Just a few months after acquiring a prime Broadbeach site on the corner of First Avenue and Surf Parade, family-run developer <a href="https://www.apartments.com.au/developers/raptis">Raptis</a> has filed fresh plans for a new apartment development.

Raptis is seeking to deliver a <a href="https://www.apartments.com.au/new-apartments/17-19-first-avenue-broadbeach-qld-4217">29-storey tower with 73 apartments</a> on the 818 sqm site. It will be the developer's seventh project in the suburb, as they are approaching completion of The Sterling on George Avenue.

There will be a pool, barbecue and outdoor dining area, residents lounge and dining, sauna and steam room, gym, and a Yoga and Pilates studio.

<img alt="Raptis" data-entity-type="file" data-entity-uuid="b554da3f-7344-49aa-b1c9-44cf459af0d7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-05%20at%2010.41.45%E2%80%AFAM.png?VersionId=zzjWu1iO1wnuYv4EV4fyOyf5nSXjGYut" />

Raptis Joint Managing Director, Evan Raptis, says they remain&nbsp;committed to developing quality infill sites across the Gold Coast in the lead-up to the 2032 Brisbane Olympics.

"This project continues our long track record of delivery in Broadbeach, and we look forward to bringing another premium development to this thriving precinct."

The announcement follows strong delivery momentum for Raptis, with The Sterling Broadbeach nearing completion and construction well underway on the final stage of the Waterpoint community adjacent to Harbour Town. The developer's continued investment in the Gold Coast reflects confidence in the region's apartment market fundamentals, underpinned by sustained Southeast Queensland population growth.&nbsp;

The outlook for the region is further bolstered by infrastructure investment tied to the Brisbane 2032 Olympic Games, which is expected to drive continued economic and population growth across the SEQ corridor.&nbsp;

Subject to a favourable response from Gold Coast City Council, construction on the new First Avenue tower is targeted to commence before the end of 2026.&nbsp;

Read more:&nbsp;<a href="https://www.apartments.com.au/news/qld/it-s-all-in-the-family-four-decades-later-raptis-continues-to-shape-the-gold-coast-skyline">It’s all in the family: Four decades later, Raptis continues to shape the Gold Coast skyline</a>

Read more: <a href="https://www.apartments.com.au/news/qld/raptis-secures-prime-surf-parade-site-for-next-broadbeach-apartment-development">Raptis secures prime Surf Parade site for next Broadbeach apartment development</a> 
&nbsp;

Gold Coast developer brings seventh Broadbeach project to market, targeting construction commencement before year end

Joel Robinson

First look: Raptis lodges plans for new 29-storey Broadbeach tower 

Brisbane development veteran Kevin Seymour's Seymour Group is set to deepen its presence on one of Brisbane's most tightly held riverfront addresses, lodging revised plans for a luxury apartment development on Oxlade, just a few doors down from The Oxlade, which it completed in 2024.

The <a href="https://www.apartments.com.au/new-apartments/70-72-oxlade-drive-new-farm-qld-4005">new project at 70-72 Oxlade Drive</a>, directly north of The Oxlade, will have 27 apartments across a seven-storey building&nbsp;overlooking the Brisbane River and Merthyr Park. It's a revision from a 2021-approved design.

Designed by bureau^proberts, the project has evolved from the previously approved 26-apartment scheme, introducing an additional penthouse level while maintaining a low-density, boutique character. The development will comprise 26 three-bedroom apartments and a single four-bedroom penthouse, supported by two basement levels with 86 car spaces and 34 bicycle spaces.

The architectural response is centred around two distinct building forms separated by a landscaped open-air atrium.&nbsp;"This dual composition captures and embraces Brisbane’s subtropical environment whilst breaking down built form and scale," the submission to the Brisbane City Council noted.

<img alt="First look: Seymour Group returns to Oxlade Drive with revised riverfront apartment plans in New Farm" data-entity-type="file" data-entity-uuid="c12d84d0-bc11-4067-b46f-5bd2d786a34d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/new%20farm%20landscape.png?VersionId=YEPc2k5CAdh6aAPlu4uVpgZadh4MEfRd" />

A defining feature of the design is a deep landscaped void running through the centre of the building, creating what bureau^proberts describes as a "natural ravine" that enhances airflow, daylight penetration and resident amenity. The design report notes that the separation of the two building volumes is intended to maximise natural light, cross-ventilation and outlook while strengthening connections to the surrounding riverfront setting.

Curved balcony edges, integrated planting and extensive landscaping throughout the façade reinforce the subtropical design approach. The building's façade is softened by elevated gardens and planter beds, creating a green edge that complements the established landscape character of Oxlade Drive and neighbouring Merthyr Park.

New Farm has become one of Brisbane's most sought-after suburbs for developers delivering premium downsizer-focused apartments.

GRAYA has been particularly active in the precinct, completing both Chalk and York in recent years, while construction of Moray House, being delivered for Spyre, is now nearing completion. Architect-turned-developer Joe Adsett recently launched <a href="https://www.apartments.com.au/new-apartments/arcilla-new-farm-by-joe-adsett-28-maxwell-street-new-farm-qld-4005">Arcilla on Maxwell Street</a>, an exclusive collection of just nine apartments.

First look: Seymour Group returns to New Farm's Oxlade Drive with riverfront apartment plans

A new residential tower will be the first piece of a broader mixed-use precinct set to reshape a prominent Newcastle West site, with local developer <a href="https://www.apartments.com.au/developers/gwh">GWH</a> bringing its <a href="https://www.apartments.com.au/new-apartments/cambridge-quarter-newcastle-west-12-denison-street-newcastle-west-nsw-2302">Cambridge Quarter</a> vision to market.

The first release, Tempo, will introduce 87 apartments across a 24-storey tower, marking Stage 1 of the residential component of a larger urban regeneration project planned for the western end of Newcastle's city centre, encompassing the former Cambridge Hotel site.

Positioned on Denison Street, Tempo has been designed as the inaugural building within Cambridge Quarter, a precinct that will ultimately combine apartments, retail activation and revitalised public spaces including the revamping of the Cambridge Hotel.

[smartcode_project:default project_id=135876 project_image_fid=368853]

The tower will comprise a mix of one, two and three-bedroom apartments, including layouts with multipurpose rooms, catering to a broad cross-section of owner-occupiers. Apartment sizes range from around 60 sqm to 192 sqm, with a number of residences oriented to capture views across Newcastle Harbour, the city skyline and coastline.

GWH has emphasised liveability in the design, with open-plan layouts extending to generous balconies and terraces. Residents will have a choice of two interior palettes, while specifications include engineered stone benchtops, SMEG appliances, full-height bathroom tiling and secure building access. Premium upgrade packages will also be available.

Multiple rooftop resident retreats will provide communal outdoor space overlooking the harbour and city, offering an elevated amenity layer above the activity of the precinct below.

[smartcode_project:default project_id=135876 project_image_fid=368851]

The broader Cambridge Quarter vision extends beyond the residential tower itself. Ground-level retail activation and landscaped public areas are planned throughout the precinct, creating a walkable neighbourhood environment connected to the surrounding renewal of Newcastle West. The Cambridge Hotel is also earmarked for future redevelopment into a family-friendly hospitality venue integrated with the new precinct.

The project is strategically positioned within walking distance of Newcastle Interchange, providing access to light rail, regional rail services and direct connections to Sydney. Residents will also be close to Honeysuckle, Newcastle Harbour and the city's beaches and coastal walkways.

[smartcode_project:default project_id=135876 project_image_fid=368852]

For GWH, Cambridge Quarter represents one of its most significant Newcastle developments to date. The locally based developer, which has operated in the Hunter region since 1995, describes the project as a new chapter in the ongoing transformation of Newcastle West.

GWH Executive Director Jonathan Craig said the project had been shaped by a focus on creating lasting community connections.

"We take pride in creating places that last. Spaces where people feel connected, comfortable and a genuine sense of belonging," Craig said.

"Cambridge Quarter is something we are truly proud of, a place shaped by local knowledge, built with care and designed to be part of Newcastle's next chapter."

[smartcode_project_cta:default project_id=135876]

GWH unveils first release at landmark Cambridge Quarter precinct in Newcastle West

<a href="https://www.apartments.com.au/developers/ss-projects">S&amp;S Projects</a>,&nbsp;Rainbow Bay's busiest developer,&nbsp;has officially lodged plans for the largest development in its booming local portfolio, seeking approval for a further 88 apartments on Boundary Street.

The proposal&nbsp;at <a href="https://www.apartments.com.au/new-apartments/209-213-boundary-street-coolangatta-qld-4225">209–213 Boundary Street, Coolangatta</a>,&nbsp;marks the next chapter in the developer's transformation of the southern Gold Coast beachside precinct. It will be its fifth in the area, having already delivered Flow, Awaken and Esprit, while construction continues on the 38-apartment Radia. The new project would rise 57 metres above a consolidated 1,518 sqm site, on the same street as Radia and Esprit.

&nbsp;

Designed by <a href="https://www.apartments.com.au/architects/cottee-parker-architects">Cottee Parker</a>, the proposed development comprises 88 two and three-bedroom apartments across a contemporary podium-and-tower form that integrates extensive landscaping from street level through to the rooftop.

The tower would be delivered above a basement and multi-level podium accommodating resident and visitor parking, with the residential component commencing from level three. The design incorporates cascading planting throughout the façade, landscaped podium edges, and deep planting zones along the Boundary Street frontage.

<img alt="First look: S&amp;S Projects lodges plans for 88-apartment wellness tower at Coolangatta's Boundary Street" data-entity-type="file" data-entity-uuid="677e6615-b5c0-4b6c-b4f9-efb14fcde1a6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/ss%20da%20pers.png?VersionId=YOnPKQm7IFXv0M5H326djEpxk80500Hi" />

A key feature of the development is its expansive rooftop wellness and recreation precinct. Plans reveal a resort-style pool deck, gymnasium, sauna, steam room, hot and cold plunge pools, rooftop terraces, barbecue areas and landscaped relaxation spaces positioned to capture views across the southern Gold Coast coastline.

The rooftop wellness focus builds on the vision S&amp;S Projects first outlined when it acquired the site for $20.25 million last year.

"We are taking every advantage to create a truly unique rooftop wellness experience with a natural feel for residents, offering stone features throughout and an underlying theme that emulates a botanical garden," S&amp;S Projects founder and director Paul Gedoun said at the time.

The proposal seeks a 57-metre building height, representing a 50 per cent uplift on the site's mapped 38-metre height limit. Planning documents argue the additional height is consistent with recently approved and emerging towers in the immediate Boundary Street and Rainbow Bay precinct.

Urbis, acting as planning consultant, said the development would provide "88 dwellings, comprising a mix of two and three-bedroom apartments, contributing to housing choice and supply within an established medium to high-rise coastal urban neighbourhood."

The scheme has undergone extensive pre-lodgement consultation with the City of Gold Coast, with the design refined following feedback relating to architectural expression, landscaping, traffic access and podium treatment.

<img alt="S&amp;S" data-entity-type="file" data-entity-uuid="0a2d70fd-62ac-4b83-97c6-b798fc1243dd" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-05%20at%209.16.31%E2%80%AFAM.png?VersionId=yHmghUwKM3IVGpBktQU1mE.0Lpf3WimG" />

The architectural team is led by Brisbane-based Cottee Parker, one of Australia's most active residential design studios, with landscape architecture by Dunn + Moran. The consultant team also includes ADG Engineers, Windtech and Acoustic Works.

S&amp;S Projects has become one of the most influential private developers operating on the southern Gold Coast. Since entering Rainbow Bay in 2022, the company has assembled a portfolio exceeding $1 billion in end value, establishing itself as a key player in the area's evolution into a premium apartment destination. Pezet Matheson will again handle the sales for S&amp;S.

Coolangatta is entering another wave of apartment development, following the delivery of several prominent residential projects in recent years.

John Kearney's Immerse Projects will launch&nbsp;<a href="https://www.apartments.com.au/new-apartments/kaiya-kirra-beach-5-haig-street-coolangatta-qld-4225">Kaiya on Haig Street</a>&nbsp;soon, meanwhile, Palm Beach-based Sherpa Property Group is preparing to bring its debut Coolangatta development, <a href="https://www.apartments.com.au/new-apartments/flourish-viver-87-griffith-street-coolangatta-qld-4225">Flourish Viveré</a>, to market later this year, subject to approvals.

First look: S&S Projects proposes 88-apartment wellness tower at Coolangatta's Boundary Street

A landmark former orphanage site in Surrey Hills could be transformed into a new residential community under plans lodged by <a href="https://www.apartments.com.au/developers/antipodean-land-developments">Antipodean Land Developments</a> that would deliver 76 apartments and townhouses while restoring some of the suburb's most significant heritage buildings.

The burgeoninng Melbourne-based developer has submitted plans for the 9,158 sqm site at 1 Kent Road and 24 Durham Road, home to the former St Joseph's Home for Destitute Children, a historic institutional complex dating back to the late 19th century. The proposal seeks to adaptively reuse several heritage buildings while introducing two new four-storey residential buildings set within extensive landscaped grounds.

Designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a> and Kerstin Thompson Architects, the project has been conceived as a contemporary residential village embedded within a restored heritage precinct. The development team describes the design approach as "The Village in the Garden," with new buildings positioned among mature landscaping by OCULUS and significant heritage structures.

<img alt="First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills" data-entity-type="file" data-entity-uuid="44ec8c1b-c0b6-44ae-859e-5811b3e6a023" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Untitled%20design%20%281%29.png?VersionId=p.p1_KFh4iQoV4nisdnPfQBAsWNi7m79" />

The proposal would deliver 76 dwellings comprising a mix of apartments and duplex-style residences, significantly increasing housing supply on one of the largest privately held residential landholdings in Surrey Hills. The development includes 127 car spaces, 24 bicycle spaces and more than 1,000 sqm of communal amenity, with the existing chapel building earmarked for conversion into resident facilities.

According to the planning submission, the project centres on the restoration and adaptive reuse of the site's most significant heritage assets, including the original c.1889 St Joseph's building, the chapel designed by architect Augustus Andrew Fritsch, and the historic brick perimeter walls and entry gates. The proposal also incorporates the retention of other contributory buildings including the former infirmary and school building.

Tract Consultants, in the planning report accompanying the application, said the scheme had been shaped through extensive heritage analysis and design development.

"The shared vision for the Site by the project team has culminated in a scheme which successfully breathes life back into a historic site while delivering upon the objectives of Victoria's Housing Statement in a carefully curated and contextually responsive manner."

<img alt="First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills" data-entity-type="file" data-entity-uuid="7263b7d8-95ea-400f-9531-6ca7d22c3c33" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Untitled%20design%20%282%29.png?VersionId=4cR1tiWOsDpgxEOwZi5vVFcyvvOsYkIE" />

The proposal is being assessed under Victoria's Significant Residential Development with Affordable Housing pathway. As part of the application, three per cent of the project's residential development cost would be contributed to the Social Housing Growth Fund. The development would also provide a diverse mix of one, two and three-bedroom residences targeting a broader range of buyers than typically found in Surrey Hills' detached housing market.

Sustainability initiatives include an anticipated 66 per cent BESS score, natural cross-ventilation to 80 per cent of apartments, 28 per cent deep soil landscaping and a canopy cover outcome exceeding local planning requirements. The proposal also sets aside more than 1,083 sqm for communal indoor and outdoor resident amenity spaces.

<img alt="First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills" data-entity-type="file" data-entity-uuid="33fad46f-fe26-4d0a-acfd-6b776e1c6a3d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Untitled%20design.png?VersionId=D9F6WVSyYCtGvSUmith35LRp6R7PQkw_" />

Planning documents describe the property as one of the largest underutilised residential sites in Surrey Hills, arguing it presents a rare opportunity to introduce "missing middle" housing in an established inner-eastern suburb while preserving and revitalising a significant heritage precinct.

Antipodean Land Developments has built a reputation for design-focused residential projects across Melbourne, particularly in the medium-density sector. Previous developments include Neighbourhood in Brunswick East, delivered with Breathe Architecture, and Balfe Park Lane, designed by Kerstin Thompson Architects.

They've been very active in site acquisition as they build out their future development pipeline. They recently launched Thornubury House, 45 apartments above a mix of commercial, retail, and food and beverage tenancies, and have plans for a boutique project in Fitzroy and another <a href="https://www.apartments.com.au/news/vic/antipodean-plan-apartments-for-deepdenes-missing-middle-on-whitehorse-road">"missing middle" project</a> on Deepdene's Whitehorse Road.

First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills

<html><body>
Perth’s median house price grew by 18% over the three years to December 2014, underpinned by record net overseas and interstate migration inflows, according to QBE's latest housing report. But the good times aren't set to last, the report predicts. 
This resulted in tight vacancy rates and significant rental growth. Demand was driven by strong economic conditions brought on by booming mining investment and significantly improved affordability as interest rates were lowered.
But mining investment is now retreating rapidly and economic conditions have weakened considerably.
New engineering construction has tapered off as projects adding additional mining capacity are progressively completed.
Diminished employment opportunity has led to a substantial fall in net migration. In 2014/15, net overseas migration fell below 15,000 persons for the first time since 2004.
Interstate migration has also become a net outflow for the first time since 2003. State unemployment has increased above 6% in the first half of 2016; above the national level of 5.7%.
While mining output has increased, the production phase is less labour intensive than the investment phase. Western Australia’s unemployment rate is likely to continue to rise and remain elevated in the medium term, QBE predict. Net migration inflows are likely to remain soft for now.
After peaking in December 2014, Perth’s median house price fell by 2% in the six months to June 2015, and this has accelerated to a decline of 5.6% in 2015/16. The decline was greatest in the inner Perth suburbs (–7.2%) while both Middle and Outer ring suburbs fell 5.2% in 2015/16.
The higher priced inner suburbs are likely to be feeling the largest impact from the weakness in the higher income resource sector jobs.
<a href="/images/2016/10/14/Table%2010.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/14/Table%2010.jpg" alt="">
Weakening owner occupier demand has seen the number of loans to both first home buyers and upgraders/ downsizers decline by 15% and 10% respectively in 2015/16. The decline in investor demand has been more dramatic, with the value of loans to investors falling by 32% in 2015/16.
Rising new dwelling building approvals through the upturn in prices is being reflected in new dwelling completions continuing to rise in 2016.
This contrasts with a sharp decline in the rate of population growth and consequently underlying demand. The Western Australian market has moved into oversupply, which is reflected in vacancy rates of close to 5%; far above the balanced market rate of 3%, say QBE.
With underlying demand likely to continue to weaken, and further dwellings under construction working their way to completion, there is little to place upward pressure on rents and prices through to 2018/19.
Overall, the Perth market is expected to weaken across both house and unit markets. The impact of a rising stock surplus and a slowing state economy is forecast to result in a further decline in Perth’s median house price of 3% to June 2018.
Low interest rates should mitigate a deeper fall in the median house price, which is expected to stabilise in 2018/19, and potentially show a minimal rise, with mining investment bottoming out and interest rates forecast to be cut further in 2018. The forecast median house price of $540,000 at June 2019 is forecast to be 10% below its December 2014 peak.
However, Perth’s median house price in real terms is forecast to be 24% below its peak in March 2007 set during the first mining boom through the middle of the decade.
<img src="/images/2016/10/14/Chart%2028.jpg" alt="">
The unit market has seen rising completions across Perth over the last three years. However, units remain just a third of all new dwelling approvals; well below the other capitals of Sydney, Melbourne and Brisbane.
Much of the strong migration into Perth has been temporary in nature with the unit market consequently expected to see a greater fall in rents and higher vacancy rates. Temporary residents tend to favour the unit market over the house market given the short term nature of their stay.
Downward rent and price pressures are therefore forecast to be greater in the unit market than the house market. Median unit rents have weakened significantly and Perth’s median unit price has begun to decline, falling by 6.5% in the year to June 2016 to $403,100. Further declines totalling 6% are forecast in 2016/17 and 2017/18, before unit prices bottom out over 2018/19 to be $380,000 at June 2019.
Regional centres in Western Australia have borne the brunt of the impact of the downturn in resource sector investment.
These towns typically have a narrow industry profile and are susceptible to local economic events. Median house prices climbed rapidly through the early boom period as the influx of mining investment led to job creation, population growth and demand for housing.
As the mining investment wound down, median house prices fell sharply while unemployment rates grew rapidly and population left.
• Karratha LGA in the Pilbara region saw earlier price growth as a result of the mid 2000s boom in mining investment, with the median house price already elevated after the GFC in 2009. The median house prices grew 21% to peak at $850,000 from their 2009 level. Since the peak, the median house price has fallen 64% to $304,000 in June quarter 2016. The unemployment rate has risen from 1.8% to 2.3% over the three years to March 2016.
• Port Hedland LGA saw its median house prices rising by 127% between June 2007 and March 2013, reaching a peak of $1.1 million. However, the median house price has since collapsed by 72% to $305,000 at June 2016, while the unemployment rate has risen from 3.3% to 5.0% in the three years to March 2016. It is likely that the unemployment rate in these centres is relatively low as those that are not employed are likely to have left.
<a href="/images/2016/10/14/Table%2011.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/14/Table%2011.jpg" alt="">
Sales volumes in Port Hedland and Karratha in 2015/16 are also well down on previous levels. The lower sales volumes suggests that many owners are retaining their property rather than accepting a loss on sale.
Those that are sold are more likely to be forced sales, which would be helping to drive the median sale price down.
Movements in population and demand have had a big impact on prices in the smaller regional centres, in contrast with Perth, where the median house price has only declined by 4% from its peak.
Perth also experienced a more moderate cycle in prices in the most recent boom in mining investment, with the median house price rising by 32% between December 2008 and September 2014. The larger size of the residential market and more diversified economic base of Perth has helped to support prices.
</body></html>

j.ballantyne1990-6AQqhLzZaK

Perth house prices heading towards 24% decline from boomtime peak: QBE Housing Outlook

<html><body>
The median house price in Adelaide has shown steady growth since 2012/13 as lower interest rates and prices at a relatively low base resulted in a period of improved affordability, according to QBE's latest housing report.
Employment drivers at the time, in the form of public infrastructure projects, also spurred migration inflows propping up underlying demand. The median house prices at June 2016 was $461,000, up 3.2% on a year earlier.
Inner Adelaide median house prices have grown 26.7% on a year earlier. However, the inner region covers a small sample area and is a tightly held market with low transactional activity increasing volatility in the median price measurement. The Middle and Outer ring medians have shown much more moderate growth at 2.7% and 2.1% respectively.
<a href="/images/2016/10/14/Table%209.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/14/Table%209.jpg" alt="">
The South Australian economy is forecast to face some significant economic headwinds with the manufacturing sector suffering from the relatively high Australian dollar compared to lower cost competitors overseas. Several public engineering construction projects have also been completed such as the Noarlunga Line Electrification, the South Road Superway and the Southern Expressway Duplication.
With the completion of these projects, public investment will decline significantly with few projects to fill the void in employment growth. Additionally, the scheduled closure of the Holden manufacturing plant in Elizabeth in 2017 is expected to further drag on the economy.
Some job creation should come from increased ship and submarine building, but with few other large employment drivers, the state economy is expected to struggle for growth.
Dwelling construction activity has also peaked in 2015/16 as price growth and low borrowing costs has driven commencements. Underlying demand has not kept pace and an excess in dwellings is forecast to have emerged in Adelaide in 2015/16.
This surplus is expected to accelerate over the forecast period as underlying demand remains weak brought on by softening economic conditions. This is expected to put pressure on vacancy rates, already climbing above the balanced rate in June 2016 at 3.3%.
<a href="/images/2016/10/14/Chart%2026.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/14/Chart%2026.jpg" alt="">
As rental yields fall and competition increases for tenants, investor demand is expected to contract leading to limited house price growth.
The low interest rate environment with potential cuts over the next year, is expected to result in affordability improving. The ratio of mortgage repayments on a median priced house is forecast to be around 21%, which is the lower end of its range over the past 20 years.
This will prevent major falls in house prices and median house price growth of 0.9% is expected in 2017/18, before the rising surplus and slowing economic activity result in a 2.2% decline in prices in 2017/18.
A total decline of 1.3% is expected for median house prices over the forecast period, taking the median house price to $455,000 at June 2019.
Compared with the east coast capital cities, Adelaide does not experience the same level of new unit or apartment development activity and the unit market is consequently forecast to move in line with the forecast for house prices. However, much like the other state capitals, investor purchasers are more prevalent in the unit market.
Tighter restrictions on investor lending is seeing a decline in investor demand and as a result median unit prices are forecast to remain relatively flat over the three years to 2019, declining an aggregate 0.6% over this period to $340,000 at June 2019.
</body></html>

Adelaide economy to struggle but major house price falls will be prevented: QBE Housing Outlook

<html><body>
Darwin has the highest residential rental vacancy rates with Perth following closely behind, according to QBE’s latest housing report.
The vacancy rate is calculated as the number of unoccupied rental dwellings as a percentage of the total rental stock and is sourced from a survey of state Real Estate Institute members.
The vacancy rate in each city is a measure of the balance of rental demand and rental supply. A vacancy rate of 3% in a market is considered balanced, where rents on average will rise broadly in line with inflation.
• In Sydney, since 2006 there has been a considerable deficiency of residential dwelling stock after an extended period of low new dwelling construction. Given the extent of the dwelling shortage, vacancy rates have remained tight at 1.8% in June quarter 2016, and the return to a balanced rental vacancy rate is unlikely to occur until beyond 2018/19.
• In Melbourne, vacancy rates were below the balanced market level of 3% in 2013/14 and 2014/15. However, with record dwelling completions vacancy levels are now closer to balance at 2.7% in June quarter 2016. With dwelling completions on track to increase further in 2016/17, vacancy rates in Melbourne are expected to move above 3% over the year.
• Brisbane vacancy rates increased marginally to 2.8% at June 2016; still close to the balanced market rate. In Adelaide, vacancy rates have risen to 3.3% in the same period. Vacancy rates in both cities are anticipated to continue to trend upwards. In Brisbane, the forecast is due to upcoming dwelling completions outpacing demand, and in Adelaide the excess of dwelling stock may rise further due to weak population growth.
• Perth (6.0%) and Darwin (6.4%) recorded the highest vacancy rates among all capital cities at June 2016. Rising new dwelling completions, rapidly slowing net overseas migration inflows and falling interstate migration levels, as a result of the collapse in mining investment are causing an exit from rental properties. As a result, the pace of new rental tenants coming to the market is failing to keep up with the pace of new additions to the rental stock.
• In Hobart, vacancy rates remain at the upper end of the 2–3% band. Elevated dwelling completions relative to population growth are keeping the market around balance.
• In the Australian Capital Territory, declines in rents appear to be attracting new tenants with its vacancy rate falling to 2.5% in June 2016.
With both states estimated to experience a rising dwelling surplus, the downward trend in vacancy rates is not expected to continue.
Rental growth, as calculated from the rental component of the Consumer Price Index, was strong in the latter half of the 2000s after a period of underperformance in the first half of the decade. In recent years, rental growth has generally been moderate, despite vacancy rates remaining tight in all capital cities up to 2013. This suggests there may be some rental affordability constraints preventing stronger rises.
<a href="/images/2016/10/13/Chart%209.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/13/Chart%209.jpg" alt="">
• With a deficiency of dwellings in place and low vacancy rates, New South Wales had the highest level of rental growth of 2.2% in 2015/16. In Hobart, a lower vacancy rate of 2.8% assisted the second highest level of rental growth of 2% in 2015/16. Melbourne and Adelaide, with rental growth of 1.4% and 1% respectively, experienced minimal rental growth as their respective vacancy rates rose above the balanced market rate over the year.
• Brisbane and Canberra rents stayed fairly static in 2015/16, despite a low vacancy rate in Canberra. Canberra recorded a 0.5% decline in rents, which is an improvement on its 2.7% decline in 2014/15.
• In Darwin and Perth, rents declined by 6.4% and 5.2% respectively in 2015/16.This reflects the high level of vacancy rates in each capital city. In both states, while new dwelling supply continues to rise, falling resource investment spending is leading to significant reductions in migration and subsequent weaker tenant demand.
</body></html>

Darwin has the highest vacancy rates while NSW records highest rental growth: QBE Housing Outlook

<html><body>
Since bottoming out in 2011 and 2012 in all states, upgrader demand has strengthened over the last four years and continues to rise, according to QBE's latest housing report.
Upgraders and downsizers have historically represented the largest component of residential demand, being 43% of total residential lending activity in the past 15 years.
This represents two to three times the size of the first home buyer market.
In the year to June 2016, growth in the number of loans to upgraders was 7.1% nationally.
However, upgrader demand varies by state.
Victoria, New South Wales, South Australia, Australian Capital Territory, Queensland and Tasmania saw growth in loans to upgraders during 2015/16.
In contrast, in Western Australia and the Northern Territory the number of loans to upgraders declined in 2015/16, following on from declines in the previous year. Similarly, upgrader loans declined in Tasmania in 2015/16, although this was after growth in 2014/15.
In Western Australia, there was a less significant decline in loans in June quarter 2016, suggesting that the pace of decline is slowing and the market will soon bottom out, whereas in the Northern Territory the number of loans to upgraders experienced a greater annual decline in June quarter 2016.
<a href="/images/2016/10/13/Chart%206.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/13/Chart%206.jpg" alt="">
The ABS provides data on residential investment in terms of the value of total loans rather than the number of loans. As a result, changes in the value of loans over time reflect a change in values for property and purchaser volumes.
All states reported double digit decreases in lending for residential investment in 2015/16 after strong annual rises up to the peak in 2014/15. Year on year declines were still being recorded in June quarter 2016.
Investment lending in Victoria, Queensland, Western Australia and Tasmania recorded the smallest annual decline in investment loans in 2015/16.
The Northern Territory and South Australia recorded the highest decline in lending for residential investment during 2015/16.
<a href="/images/2016/10/13/Chart%207.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/13/Chart%207.jpg" alt="">
</body></html>

Upgraders dominating residential lending activity: QBE Housing Outlook

<html><body>
The expiry of Tasmania's first home buyer incentives for purchasers of established dwellings in 2014 saw first home buyer demand decline, according to QBE’s latest housing report.
First home buyer demand in the state has since bottomed out and is now in a recovery phase, the report said.
Loans to first home buyers increased by an annual 6% in 2015/16 and the rising trend has been accelerating, with loans to first home buyers in June quarter 2016 being 24% higher than the same period a year earlier.
It is likely that some of this demand stems from increased interstate migration. In contrast, purchase activity by upgraders and downsizers has been easing, with loans to non–first home buyers having fallen by 4% in 2015/16.
Demand from investors has also been decreasing, with the total value of loans to investors having fallen by an annual 13% in 2015/16. As with the other states, tightened lending policy by the banks is containing investor demand, although the decline in 2015/16 has been lower than the national decline.
Rental growth has been largely flat and vacancy rates are close to balance at just under 3% through 2015/16.
House prices in Hobart were flat in 2014/15, but picked up in 2015/16, with the median house price increasing by 5.2%. Tasmania’s net interstate migration outflow has been steadily declining since peaking in 2011/12, and interstate migration is on track to record a net inflow in 2015/16.
Part of the driver of this recovery is likely to be increased “tree changers” downsizing from the more expensive mainland capitals, while there are also likely to be many returnees from the mining states who contributed to the higher net interstate migration outflows of recent years.
House price growth has been unevenly spread across the Local Government Areas of Hobart. Median house price growth has been particularly strong in Hobart (10.1%), Clarence (8.4%) and Kingborough (6.9%). Glenorchy (1.1%) and Brighton (2.8%) saw more moderate house price growth while Sorell (–3.3%) experienced a decline in its median house price. The overall Greater Hobart median grew 5.2% over 2015/16.
<a href="/images/2016/10/14/Table%2012.jpg" target="_blank">Click to enlarge</a>
<a href="/images/2016/10/14/Table%2012.jpg" target="_blank"><img src="/images/2016/10/14/Table%2012.jpg" alt=""></a>
The Tasmanian economy has been weak in recent years. A high Australian dollar and slow population growth have added to general economic weakness. However, improved household spending, non–residential building activity and improving exports suggest a stronger economic recovery.
The weakening Australian dollar should support growth in tourism while the agricultural and mining industries should also benefit. The state unemployment rate fell from 7.8% at March 2014 to 6.6% at March 2016. Greater Hobart has a lower unemployment rate than the rest of the state, having fallen from 6.7% to 6.1% over the same period.
Greater Hobart has also been the main destination for migrants from overseas, interstate and the rest of Tasmania, with its population rising by 0.8% in 2014/15 while the population of the rest of Tasmania was flat.
On the supply side, completions at the state level have continued to rise while underlying demand has been slow. This has seen Tasmania’s dwelling surplus climb from 4,800 dwellings to an estimated 5,300 dwellings at June 2016. Given the disparity between population growth, it is likely that the oversupply is greater in regional Tasmania.
Reflecting lower income levels and fewer drivers of employment, Hobart has the lowest median house price compared to the other state capitals. Its relative affordability compared to other capital cities is a significant driver of demand as interstate migrants seek a more affordable market.
The current low interest rate environment is expected to improve affordability and spur purchaser demand, the QBE report said. Poor affordability in Melbourne and Sydney is expected to fuel further migration to Tasmanian cities, a trend already evident with the net interstate inflow forecast to increase further to 1,000 persons in 2016/17 and 2017/18.
Click to open chart in new window
<img src="/images/2016/10/14/Chart%2030.jpg" alt="">
Overall, the gradual recovery in the local economy and interstate migration is expected to underpin price growth, while the presence of an excess dwelling stock at the state level will likely limit price growth to more moderate levels. Hobart’s median house price is forecast to rise from $377,900 at June 2016 to $425,000 by June 2019, reflecting growth of around 4% per annum or a cumulative 12.5%.
With a significantly smaller unit market, and thus a smaller sample of sales volumes to measure the median, movement in the median unit price in Hobart can be much more volatile from quarter to quarter. Overall, however, median unit prices have been in a gradual decline since its peak median price of $420,000 in June 2011.
With falling investor demand, the unit market could experience the greatest impact as investor purchasers have traditionally been more prevalent buying units.
This softness is expected to continue to dampen demand, limiting median unit price growth to a forecast 1%–2% per annum through to 2018/19. This is forecast by QBE to push the median unit price to $315,000 at June 2019; a cumulative growth of 4.5% over the forecast period.
</body></html>

Hobart first home buyers in recovery stage: QBE Housing Outlook

<html><body>
First home buyer demands have remain unchanged compared to two years ago while investor demands have declined by 20 percent, according to QBE's latest housing outlook report.
This is illustrated in the change in moving annual turnover of residential loans to first home buyers, non–first home buyers (i.e. upgraders and downsizers, as illustrated in chart 4 which include all purchases made for owner occupation and where the buyer has previously owned another dwelling) and investors.
The chart represents trends for Australia, which masks some differences across the states, as outlined later in this report.
<a href="/images/2016/10/13/Chart%204.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/13/Chart%204.jpg" alt="">
First home buyer demand has been declining since the end of calendar 2014. In 2015/16 the number of first home buyer loans was 1.8% below the year prior. Loans to non–first home buyers rose by 7.1% in 2015/16, after recording an annual 0.9% rise in 2014/15.
Growth in loans to investors peaked in 2014 and has steadily slowed before recording a decline in 2015/16. Monthly loans to investors have been below the same month a year earlier since August 2015, which has corresponded with the timing of tightening bank lending policy toward investors. The total annual decline in the value of loans to investors in 2015/16 was 16.8%.
First home buyer demand is important because it creates demand for entry–level properties, facilitating broader demand by encouraging current occupiers to upgrade through the value chain. As a result, incentives have often been put in place to promote first home buyer demand during times of market weakness.
Table 3 shows existing state and federal government incentives offered to first home buyers. It refers to grants available specifically to first home buyers and not broader grants and incentives first home buyers can also access. Where stamp duty concessions are offered, the maximum concession is indicated. It should be noted there are some purchase price limits for grant eligibility which vary by state.
Over the past five years there have been progressive changes in first home buyer incentives across all states to favour purchasers of new homes over existing homes. The long–term impact will be a shift of first home buyer demand that would have otherwise been for established homes into the new home market, thereby adding to supply.
<a href="/images/2016/10/13/Table%203.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/13/Table%203.jpg" alt="">
The short–term impacts on the market as a result of the progressive removal of incentives for the purchase of established dwellings are:
• Future first home buyer demand was brought forward to take advantage of the grants before they expire, leaving a vacuum of first home buyers in the established market immediately afterwards.
• A delay in the next round of first home buyers who then have to accumulate a larger deposit to compensate for the lack of financial assistance. In periods where prices are rising, this delay could take longer as the deposit hurdle progressively increases.
With first home owner demand being fixed (i.e. households are first home buyers only once), incentives do not create or diminish demand but rather serve to shift existing demand through time. Once the impacts of the changes to incentives are worked through, first home buyer demand should return to long–term averages.
This is likely to be the case in the coming years with first home buyer incentives now being relatively stable.
Tasmania and South Australia removed the first home buyer incentives for existing dwellings in July 2014 and have accordingly shown higher first home buyer activity in 2015/16 as they progressively recover to long–term levels.
Victoria experienced 5.6% growth in first home buyer loans in 2015/16, with the 9.3% year–on–year growth in June quarter 2016 suggesting that first home buyer activity is strengthening.
In Queensland first home buyer loans have been stable in recent years with little to no change in the number of loans over 2014/15 and 2015/16.
New South Wales has been similarly flat, recording recent marginal declines in loans, but the average annual number of loans in New South Wales in the five years to 2015/16 is down 32% on the average over the six years to 2010/11.
Western Australia experienced a decline in first home buyer loans in 2015/16, caused by a deteriorating economy, and the fact that first home buyer demand had held up strongly between 2011/12 and 2014/15.
The Northern Territory removed the incentives for existing dwellings in January 2015 and accordingly first home buyer activity was significantly lower in 2015/16, although the pace of decline was beginning to slow by June quarter 2016.
The Australian Capital Territory has also shown declining numbers of loans to first home buyers after a peak in activity in 2014/15.
Australian Bureau of Statistics (ABS) data on loans to first home buyers are derived from returns submitted by financial institutions to APRA at the time of the loan approval.
A first home buyer is defined as “a borrower entering the home ownership market for the first time”. The definition includes all first home buyers obtaining a loan (and not just those eligible for grants) but excludes first home buyers who are investors as the data relates to loans for owner occupied properties.
There is some evidence to suggest that an increasing percentage of first home buyers, particularly in the higher priced cities of Sydney and Melbourne, are purchasing an investment property as their first home as a stepping stone into the market.
<a href="/images/2016/10/13/Chart%205.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/13/Chart%205.jpg" alt="">
</body></html>

Qbe

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

Qbe