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

John Mcgrath

<html><body>
Not too much has been happening at the top end of Sydney’s market, estate agent John McGrath candidly advised last week.
But things could be about to change, he suggests joining the long queue of forecasts following the global financial crisis that took a swath through toppy prices across Sydney.
"I’m betting the prestige market will perform very well in 2015, thanks to increasing money coming in from overseas, the continued strengthening of the financial services and banking sectors, returning ex-pats, and the declining Australian dollar," he summed up.
Anecdotal evidence can be seen in sales data, with McGrath Mosman, on Sydney’s Lower North Shore, recording $60.3 million in sales in December last year, a 167% increase when compared to December 2013.
He widens his blue-chip popularity prospects - especially with wealthy Chinese buyers - to Sydney's eastern suburbs. 
"Chinese interest in Australian property remains high but the next big trend is going to be India. 
"Like China, it has a rising middle class and trade is increasing between our two countries," he noted on his Switzer blog. 
One in five migrants entering Australia in FY13 were from India, according to the Department of Immigration; and private business investment from India has actually increased at a faster rate than China. (
"It is up 75.8% 2008-2013 compared to China 41.7%," McGrath indicated.
McGrath's migration outlook is a little more bullish than Macquarie Wealth Management research which suggest after a stellar run up, there are some early signs of moderation in net overseas migration, with the latest figures easing slightly back to an annual pace of 231,500, down 3% from its mid-2013 peak.
Macquarie noted the pace of migration remains high by historical standards, being 74% above the 30-year trend of around 133,000.
"These firm levels of net overseas migration continue to be the dominant driver of demand, as newly arrived immigrants tend to have more urgent housing needs than other forms of population growth, such as a new birth," Macquarie noted.
While 2014 saw more transactions, there was no noticeable price growth, McGrath conceded. Records show the group sold 27 properties above $7 million in 2014, or 42 properties above $6 million.  
In 2013, the group sold 18 properties above $7 million, or 34 properties above $6 million.
"An increase in transactions is always a positive sign that growth is on the way." 
Property Observer notes the two recent Point Piper listings that come after a busy year last year, and a $28 million sale already this year.
David Trew, the former Australian chief executive of CFD providers CMC Markets and City Index, has put his <a href="https://www.domain.com.au/property/for-sale/house/nsw/point-piper/?adid=2011485536&amp;sp=2" target="_blank">harbour front trophy home up for sale</a>. The three-level 1920s Hardy Wilson-designed cosy cove home was bought by Trew’s wife paid $25 million on Wolseley Road in 2009. It has been listed by Elliott Placks, of Ray White, who has been telling inspectees that there had been five sales above $30 million in Point Piper in the past year.
The one with gun barrel views is by McWilliam family who have listed <a href="https://www.domain.com.au/property/for-sale/house/nsw/point-piper/?adid=2011755677&amp;sp=1" target="_blank">their hillside offering through Brad Pillinger</a> (pictured above), seemingly with plans to move elsewhere on the peninsula.
In late December 2014, RP Data released a report showing the highest median value suburbs in every capital city for the year to September 2014. These are the prestige markets where the big money was being spent last year. 
Here are the top three suburbs in each state and territory for median house prices in 2014.  
Sydney 
1. Centennial Park - $5.494 million
2. Point Piper - $5.427 million
3. Elizabeth Bay - $4.834 million
Melbourne 
1. Toorak - $2.922 million
2. Kooyong - $2.104 million
3. Canterbury - $2.100 million
Brisbane 
1. Teneriffe - $1.520 million
2. New Farm - $1.259 million
3. Ascot - $1.235 million
Canberra 
1. Forrest - $2.151 million
2. Red Hill - $1.372 million
3. Yarralumla - $1.320 million
Perth 
1. Peppermint Grove - $3.741 million
2. Dalkeith - $2.551 million
3. Cottesloe - $1.867 million 
Adelaide 
1. Springfield - $1.642 million
2. Medindie - $1.486 million
3. College Park - $1.476 million 
Hobart 
1. Battery Point - $818,000
2. Sandy Bay - $659,000
3. Tolmans Hill - $622,000
Darwin 
1. Larrakeyah - $1.289 million
2. Fannie Bay - $1.125 million
3. Bayview - $1.089 million 
Source: RP Data 
"When activity in prestige property increases, it bodes well for the whole market," he concluded.
</body></html>

jchancellor-FAypfDUnLy

Betting on a prestige market price recovery: John McGrath

<html><body>
John McGrath has always been passionate about the property prospects of Sydney's inner ring suburbs.
But last week he went a little further saying suburbs close to the city are becoming so desirable that they will be "hot forever".
The high profile agent stopped short of declaring inner city property prices were immune from price falls.
But the chief executive of McGrath Estate Agents told Fairfax Media these areas would always be attractive to buyers. 
"There is just no end of demand from overseas and local buyers who want to live in those precincts," McGrath said.
McGrath pointed to their proximity to the city, beaches and lifestyle amenities such as art galleries and restaurants.
Interest in the topic was illustrated on the trendolizer<a href="https://australia.trendolizer.com/2015/01/sydney-inner-ring-property-may-be-hot-forever-says-john-mcgrath" target="_blank"> trend </a><a href="https://australia.trendolizer.com/2015/01/sydney-inner-ring-property-may-be-hot-forever-says-john-mcgrath" target="_blank">graph</a>.
"There is sometimes a very minor [price] correction for a small amount of time but generally speaking Sydney is becoming a New York," McGrath suggested.
"It's a big international city and people want to live in it ... and there's very limited stock available. It's always going to be blue-chip and a market leader."
The commentary came with a caveat as McGrath tips price growth in the inner ring will actually lag other suburbs in 2015 because much of it had already "outperformed" other areas in 2013 and 2014.
Bill Randolph, director of the City Futures Research Centre at the University of NSW, warned over-densifying the inner circle will make the suburbs less desirable.
AMP Capital chief economist Shane Oliver the inner ring was affected by "interest rate cycles, recessions, building booms and busts", but felt the impact tended to be far less than the outer suburbs.
Analysis of the past decade by Domain Group's senior economist Andrew Wilson found properties within Sydney's inner 10 kilometre radius had risen 71.5%, compared with 48.4% further out.
From its Paddington origins, McGrath Estate Agents reported December sales figures of $1.02 billion from 1,018 sales for its 62 office network, directly on the back of its 25-year record in November 2014 with $1.27 billion from 1,237 sales. 
McGrath advised that eight offices clocked record sales figures for December.
Sales activity was diverse with 274 sales over $1 million; 65 sales over $2 million and 9 sales over $5 million.
“When we look at the property landscape compared with twelve months ago, property has well and truly rebounded along the Eastern Seaboard, with very strong activity across metropolitan Sydney from Epping in the northwest to Sylvania and Brighton-Le-Sands in the south. The Central Coast is also benefiting from an upsurge in upgraders and investors across all price brackets.
“The strong growth recorded from our Mosman office is in line with our view that the prestige market will perform very well this year off the back of a relatively quiet year in 2014 compared to the rest of the market.”
The top five McGrath offices for growth in the past 12 months were:
<ul>
<li>Brighton-Le-Sands reports $34.6 million (+ 174% on December 2013)</li>
<li>Mosman reports $60.3 million (+167% on December 2013)</li>
<li>Palm Beach (QLD) reports $11 million (+145% on December 2013)</li>
<li>Epping reports $48.4 million (+88% on December 2013)</li>
<li>Warners Bay reports $15.2 million (+87% on December 2013)</li>
<li>Other offices in the group that posted record sales performances for December were:</li>
<li>Sylvania ($25.5 million), Belconnen/Gungahlin in ACT ($23.9 million) and Gosford ($13.6 million).</li>
</ul>
{mijopolls 85}
</body></html>

John McGrath ignites Sydney's "hot forever" inner ring debate

<html><body>
<div id="main">
<div id="content-holder">
<div class="content">
<div class="content-inner">
<div id="inner">
The McGrath Estate Agents network has had a record November on the back of rising volumes and prices.
"November 2014 has gone down in our 25-year company history as our biggest sales month on record with $1.27 billion worth of real estate sold across our 62-office network," its chief John McGrath has blogged. "November was an incredible month for many markets but particularly Sydney," he said.  But noting the weight of "skyrocketing" volumes, McGrath says the weakening clearance rate to around 70% was still a remarkable level of clearance with more than 1,000 properties going to auction on some recent Saturdays.  "Forget the bubble talk," McGrath said.
"Forget the doomsayers.
"What’s going on here is a glowing testament to real estate being one of the safest and most effective forms of wealth creation around.
"Look what’s happened to property prices in the past two years – they’re up more than 25%, according to RP Data.
"That’s really amazing stuff, although we do want this to slow down a bit, as a period of consolidation is vital after a significant burst of growth."
His market predictions for 2015: "things are inevitably going to slow down next year, especially in Sydney, which has experienced such phenomenal growth in 2013 and 2014."  McGrath is not sure whether the traditionally strong autumn season in 2015 will occur before a cooling in conditions over winter, or whether 2015 will "start on the back foot a bit", given the huge volume of sales going on right now.
"Time will tell," he told <a href="https://www.switzer.com.au/the-experts/john-mcgrath-property-expert/forget-the-bubble-talk-what-a-year/" target="_blank">his Switzer blog readers</a>. 
</div>
</div>
</div>
</div>
</div>
<div class="at4-follow-outer addthis-smartlayers addthis-smartlayers-desktop">
<div id="at4-follow" class="at4-follow at4-follow-24 ats-light animated slideInRight at4-show">
<div class="at4-follow-inner"> </div>
</div>
</div>
</body></html>

Inevitable 2015 Sydney slowdown after remarkable record 2014: John McGrath

<html><body>
Sydney is going to remain a seller’s market for some time yet, according to estate agent John McGrath.
He said it was surprising to see media reports describing the Sydney property market changing to favour buyers.
"We are still very much in a sellers’ market because buyer demand is so far in front of supply, even with the additional stock coming onto the market today," he blogged on the <a href="https://www.switzer.com.au/the-experts/john-mcgrath-property-expert/its-still-a-sellers-market/" target="_blank">Switzer website</a>.
"The fact that the clearance rate on the second weekend of November dipped to 75% in Sydney does not indicate a change in market sentiment – it’s just a reflection of a big jump in volume and that’s only happening because vendors are feeling supremely confident, not because they’re panicking." 
As the property cycle was only two years old – and typically last three to five years - he maintains Sydney was still on a long-term growth trajectory. 
"There is still room over the next couple of years for another 5 to 10% growth in prices in key high quality Sydney markets."
</body></html>

Sydney is still a sellers' market: John McGrath

<html><body>
GUEST OBSERVATION
The banning of Queensland auction price discussions and guides is one of the most ludicrous, retrograde steps in real estate I’ve seen in 30 years.  
I’m still unsure as to who the REIQ and government believe it is benefiting. It appears to me to be detrimental for buyers, sellers and agents all in one.  Nobody from the REIQ or government has been able to give me a credible answer as to why they have brought this in.  
Ask yourself as a buyer of real estate if you think it will assist you to purchase property by not allowing agents to discuss a property’s price with you? 
In an age of transparency and information it is the only jurisdiction on planet earth that bans agents and buyers from having conversations about the price of a property.  Maybe the rest of the world is wrong and the Queensland state government is right?
Until the new legislation comes into practice the good people of Queensland will not be impacted. In fact most have no idea of the proposal yet and will find out over the next few weeks as it becomes new law.
It is quite likely that a number of sellers will choose alternate methods of sale due to the new legislation and unfortunately cost themselves potentially significant profit on the sale of their property in doing so.
Auction is the most effective means of selling property in the world today when done well.  The most important thing for buyers is to be able to quickly and efficiently understand the likely selling range so they can determine whether to pursue the property.  
If they can’t easily determine a realistic selling range many will just move on to the next property.  People don’t have the time or desire to waste energy pursuing a property if they can’t get access to the price range.
I fought hard to retain the seller’s right to provide an indicative price to the buyers when they auction but for some unfathomable reason the government felt it was important to keep the buyers in the dark.
John McGrath is CEO of <a href="https://www.mcgrath.com.au/" target="_blank">McGrath Estate Agents</a>.
</body></html>

jmcgrath-6XcGQCVx3d

Auction price guide bans the most ludicrous step I've seen in real estate

<html><body>
Economic stability and expats pushing back into the prestige markets are helping to resuscitate the luxury residential market.
John McGrath has identified Australia’s economic performance and cashed up expatriates as two of four major themes impacting demand and prices for luxury residential property over the next 12 months.
“Political and economic stability, rising business confidence and increased overseas demand is driving new momentum in prestige property after several years of post GFC stagnation,” he says.
“While luxury property was lagging compared to the rest of the market, there are clear signals that it is stirring from its slumber and we are expecting material price rises above $2 million this year,” McGrath says.
According to RP Data figures, the number of $5 million-plus sales in Sydney was up 13% in the 2014 financial year while $3 million-plus sales in Brisbane shot up by 36%. 
During the same period sales in the nation’s most expensive suburbs started to slightly outpace the lower and middle markets in price growth. 
Price growth was 11% for luxury real estate while the middle market was 10.9% and the lower end 9.2%.
Expats made a return to real estate as the dollar weakened and the market became well supplied, he advised in his Swizter blog.
McGrath believes that China’s impact on property was significant after HSBC found that 18% of new supply in Sydney was purchased by Chinese investors who also claim 14% of Melbourne’s new homes.
Competition between private investors and Self Managed Super Fund (SMSF) investors was also fuelling prices.
</body></html>

andreadixon-oif3j7eKne

Lagging luxury property market to get expat boost: John McGrath

<html><body>
Guest observation
Amid current speculation that John McGrath is looking at listing the reputable McGrath Real Estate Agency brand on the ASX, my mind turns to iconic investment tycoon Warren Buffett, a man referred to as "The Oracle". Buffett has the uncanny way of knowing when to take advantage of market highs and market lows.
It's interesting to take two pages from Buffett's encyclopaedia of successes and compare the premises to McGrath's alleged venture.
The first page, or principle, is Buffett's patience in waiting for markets to turn or bubbles to pop, enveloping vulnerable companies when the moment is right. He likens people's emotional purchases and the high risks taken when markets are overheated to "a virus spreading through a kindergarten".
Can we take Buffett's observation of 2003's mobile-home industry, where credit and purchasing was rampant and out of control, as a mirror of our current property market?
Is there a sign, a possible game changer to the operation of real estate companies, that our own Aussie Oracle sees?
Does McGrath see something that the average punter, property investor, or even real estate agent and property economist has failed to see? If the rumours prove to be true, I would judge  McGrath's move to float the agency (brand), as a bold and strategic consideration, at the present time.
It could also be the a possible ideal exit strategy for current real estate office holders, in a time where a turning property market is imminent. An exit strategy that can well end with a bang.
Another Buffett principle is to "invest in or buy a company that will produce 20% growth year in year out". Buffett refers to this as a "compounding machine".
When we apply Buffett's compounding machine strategy to the nature of the real estate business, in essence, the asset has to be a well-oiled and refined machine to produce high yielding dividends for stakeholders. Will this hold true of the individual agencies/offices that make up the McGrath brand?
Can a real estate brand or, more to the point, an agency with 61 offices, be a sustainable or profitable proposition that can be referred to as a compounding machine (even with growth into the Asian market)? Will the perceived growth in the real estate arena be enough to persuade investors to buy shares should McGrath list on the ASX?
False perceptions
In my view, there is a general and false perception that most real estate agencies are prospering.
The public have formed this belief solely due to high property prices, which are heavily inflated. Nonetheless, people make an association between high property prices and the myth that real estate offices are making it big.
Contrary to people's perceptions, the media is currently reporting that there has been a downturn in property listings.
This therefore means more competition among agents and agencies. As a matter of fact, more real estate offices are navigating towards bankruptcy, let alone being profitable enough to have any close association to this idea of being a "compounding machine".
I strongly believe that many real estate agencies, which are highly reliant and dependent purely on sales-listings, are pushing towards the red zone very quickly, and will soon be out of business. I know of many offices with rent rolls - landlord databases - in which the licensees have not paid themselves for up to a months.
The value of a real estate agency (other than the freehold).
The true value of a real estate agency is in the rent roll, not sales listings nor office fixtures or fittings. Not even the European cars most drive. Anything else outside of a rent roll is a liability, not an asset. Rent rolls are traded, "bought and sold". Some would like to believe that the so-called "databases" of purchasers an agency has, hold some sort of value. On the contrary, the only database of real value is the landlord database.
The current values of rent rolls on the market are reflecting ratios from $3.00 to $4.00 on a dollar income per annum. If the annual rent roll income of an agency was $100,000 per annum, the rent roll would be valued between $300,000 and $400,000,and this would depend on how clean and up to date the property management files are kept.
Would I buy shares in the float?
The main reason I would buy shares, if the McGrath brand was to be publicly listed, would be no different to a land release sale.
I would buy in the initial expression and I would be prepared to sell soon after the hype levelled out along with the price. As they say when buying in a land subdivision, buy in at Stage 1 and sell in Stage 3 and 4 before they release Stage 5. Anyone buying in after Stage 3 runs the very high risk of making no return on their investment, or worse still, going into the red.
I am of the opinion, because of the brand name and the level of respect the general public have of the brand, it may well be a welcomed stock. The public's misconceptions around how an agency is valued will further fuel the price of the shares. Therefore I will definitely buy in, sell soon after, and not buy with the view of keeping the assets long term.
Why I wouldn't buy shares?
It is not a question of why I wouldn't buy the shares; it is more a question of how long I would be prepared to keep them. Shares can take on similar characteristics to current overinflated real estate prices in most capital cities.
After all, shares tank every seven or so years and we have had a good six year run so far in this market.
To understand my short-term plan, allow me to scope the property management operation as a business. To do this, we need to drill down into how a successful office operates and have a better understanding of the need to maintain a profitable rent roll. These observations are not based on the McGrath rent roll operation. The following are general industry observations.
<ol>
<li>Young and inexperienced, underpaid property managers do not add value to the rent roll. Highly trained and skilled property managers and property officers add value.</li>
<li>It is an industry that requires a lot of "human attention" and care, as opposed to a manufacturing plant system that is automated with machinery and robots.</li>
<li>Although systems and office procedures can minimise the human work load it can never eliminate the need for skilled supervision required to run an efficient property management team.</li>
<li>Property management fees are highly competitive and volatile and these range from 4% to 7% from weekly rents collected.</li>
<li>The landlord's contractual obligation to an office is only by way of a 30 to 60 day notice. An Exclusive Management Agency Agreement does not mean you own the management in a literal sense.</li>
<li>The ratio of a skilled property manager (PM) to property managements (M) is 1PM:250M</li>
<li>The return of investment at the mid-range value of a management is three and a half years. It will take three and half years to recover any capital investment made, provided there was no attrition of clients/landlords.</li>
<li>Point seven does not take into account cost of overheads to maintain the office open.</li>
</ol>
Personal experience
Over the last 24 months I have seen rent rolls creep up in value, from $2.75 for every $1 to $4.00 for every $1 earned. When I have inspected property management files to determine whether or not our office would purchase these, they have come very short of the mark. Most have required more money and work to get the files up-to-date and in order, so their asking value was priced at more than they are worth.
We have in the 24 months also bought a rent roll for as little as $1.20 for each dollar of income it generated. This is not a common occurrence, but it does happen.
We have also been offered a rent roll for $2.20 per dollar of income generated. Although it looked like an attractive proposition, it cost more than it was worth. It was a risk not worth taking for the reason previously stated: no guarantee that the expenditure could be realised over the three and a half years and in this case in two and a half. It was just not worth the risk.
Therefore, on the previous figures provided, I have also wondered whether or not current rent rolls are overpriced. Are they also caught in a bubble of their own that could just as well pop?
As previously stated, I would be the first to take up an offer in the McGrath float.
I would not, however, buy in with the view to keep the shares long-term. There aren't enough factors that would make me consider the stock to be one Buffett would label a "compounding machine". I am nonetheless intrigued and keep asking myself: "Is this the perfect exit strategy for the man and the licensees that make up the brand?"
Again, I make my observations purely based on my understanding of a real estate office model and the perceived value of a rent roll. A share broker would have a complete and better understanding of the actual value or worth of the shares when taking into account other assets not just the rent roll.
EDWIN ALMEIDA is managing partner and licensee-in-charge of <a href="https://www.just-think.com.au/" target="_blank" rel="nofollow">Just Think Real Estate</a>.
</body></html>

ealmedia-arK4DBYLjS

Is John McGrath the new Aussie oracle?

<html><body>
With prices rising in Sydney and its surrounds, many investors will look further out to regional areas for cheaper entry level prices and higher yields.
But where should you look?
John McGrath has tipped four New South Wales areas “to watch” for growth in the state's regions.
<a href="/news">Moss Vale </a>
First on the list is Moss Vale – a “beautiful village area with diverse housing,” he says.
“Moss Vale is a 10 minute drive south of Bowral and offers better value but the same lifestyle,” he notes, pointing to median house prices approximately $185,000 cheaper than Bowral.
Houses
<ul>
<li>Median price: $400,000</li>
<li>Rental yield: 4.68%</li>
</ul>
Source: RP Data
<a href="/news">Mount Ousley</a>, <a href="/news">Balgownie</a>
North of Wollongong’s CBD, McGrath notes that the areas are popular with both young families and Sydney commuters due to its easy access to the Princes Motorway for just a half an hour trip to Sydney’s southern border.
“[It’s a] fantastic local village shops at Balgownie and a lot of housing diversity,” he says.
Houses – Mount Ousley
<ul>
<li>Median price: $510,000</li>
<li>Rental yield: 5.25%</li>
</ul>
Source: RP Data
Houses – Balgownie
<ul>
<li>Median price: $577,000</li>
<li>Rental yield: 4.06%</li>
</ul>
Source: RP Data
John McGrath's next two tips are on the next page. PLease click below.
 
<hr class="system-pagebreak">
<a href="/news">Blackheath </a>
Meanwhile, he points to the wonderful character homes in Blackheath on offer from $350,000 on quarter-acre blocks.
“It has a lively local village and is already benefiting from road upgrades enabling faster access to Sydney,” he says.
Houses
<ul>
<li>Median price: $380,000</li>
<li>Rental yield: 4.52%</li>
</ul>
Source: RP Data
<a href="/news">Kincumber</a>
Kincumber is the affordable neighbour of suburbs <a href="/news">Avoca Beach</a> and<a href="/news"> Saratoga</a>, and as a result offers good yields, he says.
It has “prospects for capital growth with today’s prices about 20% less than Avoca Beach and Saratoga”.
Houses
<ul>
<li>Median price: $427,000</li>
<li>Rental yield: 4.87%</li>
<li>Source: RP Data</li>
</ul>
Click on the names of the suburbs for more details. For other suburb information, see our free data pages here.
You might also want to read:
<a href="/expert-insights/investing/john-mcgrath-s-10-sydney-suburb-picks">John McGrath's 10 Sydney suburb picks</a>
<a href="/news/qld/john-mcgrath-s-five-south-east-queensland-hotspots">John McGrath’s five South East Queensland hotspots</a>
<a href="/news/act/john-mcgrath-s-three-canberra-hotspots-under-the-microscope">John McGrath’s three Canberra hotspots under the microscope</a>
Photo of Moss Vale courtesy of Bidgee/<a class="mw-mmv-license cc-license" href="https://creativecommons.org/licenses/by-sa/3.0/au/deed.en" target="_blank">CC-BY-SA-3.0-au</a>.
</body></html>

jduke-EHk3XBmHkn

John McGrath’s top four regional New South Wales hotspots

<html><body>
Given Melbourne and Sydney’s strong growth, John McGrath says that it may be wise to turn attention elsewhere – specifically, Brisbane and South-East Queensland, where he expects to see the best capital growth of all the major cities over the next three years.
He suggests that it will be a fantastic opportunity for southern state-based investors, downsizers and seachanging families.
"Upgraders are driving most markets in Queensland, with increasing interest from Melbourne and Sydney investors chasing better yields and value,” he noted in his most recent McGrath report.
“Last year, the sub-$1 million was the standout sector, this year it has extended to sub-$1.5 million. The $500,000 to $700,000 bracket is very strong, with lots of families selling to upgrade to $1 million plus properties and lots of buyers ready to compete for their homes."
He detailed that Brisbane is in the beginning of its growth cycle.
This is characterised by the following seven factors:
<ol>
<li>More local and out of area investors 
</li>
<li>More families upgrading while value remains 
</li>
<li>First home buyers looking to get out of the rental cycle 
</li>
<li>Returning developers 
</li>
<li>Number of sales goes up 
</li>
<li>Days on market goes down 
</li>
<li>More buyers attending opens and registering to bid at auctions</li>
</ol>
"All of this is happening in Brisbane right now and it's finally starting to have an impact,” he said, noting that as Sydney and Melbourne’s growth slow down, we can expect Brisbane’s to ramp up.
The inner ring markets, that is five to six kilometres from the CBD, were noted as being in “strong demand” followed by the middle ring, 10 kilometres out.
"We are starting to see that classic ripple effect as more people expand their search to the middle ring where they can get bigger blocks at slightly better prices yet still with easy access to the CBD,” he said.
"More buyer's agents are setting up in Brisbane - indicative of increasing demand from interstate clients."
Larger infrastructure projects, including hospitals, are also likely to drive growth over the next few years.
</body></html>

The seven factors behind Brisbane’s upcoming growth: John McGrath

<html><body>
Spring auction numbers are emerging in both Sydney and Melbourne, but the small spike is no serious test yet.
APM has around 570 scheduled listings this weekend in Sydney, up from the 430 last weekend.
In Melbourne there are 715 offerings, up from 646 last weekend.
Then the early September weekends will see around 520 and 520 offerings in Sydney.
It's about 700 and 800 auctions per weekend in Melbourne over the first two weeks.
Neither city is showing signs of listings surging well in excess of last spring's volumes.
The Sydney estate agent John McGrath told the Australian Financial Review he did not expect the market to change much in spring and summer, after it showed strength over winter.
“The indicators remain positive, with record-low interest rates, a solid economic growth cycle in play and renewed demand from both local investors and overseas buyers,” Mr McGrath said.
“I believe this market has at least two years left in its growth cycle before we see a plateauing.” 
However, McGrath said Sydney’s current rate of growth would moderate.
It would likely settle back at a more sustainable 5% to 10% per annum over the next two years, he suggested.
</body></html>

John Mcgrath

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

John Mcgrath

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

Developments

New apartments

New townhouses

News