The new <a href="https://www.apartments.com.au/new-apartments/yarraville-green-42-stephen-street-yarraville-vic-3013">Yarraville Green</a> development in Melbourne's inner west is showing that landscaping can be just as influential as architecture, with buyers responding strongly to the garden-first approach adopted from the outset by developer Excelon Projects and the project's design team.

Excelon appointed Six Degrees Architects and landscape architects SBLA to work collaboratively on the development, with a brief to create "a sustainable, design-led building with a focus on community."

That approach has resonated with buyers. According to Next Chapter Director Tom Hirini, who is leading the sales campaign, the landscaped communal garden has become one of the project's defining features, alongside its boutique scale and European-inspired cluster housing concept.

Local downsizers, right-sizers and established families already living in Yarraville and surrounding suburbs have accounted for the majority of purchasers.

[smartcode_project:default project_id=144913 project_image_fid=297740]

Yarraville Green will comprise 53 homes, including apartments and townhomes, arranged around the shared central garden to maximise connections to the landscaped open space. Parking has been moved underground, allowing the ground plane to be dedicated to greenery, pedestrian movement and communal spaces.

The landscape extends well beyond passive planting. Productive garden beds, a pergola, communal gathering spaces, garden sheds and a pet wash have all been integrated into the masterplan, creating spaces designed to encourage everyday interaction between residents.

[smartcode_project:default project_id=144913 project_image_fid=297741]

The interiors continue Excelon's focus on craftsmanship, incorporating bespoke elements by Melbourne artisans including leadlight detailing by Adadaz, hand-turned timber hardware by Auburn Woodturning and blown-glass lighting by Ruth Allen.

Sustainability has also been embedded throughout the project, with Yarraville Green targeting an average 7-star NatHERS energy rating through passive design principles, rooftop solar servicing common areas and rainwater harvesting for landscape irrigation.

[smartcode_project:default project_id=144913 project_image_fid=297735]

Construction continues to progress at Yarraville Green, with structural works well underway and framing works approaching completion under builder Balmain &amp; Co. The project remains on track for completion in mid-2027.

Apartments at Yarraville Green are currently priced from $625,000, while townhomes start from $1.4 million.

[smartcode_project_cta:default project_id=144913]

Joel Robinson

Garden-led design drives buyer demand at Yarraville Green

National diversified developer Fortis has officially launched Crest &amp; Walker, its latest Brisbane apartment development, with construction now underway on the 20-storey Newstead project.

Award-winning builder BINAH has commenced construction on the Bureau^Proberts-designed building, which will deliver a limited collection of 65 two and three-bedroom apartments on Kyabra Street.

[smartcode_project:default project_id=145922 project_image_fid=373556]

The project marks Fortis' fourth active residential development in Brisbane, following River House, which is nearing completion, alongside projects in New Farm and Hamilton as the national developer continues to expand its South East Queensland pipeline.

Fortis General Manager – Development Queensland Dan Boman said Crest &amp; Walker reflects the developer's long-term commitment to delivering design-led residential projects in Brisbane's established inner-city suburbs.

"We're proud to be strengthening our presence in Brisbane with Crest &amp; Walker, particularly in such a sought-after lifestyle destination as Newstead," Boman said.

"Every Fortis project is shaped by its context, and we approach each one with the respect and care it deserves.

"Our focus is always on creating places that feel connected to their neighbourhood and elevate the everyday experience for residents. Newstead continues to evolve as one of Brisbane's most sought-after urban communities, and Crest &amp; Walker reflects our ambition to contribute meaningfully to that story."

[smartcode_project:default project_id=145922 project_image_fid=373559]

Positioned between Gasworks Plaza and James Street, <a href="https://www.apartments.com.au/new-apartments/crest-walker-newstead-12-kyabra-street-newstead-qld-4006">Crest &amp; Walker</a> has been designed as a boutique residential address offering privacy and generous living spaces within one of Brisbane's most established lifestyle precincts.

The building features a contemporary brick podium softened by integrated landscaping, while the upper levels are characterised by restrained architecture and enduring materiality. Interiors have been designed to maximise natural light, acoustic performance and long-term liveability.

[smartcode_project:default project_id=145922 project_image_fid=373583]

Residences comprise spacious two and three-bedroom floorplans, with two-bedroom apartments priced from $1.55 million and three-bedroom, half-floor residences from $3.95 million.

Residents will have access to a wellness-focused rooftop featuring a swimming pool, sauna, steam room, landscaped dining spaces and outdoor lounge areas overlooking Newstead and the Brisbane CBD.

[smartcode_project:default project_id=145922 project_image_fid=373571]

Sales are being managed by Slaite Projects, with Fortis expecting strong demand from owner-occupiers seeking a high-quality, design-focused apartment in one of Brisbane's most tightly held inner-city suburbs.

Completion of Crest &amp; Walker is slated for late 2028.

[smartcode_project_cta:default project_id=145922]

Fortis expands Brisbane pipeline with launch of Crest & Walker in Newstead

The enormity of delivering a true skyscraper in Australia's new development market is often overlooked.

It has taken the best part of a decade since plans for Chevron One were first unveiled, but the 41-storey tower is now complete, with residents collecting their keys and moving into what has become one of the Gold Coast's most recognisable new landmarks.

Rising 127 metres above Chevron Island, Chevron One stands almost twice as high as any other building on the island. Its scale places it alongside the trio of towers at Jewel, arguably the last truly significant addition to the central Gold Coast skyline when they were completed around six years ago.

While there are several developments underway around a similar height to Chevron One, they are more concentrated within clusters of the highest towers in the city. The fact Chevron One sits within a developing precinct, looking back at the other high-rise developments in Surfers Paradise and Broadbeach, makes it a different proposition altogether. It will certainly become a reference point on the Gold Coast skyline.

[smartcode_project:default project_id=6515 project_image_fid=68833]

Developer Bensons Property Group is behind the 41-storey tower, which has 229 apartments, along with an exhaustive list of resident amenity spread across what is the largest development site ever assembled on Chevron Island.

The tower has been the talk of the town for years, says Ray White Projects Gold Coast agent Caitlin Rosenboom, who is selling the remaining apartments.

"People have been watching Chevron One go up for years," Rosenboom says, adding that many prospective buyers have been surprised by the scale of the views once they step inside.

"It's only when they walk through a completed apartment that they truly understand the position of the building," Rosenboom says.

"The views are jaw-dropping. Whether you're looking east over the ocean, across Surfers Paradise, along the river systems or out to the hinterland, every level offers something different but equally impressive."

[smartcode_project:default project_id=6515 project_image_fid=360215]

One of Chevron One's defining advantages is its location on the eastern side of Chevron Island on Stanhill Drive, a position which protects the views forever.

"There's only one row of houses between Chevron One and the water, and the height restrictions along the river means views from Chevron One can never be built out,"&nbsp;Rosenboom says.

While new apartment developments continue to emerge across the Gold Coast, Rosenboom says opportunities to secure a completed apartment with this level of outlook are becoming increasingly rare.

"The size of the site is something that would be incredibly difficult to replicate today," she says.

"That's allowed Chevron One to deliver the sort of amenity, open space and resident facilities that very few projects can offer. There are not many completed apartment buildings on the Gold Coast right now that can compete with the combination of scale, quality and amenity."

[smartcode_project:default project_id=6515 project_image_fid=68839]

There's around 2,000 sqm of amenity solely for the use of residents of Chevron One. Club One features a uniquely shaped swimming pool that mirrors the footprint of the building itself, set within a extensively landscaped gardens. There's also an indoor pool and spa, a fully equipped gym with a Pilates room, a yoga garden, a bookable private dining area and lounge that can host up to 30 people, and a 24-hour concierge service.

As for the buyers, Rosenboom is fielding enquiry from everywhere: Sydneysiders and Melburnians looking at the new and off-the-plan market following the changes in the Federal Budget, as well as those looking to relocate, through to South East Queenslanders seeking either a permanent home or a weekender bolthole.

"The Gold Coast lifestyle continues to resonate with people relocating from the southern states, and when they see the views and the quality of what's been delivered at Chevron One, it becomes very easy for them to understand the appeal," Rosenboom says.

A diverse mix of one, two and three-bedroom apartments remain available, with each offering "something a little different", be it the orientation and views, configuration, or level, to suit a wide variety of buyers.

The remaining apartments are ready to inspect in person, by appointment.

[smartcode_project_cta:default project_id=6515]

A decade in the making: Residents to move into Chevron One as construction wraps up

A general rule of thumb in new apartment developments is that the penthouses get the rooftop.

It's a formula that's become commonplace across Australia's apartment market. Residents might have access to a pool, gym or barbecue facilities on a dedicated lower level, but the most desirable outdoor spaces are typically reserved for the highest-priced homes at the top of the building.

<a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Property Group</a> has taken the opposite approach.

Rather than dedicating the rooftop to a handful of buyers, the Gold Coast developer has made it the centrepiece of its Flourish collection, creating expansive shared spaces from the best vantage point in the building.

The philosophy has reached its most ambitious expression at <a href="https://www.apartments.com.au/new-apartments/flourish-soleira-palm-beach-1150-1160-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a> in Palm Beach, where two rooftop precincts connected by a skybridge will deliver one of the most extensive lifestyle offerings seen in a residential apartment project on the Gold Coast.

[smartcode_project:default project_id=150017 project_image_fid=374053]

"We're seeing a clear move toward developments that offer more than just an apartment," Sherpa Group founder Christie Leet said.

"People want spaces that support how they actually live, whether that's working from home, staying active, or spending time with family and friends.

"That's where amenity becomes critical. It's not just about what's included, but how those spaces are designed to be used every day."

[smartcode_project:default project_id=150017 project_image_fid=374052]

The breadth of amenity has already attracted buyers across multiple demographics. Younger first home buyers have been drawn to Soleira's one-bedroom apartments, a product rarely delivered in Palm Beach, while families have responded to practical inclusions such as the shallow children's pool adjoining the main lap pool and the extensive communal recreation areas.

Instead of a single rooftop, Soleira delivers two distinct lifestyle zones.

[smartcode_project:default project_id=150017 project_image_fid=372547]

The southern rooftop has been dedicated to wellness, featuring a gym, yoga and Pilates studio, work-from-home facilities, a wellness centre, spa, and hot and cold plunge pools.

The northern rooftop focuses on recreation and entertaining, incorporating a heated resort-style pool, private dining rooms, pizza ovens, barbecues, a golf simulator, children's recreation areas, and what is expected to be the Gold Coast's first rooftop basketball court, which will also double as a squash court.

[smartcode_project:default project_id=150017 project_image_fid=374054]

Beyond the rooftops, Soleira will introduce 1,500 sqm of curated retail beneath the towers, creating one of Palm Beach's first genuinely mixed-use lifestyle precincts where cafés, restaurants and convenience retail become part of residents' everyday lives.

Sherpa has also retained management rights across the development, allowing it to oversee the long-term operation of the building through a 24-hour concierge model. The developer is also exploring additional revenue streams within the precinct aimed at helping offset ongoing body corporate costs for residents.

[smartcode_project:default project_id=150017 project_image_fid=370962]

While Soleira is the largest project Sherpa has delivered, the rooftop-first philosophy has been evolving for several years.

It began with <a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Flourish Amargo</a>, the first project released under the Flourish brand. Rather than competing at the ultra-luxury end of the market with oversized half-floor and full-floor residences, Sherpa focused on creating lifestyle-driven apartments supported by resort-style shared spaces.

Amargo introduced more than 800 sqm of rooftop amenity, combining wellness facilities, heated pools, entertaining areas, cabanas, pizza ovens and private dining spaces into what was designed as an extension of residents' homes rather than a facility used only occasionally.

[smartcode_project:default project_id=146527 project_image_fid=366550]

That approach continued with Flourish Oasis, where the same amenity-led philosophy was refined into a more boutique development. Strong demand from Sherpa's growing VIP database saw much of the project sold before it reached the broader market, reinforcing buyer appetite for apartment communities centred around shared lifestyle experiences.

Flourish Amargo is slated for completion mid-way-through next year, with Oasis to be delivered by late 2027. Flourish Soleira is expected to complete in 2030.

[smartcode_project_cta:default project_id=150017]

Sherpa takes amenity to the sky as Flourish Soleira captures booming Palm Beach demand

As apartment living continues to evolve across Sydney's growth corridors, the quality and distribution of shared spaces is increasingly shaping how residents experience home. Rather than functioning as add-ons, amenities are being embedded into the daily rhythm of a building, supporting everything from quiet retreat to social interaction, often within a single vertical community.

At <a href="https://www.apartments.com.au/new-apartments/aeris-melrose-park-nursery-street-melrose-park-nsw-2114">Aeris</a> in Melrose Park, this approach is resolved through a layered amenity offering that unfolds from ground level through to its upper podium. Developed by <a href="https://www.apartments.com.au/developers/sekisui-house-australia">Sekisui House Australia</a> in partnership with Hankyu Hanshin Properties, the project introduces 468 apartments across two towers and a mid-rise building, positioned at the highest point of the broader masterplan.

[smartcode_project:default project_id=426 project_image_fid=359199]

The amenity experience begins at street level, where two courtyards sit within a landscaped setting that connects residents to the wider network of parks and green spaces. These green spaces are not isolated pockets but part of a wider pedestrian network that links Aeris to the surrounding <a href="https://www.apartments.com.au/developments/melrose-park-nsw-2114">Melrose Park</a> precinct, including Central Park, future schools, and the Town Centre opening in July 2026. The result is a transition that moves from public to private without abrupt boundaries, allowing residents to pass through shaded, tree-lined environments before reaching the building itself.

Moving upward, the focus shifts to the level five podium, where the primary communal facilities are concentrated. This space brings together a 16-metre swimming pool, outdoor seating areas, and a communal BBQ zone arranged to take advantage of elevated outlooks. Seating is positioned beneath pergolas, creating pockets of shade that extend the usability of the space throughout the day. The pool edge aligns with views toward the wider district, reinforcing the sense of elevation that defines the project’s positioning.

In the adjacent building, this is complemented by quieter, more contemplative spaces, including an outdoor cinema set within the same level. Positioned to operate primarily in the evening, it introduces a different tempo to the shared environment, shifting from daytime activity to after-hours use without requiring separate zones.

[smartcode_project:default project_id=426 project_image_fid=360299]

The podium also accommodates an intimate private resident gym. Located on the lower levels, it gives residents convenient access to fitness facilities without leaving the building.

Above, the elevated podium sky deck extends the amenity offering, providing additional open-air spaces with elevated outlooks across the surrounding landscape. While more restrained in program, this upper level reinforces the project’s vertical progression, from ground-level greenery to elevated outlook, allowing residents to move between distinct spatial conditions within a single address.

This distribution of amenities reflects a deliberate response to how residents use space across the day. Sekisui House Australia Sales and Marketing Director Peter Kalaf points to the role these shared areas play in shaping buyer demand. Aeris has been conceived as more than a collection of apartments, with the podium pool, gym and outdoor cinema forming part of a broader lifestyle offering that extends the home beyond each individual residence.

[smartcode_project:default project_id=426 project_image_fid=360300]

What distinguishes Aeris is not the inclusion of these elements individually, but how they are arranged in relation to one another. Active, social, and passive spaces are layered vertically rather than separated, allowing residents to choose between them without leaving the building or moving far from their apartment. This proximity supports both routine use, such as a morning swim or evening workout, and more occasional gatherings, whether around the BBQ area or within the cinema setting.

The amenity design also sits within a broader framework of connectivity across Melrose Park. The Melrose Park Town Centre, anchored by Coles and Dan Murphys, features a mix of retail, dining, health and lifestyle offerings, bringing everyday convenience closer to residents. By the end of the year, more than five hectares of parks and open space, equivalent to around seven football fields of green space on residents' doorstep, will further enhance the precinct, allowing the internal facilities at Aeris to operate as an extension of the wider neighbourhood rather than a substitute for it.

Construction at Aeris continues to gather momentum, with ground floor slabs expected to be completed in late 2026 before the first sections of the buildings begin to rise above ground.

[smartcode_project_cta:default project_id=426]

Elevated amenity anchors daily life at Aeris, Melrose Park

Price Growth

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Brisbane suburbs Sunnybank and Mount Gravatt showed the strongest growth in dwelling prices in Queensland over the last 10 years, according to CoreLogic’s latest data.
Sunnybank’s 10-year growth was 39.4%, while Mount Gravatt grew 33.2% during the same period, according to CoreLogic’s release. 
<a href="https://www.propertyobserver.com.au/images/2017/11/30/Qld10Years.png" target="_blank">Click to enlarge</a>
<a href="https://www.propertyobserver.com.au/images/2017/11/30/Qld10Years.png" target="_blank"><img src="https://www.urban.com.au/images/2017/11/30/Qld10Years.png" alt=""></a>
CoreLogic’s methodology is based on the best performing property markets at an SA3 level (SA3 represents a regional area serviced by major transport &amp; commercial hub with a population of between 30,000 and 130,000 people).
The median price of dwellings in Sunnybank was $638,911. 
A three-bedroom house at <a href="https://www.realestate.com.au/property/64-everest-st-sunnybank-qld-4109?pid=p4ep-pdp%7Csold-pdp:property-history-cta#history" target="_blank">64 Everest Street, Sunnybank</a> (picture above) sold earlier this year for $630,000, close to the median dwelling price of the suburb. Previously, it changed hands for $460,000 in 2013 and also for $390,000 in 2012.
A five-bedroom house at <a href="https://www.realestate.com.au/property/23-breton-st-sunnybank-qld-4109?pid=p4ep-pdp%7Csold-pdp:property-history-cta#history" target="_blank">23 Breton Street in Sunnybank</a> sold for $590,000 in March 2017. Its sales history from CoreLogic shows it was bought for $323,000 a decade back in 2007.
<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/2017/11/30/Sunnybank2.jpg" alt="">
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jonathanchancellor-7SQnKwU6yx

Brisbane's Sunnybank leads price growth in Queensland over 10 years: CoreLogic

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<div class="cq-article-content-paras section">
Australia's national house price growth is likely to be flat - or possibly in low single digits - for the several years, according to UBS.
The latest UBS report, 'Get rich or borrow trying', warns that even small changes to credit conditions, such as a drop in availability of investor-only loans which have been targeted by the bank regulator, will "materially impact" house price growth.
According to UBS households are much more sensitive to tightening financial conditions from higher mortgage rates and the lagged impact of macroprudential measures than many realise.
</div>
<div class="cq-article-content-media section">House price growth should moderate to around 7 per cent in 2017 and to between 0 per cent to 3 per cent in 2018, according to UBS economists George Tharenou and Carlos Cacho.</div>
<div class="cq-article-content-media section"> </div>
<div class="cq-article-content-media section">But the “forever boom” is ending, UBS clients were told, according to The Australian.</div>
<div class="cq-article-content-media section"> </div>
<div class="related-quotes section">"We would still characterise our outlook as a 'soft landing', given we still don't expect a sudden collapse in prices," they wrote in a report on Fairfax Media.</div>
"But it does seem likely that Australia faces a prolonged multi-year period of flat or low single digit nominal price growth." 
Signs of a slowdown in house price are fast-emerging. House prices in Sydney fell 0.1 per cent over September, the first fall since late 2015, on Corelogic figures and 1.9 per cent, on Domain figures.
Veteran analyst Louis Christopher is predicting sedate house price growth in Sydney of between 4 per cent to 8 per cent in 2018 if the cash rate and economy remains unchanged. 
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j.ballantyne1990-6AQqhLzZaK

Australian property prices headed for "prolonged" flat period: UBS 

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Australian housing prices have surged by a massive 6,556% since 1961 — an average increase of 8.1% every year, the Switzerland-based Bank of International Settlements (BIS) has calculated.
The BIS authors analysed "upswings" and "downswings" across 47 countries.
"The upswings lasted on average 13 years; with the longest one, in Australia, still continuing after half a century," the BIS authors wrote.
The longest downswing was experienced by Japan, for a period of 13 years.
From 1961 to 2016, the report says Australian house prices have grown by an average of 8.1% a year, in "real" or inflation-adjusted terms.
It was done as part of a paper exploring how interest rates affect the price of real estate.
Compared to other advanced economies in the past five decades, Australia had the sixth highest rise in annual property prices.
It was beaten by Spain (+9.9%), UK (+9.3%), New Zealand (+8.8%), Italy (+8.8%) and Ireland (8.7%).
Recently, a $570,000 sale took place at <a href="https://www.realestate.com.au/sold/property-apartment-nsw-burwood-126492282" target="_blank">9/189 Liverpool Road, Enfield</a>. 
The ordinary apartment complex, Lindsay Gardens, was the world’s first ever strata-titled building when sold off in 1961.
The apartment first sold at £5200, which equates roughly to $10,400.
It's ensuing price growth reflected 7.5% annual gains.
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7.5% annual growth since 1961 sale at Enfield

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An improvement in market sentiment across most states in the third quarter of 2017 suggests there may still be some legs left in the housing market, with Melbourne showing promising growth while Sydney slowing from the 20 percent rises, according to NAB's latest survey. 
Market conditions continue to vary considerably across locations, with each city seemingly at very different stages of their housing cycles, says NAB Residential Property Survey.  
Annual property price growth across eight capital cities has moderated only marginally to 8.5% y/y in September, down from this year’s high of 11.4% in May. 
“Sydney, Melbourne and Hobart have each continued to see double digit yearly rates of growth, although the momentum is clearly with Melbourne and Hobart, as Sydney is seeing a much more pronounced slowing in recent months - a trend that is reflected in other measure of the market pulse, including auction volumes, clearance rates, and market sentiment,” it says. 
Perth housing prices remain lower from the same time last year, although the decline has slowed since mid-2016, consistent with expectations that the worst of the economy’s post mining boom woes may be over. 
“But despite prices remaining a little more resilient than expected this quarter (outside Sydney), we have maintained our view for more muted market performance going forward, particularly following our revised expectations for RBA rate hikes which have been brought forward to mid-2018 (from H2 2019),” said NAB. 
Hobart has outperformed others in annual growth, with prices rising more than 14% over the year to September. 
In the bigger east coast markets, Melbourne has seen the strongest growth, rising around 12% over the year. Sydney is close behind, at 11% growth, but well below the nearly 20% growth earlier this year. 
For the other capital cities, the Brisbane and Adelaide markets are seeing more modest gains, which are more in keeping with subdued increases in household income, while Darwin is the only other major city besides Perth to see declines over the past year, NAB said.
<a href="https://www.propertyobserver.com.au/images/2017/10/16/NABHousing.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/10/16/NABHousing.png" alt="">
<a href="https://www.propertyobserver.com.au/images/2017/10/16/NABUnits.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/10/16/NABUnits.png" alt="">
Detached house prices have generally performed better across most markets. In many cases that simply reflects the land component of the property price, however, the apartment segment in some markets have also come under pressure from supply-side concerns, such as Brisbane, where reports of settlement issues have become common. 
Melbourne has often been cited as a market with apartment oversupply risk as well, however, solid population growth and an overall buoyant housing market has helped to underpin near double digit growth in unit prices - similar observations can also be made for Sydney, said NAB.
“We have long anticipated a definitive shift to more moderate market conditions, brought about by a combination of factors (which vary across markets) including deteriorating affordability, rising supply (primarily apartments) and tighter credit conditions following the macro prudential response to financial stability concerns (mainly targeted at investors). 
“While we are yet to see clear evidence of that, we continue to hold this view - although recent price trends suggest the timing of the shift may vary somewhat across markets. Additionally, we anticipate an even higher degree of uncertainty around the price outlook than usual given the relatively unchartered waters of macro prudential intervention,” the note said.
It added that regulatory intervention are often thought to have their greatest (dampening) impact on the market early on, before losing their potency over time - making the seemingly divergent trends between the Sydney and Melbourne markets at present all the more perplexing. 
“This could suggest some upside risk to our outlook should prudential policy lose potency, helping Sydney regain some of its previous price momentum. Foreign demand is another consideration that is difficult to ascertain.”
The survey noted the impact of policy to curb foreign capital entering the Australian property market.
It said that there were a number of positive elements that should support the market enough to prevent a severe adjustment in prices (assuming important factors such as the economic outlook play out largely as expected). 
Mortgage rates remain near record lows (despite a tightening in credit conditions earlier this year), and some lenders appear to be taking their foot off the brake again more recently - according to RBA data the discounted variable mortgage rate has returned to its previous low. 
That is helping to keep mortgage interest payments well down on previous peaks (as a share of disposable income), despite disappointing growth in incomes. 
Meanwhile, the housing supply-demand balance remains quite favourable, with most cities (excluding Perth and Darwin) seeing rental vacancy rates in undersupplied territory (below 3%), consistent with NAB estimates that show a high degree of pent-up demand for housing in many states (especially NSW and Victoria) - population growth in Victoria has been particularly strong, and is expected to remain elevated. 
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NAB expects a more muted property market in 2018, with RBA likely to hike rates

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Sydney’s apartment boom has been more evenly spread than Brisbane and Melbourne, and fears that oversupply will cause a fall in prices are overblown, says a senior Reserve Bank official.
RBA’s assistant governor of economics, Luci Ellis, noted that while growth in the building of new Australian homes had been outpacing population growth, Sydney was not expected to suffer a big price fall. 
Brisbane was the real risk, Dr Ellis said.
"It's a truism that the more supply you have, the weaker prices are going to be relative to what would have happened if supply had been lower," Dr Ellis told a lunch of the Women In Economics Network and the Australian Business Economists in Sydney on Wednesday.
"But, at this stage, we're not seeing that ... that supply, in and of itself, is going to create a big fall in prices and certainly not in Sydney."
Instead, Dr Ellis singled out Brisbane, pointing to the high geographic clustering of the new developments set to hit the market this year.
"This year is crunch time" for Brisbane, she said.
"Over the years, we've pointed more to Melbourne and to Brisbane as where that's more likely to cause trouble in terms of concentrated increases in supply resulting in lower prices and therefore potentially distress,” Fairfax Media quoted Dr Ellis as saying.
Sydney was a different story though, she said. 
“Whereas, in Sydney, it's sort of all over the city, so it's much more evenly spread and so less likely to create a really concentrated local price effect."
And while new construction was running ahead of population demand, that was unlikely to last as a “point of peak” for building approvals had been reached. 
“Building approvals have stepped down to a new level. The backlog of work in residential property is now starting to decline, even in NSW and Victoria, but particularly in Queensland,” she said.
"So in some sense, this is a phase that will eventually end and we won't be building more than the population requires."
On the demand side, Dr Ellis said Melbourne's surprisingly strong population growth gave strong cause for belief that prices would not fall there.
"Similarly, population growth remains fairly strong in Sydney, so it's not clear to me that we end up with a serious problem here."
Home price figures released by the Bureau of Statistics on Tuesday showed Australian home prices rose 10.3 per cent last financial year and 13.8 per cent in Sydney and Melbourne. But price growth has slowed in Sydney,  with just 2.3 per cent increase in the final quarter.
According to a CommSec analysis of the Bureau's data, the median price of houses transacted in Sydney in the June quarter was $1.02 million, $110,000 more than a year ago.
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RBA official fears for Brisbane apartment prices

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The National Australian Bank has tipped a halving of house price growth in the nation's major capitals because of rising rates, tougher regulation and falling affordability.
Other factors contributing to the scenario include slow wages growth, falling overseas demand, record low rental yields and a big increase in apartment supply in some cities.
House prices are expected to grow by about 4.3 percent next year, which is less than half the current rate in four of the nation's capital cities.
Apartment values are expected to go into reverse dropping 0.4 percent, according to the bank's analysis.
The report follows research by ANZ earlier this month saying housing price growth would slow to 4.4 percent this calendar year down from 10.9 percent last year.
The NAB report, being circulated among mortgage brokers, claims property is "more resilient than expected", led by strong growth in Sydney and Melbourne shrugging off concerns about apartment over-supply.
House prices across the nation are expected to grow by 7.2 percent with apartments by 6.8 percent for the remainder of 2017.
"Ongoing strength in housing demand is expected to help offset supply concerns, although policy responses are creating additional uncertainty," the report says.
"On a more positive note, population growth is expected to remain solid, especially in Victoria, helping to drive underlying demand and soak-up some of the feared excess in supply," it says.
The NAB has increased its price projections for Sydney for the remainder of the year from 4.5 percent to 10.5 percent.
"Price forecasts have been revised higher, but risks still linger," the report says of the Sydney market.
It has also revised growth for Melbourne from 5.6 percent to 10.8 percent for this year before slipping to 5.5 percent next year.
"Melbourne is performing well, although over-supply concerns drive a wedge between house and unit prices. This divergence is expected to continue," the report concludes according to the Australian Financial Review article.
Brisbane's apartment sector will continue to under-perform but overall growth is "relatively steady", the report states.
House prices are expected to increase by 1 percent and 2 percent next year. Apartment prices are likely to fall by up to 2 percent this year and next.
Adelaide is steady, despite low economic growth and high unemployment. Adelaide house prices are expected to grow about 2 percent this year and 1.7 percent in 2018.
Perth's apartment and house prices are expected to continue fall by up to 6 percent during the remainder of the year.
"Tentative signs that both the local economy and property market may stabilise in the medium term suggest we could see flat-to-modestly higher prices from 2018," the report states.
Prices in Hobart have been accelerating because of an improving economy and affordability.
"Further gains are expected, but at a slower rate," the report concludes. House prices in the Tasmanian capital are expected to grow by about 7 percent this year and slow to 1.7 percent next. Unit prices are also expected to slow.
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NAB forecasts price growth to halve in 2018

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Throughout the past 20 years, CoreLogic research confirmed that it’s been much more common for combined capital city dwelling values to increase rather than fall.
CoreLogic head of research Cameron Kusher said although value rises have been more common, it doesn’t mean that the housing market is bulletproof and in some instances values have fallen quite dramatically and rapidly.
“Typically the Reserve Bank (RBA) or the Government have adjusted fiscal and/or monetary policy to support the housing market and arrest the value falls,” he said.
Today’s CoreLogic research shows that across the combined capital cities, dwelling values increased by 346.4 percent over the 20 years to April 2017.
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In the two periods in which values have fallen, capital city dwelling values fell by -6.1 percent between March and December 2008 and they fell by - 7.4 percent between October 2010 and May 2012.
At an individual capital city level housing markets have cycled quite differently however, the majority of capital cities recorded a decline in dwelling values in both 2008 and from late 2010/early 2011.
The 2008 decline occurred as the financial crisis hit with values falling however, stimulus measures in the form of aggressive interest rate cuts along with cash handouts and boosts to first home buyer’s grants proved enough to spur demand and turnaround the decline in values.
In 2010 dwelling values fell as the post financial stimulus was being wound out of the market with interest rates increasing and first home buyer incentives being removed.
These value falls were arrested as the RBA reversed direction and started to cut official interest rates again in late 2011.
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Mr Kusher said looking at the declines which commenced in 2008, the magnitude of falls was fairly minor considering most advanced economies fell into recession as a result of the financial crisis.
“Hobart and Darwin were relatively unaffected by the declines however, Melbourne (-8.3 percent), Perth (-6.8 percent) and Sydney (-6.2 percent) were more impacted than all other capital cities," he said.
“The period of decline proved quite short and it has become clear that the stimulus measures effectively staved off sharper declines and possibly a national recession.”
From 2010 to 2011/12 all capital cities experienced falls in dwelling values as the financial crisis stimulus and low interest rates were wound out of the market.
Sydney (-5.0 percent), Adelaide (-6.9 percent) and Canberra (-4.4 percent) were the only capital cities in which values didn’t fall by more than 10 percent over this period.
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The largest falls were recorded in Darwin (-19.7 percent), Hobart (- 14.3 percent) and Brisbane (-11.7 percent).
Over the period of falls, Darwin (-1.2 percent) averaged the largest average monthly fall along with Hobart (-0.8 percent), Melbourne (-0.6 percent) and Perth (-0.6 percent).
Across the other capital cities, Sydney, Adelaide and Canberra recorded average declines of -0.3 percent/month and Brisbane’s declines averaged -0.5%/month.
Mr Kusher said this analysis serves as a reminder that although capital city dwelling values have largely increased over the past 20 years, they are not immune from potential declines.
“The impetus for previous declines has been around external economic shocks along with the stimulus of low interest rates and grants to first home buyers being removed," he said.
"Australia is not seeing any of the shocking economic conditions of the size of the 2008 financial crisis.
“We are seeing the unemployment rate at similar levels to 2008/09 and historically high levels of underemployment.”
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CoreLogic also reported that the market is slowly seeing historic low mortgage rates move higher against a backdrop of record-low wages growth and record-high household debt.
Mr Kusher said depending on how much mortgage rates are increased (noting that this is not happening due to the RBA) home owners should be aware that it could lead to a slowing or even some potential falls in dwelling values.
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Falling property prices and the affect it has on the overall market: Cameron Kusher

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Cranes in the sky provide insight into the constructor sector, especially when it comes to residential unit supply.
To illustrate the scale of construction in Sydney alone, which has more than 50 percent of all cranes in Australia, the residential crane count rose to 292 in March this year from just 62 in September 2014.
AMP Capital’s latest weekly economic and market update points to the crane numbers as an indicator that home price growth has peaked in Sydney and Melbourne and that price declines lie ahead, particularly for units. 
In explaining its outlook, AMP Capital says “the latest Australian bank rating downgrades tell us nothing new but the drip feed of negative news around the property market in Sydney and Melbourne is continuing to mount: surging unit supply, bank rate hikes, tightening lending standards, reduced property investor tax deductions, ever tighter restrictions around foreign buyers”.
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<img src="https://www.urban.com.au/images/2017/05/26/CraneAMP.png" alt=""> 
Residential cranes soared to 292 around Sydney which accounts for 45% of all Australian cranes and 53% of all residential cranes in Australia, the RLB Crane Index indicates. 
An analysis of the last crane index, based on September's count, showed over a third of the cranes building Australia's next wave of apartments due for completion in the coming two years are in the ‘blacklisted’ postcodes of lenders, meaning banks view them as risky suburbs to lend, the Australian Financial Review reported. 
The settlement risks, compounded by China’s crackdown on outflows and Australian banks’ tightening of credit to Chinese investors, could point to a crisis.
According to the March count, residential cranes in Sydney jumped by 34 to 292 from 258 six months earlier. In Melbourne, the number of residential cranes rose by a net 13 to 122 from 109 in September, but remained below the total 124 counted a year ago. 
Ofcourse the biggest concerns of an oversupply of apartments are in Melbourne.
<a href="https://www.propertyobserver.com.au/images/2017/05/26/CraneCount.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/05/26/CraneCount.png" alt="">
As to the broader crane index, the number of cranes on the skylines of seven of 10 cities counted fell to a total 654 in March from 666 in September, driven by a decline in the number of cranes on commercial, education and public projects. 
This was the first decline in the total number of cranes across Australia's skyline since Rider Levett Bucknall (RLB) Oceania Research &amp; Development and Communication teams created the RLB Crane Index in 2012.
But even as residential cranes dominated the count – and increased to 548, or 84 per cent of the total – the sector showed further signs of the slowdown that was first apparent six months ago. While apartment-heavy Melbourne increased its number of cranes after September's fall, it failed to make up all of that lost ground. Brisbane declined further.
The report also reflects the moves by developers to smaller-scale projects in inner-ring suburban away from large CBD projects. 
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Crane count indicates home price growth may have peaked in Sydney and Melbourne: AMP Capital

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Canberra has recently joined the biggest cities with strong price growth, if you can believe the numbers.
As is the case with all our capital cities, the level of growth in Canberra house prices depends on which research source you favour.
The latest figure from the Australian Bureau of Statistics records annual growth of 6.6 percent, while the Real Estate Institute of Australia says 5.1 percent. But Domain, SQM Research and CoreLogic, using their various mysterious methodologies, all have Canberra house prices (on average) rising by more than 10 percent in the past 12 months.
The uplift in price growth in the national capital is quite recent. Unlike Sydney three hours up the highway, Canberra has not been pumping for the past 3-4 years. It went through a period of malaise when the Federal Government downsized the public service and the market was also impacted by an oversupply of apartments.
Canberra has got those negative symptoms out of its system and appears to be growing again. Certainly that aligns with my analysis of sales activity, which have been elevated in the past two years.
But what really stands out for me is the uplift in activity and prices in New South Wales locations close to Canberra.
The proximity of Queanbeyan (now part of the newly-formed Queanbeyan-Palerang Regional Council area) to the nation’s capital is certainly helping local property markets.
The region has strong population growth, unemployment is low and new housing estates are under construction – helped by Queanbeyan’s affordability relative to Canberra, with median prices for both houses and units generally below those in the national capital.
Canberra prices are kept artificially high by the tight control of land releases and general dwelling supply by the ACT Government. But Queanbeyan, while closer to central Canberra than many ACT suburbs, is in NSW and has cheaper prices. Many of its suburbs have median house prices in the $400,000s while Queanbeyan, Queanbeyan East and Crestwood all have median unit prices in the $200,000s – something that’s difficult to find within the ACT.
Property sales activity in Queanbeyan increased in 2015 and 2016, leading it to become a standout region for growth, as identified in the Autumn edition of the Price Predictor Index published by Hotspotting.
Good rental yields are another attraction, with several suburbs having median yields around 5 percent for houses and 6 percent for units.
Goulburn, about 80km from Canberra, also benefits from being close to the national capital and having much cheaper house prices. It’s a growth market, partly because of local events, partly its proximity to Canberra and partly a Ripple Effect from Sydney’s growth market.
Sales activity has been rising steadily in the past 18 months and this has generated solid growth in Goulburn’s median house price (up 7% to about $350,000 in the past 12 months).
Goulburn (the LGA’s population is around 30,000) has long been a solid regional centre servicing the Southern Tablelands area of NSW near the ACT border.
Long-term, it will benefit from its location in the growth corridor linking Canberra with Sydney – with growing numbers living in affordable Goulburn and working in Canberra.
It would also be a key beneficiary of plans for high-speed rail links between Canberra and Sydney, if that grand plan ever happens.
Goulburn has more diversity to its economy than your standard regional centre, with a big wind farm industry, the presence of the NSW Police College and also the Goulburn Correctional Centre.
Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/">hotspotting.com.au</a>. You can <a href="mailto:%20%3Cscript%20type='text/javascript'%3E%20%3C!--%20var%20prefix%20=%20'ma'%20+%20'il'%20+%20'to';%20var%20path%20=%20'hr'%20+%20'ef'%20+%20'=';%20var%20addy38821%20=%20'ryder'%20+%20'@';%20addy38821%20=%20addy38821%20+%20'hotspotting'%20+%20'.'%20+%20'com'%20+%20'.'%20+%20'au';%20document.write('%3Ca%20'%20+%20path%20+%20'/''%20+%20prefix%20+%20':'%20+%20addy38821%20+%20'/'%3E');%20document.write(addy38821);%20document.write('%3C//a%3E');%20//--%3E/n%20%3C/script%3E%3Cscript%20type='text/javascript'">email him</a> or follow him on <a href="https://twitter.com/hotspotting">Twitter.</a>
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Canberra's strong price growth extends to neighbouring cities: Hotspotting's Terry Ryder

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Dwelling value growth was flat in Sydney over April with Melbourne values up 0.5 percent over the month according to CoreLogic's Hedonic Home Value Index for April
Tim Lawless, head of CoreLogic research said the moderation in growth was due largely to a slightly negative April result in Australia’s largest capital city housing market, Sydney, where dwelling values were broadly flat (rounded up from - 0.04 percent) over the month. 
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"The result for Melbourne was also lower than previous months of 2017, with dwelling values up 0.5 percent over the month,” he said.
"Dwelling values increased by 0.1 percent across the combined capital cities in April, with housing market conditions slowing in both Sydney and Melbourne.
"The softer results across Australia’s two largest capital cities comes after dramatic capital gains were recorded over the second half of 2016 and the first three months of 2017.
"Between July 2016 and the end of March 2017, Sydney dwelling values surged 11.3 percent, whilst Melbourne values increased slightly more at 12.6 percent in the same period.
"The April results mark the weakest monthly change in dwelling values across the Sydney market since December 2015, when CoreLogic reported a 1.2 percent fall in Sydney dwelling values; the soft reading comes after dwelling values have risen by 75.1 percent over the past five years, an annual rate of growth of 15 percent over this period.
"Most other capital cities also recorded softer growth conditions in April than for the first three months of 2017.
The trends generally remain positive, with quarterly growth of 2.9 percent across the combined capitals index.
"Based on the rolling quarterly change in dwelling values, the strongest housing market is currently in Hobart, where home values have risen 5.1 percent over the past three months.
"Hobart’s housing market has staged a solid improvement over the past two years and is now the third best performing capital city on an annual basis, with dwelling values moving almost 14 percent higher over the past twelve months alone.
“We need to be cautious in calling a peak in the market after only one month of soft results.
“April, in particular, coincides with seasonal factors including Easter, school holidays and ANZAC day long weekend.
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"The softer results should also be viewed against a backdrop of an ever evolving regulatory landscape s which is firmly aimed at slowing investment and interest-only mortgage lending. Testament to this is mortgage rates which have been edging higher, particularly for investors and interest-only loans, as well as rental yields which have been hovering around record lows. The higher cost of debt, as well as stricter lending and servicing criteria, has likely dented investment demand over recent months.” 
“In a city like Sydney, where more than 50 percent of new mortgage demand has been from investors, a tighter lending environment for investment purposes has the potential to impact housing demand more than other cities."
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