HIA).
After serving as HIA’s National Vice President for the past two years, Simon Norris (pictured) has been elected as National President to replace outgoing National President, Pino Monaco.
“Simon’s involvement with the HIA has spanned over 20 years, in various roles including as Queensland Executive Committee member, Queensland Vice President and President, National Service Committee Chair and as National Director for the past eight years,” said HIA managing director, Graham Wolfe.
In his first formal address at HIA’s National Conference in Perth, Mr Norris praised former National President, Pino Monaco for his “commitment, energy and outstanding contribution to the National Board and to the HIA membership more generally”.
“I am delighted to say that Mr Monaco’s contribution to our great Association will continue through his position on HIA’s National Board as Immediate Past President,” said Mr Norris. 
“His knowledge and experience will serve the Board well as we approach the challenges and opportunities ahead.”
“The residential building industry generates over $130 billion dollars in economic activity, employs over one million workers and provides opportunities for rewarding, lifelong careers in an industry that boasts a ‘salt of the earth dna’. 
“The industry’s contribution is much greater if related activities such as landscaping, hard and soft furnishings, domestic appliances and home technologies are included.”
“HIA members include builders, developers, trade contractors, designers, building supervisors, manufacturers and suppliers, estimators, engineers, and many other professionals. 
“I look forward to working with HIA’s members to achieve improvements across key areas such as planning schemes, red tape, finance and housing affordability,” said Mr Norris.
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New HIA national president Simon Norris elected

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EXPERT OBSERVATION 
In the lead up to the NSW election the calls by politicians to stop funding Registered Training Organisations (RTO’s) are not only wrong, but will substantially harm the residential building industry in NSW substantially.
HIA is fully supportive of policies that encourage people to take up a skilled trade, as it is vital that Australia has steady supply of tradies people to build the homes of tomorrow and increase the supply of housing in NSW.
However, recent calls to stop all RTO’s from receiving government support will make the problem of skills shortages worse.
Private RTO’s, in particular industry association RTO’s like HIA, have a long and successful track record delivering training products that are designed specifically for industry.
This allows students the option of choosing training that is tailored to their experience and delivered with flexibility to align with their working hours, and provides the crucial element of on the ground training.
There is no doubt that some Private RTO’s have abused funding in the past, however The Australian Skills and Qualifications Authority (ASQA) has made a concerted effort to crack down on the ‘dodgy’ RTO’s in recent years.
If ASQA audits a Private RTO and is satisfied they meet the necessary requirements, why would a state government believe differently?
HIA has helped hundreds of both young and adult apprentices complete their apprenticeship and get trade qualified over 15,800 students received their qualifications at an RTO in 2017.
It has also helped hundreds get their certificate in building or in other career pathways, and taken mature age apprentices through their journey to realising a new career, last year over 40% of all certificates achieved in Australia were achieved through RTO’s.
Instead of pitting TAFES against RTO’s Politicians in NSW would do better to put funds into promoting trades, to show that a trade is just not a plan B career choice but a legitimate and rewarding career that provides a vital service to the residential building industry and economy as a whole.
In fact, it seems lost on many politicians that industry groups like HIA work hand in hand with TAFE all the time in their apprentices.
HIA would also like to see more money directed towards mature age apprentices entering the work force as their expertise and life experience makes them a valuable asset to the residential building industry.
Any incoming NSW government needs to create meaningful policies to address skills shortages and provide flexibility in choice for students via a contestable market.
Simply using a populist argument and pitting RTO’s against TAFES doesn’t help anyone.
DAVID BARE is the Executive Director of HIA NSW
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Populist policy doesn’t solve skills problem: HIA's David Bare

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

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GUEST OBSERVER
New home sales continued the trend of decline seen throughout 2018.
The HIA New Home Sales Report shows detached house sales fell by 6.7 per cent in the final month of 2018.
Sales during the final quarter of 2018 were 14.9 per cent lower than last year.
While declining home prices in Sydney and Melbourne have made home buyers in these markets far more cautious, the ongoing challenges accessing finance that face many would-be home buyers across the rest of the country continue weigh on new home sales.
New home sales declined steadily throughout 2018. The declines ultimately ended up with sales in December dropping to their lowest level since late-2012.
There is still a large amount of residential building work under way due to residential developments that proceeded with large numbers of off-the-plan sales during 2016, 2017 and early 2018.
These off-the-plan sales have been flowing through the build process and many are now in the construction phase. This high level of building activity is masking a deterioration looming on the horizon.
The slowdown in sales that occurred throughout 2018 shows that the pipeline of new work coming though during 2019 is set to be considerably weaker than we’ve seen in recent years.
Home building activity on the ground is set to decline as the year progresses.
It will be important to watch the trajectory of new home sales during the first half of 2019. This will give us a clear indication of how the contractionary phase of the home building cycle will play out in the second half of 2019 and into 2020.
New South Wales was the only state where sales did not decline during the month (up by 10.0 per cent). Elsewhere sales declined: by 11.8 per cent in Victoria, 9.2 per cent in Queensland, 4.0 per cent in South Australia and 9.2 per cent in Western Australia.
Geordan Murray is a Senior Economist for HIA 
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New home sales at 2012 levels: HIA's Geordan Murray

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EXPERT OBSERVER
With home prices falling, access to finance more difficult and fewer people now entering the country, the number of new homes approved for construction has declined.
ABS data released today show that 16,447 homes (seasonally adjusted) were approved for construction in August – a level that is 9.4 per cent lower than in July and 13.6 per cent lower than in August 2017. The latest level of approvals is the lowest since October 2016. 
The new home building sector has been cooling modestly over the past year after reaching all-time high levels of activity during 2015 through to 2017.
Just as apartment construction drove the increase in home building to record levels, approvals data is signalling that apartments will lead the decline.
Approvals for units fell by 17.2 per cent in August, to be 23.7 per cent lower than a year earlier. 
The key risks that we’re watching relate to credit conditions and population growth.
Constraints on the availability of finance through APRA and increased prudential constraints by banks are restricting investment in new homes.
Population growth has slowed since the government introduced stricter visa requirements last year. As global economic conditions improve, skilled migrants who might otherwise consider immigrating to Australia could be more inclined to look to other similar advanced economies where entry requirements are less restrictive.
The outlook for detached house building is better than for units, with the latest approvals data indicating declines likely to be much more modest,” added Ms Hopkins.
Detached house approvals declined by 1.7 per cent in August and are a modest 4.2 per cent lower than a year previously,” concluded Ms Hopkins.
Total seasonally adjusted dwelling approvals in August fell across the eastern seaboard states: Victoria (-12.0 per cent); Queensland (-8.4 per cent), and; New South Wales (-2.7 per cent). Tasmania experienced the largest monthly fall (-18.6 per cent). Elsewhere approvals increased: Western Australia (+14.7 per cent) and South Australia (+9.6 per cent). 
In trend terms, total dwelling approvals in August increased by 1.5 per cent in the Northern Territory and was virtually unchanged (up by 0.1 per cent) in the Australian Capital Territory.
Diwa Hopkins is an economist at the Housing Industry Association.
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jrobinson-rf4aSBido9

Fewer homes approved for construction: HIA

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For the third consecutive year, Metricon Homes has been revealed as the nation’s number one residential builder.
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The announcement came at the launch of the HIA-COLORBOND® steel Housing 100 Report in Melbourne earlier this week.
Metricon Homes reported a total of 4,764 starts – almost 400 more homes than last year - across Victoria, Queensland, New South Wales and South Australia. Of these starts, 3,876 were detached houses and 491 were semi-detached dwellings. 
The Housing 100 Report found that the number of homes built by the top 100 builders in Australia has fallen for the first time in five years.
Representation in all states has fallen, with the exception of builders from Victoria.
HIA said in terms of building activity, 2017/18 will be recorded as one of the strongest years on record. 
"We are expecting to see around 222,000 new homes commenced this last year, making it the second strongest year on record and the strongest year for detached house builders in 18 years," HIA said.
"Against this backdrop, it is surprising to see that the number of new homes built by the largest 100 home builders in the country did not increase."
HIA suggested building businesses have shifted their focus away from increasing the number of homes they build to focus on improving the efficiency of their business in preparation for a slowdown across the market over the next couple of years.
The key highlights from this year’s HIA–COLORBOND® steel Housing 100 Report for 2017/18 shows that the largest 100 residential builders:
- Increased revenue earned from home construction by 12.3 per cent to $25.39 billion in 2017/18.
- Reduced the number of new starts in the year by seven homes.
- Reduced their share of the new home building market from 34 per cent to 33 per cent.
- Accounted for 69 per cent of the detached homes built in Australia in 2017/18. 
The number of starts required to make the list has also increased again, from 108 to 118 – the highest entry hurdle on record. 
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Metricon Homes named HIA's number one residential builder for third year running

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EXPERT OBSERVER
Changes to visas for skilled workers have delivered an immediate hit to Australia’s population growth.
ABS data released today shows that Australia’s annualised population growth rate slowed for the fourth consecutive quarter.
Australia’s overseas migration fell by 9 per cent since changes to visa requirements came into force in April 2017, slowing the population growth rate to 1.6 per cent.
In April 2017, Australia introduced a range of visa changes which have been successful in reducing the number of skilled migrants arriving in Australia.
The current phase of Australia’s 28 years of continuous economic growth is built upon the arrival of skilled migrants. Skilled migration is necessary to offset the impact of our aging population.
Looking domestically, states such as New South Wales and Victoria that have benefited the most from overseas migration over recent years are now seeing population growth rates slowing.
The slowing rate of population growth, while it remains high for a developed economy, will contribute to slower growth of household consumption.
This means slower growth in sectors such as retail and residential building.
Given that these two sectors are amongst the nation’s largest employers the risks presented a decline in population growth should not be underestimated.
Over the year to March 2018, Victoria saw the strongest growth in population (+2.2 per cent), followed by the ACT (+2.1 per cent) and Queensland (+1.7 per cent).
New South Wales was fourth fastest (+1.6 per cent) with Tasmania fifth (+1.0 per cent), Western Australia sixth (+0.8 per cent) and South Australia seventh (+0.7 per cent).
The population of the Northern Territory has actually declined over the last two quarters and the annual rate of growth has slowed to 0.1 per cent.
<img src="https://www.urban.com.au/images/2018/9/20/HIA%20ground.JPG" alt="">
Geordan Murray is the Principal Economist for HIA 
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Overseas migration into Australia is down by 9 per cent: Geordan Murray

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New home sales rose 2 per cent in June, the first rise this year, according to the HIA New Home Sales report.
“Despite the monthly bounce in June, new home sales during the entire 2017/18 financial year were 5.3 per cent lower than in the previous financial year,” stated HIA’s principal economist, Tim Reardon.
The increase in sales in June is small in comparison with the fall in sales that has occurred throughout 2018.
New home sales for the first six months of this year are 2.9 per cent lower than in the last six months of 2017.
AMP Capital chief economist Shane Oliver noted despite the first rise this year the "moderate downtrend was continuing."
"The deterioration of sales over the financial year reflects shifts in housing market conditions," noted Mr Reardon.
The availability of credit has tightened over the past 12 months with banks responding to the decline in house prices and the Banking Royal Commission.
Although credit availability has tightened, overall building activity remains elevated when compared with building levels over the past decade.
New home sales rose in all states except Victoria, which have been in decline since February 2018 and declined a further a 0.4 per cent in June.
“Activity in the Victorian market has reached record levels over recent years and has remained elevated well above historical trends and well in excess of growth in other states," stated Mr Rearden.
“The decline in sales in Victoria is well overdue."
“A pickup in new home sales in the other states, particularly NSW, is a welcome reprieve from a year of slow sales," he added.
Sales in NSW were 13.3 per cent lower in 2017/18 than in the previous year.
Sales in NSW picked up in June 2018, by 8.3 per cent compared with the previous month, giving a positive end to an underwhelming year.
Across the other markets, new home sales also rose in Queensland (2.7 per cent) and WA (1.5 per cent) and SA (0.2 per cent).
Mr Rearden stated that “Australia’s population growth has slowed over the past three quarters in response to tighter visa requirements that have constrained inward migration."
The Sydney and Melbourne markets have seen a decline in their rates of population growth since 1 July 2017.
ABS data shows approvals for private sector detached houses fell dramatically in May 2018.
"Approvals data typically trails the new home sales data by three to six months and the dramatic fall in approvals in May is likely to be reflected in the June data,” concluded Mr Reardon.
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New home sales numbers have risen for the first time this year: HIA

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New home sales rose 9.1 per cent in August, powered by strong results in Victoria and Western Australia, but over the year sales continue to slow, according to Housing Industry Association (HIA).
The HIA New Home Sales report is a monthly survey of the largest volume home builders in the five largest states and is an indicator of building approvals and activity in the building industry. 
“The jump in sales in July confirms our forecast of a slowdown in building activity through until 2018/19. The increase in sales in August offsets larger declines in sales in recent months, but it is not sufficient to reverse the decline in sales that is evident since early 2016,” said HIA’s principal economist, Tim Reardon.  
“Results in July and August have been affected by government interventions in NSW and Victoria which have seen first home-buyers returning to the new home market. 
For the three months to August compared with the same period last year, house sales in Victoria were up 15.7 per cent while in South Australia the figure rose 9.2 per cent. 
However, sales declined in Queensland (-7.3 per cent), WA (-15.4 per cent), NSW (-17.4 per cent) and Queensland (-37.9 per cent). 
“Victoria has seen record numbers of new building approvals and new home sales are continuing to drive even higher. Strong population growth and employment growth, fortified with enhanced first home buyer incentives, is prolonging the boom in building activity.” 
<a href="https://www.propertyobserver.com.au/images/2017/10/03/HIAchart.png" target="_blank">Click to enlarge</a>
 <img src="https://www.urban.com.au/images/2017/10/03/HIAchart.png" alt="">
“The trend in new home sales continues to provide a strong leading indicator of the trend in residential building approval figures from the ABS as can be seen in the chart,” said Reardon. 
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