<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

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<p><span>The </span>apartment market in Coffs Harbour has turned around, with dwelling construction ramping up and key suburbs seeing considerable new unit development, according to Herron Todd White.</p>
<p><span>Herron Todd White's September Month in Review found </span><span style="line-height: 1.3em;">popular beach and harbourside suburbs around Coffs Harbour typically have prices ranging from $350,000 to in excess of $1 million, with average prices around $450,000 to $700,000.</span></p>
<p><span style="line-height: 1.3em;">"The high end of the market of $700,000 plus does see sales dramatically reduce due to limited local demand for this price range," the report noted.</span></p>
<p><span style="line-height: 1.3em;">"These units are generally purchased by high net wealth individuals with long selling periods required to attract potential purchasers. </span></p>
<p>"Several modern townhouse complexes have been constructed which generally provide three bedroom, one or two bathroom accommodation in complexes of five to ten units ranging in price from $350,000 to $400,000. The majority of purchasers have been investors with rental returns of $360 to $400 per week being achieved."</p>
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mick.cee-iDmgDDAmu8

Coffs Harbour construction ramping up: Herron Todd White

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<p>Geoff Baldwin of RE/MAX Lighthouse Realty Western Australia suggests the time is right for opportunistic buyers in Western Australia looking to secure value.</p>
<p>As the real estate market moves into the annual Spring/Summer resurgence there remains a window of opportunity to take advantage of some great buys, especially in the middle to upper price ranges with the Northern suburbs standing out according to RE/MAX WA managing director, Geoff Baldwin.</p>
<p>“Homes in suburbs like Ocean Reef, Connolly, Iluka, Currambine, Burns Beach and Jindalee are all selling well below what they would cost to buy land and build and the added bonus is that the owners of these properties have invariably added extra value by way of pools, pergolas, solar boosters, etc that they tend to discount at sale time”, he said.</p>
<p>“It is also a fact that people selling lower priced properties are not having to drop their prices by near the percentage that is happening further up the market and this means they have a window of opportunity to upgrade that will only remain open for a limited time.</p>
<p>“Properties along the coast that were selling for over a million dollars are now going for high eight hundreds to early nine hundreds and buyers are now really beginning to recognise this value.</p>
<p>“Upgraders should not hesitate to consider making offers subject to the sale of their present property provided the owners of the one they are buying are willing to give them time to sell however this will always depend on how saleable their current home is made.</p>
<p>“This irregularity in the market is primed for upgraders to take action however it will not exist for a long period because, as the weather heats up so too will the market with the result that stock levels will reduce and prices will bounce back quickly”, Mr Baldwin said.</p>
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j.ballantyne1990-6AQqhLzZaK

Price drop opportunity in Western Australia

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<p><span>Stockland property group released the Sustainability Report and Annual Review for 2015 which noted underlying profit grew by 9.4% to $608 million with statutory profit at $903 million, more than 70% higher than the previous year.</span></p>
<p><span>Stockland Chariman Graham Bradley said the results reflect solid increases in earnings across Commercial Property, Residential and Retirement Living.</span></p>
<p><span>Managing director Mark Steinert said commercial property remains a key driver of the group’s success.</span></p>
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<p><span>"On a comparable basis we achieved operating profit growth of 4.3% across the portfolio, with 4.2% in Retail, 3.1% in Logistics and Business Parks and 6.4% in Office, reflecting our strong focus on property fundamentals," he said.</span></p>
<p><span>"Our residential business achieved a substantial 73.5% uplift in profit and ended the year with a record 3,742 contracts on hand, up 17% on last year. </span></p>
<p><span>"Our Retirement Living operating profit was up 19.9% on FY14 reflecting strong sales, active management and improved efficiency. The business is now two years into our five year plan to achieve a 7% cash return on assets, which is marked by taking a much more active approach to how we manage our village portfolio.</span></p>
<p><span>“These reports show we are intertwining our approaches to property development and sustainability. We are focussed on the development and delivery of sustainable communities… Every year, Stockland engages in an independently-reviewed process to record its achievements, review and update its sustainability strategy, and set new targets for the year ahead.”</span></p>
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Stockland underlying profit grew by 9.4%

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<p>Residential developer Villa World have released the first stage of their Redland Bay Brisbane development Ellabay. </p>
<p>The first stage of the release includes 43 of the eventual 81 homes one kilometre from the shores of Moreton Bay. </p>
<p>Prices start at $499,000, with lots ranging in size from 375sqm to 644sqm. </p>
<p>Villa World senior development manager Murray Simpson said a range of <span style="line-height: 1.3em;">new four-bedroom home designs at Ellabay, which will be delivered fully landscaped and NBN ready. </span></p>
<p>“New homes have been designed to complement the coastal setting with premium ‘extras’ as standard,” he said. </p>
<p>An onsite display home will open on 19 September at 2 Muller Street, Redland Bay. </p>
<p>For more information about Ellabay, <a href="https://www.ellabayredlandbay.com.au" target="_blank">click here</a>.</p>
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jonathanchancellor-7SQnKwU6yx

First stage of Brisbane's Ellabay development released

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<p>For years now I have contemplated how an investment banker would run the Australian economy and now we are about to find out with Malcolm Turnbull taking over the reigns as prime minister.</p>
<p>Straight after the news broke I posted a message on Mr Turnbull’s Facebook page – “Congratulations on becoming Prime Minister of Australia.If I can ask you to do one thing – could you please appoint Kelly O’Dwyer as Housing minister. It’s rather embarrassing that the Australian government does not have a Minister for this important portfolio.”</p>
<p>There are major dark clouds forming and what we might expect is being discussed by a few, and if we are proven correct this will be a major storm that will reverberate across Australia. The problem started back in 2008 when the then prime minister Kevin Rudd and his treasurer Wayne Swan changed the ratio permitting foreign buyers to purchase off the plan in Australia. The ratio was adjusted from 50 per cent to 100 per cent (which is where it currently sits) at that time I wrote that such a move was fraught with danger.</p>
<p>Take Sydney for example, where tens of thousands of new apartments have been sold off – the – plan, there now are grave concerns that the foreign buyers will walk away from the deposits and won’t settle. With interest we should be watching the stock market in China which has lost approximately 40 per cent in the last three months, where when we see stock market corrections money is then diverted into real estate – this time around this may not be the case. Then we see that volatility on the global equity markets in August was the highest since 2011.</p>
<p>The first signs of cracking in the residential market will be, when these new developments are completed, how many apartments that were sold off the plan are immediately placed back on the market. BIS Shrapnel recently reported that NSW is set to become Australia’s top home builder in 2016, having overtaken Victoria which has held this position since early 2000.</p>
<p>Should the foreign buyers spook then the new construction will in all probability come to a grinding halt where history shows prices start falling significantly due to an oversupply on the markets. Thanks to the overseas buyer ratio being doubled this spells double trouble, given what we have seen with the real estate investment markets has been unprecedented. Historically we have absolutely no measures on what may happen aside from expecting the worst.</p>
<p>We also see that APRA’s policy initiatives are now cooling the markets which may need some urgent critiquing given that if the property markets cool too quickly this will spook the foreign buyers in to a frenzy of defaults.</p>
<p>On the flip side we have the Australian government via the Australian Taxation Office (ATO) forensically examining all property transactions for existing homes that may have been illegally acquired – I predict this will be huge. There is approximately another 6 weeks left of the amnesty period before the ATO starts prosecuting.</p>
<p>Thus far this crackdown on illegal purchases has more than doubled to over 500 investigations and that’s before the amnesty period ends – predominately at this stage the ATO is relying on public tip offs. Treasurer Joe Hockey let the cat out of the bag this week when he commented “So we are getting on with the job of enforcing the laws. There has been no enforcement and no successful order for at least the last 20 years. But we have taken this decision to ensure that there is integrity in the foreign investment regime and that those people who unlawfully hold Australian residential real estate are caught.”</p>
<p>Going by that one must be thinking that this investigation is so huge that they are now looking back 20 years – which would lead to an unprecedented number of divestment orders in 2016. Should we see the off – the – plan investors defaulting it would not be smart for the integrity of Australian property prices to also run divestment orders on existing dwellings.</p>
<p>Another point that needs raising is that NSW is doing the major lifting in terms of the Australian economy as this is the hub for economic momentum. The Reserve Bank of Australia, APRA, ATO, lenders and elected politicians need to immediately start consulting property developers and industry specialists and start drawing up a battle plan.</p>
<p>Until a clearer picture is presented foreign ownership rates from 100 per cent need to be cut hard. So that’s why Malcolm Turnbull needs to appoint a Housing minister next Monday as he/she will have plenty of work to do given I see the property markets now on a “High Alert”.</p>
<h5>MOSMAN – 2088</h5>
<p>• Number of houses on the market this time last year – 64</p>
<p>• Number of houses on the market last week – 56</p>
<p>• Number of houses on the market this week – 52</p>
<p>• Number of apartments on the market this time last year – 44</p>
<p>• Number of apartments on the market last week – 49</p>
<p>• Number of apartments on the market this week – 51</p>
<h5>CREMORNE – 2090</h5>
<p>• Number of houses on the market this time last year –10</p>
<p>• Number of houses on the market last week – 6</p>
<p>• Number of houses on the market this week – 7</p>
<p>• Number of apartments on the market this time last year – 16</p>
<p>• Number of apartments on the market last week – 20</p>
<p>• Number of apartments on the market this week – 22</p>
<h5>NEUTRAL BAY – 2089</h5>
<p>• Number of houses on the market this time last year – 7</p>
<p>• Number of houses on the market last week – 2</p>
<p>•Number of houses on the market this week – 3</p>
<p>• Number of apartments on the market this time last year– 33</p>
<p>• Number of apartments on the market last week – 37</p>
<p>• Number of apartments on the market this week – 29</p>
<p> </p>
<p><em><span>ROBERT SIMEON</span> is a director of </em><em><a href="https://www.rwm.com.au/" target="_blank" title="RWM" rel="nofollow">Richardson Wrench Mosman and Neutral Bay</a> </em><em>and has been selling residential real estate in Sydney since 1985. <br>He has also been writing real estate blog </em><em><a href="https://www.rwm.com.au/news/" target="_blank" title="Virtual Realty News" rel="nofollow">Virtual Realty News</a> </em><em>since 2000. </em></p>
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jchancellor-FAypfDUnLy

Are foreign buyers about to ‘short’ our residential markets? Robert Simeon

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<p><span>House price expectations fell in September according to the Westpac- Melbourne Institute Consumer House Price Expectations Index, which also found an annual growth in dwelling prices at just under 10% nationally.</span></p>
<p><span>The Westpac- Melbourne Institute Consumer House Price Expectations Index fell 6.1% from 132.7 in Aug to 127.3 in September.</span></p>
<p><span>According to the report the September fall was felt greatest in NSW, down 17%.</span></p>
<p><span>"Composite price measures based on all available private sector indexes shows annual growth in dwelling prices tracking at just under 10% nationally but varying enormously across geographies. Price growth is running closer to 20% in the Sydney market, showing a stark disconnect with the recent weakening in consumers’ price expectations," the report noted.</span></p>
<p><span>"While still more positive than buyer intentions, consumers’ house price expectations are also showing signs of waning.  The Index is now down 17%yr although it remains well above the 100 level indicating those expecting prices to rise still outnumber those expecting them to fall.</span></p>
<p><span>"Price growth is a reasonably firm 9%yr in Melbourne, but is only really keeping pace with inflation in Brisbane (2.6%yr) and is recording outright declines in Perth (–2.5%yr). With 75% of WA consumers picking prices to be flat or lower in 12mths, weakness looks entrenched."</span></p>
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<p><span>Westpac-MI House Price Expectations Index </span></p>
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<p><span>House prices: expectations vs actual by state </span></p>
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NSW house price expectations down 17%: Westpac's Red Book

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<div class="column">Housing market confidence fell in September nationally with New South Wales being the region to fall hardest where price expectations were previously strong, according to the Westpac Melbourne Institute House Price Expectations Index for September.</div>
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<div class="column">The Westpac Melbourne Institute House Price Expectations Index fell 6.1% to 127.3 in September – down 17% year on year. </div>
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<span>Housing market confidence time to buy category fell</span><span> 0.9% - down 8.6% year on year and 30% below the Sep 2013 peak.</span>
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<span>The report said b</span><span style="line-height: 1.3em;">uyer sentiment fell hard in NSW, with the state index down 14% in Sep, 34% on a year ago and 55% over the last 2yrs.</span>
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<div class="column"><span style="line-height: 1.3em;">"The NSW index is at its lowest level since Jun 1989 and the more specific Sydney index is at an all time low going back to 1975. This veritable collapse in buyer sentiment is a clear warning that owner occupier demand is set to fall. Disaffected buyers may also be starting to consider inter-state migration as an option," the report noted.</span></div>
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<div class="column">"The mood is very different across other markets. Readings have shown a less pronounced fall in Vic and remain relatively positive in Qld and WA. The latter is a little surprising given the stress the WA economy is currently coming under and price declines in Perth’s housing market. That said, the index tends to reflect buyers’ affordability assessments rather than expectations for price growth."</div>
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<span style="line-height: 1.3em;">"The age-group breakdown shows much weaker ‘time to buy’ reads for consumers in key first home buyer (FHB) age groups, and notably firmer readings for those that own their home without a mortgage."</span><span style="line-height: 1.3em;"> </span><span style="line-height: 1.3em;"> </span>
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<p><strong>‘Time to buy a dwelling ’ by state, buyer group</strong></p>
<p><span> </span></p>
<p><span><img src="/images/2015/09/18/Screen%20Shot%202015-09-18%20at%209.10.04%20AM.png" alt=""></span></p>
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Housing market confidence fell in September: Westpac's Red Book

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<p>GUEST OBSERVER</p>
<p>Of course, I finished my <a href="/expert-insights/is-sydney-now-the-rotten-apple-for-investors-oasis-gavin-mcpherson">last article</a> with a poke at the overpriced markets of Sydney and Melbourne. <br><br> Now for someone that calls Sydney ‘home’ 3-4 days per week and in South East Queensland the other 3-4, I may as well call my hand early. That is...I’d only invest in Sydney and Melbourne perpetually, if all things were even.</p>
<p>The problem however is that things aren’t even, and they never have been. So let’s explore those discrepancies.</p>
<p>So with the prerequisite that you should read my <span><em>last article</em></span>, allow me to switch from bear to bull and start with the ripe opportunities that sit north of the NSW border. And I’ll start with the counterpoint of my last article with the introduction that “the cure for low prices...IS low prices.”</p>
<p>I’d ask the reader to think about it this way...using Gold Coast as an example.</p>
<ul>
<li>Gold Coast <em>did</em>suffer from overdevelopment in 2007. Over 100 cranes in the sky were witnessed with as many as 14,500 apartments (approved in 2004-2006) advanced from concept to delivery.  Of course, many of these sold while the market was solid, but as history would demonstrate, as many as 3000-4000 new apartments (without buyers) were delivered to the market just when the market turned on the eve of the Global Financial Crisis. Some of these properties still traded, with disgruntled buyers settling on them at the risk of being sued. Many of them returned these to the market trying to recover their costs. They failed.  Others returned their contracts and lost their property deposits. All in all, the market was flooded with all sellers trying to head for the exit at the same time, not to mention the oversupply of rental property, tipping the Gold Coast into 4%+ territory, one of the weakest across Australia.</li>
<li>But while the above took all the headlines, think about the effect this had on construction. Pre GFC, the Gold Coast had a raft of over 100 cranes featured in the skyline to satisfy the appetite of developers. Full circle to 2011, once the already committed projects of the Hilton and Soul were constructed...a total of only <em>one</em> crane only graced the Gold Coast skyline.</li>
<li>Fast forward 4-5 years, seeing in record low interest rates for domestic buyers and a stellar exchange rate for overseas buyers, Gold Coast is craving for more dwellings. How would I know this? Do you think I just made this up? </li>
</ul>
<p>It’s easy. The Gold Coast now has sub 1% vacancy rates (REIQ). In fact, while other figures show 1.8% across the whole of the coast, it’s well understood that the congestion does appear on in the Surfers/Broadbeach /Mermaid and Main Beach districts, putting further downward pressure on this figure. Vacancy rates are a <em>symptom</em> of a market that does not have enough property. It’s also the reason why I envelope this notion in the adage that “low prices IS the cure for low prices.”</p>
<p>Bottom line, all the extra property that had been on the market after the GFC has been bought. Whether it sold for high, low or firesale prices is irrelevant. That property is all gone. Sold. And most likely with long term owners who are braced for long term investment, not about to return it to the market tomorrow and realise only minor profits. </p>
<ul>
<li>With vacancy rates this low and the Southern markets of Sydney and Melbourne now reaching their zenith, one also has the value proposition that the Gold Coast presents to the foreign buyer. A quick check on the algorithm for the $AUD to Chinese RMB (now 4.60 to $1AUD), noting that five years ago the equation represented a 25% currency increase, with the RMB to $AUD at 6.12. If you thought Gold Coast property was cheap before, try it with a 25% discount!</li>
</ul>
<p>I concede that a 25% currency discount is an almost unfair advantage, and it’s the reason why my advice to clients now is not to hesitate on purchasing in the Gold Coast. With vacancy rates so low, a simple $450k investment, realising up to $480/$500 per week rental is all possible, with the near term pressure to push the rental yields up even higher as the sea change effect also brings more residents to the Gold Coast. </p>
<p>Again I ask, do you think I’m guessing about this [migration to the Coast] Sea Change effect? Think again. For those who thought that Gold Coast is an employment desert, I’d challenge that with facts. In 2014, the Coast provided a whopping <span><em>181,856</em></span> net jobs increase. A different data sample reveals similar outcomes with recent figures from the Australian Bureau of Statistics (ABS) pointing to 14,100 net jobs increase per month. The fact that in 2013 that figure was <span><em>19,662</em></span> should demonstrate that the trajectory is not just good...it’s gobsmacking. With a current population of 535,000 and projections of a population of 680,000 by 2021, (QLD Office of Economy and Statistical Research Population) there is a lot of room for rationing this growth and still achieving outstanding property prices in the near future.  These recent ABS figures put the Gold Coast at the top of Queensland’s employment economy.  </p>
<p>Of course, other regions are not immune to the same primary drivers that subscribe to this logic (the cure for low prices IS low prices). That brings Wollongong, the Hunter and certainly some other regional bastions like Cairns and Townsville. <br><br> For me however, the clincher is certainly the extra ‘froth’ that gets created around Gold Coast by the strong support by overseas investment. That is not to say some of these other regions do not see the same benefit; they do. But in its brief but important history, the Gold Coast sits at the top of the queue for international investment. And with all signs pointing to more inward investment that out with the $AUD exchange rate, look for “the Goldie” to outstrip all its peers in spades!  </p>
<p>So with my investor hat on now and the old adage that ‘the trend is your friend’...this is one trend that, in my opinion, is not only predictable...but imminent!</p>
<p><em>Gavin McPherson is chief executive officer of Oasis Property Buyers Agency and author of "Value Investing in Property: What would Warren Buffet do if he was investing in property in Australia?" He can be contacted <a href="https://www.oasisproperty.com.au/oasis-buyers/oasis-property-buyers.php" target="_blank">here</a>.</em></p>
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The ripe apple for investors? Oasis' Gavin McPherson

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<div>Although commentary often tends to focus on the dollar value of loans written in the housing market (which in the case of Sydney have been going through the roof) the actual number of home loans being written in Australia on a monthly basis is still some way below the levels seen across 2006-8. </div>
<div> </div>
<div>In Sydney home loan volumes have even been tracking well below where they were in 2003 when the headount of the harbour city was considerably smaller, though the past two months of figures have recorded a big surge which is not yet fully reflected in the trend data. </div>
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<div>Looking at the high level figures the trend in home loan volumes has generally been up for the three most populous states since 2012, but transaction volumes can hardly be said to be high compared to where they have been in the past. </div>
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<div>Volumes have been trending down in Western Australia since July 2014, while the trend in the Northern Territory for want of a better word has "crashed" by a third since September and is threatening to soon take out the lowest levels seen in more than a decade. </div>
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<div>Home loan activity levels in South Australia are...flatlining. </div>
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<div><span>A similar pattern is also evident when looking at the below chart of home loans by property type, with home loans to purchase established properties in a multi-year uptrend but still not even close to previous heights.</span></div>
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<div><strong><span style="text-decoration: underline;">Stamp</span></strong></div>
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<div>There are a number of reasons for these muted home loans volumes, not least the more significant market share of investors seen through this cycle in Sydney and Melbourne in particular.</div>
<br><span>I'll offer another: stamp duty.</span><br><br><div>With rising property prices already pushing the boundaries of detached housing affordability in Sydney and Melbourne close to breaking point, stamp duty - a levy which is ratcheted up as the purchase price increases - acts as a further disincentive to trade.</div>
<div> </div>
<div>This has long been an issue in London at the premium end of the market, where plainly ridiculous<a href="https://www.gov.uk/stamp-duty-land-tax/residential-property-rates" target="_blank"> </a>rates of stamp duty above GBP 925,000 absolutely discourage buying and selling, and instead encourage owners to sit on prime location sites for as long as they feasibly can. </div>
<div> </div>
<div>I can't speak for others, but certainly whenever I've written a stamp duty cheque to the OSR the last thing I am thinking of is subsequently selling a property, and indeed neither my wife nor I have ever sold a property in 19 years, in part for that very reason.</div>
<div> </div>
<div>While stamp duty can serve one useful purpose in making the market more stable and less attractive to "flippers", it also discourages labour market mobility and creates a royal pain in the tail for homeowners who are required relocate for work. </div>
<div> </div>
<div>Arguably both homeowners and investors are becoming more inclined to such buy and hold strategies while accepting that there will be inevitable market downturns, in part because the transaction costs are so punitive: buy, hold, and hold some more. </div>
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<div><strong><span style="text-decoration: underline;">First homebuyers</span></strong></div>
<div> </div>
<div>On a related note, the share of first homebuyers loans in the market has trended down to 15.4 per cent, which is at least a couple of full percentage points below what was seemingly becoming the norm before the financial crisis struck (whereupon market incentives led to an enormous spike in first homebuyer market share). </div>
<div> </div>
<div>We know that the data may be incompete, but affordability - and specifically the deposit hurdle - is playing an obvious role here too, nudging a proportion of first time buyers towards buying an investment property as a first step onto the housing ladder instead of a place of residence. </div>
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<div><a href="/images/2015/09/15/HF3.jpg" target="_blank">Click to enlarge</a></div>
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<div>
<div>Stamp duty is a key consideration for first homebuyers or new market entrants too.</div>
<div> </div>
<div>It is often said or implied that first homebuyers should start with an entry level property and then look to trade up later, but with the average first homebuyer <strong>loan</strong> <strong>size </strong>now passing $340,000, new entrants to to the market must be seriously considering how many times in their lives they want to be trading property. I know that I would be. </div>
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<strong><span style="text-decoration: underline;">Dwelling starts to peak in 2015</span></strong><br><br><div>A number of forecasts and indicators have suggested that dwelling starts could peak in 2015, and the new dwellings data does not contradict them, although with so many new builds being sold offshore to Asia through this cycle arguably this data series is a less useful indicator than it once was. </div>
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<div>
<span>Construction loans written to owner-occupiers have also been trending down in recent months.</span><br><br><div>On the other hand the rise in property prices and associated equity gains has for some time been predicted to cause a renovations boom. Certainly this is what we witnessed through 2003 as the preceding Sydney market boom approached its peak. </div>
<br><div>There has already been a decent uplift in renovations activity in Sydney, but the "alts &amp; adds" figures to date have barely even hinted at much going on elsewhere. </div>
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<div><a href="/images/2015/09/15/HF6.jpg" target="_blank">Click to enlarge</a></div>
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<div><span>Driving around Brisbane it certainly "feels" as though there is more renovation work underway, but this may just be good old anecdotal evidence giving a bum steer. </span></div>
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<div>
<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

Property hot, but volumes not: Pete Wargent

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<p><span>June quarter house and unit sales in Queensland continue to </span>climb with regional centres are showing hints of recovery,<span style="line-height: 1.3em;"> according to the REIQ's recent Queensland Market Monitor.</span></p>
<p><span style="line-height: 1.3em;">Investor activity is picking up in both the Gold Coast and the Sunshine Coast with Cairns and the Fraser Coast showing promise of market stability with less average days on market and levels of vendor discounting for unit markets.</span></p>
<p><span style="line-height: 1.3em;">Sales volumes are slowing for a second consecutive quarter in Toowoomba’s house market.</span></p>
<p><span style="line-height: 1.3em;">REIQ chief executive officer Antonia Mercorella said regional centres, where the impact of the GFC and mining downturn continue to be felt years later, are 'defiantly consistent'.</span></p>
<p>"The southeast corner remains the powerhouse of the state’s real estate market, with Brisbane LGA recording a new high median house price of $610,000," she said.</p>
<p><span style="line-height: 1.3em;">“The market in the southeast corner is performing well and this will eventually be felt throughout the rest of the state.</span></p>
<p><span style="line-height: 1.3em;">"Even though some of our regional centres are struggling, we are seeing signs of a return to equilibrium."</span></p>
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