Holiday home buyers who have long gravitated to Queenstown’s alpine setting are increasingly looking for low-maintenance apartments that allow them to lock up and leave, while still generating income when they’re away.

For Wendy, who had spent years visiting the Queenstown and Arrowtown region, <a href="https://www.apartments.com.au/developers/safari-group">Safari Group</a>’s Mountain Oak Apartments provided the opportunity to formalise what had previously been a recurring holiday pattern.

“We always had Queenstown in the back of our minds to buy something there as a holiday home,” she says. “We love the Queenstown and Arrowtown area.”

<img alt="From slopes to markets: Mountain Oak connects residents to the best of Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/658d4f_48c3ec1ae5df4a2cab7d23c07c7f51b3~mv2.jpg?VersionId=27K8oQ4ExDN8Yu70VHDa9Olq59XU36m3" />

Time spent visiting her sister-in-law, who owns in Arrowtown, along with regular stays at Millbrook Resort, had already shaped a strong personal connection to the region.&nbsp;

Rather than approaching the purchase purely as an investment play, Wendy’s starting point was lifestyle.

“We were more thinking about ourselves and where we could stay, and then the rental aspect was second.”

Mountain Oak Apartments, located within the masterplanned Remarkables Park precinct in Frankton, aligned with that thinking. The ability to secure the apartment with a deposit and settle on completion made the timing work.

“The fact that we could put a deposit down with the balance on completion was a bonus for us,” she explains.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/313_Livingv2_WEB.jpg?VersionId=nV229fM0ZeYpoxOrX372HyGjfwY_LR8c" />

Wendy selected a two-bedroom, two-bathroom penthouse, a configuration that supports both private use and guest flexibility.

“The two-bedroom, two-bathroom configuration appealed from both a rental viewpoint and for the ability to have friends stay while we are there,” she says.

Across the development, two-bedroom apartments range from 64sqm to 78sqm, with two-bedroom plus flexi options from 71sqm to 75sqm, each with an allocated car park. The flexi layouts introduce an additional space suited to work or hobbies, reflecting demand from buyers who split their time between leisure and remote work.

Apartments include underfloor heating in bathrooms, heat pumps to living areas, and joinery positioned to maximise natural light and mountain outlooks. The Remarkables Park precinct is known for its extended winter sunshine hours, water frontage and open views toward The Remarkables.&nbsp;

Units come in light and dark interior colour schemes.

<img alt="Mountain Oak Apartments draws holiday home buyers to Queenstown" data-entity-type="file" data-entity-uuid="fd685a22-3b95-43a1-87cb-48fdd42bb4ba" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/658d4f_f9f89107c2704ebbbe5a6b36da508cb3~mv2.jpg?VersionId=MigFIEm6b.mrANANwxSmwHvC4RdJUuyR" />

While lifestyle was the primary driver, the fundamentals of the Queenstown market added reassurance.&nbsp;

“Proximity to the airport and tourism being the main attraction all year round,” Wendy says, when asked what stood out from an investment perspective.

Mountain Oak sits just eight kilometres from Queenstown’s CBD and around a two-minute drive from Queenstown Airport.&nbsp;

For Wendy, that airport proximity carries practical value.

“The airport proximity is a bonus, we think that being so close will be an attraction for the convenience side.”

Residents are also a short drive from Coronet Peak, Jack’s Point Golf Course, New World Supermarket, Five Mile Shopping Centre, and the dining, medical, gym, cinema and library amenities within the town centre, as well as the seasonal Remarkables Market.

Importantly, the purchase does not lock owners into a single use. Mountain Oak offers the flexibility to opt for short-term visitor accommodation or longer-term residential rental management, with 365-day visitor accommodation consent in place. Owners can utilise Safari Group’s 24/7 on-site management service or appoint their own provider, and do not need to decide on a strategy immediately.

“It was a bonus that we can rent it out as well as use it for ourselves,” she says.

Additional buying options, including furniture packages and storage units available for purchase within the building, further support a lock-and-leave model suited to interstate and overseas owners.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Ext_Cam15_Sunny.jpg?VersionId=SJAROUM_1s.Tr5ciMk4EEj5oAt_Vewmv" />

Mountain Oak Apartments comprises 141 residences, ranging from one-bedroom configurations through to larger apartments and penthouses. One-bedroom apartments are currently priced from NZ$639,000, with three-bedroom options from NZ$1,299,000.

With 365-day visitor accommodation consent, the development is structured to respond to Queenstown’s established four-season tourism economy, spanning winter ski traffic and summer hiking, cycling, golf and lake-based activity.

Although Wendy acknowledges the strength of rental demand, her approach remains long term.

“We’re not planning to sell it anytime soon, so we are keen to hang on to it, but the passive income will be a bonus.”

Confidence in the developer also influenced her decision. Before proceeding, Wendy sought feedback within the local building community.

“We asked around and Safari Group had a good reputation,” she says.

Safari Group has delivered more than 2,000 hotel units and residential apartments across over 18 developments nationwide, with more than 25 years’ experience in the sector.

With completion anticipated by mid-2027, Mountain Oak is attracting a cross-section of buyers, from yield-focused investors to lifestyle purchasers seeking a foothold in one of New Zealand’s most tightly held alpine markets.

For Wendy, it represents both a future holiday base and a long-term asset within Queenstown’s year-round tourism economy.

Joel Robinson

How Mountain Oak Apartments draws holiday home buyers to Queenstown

Eduard Litver's Capitel Group is seeking to redevelop Chatswood's Mandarin Centre in the heart of the burgeoning suburb.

Capitel Group, in a joint venture with Metis Group, has filed a State Significant Development Application (SSDA) to demolish the Mandarin Centre and construct a 32-storey tower designed by Skidmore, Owings &amp; Merrill (SOM) with 325 apartments.

The 3,524 sqm site at 61A-65 Albert Avenue will also home extensive retail amenity, both at street-level and across a four-level podium.

<img alt="First look: Metis and Capitel unveil $1.2bn+ plan to redevelop Chatswood’s Mandarin Centre" data-entity-type="file" data-entity-uuid="905976ea-08cd-409f-8a4c-33a3fb8bf351" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/1771923441002.png?VersionId=f_xI2ejpxQvEm4fPqGji01RY9_AWVY6O" />

In its early stage Design Report submitted to the NSW Government's Housing Delivery Authority, SOM describes the ambition for the project as one that “aims to revitalise and reactivate an important corner of the Chatswood CBD.”

The architects note that the existing shopping centre “has a lack of vertical connection between its five levels of retail and a cumbersome pedestrian access from the street to the second-level transit connection,” framing the redevelopment as an opportunity to reconfigure circulation and better integrate with surrounding transport infrastructure.

The design adopts a single tower configuration, shaped through early testing to respond to neighbouring buildings and key public spaces.

Retail activation is concentrated at ground and lower podium levels, with a focus on food and beverage, lifestyle and wellness tenancies. The intent is to create a more permeable ground plane and improve connections between Albert Avenue, Victor Street and the Chatswood transport interchange, located within walking distance of the site.

<img alt="First look: Metis and Capitel unveil $1.2bn+ plan to redevelop Chatswood’s Mandarin Centre" data-entity-type="file" data-entity-uuid="b1e0c8cb-ee9b-41c1-97ac-0455c043b9e7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/1771923442914.png?VersionId=y.Kbo.9bzLIbOabeygYts8Uf9imI.Dqh" />

The site occupies a prominent position on the southern edge of the Chatswood CBD core, bounded by Albert Avenue and Victor Street. It sits near the rail and metro interchange and within close proximity to Chatswood Chase, Westfield Chatswood, Chatswood Oval and a range of commercial office towers and residential buildings.

Chatswood has been one, and continues to be, of the most popular suburbs for developers in recent years. The most recent tower to launch is Hyecorp's Celine on Archer Street, which followed The Anderson by Changfa and Huirong.

Soon to launch is Coronation's Archer &amp; Albert nearby the new proposal.

Chatswood boom continues with Capitel and Metis’s $1.2 billion Mandarin Centre redevelopment

Apartment development applications continue to tally up in Rose Bay following the NSW Gov's 2025 update to the Low and Mid-Rise Housing Policy.

&nbsp;

Some $200 million worth of developments were filed in the space of four weeks at the back end of last year, with the likes of Fyve, HSN, Luxcon and Fortis all seeking to creating new apartment buildings.

The latest plans are for an amalgamated 3,105 sqm site across Conway Avenue, Fernleigh Avenue, and Carlisle Street. Developer Mathieson Property is planning <a href="https://www.apartments.com.au/new-apartments/dian-2-6-conway-avenue-rose-bay-nsw-2029">Dian</a>, 70 apartments across a new eight-storey building, perched on a ridgeline within walking distance of Rose Bay Town Centre.

The State Significant Development Application (SSDA), includes one-, two-, three- and four-bedroom configurations. Over 15 per cent will be dedicated as affordable, as per the NSW Government's push for affordable housing. The 17 apartments will be managed by a community housing provider for 15 years following completion of the building.

<img alt="First Look: Mathieson Property unveils eight-storey infill housing proposal ‘Dian’ in Rose Bay" data-entity-type="file" data-entity-uuid="f99c21d9-e69d-4a23-ae35-3244cfa0b4ae" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Rose%20Bay%20site_0.png?VersionId=67KSZfecJ3fvn1ewo9xxKrneRT.Nsjwd" />

MHNDU has designed the building around three central cores, with lower-level apartments arranged to maximise corner balconies and cross-ventilation. Upper levels are configured with dual north–south aspects to capture harbour views and solar access.

Private open space is a key feature of the scheme, with generous balconies and terraces throughout. Five ground-floor apartments would include private pools, while one upper-level residence will feature a rooftop terrace and pool. A communal room and adjoining landscaped outdoor terraces provide shared open space for residents.

<img alt="First Look: Mathieson Property unveils eight-storey infill housing proposal ‘Dian’ in Rose Bay" data-entity-type="file" data-entity-uuid="dd2e275f-c270-4eb1-9a02-2b573b8eb540" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Rose%20Bay%20front_0.png?VersionId=Us5jNEG6iLFLLMfQSzVBVdILYobBj.g9" />

The site sits around 365 metres walking distance of Rose Bay Town Centre and around 312 metres from regular bus services on New South Head Road, meeting the accessible area criteria under the Housing SEPP.

In early 2025, the NSW Government implemented significant changes to its Low and Mid-Rise Housing Policy, altering planning controls to allow greater density for new apartment projects within an 800-metre walking distance of stations and town centres in the&nbsp;<a href="https://www.apartments.com.au/developments/woollahra-nsw-2025">Woollahra</a>&nbsp;Local Government Area, overriding existing local controls. Buildings are now permitted to rise up to six storeys within 400 metres of a station or centre, or eight storeys where affordable housing is incorporated, and up to four storeys within the 401 to 800 metre radius, which can increase to six storeys with affordable housing.

Mathieson Property unveils Dian Rose Bay apartment development

Lower North Shore developer <a href="https://www.apartments.com.au/developers/hyecorp-property-group">Hyecorp</a> is preparing to launch <a href="https://www.apartments.com.au/new-apartments/celine-chatswood-37-archer-street-chatswood-nsw-2067">Celine</a>, its new apartment development in Chatswood.

Set within a blue ribbon location on Archer Street, Celine will rise on a quiet, tree-lined enclave on the edge of the South Chatswood Heritage Conservation Area, a short walk from the connectivity which Chatswood is famous for.

Celine will deliver 122 one, two, three, and four-bedroom residences, designed to accommodate a broad range of buyers, from owner-occupiers to investors.

[smartcode_project:default project_id=149594 project_image_fid=362610]

Designed by&nbsp;<a href="https://www.apartments.com.au/architects/fuse-architecture-0">Fuse Architects</a>, the 29-storey tower has been shaped to respond to its Archer Street setting, with a defined podium and slender upper levels.&nbsp;

The building incorporates a two-storey residential lobby at the corner, double-height retail fronting Bertram Street, food and beverage tenancies along a through-site link, and two levels of commercial office space.&nbsp;

A landscaped pedestrian connection between Archer and Bertram streets will provide a publicly accessible link through the site, extending activity at ground level beyond the building footprint.

[smartcode_project:default project_id=149594 project_image_fid=362606]

Inside, Hyecorp is emphasising scale and flexibility. Most residences will incorporate multipurpose rooms, allowing buyers to configure additional living, study or guest space within their floorplan.&nbsp;

Kitchens have been designed with proportions more commonly associated with standalone homes, complemented by Gaggenau and Miele appliances, integrated refrigeration, Miele laundry appliances, Taj Mahal stone and bronze tapware.&nbsp;

Buyers will also have the option to tailor aspects of their home through the developer’s “Live Your Way” personalisation service.

Resident amenity will include an outdoor pool, gym and sauna, as well as barbecue and lounge areas designed for shared use. Upper levels are oriented to capture eastern outlooks towards the Sydney CBD and surrounding greenery.

[smartcode_project:default project_id=149594 project_image_fid=362633]

The location places future residents within 800 metres of Chatswood Interchange, providing access to metro and rail services, and within walking distance of Westfield, Chatswood Chase and the Chatswood Concourse. Parks including Chatswood Park and Beauchamp Park are nearby, along with a cluster of schools and private hospitals.

Celine continues Hyecorp’s focus on the Lower North Shore. The Australian, family-owned developer has been operating locally for more than 30 years, with recent projects including Audrey in St Leonards, now nearing completion, and Juliet in Roseville. With registrations expected to open soon, Celine represents the group’s latest addition to the Chatswood apartment market.

[smartcode_project_cta:default project_id=149594]

Hyecorp unveils Celine, a striking new apartment tower in the heart of Chatswood

International development company <a href="https://www.apartments.com.au/developers/spg-land">SPG Land</a> has kicked off construction of the $1.5 billion <a href="https://www.apartments.com.au/new-apartments/paradiso-place-surfers-paradise-103-ferny-avenue-surfers-paradise-qld-4217">Paradiso Place</a>, one of the highest value developments to get underway on the Gold Coast in more than a decade.

Located on a 1.15ha site stretching from Surfers Paradise Boulevard to Ferny Avenue, Paradiso Place, when completed, will deliver 845 residences across three residential towers. &nbsp;

Paradiso Place has been several years in planning by SPG, which has now pushed the green light on construction to meet pent-up demand from investors and owner occupiers.

&nbsp;

[smartcode_project:default project_id=106566 project_image_fid=185858]

The move follows minor amendments to the original design to cater to buyer demand, including the provision of more premium residential amenity, including private dining, lounge and events spaces for residents to entertain guests.

The three towers, comprising 41, 40 and 44 levels, will bring to the market 845 apartments with each tower boasting its own podium level interconnected skybridge to create a unique elevated ‘beachside village’ for residents.

[smartcode_project:default project_id=106566 project_image_fid=362500]

The <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>-designed development will bring a broad range of residences to the market, most offering ocean views and all enjoying five-star hotel amenities with world-class facilities and the convenience ground level retail precinct.

&nbsp;

Construction of Paradiso Place has been made possible by SPG’s newly established SPG Built division partnered with experienced project management group Eastview Australia, a company that has supported the development of a raft of major projects on the Gold Coast over the past two decades.

[smartcode_project:default project_id=106566 project_image_fid=362499]

“It’s a very exciting time for Paradiso Place as we start construction,” said SPG Land Chairman David Wang.

“We have spent our energy refreshing design and assembling the best team and waiting for what we believe is the right time to start construction on one of the most exciting mixed-use developments to proceed on the Gold Coast since Oracle in Broadbeach and Circle on Cavill in Surfers Paradise. &nbsp;

“The local and interstate downsizer market is getting stronger, and we see Paradiso Place as the right project for our times right now. Our company has the capacity to deliver large-scale projects, and we are thrilled to be bringing this vision to reality.”

&nbsp;

[smartcode_project:default project_id=106566 project_image_fid=185861]

SPG Invest, a company founded in Australia in 1998 with a focus on high-end real estate and premium hospitality assets, has delivered 56 projects in the Asia-Pacific region over the past twenty-five years, including The Peninsula Hotel Shanghai and the Global 188 twin-tower project in Suzhou and Cambridge Residences at Robina.

Paradiso Place will deliver a range of new apartments with two-, three- and four-bedroom layouts, as well as a collection of sub-penthouse and penthouse apartments across three levels. Prices start from $950,000.

[smartcode_project:default project_id=106566 project_image_fid=185852]

“We have a very strong vision for Paradiso Place – we are creating a unique beachside residential community where contemporary design &amp; architecture and luxury materials combine with five star residents’ amenities and the convenience of a premium retail precinct on the ground floor”, said SPG Land CEO Dr Ying Rao&nbsp;

“We are confident that the community will recognise that this is more than just another development. Paradiso Place will bring a much-needed retail precinct and lifestyle hub to northern Surfers Paradise with premium retail, lifestyle and food and beverage options,” Said Dr Rao&nbsp;

“The retail precinct is critical to enhancing the lifestyle amenity for residents and guests, so SPG will retain control of this precinct to curate a premium retail offering that will support this thriving new community.

“SPG will also retain short-term holiday letting to control premium and luxury outcomes in line with our vision.”

Construction of Stage 1 Paradiso Place is expected to be completed by end of 2029.

[smartcode_project_cta:default project_id=106566]

Construction commences on $1.5 billion Paradiso Place development in Surfers Paradise

Price Recovery

<html><body>
EXPERT OBSERVER
The CoreLogic Home Value Index results for October out today confirm a 1.2% rise in national dwelling values over the month, delivering the fourth straight month of rising values.  
The October result was the largest month-on-month gain in the national index since May 2015.
The recent gains come after a broad-based decline in housing values, with the national index declining 8.4% between October 2017 and June 2019.  
The positive October result takes national dwelling values 2.9% off their June 2019 floor, however values remain 5.7% below their peak, highlighting that despite the recent gains, home values are at a similar level to where they were three years ago.  
<img src="https://www.corelogic.com.au/sites/default/files/2019-11/index_results_as_at_20191031.png" width="600" height="283">
The strongest growth conditions continue to be centered in Melbourne and Sydney, however dwelling values trended higher across most of the capital cities as lower mortgage rates and improved credit availability spurred on buyer demand.  
Dwelling values were up across every capital city apart from Perth over the month, and based on the rolling three-month change, the only capitals where values fell were Perth (-1.7%) and Darwin (-1.2%).  
The stronger rebound in Melbourne and Sydney can be attributed to a blend of factors; tighter labour market conditions and stronger population growth relative to the other capitals, coupled with the stimulatory effect of the lowest mortgage rates since the 1950’s, and improved access to credit.  
Stamp duty exemptions for first home buyers purchasing under specific price points have added additional stimulus to housing demand.  
<img src="https://www.corelogic.com.au/sites/default/files/2019-11/change_since_peak_20191031.png" width="600" height="473">
The recovery trend in Melbourne overtook Sydney in October, with dwelling values surging 2.3% higher over the month; the largest month-on-month gain since November 2009.  
Melbourne housing values have recovered 6.0% since moving through a trough in May 2019, while Sydney values are up 5.3% since the recent May low. The smaller capitals have delivered a mixed performance, although the general theme is one of improving conditions.  
The rolling three-month change in Brisbane housing values (+1.1%) was the highest since December 2015, Adelaide (+0.1%) posted the strongest rolling quarter since December 2018, while Hobart (+1.0%) and Canberra (+2.4%) recorded the largest three month rise in values since March 2019 and May 2017.  The downwards trend in Perth and Darwin home values has continued, however both markets are showing an improvement in the trend rate of decline.  
The rolling three-month trend in Perth housing values recorded the smallest decline in fourteen months (-1.7%) and Darwin dwelling values posted a rare monthly rise in October.  
Both cities have seen dwelling values consistently trending lower since mid-2014, with Darwin down a cumulative 31% and Perth values 22% lower.  
Perth is now recording the lowest median house value of any capital city ($451,800) and Darwin house values are a close second with a median of $468,300.  
Unsurprisingly, the Northern Territory and Western Australia are also showing the highest proportion of first home buyer activity, with first time buyers not weighed down by negative equity and with the ability to take advantage of very affordable housing in these regions. 
TIM LAWLESS is the CoreLogic Head of Research
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Property values see fourth month of consecutive growth: Tim Lawless

<html><body>
EXPERT OBSERVER
With many of Australia’s capital city housing markets posting a gain in values over the past three months, a recovery trend is looking increasingly entrenched… but how long will it take for residential property values to reach a new record high if the current rate of growth continues?
If housing values continue to rise at the same rate recorded over the past three months, national dwelling values could reach a new record high in six months time.
Based on CoreLogic’s Home Value Index, national dwelling values remained 5.7% below their peak at the end of October. With values rising by 2.9% over the past three months (averaging a rise of just under 1% per month), it would take approximately 6 months for housing values to return to their historic high.
Most of Australia’s capital cities have recorded a rise in dwelling values over the past three months, with the only exceptions being Perth and Darwin, where values have been trending lower since mid-2014. While values continue to reduce, housing affordability is continuing to improve and buying opportunities are becoming more plentiful.
The same can’t be said of Hobart and Canberra which are the two capitals where housing values are already at new record highs.
Hobart values recorded only a mild correction of 1.3% from peak to trough, with the market reaching a new record high in October 2019.
Similarly, Canberra housing values recorded a peak to trough decline of only 1.5% during the downturn, and moved through a new record high in September this year.
Across the remaining capital cities, Melbourne is on track to stage a full recovery the earliest. If the current run rate of growth continues, Melbourne’s housing market will recover in January. During the correction, Melbourne housing values fell by 11.1% from peak to trough and remained 5.8% below their peak in October.
Dwelling values across Melbourne’s Inner precinct were only 1.5% below their peak in October, and this subregion is on track set a new valuation benchmark by the end of November; the earliest of any of Melbourne’s sub-regions. Despite the earlier recovery period across the Inner precinct of Melbourne, the prestigious Inner East is recording the fastest rate of growth, with values up 8.3% over the past three months and on track for a recovery within three months.
Brisbane is showing the next fastest recovery time frame; not because values are rising rapidly, but mostly because the correction in values across Brisbane was quite shallow (down 2.9% from peak to trough). The past three months of gains (+1.1% or 0.4% per month) has put Brisbane housing values on a path to recover within the next 4 months.
Sydney’s housing market is on track to post a recovery within six months, or around April next year if the current pace of growth continues. Housing values are trending higher rapidly, up 5.0% over the past three months, however the correction was more substantial across Sydney, with housing values falling by 14.9% from peak to trough. Sydney dwelling values remained 10.4% below their 2017 peak at the end of last month.
The recovery trajectory in Adelaide is looking more drawn out, with values rising at the quarterly rate of only 0.1%. Although housing values are down only 1.2% since peaking, such a sluggish rate of appreciation is likely to see a prolonged recovery phase. Despite what looks to be a long recovery period, two of Adelaide’s sub-regions have already reached new record housing values. Both the North and South of Adelaide posted a new record high for housing values in October this year.
A recovery in the housing market should help to provide some support for Australian economic conditions, boosting household wealth which will potentially lead to improved confidence and a greater willingness from households to spend, while also supporting the residential building and development sector where dwelling approvals have tanked.
On the flipside, for non-home owners, a recovery in housing values implies the affordability dividends provided by the recent housing downturn are now a thing of the past. With housing values rising rapidly in some areas, we could see less first home buyer participation in the market as affordability pressures start to dampen activity across this important sector of the market.
TIM LAWLESS is the CoreLogic Head of Research
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How long until housing values reach a new record high? Tim Lawless

<html><body>Melbourne homeowners may need to wait at least two years before the property market shows signs of growth according to Finder, Australia’s most visited comparison site.  In this month’s <a href="https://www.finder.com.au/rba-cash-rate" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable">Finder RBA Cash Rate Survey™</a>, all experts surveyed expect a cash rate hold in August (40/40), with the consensus being that no further cuts will be implemented this year. However, more than two-thirds (26, 72%) of experts forecast an increase in 2021 or 2022. Of those who weighed in on property, the majority are pessimistic about Melbourne prices increasing before April 2021 (75%, 18/24), while one-third (29%, 7/24) expect the market to stagnate until 2022 or beyond. <img src="https://mcusercontent.com/cc5e9bce699fa1d71a67cf499/images/04359ef0-2dec-4061-afa3-b17165532308.png" data-imagetype="External"> The outlook is slightly rosier for the Sydney housing market, with 38% of experts (9/24) predicting that house prices will recover before April 2021.  Graham Cooke, insights manager at Finder, said that the unpredictability of COVID-19 has sent ripples of unease through the market. “Both Melbourne and Sydney experienced double-digit growth throughout most of 2019. But widespread unemployment, travel bans and a second virus wave has caused a surge in property vacancies throughout both capitals." “Melbourne’s median house price fell by 3.5% to $881,369 between March and June 2020, and Sydney wasn’t far behind with a 2% drop during this period." “As Sydney teeters on the edge of a second major outbreak, prospects may be equally grim for homeowners here when it comes to the housing market recovery period,” Cooke said.  A surprisingly high percentage of experts and economists (42%, 11) also believe that now is a good time for homeowners to put their property on the market.  Only a quarter of experts (26%, 7) said homeowners should wait for 2 years before selling their property. Cooke said, “It is clear that there is widespread uncertainty in the market as to what prices will be in the near future." “With investors fleeing the market, banks are fighting tooth and nail for owner-occupier customers. It’s the ultimate borrower’s market. If your home loan has a 3 in front of it, you’re paying too much in 2020,” he said. </body></html>

j.ballantyne1990-6AQqhLzZaK

Melbourne property recovery will be delayed to 2021/2022: Finder.com.au

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Real estate experts from CoreLogic, Macquarie, PieLabs and the Proptech Association of Australia are joining Stone &amp; Chalk for a discussion on the real estate recovery post-COVID.
The virtual event, on Wednesday June 17 at 12pm, is free. 
<div>Chris Rolls from PieLabs, Eliza Owen from CoreLogic and Domonic Thompson from Macquarie will be on the panel.</div>
<div> </div>
<div>They will be discussing what the residential real estate market is going to look like for both tech businesses and agents as we define the 'new normal'.</div>
<div> </div>
<div>The event will be moderated by Kylie Davis, CEO of the Proptech Association of Australia..</div>
<div> </div>
<div>To register, <a href="https://events.humanitix.com/the-proptech-panel-the-post-covid-recovery" target="_blank">click here</a>.</div>
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jrobinson-rf4aSBido9

Expert discussion panel on post-COVID real estate recovery

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EXPERT OBSERVER
The recovery in Australian dwelling prices that began in mid-2019 has carried into early 2020, albeit with some moderation in monthly gains from the very strong finish to 2019.
The CoreLogic home value index, covering the eight major capital cities, rose 0.9% in Jan, a touch down on the 1.2% gain in December month and the very strong 2.0% gain in Nov. Annual price growth lifted to 5.2%yr.
Prices nationally have now recovered over two thirds of their 2017-19 correction but are still 3% below their 2017 peak. At the current pace of monthly gains, they should regain that level by mid 2020.
Several factors contributed to the turnaround in 2019 including: reduced uncertainty around housing-related tax policy following the Federal election; 75bps in official rate cuts from the RBA; and some easing in regulatory guidelines around loan serviceability assessments.
All capital cities and regional areas within states recorded gains in Jan with more evidence of price gains starting to show through outside the Sydney and Melbourne markets that have led the cycle.
<img src="https://www.urban.com.au/images/2020/2/4/Dwelling%20Prices%20CL%20JAN.JPG" alt="">
Sydney recorded a 1.1% rise taking annual growth to 7.9%yr. Prices are up 11.2% from their May 2019 low but still 5.4% below their peak in mid-2017. Houses and top and middle tier properties continue to outpace units and lower tier properties although all tiers and segments have seen a moderation in prices gains month to month.
Melbourne recorded a 1.2% rise with prices up 8.2%yr and just 1.2% below their 2017 peak.
Brisbane dwelling prices posted a solid 0.5% rise lifting annual growth to 1.1%yr, a modest pace but with the quarterly pulse in price growth running the strongest in five years.
Across the other capital city markets: Perth posted a 0.1% gain in Dec, essentially holding flat in recent months; Adelaide prices rose 0.2%, annual growth ticking up into slightly positive (+0.4%yr); Hobart recorded a robust 0.9%mth gain to be up 3.1%yr; Canberra recorded a 0.3%mth gain to be up 3.1%yr; and even Darwin posted a slight 0.1%mth gain despite prices still being down materially on a year ago (–8.1%yr).
Note that seasonal fluctuations do affect prices through the Christmas-New Year period, with gains in December and January typically a touch softer than in Nov.
That said, the moderation from the very strong November rise is consistent with our view that gains will moderate as prices in the key Sydney and Melbourne markets start to near previous peaks and affordability constraints re-emerge.
MATTHEW HASSAN is a Senior Economist at Westpac
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Australian dwelling price lift carries into 2020: Matthew Hassan

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Average dwelling values across the country rose 1.1 per cent over December and 2.3 per cent over 2019, according to property data firm CoreLogic.
The jump, led by Sydney narrowly edging out Melbourne again, reflects a four per cent quarterly rise in values, the highest quarterly increase since November 2009.
The 1.1 per cent increase was a slight slowdown from the previous two months where national dwelling values rose 1.7 per cent in November and 1.2 per cent in October.
Sydney led the way again in December, with a 1.7 per cent rise in dwelling values, over Melbourne's 1.4 per cent.
<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/2020/2/December%20Index.jpg" alt="">
CoreLogic head of research Tim Lawless said the slight reduction in dwelling values increases would suggest that the pace of capital gains may have been dampened by higher advertised stock levels or worsening affordability pressures through early summer.
“The positive year-end results mask what has been a year of two distinct halves -we saw capital city dwelling values fall by 3.8% over the first six months of 2019 and then rebound by 7.0% over the second half of the year.
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“The housing value rebound was spurred on by lower mortgage rates, a relaxation in borrower serviceability assessments, improved housing affordability and renewed certainty around property taxation policies post the federal election. 
"Lower advertised stock levels persisted providing additional upwards pressure on prices amidst rising buyer activity.” 
Breaking it down in to houses and apartments, houses drove the value increase in Sydney and Melbourne.
Sydney houses, after <a href="/expert-insights/buying/sydney-house-values-jump-over-three-percent-in-november-corelogic">recording a three per cent gain in November</a>, saw a two per cent rise in December, where Melbourne, who had a 2.4 per cent gain in November, saw a 1.7 per cent rise in December.
<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/2020/2/December%20Quarter%20CoreLogic.jpg" alt="">
 
Hobart house values dropped 0.2 per cent, a stark contrast to unit values which rose 1.9 per cent.
Perth values were steady across houses and units after recording an <a href="/expert-insights/buying/perth-records-first-monthly-dwelling-value-increases-in-two-years-corelogic">increase last month for the first time in two years</a>.
Apartment gains also slowed a touch, Sydney up one per cent after 1.8 per cent gains in November, and Melbourne's apartment values rose less than one per cent for the first time since prices started bouncing back in July.
Dwelling values at the end of 2019 are 3.1 per cent below their record highs in October 2017.
Sydney and Melbourne recorded the highest annual capital gain, with both cities posting a 5.3 per cent rise in dwelling values over the year.
“A nominal recovery in housing values implies home owners are becoming wealthier, which may also help to support household spending," Tim Lawless added.
"However, the flipside is that housing affordability is set to deteriorate even further as dwelling values outpace growth in household incomes, signaling a set-back for those saving for a deposit.”
Five of the eight capital cities ended the year with price rises.
 
 
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Real estate values up four per cent over December quarter, the biggest quarterly rise since 2009

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The recent trend across the regional markets of Australia has seen a clear improvement in the performance of housing across the major centres adjacent to Sydney and Melbourne, as well as rising values in many of the coastal lifestyle markets, according to the latest CoreLogic home value index for October.
Conversely, the report found drought-affected areas have seen a drop in demand for housing with values falling sharply across many of the rural sub-regions associated with crops and grazing.
Mr Lawless said focusing on housing market conditions across the broad value-based cohorts highlights that the market recovery is being led by the most expensive quarter of the market, although values are also rising across the more affordable strata as well, just not as rapidly.”
"Across the combined capital cities, values within the top quartile were up 5.3% over the three months ending October 2019, while the broad middle of the market was up 2.6% and the lower quartile was up 0.7%."
“These ‘macro’ figures are influenced by stronger housing market conditions in Sydney and Melbourne where housing values are inherently higher, however the trends are reflected at a sub-regional level as well,” Mr Lawless said.
Over the three months ending October 2019, the fastest appreciation in capital city home values has been across the top quartile of Melbourne and Sydney where values were 7.1% and 5.9% higher.
The next best performing sectors were also in Sydney and Melbourne, with the broad ‘middle’ of the market recording a 4.6% rise in Sydney and 4.5% rise in Melbourne.
The lower quartile of Sydney and Melbourne dwelling values were the sectors that recorded the third largest rise over the past three months, up 3.2% across Sydney’s lower quartile and 3.8% higher across Melbourne’s lower quartile.
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Sydney and Melbourne property markets take top three spots in recovery: CoreLogic

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There has been a 1.2% rise in national dwelling values over the month, the fourth straight month of rising values, according to the CoreLogic Home Value Index results for October.
The October result was the largest month-on-month gain in the national index since May 2015. The recent gains come after a broad-based decline in housing values, with the national index declining 8.4% between October 2017 and June 2019.
CoreLogic noted that the positive October result takes national dwelling values 2.9% off their June 2019 floor, however values remain 5.7% below their peak, highlighting that despite the recent gains, home values are at a similar level to where they were three years ago.
<img src="https://www.urban.com.au/images/2019/11/1/CL%20Index%20Results%20OCT.JPG" alt="">
 
The strongest growth conditions continue to be centered in Melbourne and Sydney, however dwelling values trended higher across most of the capital cities.
Dwelling values were up across every capital city apart from Perth over the month, and over the past three months, the only capitals where values fell were Perth (-1.7%) and Darwin (-1.2%).
According to CoreLogic research director Tim Lawless, the stronger rebound in Melbourne and Sydney can be attributed to a blend of factors; tighter labour market conditions and stronger population growth relative to the other capitals, coupled with the stimulatory effect of the lowest mortgage rates since the 1950’s, and improved access to credit.
He said Stamp duty exemptions for first home buyers purchasing under specific price points have added additional stimulus to housing demand.
Melbourne housing values have recovered 6.0% since moving through a trough in May 2019, while Sydney values are up 5.3% since the recent May low. 
CoreLogic's October report said, "the downwards trend in Perth and Darwin home values has continued, however both markets are showing an improvement in the trend rate of decline."
"Both cities have seen dwelling values consistently trending lower since mid-2014, with Darwin down a cumulative 31% and Perth values 22% lower."
"Perth is now recording the lowest median house value of any capital city ($451,800) and Darwin house values are a close second with a median of $468,300."
"Unsurprisingly, the Northern Territory and Western Australia are also showing the highest proportion of first home buyer activity, with first time buyers not weighed down by negative equity and with the ability to take advantage of very affordable housing in these regions," it concluded.
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