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.

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;

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;

“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;

[smartcode_project:default project_id=110291 project_image_fid=302785]

<h2>Affordable product leads, premium demand remains resilient</h2>

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;

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;

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.

Jual (Shenton Park, Celsius Property) also posted a strong quarter with 28 sales, reaching 39% sold in one quarter.

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;

[smartcode_project:default project_id=148957 project_image_fid=364102]

<h2>Prices underpinned by costs, and the delivery risk is growing</h2>

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.

David Cresp said a growing challenge for private Build‑to‑Sell developers is simply securing a builder in the current environment.

“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;

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.

[smartcode_project:default project_id=108869 project_image_fid=317905]

<h2>Supply: improving later, but still constrained, and Perth lags eastern benchmarks</h2>

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;

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;

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”.

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;

Joel Robinson

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

<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.

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.

Sammut Director Julian Sammut said the group had been actively searching Brisbane for several years before identifying Toowong as the right fit.

“Brisbane was the right step for Sammut,” Sammut said.

“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.”

<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" />

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.

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.

“We are DA approved now which is very exciting,” Sammut said.

“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.”

<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" />

Bureau^proberts said the design responds to Toowong’s evolving urban character, balancing contemporary apartment living with the area’s established residential identity.

“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.

The architecture practice said the project’s form was shaped by its riverfront setting, flood considerations, neighbouring building scales, and view corridors.

“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.”

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.

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.

Sammut secures approval for debut Brisbane apartment development in Toowong

Developer Lanevick is heading back into Sydney’s apartment market after focusing more heavily on the luxury townhouse and terrace sector in recent years.

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.

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.

“Traditionally it’s been difficult for people in that market to downsize because there just hasn’t been the right product available,” Maroun said.

“We’re targeting buyers who might have 30 to 40 per cent of their house value sitting in the bank after downsizing.

“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.”

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.

“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.”

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.

“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.”

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.

“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.

Maroun said Lanevick saw a first-mover advantage within the precinct as planning controls continue to evolve to accommodate greater housing density.

“We think there’s a real opportunity there that hasn’t really been serviced properly yet,” he said.

“There’s going to be a broader evolution of the whole Gladesville village precinct over time, particularly with more activation and mixed-use outcomes.”

The Venus Street proposal will include a commercial and retail component at ground level designed to contribute to that evolving streetscape activation.

“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.

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.

&nbsp;

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

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.

The New York-based investor has focused his firm, GreenPoint Partners, on addressing the supply shortage hitting middle market housing in Australia.

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.

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.

“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.

“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.”

<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" />

GreenPoint Partners brings years of experience assembling and scaling real estate operating businesses across major markets. And Green sees a big opportunity in Australia.

“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.”

Green said being a builder-developer would give the company the capacity and flexibility it required to deliver reasonably-priced homes.

“We want it to be at that attainable level; not super high end luxury but at that attainable level,” he said.

<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" />

&nbsp;

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.

Green praised local policy settings.

“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.”

One Living is also&nbsp;looking at high-density projects and could take on more institutional funding in the future.

“The way we will be able to achieve economies of scale is through size,” Green added.

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

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.

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.

Projects by Buxton Director Heath Thompson, who is selling WM Residences, says the townhouses x that perfect middle ground be

"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.

"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."

[smartcode_project:default project_id=134646 project_image_fid=6109]

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.

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.

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.

[smartcode_project:default project_id=134646 project_image_fid=6110]

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.

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.

[smartcode_project:default project_id=134646 project_image_fid=6116]

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.

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.

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.

[smartcode_project_cta:default project_id=134646]

WM Residences fills gap in Mordialloc townhouse market

Property News

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Combined dwelling rental yield across all capital cities is at 3.5%, down from 3.8% twelve months ago, according to CoreLogic RP Data.
Results from CoreLogic RP Data's July Rental Index found the current yield in Hobart is 5.2%, Brisbane 4.5% and Melbourne 3.1%
<a href="/images/2015/09/10/Screen%20Shot%202015-09-10%20at%209.20.53%20PM.png" target="_blank">Click to enlarge</a>
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mick.cee-iDmgDDAmu8

Combined capital city dwelling rental yield at 3.5%: CoreLogic RP Data

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The top sale of the week was a freestanding home in North Bondi on approx 480sqm of level land with over 12 metre wide frontage, according to CoreLogic RP Data.
Only a stone's throw from Bondi Beach, the five bedroom home, <a href="https://www.realestate.com.au/property-house-nsw-north+bondi-120467205" target="_blank">60 Hastings Parade</a>, (above) sold at auction for $5,535,000.
60 Hastings Parade, North Bondi, NSW 5 bed, 4 bath, 2 car house $5,535,000 through Raine &amp; Horne Double Bay 
3a Birriwa Place, Northwood, NSW 4 bed, 4 bath, 2 car house $5,260,000 McGrath Estate Agents 
13 Carlotta Road, Double Bay, NSW 5 bed, 4 bath, 3 car house $4,950,000 Phillips Pantzer Donnelley
7a Inkerman Street, Mosman, NSW 5 bed, 4 bath, 2 car house $4,900,000 Simeon Manners Property Mosman 
25/7 South Steyne, Manly, NSW 3 bed, 2 bath, 2 car unit $4,675,000 McGrath Estate Agents 
7 Kitchener Street, Oatley, NSW 5 bed, 5 bath, 4 car house $4,225,000 McGrath Estate Agents 
8 McEvoy Street, Kew, NSW 6 bed, 5 bath, 8 car house $4,200,000 Castran Gilbert South Yarra 
15 Homebush Road, Strathfield, NSW 4bed,1bath,1car house $4,125,000 Strathfield Partners Strathfield 
4 West Street, Strathfield, NSW 6 bed, 4 bath, 2 car house $4,100,000 Strathfield Partners Strathfield 
2a Kelburn Road, Roseville, NSW 5bed,3bath,2car house $4,000,000 McGrath Estate Agents 
Source: CoreLogic RP Data
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North Bondi $5.53 million sale in CoreLogic RP Data top 10 list

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Di Jones Real Estate has announced the launch of their Southern Highlands division, born from "strong existing synergies between the agency’s core market of the Eastern Suburbs and the Southern Highlands."
Locals Kate McCullagh, Elizabeth Tregear and Anita Roelevink will lead the Di Jones operations that will not have a traditional shop front but will be digitally positioned and aligned with the Eastern Suburbs head office.
"The internet has reshaped how real estate is delivered and how people search for property," the agency noted.
Recent investments by<a href="https://www.dijones.com.au" target="_blank"> Di Jones Real Estate</a> in digital media and marketing strategies had increased website visits by 30% with four times more visits via mobile devices, and shown a six-fold increase in viewings of its online videos.
The agency database is more than 28,000 buyers throughout NSW, general manager Kylie Walsh said.
 
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jchancellor-FAypfDUnLy

Di Jones announces Southern Highlands division

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Properties around the Gold Coast region of Southport have been earmarked for concern due to supply levels and sale volumes for new apartments, according to Herron Todd White.
Herron Todd White's September Month in Review noted a streamlined PDA approval process has led to a larger volume of approvals being given for large yield high-rise buildings over the last two to three years.
The review stated while development to date has focused on smaller projects, where demand appears to be adequately absorbing supply, there is a degree of concern to the overall volume of approved stock that potentially could be brought to the market if a number of the approvals were acted on.  
"There are a large number of 100 plus apartment highrise projects approved within the Southport PDA area and that a proportion of these have been obtained by ‘speculators’, with the intent to on sell the approved site, likely to overseas interests," it noted. 
"To date, we have seen only limited local developers or lending institutions show an appetite for these larger scale developments in Southport, and the reality is that while a larger potential supply of apartments is approved for Southport, a number of the proposals, may in fact, not be acted on in the current development cycle.
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"In the improved market, there has been a noticeable increase in the number of proposed fringe residential apartment projects in areas which are traditionally regarded as more suburban low density housing locations."
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Speculators aplenty in Southport's high-rise property developments: HTW

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Two new properties have made the top ten most discounted properties nationwide list from SQM Research, one on 15 acres in West Australia's Swan Hill and the other known as The Gasworks in South Australia's Strahalbyn.
According to Louis Christopher from SQM Research, the acerage at <a href="https://www.realestate.com.au/property-acreage+semi+rural-wa-herne+hill-119361175" target="_blank">163 William Street, Herne Hill</a>, coming in at number four on the list, would be suited to someone wanting to knock down and build their very own country retreat.
<img src="/images/2015/09/09/3604740-08.jpg" alt="" width="456" height="342">
"This family home features a whopping 15 acres and is livable, consists of three bedrooms and one bathroom. The listing suggests that the home is not for everyone, and the property would be suited for someone wanting to knock down and build their very own country retreat," he said.
"The land is cleared and majority leveled, with the current owners using the property to breed Alpacas. 
"The property has been on the market since March 20th 2015. Since then the vendor has dropped the price from $1,590,000 to $990,000, a total savings of $600,000." 
Rounding up the top ten list is <a href="https://www.realestate.com.au/property-house-sa-strathalbyn-107599508" target="_blank">12-14 South Terrace, Strahalbyn</a>, also known as "The Gasworks". Louis Christopher said the large beauty has been on the market since the 13th of August 2011, and has since then dropped by $521,000. 
<img src="/images/2015/09/09/w800-h600-2010498085_1_pi_150904_065421.jpeg" alt="" width="635" height="476">
"The property consists of four residences, with a total of six bedrooms, six bathrooms and accommodation for up to three vehicles. The residences sit on approximately 1 acre of well-established gardens with an abundance of native plants and trees," he said.
"Each residence appears to take the form of a stone cottage, with kitchenettes, spa baths, and plenty of sitting and living space in each."
<a href="/images/2015/09/09/Screen%20Shot%202015-09-09%20at%209.57.44%20AM.png" target="_blank">Click to enlarge</a>
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Two new entrants on top ten most discounted list: SQM Research

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With a slight easing in Sydney, there are signs the average time on market for private treaty offerings is taking hold, according to the latest information from Australian Property Monitors.
Melbourne was the only market where there was a noticeable reduction in days on market.  
<a href="/images/2015/09/07/newapm.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2015/09/07/newapm.jpg" alt=""> 
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Signs of slowing market in APM days on market data excepting Melbourne

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A South Perth apartment has been listed for sale with $9 million hopes.
The <a href="https://www.realestateview.com.au/Real-Estate/1-95-south-perth-esplanade-south-perth/Property-Details-buy-residential-8110296" target="_blank">1/95 South Perth Esplanade</a> has been listed through Linda Sullivan at Space Real Estate ahead of its completion.
With 309 square metres under roof, the apartment has a 20 metre north orientation with views of the Swan River, Kings Park and the Perth city skyline. 
It comes with a rear private grassed garden area.
The development is designed and built by Giorgi Exclusive Homes - winner of the 2014 HIA Complex of the Year, winner of the 2014 HIA Apartment of the Year, and winner of the 2014 Australian Home of the Year.
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jonathanchancellor-7SQnKwU6yx

$9 million hopes for South Perth apartment

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GUEST OBSERVER
A good rule of thumb in debates on who bears the economic cost of a policy change is to look at the positions taken by vested interests in the matter. If anyone is going to know if they bear the cost, it is those who pay. In the case of infrastructure charges on new property developments, the vocal objections from the property industry are a sure sign that they bear the economic costs.
Infrastructure charges are levied by local governments on developers of new land estates, based on an increased load on essential infrastructure services the council is responsible for.
A research paper recently claimed that property developers could pass on these charges in the price of new homes with a mark-up of 400%. The paper also claimed that these charges had the same price effects on existing homes, meaning that new home buyers ultimately bear the cost of infrastructure charges, rather than developers.
But the logic of this should be challenged and is not borne out in the results of other rigorous academic studies of infrastructure charges, which have in fact found the opposite.
The idea that costs of developer charges can be passed on through new home prices sounds intuitive. But it is based on an incorrect notion that prices are determined by costs.
In fact, developers already charge the maximum the market will bear. To not do so would be the equivalent of selling your house for half the market price, just because it only cost you that amount 10 years ago when you bought it. You wouldn’t do it, and nor would a developer.
Using a statistical analysis of a simple regression of home prices with developer charges, along with many hedonic control variables - as this study has - will find a positive correlation simply because charges are set in proportion to housing size. But that isn’t a causal relationship.
As Ian Davidoff and former academic economist (now the ALP’s shadow assistant treasurer) Andrew Leigh succinctly describe in their study on how stamp duty affects the market:
"if one were to simply regress the sale price on the tax payable on that property, the coefficient would capture both the mechanical fact that the tax amount is a function of the price, as well as any behavioural impact of taxes on prices."
It’s true that observations of this mechanical relationship have been widely interpreted as a behavioural effect in the literature on developer charges. But the best analysis does not interpret such results in this way.
A better way to observe behavioural impacts is take advantage of natural experiments, such as when a developer charge is increased in one area but not in a comparable adjacent area, then look at any subsequent price changes compared to the “control group”.
These types of natural experiments can alternatively be attempted with statistical controls, and a recent paper does just that when looking at the house price effects from additional costs imposed to finance infrastructure.
They find that not only are proper statistical controls very difficult to implement, but that prices decrease per dollar of additional infrastructure charge by somewhere in the range of $0.33 to $2.09.
This range captures the standard view that costs cannot be passed on in prices, which in the case of developer charges means that the developer or previous landowner bears the full cost of the charge, and not the home buyer. Davidoff and Leigh’s controlled results support this view on the incidence of stamp duties in Australia.
These more properly controlled results are consistent with the political actions of the property industry who oppose developer charges because they bear the full cost.
Why is all this important? Vested interests benefit from any illusion of unsettled academic debate. In the case of developer charges the property lobby can maintain an intelligent-sounding “Goldilocks” view in public debates that goes something like this: “The research is not settled. But it is likely that we don’t pay the full charge, nor do we pass it on completely in home prices. The cost is probably shared between us and the homebuyer.”
They capitalise on this apparent uncertainty by claiming that their interests are aligned with the home-buying community; a seductive “Goldilocks” view that is hard for politicians to ignore.
Cameron Murray is an economist at The University of Queensland and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/cameron-murray-172480" target="_blank">here</a>.
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Property developers pay developer charges, that’s why they argue against them

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Two adjoining industrial properties located within the Australian Marine Complex (AMC) in Perth’s southern corridor are being offered for sale in a move tipped to generate strong buyer interest.
CBRE’s Geoff Fraser and Warick Irving have been appointed to sell the two prime industrial assets at <a href="https://www.commercialrealestate.com.au/property/2011721577/for-sale/wa/henderson/industrial-warehouse" target="_blank">32 and 36 Stuart Drive, Henderson</a>, via an offer to purchase campaign on behalf of KordaMentha Restructuring.
36 Stuart Drive comprises a large three frontage site of 14,460sqm with modern, well-designed improvements totalling nearly 7,600sqm.
The A-grade asset features a freestanding office/warehouse and workshop facilities, as well as 12 ten-tonne gantry cranes, six automated roller shutter doors, extensive hardstand areas and established landscaping.
Positioned in the heart of the AMC, the facility at 32 Stuart Drive features a two level office/workshop of approximately 1,346sqm comprising a five tonne gantry crane and front roller shutter door access.
CBRE’s director of industrial services, Geoff Fraser, said the offering represented an opportunity to gain a presence in the well-established and renowned AMC precinct south of Perth.
The AMC is a premier industrial estate located in Henderson on the shores of Jervoise Bay, only 23 kilometres south of the Perth CBD.
Both properties will be marketed for sale from Wednesday 19th August 2015 over a five week sales campaign.
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Perth investment opportunities - Stuart Drive‏

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GUEST OBSERVER
The members of the Greater Sydney Commission while ensuring representation of districts and the economy, environment and community must join together to drive Sydney’s evolution to an urban city. 
The announcement of the Greater Sydney Commission structure and role is a positive move towards a more holistic approach to planning Metropolitan Sydney. 
While Sydney’s six districts will be represented and specialist commissioners are proposed for the environment, the economy and the community the commission’s ultimate success will depend upon how these representatives work together to deliver outcomes.
The incorporation of the Sydney Joint Regional Planning Panels into the Commission Planning Panel will ensure a co-ordinated approach to decision making however the advice provided to this Planning Panel must not only come from Sydney’s 41 local councils. Strategic advice incorporating state and regional level objectives and priorities must inform and reinforce the decisions made by the Panel.
The ultimate success of the Greater Sydney Commission will depend on the people appointed to the Commissioner roles. The government must allocate appropriate salary levels to attract the best quality applicants to the important role of managing Sydney’s growth. 
The CEO and the Chair of the Greater Sydney Commission must be quality people who can take on strong advocacy roles to determine and communicate the trade-offs that Sydney’s growth will need to make in order to deliver strong economic growth, adequate housing supply and long term prosperity for the Sydney region.
The Urban Taskforce is keen to work with the Greater Sydney Commission in the development of the six Sydney district plans and in the identification and delivery of infrastructure. It is important that the Commission presents a realistic picture on how Sydney’s growth can be managed, which incorporates the trend towards apartment living in bustling urban precincts. To some extent the Commission’s task will be to lead Sydney’s evolution from a suburban city to an urban city.
Sydney’s future cannot become a political football so all political parties need to support the Greater Sydney Commission and particularly the legislation that will establish the organisation and its role.
Chris Johnson is chief executive officer of property development industry group Urban Taskforce and can be contacted <a href="https://www.urbantaskforce.com.au/index.php?option=com_content&amp;view=article&amp;id=97&amp;Itemid=126#.Vdaart55dFI" target="_blank">here</a>.
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