Lower North Shore developer <a href="https://www.apartments.com.au/developers/abadeen-group">Abadeen</a> has secured development approval for its ultra-luxury residential project on the <a href="https://www.apartments.com.au/new-apartments/34-burran-avenue-mosman-nsw-2088">dress circle Burran Avenue</a>.

The project, just&nbsp;50 metres from Balmoral Beach within Mosman’s prestigious Golden Triangle, will commence construction in early 2026,&nbsp;following the successful completion of its nearby Hampden Mosman project.

Lodged in April 2025 and approved in September 2025, the development will comprise three whole-floor residences, each designed to capture panoramic harbour views through Sydney Heads.

<img alt="34 Burran Avenue, Mosman" data-entity-type="file" data-entity-uuid="7f4c7816-0ac8-4ef7-be0a-8ef23b693b68" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/BURRAN%20EV01%20R04%20option%201%20%281%29.jpg?VersionId=gVzI8pT6_K59Nhzaz0FLEvY6Kj9Kc8Fg" />

Set on an elevated 550 sqm corner site at the junction of Burran Avenue and Stanton Road, the building has been designed to sit within Balmoral’s natural slope. The façade mixes stone and metal cladding with angular forms, while oversized terraces and full-height sliding doors create a connection between interior living spaces and outdoor entertaining areas.

The delivery team from Abadeen’s Hampden Mosman project, which includes construction company Reform Projects and interiors company Mathieson, has been retained to bring the same level of execution and craftsmanship to Burran Avenue.

<a href="https://www.apartments.com.au/architects/platform-architects">Platform Architects</a> has been appointed project architect, bringing extensive experience from recent luxury residential projects in Manly, Fairlight and Freshwater.

&nbsp;

Justin Brown, Executive Chairman and Founder of Abadeen, said sites of this calibre, this close to Balmoral, are incredibly rare.

“Burran Avenue is an extraordinary site; its location, its scale and its outlook make it truly one of a kind. Receiving DA approval marks an exciting milestone for Abadeen."

"We’re proud to be moving forward with an exceptional team to deliver a project that will set a new standard for ultra-luxury living on Sydney’s Lower North Shore. Construction is planned to commence in early 2026, and interest is already strong from discerning local buyers who recognise the uniqueness of this address."

Brown anticipates prices will set new Mosman benchmarks above $20 million. Sales are expected to launch in March 2026.

Joel Robinson

Abadeen approved for Mosman's priciest apartments

Lifestyle developer <a href="https://www.apartments.com.au/developers/gurner">GURNER™ Group</a>, in partnership with Costa Property Group, has announced plans to reimagine Cunningham Pier in Geelong, one of Victoria's most recognisable heritage landmarks.

The announcement follows the City of Greater Geelong’s release of its Draft Geelong Waterfront Master Plan, which seeks to revitalise the waterfront with new energy, tourism, and investment. GURNER and Costa Property Group’s vision aligns with the Council’s ambitions to create a vibrant, connected, and economically powerful precinct for the community.&nbsp;

The future of Cunningham Pier will draw inspiration from Sydney Harbour’s luxury waterfront residences through to Dubai’s sculptural pier-edge towers, blending architectural excellence with &nbsp;resort-style living, hospitality, and public amenity.&nbsp;

The concept, described as “Saint Moritz on the Sea”, is envisioned to include:&nbsp;

<ul>
	<li>Six-star hotel accommodation and services&nbsp;</li>
	<li>World-class restaurants, bars, and public spaces&nbsp;</li>
	<li>High-end residential offerings&nbsp;</li>
	<li>Entertainment and cultural venues&nbsp;</li>
	<li>Potential cruise ship port facilities, integrating Geelong into the global travel network&nbsp;</li>
</ul>

The transformative project aims to become a magnet for tourism, investment, and innovation, while &nbsp;ensuring continued public access and connection to Corio Bay’s pristine waterfront.&nbsp;

Cunningham Pier has been operated by Costa Property Group for more than 15 years, with the City of Greater Geelong expressing strong support for strategic commercial partnerships that unlock &nbsp;tourism-led economic development for the region’s fast-growing population.&nbsp;

Tim Gurner, Founder &amp; Executive Chairman, GURNER™ Group, said the project is a "once-in-a-generation opportunity to put Geelong on the global map," adding that their version will be of what icons like the Opera House, Story Bridge or Empire State Building have done for other great cities.

“We’ll be working hand-in-hand with the Mayor, Council, the local community, and State Government to deliver something truly iconic that positions Geelong on the world stage. This project brings together everything we’ve built our brand on – world-class design, hospitality, &nbsp;lifestyle, and experience – all in one place. From six-star hotels and restaurants to the possibility of a &nbsp;new cruise ship terminal and luxury residences, the vision is extraordinary.”&nbsp;

City of Greater Geelong&nbsp;Mayor Stretch Kontelj said he welcomes the "bold and inspiring vision reimagining our beloved Cunnigham Pier as a global destination."

"This ambitious plan and the opening of Nyaal Banyul Geelong Convention and Event Centre next year have the potential to take our already world-class waterfront to even greater heights.”

Sydney Harbour, Dubai pier towers, to influence Gurner's Cunningham Pier, Geelong development

<a href="https://www.apartments.com.au/architects/bates-smart">Bates Smart</a> is one of Melbourne's longest standing architecture firms.

Founded in Melbourne in 1853 by Joseph Reed, the firm began as Reed &amp; Barnes and has evolved through various partnerships before adopting the Bates Smart name in the 20th century. With a continuous presence spanning more than 170 years, the practice has played a pivotal role in shaping Melbourne’s architectural identity.

In the 19th century, Bates Smart designed several of Melbourne’s enduring landmarks, including the Royal Exhibition Building (1880), a UNESCO World Heritage site, and the Melbourne Town Hall. The firm’s influence continued into the 20th century with notable works such as Ici House (1958), considered Melbourne’s first modern skyscraper and a milestone in post-war Australian architecture.

One of their landmark designs was&nbsp;The First Church of Christ, Scientist, at 336-340 St Kilda Road. The building, which is listed on the Victorian Heritage Register, was designed by Bates, Peeble and Smart with construction completed in 1922. Architecturally, the building is significant as a rare example of early twentieth century classicism applied to a religious building. Historically, the building is significant as the first church of the Christian Science movement.

Melbourne developer Time &amp; Place decided to bring Bates Smart back to the area to design their next residential apartment project, Park Modern.

[smartcode_project:default project_id=138453 project_image_fid=2138]

<a href="https://www.urban.com.au/new-apartments/park-modern-south-melbourne-1-middleton-lane-south-melbourne-vic-3205">Park Modern</a>, on one of the largest island sites on the Melbourne CBD fringe, bordered by Dorcas Street, Wells Street, and Middleton Lane, will comprise two sculptural towers. It is being positioned as a design-forward response to evolving owner-occupier preferences in the Domain precinct.

Tim Price, Director at <a href="https://www.apartments.com.au/developers/time-place">Time &amp; Place</a>, says&nbsp;Bates Smart have got a footprint on this city, probably like no other architect.

"It’s a really nice kind of next chapter story, that they created from a design perspective so long ago," Price told Apartments.com.au.

Park Modern will be the third time Time &amp; Place has worked with Bates Smart, having successfully designed and delivered Collins House and Opera on St Kilda Road together.

The brief focused on creating a built form that would feel contextually appropriate while offering a contemporary evolution of inner-city apartment living.

[smartcode_project:default project_id=138453 project_image_fid=2137]

The focus for Park Modern is squarely on owner-occupiers.

“It’s not always about downsizing," Price says.

"Sometimes it’s just about creating a space which is easily maintained, lock up and leave, reflecting people’s aspirations, whether they’re entertainers, big dining room spaces, big open terraces, they’re important parts of any design consideration.”

The building includes a mix of one, two and three-bedroom apartments, as well as penthouses, with layouts and floor plans designed to suit a broad demographic. The architecture has been shaped to capture&nbsp;view corridors to the Botanic Gardens, Port Phillip Bay and the CBD skyline.

Each apartment has been oriented to maximise natural light and provide a clear outlook, elements often cited by owner-occupiers as key criteria.

[smartcode_project:default project_id=138453 project_image_fid=351806]

Rather than defaulting to a generic luxury offering, the amenity strategy at Park Modern reflects specific insights into how residents want to live. The ground floor will include co-working areas, wellness facilities, and a concierge-led lobby that blends indoor and outdoor design cues.

“Wellness has become a more thoughtful consideration, not just gyms or lap pools, but things like magnesium plunge pools, saunas, daybeds, and studio spaces for Pilates and the regular cardio workout,” says Price.

One notable inclusion is a substantial porte-cochère, a covered vehicle drop-off zone integrated into the site plan. It’s a feature rarely seen in inner-urban developments and speaks to the team’s emphasis on ease of arrival and departure for residents and guests.

A display suite for Park Modern is now open by appointment, giving prospective buyers an early look at the project.

[smartcode_project_cta:default project_id=138453]

100 years on, Bates Smart returns to South Melbourne's Domain Precinct to design Park Modern

One of the most significant beachfront projects ever proposed for the small suburb of Miami on the Gold Coast, has taken a major step forward.&nbsp;Monaco Property Group has secured approval for <a href="https://www.apartments.com.au/new-apartments/nalu-miami-122-marine-parade-qld-4220">NALU</a>, a $500 million development comprising just 45 ultra-luxury residences on the iconic former Nobby’s Outlook site.

Acquired by <a href="https://www.apartments.com.au/developers/monaco-property-group">Monaco Property Group</a> in 2024 for $70 million, the rare 7,238 sqm Marine Parade parcel boasts more than 80 metres of uninterrupted ocean frontage.

With approvals now secured, Monaco Property Group will move NALU into its delivery phase. The project has been designed by&nbsp;<a href="https://www.apartments.com.au/architects/bda-architecture">BDA Architecture</a>, who collaborated with&nbsp;<a href="https://www.apartments.com.au/landscape-architect/ldg-landscape-architecture">LDG Landscape Architecture</a> and <a href="https://www.apartments.com.au/interior-designers/tom-mark-henry">Tom Mark Henry Interiors</a>&nbsp;to create the low-rise building, its landscaping, and interiors.

<img alt="NALU" data-entity-type="file" data-entity-uuid="3fdf578e-7cc4-4b17-bbc2-ba853522a5d8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/122_Marine_Parade_002.jpg?VersionId=zFhJWVzX0jmCO.5iIIxNELImHesTjWS4" />

Residences will range from 237 sqm layouts to beachfront homes exceeding 1,400 sqm.

At the heart of the project is a 2,200 sqm lifestyle precinct with a bathhouse, fitness centre and resort-style pool, elevated by a concierge service.

Jonathan Grasso, Co-Founder of Monaco Property Group, said the council approval marks an exciting milestone for NALU, which will launch in Q1 2026.

“The project will now progress toward construction, working alongside our world-class collaborators to bring NALU to life," Grasso said.

“Our vision is to create a legacy project for the Gold Coast, one that not only honours the history of the site but also elevates its future, setting a new standard for coastal living in Australia. NALU embodies the pinnacle of design and location and will stand as an enduring icon of prestige and liveability.”

<img alt="NALU" data-entity-type="file" data-entity-uuid="6ae8545b-87ca-4dea-90ed-ac273ec6515d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Image7.jpg?VersionId=Wnmie4bu3x2WQonnG4Pwmh39NdZVKeOV" />

Originally developed in the 1970s as Nobby’s Outlook and later refurbished in 2019 as Nalu, the property has long held a place in the local community’s coastal identity. The new vision will build on this legacy, creating luxury residences that capture ocean views while fostering a lifestyle defined by wellness, connection, and ease.&nbsp;

Beyond its residential offering, NALU will deliver significant economic benefits to the Gold Coast through job creation and opportunities for local suppliers and contractors. Construction is anticipated to commence in early 2026, with completion expected in Q3 2028.

Monaco Property Group approved for $500 million NALU apartments on Miami beach

The most elevated residential tower in Palm Beach, <a href="https://www.apartments.com.au/new-apartments/corallo-palm-beach-5-palm-beach-avenue-palm-beach-qld-4221">Corallo</a>, has officially launched this week, however only a handful of buyers will have an opportunity to buy in to the 17-storey project.

The $200 million mixed-use project includes ground floor dining and retail and is considered so valuable its developer, <a href="https://www.apartments.com.au/developers/changfa-group">Changfa Group</a>, will be staging its release of one-, two- and three-bedroom apartments and penthouses to the market.

[smartcode_project:default project_id=112194 project_image_fid=806]

<a href="https://www.apartments.com.au/project-marketer/colliers">Colliers</a> International, Director, David Higgins, said the development’s location just metres from the beach on the corner of Palm Beach Avenue and the Gold Coast Highway influenced the sculptural design by the acclaimed Plus Architecture studio.

“<a href="https://www.apartments.com.au/developments/palm-beach-qld-4221">Palm Beach</a> locals understand the rare opportunity here at Corallo, particularly being the tallest building in the suburb and its proximity to the beach and local restaurants, and they’ve represented the bulk of pre-launch enquiries,” Higgins said.

“The orientation of the apartments captures views of the coastline from Surfers Paradise to Currumbin, and the diversity of floor plans and apartment types provide an exceptional level of choice.

“The first release includes just 59 one-, two and three-bedroom apartments and two half-floor penthouses, with flexible use designed to appeal to both owner-occupiers and investors."

&nbsp;

[smartcode_project:default project_id=112194 project_image_fid=799]

In addition to the ground floor amenity, residents will also have access to a private dedicated wellness level offering 734 sqm of resort-style amenities including a pool, cold plunge, wet deck, steam room, sauna, gym, day bed, fire pit, barbecue area, dining area and yoga/stretch deck.

The project is located within walking distance of Tallebudgera Creek, Burleigh Heads village, Currumbin Alley and Palm Beach Currumbin High School. The Gold Coast Airport is under 10 minutes away.

[smartcode_project:default project_id=112194 project_image_fid=814]

Higgins said Palm Beach remained a hotly contested suburb for home buyers, with prices doubling in the past five years.

“What makes Corallo so appealing to the local market is the diversity of apartment types and pricing, with one-bedroom apartments starting from $841,000 and two-bedroom apartments starting from $1.34 million,” he said.

“The ground floor retail and dining offering will further expand on Palm Beach’s village atmosphere and create a meeting place for locals, and those opportunities for connection are highly valued.”

&nbsp;

[smartcode_project:default project_id=112194 project_image_fid=807]

The on-site sales display, which includes a fully fitted kitchen, bathroom and bedroom, will be open until early works commence in Q1 2026. Each residence at Corallo will feature premium finishes including natural stone, artisanal brickwork, and warm copper accents.

Changfa Group has a two-decade history of delivering premium developments in Australia and internationally, having recently completed its collection of premium townhomes at Lyra, Hope Island, as well as apartment projects in Leichhardt, Carlingford, and Chatswood in New South Wales.

[smartcode_project_cta:default project_id=112194]

$200 million Corallo Palm Beach launches with limited apartment release

Residential Market Trends

<html><body>
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
</body></html>

terryryder-YECXbqmri2

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

<html><body>
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>. 
</div>
</body></html>

pwargent-M4siyDbqQY

Construction is winding down sharply: Pete Wargent

<html><body>
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>.
</body></html>

ckusher-ujnxiKuFQs

Home owners holding onto their homes longer: CoreLogic's Cameron Kusher

<html><body>
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.”
</body></html>

j.ballantyne1990-6AQqhLzZaK

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

<html><body>
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
</body></html>

Matthew_Hassan-HHWHptmrw4

How much more affordable is housing now? Westpac's Matthew Hassan

<html><body>
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%.
</body></html>

jrobinson-rf4aSBido9

Construction work declines more than expected

<html><body>
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.
</body></html>

More signs the housing market is slowing further: Cameron Kusher

<html><body>
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. 
</body></html>

Residential Market Trends

Editor's Picks

Have something to contribute?

The latest real estate & off the plan properties & news, delivered to your inbox.

Developments

New apartments

New townhouses

News

The latest real estate & off the plan properties & news, delivered to your inbox.

Residential Market Trends

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

The latest real estate & off the plan properties & news, delivered to your inbox.

Developments

New apartments

New townhouses

News

The latest real estate & off the plan properties & news, delivered to your inbox.