<p>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.</p>

<p>The New York-based investor has focused his firm, GreenPoint Partners, on addressing the supply shortage hitting middle market housing in Australia.</p>

<p>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.</p>

<p>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.</p>

<p>“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.</p>

<p>“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.”</p>

<p><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" /></p>

<p>GreenPoint Partners brings years of experience assembling and scaling real estate operating businesses across major markets. And Green sees a big opportunity in Australia.</p>

<p>“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.”</p>

<p>Green said being a builder-developer would give the company the capacity and flexibility it required to deliver reasonably-priced homes.</p>

<p>“We want it to be at that attainable level; not super high end luxury but at that attainable level,” he said.</p>

<p><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" /></p>

<p>&nbsp;</p>

<p>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.</p>

<p>Green praised local policy settings.</p>

<p>“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.”</p>

<p>One Living is also&nbsp;looking at high-density projects and could take on more institutional funding in the future.</p>

<p>“The way we will be able to achieve economies of scale is through size,” Green added.</p>


Joel Robinson

One Living enters Sydney's new apartment market with Northern Beaches site acquisition

<p>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.</p>

<p>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.</p>

<p>Projects by Buxton Director Heath Thompson, who is selling WM Residences, says the townhouses x that perfect middle ground be</p>

<p data-end="683" data-start="511">"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.</p>

<p data-end="882" data-start="690">"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."</p>

<p data-end="882" data-start="690">[smartcode_project:default project_id=134646 project_image_fid=6109]</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>[smartcode_project:default project_id=134646 project_image_fid=6110]</p>

<p>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.</p>

<p>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.</p>

<p>[smartcode_project:default project_id=134646 project_image_fid=6116]</p>

<p data-end="247" data-is-last-node="" data-is-only-node="" data-start="0">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.</p>

<p>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.</p>

<p>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.</p>

<p>[smartcode_project_cta:default project_id=134646]</p>


WM Residences fills gap in Mordialloc townhouse market

<p>&nbsp;</p>

<p>Developer GURNER™ Group has revealed $1.65 billion in residential sales nationally across the 12 months to December 2025, driven largely by the continued momentum of its Docklands wellness-focused precinct, Elysium Fields.</p>

<p>The sales result was generated across seven projects in Victoria and New South Wales, headlined by Elysium Fields, GURNER™’s $2.75 billion mixed-use precinct planned for Harbour Esplanade in Docklands.</p>

<p>The project has recorded more than $500 million in sales across the first three towers, equating to around 580 apartments sold.</p>

<p>The first tower, Helios, has now sold out of its 240 private residences, with GURNER™ preparing to release a premium penthouse collection comprising 15 three-bedroom penthouses in coming weeks.</p>

<p>[smartcode_project:default project_id=144441 project_image_fid=370975]</p>

<p>Elysium Fields is being developed on the long-held 20,000 sqm Docklands site at 208-226 Harbour Esplanade, which had remained undeveloped for more than two decades prior to GURNER™ taking over the project around four years ago.</p>

<p>Construction has now commenced across four towers ranging between 18 and 30 storeys, with Hamilton Marino and Maxcon appointed as builders.</p>

<p>Once complete, the precinct is expected to comprise around 1,100 residences, alongside retail, hospitality and public realm uses integrated throughout the site.</p>

<p>[smartcode_project:default project_id=144441 project_image_fid=370981]</p>

<p>Designed by Fraser &amp; Partners in collaboration with GURNER™ Design House, the project has been positioned around the developer’s broader focus on wellness-led residential living.</p>

<p>“We don’t sell apartments. We create a true luxury lifestyle that simply doesn’t exist elsewhere in the market today,” Founder and Executive Chairman Tim Gurner said.</p>

<p>“To deliver that requires an extraordinary level of detail, coordination and discipline across multiple verticals, from design and hospitality through to wellness and service.”</p>

<p>“We’ve always believed that living extends far beyond the physical residence. It’s about how you feel the moment you arrive, how you live day-to-day, and the ecosystem that supports that.”<br />
[smartcode_project:default project_id=144441 project_image_fid=370977]</p>

<p>The project’s design places a heavy focus on landscaping, wellness amenities and biophilic design principles.</p>

<p>Plans include around 3,700 sqm of landscaped gardens and open space throughout the precinct, alongside a retail and dining offering spanning approximately 5,000 sqm.</p>

<p>The broader public realm strategy centres around what GURNER™ describes as the “Path of Life”, an urban forest and landscaped pedestrian environment intended to connect the various buildings and wellness spaces across the precinct.</p>

<p>The apartments themselves will incorporate a range of wellness-focused inclusions, including purified air and water systems, circadian lighting, antimicrobial surfaces, and optional in-home wellness upgrades.</p>

<p>[smartcode_project:default project_id=144441 project_image_fid=370980]</p>

<p>Gurner said the company’s experience through its Saint Haven wellness clubs had directly informed the residential offering now being incorporated into Elysium Fields.</p>

<p>“We’re seeing a clear global shift toward longevity, performance and proactive health,” Gurner said.</p>

<p>“Our role is to deliver that in a way that feels seamless, highly private and beautifully resolved within the environments we create.”</p>

<p>A large component of the wellness offering is planned through the resident amenity and health facilities proposed within the precinct.</p>

<p>That includes plans for bathing and recovery facilities spread throughout the towers, incorporating mineral pools, saunas, steam rooms, flotation therapy, red light therapy and wellness lounges.</p>

<p>The developer is also seeking approvals for what it describes as a “reverse ageing medical clinic” within the precinct.</p>

<p>[smartcode_project:default project_id=144441 project_image_fid=370978]</p>

<p>According to project information released by the group, the proposed facility would include cryotherapy, IV infusion therapy, infrared and dry saunas, PEMF beds, MRIs, DEXA scans, brain scans and blood analysis services.</p>

<p>Within the first tower, Helios, residents will also have access to a dedicated amenity offering known as the Sky Private Club.</p>

<p>The upper 15 levels of the building will include private lounges, dining spaces, rooftop amenities and optional private wellness studios integrated within residences.</p>

<p>The Helios tower itself comprises 260 apartments ranging between 60 sqm and 300 sqm, including a collection of penthouses.</p>

<p>That includes a planned two-storey penthouse spanning around 600 sqm with uninterrupted bay views.</p>

<p>The Elysium Fields precinct is being delivered in partnership with Digital Harbour Holdings, a consortium that includes the Liberman family, which controls the development rights across the Docklands site.</p>

<p>[smartcode_project:default project_id=144441 project_image_fid=370979]</p>

<p>The sales result comes as GURNER™ continues expanding its national development pipeline beyond Victoria.</p>

<p>“We have a strong pipeline across Australia and are now focused on scaling into key markets including New South Wales and Queensland, while continuing to build on our Melbourne base,” Gurner said.</p>

<p>“We currently have more than $3 billion in the market, growing to over $5 billion by October, and expect to materially outperform last year in the 2026 calendar year.”</p>

<p>The result also reflects the continued strength of the upper-end apartment market in Melbourne, particularly for owner-occupier-focused product with large-scale amenity and lifestyle offerings.</p>

<p>[smartcode_project_cta:default project_id=144441]</p>


Record result anchored by the Group’s “utopian” Elysium Fields precinct – defying market headwinds in Docklands.

Elysium Fields drive Gurner to $1.65 billion in apartment sales over 2025

<p>National Australia Bank (NAB) will fund <a href="https://www.apartments.com.au/new-apartments/palmera-residences-gold-coast-18-garfield-terrace-surfers-paradise-qld-4217">Palmera</a>, a $1 billion, 52-level luxury residential tower being developed by Central Equity in one of the Gold Coast’s most tightly held coastal locations at Northcliffe.</p>

<p>The project, launched recently by <a href="https://www.apartments.com.au/developers/central-equity">Central Equity</a>, one of Victoria’s largest private residential developers, comes at a time when construction funding for large residential developments has become increasingly competitive as lenders tighten exposure to the sector.</p>

<p>Multiplex has been appointed the builder, and construction is now underway.</p>

<p>[smartcode_project:default project_id=108274 project_image_fid=365784]</p>

<p>Since its first project, Central Equity has delivered more than 85 residential developments with a combined end value exceeding $8 billion.</p>

<p>Palmera reflects Central Equity’s growing focus on the Gold Coast luxury apartment market and continues a relationship between Central Equity and NAB that dates back to the late 1980s, when the bank funded one of Melbourne’s earliest inner-city residential towers at a time when high-rise apartment living in the CBD was largely unproven.</p>

<p>“NAB’s funding of Central Equity’s $36 million CBD development in the late 1980’s to the financing of the billion-dollar tower today highlights the long-term relationship between the two organisations in delivering major residential projects” said Central Equity Founder and Chairman Eddie Kutner.</p>

<p>He said NAB’s early support was instrumental in helping establish the company’s development model.</p>

<p>“When we commenced our first residential tower in the late 1980s the concept of funding off-the-plan apartments was still largely untested in Australia,” Kutner said.</p>

<p>“NAB recognised the opportunity early and supported the project when others were uncertain. That relationship has now continued for more than 37 years across many developments.”</p>

<p>[smartcode_project:default project_id=108274 project_image_fid=365771]</p>

<p>Central Equity was established in 1987 when Melbourne’s CBD and Southbank precinct were still dominated by warehouses and commercial buildings. Fewer than 100 residents lived in Southbank at the time, and large-scale residential development in the inner city was not widely considered.</p>

<p>Recognising changing demographics and lifestyle preferences, the company began developing high-rise residential projects designed to bring permanent residents into the city centre.</p>

<p>Central Equity has provided accommodation for approximately 40,000 residents across Melbourne’s CBD and Southbank, while also incorporating supporting infrastructure including essential lifestyle facilities like retail spaces, childcare facilities and neighbourhood activity centres.</p>

<p>Central Equity has spent many years assembling the Palmera development site on the corner of Garfield Terrace and Frederick Street in Northcliffe, creating a supersite of around 3,300 sqm.</p>

<p>The developer said the Palmera apartment tower reflects its long-term view of the Gold Coast as a growing and increasingly diversified economy.</p>

<p>[smartcode_project:default project_id=108274 project_image_fid=365768]</p>

<p>Supported by infrastructure including the light rail network, major road upgrades expanded education, hospital and medical facilities and continued expansion at the Gold Coast Airport with more international and domestic flights.</p>

<p>Positioned in the tightly held Northcliffe precinct, the 52-level tower will deliver 347 apartments, targeting buyers seeking a high-end coastal lifestyle, from downsizers to interstate investors.</p>

<p>Designed by Marchese Partners with interiors by DBI, Palmera has been conceived as a next-generation residential offering, featuring a collection of oversized apartments, with premium three-bedroom residences offering sweeping northern views stretching from Surfers Paradise through to Burleigh Heads.</p>

<p>[smartcode_project_cta:default project_id=108274]</p>


NAB funds $1 billion Surfers Paradise apartment development, Palmera

<p>Two years after completing one of the newest developments in North Sydney, developer <a href="https://www.apartments.com.au/developers/aqualand-australia">Aqualand</a> is turning its attention to the rapidly evolving St Leonards apartment market.</p>

<p>The developer, which completed AURA by Aqualand on North Sydney's Walker Street, has lodged plans for a 5,918 sqm site at <a href="https://www.apartments.com.au/new-apartments/33-37-herbert-street-st-leonards-nsw-2065">33-37 Herbert Street, St Leonards,</a> seeking approval for a pair of residential towers rising above a shared podium opposite Royal North Shore Hospital.</p>

<p>The proposal forms part of the broader transformation underway across the St Leonards-Crows Nest precinct, where former industrial and commercial sites are increasingly being redeveloped into high-density mixed-use projects tied to major transport infrastructure.</p>

<p data-end="792" data-start="529"><img alt="Aqualand" data-entity-type="file" data-entity-uuid="2cc428cf-fe70-4cac-9cd5-264ad53af62c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.56%E2%80%AFAM.png?VersionId=otKSnHtbjAvAddOnovyXQMgcAwE6DMe1" /></p>

<p data-end="1040" data-start="794">According to the planning documents, the site sits “within the St Leonards–Crows Nest Strategic Centre, identified by the NSW Government as a key area for accommodating future jobs and housing across Sydney.”</p>

<p>The proposal has been designed by fjcstudio, formerly FJMT Studio, and is being progressed through the State Significant Development pathway due to its scale and affordable housing provision.</p>

<p>The scheme would comprise 413 apartments, including 46 affordable housing units, alongside retail and commercial uses fronting Herbert Street. The project would also include communal open space, landscaping, a swimming pool, gymnasium, children’s play areas and podium-level resident amenities.</p>

<p>Planning documents show the development would consist of a part-13, part-39 storey tower form positioned above a four-storey podium.</p>

<p>“The development comprises a unified podium that activates the street interface, and two setback towers to accommodate new housing supply while maintaining an appropriate human scale at ground level,” fjcstudio noted in its Design Report.</p>

<p>The northern and southern towers have been shaped to respond to the surrounding skyline while also limiting overshadowing impacts to nearby public open space, particularly Talus Reserve.</p>

<p>The design report said the differing tower heights were intended to “contribute to a varied skyline while responding to the surrounding built form context and solar access considerations.”</p>

<p><img alt="Aqualand" data-entity-type="file" data-entity-uuid="36da62dc-ff9e-41f2-a7e3-7be38373751c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.45%E2%80%AFAM_0.png?VersionId=Mo6Rp2r.XRLTzIfg_PEEpw8NepDH8UBs" /></p>

<p>The site sits directly opposite Royal North Shore Hospital and within walking distance of both St Leonards Station and the new Crows Nest Metro station.</p>

<p>While the site itself sits just outside the formal Crows Nest Transport Oriented Development boundary, the planning documents repeatedly reference its alignment with the broader TOD objectives reshaping the Lower North Shore.</p>

<p>“The site is located adjacent to St Leonards Station and in close proximity to Crows Nest Metro which is within the Crows Nest Transit Orientated Development Accelerated Precinct which has been identified by the NSW Government to support housing delivery,” the Design Verification Statement noted.</p>

<p>According to fjcstudio, the project has been designed to respond to the broader transition occurring across St Leonards, where increasing residential density is being concentrated around transport infrastructure and employment hubs.</p>

<p>“The broader precinct is undergoing significant change, with a mix of existing mid-rise buildings and newer high-density developments,” the report stated.</p>

<p>“Recent and approved projects indicate a consistent shift toward taller built form, typically organised as tower-and-podium typologies with more active ground levels.”</p>

<p>The proposal includes close to 6,000 sqm of retail and commercial space across the ground floor and podium levels, designed to create a more activated street edge along Herbert Street.</p>

<p>Aqualand’s plans would also introduce a landscaped podium shared between the two towers, with communal open space in the form of a podium rooftop designed to support resident interaction and improve urban greening outcomes. The scheme would also introduce pocket parks at the northern and southern ends of the site, including a landscaped area at the corner of Herbert and Ella streets designed to improve pedestrian amenity and soften the streetscape.</p>

<p>&nbsp;</p>

<p>The proposal is being progressed through the NSW Government’s Housing Delivery Authority pathway, which was introduced to accelerate housing supply across the state. The application was declared State Significant Development in April 2025 following an expression of interest process.</p>

<p><img alt="Aqualand" data-entity-type="file" data-entity-uuid="faf6d97d-2671-454f-b85a-fe1c6a7be608" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.49%E2%80%AFAM.png?VersionId=diVd28OBVr5.YV.7prrOz.uAanwwwm7a" /></p>

<p>St Leonards has been particularly active with new developments in recent weeks. Developer SP Setia’s <a href="https://www.apartments.com.au/news/nsw/first-look-sp-setia-targets-st-leonards-skyline-with-40-storey-tod-tower">plans for a new 42-storey tower</a> recently went on exhibition through the same pathway, while <a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">Stockland’s 52-storey tower proposal</a> was also recently unveiled.</p>

<p>Aside from the St Leonards project, which is expected to take around nine months to move through the approvals process ahead of a potential 2027 launch, Aqualand is also preparing to launch Boronia, a new apartment project in Roseville comprising around 111 apartments on Larkin Street.</p>

<p>The developer also has approvals in place for the next stage of the Barangaroo precinct, which will feature new residential, retail, hospitality and community uses, alongside a new metro entry across the five-hectare site.</p>

<p>More than 50 new retail destinations are planned for Central Barangaroo, alongside a 270-metre-long boulevard connecting Hickson Park to Nawi Cove. Together with Harbour Park, more than 50 per cent of the precinct will comprise public open space and parkland.</p>


First look: Aqualand joins St Leonards apartment party

Pete Wargent

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<p>A result that will surprise a few observers, with the Commonwealth Bank of Australia reported unaudited cash earnings of around $2.65 billion for the quarter, up by +6% on improved margins. </p>
<p>There were seasonal declines in personal loans and credit card arrears.</p>
<p>An interesting point of note was that 90-plus day home loan arrears were tracking at 0.59%, marginally lower from the preceding quarter. </p>
<p>CBA noted that 90-plus day home loan arrears have declined slightly over the past few years to 0.48% when the state of Western Australia is excluded.</p>
<p><img src="https://4.bp.blogspot.com/-cfk8FlVcMbY/WgNFN4xiRpI/AAAAAAAAm7A/fnLLJO2PFkcnuw_PLTaZYnimSeBQ2fzJgCLcBGAs/s640/CBA.jpg" width="640" height="346" data-original-height="550" data-original-width="1012"></p>
<p> </p>
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pwargent-M4siyDbqQY

Home loan arrears tracking lower at CommBank: Pete Wargent

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<div>Within the Consumer Price Index figures, the ABS produces some very useful quality-adjusted figures on rental price inflation. </div>
<div> </div>
<div>The data series shows how rents can rise very fast when investors are spooked out of the market, such as between 1985 and 1987 (changes to tax legislation) and 2008 (global financial crisis).</div>
<div> </div>
<div>When investor activity is high, on the other hand, the growth in rents is likely to be weaker, and this is also the case when low interest rates make buying a home comparatively more attractive than renting. </div>
<div> </div>
<div>In this context, nationally annual rental price growth is at its lowest level in more than 22 years, at 0.6 per cent.</div>
<p><a href="https://4.bp.blogspot.com/-TapbS0WJLJA/WIiHzukMDfI/AAAAAAAAhak/ndXk6_mJwuYkNIMYlgamcTe_ZXRg6mH3QCLcB/s1600/A5.jpg" target="_blank"><img src="https://4.bp.blogspot.com/-TapbS0WJLJA/WIiHzukMDfI/AAAAAAAAhak/ndXk6_mJwuYkNIMYlgamcTe_ZXRg6mH3QCLcB/s640/A5.jpg" width="640" height="340"></a><br><br>In Perth, annual rental growth has turned negative to the tune of -7.2 per cent.<br><br></p>
<div><a href="https://2.bp.blogspot.com/-uEibKl7v3wA/WIiHzuEUPiI/AAAAAAAAhag/SXTXMTsRc6glPmclKzhWpDZgTpWppJaLgCLcB/s1600/A3.jpg" target="_blank"><img src="https://2.bp.blogspot.com/-uEibKl7v3wA/WIiHzuEUPiI/AAAAAAAAhag/SXTXMTsRc6glPmclKzhWpDZgTpWppJaLgCLcB/s640/A3.jpg" width="640" height="352"></a></div>
<p> </p>
<div>Darwin is by some margin the weakest rental market, with rents declining by -8.2 per cent in 2016.</div>
<div> </div>
<div>On the other side of the ledger, Hobart is the tightest capital city rental market, with quality-adjusted rents increasing by 3.5 per cent in 2016. </div>
<p> </p>
<div><a href="https://1.bp.blogspot.com/-UxoHSu6V94w/WIiHzDbkYtI/AAAAAAAAhac/dxkvE9U8dU8nCp-g_SVnqVl0DqN1_KvIgCLcB/s1600/A4.jpg" target="_blank"><img src="https://1.bp.blogspot.com/-UxoHSu6V94w/WIiHzDbkYtI/AAAAAAAAhac/dxkvE9U8dU8nCp-g_SVnqVl0DqN1_KvIgCLcB/s640/A4.jpg" width="640" height="358"></a></div>
<p> </p>
<div>A look at the long-run figures shows that despite the supply response real rents in both Sydney and Melbourne continued to rise to all-time highs. </div>
<p> </p>
<div><a href="https://4.bp.blogspot.com/-4bBihfkI2e8/WIiH0l1XAdI/AAAAAAAAhao/x9GcxFT-oyogKdHKJnWFu4ENGUXxTHbPQCLcB/s1600/A6.jpg" target="_blank"><img src="https://4.bp.blogspot.com/-4bBihfkI2e8/WIiH0l1XAdI/AAAAAAAAhao/x9GcxFT-oyogKdHKJnWFu4ENGUXxTHbPQCLcB/s640/A6.jpg" width="640" height="340"></a></div>
<p> In real terms, at the city level Brisbane rents are certain to move lower in 2017 due to the inner city apartments overbuild. </p>
<p>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</p>
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Where capital city rents are falling further in 2017: Pete Wargent

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<div id="post-body-8543739889757925821" class="post-body entry-content">
<div>EXPERT OBSERVER</div>
<div> </div>
<div>Very cagey auction activity in Sydney, with a preliminary clearance rate of only 44.5 per cent (more like somewhere in the thirties come final). </div>
<div> </div>
<div>The median auction price of a sold house was well down from a year earlier at $1,285,000, reflecting reduced borrowing capacity (mainly for investors rather than homebuyers). </div>
<div> </div>
<div>For units the median price of property sold at auction was up from $900,000 a year earlier to $940,250.  </div>
<div> </div>
<div>But still very muted activity levels overall.<br><br>
</div>
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<br><div>Melbourne's clearance rate is also now well under 50 per cent. </div>
<div> </div>
<div><strong><span style="text-decoration: underline;">ALP in the ascendancy</span></strong></div>
<div> </div>
<div>With the Coalition roundly punished by the electorate in the Wentworth by-election for their machinations and tanking to a minority government in the process, property market participants will need to weigh up the potential impacts of changes to negative gearing legislation.</div>
<div> </div>
<div>I'll post an online workshop on this very subject this week, so keep an eye out for that. </div>
<div> </div>
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<div><strong><span style="text-decoration: underline;">Tightening</span></strong></div>
<div> </div>
<div>Thanks for the thousand or so Tweets, messages, and pingbacks about record underutilisation and the like - a pleasure as always! </div>
<div> </div>
<div>Yes, it's a problem.</div>
<div> </div>
<div>No, it's not been getting worse.</div>
<div> </div>
<div>Volume measures - reported quarterly on an original basis - have consistently improved year-on-year since 2014...through 2015, 2016, 2017, and 2018 year-to-date.</div>
<div> </div>
<div>All publicly available information from the ABS:</div>
<div> </div>
<div class="separator"><a href="https://4.bp.blogspot.com/-8PwnBImzULE/W8ogJ9Ym19I/AAAAAAAAse4/wNu6at2drA8ml6ZCrU3QPZTz8kDzBRKOQCLcBGAs/s1600/ABS1.jpg"><img src="https://4.bp.blogspot.com/-8PwnBImzULE/W8ogJ9Ym19I/AAAAAAAAse4/wNu6at2drA8ml6ZCrU3QPZTz8kDzBRKOQCLcBGAs/s640/ABS1.jpg" width="640" height="388" data-original-height="805" data-original-width="1322"></a></div>
<div> </div>
<div>Yes, there is more work to be done (literally so in this case!).</div>
<div> </div>
<div>The Reserve Bank has noted the same patterns, but still believes that the unemployment rate is the key measure, and that's at the lowest level since 2012.</div>
<div> </div>
<div>No, this won't be reported in left-leaning media<em>, </em>nor for that matter whichever 'recession' blogs you may care to mention.<br><br><em>C'est tout. </em>
</div>
<div> </div>
<div>Cheers!<br><br>Very low preliminary auction clearance rates this weekend, under 50 per cent for Melbourne, and just 44 per cent for Sydney.<br><br>It'll be a long, slow run into Christmas from here this year. </div>
</div>
</div>
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Auctions fizzle out for 2018

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<div>There's an old tradition when it comes to job numbers that goes something like this: if the numbers are crap we're doomed; and if the numbers are good then they must be wrong.</div>
<div> </div>
<div>The technical term for this is <em>confirmation bias</em>.</div>
<div> </div>
<div>As ever this month's <a href="http://petewargent.blogspot.com/2018/09/enormous-jobs-growth-in-nsw" target="_blank">booming jobs numbers</a> were treated with anything from scepticism to outright derision.</div>
<div> </div>
<div>And yet the solid results have kept on coming, especially in the two most populous states. </div>
<div> </div>
<div>There's another bias that tends to impact people: when things have been bad, they expect bad things to continue.</div>
<div> </div>
<div>And quite understandably we're seeing a lot of this in relation to weak private sector wages growth.</div>
<div> </div>
<div>After all, soft nominal wage price growth has been around since 2015, so it's becoming quite hard to imagine that pay packets could soon begin to swell again. </div>
<div> </div>
<div>But take note, because in some states this may be about to change...</div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Private sector wages to lift</span></strong></div>
<div> </div>
<div>Although it never seems to get reported anywhere, I've shown <a href="http://petewargent.blogspot.com/2018/07/statistical-buggery" target="_blank">several times before</a> that while the underutilisation <strong><em>rate </em></strong>is high, in volume measures terms things have been very steadily improving for the past few years. </div>
<div> </div>
<div><span>That is to say, lots of people still want more hours of work, but the numbers of extra hours wanted has been declining over the past four years.</span></div>
<div><span> </span></div>
<div class="separator"><a href="https://2.bp.blogspot.com/-1YQRG8zAXOg/W51tO98q9RI/AAAAAAAAr6M/vjMLPeIRSGQWCmjRozgEk1kmQtCf41EOACLcBGAs/s1600/UU.jpg"><img src="https://2.bp.blogspot.com/-1YQRG8zAXOg/W51tO98q9RI/AAAAAAAAr6M/vjMLPeIRSGQWCmjRozgEk1kmQtCf41EOACLcBGAs/s640/UU.jpg" width="640" height="376" data-original-height="799" data-original-width="1355"></a></div>
<div> </div>
<div>Where is wages growth going to show up first?</div>
<div>
<br>The answer is Victoria, with construction firing up across the state <a href="http://petewargent.blogspot.com/2018/07/state-of-victoria-getting-under" target="_blank">on an unprecedented scale</a>.</div>
<div> </div>
<div class="separator"><a href="https://1.bp.blogspot.com/-UwNPSL_X5r4/W51uLZYH0sI/AAAAAAAAr6U/DSEyyKW3gQ0gBKzC7K9tuLxpeXKi0KoPACLcBGAs/s1600/VIC.jpg"><img src="https://1.bp.blogspot.com/-UwNPSL_X5r4/W51uLZYH0sI/AAAAAAAAr6U/DSEyyKW3gQ0gBKzC7K9tuLxpeXKi0KoPACLcBGAs/s640/VIC.jpg" width="640" height="364" data-original-height="799" data-original-width="1402"></a></div>
<div> </div>
<div><span>And sure enough this week's figures showed that the underutilisation rate in Victoria has dived from a seasonally adjusted peak of 16.1 per cent to 12.5 per cent, with the trend pointing straight down. </span></div>
<div><span> </span></div>
<div>If you listen to the brilliant Business Insider <em>Devils &amp; Details</em> podcasts you'd be well across the following point thanks to the awesome deep-dive analysis of Justin Smirk at Westpac.</div>
<div><span> </span></div>
<div><span>Even allowing for potentially rogue seasonally adjusted figures, the trend improvement points to private sector wages growth in Victoria returning to 3<span>½</span> per cent in due course. </span></div>
<div>
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</div>
<div>The recent improvement in New South Wales has been a little shallower, but the trend is quite similar, and in fact the unemployment rate in the state is now down to just 4.7 per cent in seasonally adjusted terms. </div>
<p> </p>
<div>Here's the paradox of immigration: of course, it adds to the supply of labour, but it also creates demand in the economy. </div>
<div> </div>
<div>Indeed, as Smirk has demonstrated previously, the underutilisation in the labour force has not been behaving in a way consistent with it being solely caused by immigration. </div>
<div> </div>
<div>And these numbers confirm that he's right, with the tightening labour markets being those where most immigrants are heading to.</div>
<div> </div>
<div>The numbers in Victoria and New South Wales keep on improving.<br><br>This certainly won't stop the calls for lower immigration, of course, or indeed the predictions of a recession, but these numbers suggest that wages growth should pick up from here. </div>
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Wages growth in NSW and Victoria is coming: Pete Wargent

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<div>EXPERT OBSERVATION</div>
<div> </div>
<div>It's a happy new year, and all that, but not so much for bankers, with lending growth continuing to flounder. </div>
<div> </div>
<div>The Reserve Bank's latest figures showed credit growth slowing to 4.4 per cent, down from 5.2 per cent a year earlier, and broad money growth at fresh quarter-century lows of just 1.86 per cent. </div>
<p> </p>
<div class="separator"><img src="https://1.bp.blogspot.com/-1I8fNGCXk6k/XCqUFoyKJPI/AAAAAAAAtsc/xXakammeXQAlHhvGQp9I_UB9FnMLp02cwCLcBGAs/s640/RBA1.jpg" width="640" height="370" data-original-height="801" data-original-width="1383"></div>
<p> </p>
<div class="separator"> </div>
<div>It was noteworthy to hear last week that the RBA has been watching the gross household debt-to-income ratio as a main point of concern, especially as <a href="http://petewargent.blogspot.com/2018/12/debt-ratio-revised-lower-now-falling" target="_blank">this ratio has already peaked and is now falling</a>. </div>
<div> </div>
<div>The distinction from <em>housing</em> debt-to-income was quite interesting (to me at least) as the lines between housing, small business, and personal credit are blurred at best, with small business loans often secured against a home, and so on. </div>
<div> </div>
<div>As you can see in the chart below, changes in the direction of housing credit growth have tended to lead changes in dwelling price growth. </div>
<div> </div>
<div>You can also see that no such change had occurred by the end of November 2018. </div>
<p> </p>
<div class="separator"><img src="https://1.bp.blogspot.com/-Dqi23bcB6-Q/XCqUHZwLEgI/AAAAAAAAtsg/RKoxndSCpVUL5OIvz-ZGLEb4G8XspSL5gCLcBGAs/s640/RBA3.jpg" width="640" height="378" data-original-height="795" data-original-width="1346"></div>
<p> </p>
<div>A simple credit impulse model as favoured by ANZ economists suggests that capital city (i.e. Sydney and Melbourne) dwelling price declines should moderate, although there are several factors unique to this cycle - not least the boom and bust in Chinese investors - that could throw the model a bit off course (this may have already happened to some extent since 2014). </div>
<p> </p>
<div class="separator"><img src="https://2.bp.blogspot.com/-hg19s7pQfzU/XCqUE6b5LmI/AAAAAAAAtsY/pvq8s6-v7MEhCHqgIJamHA7GeoF0vQUcQCLcBGAs/s640/RBA2.jpg" width="640" height="374" data-original-height="787" data-original-width="1341"></div>
<p> </p>
<div>Investor credit growth was already at the lowest level on record, and it fell to even lower levels last month, allowing APRA to remove another of its now-redundant arbitrary caps, this time on interest-only lending. </div>
<div> </div>
<div>Given the enormous growth in the population aged 25 to 34 in particular, this is now a remarkably low level of growth in investor credit, even if it did follow on from a boom. </div>
<div> </div>
<div class="separator"><img src="https://4.bp.blogspot.com/-LmCPOkyIAMs/XCqUDn5r1zI/AAAAAAAAtsU/43fTNK6yncENxThK3etijkbED9oHjaPAgCLcBGAs/s640/RBA.jpg" width="640" height="366" data-original-height="803" data-original-width="1402"></div>
<p> </p>
<div>Not surprisingly the growth in owner-occupier credit also declined for a ninth consecutive month.</div>
<div> </div>
<div>CoreLogic will release its latest home value index for the month of December, and this will show significant declines for Sydney and Melbourne in 2018.<br><br><strong><span style="text-decoration: underline;">The wrap</span></strong><br><br>In short, business credit was moderate, personal credit was negative, and housing credit has no pulse - let's hope that doesn't turn into a full-blown coronary.</div>
<div> </div>
<div>Happy New Year! </div>
<div> </div>
<div><em>PETE WARGENT is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and blogger.</em></div>
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2018 finishes with housing credit having no pulse: Pete Wargent

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<div>I took a look <a href="http://petewargent.blogspot.com/2018/06/unemployment-falls-to-54pc" target="_blank">here</a> at the employment growth figures during the week, which broadly showed that the unemployment rate in Australia is back down to where it was in 2013. </div>
<div> </div>
<div>The number of unemployed persons dropped sharply in the month of May, down by 26,800 to 714,600, taking the unemployment rate down from 5.6 per cent to 5.4 per cent. </div>
<div> </div>
<div>So that's the good news. </div>
<div> </div>
<div>The state making the most substantial inroads lately has been Victoria, with the number of unemployed persons down to 174,400 from 208,500 a year earlier.</div>
<div> </div>
<div>Very good news!</div>
<div> </div>
<div>The unemployment rate in Victoria has declined accordingly to 5.1 per cent, down from 6.1 per cent a year ago.</div>
<div> </div>
<div>So that's getting quite close to the 4.9 per cent of New South Wales. </div>
<div> </div>
<div>Like Sydney before it, Melbourne is enjoying the fruits of its construction boom.</div>
<div> </div>
<div>Some progress, then, but overall there are still more than 700,000 out of work, and there remains plenty of slack in the labour force nationally. </div>
<div> </div>
<div>A look at the trend chart for unemployed persons underscores this point.</div>
<div> </div>
<div>In October 2014 the two most populous states had a combined 442,900 unemployed persons, a figure that's since fallen by about 60,000 or 14 per cent. </div>
<div> </div>
<div class="separator"><img src="https://3.bp.blogspot.com/-wxFOA13nJc8/WyQxuec63KI/AAAAAAAAqkg/-i5Ua9cfvEAOpAUXxC42-sr0pzY3aOaDACLcBGAs/s640/A1.jpg" width="640" height="366" data-original-height="804" data-original-width="1400"></div>
<p> </p>
<div>Elsewhere, however, in aggregate there's been little meaningful progress. </div>
<div> </div>
<div>With regards to underemployment, the the trend rate declined to 8.5 per cent in May 2017, which is a bit below peak of 8.7 per cent seen in 2017. </div>
<div> </div>
<div>Meanwhile, the underutilisation rate also declined by 0.4 per cent to 13.9 per cent over the past year. </div>
<div> </div>
<div>Just about enough evidence here to suggest an ongoing improvement.</div>
<div> </div>
<div>PETE WARGENT is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.</div>
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Like Sydney before it, Melbourne is enjoying the fruits of its construction boom: Pete Wargent

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<div>The ABS released its residential property price indexes for the March 2017 quarter.</div>
<div> </div>
<div>Although these figures are retrospective, they are always instructive, and reflected tighter lending conditions this quarter.<br><br>The total value of the dwelling stock was a nick lower at $6.9 billion - albeit well up from $4.4 trillion in 2011 - putting the mean price of residential dwellings at $687,700, and leaving housing market equity of around $5.1 trillion or so.<br><br>At the national level there was a quarterly decline in prices of 0.7 per cent, now leaving prices just 2 per cent higher than a year earlier.<br><br><div><img src="https://3.bp.blogspot.com/-9R8EKvyr-OM/Wyj1MIgAlSI/AAAAAAAAqqs/5G67ClzQiVoeyNpa8vqZZzemSMEV9LrEACLcBGAs/s640/A4.jpg" width="640" height="366" data-original-height="799" data-original-width="1395"></div>
<br>The quarterly price decline was mainly accounted for by the most populous city, Sydney, with Melbourne also posting a moderate 0.6 per cent decline. </div>
<p> </p>
<div><img src="https://2.bp.blogspot.com/-_I8O3aTkJ5o/WyiF8ypih3I/AAAAAAAAqpo/R3vnm6-7XlATYOwm8AF8keBapidus9SHgCLcBGAs/s640/A1.jpg" width="640" height="366" data-original-height="802" data-original-width="1395"></div>
<p> </p>
<div>Zooming in on the New South Wales capital, from a year earlier attached dwelling prices in Sydney were still 0.4 per cent higher, but house prices were 0.8 per cent lower (though all dwelling types were below their respective June 2017 cyclical peaks).  </div>
<div> </div>
<div><img src="https://3.bp.blogspot.com/-wNnHFlyHk1U/WyiF8slwydI/AAAAAAAAqpk/_RjURGNUegYrdMBsqwgjfrbrq_qZ-6NYgCLcBGAs/s640/A2.jpg" width="640" height="352" data-original-height="803" data-original-width="1457"></div>
<p> </p>
<div>Over the year to March 2018 the strongest price growth was seen in Hobart at 14.1 per cent, and the weakest was seen in Darwin at negative 6.5 per cent.<br><br>There was moderate year-on-year price growth in Melbourne (6.2 per cent), Canberra (3.8 per cent), Adelaide (2.6 per cent), and two-speed Brisbane (1.6 per cent), while Perth looks (-1.5 per cent) looks to be bottoming out.<br><br>Finally, there was all the usual explosive commentary about crashing transaction volumes at unprecedented lows (and imploding dwelling completions), as there is each and every quarter.<br><br>But, of course, these numbers are preliminary, and as such they are always apparently crashing or at unprecedented lows - until they are revised up next quarter.</div>
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ABS suggests Perth property downturn looks looks to be bottoming out: Pete Wargent

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<div>EXPERT OBSERVATION</div>
<div> </div>
<div>The regulatory throttling of mortgage lending maintained its firm stranglehold in the first quarter of 2018, with interest-only lending remaining at just 15.7 per cent of new residential term loans by value (a far cry from 45.6 per cent at the September 2015 peak). </div>
<div> </div>
<div>Both the stock and flow of interest-only loans has been significantly reduced by the introduced macroprudential measures. </div>
<p> </p>
<div><a href="https://4.bp.blogspot.com/-2jv1gfRCvAw/Wysf2SDxvrI/AAAAAAAAqss/WcKMXyO_Hp0MOWLqTZC2PrTCLWw5XHb9ACLcBGAs/s1600/APRA1.jpg"><img src="https://4.bp.blogspot.com/-2jv1gfRCvAw/Wysf2SDxvrI/AAAAAAAAqss/WcKMXyO_Hp0MOWLqTZC2PrTCLWw5XHb9ACLcBGAs/s640/APRA1.jpg" width="640" height="370" data-original-height="798" data-original-width="1374"></a></div>
<p> </p>
<div>Tighter loan-to-value (LVR) ratios also continued to be applied in Q1, with just 6.8 per cent of new residential lending at LVRs of 90 per cent or greater in the March 2018 quarter. </div>
<div> </div>
<p> </p>
<div><a href="https://3.bp.blogspot.com/-7mEIZLUEhXo/Wysf2kwS39I/AAAAAAAAqsw/oNlM9WmxH6sZOhK4rQHu8m3clxqeyt0bgCLcBGAs/s1600/APRA3.jpg"><img src="https://3.bp.blogspot.com/-7mEIZLUEhXo/Wysf2kwS39I/AAAAAAAAqsw/oNlM9WmxH6sZOhK4rQHu8m3clxqeyt0bgCLcBGAs/s640/APRA3.jpg" width="640" height="370" data-original-height="797" data-original-width="1378"></a></div>
<p> </p>
<div>Loans approved outside serviceability were well down from the December 2017 quarter spike, but remained at an elevated level implying that tighter standards almost certainly continued to bite throughout the first half of 2018. </div>
<p> </p>
<div><a href="https://1.bp.blogspot.com/-TAISqpuzD5s/Wysf2uTdZ5I/AAAAAAAAqtA/m_X8X5T_vl82Rt4rcFuuj19tw9Z8pcYRACEwYBhgL/s1600/APRA2.jpg"><img src="https://1.bp.blogspot.com/-TAISqpuzD5s/Wysf2uTdZ5I/AAAAAAAAqtA/m_X8X5T_vl82Rt4rcFuuj19tw9Z8pcYRACEwYBhgL/s640/APRA2.jpg" width="640" height="372" data-original-height="792" data-original-width="1360"></a></div>
<div> </div>
<div> </div>
<div><em>PETE WARGENT is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.</em></div>
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Interest-only loans stay low: Pete Wargent

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<h3 class="post-title entry-title">
<a href="http://petewargent.blogspot.com.au/2017/12/record-high-immigration-to-sydney"></a><strong style="color: #333333; font-family: Tahoma, Helvetica, Arial, sans-serif; font-size: 12.16px;"><span style="text-decoration: underline;">Immigration ramps up</span></strong> </h3>
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<div>The natural increase in Australia's population slowed a bit over the 2017 financial year as the number of deaths increased. </div>
<div> </div>
<div>However net immigration from overseas boomed by +27 per cent from +193,000 to 245,500, so you can comprehensively chalk that one up as a good call for this blog page (a year ago much of the idle talk of was population growth dropping because of a slowing economy). </div>
<div> </div>
<div>Australia is the planet's sixth largest country so this isn't such a big deal in itself, but the concentration of the immigration will raise a few eyebrows, as we shall see below. </div>
<div> </div>
<div class="separator"><img src="https://2.bp.blogspot.com/-cXo6Ufv2gDQ/WjJTzVumIyI/AAAAAAAAnf4/BBlzAgtAwhAF_LC6OW8FhT3NgdFEhc8CwCEwYBhgL/s640/A3.jpg" width="640" height="386" data-original-height="827" data-original-width="1365"></div>
<div> </div>
<div>Over the financial year Australia's population grew by +388,100 or +1.6 per cent to 24.6 million by the end of June 2017. </div>
<br><div class="separator"><img src="https://4.bp.blogspot.com/-LZZuYdS5HSM/WjJT0FS0FDI/AAAAAAAAngA/m-EYw80q2zMkI46Laz-D1m9bnJ2KIuIqgCEwYBhgL/s640/A4.jpg" width="640" height="386" data-original-height="828" data-original-width="1370"></div>
<br>The Aussie population will pass the 25 million landmark in 2018.<br><br><strong><span style="text-decoration: underline;">The MEL-SYD magnet</span></strong><br><br><div>Net overseas migration into the two most populous states rose to the highest level on record. </div>
<div> </div>
<div>New South Wales (+98,600) and Victoria (+86,800) accounted for the great bulk of immigration, with new arrivals overwhelmingly clustering into the capital cities of Greater Sydney and Melbourne respectively. </div>
<div> </div>
<div>Immigration into Queensland is also picking up the pace, from a cyclical nadir of +18,300 over the year to September 2015 up to +31,100 in the 2017 financial year, with the trend pointing north as the economy improves. </div>
<br><div class="separator"><img src="https://3.bp.blogspot.com/-pl2VghDoCuo/WjJTza1LiDI/AAAAAAAAnf8/3UmliFCK3nMN_VUDh84b-0nWa6p-3s5UgCLcBGAs/s640/A1.jpg" width="640" height="378" data-original-height="826" data-original-width="1392"></div>
<div> </div>
<div>Just as significantly for Queensland, the state is now pulling Sydneysiders up and away from New South Wales. </div>
<div> </div>
<div>Net interstate migration to the Sunshine State hit a decade-high +5,050 in the June quarter, taking the rolling annual total up to +17,400, surpassing Victoria to notch the biggest draw of any state. </div>
<div> </div>
<div>This is positive news for Brisbane, while unlike the most populous states Queensland has other worthy growth hubs, including Gold Coast and the Sunshine Coast. </div>
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<div>South Australia lost -5,900 residents interstate, and Western Australia lost -11,700, although in each case the bottom appears to be in. </div>
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<br><span>The big migratory trend in 2018 will clearly be from New South Wales up to Queensland. </span><br><br><div><strong><span style="text-decoration: underline;">The wrap</span></strong></div>
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<div>Totting up the figures New South Wales (+121,800), Victoria (+144,400), and Queensland (+79,600) accounted for 89 per cent of population growth in the 2017 financial year. </div>
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<div>Victoria's population growth rate of +2.3 per cent exceeds the rate at which appropriate new accommodation can realistically be built, let alone the availability of new land supply. </div>
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<div>On the other hand population growth rate was considerably weaker than the national average in Western Australia (+21,400 or +0.8 per cent), South Australia (+10,500 or +0.6 per cent), Tasmania (+3,300 or +0.8 per cent), and the Northern Territory (+400 or +0.1 per cent). </div>
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<div>Last, but certainly not least, the Australian Capital Territory added +6,800 or +1.7 per cent to its population, which will help to fill up all those new apartments. </div>
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<span>PETE WARGENT is the co-founder of </span><a href="https://allenwargent.com/" target="_blank"><span class="s2">AllenWargent</span></a><span> property buyers (London, Sydney) and a best-selling author and </span><a href="https://petewargent.blogspot.com/" target="_blank"><span class="s2">blogger</span></a><span>.</span>
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Record high immigration to Sydney and Melbourne: Pete Wargent 

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<p><strong>EXPERT OBSERVER </strong></p>
<div><span>Permanent and long-term arrivals into Australia totalled 844,960 over the year to November, up 2 per cent from a year earlier, but just a notch lower over the past two months. </span></div>
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<div><span>Net of departures, total arrivals were around 297,000, implying population growth of around 380,000 or 1½ per cent after accounting for natural population growth (births minus deaths). </span></div>
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<div><span><strong>Asian century</strong><br><br><span>Tourism was still romping along until November, on the back of the Asian century.</span></span></div>
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<div><span>And short-term international education arrivals hit yet another record high at 619,100 over the year to November. </span></div>
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<div>Unfortunately, the raging bushfires will blast a $1 billion hole in the tourism figures, blowing yet another hole into the ailing Aussie economy.</div>
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<div>The growth in short-term arrivals over the year to November was driven by Victoria (up 6 per cent year-on-year) and Tasmania (up 8 per cent).</div>
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<div><span><span>There's been a fairly sharp drop in short-term arrivals from Hong Kong as the unrest and demonstrations continued. </span></span></div>
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<div><span><a href="https://www.propertyobserver.com.au/images/2020/1/20/a5.jpg" target="_blank">Click here</a> to enlarge: </span></div>
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<div><span>There's less tourism from Hong Kong, but plenty of capital is winding its way back to Australia.</span></div>
<p><em><span>PETE WARGENT</span> is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.</em></p>
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