<a href="https://www.apartments.com.au/developments/broadbeach-qld-4218">Broadbeach</a> offers plenty of reasons to live vertically, but moving from a substantial family home into an apartment can expose the compromises of high-density living. Privacy, room for guests and usable living space tend to matter more when an apartment is intended as a permanent home rather than an occasional coastal base.

A typical residential floor at <a href="https://www.apartments.com.au/new-apartments/the-eveleigh-broadbeach-7-9-surf-parade-broadbeach-qld-4218">The Eveleigh</a>, on Surf Parade,&nbsp;contains just four apartments. The 94-residence development by <a href="https://www.apartments.com.au/developers/hirsch-faigen">Hirsch &amp; Faigen</a> is predominantly made up of expansive three-bedroom homes, with a limited collection of half-floor penthouses above.

Across the apartment floors, <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> has used the relatively limited number of residences to give each home greater access to natural light and outlook. Living spaces extend towards full-height glazing, while a series of bay windows frame selected views across the Pacific Ocean, city and hinterland rather than treating the building edge as a continuous wall of glass.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360965]

“The apartment floors deliver a collection of homes that embrace controlled outlook via a series of bay windows deliberately framing moments of view,” Rothelowman Director Kim Lowman said.

From outside, those projecting forms contribute to the tower’s faceted profile. Strong horizontal and vertical elements establish its proportions, while the changing position of the sun alters the light, shadow and reflection across the façade throughout the day.

The same attention moves inside the apartments, where the material palette combines warm timber, natural stone, metallic detailing and softer curved forms. Kitchens sit within the main living zone, with stone island benches, integrated joinery and European appliances, before the living areas extend towards the glazing and the outlook.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360981]

Three genuine bedrooms provide room to accommodate family and guests, while two secure car spaces and storage address some of the practical considerations that can become more noticeable when moving from a larger home. Feedback from the display suite has centred on the warmth and restraint of the interiors, with buyers commenting that the residences feel like homes rather than conventional coastal apartments.

A limited collection of half-floor penthouses occupies the upper levels, increasing the scale of the living spaces and adding private balconies and elevated finishes. From this position, the outlook extends between the ocean and hinterland.

Outside the private residences, The Eveleigh separates its shared spaces between the podium and rooftop. The podium is centred on wellness, with subtropical landscaping surrounding a swimming pool and pool terrace, yoga garden, private gymnasium, sauna and hot and cold plunge facilities. Landscaped retreats and pavilions provide additional places to sit away from the main recreation areas.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360966]

Higher in the building, a rooftop pavilion and private dining suite sit alongside resident lounge, barbecue and outdoor dining areas, opening towards panoramic views across the ocean, city and hinterland.

“Buyers are no longer just looking for an apartment, but a lifestyle where they can relax, reset, and enjoy a balanced way of living,” Hirsch &amp; Faigen Director of Sales Matt George said.

Interest to date has come from established owner-occupiers and interstate lifestyle purchasers, including buyers planning a future move to the Gold Coast. Many are coming from larger homes and want to reduce ongoing maintenance without giving up space for family and guests, privacy, two car spaces or the ability to entertain at home.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360969]

Much of that daily life can also take place beyond the building without requiring a drive. Kurrawa Beach and Pratten Park are an easy walk from Surf Parade, while Pacific Fair, Oracle Boulevard, The Oasis, restaurants, cafés, entertainment and public transport are also within walking distance.

The Eveleigh is Hirsch &amp; Faigen's fourth Gold Coast development since entering the market in 2021, following The Hemingway at Palm Beach, The Emerson at Kirra and Yves at Mermaid Beach. Each of the preceding projects sold out before completion.

“Broadbeach had been on our radar throughout our time operating on the Gold Coast,” the developer said. “Following our projects in Palm Beach, Kirra and Mermaid Beach, Broadbeach represented the natural next step for the business.”

The Surf Parade site brought together proximity to the beach, protected coastal outlooks and walkability to dining, shopping and recreation. Hirsch &amp; Faigen also identified the street as an emerging premium residential address, with enough separation from Broadbeach's busier destinations to retain a quieter environment at home.

The Eveleigh is now under construction by Maxcon, with completion forecast for mid-2028. Three-bedroom residences are currently available from $2.87 million.

[smartcode_project_cta:default project_id=149670]

Joel Robinson

The Eveleigh brings house-like apartments to Broadbeach

A long-stalled Campbelltown development site is back in play, with new plans for 139 apartments set to supersede a mixed-use scheme approved almost a decade ago but never built.

The new proposal for 28 Cordeaux Street would deliver 116 market and 23 affordable apartments in a part 14-storey building, bringing a substantial new project into a Campbelltown market where new apartment supply remains limited.

Plans have been filed over the 3,092 sqm corner site at Moore-Oxley Street, around 600 metres from Campbelltown Railway Station and the city-centre retail core.

The site already carries a mixed-use residential approval dating to 2016. Doroch Architects has now been engaged on a larger replacement scheme, which is progressing as a State Significant Development Application following a Housing Delivery Authority determination in August 2025.

The apartment mix comprises 39 one-bedroom, 72 two-bedroom and 28 three-bedroom residences. Two-bedroom apartments make up just over half of the project, while three-bedroom homes account for 20 per cent.

<img alt="First look: New 139-apartment plans revive long-stalled Campbelltown city centre site" data-entity-type="file" data-entity-uuid="136dd5b9-3791-4da6-9e31-76f533f5b4de" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Campbelltown%20da2.png?VersionId=LgOSy9nwf5u.MGswBBwaGGxuX8QpHSl_" />

Of the 139 apartments, 23 will be delivered as affordable housing under the in-fill affordable housing provisions of the Housing SEPP. The affordable component represents 15 per cent of the residential gross floor area and will be managed by a registered Community Housing Provider.

Doroch has sought to break the scale of the building into two distinct elements, with a masonry podium of around four storeys establishing the street edge before the residential tower steps back above.

The corner position has shaped that approach. Cordeaux Street faces toward the commercial and civic centre, while Moore-Oxley Street leads into the lower-scale residential neighbourhood to the south, and the design verification report describes the site as "bridging the commercial core to the north and established residential areas to the south."

The podium will be expressed predominantly in face brick, while the upper levels shift to brushed and grooved concrete cladding with darker metal detailing. Recessed sections, deep balcony edges and landscaping break down the upper form, with an approximately 11.8-metre setback to the northern boundary addressing the adjoining St Peters Anglican School.

<img alt="First look: New 139-apartment plans revive long-stalled Campbelltown city centre site" data-entity-type="file" data-entity-uuid="c8b3d2d3-c561-4bfc-a5d9-a68c0c10dac1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Campbelltown%20da1.png?VersionId=AeAEyJU02Gk2k5noUj2StziCvdQ7fW4B" />

Campbelltown has been starved of new residential developments in the last decade.

The only other notable development set to come to market this year is ALAND's Queen Square, a mixed-use precinct on over two hectares that will comprise apartments above a vibrant ground-level retail and hospitality dining precinct.

First look: New 139-apartment plans revive long-stalled Campbelltown city centre site

First Look: Sherlock Construction pitches apartments for low-rise Deception Bay

Queensland builder-developer MAYD has revealed the first look at its major North Kirra beachfront development, lodging amended plans that reduce the number of apartments and increase the proportion of larger residences.

The project is planned across a substantial 4,742 sqm amalgamated site spanning seven lots at <a href="https://www.apartments.com.au/new-apartments/2-6-pacific-parade-bilinga-qld-4225">2-6 Pacific Parade</a> and 27-33 Golden Four Drive in Bilin​ga, directly opposite Nor​th Kirra Beach.

<a href="https://www.apartments.com.au/developers/mayd-group">MAYD</a> secured the site for $32.5 million in 2025, in what was one of the Gold Coast's largest property transactions of the year.

The development will be delivered across two stages, with the first stage carrying an estimated gross realisation value of around $360 million.

The latest amendments seek to reduce the overall apartment count and shift the project further toward the owner-occupier market, with larger residences designed for buyers wanting considerably more space than traditionally offered in a beachfront apartment.

The residential mix will include townhomes, oversized two-bedroom apartments, substantial three-bedroom residences and four-bedroom homes.

MAYD has appointed Cera Stribley to lead the architecture and interiors, with the Melbourne-based design practice drawing on the beachfront setting through a series of ocean-facing terraces and heavily landscaped balconies.

Strong horizontal forms and curved balconies will define the exterior, with subtropical landscaping integrated throughout the building to soften the built form and increase the connection between the residences and the beachfront.

The project will also include an extensive collection of resident wellness and lifestyle facilities, continuing the broader shift across the Gold Coast's luxury apartment market toward larger homes supported by resort-style amenity.

<img alt="MAYD" data-entity-type="file" data-entity-uuid="d1bcbb05-e659-4b47-8bd4-1e595315e2ad" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%202.05.03%E2%80%AFPM.png?VersionId=jj0XEud1X1DuLt7_KyElhjMdZGOXmLHP" />

MAYD Founder Todd Mould said North Kirra was increasingly appealing to buyers attracted to the more established, lower-density character of the southern Gold Coast.

"North Kirra presents one of the most compelling luxury residential opportunities currently emerging in Australia, combining absolute beachfront with the character and authenticity that buyers are increasingly seeking, and the same sense of tight-knit community that defined Burleigh and Currumbin perhaps 10 or 15 years ago," Mould said.

"With Gold Coast Airport on its doorstep, it also offers a level of accessibility that broadens its appeal across almost every market demographic."

The project comes as the southern Gold Coast continues to attract an increasing share of high-end apartment development and buyer activity.

Kirra in particular has emerged as one of the region's more tightly held beachfront markets, with its relatively low-density character, established surf and hospitality scene and proximity to Gold Coast Airport differentiating it from the higher-density markets further north.

Mould said those characteristics had informed the approach MAYD and Cera Stribley had taken to the project.

"We've worked closely with Cera Stribley to create a vision that is deeply connected to its surroundings," he said.

"Inspired by the coastline itself, the architecture has been shaped around space, privacy and resort-style living, creating a collection of homes that reflects the next generation of luxury on the southern Gold Coast."

MOTIV Managing Director Carly Cottam, who has been appointed to market the project, said buyer attention had continued to move south along the Gold Coast.

"Purchasers who may once have defaulted to Broadbeach, Main Beach or Surfers Paradise are increasingly recognising the value of a genuine beachfront location that offers lower density, strong amenity and a more established sense of community," Cottam said.

"Kirra has a powerful combination of growing demand and genuine scarcity. Beachfront supply is inherently constrained, the area remains relatively low density, and buyers are increasingly placing a premium on locations that feel established, uncrowded and authentic rather than heavily developed."

Cottam said the proximity to Gold Coast Airport was also proving increasingly important for interstate and second-home buyers.

"Being minutes from Gold Coast Airport makes it particularly compelling for interstate buyers, frequent travellers and second-home purchasers who can access an authentic coastal lifestyle almost immediately after stepping off a flight."

The acquisition takes MAYD's active development portfolio to more than $500 million, with the North Kirra project representing one of its largest undertakings to date.

MAYD is targeting an early 2027 launch.

First look at MAYD's North Kirra mixed-use precinct

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Castle Hill, the longtime hub of the Hills District, has been one of the major beneficiaries of Sydney's Metro expansion, with improved connectivity helping drive continued population growth, development and buyer demand across the Hills District.

But despite that growth, the suburb has seen relatively few major new apartment projects brought to market over the past 18 months.

Hills District developer Reve Group is looking to fill that gap with <a href="https://www.apartments.com.au/new-apartments/nova-r-ve-castle-hill-2-garthowen-crescent-castle-hill-nsw-2154">Nova Rêve</a>, a major new mixed-use precinct on the corner of Garthowen Crescent and Old Castle Hill Road, a short walk from Castle Hill Metro Station and Castle Towers.

[smartcode_project:default project_id=152737 project_image_fid=377679]

The project will comprise three residential towers alongside a hotel, restaurants, cafes and a skybar, more than 1,600 sqm of ground-floor retail and almost an acre of landscaped gardens.

It represents the largest project undertaken by Reve Group, the development arm of the Kassis family, which has been building across the Hills District for more than 30 years through Kassis Homes.

[smartcode_project:default project_id=152737 project_image_fid=377675]

Nova Rêve also represents a significant step up from the family's first apartment development, Grand Rêve, which was delivered nearby on Garthowen Crescent.

Grand Rêve introduced larger, house-like apartment layouts and premium inclusions including Wolf and Sub-Zero appliances to the Castle Hill market.

Nova Rêve takes that approach to a precinct scale, combining the residential component with hospitality, retail and substantial public and resident landscaping.

[smartcode_project:default project_id=152737 project_image_fid=377685]

Reve Group Managing Director Sam Kassis said the project reflected the family's three decades of building in the Hills, which has evolved from trophy homes on quarter-acre blocks to larger-scale apartment development.

"Grand Rêve was our first apartment project here and it showed us what this pocket of Castle Hill could be. Nova Rêve is the refinement of that idea: not just apartments, but a place the whole suburb can use," Kassis said.

A key part of that approach is the hotel, which has been designed to operate as an amenity for the wider Castle Hill community rather than solely hotel guests.

It will include restaurants, cafes, skybars and all-day dining, alongside conference and event facilities catering to business functions, community groups and private events.

At ground level, more than 1,600 sqm of shops and cafes will open onto the surrounding streets and landscaped areas.

Almost an acre of gardens designed by Land and Form Studios will run through the precinct, incorporating pathways, seating, barbecue areas and children's play spaces.

[smartcode_project:default project_id=152737 project_image_fid=377680]

Reve Group's Romio Georges said creating an active ground plane had been central to the planning of Nova Rêve.

"There are gardens with pathways, barbecues, seating and play areas, shops and cafes opening onto the street, and a hotel with restaurants and a skybar that anyone in Castle Hill can walk into," Georges said.

The project's elevated position on one of Sydney's highest ridgelines will also provide apartments with outlooks toward the Sydney skyline, surrounding parkland and the Blue Mountains.

More than 80 per cent of the apartments will occupy corner positions, with Turner responsible for both the architecture and interiors.

&nbsp;

[smartcode_project_cta:default project_id=152737]

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Nova Rêve arrives as Reve Group bets on Castle Hill's next growth phase

Property 2019

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EXPERT OBSERVER
In the 2018 year, the number of dwelling approvals fell by 5.5 per cent to 210,772. The biggest decline was in Western Australia (down 16.9 per cent).
The biggest lift in approvals was in the ACT (up by 64.3 per cent).
NSW and Victoria dominate the list of regions with both the biggest gains and declines in approvals.
The approvals data has implications for banks, retailers, developers, building and building material companies.
<img src="https://www.urban.com.au/images/2019/2/14/CS%201.JPG" alt="">
What do the figures show and what does it all mean?
Australia is well past the peak of home building activity in the current cycle. In the year to August 2016, 242,779 approvals were granted by local governments to building new homes – the largest ever total for dwelling approvals in a 12- month period. In previous cycles, annual approval numbers had not passed 200,000 approvals.
In 2018, almost 211,000 approvals were granted to build new homes. This figure is still historically high. So while approvals have retreated from highs, there is still a lot of building being done and will be done over 2019.
The number of homes currently being built across Australia is only just below record highs.
The building cycle tends to start with council approval to build the new dwelling. Finance is secured around the same time. And the actual building phase can take over a year in the case of high-rise apartment developments or 6-12 months in the case of free-standing homes.
Different trades and businesses are impacted a different points of the business cycle. So knowledge of which regions are expanding at any point in time is important.
<img src="https://www.urban.com.au/images/2019/2/14/CS%202.JPG" alt="">
As pent-up demand for homes is met, the building cycle will change from new construction to renovation activity. That assumes that people are less inclined to move home when home prices are softening and rather choose to extend or enhance their current home.
The Hills Shire (NSW), the ACT and the Central Coast (NSW) were stand-out regions in 2018 in terms of building activity.
Encouraged by infrastructure developments, dwelling approvals in the Hills Shire largely doubled in 2018.
The Australian Bureau of Statistics (ABS) classifies around 570 local government areas (LGAs).
CommSec has ranked the LGAs by the number of dwelling approvals in 2018 and then sorted to find those big building regions with the fastest and slowest growth over 2018.
While home building work will remain firm in 2019 in regions like the Hills Shire in NSW, Logan in Queensland and Geelong in Victoria, capital city apartment construction is set to slow. Dwelling approvals in Sydney fell by 60 per cent in 2018 and fell by 37 per cent in Melbourne.
<img src="https://www.urban.com.au/images/2019/2/14/CS%203.JPG" alt="">
In 2018, there were 73 LGAs in Australia where there wasn’t one approval to build a new home. There were 173 regions with fewer than 10 homes approved for construction. The 30 regions with the largest number of dwelling approvals account for half of all new approvals in Australia. 
The big building regions in 2018 were Blacktown (NSW), Wyndham (Victoria), Brisbane City (Queensland), Port Adelaide-Enfield (South Australia), Swan (Western Australia), Clarence (Tasmania) and Palmerston (Northern Territory). 
What are the implications for interest rates and investors? 
Housing supply has responded to the lift in demand. In other words more homes have been built to meet the increasing demand for accommodation from firm population growth. With more supply or choice, buyers have greater negotiating power over vendors (individual owners and developers).
<img src="https://www.urban.com.au/images/2019/2/14/CS%206.JPG" alt="">
As a result, there is downward pressure on prices – especially prices that lifted to unsustainable levels in Sydney and Melbourne suburbs when demand was well in excess of supply. 
But interest rates remain low and the job market is healthy and these factors will act as fundamental supports for home prices. As is always the case, housing moves from periods of under-supply to over-supply. Over the coming year new apartment developments will be completed and some buyers may see the market value of their acquisition is below purchase price.
Buyers, lenders and developers will need to work through this ‘digestion’ process. 
Changing conditions in housing markets are being watched carefully by the Reserve Bank (RBA). Some investors may also need to adjust desired rents in order to attract tenants. First home buyers and budding tenants will be amongst the winners in the softening market conditions. 
<img src="https://www.urban.com.au/images/2019/2/14/CS%204.JPG" alt="">
The RBA noted in the Statement on Monetary Policy: ..”the number of building approvals has been trending lower for more than a year to be around its lowest level since 2013.
"Information from the Bank’s liaison program also points to a slowing in the earlier stages of residential development over the past year."
"In particular, demand for new, off-the-plan apartments in Sydney and Melbourne has declined, driven by weaker demand from domestic investors and foreign buyers. Greenfield land sales have also fallen over the past year. Many property developers cite tighter access to credit as a dampening factor.” 
<img src="https://www.urban.com.au/images/2019/2/14/CS%205.JPG" alt="">
In terms of prices &amp; rents the RBA said: “A large supply of new dwellings in some cities has also placed downward pressure on housing price growth and rents. In general, supply has been concentrated in cities where there has been relatively strong population growth, which should continue to support the underlying demand for new dwellings."
"In the rental market, the national vacancy rate is a little below average. This partly reflects the low vacancy rate in Melbourne as population growth continues to absorb the supply of new dwellings.
"In contrast, the vacancy rate in Sydney has risen, particularly in the middle-ring suburbs as new supply has come online; advertised rent inflation has declined. In other capital cities, rental vacancy rates have fallen and advertised rents have generally risen.”
<img src="https://www.urban.com.au/images/2019/2/14/CS%207.JPG" alt="">
The Reserve Bank recently changed interest rate policy from a tightening bias to a neutral stance.
One reason for the change was the “uncertainty” about how the changing housing conditions will affect consumer spending and employment. 
To date, builders, developers and lenders haven’t reported major issues with defaults or delinquencies from new developments.
Mirvac recently reported that it settled 1,067 residential lots in the six months to December and was on track to meet the target of 2,500 residential lot settlements in 2018/19.
Mirvac noted “Defaults in the period remained below 2 per cent.” AV Jennings noted a low level of unsold stock and didn’t note any major issues with settlements.
CommSec expects interest rates to be unchanged for the foreseeable future.
CRAIG JAMES is the Chief Economist of CommSec
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cjames-5S2v74qSNK

Dwelling approvals in Sydney fell 60 per cent in 2018: CommSec's Craig James

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GUEST OBSERVER
The December 2018 housing finance figures released by the Australian Bureau of Statistics show the number of loans for housing continues to decline.
Overall the figures for December 2018 show, in trend terms the number of owner-occupied finance commitments decreased by 0.1 per cent – the fifteenth consecutive month of decreases.
If refinancing is excluded, in trend terms, the number of owner-occupied finance commitments decreased by 1.2 per cent –also the fifteenth consecutive month of decreases and the lowest since April 2013.
In trend terms decreases were recorded in Victoria, New South Wales and Queensland.
The largest decrease of 1.3 per cent was in Queensland. South Australia, Northern Territory and the Australian Capital Territory were unchanged. Western Australia and Tasmania had increases with the largest of 0.5 per cent in Tasmania.
The value of investment housing commitments decreased by 2.5 per cent in December, in trend terms, and is the lowest since 2012 and less than half of the April 2015 peak.
In trend terms, the number of established dwellings purchase commitments decreased by 1.2 per cent while the purchase of new dwellings decreased by 0.1 per cent and new dwelling construction fell by 1.2 per cent.
The proportion of first home buyers, as part of the total owner-occupied housing finance commitments decreased in December to 17.7 per cent from 18.3 per cent in November and the number of loans to first home buyers decreased by 18.8 per cent.
The continued decline in housing finance reflects the slowing market as well as the APRA restrictions on investors, which went too far for too long, the fallout from the Royal Commission into Banking and concerns about changes to property taxation and its impact should there be a change in Government.
There is a clear risk that the decline in activity in the residential property market will become a major drag on the economy. With the Government formulating its 2019 Budget and its response to the Hayne Royal Commission the contribution the property sector makes to the economy should be at the forefront of its considerations.
ADRIAN KELLY is the President of Real Estate Institute of Australia (pictured)
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j.ballantyne1990-6AQqhLzZaK

No bright spots in housing finance numbers: REIA's Adrian Kelly

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Villa World said while sales for the period HY19 were down, however property settlements for the period were generally consistent with the previous period.
Managing Director and CEO Craig Treasure (pictured) said, “The current challenging market conditions are part of the cyclical nature of the property industry."
"However, Villa World has a long history of successfully navigating through market cycles and has a forward strategy focused on helping people reach home and long-term value creation."
"We believe Villa World is well placed to capitalise on opportunities that will arise for astute acquisitions and partnering arrangements."
"In the current market conditions, we have invigorated our sales strategy to highlight our value product offering in our sector," he stated
The Company made a $17.6 million after tax HY19 profit, compared with $17.3 million for the same period last year.
Queensland flagship projects including The Meadows (Strathpine), Killara (Logan) and Arundel Springs (Gold Coast) "sold well"
Although Victoria's property market has moderated, some of Villa World’s Victorian projects have remained consistent, notably the Wollert joint venture project.
Villa World said as previously stated, delivery times on Victorian projects are taking longer than anticipated.
Several stages in the Company’s Victorian projects are scheduled for completion in late FY19, with some likely to extend into HY20.
They belive Market conditions and the availability of customer credit are likely to remain challenging for the remainder of FY19. Plus the upcoming federal and NSW elections may also lead to increased customer uncertainty.
GNet tangible assets at 31 December 2018 represented $2.31 per share.
Mr Treasure said, “the Company has conviction that its projects are located where people want to live, its homes are priced within reach of its customers, and its turnkey homes offer a unique customer experience."
"With sound financial fundamentals, prudent capital management and a committed team, the company has the foundations and resources to provide sustained success and shareholder value beyond the current sector dynamics," he concluded.
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Residential house and land developer Villa World sales down in HY19

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<div>
EXPERT OBSERVATION
Housing finance approvals posted a very weak finish to 2018 with sizeable declines across all components.
The headline number of owner occupier loans fell 6.1%, much weaker than the consensus forecast of a 2% decline. Ex-refi, the number of approvals were down a hefty 8.2% in the final month of 2018, to be off 14.4% for the year. Notably, what was initially an investor-led cycle is now seeing clear weakness in owner occupier activity – both the value and number of loans.
The value of investor loans also declined, a 4.8% fall taking this segment down 21.8% for the year. Note that survey changes mean this measure now excludes investor loans for ‘construction of dwellings for rent or resale’ and for ‘purchase of dwellings by others for rent or resale’ – components that previously accounted for around 15% of the value of investor approvals. Helpfully, the ABS also now provides an ‘ex refi’ measure for the value of investor loans, which dropped 4.6% in the month but is down more substantially by 27.8% over the year.
The combined total value of housing finance approvals including investors but excluding refi declined 5.9%mth to be down 19.8%yr.
Construction finance approvals fared a little better, recording a 2.4% decline but still down over 10% for the full year. Approvals for the purchase of newly built dwellings, including 'off the plan apartment sales' were down more sharply, –5.5%mth, –20.2%yr.
All major states recorded declines in the December month, the number of owner occupier approvals excl refi down 6.1% in NSW, 10.4% in Vic, 6% in Qld, 7% in WA and 3.4% in SA. The value of dwelling approvals including investor loans and excluding refi (estimates of which are now provided on a more timely basis) confirm the wide spread as well with large declines in NSW, Vic, Qld and WA, all down around 20%yr.
There were some notable details in the mix. First home buyer activity, a segment that has been supported by state government incentives, are also starting to show signs of slowing. However, the detail around average loan sizes suggests the biggest decline is coming in the 'upgrader' segment, suggesting changes to borrower assessments and perhaps the impact of lower prices on existing home equity may be impacting.
All up, the December finance approvals data shows a very weak finish to 2018 with weakness coming across the board, confirming the message from other market measures.
MATTHEW HASSAN is a senior economist at Westpac
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Matthew_Hassan-HHWHptmrw4

Australian housing finance had a broad-based fall late 2018: Matthew Hassan

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EXPERT OBSERVER
The Governor chose to repeat the statement’s concluding paragraph which explains the policy decision with the same words that he used in December despite lower forecasts and recognition of downside risks.
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<div>
<div>
As expected, the Board of the Reserve Bank decided to leave the cash rate unchanged at 1.5%. At the February meeting, the Board discusses the executive’s revised forecasts which will be released in the February Statement of Monetary Policy on February 8.
However, in recent statements, the Governor has provided readers with growth and inflation forecasts and this was repeated in today’s statement.
For 2019, forecast growth has been revised down from 3 ¼ per cent to 3 per cent, and 2020, from 3 per cent to “a little less” due to slower growth in exports of resources.
It is important that this 3 per cent growth forecast is above the assessed trend rate of 2 ¾ per cent, and the implied 2020 forecast is likely to be around trend.
If a central bank is forecasting above trend growth, then it is highly unlikely to adopt an easing bias, and indeed the chances are still likely that the Governor will persist with his assessment that even though rates are likely to remain steady for some time, the next move is likely to be up.
The inflation forecasts were also revised with the underlying inflation forecast for 2019 reduced from 2 ¼ per cent to 2 per cent, while the 2020 forecast remains at 2 ¼ per cent. Hence the Bank is maintaining the view that inflation will gradually move into the 2 to 3 per cent band, although it will take somewhat longer than previously expected.
There are good reasons why the Bank lowered its growth forecasts. Firstly, while it still assesses the outlook for global growth as “reasonable”, it recognises that “downside risks have increased”. Secondly, it has made some significant changes around the household sector and housing.
For some time, Westpac has argued that the fall in house prices in Sydney and Melbourne will be associated with a negative wealth effect.
In the RBA’s previous writings, they tended to dismiss any wealth effect, but in today’s statement the Governor notes “the main domestic uncertainty remains around the outlook for household spending and the effect of falling housing prices in some cities”.
In linking house prices with household spending, he appears to be recognising the risk of a negative wealth effect.
Westpac has also argued that residential housing construction will be a drag on growth in both 2019 and 2020. The RBA has not supported that view, referring to a strong pipeline. But, recent falls in dwelling approvals, including for detached housing, clearly point to a significant drag on growth from the housing construction downturn.
The statement continues to point to “rising business investment” which in the December statement was linked to “business conditions are positive”. The Governor has obviously decided that the strong negative signal from the recent NAB business survey was insufficient at this stage to review the business investment outlook.
Given that the survey was taken in early January, Westpac thinks that approach is reasonable but there will be considerable interest to see whether future surveys send a more positive signal.
The Governor maintains his positive rhetoric around the labour market and confirms its forecast that the unemployment rate will fall to 4 ¾ per cent by the end of 2020. He also expects a further lift in wages over time, supporting household incomes.
Financial conditions in the US attract some attention, although the recent sharp decline in equity prices is noted to have been partly reversed. He also observes that market participants no longer expect the FOMC to be tightening monetary policy.
The Sydney and Melbourne housing markets are assessed as “going through a period of adjustment”, and credit conditions have tightened.
This is the approach which he has taken in previous statements but it is very significant that he has begun to recognise a potential wealth effect, meaning that the price adjustment may have implications for the real economy.
With a more cautious view on the wealth effect and recognition that dwelling construction will contract, Westpac’s GDP forecast for 2019 and 2020 is 2.6%, with recent data releases pointing to downside risks even for those modest numbers.
Finally, the Governor chose to repeat the concluding paragraph which explains the policy decision with the same words that he used in December despite lower forecasts and recognition of downside risks.
Notably, it includes the sentence “Further progress in reducing unemployment and having inflation return to target is expected, although this progress is likely to be gradual.”
Conclusion
With these revised forecasts, the RBA is clearly less comfortable with its previous positive outlook. Its growth forecasts remain significantly above Westpac’s own view.
With our forecasts of 2.6% growth in 2019 and 2020, it still seems that the more likely outcome will be for steady rates, even if as we expect, the RBA will eventually have to adopt growth forecasts much closer to Westpac’s current view.
Westpac confirms its long-held forecast that the RBA cash rate will remain on hold in 2019 and 2020.
BILL EVANS is the Chief Economist for Westpac
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Reserve Bank lowers growth and inflation forecasts but remains confident: Bill Evans

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EXPERT OBSERVER
Housing weakness in late 2019 was clearly not confined to just turnover and prices with new dwelling approvals sliding sharply into year end – down 26% between Sep and Dec, the last month marking the lowest level for monthly approvals since June 2013. For Q4 as a whole, approvals were down 10.9%qtr and 23.7%yr.
Approvals are now signalling an unambiguous further weakening that will clearly see declining new dwelling investment detract from Australia’s growth in 2019. Westpac expects new dwelling investment to decline 8% in the year with a further 5% contraction in 2020.
The composition of the approvals decline points to downside risks to this outlook. Units continue to drive the cycle with a further 18.8% drop in Dec to be down 38%yr. Within this segment, ‘high rise’ approvals look to be down a further 16% in the month and by over a third in Q4 as a whole. That is outpacing our assumed path of a cumulative 40% decline by the end of 2019, suggesting weakness may be more pronounced and/or 'front loaded'.
More importantly, there continues to be significant weakness in other segments as well – medium density approvals down over 10% in the month and private detached house approvals down –2.2%mth, –11.3%yr. The shorter ‘lags’ on non high rise work means these declines will likely impact activity through the first three quarters of 2019.
The state breakdown shows weakness spread across the major eastern states: NSW –8.1%mth, –21%yr; and Vic –8.1%mth, –23%yr; and Qld –5.8%mth, –29.7%yr. WA posted a slight gain but is also down 30%yr.
The total value of renovation approvals rose 3.1% to be about flat on a year ago but with a modest uptrend in place. While the rise is mild, it is coming across all the major states.
The total value of non res building approvals fell 9.8% to be down about 15%yr. Latest monthly reads have been choppy around a flat trend, albeit with better gains for NSW and Vic and, by sector, for education-related building in the public sector.
Overall the December approvals update clearly challenges the RBA's view from the November Statement on Monetary Policy that "... dwelling investment is expected to decline gradually" and suggests that, as well as incorporating the weaker starting point from the Q3 national accounts, its revised forecasts to be released in Friday's February Statement on Monetary Policy will also need to materially lower the near term outlook for dwelling investment.
Even if the Reserve Bank maintains its view that the negative 'wealth effect' spillovers from falling house prices will be limited, there is a clear ‘real economy’ negative coming through via new dwelling investment.
MATTHEW HASSAN is a senior economist at Westpac
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A clear ‘real economy’ negative coming through via new dwelling investment: Matthew Hassan

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National residential listings only declined marginally by 0.03% in January 2019 to 328,089 from 328,203 in December 2018, according to figures released by SQM Research.
The figures show both Sydney and Melbourne were down 2.3%, whilst Canberra dropped 2%. 
However, all other capital cities had marginal increases in residential listings for January. Hobart recorded the largest increase at 1.4%.
Seasonally it is normal for large listing declines to be recorded in January as the property market goes into hibernation for the holiday period.
So SQM Research's Louis Christopher regards the minimal declines as a weak result for the market.
Compared to a year ago, national listings rose 8%, with Sydney, Melbourne and Canberra’s year-on-year listings increasing the most - Melbourne up 42.3%, Canberra 24.6% and Sydney 22.3%.
Year-on-year results for Hobart shows a yearly decline of 1.9%, with residential property listings dropping from 2,362 in January 2018 to 2,318 in January 2019. Darwin also experienced yearly declines of sale listings of 0.6%.
Louis Christopher, Managing Director of SQM Research said, “listings in January recorded a very minor decrease, with some cities actually recording increases."
"This is abnormal and concerning. It implies that vendors had a terrible spring selling season with most still trying to move their properties in January."
"Many have not been able to sell. We are now expecting a surge in listings over February,” he added.
<img src="https://www.urban.com.au/images/2019/2/5/SQM%20chart%201.JPG" alt="">
(Source: SQM Research)
SQM also found that capital city asking prices for units and houses declined by 0.4% and 2.2% respectively, for the month to 5 February 2019.
Unit asking prices are now $572,800 and houses $915,900.
The largest monthly decline was in Sydney, where house asking prices declined by 1.7% but did manage a modest 0.3% increase in house prices.
Hobart posted increases in both unit and house asking prices over the month, 1.7% and 0.1% respectively.
However, both unit and house asking prices declined in Brisbane and Melbourne over the month.
Darwin experienced a notable 5.5% increase in unit prices.
Year-on-year capital city asking prices also experienced declines of 2.6% for units and 6.2% for houses.
Year-on-year Hobart continued to show the strongest growth for both houses and units with a 4.0% increase in houses and 7.0% for units.
Canberra also experienced yearly growth with 2.7% increase in houses and 3.8% increase in units.
<img src="https://www.urban.com.au/images/2019/2/5/SQM%20Chart%202.JPG" alt="">
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Both national property listings and capital city asking prices declined in January: SQM

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Australian consumers are uncertain about the future of the property market, according to the latest consumer survey from NAB.
With Australian house prices continuing to moderate, home owners, investors, buyers and sellers now face a different and for some unfamiliar, property market.
This survey found <a href="/news/melbourne-houses-set-to-fall-the-most-in-2019-nab-survey">Melbourne houses are set to fall the most of any in 2019</a>.
<a href="https://www.propertyobserver.com.au/subscribe" target="_blank"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/1/1/Strip%20ad%20keep%20up%20in%202019.jpg" alt=""></a>
NAB’s Chief Economist, Alan Oster, said “most consumers think now is a good time to renovate their home or buy to live in, but with prices falling across most of the country, not surprisingly they don’t think it’s a good time to sell their home or investment property”.  
<a href="https://www.propertyobserver.com.au/images/2019/1/24/Is%20it%20a%20good%20time%20australia.JPG" target="_blank">Click</a> to enlarge.
<img src="https://www.urban.com.au/images/2019/1/24/Is%20it%20a%20good%20time%20australia.JPG" alt="">
Overall, 1 in 2 Australians said it wasn’t a good time to sell their home or investment property. A much higher number in Western Australia said it wasn’t a good time to sell their home.
“We suspect this is influenced by the fact that some home owners in WA may also be sitting on capital losses” said Mr. Oster.
Over the next 12 months Australians are still most positive about renovating their home and buying a property to live in. 
But Mr Oster said, “overwhelmingly, the majority plan to sit tight and do nothing."
On average, consumers expect price falls of ‐2.1% over the next 12 months compared to ‐2.4% forecast by property professionals that NAB surveyed.   
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Australians plan to sit tight and do nothing in the 2019 property market: NAB Survey

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The Perth rental market has continued its recovery in the December 2018 quarter, with the vacancy rate declining to 2.8 per cent, according to the latest data from REIWA.
REIWA President Damian Collins said “The last time the Perth vacancy rate was this low was in March 2013. The rapid improvement we’ve observed in the last 18 months is impressive, especially considering the vacancy rate peaked at 7.3 per cent in June 2017 – the highest it’s ever been."
“Now that the vacancy rate is below three per cent, we can safely say the market is in a recovery phase with landlords now the beneficiary of the current rental environment," Mr Collin said.
Median Rent Price
Perth’s overall median rent price continued to hold at $350 per week during the December quarter.
“The median rent in Perth has been stable for seven consecutive quarters, which is the longest stretch of stable rents Perth has seen since reiwa.com first started capturing rental data in 2001,” Mr Collins said.
Despite the markets overall stability 105 suburbs recorded an increase in price, with North Coogee, Churchlands, Ardross, Daglish and Munster the top performers, according to REIWA's findings.
Mr Collins said, “When we drill down further and isolate houses and units, the results of the December quarter are very pleasing for landlords, with both houses and units experiencing increases in rents. The median house rent increased $10 per week to $360 during the December quarter, while the median unit rent increased $5 per week to $325."
“This improvement didn’t translate into an increase in the overall median as there were more units leased during the quarter than houses, which has kept the overall median stable.”
“If the rental market continues on its current trajectory, we should see Perth’s overall median rent price increase in 2019, which will be a welcome development for landlords” Mr Collins stated.
Leasing activity
There were 12,917 properties leased in Perth during the December quarter.
“Leasing activity slowed during the December quarter, as the festive season saw less people out and about searching for properties. This is very common at this time of year, with activity tending to decline in December before increasing again early in the New Year,” Mr Collins said.
Reiwa.com data shows the five suburbs to experience the biggest increase in leasing activity (percentage wise) were Kallaroo, Daglish, Melville, Merriwa and Hilton, while the suburbs with the highest volume of leased properties were Perth, East Perth, Scarborough, Baldivis and Maylands.
“We expect to see a notable increase in leasing activity in 2019, with REIWA members already noticing a significant uptick in the volume of enquiries for rentals in January,” Mr Collins said.
Listings for rent
REIWA indicated there were 6,865 properties for rent in Perth at the end of the December quarter.
“Listings continue to reduce, with the December quarter figure down 10 per cent on the September quarter and a substantial 27 per cent on the same time last year,” Mr Collins said.
“The sharp decline in listings is a driving force behind why Perth’s vacancy rate has improved. With population growth in WA on the incline and fewer new-building projects commencing, listing stock is being absorbed more quickly.”
Average leasing time
Landlords found tenant's on average four days quicker in the December quarter than in the September quarter down to 44 days from 48.
“The signs for 2019 look very promising. The rapidly improving rental landscape combined with Perth’s favourable buying environment should hopefully see more investors enticed back to the market,” Mr Collins concluded.
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Perth vacancy rate drops to five year low: REIWA

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EXPERT OBSERVATION
Within a country of the size and breadth of Australia, where hundreds of marketplaces function independently and simultaneously, it’s no surprise that real estate is a dynamic industry.
The past 12 months have been no exception: Sydney and Melbourne, the largest metropolitan markets, have softened after prolonged growth; activity in regional markets has grown as buyers seek affordability; investor activity has slowed; the banks tightened lending criteria in the wake of the Hayne Royal Commission; and state legislators moved to give tenants more rights in their rental properties.
So, what’s around the corner in 2019?
1) Polling points to a change in government in 2019.
As constituents did in the Wentworth by-election, analysts believe the public will again queue up at polling booths to punish the Coalition for an unstable year of leadership. But, focusing on property, Labor is taking to the election the same negative gearing and capital gains tax policies it proposed at the 2016 election.
Labor wants to restrict negative gearing to new builds and halve the current capital gains tax discount on investment properties.
Over the last three years, opponents to the policy have said it will turn investors away from property, jeopardising the availability of rental stock and making tenants compete for remaining rentals.
Research undertaken by LJ Hooker has shown negative gearing is an important part of the public’s investment strategy with a poll of 1,700 landlords indicating 31% would sell some or part of their property portfolio if negative gearing was abolished or restricted.
Labor’s policy originated in 2015 at the height of property growth in Sydney and Melbourne, where property values grew around 15% and 10% respectively, over a 12-month period.
But over the past year, both cities have seen prices decline by -8% in Sydney and -5% in Melbourne.
Additionally, removing negative gearing creates less demand for real estate-based employment.
The real estate industry would require fewer strata and property managers and rental properties require regular maintenance to be compliant and a fall in demand would impact trades people, handymen and other service providers.
Interfering with how people choose to invest while the market is self-correcting will could pose a major challenge for the wider market in 2019.
2) FHBs march continues
After several frustrating years on the sidelines, First Home Buyers (FHBs) have been a good news story of 2018.
Data from the Australian Bureau of Statistics (ABS) show FHB activity rose 14.9% in the year to October.
Indeed, not since 2009 have more FHBs been involved in the marketplace.
FHBs came to the fore as tighter lending restrictions – a product of the Royal Commission into Banking, Superannuation and Financial Services Industries - made it difficult for investors to compete for the same sort of entry level stock.
Softening house prices in the major metropolitan markets provided the best levels of affordability for FHBs for several years.
The final Hayne Commission report will be handed down in February, with a Federal budget and election following soon after.
Lenders will no doubt be chastised in the final Report, as they were in the Interim volume.
We expect investors will continue to feel the immediate fall-out from the Report which - along with tightened residential yields – will make it harder for them to maintain real estate within their wealth strategy.
Consequently, FHBs will have less competition at auctions around the country enabling more to make the leap from renting to owning.
FHBs are an important part of the real estate ‘food chain’. When FHBs are active, they enable second, third and fourth home buyers to sell their homes and upgrade. Expect to see FHBs out in force again in 2019.
3) Global forces and regulators
Buyers and investors have become accustomed to the monthly Reserve Board of Australia (RBA) meeting passing with no fanfare; it’s been 28 months (August 2016) since the Board changed the official cash rate.
However, the Central Bank’s influence goes only so far with several of the Big Four lifting their variable rates independent of the RBA’s decision making since then.
Global forces – Brexit, the controversial Trump presidency and the ambitions of China – will cause economic reverberations around the world at the same time that Central Banks are increasing cash rates. These two things will combine to push up the costs of financing for banks which will, in turn, increase mortgage expenses.
The Hayne Royal Commission will also conclude and release recommendations which may also see lending criteria tighten and borrowers jump through more hoops to get a mortgage.
4) Users tap the digital marketplace
Technology plays a greater role in our lives every year. 
In 2019, LJ Hooker will overturn the communication channels between the industry and customers. LJ Hooker has released the LJ Hooker Vendor App.
The app is an industry-first product, allowing sellers a birds-eye perspective of the selling process in real time.
The LJ Hooker Vendor App provides sellers with immediate information on how many people attended their open home; the number of impressions their property received online; and even tips on how to best present their property for buyers.
2019 will be the year in which real estate sets a new benchmark in this space.
5) Regional radar
Despite a correction in prices, buyers will continue to look outside the capital cities for better value.
Proximity to Melbourne’s corporate hub, mixed with the coastal lifestyle and its own transition from a blue collar to white collar economy has underpinned Geelong’s fortunes, with the median house price increasing 16.6% to $579,000 over the past 12 months.
The introduction of new infrastructure to support the Commonwealth Games on the Gold Coast this year saw the median house price rise to $655,000 in November, up from $627,000 at the same time last year, according to CoreLogic (a 4% increase), while the Sunshine Coast median increased 7.7%.
Also, government polices encouraging people to relocate to regional centres will increase demand in these areas.
For instance, the Andrews Government’s first home buyer grants encourages renters to make the transition to ownership by building in a regional area with a $20,000 incentive.
In NSW, Premier Gladys Berejiklian has flagged incentivising students which are a part of the state’s $11 billion international education sector to head to universities outside Sydney.
Markets to watch in 2019 will also include the resources regions. In 2018, the mining state of WA posted its first net population growth figures for several years. It had an immediate impact on the rental market in Perth with the Real Estate Institute of Western (REIWA) reporting a 3.4% vacancy rate in the September quarter - the best performance for the state’s investors since March 2014.
Perth is a launchpad for Fly-In, Fly-Out workers in the iron ore hub of the Pilbara. The Pilbara’s median house price has increased 4.3% to October ($240,000). Whilst it has struggled since the mining boom (the median house price has dropped 69.2% over the last five years) the local employment opportunities bode well for a continued property recovery in 2019.
Central Queensland was likewise a former darling for property investors with areas like Moranbah and Dysart returning massive rental returns as mining propelled the Queensland economy. Production is starting up again and the wider Mackay market posted a 12.6% increase in its median house price to $310,000 this year.
Consequently, many regional markets will outperform their capital city counterparts over 2019.
Mathew Tiller is the head of research at LJ Hooker.
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