&nbsp;

A local Australian has spent a Lower North Shore record $15.1 million at <a href="https://www.apartments.com.au/new-apartments/elevate-hume-place-crows-nest-25-hume-street-crows-nest-nsw-2065">Elevate Hume Place</a>, the new TOD above the recently opened Crows Nest Metro Station.

The buyer amalgamated a penthouse and sub-penthouse to create the triplex apartment that will have five bedrooms, five bathrooms, a private rooftop pool, expansive terrace, and panoramic views of Sydney Harbour and skyline. The building is being created by burgeoning developer Third.i, alongside joint venture partner Phoenix Property Investors.

The buyer was drawn to Elevate’s unrivalled connectivity, situated directly above the&nbsp;<a href="https://www.apartments.com.au/developments/crows-nest-nsw-2065">Crows Nest</a> Metro Station, and the vibrant lifestyle precinct that surrounds it. The Metro connects to the CBD in just seven minutes, and Chatswood in four.

[smartcode_project:default project_id=142550 project_image_fid=309367]

Designed by internationally acclaimed architects <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a>, Elevate draws inspiration from the ancient blue gum forests native to the area. The building is a Net Zero development, created in consultation with Indigenous communities and exceeding sustainability benchmarks. Interiors feature chevron-engineered timber flooring, natural stone benchtops, and premium Sub-Zero Wolf appliances, delivering timeless elegance and next-level comfort.

The exchange of the $15.1 million apartment, follows a recent $5 million sale, and over $30 million currently in expressions of interests. Interest in Elevate’s penthouse stock has surged, reflecting a strong appetite for ultra-luxury residences that combine design excellence with unmatched connectivity.

[smartcode_project:default project_id=142550 project_image_fid=309369]

“We’re seeing a significant uptick in interest from local and international buyers who are prioritising connectivity, sustainability, and lifestyle,” said Callum Billinghurst, Head of Sales at Third.i Group.&nbsp;

“These recent sales are a testament to the vision behind Elevate. It’s not just about luxury finishes or panoramic views, it’s about creating homes that are deeply connected to the city and the community. Buyers are responding to that. They want to live somewhere that offers more than just a postcode, they want culture, convenience, and long-term value. Elevate delivers all of that, and more.”

[smartcode_project:default project_id=142550 project_image_fid=297878]

As part of the Hume Place precinct, Elevate is transforming Crows Nest into Sydney’s most dynamic urban village. Elevate’s unique position directly above the metro, combined with its curated amenity offering, has made it a magnet for buyers seeking a future-proof investment and a vibrant urban lifestyle.

The next release at Elevate is expected later this year.

[smartcode_project_cta:default project_id=142550]

“We’re seeing a significant uptick in interest from local and international buyers who are prioritising connectivity, sustainability, and lifestyle,” said Callum Billinghurst, Head of Sales at Third.i Group


Joel Robinson

Third.i & PPI set Lower North Shore apartment record with $15.1m sale at Elevate Hume Place penthouse amalgamation

Sydney developer Deicorp is set to officially open its <a href="https://www.apartments.com.au/new-apartments/hills-showground-village-castle-hill-2-mandala-parade-castle-hill-nsw-2154">Showground Village</a> precinct in Castle Hill.

NSW Premier Chris Minns will attend the opening on Sunday August 31, alongside&nbsp;Minister for Planning and Public Spaces Paul Scully, The Hills Shire Council Mayor Dr Michelle Byrne, Landcom CEO Alex Wendler, and Deicorp Founder Fouad Deiri.

Located just moments from Hills Showground Metro Station, the centre spans 9,500 sqm across four levels and features 26 specialty retailers as well as a 1,400 sqm public plaza, creating a new community meeting point for shopping, dining, fitness, and everyday convenience.&nbsp;

Showground Village forms part of the Hills Showground Station Precinct, an urban renewal initiative led by Landcom and Sydney Metro that will provide for around 2,300 new jobs over the next 20 years and around 9,000 new homes.&nbsp;

Deicorp was recently approved for another new development next door to Showground Village.

The new five residential buildings in the East Showgrounds Precinct, will see another 873 dwellings delivered, as well as&nbsp;3,500 sqm of open public space in the form of landscaped courtyards, a public park and communal outdoor recreational space including a playground, barbeque area, and outdoor seating.

“This approval will allow us to start construction on a range of beautifully designed, conveniently located apartments and create another vibrant, walkable and well-connected community,” said&nbsp;<a href="https://www.apartments.com.au/developers/deicorp" target="">Deicorp</a>&nbsp;Founder Fouad Deiri.

“These new homes will provide their residents with a seamless connection to jobs and services along Metro North West, and the new&nbsp;<a href="https://www.apartments.com.au/new-apartments/hills-showground-village-castle-hill-2-mandala-parade-castle-hill" target="">Hills Showground Village</a>&nbsp;retail precinct currently under construction."

Deicorp has several thousand apartments in planning and under construction across Sydney, from Zetland and Five Dock to Crows Nest and Macquarie Park.

[smartcode_project_cta:default project_id=133881]

Deicorp, NSW Premier officially open Showground Village, new retail and hospitality hub in Castle Hill

ASX-listed developer Cedar Woods is progressing its plans for its Southbank arts precinct site.&nbsp;

The developer has filed plans, which are now with the&nbsp;Department of Transport and Planning, for a new 20-level tower at&nbsp;<a href="https://www.apartments.com.au/new-apartments/141-151-sturt-street-southbank-vic-3006">141–151 Sturt Street</a>, a 2,718 sqm block opposite the Habitat Filter sculpture.

The proposal seeks to demolish the two-level&nbsp;commercial building, including a small supermarket and medical tenancies, and create a new building with 180 apartments and a focus on an&nbsp;active public realm and arts integration.

&nbsp;

<img alt="Southbank site" data-entity-type="file" data-entity-uuid="76a72db6-91ef-43ae-827d-a9cfa72893d2" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Site.png?VersionId=DZgtB4K6BswVh0QtCs3iLjXaLp0CbcEb" />

&nbsp;

There will be a full mix of apartment configurations, including 28 studio apartments, 16 one-bedroom, 104 two-bedroom, and 32 three-bedroom units.

Retail, creative arts, and residential amenity functions are integrated across the lower levels. A food and drink tenancy is planned to front Dodds Street, while a retail tenancy fronting Sturt Street will be accessed via an elevated walkway. The first floor includes a substantial 734 sqm creative arts space, envisioned to support Melbourne’s growing cultural and digital industries.

Architecture firm <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> has put together the plans. In their&nbsp;Urban Design Report they highlighted the project’s ambition to embed itself within Southbank’s evolving cultural fabric.

A central feature of the design is a through-block link connecting Sturt and Dodds Streets, landscaped with native plantings and embedded with universal access ramps.

“The ramp has been thoughtfully integrated as the primary access point, ensuring universal accessibility for all users,” the report noted, with the link offering “a direct response to the urban planning scheme of creating more green spaces within our communities”.

<img alt="Southbank podium" data-entity-type="file" data-entity-uuid="4d24b1b2-d69c-4a11-a11d-ec6df432221c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/podium.png?VersionId=geWoJyZDmPSLODZ_.PNJ0LvpOmyyCdpo" />

The building’s podium form responds to the mandatory height limits along Dodds Street and maintains a fine-grain interface to adjoining developments. Above the podium, the tower is articulated with recessed balconies and a focus on views toward the CBD and surrounding arts institutions. A communal rooftop recreation deck and indoor lounge are positioned on level four, adjoining seven apartments and providing over 900 sqm of resident amenity space.

Vehicle access and loading will be provided via Dodds Street, with 155 resident car spaces located across two basement levels and the first three above-ground floors. Bicycle storage is more generous, with 226 spaces distributed across resident, staff and visitor needs.

Rothelowman describes the architecture as “humanist,” with ground-level interfaces designed to encourage social interaction and provide a dignified entry for both residents and passers-by. “All street interfaces are crafted to invite and nurture human connections,” the design report states. “The façade transitions to a human scale, providing an approachable and engaging streetscape”.

Cedar Woods, while well-known for its large communities it develops outside of Australia's capital cities, they have recently developed in Melbourne's inner-ring before. They are approaching completion at <a href="https://www.apartments.com.au/new-townhouses/88-leveson-north-melbourne-88-leveson-street-north-melbourne-vic-3051">88 Leveson</a>, just 15 townhouses in the heart of North Melbourne.

Cedar Woods progresses with new apartment plans in Southbank arts precinct

Brisbane developers Core Property Partners and Vector Property Australia has teamed up for Brisbane's newest apartment development.

The duo identified <a href="https://www.apartments.com.au/developments/east-brisbane-qld-4169">East Brisbane</a> as their preferred suburb, on the fringe of the Gabba Precinct, where they've just revealed BANKSII, 72 apartments opposite Raymond Park.

[smartcode_project:default project_id=136432 project_image_fid=5481]

The one-, two-, and three-bedroom apartments will sit in a glass-wrapped building that will also feature a rooftop with an&nbsp;infinity-edge pool, a BBQ area and alfresco dining spaces, sun lounges, and a sauna, as well as a resident-only gym and a ground-floor cafe.

Rhett Williams, Director of Vector Property Australia, said the project will lift the quality of the East Brisbane community and set a new benchmark.

"In Brisbane’s current property landscape, <a href="https://www.apartments.com.au/new-apartments/banksii-east-brisbane-169-wellington-road-east-brisbane-qld-4169">BANKSII</a> stands out through its emphasis on lifestyle-oriented living, connectivity and sophisticated design," Williams says.

[smartcode_project:default project_id=136432 project_image_fid=5479]

The 10-level building has been designed by MAS Architecture. Their designs were inspired by the native Banksia flower, with the architecture and interiors reflecting the organic symmetry of its namesake flora. MAS has interpreted this throughout the building’s curved form, façade detailing and interior palette.&nbsp;

The building’s flowing geometry and natural tones are complemented by large balconies and floor-to-ceiling glazing, maximising cross-breezes, daylight and views over the city, parklands and river.

“Having a strong narrative for a building helps us architecturally,” MAS noted. "We can choose colours that come off that species of flowers. The trunk and the trees and the flower elements all are now visible in our joinery on the inside and in our architectural finishes on the outside."

[smartcode_project:default project_id=136432 project_image_fid=5485]

Apartments will feature timber floors, soft porcelain tiles, brushed bronze fittings, and stone benchtops with warm veining.&nbsp;

Kitchens feature premium SMEG appliances and generous storage, while bathrooms have been designed as calming retreats with curved cabinetry and twin sinks in the master ensuites.

The building will feature a suite of rooftop and wellness amenities. Residents will have access to an infinity-edge pool, BBQ and alfresco dining areas, sun lounges and a rooftop sauna.&nbsp;

A residents-only gym will be located on the podium level, while a ground-floor café and landscaped laneway will further activate the site and improve neighbourhood connectivity.

[smartcode_project:default project_id=136432 project_image_fid=5488]

BANKSII will rise from a prime Wellington Road site, with the building oriented to overlook the adjacent Raymond Park and take in extensive city views. It is also on the doorstep of key&nbsp;lifestyle infrastructure, including the future Kangaroo Point Green Bridge, The Gabba stadium, and the planned Brisbane Live arena.&nbsp;

Public transport options, including ferry, bus and rail - including the future Cross River Rail Woolloongabba station - are all nearby, supporting a car-optional lifestyle just minutes from the CBD.

Williams said the team spent over a year searching for the ideal site before securing this location.

"We were attracted to <a href="https://www.apartments.com.au/developments/east-brisbane-qld-4169">East Brisbane</a> as it is a vibrant and growing community that offers a perfect balance of urban convenience and natural beauty with the parklands and river on our doorstep.”

The project is part of the broader Woolloongabba Games precinct, which is undergoing significant investment in the lead-up to the 2032 Brisbane Olympics. This urban renewal, coupled with infrastructure upgrades, is expected to enhance long-term liveability and capital growth in the area.

Given the wide max of configurations, BANKSII is expected to suit everyone from first home buyers and investors to families and downsizers.

[smartcode_project_cta:default project_id=136432]

BANKSII sales launch in booming East Brisbane apartment market

The Minns Labor Government will deliver Sydney’s first new heavy rail station in more than a decade – enabling up to 10,000 new homes by rezoning land around Woollahra and Edgecliff stations, right next to the CBD, to tackle the housing crisis and rebalance growth across the city.

Recent reports by the NSW Productivity Commission have warned that Sydney is losing twice as many young people as it is gaining, while also finding that Woollahra is the most feasible Local Government Area (LGA) in New South Wales to build new housing.

Despite this, housing approvals in Woollahra consistently lag well behind other LGAs, and the population has declined by 11 per cent over the past 50 years while Greater Sydney as a whole has grown by 74 per cent.

The new station that will be an eight-minute trip from Sydney CBD, will be located on the Eastern Suburbs train line in Woollahra, where a station build was started in the 1970s but never completed.

To enable the delivery of new homes the NSW Government will lead a rezoning of Woollahra and Edgecliff stations similar to other state led rezonings to allow additional homes to be built around the stations.

Affordable housing will also make up a proportion of development on the site with the final amount of affordable housing required, to be determined as part of the rezoning process.

The area surrounding the new station is within walking distance of major green and recreational space including Cooper, Trumper, Rushcutters Bay and Centennial Parks.

The Eastern Suburbs train line between Bondi Junction and Sydney CBD also has the lowest passenger usage rates during the AM peak of any line on the Sydney network, with only 43 per cent of operating capacity during the AM peak currently being utilised by passengers.

Sydney Water and Infrastructure NSW have confirmed there is capacity in the water and wastewater systems to accommodate the proposed 10,000 dwellings without major upgrades.

The rezoning is expected to take around two years and will further support the Government’s housing targets that rebalance the delivery of new homes around existing infrastructure.

&nbsp;

&nbsp;

Next stop Woollahra train station - delivering up to 10,000 new homes in the heart of Sydney

Price Correction

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EXPERT OBSERVER
Over the 2018-19 financial year the number of settled property sales fell substantially, down -17.2% from the previous year. Because of the significant difference in sales year-to-year when we are analysing the market performance, especially in terms of sales across price points, looking at the shifts in market share provides a much more accurate picture.
Over the 12 months to June 2019, 12.5% of all houses and 8.0% of units sold nationally transacted for at least $1 million. The share of million dollar house sales was down from 14.7% a year earlier and was also well down from its peak of 15.0% of all sales in March 2018. For units, the 8.0% share over the past year was lower than the 9.4% a year earlier. The fall in million dollar sales over the past year reflects the overall weaker housing market conditions and the fact that higher valued properties have typically recorded the greatest value falls.
<img class="align-center" src="https://www.corelogic.com.au/sites/default/files/inline-images/Annual%20Million%20%24%20Sales_National.PNG" alt="Annual Million $ Sales_National.PNG" width="576" height="186" data-entity-type="file" data-entity-uuid="29e13edb-5eec-47e0-97c6-b5b613674f3c" data-image-style="" data-responsive-image-style="wide" data-zoom-image-style="_as_uploaded" data-mfp-src="https://www.corelogic.com.au/sites/default/files/inline-images/Annual%20Million%20%24%20Sales_National.PNG">
 
Throughout the combined capital cities, 18.4% of all houses and 9.8% of all units sold over the 2018-19 financial year sold for at least $1 million. The share of million dollar house sales was down from 21.9% a year earlier as well as being below the peak of 22.3% of all sales in March 2018. The 9.8% of million dollar unit sales was down from 11.5% a year earlier and was the lowest share since October 2016.
<img class="align-center" src="https://www.corelogic.com.au/sites/default/files/inline-images/Annual%20Million%20%24%20Sales_Combined%20Capital%20Cities.PNG" alt="Annual Million $ Sales_Combined Capital Cities.PNG" width="577" height="185" data-entity-type="file" data-entity-uuid="c9e71fd5-5fad-4eeb-8176-907a038dc747" data-image-style="" data-responsive-image-style="wide" data-zoom-image-style="_as_uploaded" data-mfp-src="https://www.corelogic.com.au/sites/default/files/inline-images/Annual%20Million%20%24%20Sales_Combined%20Capital%20Cities.PNG">
 
Far fewer properties sell for at least $1 million in regional markets as opposed to capital cities. Over the 2018-19 financial year, 4.1% of all houses and 3.3% of all units sold in regional Australia transacted for at least $1 million. While the share of million dollar house sales was marginally lower over the year (down from 4.5%), the share of unit sales was marginally higher than the 3.2% a year earlier.
<img class="align-center" src="https://www.corelogic.com.au/sites/default/files/inline-images/Annual%20Million%20%24%20Sales_Combined%20Regional%20Markets.PNG" alt="Annual Million $ Sales_Combined Regional Markets.PNG" width="573" height="187" data-entity-type="file" data-entity-uuid="020089ea-48e7-4cf0-8947-e13a8ef1bdb7" data-image-style="" data-responsive-image-style="wide" data-zoom-image-style="_as_uploaded" data-mfp-src="https://www.corelogic.com.au/sites/default/files/inline-images/Annual%20Million%20%24%20Sales_Combined%20Regional%20Markets.PNG">
 
While a substantial volume of houses and units sold in Sydney are at least $1 million, the share has seen a steady fall over recent years as dwelling values have declined. Over the 2018-19 financial year, 30.2% of all house sales were at least $1 million which was down from 34.2% a year earlier and the smallest share since October 2014. For units, 18.9% of sales were at least a million dollars of the 2017-18 financial year compared to 16.4% over the latest financial year. The 16.4% of unit sales $1 million or greater was the smallest share since the 12 months to January 2016.
<img class="align-center" src="https://www.corelogic.com.au/sites/default/files/inline-images/Annual%20Million%20%24%20Sales_Sydney.PNG" alt="Annual Million $ Sales_Sydney.PNG" width="600" height="190" data-entity-type="file" data-entity-uuid="fde8b0f5-7cc3-45b1-ba38-6765cc33f8ea" data-image-style="" data-responsive-image-style="wide" data-zoom-image-style="_as_uploaded" data-mfp-src="https://www.corelogic.com.au/sites/default/files/inline-images/Annual%20Million%20%24%20Sales_Sydney.PNG">
 
Like Sydney, Melbourne has recorded a slump in million dollar sales over the past year as values have continued to fall. Over the 2017-18 financial year, 29.0% of all house sales and 7.8% of all unit sales were at least $1 million. Over the past financial year, the share of million dollar sales had reduced to 23.1% for houses and 6.5% for units. The larger falls across higher value housing markets and tighter credit conditions have clearly limited transactions at prices above $1 million.
<img class="align-center" src="https://www.corelogic.com.au/sites/default/files/inline-images/Annual%20Million%20%24%20Sales_Melbourne.PNG" alt="Annual Million $ Sales_Melbourne.PNG" width="598" height="188" data-entity-type="file" data-entity-uuid="9fc21a83-94ff-4cdf-9ef7-0c1fd7b939d1" data-image-style="" data-responsive-image-style="wide" data-zoom-image-style="_as_uploaded" data-mfp-src="https://www.corelogic.com.au/sites/default/files/inline-images/Annual%20Million%20%24%20Sales_Melbourne.PNG">
 
Over the 2018-19 financial year, 8.7% of all houses and 3.8% of all units sold in Brisbane transacted for at least $1 million. Brisbane values have fallen over the past year and as such there has been a slight fall in million dollar sales which were down from 8.8% and 4.0% respectively over the previous year. As the chart shows the fall in million dollar sales has been much more moderate than the decline in these sales across Sydney and Melbourne.
<img class="align-center" src="https://www.corelogic.com.au/sites/default/files/inline-images/Annual%20Million%20%24%20Sales_Brisbane.PNG" alt="Annual Million $ Sales_Brisbane.PNG" width="601" height="183" data-entity-type="file" data-entity-uuid="e765ec35-4e8c-453b-8599-bf579c566407" data-image-style="" data-responsive-image-style="wide" data-zoom-image-style="_as_uploaded" data-mfp-src="https://www.corelogic.com.au/sites/default/files/inline-images/Annual%20Million%20%24%20Sales_Brisbane.PNG">
 
5.9% of all houses and 1.4% of all units sold over the 2018-19 financial year in Adelaide, transacted for at least $1 million. The share of house sales of at least $1 million is currently at an historic high and has increased from 5.2% a year ago. The 1.4% of units sold for at least $1 million is unchanged from 12 months ago but the share has fallen slightly over recent months.
<img class="align-center" src="https://www.corelogic.com.au/sites/default/files/inline-images/Annual%20Million%20%24%20Sales_Adelaide.PNG" alt="Annual Million $ Sales_Adelaide.PNG" width="597" height="187" data-entity-type="file" data-entity-uuid="1818e06a-8eab-4a01-8e62-fe96f9f74b65" data-image-style="" data-responsive-image-style="wide" data-zoom-image-style="_as_uploaded" data-mfp-src="https://www.corelogic.com.au/sites/default/files/inline-images/Annual%20Million%20%24%20Sales_Adelaide.PNG">
 
Although the Perth housing market has seen a substantial decline in values since the middle of 2014, the share of million dollar sales has actually not fallen significantly. Over the 2018-19 financial year, 10.0% of all house sales and 4.1% of all unit sales were at least $1 million. The 10.0% of house sales was down from 10.6% a year earlier and the 4.1% of unit sales was up from 3.9% a year earlier.
<img class="align-center" src="https://www.corelogic.com.au/sites/default/files/inline-images/Annual%20Million%20%24%20Sales_Perth.PNG" alt="Annual Million $ Sales_Perth.PNG" width="609" height="187" data-entity-type="file" data-entity-uuid="897bcaf0-f09a-491f-80c9-91226731ab27" data-image-style="" data-responsive-image-style="wide" data-zoom-image-style="_as_uploaded" data-mfp-src="https://www.corelogic.com.au/sites/default/files/inline-images/Annual%20Million%20%24%20Sales_Perth.PNG">
 
Although dwelling values have continued to climb over the past year in Hobart, there has been weaker conditions at the top-end of the market resulting in the share of million dollar sales falling over recent months. Over the 12 months to June 2019, 3.9% of all houses sold in Hobart were at least $1 million which was higher than the 3.7% a year earlier but down from the recent peak of 4.1%. The share of units sold for at least $1 million has fallen from 3.0% at the end of the 2017-18 financial year to 2.4% at the end of the latest financial year.
<img class="align-center" src="https://www.corelogic.com.au/sites/default/files/inline-images/Annual%20Million%20%24%20Sales_Hobart.PNG" alt="Annual Million $ Sales_Hobart.PNG" width="622" height="205" data-entity-type="file" data-entity-uuid="2e707c02-72bc-4493-b895-00f421ef7aa0" data-image-style="" data-responsive-image-style="wide" data-zoom-image-style="_as_uploaded" data-mfp-src="https://www.corelogic.com.au/sites/default/files/inline-images/Annual%20Million%20%24%20Sales_Hobart.PNG">
 
The ongoing decline in Darwin dwelling values since 2014 has resulted in a much smaller share of house and unit sales occurring within the million dollar price point. At the end of the 2018-19 financial year, 2.4% of all house sales and 0.6% of all unit sales were at least $1 million. The share of million dollar house sales is down from 3.0% a year earlier and is at its lowest share since June 2013. The share of million dollar unit sales is unchanged over the year.
<img class="align-center" src="https://www.corelogic.com.au/sites/default/files/inline-images/Annual%20Million%20%24%20Sales_Darwin.PNG" alt="Annual Million $ Sales_Darwin.PNG" width="583" height="181" data-entity-type="file" data-entity-uuid="f5e8f398-e452-40de-9d22-88e067f09e7b" data-image-style="" data-responsive-image-style="wide" data-zoom-image-style="_as_uploaded" data-mfp-src="https://www.corelogic.com.au/sites/default/files/inline-images/Annual%20Million%20%24%20Sales_Darwin.PNG">
 
Although Canberra dwelling values continued to increase throughout the 2018-19 financial year, the share of million dollar sales has dropped over the year. The share of $1 million house sales has fallen from 12.3% a year ago to 11.5% over the current year. For units, the share of sales has fallen to 2.0% of all sales from 2.3% a year earlier.
<img class="align-center" src="https://www.corelogic.com.au/sites/default/files/inline-images/Annual%20Million%20%24%20Sales_Canberra.PNG" alt="Annual Million $ Sales_Canberra.PNG" width="601" height="194" data-entity-type="file" data-entity-uuid="1cab45de-0f45-42a4-85f4-2d0e371ea2a6" data-image-style="" data-responsive-image-style="wide" data-zoom-image-style="_as_uploaded" data-mfp-src="https://www.corelogic.com.au/sites/default/files/inline-images/Annual%20Million%20%24%20Sales_Canberra.PNG">
 
Over recent months we have started to see some stabilizing of housing market conditions. The data also shows that the largest improvement is occurring across the most expensive properties. Assuming this continues over the remainder of the current financial year the share of million dollar sales, particularly in Sydney and Melbourne, may increase over the coming year.
CAMERON KUSHER is the head of research for the Australian branch of CoreLogic.
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ckusher-ujnxiKuFQs

Million dollar sales take a dive over the financial year

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The national housing market is forecast to trough in the third quarter of 2019, according to Moody's Analytics Second-Quarter 2019 Housing Forecast Report.
A gradual recovery in values has been predicted following the end of the downturn.
The May CoreLogic Hedonic Home Value Index results show the national housing market continuing its correction, led by Sydney and Melbourne.
House values across the country have declined almost 11% from their peak in mid-2017.
Moody's Analytics expect Sydney's housing market to lead the way in the recovery in 2020.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/6/24/Moodys%20Housing%20Correction%20Forecast.jpg" alt="">
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"The correction in Sydney is forecast to have largely passed by 2020, but home value growth will be far from the lofty gains of recent years," Moody's noted.
"Housing values are forecast to rise modestly in 2020, with an average increase of 3.1% forecast for houses and 4% for apartments."
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Moody's have predicted a 7.8% national housing value decline in 2019, with prices to recover in 2020, rising 2.2%. They see a 4.7% increase across the country in 2021. 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/6/24/Moodys%20Housing%20Forecast.jpg" alt="">
"Support for the improvement is coming from the RBA cutting the cash rate, alongside expected improvement in credit availability from APRA proposing to ease serviceability requirements," Moody's said.
"A gradual improvement will be the path going forward, with softer macroeconomic conditions at home, including expectations of wage growth remaining subdued working to dampen a stronger recovery."
Moody's forecast improvement in Melbourne's housing market too in 2020, with the inner east and north east leading the recovery.
The housing market around the Brisbane area is likely to see either flat or mildly positive returns in the coming years.
There will be areas with a correction in 2019 according to Moody's with a particular weakness in South Brisbane.
Perth is expected to be hit hard over 2019, with house values likely to decline nearly seven percent. Moody's believe there will be a small recovery in 2020 as the local economy improves thanks to population growth.
Adelaide’s housing market will continue its stable run, with house values forecast to rise 0.4% in 2019 after a 1.9% gain in 2018.
Moody's suggest Hobart's booming housing market bull run is likely at the end. House values are forecast to rise 2.8% in 2019, followed by modest corrections in 2020 and 2021. 
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jrobinson-rf4aSBido9

Sydney to lead house price recovery in 2020: Moody's Analytics

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National capital city residential property prices fell a further 2.4 percent in the December quarter 2018, according to figures released by the ABS.
It follows a 1.5% national decline in the September quarter 2018, taking prices down 5.1% over the year.
The December quarter decline was driven by Sydney more so than Melbourne.
Melbourne's 2.4% loss was consistent with its losses in the September quarter (2.4%), however Sydney's decline increased sharply, jumping to 3.7% in the December quarter from 1.5% in the September quarter.
Sydney's total annual decline now stands at 7.8%, followed by Melbourne's 6.4% losses and then some way back to Darwin where prices are 3.5% down.
Click <a href="https://www.propertyobserver.com.au/images/2019/3/19/ABS-Dec.jpg" target="_blank">here to enlarge</a> the December quarter statistics.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/3/19/ABS-Dec.jpg" alt="">
Bruce Hockman, chief economist for the ABS, said Australia’s two largest cities continue to lead the fall in property prices.
"These falls follow a period of solid growth, where prices in Sydney rose 68 per cent and Melbourne rose 54 per cent, over the five years to December quarter 2017," Hockman said. "While property prices are falling in most capital cities, a tightening in credit supply and reduced demand from investors and owner occupiers have had a more pronounced effect on the larger property markets of Sydney and Melbourne."
Hobart continued its strong property market, with gains of 0.7 percent over the December quarter.
 
 
 
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National property prices decline a further 2.4% in December quarter: ABS

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The RBA held the cash rate firm at 1.5 percent at the March meeting, making it 28 consecutive meetings since the rates last moved.
There is growing expectation from economists, and pressure from housing markets, for the RBA to cut rates.
In February Westpac's Bill Evans was the first to <a href="/expert-insights/finance/westpac-now-expects-the-rba-to-cut-the-cash-rate-twice-bill-evans">forecast two rate cuts</a>, one in August and one in November.
He was joined earlier this month by <a href="/news/nab-now-predicting-two-cash-rate-cuts-in-2019-alan-oster">NAB's Alan Oster,</a> who said cuts may come sooner, in July, and November.
The RBA March chart pack has given the central bank little relief from the expected looming rate cut by commentators.
The RBA's biggest concern will be to growing gap between the declining house prices and housing debt.
The pair have continued to go in opposite directions, and as far as the RBA is concerned, the wrong direction, for well over a year.
Household continues to hit record highs month after month, with no sign of debt, nor the house price decline, slowing down.
Click here to enlarge.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/3/19/RBA0.jpg" alt="">
With house prices declining, home owners are cautious.
They're not wanting to spend money on unnecessary items until house prices have stopped declining.
Growth in consumption has been slow, but it is somewhat holding firm, unlike a households disposable income.
The average household's disposable income is declining toward levels not seen since half way through 2016.
Click here to enlarge.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/3/19/RBA1.jpg" alt="">
Home loan approvals are continuing to decline across the board.
When house prices started declining and investors were hit with higher home loan rates, first home buyers were back in the driving seat.
But due to the continued declines, first home buyers are in no hurry to enter the market just yet.
Back in late 2018 Finder's RBA survey suggested tightened lending could <a href="/expert-insights/finance/tightening-lending-practices-could-negatively-effect-economy-finders-rba-survey">affect the economy negatively</a>.
However in February the RBA stressed that the tightening of lending <a href="/news/tightening-in-lending-standards-not-the-cause-of-housing-credit-growth-decline-rba">was not the cause</a> for the house price falls.
Click here to enlarge.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/3/19/RBA3.jpg" alt="">
To see the full chart pack <a href="https://www.rba.gov.au/chart-pack/" target="_blank">click here</a>.
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Little relief in housing finance could trigger rate cuts: RBA March chart pack

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September marked the 12th month of the national dwelling value decline, according to CoreLogic's national hedonic home value index.
Values dropped 0.5 percent over the month, with values tracking lower across five of the eight capital cities.
Five of the seven 'rest of state' regions recorded a fall in values over the month.
Since the national index peaked 12 months ago, dwelling values have fallen by 2.7 percent.
Click here <a href="https://www.propertyobserver.com.au/images/2018/10/2/Index-Sept.jpg" target="_blank">to enlarge.</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/10/2/Index-Sept.jpg" alt="">
Melbourne's dwelling values dropped the most out of any capital city. They dropped 0.9 percent, which in turn has made the Victorian capital the worst performer over the quarter.
Sydney's decline continued with a 0.6 percent decline over September, the same as Perth. It is now 6.1 percent down over the year.
Tim Lawless, head of research at CoreLogic, called Sydney and Melbourne the 'primary drag.
Click here <a href="https://www.propertyobserver.com.au/images/2018/10/2/annual-change.jpg" target="_blank">to enlarge.</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/10/2/annual-change.jpg" alt="">
“While the housing market downturn is well entrenched across Darwin and Perth where dwelling values remain 22.1% and 13.2% lower relative to their 2014 peak, Sydney and Melbourne are now the primary drag on the national housing market performance," Lawless said.
“We’ve seen Sydney dwelling values drop 6.1% over the past twelve months and Melbourne values are 3.4% lower. Not only are these amongst the largest annual falls across the capital cities, but considering Sydney and Melbourne comprise approximately 60% of the national value of housing, the weak conditions in these cities have a substantial drag down effect on the overall national housing market performance.”
The current rate of decline is slower relative to the previous housing market downturn (Jun 2010 to Feb 2012) when national dwelling values fell by three percent over the first twelve months, declining 6.5 percent from peak to trough.
 
 
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Melbourne values suffer as national price correction now year long: CoreLogic

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EXPERT OBSERVATION
Australia's housing market continues to correct. The CoreLogic home value index, covering the eight major capital cities, dipped 0.3% in June marking the ninth successive monthly decline. Prices nationally are down 1.6%yr and 2.2% from the peak in Sep last year.
The correction remains both relatively shallow and narrowly-based, concentrated in the previously strong Sydney and Melbourne markets. These two markets have now seen no net gain in prices since late 2016 and mid-2017 respectively. The Perth market is also seeing a price correction although this has been ongoing for the best part of five years.
For the June month, unit prices showed a slightly milder fall than houses (–0.2% vs –0.3%) although annual growth for units remains positive and is significantly outperforming price growth for houses (+0.4%yr vs –2.2%yr for houses).
Click here <a href="https://www.propertyobserver.com.au/images/2018/7/3/value-index.jpg" target="_blank">to enlarge.</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/7/3/value-index.jpg" alt="">
Perth recorded the biggest price decline in the June month, down –0.5%mth, –2.1%yr with the city's unit market showing a renewed price contraction. Perth unit prices are back at their 2006 levels and have not kept pace with inflation since mid-2003.
Amongst the major eastern capitals, Melbourne was again a touch weaker, prices falling –0.4%mth vs –0.3%mth in Sydney, although prices are still up a touch (+1%mth) on a year ago compared to a 4.5% decline in Sydney. Brisbane and Adelaide continue to see a steadier performance with prices ticking up slightly in the month and up 1.1%yr. The detail suggests the Brisbane unit market is on a firmer footing.
Price performances continue to vary widely across the smaller capitals, Hobart's boom possibly cooling a touch but still showing double digit annual growth (+12.7%yr), Canberra subdued (+2.3%yr) and Darwin showing few signs of pulling out of its steep correction (–7.7%yr). Performances in regional areas have also varied but have been slightly better overall (Aus ex capital city prices flat in the month but up +2.2%yr).
All tiers recorded price slippage in the June month although declines remains larger for the 'top 25%' of properties by value down –0.5%mth, –3.8%yr compared to the 'middle 50% down –0.2%mth, +0.8%yr and the 'bottom 25%' down –0.1%mth, +1.3%yr.
Auction clearance rates weakened notably through May-June, suggesting an additional drag from tightening loan criteria and longer approval processing times. Buyer sentiment has lifted off last year's lows but the change in credit conditions looks to have overshadowed any positives from the marginal improvement in affordability. Any stabilisation still looks to be a long way off.
Matthew Hassan is senior economist with <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>.
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Correction continues in Australian dwelling prices: Matthew Hassan

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The Reserve Bank of Australia governor Philip Lowe has suggested the current decline in property prices was "manageable,."
Australia had gone through "plenty of periods" in the last two decades where house prices have declined.
"That's what happens in the housing market – we have these big run-ups, prices stabilise, sometimes they might fall, stabilise and then they'll rise again.
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<div class="cq-article-content-media section"> "We are going through one of those events at the moment, particularly in Sydney and Melbourne."</div>
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<div class="related-quotes section">The governor's outlook for property came in questions after delivering a speech yesterday.</div>
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“We are watching it carefully,” Dr Lowe told an Australian Industry Group lunch in Melbourne yesterday.
“At the moment it is manageable,” he added. “We had many, many years where we had credit growth rising faster than incomes.”
Dr Lowe said the Australian housing market was unlikely to face the same fate as the US housing market during the global ­financial crisis.
“Lending standards have been tightened quite a lot in the last four or five years,” Dr Lowe said.
“There has not been large extension of credit to people who shouldn’t have got it. It’s a very ­different situation in Australia (compared to the US). I don’t think it’s a fair comparison.
"We shouldn’t fret just because house prices aren’t rising at the same rate they used to.
“Houses in Sydney and Melbourne are still up 40 per cent compared to where they were at the start of 2014. You’ve got to have a longer term perspective.”
"As long as it's not a very large decline – it's manageable," Dr Lowe said.
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Dr Lowe said Australians shouldn't necessarily expect house prices to continue rising at the rate they did recently, or worry if they come down "for a period".
"I think this is manageable. Remember, it wasn't that long ago that people were worrying about housing affordability. That was the number one political issue two years ago – house prices were rising too quickly."
"There's a lot of media coverage of house prices going down but I think you've got to have a longer term perspective."
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j.ballantyne1990-6AQqhLzZaK

Don't fret: RBA governor says property price falls were likely "manageable"

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Morgan Stanley, which does not expect cash rates to rise until next year, forecasts growth in the residential property market are at the worst position in three decades.
Analysis by the investment bank Morgan Stanley says credits, regulatory, economic and supply issues are combining to weaken demand after six years of growth and booming prices in major cities.
It warns weakness in price as tightening credit supply pushes economic indicators into negative territory.
"Risks are skewed to the downside," the report concludes.
Analysis conducted by the bank indicates house prices could fall by as much as 6% in annual terms.
<img src="https://edge.alluremedia.com.au/uploads/businessinsider/2018/04/UBS-housing-1.jpg" alt="">
"Conditions for housing for the remainder of 2018 continue to look challenging with further regulatory tightening of credit, an increasing stock of properties to be settled, and continued uncertainty on government policy for housing as the election looms."
Morgan Stanley said its indicators covering credit supply, expectations, housing accessibility, mortgage serviceability, rental conditions and demand/supply impact were at 30-year lows.
"Higher compliance with responsible lending guidelines including serviceability and limit assessment will mean lower capacity," the report states.
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Morgan Stanley warns of weakness in property prices

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Sydney house prices stand a good chance of posting growth in 2018, property research group SQM Research managing director Louis Christopher anticipates.
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Christopher told the firm's annual conference in Sydney he was sticking to his forecast of a 4 percent to 8 per cent rise for Sydney and 7 percent to 12 per cent growth for Melbourne.
"APRA will loosen the market again because they are under instruction not to crash the market," Christopher said, according to The Australian Financial Review.
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<div>"We think APRA will lift the credit growth limit limit, if that does occur, we think it will stimulate the investor market."</div>
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<div>"What the banks are doing is they have been lowering interest rates for property investment...the gap between owner-occupier and investor loans has now narrowed."</div>
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<div>SQM suggest in a worse case scenario - should investors not return - Sydney's house prices would fall only by about 1 per cent, buoyed by steady population growth.</div>
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"I think the reality would be that the first quarter will be line-balled whether prices in Sydney and Melbourne have fallen or not.
"If they fall, it won't be more than 1 per cent," Mr Christopher said.
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<div>"It's very hard to be bearish when you see strong population growth and low unemployment, unless we see a major credit default occur."</div>
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Melbourne has a greater chance of a more severe downturn than Sydney, if a large correction happens.
"In absolute dollars, Melbourne is cheaper than Sydney, but compared to incomes Melbourne is more expensive and more susceptible to a downturn," Mr Christopher said.
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