<p>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.</p>

<p>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;</p>

<p>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;</p>

<p>“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;</p>

<p>[smartcode_project:default project_id=110291 project_image_fid=302785]</p>

<h2>Affordable product leads, premium demand remains resilient</h2>

<p>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;</p>

<p>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;</p>

<p>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.</p>

<p>Jual (Shenton Park, Celsius Property) also posted a strong quarter with 28 sales, reaching 39% sold in one quarter.</p>

<p>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;</p>

<p>[smartcode_project:default project_id=148957 project_image_fid=364102]</p>

<h2>Prices underpinned by costs, and the delivery risk is growing</h2>

<p>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.</p>

<p>David Cresp said a growing challenge for private Build‑to‑Sell developers is simply securing a builder in the current environment.</p>

<p>“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;</p>

<p>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.</p>

<p>[smartcode_project:default project_id=108869 project_image_fid=317905]</p>

<h2>Supply: improving later, but still constrained, and Perth lags eastern benchmarks</h2>

<p>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;</p>

<p>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;</p>

<p>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”.</p>

<p>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;</p>


Joel Robinson

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

<p><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.</p>

<p>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.</p>

<p>Sammut Director Julian Sammut said the group had been actively searching Brisbane for several years before identifying Toowong as the right fit.</p>

<p>“Brisbane was the right step for Sammut,” Sammut said.</p>

<p>“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.”</p>

<p><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" /></p>

<p>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.</p>

<p>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.</p>

<p>“We are DA approved now which is very exciting,” Sammut said.</p>

<p>“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.”</p>

<p><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" /></p>

<p>Bureau^proberts said the design responds to Toowong’s evolving urban character, balancing contemporary apartment living with the area’s established residential identity.</p>

<p>“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.</p>

<p>The architecture practice said the project’s form was shaped by its riverfront setting, flood considerations, neighbouring building scales, and view corridors.</p>

<p>“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.”</p>

<p>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.</p>

<p>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.</p>


Sammut secures approval for debut Brisbane apartment development in Toowong

<p>Developer Lanevick is heading back into Sydney’s apartment market after focusing more heavily on the luxury townhouse and terrace sector in recent years.</p>

<p>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.</p>

<p>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.</p>

<p>“Traditionally it’s been difficult for people in that market to downsize because there just hasn’t been the right product available,” Maroun said.</p>

<p>“We’re targeting buyers who might have 30 to 40 per cent of their house value sitting in the bank after downsizing.</p>

<p>“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.”</p>

<p>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.</p>

<p>“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.”</p>

<p>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.</p>

<p>“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.”</p>

<p>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.</p>

<p>“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.</p>

<p>Maroun said Lanevick saw a first-mover advantage within the precinct as planning controls continue to evolve to accommodate greater housing density.</p>

<p>“We think there’s a real opportunity there that hasn’t really been serviced properly yet,” he said.</p>

<p>“There’s going to be a broader evolution of the whole Gladesville village precinct over time, particularly with more activation and mixed-use outcomes.”</p>

<p>The Venus Street proposal will include a commercial and retail component at ground level designed to contribute to that evolving streetscape activation.</p>

<p>“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.</p>

<p>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.</p>

<p>&nbsp;</p>


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

<p>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.</p>

<p>The New York-based investor has focused his firm, GreenPoint Partners, on addressing the supply shortage hitting middle market housing in Australia.</p>

<p>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.</p>

<p>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.</p>

<p>“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.</p>

<p>“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.”</p>

<p><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" /></p>

<p>GreenPoint Partners brings years of experience assembling and scaling real estate operating businesses across major markets. And Green sees a big opportunity in Australia.</p>

<p>“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.”</p>

<p>Green said being a builder-developer would give the company the capacity and flexibility it required to deliver reasonably-priced homes.</p>

<p>“We want it to be at that attainable level; not super high end luxury but at that attainable level,” he said.</p>

<p><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" /></p>

<p>&nbsp;</p>

<p>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.</p>

<p>Green praised local policy settings.</p>

<p>“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.”</p>

<p>One Living is also&nbsp;looking at high-density projects and could take on more institutional funding in the future.</p>

<p>“The way we will be able to achieve economies of scale is through size,” Green added.</p>


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

<p>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.</p>

<p>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.</p>

<p>Projects by Buxton Director Heath Thompson, who is selling WM Residences, says the townhouses x that perfect middle ground be</p>

<p data-end="683" data-start="511">"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.</p>

<p data-end="882" data-start="690">"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."</p>

<p data-end="882" data-start="690">[smartcode_project:default project_id=134646 project_image_fid=6109]</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>[smartcode_project:default project_id=134646 project_image_fid=6110]</p>

<p>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.</p>

<p>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.</p>

<p>[smartcode_project:default project_id=134646 project_image_fid=6116]</p>

<p data-end="247" data-is-last-node="" data-is-only-node="" data-start="0">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.</p>

<p>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.</p>

<p>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.</p>

<p>[smartcode_project_cta:default project_id=134646]</p>


WM Residences fills gap in Mordialloc townhouse market

Housing Market

<html><body>
<p>Estate agent John McGrath said there were signs listings were returning to more normalised levels heading into the busy spring period.</p>
<p>He said it should "take the sting" out of a rampant housing market in Sydney.</p>
<p>"I forecast 6-8 per cent growth in Sydney house prices this year. We've seen the majority of that already so I see very little increase in prices going forward," he told Fairfax Media</p>
<p>"I think there will be more significant growth in prices in the big regional locations like the Central Coast, Wollongong and Newcastle."</p>
<p> John McGrath estimated Chinese buyers numbers were down by half compared with a year ago, which he said was "disappointing, but not surprising". </p>
<p>But he said there had been an increase in buyers from other parts of Asia including Vietnam, Indonesia and India.</p>
<p>Estate agent John McGrath announced yesterday he is stepping away from the daily operations of the recently listed McGrath group.</p>
<p> </p>
<p class="p1"><span class="s1"><em>For more real estate traps and tips visit </em><a href="https://realestatetraps.com.au/"><span class="s2"><em>realestatetraps.com.au</em></span></a></span></p>
</body></html>

j.ballantyne1990-6AQqhLzZaK

John McGrath tips 6 percent price growth for Sydney house prices

<html><body>
<p>The Australian Government has given The University of Sydney and Lendlease a $3 million grant to undertake a collaborative research project to develop multi-storey housing solutions.</p>
<p>The five year industry-led project received the funding to develop and build prototype housing solutions that use high-tech, renewable materials and advanced manufacturing process.</p>
<p>Lendlease Property CEO Kylie Rampa said the demand for affordable and diverse housing is calling for new housing solutions from industry.</p>
<p>“We aim to bring to market an innovative housing system that is design-led, which will help address affordability issues, while developing advanced manufacturing technologies and techniques for future housing construction."</p>
<p>“The products and industry processes stemming from the project aim to create new jobs, skills, technologies and potentially export opportunities for prefabricated housing to meet the sophisticated needs of homebuyers and builders,” said Kylie Rampa. </p>
<p>University of Sydney associate professor Mathew Aitchison said that the project presents an enormous opportunity to bring innovation to the residential construction market, which has remained largely unchanged in the last 100 years. </p>
<p>“Despite major advances in other manufacturing sectors, innovation in residential construction is lagging.</p>
<p>"This project seeks to drive efficiency and safety benefits and boost Australia’s competitiveness internationally, where we have seen a notable increase in advanced manufacturing in building over the past decade," he said.</p>
<p>“We will focus on developing multi-storey prototype houses that can be adapted for manufacture and customised project to project.</p>
<p>"At the same time, we are looking at ways to reduce risk and waste, while increasing the efficiency, safety, quality, sustainability and diversity of market-ready housing."</p>
<p>The project will develop a range of solutions for the multi-storey housing market that address increasing urban density and residential market demands.</p>
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Research grant awarded to manufacture multi-storey houses

<html><body>
<p>New REIV data reveals it is still possible for buyers to purchase homes in million dollar suburbs for less than seven-figures – as two-bedroom homes offer an entry point across Melbourne with savings of more than $500,000. </p>
<p>For $929,000 buyers can secure a two-bedroom home in Elsternwick - almost $650,000 less than the suburb’s overall median house price of $1.5 million. </p>
<p>Ivanhoe buyers can secure a smaller home for about $475,000 less than the overall median house price in the suburb.</p>
<p>Buyers can also purchase smaller homes in Essendon, Moonee Ponds and Caulfield South for about $400,000 less than the suburb median. </p>
<p>REIV CEO Geoff White said two-bedroom homes offer a more affordable option in many of Melbourne’s most desirable suburbs. </p>
<p>“These are leafy suburbs where buyers can live alongside their million-dollar neighbours on a boutique budget,” he said.</p>
<p>He added two-bedroom homes are experiencing solid price growth in many of these suburbs.</p>
<table class="t1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td class="td1" valign="middle">
<p class="p2"> </p>
</td>
<td class="td1" valign="middle">
<p class="p2"> </p>
</td>
<td class="td1" valign="middle">
<p class="p3"> </p>
</td>
<td class="td1" colspan="2" valign="middle">
<p class="p3"> </p>
</td>
</tr>
<tr>
<td class="td1" valign="middle">
<p class="p4"><strong>Suburb</strong></p>
</td>
<td class="td1" valign="middle">
<p class="p4"><strong>IMO</strong></p>
</td>
<td class="td1" valign="middle">
<p class="p4"><strong>Median House Price (June 16)</strong></p>
</td>
<td class="td1" valign="middle">
<p class="p4"><strong>2-Bedroom Median Price (June 16)</strong></p>
</td>
<td class="td1" valign="middle">
<p class="p4"><strong>Price Differential </strong></p>
</td>
</tr>
<tr>
<td class="td1" valign="middle">
<p class="p4">ELSTERNWICK</p>
</td>
<td class="td1" valign="middle">
<p class="p4">inner</p>
</td>
<td class="td1" valign="middle">
<p class="p5">$1,577,500</p>
</td>
<td class="td1" valign="middle">
<p class="p5">$929,000</p>
</td>
<td class="td1" valign="middle">
<p class="p6">-$648,500</p>
</td>
</tr>
<tr>
<td class="td1" valign="middle">
<p class="p4">IVANHOE</p>
</td>
<td class="td1" valign="middle">
<p class="p4">inner</p>
</td>
<td class="td1" valign="middle">
<p class="p5">$1,395,000</p>
</td>
<td class="td1" valign="middle">
<p class="p5">$921,000</p>
</td>
<td class="td1" valign="middle">
<p class="p6">-$474,000</p>
</td>
</tr>
<tr>
<td class="td1" valign="middle">
<p class="p4">ESSENDON</p>
</td>
<td class="td1" valign="middle">
<p class="p4">inner</p>
</td>
<td class="td1" valign="middle">
<p class="p5">$1,377,000</p>
</td>
<td class="td1" valign="middle">
<p class="p5">$912,000</p>
</td>
<td class="td1" valign="middle">
<p class="p6">-$465,000</p>
</td>
</tr>
<tr>
<td class="td1" valign="middle">
<p class="p4">MOONEE PONDS</p>
</td>
<td class="td1" valign="middle">
<p class="p4">inner</p>
</td>
<td class="td1" valign="middle">
<p class="p5">$1,265,000</p>
</td>
<td class="td1" valign="middle">
<p class="p5">$820,000</p>
</td>
<td class="td1" valign="middle">
<p class="p6">-$445,000</p>
</td>
</tr>
<tr>
<td class="td1" valign="middle">
<p class="p4">CAULFIELD SOUTH</p>
</td>
<td class="td1" valign="middle">
<p class="p4">inner</p>
</td>
<td class="td1" valign="middle">
<p class="p5">$1,388,000</p>
</td>
<td class="td1" valign="middle">
<p class="p5">$946,500</p>
</td>
<td class="td1" valign="middle">
<p class="p6">-$441,500</p>
</td>
</tr>
<tr>
<td class="td1" valign="middle">
<p class="p4">PORT MELBOURNE</p>
</td>
<td class="td1" valign="middle">
<p class="p4">inner</p>
</td>
<td class="td1" valign="middle">
<p class="p5">$1,380,000</p>
</td>
<td class="td1" valign="middle">
<p class="p5">$955,000</p>
</td>
<td class="td1" valign="middle">
<p class="p6">-$425,000</p>
</td>
</tr>
<tr>
<td class="td1" valign="middle">
<p class="p4">ASCOT VALE</p>
</td>
<td class="td1" valign="middle">
<p class="p4">inner</p>
</td>
<td class="td1" valign="middle">
<p class="p5">$1,141,000</p>
</td>
<td class="td1" valign="middle">
<p class="p5">$800,000</p>
</td>
<td class="td1" valign="middle">
<p class="p6">-$341,000</p>
</td>
</tr>
<tr>
<td class="td1" valign="middle">
<p class="p4">WILLIAMSTOWN</p>
</td>
<td class="td1" valign="middle">
<p class="p4">inner</p>
</td>
<td class="td1" valign="middle">
<p class="p5">$1,155,000</p>
</td>
<td class="td1" valign="middle">
<p class="p5">$815,000</p>
</td>
<td class="td1" valign="middle">
<p class="p6">-$340,000</p>
</td>
</tr>
<tr>
<td class="td1" valign="middle">
<p class="p4">RICHMOND</p>
</td>
<td class="td1" valign="middle">
<p class="p4">inner</p>
</td>
<td class="td1" valign="middle">
<p class="p5">$1,222,500</p>
</td>
<td class="td1" valign="middle">
<p class="p5">$970,500</p>
</td>
<td class="td1" valign="middle">
<p class="p6">-$252,000</p>
</td>
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<p class="p4">ST KILDA</p>
</td>
<td class="td1" valign="middle">
<p class="p4">inner</p>
</td>
<td class="td1" valign="middle">
<p class="p5">$1,190,000</p>
</td>
<td class="td1" valign="middle">
<p class="p5">$976,000</p>
</td>
<td class="td1" valign="middle">
<p class="p6">-$214,000</p>
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<p>Property Observer found this two bedroom home in Elsternwick, 30 Ross Street (below), on the market for between <a href="https://www.realestate.com.au/property-house-vic-elsternwick-123290710" target="_blank">$900,000 and $990,000</a>. </p>
<p><img src="/images/2016/08/11/700_elsternwick.jpg" alt=""></p>
<p>Property Observer found a two bedroom home in Ivanhoe, <a href="https://www.realestate.com.au/property-house-vic-ivanhoe-123302402" target="_blank">24 Dalveen Road</a> (below).</p>
<h1><span><img src="/images/2016/08/11/700_ivanhoe.jpg" alt=""></span></h1>
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jonathanchancellor-7SQnKwU6yx

The two bedroom house option - Melbourne suburb guide

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<div>Measures taken to slow the housing market in 2015 did their job effectively, largely by restricting the amount that people could borrow.</div>
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<div>Although there have been two interest rate cuts since May - a valedictory "double tap" from Governor Stevens, if you will - serviceability calculations continue to be assessed at a more stringent level.</div>
<div> </div>
<div>As a result borrowers can generally borrow little more than was the case before the most recent salvo of easing.</div>
<div> </div>
<div>This was to some extent reflected in the Housing Finance figures for June, released by the ABS today following a troublesome Census night website crash.</div>
<div> </div>
<div>Although the average loan size has been increasing steadily again from $352,200 to $360,100 since February, this figure remains below the peak of $382,300 seen in November last year. </div>
<div> </div>
<div>And it's a similar story for first homebuyer loan sizes. </div>
<br><a href="/images/2016/08/11/A2.jpg" target="_blank">Click to enlarge</a>
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<img src="/images/2016/08/11/A2.jpg" alt=""><br><br><div>At the state level, the first homebuyer loan sizes figures show the impact of tighter serviceability calculations.</div>
<br><div class="separator"><a href="/images/2016/08/11/A1.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"><img src="/images/2016/08/11/A1.jpg" alt=""></div>
<strong><span style="text-decoration: underline;"><br></span></strong><strong><span style="text-decoration: underline;">Total finance</span></strong><br><br><div>The net effect of this is that although trend total monthly housing finance has also now been rising again for the past few months - back up to well above $32 billion - the total value of commitments for now remains below the peak of $32.7 billion seen in June last year.</div>
<div> </div>
<div>Investor lending was the main target of the macroprudential crackdown, as you can see in the chart below. </div>
<div> </div>
<div>With the speed of investor credit growth now only about half of the arbitrary 10 per cent "speed limit", investor lending has now been trending up again for the past six months, albeit at a far less frantic pace than seen previously.</div>
<br><div class="separator"><a href="/images/2016/08/11/A3.jpg" target="_blank">Click to enlarge</a></div>
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<br><strong><span style="text-decoration: underline;">Homebuyers return</span></strong><br><div> </div>
<div>The level of activity of homebuyers in the market has generally been relatively lower than we have seen in previous cycles, in part due to the sheer volume of investors in the Sydney and Melbourne markets since interest rates were dropped.</div>
<div> </div>
<div>However, following the effectively imposed caps on investor lending banks are now targeting the home loan market, and the trend number of monthly owner-occupier commitments has continued to rise to the highest level since June 2009. </div>
<br><div class="separator"><a href="/images/2016/08/11/A4.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"><img src="/images/2016/08/11/A4.jpg" alt=""></div>
<br><strong><span style="text-decoration: underline;">State versus state</span></strong><br><br><div>The number of owner-occupier commitments is trending solidly higher in Queensland, South Australia, Tasmania, and the ACT.</div>
<div> </div>
<div>Homebuyer activity remains high in Sydney and Melbourne, but these markets will also be impacted by serviceability constraints.</div>
<br><a href="/images/2016/08/11/A6.jpg" target="_blank">Click to enlarge</a>
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<div class="post-body entry-content">
<img src="/images/2016/08/11/A6.jpg" alt=""><br><br><div>Indeed, this is reflected in the dampened trend monthly value of owner-occupier commitments in the two most populous states in the chart below.</div>
<div> </div>
<div>The homebuyer trend value of commitments appears to be strongest in Queensland, South Australia, Tasmania, and the ACT.</div>
<br><div class="separator"><a href="/images/2016/08/11/A5.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"><img src="/images/2016/08/11/A5.jpg" alt=""></div>
<div> </div>
<div class="separator">That said there has been a marked resurgence in investor lending in Sydney, sending preliminary auction clearance rates to their highest level of the year, at above 80 per cent.</div>
<div class="separator"><strong><span style="text-decoration: underline;"> </span></strong></div>
<div class="separator"><strong><span style="text-decoration: underline;">The wrap</span></strong></div>
<div class="separator"> </div>
<div class="separator">Overall, despite lots of alarmist reporting housing finance is tracking both at a historically high level, and is now accelerating again.</div>
<div class="separator"> </div>
<div class="separator">And remember that these figures for June pre-date an interest rate cut delivered in August.</div>
<div> </div>
<div>It's also worth remembering that the underlying demand for mortgages right now is enormous - the only reason lending slowed was because regulators were getting concerned about the sheer wight of demand for borrowing.</div>
<div> </div>
<div>The data seem to be following a remarkably similar trajectory to what we saw in the United Kingdom following its own macroprudential intervention (the so-termed Mortgage Market Review). </div>
<div> </div>
<div>That is the initial shock clonked the market on to the back foot, but as the dust settles lending is on the rise again - just more steadily than it was before.<br><br>Finally, the ABS reported a small increase in first homebuyer activity, but as disclosed by the ABS these data remain incomplete.<br><br>NAB's survey for Q2 2016 showed that first homebuyers accounted for 1 in 3 new home sales in the June quarter, and 29 per cent of established home sales.</div>
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<p><span><em>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>.</em><br></span></p>
<p><em>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>.</em></p>
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pwargent-M4siyDbqQY

Housing finance accelerating again: Pete Wargent

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<p><span>GUEST OBSERVER</span></p>
<p><span>The June housing finance report was a mixed bag with the headline number of owner occupier approvals undershooting expectations slightly but most of the detail more positive.</span></p>
<p>The number of approvals owner occupiers rose 1.2 percent in June, below expectations of a 2.3 percent gain. However ex refi, ‘new’ approvals were more in line with a 2.1 percent gain.</p>
<p>The value of housing finance approvals to investors was up 3.2 percent mth – although there was not a consensus forecast on this component it was probably a touch better than expected.</p>
<p>Both segments appear to have responded positively to May’s interest rate cut although broader market measures such as auction clearance rates point to a firming in demand rather than a sharp pick up.</p>
<p>The detail also showed solid gains 2 percent+ for construction-related finance approvals.<br><span><br>Details</span> <br>Owner–occupiers (no.)   1.2%mth, 6.7%yr          <br><span>– ex-financing (no.)        2.1%mth, 3.8%yr          </span><span>     </span></p>
<p>Construction of dwellings (no.)               2.1%mth, 1.1%yr     <br><span>Purchase of newly built dwellings (no.)   2.7%mth, 19.6%yr        </span><span>               </span></p>
<p>Value of loans:             </p>
<p>Owner-occupiers ($bn)   1.8%mth, 9.4%yr   <br><span>Investors ($bn)              3.2%mth, –13.1%yr      <br></span><span>Total ($bn)                    2.3%mth, 0%yr <br></span><span>Total ex refi ($bn)          2.8%mth, -3.4%yr      </span></p>
<p><em><span>Matthew Hassan</span> is senior economist with <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>.</em></p>
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mick.cee-iDmgDDAmu8

June Australia housing finance approvals: Westpac's Matthew Hassan

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<p>GUEST OBSERVER</p>
<p>In its Statement on Monetary Policy (SoMP) for August the Reserve Bank has made no significant changes to its forecasts.</p>
<p>This is an unusual development given that it cut rates earlier this week. Our scrutiny of previous rate decisions shows that on all previous occasions a rate change has been followed with a forecast change.</p>
<p>However, as indicated in previous notes we expected no forecast change and a rate cut on the basis that the changes to the inflation outlook in the May SoMP were so significant that a follow-up move would be necessary without any further need to change the forecasts.</p>
<p>In summary, the Bank, which has extended the forecast period from June 2018 to December 2018, has retained a 3% growth forecast for 2016 and 2017, and a 3½% forecast for the whole of 2018 (having forecast 3½% for the year to June 2018 in the May SoMP).</p>
<p>The inflation forecasts also remain the same: underlying inflation in 2016 is forecast at 1½% (mid-point of 1-2% range) and 2% (mid-point of 1½-2½% range) in 2017. One area of interest was whether the Bank would adopt an above 2% forecast for calendar 2018. Note that in May, the forecast to June 2018 was still 2% but there was scope in this statement to adopt a ‘with-in target zone’ forecast for 2018. However the Bank has decided to retain the 2% forecast (mid-point of 1½-2½% range) for the whole of 2018.</p>
<p>This means that with underlying inflation printing 2% for 2015, the Bank is predicting that underlying inflation will remain below or at the bottom of the band for four consecutive years. Indeed in the statement it is even more confronting than that, choosing to note “inflation is likely to remain below 2% over most of the forecast period”.</p>
<p>This approach certainly raises issues around whether, with a new Governor being appointed in September and adopting a new agreement with the Government, a revised approach to inflation targeting could be embraced. One approach might be to further extend the forecast period with an assertion that eventually inflation will return to the target zone; another might be to lower the specific target; while a third might be to abandon an actual arithmetic target. These issues will be revealed over the next few months.</p>
<p>As is the normal practise, the forecasts assume unchanged AUD and oil prices but adopt market pricing for interest rates. Despite the rate cut in August markets continue to fully price in another cut by early next year. So in comparing the forecasts in May, which also had one full cut priced in, these forecasts have an extra cut priced in. Yet they have not been changed to reflect even easier monetary policy.</p>
<p>So, from this perspective, even though the forecasts have not been changed the implication is a more cautious view than we saw in May.</p>
<p>The growth forecasts appear to be on the high side. We know the Bank assesses trend growth as 2.75% and these forecasts indicate the expectation of four consecutive years of growth above that trend. With that in mind it is very interesting that the commentary in the introduction to the statement, which is generally accepted to have been written by the Governor, notes the following: “While the prospects for growth in economic activity are positive there is room for even stronger growth”. Interpreting this statement is not clear cut. It may be specifically justifying the decision to cut in August or it may be providing guidance for the future. Given that it will clearly be so closely scrutinised it would be risky to dismiss it as only justifying the August decision. Along with the surprisingly downbeat commentary on the inflation outlook it should not be dismissed as only providing an explanation for the August decision.</p>
<p>Therefore the combination of a decidedly underwhelming inflation forecast with recognition that even though growth is expected to be consistently a little above trend throughout the forecast period there is scope for even stronger growth should clearly be interpreted as the Bank retaining its easing bias. While there is no specific guidance around the outlook for policy, which is usually the vehicle for signalling such a bias, the flavour around these forecasts and the commentary indicates that easing policy stance.</p>
<p>The commentary around the outlook for the economy lacks confidence. Weak wages growth is explained by ongoing spare capacity in the labour market; low inflation expectations and profit pressures. Spare capacity in the labour market is expected to persist for the full forecast period (out to end 2018) and the unemployment rate is not expected to fall too much. In the near term, employment growth over the second half of 2016 is expected to be modest. Further uncertainty around the labour market is noted with the observation that: “Gains in employment continue to be mostly in part time and among workers who would like more hours” raising the prospect that the degree of spare capacity is larger than implied by the unemployment rate. The emphasis on this mix of jobs growth has increased significantly since the last SoMP with, despite the rate cut, the mood around the labour market being more cautious.</p>
<p>There are also confident observations made about risks to overstimulating house prices with house price growth being assessed as modest since around April and inflation in rents easing to multi-decade lows. Further the Statement asserts that, “the risks associated with high and rising household leverage and rapid gains in housing prices have diminished.”</p>
<p>Of course, uncertainty prevails around the AUD: “It [the AUD] … represents a significant source of uncertainty for the forecasts for inflation as well as the outlook for growth in activity”. <br><br>Views around the international environment are broadly the same as we saw in May with no particular strong reaction to ‘Brexit’ or the political uncertainty in the US. As with previous statements considerable attention is given to China with the ongoing issues of the sustainability of the recent upswing in housing activity and the increasing imbalance from excessive corporate and local government debt attracting attention. It is reasonable to conclude that the Bank’s developing suspicions around China’s outlook have progressed further in this statement.</p>
<p><strong>Conclusion</strong></p>
<p>We are not surprised that the forecasts in the statement are unchanged. However, the commentary around the inflation prospects, and, notwithstanding a little above trend growth forecasts, recognition that there is room for even stronger growth points to this statement implying an easing bias. There is no commentary that we can see pointing out stability risks to even lower rates. Indeed the statement strongly asserts that despite the rate cut in May, conditions in the housing market have stabilised and risks in the housing market have diminished. It is also apparent that caution has entered into the assessment around the labour market with specific emphasis on spare capacity being more prominent in this statement than we saw in May.</p>
<p>Our current forecast is that having responded to the ‘inflation scare’ in May with two rate cuts, the Bank will be inclined to now seek a period of stability on the policy front. However the sentiment in this statement indicates that the Bank is more open to further near term stimulus than we thought would have been the case.</p>
<p>Over the course of the next period we will assess the usual risks to determine whether our current view should be retained. Apart from the usual run of economic data, the agreement between the new RBA Governor, Philip Lowe, and the Government will be important, while any clarification from the new Governor himself on these issues will also be welcomed.</p>
<p> <span><em>BILL EVANS</em></span><em> is chief economist of Westpac<em> and can be contacted <a href="https://www.westpac.com.au/about-westpac/westpac-group/" target="_blank">here</a>.</em></em></p>
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jchancellor-FAypfDUnLy

RBA statement notes housing market risks have diminished: Westpac's Bill Evans

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<p>House prices went higher in the June quarter, with Sydney's median house price jumping back over the $1 million mark, the latest Domain House Price Report suggested. </p>
<p>It was houses on Sydney's upper north shore that rebounded to be up 5.2 percent over the quarter. The strongest region for annual growth was the city and east, with 12.2 percent house price growth.</p>
<p>Nationally prices rose 1.5 percent from the March quarter, led by Canberra's 3.1 percent quarterly gain and Sydney's 2.4 percent increase.</p>
<p>Prices fell 1.7 percent in Perth and 0.7 percent in Darwin.</p>
<p>Sydney's median house price sat at $1,021,968, up from $997,925 in March, but below the September 2015 record of $1,032,899. </p>
<p>Units in Melbourne posted strong recent growth, but the national quarterly growth figure was 0.7 percent given declines in Brisbane, Adelaide, Perth and Canberra.</p>
<p>In Sydney, apartment prices rose just 0.6 percent as signs suggest supply is catching up with demand.</p>
<div>
<p>Melbourne’s house prices hit a new record median of $740,995 after almost four years of growth as prices grew 1.5 per cent in the June quarter, taking the annual rate to 7.4 percent – the highest of all capital cities. It was Melbourne's west and north that had the highest annual regional growth, and the inner city which had the highest quarterly growth. T<span>he median house price rose in the west and north, at 12.1 percent and 9.6 percent respectively annually. </span></p>
<p>Melbourne's unit median price grew 3.5 per cent over the June quarter, but just 2.7 per cent annually, to $450,933.</p>
<p>Adelaide house prices hit a $498,927 record price.</p>
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Sydney's stronger upper north shore prices push Sydney's median house price over $1 million yet again

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<p>Over the March 2016 quarter, 9.2 percent of all apartments in capital cities resold recorded a gross loss when compared to their previous purchase price according to CoreLogic.</p>
<p>The report said over the first quarter of 2016, 6.9 percent of capital city properties resold at a loss compared to 13.1 percent of regional properties.</p>
<p>"Over the past quarter, the proportion of loss making resales has increased from 5.6 percent at the end of 2015 across the combined capital cities and fallen from 13.4 percent in regional markets. In fact, regional areas of the country have just recorded their lowest proportion of loss-making resales since the three months to July 2011," it said.</p>
<p><a href="/images/2016/06/30/Screen%20Shot%202016-06-30%20at%2011.49.03%20AM.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/06/30/Screen%20Shot%202016-06-30%20at%2011.49.03%20AM.png" alt=""></p>
<p>CoreLogic's Cameron Kusher said the trends in regional areas are shifting with the proportion of loss-making resales trending lower in areas linked to tourism and lifestyle.</p>
<p>"On the other hand, housing markets linked to the resources sector are generally seeing an elevated level of loss-making resales after housing market conditions in many of these locations have posted a sharp correction,” he said.</p>
<p>"Nationally there was $361.0 million in realised losses over the quarter at an average of $66,073 and $12.9 billion in realised profit at an average of $239,855. Across the capital cities, there were $187.0 million in losses with an average of $72,042 per loss-making resale compared to $10.2 billion in profit at an average of $294,045.</p>
<p>"The combined regional areas recorded $174.7 million in losses at an average of $60,689 compared to $2.7 billion in profit at an average of $140,992. The average losses were greater in the capital cities; however they also generally experienced much greater profits, more than double those in regional areas."</p>
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One in nine apartments selling for a loss with Melbourne even higher: CoreLogic

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<p>May proved a relatively positive quarter for Australia’s housing market, according to Residex.</p>
<p>Of the house markets, the Hobart market recorded the strongest quarterly growth gains in May with the median house increasing in value by 2.59 percent.</p>
<p>This was followed by country NSW houses, which posted 2.39 percent growth for the quarter.</p>
<p>In the unit market, the median Hobart unit increased by a shocking 6.66 percent in the May quarter. Regional Queensland was a very distant second, where median units increased by 2.44 percent over the same time period.</p>
<p><strong>Table 1: May 2016 Summary</strong></p>
<p><a href="/images/2016/06/28/Table_1_May16_Statistics_Summary.jpg" target="_blank">Click to enlarge</a><img src="/images/2016/06/28/Table_1_May16_Statistics_Summary.jpg" alt=""></p>
<p><em><span>Source: Residex</span></em></p>
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Country NSW enjoys May price growth: Residex

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<p>GUEST OBSERVER</p>
<p>The domestic market fundamental’s remain strong for housing development following yesterday’s announcement from The Treasury to implement a four percent stamp duty charge on foreign investors.</p>
<p>The Treasury’s move may intend to stabilize foreign investment and increase revenue for the State, however it has little regard for dealing with the ever increasing issue of housing affordability, particularly in Sydney. </p>
<p>Based on the Sydney median house price of $995,804, the stamp duty bill for an off-shore investor will increase from $40,305 to $80,137 and generate $1 billion over four years for the government.</p>
<p>Increased investment in employment, transport, health, education and recreation infrastructure has been committed by the private and public sector particularly the South West Sydney, and for this reason there is a continued surge of new property sales and importantly ‘occupation’ in developments offering properties well below Sydney metro’s median price.</p>
<p>Sekisui House Australia’s outlook is supported by the newly reported industry data. </p>
<p>According to the latest Autumn Housing Industry Association (HIA) report for NSW, the <em>‘AIG–HIA Performance Of Construction Index’</em> reports new orders in the house sector during early 2016 were somewhat stronger than at the end of 2015.  The index reading in March 2016 was 53.0 points, indicating an expansion in new orders during the month, a positive signal for detached house building activity over the near to medium term.</p>
<p>As the Government shifts goal posts for property investment particularly from off-shore investors, it’s important to focus on the owner-occupier market returning to the fore. Foreign property investors will always play their part in the NSW residential market, but with lower Loan-to-Value ratio being offered by the major banks, we foresee property sales for occupation potentially taking the lead in 2016 and beyond.</p>
<p><em>Craig D'Costa is the project director at Sekisui House Australia and can be contacted <a href="https://www.sekisuihouse.com.au/" target="_blank">here</a>.</em></p>
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