Developer <a href="https://www.apartments.com.au/developers/bottega-property-group">Bottega House</a> has secured council approval for its first Brisbane project - a $270 million luxury residential development on an absolute riverfront site in leafy St Lucia.&nbsp;

The 15-storey project, known as <a href="https://www.apartments.com.au/new-apartments/st-lucia-by-bottega-house-180-macquarie-street-st-lucia-qld-4067">St Lucia by Bottega House</a> , will occupy a prime north-facing site at 178-180 Macquarie Street, directly fronting the Brisbane River in the established inner-west suburb known for its rowing clubs, golf courses and sprawling University of Queensland campus.&nbsp;

St Lucia by Bottega House will feature a suite of amenities including dedicated wellness spaces, a mineral pool and cold plunge. The project has been positioned to attract affluent owner-occupiers seeking high-quality, house-sized apartments.&nbsp;

Bottega House has been set up by co-directors Nick Malloch, Louis Mennes and Craig Marsh.

Malloch said the project drew inspiration from its Brisbane River setting and leafy inner-west surrounds, while responding to the demands of discerning locals looking to transition from freestanding homes into apartment living.&nbsp;

"With an expansive river frontage and lush green surrounds, we knew we had to create something special that reflects the natural beauty of the location while offering residents masterfully crafted homes," said Malloch.&nbsp;

"Our intent was to complement the project's quiet, private setting by introducing residences that offer a calm retreat and sanctuary from the everyday. The result is a harmonious blend of architecture, interiors and amenity that emphasises wellbeing, comfort and beauty without excess."&nbsp;

Malloch added that project consultants had been carefully selected in alignment with Bottega House's commitment to care, quality and attention to detail. The design team includes architects <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a>, interiors practice <a href="https://www.apartments.com.au/interior-designers/mim-design">Mim Design</a> and landscaping by <a href="https://www.apartments.com.au/architects/urbis">Urbis</a>.&nbsp;

Three-bedroom apartments are expected to start around $5 millio. Selling agents Keenan &amp; Byrne said the pricing strategy for the project was anticipated to achieve upwards of $25,500 per square metre.&nbsp;

The project's development approval this week follows the success of Bottega House's inaugural Queensland project - a 22-storey collection of full-floor sky homes at Broadbeach on the Gold Coast which included the sale of a two-storey penthouse at a record price for a beachside residence.&nbsp;

St Lucia by Bottega House is expected to launch to market in November, with construction anticipated to be completed mid 2029.

[smartcode_project_cta:default project_id=151826]

Joel Robinson

Bottega House to make Brisbane debut with St Lucia riverfront apartment development

<a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Property Group</a> is advancing its affordable apartment model into Brisbane with the acquisition of another site at Cordelia Street in South Brisbane for $27 million.

Sherpa, which has a $1.7 billion pipeline across Southeast Queensland, intends to bring a cohort of apartments exclusively for first homebuyers into its proposed 186-apartment project to be built at 2 Cordelia Street.

The Sherpa model has already been incredibly well received from their Gold Coast projects, where Sherpa Group set aside a number of apartments exclusively for first homebuyers.

The new $320 million project marks Sherpa Group's second development in Brisbane, following its $255 million Symphony project, also on Cordelia Street, which is currently under construction.

Symphony will deliver 146 apartments across 28 levels, offering a mix of one, two and three-bedroom apartments. With 114 already sold, construction by <a href="https://www.apartments.com.au/builders/lps-group">LPS Group</a> is scheduled for completion in 2028.

[smartcode_project:default project_id=7574 project_image_fid=351654]

Sherpa Founder, Christie Leet, said the company was excited to be venturing into Brisbane for its second residential project.

“We’re big believers in the future of Brisbane as we lead into the 2032 Olympics and beyond,” Leet said.

“The success of Symphony has guided us into what will be our second project and we look forward to submitting our plans with council soon so we can deliver yet another quality project to the inner city residential market.

“Our Flourish model has been very well received both in Brisbane and the Gold Coast, and we’re excited to be able to offer some of these apartments again exclusively to first homebuyers to help get them into the property market.

“The model has been extraordinarily well received in our previous projects and it is something we are committed to moving forward.”

2 Cordelia Street will be designed by <a href="https://www.apartments.com.au/architects/hal-architects">HAL Architects</a> &amp; Finegrain and will include Sherpa’s signature residential amenities including pool, gym, recreation, wellness and work from home spaces.

The project will feature ground-floor commercial space, creating a vibrant amenity for residents and the surrounding community.

A development application will be lodged with Brisbane City Council in August on the code compliant site and will be launched to the market early 2027.

Sherpa acquires new site for second Brisbane apartment tower

One of North Sydney's best-known commercial buildings could become hundreds of new homes, with insurance giant Zurich Australia lodging a State Significant Development Application (SSDA) to transform 5 Blue Street into a mixed-use residential development above North Sydney Station.

Rather than demolishing the existing building and starting again, Zurich is proposing an adaptive reuse project that would convert the landmark office building into a 15-level residential development delivering 62 apartments, 86 affordable co-living dwellings, activated retail and significant upgrades to the Blue Street Plaza.

The proposal reflects a growing trend of commercial property owners repositioning ageing office assets into residential housing as Sydney grapples with housing supply shortages and changing workplace demand.

<img alt="Zurich" data-entity-type="file" data-entity-uuid="0bba7d12-06dc-4375-aad7-238c94b21ac5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%2010.42.05%E2%80%AFAM.png?VersionId=NJl5oLAEBDGuPmY3RnyliKODjMc8lvRh" />

Located directly above North Sydney Metro and train station, the 3,051 sqm site occupies one of the most strategically positioned parcels of land on Sydney's Lower North Shore.

Designed by fjcstudio, the proposal seeks to retain and adapt much of the existing structure while creating a contemporary residential address that better connects with the public domain surrounding North Sydney Station.

The application proposes two basement levels, ground floor retail, affordable co-living accommodation across the podium levels, and apartments above, while preserving and enhancing the publicly accessible Blue Street Plaza.

Rather than pursuing maximum apartment numbers, Zurich has opted for a housing mix heavily weighted towards larger owner-occupier residences.

The proposal includes 62 build-to-sell apartments comprising 12 one-bedroom, 19 two-bedroom, 29 three-bedroom apartments and two premium penthouses. It also incorporates 86 affordable co-living dwellings, which would be managed in perpetuity by a Community Housing Provider.

That balance between traditional apartments and affordable housing reflects the NSW Government's push to increase housing diversity around major transport infrastructure.

The proposal has been lodged concurrently with a rezoning application, with Zurich arguing the site is ideally positioned to support additional housing given its immediate proximity to public transport, employment and services.

"The proposal aims to respond to the housing challenges facing Sydney through the delivery of diverse housing types in a highly accessible location," the design report by fjcstudio states. It also seeks to improve pedestrian amenity through upgrades to Blue Street Plaza while creating a high-performing residential building that responds to the surrounding context.

<img alt="Zurich" data-entity-type="file" data-entity-uuid="36082e15-c636-4481-bb68-5a5f6443fe39" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%2010.41.36%E2%80%AFAM.png?VersionId=5P6VD.fvmqjQfIG3TWWMRXxQWiQBjeFB" />

Rather than replacing the commercial building, fjcstudio has developed a design that works with the existing structural framework above the rail corridor, an approach that significantly reduces demolition while allowing the site to be repositioned as a mixed-use residential precinct.

The existing structural constraints have informed much of the building's design, including its relationship with Blue Street and surrounding public spaces.

The building has been designed as a slender tower rising above a clearly defined podium, with vertically expressed façades intended to reduce the perceived bulk while reinforcing North Sydney's emerging skyline.

According to fjcstudio, the architectural language responds directly to the surrounding commercial towers while maintaining a finer grain expression more closely aligned with the neighbouring Lavender Bay streetscape.

The tower incorporates articulated façade elements, landscaped podium edges and recessed upper levels to soften its appearance and improve pedestrian amenity below.

A significant component of the proposal is the revitalisation of Blue Street Plaza.

The existing public space has long served as one of the primary pedestrian connections between North Sydney Station, Greenwood Plaza and Blue Street, yet its role is expected to become even more important following the opening of Sydney Metro.

Zurich's proposal seeks to strengthen that role by improving landscaping, introducing new retail frontages, enhancing pedestrian permeability and creating more active edges throughout the day and evening.

Ground floor retail would wrap the plaza, while separate residential and co-living entries have been designed to improve wayfinding without reducing street activation.

Landscape design has been integrated throughout the podium and public realm, softening what is currently one of the most heavily urbanised parts of North Sydney.

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fjcstudio has carefully oriented apartments towards Sydney Harbour and the CBD while using privacy blades and articulated façades to minimise overlooking between neighbouring buildings.

Large framed openings along the western elevation maximise harbour outlooks, while the eastern apartments have been angled towards the south-east to improve privacy from neighbouring development.

The project forms part of the continuing transformation of North Sydney from a predominantly commercial CBD into a genuine mixed-use city centre.

Since the completion of Victoria Cross Metro Station, developers have increasingly shifted their attention towards residential projects capable of leveraging the area's unparalleled transport connectivity.

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FiveX recently lodged plans for a 61-storey, 490-apartment tower that would become one of the tallest residential buildings in North Sydney if approved.

Aqualand continues to expand its Lower North Shore presence following the completion of AURA on Walker Street and its recent St Leonards and Roseville proposals.

Developers are also progressing projects throughout Walker Street, Miller Street and the Victoria Cross precinct as demand for well-located owner-occupier apartments continues to strengthen.

First look: Zurich targets North Sydney office conversion with 148-unit proposal above Metro station

Busy developer Aqualand Prestige has formally taken the next step in its expansion across Sydney's Lower North Shore, lodging a State Significant Development Application (SSDA) for its long-held Archer Street site in Chatswood.

The application covers <a href="https://www.apartments.com.au/new-apartments/51-55-archer-street-chatswood-nsw-2067">51-55 Archer Street</a>, a 1,767 sqm amalgamated site on the eastern edge of the Chatswood CBD, where the developer is seeking approval for a 45-level mixed-use tower delivering 114 apartments, including a significant affordable housing component, alongside retail, commercial space and six basement levels of parking.

The SSDA marks the latest milestone for a project Aqualand has been quietly progressing over the past two years. The developer first secured the site for its Aqualand Prestige platform before undertaking an alternative design excellence process with PTW Architects, ultimately avoiding a formal design competition through the Housing Delivery Authority pathway.

The proposal has evolved considerably from Aqualand's original concept. The revised scheme has been designed around larger owner-occupier product, with an unusually high proportion of three and four-bedroom apartments, targeting the more affluent buyer profile, and downsizer, emerging across the North Shore.

<img alt="Archer St" data-entity-type="file" data-entity-uuid="0171204c-5811-41b5-9b09-2335d1b7c3d0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%208.52.48%E2%80%AFAM.png?VersionId=6YTuxfq.puZo7k2wbfgemcO5K3QfXYGQ" />

The 114-apartment mix comprises six studios, 27 one-bedroom apartments, 18 two-bedroom apartments, 50 three-bedroom residences and 13 four-bedroom homes. A quarter of the building will be dedicated to affordable housing, well above the mandated 15 per cent&nbsp;

PTW has structured the building vertically, with affordable housing across levels one to six, premium apartments through levels seven to 31, duplex skyhomes on klevels 32 to 43, a penthouse on level 44, and a rooftop plant level above. Six basement levels will provide resident parking and servicing.

The tower is proposed to reach approximately 154 metres, placing it among a growing collection of residential high-rises transforming Chatswood's skyline.

Rather than competing purely on height, PTW says the design has been driven by creating a slimmer tower capable of delivering significantly larger apartments.

"The primary objective of this project was to create a distinctive building that stands out from the recently approved or built structures in the Chatswood area," the design report states, noting the structural efficiency allows greater investment into apartment quality and resident amenity.

Residents would have access to more than 450 sqm of communal open space including landscaped gardens, swimming pool, rooftop entertaining areas, fitness spaces, community gardens, children's play areas and barbecue facilities.

A major focus of the design has been the public domain.

The ground plane has been opened up through landscaped terraces inspired by Willoughby's sandstone ridges, with native planting, public seating, artwork, retail activation and a series of gathering spaces intended to soften what has traditionally been a hard commercial streetscape.

The landscape strategy references Blue Gum forests once common throughout the area, while incorporating Indigenous storytelling, public art and lighting installations to strengthen the connection to Country.

Chatswood has been one of Sydney's busiest apartment markets over the past 12 months, with a steady pipeline of both new project launches and fresh development applications.

Hyecorp recently launched Celine, a 122-apartment development just along Archer Street, while Changfa and Huirong Group are progressing The Anderson, an 84-apartment project on Anderson Street.

Develotek recently secured approval for a 101-apartment tower on Pacific Highway, while Tian An LFD received the green light for Hammond Greens, its apartment development on the edge of the Chatswood Bowling Club.

Commercial property developer FiveX is also making its move into the residential market. Last month it lodged plans for a 61-storey tower with 490 apartments, which, if approved, would become one of the tallest residential buildings in Chatswood.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-fivex-targets-chatswood-skyline-with-61-storey-tower-after-north-sydney-plans">First look: FiveX targets Chatswood skyline with 61-storey tower after North Sydney plans</a>

Aqualand is also expanding its development pipeline following the launch of its luxury residential brand, Aqualand Prestige. The developer has delivered a string of high-end apartment projects across Sydney's affluent suburbs over the past decade, most recently AURA by Aqualand on Walker Street in North Sydney.

[smartcode_project:default project_id=30959 project_image_fid=292863]

It has since quietly assembled its next wave of projects.

Earlier this year Aqualand launched Boronia in Roseville, a boutique 111-apartment development on Larkin Street. The project is one of the first significant apartment developments to launch in the suburb ahead of what is expected to become one of Sydney's most active new housing precincts under the NSW Government's Low and Mid-Rise Housing reforms, which allow greater density around train stations.

[smartcode_project:default project_id=152095 project_image_fid=373685]

The developer has also lodged plans for a two-tower, 413-apartment development on Herbert Street in nearby St Leonards, further strengthening its presence across the Lower North Shore.

Beyond that, Aqualand remains behind the final stage of Barangaroo, where plans will deliver a five-hectare mixed-use precinct comprising new homes, retail, hospitality and community facilities, alongside a new Metro entrance and more than two hectares of public open space, completing the Barangaroo precinct.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/central-barangaroo-development-takes-big-step-with-concept-proposal-approval">Central Barangaroo development takes big step with concept proposal approval</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-aqualand-joins-st-leonards-apartment-party">First look: Aqualand joins St Leonards apartment party</a> 
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First look: Aqualand pushes ahead with Chatswood apartment tower as SSDA lodged for Archer Street

Mass timber is becoming an increasingly popular construction material in apartment developments, but Adelaide developer <a href="https://www.apartments.com.au/developers/otello">Otello</a> is taking the approach a step further.

At its new <a href="https://www.apartments.com.au/new-apartments/flowe-bowden-18-gibson-street-bowden-sa-5007">Flowe Bowden</a> development, the exposed cross-laminated timber (CLT) structure isn't just about reducing the building's environmental footprint. It also forms the foundation of a broader wellness strategy, influencing everything from indoor air quality and natural materials to the way residents move through and experience the building.

The 115-apartment mixed-use development, designed by Melbourne-based architecture practice Fieldwork, will occupy a prominent island site opposite Bowden Village Reserve, combining one, two and three-bedroom apartments with retail and a dedicated wellness destination.

[smartcode_project:default project_id=152022 project_image_fid=375528]

Wellness isn't confined to a gym or shared resident facility at Flowe. Instead, Fieldwork embedded the concept into the building itself.

The development has been split into two residential wings connected by a naturally ventilated central breezeway, replacing traditional enclosed corridors with open-air walkways that improve natural light, encourage cross ventilation and create more opportunities for neighbourly interaction.

"Rather than treating wellness as something that only happens on the ground floor, our response integrates it throughout the building, which led us to ask what it really means to design a healthy building," Fieldwork Director Quino Holland said.

[smartcode_project:default project_id=152022 project_image_fid=375531]

The building's architecture also reflects Bowden's industrial heritage. The lower podium references the area's historic brick and sandstone buildings, while the upper levels transition to exposed CLT, allowing the timber structure to become a defining feature throughout the apartments and shared spaces.

The use of mass timber sits alongside a range of sustainability initiatives, including a fully electric, gas-free design, rooftop solar and a targeted 5 Star Green Star rating.

[smartcode_project:default project_id=152022 project_image_fid=375524]

Inside the residences, the focus remains on natural, durable materials. Blackbutt engineered timber flooring, exposed CLT ceilings, porcelain surfaces and warm timber joinery create a calming interior palette, while low-VOC finishes and responsibly sourced materials have been selected to improve indoor air quality.

Kitchens have been designed as the centrepiece of each apartment, featuring porcelain island benchtops, timber-look cabinetry and brushed steel tapware, with layouts that maximise natural light and ventilation.

[smartcode_project:default project_id=152022 project_image_fid=375530]

The more traditional interpretation of wellness comes in the form of Level Eleven, a two-storey wellness club spanning the ground floor, mezzanine and first floor.

The facility will include a gym, yoga and reformer Pilates studios, Finnish and infrared saunas, magnesium hot and cold plunge pools, and dedicated recovery spaces. Unlike many residential wellness facilities, Level Eleven will also operate commercially, allowing the broader Bowden community to access the venue while giving residents exclusive membership benefits.

The ground floor has also been designed around everyday living. A café overlooking Bowden Village Reserve will activate the street frontage, while a bike workshop with tool storage, co-working space and dog wash has been incorporated to support daily routines and encourage interaction between residents.

"Flowe brings together my two biggest passions, creating places and creating healthier lives," Otello founder Daniel Harris said.

"We wanted to create something Adelaide hasn't seen before, a genuinely healthy building, where the way you live is lifted without even trying."

Flowe is positioned directly opposite Bowden Village Reserve and within walking distance of Bowden Railway Station and the Adelaide Entertainment Centre, placing future residents just minutes from the Adelaide CBD while remaining connected to one of the city's most established urban renewal precincts.

[smartcode_project_cta:default project_id=152022]

Otello launches wellness-focused Flowe Bowden with Adelaide-first mass timber apartment design

Moody's Analytics

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Australian real estate investment trusts (A-REITS) have good gearing buffers to withstand the looming property value declines, according to a recent report from Moody's Investors Service.
The predicted downturn is due to weak demand and slowing economic activity caused by the coronavirus pandemic.  
The report found that property values would need to fall significantly for A-REITs to breach gearing and covenant thresholds.
“We expect retail property values to decline in the next 12-18 months because of weak demand and economic activity resulting from coronavirus related disruptions,” saidsenior analyst Saranga Ranasinghe.
“Office property values will fall to a lesser degree, and continued demand will support industrial property values.”
The report futher found that average property values would need to fall 34% to breach the top end of the rated REITs' target gearing (debt/asset) ranges and fall 55% to breach their covenant thresholds.
The REITs came into the downturn with balance-sheet buffers to withstand an increase in gearing. 
According to the report retail A-REITs will experience the largest declines in property values.
“In response to coronavirus disruptions, Vicinity Centres (VCX, A2 negative), Shopping Centres Australasia Property Group (SCP, Baa1 stable) and Charter Hall Retail REIT (CQR, Baa1 stable) raised equity to strengthen their balance sheets,” added Ranasinghe.
CQR's gearing will approach covenant thresholds if property values fall more than 25%. Without debt reduction, Scentre Group's (SCG, A2 negative) gearing will breach its rating tolerance levels if property values fall more than 27%.
But SCG's gearing will remain well within its covenant thresholds.
Diversified A-REITs with retail property are also exposed to devaluations; office value declines are likely to be moderate.
Despite exposure to retail, the risk to diversified A-REITs is mitigated by exposure to industrial as well as office properties.
Stockland Group (SGP, A3 stable) has the largest exposure to retail. SGP has significant buffers within its covenants, but it will approach its rating threshold if its retail property values decline more than 30%.
We expect office property values will decline only moderately over the next 12-18 months and do not see material risks to gearing levels of other diversified A-REITs.
Industrial property values supported by e-commerce penetration and increasing focus on supply chains.
Unlike retail and office, we expect industrial property values will be flat to up slightly over the next 12-18 months.
The pandemic has accelerated e-commerce penetration in Australia and increased focus on supply chains.
The report concluded that Goodman Group (GMG, Baa1 stable), Goodman Australia Industrial Partnership (GAIP, Baa1 stable), and Charter Hall Prime Industrial Fund (CPIF, Baa1 stable) will benefit most.
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Most Australian REITs can withstand property value declines: Moody’s Investors Service

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Housing affordability will deteriorate throughout 2020, according to a report from Moody's Investors Service.
Housing affordability for new mortgage borrowers - measured as the proportion of household income borrowers need to meet repayments on new mortgages – improved on average in Australia over the year to September 2019.
I noted that mortgage interest rate cuts and housing price declines were responsible. 
However, affordability has deteriorated since July 2019 because of a housing price rebound, particularly in Sydney and Melbourne. 
The study predicts that housing affordability will deteriorate over 2020 as housing prices continue to increase. 
The risk of delinquencies and defaults in new mortgages will increase as affordability deteriorates, a credit negative for Australian residential mortgage-backed securities, Moody's said.
On average, Australian households with two income earners needed 24.6% of their monthly income to meet monthly mortgage repayments on new loans in September 2019, down from 26.7% in September 2018 but up from 24.2% in July 2019. 
<img src="https://www.urban.com.au/images/2019/11/4/price%20graph.png" alt="">
Australian housing prices decreased an average 1.6% over the year to September 2019, while average household income increased 2.5% and average mortgage interest rates declined by 0.4 percentage point after the Reserve Bank of Australia lowered the official cash rate in June and July 2019. 
The RBA cut the cash rate further in October, which is positive for affordability, however the study predicts that this will be outweighed by rising housing prices over 2020. 
Housing prices increased 1.7% in the two months to September. 
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Moody's Investors Service predicts that housing affordability will deteriorate in 2020

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South Australia’s housing market remains relatively stable, in part because of the avoidance of excessive runup in values that occurred on the eastern seaboard, according to the latest data from Moody's Analytics.
It found house values in Greater Adelaide rose 1.9% in 2018, supported by strong growth in West and North Adelaide, whereas the increase in unit values was more moderate at 0.7%.
There is some expected divergence in South Australia house values. While house values are expected to fall by 0.5% in Greater Adelaide, they are expected to accelerate in regional South Australia and grow by 1.2% in 2019.
The growth in unit values in Greater Adelaide, however, is likely to remain steady and values are expected to rise by 0.7% in 2019, Moody's Analytics forecast.
<img src="https://www.urban.com.au/images/2019/10/28/SA%20Moodys.JPG" alt="">
Katrina Ell, Economist at Moody’s Analytics said: "In 2020, house values are predicted to rise by 1.4% in Greater Adelaide, supported by a strong pickup in house prices in North and South Adelaide.
"The weakness in house values in Central and West Adelaide, however, is likely to persist next year, with values projected to decline by 1.2% in both suburbs in 2020. In comparison, house values in regional South Australia are expected to record stronger growth of 2.7% in 2020, driven by a significant increase in home values in South Australia-Outback.
"In contrast, unit values in Greater Adelaide are expected to pick up modestly by 0.8% in 2020, because of weaker prices in West Adelaide, which are likely to fall further by 4.9% through 2020.
"House values are predicted to gain momentum in 2021 and increase by 5.1% and 3.9% in Greater Adelaide and regional South Australia, respectively.
"Unit values, however, are forecast to increase moderately by 1.1% in the Greater Adelaide region."
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Adelaide housing market to leap ahead of apartments in 2021: Moody's Analytics

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Sydney’s housing market has started to emerge from its correction, according to the latest data from Moody's Analytics.
They found, Sydney apartment values began expanding from June, while house values enjoyed gains from July and, in both cases, modest improvement is forecast to continue.
House values will fall an average of 8.4% in 2019, before a 7.7% expansion in 2020. This follows a 5.5% decline in 2018.
Moody’s Analytics identified previous episodes of corrections over the last three decades (see Chart 11). This shows that the recent correction has been the longest and steepest on record for the Sydney market.
<img src="https://www.urban.com.au/images/2019/10/28/NSW%20Moodys%202.JPG" alt="">
The most recent peak in house and unit values was around mid-2017.
Although unit values have corrected, it has not been to the same extent as houses.
Unit values are on track to fall by an average of 5.9% in 2019 after a 3.1% drop in 2018. An improvement of 7.9% is expected in 2020, followed by an improvement of 8.4% by 2021.
Click <a href="https://www.propertyobserver.com.au/images/2019/10/28/NSW%20Moodys.JPG" target="_blank">here</a> to enlarge.
<img src="https://www.urban.com.au/images/2019/10/28/NSW%20Moodys.JPG" alt="">
According to Moody's Analytics economist Katrina Ell, "house values in the City and Inner South area have passed their trough after a sharp decline through 2018."
"The Inner South West is on track to see a 12.9% fall in 2019, after a 5.3% fall in 2018. A 6% expansion is forecast for the Inner South West in 2020."
"The correction in Sydney is forecast to have largely passed by 2020, but home value growth will be far from the lofty gains of recent years. Housing values are forecast to rise by an average of 7.7% for houses and 7.9% for apartments."
"Areas outside metropolitan Sydney are mostly on track to escape the bulk of the correction."
"As potential homebuyers’ incomes have not kept pace with the Sydney housing market, demand has increased for areas outside of Sydney, where affordability is better."
"Areas including the Hunter Valley, excluding Newcastle, have become attractive destinations for those still tied to Sydney for employment but for whom purchasing property would stretch the household budget too far.
"These areas have adequate transport links back to Sydney for frequent commuting."
"House values in the Hunter Valley are forecast to fall by 2.1% in 2019 and rise by 3.6% in 2020, after increasing 6.6% in 2018."
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Sydney housing market emerging from correction: Moody's Analytics

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Brisbane apartment prices are expected to perform better than houses in the medium term, according to Moody's Analytics.
They forecast the Greater Brisbane area's apartment values to increase by 5.6% in 2020 after a 0.7% decline in 2019. 
Moody's said growth in Brisbane apartment market has been crimped by high supply in recent years.
Between 2013 and 2016 apartment approvals outnumbered housing approvals on an average three to one.
Recently approvals have been more aligned which is set to drive apartment prices. 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/6/24/Brisbane%20Apartments%20Recovery%202.jpg" alt="">
The increase is forecast to be led by Ipswich and the Moreton Bay North areas which are expected to see prices increase over eight percent in 2020.
"Apartment prices are expected to perform better than house prices for Brisbane (and Greater Brisbane) in the medium term", Moody's advised.
"We forecast home values to underperform throughout the forecast period, while apartment values are expected to reach a trough in 2018-2019 followed by a pronounced recovery in 2020 
Moody's 2021 forecast for Brisbane apartments is similar to how they expect it to perform in 2020, however there are areas of concern in the inner city areas.
Ipswich and the Moreton Bay regions will remain strong, however Moody's believe there will be declines up to 5.4% for apartments in the inner city. 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/6/24/Brisbane%20Apartments%20recovery.jpg" alt="">
 
 
 
 
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Brisbane’s apartment market forecast to rise 5.6% in 2020: Moody's Analytics

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The national housing market is forecast to trough in the third quarter of 2019, according to Moody's Analytics Second-Quarter 2019 Housing Forecast Report.
A gradual recovery in values has been predicted following the end of the downturn.
The May CoreLogic Hedonic Home Value Index results show the national housing market continuing its correction, led by Sydney and Melbourne.
House values across the country have declined almost 11% from their peak in mid-2017.
Moody's Analytics expect Sydney's housing market to lead the way in the recovery in 2020.
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"The correction in Sydney is forecast to have largely passed by 2020, but home value growth will be far from the lofty gains of recent years," Moody's noted.
"Housing values are forecast to rise modestly in 2020, with an average increase of 3.1% forecast for houses and 4% for apartments."
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Moody's have predicted a 7.8% national housing value decline in 2019, with prices to recover in 2020, rising 2.2%. They see a 4.7% increase across the country in 2021. 
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"Support for the improvement is coming from the RBA cutting the cash rate, alongside expected improvement in credit availability from APRA proposing to ease serviceability requirements," Moody's said.
"A gradual improvement will be the path going forward, with softer macroeconomic conditions at home, including expectations of wage growth remaining subdued working to dampen a stronger recovery."
Moody's forecast improvement in Melbourne's housing market too in 2020, with the inner east and north east leading the recovery.
The housing market around the Brisbane area is likely to see either flat or mildly positive returns in the coming years.
There will be areas with a correction in 2019 according to Moody's with a particular weakness in South Brisbane.
Perth is expected to be hit hard over 2019, with house values likely to decline nearly seven percent. Moody's believe there will be a small recovery in 2020 as the local economy improves thanks to population growth.
Adelaide’s housing market will continue its stable run, with house values forecast to rise 0.4% in 2019 after a 1.9% gain in 2018.
Moody's suggest Hobart's booming housing market bull run is likely at the end. House values are forecast to rise 2.8% in 2019, followed by modest corrections in 2020 and 2021. 
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