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

Joel Robinson

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

Developer <a href="https://www.apartments.com.au/developers/auyin-property-development">Auyin</a> is the latest to turn to the Victorian Government's Development Facilitation Program in an effort to secure approval for its long-planned, mixed-use project in Elsternwick.

In 2018, Auyin lodged plans with Glen Eira City Council for a 14-storey building, however Council approved a reduced eight-storey scheme. A subsequent VCAT appeal in 2019 upheld the eight-storey height limit.

The project was later amended to nine storeys, but Auyin is now seeking to revive something closer to its original vision. The developer argues that the planning context has evolved significantly over the past decade, particularly within the Elsternwick Activity Centre, where higher-density development has increasingly been encouraged along Glen Huntly Road.

The proposal would transform the 1,239 sqm site at <a href="https://www.apartments.com.au/new-apartments/7-12-horne-street-elsternwick-vic-3185">7-15 Horne Street</a>, opposite Elsternwick Railway Station, into a 13-storey residential and retail development designed by CBG Architects, with 40 apartments

The site currently comprises three commercial properties.

<img alt="First look: 13-storey mixed-use tower planned for Elsternwick activity centre" data-entity-type="file" data-entity-uuid="5f465dd4-509b-4082-a669-0253b313914b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/elsternwick%20podium.png?VersionId=72frWi0SmQ5AVJ3ARRhX5ILUYObhTm7x" />

The proposed apartment mix comprises 25 two-bedroom and 15 three-bedroom residences above 200 sqm of retail space at ground level. Residents would have access to a 90 sqm wellness facility, a 351 sqm communal indoor and outdoor terrace on the third level, and extensive landscaped areas throughout the development. A publicly accessible 135 sqm plaza would be created on the north-east corner of the site, providing seating, landscaping, and a new gathering space adjoining Horne Street.

The design adopts a four-storey podium that references the finer-grain character of the surrounding streetscape, with the upper tower recessed behind generous setbacks on all boundaries.

<img alt="First look: 13-storey mixed-use tower planned for Elsternwick activity centre" data-entity-type="file" data-entity-uuid="e637e763-2abc-4c34-a0aa-5c7ad36fae18" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/elsternwick%20open.png?VersionId=J1AoOpZgTyaF.KeeFSX6lMjEScX8KKRi" />

A key element of the proposal is the reconfiguration and widening of the surrounding laneways. Vehicle access would be retained from Lois Lane, with upgraded pedestrian connections linking Ross Street and Horne Street. The development would provide 58 residential car spaces, two retail car spaces, and 52 bicycle spaces across two basement levels and ground-floor facilities.

Architecturally, the building draws inspiration from the established character of Elsternwick Village. The façade combines dark charcoal brickwork, textured concrete, bronze-toned metal detailing, and extensive planting integrated into podium and tower levels. The design also incorporates a chamfered corner treatment and publicly accessible plaza intended to strengthen pedestrian activity around the station precinct.

Elsternwick's last new development completion was&nbsp;EVA Elsternwick by Pitard late last year. <a href="https://www.apartments.com.au/developers/milieu-property">Milieu</a> is working away on its nature-led neighbourhood, <a href="https://www.apartments.com.au/new-apartments/elsternwick-gardens-by-milieu-8-gordon-street-elsternwick-vic-3185">Elsternwick Gardens</a>, on Gordon Street, with its first stage expected to complete next year.

First look: Auyin seeks mixed-use apartment project in growing Elsternwick Activity Centre

<a href="https://www.apartments.com.au/new-apartments/otium-parkdale-123-125-como-parade-east-parkdale-vic-3195">Otium Parkdale</a>, the 13-residence boutique development by&nbsp;<a href="https://www.apartments.com.au/developers/huxtable-property">Huxtable Property</a>, has entered its final stages of delivery, with completion expected within the coming month and more than half of the residences sold.

The Como Parade East project is nearing the finish line at a time when opportunities to purchase new apartments in <a href="https://www.apartments.com.au/developments/parkdale-vic-3195">Parkdale</a> remain exceptionally limited. Fewer than 10 per cent of dwellings in the bayside suburb are apartments, making developments like Otium a relatively rare addition to a market traditionally dominated by detached housing.

[smartcode_project:default project_id=134974 project_image_fid=5427]

The three-level development comprises 13 residences, including ten two-bedroom apartments and three larger three-bedroom homes, all positioned above a secure basement car park.

Designed by <a href="https://www.apartments.com.au/architects/almeida-architects">Almeida Architects</a> with a strong connection to its coastal surroundings, Otium combines red brick, exposed concrete and dark metal detailing with integrated landscaping and greenery. Expansive glazing, generous balconies and terraces have been incorporated throughout the design to maximise natural light and reinforce indoor-outdoor living.

Inside, the residences feature engineered European oak flooring, natural and reconstituted stone benchtops, Bosch kitchen appliances, ducted heating and cooling, lift access and secure entry systems. The larger three-bedroom residences on the upper level have been designed with house-like proportions, while the two-bedroom apartments prioritise functionality, flexibility and low-maintenance living.

[smartcode_project:default project_id=134974 project_image_fid=5421]

The project is now in its final stages, with <a href="https://www.apartments.com.au/builders/labco">Labco</a> completing the remaining landscaping and external finishing works following the completion of the residences' interiors.

Otium's location within the heart of Parkdale continues to underpin its appeal. Residents will be just steps from local cafés, restaurants, shops and the newly elevated Parkdale Station, while the beach is less than a kilometre away.

With the project tracking ahead of schedule, buyers can currently secure a residence with a five per cent deposit and benefit from settlement terms of up to eight months. The advanced stage of construction also provides buyers with the opportunity to walk through the near-complete residences and experience the quality and finishes firsthand ahead of completion.

[smartcode_project_cta:default project_id=134974]

Otium Parkdale enters final month before completion as rare apartment opportunity nears sellout

A new boutique apartment development is entering the market in <a href="https://www.apartments.com.au/developments/chermside-qld-4032">Chermside</a>, with Brisbane-based developer <a href="https://www.apartments.com.au/developers/ausdev">Ausdev</a> bringing 33 residences to a well-connected pocket of Brisbane's north.

<a href="https://www.apartments.com.au/new-apartments/parkdrive-apartments-chermside-25-sammells-drive-chermside-qld-4032">Parkdrive Apartments</a>, at 25 Sammells Drive, will comprise a mix of one- and two-bedroom residences positioned within walking distance of Westfield Chermside, The Prince Charles Hospital, and Bradbury Park.

Established in 1989, Ausdev has a long-standing presence across both development and construction, with Parkdrive Apartments representing its latest residential project in Brisbane's northern suburbs.

[smartcode_project:default project_id=152125 project_image_fid=363778]

The development has been designed around open-plan living and natural light, with residences featuring stone benchtops, timber cabinetry, BOSCH appliances, and private balconies that extend the living areas outdoors.

Kitchens are positioned as the centrepiece of the homes, incorporating natural material palettes and integrated appliances, while bathrooms have been designed with a focus on functionality and understated finishes.

Residents will have access to a communal barbecue and entertaining area on Level 3, providing shared outdoor space within the development. Secure parking and lift access are also incorporated into the building.

The project will deliver a limited collection of 33 apartments, with one-bedroom residences priced from $749,000.

[smartcode_project:default project_id=152125 project_image_fid=363782]

Beyond the building itself, the location places residents within easy reach of several of Chermside's key amenities. Bradbury Park is around 350 metres away, while Westfield Chermside is approximately 1.3 kilometres from the site. The Prince Charles Hospital is located within 750 metres, and the Chermside Bus Interchange is around 1.5 kilometres away, providing connections across Brisbane.

Parkdrive Apartments adds to the growing residential pipeline in Chermside, a suburb that continues to evolve as a major retail, healthcare, and transport hub for Brisbane's north.

[smartcode_project_cta:default project_id=152125]

Ausdev introduces boutique Parkdrive Apartments to Chermside's growing centre

<a href="https://www.apartments.com.au/developers/skymark-group">Skymark</a>'s boutique Cronulla development Solis has secured a 10-year Latent Defects Insurance policy through Resilience Insurance, providing buyers of the 16-residence building on Ewos Parade with structural and waterproofing protection that extends a decade beyond the building's completion.

Currently under construction and due for completion in late 2027, <a href="https://www.apartments.com.au/new-apartments/solis-cronulla-8-ewos-parade-cronulla-nsw-2230">Solis</a> is one of a small number of new developments in the Sutherland Shire to carry Resilience LDI coverage, a distinction that carries increasing weight as buyer confidence in the off-the-plan sector continues to be shaped by how developers stand behind their product.

Latent Defects Insurance, which entered the Australian market in 2022 when Resilience Insurance was approved to offer the cover, protects buyers against major structural or waterproofing defects for ten years post-completion. Unlike traditional statutory warranties, it operates as a first-resort policy, if a covered defect arises, the insurer responds directly, without the buyer needing to pursue the builder or developer through a lengthy claims process.

Resilience Insurance CEO Corey Nugent has noted that the product addresses something fundamental to the new apartment market.

"The overarching feedback from prospective buyers in the new development space is that they want more confidence and assurances around the quality of the build," Nugent says.

"Resilience Insurance Latent Defects Insurance not only gives them complete peace of mind for 10 years, but it shows the developer they are buying from is standing by their product."

[smartcode_project:default project_id=150499 project_image_fid=370898]

For Solis, the Resilience LDI policy adds a meaningful layer of accountability to an already considered project. The development comprises nine two-bedroom and seven three-bedroom residences, including one dual-level three-bedroom apartment, across a five-storey building on Ewos Parade, positioned between Shelly Beach and South Cronulla.

Garden apartments connect directly to private landscaped courtyards, while upper-level homes capture beach views to the east from level four and above.&nbsp;

All 16 residences include at least one balcony or courtyard, and select apartments on the upper floors feature bar areas and secondary flexible living spaces.

Hiba Sander, Managing Director of Skymark, says Solis offers a rare balance, nestled between the quiet beauty of secluded beaches and the lively charm of South Cronulla's esplanade.

"It's a place to choose your pace and live gracefully, seaside'," Sander says.

[smartcode_project:default project_id=150499 project_image_fid=370900]

The architecture, designed by <a href="https://www.apartments.com.au/architects/ida-design-group">IDA Design Group</a>'s Michael Trinh, draws from the natural erosion patterns of <a href="https://www.apartments.com.au/developments/cronulla-nsw-2230">Cronulla</a>'s sandstone headlands, translating the organic forms of the coastline into soft curves, pavilion-style massing, and a material palette chosen for longevity in a salt-tinged environment.&nbsp;

Textured natural stone, soft renders, and timber-look battens reference the tones of the surrounding cliffs, while the building has been oriented to maximise natural light and passive ventilation, with primary living spaces facing north and east to capture morning sun and sea breezes.

"At Solis, our aim was to create architecture that feels quietly confident, grounded in natural materials like stone and timber, and elevated by light and landscape," Trinh says.&nbsp;

"The buildings are designed to sit gently within their coastal surrounds, with expansive glazing and abundant greenery creating a seamless dialogue between inside and out."

[smartcode_project:default project_id=150499 project_image_fid=370897]

Interiors by <a href="https://www.apartments.com.au/architects/hot-black">Hot Black</a> carry the same material language through to every room. Kitchens feature integrated Gaggenau appliances, sculpted stone benchtops, and Lo &amp; Co joinery, while bathrooms feature natural stone, timber, and brushed metal finishes.&nbsp;

Hot Black Founder and Design Director Sophie Safrin describes the intent as one of considered restraint: "At Solis, every detail has been thoughtfully considered to create a timeless coastal retreat, calm, refined, and effortlessly liveable. From natural finishes to seamless indoor-outdoor flow, Solis offers a quiet elegance that's deeply connected to its surroundings.

The landscape, designed by Julian Brady of <a href="https://www.apartments.com.au/landscape-architect/sitedesignstudios">Site Design Studios</a>, treats green space as an integral part of the resident experience rather than an afterthought.&nbsp;

"Gentle curves and layered native plantings mirror the ebb and flow of the ocean," Julian Brady says, "creating a serene connection between architecture and place."&nbsp;

Coco Republic has provided bespoke furniture packages tailored to the project's coastal palette.

[smartcode_project:default project_id=150499 project_image_fid=370899]

Skymark has an established track record in the Sutherland Shire, with a portfolio spanning Cronulla, Woolooware and Burraneer that includes Isla, Sylva, Bask, Shells, Sula and Mist. Securing LDI on Solis reflects a broader shift in how the developer is positioning its buildings to buyers, at a time when Resilience Insurance expects the policy to become mandatory in New South Wales by 2028.

Sales at Solis are launching soon through Ray White Projects, with an official event scheduled for 11 June. Enquire for more information.

[smartcode_project_cta:default project_id=150499]

Skymark takes out 10-year Resilience Insurance LDI at Solis Cronulla

Residential Market Trends

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One of the recent trends in real estate is more people moving from the big cities and buying in lifestyle areas within an hour or two of the city.
This movement has been enhanced by technology which allows people to work from home or by improved transport links.
I’ve described Regional Victoria as the strongest market in the nation over the past two years, based on data on sales activity and price growth in multiple locations.
And much of the uplift in markets within an hour or two of Melbourne – in the north, north-west and the south-east – has been driven by buyers out of Melbourne, both home-buyers and investors.
In the six months before the onset of the virus-induced restrictions, there had also been a notable increase in sales activity, with consequent positive impact on prices, in regional areas close to Sydney, including the Central Coast, the Southern Highlands and the Wollongong region.
I believe this trend will be further exacerbated by the current situation, which is forcing people to work from home.
Some will make it a permanent arrangement – and increasingly we are seeing media commentary to that effect.
An article last week in the Herald Sun in Melbourne said:
Many Melburnians will leave the city behind for regional Victoria during the coronavirus crisis, property experts say.
Agencies are reporting a “significant increase” in inquiries about regional properties from city dwellers “seeing the benefits” of working from home due to the COVID-19 lockdown, and keener than ever to escape the “madness” of Melbourne life.
Others are viewing the pandemic-impacted market as offering opportunity to get their feet on the property ladder in affordable areas.
A report from JLL says the COVID-19 quarantine policies have sent employees of all levels – from chief executives to junior staff – home with laptops to their kitchen tables.
“With this mass experiment under way, there is a belief among workplace experts that such set-ups could become more prevalent at companies large and small,” it says.
“Well beyond the peak of the crisis, corporate culture and, more than likely, the digital skills of global workforces, will have changed in significant ways. Location and working hours could become more flexible, leading to better productivity and improved work life balance for individuals.”
Gillian Rowbotham, human experience director – Australasia at JLL, says: “Given how suddenly everything changed, that tech has stood up pretty well, and people are mostly enjoying the flexibility to manage their day according to what needs to be done, I think we are inevitably entering a new dawn in the workplace experience.”
Interior architect Iva Durakovic suggests the success of working from home will mark the end of the office as we current know it, with remote working becoming the new norm.
The Associate Lecturer at UNSW Built Environment believes that remote working arrangements will continue long after the coronavirus pandemic has passed and will also change the nature of office spaces for the better.
"We already saw this idea of a distributed workforce getting stronger - and this will only accelerate it,” she says.
She says that widespread working from home is shaking up the role of the traditional workplace and highlighting what is truly valuable.
"It will break down what we need to come to a traditional workplace for, like face-to-face contact, and the way the future work environment looks. And it will be very different."
All of this has consequences for real estate. It provides another good reason for property investors to consider regional real estate, which offers greater affordability and higher rental yields than the big cities – and, if you choose your location well, good potential for capital growth.
We’ve seen excellent price growth in the past year or two, not only in Regional Victoria, but also in regional locations in NSW, Tasmania, South Australia and increasingly in Queensland.
TERRY RYDER is the founder of hotspotting.com.au
<a href="https://mailto:ryder@hotspotting.com.au">ryder@hotspotting.com.au</a>
twitter.com/hotspotting
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terryryder-YECXbqmri2

Regionalisation: The positive real estate trends exacerbated by COVID-19: HotSpotting's Terry Ryder

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EXPERT OBSERVER 
<div id="post-body-2776624239748747914" class="post-body entry-content">
<div>Residential building work done fell another 2½ per cent back in the first quarter of the year, to be 3.2 per cent lower than a year earlier. </div>
<div> </div>
<div>Unsurprisingly this largely continued to be driven by apartments and medium-density dwelling activity in Sydney and Brisbane. </div>
<div> </div>
<div>There'll plenty more where this came from in Q2 as well. </div>
 <div class="separator"><a href="https://4.bp.blogspot.com/-P9fueGlywsY/XOSqw1SGT1I/AAAAAAAAwHQ/oS8gzhTWMf0xNkQe5PiVpvTYLuSYPc7vwCLcBGAs/s1600/A1.jpg" target="_blank"><img src="https://4.bp.blogspot.com/-P9fueGlywsY/XOSqw1SGT1I/AAAAAAAAwHQ/oS8gzhTWMf0xNkQe5PiVpvTYLuSYPc7vwCLcBGAs/s640/A1.jpg" width="640" height="374" data-original-height="814" data-original-width="1387"></a></div>
 <div>More disappointingly engineering construction is also now winding down sharply again, to be some 12.4 per cent lower than a year earlier. </div>
<div> </div>
<div>New South Wales and Queensland held up relatively well on public and infrastructure works.</div>
<div> </div>
<div>But this was a poor result for Western Australia with the lowest level of activity since 2005. </div>
 <div class="separator"><a href="https://4.bp.blogspot.com/-7f-GxgMKemk/XOSqwrR3CnI/AAAAAAAAwHM/3FcMjU_TxqU6nY5J4JioFwIagFIGytCgQCLcBGAs/s1600/A2.jpg" target="_blank"><img src="https://4.bp.blogspot.com/-7f-GxgMKemk/XOSqwrR3CnI/AAAAAAAAwHM/3FcMjU_TxqU6nY5J4JioFwIagFIGytCgQCLcBGAs/s640/A2.jpg" width="640" height="374" data-original-height="804" data-original-width="1369"></a></div>
 <div>In the post-Ichthys Northern Territory engineering activity is imploding towards zero.</div>
<div> </div>
<div>The wrap</div>
<div> </div>
<div>An ugly result, as median market expectations were for total construction activity to be flat, but year-on-year the contraction has now blown out to 6 per cent and falling fast. </div>
<div> </div>
<div>Market analysts and the most highly respected RBA-watchers are weighing up the potential for four interest rate cuts, in addition to fiscal stimulus or unconventional policies. </div>
<div> </div>
<div class="separator"><a href="https://4.bp.blogspot.com/-MRH8cCtxeAo/XOSsPDkwFXI/AAAAAAAAwHc/aSxB8JQy6v8ZDcLMoCZonL2IqDap63WzwCLcBGAs/s1600/JG.jpg" target="_blank"><img src="https://4.bp.blogspot.com/-MRH8cCtxeAo/XOSsPDkwFXI/AAAAAAAAwHc/aSxB8JQy6v8ZDcLMoCZonL2IqDap63WzwCLcBGAs/s640/JG.jpg" width="640" height="134" data-original-height="154" data-original-width="729"></a></div>
<div> </div>
<div>The skilled vacancies figures for April showed construction jobs and trades down by between 10 and 20 per cent from a year earlier, pushing the monthly result lower once again. </div>
<div> </div>
<div>The trend for skilled vacancies nationwide is now also 6 per cent lower than a year earlier, albeit coming back down from a very high peak in New South Wales and Victoria. </div>
PETE WARGENT is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>. 
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pwargent-M4siyDbqQY

Construction is winding down sharply: Pete Wargent

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EXPERT OBSERVER
Home owners are holding onto their property for much longer than they were 10 to 15 years ago.
Based on the findings from the CoreLogic May 2019 sales data (the most up to date data), the average hold period has consistently increased since 2005 across both house and units nationally.
Nationally, the average length of home ownership currently sits at 11.3 years for houses and 9.6 years for units, this is an increase of 3.8 years for houses and 2.9 years for units over the past 10 years. (Note: The average hold period figure is based on sales from the past year, using the latest sold date and the previous sold date to establish how many years a property has been held for between each transaction.)
Across the individual capital cities, the average hold period of both houses and units rose over the last 10 years, 5 years and current year, with houses being held longer relative to units across all capital cities.
<img src="https://www.urban.com.au/images/2019/9/6/Home%20Ownership%201.JPG" alt="">
Melbourne houses recorded the longest period of ownership over the last year at an average of 12.5 years
Perth units recorded the longest average hold period of 10.8 years.
Darwin houses are typically being held for 9.2 years
Canberra units are held on average for 8.7 years; the shortest average hold period across the capital cities.
Compared to ten years ago, Sydney recorded the longest average hold periods for both houses and units at 9 and 7.3 years respectively, since then Melbourne houses have consistently seen the longest hold period, while results have been varied across the unit market.
<img src="https://www.urban.com.au/images/2019/9/6/Home%20Ownership%202.JPG" alt="">
Regional Victoria and Queensland represented the areas with the longest average hold periods across regional Australia, with houses across both regions currently being held on average 11.1 years, while units in regional WA are being held the longest at 10.2 years.
The Northern Territory rest of state region currently has the shortest average hold period at 8.9 years for houses and 8 years for units.
The council areas with the longest average hold period for houses was dominated by regions within Melbourne, Sydney and regional Queensland. Houses in Monash Victoria came in with the longest average hold period at 17.1 years.
While for units, Perth makes up eight of the 20 council regions with the longest hold periods. Armadale (WA) and Swan Hill (Vic) both recorded an equal average hold period of 13.4 years for units.
The East Pilbara council region tops both the house and unit list for the shortest average hold period, with houses currently being held for 7.7 years, while units across the region are being held by half the duration at 3.8 years.
The remaining regions on the ‘houses held’ list are comprised by mostly regional parts of the country as home owners are evidently more likely to sell across these regions compared to their capital city counterpart. 
<img src="https://www.urban.com.au/images/2019/9/6/Home%20Ownership%203.JPG" alt="">
Interestingly, the shortest average hold period list for units is dominated by Melbourne with 6 of the 20 council regions making up the unit list. The data suggest that home owners are much more reluctant to sell their property than they were a decade ago which is also highlighted by the ongoing decline in sales transactions.
Other factors at play include: the rising cost of selling and purchasing property, combined with affordability constraints across some Australia’s more expensive capital cities contribute to owners holding onto their properties longer.
It’s expected that this trend will continue over the coming years given such concerns aren’t likely to see much improvement in the near future.
<img src="https://www.urban.com.au/images/2019/9/6/Home%20Ownership%204.JPG" alt="">
CAMERON KUSHER is the head of research for the Australian branch of CoreLogic.
Kusher regularly posts on the <a href="https://www.corelogic.com.au/news" target="_blank">CoreLogic website</a>.
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Home owners holding onto their homes longer: CoreLogic's Cameron Kusher

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Lower investor demand is being reflected in a shrinking apartment pipeline, according to a new report from JLL.
According to JLL’s latest 1Q 2019 Apartment Market Reports, the number of apartments under construction in Australia’s six major capital cities has fallen by around 10% over the past year.
The number of apartments being marketed has fallen by a massive 48% over the same period.
Melbourne’s construction numbers held strong with 18,540 apartments under construction, up 15% from a year ago.
However, the number of apartments being marketed in Melbourne fell by 51% over the past year (1Q 2018 – 1Q 2019).
Sydney has seen a 24% fall in construction over the past year and a massive 77% reduction in apartments marketed, while Brisbane experienced a 36% reduction in construction and 59% reduction in apartments marketed.
<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/2019/5/31/New%20Project%2012.jpg" alt="">
These trends are a result of several factors influencing local market conditions, said Leigh Warner, JLL’s Head of Residential Research - Australia.
“The decline in the supply pipeline that has been happening for some time now very clearly illustrates how the pre-sales requirements put on developers by financiers in Australia makes our supply pipeline very responsive to prevailing demand conditions,” said Warner.
“We’ve seen quite a few projects that we’ve been tracking for some time be redesigned for other land uses including office, hotels and student accommodation by existing or new owners.
“This has particularly been the case in Melbourne.
“The medium-term danger now is clearly that it will take some time for the supply pipeline to get going again and, with still very strong levels of national population growth, we could quite easily move into supply shortages over the next few years at the national level.
“This could result in real pressure on renters in some parts of the country in particular and move us from a housing price affordability crisis into a rental affordability crisis if we are not careful.”
<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/2019/5/31/New%20Project%2013.jpg" alt="">
With the exception of first home buyers, most buyer groups have been very inactive over the past few years, the JLL report said.
APRA’s macro prudential measures have been the major cause of slow investor credit growth, said Warner.
“The fall in overseas demand cannot really be attributed to any one thing,” said Warner.
“State and Federal imposts on foreign investors and credit constraints definitively contributed to the decline, but changes to Chinese capital restrictions likely had a much larger impact.
“And the late stage of the cycle and better opportunities elsewhere also likely played a role.”
With investors largely sitting out, developers are changing schemes to better target owner occupiers, the report found.
“In 1Q19 there was an increase in planning submissions lodged, reflecting both lapsed approvals being resubmitted and developers changing schemes to better suit current demand trends and more specifically target owner occupiers with smaller projects, larger apartments and higher quality finishes,” said Warner.
JLL expects conditions to remain tough in the short-term, with many parts of the country to see further downward pressure on prices and rents before starting to stabilise in late-2019.
“The combination of still tight credit, the Federal election and buyers holding off to see where prices will settle in some markets will all remain headwinds in the short-term,” said Warner.
“However, we think the medium-term outlook is very different.
“We have not significant over-built in aggregate and very low completions over the next few years, along with continued strong population growth, will see us quickly move into an under-provision of space and see rental markets tighten once more.
“The timing of this recovery will differ across the country, but it is likely to be the resource markets of Brisbane and Perth that lead the next cycle as economic and population growth continue to improve in these markets.
“The excesses of the booms in Sydney and Melbourne mean these markets will take longer for price growth to return, but lower investor activity could mean the turnaround in the rental market in these cities could be much quicker.”
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j.ballantyne1990-6AQqhLzZaK

Number of apartments being marketed falls 48% in a year: JLL

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GUEST OBSERVATION
There’s no shortage of talk about house prices. How much further will they fall? When will the market stabilise? Is it time to get in? 
What we know is national capital city dwelling prices have fallen 6.8% since peaking in October 2017, led by Sydney and Melbourne following strong prior price booms. 
But how much has affordability actually improved? 
It’s an important question, not just for potential buyers and nervous sellers. That’s because with the price adjustment in Sydney and Melbourne continuing and demand from property investors unlikely to return soon, an eventual stabilisation of the market depends heavily on the response of owner occupiers to improving affordability – and it seems there’s more to do to generate a lift in demand. 
There is little doubt that housing affordability and consumer sentiment towards housing are closely linked. Our previous research established a particularly close relationship between the “time to buy a dwelling” index and an affordability measure that incorporates both deposit requirements and mortgage repayments.<img src="https://www.westpac.com.au/content/dam/public/wbc/news/images/article/2019/03/TimetoBuy%20(002).png" style="font-size: 12.16px;">
<a href="https://westpaciq.westpac.com.au/wibiqauthoring/_uploads/file/Australia/2019/February/WestpacHousingPulseFebruary2019.pdf" data-s-object-id="https://westpaciq.westpac.com.au/wibiqauthoring/_uploads/file/australia/2019/february/westpachous_1">Latest readings on both measures show</a> buyer sentiment lifting a little in response to some easing in affordability pressures, although the gap to long run averages indicates affordability is still not back to “normal”. After hitting a seven-year high of 23.3% in late 2017, the proportion of average household income required to finance the purchase of a median priced dwelling has declined to just below 22% in early 2019 to be near the levels seen in late 2016. 
That’s partly because many factors feed into affordability with price moves, mortgage rates and incomes key. 
In other periods of price corrections, namely the late 1980s and early 1990s, the GFC and the 2011–13 interest rate tightening cycle, falling rates and income growth helped restore affordability.
In contrast, this adjustment is expected to see much less assistance from rates and is occurring against a backdrop of weak income growth, implying that price declines will need to do most of the “heavy lifting” to generate an improvement in affordability. 
And there’s likely more lifting to do, even though Westpac now expects the RBA to cut rates help affordability too. 
<img src="https://www.westpac.com.au/content/dam/public/wbc/news/images/article/2019/03/AusdwellingPrices%20(002).png">
Using some indicative estimates of how much further prices may need to move by looking at the price change required to return affordability to its 20-year average points to about a further 5% decline required nationally. In NSW and Victoria, more substantive moves in the 5-10% range are likely to be required, while other states should require milder moves.
While the picture differs across cities, and between houses and units in most cases, price adjustments in the key Sydney and Melbourne markets still look to have some way to run. 
That will be disappointing for those hoping for stabilisation to emerge but will be encouraging for those looking to get into what were previously very expensive markets.
MATTHEW HASSAN is a Senior Economist for Westpac
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How much more affordable is housing now? Westpac's Matthew Hassan

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Construction work completed fell 2.5% in the December quarter 2018, according to the latest figures released by the ABS, but still rose over the year.
Despite the December quarter decline, the residential building industry did $68.7 billion worth of work on new homes during 2018 - which was an all time high.
Work done is 2.1% up on the year.
Construction costs rose 3.6% over 2018, the biggest increase in nine years, according to CommSec.
Click <a href="https://www.propertyobserver.com.au/images/2019/2/27/Con-Costs.jpg" target="_blank">here </a>to enlarge
<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/2019/2/27/Con-Costs.jpg" alt="">
"The 2018 calendar year set a record for residential building activity but the amount of building work being done by the industry is now slowing," HIA senior economist Geordan Murray said.
"Following its mid-year peak, activity began to retreat.
"Other leading indicators of residential building activity, such as sales of new residential lots, new home sales, building approvals and housing finance all deteriorated quite significantly during the latter stages of 2018.
“This implies that the pipeline of new residential building work is thinning out and as the homes that are currently under construction reach completion there are likely to be fewer new projects to replace them."
HIA suggest the number of homes under construction will continue to decline throughout this phase of the cycle and the value of building work will decline accordingly.
"Today’s figures are significant as they provide a good indication that next week’s GDP figures will show that the slowdown in new home building has detracted from GDP growth for the second consecutive quarter," Murray said.
"HIA forecasts further declines in home building over the next two years which will provide a headwind for economic growth."
Construction activity still sits at high levels, however it's another weak reading in the Australian property industry.
Click <a href="https://www.propertyobserver.com.au/images/2019/2/27/con-levels.jpg" target="_blank">here </a>to enlarge
<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/2019/2/27/con-levels.jpg" alt="">
Earlier this month the dwelling approvals reached their <a href="/news/apartments-drive-dwelling-approval-decline-back-to-2013-levels">lowest levels since 2013</a>.
CommSec's Craig James says the inflation dragon has been sighted in the economy and is alive and well in the construction sector.
"The higher costs are in evidence across home building, commercial construction and engineering," James said.
"The question is whether builders and developers will be able to pass on the higher costs in the current environment."
Construction work fell across all states and territories.
The Northern Territory was down over 14%, followed by Queensland at 5.8%.
New South Wales was down 4.1%, Tasmania 3.6%, Western Australia 3.3% and ACT 3% down.
South Australia saw 2.5% decline and Victoria just 1.1%.
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jrobinson-rf4aSBido9

Construction work declines more than expected

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EXPERT OBSERVATION
The Reserve Bank (RBA) has released its financial aggregates data for October 2018.  The housing credit data is of particular interest.  It covers data from all local mortgage lenders and measures the value of mortgages outstanding.  The data is important because it highlights the expansion or contraction in credit.
As at the end of October 2018 there was $1.797 trillion in outstanding housing credit.  Housing was overwhelmingly the largest share of outstanding credit, accounting for 62.1% of total credit.  Looking at the split between owner occupier and investor credit, owner occupiers accounted for 67.0% of outstanding credit while investors accounted for 33.0% which is that cohort’s lowest share since June 2012.
<img class="align-center" src="https://www.corelogic.com.au/sites/default/files/inline-images/change%20in%20house%20credit.png" alt="change in house credit" width="1017" height="256" data-entity-type="file" data-entity-uuid="677891bb-3eda-4d6f-b1e4-e67f74329956" data-image-style="" data-responsive-image-style="wide" data-zoom-image-style="_as_uploaded" data-mfp-src="https://www.corelogic.com.au/sites/default/files/inline-images/change%20in%20house%20credit.png">
 Total housing credit increased by 0.3% in October 2018 which was its slowest monthly rate of growth since July 1984. The monthly expansion in housing credit has been consistently slowing since February 2018 when it expanded by just 0.5% during the month. On an annual basis, housing credit has expanded by 5.1% which is its slowest annual expansion since October 2013. While the slowdown in credit growth was initially being led by investors, credit growth for owner occupiers is now also slowing.
<img class="align-center" src="https://www.corelogic.com.au/sites/default/files/inline-images/change%20owner%20occupier%20credit.png" alt="change owner occupier credit" width="993" height="250" data-entity-type="file" data-entity-uuid="a3e4f229-9c47-484f-8c67-6e521303edcf" data-image-style="" data-responsive-image-style="wide" data-zoom-image-style="_as_uploaded" data-mfp-src="https://www.corelogic.com.au/sites/default/files/inline-images/change%20owner%20occupier%20credit.png">
 Owner occupier housing credit increased by 0.4% in October 2018 which was its slowest monthly growth since April 2015. Owner occupier housing credit increased by 7.0% over the 12 months to October 2018 and that was its annual slowest growth since November 2015. The monthly change in owner occupier credit has been slowing since February 2018 which has slowed annual credit growth form 8.1% to the currently 7.0%.
<img class="align-center" src="https://www.corelogic.com.au/sites/default/files/inline-images/change%20investor%20credit.png" alt="change investor credit" width="978" height="247" data-entity-type="file" data-entity-uuid="c4f385f9-69ec-4e92-a70e-377e5f39dbf8" data-image-style="" data-responsive-image-style="wide" data-zoom-image-style="_as_uploaded" data-mfp-src="https://www.corelogic.com.au/sites/default/files/inline-images/change%20investor%20credit.png">
 Investor credit recorded a nominal increase of less than 0.1% in October 2018 which was its smallest monthly change since credit fell by -0.1% in June 2018. The monthly change in investor credit has been minimal for a number of years now which is resulting in the weakest annual expansion in investor credit on record. Over the past 12 months, investor credit has expanded by just 1.3%.
It should be noted that the expansion in credit to investors is certainly being driven by fewer new originations (as highlighted in monthly housing finance commitments data). What is less clear but is also likely to be a factor is the ongoing shift from investors away from interest-only mortgages and towards principal and interest. Note that RBA reports around 70% of interest-only mortgages are to investors. In terms of new interest-only lending, APRA reported in the June 2018 quarter that $15.74 billion worth of new interest only mortgages was committed to which was its second lowest quarterly value any time since March 2008. Furthermore, the total value of outstanding interest-only mortgages has fallen to $461.329 billion, its lowest value since September 2014. As borrowers move from interest-only arrangements in which the principal isn’t repaid, to principal and interest mortgages, outstanding credit to investors is expected to keep falling especially as overall investor and interest-only new lending also continues to fall.
Overall, the reduction in housing credit can be attributed to the tighter credit environment, however a range of other factors are also at play in tempering housing credit, including low consumer sentiment, housing affordability constraints and higher mortgage rates. We expect housing credit growth to remain weak. With fewer transactions in the market and ongoing value declines it is reasonable to expect a further slowing of housing credit demand over the coming months.
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More signs the housing market is slowing further: Cameron Kusher

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House price growth is typically regarded as a good thing. It creates a feel good wealth effect which triggers spending across the Sydney economy.
But over the past few weeks, ANZ, Moody's Analytics, BIS Oxford, Macquarie Securities, HSBC, Citi, JP Morgan and UBS have all adjusted their price forecasts downwards for the Sydney residential market outlook. 
Most of these economists are saying prices will fall by somewhere up to 10% from peak to trough.
For most property owners who are happy where they are, its not something that is going to directly affect their bottom line. They might just think they are not as wealthy.
The reduced values could certainly affect existing homeowners refinancing mortgage loans in what is already a tougher post-royal commission lending landscape.
The sellers this spring who have owned their home for an extended time are on the whole likely to come up a little short of the stellar price that their new neighbour paid last year.
But with huge 75% gains made during the five year long post-2012 boom, they will be fine.
This downturn, if it stays moderately quarantined, will only truly impact those who bought in the past two years, paying over the odds, and now wanting to sell.
These resales are actually few and far between, although I spotted one in Surry Hills.
The ninth floor, one bedder sold for $753,000 having sold in early 2017 at $770,000.
All up when the $20,000 loss is added to costs, the seller would be down by $70,000.
But at least there was activity arising from the listing which highlights home buying is more affordable for buyers.
There were three bidders for the apartment, so two are still looking.
The NSW Treasury actually anticipates a slowdown in sales activity, which could limit the price falls, but will unquestionably affect many more players in the property market.
Treasury expect just 183,000 annual sales, as property transactions are put on hold.
This figure is down on the prior 210,000 annual sales tally.
That means 27,000 fewer agency commissions and solicitor contracts.
Less bank or mortgage broker loans.
Fewer tradies tasked to fix up those long overdue unhelpful selling issues like the leaking gutters.
No need for those fresh flowers for the Saturday open for inspections. 
Maybe no need for 54,000 bottles of champagne - one for every seller and buyer.
It is this ripple effect which affects the wider economy and potentially triggers a recession.
The Reserve Bank of Australia governor Philip Lowe recently suggested the current decline was "manageable".
Australia had gone through "plenty of periods" in the last two decades where prices have declined," Dr Lowe said.
"That's what happens in the housing market – we have these big run-ups, prices stabilise, sometimes they might fall, stabilise and then they'll rise again.
“We are watching it carefully.
"As long as it's not a very large decline – it's manageable."
Of course, full time secure jobs have traditionally been the key to owning and holding the family home.
So it is to be hoped the 8,000 layoffs announced this month by Telstra don't become endemic.
This article first appeared in The Daily Telegraph. 
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