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

Joel Robinson

Abadeen unveils signature penthouse at Park Residences in Cremorne

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

Dalcott targets owner-occupiers with South Brisbane debut Marrone

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

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

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

ODUS releases $18 million penthouse crowning La Mer Main Beach

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

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

Home Prices

<html><body>
GUEST OBSERVER
The weekly ANZ/Roy Morgan consumer confidence rating fell by just 0.4 points (0.3 percent) to 116.0 in the week to March 20.
 Confidence is up 4.1 percent over the year and above the average index value of 112 since 2014.
Higher home prices: The Bureau of Statistics reports that Australian home prices rose by 0.2 percent in the December quarter to stand 8.7 percent higher over the year.
Fewer people in homes: The estimated number of people per home continues to fall, dropping from 2.491 to 2.488 in the December quarter.
The consumer confidence figures have implications for finance providers, retailers, and companies dependent on consumer and business spending.
<a href="/images/2016/03/23/Screen%20Shot%202016-03-22%20at%204.56.43%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/23/Screen%20Shot%202016-03-22%20at%204.56.43%20PM.png" alt="">
What does it all mean?
Headed into a period dominated by the Federal Budget and a possible double-dissolution election, Aussie consumers are in good shape. All the key components of the confidence survey are above short-term averages.
And indeed the outlook for family finances over the coming year – a lead indicator of spending – remains positive.
The key question is how confidence evolves over the next few weeks. The Aussie dollar is near US76 cents, interest rates are at generational lows, trend unemployment is at 26-months lows and petrol prices are just above the lowest levels recorded in six years. So there are few reasons to be negative.
The Bureau of Statistics has released data on home prices for the December quarter. However the better measures on home prices are those produced by CoreLogic RP Data and it’s worth noting that March quarter data will be released in just over a week, on April 1.
From 2011 to early 2014, the average number of people in Aussie homes rose – a rare development over the past century in Australia. But with more homes being built in recent years and rental conditions easing, more Gen Y (or Millennials) have been moving out of home. As a result the number of people per home is again shrinking, serving to soak up the increased supply of new homes.
What do the figures show?
Consumer confidence
The weekly ANZ/Roy Morgan consumer confidence rating fell by 0.4 points (0.3 percent) to 116.0 in the week to March 20. Confidence is up 4.1 percent over the year and above the average of 112 since 2014. Three of the five components of the index rose in the latest week:
The estimate of family finances compared with a year ago was up from +10 to +11;
The estimate of family finances over the next year was down from +35 to +27;
Economic conditions over the next 12 months was up from -2 to +2;
Economic conditions over the next 5 years was up  from +7 to +9;
The measure of whether it was a good time to buy a major household item was down  from +32 points to +31 points.
Residential property prices
The Bureau of Statistics (ABS) has released its Residential Property Price indexes.
“The price index for residential properties for the weighted average of the eight capital cities rose 0.2 percent in the December quarter 2015. The index rose 8.7 per cent through the year to the December quarter 2015.
The capital city residential property price indexes rose in Melbourne (+1.6 percent), Brisbane (+1.6 percent), Adelaide (+0.9 percent), Canberra (+2.8 percent), Perth (+0.5 percent) and Hobart (+2.5 percent) and fell in Sydney (-1.6 percent) and Darwin (-1.8 percent).
Annually, residential property prices rose in Sydney (+13.9 percent), Melbourne (+9.6 percent), Canberra (+6.0 percent), Brisbane (+4.2 percent), Hobart (+3.5 percent) and Adelaide (+3.3 percent) and fell in Darwin (-3.2 percent) and Perth (-2.9 percent).
The ABS notes that as at December 2015 there were 9.62 million homes in Australia. On average there were 2.488 people per home, down from 2.491 in the September quarter.
“The total value of residential dwellings in Australia was $5,885,967.2m at the end of December quarter 2015, rising $31,557.1m over the quarter.
The mean price of residential dwellings rose $800 to $612,100 and the number of residential dwellings rose by 38,700 to 9,615,800 in the December quarter 2015.”
What is the importance of the economic data?
The ANZ/Roy Morgan weekly survey of consumer confidence closely tracks the monthly Westpac/Melbourne Institute consumer sentiment index but the former measure is a timelier assessment of consumer attitudes and is now closely tracked by the Reserve Bank.
The Australian Bureau of Statistics (ABS)  provides quarterly data on residential prices. The figures provide further perspectives on the state of the housing purchase sector.
<a href="/images/2016/03/23/Screen%20Shot%202016-03-22%20at%204.58.09%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/23/Screen%20Shot%202016-03-22%20at%204.58.09%20PM.png" alt="">
What are the implications for interest rates and investors?
CommSec doesn’t expect any change in the cash rate for the foreseeable future. Underlying inflation remains at the bottom of the 2-3 percent target band but should lift over 2016.
The Reserve Bank believes that the aspects of the consumer confidence surveys dealing with family finances are the most important. The good news for retailers is that Aussie consumers believe finances are better than a year ago and likely to remain in good shape.
The fall in the number of people per home most probably reflects lower growth in rents and the lift in homebuilding, especially the shift to apartment living. But the drop in the number of people per home is one factor serving to alleviate concerns of a potential oversupply developing of new homes.
Craig James is the chief economist at <a href="https://www.comsec.com.au/default.aspx" target="_blank">CommSec</a>.
</body></html>

jchancellor-FAypfDUnLy

Contented consumers; Fewer people in homes: CommSec's Craig James

<html><body>
<a name="1515adbefb515e76_OLE_LINK3" href=""></a>
GUEST OBSERVER
Sydney property prices fell by 1.4%, marking the biggest fall in nearly five years.
Melbourne property prices fell by 3.5% in November – the largest fall in 18 months.
The CoreLogic RP Data home value index of capital city home prices fell by 1.5% in November to stand 8.7 % higher over the year. 
Dwelling prices rose in just three of the eight capital cities in November.
The performance of manufacturing index lifted by 2.3 points to 52.5 in November, the highest reading in two years. A reading above 50.0 indicates that the sector is expanding.
Production, orders, employment, exports and sales all recorded healthy gains in November.
What does it all mean?
So far so good. The second day this week of better economic data. A mild correction in property prices (particularly in Sydney and Melbourne) is a good thing, while a healthy expansion is taking place in manufacturing activity (two-year high).
The slide in capital city home prices in November marked the first fall in six months and the biggest slide nationally in 18 months. No doubt the weakness in home prices is being driven by the tightening in lending criteria by the banking sector.
In particular the concerted effort to cool investor demand or speculative home purchases is paying dividends.
Sydney house prices recorded a 1.4 % slide in November - its biggest fall in almost five years. But keep in mind Sydney home prices are still up almost 13 % over the year. 
While it was encouraging that Sydney and Melbourne prices pulled back, the perfect scenario would have been for a credible lift in prices across other capital cities.
Dwelling prices fell in five of the eight capital cities, and while “Rest of State” prices managed to lift by 0.3 % in November, annual growth holds at a paltry 2.8 %. 
This highlights the issues facing policymakers in attempting to manage a very diverse housing market. What we would expect to see is the lift in capital city house prices eventually filters out across the regional towns over the next 12-24 months.
The consolidation in home prices is unlikely to see home building dry up.
There is a record pipeline of dwelling approvals that suggest a lot of building work will take place over the next 12-24 months - supportive of a lift in activity levels over the medium term.
The rebalancing effect across the economy continues to take place.
Manufacturing activity is now expanding at the fastest pace in two years and more importantly the sub-indices like, employment, production, sales and exports are all showing a credible lift.
The results mirror the lift in manufacturing investment in last week’s business investment data. No doubt the weaker Australian dollar will continue to support the sector.
What do the figures show?
Home prices
- The CoreLogic RP Data Hedonic Australian Home Value index of capital city home prices fell by 1.5 % in November to stand 8.7 % higher than a year ago.
- House prices fell by 1.6 % in November while apartments fell by 0.9 %. House prices were up 9.1 % on a year ago and apartments were up by 6.6 %.
- The average Australian capital city house price (median price based on settled sales over quarter) was $626,000 and the average unit price was $525,000. The average Sydney house price was $950,000 – still some way off the $1 million mark.
- Dwelling prices rose in just three of the eight capital cities in November: Adelaide (up 0.7 %), Brisbane (up 0.6 %) and Perth (up 0.3 %).
- Prices fell most in Melbourne (down 3.5 %), Hobart (down 2.4 %), Sydney (down 1.4 %), Darwin (down 1.3 %) and Canberra (down 0.5 %).
- Home prices were higher than a year ago in six of the eight capital cities. Prices rose most in Sydney (up 12.8 %), followed by Melbourne (up 11.8 %), Canberra (up 4.5 %), Brisbane (up 4 %), Adelaide (up 3.3 %), and Hobart (up 1.1 %).
- Prices fell in Darwin (down 4.2 %) and Perth (down 4.1 %).
- Total returns on capital city dwellings in the year to November rose by 12.8 % with houses up 13.0 % on a year earlier and units up 11.4 %.
CoreLogic RP Data noted that as a consequence of the tighter lending environment for rental yields, combined capital cities investors, as well as gross rental yields being at near record lows, participation in the housing market from investors has reduced from 54.1 % of all new mortgages in May 2015 to 45.4 % at the end of September, which is the lowest level since July 2013.
Data released by APRA at the end of last month showed the pace of investment related housing credit growth fell below the APRA 10 % speed limit for the first time since September last year, with the monthly change in investment credit growth the lowest since October 2011.
According to today’s results, the slowdown comes after auction clearance rates have moderated back to the low 60 % range since the last week of October, whilst average selling time and vendor discounting rates also continue to rise from their record lows.”
Performance of Manufacturing
- The Performance of Manufacturing index lifted by 2.3 points to 52.5 in November. A reading above 50.0 indicates that the sector is expanding.
- Production, orders, employment exports and sales all recorded healthy gains in November.
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Savanth Sebastian is an economist for <a href="https://www.commsec.com.au/" target="_blank">CommSec</a>. 
 
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Sydney home prices record biggest slide in five years: CommSec Research

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Across the nation home prices are starting to look healthier with the gains more wide spread across the states, rather than being just Sydney or Melbourne based. In fact Sydney prices only lifted by 0.1% while capital city home prices rose by a much more robust 0.9%. Even more encouraging five of the eight capital cities recorded growth.
In fact if you take out the capital cities and look at the “Rest of State” index, home prices lifted by 0.6%. Granted it is still early days for the regional cities with home prices up just 2.8% over the past year, but the signs are more encouraging. We would expect to see the lift in capital city house prices eventually filters out across the regional towns over the next 12-24 months. Strength in home prices across the nation will be more supportive of a lift in activity levels over the medium term.
Sydney house prices are up almost 17 per cent on a year ago with total returns lifting by a staggering 21 per cent over the past year. Although in the Sydney housing market there are signs that price growth will be more circumspect going forward. The tighter lending policies being adopted by the banks, coupled with new housing supply should ensure much more sedate property price growth. 
The manufacturing sector expanded for the third consecutive month. Clearly a function of the lower Australian dollar.
The job market continues to improve with job vacancies at the highest levels in almost three-year highs. With population growth slower than in past years, unemployment has more chance of falling over the coming year.
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What do the figures show?
Home prices
The CoreLogic RP Data Hedonic Australian Home Value index of capital city home prices rose by 0.9 per cent in September to stand 11 per cent higher than a year ago.
House prices rose by 0.9 per cent in September while apartments rose by 0.6 per cent. House prices were up 11.6 per cent on a year ago and apartments were up by 7.3 per cent.
The average Australian capital city house price (median price based on settled sales over quarter) was $613,000 and the average unit price was $515,000. The average Sydney house price was $920,000 – still well short of a $1 million. 
Dwelling prices rose in five of the eight capital cities in September: Melbourne (up 2.4 per cent), Brisbane (up 1.4 per cent), Canberra (up 1.0 per cent), Perth (up 0.5 per cent) and Sydney (up 0.1 per cent). Prices fell in, Hobart (down 1.9 per cent), Adelaide (down 1.2 per cent), and Darwin (down 0.3 per cent).
Home prices were higher than a year ago in four of the eight capital cities. Prices rose most in Sydney (up 16.7 per cent), followed by Melbourne (up 14.2 per cent), Brisbane (up 4.6 per cent), and Canberra (up 0.6 per cent). Price fell in Darwin (down 3.9 per cent), Perth (down 0.9 per cent) Adelaide (down 0.3 per cent), and Hobart (down 0.2 per cent).
Total returns on capital city dwellings in the year to August rose by 14.4 per cent with houses up 14.7 per cent on a year earlier and units up 12.3 per cent.
Job vacancies:
Job vacancies rose by 2.7 per cent to 160,900 in seasonally adjusted terms in the three months to August. It was the highest number of vacancies in almost 3 years (since November 2012).
Over the year vacancies lifted 18.6 per cent in Victoria in original terms over the year but fell 34.2 per cent in Northern Territory and fell by 11.3 per cent Western Australia. Over the past year, job vacancies rose by 15,100 or 10.2 per cent in original terms.
Over the past year, vacancies rose the most in Administrative and Support Services and Accommodation, Cafes and Restaurants (both up 5,100). Vacancies fell most in Manufacturing (down 3,300), Mining and Transport and storage (both down 1,000) and Communication services (down 1,000).
Performance of Manufacturing
The Performance of Manufacturing index rose by 0.4 points to 52.1 in September. A reading above 50.0 indicates that the sector is expanding. Production, orders, exports, sales, and capacity use rose in September but employment, selling prices eased, while wages fell. 
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<div class="column">What is the importance of the economic data?</div>
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The CoreLogic RP Data 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- RP Data Hedonic Index includes all properties. Home prices are an important driver of wealth and spending. The Australian Bureau of Statistics releases Job Vacancies data each quarter. The data is useful in gauging the strength of the job marketThe Australian Industry Group and PricewaterhouseCoopers compile 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.
What are the implications for interest rates and investors?
The Reserve Bank won’t be lifting or cutting interest rates any time soon. A couple more months of sedate growth in Sydney home prices will be welcomed by policymakers – there is just no fundamental reason to change interest rate settings at present.
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 The ongoing lift in job vacancies is certainly encouraging – supporting household confidence and spending.
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<div class="column">CommSec expects interest rate settings to remain unchanged over 2015 and 2016. </div>
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<div class="column">Savanth Sebastian is an economist for <a href="https://www.commsec.com.au" target="_blank">CommSec</a></div>
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Healthy home prices: CommSec's Savanth Sebastian

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GUEST OBSERVER
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<div class="column">In terms of home prices, it is Sydney first, daylight second. In August, Sydney prices rose by 1.1% while next-placed Adelaide saw prices rise by 0.7%. And in the majority of capital cities prices were flat or falling in the month. Over the year Sydney prices were up 17.6%. Next-placed Melbourne had prices up 10.6% on the year. But in three capital cities, home prices are below year ago levels. And home prices in regional Australia were up just 2.3% over the year.</div>
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 Sydney home prices will slow over the year as more homes are built. Already gross yields on homes are recording the slowest growth rates on record in Sydney and Melbourne. And rents are growing at the slowest annual rates on record.
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 If you are a tenant, it is good times. If you are a property seller in Sydney, times are still good. If you are a home buyer in Sydney, there are challenges, with prices still lifting strongly. If you are a home buyer outside Sydney or Melbourne, conditions are favourable. Clearly there is no such thing as a single housing “market”.
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 More good news on the economy – consumers are still happy and the manufacturing sector is expanding. Yet more reason for the Reserve Bank to be pleased at the evolving situation.
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The CoreLogic RP Data Hedonic Australian Home Value index of capital city home prices rose by 0.3% in August to stand 10.2 per cent higher than a year ago.
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House prices rose by 0.3% in August while apartments rose by 0.8%. House prices were up 10.6% on a year ago and apartments were up by 7.4%.
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The average Australian capital city house price (median price based on settled sales over quarter) was $600,000 and the average unit price was $509,900. The average Sydney house price was $900,000 – still well short of a $1 million. 
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Dwelling prices rose in just three of the eight capital cities in August: Sydney (up 1.1 per cent), Adelaide (up 0.7 per cent) and Darwin (up 0.3 per cent). Prices were flat in Melbourne and Brisbane. Prices fell in Canberra (down 1.7 per cent), Perth (down 1.3 per cent) and Hobart (down 1.1 per cent).
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 Home prices were higher than a year ago in five of the eight capital cities. Prices rose most in Sydney (up 17.6 per cent), followed by Melbourne (up 10.6 per cent), Brisbane (up 3.9 per cent), Adelaide (up 1.8 per cent), and Hobart (up 1.5 per cent). Price fell in Darwin (down 4.6 per cent), Perth (down 1.8 per cent) and Canberra (down 0.9 per cent).
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 Total returns on capital city dwellings in the year to August rose by 14.4 per cent with houses up 14.7 per cent on a year earlier and units up 12.3 per cent.
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RP Data report: “While the August results indicate a slowdown in the rate of appreciation in dwelling values, the quarterly figures highlight just how strong the housing market has been over the past three months; combined capital city dwelling values are 5.3 per cent higher over the three months to the end of August this year.”
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 “Growth in weekly rental rates shifted to a new record low for annual growth over the month of August. Across the combined capital cities, the median weekly rental rate rose by just 0.7 per cent over the past twelve months, with house rents up 0.5 per cent and unit rents up a higher 1.6 per cent.
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 Since May 2013, dwelling values have risen at a faster pace than weekly rents. “The result of the disparity between dwelling values and dwelling rents has been a consistent downwards trend in gross rental yields. Gross yields are at record lows in both Sydney and Melbourne. A typical dwelling is attracting a gross yield of just 3.3 per cent and 3.1 per cent respectively across Australia’s two largest cities.”
Performance of Manufacturing
The Performance of Manufacturing index rose by 1.3 points to 51.7 in August. A reading above 50.0 indicates that the sector is expanding. The survey is volatile from month to month and is not providing accurate guidance on economic conditions. Orders, employment, capacity use and input prices rose in August but production, exports, sales, selling prices and wages fell.
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Consumer sentiment The weekly ANZ/Roy Morgan consumer confidence rating rose by 0.3 per cent 113.3 in the week to August 30. Confidence is up 0.6 per cent over the year and still up on the average of 111.5 since 2014.
Three of the five components of the index rose in the latest week:
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The estimate of family finances compared with a year ago was down from +11 to +10; The estimate of family finances over the next year was up from +22 to +27;
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Economic conditions over the next 12 months was down from -6 to -11;
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Economic conditions over the next 5 years was up from +7 to +9;
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The measure of whether it was a good time to buy a major household item was up from +31 to +32 points. What is the importance of the economic data?
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The CoreLogic RP Data 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- RP Data Hedonic Index includes all properties. Home prices are an important driver of wealth and spending. 
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The Australian Industry Group and PricewaterhouseCoopers compile 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.
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The ANZ/Roy Morgan weekly survey of consumer confidence closely tracks the monthly Westpac/Melbourne Institute consumer sentiment index but the former measure is a timelier assessment of consumer attitudes and is now closely tracked by the Reserve Bank. 
What are the implications for interest rates and investors? 
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The Reserve Bank won’t be lifting or cutting interest rates any time soon. The strong gains in Sydney home prices aren’t influencing policy decisions – there is just no fundamental reason to change interest rate settings at present. 
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CommSec expects interest rate settings to remain unchanged over 2015. 
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The resilience of consumer sentiment is positive for retailers. 
 
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<div class="column">Craig James is the chief economist at <a href="https://www.comsec.com.au/default.aspx" target="_blank">CommSec</a>.</div>
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