Adding to Chatswood’s growing skyline, <a href="https://www.apartments.com.au/new-apartments/the-anderson-chatswood-54-56-anderson-street-chatswood-nsw-2067">The Anderson</a> is grounded in a simple principle: apartment living in a major centre does not have to come at the expense of space and outlook.

Set on Anderson Street in the heart of <a href="https://www.apartments.com.au/developments/chatswood-nsw-2067">Chatswood</a>, the new residential tower, a collaboration between developers <a href="https://www.apartments.com.au/developers/changfa-group">Changfa Group</a> and <a href="https://www.apartments.com.au/developers/huirong-group">Huirong Group</a> with architecture and interiors by <a href="https://www.apartments.com.au/architects/ajc-architects">AJC Architects</a>, will introduce 122 apartments that prioritise generous proportions, considered orientation, and a strong connection to the surrounding heritage precinct.

The design originated from a Design Excellence Competition, where AJC proposed a building that combines suburban-style apartment scale with the density expected in a transport-rich centre. The development will include more than 1,800 square metres of retail and commercial space at street level, landscaped communal roof terraces, and a ground-floor pocket park framed by canopy trees. Together these elements aim to create a building that integrates with Chatswood’s evolving streetscape while maintaining a strong residential focus.

[smartcode_project:default project_id=151353 project_image_fid=353250]

A key driver behind the architecture was the desire to deliver family-sized apartments rarely seen in the Chatswood market. The Anderson includes a mix of one to four-bedroom apartments, with around 35 per cent of the residences configured as three or four-bedroom homes. At the top of the building, two double-storey penthouses span approximately 200 square metres each, reinforcing the project’s emphasis on scale and long-term liveability for both downsizers and intergenerational households.

Orientation and outlook were central to the planning of the building. The apartments are positioned to maximise views to the north and east across Chatswood’s heritage precinct, with upper levels capturing glimpses of the Pacific Ocean. South-facing apartments gain distant views toward the Sydney CBD and Harbour Bridge, while the building’s configuration intentionally reduces western exposure at lower levels to minimise overlooking toward the nearby railway corridor.

The external design references the character of the surrounding conservation area without replicating it directly. A brick podium anchors the building to the street and introduces a series of architectural portals that draw inspiration from the nearby Chatswood Presbyterian Church. Above this base, the tower shifts to a lighter, more open expression defined by horizontal lines and carefully detailed balconies that balance privacy with outward views.

[smartcode_project:default project_id=151353 project_image_fid=353254]

Toward the top of the tower, AJC introduces a distinctive lantern-like element formed by sliding screens. These screens provide both solar shading and privacy while also creating a visual marker for the building within the Chatswood skyline. The feature reinforces the architectural intent of the project, a structure that is visually refined while still responding to the practical requirements of apartment living.

Inside the residences, interior architecture by Hayball focuses on clear spatial flow and practical everyday use. Open-plan living areas connect directly to large balconies, extending the internal living spaces outward and allowing natural light to move deeper into the apartments. Kitchens are designed as central working spaces with premium appliances and carefully selected materials, positioned to serve both daily living and entertaining.

[smartcode_project:default project_id=151353 project_image_fid=353256]

Bathrooms follow a similarly restrained design language, using refined fixtures and materials to create calm, functional spaces, while wardrobe areas adopt a gallery-style layout with integrated lighting and generous storage. These elements reflect a broader design approach that prioritises clarity, functionality, and durability over decorative gestures.

Positioned just a short walk from Chatswood Interchange, residents will have direct access to rail, metro, retail, and dining. The Metro extension allows travel from Chatswood to Martin Place in approximately 11 minutes, placing the CBD within easy reach for residents while maintaining the convenience of a walkable North Shore neighbourhood.

One-bedroom apartments at The Anderson start from $1,022,000.

[smartcode_project_cta:default project_id=151353]

Joel Robinson

How AJC designed The Anderson to bring oversized apartment living to Chatswood

<a href="https://www.apartments.com.au/developers/bridgewell-development">Bridgewell Capital</a> has lodged plans for a major mixed-use apartment development in the heart of Maroubra, seeking a significant uplift in height and density controls to deliver 120 apartments and a 120-place childcare centre near Maroubra Junction.

The State Significant Development application, filed through the NSW Government’s Housing Delivery Authority pathway, covers a 3,270 sqm amalgamated site at 251-257 Maroubra Road and 133-135 Garden Street. The proposal includes a concurrent rezoning that would increase the maximum building height from 12 metres to 35.6 metres and lift the floor space ratio to 4.02:1.

Designed by <a href="https://www.apartments.com.au/architects/bka-architecture">BKA Architecture</a>, the project would replace a mechanic’s workshop and several detached homes with a 10-storey residential building above four basement levels.

The scheme comprises 120 apartments, including 27 affordable housing units to be managed by a community housing provider for 15 years, alongside 203 basement car spaces and 92 bicycle spaces. A childcare centre occupying nearly 900 sqm of floor area would sit at ground level and be capable of accommodating 120 children and 22 staff.

<img alt="First look: Bridgewell plots 120 apartments and childcare centre in Maroubra town centre" data-entity-type="file" data-entity-uuid="038a0639-f9e4-4303-8fcc-d43e73fa480f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bridgewell%20pers.png?VersionId=eGBElxmNqJW.YF3JFYgHTnPgAstdyXR3" />

According to the Design Report, the project has been conceived as a “gateway proposal” that responds to Maroubra’s evolving urban character and its proximity to the town centre.

“Designed to complement the character of Maroubra’s town centre, this gateway proposal features a building scale that matches its surroundings,” the report stated.

“It integrates residential units above a ground-level childcare centre, fulfilling the strategic objectives of the Randwick City Council Masterplan.”

The apartment mix is weighted toward larger residences aimed at families and downsizers, reflecting changing demographics in the Randwick LGA and increasing demand for medium-density housing close to transport and amenity.

BKA Architecture said the proposal seeks to reinforce Maroubra Road as a civic spine while improving the pedestrian experience around the site through landscaping and upgraded public interfaces.

“The design capitalises on the following site opportunities: reinforcement of Maroubra Road as a civic spine, enhancement of pedestrian pathways and the public interface via new landscaping, and strong market demand for two and three-bedroom apartments to support families and down-sizers,” the Design Report noted.

<img alt="First look: Bridgewell plots 120 apartments and childcare centre in Maroubra town centre" data-entity-type="file" data-entity-uuid="ee509779-3c7e-4918-b03d-761c785459d0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bridgewell%20site.png?VersionId=eZC4Ruyn.C7O.Qwfr1SVeP5.ds1c5.66" />

The building has been designed with setbacks and articulation intended to transition between the commercial intensity of Maroubra Junction and the surrounding lower-scale residential neighbourhoods. Communal open space is proposed on level one, while upper-level apartments would secure views towards Port Botany, Maroubra Beach and Sydney’s eastern suburbs.

The development sits around 200 metres east of the Maroubra Junction intersection of Anzac Parade and Maroubra Road, within one of Randwick’s identified strategic centres. The site is close to Pacific Square Shopping Centre, major bus routes, schools, parks and future cycling infrastructure proposed under the Maroubra Junction Masterplan.

The Maroubra proposal aligns with broader NSW Government initiatives encouraging higher-density housing near established centres and transport corridors, particularly where affordable housing is incorporated.

Bridgewell is also working on a <a href="https://www.apartments.com.au/news/qld/goldfields-sets-the-stage-as-quartet-milton-launches">new 55-unit project in Killara</a>.

First look: Bridgewell plots 120 apartments and childcare centre in Maroubra town centre

National diversified developer <a href="https://www.apartments.com.au/developers/goldfields-group">Goldfields</a> has launched its latest Brisbane apartment project, <a href="https://www.apartments.com.au/new-apartments/quartet-milton-33-manning-street-milton-qld-4064">Quartet Milton</a>, marking its entry into the sought-after inner-city suburb just two kilometres from the CBD.

The circa $100 million development will rise 18 storeys and deliver 131 apartments, offering a mix of one, two-, and three-bedroom residences.

Ideally located on Manning Street, Quartet residents will be within 300 metres of Milton Station, 500 metres from the Milton Ferry Wharf, and a short walk to Milton Markets, the iconic Park Road, as well as a range of breweries and cafés.

[smartcode_project:default project_id=108736 project_image_fid=367993]

Designed by architecture firm <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> and brought to life by <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a>, the building features a simple, gridded façade paired with generous glazing to enhance views, maximise aspect, and capture both sunrises and sunsets from within the apartments and their generously sized balconies.

Residents will have access to a 1,000 sqm rooftop, curated to balance wellness and entertaining, in response to increasing demand for wellness-focused shared spaces.

"We've approached Quartet Milton as a complete lifestyle offering, not just apartments, but a place where the design, amenities, and location all work together in a meaningful way," says Goldfields Managing Director Lachlan Thompson.

"Buyers are looking for that sense of confidence, knowing the vision has been carefully thought through not just by us as developers, but by all our consultants appointed to bring this together, and that it will be delivered to the standard they expect."

[smartcode_project:default project_id=108736 project_image_fid=368000]

Cera Stribley Co-Founder and Managing Principal Domenic Cerantonio said the rooftop is designed to feel like a place "you'd genuinely use every day."

"A 25-metre pool framed by city and mountain views, wellness areas, and private dining spaces for evenings with friends create a setting designed for year-round comfort and effortless Brisbane living."

[smartcode_project:default project_id=108736 project_image_fid=367999]

In addition to the 25-metre pool, the rooftop will include a sauna, cold plunge, fully equipped gym, and zen gardens, all complemented by panoramic views of the city and river.

While the building is expected to appeal predominantly to owner-occupiers, Goldfields anticipates interest from investors seeking strong rental returns, driven by the project's design, location, and the city's projected capital growth in the lead-up to the 2032 Brisbane Olympics.

[smartcode_project:default project_id=108736 project_image_fid=367991]

<a href="https://www.apartments.com.au/developments/milton-qld-4064">Milton</a>, widely regarded as one of Brisbane's most desirable inner-ring suburbs due to its lifestyle offering and proximity to the CBD, has experienced a shortage of new apartment supply in recent years.

Goldfields is already active in the Brisbane residential market through its Ripley Valley masterplanned community, Hayfield. The 109-hectare neighbourhood is already home to more than 300 families and features a large community park.

Plans for the precinct include a 4 km running track, future schools, and retail and commercial amenities, all within a 35-minute drive of the Brisbane CBD.

Goldfields also plans to deliver a new mixed-use tower at 88 Robertson Street in Fortitude Valley, within the James Street precinct. The project will include 16,000 sqm of boutique commercial space, a level of wellness facilities, and a rooftop restaurant and event space, akin to Goldfields House in South Yarra, its flagship mixed-use development on Chapel Street, which is crowned by the Beverly Rooftop bar, one of Melbourne’s best-known venues.

[smartcode_project_cta:default project_id=108736]

Goldfields sets the stage as Quartet Milton launches

<a href="https://www.apartments.com.au/developers/stockland">Stockland</a> and Homes NSW have taken the next major step in the transformation of Waterloo Estate, lodging a Concept State Significant Development Application and concurrent rezoning proposal for the renewal of Waterloo South.

The proposal, now on public exhibition, outlines plans for around 3,300 new homes across the 12.3-hectare precinct. A minimum 30 per cent of residential gross floor area will be delivered as social housing, approximately 20 per cent as affordable housing, and a maximum 50 per cent as market housing. The redevelopment would more than quadruple the number of homes currently on the site and more than double the existing supply of social and affordable housing.

The renewal of Waterloo South forms the first stage of the broader Waterloo Estate transformation and is set to unfold over the next 10 to 15 years. The estate currently contains 750 social housing dwellings and 120 private homes.

<img alt="First look: Stockland and Homes NSW unveil plans for 3,300-home Waterloo South renewal" data-entity-type="file" data-entity-uuid="ba2da34b-171b-4ff1-b0c7-4baf0bce97f2" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Waterloo%20public.png?VersionId=S5apPKOqjPHJhk_SzCvdVPxsEBYs300o" />

The proposal, prepared by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a> and Beam Planning, spans 10 street blocks bounded by Cope, Raglan, George, Wellington, Gibson, Kellick, Pitt and McEvoy Streets, directly adjoining the Waterloo Metro Station precinct and within walking distance of Redfern and Green Square stations.

Under the masterplan, building heights would range from two to 33 storeys, delivering approximately 282,485 sqm of residential floor space alongside at least 10,000 sqm of non-residential uses and a minimum 5,000 sqm of community space. The planning framework has been specifically structured to support the mixed-tenure outcome, with the residential gross floor area capped at a maximum 50 per cent market housing allocation.&nbsp;

The Urban Design Report describes the vision as creating “a unique and vibrant mixed-tenure housing precinct that supports the needs of the community and delivers much needed housing in response to National and State Government priorities.”&nbsp;

<img alt="First look: Stockland and Homes NSW unveil plans for 3,300-home Waterloo South renewal" data-entity-type="file" data-entity-uuid="6e1a6d8b-0626-4fa7-94fc-aa91c0af86dc" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/waterloo%20per.png?VersionId=duyiJTFOeezTNdM22leI3SoHuqnW6ZaY" />

A major focus of the revised proposal has been increasing the social and affordable housing component. The Minns Government increased the affordable and public housing allocation from 35 per cent to 50 per cent after coming to office in 2023.

Minister for Housing and Homelessness Rose Jackson said the changes were critical to maintaining Waterloo’s social diversity.

“When we came to government, we immediately reviewed the plans for the Waterloo renewal and boosted the number of public and affordable homes from 35 to 50 per cent,” Jackson said.

“This was a crucial step to ensure Waterloo remains a welcoming place for people from all walks of life to call home now and into the future.”&nbsp;

Minister for Planning and Public Spaces Paul Scully said the project would reshape the precinct for generations.

“This concept DA brings thousands of new public, affordable and market homes on the doorstep of the Waterloo Metro station another step closer to reality,” Scully said.

“Importantly, alongside the new homes the plan also proposes new open space where residents and the broader community can gather, relax and play.”&nbsp;

<img alt="First look: Stockland and Homes NSW unveil plans for 3,300-home Waterloo South renewal" data-entity-type="file" data-entity-uuid="867520cb-6e07-4204-885e-53793ac88066" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Waterloo%20public%20a.png?VersionId=lgSI85Q23xBLYLC9NcWKuWZY2HfP4zQ3" />

Stockland Managing Director and CEO Tarun Gupta said the project had been shaped around long-term liveability and community infrastructure.

“As delivery partner, Stockland is proud to be working with the NSW Government on the renewal of Waterloo South – a significant project with community at its heart,” Gupta said.&nbsp;

The planning documents place strong emphasis on “Designing with Country,” recognising the site’s location on Gadigal land. The masterplan incorporates new east-west pedestrian links, activated streetscapes, rooftop communal spaces, retail frontages, and landscaped public areas intended to improve permeability and community connection throughout the estate.&nbsp;

The proposal also seeks to establish a more flexible planning framework for future detailed SSDAs, including updated provisions for educational uses, creative industries, rooftop communal areas, and active frontages. A minimum seven per cent of residential floor space will be delivered as affordable housing managed in perpetuity by community housing provider City West Housing.&nbsp;

The Social Impact Assessment prepared by Urbis describes the renewal as one of Australia’s most significant public housing transformations, identifying substantial long-term positive impacts associated with housing supply, accessibility, public domain improvements, and community infrastructure.&nbsp;

Stockland and Homes NSW have already commenced the first stage of resident relocations, with some tenants moved into newly completed homes at Waterloo Metro Quarter and the Boronia development nearby.

First look: Stockland, NSW Gov, unveils plans for 3,300-home Waterloo South renewal

<a href="https://www.apartments.com.au/new-apartments/smith-by-valli-collingwood-224-228-smith-street-collingwood-vic-3066">Smith Collingwood</a> is a new boutique apartment development bringing a refined, design-led approach to one of Melbourne’s most established inner-city neighbourhoods.

Designed by <a href="https://www.apartments.com.au/architects/pandolfini-architects">Pandolfini Architects</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/lisa-buxton-interiors">Lisa Buxton</a>, Smith by Valli sits on iconic Smith Street and comprises just 22 residences tailored toward owner-occupiers seeking a more considered style of apartment living.

[smartcode_project:default project_id=140747 project_image_fid=367540]

The design of Smith focuses on a north-facing orientation across all residences, a relatively uncommon feature in dense inner-Melbourne settings. Each apartment has been planned to maximise natural light and outlook, alongside a material palette defined by warm tones, custom joinery, and a full suite of Gaggenau appliances.

The development comprises a mix of one, two, and three-bedroom apartments, with pricing currently ranging from just under $1 million to around $4.85 million for the premium penthouse-level residences, reflecting growing demand for luxury owner-occupier product in Melbourne’s inner urban market.

Residents will also have access to a private rooftop garden designed as an elevated retreat above the city, &nbsp;featuring curated landscaping, veggie boxes, intimate seating areas and spaces for relaxed gatherings. Sustainability has also been integrated into the project through a 7-star energy rating and two secure bicycle facilities for every residence.

[smartcode_project:default project_id=140747 project_image_fid=367529]

Smith by Valli sits in the heart of one of Melbourne’s most established retail and hospitality strips, within walking distance of venues such as Falco Bakery, Carnation Canteen and Alimentari, alongside parks and everyday services. With a Walk Score of 99, the location reinforces the project’s positioning toward buyers prioritising walkability and access over car dependency.

With only a limited number of residences, Smith reflects growing demand for smaller, highly curated apartment developments that prioritise design quality, liveability, and connection to neighbourhood character.

[smartcode_project_cta:default project_id=140747]

Smith by Valli delivers design-led apartments to Melbourne’s inner north

<html><body>REA Group has announced its proposal to acquire the Mortgage Choice business.

REA announced a scheme implementation agreement to buy the ASX-listed Mortgage Choice for $244 million, or $1.95 a share, representing a 66 per cent premium to Mortgage Choice’s last close.

Their acquisition will accelerate REA’s financial services strategy to create a leading mortgage broking business in addition to its real estate listings website.

“The proposed acquisition of Mortgage Choice is an exciting development that will bring together our well established Smartline business and franchisee network with the complementary Mortgage Choice organisation and its significant broker footprint," REA Group CEO, Owen Wilson said.

The transaction is still subject to conditions being met, including Mortgage Choice shareholder and regulatory approvals.

It is expected to take approximately three months to complete.

Mortgage Choice has a $54 billion loanbook.

The network has more than 500 brokers across 380 franchises.

Its biggest shareholder is the Commonwealth Bank of Australia with an 18.5% stake.

Domain has its Loan Finder, a joint venture between Domain Holdings Australia Limited and Auscred Limited, the parent entity of mortgage platform Lendi.</body></html>

REA Group has announced its proposal to acquire the Mortgage Choice business

jchancellor

REA Group seeks to acquire the Mortgage Choice business

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REA Group chief economist Nerida Conisbee looks at what we should expect from Australia’s commercial property market in 2017.
1. Sydney to remain the top performer for both capital and rental returns
Sydney now has the lowest vacancy rate in Australia for office and industrial property.
With economic growth continuing in NSW, a slow development pipeline and more stock being taken out of the market, there are no signs of this changing in 2017.
Sydney’s CBD office market will be the strongest commercial market nationally, with vacancy continuing to decline, partly because of a growth in white collar employment but also because of the construction of Sydney Metro taking out large chunks of secondary space.
While this is great for landlords, it will be challenging for tenants as rents rise and available options reduce.
While there is some new development taking place, there is unlikely to be enough completed in 2017 to satisfy demand and this will be a drag on economic growth for NSW.
2. Flow of Chinese money to continue
Chinese buyers purchased US$3.7 billion of Australian commercial property in 2016, according to Real Capital Analytics, down from US$4.3 billion in 2015.
This decline is likely to be due to lack of buying opportunities, as opposed to a lack of funds, as buyer interest appears to continue to grow unabated.
Changes will continue to occur to the types of Chinese buyers targeting Australia, as well as what they choose to purchase.
The first wave of Chinese buyers were developers and these groups are now firmly entrenched in the Australian market.
Sovereign wealth funds have also become well established.
The next wave is likely to be large Chinese conglomerates, looking to diversify their risk and tap into the significant opportunities in Australian property.
These changes to buyers mean that the types of property is also changing.
While development sites and office buildings still dominate, growing interest from Chinese buyers in Australian hotels, agriculture and retail will be a key theme in 2017.
3. Australia’s safe haven status confirmed
As concerns about Brexit rock London – historically one of the safest markets in the world for commercial property – and uncertainty as to the impact of a Trump presidency on US property raises concerns in that market, Australia is looking even more attractive.
A quarter of a century of positive economic growth, low sovereign risk and a strong-performing property sector are all characteristics of a desirable investment destination.
Will this change to the global political landscape redefine the markets that are considered safe? With the exception of Singapore, most of Asia has been seen as too politically risky for most large scale investors. This may begin to change in 2017.
4. Amazon to finally crack online shopping in Australia
Online shopping is not big in Australia. We like it well enough but certainly not as much as the rest of the world.
Largely this is due to the fact that the proportion of spending we do online for grocery shopping remains low.
Amazon announced they will enter the Australian market in 2017.
While it is uncertain exactly how aggressive they will be, if they replicate the success they have had elsewhere it will have an enormous impact on shopping behaviour.
This will be a challenge for our supermarket chains, as well as the shopping centres that contain them.
5. Shopping centres continue to adjust to a changing landscape
Shopping centres are resilient and have been remarkable in their ability to adjust to changing consumer preferences.
Now much more than simply a place to shop, they offer entertainment, social interaction and places to eat.
Good shopping centres drive residential prices in the suburbs surrounding them, particularly if they have been recently upgraded.
Can they adapt to a potential threat from large online retailers like Amazon?
It is likely that the poorer ones will be hit but smart owners will redesign and refurbish to continue to attract consumers.
This could be by increasing the food and beverage options, being smarter about marketing to their local communities or providing more services such as medical centres and gyms.
6. Technology continues to change commercial property
The technological revolution has been slow to hit commercial property, certainly lagging behind sectors such as banking and retailing.
The indirect impacts, however, will continue to be a feature in 2017.
Whether that be by technology occupiers driving office markets (startups to Melbourne, established to Sydney), changing warehouse designs as a result of new picking technology or the above mentioned rise in online shopping, changing technology will impact the occupier markets in particular.
7. Interest rates to rise independently of RBA decisions
Interest rate rises on home loans were big news late last year, particularly given that the Reserve Bank of Australia made two cuts just a few months prior.
Next year, it is likely the banks will continue to break from the RBA’s rates decisions. Even if the RBA cuts interest rates, there is no guarantee that this will be passed on.
While this seems to be largely focused on residential lending, it may also impact lending on commercial property, particularly for those property types that are closely linked to the residential market (like development sites).
8. Australian investors expand offshore
Australians were among the biggest investors offshore in commercial property in the lead up to the GFC, but now barely feature.
Part of this is because so many of them made poor purchasing decisions, and have been impacted by those choices for many years.
The other factor is that so many large Australian investors are now backed by offshore money, which means very few want their funds sent outside Australia.
In 2017, however, the number of investors looking overseas is likely to grow.
That group is likely to be dominated by Australian superannuation funds, however smaller unlisted funds and syndicates are likely to become more active.
Part of this will be about moving up the risk curve but also about diversification and taking advantage of opportunities in other markets.
9. Investors continue to move up risk curve
The GFC was almost a decade ago and the types of property popular with investors have changed significantly over that time period.
Moving from the safest office markets in the years immediately after 2007 to the rise in the popularity of agribusiness, medical centres and self storage more recently, the change is consistent with most commercial property cycles.
A search for stock, yield and opportunity will continue to drive the types of properties that are attractive to investors in 2017.
This could mean moving offshore, into childcare centres or contaminated industrial sites.
10. Apartment oversupply concerns impact development site sales
The apartment boom has been kind to owners of development sites, with values rising rapidly over the past five years in almost every capital city.
In 2017, inner Melbourne and inner Brisbane are coming into an enormous amount of new apartment completions.
While this may not necessarily be a problem, it is likely to lead to developers taking a pause in these markets as the new supply is absorbed.
Expect development site values to stabilise or even decline as a result.
This article appeared in <a href="https://www.realcommercial.com.au/news/how-is-the-commercial-property-market-shaping-up-in-2017" target="_blank">www.realcommercial.com.au</a>.
</body></html>

j.ballantyne1990-6AQqhLzZaK

How is the commercial property market shaping up in 2017?: Nerida Conisbee

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GUEST OBSERVER
Demand for property on realestate.com.au rocketed in 2016, with the REA Group Property Demand Index increasing by 16.2 percent across the year, according to the REA's latest property demand index.
After peaking in October and November, demand for property dropped slightly to close out 2016, with the index falling 6.6 percent nationally in December.
The easing of demand nationally suggests that the record price rises in Sydney and Melbourne last year are likely to be more subdued as we move further into 2017.
The key drivers of this demand decline are likely due to Australian banks increasing interest rates for buyers independently of the Reserve Bank of Australia in late November and early December and continuing affordability issues across the Eastern seaboard.
Given the RBA has indicated that it may still cut the cash rate further, the banks have sent strong signals that they will respond by not passing cuts onto borrowers and we expect out of cycle interest rate rises by banks to continue.
This will be a key issue for borrowers this year, especially first home buyers and investors, with access to cheap money becoming more difficult.
<a href="https://www.propertyobserver.com.au/images/2017/01/04/REA-1.jpg" target="_blank">Click to enlarge</a>
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The states which saw the largest declines in demand in December were New South Wales and Victoria. Continued concerns about apartment over supply are starting to cause concern in these markets with demand for apartments dropping by more than 7% in both states.
Western Australia and Northern Territory remain the lowest in-demand markets on realestate.com.au, however Western Australia’s demand index was relatively stable and both states saw an increase in apartment demand.
The result suggests that barring any surprising negative economic news or changes to the supply outlook in Western Australia, the bottom of the housing market could be close.
Tasmania continues to see elevated levels of demand and is now the strongest demand market in Australia. Relative affordability is likely a key factor driving interest.
National Demand for property dropped by 6.6% on realestate.com.au in December, down from the peak levels achieved in October and November.
Victoria saw the largest decline over the month, driven by low levels of demand for both houses and apartments.
New South Wales followed closely, suggesting the housing boom may be over, or at the very least slowing quickly, in both Sydney and Melbourne.
Despite December declines, Tasmania, New South Wales and Victoria continue to see the highest levels of demand in Australia with Western Australia and Northern seeing the lowest.
<a href="https://www.propertyobserver.com.au/images/2017/01/04/REA-2.jpg" target="_blank">Click to enlarge</a>
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Victoria and New South Wales saw the largest decrease in people looking to buy on realestate.com.au in December. Affordability remains a the key driver in both states
<a href="https://www.propertyobserver.com.au/images/2017/01/04/REA-3.jpg" target="_blank">Click to enlarge</a>
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Housing demand on realestate.com.au declined in all states, however the largest drops were in New South Wales and Victoria. Tasmania and Western Australia saw the smallest declines.
Tasmania, Victoria and New South Wales continue to see the highest level of demand for houses.
Despite declining in December, the index for housing is still well up in all states for the 2016 calendar year.
Western Australia is the exception, where conditions have worsened over the past 12 months, however the bottom of the market appears to be close.
<a href="https://www.propertyobserver.com.au/images/2017/01/04/REA-4.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/01/04/REA-4.jpg" alt="">
Apartment demand dropped by 5 percent nationally in the month to December, performing marginally better than houses over the same time period.
Demand for apartments nationally on realestate.com.au remains high, the third highest point recorded.
Concerns of apartment over-supply are impacting demand in New South Wales and Victoria, with these states experiencing the largest declines in December 2016.
Surprisingly, demand for apartments increased in the relatively weak markets of Western Australia and Northern Territory in December.
Nerida Conisbee is the Chief Economist at <a href="https://www.realestate.com.au/buy" target="_blank">REA Group</a>.
 
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