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 number of fresh listings nationally went up by 4.1% when compared to the same period last year, according to CoreLogic RP Data.
According to the CoreLogic RP Data Property Pulse for the week ending 6 September, new properties on the market hit 42,609 over the past month driven by capital cities demand where listings were higher 4.9% than the same time last year.
The largest new listing increases was in Sydney with 18.1%, Canberra 18.5% and Melbourne 9.7%. Compared to last year new listings in Adelaide fell 3.9%, Perth down 17.5%, Hobart down 12.7% and Darwin falling 23.7%.
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mick.cee-iDmgDDAmu8

Fresh listings nationally up 4.1% year on year: CoreLogic RP Data

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Gross rental yields for combined capital city houses are 3.4% and 4.3% for units in August, according to CoreLogic RP Data.
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The CoreLogic RP Data August Rental Index Results found combined capital city house and unit rental yields are currently at a record low. A year ago, combined capital city gross rental yields for houses were 3.7% and 4.5% for units.
Rental returns are expected to fall lower over the next few months.
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Gross rental yields at record low: CoreLogic RP Data

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GUEST OBSERVER
A swell in the number of listing this spring will bring positive changes to the property market.
House-hunters will already have noticed a rise in homes for sale earlier in spring than usual offering choice, better affordability and less pressure when it comes to finding a new home.
It has started to shift into a more traditional housing market along the eastern seaboard.
As listing slowly rise, we can expect price growth to still be above average but remain at a more sustainable level.
There won’t be a dramatic fall away of prices in markets such as Sydney and Melbourne where demand remains strong, however, we won’t see street records continuously being broken. 
Vendors need to be mindful we have enjoyed an extended period of incredible growth and may need to adjust price expectations. 
The media is still going to quote these spectacular sales results but I would suggest, that these are likely to become a bit more one off.  It will be home by home. Quality will still stand out.
Real estate that offers a "lifestyle" and that is well presented, requiring minimal updating, will be on the top of buyer’s wish lists and should fetch top dollar.
Even average agents have done well over the past two years but as we shift into a more traditional scenario where negotiations will be a key, it will be important for vendors to do their research. 
They need to ensure their agency has marketing plans and a good active database.
Proper preparation of a property for sale such as styling or minor home improvements on the advice of your agent could pay off in the current market.
Buyers typically come within the first two weeks of any marketing campaign. 
There is a risk that if vendors have unrealistic price expectations and turn down offers leaving their property for sale for an extended period, then the property will lag on the market. 
Changes to investor lending is anecdotally already starting to have an impact on the market.
They are being replaced by cashed-up buyers who previously missed out on purchasing either because of strong competition, price growth or lack of supply over the past 18 months.
Grant Harrod is chief executive officer of JL Hooker and can be contacted <a href="https://about.ljhooker.com.au/leadership-team" target="_blank">here</a>.
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jchancellor-FAypfDUnLy

Swell in spring property listings: LJ Hooker's Grant Harrod

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GUEST OBSERVER
As always, a plethora of information on lending for housing-related purposes. The headline number, which is the value of total lending over July, rose by 1.5%. The detail reveals that loans to owner-occupiers (O-Os) rose by 2.2% and loans to investors were 0.5% higher. 
O-Os: There has been pretty reasonable growth in lending to O-Os over the past year. By value lending is up 14.0% through the year and by number it’s up 3.9%. The difference between the two largely reflects the strong lift in dwelling prices which means that the average loan size has risen quite 5 solidly. Today’s data shows that the average new loan size for an O-O was 365k in July – up 9.8% through the year. Clearly, interest rate cuts have helped contribute to a lift in average loan size because the capacity to borrow rises when borrowing costs fall.
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Investors: For much of the past two years, lending to investors has been the dominant driver of housing-related lending growth. 
But in the last few months lending to investors has cooled a little. It’s still early days, but there are some tentative signs that some of the measures introduced by a number of banks to slow investor-related lending growth are having the desired impact. A gradual decline in rental yields is also playing its part in moderating the rate of lending growth to investors. We expect this trend to continue over coming months. 
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Construction: Total lending for dwelling-related construction fell slightly over July to leave annual growth at 12.9%. The solid growth in construction lending mirrors the lift in building approvals and residential construction surge currently underway. This story still has a way to run and the latest building approvals data shows that the pipeline of residential construction to come is deep. Dwelling construction generates jobs and the multiplier effect benefits other sectors of the economy. It will also help to alleviate some of the supply/demand imbalances in the property market, particularly in Sydney where dwelling prices have been running riot. 
States: The data on O-Os by State in July shows that annual growth in the number of loans is strongest in NSW (+11.0%), followed by QLD (+4.3%) and Vic (+3.6%). Unsurprisingly, the capital cities of these States have had the strongest house price growth over the past year. Other State results were Tas (+2.0%), SA (+0.4%) and WA (-6.8%). An update on lending to investors by State will be in Friday’s Lending Finance publication.
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First home buyers: The number of loans to first home buyers fell by 1.0% in July to be down 1.1% through the year. First home buyers represent just 15.4% of all dwellings financed – close to record lows. 
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Gareth Aird is economist at Commonwealth Bank and can be contacted <a href="https://www.propertyobserver.com.au/https://au.linkedin.com/pub/gareth-aird/14/790/905" target="_blank">here</a>.
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Housing-related lending up in July: Gareth Aird

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GUEST OBSERVER
In all the talk about the effect that APRA’s restrictions may have on the property market, there are few things that strike me.
Firstly 
There is a very real danger in applying a national remedy to a problem that is not national.
Everything is not same-same across Australia – there is no ‘boom’ evident in most places outside Sydney and Melbourne – and even within those markets, it’s not in all suburbs
There should be more engagement with financial and real estate industries before decisions are reached. 
Look what happened in New Zealand when the Reserve Bank there introduced lending restrictions on people buying houses in Auckland. It didn’t really impact where they want it to but it did cruel the first home buyer market.
Don’t strangle a market when and where you don’t need to. Markets in Brisbane, Adelaide, Perth and Canberra, let alone Australia’s provincial and regional centres, are not in the same ball park as those Sydney and Melbourne markets that many commentators focus on. 
The vast majority of markets don’t need to slow down. Some are already deflated.
In CoreLogic’s September 2015 Housing Market &amp; Economic Update, I see:
-        Sydney where home values are consistently trending higher, median house price is $900,000 and median apartment price is $670,000.
-        Melbourne having the strongest quarter of any capital city, median house price is $620,000 and median apartment price is $475,000.
-        Brisbane with moderate capital growth, median house price is $482,400 and median apartment price is $382,200.
-        Adelaide with a slowdown in annual rate of value growth, median house price is $430,000 and median apartment price is $350,000.
-        Perth with declining home values, median house price is $520,000 and median apartment price is $415,500.
-        Hobart with values lower than five years ago though on the rise, median house price is $900,000 and median apartment price is $670,000.
-        Darwin with a sharp decline in home values, median house price is $580,000 and median apartment price is $450,000.
-        And Canberra with falling values in a year-on-year, median house price is $587,800 and median apartment price is $415,000.
Look at the market differences – the different stages they are in their property cycles - and these are just the capital cities!
APRA’s mid-August data demonstrated strong and accelerating growth in investor and interest-only lending but its latest banking statistics released at the end of the month showed some suggestion that investment lending growth was cooling. 
It’s too early to say whether this is the recent clampdown beginning to finally take effect, nor does it do anything to convince me that that APRA’s directives, with their national implications,
Property market activity – anywhere - is underpinned by supply and demand. This is effectively what moves markets through their property cycles.
Undoubtedly there will have to be a shift, with some markets moving past their peak. Others will be on the upswing. That’s the way things work. The danger is in taking a statement like ‘Property prices to fall’ and thinking it applies to every market, every micro-market, in Australia.
Secondly
It is not unusual to see stock market corrections. 
What has occurred last month was a well-timed caution that things are not set in concrete
Will there be a shift in where the investor puts their money? To consider are investing in a nervous stock market, restructuring superannuation investments, putting their cash in banks or buying property.
While the stock market investor will be looking warily around to see what and when the correction is going to be and the cash investor today is not having a good time of it with very low interest rates, the real estate investor needs to keep in mind that in order to gain you need to be able to sit.
If you can invest in property, be in it for the long haul.
Property market growth is something we are likely to see in most parts of Australia.
The volatility in the stock market right now is making property a much safer investment strategy.
There will be no major collapse in the next few years, especially while the interest rates are low, employment prospects are good, there is a backlog in construction of new property and our dollar is attracting foreign buyers
Thirdly
Banks don’t make money by keeping money in the bank, they make money by loaning money to investors. 
Banks are in the business of making a profit. When something threatens the profit margin, one of the things they can do is to pass on their losses to consumers.
With the APRA measures, the big lenders’ exposure – their need to hold capital – has almost doubled. Because they have to hold more, they can’t make as much money; they need more money so they can continue to lend. What are the options? They can increase the cost to the investor in order to meet their targets; they can raise capital from their investors by issuing additional shares, as the CBA is doing; or they can pull out of the investor market altogether, like we saw AMP do.
The heat in predominantly inner Sydney and Melbourne markets led to APRA’s involvement in limiting investor lending, with the flow-on impacts on banks and the strategies they subsequently employ.
There is still no guarantee that is will impact on Sydney and Melbourne market heat but it may mean there is less available for lending into other markets. So it is even possible that we may see a widening of the gap between Sydney/Melbourne and the rest of the Australian markets.
Fourthly
For as diverse the property markets are across Australia, so are the property consumers. How might different groups of people be affected?
There are some areas where first-time buyers can’t afford to buy a property where they want or need to live, so they become investors in order to enter the property market. These people may be caught out, or caught short, by having to come up with a greater deposit.
Lending restrictions will have little effect on the massive influences of the Asian market because these buyers usually don’t fall into the ‘lower’ deposit category. 
APRA’s rulings may produce opportunities for some. 
Cashed up property owners who can draw on good equity may buy up investment property. APRA’s June quarter figures suggested an increase in the number of borrowers using 20 to 40% deposits, accounting for half the new housing loans for that quarter. 
If we do see a slow-down in the rate of property price growth in some Sydney and Melbourne suburbs, financially-able buyers may make a move upwards and free up more affordable property for first home buyers. 
With the pricing differential between the heated markets in Sydney and Melbourne, the traditional swell of migratory property buyers may be even more apparent.
The south to north trend takes property buyers to markets such as Northern New South Wales, Gold and Sunshine Coasts, and up to North Queensland where property prices are more moderate, yield is good capital growth predictions are healthy, which frees up investor capital to put into superannuation or indeed more property.
The rules haven’t changed though when it comes to buying well-located property close to transport, good job availability and having a growing population. And buying for investment potential rather than because you would want to live in yourself.
Where under supply is a recognizable problem, perhaps giving more support to developers and builders would better control pricing than would curbing investor borrowing.
Michael Davoren is managing director, RE/MAX Australia and RE/MAX New Zealand and can be contacted <a href="https://www.remax.com.au/Michael-Davoren" target="_blank">here</a>.
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Recent APRA tightening may produce opportunities for some: Michael Davoren

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The level of fresh listings nationally has increased 4.9% when compared to the same period one year ago, with homes in capital cities increasing 8.9% compared to this time last year, according to CoreLogic RP Data's latest Property Pulse.
According to the report some 233,119 properties were added to the listings pool over the past month, with the largest increase in listings numbers for the four weeks ending August 30 in Sydney (16.4%), Melbourne (9.7%) and Canberra (17.7%).
Sydney's total stock levels are -0.5% lower than a year ago, with Melbourne listings down 4.7% lower than a year ago.
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Fresh listings nationally increase 4.9%: CoreLogic RP Data

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Unit values rose 0.8% over August, higher than the rise in house values at 0.3%, according to CoreLogic RP Data's latest Hedonic Home Value Index.
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The rolling quarterly rate of growth for units is 6.7%, with detached housing at 5.1%.
CoreLogic RP Data head of research Tim Lawless said over the past three months across every capital city except Melbourne and Brisbane, it has been the apartment sector that has shown the stronger growth result,” he said.
“This result comes at a time when apartment supply has ramped up substantially more than detached housing supply. To see such a broad-based over performance of units relative to houses, provides some comfort for developers and purchasers that higher density stock values are appreciating," he said.
"Since May 2013, dwelling values have risen at a faster pace than weekly rents. The result of the disparity between dwelling values and dwelling rents has been a consistent downwards trend in gross rental yields."
 
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Unit values rose 0.8% over August, houses 0.3%: CoreLogic RP Data

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Four out of the top ten locations for the highest proportion of auction listings for units are in Melbourne, with Kew East and Carlton North beating the Sydney suburb of Bronte to round out the top three.
According to CoreLogic RP Data, Balaclava and Surrey Hills were the only other Melbourne suburbs to make the list.
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Top ten suburbs for highest proportion of unit auction listings: CoreLogic RP Data 

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<div>Historically dwelling listings tend to begin to rise from the end of August.</div>
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<div>However, nationally dwelling stock on market levels remain 1.3% lower than a year ago.</div>
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<div>At the capital city level stock on market has declined over the past year in Hobart (-11%), Canberra (-8%), Melbourne (-5%), Brisbane (-3%), Adelaide (-2%) and Sydney (-1%).</div>
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<div>However, there have been significant increases in stock on market in the struggling markets of Perth (+18%) and Darwin (+15%).</div>
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PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>. 
His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.
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Stock for sale virtually unchanged from last year: Pete Wargent

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GUEST OBSERVER
The forecasts verses actuals reveal the nation outside Sydney is recording slightly weaker growth than we expected and Sydney is recording more robust growth than what we expected for this year. 
Why?
<ul>
<li>The mining downturn is having a considerable impact in a number of cities.</li>
<li>Listings remain well supplied, particularly in Brisbane, which itself has been a victim of the downturn, represented by higher than average unemployment (particuarly white collar) and manifested through high CBD offices (and residential vacancy rates).</li>
<li>The second rate cut of May 2015 was not built into our forecast. As a result Sydney has risen faster than our more optimistic expectations.  </li>
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Note our forecast was for dwellings based on the ABS data. The ABS is not reporting for the June quarter until the end of September so we have decided to use the APM data on the interim. Our base case scenario became redundant once rates were cut in February and the dollar sank below $U.S 85 cents (December 2014). That put Scenario Two squarely in focus which was for more robust growth with Sydney leading the charge once again at 11-15%. We formally updated the market about this change at the end of March. By all accounts, Sydney has done more than our forecasts so far this year. The second rate cut of May ensured this with property investors entering into a frenzy that shot the average Sydney house up by an estimated $50,000 in just a few short weeks. Literally, the market ‘gapped up’. Since then I get the impression the market is still testing those highs and is struggling to move much further. This is illustrated by lower auction clearance rates recorded in the past 8 weeks then the preceding period. Going forward, clearance rates will fall in Spring (as they always seasonally do). Most likely they will fall to the mid 60s. If they so happen to fall below 60% then something more negative is going on. Otherwise it will be just a very normal Sydney market. While we believed Perth was at a higher risk of a correction, we still believed the probabilities were that Perth would largely flatline on the basis that rate cuts would provide a soft landing. The rate cuts have provided a soft landing of sorts, but not to the point of stopping a correction. Perth dwelling prices are now falling. This is showing up in the APM numbers AND our own asking prices, which suggests vendors have lowered their asking prices on average by 4% over the past 12 months. While downplaying other bullish forecasts for Brisbane in 2014, we did lift our forecasts for 2015. However Brisbane is proving to be largely flat-lining this year as well. The reality is underlying demand in Brisbane remains sluggish and investor related demand also soft. The total housing finance approvals chart for Queensland illustrates this story. Yes there has been a little pick since the downturn of 2010-2012 however this year housing finance approvals have been flat.
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The end result is still more sellers than buyers in the market and this can be clearly seen on our stock on market index for the city. Until such time as there is a definite trend of declining stock, it is hard to see how Brisbane is going to record any substantial rise in prices, let alone a new property boom.  It is a similar story for Adelaide and Hobart, however we still remain more bullish on Hobart and think activity is increasing<a href="https://sqmresearch.us5.list-manage.com/track/click?u=9badbd870addb4af72206c2eb&amp;id=ba8e44005c&amp;e=0aab96dc54" target="_blank"></a>. Nevertheless outside Sydney and Melbourne, it is indeed a patchy market. This present climate comes with investor credit lending now slowing, potentially as a result of APRA’s actions. APRA has very recently stated it is now going to take a wait-and-see approach to the market. As APRA has now flexed its muscles and proved itself to be a key influencer on the housing market, it is interesting to note APRA’s current view of the world as presented last week, by the organisation’s chairman.   In short:
<ul>
<li>APRA believe that that housing portfolio risk profiles might have increased, and underwriting standards have “softened”, over time.</li>
<li>They believe house prices are “high” in areas outside Sydney and Melbourne.</li>
<li>They are largely leaving up to the Approved Deposit Institutions (Banks etc) to determine how best to meet APRA’s 10% investor lending annualised growth rate threshold should be applied.</li>
<li>They have left the door open to policies focussed on specific cities but for now will not employ such policies.</li>
</ul>
Perhaps the best way to gauge whether they will take further action down the track is by watching Investor housing credit which is published by the RBA. The latest result came out yesterday, which recorded a 0.6% increase in this measure. This was welcome news as the month result is below the annualised threshold of 10% growth set by APRA with some pundits claiming this is evidence of the APRA initiatives now working. One way, or the other, it appears APRA are intent on keeping investor credit growth below their stated 10% threshold. Given that it has been investors that have predominantly driven the housing market upward since 2012 there are ramifications for this policy. And that is slower housing price growth at the national level for next year. The magnitude of which we will explore in our 2015/2016 Housing Boom and Bust report, which is due to be released again later in September. On the interim, we will shortly be releasing a GOLD Coast outlook report including an assessment rating. That should be out on our website in time for next week’s newsletter. Needless to say, we have become rather bullish on the<a href="https://sqmresearch.us5.list-manage2.com/track/click?u=9badbd870addb4af72206c2eb&amp;id=8decbe51c1&amp;e=0aab96dc54" target="_blank"> </a>Coast.
Louis Christopher is property analyst for SQM Research. He can be contacted <a href="https://www.sqmresearch.com.au/" target="_blank">here</a>. 
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