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

International

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The International Monetary Fund (IMF) started a global house price index last year. 
They recently released a set of charts detailing their findings on world housing prices.
They continue to track house prices around the world. Their chart with annual percent change is based at Q2, 2014. It puts Australia fourth highest given a 7.4% gain.
Click to open in new windows: 
<a href="/news"> </a><a href="https://www.imf.org/external/research/housing/images/globalhousepriceindex_lg.jpg" target="_blank"><img src="https://www.imf.org/external/research/housing/images/globalhousepriceindex_600px.jpg" alt="chart of house price index"></a><a href="https://www.imf.org/external/research/housing/images/housepricesaroundtheworld_lg.jpg" target="_blank" style="font-family: Tahoma, Helvetica, Arial, sans-serif; font-size: 12.1599998474121px; line-height: 1.3em;"><img src="https://www.imf.org/external/research/housing/images/housepricesaroundtheworld_600px.jpg" alt="chart of house prices around the world"></a>
Credit growth Around the world:
<div>
<a href="/news"> </a><center><a href="https://www.imf.org/external/research/housing/images/creditgrowth_lg.jpg" target="_blank"><img src="https://www.imf.org/external/research/housing/images/creditgrowth.jpg" alt="chart of credit growth around the world"> </a></center>
</div>
House price-to-income ratio:
<div>
<a href="/news"> </a><center><a href="https://www.imf.org/external/research/housing/images/pricetoincome_lg.jpg" target="_blank"><img src="https://www.imf.org/external/research/housing/images/pricetoincome.jpg" alt="chart of house price-to-income ratio"> </a></center>
</div>
House price to rent ratio:
<div><center><a href="https://www.imf.org/external/research/housing/images/pricetorent_lg.jpg" target="_blank"><img src="https://www.imf.org/external/research/housing/images/pricetorent.jpg" alt="chart of house price-to-rent ratio"></a></center></div>
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jchancellor-FAypfDUnLy

Australia ranks fourth in IMF's global house price index

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There was little consensus on what the next move for interest rates in Australia was.
Several economists have changed their predictions from flat or rising rates through 2015 to forecasts of declines, while others maintain that the next shift will be up.
A key financial market indicator, <a href="https://www.sfe.com.au/content/prices/rtp15SFIB" target="_blank">the ASX 30 Day Interbank Cash Rate Futures</a> February 2015 contract, on 27 January revealed a 38% expectation of an interest rate cut to 2.25% at the RBA’s board meeting on 3 February. But, with the release of higher than anticipated inflation data for the final quarter of 2014 on 28 January, the indicator dropped sharply to 16%, suggesting much lower expectations of a rate cut in February.
Click to open in new window:
<a href="/images/2015/01/30/zoe-jan-30-onem.jpg" target="_blank"><img src="/images/2015/01/30/zoe-jan-30-onem.jpg" alt=""></a>
Source: global-rates.com, Property Observer research.
Some economists, including HSBC Bank’s chief economist for Australia and New Zealand Paul Bloxham, say the latest inflation figure means interest rates are now more likely to remain on hold through 2015 than be cut.
The RBA bases its interest rate decisions on a wide range of economic drivers. Local inflation figures are a critical component. But global economic factors such as falling oil prices and uncertainty in the economic outlook for Australia’s trading partners and other countries also have an influence.
Property Observer had a look at what central banks in other countries are doing with their official interest rates.
The RBA bases its interest rate decisions on a wide range of economic drivers. Local inflation figures are a critical component. But global economic factors such as falling oil prices and uncertainty in the economic outlook for Australia’s trading partners and other countries also have an influence.
Trading partners
China is Australia’s biggest two-way trading partner so its economic health is vital to Australia. China’s economy has been slowing and in November 2014 its central bank cut interest rates for the first time in two years in move to improve the situation. Its official interest rate is now at 5.6%, down from 6% in November.
Australia’s second largest trading partner is Japan. The Japanese economy has been in a poor state for years. Its official interest rate is just 0.1%.
The Federal Reserve, the central bank of Australia’s next biggest trading partner, the USA, has been vocal about its intentions to keep rates low for the near term. Its interest rate has been at 0.25% since December 2008, when the Fed slashed rates from 1%.
The table below shows the current interest rates of several major countries, the previous interest rate and the date of the most recent change.
As the table shows, many countries have been lowering interest rates. Most recently, at the end of January, Canada surprised markets by cutting rates, while Switzerland further lowered its negative interest rate, so customers must pay more to the central bank for holding their money.
Only a handful of countries have boosted rates in recent months, one being New Zealand, which is another of Australia’s top 10 trading partners. New Zealand lifted its interest rate in July last year to 3.5%.
While many countries manage monetary policy through interest rates, Singapore, another of Australia’s most important trading partners, manages its foreign exchange rate instead. On 28 January, the Monetary Authority of Singapore surprised the market by saying it would take measures to slow the rise of its dollar. This could be considered its version of cutting interest rates.
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zfielding-GvX3Uq9KTa

What central banks around the world are doing with interest rates

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A two level New York penthouse of the One57 condominium tower has been settled with the price of US$100.5 million, a record for Manhattan.
Unit 90, which spans the 89th and 90th floors of the 306-metre tower, has almost 1,020 square metres of space at One57 West 57th Street.
Bloomberg reported <a href="https://www.one57.com" target="_blank">One57</a>, near Carnegie Hall, broke ground amid the global property crisis (or rout as the US called it) in 2009, then setting off a high-end residential development boom. 
Sales at One57 began in 2011 and have topped $1 billion. As of the end of September, 24 of the project's 94 condos were unsold.
Another duplex at the building, spanning the 75th and 76th floors, is under contract at more than $90 million to an investment group that includes Bill Ackman, founder of New York-based hedge-fund firm Pershing Square Capital Management. 
The luxury skyscraper apartment building designed by French architect Christian de Portzamparc.
Extell is listed on the Tel Aviv Stock Exchange, where the company sells debt to investors.
City records show the mystery buyer was listed as P89-90 LLC, the sale having been first announced in May 2012.
The deal sets a new bar for the Manhattan residential market, breaking a record set in 2012 when former Citigroup, chairman Sanford Weill sold his penthouse at 15 Central Park West for $88 million to fertilizer tycoon Dmitry Rybolovlev.
The priciest closed sale of the year was hedge-funder Israel Englander’s purchase of the former French Ambassador’s residence at 740 Park Avenue for $71.2 million, the most ever paid for a NYC co-op. Broker Serena Boardman of Sotheby’s handled the listing, the realdeal.com reported.
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$100 million New York penthouse sale at One57

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Sydney has been ranked the third most unaffordable major property market in the latest annual Demographia International Housing Survey.
Melbourne took sixth spot on the unaffordability index.
Hong Kong was ranked the most unaffordable place to buy a house, followed by Vancouver.
The report noted historically, the median multiple had been "remarkably similar" in Australia, Canada, Ireland, New Zealand, the United Kingdom and the United States, with median house prices from two to three times median household incomes.
"However, in recent decades, house prices have been decoupled from this relationship in a number of markets, such as Vancouver, Sydney, San Francisco, London, Auckland and others," the report said.
<a href="/images/2015/01/19/unaffrodabe-jan-19-one.jpg" target="_blank"><img src="/images/2015/01/19/unaffrodabe-jan-19-one.jpg" alt=""></a>
Source: Demographia
The US was the most affordable place to buy a house of all the countries surveyed, with 14 major property markets ranked as being affordable.
New Zealand property values rose 4.9% last year, less than half the pace in 2013, according to recent QV figures, but Auckland ranked ninth.
The 11th annual Demographia survey analysed 86 major property markets in New Zealand, Australia, the United Kingdom, United States, Canada, Hong Kong, Ireland and Singapore.
<img src="/images/2015/01/19/unaffrodabe-jan-19-two.jpg" alt="">
Source: Demographia
The most affordable major metropolitan markets in 2014 were in the United States, which had a moderately unaffordable rating of 3.6. 
Canada and Ireland were rated "seriously unaffordable," with a median multiple of 4.3, along with Japan (4.4), the United Kingdom (4.7) and Singapore (5.0). Australia (6.4), New Zealand (8.2) and Hong Kong (17.0) were severely unaffordable.
Hong Kong's median multiple of 17.0 was the highest recorded (least affordable) in the 11 years of the Demographia International Housing Affordability Survey.
Click to open in new window: 
<a href="/images/2015/01/19/unaffrodabe-jan-19-three.jpg" target="_blank"><img src="/images/2015/01/19/unaffrodabe-jan-19-three.jpg" alt=""></a>
Source: Demographia
Again, Vancouver was second only to Hong Kong, with a median multiple of 10.6.
Housing affordability in Sydney deteriorated to a median multiple of 9.8, which was followed by San Francisco and San Jose (each 9.2). 
Melbourne had a median multiple of 8.7 and London (Greater London Authority) 8.5. 
Three other markets had median multiples of 8.0 or above, including San Diego (8.3), Auckland (8.2) and Los Angeles (8.0). 
For the 11th year in a row - each of the years the Demographia International Housing Affordability Survey has been published - all of Australia's five major metropolitan areas were severely unaffordable.
Sydney's median multiple of 9.8 was a substantial increase from last year's 9. It was based on an $812,000 median price and an $82,800 median household income.
Housing affordability also deteriorated in Melbourne, rising to a median multiple of 8.7 in 2014 from 8.3 in 2013, based on $658,000 and $75,900 income. Housing affordability deteriorated slightly in Adelaide (from 6.3 to 6.4 based on $410,000 median and $63,600 median income), Perth (from 6.0 to 6.1 $535,000 and $87,200) and Brisbane (from 5.8 to 6.0 $465,000 and $78,000). 
The top 10 most unaffordable city markets in the world:
1. Hong Kong 2. Vancouver 3. Sydney 4. San Francisco 5. San Jose 6. Melbourne 7. London 8. San Diego 9. Auckland 10. Los Angeles
Source: Demographia
Among all 378 markets, there were 98 affordable markets, 88 in the United States, five in Canada, three in Ireland and, for the first time, there were affordable markets in Australia, <a href="https://www.demographia.com/dhi.pdf" target="_blank">perhaps the only surprise</a> in what has been a highly repetitive predictable survey.
The most affordable surveyed Australian market was suggested as Karratha, in Western Australia's Pilbara, with a median multiple of 2.6. Kalgoorlie, also in Western Australia was judged the second most affordable Australian market, with a median multiple of 2.8. 
"These improvements appear related to resource industry related demand decreases," the report's author Wendell Cox noted.
But amid the smaller surveyed markets Tweed Heads sat in the highly unaffordable at a 9.1 median multiple and Port Macquarie, with a median multiple of 8.2. 
In 2008 the survey suggested Australia was perhaps the least densely populated major country in the world, but state governments there have contrived to drive land prices in major urban areas to very high levels, with the result that in that country housing in major state capitals has become severely unaffordable.
House price data for Australia is from multiple sources, the most important being the Real Estate Industry Association of Queensland (Queensland Market Monitor), the Real Estate Institute of Victoria, the Real Estate Institute of South Australia, the Real Estate Institute of Western Australia, Australian Property Monitors, the Real Estate Institute of Australia and various real estate internet web sites.  
The report noted in Australia, housing affordability multiples have been published that compare average household incomes and median house prices. 
"To make valid comparisons between international markets, it would be necessary to also calculate these "average/median" multiples for the markets outside Australia to which comparisons are made (and to provide historical data). However, "average/median" multiples have been inappropriately compared to median multiples," Wendell Cox advised.
"This treatment portrays Australian housing affordability, which is among the worst in the high-income world, more favorably than the reality." 
While Property Observer takes housing affordability seriously, the results of the report are, as noted, predictively repetitive. So which of the three most expensive cities would you prefer to live in? 
{mijopolls 75} 
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Only Hong Kong and Vancouver dearer than Sydney's severely unaffordable housing: 11th Demographia 2015 survey

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Global property portal Lamudi have compiled a list of five emerging international markets which are often overlooked.
They have used market trends, infrastructural developments and attractive commercial, residential and industrial real estate opportunities as markers.
<h3 style="text-align: left;" align="center">Lamudi's top five emerging real estate investment hotspots:</h3>
<ul>
<li>
Colombo, Sri Lanka
</li>
</ul>
Sri Lanka’s largest city and commercial capital is currently undergoing a dramatic transformation. Driven by Sri Lanka’s economic growth and infrastructure development, there has been greater urban migration towards Colombo, as well as a number of wealthy Sri Lankans moving back to the city following the end of the country’s civil war, leading to demand for both luxury and affordable housing.
<ul>
<li>
Cartagena, Colombia
</li>
</ul>
Colombia’s main platform for foreign trade, Cartagena’s ports, airport and close proximity to the Caribbean, Florida and Panama, position the city as a key investment spot. Renowned, international companies are putting down roots in Cartagena, taking advantage of Colombia’s 48 trade agreements and strategic location. Not only an industrial hub, Cartagena’s tourism industry is thriving, with world-class hotels investing in expansion in the city.
<ul>
<li>
Irbid, Jordan
</li>
</ul>
Investment in Jordan is primarily concentrated in real estate, financial services and tourism. Jordan’s third largest city by population, Irbid, has a number of attributes that create attractive opportunities for real estate investors. Considered the cultural capital of Jordan, Irbid is home to a number of universities, including Yarmouk University, the Jordan University of Science and Technology, and a number of businesses related to these institutions. Furthermore, the city acts as an important transportation connection between Amman, Syria and Mafraq.
<ul>
<li>
Naivasha, Kenya
</li>
</ul>
Located 90 kilometers northwest of Nairobi, Naivasha has attracted a number of developers into the region. Tourist attractions in and around Naivasha, such as the Lake Naivasha, Hell’s Gate, Aberdare Hills and Longonot National Park have led to the town’s development as a preferred getaway location, increasing demand for holiday homes in the area.With an environment conducive to both business and leisure, in addition to the availability of land, 2015 will see growth in residential, commercial and industrial real estate investment opportunities in Naivasha.  
<ul>
<li>
Faisalabad, Pakistan<a href="https://www.lamudi.pk" target="_blank"></a>
</li>
</ul>
Pakistan’s third largest metropolis has experienced a recent growth in development and construction as a result of the rapid growth of Pakistan’s economy. The city has a large industrial sector, brimming with investment opportunities; Faisalabad’s reputation as a major textile hub makes it an attractive option for commercial property investors, looking to expand into or within Pakistan. With a strategic location at a road and railway junction, and an international airport 15 kilometers from the city, Faisalabad is easily accessible for domestic and international investors.
Source: Lamudi.
{mijopolls 74}
Picture: Cartagena, Colombia. Source: Provided.
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Which of these emerging international real estate markets would you invest in?

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Queensland House, a six-storey building on The Strand in central London, has been listed for sale by the Queensland government.
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It is the office of the Queensland Agent General Ken Smith and his staff.
News Ltd papers suggest property agents tip up to $38 million for the 1980s office building.
<a href="https://www.allinlondon.co.uk/directory/1100/93666.php" target="_blank">393 The Strand</a>, which has retail premises, was reportedly purchased by the state for about $4 million.
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Queensland House, London offices set for sale by Queensland government

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New York ranks first, with Sydney sitting in second place when it comes to the latest Knight Frank forecast for 2015 luxury residential market price growth.
Rising business confidence and an increasing sense of political stability is helping to attract interest in Sydney from overseas, the Prime Global Cities Forecast report from Knight Frank said.
It tips 5% price growth in 2015 for Sydney luxury property markets.
Click to open in new window:
<a href="/images/2014/12/10/kf%20dec%2010%20two.jpg" target="_blank"><img src="/images/2014/12/10/kf%20dec%2010%20two.jpg" alt=""></a>
"The weak Australian dollar is adding to this momentum and also reviving interest from Australian expats," Knight Frank researcher Kate Everett-Allen said.
Knight Frank’s Global Cities Report has eight cities included in its forecast.
New York is back on top with luxury prices across Manhattan expected to accelerate by 5% to 10% over the course of 2015, with strengthening foreign interest from Chinese, British, Russian and Latin American buyers. 
"Sydney is also on the radar of foreign buyers but here limited luxury supply is pushing prices higher, so we forecast by up to 5% in 2015," Knight Frank wrote. 
The report noted Sydney was a beneficiary of the flow of wealth from economic or political crisis locations into ‘safe-haven’ markets.
"In markets like London, Sydney and New York, these flows tend to reinforce demand for established market neighbourhoods, with buyers focusing on wealth preservation and looking for mature and stable markets," according to Knight Frank.
The report pinpointed Sydney's eastern suburbs and the lower north shore.
But the report noted their was a risk of potential political interventions in the residential property markets given the prospect of "further debates" in Australia.
"The rising level of cross-border investment is likely to contribute to further debates in other parts of the world in 2015 (Canada, Australia, Dubai) on the impact of foreign buyers on local residential market affordability and stability," it said.
It noted the House of Representatives Standing Committee on Economics had delivered its review into foreign investment in Australia’s residential property market. 
"No additional restrictions have been placed on foreign purchasers buying in Australia but a list of recommendations have been made to ensure the rules are more rigorously enforced."
"The Significant Investor Visa program that attracts high net worth individuals will be refined and a Premium Investor Visa will be introduced on 1 July 2015; a more expeditious pathway to permanent residency for those meeting a $15 million threshold."
The Sydney forecast noted low interest rates are forecast with banks keen to lend at competitive rates.
The report noted luxury residential markets face a diverse range of challenges and opportunities in 2015, but now that stimulus measures have all but disappeared in the US and the UK, all eyes are on Europe and Japan and the extent to which they could halt the tentative global recovery.
"Of the eight cities included in our forecast we expect two to experience prices gains, one to see prices remain stable and five to see prices decline."
Dubai sits at the bottom of the Knight Frank forecast with prime prices expected to slip by 5% to 10% as limited supply and a growing appetite from Indian purchasers should cushion the market.
<img src="/images/2014/12/10/kf%20dec%2010%20three.jpg" alt="">
Source: Knight Frank
The full <a href="https://content.knightfrank.com/research/379/documents/en/prime-global-cities-forecast-q4-2014-2541.pdf" target="_blank" title="Prime Global Cities Forecast Q4 2014">Prime Global Cities Forecast </a>for city by city analysis by Kate Everett-Allen, says residential markets in the world’s leading cities are well-positioned to benefit from both the peaks and troughs of the global economy.
 
“As there are more purchasers in the prime end of the market, prices are now being achieved closer to the original asking price and in most instances, this was set by the owner several years ago," Knight Frank Australia associate director of residential research Michelle Ciesielski said.
 
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Sydney luxury residential to run second only to New York in 2015: Knight Frank

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With 15% annual price growth, Ireland leads the world in residential price growth.
But with subdued price growth in Dubai and much of Asia slowing, the Knight Frank Global House Price Index record a rise of just 0.1% in the third quarter of 2014 across its 54 surveyed countries.
Some 16 countries had zero or negative price direction.
Australia sat in ninth place with 9.1% annual price growth.
"For the first time in two years the <a href="https://content.knightfrank.com/research/84/documents/en/q3-2014-2540.pdf" target="_blank" title="Global House Price Index Q3 2014">Global House Price Index </a>came close to falling into negative territory," Kate Everett-Allen from Knight Frank research said.
"Muted growth in the third quarter comes on the back of jitters over the global economy, a lingering malaise in Europe and, in the US, a slower-than-expected housing recovery."
Ireland, having languished at the foot of the table for most of 2009 to 2012, saw prices increase by 15% in the year to September.
But Ireland remains 39% below their pre-crisis peak in 2007.
The turnaround in fortunes over the last 12 months (see below) included Spain.
<img src="/images/2014/12/10/kf%20dec%20120%20one.jpg" alt="">
Hong Kong and Dubai, by comparison, have seen price growth slow. 
No country has recorded an annual fall in house prices in excess of 10% for three consecutive quarters.
Dubai mainstream residential prices fell by 5.2% in the three months to September – the emirate’s first quarterly decline in prices in the last four years.
China’s slowdown continued with 58 of the 70 cities tracked by the National Bureau of Statistics recording price falls in the year to September.
In the US, the price of a single-family home increased by 4.8%, down on last quarter’s figure of 6.2%, with Miami pinpointed as the city with the strongest prices rising by 10.3% year on year.
The Knight Frank Global House Price Index was established in 2006 to allow investors and developers to monitor and compare the performance of mainstream residential markets across the world.
The index is compiled on a quarterly basis using official government statistics or central bank data where available.
The index’s overall performance is weighted by GDP and the latest quarter’s data is provisional pending the release of all countries’ results. 
<img src="/images/2014/12/10/houses-list-dec-10-oone.jpg" alt=""> 
Source: Knight Frank
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Ireland residential back on top, with Australia ninth fastest in world rankings: Knight Frank

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With the Australian currency at four-year lows of around US84.7c, there is little doubt that expatriates will be back holidaying here, with a keener eye for house purchasing.
A falling dollar makes local property less expensive for overseas buyers, especially opportune for expatriate Australians anticipating their return to Australia.
With the Australian dollar weaker, property is around 10% cheaper than the US94.9c it was just five months ago for those who are paid in foreign currencies.
The dollar is at the lowest levels since mid-2010. 
Purchasing has tended to peter out as the Aussie climbed higher and estate agents now expect overseas inquiries from expatriate Australians to increase.
But it doesn't necessarily mean higher prices.
In 2004 after plotting the correlation between house prices and US-Australian exchange rates since 1980, Rod Cornish from Macquarie Group concluded there was an interesting link between the rising dollar and house prices.
"Over the long term, house prices climb when the Australian dollar rises against the US dollar. The rate goes up when our economy is performing well, which means that inflation is held down so the Reserve Bank has less need to raise rates," Cornish said.
As a long-term trend, Cornish noted, a rising Australian dollar has almost the same effect on the economy as an interest rate rise.
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Expatriates to enjoy lower dollar house hunting over summer holidays

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GUEST OBSERVATION
There is a nice weather map cartoon by Matt featuring the UK characterised by the varied intensity of dinner table house price conversation. And it is not just that we are obsessed with property values. The dysfunctional national fixation both reflects and is reflected by media and professional hyperbolic language concerning what is going on in local and national housing markets.
For many years, my colleague Tony O'Sullivan and I ran courses for planners on practical housing market analysis. We regularly ran a workshop deconstructing newspaper house price stories as a way to make people more critical of data and more aware of the interests lying behind such stories. We were regularly told that this was also an effective way of breaking out of the mindset that rising house prices are “good” in some sense and that volatility and other housing ills were inevitable (a quick tour of international housing markets can also quickly put paid to that notion).
It is in this context that I approach the recent <a href="https://www.telegraph.co.uk/finance/personalfinance/houseprices/11192271/House-prices-fall-across-England" target="_blank">flurry of house price statistics</a> that some have claimed indicate evidence of a turning point, <a href="https://www.theguardian.com/business/2014/nov/18/uk-housing-market-average-price-slips" target="_blank">a slowing down or a correction</a>.
<h3>Slowing, but growing</h3>
The Nationwide’s UK house prices <a href="https://www.nationwide.co.uk/~/media/MainSite/documents/about/house-price-index/Oct__2014.pdf" target="_blank">October 2014 report</a> was headlined “annual house price growth continues to soften”. This was after a monthly increase (seasonally adjusted) of 0.5%, up from a 0.1% fall in September. The annual growth figure was 9.0%, down from 9.4% in September. The report then goes on to draw on corroborating evidence for a (modest) slowdown – but a slowdown in growth – so house prices are still rising by four times the rate of inflation, just not as quickly as they were. However, the forces said to be acting on house prices can be seen as working in both directions (and this does not appear to be formally modelled).
Earlier this week, the <a href="https://www.bbc.co.uk/news/business-30094813" target="_blank">ONS house price statistics</a> were published for the year to the end of September 2014. These suggested annual UK house price inflation of 12.1%, up from 11.7% for the 12 months to the end of August. Price increases were in double figures in England (12.5%) and the now-recovering Northern Ireland (10.9%) but less dramatic (though still substantial real-terms gains) in Scotland (7.6%) and Wales (5.8%).
Both Nationwide and ONS make serious attempts with large sample mortgage transactions data to quality adjust for the mix in properties. They are tried-and-tested approaches.
A <a href="https://www.thisismoney.co.uk/money/mortgageshome/article-2836703/Fresh-signs-cooling-housing-market-Rightmove-reports-1-7-fall-asking-prices-November-growth-seen-paused" target="_blank">different approach is provided by Rightmove</a>. Their property blog this week reports market movements inferred by estate agent business, the prices of property coming on the market and whether they are rising or falling – and the volume of online visits. This is clearly useful additional information about market sentiment and activity but it is also about doing explicit estate agency marketing business (which is fair enough). It also reports that while prices coming on the market have slipped back by 1.7% in the current month, nonetheless overall annual house prices are 8.5% higher.
Finally, the <a href="https://www.telegraph.co.uk/finance/newsbysector/constructionandproperty/11242967/At-this-rate-well-never-solve-the-housing-crisis" target="_blank">official housebuilding figures</a> added to our picture in England – 116,000 units completed in the year to September, up 8%. That represents a positive outcome, but still well below the widely agreed figure of 200,000-plus required year-on-year. It is also the case, however, as pointed out by the <a href="https://www.cityam.com/1416534106/london-leads-uk-wide-house-price-slowdown" target="_blank">Chartered Institute of Housing</a>, that the building figures actually fell by 10% in the final quarter of that 12 month period.
<h3>Plausibility</h3>
What are we to make of it? How do we get behind these numbers? We need to work out just what does the idea of a national market actually means except as a crude aggregate indicator – housing markets after all are fundamentally local, spatial and inherently complex. Also, house prices are exemplars of the difficulty in measuring the reality of underlying trends because homes are fundamentally idiosyncratic and individualised (and need rigorous quality adjustment so we can compare like with like).
I think we should always approach these house price stories by adopting the following checklist of tests:
<ol>
<li>What type of house price data is being used: what time period is being compared, at which geographic scale, what is the sample size and how representative is it, how is differential quality adjusted for, are we measuring prices in real or nominal terms and are we using prices or indices?</li>
<li>Re-read the analysis removing all descriptive adjectives and adverbs and root out all hyperbole.</li>
<li>Identify all assumptions about the housing system. My preference, for what it is worth, is that we should aim for real house price growth of zero per cent, that is that house prices grow at the same rate as general prices over the long term.</li>
<li>Can we, looking at the data, see a genuine pattern or trend in the data, or is it just noise?</li>
<li>Is there a plausible narrative and one that is as rigorous as the data would allow?</li>
</ol>
Here is the crux. If we apply these tests to the numbers we have seen recently, then it is clear that rising real house prices mean that housing relative to everything else is still getting more expensive and less affordable.
The figures above, though by no means identical, suggest the house prices are still rising at several times the rate of general prices and this is now occurring widely across the UK. Calling this a correction misses the point – it is not the “plausible narrative” we seek. Just ask <a href="https://theconversation.com/rise-of-generation-rentier-with-buy-to-let-property-shaping-up-as-new-annuity-for-pensioners-25294" target="_blank">Generation Rent</a>.<img src="https://counter.theconversation.edu.au/content/34335/count.gif" alt="The Conversation" width="1" height="1" style="line-height: 1.3em;">
Kenneth Gibb is professor of housing economics at <a href="https://theconversation.com/institutions/university-of-glasgowhttps://www.gla.ac.uk/" target="_blank">University of Glasgow</a>.
Kenneth receives funding from ESRC, Scottish government, Joseph Rowntree Foundation, Shelter and the Wheatley Group.
This article was originally published on <a href="https://theconversation.com">The Conversation</a>.
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