A landmark former orphanage site in Surrey Hills could be transformed into a new residential community under plans lodged by <a href="https://www.apartments.com.au/developers/antipodean-land-developments">Antipodean Land Developments</a> that would deliver 76 apartments and townhouses while restoring some of the suburb's most significant heritage buildings.

The burgeoninng Melbourne-based developer has submitted plans for the 9,158 sqm site at 1 Kent Road and 24 Durham Road, home to the former St Joseph's Home for Destitute Children, a historic institutional complex dating back to the late 19th century. The proposal seeks to adaptively reuse several heritage buildings while introducing two new four-storey residential buildings set within extensive landscaped grounds.

Designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a> and Kerstin Thompson Architects, the project has been conceived as a contemporary residential village embedded within a restored heritage precinct. The development team describes the design approach as "The Village in the Garden," with new buildings positioned among mature landscaping by OCULUS and significant heritage structures.

<img alt="First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills" data-entity-type="file" data-entity-uuid="44ec8c1b-c0b6-44ae-859e-5811b3e6a023" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Untitled%20design%20%281%29.png?VersionId=p.p1_KFh4iQoV4nisdnPfQBAsWNi7m79" />

The proposal would deliver 76 dwellings comprising a mix of apartments and duplex-style residences, significantly increasing housing supply on one of the largest privately held residential landholdings in Surrey Hills. The development includes 127 car spaces, 24 bicycle spaces and more than 1,000 sqm of communal amenity, with the existing chapel building earmarked for conversion into resident facilities.

According to the planning submission, the project centres on the restoration and adaptive reuse of the site's most significant heritage assets, including the original c.1889 St Joseph's building, the chapel designed by architect Augustus Andrew Fritsch, and the historic brick perimeter walls and entry gates. The proposal also incorporates the retention of other contributory buildings including the former infirmary and school building.

Tract Consultants, in the planning report accompanying the application, said the scheme had been shaped through extensive heritage analysis and design development.

"The shared vision for the Site by the project team has culminated in a scheme which successfully breathes life back into a historic site while delivering upon the objectives of Victoria's Housing Statement in a carefully curated and contextually responsive manner."

<img alt="First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills" data-entity-type="file" data-entity-uuid="7263b7d8-95ea-400f-9531-6ca7d22c3c33" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Untitled%20design%20%282%29.png?VersionId=4cR1tiWOsDpgxEOwZi5vVFcyvvOsYkIE" />

The proposal is being assessed under Victoria's Significant Residential Development with Affordable Housing pathway. As part of the application, three per cent of the project's residential development cost would be contributed to the Social Housing Growth Fund. The development would also provide a diverse mix of one, two and three-bedroom residences targeting a broader range of buyers than typically found in Surrey Hills' detached housing market.

Sustainability initiatives include an anticipated 66 per cent BESS score, natural cross-ventilation to 80 per cent of apartments, 28 per cent deep soil landscaping and a canopy cover outcome exceeding local planning requirements. The proposal also sets aside more than 1,083 sqm for communal indoor and outdoor resident amenity spaces.

<img alt="First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills" data-entity-type="file" data-entity-uuid="33fad46f-fe26-4d0a-acfd-6b776e1c6a3d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Untitled%20design.png?VersionId=D9F6WVSyYCtGvSUmith35LRp6R7PQkw_" />

Planning documents describe the property as one of the largest underutilised residential sites in Surrey Hills, arguing it presents a rare opportunity to introduce "missing middle" housing in an established inner-eastern suburb while preserving and revitalising a significant heritage precinct.

Antipodean Land Developments has built a reputation for design-focused residential projects across Melbourne, particularly in the medium-density sector. Previous developments include Neighbourhood in Brunswick East, delivered with Breathe Architecture, and Balfe Park Lane, designed by Kerstin Thompson Architects.

They've been very active in site acquisition as they build out their future development pipeline. They recently launched Thornubury House, 45 apartments above a mix of commercial, retail, and food and beverage tenancies, and have plans for a boutique project in Fitzroy and another <a href="https://www.apartments.com.au/news/vic/antipodean-plan-apartments-for-deepdenes-missing-middle-on-whitehorse-road">"missing middle" project</a> on Deepdene's Whitehorse Road.

Joel Robinson

First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills

Developer <a href="https://www.apartments.com.au/developers/auyin-property-development">Auyin</a> is the latest to turn to the Victorian Government's Development Facilitation Program in an effort to secure approval for its long-planned, mixed-use project in Elsternwick.

In 2018, Auyin lodged plans with Glen Eira City Council for a 14-storey building, however Council approved a reduced eight-storey scheme. A subsequent VCAT appeal in 2019 upheld the eight-storey height limit.

The project was later amended to nine storeys, but Auyin is now seeking to revive something closer to its original vision. The developer argues that the planning context has evolved significantly over the past decade, particularly within the Elsternwick Activity Centre, where higher-density development has increasingly been encouraged along Glen Huntly Road.

The proposal would transform the 1,239 sqm site at <a href="https://www.apartments.com.au/new-apartments/7-12-horne-street-elsternwick-vic-3185">7-15 Horne Street</a>, opposite Elsternwick Railway Station, into a 13-storey residential and retail development designed by CBG Architects, with 40 apartments

The site currently comprises three commercial properties.

<img alt="First look: 13-storey mixed-use tower planned for Elsternwick activity centre" data-entity-type="file" data-entity-uuid="5f465dd4-509b-4082-a669-0253b313914b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/elsternwick%20podium.png?VersionId=72frWi0SmQ5AVJ3ARRhX5ILUYObhTm7x" />

The proposed apartment mix comprises 25 two-bedroom and 15 three-bedroom residences above 200 sqm of retail space at ground level. Residents would have access to a 90 sqm wellness facility, a 351 sqm communal indoor and outdoor terrace on the third level, and extensive landscaped areas throughout the development. A publicly accessible 135 sqm plaza would be created on the north-east corner of the site, providing seating, landscaping, and a new gathering space adjoining Horne Street.

The design adopts a four-storey podium that references the finer-grain character of the surrounding streetscape, with the upper tower recessed behind generous setbacks on all boundaries.

<img alt="First look: 13-storey mixed-use tower planned for Elsternwick activity centre" data-entity-type="file" data-entity-uuid="e637e763-2abc-4c34-a0aa-5c7ad36fae18" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/elsternwick%20open.png?VersionId=J1AoOpZgTyaF.KeeFSX6lMjEScX8KKRi" />

A key element of the proposal is the reconfiguration and widening of the surrounding laneways. Vehicle access would be retained from Lois Lane, with upgraded pedestrian connections linking Ross Street and Horne Street. The development would provide 58 residential car spaces, two retail car spaces, and 52 bicycle spaces across two basement levels and ground-floor facilities.

Architecturally, the building draws inspiration from the established character of Elsternwick Village. The façade combines dark charcoal brickwork, textured concrete, bronze-toned metal detailing, and extensive planting integrated into podium and tower levels. The design also incorporates a chamfered corner treatment and publicly accessible plaza intended to strengthen pedestrian activity around the station precinct.

Elsternwick's last new development completion was&nbsp;EVA Elsternwick by Pitard late last year. <a href="https://www.apartments.com.au/developers/milieu-property">Milieu</a> is working away on its nature-led neighbourhood, <a href="https://www.apartments.com.au/new-apartments/elsternwick-gardens-by-milieu-8-gordon-street-elsternwick-vic-3185">Elsternwick Gardens</a>, on Gordon Street, with its first stage expected to complete next year.

First look: Auyin seeks mixed-use apartment project in growing Elsternwick Activity Centre

<a href="https://www.apartments.com.au/new-apartments/otium-parkdale-123-125-como-parade-east-parkdale-vic-3195">Otium Parkdale</a>, the 13-residence boutique development by&nbsp;<a href="https://www.apartments.com.au/developers/huxtable-property">Huxtable Property</a>, has entered its final stages of delivery, with completion expected within the coming month and more than half of the residences sold.

The Como Parade East project is nearing the finish line at a time when opportunities to purchase new apartments in <a href="https://www.apartments.com.au/developments/parkdale-vic-3195">Parkdale</a> remain exceptionally limited. Fewer than 10 per cent of dwellings in the bayside suburb are apartments, making developments like Otium a relatively rare addition to a market traditionally dominated by detached housing.

[smartcode_project:default project_id=134974 project_image_fid=5427]

The three-level development comprises 13 residences, including ten two-bedroom apartments and three larger three-bedroom homes, all positioned above a secure basement car park.

Designed by <a href="https://www.apartments.com.au/architects/almeida-architects">Almeida Architects</a> with a strong connection to its coastal surroundings, Otium combines red brick, exposed concrete and dark metal detailing with integrated landscaping and greenery. Expansive glazing, generous balconies and terraces have been incorporated throughout the design to maximise natural light and reinforce indoor-outdoor living.

Inside, the residences feature engineered European oak flooring, natural and reconstituted stone benchtops, Bosch kitchen appliances, ducted heating and cooling, lift access and secure entry systems. The larger three-bedroom residences on the upper level have been designed with house-like proportions, while the two-bedroom apartments prioritise functionality, flexibility and low-maintenance living.

[smartcode_project:default project_id=134974 project_image_fid=5421]

The project is now in its final stages, with <a href="https://www.apartments.com.au/builders/labco">Labco</a> completing the remaining landscaping and external finishing works following the completion of the residences' interiors.

Otium's location within the heart of Parkdale continues to underpin its appeal. Residents will be just steps from local cafés, restaurants, shops and the newly elevated Parkdale Station, while the beach is less than a kilometre away.

With the project tracking ahead of schedule, buyers can currently secure a residence with a five per cent deposit and benefit from settlement terms of up to eight months. The advanced stage of construction also provides buyers with the opportunity to walk through the near-complete residences and experience the quality and finishes firsthand ahead of completion.

[smartcode_project_cta:default project_id=134974]

Otium Parkdale enters final month before completion as rare apartment opportunity nears sellout

A new boutique apartment development is entering the market in <a href="https://www.apartments.com.au/developments/chermside-qld-4032">Chermside</a>, with Brisbane-based developer <a href="https://www.apartments.com.au/developers/ausdev">Ausdev</a> bringing 33 residences to a well-connected pocket of Brisbane's north.

<a href="https://www.apartments.com.au/new-apartments/parkdrive-apartments-chermside-25-sammells-drive-chermside-qld-4032">Parkdrive Apartments</a>, at 25 Sammells Drive, will comprise a mix of one- and two-bedroom residences positioned within walking distance of Westfield Chermside, The Prince Charles Hospital, and Bradbury Park.

Established in 1989, Ausdev has a long-standing presence across both development and construction, with Parkdrive Apartments representing its latest residential project in Brisbane's northern suburbs.

[smartcode_project:default project_id=152125 project_image_fid=363778]

The development has been designed around open-plan living and natural light, with residences featuring stone benchtops, timber cabinetry, BOSCH appliances, and private balconies that extend the living areas outdoors.

Kitchens are positioned as the centrepiece of the homes, incorporating natural material palettes and integrated appliances, while bathrooms have been designed with a focus on functionality and understated finishes.

Residents will have access to a communal barbecue and entertaining area on Level 3, providing shared outdoor space within the development. Secure parking and lift access are also incorporated into the building.

The project will deliver a limited collection of 33 apartments, with one-bedroom residences priced from $749,000.

[smartcode_project:default project_id=152125 project_image_fid=363782]

Beyond the building itself, the location places residents within easy reach of several of Chermside's key amenities. Bradbury Park is around 350 metres away, while Westfield Chermside is approximately 1.3 kilometres from the site. The Prince Charles Hospital is located within 750 metres, and the Chermside Bus Interchange is around 1.5 kilometres away, providing connections across Brisbane.

Parkdrive Apartments adds to the growing residential pipeline in Chermside, a suburb that continues to evolve as a major retail, healthcare, and transport hub for Brisbane's north.

[smartcode_project_cta:default project_id=152125]

Ausdev introduces boutique Parkdrive Apartments to Chermside's growing centre

<a href="https://www.apartments.com.au/developers/skymark-group">Skymark</a>'s boutique Cronulla development Solis has secured a 10-year Latent Defects Insurance policy through Resilience Insurance, providing buyers of the 16-residence building on Ewos Parade with structural and waterproofing protection that extends a decade beyond the building's completion.

Currently under construction and due for completion in late 2027, <a href="https://www.apartments.com.au/new-apartments/solis-cronulla-8-ewos-parade-cronulla-nsw-2230">Solis</a> is one of a small number of new developments in the Sutherland Shire to carry Resilience LDI coverage, a distinction that carries increasing weight as buyer confidence in the off-the-plan sector continues to be shaped by how developers stand behind their product.

Latent Defects Insurance, which entered the Australian market in 2022 when Resilience Insurance was approved to offer the cover, protects buyers against major structural or waterproofing defects for ten years post-completion. Unlike traditional statutory warranties, it operates as a first-resort policy, if a covered defect arises, the insurer responds directly, without the buyer needing to pursue the builder or developer through a lengthy claims process.

Resilience Insurance CEO Corey Nugent has noted that the product addresses something fundamental to the new apartment market.

"The overarching feedback from prospective buyers in the new development space is that they want more confidence and assurances around the quality of the build," Nugent says.

"Resilience Insurance Latent Defects Insurance not only gives them complete peace of mind for 10 years, but it shows the developer they are buying from is standing by their product."

[smartcode_project:default project_id=150499 project_image_fid=370898]

For Solis, the Resilience LDI policy adds a meaningful layer of accountability to an already considered project. The development comprises nine two-bedroom and seven three-bedroom residences, including one dual-level three-bedroom apartment, across a five-storey building on Ewos Parade, positioned between Shelly Beach and South Cronulla.

Garden apartments connect directly to private landscaped courtyards, while upper-level homes capture beach views to the east from level four and above.&nbsp;

All 16 residences include at least one balcony or courtyard, and select apartments on the upper floors feature bar areas and secondary flexible living spaces.

Hiba Sander, Managing Director of Skymark, says Solis offers a rare balance, nestled between the quiet beauty of secluded beaches and the lively charm of South Cronulla's esplanade.

"It's a place to choose your pace and live gracefully, seaside'," Sander says.

[smartcode_project:default project_id=150499 project_image_fid=370900]

The architecture, designed by <a href="https://www.apartments.com.au/architects/ida-design-group">IDA Design Group</a>'s Michael Trinh, draws from the natural erosion patterns of <a href="https://www.apartments.com.au/developments/cronulla-nsw-2230">Cronulla</a>'s sandstone headlands, translating the organic forms of the coastline into soft curves, pavilion-style massing, and a material palette chosen for longevity in a salt-tinged environment.&nbsp;

Textured natural stone, soft renders, and timber-look battens reference the tones of the surrounding cliffs, while the building has been oriented to maximise natural light and passive ventilation, with primary living spaces facing north and east to capture morning sun and sea breezes.

"At Solis, our aim was to create architecture that feels quietly confident, grounded in natural materials like stone and timber, and elevated by light and landscape," Trinh says.&nbsp;

"The buildings are designed to sit gently within their coastal surrounds, with expansive glazing and abundant greenery creating a seamless dialogue between inside and out."

[smartcode_project:default project_id=150499 project_image_fid=370897]

Interiors by <a href="https://www.apartments.com.au/architects/hot-black">Hot Black</a> carry the same material language through to every room. Kitchens feature integrated Gaggenau appliances, sculpted stone benchtops, and Lo &amp; Co joinery, while bathrooms feature natural stone, timber, and brushed metal finishes.&nbsp;

Hot Black Founder and Design Director Sophie Safrin describes the intent as one of considered restraint: "At Solis, every detail has been thoughtfully considered to create a timeless coastal retreat, calm, refined, and effortlessly liveable. From natural finishes to seamless indoor-outdoor flow, Solis offers a quiet elegance that's deeply connected to its surroundings.

The landscape, designed by Julian Brady of <a href="https://www.apartments.com.au/landscape-architect/sitedesignstudios">Site Design Studios</a>, treats green space as an integral part of the resident experience rather than an afterthought.&nbsp;

"Gentle curves and layered native plantings mirror the ebb and flow of the ocean," Julian Brady says, "creating a serene connection between architecture and place."&nbsp;

Coco Republic has provided bespoke furniture packages tailored to the project's coastal palette.

[smartcode_project:default project_id=150499 project_image_fid=370899]

Skymark has an established track record in the Sutherland Shire, with a portfolio spanning Cronulla, Woolooware and Burraneer that includes Isla, Sylva, Bask, Shells, Sula and Mist. Securing LDI on Solis reflects a broader shift in how the developer is positioning its buildings to buyers, at a time when Resilience Insurance expects the policy to become mandatory in New South Wales by 2028.

Sales at Solis are launching soon through Ray White Projects, with an official event scheduled for 11 June. Enquire for more information.

[smartcode_project_cta:default project_id=150499]

Skymark takes out 10-year Resilience Insurance LDI at Solis Cronulla

Oversupply

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Does Australia have a greater housing oversupply than the US? Pete Wargent

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Forecaster BIS Shrapnel this week used apartment oversupply as part of the justification for predicting (minor) price decline in some of our major cities over the next three years.
While I certainly share their concerns about over-building of high-rise apartments, I don’t agree that this means prices generally will fall in those cities.
Does a unit over-supply in inner-city Adelaide or Brisbane prevent house prices from growing in housing markets in the middle-ring and outer suburbs?
On the Gold Coast, past oversupply has resulted in key locations like Surfers Paradise having pricing levels lower than 10 years ago. But it hasn’t prevented inland housing suburbs from delivering price growth averaging 4-5 percent per year over the past decade.
So I expect price growth in housing markets in Brisbane, Adelaide, Canberra and Hobart – as well as the Gold Coast – regardless of the over-supply issue in the high-rise areas of those cities. I’m not expecting much from Sydney or Melbourne in the next few years, because those markets have passed their peaks and sales levels have fallen away dramatically, leading to price stagnation or minor decline.
The unit oversupply is a separate issue – and a serious one. It’s significant that lenders are including high-rise areas on blacklists, that developers are deferring planned projects and that vacancy rates are rising in key areas.
This week I updated vacancy rates for Brisbane inner-city suburbs for a seminar presentation. There has been a market blow-out in vacancies in all six suburbs I reference in that presentation. Most now have vacancies in the 5-6 percent range, according to SQM Research figures. 
In the space of three months, the vacancy rate for the Brisbane CBD has increased from 4.4 percent to 5 percent, while Woolloongabba is up from 4.8 to 5.5 percent and New Farm has increased from 5.3 to 6.1 percent.
These statistics will worsen as projects now under construction are completed and their apartments join the rental pool – because very few of the sales are being made to owner-occupiers.
Apartment markets with current or looming surpluses of stock make up half of the 10 markets highlighted in my No Go Zones report (the only half being regional areas impacted by the resources sector).
This really is one of the core issues facing the property industry. While the developer lobby keeps running the party line about dwelling shortages – despite two years of record building approvals pumped up by apartment projects – the big issue is the opposite problem of surplus.
It’s inevitable that, in some markets, vacancies will rise, rents will fall and values will be impacted.
As BIS Shrapnel senior director Angie Zigomanis says: “Nearly all capital cities are building apartments at record rates on the back of the recent strength in investor demand. As these projects are progressively completed, it is likely that there will not be enough tenants in a number of cities to support rents and consequently values upon completion.”
I’m amazed at how many people are still buying apartments in Surfers Paradise, inner-city Melbourne and inner-city Brisbane, and by the number of new projects seeking approval in oversupplied markets like Perth, Brisbane and Melbourne.
Across the key high-rise suburbs of the Gold Coast, Melbourne and Brisbane, 8,242 people have bought apartments in the past 12 months, including 1,588 in Surfers Paradise and 1,501 in the Melbourne CBD. 
Do these people not read? Don’t they have access to the Internet? The warnings from analysts, commentators, lenders and the Reserve Bank over the past 12-18 months add up to a deafening roar.
If you’re ignoring all that and still buying high-rise units off-the-plan in these markets - or if you’re oblivious to it because you haven’t done even the most basic research - you deserve to lose money.
 
Terry Ryder is the founder of hotspotting.com.au
<a href="mailto:hotspotting@gmail.com">hotspotting@gmail.com</a>
twitter.com/hotspotting
 
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terryryder-YECXbqmri2

Apartment over-building doesn't mean prices will fall: Terry Ryder

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EXPERT OBSERVER
The narrative of over-supply and under-performance in Brisbane units has dominated conversations around south-east Queensland property for almost 5 years.
At January 2020, Brisbane unit values remain 11.5% below their 2010 peak to be at similar levels to 2007. But the latest data on property values, construction and population growth suggest that the story is changing. It is worth noting that over-supply is very much a unit-centric story. H
ouses across Brisbane have actually seen quite strong capital growth returns in the past few years, except for a brief, cyclical downturn over part of 2019. In the previous trough-to-trough cycle that lasted between 2012 and 2019, annual house value growth outperformed unit growth by an average of 290 basis points.
This is larger than usual discrepancies, and is above the series average difference of 130 basis points. In other words, the past cycle saw units significantly ‘under-perform’ relative to housing stock in Brisbane. The rolling annual growth figure shows that unit values have largely declined since July 2016
2016 was a time when units were being built across Brisbane at an unprecedented level. ABS completion data suggests 21,342 units were completed, against a historic average of 11,585 per year. In the December 2016 quarter, the number of unit completions even eclipsed the number of houses delivered across the state.
It is difficult to understand the exact impact this supply has on the Brisbane unit market, given that ABS completions data is currently unavailable beyond a state level on a quarterly basis. However, cross-referencing the approvals dataset with the ABS data by region series, suggests about 75% of state-wide unit construction was centred within the Greater Brisbane metropolitan region.
The time series suggests that the lag between approvals and completions varies from about 1-2 years.
Since 2015, unit approvals have been moderating in response to subdued capital growth performance. The latest quarter of data shows approvals are 46% below the decade average of approvals. This means the delivery of new units across Queensland is likely to be subdued over 2020.
CoreLogic project data suggests unit completions across Brisbane over 2020 will average about 4,000 per quarter, reflecting the long-term average. But supply is only one side of the story. Looking at how population growth has tracked relative to unit completions brings further clarity to value declines in units over 2016.
The figure below shows ‘housing demand’ relative to completions across Queensland. Housing demand represents the number of dwellings needed to accommodate additions to population at each quarter, divided by household density of 2.6. The housing demand is presented as a rolling annual average.
Future housing demand is also estimated based on the Queensland government ‘median’ scenario of population projections, suggesting about 8,000 dwellings are required to house the growing population each quarter to June 2021.
<img src="https://www.urban.com.au/images/2020/2/20/Brisbane%20Oversupply.JPG" alt="">
There has been a convergence between the number of dwellings required and supplied since the start of 2018. With approvals data suggesting a decline in construction, and steady estimates of population growth, Queensland dwellings may fall into undersupply in the year ahead.
Rental yields are also well above the capital city average at 5.3% gross, meaning there could also soon be a turning point in investor demand. However, one unknown in this analysis would be projects that have stalled due to falling unit values in the past few years. If these re-commence, added supply could once again weigh down growth.
The turnaround in the supply-demand dynamic is already being seen in unit values. Since bottoming out in June 2019, CoreLogic indices show the Brisbane unit market has recovered 2.2%.
This fits in with a more broad-based recovery, as reductions in the cash rate have reduced the cost of servicing debt, and increased incentive to purchase property.
ELIZA OWEN is the Head of Research for Australia at CoreLogic
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Is Brisbane still oversupplied? CoreLogic's Eliza Owen

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An undisclosed major bank has a blacklist of 6700 apartment projects across Australia.
The projects are where buyers are either refused loans or are offered reduced loan to value ratios (LVR).
The list has been obtained by The Australian Financial Review from the mortgage broker, Home Loan Experts. The newspaper article only pinpointed a handful of effected projects.
<div>
<div>
It reveals projects where buyers have either been denied loans or offered less funding are 19 Larkin Street in Camperdown in inner-city Sydney, Finbar's Aire apartments in West Perth and Meriton's developments on Main Beach on the Gold Coast and 1 Janoa Place in Chiswick, inner west Sydney.
Sydney-based Home Loan Experts noted "blacklisted" projects vary across the banks. 
Areas which are consistently "blacklisted" however include Wolli Creek and Zetland (above) in inner south Sydney and the Brisbane CBD given a potential oversupply of new units or the bank reaching maximum exposure of loans on a project, managing director Otto Dargan said. 
Earlier this year RiskWise declare Zetland as the riskiest off the plan suburb in 2018.
No Lending (Exposure Reached)
19 Larkin Street, Camperdown, NSW;
58 Cairds Avenue, Bankstown, NSW;
23 Mcintyre Street, Gordon, NSW;
10 Rosamond Road, Footscray, VIC.
Restricted Lending
29 Woodroffe Avenue, Main Beach, QLD, Maximum LVR: 70%; 
1 Janoa Place, Chiswick, NSW, Maximum LVR: 80%; 
Cromwell Road, South Yarra, VIC, LVR: 80%; 
275-277 The Esplanade, Cairns North, QLD, LVR: 70%; 
36 Griffith Street, New Farm, QLD, LVR: 90%; 
659 Murray Street, West Perth, QLD, LVR: 80%
</div>
<div>A dense project is usually one which has more than 30 apartments, Dargan said.</div>
<div>
Serviced apartments or converted hotels are always considered as high-risk lending.
Assisting borrowers who have been rejected by banks is now a constant challenge, Dargan added.
</div>
</div>
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Wolli Creek and Zetland apartment projects on "bank's blacklist" 

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EXPERT OBSERVATION
Skilled job vacancies advertisements rose for an 18th consecutive month according to the Department of Employment, for the first time since March 2011. 
There was quite a jump in the month too, from 184,000 to 189,000, with the trend result now +34% higher (or +47,400 advertisements) than the October 2013 nadir. 
<img src="https://2.bp.blogspot.com/-wACLnNcO25o/WtayckwYfTI/AAAAAAAApcs/NAfKDJ132Uk4Xc5RIzsU6j4V8F11bgsrACLcBGAs/s640/B1.jpg" width="640" height="374" data-original-height="803" data-original-width="1369">
Conditions improved everywhere, especially Western Australia, although South Australia was the notable laggard, with only a small annual change in vacancies. 
Things are certainly looking up, slowly but surely, and when the economy improves often so too does immigration rise.
Indeed, the number of permanent and long term arrivals hit the highest ever level in February 2018 at 105,630, in turn sending the annual total to a record high of 788,260.
If you've ever wondered why Melbourne's supposed oversupply of housing never materialised, here's why.
<img src="https://4.bp.blogspot.com/-mlLxLHUvi3w/WtaybzH43kI/AAAAAAAApco/HmjblYeLJrIEUgLPlTys3ev-gY9FUkryQCLcBGAs/s640/A1.jpg" width="640" height="392" data-original-height="826" data-original-width="1348">
February also played host to a tourism bonanza in honour of Chinese Lunar New Year, with a record 226,900 Chinese arrivals in the month.
<img src="https://2.bp.blogspot.com/-hUpl_MJtO1Y/Wtaycs4gKVI/AAAAAAAApcw/0dl1EY2hoNYX9IHzKotD0Fi2b1jmheH3QCLcBGAs/s640/A2.jpg" width="640" height="406" data-original-height="823" data-original-width="1292">
Including arrivals from Hong Kong there were more than ¼ million visitors in just 28 days.
Unprecedented. 
With 1.4 million short-term visitors over the year to February it's no surprise that China grabs the tourism headlines, though there were also record arrivals from other countries, including India at 311,500. 
<img src="https://4.bp.blogspot.com/-IrLBHimJPGk/Wta1mkKqYzI/AAAAAAAApdQ/g4mNZRNIIbchfD7OO2gbjLq_qT7iWpkCgCLcBGAs/s640/STAs.jpg" width="640" height="378" data-original-height="830" data-original-width="1404">
February is also a key intake month for international students, and education arrivals were also extremely high at 111,500, although this was just a notch below the record high for a month set in February 2017.
Annual arrivals were above 564,000, but these numbers need to be treated with a little care due to double-counting. 
<img src="https://1.bp.blogspot.com/-LY3iAQhR8ik/Wta2MZB6NVI/AAAAAAAApdY/UXhrF7oggZEDKbqNggnxpR3KXSo_FeQOgCLcBGAs/s640/Education.jpg" width="640" height="396" data-original-height="825" data-original-width="1331">
Lots of moving parts here, but the big picture is very strong demographic flows, especially into Sydney and Melbourne, coupled with booming tourism for Australia. A heady combination. 
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Why Melbourne's supposed oversupply of housing never materialised: Pete Wargent

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Despite strengthening underlying demand from the perspective of people wanting to occupy apartments in the Inner Brisbane Apartment (IBA) area, record levels of new apartment completions have tipped the market into oversupply. This has placed downwards pressure on rents and prices. This paper profiles indicators relating to demand, supply, rents and prices.
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Development in Inner Brisbane occurs mainly in large scale and high rise projects in the following locations:
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CBD/Spring Hill 
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Toowong 
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Woolloongabba 
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APARTMENT PROFILE 
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According to recently released 2016 Census data, private rental apartments accounted for 56% of the total apartment stock in the IBA area. This was considerably higher than the 33% share in the Greater Brisbane region. This highlights a strong preference for investors to purchase apartments in the IBA. The share of private rental stock has also increased from the 54% recorded in the 2011 Census. Owner occupied dwellings formed 27% of IBA area stock, with a slightly greater share of these having a mortgage (being purchased).
Conversely, a significantly higher 59% of Greater Brisbane dwellings were owner occupied. Unoccupied dwellings—properties that are second homes or kept empty as a speculative investment—comprised 17% of total apartment stock across the IBA area, compared to 8% across Greater Brisbane. The increased number of unoccupied dwellings is reflective of the rising level of overseas demand, with many of these properties not entering the private rental market.
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DEMAND PROFILE 
The age profile of IBA apartment residents indicate that people first rent when moving into the IBA area, with 60% of rental households at the 2016 Census consisting of occupants aged 20 to 34 years old. If people remain in, or move into, the IBA area beyond 34 years of age, there is a far higher propensity to purchase an apartment.
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Households with a mortgage were mostly younger, with 52% of these apartment occupants aged 30 to 54 years old. Whilst within fully owned apartments in the IBA area, the demographic was much older, with 68% of occupants in these apartments aged 50 years old and over. 
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SUPPLY PIPELINE 
Sustained demand for apartment stock within the IBA area, with moderate growth from 2013 onwards can be attributed to attractive yields, low or volatile returns for other investments and low interest rates. The rise in off–the–plan sales allowed a greater number of projects to reach sufficient pre–commitment levels to obtain finance and begin construction. As a result, the IBA area has experienced a surge in apartment completions, with a record number of completions occurring each year in 2014/15, 2015/16 and 2016/17. Last year 5,700 apartments were completed, while in 2017/18 we estimate that approximately 8,300 apartments will be completed; a new record annual level of apartment completions. As a result, vacancy rates in Inner Brisbane have been rising and were 4% in December quarter 2017. 
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Falling rents and price growth has led to a softening in investor demand. Coupled with restrictions on interest only loans (a mainstay of investors) and the Queensland government introducing a stamp duty surcharge for overseas investors, we expect to see significantly fewer projects being able to achieve the pre-sales requirements for projects to commence. Sharply rising construction costs have also meant that developer’s margins have been eroded, impacting the next round of projects, particularly if there is a slump in prices making planned projects no longer viable.
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A marked trend through 2017/18 has been for developers to abandon or defer projects still in the planning stage. Across the IBA area, 52 projects amounting to well over 10,000 apartments were abandoned or deferred. Some investor demand for IBA apartment stock may be supported by its relative affordability in comparison to equivalent apartment stock in Melbourne and Sydney, although this is unlikely to absorb substantial new apartments stock while the market is in oversupply. 
IBA area completions are expected to fall slightly in 2018/19 and are then expected to revert closer to the longer term average of around the 2,000 completions per annum. Of all IBA precincts, the West End, CBD and the Inner North will see the highest number of apartments come to market. This will be followed by Toowong and Woolloongabba, with a relatively small number of apartments to come online in the Inner East and Hamilton precincts. 
 
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jonathanchancellor-7SQnKwU6yx

Demand, oversupply, rents and prices of inner Brisbane apartments: BIS

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The Bank of Queensland chairman Roger Davis has indicated he remained wary about the Brisbane apartment market.
Speaking at the bank’s annual general meeting on Thursday, Davis said cooling markets on the east coast of Australia were being watched closely.
“BOQ takes some comfort from moderating east coast housing prices and risk conditions, especially in Sydney, and sees no evidence of any systemic weakness in its housing portfolio or substantive increases in its mortgage arrears,” Davis said.
“We do remain wary of conditions in the residential apartment market, especially in Brisbane, where the RBA is warning that this financial year is “crunch time” given the oversupply, low rental increases, tightening credit conditions and ongoing targeted macroprudential regulations,” Domain Media reported.
REIQ chief executive Antonia Mercorella said the bank’s warning to shareholders was fair, but said the medium to long term outlook was much more positive.
“We’ve been dealing with concerns about the oversupply for the past two years,” she said.
“There’s really no evidence at the moment there’s a great cause for alarm. From our perspective, it’s better to take a long term view of the issue."
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j.ballantyne1990-6AQqhLzZaK

Bank of Queensland remains wary of Brisbane apartment market 

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The attention on Brisbane apartment oversupply has been on the newly completed off the plan settlements.
But many established apartments in Brisbane's inner city suburb of Fortitude Valley have quietly notched up resales below their previous sales prices.
Here's a list of some apartments that Property Observer has spotted selling below their first sale prices:
1) <a href="https://www.realestate.com.au/property/unit-509-25-connor-st-fortitude-valley-qld-4006" target="_blank">509/25 Connor Street</a> Fortitude Valley, QLD, 4006
The one-bedroom apartment in the M&amp;A apartment block (above) sold for $320,000 in January 2017, well below its last sold price of $359,660 in 2013, according to CoreLogic RP Data.
It was on the market for 71 days, and was offered for $339,000 earlier in 2016 as well, when it was advertised as the “best deal in Fortitude Valley”.
It was listed for renting for $380 per week in August 2015 and then again a year later in September 2016 for $395 per week.
2) <a href="https://www.realestate.com.au/sold/property-unit-qld-fortitude+valley-124571858" target="_blank">504/25 Connor Street</a>, Fortitude Valley, Qld 4006
This two-bedroom apartment with an area of 74 sqm sold for $425,000 in April 2017 after being on the market for 74 days.
It sold below its previous sale price of $492,000 in 2015. The apartment first sold for $519,000 in 2013, when it was built, CoreLogic RP Data shows.
3) <a href="https://www.realestate.com.au/sold/property-apartment-qld-fortitude+valley-122526038" target="_blank">306/25 Connor Street</a> Fortitude Valley, QLD, 4006
This one-bedroom apartment close to the CBD spanning 61 sqm sold for $315,000 in March 2017, according to CoreLogic RP Data. The apartment was on the market for 337 days.
According to its advert, Ray White agent said it was returning $395 per week.
It previously sold for $371,000.
4) <a href="https://www.realestate.com.au/property-apartment-qld-fortitude+valley-125515742" target="_blank">305/25 Connor Street</a> Fortitude Valley, QLD, 4006
Another one-bedroom unit in the same apartment development - right next door - sold below its previous price.
The latest sale in August 2017 fetched $298,000, well below its previous sale in 2010 at $361,000, CoreLogic RP Data shows.
It was on the market for 188 days.
The unit was advertised for rent at $370 per week.
5) <a href="https://www.realestate.com.au/sold/property-apartment-qld-fortitude+valley-125980430" target="_blank">212/25 Connor Street</a> Fortitude Valley, QLD, 4006
This two-bedroom unit, built in 2013, sold recently for $370,000 after being on the market for just 12 days. However, the sale price was well below its initial sold price of $499,000, CoreLogic RP Data shows.
Even rents have fallen. First advertised for rent in February 2016 for $495 per week, the asking rate was dropped to $480 within a week and earlier this year it was advertised for $450 per week.
6) <a href="https://www.realestate.com.au/property/unit-1016-8-church-st-fortitude-valley-qld-4006" target="_blank">1016/8 Church Street</a> Fortitude Valley, QLD, 4006
This two-bedroom unit in Mosaic Apartments last changed hands for $425,000 in November 2107.
The unit dropped significantly in price from its previous sale in 2012 when it fetched $542,225, CoreLogic RP Data shows.
Asking rents have fallen too from $500 per week in 2015 to $440 by April 2017.
7) <a href="https://www.realestate.com.au/property/unit-5-125-robertson-st-fortitude-valley-qld-4006" target="_blank">5/125 Robertson Street</a> Fortitude Valley, QLD, 4006
This two-bedroom apartment was built in 2000 fetched $400,000 at its recent sale in July 2017, just marginally above its previous selling price of $394,000 in 2010, according to CoreLogic RP Data.
The unit fetched $305,000 in 2006.
It was last advertised for rent at $400 per week. Asking rents have, however, been falling. It was on the market for $475 per week rent previously in 2010.
8) 10/53 Warry Street Fortitude Valley, QLD, 4006
This two-bedroom unit sold for $319,000 in July 2017. Curiously, it sold for $318,000 earlier this year in January. But overall, it has appreciated from its sale in 1998 for $115,000, CoreLogic RP Data shows.
It was last advertised for rent at $380 per week.
 
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Up to $120,000 cheaper: eight loss making established apartment resales in Fortitude Valley 

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The academic report by researchers from the Australian National University (ANU) that outlines the potential over supply of housing in Sydney misunderstands the strong swing to inner city urban living, says the Urban Taskforce. 
The academic report by Australian National University researchers Cukko Joseph and Ben Phillips seems to be based on search algorithms rather than the reality of the market place.
The researchers utilise the search algorithm Newton-Raphsin in the Gregwt SAS Code in their 22 page report to conclude that there is a major oversupply of new homes in Australian cities but NSW government data indicates an undersupply.
The ANU report focusses on a supposed over supply of 5,900 new homes in Inner Sydney but rents are still high in this region indicating an undersupply. The NSW Government predictions are that 40,000 new homes are required each year for Metropolitan Sydney for 20 years yet we are currently only at 35,000 new homes a year.
The Sydney inner city housing market is being driven by a swing to urban living where young couples and older downsizers are looking for a cosmopolitan urban lifestyle that is close to amenities and public transport. Predictions on housing demand must understand this change in living preferences that is quite different to a few decades ago.
The study does acknowledge that its methodology does not account for real demand for new housing. A ‘real demand’ analysis would incorporate consumer preferences and other economic drivers, such as interest rates or employment’. The study also admits there are limitations in its analysis – in terms of its conceptual basis and the data it relies upon. It also states that the study ‘does not conclude that people’s housing needs are being met’.
While all research reports are useful, inputs into the current discussion on housing supply and demand must be balanced with the extensive demographic research undertaken by government agencies.
Our concern with the ANU statements is that they could encourage governments at state and local level to put a brake on housing supply by adding further levies and by slowing down planning approvals. The end product would be to dramatically reduce supply and so drive up the price of housing creating affordability problems.
The Urban Taskforce urges governments at all levels to reduce levies on new housing and to simplify the planning system so that affordable housing can be delivered for those keen to own their own home as well as for those that prefer to rent.
CHRIS JOHNSON is chief executive officer of property development industry group Urban Taskforce and can be contacted <a href="https://www.urbantaskforce.com.au/index.php?option=com_content&amp;view=article&amp;id=97&amp;Itemid=126#.Vdaart55dFI" target="_blank">here</a>.
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cjohnson-8xfqfuuCSq

ANU predictions of housing over supply in Sydney misunderstanding the swing to urban living

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Apartment purchases in more than 100 Brisbane suburbs, circulated on a confidential list, will face new lending restrictions from next Monday from the home town lender, Suncorp.
The list covers 39 Brisbane postcodes.
Under Suncorp's new rules, it will no longer accept investment loan applications for apartments where the buyer does not have a minimum deposit of 20 percent or more.
The exceptions are existing home loan applications and those received before Friday.
"Our settings have been adjusted for postcodes based on recent weakness in the investment unit market in Brisbane, with evidence of a reduction in prices," a Suncorp Bank spokesman said.
4000 Inner Brisbane City
4005 New Farm; Tenneriffe
4006 Fortitude Valley; Bowen Hills; Newstead; Herston
4007 Ascot; Hamilton
4009 Eagle Farm
4010 Albion
4011 Clayfield; Hendra
4012 Nundah; Toombul, Wavell Heights
4013 Northgate
4029 Royal Brisbane Hospital
4030 Kalinga; Lutwyche; Windsor; Wooloowin
4031 Gordon Park; Kedron
4032 Chermside
4051 Alderly; Enoggera; Gaythorne; Grange; Newmarket; Wilston
4053 Brookside Everton Park; Everton Hills, McDowall; Mitchelton; Stafford
4054 Arana Hills, Keperra
4059 Kelvin Grove; Red Hill
4060 Ashgrove
4061 The Gap
4064 Paddington; Milton
4065 Bardon
4066 Toowong; Auchenflower; Mount CootTha
4067 St Lucia
4068 Chelmer; Indooroopilly; Taringa 
4072 University of Qld
4075 Graceville; Corinda; Sherwood; Oxley
4101 Highgate Hill; South Brisbane; West End
4102 Dutton Park; Woolloongabba
4103 Annerley; Fairfield; Fairfield Gardens
4104 Yeronga
4105 Moorooka; Tennyson; Yeerongpilly
4120 Greenslopes; Stones Corner
4121 Holland Park; Wellers Hill; Tarragindi
4122 Mansfield; Mount Gravatt; Wishart
4152 Camp Hill; Carina; Carindale
4169 East Brisbane, Kangaroo Point
4170 Cannon Hill; Morningside; Norman Park; Seven Hills
4171 Balmoral; Bulimba; Hawthorne
4172 Murarrie 
 
The Australian Financial Review who obtained the list reports developers, such as Consolidated Properties, claim Brisbane has been cruelled by restrictions on financing set up to ease speculative apartment buying in Melbourne and Sydney.
Suncorp is a Brisbane based top 20 ASX-listed company with $97 billion in assets which employs 13,400 people and serves close to nine million customers across Australia and New Zealand. 
It commenced business in 1916 as the State Accident Insurance Office. 
The RBA has repeatedly warned buyers of the likely oversupply in Brisbane apartments.
Last week the bank noted to date, the adjustment in the Brisbane apartment market has not resulted in significant stress.
"Settlement failures appear to have remained in line with historical norms, although the peak of new supply is yet to come.
"Some developers, however, report that tighter financing conditions are contributing to delays in the settlement of off-the-plan purchases, as valuations below the purchase price reduce the amount banks will lend.
"In liaison, industry participants and banks express confidence that the Brisbane market will continue to absorb the new supply despite tighter financing conditions for buyers.
"Continued weakness in rents, and so rental income, remains a debt-servicing risk for investors," the RBA said. 
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