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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The ANZ Banking Group has closed the door on some foreign buyers wanting to invest in Australian real estate using overseas funds.
The bank insists on original copies of untranslated supporting documents required for a loan application and tightened passport scrutiny, such as foreign applicants having to provide all stamped pages. 
It comes amid concerns by property developers that a decline in bank lending to investors, capital controls imposed in China and confusion about state planning policies, particularly in Melbourne, might slow investments.
Mortgage brokers claim the moves are targeting the Chinese market, which has spent billions of dollars on Australian residential property, particularly in Melbourne and Sydney.
The bank will not accept loan applications based solely on foreign income.
"Applications based on 100 per cent foreign income will not be accepted," the bank has told mortgage brokers.
For borrowers seeking loans based on more than 50 per cent of foreign income, there are measures about the size and source of funding.
There is a maximum loan-to-value ratio of 70 per cent, no loans in a company name, no guarantor arrangements and restricted construction lending.
There are tough controls on refinancing of existing loans, which involves borrowers attempting to get better terms and conditions for their loans.
Foreign salary earner applicants must pass six stringent documentation tests that include providing comprehensive employment contracts, tax returns, current visa documentation and original, untranslated supporting documents.
The Australian Financial Review says that expatriate Australians working overseas will not be impacted by the lending restrictions but will be required to provide the extra documentation.
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jchancellor-FAypfDUnLy

ANZ introduces stricter lending rules for foreign buyers

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Housing market conditions in Hobart have remained relatively flat over the past year, showing a 0.7 percent fall in Hobart home values over the past 12 months, according to the latest NAB housing insights report.
With Hobart home values down 4.0 percent over the past five years and rents consistently rising, Hobart rental yields are now the highest of any capital city which may attract higher levels of investment over the coming year
House values in Hobart expected to ease by 0.6 percent, while units expected to remain stable in 2016 .
<a href="/images/2016/03/11/Screen%20Shot%202016-03-11%20at%203.43.31%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/11/Screen%20Shot%202016-03-11%20at%203.43.31%20PM.png" alt="">
While the Tasmanian economic outlook has improved over the last year, thanks in large part to a pick-up in business investment and strong domestic tourism, recent data suggest that the recovery may be losing some steam. 
Manufacturing continues its structural decline and the mining sector continues to struggle, but we are optimistic about some of Tasmania’s biggest sectors. In particular, agriculture is becoming more important and enjoying favourable conditions thanks to a cool climate and expanding irrigation schemes (particularly for dairy).
<a href="/images/2016/03/11/Screen%20Shot%202016-03-11%20at%203.46.43%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/11/Screen%20Shot%202016-03-11%20at%203.46.43%20PM.png" alt="">
Likewise, the lower AUD should continue to boost tourism and agriculture, making domestic holidays more attractive for Australians and improving local prices for farmers. Nevertheless, even though population trends in Tasmania have improved, population growth has generally lagged behind the rest of the nation. 
NAB expects Hobart house prices to decline modestly by 0.6 percent in 2016 and unit prices are expected to be flat.
On balance, the demand environment for housing is expected to improve moderately, but not enough to drive a meaningful turnaround in the housing market. Consequently, NAB expects Hobart house prices to decline modestly by 0.6 percent in 2016 – a more modest decline than in 2015 – and unit prices are expected to be flat.
 
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House values in Hobart expected to ease by 0.6 percent, units stable in 2016: NAB

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Westpac consumer banking boss George Frazis says the Australian housing fundamentals remained strong.
Westpac has a $363 billion exposure to mortgages, with the bank having strengthened lending standards by lifting serviceability buffers and writing fewer loans with large leverage, he advised this week.
He dismissaed the US research house Variant Perception report last month that claimed Australia had “one of the biggest housing bubbles in history” and prices would fall 50 per cent in parts of Sydney and Melbourne.
“Hedge funds have been making those allegations for 20 years,” he told The Australian, claiming offshore funds “don’t understand the Australian mortgage market”.
“Basically we’ve got an environment where we’ve got responsible lending obligations (and) the incentives are aligned between the borrower and the bank to ensure effectively we do whatever we can to make sure people stay in their homes.
“We’ve got ... one million-plus customers; at the moment we have in the order of about 250 houses in repossession, so an extremely low number."
He said 74 percent of Westpac customers are ahead on their repayments.
“We’re actually breathing down the neck of Commonwealth Bank, we’re closing the gap on mortgages and we’ve stopped the gap growing in deposits, which I’m really pleased about,” he said.
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Westpac narrows gap on Commbank while dismissing housing bubble claims

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The Adelaide housing market saw home values remain virtually unchanged in 2015, with the CoreLogic index recording a 0.1 percent slip in home values over the 2015 calendar year. 
But the latest NAB housing insights report suggest very modest growth is likely for 2016
The relatively steady conditions across the South Australian capital have moderately outperformed the broad regional market across the state where values were down 0.4 percent over the year. 
<a href="/images/2016/03/22/Screen%20Shot%202016-03-22%20at%209.11.32%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/22/Screen%20Shot%202016-03-22%20at%209.11.32%20AM.png" alt="">
Longer term, however, the regional market (+2.1 percent) has outperformed the state’s capital (+1.9 percent) over the past five years.
The fairly flat housing market conditions across Adelaide reflect relatively soft economic conditions where uncertainty is heightened due to the planned closure of the automotive manufacturing sector in the north of the City. Soft conditions across the mining and resources sector as well as low rates of population growth are contributing to the flat housing market conditions in Adelaide and across the regional housing markets of the state. 
The Murray Lands, which is a very large, primarily agricultural region of eastern South Australia, has shown the largest increase in home values, with a 4.4 percent rise over the year.
<a href="/images/2016/03/22/Screen%20Shot%202016-03-22%20at%209.13.23%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/22/Screen%20Shot%202016-03-22%20at%209.13.23%20AM.png" alt="" width="831" height="493">
 
The underperformance of the Adelaide housing market has largely been a reflection of deteriorating economic conditions in South Australia. The local economy has been challenged by unfavourable demographic factors, weak commodity prices, as well as the long-term structural decline of its manufacturing base. It also lacks the industry mix and job opportunities to draw workers back to the state as the national economy rebalances towards non-mining activity, although the lower AUD is supporting tourism arrivals and expenditure. 
Lacklustre economic performance is expected to continue over 2016, which will severely limit employment and wages growth, with flow on effects for the local housing market. 
<a href="/images/2016/03/22/Screen%20Shot%202016-03-22%20at%209.14.43%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/22/Screen%20Shot%202016-03-22%20at%209.14.43%20AM.png" alt="">
According to the NAB Property Survey, sentiment towards residential property in SA/NT is especially weak (SA/NT and WA are the only states where sentiment is negative), and deteriorated even further in the fourth quarter.
Consequently, respondents are now expecting even larger declines in house prices than they reported in Q3 2015, although rental expectations posted a surprising improvement. Given NAB’s expectation for the local economy, population and household income growth to remain subdued, both house and unit prices are expected to remain relatively flat in 2016.
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Adelaide house, unit values to climb 0.2 percent: NAB

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According to CoreLogic RP Data research analyst Cameron Kusher, currently private sector housing credit stands at $1.536 trillion; a 7.3% year-on-year increase to January 2016. Mr Kusher said.
 “Housing credit has done nothing but expand over the period shown (refer adjacent graphs).” 
Mr Kusher makes note of the fact that historically, credit is expanding at a slow annualised pace. “Of course this is a function of the fact that with low interest rates households are paying back credit faster as well as the value of outstanding credit is so much higher than in the past. Housing credit has been expanding at annual rate of between 7.0% and 7.5% for the past 15 months,” he says. 
Click to enlarge
<img src="/images/2016/03/3/Screen%20Shot%202016-03-03%20at%2012.24.21%20PM.png" alt="">
Since January 1991, housing credit data has been split between houses and units with investor housing credit typically increasing at a faster pace than owner occupier credit. Over the past year investor housing credit increased by 7.9% which is its slowest annual pace of growth since February 2014; well down on the recent peak rate of growth of 11.0%pa.
Meanwhile, owner occupier credit growth is recorded at 6.9%pa which is its fastest annual rate of growth since October 2010. Between 1991 and 2015, investor housing credit has increased from 16.0% of total housing credit to 35.8%, highlighting how popular housing investment has become since the early 1990’s. 
Mr Kusher said, “Late in 2014 the Australian Prudential Regulation Authority (APRA) provided guidelines to lenders that annual investor housing credit should not expand by more than 10%pa. These changes were largely implemented from the middle of last year. Given this it would seem there is some scope for lenders to ease their policies on investment lending and lift the level of lending for investment purposes given credit growth is now well below 10% per annum.” 
The latest housing finance data to December 2015 (which tracks the value of new lending) shows that following a large fall over the second half of 2015, investor lending has started to pick-up a little. Meanwhile the value of housing loans to owner occupier has continued to trend higher. 
Mr Kusher said, “Given the tentative signs of a pick-up in investor demand in the housing finance data, investor housing credit growth now well below 10%pa and home values still rising, why wouldn’t investor demand ramp back up?” 
Mr Kusher cites several reasons why investor demand may not rebound and starts with investors. 
“This group is now facing not only higher mortgage rates due to the out of cycle lift in mortgages rates by lenders last year but they are also experiencing an average of 30 basis points higher mortgage rates because they are an investor (due to the higher capital requirements for investment loans implemented by APRA in 2015). Secondly, he notes that the home value growth phase in Sydney and Melbourne is now very mature having run for almost 4 years, perhaps there is some concern as to how much longer it can run.” 
<a href="/images/2016/03/3/Screen%20Shot%202016-03-03%20at%2012.25.14%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/3/Screen%20Shot%202016-03-03%20at%2012.25.14%20PM.png" alt="">
“Elsewhere value growth is and has been moderate with values falling in Perth and Darwin. With potential concerns of a slowing of value growth, rental yields are virtually at historic lows with rental rates unchanged over the year with each acting as a potential disincentive. Alternatively, investors may still be attracted to housing because total returns are still substantially higher than all other asset classes. 
“The Federal Opposition has signalled changes to negative gearing rules and it is unclear as to how investors will react to the policy should Labor be elected. Arguably the proposed changes to negative gearing may bring forward investment purchases due the grandfathering provision included in the Labor policy; but there is also the argument that the uncertainty in taxation policy relating to housing may act as a disincentive to prospective investors. There is still significant mortgage market competition so despite the recent increases in mortgage rates if borrowers are prepared to shop around they can still get extremely competitive home loan rates.” 
“We anticipate that from here there may be a bit of a pick-up in investment borrowing largely because mortgage rates remain low and housing returns are much stronger than most other asset classes. Although a pick-up in investment activity is a possibility, it is unlikely that the annual rate of housing credit growth will return to or breach its 10% pa limit,” Mr Kusher said.
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ckusher-ujnxiKuFQs

Will investor housing demand pick-up again? Cameron Kusher

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When you start to see politicians debating tax changes you should be afraid – very afraid. We know with the negative gearing debate that neither party has completed any costings preferring to work from the economic theory of guesstimates.
This is a very dangerous path as Australia does not have a Housing Minister and any changes are fraught with danger.
Just this week, the Australian Bureau of Statistics (ABS) revealed that for the first time rental, hiring and real estate service companies made $14 billion before tax in the second half of 2015 while mining companies made $9.8 billion. This is not the time to start meddling with property taxes as an excuse for economic reform policy.
I have no doubt that any changes to negative gearing will distort the market, and should there be an “investor run” prices will inevitably fall.
Australia is currently recording wage growth at a record low of 2.2 per cent a year. This is the lowest annual growth since the ABS started recording annual growth back in 1998. On top of that statistic in the September quarter, the ratio of household debt to income hit a new high of 184.6 per cent which translates to households’ debt now being at 1.85 times their total income.
This record growth in debt is a by-product from record low interest rates. But before we hit the panic button we need to investigate further and try and identify what is causing this.
On many occasions I have said “if there was a gold medal for real estate portfolios Australia would win hands down.” I see no use comparing Australia’s debt ratios with other countries when the Australian model has no tax payable on the principal place of residence and the overseas models do have tax payable on the principal place of residence. Australians work their principal place of residence as their main superannuation platform, which works very well when you have the cash rate at record lows.
If you were a betting person you would definitely be betting that the next cash rate movement will be down. Of course these high debt ratios will be challenged when the Reserve Bank of Australia (RBA) starts increasing the cash rate, but nobody really knows when that will be or in what decade even.
Prior to the Global Financial Crisis the average cash rate over a 25 year term came in at around 7.25 per cent, where based on what we are seeing today mortgage holders are going hard at 2.00 per cent.
Another statistic that is flying well off the radar are reverse mortgages which very few people discuss within the Australian property debate. In its annual Reverse Mortgage Report, Delloitte estimates more than $500 billion of home equity is held by Australians aged over 65, with the total reverse mortgage loan book worth $3.66bn as at the end of 2014.
This figure is naturally added to the Australian household debt figure so this would go part of the way to explaining why we are starting to see record debt levels. Back at the end of 2014 there were almost 40,000 reverse mortgages on issue in Australia with the average size being $92,000, up from $86,000 in 2013. It would then be reasonable to suggest that the number of reverse mortgages would have increased in 2015 as too the average mortgages – this is clearly a growth market.
To put this into further perspective the reverse mortgage market loan book was $3.66bn in 2014 and the Commonwealth Bank home loan portfolio currently sits around $393 billion. With many retirees opting for reverse mortgages this is another reason why we are seeing fewer properties on the market. Although this would change significantly once the cash rate starts increasing or a federal Government starts tampering with negative gearing in an adverse way.
What it does tell us is that Australia needs property investors as they play an integral part in Australian property machinations. If you want to have a rational debate about housing affordability in Australia firstly examine the delays by respective governments who forever and a day burden and choke the supply side of the property industry. It’s obvious to most that they fail to understand the Supply V demand equation.
Furthermore the Labor negative gearing proposal states that this will only apply to new properties. Well somebody should advise them that in December 2008 they lifted the number of properties that can be sold from new developments by foreign buyers from 50 per cent to 100 per cent. Property developers are selling all their new developments directly overseas as that way they can achieve higher prices so the local markets are blocked from buying these developments.
Nor is there any requirement nor legislation stipulating that foreign buyers must rent the property out to the local market – we do know that currently in Australia there are thousands of properties that have been land banked. Politicians are hopeless when it comes to the Australian property market.
The last thing the Australian economy needs is a domino effect with property prices because they are not pretty and should be avoided at all costs. If you want to bring property prices down do it organically by increasing supply which just so happens to be the greatest failure of local, state and federal Governments in the modern economy.
<h4>MOSMAN – 2088</h4>
• Number of houses on the market this time last year – 83
• Number of houses on the market last week – 64
• Number of houses on the market this week – 63
• Number of apartments on the market this time last year – 53
• Number of apartments on the market last week – 52 • Number of apartments on the market this week – 53
<h4>CREMORNE – 2090</h4>
• Number of houses on the market this time last year – 10
• Number of houses on the market last week – 18
• Number of houses on the market this week – 11
• Number of apartments on the market this time last year – 23
• Number of apartments on the market last week – 23
• Number of apartments on the market this week – 25
<h4>NEUTRAL BAY – 2089</h4>
• Number of houses on the market this time last year – 4
• Number of houses on the market last week – 8
•Number of houses on the market this week – 10
• Number of apartments on the market this time last year– 36
• Number of apartments on the market last week – 26
*Number of apartments on the market this week – 25
 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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It’s time for the Australian property debate: Robert Simeon

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Combined capital city home values have increased by 7.6 percent over the year with Melbourne topping the national list with annual capital gains of 11.1 percent, according to coreLogic RP Data's February Hedonic Home Value Index.
CoreLogic RP Data research director Tim Lawless said Melbourne values appear to be holding reasonably firm since December last year with the annual rate of capital gain virtually level over the past three months.
"Sydney’s annual rate of growth has continued to moderate, having almost halved from its cyclical peak of 18.4% recorded in July last year to reach 9.5% growth over the past twelve months.
"A few of the smaller cities, where growth rates have recently accelerated, may start to rival Sydney’s position over the coming months.
“The trend in home value growth is showing signs of increasing in those markets that have previously underperformed. These include Brisbane, Adelaide, Hobart and Canberra. Affordability constraints aren’t as apparent in these cities and rental yields haven’t been compressed to the same extent as what they have in Melbourne or Sydney.
"Home values increased in Brisbane by 5.5% over the past year, which is the fastest annual rate of value growth in a year. In Hobart, home values are 6.2% higher over the year, which is its fastest annual rate of home value growth since July 2010."
<a href="/images/2016/03/Screen%20Shot%202016-03-01%20at%204.05.14%20PM.png" target="_blank">Click to enlarge</a>
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Melbourne tops city annual capital gains: CoreLogic RP Data

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Home value growth is expected to slow across Australia in 2016 after two years of exceptional appreciation and double-digit growth in many areas, according to a new index.
The just-launched CoreLogic-Moody’s Analytics Australian Forecast Home Value Index forecasts a slowdown in house price growth across the country, underpinned by expectations of slower income growth.
But accommodative policy, robust rental growth, and a recovering labour market are expected to support valuations over the medium term, it said.
The new index makes a quarterly projection of the trend of residential home values across the country over the next 10 years. Forecasts are updated monthly to help market participants identify opportunities and manage risk exposures.
“We are excited to partner with Moody’s Analytics to launch this Forecast Index to provide a unique and critical perspective on Australia’s most valuable asset class, currently valued in excess of $6.4 trillion AUD,” said Craig Mackenzie, CoreLogic EGM, Banking &amp; Finance.
“On the outlook for the housing market nationally, we expect house price appreciation to slow in 2016. Our forecast reflects lower income growth as the Australian economy transitions away from mining-related investment, as well as the strong build-up of housing supply over the past two years,” said Alaistair Chan, a Sydney-based economist based at Moody’s Analytics.
The index currently includes forecasts at a capital city and rest-of-state level.
Regionally, Sydney’s housing market is expected to rebound by late 2016, while Melbourne is expected to go through an extended period of sluggishness. Mining regions, including Perth, the rest of Western Australia, and Darwin, are likely to have downbeat results over the near to medium term. No price declines are expected in Adelaide, although price growth will underperform the rest of the country for the near to medium term.
“Conditions in Melbourne are again expected to outperform Sydney this year, with values forecast to rise by 7.2% in 2016, before slipping back to just 1.3% growth in 2017,” said CoreLogic research director Tim Lawless.
While the pace of house price appreciation is forecast to slow in Sydney, Melbourne and Darwin this year, some pick-up in growth is expected in the remaining capital cities. Hobart, in particular, stands out for better price growth, it adds.
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Housing market in for a slowdown in 2016, says new index by CoreLogic & Moody’s Analytics 

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The NSW Central Coast house market was peaking, according to the latest HTW property clock.
Horsham is the another city to now sit at the peak.
Melbourne, Newscatle and Dubbo remain at the peak. 
HTW suggest the Central Coast’s strong market in 2015 was undoubtedly underpinned by Sydney based buyers finding themselves unable to compete in the Sydney market.
"This resulted in better than average rises in property values across the region," HTW suggested.
Although afte a strong period leading to October, the year ended with a 'bit of a whimper" for the region’s market.
"Sales volumes fell somewhat and we really didn’t see any continuing increases in values.
What HTW did notice however was:
• The sudden departure of Asian buyers having a noticeable effect on sale volumes;
• Purchase prices being nearer and sometimes below indicated asking prices as opposed to new records being set every other day;
• Buyers being a little more selective and acting with slightly less urgency;
• The much hyped talk of new residential unit developments in Gosford and other regionally significant developments falling away on whispers that presales and interest were less than expected and project finance was difficult to secure;
• Increased positivity in the retail sector that had been missing for the past several end of year periods.
HTW anticipate if previous property cycles are to be repeated, then the region’s market will be slowing as one property cycle ends and another starts.
"We have felt the market has been at its peak for some time now and a slowdown around the corner, but the peak lasted longer than we expected.
"This is the main difference between this cycle which has been building slowly by comparison over several years and is more controlled as opposed to previous cycles which experienced faster rises over shorter periods.
"Confidence in the market is a good thing, but we think that 2016 should be a year where buyers and investors will need to be more pragmatic and research especially well.
HTW think that while some of the region’s 160 suburbs will see a fall in values this year, most will continue to trade close to or near current values, but with reduced volumes.
Areas likely to see a drop in value will be those where values increased well beyond levels that we as valuers were comfortable with.
"This include areas such as Umina Beach and Woy Woy where values have risen extraordinarily (between 47% and 49% over the past three years) to the point where they are now in direct competition with some Sydney suburbs and a wane in demand seems inevitable as buyers switch their attention to other suburbs.
"It may also be time to be wary of Wyoming and Kariong where residential values have risen quite significantly (upwards of 10% over a twelve month period) and need time to settle down again.
"Something for buyers to be wary of is the unit market in Gosford where close to 700 units have been approved recently.
"Many sites are still in the pre-construction phase and if too many start and finish in a short time frame, then we will no doubt be in an oversupply situation which tends to play havoc with the market."
HTW suggest another sign that confidence has returned to the market is the presence of buyers at the higher end of the region’s value range.
"Absent for some time, some say the return of these buyers provides a restorative factor in the market.
"Suburbs likely to see increased levels of popularity and well worth watching include Pearl Beach, Avoca Beach, Narara, Niagara Park, Bateau Bay and Budgewoi.
"These are suburbs that inexplicably seem to have escaped the attention of buyers during the recent period of increased market activity.
"Two areas well worth a watch and act approach include Woongarrah and Hamlyn Terrace.
"These are suburbs considered attractive to a range of purchasers including first home buyers, young families, commuters and investors due to their affordability levels and good local infrastructure." 
Canberra apartments have joined the other capitals, Brisbane and Melbourne at a market peak in February, according to the latest HTW property clock.
 
<a href="/images/2016/02/08/700_HTW_Houses.jpg" target="_blank">Click here to enlarge</a>.
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NSW Central Coast houses at top of market: HTW property clock

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Recent figures from the Housing Industry Association note a dip in dwelling starts in 2016 across all states with NSW down 4 percent, Victoria down 13.1 percent and Queensland down 1.8 percent.
The HIA's latest housing forecasts for February shows dwelling starts down 9.2 percent nationally.
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