An entity directed by HSN's Rafi Assouline and Rebel Property's Allen Linz has filed plans for an impressive new precinct in Woolloomooloo.

The major mixed-use development would transform a prominent William Street site into a new residential village anchored by affordable housing and a large public park.

The proposal, submitted as a State Significant Development Application, covers 164-172 and 174-194 William Street, a 6,398 sqm site between Forbes Street and Dowling Street on the southern edge of Woolloomooloo.

Designed by fjcstudio in collaboration with Bangawarra, Studio Bright and Tribe Studio Architects, the scheme would deliver 227 apartments across four residential buildings ranging in height up to 18 storeys, alongside retail space, public domain improvements and a new publicly accessible park.

<img alt="Rebel" data-entity-type="file" data-entity-uuid="0eb59b7c-914a-4a5c-b849-3a56749f5e93" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-12%20at%2011.18.51%E2%80%AFAM.png?VersionId=mxM6EEqeoLjrCiTlCzTKTvzpKuh6kSkH" />

It's another design scheme for Rebel, who took <a href="https://www.apartments.com.au/news/nsw/first-look-rebel-property-group-takes-woolloomooloo-precinct-to-nsw-government">concept plans to the NSW Gov late last year</a>.

The latest plans will be a mix of 167 build-to-sell apartments and 60 affordable apartments, with the affordable housing component representing 15 per cent of the project's gross floor area. The apartment mix includes 12 one-bedroom, 53 two-bedroom, 89 three-bedroom apartments and 13 penthouses, while the affordable housing component would comprise 42 one-bedroom and 18 two-bedroom apartments.

<img alt="Rebel" data-entity-type="file" data-entity-uuid="3b3d4553-8a8c-4af5-aa8c-519ffb1e28c6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-12%20at%2011.20.12%E2%80%AFAM.png?VersionId=_Yb6ibN7eDnOtQjCNDK2eviORa4qzgv." />

Rebel Property is seeking to take advantage of the NSW Government's infill affordable housing bonus provisions under the Housing SEPP, which provide additional floor space and height in exchange for the delivery of affordable housing for a minimum of 15 years. The planning pathway allows a 30 per cent increase in floor space ratio and building height where 15 per cent of the development is dedicated to affordable housing.

&nbsp;

At the centre of the development is a 1,356 sqm sunlit public park designed to become a new community gathering space at the gateway to Woolloomooloo. The park would be complemented by a network of pedestrian laneways connecting William Street with the surrounding streets, improving permeability through what is currently a largely impermeable block.

<img alt="Rebel" data-entity-type="file" data-entity-uuid="257af931-a393-4007-8c6d-7219796df58d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-12%20at%2011.20.51%E2%80%AFAM.png?VersionId=KAHy94GrhaReFsWTGDKfy39EDJ8gEEv4" />

The design team says the public domain has been heavily influenced by the site's topography and Aboriginal cultural heritage, drawing on the escarpments, gullies and landscape characteristics that historically defined the area before urbanisation. The landscape design has been developed in partnership with First Nations consultancy Bangawarra.

The project would be delivered across four separate buildings. The William Street East and William Street West buildings, designed by fjcstudio, would contain the majority of the apartments. Melbourne-based Studio Bright has designed the Forbes Street building, while Tribe Studio Architects is responsible for the Dowling Street building.

Rebel had secured approval for the concept plans late last year.

Joel Robinson

First look: HSN, Rebel, advances Woolloomooloo precinct plans

A locally heritage-listed furniture showroom on Water Street is set to become the centrepiece of a new mixed-use residential development as local developer&nbsp;<a href="https://www.apartments.com.au/developers/keylin-group">Keylin</a> seeks approval for <a href="https://www.apartments.com.au/new-apartments/lotus-on-water-street-290-water-street-fortitude-valley-qld-4006">Lotus on Water Street</a>, a 15-storey project on the Fortitude Valley side of Spring Hill.

The proposal spans 290 Water Street and 137-141 Warry Street, combining several properties into a 2,869 sqm site that sits between Fortitude Valley, Spring Hill and the rapidly evolving Victoria Park precinct. Keylin's plans would deliver 132 apartments alongside new retail, hospitality and commercial space, while retaining and repurposing the historic Brunswick Home Furnishers Showroom that fronts Water Street.

Designed by <a href="https://www.apartments.com.au/architects/jackson-teece">Jackson Teece</a>, Lotus on Water Street comprises a 12-storey residential tower rising above a three-storey podium and communal rooftop terrace. The development includes 76 apartments classified as multiple dwellings and a further 56 units proposed as short-term accommodation, designed to be flexibly used as either accommodation or permanent residences. The apartment mix comprises six one-bedroom, 54 two-bedroom and 16 three-bedroom homes.

<img alt="First look: Keylin unveils heritage-led Lotus on Water Street tower in Fortitude Valley" data-entity-type="file" data-entity-uuid="9822bb79-6c49-49c9-95ba-319e8c8d81c3" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/fortitude%20valley%20front.png?VersionId=ioW8zbN4UVebbLetTFuv92t.HkdgfR5e" />

Residents would have access to an extensive rooftop recreation level spanning more than 1,200 sqm of communal open space. Plans include a pool, gym, sauna, infrared sauna, yoga area, library, private dining room, barbecue facilities and landscaped entertainment spaces, making the rooftop the project's largest shared amenity offering.

At street level, the proposal focuses on the adaptive reuse of the heritage buildings along Water Street, where 518 sqm of retail and commercial space is planned across shop, office and food and drink outlet uses. A permeable residential lobby would be positioned between the retained heritage buildings, creating a pedestrian connection between the historic streetscape and the new tower behind.

<img alt="First look: Keylin unveils heritage-led Lotus on Water Street tower in Fortitude Valley" data-entity-type="file" data-entity-uuid="269cf3e0-7d13-48bf-a318-05a00deb5c10" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/fortitude%20valley%20podium.png?VersionId=DLXmTCLsp6GOcLpQ0h.0z7wKCw59EhN_" />

The heritage retention strategy is central to the scheme. The development application notes that the Brunswick Home Furnishers Showroom and adjoining heritage buildings will remain, with only non-significant structures on the site earmarked for removal under a previously issued Heritage Exemption Certificate. Levels one and two of the new podium are recessed behind the heritage façades to maintain their prominence within the streetscape.

Jackson Teece has drawn inspiration from the site's manufacturing history when designing the podium. The planning documents state that the façade incorporates perforated metal screening that references the woven and rattan furniture historically produced on the site. Cascading and climbing plants are integrated throughout the podium to soften the building's presentation and screen parking levels behind. The landscape strategy also informs the project's name, Lotus on Water Street, drawing on the historic Spring Hollow waterholes that once ran through Spring Hill and the blue water lilies associated with Meeanjin, Brisbane's traditional name.

The proposal also incorporates the neighbouring property at 141 Warry Street, currently occupied by a healthcare service. The existing building would remain, with nine dedicated parking spaces allocated within the new development to support its ongoing operation. In total, Lotus on Water Street proposes 117 car spaces, including 110 resident spaces and seven visitor bays, alongside 100 bicycle spaces.

<img alt="First look: Keylin unveils heritage-led Lotus on Water Street tower in Fortitude Valley" data-entity-type="file" data-entity-uuid="70cf07bc-4fd8-4e70-92dd-be8b21c4e4f0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/fortitude%20valley%20site.png?VersionId=txlxrJImM0Sm_vTzHVKh5DDUkyL_CiiA" />

The site sits within the Spring Hill East Precinct of the Spring Hill Neighbourhood Plan and is positioned around 650 metres from both Fortitude Valley Station and Exhibition Station. It is also within walking distance of the King Street precinct, Royal Brisbane and Women's Hospital, Herston Quarter and Victoria Park, which is earmarked to become a major venue precinct ahead of the Brisbane 2032 Olympic and Paralympic Games.

Planning documents describe the location as a key gateway between Spring Hill and Fortitude Valley and highlight the area's increasing importance as new transport infrastructure and Olympic-related investment reshape Brisbane's inner north. The development team argues the project will contribute additional housing supply while activating a section of Water Street that has historically received less investment than other parts of the Valley.

Keylin has become increasingly active across Brisbane and southeast Queensland, assembling sites in strategic inner-city locations. They are currently selling and delivering <a href="https://www.apartments.com.au/new-apartments/oria-spring-hill-447-gregory-terrace-spring-hill-qld-4000">Oria Spring Hill</a>, just over 140 apartments due for completion in 2027.

Keylin plans heritage-led Lotus on Water Street apartment development in Fortitude Valley

Roseville is poised for a wave of new apartment development following the NSW Government's rezoning of land around Roseville Station under its Transport Oriented Development program.

The new planning controls have unlocked significant development potential within walking distance of the station, with a number of sites expected to be amalgamated and redeveloped in the coming years as developers seek to take advantage of the increased density allowances.

One of the more restrained developments in the precinct, and set among the first to be delivered having commenced well before the recent changes, is Hyecorp's Juliet. The boutique apartment project is already well under construction and remains on track to welcome residents by the end of the year, offering a markedly different proposition to many of the larger-scale developments now likely to emerge across the suburb.

[smartcode_project:default project_id=7395 project_image_fid=278194]

<a href="https://www.apartments.com.au/new-apartments/juliet-roseville-64-pacific-highway-roseville-nsw-2069">Juliet</a> will comprise just&nbsp;34 one-, two-, and three-bedroom apartments opposite Roseville Station. For Hyecorp, which has delivered projects across Sydney's Lower North Shore for more than three decades, Roseville presented a rare opportunity to address a growing gap in the market.

"<a href="https://www.apartments.com.au/developments/roseville-nsw-2069">Roseville</a> has long been one of the North Shore's most tightly held and desirable suburbs, offering a unique combination of village charm, established greenery, excellent transport connections, and proximity to some of Sydney's best schools and lifestyle amenities," Hyecorp said.

"We recognised a growing demand from local homeowners seeking to downsize without leaving the community they have built their lives around. The location presented a rare opportunity to create homes that cater specifically to that buyer profile."

[smartcode_project:default project_id=7395 project_image_fid=278196]

The six-level development has been designed by <a href="https://www.apartments.com.au/architects/pbd-architects">PBD Architects</a> as a collection of residences that feel more like homes than apartments. The brief centred generous floorplans, abundant natural light, quality finishes, and strong connections to outdoor space.

PBD Architects drew inspiration from Roseville's established garden suburb character, creating a building that sits comfortably within its surroundings rather than dominating them. The architecture incorporates natural materials, soft forms, layered landscaping, expansive balconies, and generous setbacks to strengthen the connection between residents and the suburb's leafy environment.

"The focus was on designing spacious, house-like residences for discerning owner-occupiers and downsizers who wanted to remain on the North Shore without compromising on comfort, privacy, or design," PBD said.&nbsp;

"Every apartment was to feel considered, timeless, and highly functional."

[smartcode_project:default project_id=7395 project_image_fid=278195]

Inside, residences feature engineered timber flooring, stone kitchen benchtops and splashbacks, integrated Fisher &amp; Paykel appliances, ducted air conditioning, and large outdoor entertaining areas designed to take advantage of district and treetop views.

Residents will also have access to a rooftop barbecue and lounge area, alongside practical amenities including parcel lockers, EV charging capability, bicycle storage, a dog wash bay, and a basement car wash facility.

The majority of purchasers so far have been local owner-occupiers from Roseville, Lindfield, Chatswood, Killara, and the broader Upper North Shore, many of whom are transitioning from larger family homes.

"Buyers are looking for spacious, house-like apartments that allow them to downsize without feeling like they are sacrificing comfort or functionality," Hyecorp noted.

"They value large kitchens, generous living areas, ample storage, quality finishes, secure parking, lift access, and low-maintenance living."

[smartcode_project:default project_id=7395 project_image_fid=278204]

Juliet sits directly opposite Roseville Train Station and within walking distance of Roseville Village, while Chatswood's retail and dining precinct is only minutes away. The development is also surrounded by some of Sydney's most established schools, including Roseville College, Ravenswood, Pymble Ladies' College, and Knox Grammar, as well as nearby parklands and golf courses.

Juliet is currently more than 75 per cent sold ahead of its anticipated completion in late 2026.

[smartcode_project_cta:default project_id=7395]

Juliet to sit quietly amid Roseville apartment boom

Sherpa Property Group has unveiled the third instalment of its Flourish series, securing full approval for the two-tower, $500 million Flourish Soleira development in Palm Beach.

<a href="https://www.apartments.com.au/new-apartments/flourish-soleira-1150-1154-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a> will rise from a prominent site in the commercial heart of Palm Beach, the long-time home of Cash Converters and a range of local retailers.

The project will introduce a new retail and dining precinct at ground level, beneath 286 apartments.

[smartcode_project:default project_id=150017 project_image_fid=370959]

“We’re very committed to not only providing affordable residential offerings that are much needed in Palm Beach, but also delivering a vibrant new commercial heart that complements the extraordinary growth of the southern Gold Coast,” Sherpa Property Group founder Christie Leet said.

The development will sit under Sherpa's Flourish brand, which is aimed at providing a pathway into the beachside suburb for locals, first-home buyers and downsizers. In a move designed to assist first-home buyers entering the market, Sherpa has reserved all one and two-bedroom, one-bathroom apartments exclusively for eligible first-home buyers.

[smartcode_project:default project_id=150017 project_image_fid=370964]

“Our vision through Flourish is to create a vibrant retail and lifestyle focal point within the Palm Beach centre zone, delivering thriving communities underpinned by lifestyle-rich locations,” Leet said.

“So far, Flourish has been an incredible success, and we hope to carry this momentum as we progress the next two Flourish projects in Palm Beach.”

[smartcode_project:default project_id=150017 project_image_fid=371430]

Located across 1150-1164 Gold Coast Highway and 3 Sixth Avenue, the development will comprise two towers. The northern tower will deliver 154 apartments, while the southern tower will add a further 132 residences, helping address ongoing demand for new apartments in the tightly held coastal suburb.

Flourish Soleira will also feature the most extensive rooftop amenity offering ever delivered in Palm Beach.

The two towers will be connected by a skybridge, with residents gaining access to a rooftop recreation deck featuring a full-width swimming pool, hot and cold plunge pools, wellness spaces, a gymnasium, private dining facilities, massage treatment rooms, barbecue areas, a basketball court, golf simulator, indoor and outdoor dining spaces, sun lounges and extensive landscaping.

LPS Group is expected to start construction later this year.

Sherpa is already well advanced on construction of its debut Flourish project, Flourish Amargo, located just around the corner from Soleira. Meanwhile, Flourish Oasis, positioned opposite Amargo, recently commenced construction and has nearly sold out its collection of 47 apartments.

[smartcode_project_cta:default project_id=150017]

Sherpa unveils $500m mixed-use Palm Beach precinct, Flourish Soleira

Are mortgage holders set to get a reprieve from the RBA in 2026?

Big Four bank NAB believes so. They are now expecting the next move from the RBA to be a cut, rather than a hike, which they had pencilled in for August. They are unsure of the timing of the cut however, they note in their latest&nbsp;NAB Economics RBA Watch.

NAB Chief Economist, Dr Sally Auld, said recent data suggests the economy has lost momentum and the outlook for rates has shifted, noting that the broader economic backdrop has changed since earlier in the year.

“The next move in the cash rate is likely to be down, but the timing is uncertain," Dr Auld said.

"In February, growth was above trend, the economy was operating above capacity and there was uncertainty over the restrictiveness of rates. None of these conditions exist today,” she outlined.

Dr Auld said recent data pointed to softer momentum across the economy while acknowledging that at the same time, uncertainty remains a key feature of the outlook.

“Both Q1 GDP data and the NAB business survey suggest momentum in the economy has slowed, meaning that growth has likely peaked for the cycle. That said, we are cognisant there is still considerable uncertainty around the outlook, both with respect to activity and inflation.”

Dr Auld said inflation risks and labour market outcomes would be important to watch.

“On the prices side, we are still forecasting above target core inflation through to mid-2027. Margins will compress and weaker labour market outcomes are a risk.”

She said tighter financial conditions are expected to weigh on housing and activity.

“Tighter financial conditions will be reflected in a slowing in house price growth and housing credit growth. In summary, we have greater conviction that the next move in rates is down, but less conviction on the timing.”

Mortgage relief? NAB forecasts RBA rate cut, not hike, after softer economic conditions

Rental Yields

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Perth has recorded the largest monthly rise in rental vacancies with a 0.2 percentage point climb over July, according to SQM Research. 
Year to year Perth vacancies have climbed 1.4 percent, to 10,738.
The national residential vacancies level went up during July to record a vacancy rate of 2.5 percent or 79,300 vacancies. 
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Louis Christopher, managing director of SQM Research said asking rents in Canberra continue to rise; up 11.0 percent for houses and 9.8 percent for units.
"Notably, Hobart continues to record the most affordable rental accommodation with rents for houses at just $340 a week and units averaging $280 a week," he said. "Overall, vacancy rates remain steady for the major capital cities. Perth continues to be the ongoing exception with further increases in vacancies this month as the mining downturn continues to hit the economy hard. "I believe the national vacancy rate will continue to creep upwards.
"Melbourne may start to record higher vacancies next year under the weight of completed apartment developments; but for now Melbourne remains a landlord's market.
"Sydney is unlikely to record such a surge in vacancies as we believe the city's population expansion is going to absorb much of the new stock.”
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Perth landlords face a 5.2 percent rental vacancy rate: SQM 

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Combined capital city rental rates fell by 0.6 percent over the 12 months to June with rents rising in some rural areas according to CoreLogic.
CoreLogic reported falls over the year in Brisbane, Adelaide, Perth and Darwin with rental growth slowing from already low levels in most other capital cities.
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Senior research analyst Cameron Kusher said while rental rates are falling in many capital city regions, today’s data suggests that in mid-sized and coastal regional markets, rental demand is picking-up, with these regions seeing a rise in migration over recent years.
“Perhaps we are seeing evidence of try-before- you-buy in these regions where people are moving into the regional areas and renting before fully committing to a purchase," he said.
“The fact that units rents are increasing in many coastal locations is potentially reflective of the recovering markets spurred on by a lower Australian dollar and an improvement across the tourism sector.” 
"For units, only three of the 25 council areas listed are located within a capital city (Hobart, Pittwater and Wyndham). 
"NSW dominates the list with 13 regions with the number of council areas across the remaining states recorded at: six in Vic, two in Qld, one in SA, and one in WA and two in TAS. Most of the top 25 regions listed are coastal lifestyle markets."
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Rental growth stronger in regional Australia than capital city markets: CoreLogic

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Combined capital city home values have increased substantially since the financial crisis in 2008 however, this is largely being driven by Sydney and Melbourne with value growth muted in most other capital cities.
As the financial crisis hit in 2007/08, Australia’s combined capital city housing markets experienced a -6.1% decline in home values between March and December 2008.  Due to aggressive interest rate cuts by the Reserve Bank (RBA) and the introduction of the boost to the First Home Owners Grant, further home value declines were averted.  In fact, home values began to rise across two cycles; from December 2008 and in June 2016, 7.5 years later, combined capital city home values are now 54.9 percent higher.
The first chart highlights the increases in home values over the past 7.5 years.  What is immediately noticeable is that the increases have been all about Sydney (87.9 percent) and Melbourne (71.8 percent).  In fact, most other capital cities have recorded growth which is around or below the rate of inflation.
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<h3>Total change in capital city dwelling values December 2008 to June 2016</h3>
<a href="/images/2016/07/19/2016-07-15--image1.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/07/19/2016-07-15--image1.jpg" alt="">
From December 2008, combined capital city home values increased until October 2010, rising by 21.8 percent. 
Official interest rates were first increased coming out of the financial crisis in October 2009, rising by 175 basis points to November 2010.  The boost to the First Home Buyers Grant was partially removed in September 2009 and completely removed after December 31 2010.  These combined factors saw the rate of value growth slow, followed by a decline in dwelling values. 
The second chart highlights that from December 2008 to October 2010 dwelling values rose in all cities with Sydney, Melbourne and Darwin the standouts.  Despite very low interest rates, Brisbane, Adelaide, Perth and Hobart recorded little value growth over this period.
<h3>Total change in capital city dwelling values December 2008 to October 2010</h3>
<a href="/images/2016/07/19/2016-07-15--image2.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/07/19/2016-07-15--image2.jpg" alt="">
Between October 2010 and May 2012 as stimulus was removed from the housing market, combined capital city home values fell by -7.4 percent.  Darwin, Melbourne and Brisbane recorded the largest falls over the period.  Looking back at this period it is clear that low interest rates and first home buyer incentives stimulated the market and, as they were removed, demand was shown to be fragile. 
In October 2010, official interest rates were recorded at 4.75 percent and by May 2012 they had fallen by 100 basis points to 3.75 percent.
<h3>Total change in capital city dwelling values October 2010  to May 2012</h3>
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<img src="/images/2016/07/19/2016-07-15--image3.jpg" alt="">
From May 2012 to June 2016, combined capital city home values have increased by 37.3 percent while official interest rates fell by 200 basis points to 1.75 percent.  Although home values have increased over the period, Sydney and Melbourne have recorded a substantially higher rate of value growth than all other capital cities. 
<h3>Total change in capital city dwelling values May 2012 to June 2016</h3>
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<img src="/images/2016/07/19/2016-07-15--image4.jpg" alt="">
The data indicates that since the financial crisis the capital city housing market could be described as being extremely interest rate sensitive.  Digging deeper into the data shows that in reality it is only Sydney and Melbourne that have really responded to the stimulus of low interest rates.  The relative strength of the Sydney and Melbourne economies and the much greater employment growth has clearly assisted drive housing values higher in these cities.
Until the economic performance improves outside of Sydney and Melbourne it seems unlikely that sustainable growth will return in these areas despite the extremely low interest rates which are set to potentially move even lower over the coming months.  For Sydney and Melbourne although affordability is increasingly becoming stretched home owners have experienced a substantial increase in equity. 
With historically weak rental markets and record low yields it will be interesting to see if investors and upgraders in the two largest capital cities continue to show a thirst for housing in these cities given the growth phase has now been running for more than four years.
Cameron Kusher is research analyst for CoreLogic RP Data. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>.
 
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Home value growth remains all about Sydney and Melbourne: Cameron Kusher

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The fall in prices in Australia's housing market continued to impact yields too, with Sydney overtaking Melbourne for the lowest yield profile across the capital city unit markets, according to the CoreLogic RP Data November Home Value Index. 
The 1.5% decline in capital city dwelling prices in November, coupled with a 0.% rise in weekly rents, has overall improved the average gross yield over the month. This follows a trend towards lower rental yields which started in May 2013.
Gross yields remain close to record lows for houses in Melbourne at an average of 3%, while Sydney recorded an average gross rental yield of 4.1% for apartments.
Yields have shown a consistent downwards trend towards lower returns for new investors.
The average gross rental yield for capital city houses was down to a record low of 3.4% in October, while for a capital city unit it was 4.3%for the same month. 
 
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<img src="/images/2015/12/1/Screen%20Shot%202015-12-01%20at%201.08.51%20PM.png" alt="">
Housing market conditions for Sydney and Melbourne started slowing earlier in the year and the trend continued throughout November, said CoreLogic RP Data head of research Tim Lawless. While Melbourne saw the sharpest drop, Sydney values were down 1.4 per cent. Hobart dwelling values dropped by 2.4 per cent, Darwin values were down 1.3 percent and they moved 0.5 percent lower in Canberra.
Overall, the combined capitals housing index has seen dwelling values drop by 1.5 percent over November, taking the rolling quarterly rate of change to -0.5 per cent
Values rose in the remaining three capital cities, with Adelaide showing the highest month-on-month growth rate (0.7 per cent), followed by Brisbane (0.6 per cent) and Perth (0.3 per cent).
“The latest results are now placing downwards pressure on the annual change in dwelling values. The annual rate of growth across the combined capitals index peaked at 11.5 per cent back in April 2014, and has since reduced to 8.7 per cent,” Lawless said.
Sydney maintained the highest annual growth rate at 12.8 per cent, which is down from a peak rate of annual growth of 18.4 per cent in July earlier this year, while Melbourne’s annual growth rate has reduced from a recent peak of 14.2 per cent to 11.8 per cent over the 12 months ending November this year.
The only capital cities where values have declined over the past year are Darwin (-4.2 per cent) and Perth (-4.1 per cent), where weaker economic conditions and a slowdown in population growth contributed to an early peak in housing market conditions in December last year.
The equivalent peak in the cycle for Darwin was May 2014. Since that time, Perth values are down a cumulative 5.9 per cent and Darwin values have fallen by a larger 6.8 per cent.
“The fact that mortgage rates have risen independently of the cash rate has, in all likelihood, become a contributor to the slowdown in housing market conditions, as well as tighter lending practices evidenced by a recent reduction in lender risk appetite for investment loans and high loan to valuation ratio mortgages," Lawless said.
"Tighter mortgage servicing criteria across the board and affordability constraints in the Sydney and Melbourne markets are also having an impact on market demand.” 
As a consequence of the tighter lending environment for investors, as well as gross rental yields being at near record lows, participation in the housing market from investors has reduced from 54.1 per cent of all new mortgages in May 2015 to 45.4 per cent at the end of September, which is the lowest level since July 2013.
Data released by APRA at the end of last month showed the pace of investment related housing credit growth fell below the APRA 10 per cent speed limit for the first time since September last year, with the monthly change in investment credit growth the lowest since October 2011.
According to November’s results, the slowdown comes after auction clearance rates have moderated back to the low 60 per cent range since the last week of October, whilst average selling time and vendor discounting rates also continue to rise from their record lows.
“Slower housing market conditions will likely be a topic of conversation when the Reserve Bank board meets today to deliberate on the cash rate setting. A less buoyant housing market is likely to provide the Reserve Bank with a greater degree of flexibility in adjusting interest rates without as much risk of overstimulating the housing market,” Lawless said.
“While the Reserve Bank is likely to welcome a slowdown in the rate of home value appreciation, the overriding objective would be to avoid a significant downturn in the housing market, which would act as a weight on economic growth and potentially impact financial system stability.”
“With the housing market moving through the peak of the cycle at a time when there is a large number of new dwellings commencing construction, there is likely to be a heightened level of settlement risk for off the plan purchases.”
“Those purchasers who have recently purchased off-the-plan may face challenges at the time of settlement if the valuation of the property is lower than the contracted price, or if mortgage finance is less freely available, or on more expensive terms. This would imply that some buyers may have a higher loan to valuation ratio than anticipated, which could require additional funds to bring the LVR down to a level the lender is comfortable with.”
“As a result of slowing housing market conditions, an additional risk for policymakers is a where a large number of dwellings approved for construction are postponed or withdrawn as developers face fewer pre-sales or lose confidence in their ability to deliver a profitable project to market,” he said.
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j.ballantyne1990-6AQqhLzZaK

Sydney rental yields for units lowest among capitals: CoreLogic RP data

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Sydney's northern beaches suburb of Collaroy had the greatest increase in house rents across the year, up 31.6% according to CoreLogic RP Data's September Monthly Rental Report.
The report found over the year Sydney rents increased 1.9%, with Collaroy a median rental price now of $1,250. Rose Bay has a median rental price of $1,750 - a 25% year-on-year change.
 
<a href="/images/2015/10/19/Screen%20Shot%202015-10-19%20at%203.36.55%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/10/19/Screen%20Shot%202015-10-19%20at%203.36.55%20PM.png" alt="" width="655" height="142">
 
The median price for a home in <a href="/news">Collaroy is $1,800,000</a>, according to CoreLogic RP Data.
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mick.cee-iDmgDDAmu8

Sydney's Collaroy leads top five NSW suburbs for house rent increase: CoreLogic RP Data

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Gross rental yields for combined capital cities are at record low with September figures for houses at 3.4% and units at 4.3%, according to CoreLogic RP Data.
CoreLogic RP Data's September Rental Index Result noted last year combined capital city gross rental yields were 3.7% for houses and 4.5% for units and said rental returns may fall lower over the next few months.
"With capital growth anticipated to continue to outpace rental growth we expect that rental returns are likely to push even lower over the coming months," it said.
"From an investment perspective it means that capital growth is going to remain a much more important for a return from an investment property.
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"Rental yields are lowest for houses in Melbourne (2.9%) and highest in Darwin (5.4%). In fact, Melbourne, Sydney (3.1%) and Canberra (4.1%) house yields are now at a record low. Unit yields are lowest in Sydney and Melbourne at 4.1% and highest in Darwin at 5.8%. Sydney unit yields are currently at a record low."
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<a href="/images/2015/10/08/Screen%20Shot%202015-10-08%20at%202.06.45%20PM.png" target="_blank">Click to enlarge</a>
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Gross rental yields for combined capital cities are at record low: CoreLogic RP Data

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The top three suburbs in Western Australia with the highest gross rental yields are Kambalda west with 10.2% followed by Nickol (9.67%) and Port Hedland at 9.51%.
According to CoreLogic RP Data the lowest gross rental yields are in Dalkeith (2.33%) followed by Cottesloe (2.52%) and Coolbinia (2.55%).
Highest
<table border="1">
<colgroup>
<col>
<col>
<col>
<col>
<col>
</colgroup>
<tbody>
<tr>
<td class="s0">Suburb</td>
<td class="s0">Postcode</td>
<td class="s0">Median Price ($'000)</td>
<td class="s0">Gross Rental Yield (%)</td>
<td class="s0">Weekly Median Advertised Rent</td>
</tr>
<tr>
<td class="s0">Kambalda west</td>
<td class="s1">6442</td>
<td class="s1">$133</td>
<td class="s1">10.2</td>
<td class="s1">$260</td>
</tr>
<tr>
<td class="s0">Nickol</td>
<td class="s1">6714</td>
<td class="s1">$430</td>
<td class="s1">9.67</td>
<td class="s1">$800</td>
</tr>
<tr>
<td class="s0">Port Hedland</td>
<td class="s1">6721</td>
<td class="s1">$875</td>
<td class="s1">9.51</td>
<td class="s1">$1,600</td>
</tr>
<tr>
<td class="s0">Pegs Creek</td>
<td class="s1">6714</td>
<td class="s1">$430</td>
<td class="s1">8.47</td>
<td class="s1">$700</td>
</tr>
<tr>
<td class="s0">Millars Well</td>
<td class="s1">6714</td>
<td class="s1">$405</td>
<td class="s1">8.35</td>
<td class="s1">$650</td>
</tr>
<tr>
<td class="s0">Kambalda East</td>
<td class="s1">6442</td>
<td class="s1">$125</td>
<td class="s1">8.32</td>
<td class="s1">$200</td>
</tr>
<tr>
<td class="s0">South Boulder</td>
<td class="s1">6432</td>
<td class="s1">$185</td>
<td class="s1">8.29</td>
<td class="s1">$295</td>
</tr>
<tr>
<td class="s0">Bulgarra</td>
<td class="s1">6714</td>
<td class="s1">$440</td>
<td class="s1">7.98</td>
<td class="s1">$675</td>
</tr>
<tr>
<td class="s0">Baynton</td>
<td class="s1">6714</td>
<td class="s1">$593</td>
<td class="s1">7.89</td>
<td class="s1">$900</td>
</tr>
<tr>
<td class="s0">Katanning</td>
<td class="s1">6317</td>
<td class="s1">$163</td>
<td class="s1">7.68</td>
<td class="s1">$240</td>
</tr>
<tr>
<td class="s0">Boddington</td>
<td class="s1">6390</td>
<td class="s1">$260</td>
<td class="s1">7.6</td>
<td class="s1">$380</td>
</tr>
<tr>
<td class="s0">Coolgardie</td>
<td class="s1">6429</td>
<td class="s1">$174</td>
<td class="s1">7.47</td>
<td class="s1">$250</td>
</tr>
</tbody>
</table>
Lowest
<table border="1">
<colgroup>
<col>
<col>
<col>
<col>
<col>
</colgroup>
<tbody>
<tr>
<td class="s0">Suburb</td>
<td class="s0">Postcode</td>
<td class="s0">Median Price ($'000)</td>
<td class="s0">Gross Rental Yield (%)</td>
<td class="s0">Weekly Median Advertised Rent</td>
</tr>
<tr>
<td class="s0">Dalkeith</td>
<td class="s1">6009</td>
<td class="s1">$2,450</td>
<td class="s1">2.33</td>
<td class="s1">$1,100</td>
</tr>
<tr>
<td class="s0">Cottesloe</td>
<td class="s1">6011</td>
<td class="s1">$1,850</td>
<td class="s1">2.52</td>
<td class="s1">$895</td>
</tr>
<tr>
<td class="s0">Coolbinia</td>
<td class="s1">6050</td>
<td class="s1">$1,080</td>
<td class="s1">2.55</td>
<td class="s1">$530</td>
</tr>
<tr>
<td class="s0">Menora</td>
<td class="s1">6050</td>
<td class="s1">$1,240</td>
<td class="s1">2.58</td>
<td class="s1">$615</td>
</tr>
<tr>
<td class="s0">Middleton Beach</td>
<td class="s1">6330</td>
<td class="s1">$663</td>
<td class="s1">2.59</td>
<td class="s1">$330</td>
</tr>
<tr>
<td class="s0">Nedlands</td>
<td class="s1">6009</td>
<td class="s1">$1,575</td>
<td class="s1">2.64</td>
<td class="s1">$800</td>
</tr>
<tr>
<td class="s0">Swanbourne</td>
<td class="s1">6010</td>
<td class="s1">$1,519</td>
<td class="s1">2.65</td>
<td class="s1">$775</td>
</tr>
<tr>
<td class="s0">Floreat</td>
<td class="s1">6014</td>
<td class="s1">$1,350</td>
<td class="s1">2.7</td>
<td class="s1">$700</td>
</tr>
<tr>
<td class="s0">South Perth</td>
<td class="s1">6151</td>
<td class="s1">$1,150</td>
<td class="s1">2.71</td>
<td class="s1">$600</td>
</tr>
<tr>
<td class="s0">Rossmoyne</td>
<td class="s1">6148</td>
<td class="s1">$1,100</td>
<td class="s1">2.79</td>
<td class="s1">$590</td>
</tr>
<tr>
<td class="s0">Peppermint Grove</td>
<td class="s1">6011</td>
<td class="s1">$3,700</td>
<td class="s1">2.81</td>
<td class="s1">$2,000</td>
</tr>
<tr>
<td class="s0">Applecross</td>
<td class="s1">6153</td>
<td class="s1">$1,408</td>
<td class="s1">2.87</td>
<td class="s1">$778</td>
</tr>
</tbody>
</table>
 
 
 
 
 
 
 
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