<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

Property News

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<p><span>Across the country there were 47,483 unique new property listing over the 28 days ended 7 February 2016. The number of new property listings is 11% higher than at the same time last year.  </span></p>
<p><span>If we look back over recent years it is the highest number of new property listings at this time of year since 2010. If we look at the combined capital cities we have also seen a large ramp-up in new listings with 27,430 new listings which is 5.4% higher than at the same time last year.  </span></p>
<p><span>Again it is the highest number of new property listings over the corresponding period since 2010. The first chart shows that over the Christmas / New Year period there is typically a sharp fall in new listings.  If history is any guide new listings are likely to continue to rise until the middle of March.</span></p>
<p><a href="/images/2016/02/12/Chart-1-1-580x139.jpg" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2016/02/12/Chart-1-1-580x139.jpg" alt=""></span></p>
<p> </p>
<p><a href="/images/2016/02/12/Chart-2-1-580x144.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/02/12/Chart-2-1-580x144.jpg" alt=""></p>
<p> </p>
<p><span>Total residential property listings experience a seasonal fall each Christmas / New Year period however, the slowdown is nowhere near the magnitude of the slowing in new listings.  The most recent data in the chart also indicates that total listings are actually starting to decline.  Across the country there are 239,398 total unique property listings which is -1.6% lower over the week but 0.2% higher relative to the same period in 2015.  </span></p>
<p><span>For the combined capital cities there are 99,137 total unique property listings which is -1.0% lower over the week but 2.6% higher year-on-year.  Much like new listings, total listings typically continue to rise up until the middle of March each year.  Given this it will be interesting to see if the fall in total listings over the most recent week will be short lived or whether there are some different factors at play.</span></p>
<p><a href="/images/2016/02/12/Chart-3-1-580x326.jpg" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2016/02/12/Chart-3-1-580x326.jpg" alt=""></span></p>
<p>If we look at the number of listings across the individual capital cities there are some rather interesting differences across the cities. While new listing overall are higher than a year ago they are lower in Sydney and Darwin. </p>
<p>In fact new listings in both Sydney and Darwin are at their lowest level for this time of year since 2012. Elsewhere new listings in Melbourne and Brisbane are at their highest level on record (since 2007) for this time of year. In Adelaide and Perth new listings are at their highest levels for this time of year since 2010 and in Hobart and Canberra they are at their highest levels at this time of year since 2014. </p>
<p>Whether the surge in new listings in most capital cities is in response to a belief that housing demand is improving or trying to beat a potential slowdown remains to be seen.  The rise in Perth new listings in particular is counterintuitive considering it has been the weakest capital city housing market over the past twelve months and you would expect given those conditions fewer people would be looking to sell.</p>
<p>Turning to total listings, although they are 2.6% higher year-on-year across the combined capital cities, Sydney, Perth and Darwin are the only cities in which total listings are higher than a year ago. This seems more in-line with market conditions with concerns the Sydney market is slowing and values falling in Perth and Darwin it appears that total listings reflect the slowdown in sales activity in these markets. </p>
<p>If we look at the other capital cities relative to the same time of year previously, Melbourne listings are at their lowest level since 2011, Brisbane its lowest since 2008, Adelaide and Hobart listings are at their lowest levels since 2010 and Canberra listings are at their lowest level since 2014.  The relatively low level of stock across these cities has the potential to spark competition for the available stock and lead to increasing values. </p>
<p>Of course this would only occur if buyer demand is also rising and it is a little too early in the year to tell if that is occurring.</p>
<p><a href="/images/2016/02/12/Chart-4-1-580x207.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/02/12/Chart-4-1-580x207.jpg" alt=""></p>
<p>The CoreLogic RP Data Listings Index tracks pre-listing activity by real estate agents across our proprietary platforms. The index points to properties about to be listed for sale and correlates with new listings data.</p>
<p>At a national level, the listings index is at its highest level since early October of last year however the seasonally adjusted data still shows the seasonal slowdown. In terms of a comparison to the current reading compared to the comparable week in past years, the Index is at its highest level for this time of year on record.</p>
<p>Looking at the Listings Index across individual capital cities shows some varied trends when we compare the current value to the value over the same week in previous years.  The Index is lower relative to a year ago in Sydney (-8.9%) and Adelaide (-3.1%). In Melbourne, Brisbane, Hobart and Darwin the Index is at a record high for this time of year.  In both Perth and Canberra the Index is at its highest level for this time of year since 2011. Based on this data we can expect over the coming weeks new listings to be higher than they were across most capital cities.</p>
<p>The listings data and Listings Index will be interesting to track over the coming weeks. The capital city housing markets were showing softer value growth conditions over the second half of 2015 however, early indicators for 2016 have showed a bit of a rebound in the CoreLogic Home Value Index and improved auction clearance rates.  It is important to note that the indicators early in the year are based on a thinner number of sales so it will be important to track the trends as they are updated week to week.</p>
<p>What we do know is that the amount of properties listed for sale both in terms of new listings and total listings is high and it will be interesting to see how well these properties are absorbed by the market over the coming weeks and months.  Particularly as auction volumes and buyer activity typically starts to pick-up between now and Easter.</p>
<p><em>Cameron Kusher is research analyst for CoreLogic RP Data. You can contact him <a href="https://blog.corelogic.com.au/about/" target="_blank">here</a>.</em></p>
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ckusher-ujnxiKuFQs

New residential property listings are ramping up quickly in 2016: Cameron Kusher

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<p><span style="line-height: 1.3em;">Two childcare centres were much sought after at Burgess Rawson's 100th portfolio auction in Melbourne.</span></p>
<p><span>The one in Hampton sold for $3.95 million and the other in Heatherton for $3.2 million.</span></p>
<p><span>“Both childcare centres attracted strong and competitive bidding with both Hampton and Heatherton selling on circa 5.6% yields," selling agent Adam Thomas said.</span></p>
<p><span>"These investments continue to be highly sought after due to the long secure leases to national tenants and are underpinned by the high underling land value coupled with the inherent value of the business.” </span></p>
<p><span>The 461-463 Bluff Road, Hampton site (above) is leased for 15 years to Only About Children (OAC) till 2030, with three 10-year options.</span></p>
<p><span>OAC is a high-end childcare provider with 31 locations across Melbourne and Sydney's affluent suburbs, including Armadale, Camberwell, Coogee, Cremorne, Mosman, Neutral Bay and Rose Bay.</span></p>
<p><span>The rent is $224,985 per annum and there is a fixed annual 3% rent increase.</span></p>
<p><span>The tenant pays all usual outgoings.</span></p>
<p><span>The main road site is spread over 1,149 square metres with a 34-metre frontage and is licensed for 56 long day care (LDC) places.</span></p>
<p><span>The location is just 14 km from the Melbourne CBD and minutes to Beach Road and the Nepean Hwy.</span></p>
<p><span>It was extensively redeveloped in 2015, providing for income tax saving depreciation.</span></p>
<p><span>The Heatherton property sits at 16-20 Arco Lane and is leased to G8 Education Limited.</span></p>
<p><span>It is a new 10-year lease to 2025 with two further five-year options to 2035.</span></p>
<p><span>ASX-listed G8 Education is a childcare provider with 450+ centres across Australia.</span></p>
<p><span>The facility is built on 595 square metres and is licensed for 90 LDC places.</span></p>
<p><span>The land area is a 2,232 square metre commercial zoned site with 16 car spaces.</span></p>
<p><span>The rent is $180,000 per annum and the tenant pays all outgoings including land tax.</span></p>
<p>Beginning in 1975, Burgess Rawson established a nationwide network of offices and is Australia's largest locally owned and operated commercial property agency, marketing more than 10,000 properties and generating sales in excess of $25 billion over the past 40 years. For more information, <a href="https://www.burgessrawson.com.au/portfolio-auctions" target="_blank">click here</a>.</p>
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jonathanchancellor-7SQnKwU6yx

Two childcare centres see strong bidding at Burgess Rawson auction 

<html><body>
<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>
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<div>Why are regional prices not keeping pace? And particularly why has this become the case now?</div>
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<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>
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<div>Regional population growth has been considerably weaker ex-Queensland, and there is generally speaking more land available for development.</div>
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<div>Since the financial crisis there has been another key driver for the larger capitals: jobs growth. </div>
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<div>The ABS released its Detailed Labour Force figures for August 2015 today which underscored some important trends.</div>
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<div><strong><span style="text-decoration: underline;">Cities creating jobs</span></strong></div>
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<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>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>
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<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>
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<div>However, over the same time period regional Victoria has by comparison created almost no additional employment (+10,000) on a net basis.</div>
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<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>
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<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"><strong><span style="text-decoration: underline;">Employment growth</span></strong></div>
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<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>
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<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>
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<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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<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>
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<div>New South Wales also has the lowest level of mortgage delinquency rates according the latest figures from Moody's.</div>
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<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>
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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>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>
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<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>
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<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>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 style="line-height: 1.3em;">At Property Bloom we are always trying to improve our process.  We put a lot of time and effort into designing our villas, houses or units whether they be for a dual occupancy or multi unit project, we want our finished product to look better than the standard 'investor stock'.</span></p>
<p>Of course, we need to do this in a cost effective way and so I've found that spending time on key areas like front façades, kitchens and bathrooms can add a wow factor without breaking the budget.</p>
<p>I read this great story about <a href="https://www.houzz.com.au/ideabooks/53600916/list/12-hot-kitchen-trends-set-to-sizzle-in-2016" target="_blank">12 hot kitchen trends</a> and was pleased to see we were meeting seven of the twelve trends in the kitchens we are building right now.</p>
<p>Here's a photo of a kitchen in one of our recently completed developments:</p>
<p><img src="/images/2015/10/16/Screen%20Shot%202015-10-16%20at%209.45.50%20AM.png" alt="" width="508" height="325"></p>
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<p>Timber features for kitchens continues to trend. We've used it in our kitchen to add warmth and it was nice to see the report notes that walnut tones  will be trending next year. The timber cupboards we've used are Polytec European Walnut. </p>
<p>You can also add texture by using a textured product to your cupboards. We did this by using a textured melamine to the timber areas. Which brings me to the next trend - texture.</p>
<p> Most kitchen manufacturers offer a good choice of textured laminate benches or melamine cupboards and they are usually the same price as flat surfaces.  You can add texture to your splashback tile. We have used a softly lined splashback tile, although it's hard to see in the photo.</p>
<p>We purposely kept the main cabinetry neutral which ticks another trend box. We only wanted two main features for the kitchen which is the use of timber and stone for the benches.</p>
<p>Thin benches are in and it's goodbye to chunky style benches.  This is a relief as we used a thin, engineered stone bench with mitred edges. This was a choice more around cost than trend as the thicker bench tops were more expensive. <br><br></p>
<p><img src="/images/2015/10/16/Screen%20Shot%202015-10-16%20at%209.46.48%20AM.png" alt="" width="553" height="340"></p>
<p>Engineered stone benches have become so well manufactured that it can be hard to tell the difference from natural materials.In an investment property it doesn't make sense to use real marble or granite so we are meeting the trend to use engineered materials. I love the wider choice of colours and tones you can get from the various supplies of engineered stone benches. It's important your bench works in well with your flooring, especially if you are using a mitred or waterfall edge where the bench will meet the floor.</p>
<p>Speaking of flooring, we've used a stone look floor tile with a polished finish. I like the floor to reflect light which can give the impression of a large, clean space. But perhaps this is not right on trend as I think more natural and matt finishes are in right now.</p>
<p>For our pendant lights, we've used a small white pendant with a silver foil lining inside it. This adds a little touch of glam. So we are only just half ticking the trend of using precious metals. If you really want to be on trend you should incorporate some brass, cooper or gold which may be used in the lighting, tapware, rangehood or splashback.But we didn't want to compete with the natural timber tones that were already a feature. Be careful not to have too many features as they can compete with each other giving you a cluttered or busy look.</p>
<p><img src="/images/2015/10/16/Screen%20Shot%202015-10-16%20at%209.47.32%20AM.png" alt="" width="436" height="277"></p>
<p>I find designing the kitchens and choosing the colours one of the most enjoyable parts of property development and valuers have told me that a well designed, spacious kitchen with quality features will add value to your property. If you'd like to know just how much this kitchen cost us, then send me an email and I'll be happy to share.      </p>
<p><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></p>
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Is your property development ticking kitchen trends?: Jo Chivers

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<p>In February the Reserve Bank Governor Glen Stevens admitted concern over the Sydney property, with expectations that the median house price ‘may hit $1 million’ by the end of the year. We all know that prediction has already been realised and last week Sydney’s median house price just crept past the $1,000,000 mark.</p>
<p>Since February there has also been an ongoing discussion about the impact of investors on the marketing. Investors have been very active buyers and this shows up in the demand for finance with investors active across the established and new home market, and also buying new apartments off the plan. Among these buyers there are big numbers of SMSF.</p>
<p>With investors being seen as dominant in the market there are now strong concerns being expressed that they are in part (along with offshore buyers) shutting out first home buyers, and with the advantage of very low interest rates possibly over-heating the market. So much so now that the banks and banking regulators have started to make it more difficult for property investors (and it must be said for offshore buyers) by taking a number of steps. These include higher interest rates and bigger deposits for investors and a restriction of loan funds that the banks allocate to this sector of the market.</p>
<p>Taken as a package these measures look like a strong reaction aimed at investors. In accessing if these steps are warranted or not, I think we should firstly remember that property investors have always been an important part of the market, and that they are a very diverse group. This is not a sector dominated by the ‘rich and famous’.</p>
<p><strong>Are Restriction Really Necessary?</strong></p>
<p>Now that some investors will face additional hurdles I think we need to ask if this group is simply an easy target and will, for instance, the measures announced do anything to directly help first time buyers. This sort of direct intervention into the market is rare and there’s little doubt that it’s driven by the idea that the Sydney market and parts of Melbourne in particular, may be overheating.</p>
<p>However just targeting investors in isolation looks puzzling. Mainly I suggest from the point of view that this is as mentioned earlier it’s a very diverse group. Low interest rates and the search for yield are two factors and the flow of SMSF investment I think is also very much tied up in the continued debate over superannuation.</p>
<p>For this group property has always had special appeal because it’s seen as a stable and long-term investment. SMSF already have to comply with a lot of tough rules when they invest in property and so such investments do not really strike me as speculative, in fact just the opposite.</p>
<p>Are such targeted changes really well founded, because from a financial view point I find myself asking why is one dollar of investment better than or worse than another?</p>
<p>I would think that most investors are more than capable of paying their obligations than an owner-occupier when someone else is after all usually paying the rent. Historically it has always been rents and tenants demand that has acted to temper investor demand.</p>
<p>Prior to some of the banks last week lifting interest rates for investors, there was already evidence that increased supply of new apartments was starting to slow down rental growth, a trend that I had noted earlier [see posts June 17th-19th] when looking at 2-3 year rental market trends as reflected in figures from the NSW Rental Bond Board.</p>
<p>And so given the very wide range of factors at work in the property market there is I feel, a need to question why are the regulators and banks are interfering with market process in one very select area.</p>
<p>Appreciating that there are tighter controls also now being focussed on some offshore buyers both measures look like high profile and doubtless popular measures among some sections of the community.</p>
<p>However if the aim is partly to give FHB an improved chance to enter the market, then I suggest that direct action should be taken to approve more land release, ease some rules around apartments, like lifting height restrictions along with much more effort to deliver infrastructure.</p>
<p>While above all, the tax burden, both direct and indirect on homebuyers, should also be addressed as readily as other financial measures now aimed at investors.</p>
<p>This coming at a time when the suggestion of a higher GST would further disadvantage first time buyers without really substantial changes to crippling stamp duty which now stands at $40,523 in NSW on the median house price of $1,000,616. The really horrific fact is that the rates have not been reviewed since December 1986 when the median Sydney house price was $98,325 and this is despite price creeping or the recent price explosion, a fact that is simply a disgrace and shows government’s addiction to property related tax revenue. For any sort of reform this does make investors, and offshore investors look easy targets.</p>
<p><em>Peter Chittenden is managing director for residential of Colliers International. He can be contacted <a href="https://www.projectagenda.com.au/" target="_blank">here</a>.</em></p>
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Throwing brick bats at investors: Peter Chittenden

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<p>On Wednesday I spoke at seminars in Sydney where I heard about a property investment strategy that is different in many respects to one I would pursue. But it<span>’</span>s a very good and successful one, nevertheless.</p>
<p>It reinforces a point about which I<span>’</span>m constantly aware: there<span>’</span>s no single strategy for property investment that can be called the right one. The best strategy for buying property and building a portfolio differs from one person to the next.</p>
<p>Here<span>’</span>s what David McMillan of Performance Property Advisory does on behalf of his clients. He and his team identify one market which, above all others, stands out as the one that offers the most value.</p>
<p>They focus exclusively on that market and devote big resources there to learn all they can, establish a network of service providers and be ready to move quickly when the right properties become available.<span style="line-height: 1.3em;"> </span></p>
<p>A core plank of the strategy is to buy in areas likely to show good growth in the first three years. Early growth creates the equity that helps to fund the next purchase and build the portfolio.</p>
<p><span>“</span>People can<span>’</span>t stump up a deposit of $100,000 or $150,000 every time they want to buy another property,<span>” </span>McMillan says. <span>“</span>So we buy them something for $500,000 that will be worth $650,000 in three years time. They build their portfolio using the equity that has been created.</p>
<p><span>“</span>Most investors only get as far as one property, because they make mistakes. Those mistakes are leveraged and amplified.<span>”</span></p>
<p>McMillan and his team has a track record of targeting future growth markets well ahead of the pack. They were buying in prime suburbs of Sydney in 2012, in advance of the three years of strong price growth that followed.</p>
<p>Once the temperature rose as the herd stampeded into Sydney, the PPA team exited. The properties bought for their clients in Sydney have grown 40% to 60% in value.</p>
<p>The next focus was Brisbane, with the emphasis on prime suburbs close to the CBD. They started buying there in mid-2013 and have bought close to 300 properties for clients. They<span>’</span>re now on the way out of Brisbane, as more investors come into that market, making it harder to find good-value investments.</p>
<p><span>“</span>We buy established property, not new property. New property is the most expensive way to buy real estate and the least effective way to grow a portfolio. We look for scarcity and we look for good quality property in good areas.<span>”</span></p>
<p>How do they know the right time to focus on a particular market? One of the key research tools is charting the relationship between prices and rents.</p>
<p>When Sydney had gone multiple years without significant price growth, but rents had grown considerably, they knew it was the right time to strike. <span>“</span>We want a location with price stagnation for 5-7 years plus a significant increase in rents,<span>” </span>he said.</p>
<p>An example was the top end suburb of Rose Bay. In 2012, the median price had grown only 15% in the previous eight years. But rents had grown 70%. According to the formula, that meant the suburb and many others like it in Sydney were primed for a growth spurt.<span style="line-height: 1.3em;"> </span></p>
<p><span>“</span>It was very clear what was going to happen in Sydney,<span>” </span>McMillan says.<span style="line-height: 1.3em;"> </span></p>
<p>McMillan offers three keys to successful investment:  buy in markets showing value, buy at or below the median price for the target region, and buy quality.</p>
<p><span>“</span>We won<span>’</span>t recommend a property to a client that we wouldn<span>’</span>t put in our own portfolio. If you don<span>’</span>t like it and wouldn<span>’</span>t live in yourself, then it<span>’</span>s probably not a good property to invest in.<span>”</span></p>
<p><span><em>TERRY RYDER is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a></em></span></p>
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Charting the relationship between prices and rents: Terry Ryder

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<p>The herd mentality and the FOMO syndrome drive far too many investment decisions in Australian real estate.</p>
<p>It helps to explain why most Australians who attempt property investment have a bad experience. </p>
<p>When people are driven by an impulse to do what others are doing (the herd mentality) or to get in because they don’t want to miss all that lovely capital growth they keep hearing about (the FOMO – Fear Of Missing Out – syndrome), they’re buying well after the boom started.</p>
<p>Many investors buy real estate at the peak of the cycle. Worse, some buy after the peak.</p>
<p>People are still out there bidding up prices at Sydney auctions, driven by the FOMO syndrome, unaware that the peak has passed and Sydney’s boom is fading.</p>
<p>It means that fundamentally they are paying too much and destroying their chances of maximizing capital growth.</p>
<p>No one ever got rich following the herd. Some have succeeded by leading the herd but the truly successful people are those who run in the opposite direction to the herd.</p>
<p>People love the comfort of the pack. They would rather be part of a herd stampeding towards a cliff, than detach and run in the opposite direction, towards safety and potential prosperity.</p>
<p>Because of the power of the herd mentality and the FOMO syndrome, most people buy when prices are high.</p>
<p>When the market is down, they stay out of the market. They’ll get back in when they read that the herd is running again.</p>
<p>Crazy stuff. </p>
<p>Right now, the Perth market is down. I’ve been suggesting to people it’s a great time to consider buying there. The Perth market, which was strong in 2011 and 2012, peaked early in 2013.</p>
<p>The heat has long since evaporated from that market, there’s no competition from other buyers, prices have eased off and the buying is good.</p>
<p>You just have to believe that the Western Australian economy has a future and that the Perth property market will rise again.</p>
<p>Taking a long-term view, Perth is a strong market with a great track record. Its 10-year capital growth record is the strongest among the state and territory capital cities, much better than Sydney’s or Melbourne’s.</p>
<p>It has a history of strong population growth and a buoyant economy boosted by its links to the resources sector. It’s currently struggling but that won’t last. </p>
<p>Perth has also shown itself to be resilient during periods of downturn. I don’t expect any major price decline in the current phase, with the exception of oversupplied inner-city apartment markets which should be avoided.</p>
<p>While awaiting recovery in the Perth market, the best strategy to maximise capital growth prospects is to follow the infrastructure trail. Find a location primed to benefit from spending on new infrastructure, especially transport infrastructure, and well-linked to major jobs nodes.</p>
<p>Locations with those qualities include the precincts around Rockingham, Fremantle, Midland and Forrestfield.</p>
<p><em>Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a></em></p>
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The Perth property market will rise again: Terry Ryder

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<p><span>Last week, the auction clearance rate across the combined capital cities was 71.2%, the lowest weekly clearance rate since February this year, however it was the fifth busiest week for auctions so far this year (2,654). </span></p>
<p><span>To put this into perspective based on reported results, last week an estimated 1,890 homes were sold as a result of an auction campaign across the nation’s capital cities. This week, CoreLogic RP Data is tracking just shy of 2,600 auctions, showing the number of homes being taken to auction remains relatively steady.</span></p>
<p><span>This week, Melbourne is expected to host 1,120 auctions, followed closely by Sydney with 1,068. Last week, across both cities the clearance rates fell on a week-on-week basis, down to 74.3% for Melbourne and 73.1% for Sydney. This result for Sydney was the lowest recorded so far this year; however, it still represented the second strongest result across any other capital city market.</span></p>
<p><span>Across Adelaide, auction volumes will rise this week, up from 89 last week to 101 this week. In Canberra, 124 auctions are scheduled this week, compared to a lower 79 last week. Meanwhile, auction volumes remain relatively steady in Perth, down slightly from 35 last week to 32 over<br> the current week.</span></p>
<p><span>Brisbane is expecting 149 auctions this week, compared to 179 last week and 154 at the same time last year.</span></p>
<p><span>The busiest suburb for auctions across Australia this week is located in Sydney, with 19 Mosman auctions to be held. Mount Waverley (Vic) and Reservoir (Vic) both have 18 residential auctions this week. </span></p>
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Combined capital cities record lowest clearance rate since February: CoreLogic RP Data's Shana Miller

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<div>The ABS released its Labour Force data for August 2015, which came in somewhat better than had been expected. </div>
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<div>The market had feared material downward revisions to employment figures following amendments to population growth assumptions, but happily in the event the impact was fairly benign.</div>
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<div>It is nevertheless worth looking at the revised data in the long run employment chart below to show the new shape of the chart...which is to say, essentially very similar.</div>
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<div>Total employment was revised down, but over the year total employment still increased by +235,000 or +2.0% (up from +1.8% in the year to July), an impressive headline figure and the strongest annual increase in the seasonally adjusted data series since April 2011.</div>
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<div>Handily this rate of employment growth is now far ahead of the rate of population growth, which following the latest Arrivals &amp; Departures (see link for more) figures I now estimate to be tracking at only around +1.3%.</div>
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<div><span>Employment rose by +17,400 in August following an upwardly revised gain in employment of +39,200 in August, which is a fine result in the circumstances and well ahead of market expectations of +5,000.</span></div>
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<div><span>Full time jobs accounted for most of the monthly gains, and over the past year there have been more full time jobs created (+130,700) than part time positions (+104,200) - although as you can see below part time employment is taking a more significant role in the labour force than it once did. </span></div>
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<div class="separator"><strong><span style="text-decoration: underline;">State versus state...&amp; the unemployment rate</span></strong></div>
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<div class="separator">The net employment gains in August were mainly accounted for by Queensland (+11,200) and New South Wales (+9,200), with the New South Wales economy adding a thunderous +118,800 jobs over the past year, more than half of the total for Australia, and overwhelmingly full time positions.</div>
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<div class="separator">Victoria (+63,000), Western Australia (+22,100) and Queensland (+20,700) also added net employment over the past year, but South Australia has gone backwards over the same time period. </div>
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<span>I have been warning here for at least a couple of years now that the longer this ugly dynamic continues and without a kickstart for the local economy the greater the fallout could be in terms of South Australian unemployment. </span><br><span><br></span><span>Amazingly there were more full time employed persons in Q4 2007 in South Australia than there are today. </span><br><span><br></span><span>The below graphic shows that while the New South Wales economy has added a stonking +267,200 jobs over the past five years, the two southern states combined have added essentially none. </span>
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<div>That said, with the depreciating dollar the outlook for Tasmania has improved considerably over the past 18 months, and without sigificant population growth to be absorbed the trend unemployment rate in the Apple Isle has declined from a peak of 8.1 per cent in August 2013 to just 6.5 per cent today.<br><br>That's great to see.</div>
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<div>Unfortunately the same cannot be said for South Australia where the trend unemployment rate has spiked alarmingly from 6.6 per cent to 8.1 per cent and rising in less than a year. </div>
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<div>Concerningly it appears likely that there may yet be worse to come as the "Holden effect" takes its toll across the suburbs of Adelaide, with mining and manufacturing two of the worst hit sectors of the labour market.</div>
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<div>The unemployment rate in resources rich Western Australia has also continued to trend up to 6.1 per cent from just 3.7 per cent in June 2012. </div>
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<div>New South Wales has been the clear standout despite soft regional employment growth, with low interest rates allowing the Sydney economy and housing market to fire on all cylinders. </div>
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<br>At the national level despite some statistical noise along the way the trend unemployment rate has now been steady for the past 12 months at 6.2 per cent.</div>
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<div>With the rate of employment growth comfortablt outpacing the rate of population growth, has the unemployment rate therefore peaked for this cycle? Perhaps, but the jury is still out on that one. </div>
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<div><strong><span style="text-decoration: underline;">The wrap</span></strong></div>
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<div>This was a robust result with the economy adding a sprightly +235,000 jobs over the past year and with corresponding important implications for monetary policy settings. </div>
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<div>Had the unemployment rate jumped higher as had been anticipated by some analysts prior to this release then the Reserve Bank may well have been inclined to pull the trigger on further interest rate cuts.</div>
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<div>Fortunately in the event the labour force figures were considerably better than had been feared and markets now appear fairly certain that interest rates will stay on hold at 2 per cent through October. </div>
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<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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