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

Joel Robinson

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

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

Sammut secures approval for debut Brisbane apartment development in Toowong

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

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

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

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

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

WM Residences fills gap in Mordialloc townhouse market

Housing Market

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Two official interest rate hikes and a slowdown in the Sydney property market were predicted in 2016 by David and Libby Koch who, when analysing predictions they made 2016, forecasted the property market this year will be 'tricky'.
In their latest column for News.com.au, the pair predicted the Sydney property market will slow in 2017.
"Sydney has slowed without crashing, Melbourne has slowed but still stronger growth than we expected, Hobart was better than we thought as was Canberra," they said.
"Perth was still pretty bad although we thought it would have turned."
In their current predictions for 2017 they noted the cost of money is set to change and the impact of rising interest rates (both official and bank induced) on the back of the US and European trends is hard to predict, but there will be a fallout.
"The expected big increase in new properties coming to market will tip the demand and supply balance more in favour of buyers," they said.
"Overall, the slowdown in property prices will continue for Sydney and Melbourne while Brisbane will take a bit of a hit as well.
"Darwin and Perth property declines look to be bottoming out while Adelaide, Canberra and Hobart will stay positive but flat.
"Up until the September quarter residential property prices rose in Melbourne (+6.9 percent), Hobart (+6.8 percent), Canberra (+5.5 percent), Sydney (+3.2 percent), Adelaide (+3.2 percent) and Brisbane (+3.1 percent), and fell in Darwin (-7.2 percent) and Perth (-4.0 percent).
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jonathanchancellor-7SQnKwU6yx

David Koch says residential property will be 'tricky' in 2017 

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Houses in Sydney are in a rising market among those in Canberra, Adelaide, Bathurst and Tamworth, according to Herron Todd White's Property Clock for December. 
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Sydney and Melbourne houses were at peak pricing in November.
In their latest report HTW state after a sustained period of strong growth, the final quarter of 2015 saw a softening residential market across many parts of the nation, with this trend expected to continue throughout Sydney in 2016.
"Despite those expectations, the market continued to see price growth throughout 2016, with double digit growth in a number of suburbs for both houses and units," HTW said.
"Auction clearance rates have recovered since the beginning of the year and are now consistently above 70 percent and 80 percent. 
"Some areas such as the inner west and eastern suburbs have had clearance rates regularly above 90 percent. 
"A major reason behind the increase in clearance rates and sale prices has been the reduced number of properties on the market and majority of properties going to auction rather than private treaty. The usual boom in the number of transactions taking place in spring has failed to live up to past experience.
"Agents have been unable to obtain the same amount of stock compared to 2015. This has caused congestion amongst competing buyers and agents are taking advantage of this. We have seen properties advertised with a price guide only to see prices jump further as they get closer to auction. Sometimes these properties are sold prior to auction for unjustifiable prices."
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The Sutherland Shire suburbs such as Gymea, Kirrawee and Miranda have been strong performers in the housing market according to HTW with Gymea has having growth rates of 10.3 percent in 2016, Kirrawee 4.5 percent and Miranda 7.3 percent (pricefinder.com.au).
The report said while these growth figures are not huge compared to 2015, these suburbs have performed stronger than others.
"A trophy house built in 2012 at 18 June Place, Gymea fetched $2.185 million and a house built in 2015 at 24 Rutherford Avenue, Burraneer sold for $3.3 million... these house sales are showing the strength of the market for quality properties.
"The suburbs which did not perform in 2016 are Engadine, Menai, Bangor and Alfords Point coming back around 2.2 percent (pricefinder.com. au).
"Suburbs such as Monterey and San Souci have seen houses under performing. Monterey house growth was 20.8 percent in 2015 compared to just 8.8 percent in 2016 and Sans Souci was 23.1 percent in 2015 compared to 9.1 percent in 2016. 
"On the eastern beaches, the suburb of North Bondi has been performing well with growth of 22.4 percent in 2016 and a median house price of $2.5 million compared to 2015 which was 13.1 percent growth and a median house price of $2.287 million.
"Lastly the popular city fringe suburb of Paddington has seen growth of 16 percent with a median house price of $2.03 million. The strong performance is an indication that the market has caught up from previous years as in 2015 the growth was 8.7 percent and median house price was $1.75 million and in 2014, growth was 3.8 percent and median house price was $1.61 million (pricefinder.com.au)."
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Sydney houses still a rising market: December 2016 HTW Property Clock

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The detached housing market has pushed New South Wales to a greater lead over Victoria in the HIA Housing Scorecard.
The scorecard ranks each states and territories on the performance of their respective housing market.
Shane Garrett, HIA senior economist, said the large states dominate the top rankings in the latest HIA Housing Scorecard, with NSW extending its lead in first place thanks to a remarkable performance on the detached house side.
“In second place on the HIA Housing Scorecard, Victoria was particularly strong for home renovations activity but also did well on the detached housing side.
“In this edition of the HIA Housing Scorecard, Queensland grabbed the bronze medal with a solid showing on the multi-unit side. 
“Outside of the Top Three, South Australia and the ACT occupied the mid-table positions. Western Australia, the Northern Territory and Tasmania are all neck-and-neck with declining market momentum on the HIA Housing Scorecard. 
“Probably the starkest result from today’s HIA Housing Scorecard concerns the volume of First Home Buyer loans, which have fallen well below their long-term average in each state and territory. The obstacles to housing affordability for first home buyers merit a national-led response."
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NSW tops latest HIA Housing Scorecard, first home buyer loans fall

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GUEST OBSERVER
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Overall lending conditions in the housing market have firmed as a result of the RBA’s policy easing in 2016. 
The strengthening in conditions, however, is primarily being driver by the investor segment. Lending to investors has accelerated over the past five months which coincides with the rate cuts of May and August. 
On the other hand, lending to owner-occupiers (O-Os) has been trending down as declining affordability bites. This leads up to conclude that investors are behind the recent acceleration in property prices in Sydney and Melbourne. 
O-Os: Lending growth to O-Os continues to ease. The 0.8 percent fall in the value of lending (excl refinancing) means that lending has fallen in two of the past three months. By number, there was a 1.6 percent increase in loans to O-Os over September. But the number of loans is 3.7 percent lower through the year.
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The average new loan size for an O-O edged higher in September and has been trending upwards over the past five months – consistent with firmer dwelling prices. 
Investors: Lending to investors has picked up since the RBA resumed cutting rates in May. Today’s ABS ‘flow’ data is consistent with the RBA’s ‘stock’ data which shows that the May and August rate cuts had a stimulatory impact on the housing market. As borrowing and deposit rates come down the rental yield on property becomes more attractive. As a result, lending to investors has lifted. 
We have argued for a while now that the RBA is underestimating the impact that policy easing is having on the housing market. From our vantage point activity in the housing market remains firm, as evidenced by strong auction clearance rates, rising dwelling prices and firm credit growth. We acknowledge that the volume of transactions and number of listings is lower than a year ago. 
But in our view that is not reflective of a lack of demand but rather less supply. It partly reflects high transaction cost in the property market which reduce liquidity. These transaction costs (largely stamp duty) rise when property prices increase. 
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Construction: Total lending for dwelling-related construction rose by 1.7 percent in September and is 6.1 percent higher through the year. This is consistent with the trend in residential building approvals. The approvals cycle looks to have peaked, however, and we expect lending for dwelling construction to ease in coming months. Lending for alterations and additions rose by 5.4 percent over the month and is up by 4.1 percent over the year. This is consistent with other indicators that show renovation activity is lifting. 
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States: The data on O-Os by State showed that annual growth in the number of loans was strongest in SA, Tas, and QLD. Loan growth lifted over the month in NSW and Vic but remains down in annual terms. An update on lending to investors by State will be in next Monday’s Lending Finance release. 
First home buyers: The number of loans to first home buyers decreased by 7.5 percent over the year to September. First home buyer accounted for just 13.1 percent of all dwellings financed over the month. 
Gareth Aird is economist at Commonwealth Bank and can be contacted <a href="https://www.propertyobserver.com.au/https://au.linkedin.com/pub/gareth-aird/14/790/905" target="_blank">here</a>.
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FHB numbers decrease as lending to investors continues to accelerate

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The most recent Statement on Monetary Policy (SOMP) suggested that several housing market indicators have eased.  
If the Reserve Bank of Australia (RBA) is more relaxed, then that's generally good news for homeowners.
There have also been loads of macro and share market analysts calling the peak of 'the market', whatever that means, but then again they do that every year, so I don't pay any attention to those. 
Certainly, the RBA's private sector credit growth figures show that housing credit is growing less quickly than it was. 
That said, housing credit is still growing at a sprightly enough +6.4 percent, and recent months have shown that investors are well and truly on the march again.  
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 <img src="/images/2016/11/08/RBA2.jpg" alt=""> <div>Another issue with the theme of slowing credit growth is that the figures cannot easily account for debt relating to off-the-plan purchases which have yet to settle.</div>
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<div>And there are lots of these!</div>
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<div>The figures to the end of June showed that there were more than 212,000 dwellings under construction, including about 150,000 units, apartments, and townhouses.</div>
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 <div class="separator">Without knowing how many of these dwellings have been bought by non-residents and how many are off-the-plan purchases it's impossible to say what the impact on credit growth will be for certain, but it may be non-trivial.</div>
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<div class="separator">Of course, there are about 9.75 million dwellings in Australia it's certainly not the RBA's job to set monetary policy for every housing market sector in Australia. </div>
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<div class="separator">However, another sticking point for the 'easing' theory is that inner Sydney's housing markets aren't easing.</div>
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<div class="separator">A simple look through the weekend's auction results tells you that prices have jumped again in recent weeks.</div>
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<div class="separator">Having copped oodles of stick for reporting double digit price growth in Sydney, CoreLogic may yet prove to be ahead of the pack, and see the other data providers follow suit. </div>
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<div class="separator">The eastern suburbs market is insanely strong (Paddington, Surry Hills, Bondi), suburbs on the city fringe to the inner west are clearly smoking records when viewed through a hedonic pricing lens, and the harbour city's lower north shore is on fire. </div>
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<div class="separator">Meanwhile, the northern beaches are probably the hottest suburbs of the lot.</div>
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<div class="separator">I don't really have the time or inclination to follow the suburbs further out too closely, so can't really comment with any authority on that.</div>
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<div class="separator">The high volume of apartments under construction will have an impact eventually, although mostly these are pre-sold. </div>
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<div class="separator">I also note in passing that Sydney's median auction price last week was $1,337,000. </div>
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<div class="separator">It's never been higher.</div>
 <div class="separator"><a href="/images/2016/11/08/RBA3.jpg" target="_blank">Click to enlarge</a></div>
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<div class="separator"><img src="/images/2016/11/08/RBA3.jpg" alt=""></div>
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PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>. 
His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.
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pwargent-M4siyDbqQY

Housing market indicators have eased

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With housing affordability now front and centre, it will be a very interesting meeting next week when the Housing Ministers meet to explain what they are doing to address these anomalies to the Treasurer Scott Morrison.
In NSW for example ,there are two very big property elephants about to enter the room in November and December that most don’t know about and they will have massive impacts in the clear majority of Sydney suburbs.
The first are the unprecedented reforms to strata laws which commence on November 30, 2016. Presently with strata properties a developer can’t acquire the entire block without the owners being in 100 per cent agreement, but from November 30, the 100 per cent has been reduced to 75 per cent. Now most who live in a house may well say – no big deal there. There is much, much more that home owners need to know, as property developers will start cherry-picking older style small strata blocks with the view to developing the entire site and they will be much higher than what is there now.
In late 2015, the Baird Government set up what is known today, as the Greater Sydney Commission (GSC), headed by Lucy Turnbull who has been tasked with delivering 680,000 new homes by 2031. Local councils have no say in what the GSC approve as they determine what was previously known as Local Environmental Plan (LEP) and Business Control Plan (BCP).Your traditional local council today, merely collects rates, issues parking fines, mows lawns and trims trees, the local planning side of the equation now rests with the GSC.
In December, the GSC will announce nine corridors across Sydney which have been approved for high – density developments. I’m told the nearest to me will be North Sydney/Crows Nest to get the ball rolling and the GSC is smart in that it won’t announce areas that are presently identified as no – go – zones with the lenders.
Now 680,000 new homes are clearly the biggest roll – out in NSW history where every suburb will have a role to play in some shape or form. This would explain why the NSW Government has just rubber stamped a $2 billion allocation to construct the much-awaited tunnel from the northern beaches to the Sydney CBD. Along all the major roads you can expect high-rise where previously local councils have protected historical architectural building merit, although that now appears to have been lost with the forming of the GSC.
Whilst it would be fair and reasonable to suggest that the major roads are the perfect fit for new high density developments I am much more concerned about the property developers cherry – picking the smaller apartment blocks as these are located off the main roads. You don’t change strata ownership laws where a block only requires 75 per cent approval now to sell to developers – for good reason without an explanation – which has not been forthcoming. These significant changes could see property developers running amok in suburbs across Sydney as the ownership ratio reduction reeks of property developers lobbying to get this through to make the acquisition process much easier.
The unknown part of this is that nobody (aside from developers and the GSC) know just how much of the air space above the current roof lines they will be permitted to subdivide?
Of course, the NSW Government is the major winner here as they will collect billions of dollars in stamp duty and land tax on a scale never seen before. This also all but guarantees a strong economy for NSW for quite some considerable time to come so that needs to be given fair consideration also.
The days of a single property owner holding out against a property developer are soon to be over for some of 2,000,000 people in NSW who reside in an apartment. We need to focus on the 680,000 new homes so allow me to put that into perspective – over the next 24 months approximately 230,000 brand new apartments in Sydney, Melbourne and Brisbane will be completed so that 230,000 is approximately just one third of what Sydney needs to produce over the coming 15 years.
This will affect everyone in NSW with Sydney copping the brunt of this building bonanza. So, when Scott Morrison meets with the Housing Ministers next week no doubt he will be smiling along with every property developer in NSW.
Keep an eye out for the GSC announcement in December which should be made public on Christmas eve or sometime after Christmas and before New Year’s Eve – as we all know how Governments work when it comes to handling and announcing such sensitive matters.
MOSMAN – 2088 Number of houses on the market this time last year – 75 Number of houses on the market last week – 63 Number of houses on the market this week – 59 Number of apartments on the market this time last year – 60 Number of apartments on the market last week – 47 Number of apartments on the market this week – 45
CREMORNE – 2090 Number of houses on the market this time last year – 6 Number of houses on the market last week – 9 Number of houses on the market this week – 7 Number of apartments on the market this time last year – 17 Number of apartments on the market last week – 23 Number of apartments on the market this week – 21
NEUTRAL BAY – 2089 Number of houses on the market this time last year – 6 Number of houses on the market last week – 8 Number of houses on the market this week – 5 Number of apartments on the market this time last year – 30 Number of apartments on the market last week – 23 Number of apartments on the market this week – 26
ROBERT SIMEON is a director of <a href="https://www.rwm.com.au/" target="_blank" title="RWM" rel="nofollow">Richardson Wrench Mosman and Neutral Bay</a> and has been selling residential real estate in Sydney since 1985. 
He has also been writing real estate blog <a href="https://www.rwm.com.au/news/" target="_blank" title="Virtual Realty News" rel="nofollow">Virtual Realty News</a> since 2000.
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robertsimeon-hRNTwJyXkQ

Sydney has a new property face – you’ll be either happy or angry

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GUEST OBSERVER<img src="file:///page1image20256" alt="page1image20256" width="100.920000" height="0.959990"><img src="file:///page1image20680" alt="page1image20680" width="0.959990" height="0.959990"><img src="file:///page1image20840" alt="page1image20840" width="143.210000" height="0.959990"><img src="file:///page1image21000" alt="page1image21000" width="289.249990" height="0.959990"><img src="file:///page1image21760" alt="page1image21760" width="143.930000" height="0.959990">
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Total private credit posted another solid result in September, led by expansion in the housing sector. Of note is the pickup in investor credit, where growth has been accelerating over the past six months. 
Click to enlarge
<img src="/images/2016/11/01/Screen%20Shot%202016-11-01%20at%209.29.21%20AM.png" alt="">
Combined with strength in other indicators, this suggests the housing market remains in good shape.
Housing credit expanded a steady 0.5 percent m/m in September, in line with the trend so far this year. Investor credit rose a solid 0.6% reflecting the recent strength in investor finance approvals after last year’s regulatory-induced slowdown.
<a href="/images/2016/11/01/Screen%20Shot%202016-11-01%20at%209.31.06%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/11/01/Screen%20Shot%202016-11-01%20at%209.31.06%20AM.png" alt="">
This is the strongest growth for the segment since August 2015, and provides further evidence (along with the recent pickup in house prices and auction results) that sentiment in the housing market remains positive.
<a href="/images/2016/11/01/Screen%20Shot%202016-11-01%20at%209.32.09%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/11/01/Screen%20Shot%202016-11-01%20at%209.32.09%20AM.png" alt="">
Business credit posted a mild increase in September, but growth continues to slow. This is in line with the ongoing slowdown in new finance approvals (Figure 2), and is likely to remain the case in coming months. Meanwhile, personal credit contracted for the 10th month in succession, and now sits 1.3 percent lower than a year ago.
<a href="/images/2016/11/01/Screen%20Shot%202016-11-01%20at%209.33.34%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/11/01/Screen%20Shot%202016-11-01%20at%209.33.34%20AM.png" alt="">
Although consumer confidence sits at elevated levels and household consumption is still ticking along, individuals appear cautious of taking on new (non-housing related) debt. 
Felicity Emmett co-head of Australian economics, ANZ Research and can be contacted <a href="https://www.anz.com/corporate/research/" target="_blank">here</a>.
Daniel Gradwell is economist, ANZ and can be contacted <a href="https://www.anz.com/corporate/research/" target="_blank">here</a>.
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jchancellor-FAypfDUnLy

Australian housing credit still rising, led by investors: ANZ

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GUEST OBSERVER
Residex has issued its latest non-revised growth in median values chart.
These figures suggest the Australian house market grew 1.63 percent in the September quarter.
Growth was driven almost entirely by a strong surge of 1.63 percent in the month of September, off the back of a slight decline in August. Annual performance of Australian houses was 3.31 percent, as opposed to 7.2 percent in the previous year.
Similarly, the median non-revised unit value across Australia experienced 1.27 percent growth in the September quarter, with 1.17 percent growth in the month of September alone.
Unit values across Australia increased 3.96 percent.
Table 1: September 2016 Median Value Index
<a href="/images/2016/10/31/Screen%20Shot%202016-10-31%20at%208.57.50%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/31/Screen%20Shot%202016-10-31%20at%208.57.50%20AM.png" alt="">
 
Source: Residex
While the monthly figures are relatively volatile, annual growth shows a more distinct trend. Graph 1 plots historical annual growth rates for the median Australian house and unit values.
Graph 1: Residex Non-Revised Median Values – Historical Growth of Australian Houses and Units
<a href="/images/2016/10/31/Screen%20Shot%202016-10-31%20at%208.59.01%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/31/Screen%20Shot%202016-10-31%20at%208.59.01%20AM.png" alt="">
Source: Residex
Graph 1 suggests that the aggregated housing market peaked in 2014, though it has since had a very slow decline relative to past growth cycles. Growth in dwelling markets is likely to have been sustained by the four cash rate cuts that have taken place since the peak of the most recent cycle.
Country NSW houses had the highest value growth in the year to September at 7.41% in capital gains. This figure was down on the previous year’s growth of 9.94%, suggesting that regional NSW is now following the downswing in the Sydney market.
Spillover into the regional NSW market was expected as those who were priced out of Sydney during the recent housing boom (in which the median Sydney dwelling grew 33% between 2013 and 2016) sought more affordable properties in which to live or invest.
Regional areas of NSW also currently provide higher rental yields for investors. Residex median rent estimates remained virtually unchanged in Australian houses and units. The strongest surge in rents was in ACT units and Hobart and Tasmanian houses, while resource market rents continued to decline. The overall subdued growth in rents is likely due to an increase in investor activity, which has potentially increased the stock of rental properties.
Graph 2 displays the annual change in dollar values of rents for the past 10 years, alongside ABS dollar values of loans taken out by investors at each month. From 2013, the uptick in investor lending seemed to have a more dramatic impact on units. The second surge from late 2015 is also likely to dampen rent growth in units.
Graph 2: Annual Change in Residex Median Rent vs ABS Dollar Value of Investor Loans
<a href="/images/2016/10/31/Screen%20Shot%202016-10-31%20at%209.00.06%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/31/Screen%20Shot%202016-10-31%20at%209.00.06%20AM.png" alt="">
Source: Residex
Given that most Australian markets follow the Sydney growth cycle at a lag, it is tempting to aggregate our markets and say that Australia as a whole is well into the downswing phase of the growth cycle, and some moderate adjustments may be expected over the course of 2017.
However, Australia’s smaller, resource based markets were thrown into a correction following resource price shocks. They cannot be amassed with the rest of Australia’s housing market movements, and it is increasingly difficult to place them in traditional economic cycles.
The energy commodity price index surmises dramatic movements in what makes up approximately 30% of Australian exports: a 70% decline between June 2014 and January 2016, followed by a 41% recovery between the beginning of 2016 and September.
Graph 3 plots the monthly commodity price index changes against monthly trend capital growth in Perth and Darwin non-revised median values. The commodity price index seems to have a lead lag effect on growth, particularly in Darwin where the dwelling market is small, reducing the severity of declines.
Graph 3: Commodity Price Index versus Monthly Trend Growth in Perth and Darwin
<a href="/images/2016/10/31/Screen%20Shot%202016-10-31%20at%209.01.09%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/31/Screen%20Shot%202016-10-31%20at%209.01.09%20AM.png" alt="">
 
Source: Residex
Unfortunately, these commodity price increases are not representative of a cyclical recovery in resources, but was more likely the result of severe weather conditions in China which temporarily limited the supply of coal and steel, structural limits to coal supply in Australia, and OPEC negotiations which saw a spike in the price of oil. While this may temporarily restore confidence in resource dwelling markets, Perth and Darwin are still in a correction period.
With 1.3 percent inflation at the September quarter up slightly from the 1% in the previous quarter, the RBA may have room to leave rates on hold. A steady cash rate in the current climate is likely to see a steady fall in growth rates across Australian dwelling markets, with small, niche markets such as Hobart offering promising fundamentals for nearer term growth.
Eliza Owen is the market analyst for Onthehouse.com.au. She can be contacted <a href="https://www.onthehouse.com.au/" target="_blank">here.</a>
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Australian house market grew 1.63 percent in September quarter: Eliza Owen

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Sydney has lived with an affordability ratio in the high range for a decade and a half, without dire things happening, Phil Ruthven, the founder of IBISWorld recently noted.
Ruthven, recognised as one of Australia’s foremost business strategists and futurists, agreed that Sydney prices seem to be well over trend compared with Melbourne.
He concludes that although the Sydney economy and that of NSW are doing well - "indeed the best in the nation" - that it may not protect it from a dwelling price correction in the year or so ahead, or a longish period of prices flat-lining until incomes catch up to restore equanimity.
He told readers of <a href="https://cuffelinks.com.au/" target="_blank">CuffeLinks</a> website that Australia’s economy is not threatened by its world-leading dwelling prices.
Sydney has "lived with an affordability ratio in the high range (3½-4 times household incomes) for a decade and a half, without dire things happening."
"Yes, Australia’s household debt (mainly mortgage debt) as a share of GDP is one of the highest in the world, but manageable.
"And our corporate and government debt as a share of GDP are among the lowest, if not actually the lowest.
"Overall, we are not living too far above our means compared with most other developed nations."
But he signals Sydney as the stand-out loner among our capital cities.
<a href="/images/2016/10/20/PR-Figure5-211016-768x559.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/20/PR-Figure5-211016-768x559.png" alt="">
Sydney is the odd-one-out given its prices are so far ahead of the second priciest market Melbourne. The two charts below suggest the degree to which Sydney prices seem to be well over trend compared with Melbourne.
<a href="/images/2016/10/20/PR-Figure6-211016-768x573.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/20/PR-Figure6-211016-768x573.png" alt="">
<a href="/images/2016/10/20/PR-Figure7-211016-768x573.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/20/PR-Figure7-211016-768x573.png" alt="">
He noted the difference was even more marked when comparing just apartments.
<a href="/images/2016/10/28/PR-Figure1-211016-768x534.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/28/PR-Figure1-211016-768x534.png" alt="">
But he noted Sydney had been under-supplied for nearly a decade, whereas Melbourne had gone into overdrive, leaving Sydney over the past year a sellers-market (prices over-trend by 12-13%) and Melbourne the opposite: a buyers-market, with prices 7-8% under-trend.
He concluded that the indications are that price growth is abating as we head into 2017. 
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j.ballantyne1990-6AQqhLzZaK

Futurist Phil Ruthven on whether the housing market is in bubble territory

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By the end of the June 2016 quarter, there were 212,036 houses and units under construction nationally, consisting of 61,350 houses and 150,686 units; the number of houses under construction fell -3.6 percent and there were -2.1 percent fewer units under construction, according to CoreLogic's latest monthly market report.
The data also showed that although the number of houses and units under construction is lower, historically, they remain at exceptionally high levels.
An analysis of the ABS completion and commencement data by CoreLogic research analyst Cameron Kusher shows that more dwellings were completed over the June 2016 quarter than were completed.
June quarter activity snapshot:
• 29,866 houses and 22,680 units commenced construction compared to 32,207 houses completed and 25,893 units completed.
• The number of houses commenced rose 18.0% over the quarter while unit commencements were down -29.2% and at their lowest level since the December 2014 quarter.
• Quarterly completions totalled 32,207 houses and 25,893 units were completed representing quarterly increases of 39.2% and 71.3% respectively.
<a href="/images/2016/10/13/Quarterly%20number%20of%20houses%20and%20units%20under%20construction%20National.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/13/Quarterly%20number%20of%20houses%20and%20units%20under%20construction%20National.jpg" alt="">
According to Mr Kusher it was the highest number of unit completions on record over the quarter and 22.1% higher than the previous record high.
He said, “While the data shows rising completions, and given the large pipeline of dwellings under construction, we should expect quite high volumes of completions over the coming quarters.”
“At the end of the June 2016 quarter there was also a record-high number of dwellings which had been approved for construction but hadn’t yet commenced. Nationally, 39,359 dwellings were approved but not commenced, up 15.6% from the previous quarter. This is split between 9,185 houses and a record-high 29,713 units which had yet to commence. Over the past few years there has been a steady upswing in the number of units approved for construction but not commenced and we anticipate that this trend will continue.”
Focusing on state and territory data on houses and units under construction clearly shows where supply of new housing has ramped- up.
The 61,350 houses currently under construction were split between: 16,861 in NSW, 18,861 in Vic, 9,062 in Qld, 4,516 in SA, 9,826 in WA, 1,289 in Tas, 325 in NT and 611 in ACT. The number of houses under construction was lower over the quarter in NSW, Vic, WA, Tas and NT and higher elsewhere. In WA the number of houses under construction is at its lowest level since September 2012 and in NT they are at their lowest level since June 2013.
<a href="/images/2016/10/13/House%20construction.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/13/House%20construction.jpg" alt="">
The split across the states and territories for the 150,686 units under construction at the end of June 2016 was: 55,682 in NSW, 46,676 in Vic, 31,070 in Qld, 3,386 in SA, 8,396 in WA, 335 in Tas, 751 in NT and 4,390inACT. Qld, SA and ACT were the only states and territories to have a greater number of units under construction over the quarter.
Qld currently has a record-high number of units under construction while in WA units under construction were at their lowest level since June 2014, in Tas they were at their lowest level since March 2014, in NT they were at their lowest level since September 2011 and in ACT they were at their highest level since September 2012.
<a href="/images/2016/10/13/Units%20construction.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/13/Units%20construction.jpg" alt="">
 Mr Kusher said, “Although commencements and the number of houses and units under construction were lower over the June quarter they still remain at high levels on an historic basis.”
“With a significant amount of housing due to be built over the coming years however, we anticipate that the trend towards a lower proportion of approved stock reaching commencement to continue as a mature construction phase makes it more difficult for developers to achieve sufficient presales to progress to construction.
“Furthermore, a number of these approved developments are probably being shopped for sale and therefore won’t necessarily be constructed during this current phase.”
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