<a href="https://www.apartments.com.au/developers/sunland-group">Sunland Group</a> has officially lodged plans for its first Gold Coast apartment project since the departure of the Abedian family from the company three years ago, unveiling a new high-rise proposal for a prominent Broadbeach corner site on Old Burleigh Road.

The application was submitted by an entity directed by Tom Jamieson, stepson of longtime Sunland leader Soheil Abedian, and Riaz Rezvanipour, brother-in-law of Sahba Abedian, Soheil’s son.

Sunland acquired the 1,283 sqm site on the corner of Old Burleigh Road and Armrick Avenue for $9.5 million late last year and is now seeking approval for a <a href="https://www.apartments.com.au/new-apartments/99-101-old-burleigh-road-broadbeach-qld-4218">42-storey tower with 81 apartments</a>.

<img alt="First look: Sunland Group returns to Broadbeach with new Old Burleigh Road tower plans" data-entity-type="file" data-entity-uuid="fea2946d-90ee-4cfc-babe-2a8ad5db2cb6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers.png?VersionId=BV0fihJw31nDIQ8ozY_h3GbS8mxDyhnm" />

Designed by <a href="https://www.apartments.com.au/architects/contreras-earl-architecture">Contreras Earl Architecture</a>, the proposed tower at 99-101 Old Burleigh Road would deliver a predominantly larger-format apartment mix aimed at the owner-occupier market. Plans include 17 two-bedroom apartments, 55 three-bedroom apartments, and nine four-bedroom residences across 35 residential levels.

The development also incorporates three basement levels, four podium parking levels, two levels of communal recreation facilities, and rooftop plant and equipment. A total of 189 car spaces are proposed, significantly exceeding the 90 spaces required under the planning scheme.

The architecture adopts a sculpted, curvilinear form, with deep wraparound balconies and integrated landscaping intended to soften the tower’s vertical expression. The planning report states the building’s “slender footprint/form provides a complimentary yet varied built form within the local streetscape” and contributes to “a varied, yet ordered skyline.”

Contreras Earl noted in its Architectural Statement that from the early stages, the project addressed a fundamental challenge: how to accommodate the required residential yield while avoiding the conventional model of a tower sitting on a rigid, fully resolved parking podium.

“The most direct response would have been to consolidate parking into a singular, flat podium and extrude a repetitive tower above,” the statement said. “While efficient, this approach would result in a consolidated built form with limited engagement with the surrounding landscape and public realm.”

Instead, the conventional podium model was “deliberately rejected”. The architects described the base of the building as “a landscaped architectural condition where structure, planting and circulation are integrated”.

“Rather than presenting a continuous built mass, the base of the building is articulated through a series of concrete planter elements that organise the podium into a fragmented system,” the statement said. “This approach reduces the perceived bulk of the lower levels while establishing a more permeable interface with the streetscape and adjacent open space.”

<img alt="Sunland" data-entity-type="file" data-entity-uuid="923fad8d-c960-4527-8fbe-975cf1ddf88d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-25%20at%2010.32.03%E2%80%AFAM.png?VersionId=pngwb0hYOIUpq9vDw6F2EsOiVuHF3DiX" />

&nbsp;

The site sits within the High Density Residential Zone and inside the City of Gold Coast’s unrestricted “HX” building height area, where the planning framework anticipates intensified residential development tied to the expanding light rail corridor. The planning report notes the area is undergoing “transition toward more intense development forms” given its proximity to Broadbeach, Surfers Paradise, and high-frequency public transport infrastructure.

Positioned directly opposite Broadbeach Park and within walking distance of Florida Gardens light rail station, the development would sit among a rapidly evolving stretch of Old Burleigh Road that has become one of the Gold Coast’s most active apartment development corridors.

The application joins a growing pipeline of luxury residential projects reshaping Broadbeach, including nearby developments by 5Point Projects, Polycell, and Graya.

The planning report argues the project contributes toward the Gold Coast’s long-term housing targets under the South East Queensland Regional Plan, which forecasts the need for more than 100,000 additional high-rise dwellings across the city by 2046.

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The Abedian family departed Sunland Group in late 2023, ending a four-decade association with the company, and subsequently established the private development firm Abedian &amp; Co. The group is currently delivering <a href="https://www.apartments.com.au/new-apartments/greenmount-residences-cnr-hill-street-and-marine-parade-coolangatta-qld-4225">Greenmount Residences</a> at Rainbow Bay and recently launched <a href="https://www.apartments.com.au/new-apartments/18-mary-avenue-14-18-mary-avenue-broadbeach-qld-4218">18 Mary Avenue</a> in Broadbeach.
</section>

Joel Robinson

First look: Sunland Group returns to Broadbeach new apartment market with new Old Burleigh Road tower plans

The Minns Labor Government has established the new Bays West Delivery Authority to lead the development&nbsp;of the Bays West Precinct and Blackwattle Bay Precinct.&nbsp;

The Authority is charged with creating Sydney’s newest precinct, a thriving, connected, sustainable hub with White Bay Power Station as its cultural heart. Its vision is to build on the area’s natural, cultural and industrial history to shape a vibrant new neighbourhood.

The precinct will deliver up to 8,500 well-located homes, including a minimum of 10 per cent affordable and essential worker homes. Combine new housing with public open space, opening public access to the waterfront for the first time in more than 100 years, while retaining important deep-water facilities to support Sydney’s working harbour.

Located just minutes from the Sydney CBD and connected to a world-class metro, ferry, walking and cycling links, the Bays West precinct will rebalance housing growth towards well-serviced inner-city locations and help tackle the state’s housing crisis.

The Bays West Delivery Authority,&nbsp;an agency of the Department of Planning, Housing and Infrastructure, will report to the NSW Minister for Lands and Property who already has oversight of major precinct renewal projects including at Blackwattle Bay and Barangaroo.

As part of the broader Bays West transformation, the Minns Government recently announced that a proposal from Lendlease to redevelop part of the Bays West Precinct has progressed to Stage 2 of the NSW Government’s unsolicited proposals process.

<img alt="Sydney" data-entity-type="file" data-entity-uuid="2ed71eb9-d8e8-4fa7-b9d1-de4531dcf2f3" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-25%20at%209.42.31%E2%80%AFAM.png?VersionId=IDryFIbped9SNDg72LEN_EecvhUsOPvp" />

The Minns Labor Government has also confirmed the Bays West precinct will have a new suburb name. This will be the first major suburb built in close proximity to Sydney’s CBD in decades and will encompass the area currently being referred to as Bays West, including Glebe Island and the White Bay Power Station. Served by a new Metro station just five minutes from the CBD, it will become one of the most populous suburbs in the Inner West and one of Sydney’s premier cultural destinations.

An early works program is taking shape, which&nbsp;includes the first stages of an international design competition.&nbsp;

The aim of the Bays West&nbsp;International&nbsp;Design Competition is to&nbsp;ensure design excellence is embedded in the project from the start. The competition will deliver an&nbsp;urban framework that defines the character, ambition and long-term identity of&nbsp;this&nbsp;former industrial precinct as it transitions to a vibrant, inclusive and sustainable residential&nbsp;neighbourhood.

The competition will be led by the Bays West Delivery Authority in partnership with Government Architect NSW.&nbsp;

It will launch with an invitation for a global Expressions of Interest, before moving to an invitation-only stage that will be assessed by a panel that&nbsp;will provide advice to Cabinet who will select a winner.

Premier of NSW, Chris Minns said the establishment of the new Authority is the first step in transforming the Bays West precinct into a vibrant, livable suburb minutes from the Sydney CBD and two stops from Hunter St Station on the Metro West line.

“The Authority will deliver well-located homes close to the heart of the city and integrate the new precinct with Blackwattle Bay and the new Sydney Fish Market.

“This is a generational opportunity to build a new suburb on the city’s edge and open the harbour foreshore to the public for the first time in a century.”&nbsp;

Minister for Lands and Property Steve Kamper said the new Bays West Delivery Authority established by the Minns Government will turbocharge the development of Sydney’s newest suburb.

“The Authority is working at a record pace to deliver an international design competition, planning pathways and a financial model so that this development benefits Sydney with well-designed homes in a central location, close to public transport, jobs, entertainment and essential services.

“If we want Sydney to stay liveable and affordable, we need to be bold about using underutilised government-owned land to deliver homes for the future while making sure essential working harbour functions can be accommodated.”

Bays West Delivery Authority established to "turbocharge" Sydney’s newest suburb

Around 400 additional homes could be built at Southwark Grounds on Port Road, lifting total site capacity from 1300 to around 1700 dwellings.

A recently approved code amendment would allow apartment towers of up to 14 storeys in some areas of Renewal SA’s redevelopment of the former West End Brewery.

Renewal SA Acting Chief Executive Shane Wingard said he welcomed the code amendment, with the increase in heights and homes making a positive impact on the supply of high-quality, well-connected housing close to the city.

“By going higher across some parts of Southwark Grounds, we are adding a substantial number of very well-located homes with little impact on project delivery time or planned open space,” Mr Wingard said.

Since the project officially launched in 2025, Mr Wingard said more than 12,000 enquiries had been received about living at Southwark Grounds.

“The very strong early interest we’ve seen since homes were first released in the precinct reinforces our plans to create more housing opportunities,” he said.

The Southwark Grounds code amendment was launched in December last year, with community engagement undertaken over five weeks from January.

It proposed increasing maximum building heights from eight to 14 storeys on the eastern section of Southwark Grounds, and to 12 storeys across the remainder of the site, with minimum building heights ranging from two to four storeys.

The code amendment was implemented through an Early Commencement policy in late January, allowing developers to quickly explore the viability of increased height and housing yield while other planning processes continue.

One of the first developers delivering apartment sites have already finalised redesigns to increase the number of apartments following the code amendment.

Samaras’ development adjacent to the future Colonel Light Park is now planning to deliver 125 apartments across 11 storeys, significantly greater than original plans of around 50 apartments across four storeys.

The developer is also exploring the potential for additional affordable housing outcomes.

Most of the apartments at Southwark Grounds will be delivered within a master-planned precinct on a large parcel of land on the eastern portion of the site, covering around two-thirds of its 8.4 hectares.

Wingard said detailed precinct planning over the coming months may identify further opportunities to increase yield further that could see total apartment numbers at Southwark Grounds, exceed this number.

Affordable homes at Southwark Grounds will also see a net increase, with Renewal SA maintaining its commitment to a minimum of 20 per cent affordable housing across the development.

&nbsp;

&nbsp;

Civil works have begun across the site, with construction under way on the first new roads surrounding a townhouse precinct in the south‑west corner of Southwark Grounds. This includes Renewal SA’s 17 Founder’s Row homes, which are on track for completion by Christmas.

“We expect to have people living at Southwark Grounds by the end of the year, so delivering roads and public spaces for those residents is among our highest priorities.”

Construction of 40 townhouses off Anderson Street, known as West Village and being delivered by Contour, is forecast to begin in mid‑2026. Kolabb’s Anderson Lane development will follow shortly after, delivering a further 26 townhouses.

Southwark Grounds is a state government‑led urban renewal project now set to deliver around 1,700 homes over the next decade.

Homes will be supported by a supermarket, a range of retail and hospitality offerings anchored by a revitalised Walkerville Brew Tower, a childcare centre, car parking and well‑connected public spaces.

400 new homes planned for Adelaide's former West End Brewery site

Brisbane developer&nbsp;<a href="https://www.apartments.com.au/developers/cavcorp">Cavcorp</a> has lodged plans for a new mixed-use residential development at <a href="https://www.apartments.com.au/new-apartments/55-wyandra-street-teneriffe-qld-4005">55 Wyandra Street</a>, Teneriffe, anchored by an 85-metre public laneway designed to reconnect the suburb’s riverfront with the Gasworks precinct.

The buildings, known as Teneriffe House and Teneriffe Lane, would replace the existing Queensland Cotton head office site with a 15-storey residential tower transitioning to eight storeys toward Helen Street. The project has been designed by Plazibat Architects and lodged as a code assessable development application for 93 apartments across a 3,401 sqm mixed-use site within the Newstead and Teneriffe Waterfront neighbourhood plan.

Central to the scheme is the transformation of an existing service easement into a publicly accessible cross-block connection linking Wyandra and Helen Streets. Cavcorp says the new laneway will act as both a pedestrian shortcut and a landscaped civic space between the Teneriffe Riverwalk, ferry terminal, and Gasworks precinct.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="26e7f058-b065-4de8-b13d-a2b8cb64dfcc" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/bldg.png?VersionId=sELS0ZKYi361oYipUa1BIKfe_.DLZoFV" />

“The revised proposal delivers a legacy public-realm cross-block link, permanently secured for community use, transforming an existing private easement into a safe, high-quality pedestrian connection between the Teneriffe heritage riverwalk and the Gasworks–Long Island precinct,” the planning report states.

The laneway will sit beneath a large subtropical loggia integrated into the podium levels of the development. The design incorporates deep landscaping, water gardens, lobby spaces, business lounges, and ground-floor apartments to create what Cavcorp describes as a climate-responsive “urban verandah.”

The tower itself has been designed as a slender form with recessed floorplates and curved translucent corners inspired by contemporary Japanese architecture. The building height aligns with the Commercial Road precinct controls, which permit towers up to 15 storeys within proximity to Longland Street.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="a8a17d40-43b6-4718-b3fd-67676fcbb485" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers%202_1.png?VersionId=i3VwDtp5AmL_8InW7w4qRbDFEpb744Jt" />

The project will comprise a mix of larger-format apartments aimed at owner-occupiers, downsizers, and families. The proposed apartment mix includes 11 loggia apartments across the lower levels, 50 four-bedroom Sky-Terrace apartments from levels three to seven, and 32 Sky-Pool Homes occupying the upper tower levels. The Sky-Pool Homes will feature private thermal plunge pools integrated into oversized balconies.

According to the application, the apartments are intended to reinterpret the scale and character of Teneriffe’s woolstore conversions and Queensland homes within a vertical residential format.

“The sky-pool homes build on Cavcorp’s previous projects and introduce a distinct apartment typology to Teneriffe, informed by both local and international precedent and responding to an identified market demand for enhanced safety, space and amenity,” the planning submission notes.

A major focus of the proposal is its five-level wellness and lifestyle offering, extending from the basement through to the rooftop.

Amenities proposed include a rooftop Swim &amp; Racquet Club with a 25-metre Olympic lap pool and tennis court, coworking spaces and libraries, golf simulators, wine storage, concierge facilities, business lounges, pet wash areas, and rooftop longevity-focused wellness spaces with spas, outdoor fitness zones, and landscaped terraces.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="944b352c-49b9-4247-a4c6-5967b4b69fda" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/amenity.png?VersionId=Ed_qKjAtMwFT.5gfl3jiA9QwdWxSMsaX" />

All parking will be concealed within basement levels accessed from Wyandra and Helen Streets. Cavcorp says the deep-basement engineering approach allows the entire ground plane to prioritise landscaping, pedestrian movement, and active frontage rather than vehicle infrastructure.

The development continues Cavcorp’s concentration in Newstead and Teneriffe, where the Brisbane developer has delivered a number of apartment projects including Lucent, Le Bain, and Luminare, as well as the Long Island Wellness Precinct nearby. Several of those projects have received national design and architecture awards, including recognition under Brisbane’s “Buildings that Breathe” program.

Cavcorp unveils wellness-focused Teneriffe House and Teneriffe Lane apartment buildings

Focus Group Investments has lodged plans for a new apartment development at <a href="https://www.apartments.com.au/new-apartments/64-70-hanover-street-fitzroy-vic-3065">64–70 Hanover Street</a> in Fitzroy, seeking to utilise the Victorian Government’s recently introduced Great Design Fast Track pathway to accelerate approvals for the project.

The proposal is among the latest developments to emerge through the state-led initiative, which was established to fast-track well-designed residential projects in activity centres and transport-connected inner-city locations. The pathway allows qualifying developments that meet elevated design and housing benchmarks to bypass traditional council planning timeframes and instead be assessed directly by the Department of Transport and Planning.

Designed by SJB, the development will comprise a mix of apartments above activated lower levels, with a strong focus on architectural articulation, landscaping, and communal amenity. The design response seeks to balance the industrial character of Richmond’s former warehouse precincts with a more contemporary residential form.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="abea51cc-d85b-479e-9aef-a589f3b37ca7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/ground.png?VersionId=e1Kf8EyPWwyiVumtqQ4rM5S4GpOR3CCz" />

Proposed are 63 new dwellings, a wide ranging mix of studio, one-, two-, and three-bedroom apartments, and townhouses and duplexes. They will be spread across a part-three, part-eight storey building.

The Planning and Urban Context Report by Tract says the development is of an "exemplary architectural standard" and has been carefully crafted by SJB Architects.

"Dwellings&nbsp;will benefit from excellent access to natural light, cross-ventilation opportunities and extensive communal space," the report noted.

The architectural material highlights the project’s integration of landscaped elements and communal spaces throughout the building. The proposal also incorporates sustainability initiatives aligned with the Victorian Government’s push for higher-performing apartment developments under the fast-track program.

The Great Design Fast Track was unveiled by the Victorian Government in 2024 as part of a broader housing supply strategy aimed at accelerating the delivery of new homes. Projects assessed through the pathway must demonstrate high-quality architecture, sustainability outcomes, and housing diversity while being located close to public transport and existing infrastructure.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="afdbe834-8dc4-4a77-a943-ba07bc927348" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/site_11.png?VersionId=0J657j.TaChAZfp93wqJYBTqSsnREJx2" />

Focus Group, founder and led by Paul De Lutiis, is increasingly active across Melbourne’s inner suburbs, targeting well-connected urban renewal locations suited to medium and higher-density residential development. The Fitzroy proposal continues that strategy, leveraging the area’s strong transport links, established retail amenity, and proximity to the CBD.

Fitzroy has been one of the most popular spots for developers and buyers in recent years. The likes of PACE Development Group, SMA Projects, Crema Group and Chapter Group, currently selling projects in the suburb.

First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Fitzroy apartments

Residential Market

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Demand from Sydney and Melbourne residents looking for a sea change is one of the major impacts on the Sunshine Coast market, according to Herron Todd White’s (HTW) recent report.
The property valuation firm says that a leading indicator for interstate migration to the region is sentiment in the two largest capital city markets, particularly the higher end beachside and prestige hinterland properties.
These are attractive to retirees and sea change buyers making the move north, the firm says.
“Prestige beachside areas such as Noosa and Sunshine Beach are influenced by demand from southern buyers as are some prestige hinterland areas including Maleny and Doonan,” the report states.
“Employment levels also influence demand for local property and, generally speaking, when the tourism and construction industries are strong, the local residential market follows.”
 “The Sunshine Coast has always been a popular investment location for both dwelling and units alike, with many holiday let units owned by intra and interstate investors.
“Like most areas, any significant interest rate rises will likely impact many investors and we may see an increase in the supply of investor stock hit the market, which is what has happened in the past.
“This may also be a similar issue for some of the newer affordable estates which have a higher proportion of investment properties as opposed to owner-occupied stock.”
HTW also pinpoints the University Hospital as a primary influence on demand for property in the sub-$700,000 region.
“Land prices, as well as established housing, are continuing to increase with demand remaining strong.
“Currently, stock levels across the coast are low and we are seeing multiple offers becoming more common again.
“Units are also improving although not to the same extent as traditional housing.
“With a number of local infrastructure projects still to be delivered, we’re expecting another good year for the residential property market on the Sunshine Coast.”
Examples of recent sales in the area include a Parrearra two bedroom unit that sold for $395,000 (pictured below).
It was sold by Tanya Murphy from Stewart Property - Mooloolaba.
Located at 32/57 Grand Parade, the unit comes with two bedrooms, modern kitchen with stone benches, open plan living and two car parking.
The complex facilities include a large lagoon pool, outdoor spa, gym and BBQ areas.
It is 5.2 kilometre from the Sunshine Coast University Private Hospital and Sunshine Coast University Hospital, medical development and University of the Sunshine Coast.
<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/2018/4/6/parrearra.jpg" alt="">
Another new offering currently on the market is a Bli Bli three bedroom house with a price guide of $399,000 (pictured below). 
<a href="https://www.realestate.com.au/property-house-qld-bli+bli-127930126" target="_blank">The 23 Conway Court house</a> features open plan living and dining zone, three generous sized bedrooms, and kitchen with island bench.
It is conveniently located home offers an easy-care layout for effortless family living.
Set on a 731 square metre parcel, it's an easy stroll to Bli Bli school and moments to local shops.
<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/2018/4/6/Bli%20Bli%202.jpg" alt="">
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j.ballantyne1990-6AQqhLzZaK

Sea change seekers setting sights on Sunshine Coast: HTW 

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Sydney remains perched at the top of the housing cycle, according to the October residential property clock by property valuation firm Herron Todd White.
The top has a new entrant as well, Griffith. The rest — Coffs Harbour,  Newcastle and NSW Central Coast — stay put.
There are no changes from September at the bottom of the market or the group of cities and regions approaching the peak, which includes Melbourne.  Perth and Darwin are the two capital cities that remain at the bottom of the market. 
Interestingly, there are no candidates in the starting to decline phase, while the declining market of the clock has only one Latrobe. Both were empty in September. 
<a href="https://www.propertyobserver.com.au/images/2017/10/05/HTWOctober.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/10/05/HTWOctober.jpg" alt="">
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jonathanchancellor-7SQnKwU6yx

Sydney remains at the top of market cycle for houses: HTW property clock

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GUEST OBSERVER
Australia has a record economic expansion, the longest expansion by a developed nation.
But Aussie consumers still aren’t feeling the love. While consumer sentiment lifted in September, the reading is still in the pessimistic end of the spectrum. Consumers are adjusting to the new reality of 2 per cent wage growth, rather than 4 per cent annual growth. Still, household prices are growing by just 1.4 per cent. And many goods and services are the most affordable they have ever been. But consumers are fixated on low wage growth and the rising share that bills like gas and electricity bills are taking on the household budget.  
In the survey period consumer spirits would also have been dampened by news of a hydrogen bomb test in North Korea and the hurricanes bearing down on southern US states. The good news is that these issues didn’t significantly spook consumers.  
<a href="https://www.propertyobserver.com.au/images/2017/09/13/Screen%20Shot%202017-09-13%20at%2011.55.17%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/09/13/Screen%20Shot%202017-09-13%20at%2011.55.17%20AM.png" alt="">
Aussies are growing cold on real estate investments. Putting money in the bank or paying down debt are still regarded the wisest places for new savings. And shares have narrowed the gap with real estate. A less frothy real estate sector would be very much embraced by the Reserve Bank.  What do the figures show?
The Westpac/Melbourne Institute survey of consumer sentiment rose by 2.5 per cent to a 4-month high of 97.9 in September. The confidence index is down 4.4 per cent on a year ago. A reading below 100 denotes pessimism.  
The current conditions index rose by 3.7 per cent while the expectations index rose by 1.8 per cent.  
Four of the components of the index rose in September:
The estimate of family finances compared with a year  ago was up by 6.1 per cent;  
The estimate of family finances over the next year was  down by 2.1 per cent;  
Economic conditions over the next 12 months was up  by 2.7 per cent;  
Economic conditions over the next 5 years was up by 5.2 per cent;  
The measure on whether it was a good time to buy a  major household item was up by 2.1 per cent. • Housing outlook: A good time to buy a dwelling? The index was up 0.7 per cent in September after rising by 0.9 per cent in August and rising 3.1 per cent in July.
Wisest place for savings:
Contained in the Westpac/Melbourne Institute survey of consumer confidence was a quarterly question on the wisest places for savings. Most people favoured putting new savings in the bank as the wisest place for savings (29.3 per cent of respondents). Next highest was “Pay Debt” (23.5 per cent) from Real Estate (10.5 per cent), Shares (8.9 per cent), “Don’t Know” (6.3 per cent); “Spend it” (5.7 per cent) and Superannuation (5.5 per cent).  
In the September quarter the reading for “Real Estate” was the lowest in 44 years of records at 10.5 per cent. What is the importance of the economic data? 
<a href="https://www.propertyobserver.com.au/images/2017/09/13/Screen%20Shot%202017-09-13%20at%2011.56.26%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/09/13/Screen%20Shot%202017-09-13%20at%2011.56.26%20AM.png" alt="">
Westpac and the Melbourne Institute release the Index of Consumer Sentiment each month. According to Melbourne Institute: “The survey of consumer sentiment was first undertaken in 1973 and was conducted on a quarterly basis until 1976, a six-weekly basis from 1976 to 1986, and has been conducted monthly ever since.” Confident consumers may be more inclined to spend, especially on major items.
What are the implications for interest rates and investors?
CommSec still sees no change to interest rates in the foreseeable future. The economy is expanding, business conditions are at decade highs but inflation is well contained. And, based on today’s data, the RBA needs to keep a watch on a cooling property market. 
Craig James is the chief economist at <a href="https://www.comsec.com.au/default.aspx" target="_blank">CommSec</a>.
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cjames-5S2v74qSNK

Real estate sentiment at 44-year low: Craig James

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The slow and inevitable fade of the Sydney market is happening in concert with a rise in New South Wales regional markets.
Hotspotting’s monitoring of sales activity shows there are growth markets across the state – indeed Regional NSW now has more upwardly-mobile markets than Sydney does.
The Newcastle region and the Central Coast stand out, as markets a little north of Sydney head a strong NSW Regional sector.
While the Sydney market is past its peak and has relatively few growth markets compared to 2015/2016, Regional New South Wales has risen.
Our Spring survey has identified almost 50 regional towns or suburbs with rising markets – a little down on the number revealed in the Winter report, but still very strong.
I’ve observed previously that Newcastle and the regions surrounding it have provided the stand-out precinct in Regional NSW.
This remains the case, but with a new market leader - the Lake Macquarie LGA on the fringe of Newcastle.
This municipality has five suburbs where sales activity is rising steadily and six others with steady sales performance. Growth suburbs include Belmont North, Edgeworth, Macquarie Hills, Toronto and Warners Bay.
Nearby LGAs (including the municipalities of Port Stephens, Newcastle, Maitland, Cessnock, Singleton and Muswellbrook) all have busy sales activity. 
Jointly the Newcastle/Hunter region has 19 growth markets (up from 17 three months ago).
To illustrate what some of these markets look like, dwelling sales in Cessnock have been 65, 67, 84, 90, 96 and 101 in the past six consecutive quarters. This kind of pattern inevitably delivers price growth – and the median house price for Cessnock has increased 13% in the past 12 months.
Hunter Valley locations like Muswellbrook and Singleton continue to improve after the previous downturn caused by over-development and a downturn in the coal industry.
Following the merger of the Wyong and Gosford LGAs to form the Central Coast council area, this municipality is now a significant market in Regional NSW.
It has four rising locations, but 24 with steady sales performance (many of them what we called “plateau” markets, where sales have levelled off a little below the peak), which indicates this market overall is strong but past its best.
On the south coast of NSW, both Batehaven and Tuross Head in the Eurobodalla LGA have growth markets.
Queanbeyan on the ACT border continues to excel as an affordable growth alternative to Canberra. Others to stand out as above-average growth markets in Regional NSW include Bathurst, Dubbo, Taree, Tuncurry and Gunnedah.
Tamworth, Orange, Goulburn, Ballina and Wagga Wagga all have solid markets with steady sales activity.
Areas which were among the Regional NSW growth stars previously, but have now levelled out with plateau markets, include locations close to Sydney which caught a ripple effect from the capital city boom: Wollongong, Blue Mountains and the lifestyle towns of Wingecarribee Shire (the Southern Highlands).
Other previous growth stars now past their peaks include Port Macquarie and Coffs Harbour.
Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="mailto:%20%3Cscript%20type='text/javascript'%3E%20%3C!--%20var%20prefix%20=%20'ma'%20+%20'il'%20+%20'to';%20var%20path%20=%20'hr'%20+%20'ef'%20+%20'=';%20var%20addy38821%20=%20'ryder'%20+%20'@';%20addy38821%20=%20addy38821%20+%20'hotspotting'%20+%20'.'%20+%20'com'%20+%20'.'%20+%20'au';%20document.write('%3Ca%20'%20+%20path%20+%20'/''%20+%20prefix%20+%20':'%20+%20addy38821%20+%20'/'%3E');%20document.write(addy38821);%20document.write('%3C//a%3E');%20//--%3E/n%20%3C/script%3E%3Cscript%20type='text/javascript'" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a>
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terryryder-YECXbqmri2

Regional NSW now has more upwardly-mobile markets than Sydney

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Sydney’s housing market will see flat or possibly falling prices this month, while Melbourne’s market continues to edge up, with values set to rise around half a per cent in August, according to CoreLogic.
In a preview of its revised monthly housing price index, CoreLogic said there had been no price growth in Sydney during August, as investors withdrew following higher mortgage rates on the back of the banking regulator’s crackdown.
Sydney’s almost unstoppable housing market was not immune to a downturn, head of research Tim Lawless said.
It was not however a precursor for any dramatic price correction.
"If you look back at any past cycle, you will find that prices do not fall off the cliff," Mr Lawless said.
“We don’t think it would be disastrous, but it (Sydney housing values) could fall 5-10 per cent peak to trough,” Mr Lawless said following the launch in Sydney of CoreLogic’s updated housing value index.
<div>
"Sydney has been gradually cooling since November last year, <a href="https://www.afr.com/real-estate/how-it-sold-aged-housing-campaigner-barbara-squires-makes-own-downsizing-move-20170827-gy57z3">auction clearance rates</a> have starting slowing...all signs the market is cooling."
"The question is what will be the difference between the peak and trough."
</div>
He suggests by the end of this year, the pace of growth for Sydney and Melbourne could be neck and neck at 12.5-13 per cent in each city.
"Sydney’s market peaked at an annual growth rate of more than 19 per cent while Melbourne topped 15 per cent.
"In Melbourne, auction clearances were still topping 70 per cent, and investors were still active, unlike Sydney where investors had fallen away..
“Melbourne doesn’t have the affordability constraints of Sydney.
"The overall growth in Sydney’s values had been powered by the top end of the market while in Melbourne, more affordable housing had underpinned the market.
"Perth’s hard-hit housing market has seen a price fall of 1.5 per cent so far in this month.
"But the worst was likely behind the city as jobs growth improves in the state.
“Affordabitlity has been the silver lining ... noting that first home buyers accounted for about 25 per cent of sales.
"In Brisbane, CoreLogic found housing values edged up only 0.2 per cent for the quarter with the market dragged down by a flood of new apartment construction.
"The poor perceptions around the city’s unit market was dampening the city’s whole housing sector with the market not reflecting improved immigration."
<div>
Corelogic will reveal its new format hedonic index for August national house prices this Friday, which will see improved sampling, better handling of off the plan sales, along less volatility in daily and monthly readings.
The series goes back to 1980.
</div>
<div>The new index will result in slight changes in trends so far this year as Sydney's house prices rise in the year to July will be 10.9 per cent as opposed to 10.5 per cent under the old index.</div>
<div>
Melbourne will be up 15.7 per cent compared to 12.4 per cent and Brisbane will be 13 per cent for the year, as opposed to 15.9 per cent.
</div>
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Sydney’s housing market will see flat or falling prices this month: CoreLogic

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Australia is experiencing a long-running residential construction upturn, beginning around mid-2012.
Residential construction tends to be very sensitive to interest rates.
So falling interest rates from late 2011, combined with strong population growth, increased foreign demand and pent up demand from underbuilding in previous years meant that a boom was inevitable.
This building boom came at a very beneficial time and helped to offset some of the negative effects from the decline in business investment as the mining construction boom wound down.
The leading indicators of building activity suggest that the current residential construction boom has peaked.
So in this note we take a look at how the economy has benefited from the latest construction cycle and how it’s likely to fair as activity slows.
A typical residential construction upturn has both direct and second-round benefits.
The direct benefits include the additional building activity as well as the jobs created to undertake the additional building work.
Second-round benefits include additional spending elsewhere in the economy as a result of this new construction employment.
For example, spending on furnishings and household appliances for use in the new dwellings.
And then the additional employment as a result of this spending.
In terms of the direct benefits, residential construction upturns since the late 1970’s have on average contributed 2.2 ppts to GDP (chart 1).
<a href="https://www.propertyobserver.com.au/images/2017/08/15/Chart-1.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/08/15/Chart-1.jpg" alt="">
The latest cycle has added 1.6 ppts.
Upturns also contribute to jobs growth. Employment in residential construction, has expanded by 38%, or by 31.2k jobs since 2012 (chart 2).
<a href="https://www.propertyobserver.com.au/images/2017/08/15/Chart-2.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/08/15/Chart-2.jpg" alt="">
This is well above the 6.4% growth rate for total employment over the same time frame.
These jobs have been concentrated in NSW, Victoria and Queensland where the bulk of the residential construction has taken place (chart 3).
<a href="https://www.propertyobserver.com.au/images/2017/08/15/Chart-3.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/08/15/Chart-3.jpg" alt="">
Other building construction jobs, which may include some workers employed in residential construction, have also expanded strongly over the latest residential construction upturn, with 38k extra jobs.
Jobs in construction services have also grown a little faster than total employment growth. Although this includes jobs related to all types of construction activity.
This expansion (and likely contraction) in residential construction jobs is much smaller than the rise in mining sector jobs during the mining boom.
We discuss this more in the next section.
The ABS has estimated that every $1m spent on residential construction generates 17 jobs on a full-time equivalent basis.
This includes jobs in the construction industry as well as the additional jobs outside the industry created as a result of flow on spending.
Spending on dwelling construction has risen by $6.2bn over the cycle so far.
So according to these multiplier effects approximately 105k jobs in total have been added to the economy.
The ABS has also estimated other second round benefits.
For instance, for every $1 spent on residential construction, $1.31 worth of spending is generated elsewhere in the economy.
One area where we have seen this extra spending show up is in the category of household furnishing and fittings including household equipment, floor coverings, household appliances and tools.
Since the latest residential construction boom began, spending in these categories has lifted by 17.5% compared to 10.7% for total household consumption spending (chart 4).
<a href="https://www.propertyobserver.com.au/images/2017/08/15/Chart-4.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/08/15/Chart-4.jpg" alt="">
This has been a positive for the retail sector which has faced many headwinds in recent years.
Other beneficiaries of residential construction booms are the State governments who collect stamp duty revenues.
The NSW, Victorian and Queensland State governments have all had solid growth in stamp duty revenues from the sale of residential properties.
Large house prices gains, particularly in Sydney and Melbourne, and decent turnover has also boosted stamp duty revenues.
In NSW, for example, stamp duty revenues have more than doubled over the past six years and now make up 32% of tax revenues compared to 22% in 2010/11.
We think the latest residential construction cycle has peaked. Residential building approvals peaked in August last year and have fallen by around 10% since then (chart 5).
<a href="https://www.propertyobserver.com.au/images/2017/08/15/Chart-5.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/08/15/Chart-5.jpg" alt="">
However the pipeline of activity remains at record highs which means we are likely to see another quarter or two of growth in construction work done (chart 6).
<a href="https://www.propertyobserver.com.au/images/2017/08/15/Chart-6.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/08/15/Chart-6.jpg" alt="">
We also saw a weather-related fall in residential construction activity in Q1.
This means that we are also due some payback in Q2.
However we think the downturn in the latest residential construction cycle will be gradual, and we expect an extended plateau where residential construction activity remains at a high level over 2017 and into 2018.
This is because a much larger share of approvals have been for multi-units than in previous booms (chart 7).
<a href="https://www.propertyobserver.com.au/images/2017/08/15/Chart-7.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/08/15/Chart-7.jpg" alt="">
Multi-units have a much longer build time, averaging 6 quarters, compared to 2-3 quarters for detached houses.
Indeed some high rise apartments can take 2-3 years or more to build.
This prolongs the construction cycle.
On average, residential construction downturns have subtracted 1.5 ppts from growth.
Our forecasts running to the June quarter 2019 have dwelling construction subtracting just 0.5 ppts from growth.
The smaller subtraction from growth than average reflects the fact the upturn was a little smaller.
Also, strong population growth has lifted underlying housing demand.
We estimate that underlying demand now sits at 185k compared to 155k in mid-2012 at the start of the boom.
This means that the “normal” level of construction activity necessary to meet demand is higher than it was a start of the upturn.
We also expect renovation activity to pick up.
The fact that interest rate are likely to remain low for quite some time is also a factor behind our forecasts for a relatively shallow downturn.
We expect the RBA will leave the cash rate on hold until late 2018.
And that the tightening cycle from there on will be fairly cautious.
In terms of the number of dwelling commencements we expect a slowing to 200k in 2017/18 down from 217k in 2016/17.
And then a further decline to 185k in 2018/19.
For employment, we expect that job losses will occur fairly gradually alongside the gradual decline in activity.
This will help the labour market better absorb these workers.
There are a number of other reasons to expect that the disruption from the downturn in residential construction jobs to be minimal.
Firstly, the jobs downturn will be largest in NSW, Victoria and Queensland, the States where the lion’s share of building activity and gains in residential construction jobs have taken place.
These States all have decent population growth.
And two out of three of these States, NSW and Victoria have strong jobs markets. In NSW the unemployment rate is under 5%, and at a level consistent with full employment.
In Victoria, employment has been growing a solid pace and well above the national average.
Employment growth has also picked up in Queensland in recent months.
Secondly, both NSW and Victoria have also seen a lift in non-residential building approvals (chart 8).
<a href="https://www.propertyobserver.com.au/images/2017/08/15/Chart-8.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/08/15/Chart-8.jpg" alt="">
So additional employment in the non-residential sector may provide a partial offset to some of the jobs losses in residential construction.
In fact the ABS estimates show that the multiplier effects from non-residential construction activity are even larger than for residential construction.
They estimate that $1m spent on non-residential construction generates 24 jobs on a full-time equivalent basis.
And for every $1 spent on non-residential construction, $1.47 worth of spending is generated elsewhere in the economy.
Thirdly, all three of these States have a large pipeline of infrastructure spending still to come from their respective State governments which should also add to jobs growth, especially construction.
The Federal government is also planning a large amount of infrastructure spending over the next 10 years which will also boost employment across the country.
Renovation activity should also provide an offset to lower new residential construction activity.
Renovations usually account for a little above 40% of residential construction activity.
However the share is now very low by historical standards (chart 9).
<a href="https://www.propertyobserver.com.au/images/2017/08/15/Chart-9.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/08/15/Chart-9.jpg" alt="">
Current rates of spending on renovation activity also look low relative to house price growth (chart 10).
<a href="https://www.propertyobserver.com.au/images/2017/08/15/Chart-10.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/08/15/Chart-10.jpg" alt="">
Strong house price growth usually encourages more spending on renovations.
There should be some catch up in renovation spending over the next few years.
Comparing to the recent ramp up and then decline in mining sector jobs, the decline in residential construction jobs will be much smaller.
Mining employment trended higher over a nine year period, rising from around 80k in 2003 to reach a peak of around 275k in mid-2012.
Since the peak of the mining boom around 50k jobs have been lost.
Although more jobs losses are likely as the construction of LNG facilities wind down.
These jobs losses have been concentrated in WA and Queensland. Queensland has had a construction boom and growing tourism sector to help offset lost mining jobs and activity.
But for WA there has been little in the way of other growth drivers to take the place of mining.
As a result economic conditions have been very soft for a number of years in WA.
In terms of the retail sector, a return to more normal growth rates for spending on household furnishings, furniture, appliances and other goods, would be another headwind for the retail sector to contend with.
Kristina Clifton is an economist with the <a href="https://www.commbank.com.au/" target="_blank">Commonwealth Bank</a>.
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Residential construction: will boom lead to bust? CBA's Kristina Clifton

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Auction volumes rose to their highest level in three months, according to CoreLogic, with Canberra taking the mantle of best selling capital city as cracks emerged in the traditional auction powerhouse, Melbourne.
The number of homes taken nationally to auction rose to 2,000, compared with 1,850 over the prior week.
The preliminary auction clearance rate of 70.5 per cent was up on last week’s final 68.2 percent clearance rate.
Over the corresponding weekend last year, the clearance rate was higher at 75 per cent but on less stock, as just 1,471 auctions were held.
Canberra was the weekend's strongest auction market with an 87 percent success rate.
Its top sale was a five bedroom Forrest house sold for $2.875 million.
Located at <a href="https://www.realestate.com.au/sold/property-house-act-forrest-125971866" target="_blank">27 Tasmania Circle</a>, the home was built in 2012 on its 1367 sqm block opposite historic Collins Park.
Luton Properties also sold the nation capital's cheapest offering, a two bedroom MacGregor townhouse for $345,000.
Located at <a href="https://www.realestate.com.au/sold/property-townhouse-act-macgregor-125979282" target="_blank">13/204 Macfarlane Burnet Avenue</a>, the property is currently tenanted at $360 per week.
Across Canberra a total of 57 auctions were held, compared to 69 last weekend.
Canberra’s preliminary clearance rate was well up on the 70 percent of the previous weekend.
First home buyers have surged into the ACT market in strong numbers, according to Domain's chief economist, Dr Andrew Wilson.
Adelaide had the next best success rate, with 72.9 per cent of the 59 reported results sold.
It was a big improvement over the previous week’s 63 percent clearance rate and the 68.8 per cent one year ago.
Adelaide's offering ranged between an uninhabitable four bedroom house at <a href="https://www.realestate.com.au/property-house-sa-ingle+farm-123655150" target="_blank">29 Aranga Avenue</a>, Ingle Farm sold for $297,000 by the mortgagee and a $1.37 million sale of a four bedroom <a href="https://www.realestate.com.au/property-house-sa-campbelltown-125928814" target="_blank">Maynard Avenue</a>, Campbelltown house sold for $1.37 million.
With a 72 percent success rate, Sydney was next strongest narrowing pipping Melbourne’s preliminary clearance rate of 71 per cent.
"Melbourne has remained the stronger performer for many weeks, but it was possible that Melbourne’s final clearance rate could drop below the 70 per cent mark for the first time since July last year," CoreLogic's auction analyst Kevin Brogan suggested.
Domain's chief economist, Dr Andrew Wilson noted Melbourne was being "weighed down" by a surge in pre-spring listings after an unusually hot winter market.
The Melbourne clearance rate was down from last week’s final clearance rate of 73.9 per cent and lower the clearance rate for the city one year ago (78.9 per cent).
Melbourne was host to 948 auctions, higher than the 911 held last week, and substantially higher than a year ago when there were 605 Melbourne auctions held over the week.
Of the nine Melbourne sub-regions, the strongest performer, in terms of clearance rate was the North East with a 78.6 per cent success rate.
Sydney’s preliminary clearance rate this week was 72 per cent across 625 notified auction results from a total of 782 auctions held across the city.
"Looking back at this weekend last year, 635 auctions were held across Sydney and a clearance rate of 78.3 per cent was recorded," Brogan noted. 
An $8 harbour front at Longueville was the nation's most expensive weekend auction sale.
Built in 1970, the five bedroom property was last sold in 2006 for $5 million.
It features a split level design on its 1277 sq m block at <a href="https://www.realestate.com.au/property-house-nsw-longueville-125980638" target="_blank">40A Mary Street</a>.
The offering through McGrath Estate Agents came with pool, jetty, boatshed and deep mooring.
Melbourne's top two sales were development sites including a Camberwell site sold at $5.01 million.
Located at <a href="https://www.realestate.com.au/sold/property-house-vic-camberwell-125960974" target="_blank">5-7 Braeside Avenue</a>, the 1550 sqm site came with townhouse plans by Alta Architecture.
The property, approved for eight homes, sold through Marshall White.
The next top price was at Port Melbourne with a site fetching $4.75 million.
The Chapman Memorial Hall sits on a <a href="https://www.realestate.com.au/sold/property-other-vic-port+melbourne-126067106" target="_blank">711 sqm Ross Street site</a>.
An art deco Prahran house sold for $4.2 million. <a href="https://www.realestate.com.au/sold/property-house-vic-prahran-125959154" target="_blank">The Linden Court</a> home sold at $2,535,000 in 2011. 
A 1933 six bedroom Toorak home at <a href="https://www.realestate.com.au/property-house-vic-toorak-125941454" target="_blank">3 Myrnong Crescent</a> was passed in on a vendor bid of $7 million.   
Brisbane was host to 100 auctions with the 63 results reported, recording a preliminary clearance rate of 54 per cent.
Last week, auction volumes across the city were higher with 156 auctions held across the city and a 48.7 per cent clearance rate.
Brisbane cheapest result was a three bedroom Darra townhouse at $316,000.
Located at <a href="https://www.realestate.com.au/property-townhouse-qld-darra-125972834" target="_blank">102/35 Ashridge Road</a>, the property was marketed by Ray White as ideal for savvy investors with its likely rent estimated to be $370 to $390 per week.
In Perth, 32 auctions took place with 10 results reported so far.
Perth’s preliminary clearance rate was 40 per cent.
 
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Cracks emerge in oversupplied Melbourne August auction market

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While on the subject of dwelling price indices, CoreLogic's index results to 31 July showed capital growth across the combined capital cities of +10.5 per cent over the year to July. 
The quarterly price increased across the capital cities slowed to +2.2 per cent in July, down from a pacy +3.6 per cent in February.
Sydney houses (+12.3 per cent) and units (+10.3 per cent) have continued to be strong performers over the year to July 2017.
Growth in Melbourne house prices has accelerated to a thumping +17.2 per cent, although unit prices (+4.6 per cent) have lagged.  
Overall, this helped to take the median capital city dwelling price to a new high of $625,000.
The rest of state figures increased by +5.4 per cent over the year to July, to $382,500.
<a href="https://www.propertyobserver.com.au/images/2017/08/07/CL.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/08/07/CL.jpg" alt="">
 
Rental price growth returns
CoreLogic's quarterly showed a return to annual rental price growth, following a crackdown on lending to investors. 
<a href="https://www.propertyobserver.com.au/images/2017/08/07/DGF71qyUMAATak6.jpg-large.jpeg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/08/07/DGF71qyUMAATak6.jpg-large.jpeg" alt="">
 
The rental price growth was driven by Sydney, (+4.5 per cent) Melbourne (+4.1 per cent), Hobart (+6.2 per cent), and Canberra (+8.4 per cent).
These rental price gains were offset by declines in Darwin and Perth.
Perth levelling out
CoreLogic noted that Perth appears to be approaching the bottom of its market cycle, with prices easing by -0.3 per cent over the three months to July. 
Prices in the Western Australian capital have declined by -10.2 per cent since the market peak in 2014.
Transaction volumes in Perth have also found a floor at 2,500 per month, while listing numbers have also declined.
The "mining cliff" has now been effectively seen off<a href="https://petewargent.blogspot.com.au/2017/06/mining-cliff-seen-off">,</a> too.
These are positive numbers, though I do note that my dwelling supply dashboard implies that there will yet be a lot of new dwellings to be absorbed!
 
PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.
His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank">Four Green Houses and a Red Hotel</a>.
 
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pwargent-M4siyDbqQY

Is the Perth property market finding a floor?

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My housing supply dashboard showed how dwelling completions have been tracking well ahead of population growth in Western Australia. 
And now SQM Research has reported that vacancy rates in Perth rose again to 5 per cent in June, in turn suggesting that Perth's property downturn still has a way to run.
Indeed, vacancy rates edged higher in most cities in June, Adelaide and Darwin excepted.
<div id="post-body-1509958214451859734" class="post-body entry-content">
<div> <a href="https://www.propertyobserver.com.au/images/2017/07/20/B1.jpg" target="_blank">Click to enlarge</a>
</div>
<div> </div>
<div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/07/20/B1.jpg" alt=""></div>
 <div>The below chart smooths vacancy rates on a 6mMA basis. </div>
<div> </div>
<div>While not a true reflection of 'trend', since it doesn't account for the higher vacancy rates typically experienced over the Christmas period, it does show that Perth and Darwin have experienced consistently elevated vacancies since the peak of the resources construction boom. </div>
<div> </div>
<div><a href="https://www.propertyobserver.com.au/images/2017/07/20/b2.jpg" target="_blank">Click to enlarge</a></div>
 <div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/07/20/b2.jpg" alt=""></div>
 <div>Asking rents for houses in Perth have declined by 6 per cent over the past year, while in Darwin the equivalent figure is as high as 11 per cent. </div>
<div> </div>
<div>Record apartment completions have taken some heat out of asking rents in Sydney and Melbourne -with Melbourne vacancy rates bouncing off 7-year lows - though apartment rents remain higher year-on-year in both of the most populous capital cities by 3 per cent and 6 per cent respectively.</div>
<div> </div>
<div>The average asking rent for a 3-bedroom house in Sydney is now $725/week, and for units the figure is $522/week.</div>
<div> </div>
<div>Vacancy rates remain tight in Canberra at 1.2 per cent, and extremely tight in Hobart at 0.7 per cent, leading to soaring rents for houses in the Tasmanian capital.</div>
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PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.
His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank">Four Green Houses and a Red Hotel</a>.
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Perth, Darwin rents still falling

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The Canberra market continues to look stronger and is rising as Sydney is fading.
The ACT took some time to join the party, and its conditions remain somewhat less than a “boom”, but are becoming increasingly buoyant.  All indicators - sales activity, price growth, rental growth and vacancies - indicate a market that’s trending upwards.
Having previously been hampered by downsizing in the public service and a unit oversupply, the Canberra showed signs of rising in 2014, when total residential sales increased to 9,200 from 8,590 the year before. Sales rose further to 9,829 in 2015 and the market has remained busy ever since.
Total residential sales volumes have been rising over the past two years. In 2012, 2013 and most of 2014, every quarter recorded residential sales below 2,300 - but since late 2014 most quarters have been above 2,400 sales.
This has occurred on the back of an improving economy (recently ranked No.2 in the nation behind NSW by CommSec), low unemployment and high average incomes.
The greatest strength has been in the housing market, with sales activity in the apartment market falling away last year.
As a result, the most positive statistics on prices and rents are being seen in the housing market, and much less so in the apartment market.
The latest figures from SQM Research suggest a 13 percent annual rise in house prices and a 4 percent rise of units. CoreLogic’s latest data says houses are up 10 percent and units 7 percent.
The Canberra figures for house price growth are bettered only by Melbourne and Sydney.
The national capital is also the national leader on rental growth, helped by very low vacancy rates. Both SQM and Domain suggest vacancies are consistently around 1percent (only Hobart is lower among the capital cities).
SQM says rents are up 7 percent for houses and 2 percent for units, while Domain reports 6 percent growth for houses and 5 percent for units.
Median rental yields are 4.1 percent for houses (compared to 2.8 percent in Sydney and 2.6 percent in Melbourne) and 5.1 percent for apartments.
Overall, as I have often commented, the standout characteristic of Canberra is the steadiness of its performance. I sometimes refer to it as the Goldilocks of Australian real estate: not too hot, not too cold, just right.
That, plus the low vacancies and the growth numbers now emerging, make the national capital increasingly appealing for investors.
Another predictable factor in the ACT market is the predominance of the northern part of the city in terms of growth markets.
While there are now growth suburbs across the Canberra metropolitan area, the strongest precincts once again are the Belconnen and Gungahlin districts in the north.
In the latest Hotspotting research for The Price Predictor Index, we have identified 18 Canberra suburbs with rising markets and nine of those are in the Belconnen and Gungahlin areas.
Belconnen (six growth suburbs) has taken over from Gungahlin (three) as the clear market leader.
Suburbs with rising markets in the Belconnen District include Flynn, Bruce, Florey, Holt, Macgregor and Evatt. Bruce, where house sales have risen from 38 to 41 to 44 to 54 in the past four consecutive quarters, is typical of the suburbs that are rising.
There are growth markets elsewhere as well, including in the Tuggeranong and Inner South precincts of the city. 
Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="mailto:%20%3Cscript%20type='text/javascript'%3E%20%3C!--%20var%20prefix%20=%20'ma'%20+%20'il'%20+%20'to';%20var%20path%20=%20'hr'%20+%20'ef'%20+%20'=';%20var%20addy38821%20=%20'ryder'%20+%20'@';%20addy38821%20=%20addy38821%20+%20'hotspotting'%20+%20'.'%20+%20'com'%20+%20'.'%20+%20'au';%20document.write('%3Ca%20'%20+%20path%20+%20'/''%20+%20prefix%20+%20':'%20+%20addy38821%20+%20'/'%3E');%20document.write(addy38821);%20document.write('%3C//a%3E');%20//--%3E/n%20%3C/script%3E%3Cscript%20type='text/javascript'" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a>
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