<p><a href="https://www.apartments.com.au/developers/jwland-development">JWLand</a>’s De Burgh, the final residential release within the Northbourne Village precinct in Lyneham, is nearing completion just as the Federal Government’s Home Guarantee Scheme prepares for its most significant expansion to date.&nbsp;</p>

<p>From October 2025, the scheme will allow first home buyers to enter the market with just a five per cent deposit and no lenders mortgage insurance (LMI), removing some of the most common barriers to ownership.</p>

<p>With <a href="https://www.apartments.com.au/new-apartments/de-burgh-at-northbourne-village-40-de-burgh-street-lyneham-act-2602">De Burgh</a> on track for residents to move in by late spring 2025, the timing creates a strong opportunity for first home buyers seeking brand-new apartments in Canberra’s sought-after Inner North.&nbsp;</p>

<p>[smartcode_project:default project_id=139989 project_image_fid=212888]</p>

<p>The project delivers 350 residences across two buildings, with layouts ranging from compact studios through to one, two, and three-bedroom apartments.</p>

<p>JWLand has tailored the development for long-term liveability, integrating natural light, privacy and outdoor space into each home. Ground-floor residences feature private courtyards, while upper levels benefit from generous balconies.</p>

<p>Kitchens are fitted with Fisher &amp; Paykel appliances, and all apartments include ducted reverse-cycle air conditioning with smartphone app control for lighting and climate.&nbsp;</p>

<p>Shared resident facilities include a rooftop garden, gym, lounge and parcel lockers, alongside landscaped green space within the precinct.</p>

<p>[smartcode_project:default project_id=139989 project_image_fid=267376]</p>

<p>For buyers, the expanded Home Guarantee Scheme removes income caps and introduces unlimited places, making it more accessible than ever. With most De Burgh apartments priced under $1 million, they fall well within the updated eligibility thresholds.</p>

<p>The policy changes provide first home buyers with greater certainty and a smoother path to finance. Combined with the quality and location of De Burgh, the expanded scheme is expected to draw a new wave of buyers to Canberra’s Inner North.</p>

<p>Residents will benefit from the project’s central setting, just 600 metres from the light rail and three kilometres from Canberra’s CBD. The precinct is bordered by the <a href="https://www.apartments.com.au/developments/lyneham-act-2602">Lyneham</a> wetlands and sits within easy reach of cafes, restaurants, schools and the ANU.</p>

<p>With completion scheduled for late 2025, De Burgh is set to be among the first major apartment projects to meet the expanded scheme head-on, offering first-time buyers a realistic pathway to ownership in one of Canberra’s most connected neighbourhoods.</p>

<p>[smartcode_project_cta:default project_id=139989]</p>


Joel Robinson

JWLand’s De Burgh aligns with expanded Homebuyer Scheme, opening doors for first home buyers in Canberra’s Inner North

<p>A subtropical pair of residential towers are in planning for a key South Brisbane site neighbouring the iconic Expo ’88 Skyneedle, with new documents revealing a vertically layered vision designed to respond to the precinct’s evolving high-density character.</p>

<p>The proposal has been lodged by&nbsp;Darveniza Group, which is also is behind the 400-apartment Station Quarter precinct in Alderley.</p>

<p>Darveniza Group, led by Jane Darveniza, the Brisbane-based investor and Queensland rich-lister and widow of the late property magnate Bojan Darveniza, is seeking approval for a mixed-use project encompassing 204 apartments, ground-level retail, food and drink tenancies, and office space across two architecturally integrated towers at 37–39 Manning Street.</p>

<p>Occupying an 1,822 sqm site, the proposed towers would rise above a sculptural podium base, with a recessed landscaped centre, rooftop communal areas, and a total of 220 car parks and 256 bicycle bays. The apartment mix spans one- to five-bedroom dwellings, with a design emphasis on generous balconies, cross-ventilation, and climate-responsive materials.</p>

<p><img alt="First look: Twin towers proposed for Manning Street site beside Skyneedle" data-entity-type="file" data-entity-uuid="42c1f501-2afd-440b-af49-67c257123ea7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Manning%20podium.png?VersionId=KFlksfWzmDRD.VIYxd_1q3VAel.nN3TH" /></p>

<p>“The development is conceived as two slender twin buildings that meet at a lushly landscaped central recess,” the Finegrain design report states. “The façade is highly articulated with the plan form stepping back and forth to reduce visual bulk and maximise internal occupants’ access to natural light and air”.</p>

<p>A hallmark of the proposal is its integration of greenery, both visually and functionally. Around 77 per cent of the site’s green plot ratio is delivered through vertical planting spines, a green podium wall, and rooftop amenity. Ground-level deep planting and landscaped communal zones aim to create a shaded, walkable interface along Manning Street.</p>

<p>“The stepped plan form introduces variation in balcony setbacks and enclosed apartment areas, enriching both the façade expression and the resident experience,” the design team notes. “At ground and podium levels, this stepping also enhances permeability, maximising pedestrian view lines to the neighbouring Skyneedle and reinforcing a strong sense of local identity”.</p>

<p><img alt="First look: Twin towers proposed for Manning Street site beside Skyneedle" data-entity-type="file" data-entity-uuid="b3f26dfc-6b93-465c-9ffb-0a2530372a23" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Manning%20site.png?VersionId=JflvKdqDxcaHTFbb9HL5TwoiRgeQ2LqA" /></p>

<p>The site directly adjoins the heritage-listed Skyneedle at 35 Manning Street, an enduring legacy of World Expo ’88. The accompanying heritage impact report by Pendergast Architects contends that the proposal has been carefully conceived to protect the cultural significance and landmark visibility of the structure.</p>

<p>“The design provides setbacks, tower separation and podium articulation to maintain the visibility and landmark role of the adjoining Skyneedle,” the report states. “The significance of the Skyneedle lies principally in its landmark visibility and cultural symbolism, rather than in detailed fabric or architectural setting”.</p>

<p>The proposal sits within the Kurilpa Sustainable Growth Precinct, under Brisbane’s TLPI 02/2023, where revised planning controls support high-density, mixed-use development integrated with subtropical design and increased public realm contributions.</p>

<p>Finegrain’s design reflects this intent, drawing cues from the site's adjacency to Musgrave Park, the subtropical landscape of South Brisbane, and cultural landmarks such as QPAC and South Bank.</p>


Twin green towers proposed for Manning Street, South Brisbane site beside Skyneedle

<p>A first-of-its-kind culinary precinct is coming to <a href="https://www.apartments.com.au/developments/melrose-park-nsw-2114">Melrose Park</a>, inspired by global street-food flavours and best-in-class restaurants and entertainment.</p>

<p>Deicorp’s emerging mid-city precinct, <a href="https://www.apartments.com.au/new-apartments/melrose-central-melrose-park-33-hope-street-melrose-park-nsw-2114">Melrose Central</a>, will become the go-to precinct within the wider Melrose Park community, and at its heart, a first-of-its-kind culinary precinct that brings the buzz of Asia’s most iconic food streets to life.</p>

<p>Spanning more than 4,700 sqm, Melrose Central street food precinct is inspired by the energy and vibrant flavours of street-food neighbourhoods from Hong Kong and Tokyo to Seoul and Singapore.</p>

<p>This new destination will be over three times the size of existing offerings like Burwood Chinatown or Westfield Chatswood’s Hawker Lane, positioning Melrose Central as a must-visit dining hub for all of Sydney.</p>

<p>[smartcode_project:default project_id=134220 project_image_fid=289878]</p>

<p>Designed by Anthony Ho of Basalt Studio, this street food concept blurs the lines between culinary theatre, art, and entertainment, offering an immersive experience. Neon-lit laneways thread between open kitchens and live grill stations, while murals, interactive displays, and light installations will bring the precinct to life, trading until late, a first for the area.</p>

<p>“We’ve imagined our street food concept as a graduated evolution of everything people love about Burwood Chinatown, East Village and Regent Place, elevated by the immersive artistry creating a city-style dining offer,” said Bilinda Turner, Head of Retail at Deicorp.</p>

<p>“By curating the very best tenants from across Australia, we’re creating a fit-for-purpose town centre for 2025 and beyond. It’s something that people truly haven’t seen before."</p>

<p>[smartcode_project:default project_id=134220 project_image_fid=352610]</p>

<p>Melrose Central is far more than a food precinct. Spanning 30,000 sqm across four levels, the shopping centre will be home to approximately 100 retailers, providing a total lifestyle offering from morning until late evening.</p>

<p>Fresh food offerings span a brand new Coles Supermarket, Local Grocer, Korean Supermarket, Bakery and boutique fresh food, as well as a Dan Murphy's, while health needs are covered from a pharmacy, medical centre and allied health. Fitness and wellbeing take centre stage from a dedicated wellbeing hub that includes pilates, recovery, Infrared saunas and a gym, to name a few.</p>

<p>Variety stores will feature throughout, as well as personal care offerings from nail salons to hairdressers, as well as a dedicated early-learning centre on level 1.</p>

<p>[smartcode_project:default project_id=134220 project_image_fid=289888]</p>

<p>Situated above the retail precinct will be 495 Turner Studio-designed apartments that open onto 6,000 sqm of lush podium gardens and rooftop terraces.</p>

<p>Located just six kilometres east of Parramatta’s CBD and 15km from Sydney CBD, Melrose Central forms the retail and lifestyle heart of Melrose Park, an urban-renewal precinct that is set to deliver more than 11,000 homes, 22,000 new residents, and 50,000 sqm of park and open space.</p>

<p>A dedicated stop on Parramatta Light Rail Stage 2 will arrive at the precinct’s Hope Street entrance, and the forthcoming Parramatta Gateway Bridge will link directly to Sydney Olympic Park and Wentworth Point.&nbsp;</p>

<p>Supported by a 10-minute drive, this growing catchment of 200,000 people, which is projected to grow to 279,000 by 2026, and an average household income above the Greater Sydney average, Melrose Central embodies Deicorp’s vision for transport-oriented, community-focused placemaking.&nbsp;</p>

<p>Melrose Central street food precinct and the wider Melrose Central retail town centre are both slated to open in mid-2026.</p>

<p>[smartcode_project_cta:default project_id=134220]</p>


Melrose Central: First-of-its-kind culinary precinct coming to Sydney’s West

<p><a href="https://www.apartments.com.au/developers/sekisui-house-australia">Sekisui House Australia</a> has unveiled the fifth and final stage of its $1 billion Norwest community, The Orchards.</p>

<p>The final stage, <a href="https://www.apartments.com.au/new-apartments/zeste-at-the-orchards-norwest-104-fairway-drive-norwest-nsw-2153">Zeste</a>, will deliver 209 apartments across two distinctive buildings, Essence and Eden. The 135 apartments in Essence will be the first to be released to the market, which will bring to an end the decade-long vision to create a&nbsp;neighbourhood defined by design excellence, sustainability, and community engagement.</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>[smartcode_project:default project_id=150510 project_image_fid=351878]</p>

<p>David Lee, Sales Manager at Sekisui House Australia said, Zeste's oversized living spaces and diverse apartment mix, which includes the introduction of&nbsp;Breezeway Sky Homes for the first time, deliver a unique lifestyle offering.</p>

<p>Early purchasers will benefit from exclusive VIP pricing as well as the choice of one premium upgrade, which Lee says is a "thank you" for their commitment to the project.</p>

<p>[smartcode_project:default project_id=150510 project_image_fid=351876]</p>

<p>Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, Zeste embodies Sekisui House’s global design philosophy of creating harmony between people, homes and nature. Principal Ben Pomroy explained that Zeste is about living within the landscape.</p>

<p>“With two large courtyards, the lagoon pool precinct for the wider community and a central courtyard with pavilion exclusively for Zeste residents, the architecture frames an experience of living in a park," Pomroy said.</p>

<p>“Over 50 per cent of the site is landscaped, ensuring a deep connection to nature at every stage of daily life. The buildings are designed as a collection of smaller, finer-grain forms, with over 85% of apartments enjoying dual aspects.</p>

<p>“The focus on natural ventilation, generous layouts and communal interaction creates a residential environment that is both sustainable and socially connected.”</p>

<p>&nbsp;</p>

<p>[smartcode_project:default project_id=150510 project_image_fid=351886]</p>

<p>Natalie Shalala, a member of Rothelowman’s interiors team said they reimagined the former site’s Orchard homestead with a contemporary twist. &nbsp;</p>

<p>“The design draws on the nostalgia of the past orchard – timber floors, the warmth of a fireplace, the rituals of the homestead and reinvents them for modern apartment living,"&nbsp;Shalala said.</p>

<p>“We have created two tonal palettes, one with pale honey undertones and another with a soft blush inspired by nectar. A highlight feature is the cathedral glass light box, a bespoke design element that re-interprets the classic lantern. It is both beautiful and functional, tying kitchen and bathroom spaces together in a way that feels entirely unique."</p>

<p>Shalala said the&nbsp;day-to-day liveability has been carefully considered, with abundant storage solutions, butler’s pantries, bike storage and joinery designed to simplify routines and enhance comfort.</p>

<p>&nbsp;</p>

<p>[smartcode_project:default project_id=150510 project_image_fid=352090]</p>

<p>Apartments in Zeste start from $715,000 for one-bedrooms and extend through to expansive three-bedroom Sky Homes priced from $2.25 million. Floorplans range from 59 sqm to 144sqm.</p>

<p>The mix in Essence comprises 41 one-bedroom, seven one-bedroom + Max space, 39 two-bedroom, 40 two-bedroom Breezeway Sky Homes (24 of which include additional Max spaces), and eight three-bedroom residences.&nbsp;</p>

<p>Max spaces are integrated into select residences, offering a flexible room that can be tailored to individual needs, ideal as a home office, children’s play area, or additional storage.</p>

<p>[smartcode_project:default project_id=150510 project_image_fid=351881]</p>

<p>Zeste continues Sekisui House Australia’s partnership with Altogether Group, providing sustainable water, power and data services to residents. Passive design strategies include cross-ventilation, deep landscaping and water features that encourage evaporative cooling, aligning with The Orchards long-term environmental goals.&nbsp;</p>

<p>Construction is set to commence on the Zeste buildings in early 2026, with completion anticipated in late 2027 to early 2028.&nbsp;</p>

<p>More than 850 apartments have been sold across the masterplan, contributing to The Orchards community of 1,300 apartments when complete.</p>

<p>[smartcode_project_cta:default project_id=150510]</p>


Sekisui House Australia launches Zeste, the final stage of its $1 billion Norwest masterplan

<p>A significant addition to the Bella Vista Station Precinct is in the pipeline, with <a href="https://www.apartments.com.au/developers/landen-property">Landen</a> formally lodging a State Significant Development Application for a <a href="https://www.apartments.com.au/new-apartments/40-memorial-avenue-bella-vista-40-memorial-avenue-nsw-2153">new apartment community on Memorial Avenue</a>.</p>

<p>Positioned beside the Elizabeth Macarthur Creek corridor, the project is among the first major transit-oriented residential proposals within the Metro precinct.</p>

<p>The masterplan, designed by&nbsp;<a href="https://www.apartments.com.au/architects/turner-studio">Turner Architects</a>,&nbsp;outlines a four-stage delivery, comprising four buildings between four and fifteen storeys, and includes a mix of one-, two-, and three-bedroom apartments, alongside a limited selection of four-bedroom penthouses and terraces.</p>

<p>The project places a strong emphasis on housing diversity and liveability, with apartment sizes ranging from 50 to 180 sqm. The first stage will deliver 213 dwellings, followed by 231 in the second stage. Construction is expected to commence in 2026, pending approvals.</p>

<p><img alt="Bella Vista Apartments" data-entity-type="file" data-entity-uuid="bb3d84b1-d2df-4e26-915a-31b27faf9b1a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/View02_01-scaled.jpg?VersionId=Gb0AUtZ3VXsLxrqUaw_AwT_vcBwQ_FJu" /></p>

<p>As the first transit-oriented development (TOD) in the precinct, Landen’s Bella Vista community has been designed to align closely with the surrounding Metro infrastructure. The proposal integrates new pedestrian and cycling paths, a new bridge over Elizabeth Macarthur Creek, and direct access to Bella Vista Metro Station.</p>

<p>Lush communal amenities are also central to the design. 'The Grove' and the 'Garden Link' will create landscaped community areas that reflect the area's agricultural heritage and provide direct access to the creekside.&nbsp;</p>

<p>The ‘Garden Patio’ is conceived as a multi-use indoor-outdoor facility offering a gym, study nooks, and communal lounge spaces.&nbsp;Rooftop terraces across the buildings will offer views to the Blue Mountains and Parramatta skyline.</p>

<p><img alt="Bella Vista Apartments" data-entity-type="file" data-entity-uuid="778da409-d5cf-4e7d-9ba9-0c36990bf0b4" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/landen-bella-property-image.jpg?VersionId=ukPpmVcHF71xRc7U3MUT5rtGwOsntMMz" /></p>

<p>Landen’s Head of Property, Shane Harding, said the proposal highlights the developer’s precinct-scale ambition.</p>

<p>“As the first TOD proposal in Bella Vista, it highlights Landen’s ability to pioneer precinct-scale projects, integrate housing with infrastructure, and deliver outcomes that align with government priorities,” Harding told the Daily Telegraph.</p>

<p>The project arrives at a time of rapid growth in Western Sydney, with Bella Vista alone forecast to more than double in population by 2046. The development’s location, between the Bella Vista and Kellyville Metro stations, positions it as a connected lifestyle hub for families, professionals and downsizers seeking access to transport, schools, and employment centres.</p>

<p>Pending approval, the development is slated for completion in 2028.</p>


Landen plans 444-apartment community in Bella Vista Metro zone

Rental Growth

<html><body>
<p>2015 was a lacklustre year for rental growth in Australia with rents increasing by just 0.3% in 2015; not exactly the news investors are looking to read about but good news for those looking to rent.</p>
<p>We’ve never seen rental growth as sluggish as it is at the moment. Furthermore, we’re expecting to see more of the same over the coming months due to increases in the supply of new housing, rental stock and a further slowdown in migration rates. </p>
<p>The only cities to see an increase in weekly rental rates were Sydney with an increase of 1.9 percent, Melbourne (2.2 percent), Hobart (0.6 percent) and Canberra (1.9 percent) while rates fell in Brisbane by (-0.3 percent), Adelaide (-0.2 percent), Perth (-8.0 percent) and Darwin (-13.3 percent). <span style="line-height: 1.3em;"> </span></p>
<p>A comparison between December 2015 and December 2014 shows in 2014 annual rental growth was slowing but was tracking at a much higher 1.8% which highlights just how much the rental market eased throughout 2015. </p>
<p><a href="/images/2016/01/12/Screen%20Shot%202016-01-12%20at%209.21.53%20AM.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/01/12/Screen%20Shot%202016-01-12%20at%209.21.53%20AM.png" alt=""></p>
<p>The construction boom across the capital cities, coupled with slowing population growth, low mortgage rates and the recent heightened level of activity from investors are the major contributing factors to the slowing rental growth in 2015.</p>
<p>Although Sydney and Melbourne saw the largest ramp up in new housing supply, both cities still recorded rental increases over the year, although rental growth is slowing relative to 12 months earlier.</p>
<p>It is clear that the increase in investment stock continues to provide landlords with little scope to lift rental rates while the low mortgage rate environment provides little incentive to push yields higher.</p>
<p>We envisage that growth in rental rates is likely to remain weak or potentially slow even further over the coming months. The good news for those looking to rent is the possibility <span style="line-height: 1.3em;">that rental rates will fall even further over the coming year.</span></p>
<p><span style="line-height: 1.3em;">While the news for renters will be welcomed, investors may be facing weaker capital gains coupled with little in the way of rental growth or yield.</span></p>
<p>The large pipeline of residential construction activity and recent high levels of investment demand means that renters are likely to continue to have plenty of choice.</p>
<p><a href="/images/2016/01/12/Screen%20Shot%202016-01-12%20at%209.15.47%20AM.png" target="_blank">Click to enlarge</a></p>
<p><em><strong><img src="/images/2016/01/12/Screen%20Shot%202016-01-12%20at%209.15.47%20AM.png" alt=""></strong></em></p>
<p><em><strong> </strong></em></p>
<p><em><em>Cameron Kusher is research analyst for CoreLogic RP Data. You can contact him <a href="https://blog.corelogic.com.au/about/" target="_blank">here</a>.</em></em></p>
</body></html>

ckusher-ujnxiKuFQs

Annual national rental growth lowest on record for landlords: Cameron Kusher

<html><body>
<p><span style="line-height: 1.3em;">Rental yields across the combined capital cities have gradually trended lower over the past two decades and currently sit at record-low levels. </span></p>
<p><span style="line-height: 1.3em;">The change in rental rates have also seen a slowdown in recent years which has culminated in no change in rents over the past year. This represents a historically weak market for rental growth. </span></p>
<p>Looking at rental growth over the past decade, across the combined capital cities rental rates increased by 50.7 percent over the period, or 4.2 percent per annum. This is a lower level of increase than home values which have increased by 72.0 percent (5.6 percent per annum) over the same period. A split by property types, shows there hasn’t been a substantial difference in performance, with house rents increasing by 50.3 percent compared to a 53.7 percent rise in unit rents. </p>
<p>By breaking out the results across the individual capital cities and looking at the total rental change over the past decade, these show that Sydney (+59.4 percent) and Perth (54.6 percent) have seen significantly greater increases in rents than all other capital cities. </p>
<p><a href="/images/2016/02/23/Screen%20Shot%202016-02-23%20at%204.18.39%20PM.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/02/23/Screen%20Shot%202016-02-23%20at%204.18.39%20PM.png" alt="" width="826" height="757"></p>
<p>Although rental growth has been strong in some cities, in most instances home value growth has outpaced rental growth over the past decade. The exceptions have been Hobart and Perth where rental increases have outstripped value growth, pushing yields higher over the decade, and Brisbane where value growth and rental growth have each been recorded at 44.0 percent over the decade.</p>
<p>The other side of the rental growth equation is of course gross rental yields which highlight the expected annual <span style="line-height: 1.3em;">rental return on an investment property. There are a few points that should be highlighted, they are based on the home value so no consideration is given to borrowings nor are there allowances for costs. Furthermore, the calculation assumes that there is no vacancy, which in the current environment is becoming somewhat more difficult to achieve. </span></p>
<p>Over the past 10 years there has been little overall change in gross rental yields across the capital cities. Although capital city rental yields are now at an historic low of 3.5 percent the shift from 4.0 percent 10 years ago has been relatively minimal. Perth and Hobart are the only cities in which yields are now higher than they were 10 years ago while in Brisbane they are unchanged over the period.</p>
<p>Melbourne and Darwin have seen the greatest softening in gross rental yields over the past decade. Melbourne, where gross yields are the lowest of any capital city, have slipped from 4.2 percent ten years ago to 2.9 percent currently. </p>
<p>With rental rates falling and yields sitting at record low levels at a time when housing construction is at its highest level on record it is reasonable to expect that rents and yields will slip further over the coming years. </p>
<p>Of course we have recently seen the Labor opposition propose changes to negative gearing and the capital gains tax discount. Were policies such as these to be implemented it could change the situation for investors. Whereas over recent years their focus has clearly been on value growth, attention could begin to become more balanced w<span style="line-height: 1.3em;">here investors place a higher degree importance on the yield profile and potential for positive cash flow.</span></p>
<p><a href="/images/2016/02/23/Screen%20Shot%202016-02-23%20at%204.20.11%20PM.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/02/23/Screen%20Shot%202016-02-23%20at%204.20.11%20PM.png" alt="" width="823" height="377"></p>
<p><em>Cameron Kusher is research analyst for CoreLogic RP Data. You can contact him <a href="https://blog.corelogic.com.au/about/" target="_blank">here</a>.</em></p>
</body></html>

Housing rents slower to increase than home values: Cameron Kusher

<html><body>
<div id="post-body-651116980849945678" class="post-body entry-content">
<div>There are still a great many property investors around in the market right now, so there shouldn't be too much upwards pressure on rents at the national level.</div>
<div> </div>
<div>And, so it is!</div>
<div> </div>
<div>The weighted average annual rents inflation across Australia's eight capital cities steadied at +0.7 per cent in the third quarter of calendar year 2016, according to the ABS Consumer Price Index figures. </div>
<div> </div>
<div>As you can clearly see in the chart below, nominal rental prices at the national level only tend to spike dramatically when property investors are spooked out of the market for some reason, thereby stymying the available supply of rental stock.</div>
<div> </div>
<div>This has only happened twice over the past 35 years or so, with the most recent trigger point being the global financial crisis. </div>
<div> </div>
<div>However, with mortgage rates close to their record lows, there are presently oodles of investors in the domestic market - and many more from overseas too! - even in the face of recent curbs. </div>
<div> </div>
<div><a href="/images/2016/10/28/pete1.jpg" target="_blank">Click to enlarge</a></div>
<br><div class="separator"><img src="/images/2016/10/28/pete1.jpg" alt=""></div>
<br><div>
<strong><span style="text-decoration: underline;">City by city</span></strong><br><strong><span style="text-decoration: underline;"><br></span></strong>
</div>
<div>Of course, the outlook is as always quite different for each capital city, region, and sub-region.<br><br>
</div>
<div>I have presented a second chart below as an index to show what has happened to nominal rents over the last four-and-a-half decades.</div>
<div> </div>
<div>One of the reasons I have done so is that although commentators seemingly love to spin out 'inflation-adjusted' results, the reality for many of us living today is that we often have 'rent versus buy' equations to weigh up, and for these decisions we understandably - and logically - tend to think in nominal terms.<br><br>"Are rents rising? Are dwelling prices rising? What about holding costs? Will mortgage rates increase or decrease? What is the smartest financial decision here?"</div>
<div> </div>
<div>In Sydney, annual rents inflation accelerated slightly to +2.5 per cent, which is still close to double the +1.3 per cent headline rate of inflation.</div>
<div>
<br>Blogsites and media do love a good falling rents meme, but this hasn't really been backed up by the facts, at least in Sydney's case.<br><br>Indeed, Sydney rents have increased at double the rate of inflation for nearly a decade now.<br><br>
</div>
<div>Since the beginning of 2007 Sydney's rental index has increased by +54 per cent, exactly double the rate of inflation for the harbour city over the same time horizon. </div>
<div> </div>
<div>Rental growth may be softer than it was, and in fact it is already easing in some pockets of Sydney, but rents have hardly 'fallen' since the financial crisis as commentary sometimes tries to imply.</div>
<div> </div>
<div>It's a very different Jackanory in the resources capitals, mind you.<br><br>After a great surge in both rents and dwelling prices through the heady days of the resources boom, the rental index numbers are in full on decline mode in Perth, falling back by -6.4 per cent over the year to September.<br><br>This puts the rental index for Perth back close to where it was at the peak of the mining boom four years ago in Q3 2012.<br><br><div><span>And in Darwin, the equivalent year-on-year decline has been -7.7 per cent, although certain other metrics have implied that the real estate market in the Top End may be stabilising somewhat. </span></div>
<div><span> </span></div>
<div><a href="/images/2016/10/28/Screen%20Shot%202016-10-28%20at%208.51.32%20AM.png" target="_blank"><span>Click to enlarge</span></a></div>
<div><span> </span></div>
</div>
<div><img src="/images/2016/10/28/Screen%20Shot%202016-10-28%20at%208.51.32%20AM.png" alt=""></div>
<br><div>Rental growth is flat on this index in Canberra, while interestingly the rental growth index for Adelaide has by and large tracked that of Melbourne closely for almost the entire data series since 1972. You learn something new every day!</div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Supply response cavalry now arriving</span></strong></div>
<br><div>The chart above hints at why Rory Robertson was always unlikely to lose his high profile 2008 bet cf. Sydney house prices correcting sharply.</div>
<div> </div>
<div>While the annual rate of population growth in New South Wales rose incessantly from 2004 to 2008 up to an annualised peak of nearly 118,000, very little accommodation was actually being built, and this has resulted in nearly a chronic supply shortage and nearly a decade of strong rents growth. </div>
<div> </div>
<div><a href="/images/2016/10/28/Screen%20Shot%202016-10-28%20at%208.52.55%20AM.png" target="_blank">Click to enlarge</a></div>
<div> </div>
<div class="separator"><img src="/images/2016/10/28/Screen%20Shot%202016-10-28%20at%208.52.55%20AM.png" alt=""></div>
<div> </div>
<div>What you don't need any charts to tell you - just listen to the jackhammers! - is that this dynamic has at last changed, with dwelling construction at now really hitting its straps over the last couple of years, and a veritable flood of apartment completions in the post.<br><br>---<br><br>In other news, Domain reported that Sydney's median house price rose by +2.7 per cent in the September quarter to a fresh all-time high of $1,068,000.<br><br>In Melbourne, the median house price rose by an even more sprightly +3.1 per cent over the quarter and +9.1 per cent over the year to also hit a record high of $774,000.<br><br>Somewhat surprisingly, median unit prices in Melbourne performed even more strongly again in the quarter in rising by +4.5 percent, to be +5.5 percent higher over the year.<br><br>Melbourne has been constructing dwellings like fury in recent years, but population growth has accelerated to extraordinarily high levels as you can see in the chart above. </div>
<div> </div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
</div>
<div> </div>
</div>
<div class="post-footer"> </div>
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pwargent-M4siyDbqQY

Rental growth steadies, though not in Sydney

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<p>Rental growth was flat at just 0.6 percent over the year to March 2017, according to the ABS inflation figures.</p>
<p>This is the equal lowest annual percentage growth since 1994, largely reflecting the new supply of apartments hitting the capital cities on the east coast.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/04/27/A6.jpg" target="_blank">Click to enlarge </a></p>
<div id="post-body-3862946038801712568" class="post-body entry-content">
<div class="separator"><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/2017/04/27/A6.jpg" alt=""></div>
<br><div>The national figure obscures contrasting fortunes around the capital cities.</div>
<div> </div>
<div>Sydney recorded annual growth in its rental CPI of 2.5 percent. </div>
<div> </div>
<div>In Melbourne rental price growth has been picking up over the past five quarters, although only to 1.7 percent year-on-year according to the ABS series (there has been considerably stronger growth in asking prices). </div>
<div> </div>
<div>Hobart recorded the fastest annual growth of the capital cities at 4.2 percent. </div>
<div> </div>
<div>In Canberra there has not been much to see in aggregate, but anecdotally there is a view that the annual land tax has turned investors away from houses leading to a shortage of detached rental stock (though as in most capitals there is clearly no shortage of new apartments, which has compensated tenants for now).</div>
<div> </div>
<div>In Darwin rents declined by 7.4 percent year-on-year, although this actually represents an improvement on the preceding quarter's drop.</div>
<div> </div>
<div>And in Perth, rents were down by 7.3 percent year-om-year, having now dropped by 12.1 percent from their peak. </div>
<div> </div>
<div><a href="https://www.propertyobserver.com.au/images/2017/04/27/A4.jpg" target="_blank">Click to enlarge</a></div>
<br><div class="separator"><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/2017/04/27/A4.jpg" alt=""></div>
<br><div>In Brisbane nominal rents remain positive, but there's no doubt that inner city apartments rents are set for a tumble, as evidenced by the "for lease" banners strewn around the inner city.</div>
<div> </div>
<div>This from yesterday...</div>
<br><div class="separator"><a href="https://3.bp.blogspot.com/-PotrGvJHDlc/WQDxsUvwVtI/AAAAAAAAjbQ/tUknpxnVbnQqjWV1PrKg-ApGxG14UBZPgCLcB/s1600/IMG_1655.JPG"><img src="https://3.bp.blogspot.com/-PotrGvJHDlc/WQDxsUvwVtI/AAAAAAAAjbQ/tUknpxnVbnQqjWV1PrKg-ApGxG14UBZPgCLcB/s640/IMG_1655.JPG" width="640" height="480"></a></div>
<br><strong><span style="text-decoration: underline;">Benign inflation</span></strong><br><div> </div>
<div>The above figures feed in to the benign inflation picture.</div>
<div> </div>
<div>Moreover, while dwelling construction is expected to remain strong for some time in Sydney, new apartment projects are now being shelved or scrapped practically by the week in Melbourne and Brisbane.</div>
<div> </div>
<div>As each new Brisbane apartment project completes this will leave a small hole in the economy, which cumulatively will act as a drag on growth.</div>
<div> </div>
<div>For this reason the government will be looking to loosen the purse strings to pave the way for infrastructure projects to plug the hole, which can be achieved through borrowing without unnecessarily crippling the budget.</div>
<div> </div>
<div>A final point, the Sydney market has seen rents outpace CPI by a factor of two over the past ten years to rise by 56 percent.</div>
<div> </div>
<div><a href="https://www.propertyobserver.com.au/images/2017/04/27/A5.jpg" target="_blank">Click to enlarge </a></div>
<br><div class="separator"><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/2017/04/27/A5.jpg" alt=""></div>
<br><div class="separator"> </div>
<div>This reflects that Sydney's construction boom was still addressing an inherent undersupply until recently, but stay alert because the balance is about to swing sharply in favour of tenants over the next couple of years. </div>
<div> </div>
<div>
<p class="p1"><span class="s1">PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank"><span class="s2">AllenWargent</span></a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank"><span class="s2">blogger</span></a>.</span></p>
<p class="p2"><span class="s3"><em>His latest book is </em><a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank"><span class="s2"><em>Four Green Houses and a Red Hotel</em></span></a><em>.</em></span></p>
</div>
</div>
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Rental growth at two-decade low: Pete Wargent

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<p>EXPERT OBSERVER</p>
<p class="p1"><span class="s1">Rental trends are an important barometer of our major markets largely overlooked by mainstream media.</span></p>
<p class="p1"><span class="s1">Media regards changes in median prices and auction clearance rates in the big cities as the measures worth considering, but at Hotspotting we think movements in rents are equally important. They reveal a lot about the state of individual markets and they can serve as a precursor to what’s likely to happen with prices.</span></p>
<p class="p1"><span class="s1">History shows that an uplift in prices is often preceded by tight vacancies and strong rises in rentals. This occurred in Sydney in 2011 and 2012, ahead of the start of the price boom in 2013.</span></p>
<p class="p1"><span class="s1">Hobart, which has had a mini-boom in the past two years, first experienced a sharp decrease in residential vacancies and significant increases in rentals.</span></p>
<p class="p1"><span class="s1">Hobart still has the tightest vacancies in capital city Australia (well under 1%) and it continues to lead on rent increases. We have analysed new data from the two best sources on rental statistics, SQM Research and Domain, and both record strong annual rises for house rents (7.2% SQM and 9.8% Domain) in Hobart and even bigger increases for unit rents (11.6% and 12.9%).</span></p>
<p class="p1"><span class="s1">Perth is another standout. A year ago the vacancy rate for the WA capital was 4% but it has reduced steadily over the past 12 months and is now below 3%. Rents have responded, with houses up 4.5% (SQM) or 5.7% (Domain), and units up 4.9% (SQM) and 3.3% (Domain).</span></p>
<p class="p1"><span class="s1">If history repeats, this dramatic improvement in the rental market will be followed by uplift in prices, for the first time in five years (the latest SQM data suggests price trends are starting to improve in Perth).</span></p>
<p class="p1"><span class="s1">Adelaide too is producing solid rental growth. Both sources have house rents up about 2.6% in annual terms, and apartment rents rising around 3.3%. Adelaide vacancies are hovering around 1%.</span></p>
<p class="p1"><span class="s1">Brisbane, where vacancies have recently dropped below the 3% benchmark after several years of over-supply in apartment markets, is now producing moderate rental growth for both houses and apartments.</span></p>
<p class="p1"><span class="s1">Both sources agree that Canberra is producing solid growth in rents for apartments, up more than 4%, but Domain records no growth for house rents, while SQM says Canberra house rents have dropped about 2% in the past year. Canberra vacancies are trending higher but remain tight at 1.2%, according to SQM.</span></p>
<p class="p1"><span class="s1">Melbourne, where vacancies are generally low, has delivered minor growth in apartment rents, while house rents are largely unchanged.</span></p>
<p class="p1"><span class="s1">The two cities with the highest vacancies, Sydney and Darwin, are the only state and territory capitals where rents are significantly down.</span></p>
<p class="p1"><span class="s1">In Sydney, where vacancies are trending higher, houses rents are down about 5% in annual terms, while apartment rents have fallen around 4%.</span></p>
<p class="p1"><span class="s1">Darwin is showing signs of recovery with rents for houses, with vacancies better in the past year. But apartment rents have dropped 5%, according to both research sources.</span></p>
<p class="p1"><span class="s1">Overall, the situation is positive for vacancies and for rents. Sydney is the notable exception.</span></p>
<p class="p2"><span class="s1">The improvement in the rental situation for Perth, Adelaide and Brisbane suggests price growth is likely in the near future - especially when considered alongside other factors</span><span class="s2">.</span></p>
<p class="p2"><span class="s1">T<em>erry Ryder is the founder of hotspotting.com.au</em></span></p>
<p class="p2"><span class="s3"><a href="https://mailto:ryder@hotspotting.com.au"><em>ryder@hotspotting.com.au</em></a></span></p>
<p class="p4"><span class="s1"><em>twitter.com/hotspotting</em></span></p>
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terryryder-YECXbqmri2

Rental trends an important barometer for property market strength: Hotspotting's Terry Ryder

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<p>EXPERT OBSERVER</p>
<p class="p1"><span class="s1">Media tends to measure markets by movements in median prices. But other measures of the health of major markets are worthy of attention, including sales volumes, vacancy rates and movements in rentals.</span></p>
<p class="p1"><span class="s1">Rental data is often a forward-looking marker of things to come with prices. Sydney had a couple of years of major rental growth, but little in the way of price growth, before embarking on its price boom from 2013 to 2017. Hobart recorded very low vacancies and the nation’s biggest rental growth before starting the mini-boom on prices that’s still occurring.</span></p>
<p class="p1"><span class="s1">So we should keep a close eye on what’s happening with vacancies and rents in the major cities.</span></p>
<p class="p1"><span class="s1">The Domain Rental Report for the December 2018 Quarter shows that rents are stronger than sale prices in terms of growth in the past year. Six of the eight capital cities delivered growth in their rentals in 2018, both for houses and for apartments. Recent rental data from SQM Research has similar numbers.</span></p>
<p class="p1"><span class="s1">There is, as always, a strong correlation between vacancy rates and rental growth.</span></p>
<p class="p1"><span class="s1">The cities with the tightest rental markets, Hobart (0.4% vacancy, according to SQM) and Canberra (0.9%), are the ones with the highest annual growth in their rentals.</span></p>
<p class="p1"><span class="s1">Other cities with low vacancies, Adelaide (1.2%) and Melbourne (1.9%), have also recorded solid growth in their rentals.</span></p>
<p class="p1"><span class="s1">Two cities where vacancy rates have been high in the recent past but have improved recently - Brisbane (3.0%) and Perth (3.4%) - are also both delivering moderate growth in their rents.</span></p>
<p class="p1"><span class="s1">The only cities where rents have fallen in the past year are those where vacancies are trending higher - Sydney (current vacancy rate 3.2%, up from 2.1% a year ago) and Darwin (4.0%, up from 2.8% a year ago).</span></p>
<p class="p1"><span class="s1">Sydney house rents have declined annually for the first time in 12 years. Sydney is no longer the nation’s most expensive capital city to rent a house.</span></p>
<p class="p1"><span class="s1">Canberra house rents have continued to rise on the back of low vacancies and the national capital is now the most expensive city for house rentals (according to Domain – the SQM Research figures differ on this point).</span></p>
<p class="p1"><span class="s1">Brisbane house rents increased annually for the first time in almost three years, helped by improvement in the vacancy rate. This is one of numerous markers suggesting that Brisbane real estate will be stronger in 2019.</span></p>
<p class="p1"><span class="s1">Hobart house rents continue to increase, but the rate of growth has slowed. There’s a similar trend with prices and this, combined with a gradual decline in sales activity recently, suggests the mini-boom in the Tasmanian capital has passed its peak.<span class="Apple-converted-space"> </span></span></p>
<p class="p1"><span class="s1">Perth house rents have increased annually for the first time in five years. “Coupled with improving yields, the city will become a more attractive option for investors,” says Domain. I tend to agree and note that there are other indicators of improvement in the Perth market, including increased sales activity and elevated prices in the million-dollar suburbs.</span></p>
<p class="p1"><span class="s1">In the apartment markets, Sydney unit rents have declined for two consecutive quarters for the first time on record, with rents hitting an almost two-year low, Domain says.</span></p>
<p class="p1"><span class="s1">Brisbane unit rents recorded the strongest annual increase in almost three years. I note that Moody’s Analytics is forecasting Brisbane will be a national leader on apartment price growth in the next year or two.</span></p>
<p class="p1"><span class="s1">Canberra unit rents experienced the strongest annual growth the city has seen in almost two years, yet another marker of stronger performance in this market, which is underpinned by one of the nation’s best economies and lowest jobless rate.</span></p>
<p class="p1"><span class="s1">Overall the rental data, alongside other figures, points to stronger markets this year in Canberra, Brisbane, Perth and Adelaide – and confirms the decline in Sydney, while pointing a gradual wind-down in Hobart’s buoyant market.</span></p>
<p class="p3"><span class="s1">T<em>erry Ryder is the founder of hotspotting.com.au</em></span></p>
<p class="p3"><span class="s2"><a href="https://mailto:ryder@hotspotting.com.au"><em>ryder@hotspotting.com.au</em></a></span></p>
<p class="p4"><span class="s1"><em>twitter.com/hotspotting</em></span></p>
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Rental data provides clues for property price growth areas: Hotspotting's Terry Ryder

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<div>The latest Consumer Prices Index revealed some interesting trends in rental growth to December 2015.</div>
<div> </div>
<div>At the national level rental growth of just +1.2 percent is the slowest we have seen since 1995, which makes a good deal of sense given the great surge in the number of investors and the construction response to rising dwelling prices. </div>
<div> </div>
<div>Essentially this is the opposite of what happened in 1985 when investors exited the market following restrictive changes to tax legislation.</div>
<div> </div>
<div><a href="/images/2016/01/29/B1.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2016/01/29/B1.jpg" alt=""></div>
<div> </div>
<div>
<div><span style="text-decoration: underline;"><strong>City by city</strong></span></div>
<div> </div>
<div>In most quality locations, rental growth is simply following the cycle, slowing in response to a surge in both construction and the number of investor-owned dwellings.</div>
<div> </div>
<div>Annual rental growth remains positive in Sydney (+2.3 per cent), Melbourne (+1.7 per cent), Brisbane (+1.0 per cent), Adelaide (+1.2 per cent), and Hobart (+1.1 per cent).</div>
<div> </div>
<div>It is a truism to say that there are diverging trends within those markets, particularly noteworthy being slowing rents in high density and high rise apartment complexes.  </div>
<div> </div>
<div>Rental growth has turned negative in Perth and Darwin, following an enormous surge through the mining boom, while Canberra has actually recorded moderately negative rents for the past three years.</div>
<div> </div>
<div><a href="/images/2016/01/29/B2.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2016/01/29/B2.jpg" alt=""></div>
<div> </div>
<div>
<div><strong><span style="text-decoration: underline;">Long run trends</span></strong></div>
<div> </div>
<div>It pays to be wary about analysis calling "plummeting" rental growth, but it is true that the rental market will generally need to slow in order that the high levels of investor stock can be absorbed. </div>
<div> </div>
<div>Eventually stronger rental price growth will return, but only once investor finance has pulled back, and the cycle does take time to work through. </div>
<div> </div>
<div>The long run data shows the cyclical nature of rental growth by capital city. </div>
<div> </div>
<div><a href="/images/2016/01/29/B3.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2016/01/29/B3.jpg" alt=""></div>
<div> </div>
<div><span>Looking at rental growth by year it is clear that while rental price growth been strongest in Sydney over the past five years, over the past decade the resources states have seen the greatest increase in the cost of renting, some of which is now unwinding.</span></div>
<div><span> </span></div>
<div><a href="/images/2016/01/29/C4.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span><img src="/images/2016/01/29/C4.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
</div>
</div>
</div>
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National rental growth slowest since 1995: Pete Wargent

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<p>"The pace of increase in rents remains at its slowest in 25 years,” according to Shane Garrett, Chief Economist of Master Builders Australia.</p>
<p>ABS inflation data show that over the year to September 2018, rents increased by just 0.6%.</p>
<p>He said, "the last time we saw a smaller increase in rental prices was back in late 1993."</p>
<p>“Rents have been increasing at a much weaker pace than both wages and general inflation over recent years” </p>
<p>“Current arrangements around Negative Gearing and the Capital Gains Tax discount are also crucial to ensuring that a large enough supply of rental accommodation makes it onto the market from year to year. Introducing any restrictions here could cause shortages of rental accommodation to develop,” Shane Garrett concluded.</p>
<p>There is considerable variation in rental price inflation across Australia’s eight capital cities.</p>
<p>Over the year to September 2018, Hobart rents saw the largest increase (+4.5%), followed by Canberra (+3.0%).</p>
<p>Rents also rose in Sydney (+1.9%), Melbourne (1.8%) and Adelaide (+0.8%) over the same period.</p>
<p>Perth rents saw a sharp decline over the year (-6.1%) with rents also falling in Darwin (- 4.6%) and Brisbane (-0.1%) over the same period.</p>
<p> </p>
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