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

Joel Robinson

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

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

First look: Aqualand pushes ahead with Chatswood apartment tower as SSDA lodged for Archer Street

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

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

Not all apartment amenities are immediately visible.

Swimming pools, gyms, rooftop terraces and residents' lounges have long featured on buyers' wishlists, but as the way Australians live has changed, so too have the features that make apartment living more convenient.

Increasingly, buyers are placing value on the practical aspects of day-to-day life. Fast internet, EV charging, secure bike storage, flexible workspaces and parcel management are becoming just as relevant as lifestyle amenities, reflecting changing habits and expectations.

Online shopping has been one of the biggest drivers of that shift.

Australians spent a record $82.6 billion shopping online in 2025, with almost one in every four retail dollars now spent digitally, making parcel deliveries a routine part of everyday life rather than an occasional convenience.

For apartment residents, however, receiving those deliveries isn't always straightforward.

Without someone home to accept a parcel, deliveries can be redirected to a nearby Post Office, left in building foyers or common areas, or require building management to temporarily store packages. As apartment living continues to grow across Australia's cities, parcel management has become an increasingly important consideration for both residents and developers.

Australia Post's Parcel Locker network is one response to that shift.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/KPZ9j5FRdsQ?si=Qztc1dNP3ZvEIUhb" title="YouTube video player" width="560"></iframe>

Rather than relying on home delivery, eligible parcels can be directed to a nominated Parcel Locker, where they're securely stored until collected. Once a parcel arrives, residents receive a notification through the AusPost app or SMS and can retrieve it using a one-time code or QR code at a time that suits them.

The network has expanded to more than 1,500 locations nationwide, with Parcel Lockers positioned at Post Offices, shopping centres, supermarkets, transport hubs and, increasingly, within or alongside residential developments.

That growing presence reflects a broader change in how apartment buildings are being planned.

Developers are increasingly considering the operational side of apartment living alongside traditional lifestyle amenities. Just as secure mailrooms, bicycle storage and EV charging have become more common inclusions, parcel management is emerging as another feature that supports everyday convenience.

It also helps preserve the arrival experience within a building. Carefully designed lobbies and communal spaces can quickly become cluttered when deliveries accumulate, while secure parcel solutions reduce the likelihood of missed deliveries or parcels being left unattended.

For buyers comparing apartments, these everyday details are becoming part of the decision-making process.

Location, floorplans and finishes remain fundamental, but the features that simplify daily life are carrying greater weight than they once did. As online shopping continues to shape consumer behaviour, secure parcel delivery is increasingly becoming another amenity worth looking for.

Parcel delivery is joining the apartment amenity checklist

Inca Property Group has lodged a State Significant Development Application (SSDA) for Dawn, a 53-apartment oceanfront development overlooking Mona Vale Beach.

The proposal, at 35-39 Darley Street East, would replace an existing 18-apartment strata building with a new owner-occupier-focused development comprising 53 two and three-bedroom apartments, including nine affordable built-to-rent residences delivered under the State's infill affordable housing scheme.

Positioned on a 2,679 sqm elevated site around 280 metres from Mona Vale Beach, the development has been designed to maximise panoramic ocean views while responding to the site's sloping topography.

<a href="https://www.apartments.com.au/developers/inca-property-group">Inca Property Group</a> Managing Director Josh Thompson said the State Significant pathway provided greater certainty for projects of this scale.

"This State Significant pathway gives the team real certainty to progress <a href="https://www.apartments.com.au/new-apartments/dawn-35-39-darley-street-east-mona-vale-nsw-2103">Dawn</a> through to completion," Thompson said.

"It allows us to acquire a one-off site, design it carefully and deliver the right offering for the suburb, assessed by the NSW Government's planning department."

The project is one of the first developments in the area to be assessed under the NSW Government's Low and Mid-Rise Housing policy, with the site sitting on the edge of the policy's designated inner area.

The proposal includes three basement levels providing 124 car spaces, alongside a range of resident amenities including a swimming pool, gym, sauna, wellness facilities and private plunge pools for selected ground-floor and penthouse apartments.

<img alt="Dawn" data-entity-type="file" data-entity-uuid="fc1a1daf-0ce4-4f12-9076-b1fa553c7a91" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-21%20at%208.42.11%E2%80%AFAM.png?VersionId=4GZ9h.gpNkTljbxyAET8Jfhv51XUamDm" />

Thompson said Dawn had been designed specifically for owner-occupiers and downsizers, a buyer profile that has driven demand across Inca's recent Upper North Shore developments.

"The majority of buyers in our recent North Shore projects have been downsizers, and we are learning exactly what this market is looking for. Beyond the location itself, we have included resort-style amenities to deliver a genuine lifestyle offering," Thompson said.

Located within walking distance of Mona Vale Beach, the town centre, Mona Vale Golf Club and the Royal Motor Yacht Club, Dawn represents Inca's first Northern Beaches project following the sell-out of Tara on Park in Waitara and Ellis Residences, currently under construction in St Ives.

Construction will be undertaken by Inca's in-house construction arm, GOP Constructions.

Dawn is the latest major apartment proposal for Mona Vale, with the suburb emerging as one of the key beneficiaries of the NSW Government's new Low and Mid-Rise Housing policy.

New developer One Living, led by industry veteran Joseph Scuderi, recently secured a site on Mona Vale Road, on the border of Mona Vale and Pymble, where it is planning around 140 apartments.

IPM is also planning its third project in Mona Vale, significantly increasing the scale of its previous developments with an 82-apartment proposal at <a href="https://www.apartments.com.au/new-apartments/159-167-darley-street-west-mona-vale-nsw-2103">159-167 Darley Street West</a>, opposite Bayview Golf Course and less than 800 metres from Mona Vale town centre.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/one-living-enters-sydneys-new-apartment-market-with-northern-beaches-site-acquisition">One Living enters Sydney's new apartment market with Northern Beaches site acquisition</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-ipm-plans-third-mona-vale-project">First look: IPM plans third Mona Vale project</a>

First look: Inca eyes Mona Vale with State Significant DA for Dawn apartments

Price Decline

<html><body>
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>.
<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/2019/1/2/dwell1.jpg" alt="">
<div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
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.
<div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
"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>.
<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/2019/1/2/Cl-Jan2full.jpg" alt="">
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</body></html>

j.ballantyne1990-6AQqhLzZaK

Perth property values fall in 2018 back to 2009 levels: CoreLogic

<html><body>
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>.
<img src="https://meltwater-apps-production.s3.amazonaws.com/uploads/images/57312c304f003481ed1f1231/blobid4_1545011469884.png">
 
“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.
 
 
 
 
</body></html>

jrobinson-rf4aSBido9

Over 400,000 Australians to delay retirement due to property market and share slump

<html><body>
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>.
 
 
</body></html>

RBA notes developers report demand for off-the-plan apartments has declined significantly: December meeting minutes

<html><body>
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.
 
</body></html>

House price drop largest in seven years: REIA 

<html><body>
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>
<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/2018/11/1/Nov-CL.jpg" alt="">
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>
<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/2018/11/1/Oct-CL.jpg" alt="">
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.
<div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
“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.”
</div>
</div>
</div>
</div>
 
 
 
</body></html>

Sydney house values down 8.4 percent annually with Melbourne closing the gap

<html><body>
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.
</body></html>

Melbourne house prices starting to decline: HTW Property Clock

<html><body>
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."
 
 
 
 
 
 
 
</body></html>

jonathanchancellor-7SQnKwU6yx

David Koch fires property market warning, but says there's no need to panic

<html><body>
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.
 
 
 
 
 
 
 
</body></html>

Housing prices could fall 10 percent warns UBS

<html><body>
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>
 
</body></html>

Harry Triguboff reaffirms 15 percent apartment price decline

<html><body>
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.
</body></html>

Price Decline

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

Price Decline

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

Developments

New apartments

New townhouses

News