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

Joel Robinson

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

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

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

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

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

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

Ausdev introduces boutique Parkdrive Apartments to Chermside's growing centre

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

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

Price Decline

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Perth values dropped 4.7 percent over the year, led by its decline in the unit market.
Unit values declined a further one percent in December, bringing their total decline over 2018 to 6.5 percent.
House values, which also saw a one percent drop over the month, dropped 4.3 percent, bringing the median house price values to $431,000.
Perth's median unit value sits at $370,000.
Click here <a href="https://www.propertyobserver.com.au/images/2019/1/2/dwell1.jpg" target="_blank">to enlarge</a>.
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Tim Lawless, the heat of research at CoreLogic, noted the reprisal in Perth’s rate of decline was a key factor in the 2018 property landscape.
"Perth values are back to levels last seen in March 2009," he noted.
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"Although Sydney and Melbourne recorded the weakest conditions, the peak to current declines are much less severe relative to Perth and Darwin where values have been falling since mid-2014.
"The downturn has been running much longer in Perth and Darwin, resulting in cumulative falls of 15.6 percent and 24.5 percent respectively."
Lawless noted Perth was among the capitals with the largest yield improvements
Rents in Perth have been consistently lifting from their low base through the year, up 2 percent over the year while dwelling values were down 4.7%.
"The net result has been a 2 basis points rise in Perth rental yields," he said.
Click here <a href="https://www.propertyobserver.com.au/images/2019/1/2/Cl-Jan2full.jpg" target="_blank">to enlarge</a>.
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Perth property values fall in 2018 back to 2009 levels: CoreLogic

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The number of people intending to retire in the next 12 months is estimated at 426,000, a 30% increase on the level seen in 2008 when it was 328,000, according to Roy Morgan Research.
Men currently represent 220,000 intending retirees and women 206,000, the research found. 
Norman Morris, industry communications director at Roy Morgan, said additional pressures currently on retirement decisions are the declining real estate and stock market values which have the potential to delay retirement and encourage people to keep their jobs longer.
Morris suggests there will be more pressure on government funding with increasing financial pressures.
“The average level of savings and superannuation for those intending to retire in the next 12 months is well below what is required to be able to lead what the Association of Superannuation Funds of Australia (ASFA) describes as a comfortable lifestyle," Morris said.
"This will put more pressure on government funding for some time yet unless there are changes to eligibility rules, taxation or superannuation regulations.
ASFA estimates that an individual would need $545k and a couple $640k for a ‘comfortable lifestyle’.
Currently the average gross wealth of intending retirees is $331,000, up from $237,000 (40%) since 2008.
Click here <a href="https://meltwater-apps-production.s3.amazonaws.com/uploads/images/57312c304f003481ed1f1231/blobid4_1545011469884.png" target="_blank">to enlarge</a>.
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“Intending retirees who own or are paying off their home have a major potential source of retirement funding, and with its tax exempt status, they have a considerable advantage over renters, even if values decline," Morris added.
"To include the value of homes in retirement funding decisions is likely to take a major mind shift for many as the home is generally regarded as being sacrosanct and as such not to be involved in retirement funding.
A major problem facing the Australian government and individuals is how to fund the retirement of an ageing population. 
Up to now, superannuation has been playing an increasing role in retirement funding and currently represents 69% of the gross wealth of intending retirees, up from 53% in 2008, according to Roy Morgan.
Owner occupiers have a much higher potential source of retirement funding than renters. The average value of their homes has increased by 58% over the last ten years compared to only 37% for other investments.
 
 
 
 
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Over 400,000 Australians to delay retirement due to property market and share slump

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The RBA's minutes for the December cash rate meeting have noted demand for off the plan apartment had declined significantly since mid-2017.
The RBA also suggested that liaison with developers indicated that demand for new detached housing in eastern Australia had eased over the previous year or so and some developers had reported that this decline in demand had become more pronounced.
"Given the substantial amount of work outstanding and recent data on dwelling approvals, dwelling investment was expected to remain around this level for at least the following year or so before moderating," it noted.
They said that dwelling investment has continued around its recent high level in the September quarter, and given the substantial amount of work outstanding on dwelling approvals, dwelling investment was expected to remain around this level for at least the following year or so before moderating.
Again Sydney and Melbourne were the main housing localities for the eastern capital decline. 
"Members observed that housing prices had fallen across all price segments in Sydney," the minutes noted, adding house prices had fallen by around nine percent since September 2017 to be around their September 2016 levels.
They said Melbourne levels have dropped back to what they were around March 2017, having seen a decline of just under six percent since their November 2017 peak.
"Auction clearance rates and indicators of private-treaty activity had also declined a little further in both cities," the RBA also added.
Despite the property market decline, the RBA found that, having liaised with retailers, that underlying trading conditions had been stable.
Surveys suggested that households' views about their financial situation had remained around average.
For the full RBA minutes <a href="/expert-insights/finance/downsize-risks-acknowledged-in-december-2019-minutes-of-reserve-bank-board">click here</a>.
 
 
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RBA notes developers report demand for off-the-plan apartments has declined significantly: December meeting minutes

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House prices have seen the largest decrease since December 2011, according to the latest research from the Real Estate Institute of Australia.
REIA Real Estate Market Facts for the September quarter 2018 shows weighted average median prices fell by 1.6 per cent for houses, the most in almost seven years and by 0.8 per cent for other dwellings, their largest decline in 12 months. 
REIA President Malcolm Gunning said the weighted average median price for houses for the eight capital cities decreased to $751,411 over the quarter, with prices decreasing in all capital cities except for Brisbane and Adelaide and remaining stable in Melbourne.  “The weighted average median price for other dwellings decreased to $587,959 over the quarter, with prices decreasing in all capital cities except for Melbourne and Canberra," Gunning said.
"Hobart had the largest fall in house prices and Darwin had the largest fall in other dwellings. Hobart has the lowest median price for houses at $475,000 and Adelaide the lowest median price for other dwellings at $344,000. 
“Over the quarter, the median rent for three-bedroom houses increased in Melbourne and Hobart, remained steady in Sydney, Brisbane, Adelaide, Perth and Canberra. Darwin was the only capital where the median rent for three-bedroom houses declined.  Gunning said the median rent for two-bedroom other dwellings increased in Melbourne, Brisbane and Adelaide, remained steady in Sydney, Perth and Canberra and, decreased in Hobart and Darwin. Melbourne had the largest increase while Hobart had the largest decrease. “The weighted average vacancy rate for the eight capital cities increased to 2.6 per cent during the September quarter indicating a slight easing of the rental market.  “The markets of Sydney, Melbourne, Brisbane, Canberra and Hobart have vacancy rates below the 3.0 per cent benchmark indicating a strong demand for rental accommodation in these capital cities.  
“Reflecting the squeeze on loan approvals, over the past 12 months, loan numbers have decreased by 11.9 per cent across the country with loans to first home buyers decreasing by 3.7 per cent. Gunning said the size of loans has also fallen with the average loan across Australia dropping by 1.8 per cent, the largest quarterly decrease since March 2017.  “Loans to first home owners are also reducing in size. Up until a year ago the average loan to those entering the market was above 90 per cent of the rate of non first home buyers. Since June 2017, this rate has decreased to 80 to 85 per cent," Mr Gunning concluded.
 
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House price drop largest in seven years: REIA 

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Sydney and Melbourne's dwelling decline continued over October, according to the latest CoreLogic figures.
The decline in dwelling values in the two major capital was led by the housing markets.
Melbourne's house values declined more than any capital city with a one percent hit over October, takings its annual house value decline to 6.3 percent.
Sydney's house values declined 0.7 percent over the month, with their annual decline moving to 8.4 percent.
Click here <a href="https://www.propertyobserver.com.au/images/2018/11/1/Nov-CL.jpg" target="_blank">to enlarge.</a>
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It's a consistent slow down now for Sydney and Melbourne houses.
Last month (September below) saw Melbourne again as the leading capital city in house price declines, down one percent, with Sydney down 0.8 percent.
Click here <a href="https://www.propertyobserver.com.au/images/2018/11/1/Oct-CL.jpg" target="_blank">to enlarge.</a>
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Sydney's median value for houses is now approaching the $950,000 mark, down $70,000 over the last six months from a median over $1.026 million over April.
CoreLogic head of research Tim Lawless said that the declines were concentrated within the largest capitals, while regional dwelling values edged 0.4% higher.
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“At a macro level, the latest trends are virtually the opposite of what we have become used to over the past five or so years," Lawless said.
"Regional areas are now outperforming the capitals and units are outperforming houses.
"Also the most expensive properties are now showing weaker conditions than the more affordable ones.”
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Sydney house values down 8.4 percent annually with Melbourne closing the gap

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Melbourne's house values have started to decline, according to valuation firm Herron Todd White (HTW).
HTW's September Property Clock had houses in the Victorian capital at the peak of the market.
They've joined the now underperforming Central Coast, South East NSW and Gold Coast, where, after a successful year, have been declining for the last few months.
Illawarra and Sydney remain pegged as declining markets.
<a href="https://www.propertyobserver.com.au/images/2018/10/9/clock-oct.jpg" target="_blank">Click here 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/2018/10/9/clock-oct.jpg" alt="">
The only other moving markets were in rural areas.
Houses in Emerald, in the Central Highlands region of Queensland, are starting to recover, along with a number of Queensland localities.
Albury, in Southern New South Wales, is seeing its house values begin to rise, while South West WA has bottomed out.
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Melbourne house prices starting to decline: HTW Property Clock

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Financial commentator David Koch says the Australian property market could start to look ugly over the next six months, however has suggested there's no need to panic and patience is needed.
"Like all investment classes, property moves in a cycle: up and down," Koch write in The Telegraph.
He said the cycle at the moment is definitely down, and it's been coming for quite a while.
"The signs have all been there: a massive building boom, a regulatory crackdown on foreign buyers, and banks tightening lending criteria," Koch said.
"All of these changes came off the back of an eight-year boom in property values along Australia’s east coast which, in some areas of Sydney, saw prices rise 70 per cent in five years.
"A year ago, at the peak of the market, there was general hysteria about home affordability and how first-home buyers were being forced out of the market because of crazy prices.
"Now, the market is rebalancing and affordability is improving in a controlled manner. It’s a good thing."
Koch said that instead of welcoming the change in cycle, the hysteria is now one of pending doom from a major property crash.
He is the latest to criticise the recent 60 Minutes property segment Bricks and Slaughter, which sensationalized the property market downturn.
Koch said that instead of welcoming the change in cycle, the hysteria is now one of pending doom from a major property crash. 
First analyst Martin North said 60 Minutes chose his least likely scenario of a market crash on the show, then SQM Research managing director Louis Christopher said he shot around 45 minutes worth of footage, in which only a minute was used.
John McGrath then called the episode "misleading and problematic."
Koch said to contemplate a cataclysmic fall of 40 per cent is just crazy, suggesting the Australian economy would need to be dragged into a global economic recession triggered by a US/China trade war.
He said unemployment would have to soar, immigration numbers would have to half and housing construction would have to continue at record levels.
Last month every capital city, expect Canberra, Adelaide and Darwin, saw its property values decline. 
Melbourne was hit the hardest, seeing a 0.9 percent decline over the month of September to bring its dwelling values down 2.4 percent over the quarter. 
Koch said the most at risk are the property owners who stretched themselves to make a purchase in the last two years.
"With the Spring selling season now underway, it is a vastly different environment than a year ago," he said.
"It has definitely turned into a buyers’ market while recent homeowners need to be careful these falling market values don’t put them on their financier’s watchlist."
 
 
 
 
 
 
 
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David Koch fires property market warning, but says there's no need to panic

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Housing prices could fall 10 percent as banks crimp riskier lending and the ALP plans to limit negative gearing tax breaks, warns UBS.
The global financial services firm has suggested the number of home loans could drop 30 percent due to credit tightening.
They said the economy could be set for a record long house price downturn.
"We expect further credit tightening, and the RBA’s lack of willingness to cut rates this time, to see the longest house price downturn in decades," the bank advised.
UBS have suggested the risks are now "tilted to the downside", having previously predicted the value of home loans written could drop 20 percent and housing prices could fall 5 percent.
They now expect home loan falls of up to 30 per cent and price drops of up to 10 per cent.
“Positively, the economy and labour market remain solid for now,” UBS noted.
They said borrowing capacity could reduce by around $100,000 for many households with new comprehensive credit reporting rules from mid next year.
Credit card limits and other debts could be taken into account.
National dwelling price to income ratio is near a record high of about 6.5 times. It's around nine times in Sydney and eight in Melbourne. 
Researchers George Tharenou, Carlos Cacho and Jim Xu said the federal opposition’s plan to limit negative gearing tax concessions for future purchases to new housing and halve the capital gains tax concession to 25 per cent.
Moody's recently suggested more borrowers will fall behind on their home loans in 2019.
 
 
 
 
 
 
 
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Housing prices could fall 10 percent warns UBS

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Billionaire apartment developer Harry Triguboff has reaffirmed prices in his new projects had dropped about 15 per cent in the past year.
The Meriton founder says slow wage growth was adding to the drag on the weakening housing market.
“Buyers still say they can’t ­afford it,” Mr Triguboff told The Australian.
“Wages here have to be higher.”
An average Chinese buyer can afford a unit in Sydney, but an Australian cannot, despite the falling prices, said Mr Triguboff.
He has previously suggested there is no bust coming when he initially signalled mid-year that prices had slumped.
Despite the weakening, Meriton’s two-bedroom unit prices hover around $1 million.
Triguboff said the average Mascot two bedders was about $1.1 million while at Pagewood it was $950,000.
Stagnant wages were "worsening" the conditions, Mr Triguboff said.
“Nobody qualifies for loans.”
Last October Harry Triguboff advised he'd been cutting prices by five per cent and covering the additional stamp duty costs for buyers of its apartments over the past year.
Triguboff says its had cost about 10 per cent of Meriton's $1.2 billion turnover.
"It may be too early to say," Mr Triguboff told The Australian Financial Review. "But if you take a turnover of $1.2 billion, then you take 10 per cent, it will cost $120 million."
Triguboff said a lot of Chinese buyers lost their <a href="/news/as-prices-fall-15-harry-triguboff-confirms-chinese-apartment-buyers-lost-their-10-percent-deposits">10 percent deposits last year.</a>
 
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Harry Triguboff reaffirms 15 percent apartment price decline

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EXPERT OBSERVATION 
Australian capital city dwelling prices fell for the seventh month in a row in May, with a fall of -0.2% which left prices down -1.1% from a year ago.
Sydney dwelling prices fell another 0.2% and have now fallen 4.5% from their August 2017 high, Melbourne prices fell another 0.5% and are down 1.6% from their November high.
 
Late last year Oliver predicted prices would drop between five and 10 percent.
Perth (-0.1%), Darwin (-0.2%) and Canberra (-0.1%) fell but Brisbane and Adelaide saw modest gains and Hobart remains very strong with prices up 0.8% in May or 12.7% year on year.
 
<img class="CToWUd a6T" src="https://mail.google.com/mail/u/0/?ui=2&amp;ik=b3e74386fa&amp;view=fimg&amp;th=163b8edf9574d7a0&amp;attid=0.4&amp;disp=emb&amp;attbid=ANGjdJ8yEFQwzoDUvcePcBG9z2954F0oQ74JXqS55cFGGqOXdCdvwdT1N5rNBYNayye8itcVkfOuurYBuLFnUn8Lqq4XyH2z8iIUzVkUo38NBM9xjM2WdQMrOTiAf_Q&amp;sz=w998-h650&amp;ats=1527816381594&amp;rm=163b8edf9574d7a0&amp;zw&amp;atsh=1" width="499" height="325">
Source: CoreLogic, AMP Capital 
APRA’s earlier tightening in lending standards for investors and interest only borrowers is clearly continuing to impact and along with poor affordability, rising supply, falling price growth expectations and the end of FOMO (fear of missing out) are pushing prices down in cities which have seen strong gains over the last few years, ie Sydney and Melbourne.
The latest round of tightening bank lending standards around borrower’s income and expenses is adding to this particularly in the very high home price to income cities of Sydney and Melbourne.
We expect prices in Sydney and Melbourne to fall another 4% or so this year, another 5% next year and to still be falling in 2020.
 
<img class="CToWUd a6T" src="https://mail.google.com/mail/u/0/?ui=2&amp;ik=b3e74386fa&amp;view=fimg&amp;th=163b8edf9574d7a0&amp;attid=0.5&amp;disp=emb&amp;attbid=ANGjdJ8dS9IyUYufyKljW7lgu1UCvwkNPXszTWBuHbF_xsRSAqdb5_oohOcZFAOy5cXgzlwEqOL0dDVgCFbKL2bmF9zbSsLxfF1eBgvd-pC1psmY1FEXwgg7B8tzHSA&amp;sz=w980-h636&amp;ats=1527816381594&amp;rm=163b8edf9574d7a0&amp;zw&amp;atsh=1" width="490" height="318">
Source: CoreLogic, AMP Capital
However, having not had the same boom over the last five or six years other capital cities are likely to perform better. Perth and Darwin look to be at or close to bottoming, Adelaide, Brisbane and Canberra are likely to see moderate growth and the boom in Hobart is likely to continue for a while yet.
Similarly home prices in regional centres (+0.2%mom/+2.2%yoy) are likely to hold up better with continuing modest growth as generally speaking they haven’t had the same boom as Sydney and Melbourne and so offer much better value and much higher rental yields. The average gross rental yield for regional areas is 4.9% compared to just 3.4% in the capital cities.
Capital city unit prices have been holding up better than home prices but may be starting to come under more pressure – they fell by 0.3% in May – as more supply comes on. The residential crane count may have peaked in Sydney and Melbourne but its still high meaning that there is still a huge amount of units to hit these two markets.
<img class="CToWUd a6T" src="https://mail.google.com/mail/u/0/?ui=2&amp;ik=b3e74386fa&amp;view=fimg&amp;th=163b8edf9574d7a0&amp;attid=0.6&amp;disp=emb&amp;attbid=ANGjdJ8xojTc_jnDT0AYF0qB8mZukTX8SEif1ZjQ-ZjgOFTUoWNAaNzGE2jfxjs5z8B6NjDsrcmuEkEdh5beT_8Ls0XjxR6hq6iu1fVzbiz59V_FDKrm0rymXzD-Dfk&amp;sz=w1048-h636&amp;ats=1527816381594&amp;rm=163b8edf9574d7a0&amp;zw&amp;atsh=1" width="524" height="318">
Source:  Rider Levett Bucknall Crane Index, AMP Capital 
Overall, Sydney and Melbourne are likely to see a top to bottom fall of around 15% spread out to 2020, but for national average prices the top to bottom fall is likely to be around 5%. A crash landing is unlikely in the absence of much higher interest rates or unemployment.
Implications for interest rates
The continuing weakness in home prices in Sydney and Melbourne will depress consumer spending as the wealth effect goes in reverse. It’s consistent with our view that the RBA will leave rates on hold out to 2020. Home price weakness is at levels where the RBA started cutting rates in 2008 and 2011, so while it’s not our base case we can’t rule out the next move in rates being a cut rather than a hike.
<a href="https://www.propertyobserver.com.au/https://plus.google.com/110172465327488162875?rel=author">SHANE OLIVER</a> is head of investment strategy and economics and chief economist at <a href="https://www.ampcapital.com.au/home">AMP Capital</a> and is responsible for AMP Capital's diversified investment funds.
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