Buyers considering a residence at boutique Gordon townhouse development <a href="https://www.apartments.com.au/new-townhouses/lume-gordon-43-47-dumaresq-street-gordon-nsw-2072">Lume</a>&nbsp;now have another reason to bring forward their decision.

For a limited time, purchasers of a residence at Lume will receive a BMW iX3 50 electric SUV, valued at more than $120,000, as part of their purchase. The offer is designed to add value for buyers while complementing the lifestyle envisioned for the architecturally designed Upper North Shore development.

Scott Timmins, Development Manager at <a href="https://www.apartments.com.au/developers/winim">WINIM</a>, said the partnership was created to provide buyers with a compelling reason to act.

"In today's market, buyers need a compelling reason to act now, and the BMW partnership was designed to create that catalyst. We wanted to add genuine value for our future purchasers. Choosing the all-electric BMW iX3 50 also reflects the values behind LUME, forward-thinking design, innovation and a more sustainable way of living. It's a premium incentive that complements the lifestyle our buyers aspire to and rewards those who commit early."

[smartcode_project:default project_id=7354 project_image_fid=374893]

Delivered by WINIM in partnership with Burtonwood Investment Partners, Lume comprises 14 architecturally designed two, three and four-bedroom townhomes created for families seeking the space of a freestanding house with the ease of modern, low-maintenance living.

The three-storey residences, designed by award-winning architecture practice <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, have been tailored for families and multi-generational living, featuring private internal lifts, flexible lower-level spaces, generous open-plan living and entertaining areas, media rooms, and landscaped outdoor spaces with custom outdoor kitchens.&nbsp;

Inside, engineered oak flooring, bespoke dining joinery with integrated wine fridges and backlit bars, sculptural porcelain bathrooms, Parisi freestanding baths and Astra Walker tapware create interiors that balance functionality with refined finishes.

Each townhome has been designed to combine generous internal spaces with sustainability initiatives such as EV charging infrastructure, while <a href="https://www.apartments.com.au/landscape-architect/arcadia-landscape-architecture">Arcadia</a>'s landscaped communal areas, centred around a restored creek line and native planting, encourage residents to connect with nature and spend more time outdoors.

[smartcode_project:default project_id=7354 project_image_fid=269527]

Rothelowman's Gary Tsui said the architecture was conceived to respond carefully to its Upper North Shore setting.

"Our vision was to create elegant, uplifting homes that draw on and positively contribute to the local character through meticulously considered design and an interaction with the surroundings."

The communal landscape has been designed as more than an open space between homes. Arcadia's Ben Newell and Kate Phillips said the adjoining reserve provided an opportunity to create a distinctive natural retreat for residents.

"Just as waterways carve their way through Ku-ring-gai's landscape, a raised boardwalk weaves through the reserve, connecting the homes to this tranquil oasis."

[smartcode_project:default project_id=7354 project_image_fid=374892]

Located just 300 metres from <a href="https://www.apartments.com.au/developments/gordon-nsw-2072">Gordon</a> Village and Gordon railway station, Lume offers convenient access to Sydney's CBD while placing residents close to some of the North Shore's leading schools, including Ravenswood, Pymble Ladies' College and Knox Grammar. Lane Cove National Park, Gordon Golf Club and a range of cafés and restaurants further reinforce the family-focused lifestyle on offer, with the BMW iX3 50 complementing everything from local trips around Gordon to weekend drives and city commutes.

Construction is underway with completion expected in mid-2027.

[smartcode_project_cta:default project_id=7354]

Joel Robinson

Boutique Gordon townhomes now come with a BMW iX3 50

Two apartments have sold for more than $10 million at EADE Byron Bay, setting some of the highest apartment prices ever achieved in the coastal town and underlining the growing appetite for luxury beachfront apartments in Australia's most popular coastal locations.

The $210 million project by Vitale Property Group has now secured more than $70 million in sales, led by residences that changed hands for $12.75 million and $11.75 million.

The record-breaking transactions reinforce the shift occurring in Byron Bay's premium property market, where affluent downsizers and lifestyle buyers are increasingly opting for high-end apartments over large beachfront homes.

<a href="https://www.apartments.com.au/new-apartments/eade-byron-bay-29-shirley-street-byron-bay-nsw-2481">EADE Byron Bay</a> occupies a rare 6,000 sqm absolute beachfront site on the corner of Shirley and Milton Streets overlooking Main Beach and The Wreck surf break, just 350 metres from Byron Bay's town centre.

The 25-residence development is the first beachfront apartment project approved in Byron Bay in more than a decade and is currently under construction, with completion expected in May 2027.

[smartcode_project:default project_id=145590 project_image_fid=359521]

The project has attracted a mix of local Byron Shire residents downsizing from larger homes, alongside interstate buyers from Sydney, Melbourne and Brisbane seeking a permanent coastal lifestyle without compromising on space.

Designed by <a href="https://www.apartments.com.au/architects/hayball">Hayball</a> and with interiors by <a href="https://www.apartments.com.au/interior-designers/alexander-co">Alexander &amp; Co</a>, EADE comprises&nbsp;10 garden apartments ranging from 284 sqm to 622 sqm, nine with private pools, five full-floor apartments and 10 rooftop residences with private plunge pools, expansive outdoor entertaining areas and uninterrupted ocean views.

[smartcode_project:default project_id=145590 project_image_fid=359527]

<a href="https://www.apartments.com.au/developers/vitale-property-group">Vitale Property Group</a> Managing Partner Chris Vitale said the project's combination of scale, location and limited future supply was driving buyer demand.

"There isn't another beachfront holding in Byron Bay of this size and position that could be developed again," Vitale said.

"Buyers are responding to the scarcity and the irreplaceability of a site of this calibre and to floorplans they can't find elsewhere in the market.

"We are seeing buyers place significant value on quality, space, design, resort-style amenities and the rarity of the location. The sales achieved to date demonstrate that discerning purchasers recognise the long-term significance of what is being created at EADE Byron Bay.

"Many are coming from larger homes in the Byron region, or from Sydney, Melbourne and Brisbane, and are after the space, security and convenience, without the upkeep of a house."

&nbsp;

[smartcode_project:default project_id=145590 project_image_fid=359523]

The Byron Bay project follows Vitale Property Group's delivery of the Mondrian Hotel and Private Residences at Burleigh Heads, with EADE continuing the developer's focus on luxury coastal developments.

Residents will have access to a resort-style swimming pool, gymnasium, sauna, cold plunge pool, concierge services and dedicated workspaces, while the project is targeting an 8-Star Green Star rating.

EADE Byron Bay is being exclusively marketed by Projx Australia in conjunction with WHITEFOX Projects.

WHITEFOX National Projects Director Phillip Rand said demand had been driven predominantly by owner-occupiers.

"We are seeing buyers at EADE place significant value on quality, space, design, resort-style amenities and the rarity of this location," Rand says.

"The sales achieved to date demonstrate that purchasers at this level recognise the long-term significance of what is being created at EADE Byron Bay."

Residences at EADE Byron Bay are currently priced between $4.75 million and $15.95 million.

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[smartcode_project_cta:default project_id=145590]

Vitale breaks Byron Bay records with EADE sales flurry 

When buying an apartment, most people compare the big-ticket items first. Floorplans. Kitchens. Balcony size. Natural light. The view.

But there's one everyday consideration that often doesn't come up until after moving in: how parcels are delivered.

As online shopping has become part of everyday life, parcel deliveries have shifted from an occasional event to a regular occurrence. Australians spent a record $82.6 billion shopping online in 2025, with almost one in every four retail dollars now spent digitally.

For apartment residents, that can present a challenge.

If nobody is home to accept a delivery, parcels may be redirected to a nearby Post Office, left in a building lobby or common area, or require building management to step in. In higher-density buildings, where dozens or even hundreds of residents may receive deliveries each day, parcel management has become an increasingly important part of everyday living.

That can create a range of frustrations. A missed delivery often means making time to collect a parcel elsewhere, while packages left unattended in foyers or mail areas can create clutter and increase the risk of theft. What seems like a minor inconvenience can quickly become a recurring issue for residents who shop online regularly.

It's one of those details that rarely features in a display suite but can have a noticeable impact once residents move in.

As a result, buyers are beginning to look beyond traditional apartment features and consider how a building supports day-to-day convenience, including whether there are secure options for receiving deliveries.

Australia Post's Parcel Lockers provide one solution.

<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/CkF2oKmlACg?si=C50sDaoUUn2nuLmq" title="YouTube video player" width="560"></iframe>

Rather than having a parcel delivered directly to an apartment, eligible deliveries can be sent to a nominated Parcel Locker. Once the parcel arrives, residents receive a notification through the AusPost app or SMS and can collect it using a QR code or one-time PIN at a time that suits them.

The Parcel Locker network now includes more than 1,500 locations nationwide, with installations at Post Offices, shopping centres, transport hubs and an increasing number of residential developments. By providing a secure collection point, Parcel Lockers help reduce missed deliveries and avoid parcels being left unattended in common areas.

For developers, parcel infrastructure is becoming another way to improve the resident experience. Rather than relying on concierge staff or leaving parcels in communal spaces, secure collection points help streamline deliveries while preserving the presentation and functionality of shared areas.

For buyers, it's a reminder that the best apartment features aren't always the most obvious.

A generous floorplan or quality finishes might help narrow the shortlist, but the conveniences that simplify everyday life, whether that's EV charging, secure bike storage or reliable parcel delivery, often become the features residents appreciate most once they're living there.

The apartment feature many buyers don't think about, until their first missed delivery

<a href="https://www.apartments.com.au/developers/hg-developments">HG Developments</a> is doubling down on Maud Street in Newstead, filing plans for a new apartment tower just a few doors down from its under-construction Aire Newstead development.

Recently submitted to Brisbane City Council, the proposal is for an 18-storey building designed by bureau^proberts, which has drawn heavily on Brisbane's subtropical design principles while referencing the suburb's industrial heritage.

A total of 64 apartments are planned for the amalgamated 1,518 sqm site at <a href="https://www.apartments.com.au/new-apartments/17-21-maud-street-newstead-qld-4006">17–21 Maud Street</a>, a short walk from the Brisbane River and Newstead Riverwalk.

<img alt="First look: HG Developments plans 18-storey subtropical apartment tower for Newstead" data-entity-type="file" data-entity-uuid="a400c7fd-bd15-48f8-a63b-10ede92efe00" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Maud%20st%20bldg.png?VersionId=.0vPmjpbC7CNP7kqGWa6L7rGIwsNExaw" />

"The building is defined by a series of vaulted motifs that reinterpret the arches, colonnades and layered facades evident throughout Newstead's historic built fabric," the Urban Design Report states.

"Combined with recessed glazing and generous balconies, these elements create a layered building envelope that provides shade, weather protection and opportunities for natural ventilation whilst establishing a distinctive architectural identity."

The proposal comprises 64 two, three and four-bedroom apartments across 18 residential levels, positioning it alongside a growing number of taller residential projects transforming Newstead's northern precinct. The tower incorporates extensive subtropical landscaping, with cascading planter boxes, deep planting at street level and a landscaped rooftop recreation area.

<img alt="First look: HG Developments plans 18-storey subtropical apartment tower for Newstead" data-entity-type="file" data-entity-uuid="1d8140f4-8b98-45cd-b1b8-1efe8c8e266b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Maud%20st%20podium.png?VersionId=VAZtbCoD44YCJ57N99fQCAKeSJx7ldZs" />

Bureau Proberts has prioritised passive environmental design throughout the project, with generous balconies, recessed glazing and operable façades helping reduce solar heat gain while maximising natural ventilation. River views become available from the upper levels, while the building has been orientated to capture prevailing breezes from both the Brisbane River and the west.

The architects say landscape is intended to be integral to the building rather than an applied element.

"Vertical greenery, cascading planter boxes and elevated gardens are woven throughout the architecture, softening the built form and strengthening the connection between residents and the subtropical environment."

"Through the integration of landscape, high-quality materials and passive design principles, the development delivers a refined residential address that celebrates Newstead's heritage character while contributing positively to Brisbane's evolving subtropical identity."

Newstead has remained one of Brisbane's most active apartment markets in recent years, with a number of developers continuing to back the inner-city suburb.

HG Developments is currently delivering the 40-apartment Aire Newstead at 25 Maud Street. Fortis recently launched the 65-apartment <a href="https://www.apartments.com.au/new-apartments/crest-walker-newstead-12-kyabra-street-newstead-qld-4006">Crest &amp; Walker</a> on Kyabra Street, while builder-developer BPG and Don O'Rorke's Consolidated Properties are both expected to launch their respective Newstead projects before the end of the year.

HG Developments doubles down in Newstead with second Maud Street apartment development

Walk past a new apartment development promoting its sustainability credentials and it's easy to picture rooftop gardens, mature trees, landscaped courtyards and residents surrounded by nature.

But in many cases, that's not actually what those sustainability ratings guarantee.

Australia's leading environmental rating tools have played a significant role in improving the energy efficiency and environmental performance of buildings. Yet despite their focus on reducing emissions, many don't require developers to include trees, biodiversity or meaningful green space.

In other words, a building can achieve one of the country's highest sustainability ratings while containing little more than concrete, glass and hard landscaping.

That disconnect has led to the emergence of a new movement across Australia's property industry: nature-based cities.

The concept goes beyond designing buildings that consume less energy. Instead, it encourages developers to treat nature as essential infrastructure, integrating biodiversity, tree canopy, living landscapes and green spaces into projects from the earliest stages of planning.

Research has consistently linked access to nature with better physical and mental health, cooler neighbourhoods, improved biodiversity, stronger climate resilience and more connected communities. As Australia's cities continue to become denser, advocates say those outcomes should be considered just as important as energy efficiency.

Nature Based Cities (NBC) was established in 2022 to help accelerate that shift.

Founded by Hamton Executive Chairman Paul Hameister OAM, the not-for-profit was created after research highlighted a significant gap in Australia's sustainability framework. While existing environmental rating tools rewarded energy performance and emissions reductions, they placed little emphasis on the inclusion of living landscapes.

"We've always wanted to do more, and we know other developers who want to do more, but the ESD rating tools just aren't there," Hameister says.

"In Australia, you can have a five-green-star rated building that's concrete and glass with not a blade of grass.

"The focus is on reducing emissions, which is laudable, but there hasn't been enough attention paid to protecting and re-establishing nature. We need both for the health of the environment and for communities."

Since its launch, NBC has developed independent design guidelines and accreditation frameworks that encourage developers to prioritise ecology, biodiversity, tree canopy, walkability and living landscapes alongside traditional sustainability measures. The organisation first focused on medium and high-density residential developments before recently expanding into precinct-scale communities and masterplanned neighbourhoods.

Jan Talacko, founder of sustainability consultancy Ark Resources and a member of the Nature Based Cities Advisory Council, says the initiative addresses an area that has largely been overlooked by the property industry.

"Throughout my 25 years of working collaboratively with all stakeholders in the property sector, I've always favoured a pragmatic approach to sustainable design which encourages initiatives that not only meet environmental expectations but also improve amenity," Talacko says.

"Whilst we are making steady progress in relation to energy and carbon emissions from buildings, there has been much less emphasis on encouraging biodiversity and tackling the urban heat island effect.

"The Nature Based Cities initiative responds to a gap in the suite of tools currently used by the property development sector, which don't provide sufficient incentive, or recognition, for the integration of landscaping and greenery."

For apartment buyers, the shift is also changing the questions worth asking.

Rather than assuming a sustainable building will naturally include abundant green space, buyers are increasingly being encouraged to look beyond environmental ratings and ask what nature is actually being delivered. How much tree canopy will the development create? Has biodiversity been considered? Are landscaped spaces designed for people as well as appearance?

As Australia's cities continue to grow upwards and outwards, the next generation of sustainability may not simply be measured by lower emissions, but by how successfully developments bring nature back into everyday urban life.

What does it really mean for a building to be 'green'?

Housing Construction

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Probuild has been revealed as the nation’s most active construction company during 2016/17 in the HIA-CoreLogic Construction 100 Report 2016/17.
The report presents in-depth analysis of the engineering construction, non-residential building, and apartment sectors and ranks the largest 100 companies operating in these sectors.
Victoria-based Probuild has made the most of the apartment boom in Melbourne and Sydney as well as the demand for construction of mixed-used developments including luxury hotels to jump from fifth on the list last year to the top spot amongst Australia’s Construction 100.
The scale of the mining project downturn on the engineering construction side means that levels of expenditure have slowed for three consecutive years between 2014/15 and 2016/17.
The big news in the engineering sector is that in the second half of 2016/17 activity rose by 3.3 per cent compared with the first half of the year.
This is the most encouraging news from this sector for a number of years.
Lendlease held second spot on the Construction 100 for the second year in a row with contracts totalling $5.3 billion awarded during the 2016/17 year, predominantly for civil engineering work, community construction projects and commercial construction.
Multiplex ranked third with $5.14 billion worth of new contracts awarded.
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John Holland and CPB Contractors benefited from the boost in public sector investment in transport infrastructure in the major capital cities and ranked fourth and fifth on the Construction 100 respectively.
The changing mix of work within the construction sector is clearly evident amongst the activity of firms in the Construction 100.
The nation’s largest construction firms have proven highly capable of adapting their services to meet the demands of current economic conditions and deliver the projects that the market has required.
Looking ahead we expect that the impending slowdown in apartment building will be offset by further growth in public sector investment in infrastructure.
Business confidence is also showing signs of improvement which is a signal that demand for construction from the private sector could also strengthen.
This investment profile should ensure that the construction sector continues to be a significant driver of economic growth.
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j.ballantyne1990-6AQqhLzZaK

Australia’s top construction companies revealed

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GUEST OBSERVER
Consumer confidence: The Westpac/Melbourne Institute survey of consumer sentiment rose by 0.1 percent in January to 97.4. The confidence index is up 0.1 percent on a year ago.
Dwelling starts: Starts fell by 2.8 percent in the September quarter after falling by 7.2 percent in the June quarter. Building work done fell by 5.5 percent in the quarter to be up 1.4 percent on the year.
As at the September quarter, a record 218,297 homes were being built, up 12.1 per cent on a year ago.
In the year to September, dwelling starts were at record highs in NSW (70,326) and 79 percent above the decade average. In Queensland starts were at 21-year highs (49,939) and 36 percent above decade averages.
The consumer confidence figures have implications for finance providers, retailers, and companies dependent on consumer and business spending. Building &amp; building material companies are affected by dwelling starts including Boral, James Hardie, Adelaide Brighton, Brickworks, AV Jennings Limited, Devine Limited and Beacon Lighting.
What does it all mean?
The latest monthly reading on consumer sentiment suggests consumers are non-plussed about life. But the more timely Roy Morgan weekly survey suggest consumers are super chipper about the current environment. In addition the monthly consumer sentiment reading suggests that sentiment lifted by between 1.9 percent and 7.4 percent across the major capital cities, yet the overall reading only lifted by a sedate 0.1 percent. 
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So just how are consumers faring? The outcome is likely to be somewhere in the middle. Consumers are modestly upbeat and more importantly household finances remain in good shape. Interestingly the weekly and monthly consumer sentiment readings seem to agree on one key point - the measure on whether it is a good time to purchase a major household item? Well, it seems there is no time like the present, with both readings recording a four or five-month high.
Looking forward, a potential dampener to sentiment is likely to be the lift in petrol prices. However the stronger Australian dollar should help to offset that in coming weeks. The ongoing strength in sharemarkets should provide a degree of support to household confidence. Interestingly the measure of whether it was a good time to buy a major household item remains upbeat despite the latest fall.
What do the figures show?
Consumer confidence
The Westpac/Melbourne Institute index of consumer confidence rose by 0.1 percent in January to 97.4. The confidence index is up 0.1 percent on a year ago.
The current conditions index fell by 0.5 percent while the expectations index rose by 0.5 percent.
Three of the five components of the index rose in January:
<ul>
<li>The estimate of family finances compared with a year ago was down by 7.6 percent; </li>
<li>The estimate of family finances over the next year was up by 0.3 percent;</li>
<li>Economic conditions over the next 12 months was up by 2.5 percent;</li>
<li>Economic conditions over the next 5 years was down by 1.4 percent;</li>
<li>The measure on whether it was a good time to buy a major household item was up by 4.9 percent.</li>
</ul>
Gender &amp; demographics: Men (index reading of 102.9, up 5.2 percent) were still more optimistic than Women (99.6, up 2.8 percent). The sentiment index for young people fell by 0.6 percent to 119.3 in January. Across the other demographics: 25-44 years (index 99.3, down by 1.3 percent); 45 years plus (index 98.3, up by 9.5 percent). 
Housing outlook: A good time to buy a dwelling? The index was down 2 percent in the month to 100.9 and was down by 10.7 percent over the year.
States: NSW (103.8, up by 2.7 percent); Victoria (index 103.7, up 5.7 percent); Queensland (99.6, up 3.2 percent); Western Australia (95.2, up 7.4 per cent); South Australia (92.8, up 1.9 percent).
Dwelling starts
Dwelling starts (commencements) fell by 2.8 percent in the September quarter after falling by 7.2 percent in the June quarter. House approvals fell by 1.8 per cent and apartments fell by 0.7 percent. Work started on 229,295 new dwellings over the year to September, easing further from the record high of 232,018 dwellings in the year to March.
 
Across Australia, starts in the September quarter fell in six states/territories: NSW (up by 5.8 percent); Victoria (down by 9.6 percent); Queensland (up by 6.3 percent); South Australia (down by 20 percent); Western Australia (down by 13.6 percent); Tasmania (down by 0.6 percent); Northern Territory (down by 7.6 percent); and the ACT (down 39.6 percent).
In the year to September, dwelling starts were higher than the decade average in all the states &amp; territories except for South Australia (down 1 percent), Western Australia (down 3.5 percent), Tasmania (down 15 percent) and Northern Territory (down 12.6 percent). Starts were at record highs in NSW (70,326) and 79 percent above the decade average. In Queensland starts were at 21 year highs (49,939) and 36 percent above decade averages.
What is the importance of the economic data?
Westpac and the Melbourne Institute release the Index of Consumer Sentiment each month. According to Melbourne Institute: “The survey of consumer sentiment was first undertaken in 1973 and was conducted on a quarterly basis until 1976, a six-weekly basis from 1976 to 1986, and has been conducted monthly ever since.” Confident consumers may be more inclined to spend, especially on major items.
The Australian Bureau of Statistics releases data on dwelling commencements (starts) each quarter. The figures provide guidance on future construction activity. If construction begins on new houses or apartments, it signifies work for building trades.
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What are the implications for interest rates and investors?
 There are a few headwinds for consumer confidence. No doubt the lift in oil prices and the resulting lift in petrol prices does have a direct impact on household budgets. In addition, the ongoing rebalancing of the Australian economy away from mining to housing and uncertainty about future housing supply in Sydney, Melbourne and Brisbane will occupy policymaker discussions in coming months. Overall the Reserve Bank is comfortably on the sidelines looking to see how the economy evolves over the early part of 2017. 
Savanth Sebastian is an economist for <a href="https://www.commsec.com.au/" target="_blank">CommSec</a>.
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jchancellor-FAypfDUnLy

NSW leads national building boom: CommSec's Savanth Sebastian

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According to the Australian Bureau of Statistics (ABS) November 2016 building approvals data there were 17,569 houses and units approved for construction across the country over the month. 
Based on the seasonally adjusted series, the number of dwelling approvals rose by 7.0 percent over the month due to a substantial rebound in unit approvals.  Despite an increase in approvals in November, they are -4.8 percent lower over the year and are -18.6 percent lower than their peak in October 2015 when 21,588 houses and units were approved.
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In November 2016 there were 9,503 houses and 8,066 units approved for construction throughout the country. Over the month, house approvals fell by -0.4 percent while unit approvals increased 17.3 percent. 
Unit approvals tend to be lumpy and volatile, which goes a long way towards explaining the 17.3 percent increase in November following a -20.1 percent decline in September and -22.8 percent fall in October of last year. Year-on-year, houses approved for construction were -2.1 percent lower and unit approvals were down -7.8 percent. 
Over the current construction cycle, house approvals peaked at 10,649 in April 2015 and unit approvals peaked at 11,763 over the month of October 2015.  November 2016 house approvals were -10.8 percent lower than the April 2015 peak while unit appears have fallen more dramatically, down -31.4 percent from their October 2015 peak.
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Looking deeper into unit approvals by type, it becomes clear that the surge in new high-rise construction projects has slowed.  This data is split into three segments: townhouses, low-rise units (less than four storeys) and high-rise units (four storeys or higher). 
The above chart highlights the volatility in unit approvals and also shows that the recent plunge of unit approvals is being driven by the high-rise unit sector. With ongoing concerns about oversupply of high-rise units in certain inner city markets and slowing value growth for units, it seems that developers are responding by seeking fewer new high-rise unit approvals. Another interesting trend over the past year or so has been the steady upwards trend in townhouse approvals. The substantial increase in high-rise approvals over recent years has occurred at the expense of townhouse and low rise approvals. 
With the expected further slowing of high-rise unit approvals there is potential for a lift in townhouse approvals over the coming year.
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The two above charts show the proportion of dwelling approvals that were for units.  The data points to the fact that in most capital cities developers have recently slowed their submissions for unit building approvals. As a proportion of all approvals there have been some significant declines in unit approvals in Melbourne, Brisbane, Perth, Hobart and Darwin over the past six months.
The reality is that this is an appropriate response in most of these cities given how much unit construction has been taking place.
Hobart is the one exception where it could be argued that more unit construction is required, particularly given the booming tourism sector.  Sydney and Canberra have recorded no significant slowdown in unit approvals as a proportion of total approvals over recent months.  Sydney has been approving more units than houses for more than two decades where in most other capital cities the dominance of unit approvals over those for houses is a relatively new phenomena.
Unit approvals are trending lower, particularly for high-rise units, which is an appropriate response so late in the current construction phase. The reality is that at least initially, an increasing proportion of these units approved for construction may not be sold. There remains a substantial pipeline of construction work already underway which should keep residential builders busy for some time. 
Should, as we expect, approvals soften further and remain well below their recent heights over the coming years absent a pick-up in non-residential or infrastructure construction, there could be some headwinds for builders and associated businesses. 
Housing construction has been a significant driver of economic growth over recent years and a slowdown in this sector could also impact on economic growth over the coming years unless some other large industry segment can pick up the slack.  
Cameron Kusher is research analyst for CoreLogic. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>.
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Dwelling approvals bounce in November but don’t expect it to continue: Cameron Kusher

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GUEST OBSERVER
The September 2016 building approvals date, released earlier today by the ABS, shows some of the growing fears around the excess heat in the market for new apartments may be premature.
The data shows a massive turnaround in apartment approvals, from the strong growth recorded in the August data of 26.3 percent (year-on-year), to a reversal in the September data, to record a fall over 9.9 percent measured year-on-year.
Building approvals data has a tendency to be quite volatile when comparing results month by month, but this latest result is an example of how quickly the housing market can respond when market conditions change.
Talk of an emerging oversupply in inner-city apartments markets in Sydney, Melbourne and some parts of Brisbane has no doubt made developers and builders in these markets more cautious.
However, Master Builders would caution against being overly bearish on the prospects of inner-city apartment markets while auction clearance rates remain high, rents are growing and house prices continue to march forward.
On the government’s own estimates Sydney is projected to have a population of 6.4 million by 2036. On average, that would add 210,000 people to Sydney’s population each year, or pretty much the equivalent of the entire population of Hobart each and every year for the next twenty years.
Elsewhere, the RBA’s decision this week to keep interest rates on hold came with more jawboning of risks for the housing sector. While the rhetoric was more positive overall, particularly on the global economic outlook, there is a heightened level of concern around the impact a further reduction may have on house prices.
Master Builders agrees with the RBA’s sentiments.  While acknowledging the role interest rates have played in supporting a much needed boom in housing construction over the past couple of years, Master Builder would caution the Bank to carefully consider the impact that further reductions may have on some of Australia’s hotter housing markets in Sydney and Melbourne.
Matthew Pollock is national manager, housing, Master Builders Australia and can be contacted <a href="https://www.masterbuilders.com.au" target="_blank">here</a>.
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Fall in approvals points to peak in housing construction cycle

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GUEST OBSERVER
Population growth nationally remains strong but continues to trend lower, meanwhile dwelling construction is booming creating a much closer relationship between housing supply and demand.
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Demographic data for December 2015 was released by the Australian Bureau of Statistics (ABS). The data showed that the national population was estimated at 23.9 million persons, with the population having increased by 326,073 persons over the 2015 calendar year. The annual increase in population has fallen substantially from a peak of 459,504 persons over the 12 months to December 2008.
While population growth (ie housing demand) has slowed, dwelling construction has increased to record highs. Over the 12 months to December 215, there was a record-high 190,072 dwellings constructed nationally. 
With an increasing population, and the majority of growth coming from overseas migration, additional demand for housing is created. The charts published in this report look at the ratio of population growth to dwelling completions.  A few important things to note from this analysis:
<ol>
<li>The figures don’t take into consideration demolitions and homes constructed for non-permanent or semi-permanent occupation (previously estimated by the RBA at approximately 15 percent)</li>
<li>Dwelling completions data may include construction of temporary accommodation such as hotels or serviced apartments</li>
<li>An increase in population doesn’t necessarily create more demand for housing. For example a family having a baby may not create an immediate requirement for more housing while a new arrival from overseas is more likely to create additional housing demand.</li>
</ol>
The latest housing and occupancy costs research from the ABS showed that the average household sizes across each state and territory in June 2014 was: 2.6 persons in NSW, Vic, Qld and ACT, 2.4 persons in SA and Tas and 2.7 persons in WA and NT.
<h3>Ratio of population growth to dwelling completions</h3>
<a href="/images/2016/07/06/2016-07-04--nsw-qld-image1.jpg" target="_blank">Click to enlarge</a>
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If we look at the charts, over 2015 the ratios of population growth to dwelling completions have been recorded at: 2.4 in NSW, 1.9 in Vic, 1.6 in Qld, 1.0 in both SA and WA, 0.8 in Tas, 0.4 in NT and 1.3 in ACT. 
Based on these measures compared to the average household size it would appear that each state and territory is currently over-building however, there are some short-comings of this analysis as detailed above.  It is clear that the ratio compared to the long-run average implies that under-building is still taking place in NSW and Vic while over-building is occurring elsewhere.
Additionally, in most states, there has previously been a substantial undersupply of housing which will continue to overhang any overbuilding for a period of time.
Another thing to consider when looking at this analysis is the type of dwellings that are being constructed.  Units are becoming a much more prominent part of dwelling construction.  Units are often smaller and therefore likely to house fewer residents than a detached house which also has an impact on these figures.
Although this analysis doesn’t provide a definitive answer to whether too much construction is taking place it is clear that as population growth has slowed and dwelling construction has ramped-up there is now a much better relationship between housing supply and demand.  This is highlighted by the fact that in most states and territories there has been a sharp decline in the ratio of population growth to dwelling completions over recent years.
With many new dwellings under construction and even more approved to commence construction, developers should take heed of these figures and exercise caution when looking to undertake new projects.  As population growth trends lower and construction ramps up, housing shortages appear to be diminishing quite rapidly.
Cameron Kusher is research analyst for CoreLogic RP Data. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>.
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Dwelling completions boom as population growth slows: Cameron Kusher

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Since the start of 2015, Blue Sky, Goldman Sachs, Scape and Valparaiso and Student One have all entered the student accomodation market and have rapidly established pipelines, according to the latest research by Savills International.
Blue Sky have 2,632, Goldman Sachs, Scape and Valparaiso have 2,459 and Student One have 2,394.
The top 10 providers currently own a total of 15,498 beds and the pipeline of 14,205 white equates to circa 92% of the existing supply indicative of the strong focus on development during 2015.
<a href="https://publications.savills.com.au/studentaccommreport/?utm_source=PropertyObserver&amp;utm_medium=DigitalAdvert&amp;utm_campaign=CPOeNewsletterBanner-StudentAccommReport-8June2016&amp;utm_source=Property+Observer+List&amp;utm_campaign=3ddf619dc5-Commercial_Property_08_June_2016&amp;utm_medium=email&amp;utm_term=0_a523fbfccb-3ddf619dc5-" target="_blank">The research advised</a> average size of the owned operational properties is 337 beds and the average size of development properties in the pipeline is 530 beds.
Iglu, Urbanest and Valparaiso are owner / managers, with a total of 7,344 beds in operations and pipeline, this duplication distorts the total numbers in the table. 
<a href="/images/2016/05/31/Screen%20Shot%202016-05-31%20at%201.04.23%20PM.png" target="_blank">Click here to enlarge</a>
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Australian student accomodation top 10 providers: Savills Research

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Construction activity picked up over the quarter ended March 2016 from the same period last year, according to the latest Construction Market Movement Report (Q12016) from Cordell, which gives an overview of the health of the Australian construction industry. 
According to Cordell, which last year became a CoreLogic business, the report delivers a comprehensive overview of construction projects identified within Australia over the last 24 months across civil engineering, apartments and units, commercial, industrial, mining and community. 
For the March 2016 quarter, 4,302 projects entering the construction phase in comparison to 3,931 for the same time last year.
Pipeline activity is also up with 4,830 projects reported in March 2016, up from 4,597 for the same period last year with apartments and units the most active sector. There was $50 billion in pipeline activity compared to $27 billion for the same period last year.
However, deferrals rose with 411 projects put on hold compared to 375 for the same time last year. The value of deferred projects this quarter is $3.6 billion compared to $3.1 billion for the same time last year.
Abandonments too increased with 359 projects stopped for March 2016 compared to 320 previously. The value of abandonments is $1.2 billion this quarter which is unchanged from the previous year. 
Commenting on the Cordell report, CoreLogic spokesperson Greg Dickason said the overall results to the March 2016 quarter were positive with civil engineering projects in roads and infrastructure leading the way.
“While general pipeline activity is encouraging with 4,830 projects underway valued at around $50 billion, and largely dominated by apartments and unit developments, deferrals increased. Four hundred and eleven construction projects were placed on hold over the quarter compared to 375 in the March 2015 quarter. In addition, three hundred and seventy five projects were confirmed as abandoned in the March 2016 quarter compared to 320 for the March 2015 quarter,” Dickason said.
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Construction pipeline rose in Q1 of 2016, shows Cordell report

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Nido Apartments represents an offering of 12 apartments above the canopy in Brisbane’s prestigious Ascot by developers Definitive Developments.
On offer are Lapraik Street apartments that combines high quality and exclusive design with functionality in a desirable location.
Each two and three-bedroom apartment is set over two levels with full-width balconies designed to capture the views and rooftops from their position on the edge of Bartley’s Hill. 
Apartments all have two car parks, large communal garden, secured lift access and additional lockable storage.
Place projects are offering a limited selection of two bedroom, two bathroom and ensuite and three bedroom apartments with two bathrooms and ensuite.
The asking price for these apartments is between $760,000 and $975.000 through agent Wes Press of Place.
Construction commenced with completion expected late this year.
 
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Nido Apartments, Ascot construction underway

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GUEST OBSERVER
ABS figures show that new home building approvals faltered during the first month of 2016.
January 2016 was a rather weak month for new home building approvals, with both detached house approvals and those for multi-units falling back compared with December. 
During January 2016, new home building approvals declined by 7.5 percent. This comprised a 6.1 percent drop in detached house approvals and a reduction of some 9.1 percent in multi-unit approvals. Over the past year, approvals totalled some 231,752 which is 10.6 percent higher than the previous 12 month period and still very strong by historical standards. 
Towards the end of 2015, the residential building industry was hit by a number of unfavourable developments. The major banks increased their mortgage interest rates, credit conditions were tightened for domestic investors and the $5,000 foreign investor fee came into force. This has made it more difficult to deliver new housing supply and today’s figures seem to bear this out.
The HIA’s Housing Australia’s Future report warned last week of the major challenges in meeting Australia’s housing needs over the coming decades. It is therefore vital that policy settings and credit conditions become more focused on the consistent delivery of the required volume of new housing supply over the long term. We’re just not seeing this at the moment. 
During January 2016, total seasonally adjusted new home building approvals saw the largest increase in South Australia (+14.2 percent), followed by Western Australia (+7.2 percent) and Victoria (+2.9 percent). The volume of approvals fell in New South Wales (-22.9 percent), Queensland (-13.4 percent) and Tasmania (-11.1 percent). In trend terms, approvals saw a 9.4 percent decline in the Northern Territory and contracted by 11.4 percent in the Australian Capital Territory.
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Shane Garrett is senior economist for HIA and can be contacted <a href="https://hia.com.au/en/BusinessInfo/economicInfo/EcoGroup.aspx" target="_blank">here</a>.
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Building approvals stumble into 2016: HIA's Shane Garrett

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Australian housing finance approvals firmed in December, with the monthly volume of new home loans to owner-occupiers hitting a six-year high, according to latest ABS data, indicating that the pipeline of new home building was likely to remain strong during early 2016.
The number of owner-occupier loans for new homes rose by 1.8 percent in December, with a growth of 12.4 percent in loans for newly-constructed homes. 
Compared with a year earlier, total owner-occupier loans for the construction and purchase of new dwellings are 5.3 percent higher.
The ABS data showed 58,552 home loans were approved in December, up 2.6% from November, with the value of new home loans taken by property buyers rising 0.8% to $33.5 billion. 
“December’s new home lending figures are the best we’ve seen since November 2009, when a major government stimulus was underway,” noted Housing Industry Association senior economist Shane Garrett.
Mortgage Choice chief executive officer John Flavell said the last time more than 58,500 home loans were approved in one month was back in January 2008, and was a testament to the strength of the property market.
“The data shows that all parts of the market improved over the month of December. The number of dwelling commitments approved for the construction of new dwellings was up 1.8%, while the number of loans written for the purchase of new dwellings and the purchase of established dwellings was up by 12.4% and 2.1% respectively,” he said.
The number of first home buyer commitments as a percentage of total owner occupied housing finance commitments rose to 15.1% in December 2015, off an 11-year low of 14.9% in November 2015.
A rise in the proportion of first-time home buyers in the market in December as well as a jump in home loans being taken out by owner occupiers could indicate housing is becoming more affordable given softer conditions in property markets, said Amanda Watt, the head of banking business act.
“Reflecting greater home loan affordability, the average loan size for first home buyers dropped $6,400 to $348,100 between November and December while the average loan size for all owner occupied housing commitments fell $8,500 to $377,600. This drop in loan size has coincided with a slowing in property markets in most capital cities as indicated by falling auction clearance rates and, in some cases, falling median house prices," said Watt.  
The value of home loans taken by investors rose 0.6% to $11.6 billion, stabilising from a 19% drop between April and October but still down 13.6% on a yearly basis, noted Matthew Hassan in a post on Westpac’s website. 
Changes in lending criteria and borrowing rates for investor loans is indirectly boosting owner-occupier activity – although the bulk of the initial ‘switching’ effect seemed to come through between June and September, he added.
“So money continues to pour into property and much of it has recently come from owner occupiers following stricter prudential regulations on home loans given to investors. The data also reveals the staggering size of Australia's home loan industry. In December 2015, the value of outstanding home loans funded by banks and other authorised deposit-taking institutions totalled a record $1.46 trillion, made up of $931 billion in home loans to owner occupiers and another $528 billion to investors,” said Watt.
But while it was pleasing to see a spike in both the value and number of home loans written over the month of December, Mortgage Choice’s Flavell said the sudden surge in activity wasn’t altogether surprising.
“At Mortgage Choice, we know from our own data that December is a traditionally hot month in terms of home loan settlements, as Australians are keen to finalise their property plans before the New Year commences,” he said.
Moving forward, Flavell said he was confident that the property market would remain robust over the coming months.
During December 2015, the number of new home loans increased, in annual terms, most strongly in the Northern Territory (+29.3 percent), followed by New South Wales (+21.7 percent) and Victoria (+12.3 percent). New home lending volumes also rose in Queensland by4.0 percent, Lending volumes fell in Tasmania (-29.6 percent), Western Australia (-19.8 percent) and the Australian Capital Territory (-0.5 percent).
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