<p>Perth’s new apartment market recorded its strongest quarter of sales since Q4 2021, with 412 apartments sold in Q1 2026 and a record quarterly sold value of $537 million, according to Urbis’ latest Apartment Essentials results.</p>

<p>Urbis said the March quarter result reflects strong, highly product‑specific demand across both ends of the market, from more attainable projects delivering at scale, through to premium stock being absorbed by equity‑rich downsizers.&nbsp;</p>

<p>David Cresp, Partner at Urbis, said the key story in Perth is not demand, it is the market’s ability to convert demand into delivered housing.&nbsp;</p>

<p>“This is the strongest sales quarter since Q4 2021, and it reinforces that demand in Perth is real and it’s local,” David Cresp said. “But the task now is delivery, turning that demand into projects that can actually be built and completed.”&nbsp;</p>

<p>[smartcode_project:default project_id=110291 project_image_fid=302785]</p>

<h2>Affordable product leads, premium demand remains resilient</h2>

<p>Sales in Q1 were led by more affordable projects, with The Boulevard (SKS Group) recording 115 sales in the quarter, the presentation noting this is only the second time a single project has surpassed 100 quarterly sales. The project was able to offer more affordable housing product right next to a train station.&nbsp;</p>

<p>Palmyra West (Finbar) also delivered strong results with 28 sales in Q1, following 84 sales in Q4, with an average price of under $800,000, underscoring depth of demand for well‑located, attainable new stock.&nbsp;</p>

<p>At the premium end, Urbis said downsizer demand is continuing, with the results highlighting Romeo (Applecross, Finbar) recording 75 sales and reaching almost 50% sold in one quarter.</p>

<p>Jual (Shenton Park, Celsius Property) also posted a strong quarter with 28 sales, reaching 39% sold in one quarter.</p>

<p>Urbis noted that Perth apartment demand is not speculative, not investor‑led, and not uniform, describing it as localised, often equity‑driven and highly product‑specific, a pattern reflected in the polarisation between strong “attainable” performers and premium downsizer product.&nbsp;</p>

<p>[smartcode_project:default project_id=148957 project_image_fid=364102]</p>

<h2>Prices underpinned by costs, and the delivery risk is growing</h2>

<p>Urbis said pricing pressure is cost not demand‑driven: construction costs and delivery risk are now a central constraint, with the results noting build costs remain elevated and volatile, and that energy, fuel and labour uncertainty weigh on feasibility.</p>

<p>David Cresp said a growing challenge for private Build‑to‑Sell developers is simply securing a builder in the current environment.</p>

<p>“Developers are really feeling the pressure from a building market that was operating at capacity and securing a builder is challenging,” David Cresp said, adding that even where a builder can be secured, “trying to get to the price that makes the development financially viable is incredibly challenging in the current market.”&nbsp;</p>

<p>Urbis’ broader WA commentary also notes that industry remains at or above capacity with lot and housing creation, and that many builders are limiting new sales to manage stretched workforces and fixed‑price contract pressures, conditions that flow directly into apartment feasibility and delivery timing.</p>

<p>[smartcode_project:default project_id=108869 project_image_fid=317905]</p>

<h2>Supply: improving later, but still constrained, and Perth lags eastern benchmarks</h2>

<p>While near‑term supply remains constrained, Urbis’ forecast shows completions lifting “Supply is forecast to be back above 1,500 apartments per annum for the first time since 2019”, with 1,775 completions forecast for 2026, and volumes remaining above that level over the following years.&nbsp;</p>

<p>Looking further ahead, completions are forecast to reach 2,500 in 2028, with the report noting 32% of that total is social/affordable, reflecting the role of government‑supported delivery in rebuilding the pipeline.&nbsp;</p>

<p>However, Urbis said Perth remains behind comparable markets on pipeline scale. In a national comparison of projects under construction, the report shows under construction Perth Build‑to‑Sell (BTS) at 3,446 apartments versus the Gold Coast at 7,922. Mr Cresp said “The challenge for Perth is how to we grow the delivery pipeline”.</p>

<p>Urbis’ conclusion is that Perth’s market is increasingly defined by product discipline and delivery certainty, with the research identifying “delivery certainty is key” and calling out builder risk and procurement models as core success factors, alongside “timing and staging”.&nbsp;</p>


Joel Robinson

Perth apartment sales hit strongest pace since late 2021 as builder capacity tightens

<p><a href="https://www.apartments.com.au/developers/sammut-developments">Sammut Group</a> has secured development approval for its latest Brisbane apartment project, marking the Sydney developer’s next step in expanding its Queensland pipeline following the success of its debut Gold Coast development, Coast.</p>

<p>The approved project at <a href="https://www.apartments.com.au/new-apartments/44-glen-road-toowong-qld-4066">44 Glen Road, </a><a href="https://www.apartments.com.au/developments/toowong-qld-4066">Toowong</a> will deliver a 15-storey riverfront apartment building with 42 residences, significantly increasing the scale of the site’s previous approval for a smaller luxury scheme. Designed by Bureau^proberts, the development will comprise a mix of predominantly four-bedroom and two-bedroom apartments positioned to maximise Brisbane River and city views.</p>

<p>Sammut Director Julian Sammut said the group had been actively searching Brisbane for several years before identifying Toowong as the right fit.</p>

<p>“Brisbane was the right step for Sammut,” Sammut said.</p>

<p>“With the success of Coast we thought we should definitely look to do more in Queensland alone. We then pushed up to look at Brisbane. We've been looking for I'd say two to three years actually and it was hard to find the right location.”</p>

<p><img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-23%20at%203.27.14%E2%80%AFPM.png?VersionId=dYAVIL7qdcGA8ojvkslSrLjczXFejSSx" /></p>

<p>Sammut said suburbs including New Farm and Teneriffe were considered before the group ultimately focused on Toowong due to its strong downsizer demographic and limited supply of developable riverfront land.</p>

<p>The site was acquired off-market after what Sammut described as a lengthy negotiation and planning process, with the developer pursuing an uplift to the original approval.</p>

<p>“We are DA approved now which is very exciting,” Sammut said.</p>

<p>“We've had our change approval come through and we've obviously doubled the height, 15 storeys plus rooftop. We've got 42 amazing apartments that are going to be coming to market soon.”</p>

<p><img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="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/Screenshot%202025-12-23%20at%203.27.26%E2%80%AFPM.png?VersionId=ohkRkY0dIZlqdfME2EZePsCQavRiBadE" /></p>

<p>Bureau^proberts said the design responds to Toowong’s evolving urban character, balancing contemporary apartment living with the area’s established residential identity.</p>

<p>“A place where traditional Queensland living has taken place for centuries; Toowong is seeing a shift of contemporary influence, commercial and retail hubs mixed with well-considered residential offerings – all the while maintaining its character and charm,” the architect noted in planning documents submitted to Brisbane City Council.</p>

<p>The architecture practice said the project’s form was shaped by its riverfront setting, flood considerations, neighbouring building scales, and view corridors.</p>

<p>“They said the mix of four and two-bedroom apartments capture the ‘fundamental qualities of Queenslander living,’ translated into the context of a contemporary subtropical building.”</p>

<p>The development sits just off Coronation Drive within walking distance of Toowong’s retail precinct and the upgraded Regatta ferry terminal, while also benefiting from proximity to the incoming green bridge connection to West End. Sammut said the accessibility and amenity offering were central to the site’s appeal.</p>

<p>The approval adds to growing residential activity along the Toowong riverfront, joining nearby projects including Consolidated Properties’ Monarch Residences and Spyre Group’s ARC Residences.</p>


Sammut secures approval for debut Brisbane apartment development in Toowong

<p>Developer Lanevick is heading back into Sydney’s apartment market after focusing more heavily on the luxury townhouse and terrace sector in recent years.</p>

<p>Lanevick, founded and directed by Steve Maroun, is expecting to receive approval in the coming months for a new apartment development in Gladesville, with the aim to launch it to the market later this year.</p>

<p>The 51-apartment project, designed by Studio Johnston, will comprise a mix of one-, two-, and three-bedroom apartments positioned toward the Hunters Hill downsizer market.</p>

<p>“Traditionally it’s been difficult for people in that market to downsize because there just hasn’t been the right product available,” Maroun said.</p>

<p>“We’re targeting buyers who might have 30 to 40 per cent of their house value sitting in the bank after downsizing.</p>

<p>“They still want good spacious entertaining areas, they still want quality design, but they also want flexibility and the ability to enjoy life a bit more after working hard for a long time.”</p>

<p>The project sits near Boronia Park and within close proximity to the Parramatta River foreshore, an area Maroun says offers more of a Hunters Hill lifestyle than a traditional apartment precinct.</p>

<p>“From a lifestyle perspective, it’s really more Hunters Hill than Gladesville,” Maroun said. “You’re close to the foreshore, close to parklands, and still connected back into the village precinct.”</p>

<p>From level four and above, apartments will capture water views&nbsp;toward Sydney Harbour. Communal amenity will include rooftop entertaining areas, wellness spaces, and a gym tailored toward owner-occupier buyers.</p>

<p>“We’ve really designed these apartments around that buyer coming from the Hunters Hill LGA and what they’re actually looking for in their next chapter.”</p>

<p>The proposed development has also been designed to respond to the changing character of the broader Gladesville town centre, where a growing number of mixed-use and residential proposals are expected to emerge over the coming years.</p>

<p>“Gladesville presented a rare opportunity to deliver a genuinely design-led residential project within an evolving lifestyle precinct, just moments from the growing Gladesville town centre, and we’ve approached the project with a strong focus on architecture, liveability and long-term community value,” Maroun said.</p>

<p>Maroun said Lanevick saw a first-mover advantage within the precinct as planning controls continue to evolve to accommodate greater housing density.</p>

<p>“We think there’s a real opportunity there that hasn’t really been serviced properly yet,” he said.</p>

<p>“There’s going to be a broader evolution of the whole Gladesville village precinct over time, particularly with more activation and mixed-use outcomes.”</p>

<p>The Venus Street proposal will include a commercial and retail component at ground level designed to contribute to that evolving streetscape activation.</p>

<p>“A big part of the thinking was how do you activate that area properly and create more vibrancy and amenity, which is what Hunters Hill has been looking for,” Maroun said.</p>

<p>Lanevick’s focus since 2020 has largely been on smaller-scale luxury townhouse and terrace developments. The developer recently completed Royale Randwick, also designed by Studio Johnston, where prices reached $3.65 million. The project was featured in the UDIA NSW 2026 Professional Development Prospectus and was also named a finalist for Development of the Year.</p>

<p>&nbsp;</p>


Lanevick to cater for Hunters Hill downsizers with new Gladesville apartment development

<p>Property developer One Living, backed by former Macquarie banker turned investment manager Chris Green’s investment firm, has unveiled plans to bring more institutional capital into housing to help address the national supply crisis.</p>

<p>The New York-based investor has focused his firm, GreenPoint Partners, on addressing the supply shortage hitting middle market housing in Australia.</p>

<p>It is backing the new One Living business to develop more than 1000 units along the eastern seaboard. The new firm is starting with a development on Mona Vale Road, on the border of Mona Vale and Pymble, in Sydney’s Northern Beaches, with around 140 apartments planned. They are eyeing off more sites across the city.</p>

<p>With cost pressures rising in the industry, One Living’s model is to be a vertically integrated developer-builder, so it can respond directly to the housing gap by removing the cost inefficiencies embedded in traditional residential delivery.</p>

<p>“We are building a platform designed to operate at scale and starting in a market where there’s a clear need for quality, attainable housing,” One Living joint managing director Joseph Scuderi said.</p>

<p>“It’s that missing middle – it’s that attainable end of housing… that’s what most Australians invest into and what Australians can actually afford.”</p>

<p><img alt="Mona Vale" data-entity-type="file" data-entity-uuid="798dfa93-4941-4db6-a696-31e9dc18e81c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.31.50%E2%80%AFPM.png?VersionId=mKBqi5C_DmeiXS.AtJkcR8LQIxqCqmFi" /></p>

<p>GreenPoint Partners brings years of experience assembling and scaling real estate operating businesses across major markets. And Green sees a big opportunity in Australia.</p>

<p>“For its size, sophistication and importance to the community, Australia’s living sector has remained largely under-institutionalised, which represents significant opportunity,” Green said. “GreenPoint identified that gap, assembled the right team, and is backing One Living to build a platform that is aligned to market needs.”</p>

<p>Green said being a builder-developer would give the company the capacity and flexibility it required to deliver reasonably-priced homes.</p>

<p>“We want it to be at that attainable level; not super high end luxury but at that attainable level,” he said.</p>

<p><img alt="Mona Vale" data-entity-type="file" data-entity-uuid="74a5344a-4b26-4d4a-ada3-056b1220be77" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.32.15%E2%80%AFPM.png?VersionId=vY8hXHO4reBMdO8ZXMWCNtGZJofUPQ3j" /></p>

<p>&nbsp;</p>

<p>One Living will undertake a component of affordable housing in its schemes, which it will own and operate, and it could also run build-to-rent on some sites.</p>

<p>Green praised local policy settings.</p>

<p>“The NSW government is being very supportive, strategic and pragmatic in terms of how do we generate more supply of housing,” he said. “We think it’s actually positive for development and the bit that’s been lacking at that attainable level is that it’s lots of relatively small private developers, whereas we want to create an institutional platform.”</p>

<p>One Living is also&nbsp;looking at high-density projects and could take on more institutional funding in the future.</p>

<p>“The way we will be able to achieve economies of scale is through size,” Green added.</p>


One Living enters Sydney's new apartment market with Northern Beaches site acquisition

<p>It's been several years since there's been an opportunity to buy a brand new townhome in Melbourne's coastal suburb of Mordialloc. Even apartment developments in recent times have been few and far between in the area.</p>

<p>Local developer LDS Property identified the gap in new housing, securing a site on White Street, directly opposite&nbsp;Woodlands Golf Club Mordialloc. They've recently launched&nbsp;<a href="https://www.apartments.com.au/new-townhouses/wm-residences-mordialloc-102-white-street-mordialloc-vic-3195">WM Residences</a>, just 13 townhouses which they have already started building.</p>

<p>Projects by Buxton Director Heath Thompson, who is selling WM Residences, says the townhouses x that perfect middle ground be</p>

<p data-end="683" data-start="511">"Mordialloc residents have had limited options to downsize within the suburb, often forcing them to look elsewhere despite long-standing ties to the area," Thompson says.</p>

<p data-end="882" data-start="690">"With very little comparable new supply coming to market, projects like WM Residences are well placed, particularly as buyers look to capitalise on current conditions amid constrained supply."</p>

<p data-end="882" data-start="690">[smartcode_project:default project_id=134646 project_image_fid=6109]</p>

<p>The development, designed by regarded architecture firm&nbsp;<a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a>,&nbsp;adopts a deliberately restrained architectural approach, focusing on simplicity, durability and liveability rather than overt design gestures.</p>

<p>The boutique scale is central to the offering. With only 13 three-bedroom residences, each home is configured to prioritise functional layouts and everyday use, supported by private terraces and secure two-car garages.</p>

<p>Ewert Leaf’s design response leans into a calm, neutral material palette. Interiors are defined by oak flooring, white walls and soft finishes, creating a consistent and understated backdrop. The approach avoids trend-driven detailing in favour of longevity, with an emphasis on natural light and spatial clarity.</p>

<p>[smartcode_project:default project_id=134646 project_image_fid=6110]</p>

<p>Beyond aesthetics, the homes are designed to meet contemporary performance expectations. Each residence targets a minimum 6-star energy rating, incorporating double glazing, comprehensive insulation and all-electric Bosch appliances.</p>

<p>The project’s location supports a walkable coastal lifestyle, sitting within close proximity to Mordialloc’s foreshore, Main Street retail strip and the train station. Local cafés and dining venues, including Suburbia Deli and Hendriks Café, are within a short walk, reinforcing the area’s established neighbourhood character.</p>

<p>[smartcode_project:default project_id=134646 project_image_fid=6116]</p>

<p data-end="247" data-is-last-node="" data-is-only-node="" data-start="0">While <a href="https://www.apartments.com.au/developments/mordialloc-vic-3195">Mordialloc</a> is often defined by its beach and pier, the project taps into other areas of day to day living, offering easy access to local food, casual dining and transport, rather than positioning itself purely as a lifestyle retreat.</p>

<p>WM Residences reflects a continued trend across Melbourne’s coastal suburbs towards smaller-scale, design-led townhouse developments, particularly on infill sites where proximity to amenity is already established.</p>

<p>With construction commenced prior to its market entry, the project aligns with a growing preference among buyers for developments with visible progress and defined delivery timeframes.</p>

<p>[smartcode_project_cta:default project_id=134646]</p>


WM Residences fills gap in Mordialloc townhouse market

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<p><span>Stockland property group released the Sustainability Report and Annual Review for 2015 which noted underlying profit grew by 9.4% to $608 million with statutory profit at $903 million, more than 70% higher than the previous year.</span></p>
<p><span>Stockland Chariman Graham Bradley said the results reflect solid increases in earnings across Commercial Property, Residential and Retirement Living.</span></p>
<p><span>Managing director Mark Steinert said commercial property remains a key driver of the group’s success.</span></p>
<p><a href="/images/2015/09/23/Screen%20Shot%202015-09-23%20at%2010.44.01%20AM.png" target="_blank"><span>Click to enlarge</span></a></p>
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<p><span>"On a comparable basis we achieved operating profit growth of 4.3% across the portfolio, with 4.2% in Retail, 3.1% in Logistics and Business Parks and 6.4% in Office, reflecting our strong focus on property fundamentals," he said.</span></p>
<p><span>"Our residential business achieved a substantial 73.5% uplift in profit and ended the year with a record 3,742 contracts on hand, up 17% on last year. </span></p>
<p><span>"Our Retirement Living operating profit was up 19.9% on FY14 reflecting strong sales, active management and improved efficiency. The business is now two years into our five year plan to achieve a 7% cash return on assets, which is marked by taking a much more active approach to how we manage our village portfolio.</span></p>
<p><span>“These reports show we are intertwining our approaches to property development and sustainability. We are focussed on the development and delivery of sustainable communities… Every year, Stockland engages in an independently-reviewed process to record its achievements, review and update its sustainability strategy, and set new targets for the year ahead.”</span></p>
<p><a href="/images/2015/09/23/Screen%20Shot%202015-09-23%20at%2010.44.11%20AM.png" target="_blank">Click to enlarge</a></p>
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mick.cee-iDmgDDAmu8

Stockland underlying profit grew by 9.4%

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<p><span>Strong demand is being seen for riverside land in Brisbane’s south-western suburbs.</span></p>
<p><span>Unison Projects’ Arbour Reach residential subdivision on the Brisbane River at Sherwood and Metro Property Development’s Riverside Corinda project have enjoyed strong sales success, say selling agents Cameron Crouch and Sharon King of Ray White Sherwood.</span></p>
<p><span>Mr Crouch said the two developments had so far enjoyed combined sales of more than $30 million with only four lots remaining at Arbour Reach, while just six blocks are left for sale at Riverside Corinda.</span></p>
<p><span>Arbour Reach, a 29-lot project on a 2.5ha estate at 27 Magazine Street, Sherwood, is adjacent to the magnificent Sherwood Arboretum and is within walking distance of railway stations, the bus network, boutique stores, cafes, restaurants, schools and parklands.</span></p>
<p><span>“The response to Arbour Reach has been amazing with sales of more than $14 million to date,” Mr Crouch said.</span></p>
<p><span>“Given the project offers ready to build on, flat, vacant land in addition to its location and natural attributes, it is no surprise to see strong buyer demand for Arbour Reach.  Pricing of the vacant land on the 10 remaining blocks starts at $640,000 with six (of the 10) fronting the river and available from $995,000.”</span></p>
<p><span>Remaining lots at Arbour Reach range from 456 sqm to 1010 sqm. The level homes sites are elevated above the river and have street frontages of 13m to 29m.</span></p>
<p><span>Unison Projects’ Shannon Down said Arbour Reach was the first substantial residential project with immediate connection to the river in the area for decades and so the buyer demand was understandable.</span></p>
<p><span>Mr Down said despite its proximity to the river, all Arbour Reach lots have been designed above the January 2011 flood level and the site met stringent flood mitigation standards introduced by Brisbane City Council.</span></p>
<p><span>Ms King said the Riverside Corinda blocks on the former site of charity Montrose Access at Consort St, Corinda, were way above the Brisbane River and enjoyed spectacular river and city views.</span></p>
<p><span>Ten blocks with exclusive river views were sold at an on-site auction last month which attracted more than 200 people.</span></p>
<p><span>“Riverside land in Brisbane’s leafy south-western suburbs is in limited supply so it’s no wonder we have had such a strong response to these two projects,” Ms King said.</span></p>
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j.ballantyne1990-6AQqhLzZaK

Brisbane riverside estates generate sales of more than $30 million

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<p>There’s been a number of articles this week about the peak of the Sydney market. It does look as if the market is at or slightly past its peak however, it is important to thoroughly investigate how the market is tracking currently.</p>
<p><strong>Values</strong></p>
<p>Sydney home values have increased by 17.6% over the 12 months to August 2015 and by 14.0% over the first 8 months of 2015. Sydney home values have been trending higher since they reached a low point in May 2012 and since that time Sydney home values have increased by a total of 49.5%. To put that growth in perspective, a home worth $500,000 in May 2012 would now be worth $747,704. The data presented shows that home values have been trending higher at a fairly rapid pace however, more recent data may point to a slowing of the rate of growth. Home values rose by 1.1% over the month of August however, data for September is showing a much more sluggish rate of growth in home values with values -0.3% lower over the twenty eight days to 20 September.</p>
<p><strong>Sales transactions</strong></p>
<p>Unfortunately sales transactions are not a timely indicator of the market’s performance due to delays in receiving the full population of settled sales transactions.  Furthermore, off-the-plan sales are entered into sales counts at their contract date however, the record is not received until settlement which could be several years down the track for large projects. As a result, when you have heightened off-the-plan sales activity as we currently do, unit sales in particular are inclined to be undercounted.  The latest sales data to June 2015 shows that over the second quarter of the year there were 23,432 sales. Compared to the same quarter in 2014, house sales were -5.5% lower and unit sales were -16.5% lower.</p>
<p><strong>Time on market</strong></p>
<p>At the end of July 2015 the typical Sydney home was selling after just 25 days. At CoreLogic RP Data we’ve been tracking the time on market since the beginning of 2005 and this is the quickest rate of sale recorded over this period. The combination of strong value growth and a rapid rate of sale suggests that demand is still quite strong across the city.</p>
<p><strong>Auction clearance rates</strong></p>
<p>The preliminary auction clearance rate for Sydney last week was 73.2% which was virtually unchanged from the final auction clearance rate the previous week.  Importantly, in most instances the final auction clearance rates are revised lower. Auction clearance rates have shifted from their peak of almost 90% in April of this year to their current level.  At the same time a year ago clearance rates were recorded at a higher 78%. It is important to note that over recent weeks the number of properties being taken to auction has been significantly higher than the number taken to auction a year ago. Nevertheless it is clear that the auction market which represents slightly more than a quarter of all Sydney home sales has weakened over recent months and has not rebounded so far during the Spring Selling Season.</p>
<p><strong>Property listings</strong></p>
<p>The latest weekly listings data which tracks houses, units and vacant land for sale across Sydney shows that over the past 4 weeks there were 8,525 new listings and 20,121 total listings.  New listings are now at their highest level since the week ended 30/11/14 and total listings are at their highest level since the week ended 14/12/14. Comparing listings to levels at the same time a year ago shows that new listings are currently 19.0% higher and total listings are up 5.0%. In the early part of the Spring Selling Season there is much more stock available for sale in Sydney than there was at the same time a year ago. Heightened stock levels at a time when auction markets are softening and value growth has shown some early signs of slowing may contribute to a further slowdown in the rate of capital gain over the coming months.  This is due to the fact that active buyers are afforded more choice and may not have to pay such a price premium to secure a home.</p>
<p><strong>Mortgage Activity</strong></p>
<p>The CoreLogic RP Data Mortgage Index tracks pre-purchasing activity and has shown some clear weakness over recent weeks. While the Index remains at quite high levels it has fallen by -2.0% over the past couple of weeks at a time when, seasonally, the trend should typically be rising. At the same time last year the index had risen by 1.2% over the previous two weeks. With mortgages, particularly investment mortgages becoming more difficult to obtain, we are potentially seeing the first signs that this segment of the market it is starting to slow resulting in an easing of demand.</p>
<p><strong>Building approvals</strong></p>
<p>The latest building approvals data for July 2015 shows that there was a record high 5,159 dwelling approvals over the month. This was comprised of 1,655 house approvals and 3,504 unit approvals.  Over the 12 months to July 2015 there have been 15,213 house approvals and a record high 30,921 unit approvals. Sydney has consistently approved more units for construction than houses since early 1993. With a record pipeline of new housing stock it is going some way to alleviating housing shortages across the city. It also affords buyers much more choice when they are looking to purchase a new home</p>
<p><strong>Housing finance</strong></p>
<p>The latest housing finance data for New South Wales to July 2015 shows that demand from the owner occupier segment is starting to ramp-up while investor demand is starting to wane. Importantly, owner occupier demand includes refinances so if we look exclusively at new lending (excluding refinances) we also see owner occupier demand ramping up while investor demand seems to be waning. Investors still account for the greatest proportion of new lending (58.0%) however, two months ago investors accounted for a record-high 62.4% of all new mortgage lending in NSW.</p>
<p><strong>Rents and yields</strong></p>
<p>Over the 12 months to August 2015, rental rates across Sydney have increased by 2.3% which is the slowest annual rate of rental growth since May 2013. With rental growth sluggish and value growth remaining very strong, gross rental yields across Sydney have shifted to record low levels. Yields were recorded at 3.3% in August 2015 which is the softest yields on record. We’ve already mentioned that investor activity across NSW has recently hit record highs and remains elevated. It appears that many investors are having little regard for rental returns and are largely focussing on the future capital growth potential and the subsequent benefits from a negative gearing strategy.</p>
<p>Although the data is still generally undoubtedly strong, it appears there are signs that the market could be showing the first sign that growth rates are peaking. Record high new housing supply at a time when mortgage demand is seemingly slowing along with auction clearance rates and listings are rising points to potentially softer value growth conditions for the city. While we expect the rate of growth will likely start to slow, the significant stimulus of low mortgage rates is expected to ensure that home values continue to rise albeit at a more moderate pace.</p>
<p> </p>
<p><em>Cameron Kusher is research analyst for CoreLogic RP Data. You can contact him <a href="https://blog.corelogic.com.au/author/cameron-kusher/" target="_blank">here</a>.</em></p>
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What is going on in the Sydney housing market? Cameron Kusher

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<p><span>One of New York's famous celebrity real estate agents, Fredrik Eklund is doing a series of live workshops across Australia next month, promising to share "the secrets of selling anything to anyone".</span></p>
<p><span>The broker has sold over US$2 billion in real estate in New York during the past decade, with a clientele that includes Leonardo DiCaprio, Justin Timberlake, Daniel Craig, Sarah Jessica Parker, Jennifer Lopez, and Cameron Diaz.</span></p>
<p><span>Spruiker Max Markson says <a href="https://www.fredrikeklundlive.com.au/" target="_blank"><span>he''ll teach his Sydney agents a thing or two</span></a>.</span></p>
<p><span>One of the stars of Million Dollar Listing New York, Fredrik Eklund has appeared on the Bravo TV reality series, seen in 110 countries worldwide. </span></p>
<p><span>Described as the energetic, high-kicking, top broker at Douglas Elliman has secured record sales in 28 buildings in Manhattan last year.</span></p>
<p><span>Originally from Stockholm, Sweden, Eklund’s new book is The Sell: The Secrets of Selling Anything to Anyone. </span></p>
<p><span>"I'm longing to see the stars of the Southern Cross at night and enjoy the sun drenched beaches during the day as well as meet my fans and check out some real estate. I'm keen to do some business down under," he said. </span></p>
<p><span>Last month he holidayed in Bali to celebrate making a $100 million in one month.</span></p>
<p><span>He also revealed his latest purchase was a multimillion-dollar Miami, Florida, holiday condo.</span></p>
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New York broker Fredrik Eklund to lecture Australian estate agents

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<p><span>Dexus Property Group has signed on Neil Perry for its $80 million retail development of the landmark Gateway tower at Sydney's Circular Quay.</span></p>
<p><span>Gateway's redevelopment, which is being undertaken by Dexus Wholesale Property Fund, will convert the existing three-storey retail podium into multiple dining precincts, doubling the retail space to 4385 square metres. </span></p>
<p><span>Perry's The Burger Project and Chat Thai will be included on the first level.</span></p>
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Neil Perry for Dexus Gateway Tower

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<p><span>A freestanding Victorian warehouse in Fitzroy has been listed with $2.6 million expectations for September 26. </span></p>
<p>The property at<a href="https://www.realestate.com.au/property-house-vic-fitzroy-120626069" target="_blank"> 4 Wood Street </a>has been an artist’s residence.</p>
<p><span>It comes with courtyard gallery/studio on the lower level with polished concrete floors.</span></p>
<p><span>There are four bedrooms, a large dining area and a balcony upstairs.</span></p>
<p><span>Nelson Alexander agent James Pilliner has the listing.</span></p>
<p>The median price for a house in <a href="/news">Fitzroy is $1,201,500</a>, according to CoreLogic RP Data.</p>
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Fitzroy residential warehouse offering

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<p>Sales of apartments around the Mt Gambier region have been stable over the last few years since a hefty fall in sales from 2009 to 2010, according to Herron Todd White.</p>
<p>Herron Todd White's September Month in Review found i<span style="line-height: 1.3em;">n 2009 there was a movement to introduce smaller, high density living but it didn’t appeal to locals.</span></p>
<p><span style="line-height: 1.3em;">The report noted a lot of apartment developments were</span><span style="line-height: 1.3em;"> aimed at out of town investors who had no intention of living in them.</span></p>
<p><span style="line-height: 1.3em;">"These higher density units have started to appear on the market for resale and after extended marketing periods and price discounts, they have not been very successful in achieving a sale which does show the lower demand for this property type," it read.</span></p>
<p><span style="line-height: 1.3em;">"The price range for units varies greatly from $50,000 to $325,000. Within the past 12 months most unit sales have occurred between either $76,000 and $125,000 and $176,000 and $250,000. In the past 12 months there have been very few </span><span style="line-height: 1.3em;">unit sales occurring above $250,000.</span></p>
<p><span style="line-height: 1.3em;">"The reason for few units selling above $250,000 is often due to the fact that for a similar price a family style home on a larger allotment<br>can be purchased. Higher valued units exceeding $350,000 have been constructed in the area. However, they do not sell often and when placed on the market often require extended marketing periods and discounting to achieve a sale."</span></p>
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Mt Gambier locals shun higher density living: Herron Todd White

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<div>A stunning research note from Cameron Kusher of <em>CoreLogic-RP Data</em> which revealed that while median vacant land prices continued to rise very strongly in Australian capital cities over the past year, regional land prices fell by -3.4% to $156,500.</div>
<div> </div>
<div>In particular land values in Sydney (+16.6%) and Melbourne (+14.5%) have exploded over the past year.<br><br>
</div>
<div>And while demand for housing is presently low in Western Australia, median land prices in Perth continued to escalate very significantly (+10.3%), which in turn will force up the cost of new housing. Today, Sydney and Perth have the most expensive land prices in Australia. </div>
<div> </div>
<div>Unlike in the capital cities regional lot sizes have actually expanded by +8.3% over the past year according to Kusher, making the decline in median land prices all the more notable.</div>
<div> </div>
<div>Driven by rapid expansion in household debt regional property prices had a relatively strong run in the lead up to the financial crisis, but this trend has evidently now slowed.<br><br>While a 750sqm lot in a capital city 25 years ago would have cost you $50,000 according to Kusher, today it would set you back $417,800...and rising.</div>
<div>
<br>Regional land values are therefore reportedly some 39% cheaper than in the capital cities, the largest such differential in since 1990.</div>
<div> </div>
<div>Interestingly over the long haul land prices have appreciated at a very similar percentage annual rate between capital cities and the regions.</div>
<div> </div>
<div>This implies in turn that the best performing property types have been those with a high percentage land value.</div>
<div> </div>
<div>More remote properties - where the land component comprises only a small part of the asset value - remain cheap precisely because the value is all in the <em>building, </em>and not the land.</div>
<div> </div>
<div>"Location, location, location" as the old mantra goes.</div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Why is this happening?</span></strong></div>
<div> </div>
<div>Why are regional prices not keeping pace? And particularly why has this become the case now?</div>
<div> </div>
<div>This is a complex question, but a major reason for the strength in capital city land values is likely to be the restricted supply of new land made available for development in the congested capital cities where population growth and therefore underlying demand is strong.</div>
<div> </div>
<div>Regional population growth has been considerably weaker ex-Queensland, and there is generally speaking more land available for development.</div>
<div> </div>
<div>Since the financial crisis there has been another key driver for the larger capitals: jobs growth. </div>
<div> </div>
<div>The ABS released its Detailed Labour Force figures for August 2015 today which underscored some important trends.</div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Cities creating jobs</span></strong></div>
<div> </div>
<div>While regional employment in the two most populous states was growing reasonably robustly until the financial crisis, regional employment growth has now slowed, with the mining capex cliff now adding to the drag in some regions.</div>
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<div><a href="/images/2015/09/18/LF3.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div><img src="/images/2015/09/18/LF3.jpg" alt=""></div>
<div> </div>
<div>
<div>Looking below at cumulative employment growth since Febuary 2007, we can see why both Sydney and Melbourne have been labelled by the Reserve Bank as "self-sustaining job magnets", creating +350,000 new jobs apiece.</div>
<div> </div>
<div>The combined cities and towns of regional New South Wales has created a fair level of new employment (+100,000), particularly in the Hunter, Newcastle and the Illawarra. </div>
<div> </div>
<div>However, over the same time period regional Victoria has by comparison created almost no additional employment (+10,000) on a net basis.</div>
<div> </div>
<div><a href="/images/2015/09/18/LF2.jpg" target="_blank">Click to enlarge</a></div>
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<div><img src="/images/2015/09/18/LF2.jpg" alt=""></div>
<div> </div>
<div>
<div class="separator">An unfortunate corrollary of this is while there was always a level of frictional unemployment in the lead up to 2007, there had at times been a job for almost everyone who wanted one.</div>
<div class="separator"> </div>
<div class="separator">Sadly this is no longer the case, and regional unemployment in particular has been pulsing higher. </div>
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<div class="separator"><a href="/images/2015/09/18/LF8.jpg" target="_blank">Click to enlarge</a></div>
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<div class="separator"><strong><span style="text-decoration: underline;">Employment growth</span></strong></div>
<div class="separator"> </div>
<div class="separator">Not dissimilarly while Greater Brisbane has now added +23,000 jobs over the year to August 2015, regional Queensland employment has declined by -27,000, though there may be some debate over the "quality" of new jobs created. </div>
<div class="separator"> </div>
<div class="separator">While some revisions have been made to population assumptions relating to Western Australia, total employment in Perth has continued to rise modestly.</div>
<div class="separator"> </div>
<div class="separator">Unfortunately total employment in Adelaide has declined over the past <strong><span style="text-decoration: underline;">five</span></strong> years (-2,700), with more challenges in the pipeline in the manufacturing space and rising unemployment.</div>
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<div class="separator"><a href="/images/2015/09/18/LF4.jpg" target="_blank">Click to enlarge</a></div>
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<strong><span style="text-decoration: underline;">Unemployment rates</span></strong><br><br><div>Smoothing the volatile monthly unemployment readings below on a rolling annual basis we can see that Greater Sydney remains the best placed economy, the unusual labour market of Darwin aside.</div>
<div> </div>
<div>New South Wales also has the lowest level of mortgage delinquency rates according the latest figures from Moody's.</div>
<div> </div>
<div>Furthermore, unemployment rates are now trending down in Greater Brisbane, Melbourne and Hobart.</div>
<br><span>On the other hand, unemployment is clearly rising in Perth and Adelaide.</span>
</div>
<div class="separator"><span> </span></div>
<div class="separator"><a href="/images/2015/09/18/LF5.jpg" target="_blank"><span>Click to enlarge</span></a></div>
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<div class="separator"><span>Adelaide is now recording an unemployment rate reading of 7.9 per cent which is dragging up the 12 month moving average.</span></div>
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<div class="separator">
<div>On the other hand Greater Brisbane has now recorded two surprisingly low readings of just 5.2 per cent over the last three months.</div>
<div> </div>
<div>Realistically the true unemployment rate in Greater Brisbane is higher than that, but nevertheless this is heartening to see for the Queensland capital. </div>
<div> </div>
<div><a href="/images/2015/09/18/LF6.jpg" target="_blank">Click to enlarge</a></div>
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<div><img src="/images/2015/09/18/LF6.jpg" alt=""></div>
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<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
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Regional land prices are falling: Pete Wargent

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<p><span>GUEST OBSERVER</span></p>
<p><span>The economy seems to be losing momentum as we move through 2015. In the first four months of 2015 the average growth rate of the Leading Index was 0.16% above trend.</span></p>
<p><span>That seemed to be a welcome lift in momentum from the second half of 2014 when the average growth rate was 0.67% below trend. However in the last four months the growth rate has slowed from 0.03% below trend to 1.14% below trend.</span></p>
<p><span>This emerging below trend growth profile for the economy is certainly in line with our own views. Note that the June quarter national accounts confirmed that Australia’s six month annualised growth slowed to a 2.1% pace in the first half of 2015 with our forecast for the second half of a still below trend 2.5%. Looking further out we expect growth in 2016 of 2.7% (recently revised down from 3.0%).</span></p>
<p><span>With trend growth in the economy now likely to be nearer 2.75% than 3% our forecast for GDP growth in 2016 of around trend growth looks a little vulnerable based on this recent print from the Leading Index. The Leading Index gives us a guide into the likely momentum in the economy through the second half of 2015 and into 2016. Today’s print points to a likely ‘below trend’ start to next year.</span></p>
<p><span>Key factors behind our current expectation of a modest lift in the growth pace in 2016 are: a lift in consumer spending growth from 2.5% in 2015 to 2.9% in 2016; a modest improvement in non-mining investment spend largely offsetting a sharper slowdown in mining investment and an increased contribution from net exports (adding 1.3ppts to GDP growth, up from 0.8ppts in 2015). These positive factors will be partly offset by a much smaller contribution to GDP growth from dwelling investment as the residential building boom reaches its peak.</span></p>
<p><span>Over the last six months the six month annualised growth rate has slowed from being 0.06% below trend to 1.14% below trend. Key drivers of this slowdown have been: S&amp;P/ASX 200 (–0.74ppts); dwelling approvals (–0.20ppts); aggregate monthly hours worked (–0.20ppts); the Westpac-MI Consumer Expectations Index (–0.17ppts); commodity prices in AUD terms (–0.17ppts); US industrial production (–0.08ppts); and the Westpac-MI Unemployment Expectations Index (–0.07ppts).</span></p>
<p><span>Partly offsetting these factor has been the yield curve which has added 0.53ppts.This effect has come about despite some recent flattening of the yield curve as the short end of the curve begins to doubt the need for a near term rate cut.</span></p>
<p><span>The recent sell off in the sharemarket has been particularly important in explaining the sharp fall in the growth rate between July and August. Of the 0.74ppt fall in the growth rate between July and August, 0.46ppts came from the sharply lower S&amp;P/ASX 200.</span></p>
<p><span>The Reserve Bank Board next meets on October 6. There is little chance that the Board will decide to change policy settings. Policy will now be focussed on the growth outlook for 2016. This print of the Leading Index is casting some early doubt around the Bank’s forecast of 3% growth for 2016. However the Bank is still expecting that the unemployment rate has stabilised despite growth in 2015 likely to be in the 2-2.5% range.</span></p>
<p><span>A particularly important point here is that the make-up of growth seems to be more ‘jobs intensive’ than we may have expected, with the lift from dwelling construction, household expenditure and net services exports being particularly important. </span></p>
<p><span>The Board is very likely to await more evidence around the labour market and specifically the beneficial impact on the jobs market resulting from the sharp fall in the Australian dollar before it moves again.</span></p>
<p><span>At Westpac we do not expect any further rate movements before 2017.</span></p>
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<p><span><em>Bill Evans </em></span><em>is chief economist of <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>.</em></p>
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Leading Index slows well below trend: Westpac's Bill Evans

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<p><span style="line-height: 1.3em;">You’ve found what you think is a brilliant development site.  Now it’s time to jump on that roller coaster and start the ride of your life as you commence the analysis process.  Will the project be feasible?  What is feasible anyway?  </span></p>
<p>Feasible is really another word for “is it going to be financially worth it for you to spend your time, energy, money, blood, sweat and tears developing this site?”</p>
<p>Some advice I can give you about property investing and anyone in property will also tell you, to stay emotionally unattached to the property, as this is where bad decisions can be made. I have seen it many times and this is where it can all come undone.</p>
<p>Firstly, it’s important to determine your development strategy and your investing criteria prior to looking for a development site.  Your strategy may include:</p>
<ul>
<li>Land Subdivision</li>
<li>Renovate an existing dwelling</li>
<li>Dual occupancy or low density development</li>
<li>Renovate an existing dwelling and build new villas/units also on the land</li>
<li>Medium density development</li>
<li>All of the above</li>
</ul>
<p>Your budget will help to determine your development strategy. A simple land subdivision will be less costly (but not necessarily quicker) than a larger villa/unit development for instance. </p>
<p>As part of your strategy, you will need to think about what profit margin you would feel comfortable making from a development.   You may have heard about the ‘20% profit margin’ rule for developers?   Once all development costs are taken from the potential sale result of the properties, (when selling the properties) there will be a 20% profit margin.  Personally, I don’t always work back from a certain profit margin as I find this restrictive.  </p>
<p>Most Property Bloom clients are looking to boost their portfolios, create some equity and hold the new properties long term, so we also need to meet other criteria such as rental returns and depreciation benefits on completion.  </p>
<p>To determine the feasibility of a site, you will need to:</p>
<ul>
<li>Talk to an accountant who specialises in property and one who preferably develops property themselves as they can advise you on the best structure or entity to purchase under and explain the tax implications when developing such as GST and CGT.  </li>
<li>Meet with a finance broker or a bank to determine your budget and the best loan structure for your development.  It’s important to choose a lender that offers construction loans for more than one dwelling and find out what their lending criteria is around this i.e. not all residential lenders will lend to you for a four unit site for instance.  Check interest rates on these loans.</li>
<li>Meet with solicitor to determine their costs. They will check for restrictive covenants or easements that may affect the land. They will also make sure services are available and connected especially if you are developing in a new area as well as finalising the deal for you.</li>
<li>Read the local Development Control Plan (DCP) and Local Environment Plan (LEP) and speak with your council’s town planner to find out DA and CC (Construction Certificate) fees and charges. </li>
<li>Meet with an architect and builder to determine what you can build on the site and estimated construction costs.  Some builders offer standard designs which will save you design fees.  If they do this, then they will be familiar with the local planning requirements.  If you are not happy with a standard design, engage a local architect to design specifically for the site. Get a quote.</li>
<li>A surveyor will give you advice on the subdivision process and estimate costs relating to the subdivision including sewer extension and service connection costs.  </li>
<li>If you are time poor and/or inexperienced, then factor in a cost to use a project manager. The cost can be taken up in the depreciation schedule and you will save a lot of time.</li>
<li>Talk to real estate agents to determine the value of your development and rental returns on completion and their management costs if you are holding as this will have huge impact on the success of the feasibility.  It's important to take current market conditions into account.</li>
<li>Research other costs such as Stamp Duty and if there are any government grants applicable that  may offset some of the stamp duty, insurance costs and interest/holding costs.</li>
</ul>
<p>The aim is to keep the above costs to a minimum so you will receive a higher profit margin. At Property Bloom we have negotiated discounts with all our suppliers, builders and consultants. Even our preferred property managers give our clients a discounted management fee, so if you can do the same, you'll make a good saving.  </p>
<p>Compile a spread sheet for the costs or there are software programs available to help you with this process.</p>
<p>The more development sites you assess, the quicker you'll understand which ones are feasible and which ones just don't stack up. Have fun and enjoy the ride!</p>
<p><span style="line-height: 1.3em;"><em>Jo Chivers is chief executive officer of property development project managers <a href="https://www.propertybloom.com.au/about" target="_blank">Property Bloom</a>.</em> </span></p>
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