There’s a quiet patch of <a href="https://www.apartments.com.au/developments/hawthorn-vic-3122">Hawthorn</a>, between the bustle of Glenferrie Road and the curve of the Yarra, that rarely sees change, and even more rarely, new apartments. But that’s exactly where <a href="https://www.apartments.com.au/developers/pomeroy-pacific-quattro-corp">PQD</a> is planting Kooyongkoot: a deliberate, 18-residence answer to the question of what downsizers actually want.

“This is something this pocket of Hawthorn has never seen before,” says Fil Gacesa, head of sales at PQD. “<a href="https://www.apartments.com.au/new-apartments/kooyongkoot-hawthorn-1-kooyongkoot-road-hawthorn-vic-3122">Kooyongkoot</a> will deliver just 18 large-scale apartments in the heart of Hawthorn. It is the true definition of resort-style living.”

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/59D7VxzltmM?si=1iCzRD7FRneKryfv" title="YouTube video player" width="560"></iframe>

That scale is central to the story. It’s what allows for two dedicated lift cores, short corridors, and a generous lightcourt that draws natural ventilation and sunlight into every residence. It’s also what makes room for the sort of amenity usually confined to high-density towers: a fully equipped wellness centre with infrared and traditional saunas, yoga and pilates studio, cold therapy shower, and treatment room. There’s a golf simulator, car and dog wash stations, and extensive storage too, not bolted on, but baked in from the start.

But more than the checklist, it’s the design intent that carries weight. “This project has been many years in the making,” says Mark Pomeroy, Director of PQD. “Not just in planning, but in listening, to what our buyers and the local community are looking for”.

[smartcode_project:default project_id=102717 project_image_fid=355289]

That listening shows up in the materials, oak floors, natural stone, V-ZUG appliances, and in how space is handled. Penthouses feature private rooftop terraces with pools. Terraces and garden residences embrace outdoor connection. Inside, the layouts skew large and open, geared for hosting, not just housing.

Architecturally, <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a>’s approach is grounded. There’s no reaching for spectacle here. Instead, the building offers a sculptural calm, anchored by landscaping from Eckersley Garden Architecture.&nbsp;

“We wanted to create spaces that feel expansive, serene, and meaningfully connected to daily life,” said founding partner Chris Stribley elsewhere.

[smartcode_project:default project_id=102717 project_image_fid=355304]

That sentiment, calm, connection, echoes in the location itself. Kooyongkoot sits just a short stroll from Central Gardens, Fairview Park, and the Rivoli Cinema. Tram lines and schools are close, but the street is tucked, quiet, and leaf-lined.&nbsp;

“Residents of Kooyongkoot will be a short stroll from Fairview Park, Central Gardens, and the Glenferrie Road retail strip," Gacesa notes, "but you're also cocooned in this peaceful pocket behind extensive landscaping by Eckersley Garden Architecture.”

Kooyongkoot is set for completion in late 2026.

[smartcode_project_cta:default project_id=102717]

Staff Writer

The project that said no to compromise: Inside Kooyongkoot, Hawthorn

When long-time Ivanhoe locals Graeme and Catherine, decided it was time to downsize, they weren’t necessarily in a rush.&nbsp;

Like many in their stage of life, they had started thinking about apartment living, but anticipated making the shift in two to three years.

That timeline changed when they visited <a href="https://www.urban.com.au/new-apartments/candela-ivanhoe-40-upper-heidelberg-road-ivanhoe">Candela</a>, a new boutique development by <a href="https://www.urban.com.au/developers/salter-brothers">Salter Brothers</a>. The project ticked all the boxes they were looking for: location, quality design, and long-term lifestyle benefits, which prompted them to bring their decision forward.

“It was the right place at the right time,” they said. “We knew immediately it ticked all the boxes, and we didn’t want to wait.”

[smartcode_project:default project_id=342 project_image_fid=358855]

Their decision to downsize was driven by a combination of practical needs and lifestyle considerations. Their existing home, while much loved, had become increasingly difficult to maintain. It spanned multiple levels, included extensive front and back gardens, and was starting to show the wear that comes with age.&nbsp;

They were looking for a more manageable lifestyle, one with less upkeep and more freedom. A brand-new apartment with no maintenance requirements and the ability to simply “lock up and leave” gave them peace of mind and a greater sense of control over their future.

Financially, the purchase made sense as well. The available stamp duty savings, strong price-to-value offering, and timing of the settlement suited their plans, making the transition smoother and more cost-effective. The apartment's design and inclusions further supported their choice.

[smartcode_project:default project_id=342 project_image_fid=357493]

The layout was both functional and flexible: three bedrooms, a butler’s pantry, a separate laundry, and a large open-plan living area. It gave them the freedom to host a family, accommodate guests, or set up a home office. The expansive balcony and elevated views added to the appeal, providing a sense of openness and connection to the outdoors.

“It just had a really good flow,” Catherine noted, something they found lacking in many other apartments they’d considered, particularly in the established market.

Candela’s boutique scale was another deciding factor. With a smaller number of residences and a top-floor penthouse position, the couple felt the development offered the privacy and space they were looking for, without feeling isolated.

“We liked that it wasn’t a huge development. It felt well-balanced, modern but still with a sense of community, not overwhelming,” they said.

[smartcode_project:default project_id=342 project_image_fid=357508]

Equally important was the ability to remain in Ivanhoe, a suburb they know well and have deep roots in. After 46 years in the area, proximity to local parks, shops, and familiar faces mattered just as much as the apartment itself.

“We didn’t want to give up the community we’ve known for decades. Candela allowed us to upgrade our lifestyle while staying in the place we call home.”

With a Walk Score of 90, the village location supports a convenient, connected lifestyle. <a href="https://www.apartments.com.au/developments/ivanhoe-vic-3079">Ivanhoe</a> Station is just a eight-minute walk away, and the neighbourhood offers access to parks, cafes, restaurants, and schools along Upper Heidelberg Road, all within easy reach.

Beyond the apartment, the couple also saw value in the broader vision for Candela, one that integrates residential living with public spaces and local amenities.&nbsp;

The development introduces 58 new apartments as well as a mix of commercial and social spaces that integrate contemporary architecture with the suburb’s existing character.&nbsp;

At ground level, residents will find a charming café and a lifestyle wellness centre, perfect for unwinding and rejuvenating. Meanwhile, the rooftop garden offers a stunning vantage point for residents to enjoy breathtaking sunsets, host gatherings, or enjoy barbecues with family and friends. It's not just a place to live; it's a vibrant community where every moment is an opportunity to connect and create lasting memories.

[smartcode_project_cta:default project_id=342]

Why Ivanhoe locals are choosing to downsize to Candela

Mark and Roy Makari are expanding their presence in Sydney’s South West with a second major proposal for Leppington, this time envisioning a 900-dwelling mixed-use development just 850 metres from their previously lodged tower trio on Fifth Avenue.

Project management and construction management firm Creative Vision filed the plans for the&nbsp;multi-building project at <a href="https://www.apartments.com.au/new-apartments/230-rickard-road-leppington-nsw-2179">230 Rickard Road, Leppington</a>. The proposal seeks to establish a new focal point for the precinct through a high-density, transit-oriented development supported by diverse land uses.

According to the Scoping Report prepared for the Department of Planning, the scheme includes around 900 apartments across multiple towers, including 135 dwellings designated for affordable housing. A mix of market and subsidised apartments will be supported by ground-level activation through retail and office space, a childcare centre, and a hotel, forming a comprehensive urban precinct.

<img alt="Mixed Use Development 230 Rickard Rd Leppington" data-entity-type="file" data-entity-uuid="34797362-f3dc-4d84-8235-2657fc5f3bde" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Plan.png?VersionId=Uzckrz9tUpDQl5lX1_WMhjnv16bsr8wG" />

The Design Report by <a href="https://www.apartments.com.au/architects/studiosc-0">Studio SC</a> notes that the project “intends to deliver a high-quality, high-density built form that supports the vision for the Leppington Town Centre, integrating mixed-use outcomes and public domain upgrades.” The development is expected to be delivered in stages, although a precise timeline is yet to be confirmed.

The project will be assessed through a future State Significant Development Application, with the Scoping Report indicating the team will seek design excellence via a competitive process or through an expert design review panel. Early massing diagrams suggest a series of mid- to high-rise buildings framing a central landscaped spine, with emphasis on pedestrian permeability and public space.

The planning documentation flags a strong sustainability agenda, stating that the development will “respond to the urban heat island effect, incorporate water sensitive urban design, and prioritise active transport”.

<img alt="Mixed Use Development 230 Rickard Rd Leppington" data-entity-type="file" data-entity-uuid="369d7b54-1279-4cde-88ec-dcb215594414" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Podium_1.png?VersionId=QArL7B2kkLt63vl5xvL0FNV_ardAlez4" />

The proposal follows in the footsteps of the Makaris’ nearby Fifth Avenue site, where they’ve submitted plans for three towers comprising nearly 500 apartments, with 10 per cent dedicated to affordable housing. That project features commercial podiums, a childcare centre, and a new public park that would occupy more than a third of the site.

Both developments are situated within walking distance of Leppington Train Station and fall under strategic precinct plans promoting higher density housing. The town centre is undergoing substantial transformation, driven by state government planning reforms aimed at fast-tracking housing delivery.

Together, the two projects represent a combined ambition of nearly 1,400 new homes across just under two kilometres of central Leppington.

First look: 900-home mixed-use precinct planned for Leppington

Leading Australian integrated property development group, <a href="https://www.apartments.com.au/developers/aqualand-australia">Aqualand</a>, has released the signature penthouses crowning its landmark AURA by Aqualand precinct at 168 Walker Street in North Sydney, unveiling Il Magnate and La Divina as the largest and most luxurious penthouses in the suburb.

With prices anticipated to commence from $15 million, and each accompanied by a new Porsche Carrera 911 valued at over $500K, the residences mark the culmination of <a href="https://www.apartments.com.au/buildings/aura-by-aqualand-north-sydney-168-walker-street-north-sydney-nsw-2060">AURA by Aqualand</a>’s decade-long journey and the beginning of its final sales chapter. 
&nbsp; 
Their release follows more than $850 million in record-breaking residential sales and the building’s completion and occupation.

[smartcode_project:default project_id=30959 project_image_fid=358868]

The Richards Stanisich-designed 284 sqm Il Magnate and 224 sqm La Divina penthouses, collectively known as The Icons of AURA, are conceived as grand luxury homes rather than apartments, with expansive proportions, elevated materiality and curated identities that reflect their status as one-off residences.&nbsp;

Il Magnate features a grande master suite, complete with substantial walk-in dressing area and ensuite, three other bedrooms, second ensuite and another bathroom, powder room, open plan kitchen, scullery, substantial dining area and generous living room divided by a feature fireplace, and a multifunction wintergarden, which is ideal for a study and adjoining office breakout space. &nbsp;

Meanwhile, the La Divina residence offers the same amenities, sans the powder room, on a slightly smaller alternate floor plan configuration.

[smartcode_project:default project_id=30959 project_image_fid=358863]

Each occupies half of AURA by Aqualand’s topmost 28th level, comes with four secure car spaces and pairs sweeping Sydney Harbour panoramas with large-scale living spaces, refined detailing and a level of craftsmanship and amenity rarely offered in the North Shore market.&nbsp;

Penthouse residents will also receive Etymon’s ‘Black Key’ private concierge and lifestyle management service, an invitation only offering providing the ultimate in bespoke personalisation, including a range of everyday discrete services, from dinner party management, grocery deliveries, pet feeding or plants watered, dinners, snacks and coffee deliveries, event ticket sourcing, right up to organising travel visas and international airfares. Rarely seen in Australian properties, the service provides residents the benefits of living in a world-class luxury hotel-style home, akin to The Ritz, or the Waldorf Astoria.

[smartcode_project:default project_id=30959 project_image_fid=358862]

<a href="https://www.apartments.com.au/interior-designers/richards-stanisich">Richards Stanisich</a>’s Director, Kirsten Stanisich, said the studio set out to craft residences that feel profoundly considered, contemporary and deeply connected to their setting.

“From the outset, we approached these penthouses with the sensibility of a grand Parisian residence - generous in scale, elegant in proportion and designed to feel more like a handcrafted home than an apartment," Stanisich said.

“Their elevated position and sweeping harbour outlook informed every decision, creating a rare connection between urban sophistication and natural calm. We shaped each space with expressive materiality, sculptural forms and bespoke detailing that invite touch and interaction.&nbsp;

“The result is a pair of residences defined by volume, light and an inherent softness - refined, flexible and deeply personal. These penthouses are unlike anything else in North Sydney, offering a sanctuary of true luxury framed by some of the city’s most remarkable views.”

For Aqualand’s Head of Sales &amp; Marketing, Alex Adams, the collaboration with Porsche underscores the shared ethos behind the residences.

“Aqualand’s collaboration with Porsche underpins both brand’s sharing an obsession with craftsmanship, design excellence, and enduring value," Adams said.

“Our penthouses are created for those who appreciate the finer details and expect the extraordinary at every touchpoint. Including a Porsche simply extends that experience beyond the residence - it’s a continuation of the lifestyle our buyers already live.”&nbsp;

[smartcode_project:default project_id=30959 project_image_fid=292862]

Aqualand’s Managing Director, Jin Lin, said the penthouses represent both the pinnacle of AURA by Aqualand and an important design benchmark for the company’s future pipeline.&nbsp;

“These stunning penthouses reflect the purest expression of Aqualand’s design ambition," Lin said.

“The unparalleled design intent makes them not only the glistening crown of AURA by Aqualand, but the crown of North Sydney itself. They’re essentially a thank you gift to a burgeoning community that deserves this level of quality and architectural consideration.&nbsp;

“We’re leveraging the unrivalled standard set here as the foundation for what comes next, including our upcoming Anderson Street, Chatswood; 15 Blue Street, North Sydney and Central Barangaroo projects. Purchasers of these penthouses will essentially be living inside the blueprint of Aqualand’s future.

“These landmark residences demonstrate how far North Sydney has evolved and the strength of demand for highly curated, bespoke luxury homes. They’re more than penthouses, they’re legacy residences.&nbsp;

“With AURA by Aqualand now a thriving new precinct with residents well and truly settled, and our in-house world-class lifestyle amenity activated, Il Magnate and La Divina represent a once-in-a-lifetime opportunity to secure an extraordinary piece of North Sydney’s future.”

[smartcode_project_cta:default project_id=30959]

Joel Robinson

Aqualand launches North Sydney penthouses with free Porsche Carrera 911

<a href="https://www.apartments.com.au/developments/bokarina-qld-4575">Bokarina</a> Beach has quietly evolved into one of the Sunshine Coast’s most complete coastal lifestyle precincts, defined not just by proximity to the ocean, but by how residential living, local retail and everyday amenity are stitched together.&nbsp;

Gardner Vaughan Group’s <a href="https://www.apartments.com.au/new-apartments/bask-bokarina-38-bokarina-boulevard-bokarina-qld-4575">Bask Bokarina</a> now represents the final residential chapter in that transformation.

[smartcode_project:default project_id=141609 project_image_fid=333360]

Over recent years, the Bokarina Beach precinct has taken shape as a walkable, community-oriented neighbourhood, anchored by beachfront access, Lake Kawana to the west, and a growing mix of cafés, specialty retail and public open space.&nbsp;

With Zinc Bokarina already delivered next door by <a href="https://www.apartments.com.au/developers/gardner-vaughan-group">Gardner Vaughan Group</a> (GVG), Bask is the last opportunity to buy a brand new apartment within the precinct, effectively rounding out a fully formed coastal village.

GVG has positioned Bask to strengthen that lifestyle framework. Ten ground-floor retail spaces are planned beneath the residences, extending Bokarina Boulevard’s existing activity and reinforcing the area’s everyday convenience, from casual dining and coffee to local services, within a short walk of the beach.

[smartcode_project:default project_id=141609 project_image_fid=333359]

The residential component comprises 135 apartments across two buildings, Mydas and Caretta, with a clear shift toward larger three- and four-bedroom layouts and penthouses. That mix reflects a maturing buyer profile in Bokarina, where demand is increasingly led by owner-occupiers and active downsizers seeking space, permanence, and connection to place rather than short-term coastal accommodation.

Design and amenity have followed the same logic. Residents will have access to a heated plunge pool, gym, private dining room with a full kitchen, landscaped communal gardens with barbecues and a firepit, and a shared herb and vegetable garden, facilities intended to support daily use rather than resort-style turnover. Pet-friendly features, including a dog wash bay, acknowledge both buyer expectations and the area’s dog-friendly beach, located around 250 metres from the site.

[smartcode_project:default project_id=141609 project_image_fid=333366]

“Bokarina has become one of the Sunshine Coast’s most desirable beachside communities, and Bask represents the very last chance to buy new in this location,” GVG Director Sam Gardner said.&nbsp;

“Our focus has been to create spacious, functional apartments that meet the needs of locals who want to downsize without compromise, as well as those seeking a full-time coastal retreat.”

Positioned between the Pacific Ocean and Lake Kawana, Bask apartments have been oriented to capture outlooks toward the water or the Glass House Mountains, reinforcing the project’s connection to its natural surroundings. With parks, beachfront paths, hospitals, retail and public transport already in place, Bask arrives at a point where the broader precinct is no longer emerging, but established.

Construction is expected to complete in Q3 this year, with apartments ready to move into this Spring.

[smartcode_project_cta:default project_id=141609]

Bask to complete Bokarina’s Sunshine Coast lifestyle precinct as final apartments are released

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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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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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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