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<a href="https://www.apartments.com.au/developers/doma-group">DOMA Group</a> has unveiled plans for Newcastle Quay, a major waterfront precinct set to reshape Newcastle’s harbourfront and further cement the city’s evolution into one of Australia’s fastest-growing urban destinations.

Positioned on a prominent site within the Honeysuckle Precinct, Newcastle Quay will span both sides of Honeysuckle Drive, connecting directly to the Foreshore Promenade and sitting within walking distance of Newcastle Interchange.

The mixed-use precinct is planned to include around 1,000 apartments, more than 28,000 sqm of commercial office space, 6,000 sqm of retail, and a 180-room hotel anchored by a 500-seat conference and exhibition centre, a move expected to significantly lift Newcastle’s ability to attract major business and tourism events.
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<img alt="DOMA Group unveil Newcastle’s future with transformative Newcastle Quay Precinct" data-entity-type="file" data-entity-uuid="0642ca09-67cc-4920-8a7e-d18df9729b4e" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/%3D.png?VersionId=CnDmZxQnOV5LN0ePu7jaFBXC9tPGTrWm" />

The proposal builds on DOMA’s growing Newcastle pipeline, where the developer has already delivered 866 apartments and more than 19,000 sqm of commercial and retail space since entering the market in 2013. A further $2 billion pipeline is also in the works across the city.

The masterplan and executive architecture are led by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, with building concepts developed alongside Stewart Architecture, Architecture AND and Curious Practice, and landscape design by <a href="https://www.apartments.com.au/landscape-architect/turf-design">Turf Design Studio</a>. More than 11,000 sqm of open space is planned, including a new waterfront park known as Honeysuckle Green, upgrades to Tree of Knowledge Park, and new pedestrian and cycling links throughout the precinct.

At the centre of the development will be the heritage-listed Wickham School of Arts, which DOMA plans to reposition as the civic and cultural heart of the precinct through restaurants, bars, events and public gathering spaces.

The broader vision is to create a genuine day-to-night precinct, blending residential, hospitality, retail, commercial and cultural uses in a way Newcastle has yet to experience at this scale.

DOMA Group Managing Director Jure Domazet said the aim was to create a precinct that becomes synonymous with Newcastle itself.

“Our vision is to create a precinct that not only delivers high-quality commercial, residential, and cultural spaces, but also defines Newcastle’s waterfront for generations to come,” Domazet said.

DOMA’s Chris Farrington said the project would fundamentally change how Newcastle is perceived nationally.

“Newcastle Quay is more than a waterfront precinct, it is a national announcement for this city,” Farrington said.

“A world-class Conference and Exhibition Centre will open Newcastle and the Hunter Region to a national and international audience for the first time, delivering something this city has long deserved.”

The project is expected to generate more than 4,000 full-time equivalent jobs and act as a major economic driver for the Hunter region through tourism, business events, hospitality and commercial investment.

&nbsp;

&nbsp;

Minister for Planning and Public Spaces Paul Scully said the final parcel of harbourfront land will be a "true mixed-use precinct destination that includes housing, hospitality and entertainment, commercial spaces, retail, economic and social outcomes."

Joel Robinson

DOMA Group unveils 1,000-apartment Newcastle Quay precinct

ASX-listed developer Stockland is continuing to ramp up its return to the apartment market.

In late 2024, <a href="https://www.apartments.com.au/developers/stockland">Stockland</a> announced it would resume apartment development after a 13-year absence, launching with Stanton Place in Rosebery, a 144-apartment project now under construction.

Last week, the developer unveiled plans alongside the NSW Government for a <a href="https://www.apartments.com.au/news/nsw/first-look-stockland-nsw-gov-unveils-plans-for-3-300-home-waterloo-south-renewal">3,300-home precinct in Waterloo</a>.

Now, Stockland has shifted its focus in St Leonards, lodging a State Significant Development Application (SSDA) to replace an approved 42-storey office tower with a 52-storey residential development comprising more than 500 apartments.

<img alt="Stockland" data-entity-type="file" data-entity-uuid="8979095e-9072-432b-a7da-58b180cf994d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-20%20at%204.27.36%E2%80%AFPM.png?VersionId=_jbRXYOafCSHjwsz.yQCNIymMyCj8zkF" />

An existing 14-storey commercial office building would make way for a 264.5-metre tower designed by <a href="https://www.apartments.com.au/architects/bates-smart">Bates Smart</a>. The project would deliver 538 apartments, including 30 affordable housing units, alongside retail and commercial uses at the podium and ground plane.

It will rise from&nbsp;<a href="https://www.apartments.com.au/new-apartments/601-pacific-highway-st-leonards-nsw-2065">601 Pacific Highway</a>, a prominent 2,844 sqm triangular site adjoining Mitchell Plaza and fronting Pacific Highway.

The development is being pursued under the Housing Delivery Authority pathway after Stockland’s proposal was declared State Significant Development earlier this year.

<img alt="First look: Stockland plans 52-storey mixed-use tower with 538 apartments in St Leonards" data-entity-type="file" data-entity-uuid="67f40f35-0458-47ab-80c0-a4e98a31838a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/stockland%201.png?VersionId=rxXe3njr.auuGDuiR0k42uI8Zr4K.gZA" />

The apartment mix includes 217 one-bedroom apartments, 191 two-bedroom apartments, 122 three-bedroom apartments, and eight four-bedroom residences. Six basement levels would accommodate 300 car spaces, bicycle parking, loading areas, and building services.

Bates Smart said the project has been shaped around a series of urban design principles intended to improve the pedestrian experience and respond to the evolving character of St Leonards.

“With a boundary length of almost 75m along Pacific Highway and 70m along Atchison Street to the north, complying simply with the LEP envelope and required setbacks would result in a very wide tower form on the skyline,” the architects noted in the Design Report.

“We propose breaking the tower form into two defined volumes rather than a singular form.”

The podium has similarly been articulated into separate forms to reduce perceived bulk and create a finer-grain response to Mitchell Plaza and Atchison Street. Retail tenancies would activate the lower levels, while commercial space is proposed across the podium floors.

<img alt="First look: Stockland plans 52-storey mixed-use tower with 538 apartments in St Leonards" data-entity-type="file" data-entity-uuid="90149990-0551-40d2-bd48-14b69a015d12" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/stockland%202.png?VersionId=MJC2KIIWFvU9FPGr3IVq09gkRN_gX3m8" />

The design also places a significant emphasis on communal amenity and environmental performance. Residents would have access to landscaped terraces, wellness areas, flexible workspaces, and rooftop communal facilities, while the all-electric building is targeting an average 7-star NatHERS rating. Bates Smart said the project incorporates passive design measures including natural ventilation, integrated shading, and lightweight façade systems.

Planning documents note the site is around 350 metres from St Leonards Station and 400 metres from the metro entrance, placing it within one of Sydney’s most connected emerging residential precincts.

The project arrives amid a wave of large-scale redevelopment proposals reshaping the St Leonards and Crows Nest skyline. Several nearby sites have recently been approved, lodged, or declared under the Housing Delivery Authority pathway as the precinct absorbs significant residential density uplift tied to transit-oriented development policies.

<img alt="Stockland" data-entity-type="file" data-entity-uuid="7805bd7c-dfd7-4b35-8e15-ec4a8bf8e61b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-20%20at%204.27.26%E2%80%AFPM.png?VersionId=iY12K2m2bQ6EeDnshqfZC9rbLx_oEugP" />

Bates Smart’s report describes St Leonards as transitioning away from its historical commercial identity toward a more mixed-use urban environment.

“In recent years, the character of St Leonards has started to evolve, driven by new development trends along the Pacific Highway corridor,” the report said.

“These projects have increasingly focused on residential accommodation, marking a shift from its purely commercial roots.”

Sekisui House Australia is currently selling Waterstone down near Newlands Park, in a pocket being branded "St Leonards South." Hyecorp recently completed Audrey in the same pocket.

First look: Stockland plans 52-storey, 538-apartment St Leonards tower

ANZ believes the Reserve Bank is in no rush to move again.

Following the release of the May Monetary Policy Board Minutes, ANZ has taken the view that the RBA is now firmly in a holding pattern, with the cumulative impact of previous rate hikes giving the Board scope to assess how the economy evolves from here.

That positioning, in ANZ’s view, makes a June rate hike unlikely.

The bank continues to expect the cash rate to remain unchanged at 4.35 per cent for an extended period, with the RBA adopting what is effectively a wait-and-see approach.

The Minutes point to a Board that sees financial conditions as already restrictive, but without a clear read on just how restrictive they are. That uncertainty has shifted the focus away from immediate policy action and toward monitoring both domestic conditions and global developments, particularly the conflict in the Middle East.

As ANZ interprets it, the Board is deliberately avoiding strong forward guidance.

Instead, it is allowing itself flexibility, acknowledging that monetary policy has limited ability to influence the near-term trajectory of inflation, while also recognising that economic growth is likely to remain below potential for some time.

Despite that pause in momentum, ANZ notes that the Board still carries a tightening bias.

The Minutes reveal that, in weighing up its decision, the Board seriously considered another 25 basis point increase. The key debate centred on the trade-off between inflation and activity, particularly in the context of global uncertainty.

Ultimately, most members leaned toward the inflation side of that equation.

Underlying inflation is still expected to remain above target for an extended period, regardless of how external risks evolve. That has led to a view within the Board that the risks to its inflation objective have increased, and that the current cash rate may not be sufficiently restrictive to fully contain those pressures.

That’s important.

While the decision, for now, is to hold, the underlying tone of the Minutes suggests the door to further tightening has not been closed.

ANZ also points to commentary from Assistant Governor (Economic) Sarah Hunter, who highlighted the risk that inflation could pass through the economy more quickly and broadly than in previous cycles. Both Hunter and a majority of the Board expressed concern that inflation expectations could become less anchored after such a prolonged period above target.

That combination, persistent inflation and the risk of expectations shifting, is what continues to underpin the RBA’s cautious stance.

However, where ANZ diverges from the RBA is on the outlook for activity.

The Board appears relatively comfortable with current spending patterns, effectively downplaying recent declines in business and consumer sentiment. It notes that sentiment has historically been only weakly correlated with actual spending, and that feedback from its liaison program has not yet pointed to a meaningful slowdown in consumption.

ANZ is less convinced.

The bank believes the link between household disposable income, sentiment and spending is more direct than the RBA is currently acknowledging. With inflation continuing to erode real incomes, ANZ expects household spending to soften more materially than the central bank is forecasting.

That divergence matters because it shifts the balance of risk.

If activity weakens more than expected, the trade-off between inflation and growth changes. In ANZ’s view, that would reduce the need for further tightening and reinforce the case for the RBA to remain on hold.

It also suggests that the current policy setting may already be doing more work than the Board fully appreciates.

The broader takeaway from ANZ’s interpretation is that the RBA is walking a narrow path.

On one side sits the risk of inflation remaining elevated for longer than expected. On the other is the growing pressure on households and the potential for a sharper slowdown in activity.

For now, the Board is choosing to wait.

But it is a pause that still carries an underlying tightening bias, rather than a clear pivot toward easing.

In practical terms, that leaves the cash rate anchored at 4.35 per cent for the foreseeable future, with the next move still uncertain.

For borrowers, it reinforces the reality that relief is not imminent.

And for the broader economy, it highlights the delicate balance the RBA is trying to strike, between bringing inflation back to target and avoiding an unnecessarily sharp slowdown in growth.

According to ANZ, it is a balance that is becoming increasingly difficult to maintain.

RBA to hold rates for "prolonged period" rather than hikes: ANZ

<a href="https://www.apartments.com.au/developers/venturecrowd-property-projects">VentureCrowd</a> is down to the final Canopy Villa release at Cumulus Grand Villas in Carrara, as construction continues on the 59-residence gated community positioned above 100 hectares of natural savanna on the Gold Coast.

The remaining Canopy Villa forms part of one of four collections within the <a href="https://www.apartments.com.au/architects/bda-architecture">BDA Architecture</a>-designed community and has attracted interest from buyers seeking larger-format homes that combine privacy, security and low-maintenance living. Positioned within a private cul-de-sac and facing a protected black she oak forest, the four-bedroom villa includes a large private outdoor area suited to pet owners and families wanting more flexible space.

<a href="https://www.apartments.com.au/new-townhouses/cumulus-grand-villas-carrara-17-baltimore-court-carrara-qld-4211">Cumulus Grand Villas</a>, located at 17 Baltimore Court, comprises a mix of three and four-bedroom villas across the Skyline, Canopy, Savanna and Broadview collections. Prices currently range from $1.455 million to $1.895 million, with the final Canopy Villa priced from $1.825 million.

[smartcode_project:default project_id=135663 project_image_fid=360477]

The Canopy Collection villas offer four bedrooms, 2.5 bathrooms and approximately 245 sqm of internal space, alongside double garages and landscaped private areas. Expansive glazing, open-plan living spaces and private balconies have been designed to maximise natural light and outlooks toward the surrounding savanna landscape.

Construction is now underway across the fully funded development, which VentureCrowd says has become an increasingly important consideration for buyers assessing off-the-plan opportunities on the Gold Coast. The project is being delivered by <a href="https://www.apartments.com.au/builders/devcon">Devcon Property Group</a>, which has operated in South East Queensland since 1993 and delivered more than 1,000 homes across the region.

VentureCrowd Director of Property David Whitting previously said the project responds to changing buyer priorities in the prestige Gold Coast market.

“Flexible floorplans have proven particularly relevant for purchasers aged between 40 and 65, including next home buyers, downsizers and investors,” Whitting said.

[smartcode_project:default project_id=135663 project_image_fid=360505]

The buyer profile at Cumulus has reflected that shift toward owner-occupier-driven demand. Stuart Towns and Tracey Loynes recently purchased a Canopy Villa, drawn to both the lifestyle offering and the flexibility the home provided for their next stage of living together.

The couple, who met three years ago, sold their Robina home earlier this year after identifying what they saw as strong long-term investment potential at Cumulus while remaining within the same Gold Coast market. The villa’s private backyard was a major drawcard for their dog Luna, while proximity to golf courses including Emerald Lakes also aligned with their lifestyle interests.

Beyond the residences themselves, the community has been planned around shared lifestyle and recreation amenities. The Infinity Terrace will include a 20-metre heated pool, barbecue facilities, alfresco dining spaces and elevated retreat areas overlooking the surrounding landscape. Walking trails, a private nature reserve, orchard and herb garden are also integrated into the masterplan.

[smartcode_project:default project_id=135663 project_image_fid=360473]

BDA Architecture Director Darren Greenaway said the design approach was heavily influenced by the site’s outlook and secluded setting.

The practice sought to create what Greenaway described as a “little piece of paradise,” drawing inspiration from the elevated views, surrounding greenery and quiet location.

<a href="https://www.apartments.com.au/developments/carrara-qld-4211">Carrara</a> continues to attract buyers seeking larger homes within proximity to the coast but without direct beachfront pricing. Cumulus sits within easy reach of Broadbeach, Pacific Fair, Robina Town Centre and the M1, providing connections north to Brisbane and south toward the Gold Coast Airport and northern New South Wales.

The first stage of Cumulus Grand Villas is targeting completion in 2026.

[smartcode_project_cta:default project_id=135663]

VentureCrowd nears sell-out of Canopy Collection at Cumulus Grand Villas in Carrara

Waverley Council has made a call that many councils have been reluctant to make publicly. Growth is coming, regardless of who controls it.

The release of the Bondi Junction Vision and Master Plan is less about whether the Eastern Suburbs’ primary centre will change, and more about how that change is shaped, funded, and ultimately experienced on the ground. Waverley Council has released a 100-page plan which is effectively the first comprehensive blueprint for Bondi Junction in over two decades, and in doing so, signals a clear shift in how councils are positioning themselves in the current planning environment.

For the past 18 months, the conversation across New South Wales has been dominated by the State Government’s Low and Mid-Rise Housing reforms and the emergence of the Housing Delivery Authority pathway. Both have created faster, more centralised avenues for development approvals, particularly in well-located, infrastructure-rich areas like Bondi Junction.

Waverley Council’s response has been to move early, and decisively.

Rather than react to individual proposals as they come through the HDA or broader State-led reforms, Council has sought to establish a clear, place-based framework that sets the terms for how Bondi Junction evolves. The underlying position is relatively straightforward: if densification is inevitable, it should be tied to infrastructure, public domain improvements, and a cohesive vision for the centre, not delivered piecemeal through ad hoc applications.

<img alt="bondi junction" data-entity-type="file" data-entity-uuid="7f1f729c-ed99-4c6c-bf87-ffbce6991941" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-19%20at%209.58.16%E2%80%AFAM.png?VersionId=ULX4OlXKjeJ5BvNCNGL86evgXCjCfMih" />

At its core, the document is attempting to reposition Bondi Junction from what it largely functions as today, a transport interchange anchored by a major retail centre, into something far more layered. The ambition is to transform it into what the plan describes as the “civic and cultural heart of Sydney’s East,” a place that is active beyond commuting hours and capable of supporting a broader mix of uses, experiences and communities.

That repositioning is built around four key ambitions.

The first is to create a true destination. Bondi Junction already attracts significant foot traffic, with more than 86,000 daily transport users and millions of annual retail visits, but much of that activity is transient. People pass through, rather than stay.

The Master Plan seeks to change that dynamic. It leans heavily into the idea of an “18-hour economy,” extending activity well beyond traditional retail hours through dining, cultural programming, events, and a more active night-time offering. This is not just about adding more hospitality venues, but about fundamentally shifting how the centre operates, from a daytime shopping destination to a place that functions across the full span of the day and into the evening.

Oxford Street Mall sits at the centre of that shift.

Long seen as underperforming relative to its potential, the Mall is identified as one of the key catalyst projects in the plan. It is to be reimagined as a day-to-night spine, combining retail, dining, wellness and cultural uses in a way that creates a continuous flow of activity. Outdoor dining, rooftop venues, laneway activation and a curated events program are all part of the strategy, alongside significant public domain upgrades that aim to improve comfort, safety and usability.

&nbsp;

The second ambition is to transform Bondi Junction into a world-class interchange.

Despite being one of the most heavily used transport nodes in Sydney, the current experience is fragmented. Connections between the station, Westfield, Oxford Street Mall and surrounding streets are often unclear, and major roads create physical barriers that disrupt pedestrian movement.

The Master Plan proposes a more seamless, people-focused network. That includes clearer pedestrian links, improved wayfinding, better integration between transport modes, and a rethinking of how arrival into the centre is experienced. The aim is to shift the perception of Bondi Junction from a place people move through, to a place they arrive in.

The third ambition focuses on greening and open space.

One of the more consistent pieces of community feedback throughout the Vision phase was the need for more greenery, better public spaces, and a more comfortable urban environment. Despite being surrounded by major parks, Bondi Junction itself has relatively limited accessible open space, with much of the public realm dominated by hard surfaces and traffic infrastructure.

The plan responds with a network of new and upgraded public spaces, increased tree canopy, and what it terms the “Parkline,” a green link connecting Waverley Park through to Centennial Park. This is not just about aesthetics. It is about addressing heat, improving liveability, and ensuring that increased density is matched by access to high-quality outdoor space.

The fourth ambition is perhaps the most important from a development perspective: growth that gives back.

Bondi Junction is already the primary location for new housing supply in the Waverley LGA, and that is expected to continue. The area carries a target of 2,400 new dwellings by 2029, with further growth projected beyond that as demand for well-located housing continues to rise. The Master Plan does not seek to limit that growth. Instead, it attempts to shape it.

New housing is to be concentrated around transport, with stepped building heights designed to protect the character of surrounding neighbourhoods. At the same time, the plan introduces a more explicit link between development uplift and public benefit. This is where value capture becomes central.

The document outlines a framework where increased development potential is tied to contributions that fund public domain improvements, community infrastructure, open space, and affordable housing. It is an approach that recognises that much of the transformation of Bondi Junction will be delivered by the private sector, but seeks to ensure that the benefits of that growth are shared more broadly. The Civic Precinct is a key part of that equation.

Leveraging Council-owned land, the plan proposes a consolidated civic and cultural hub centred around Ebley Street. This would include new community facilities, cultural spaces, and potentially a new Council Chambers, creating a focal point for civic life that currently does not exist in Bondi Junction at scale.

It is one of several catalyst projects identified in the Master Plan, alongside the Oxford Street Mall transformation. These projects are intended to anchor change, acting as early interventions that unlock broader investment across the precinct.

Importantly, the Master Plan is not just a design document. It includes a delivery framework that sets out how these ambitions are intended to be realised.

Council is explicit in acknowledging that it cannot deliver the transformation alone. Implementation will require coordination between State agencies, private developers, landowners and the community, with a mix of planning agreements, infrastructure contributions and direct delivery mechanisms used to fund and stage improvements over time.

The plan outlines a mix of short-term, medium-term and long-term actions, from immediate public domain upgrades and planning controls, through to larger-scale projects that will unfold over the next decade or more. In practical terms, the next 12 to 24 months will be the most important.

This is when the Master Plan will move through exhibition, refinement and eventual adoption. It is also the period in which Council will seek to embed the framework into its planning controls, giving it weight in the assessment of future development applications.

Council officers have indicated that once the Master Plan is in place, it could be used as a benchmark when assessing Housing Delivery Authority proposals, and potentially reduce the need for further HDA declarations within Bondi Junction. In effect, it is an attempt to bring planning control back to the local level, while still aligning with State housing targets.

That tension between State-led reform and local planning control is not unique to Waverley. It is playing out across Sydney.

&nbsp;

&nbsp;

&nbsp;

If delivered as intended, Bondi Junction will become denser, more active, and more complex. It will support more residents, more workers, and a wider range of uses, extending beyond its current retail core into a more layered urban environment.

“The civic and cultural heart of Sydney’s East”: Bondi Junction masterplan revealed

Robert Larocca

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Melbourne auction volumes remain high as there are 1,137 auctions scheduled this week in Melbourne, compared to 823 at the same time last year. This will be the ninth week with more than 1,000 auctions in Melbourne.
The highest number of auctions this week is in <a href="/news">Glen Iris</a> with 24 followed by <a href="/news">Northcote</a> and <a href="/news">South Yarra</a>, both with 19.
The Melbourne auction market continues to record reasonable clearance rates in light of the very strong volumes.
Volumes in the auction market are consistent with those across the residential market which is seeing more new homes being listed and more sold. In Melbourne there are 31,604 homes listed for sale, 8.7% lower than a year ago. At the same time new listings have been consistently higher than a year ago, over the month ending 18 May there was 15.7% more new listings.
Key data
<ul>
<li>Clearance rate week ending 18 May: 68.5%</li>
<li>Melbourne auctions expected week ending 25 May: 1,137</li>
<li>Melbourne private sales time on market week ending 18 May: 40 days (houses)</li>
<li>Melbourne vendor discounting market week ending 18 May: -5.5% (houses)</li>
<li>Listings being prepared for market are 1.3% lower over the month ending 18 May (seasonally adjusted)</li>
</ul>
Source RP Data
The average number of days a house spends on the market has fallen to a new low according to the latest RP Data monthly update.
In March a house for sale by private sale in Melbourne spent 35 days on the market. As most auction selling campaigns are around 28 days, it is interesting to note that private sales are delivering, in broad terms, similarly quick sales.
This is also significant because the majority, around 69% in 2013, of Melbournians sell by private sale.
Comparing March this year with the past few years shows the change clearly, last year the time on market was 45 days, the year before that it was 57 days and in 2010, when the market last peaked, it was 38 days.
There is clearly a reflection between the strength of the market and the time it takes to sell a house.
Units are taking slightly longer; around 37 days – but this is not a significant difference and they show a similar trend over time.
On a suburban level the shortest time on market is generally found in the outer east of the city in <a href="/news">The Basin</a>, <a href="/news">Croydon South</a> and <a href="/news">Knoxfield</a>. Time on market data on a suburban level is calculated over a longer time period so fluctuates to a lessor degree but still clearly shows the areas where sales are more rapid.
<img class="aligncenter size-full wp-image-3238" src="https://blog.rpdata.com/wp-content/uploads/2014/05/Days-on-market-drops-vic-blog.jpg" alt="Days on market drops in Victoria -- RP Data" width="355" height="251">
Source: RP Data
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Days on market falls to new low: RP Data's Melbourne auction preview

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National auction market stable despite a strong rise in the number of properties taken to auction.
A preliminary auction clearance rate of 65.4% was recorded this week across capital cities compared to 65.0% last week and 67.3% this time last year.
The auction clearance rate has maintained a stable performance despite a 42% rise in the number of properties taken to auction this week and concerns the federal budget may have a negative impact on buyer demand.
<a href="https://blog.rpdata.com/wp-content/uploads/2014/05/20140518-Capital-city.jpg" target="_blank"><img class="aligncenter size-large wp-image-3246" src="https://blog.rpdata.com/wp-content/uploads/2014/05/20140518-Capital-city-580x429.jpg" alt="Capital City auction results: 19 May 2014" width="580" height="429"></a>
In the Sydney market a weaker preliminary clearance rate of 70.9% was recorded compared to 73.3% last week highlighting improving conditions for buyers.
<a href="https://blog.rpdata.com/wp-content/uploads/2014/05/20140518-Sydney.jpg" target="_blank"><img class="aligncenter size-large wp-image-3242" src="https://blog.rpdata.com/wp-content/uploads/2014/05/20140518-Sydney-580x382.jpg" alt="Sydney auction results: 19 May 2014" width="580" height="382"></a>
In Melbourne a preliminary clearance rate of 64.5% was recorded compared to 61.9% last week. Auction numbers rose steeply this week and it is significant that the clearance rate didn’t drop below the lows of the last fortnight.
<a href="https://blog.rpdata.com/wp-content/uploads/2014/05/20140518-Melbourne.jpg" target="_blank"><img class="aligncenter size-large wp-image-3243" src="https://blog.rpdata.com/wp-content/uploads/2014/05/20140518-Melbourne-580x377.jpg" alt="Melbourne auction results: 19 May 2014" width="580" height="377"></a>
In Brisbane a preliminary clearance rate of 49.5% was recorded compared to 46.7% last week. Adelaide recorded a clearance rate of 65.5% compared to 62.3% last week. In Canberra a clearance rate of 52.6% was recorded and in Perth there were eight auction sales from 17 results. In Tasmania there was two sales from five results.
<a href="https://blog.rpdata.com/wp-content/uploads/2014/05/20140518-Brisbane.jpg" target="_blank"><img class="aligncenter size-large wp-image-3245" src="https://blog.rpdata.com/wp-content/uploads/2014/05/20140518-Brisbane-580x377.jpg" alt="Brisbane auction results: 19 May 2014Brisbane" width="580" height="377"></a>
 
<a href="https://blog.rpdata.com/wp-content/uploads/2014/05/20140518-Adelaide.jpg" rel="wp-prettyPhoto[g3240]"><img class="aligncenter size-large wp-image-3247" src="https://blog.rpdata.com/wp-content/uploads/2014/05/20140518-Adelaide-580x385.jpg" alt="Adelaide auction results: 19 May 2014" width="580" height="385"></a>
 
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Market stabilises despite rise in volume: RP Data's national auction market wrap

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In recent times the market for houses in Melbourne has outperformed, in terms of value growth, the unit market.
In many respects this is due to increased supply and it also signifies a broader structural change in the market.
According to the latest <a href="https://www.rpdata.com/research/pace-of-capital-gains-cools-in-april" target="_blank" title="Read this month's RP Data-Rismark Home Value Indices results">RP Data Rismark Home Value Index April results</a>, the value of houses grew by 12.2% over the last year and by 5.4% over the first four months of this year. In comparison, the value of units has grown by 6.8% over the last year and by 0.9% this year.
A review of data over the medium term shows that houses have consistently outperformed units in terms of value growth over time.
In April the value of a unit was 70% that of a house. A year ago unit values were 74% that of houses and five years ago it was 75%. Interestingly when the index commenced in 1995 unit values were 88% of a house. Over that time unit sales as a proportion of all sales in Melbourne have risen from 28% to 34%.
Houses have recorded stronger levels of value growth than units and as a result are becoming comparatively more expensive than units.
The change in values and sales numbers is a reflection of a broad structural change in the Melbourne housing market. Over the past decade the number of medium and high density dwellings has grown as a consequence of planning policies, demand from buyers and affordability issues.
As Melbourne continues to grow and requires more dwellings, the most efficient way to supply these new dwellings is through higher density homes. 
The majority of dwelling approvals in Melbourne are now for units as opposed to detached houses and state governments’ over the last decade have made it clear that in order to cater to the city’s growing population there will be more higher density housing.
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The growing gap in the Melbourne market

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There are 979 auctions scheduled this weekend in Melbourne compared to 738 for the same time last year.
Conditions in the Melbourne auction market continue to be relatively cool. The clearance rate has exceeded 70% only twice so far in 2014 and has been slowly drifting down since that time.
As conditions are shifting in favour of buyers at auction the significant lift in volumes this week will prove to be a challenge for the market.
Conditions in the private sale market remain tight with the latest time on market monthly data  showing a new low for houses. In March the days on market for houses dropped to 35, the lowest on record. Time on market for units reached 37 days highlighting softer conditions in the higher density market as this is higher than the record low of 32 days in May 2010.
Key data
<ul>
<li>Preliminary clearance rate week ending 11 May: 61.9%</li>
<li>Melbourne auctions expected week ending 18 May: 979</li>
<li>Melbourne private sales time on market week ending 11 May: 38 days (houses)</li>
<li>Melbourne vendor discounting market week ending 11 May: -5.5% (houses)</li>
<li>Listings being prepared for market are 2.5% higher in month ending 11 May (seasonally adjusted)</li>
</ul>
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Market continues to cool: RP Data's Melbourne auction preview

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The preliminary auction clearance rate of 67.4% was recorded this week across capital cities compared to 62.3% last week and 65.6% this time last year.
<img src="/images/2014/05/12/larocca%20may%2012%20one.jpg" alt="">
Volumes have been lower this week as the market heads into a traditionally quieter time in winter.
The higher clearance rate is largely a factor of a stronger Sydney market where a preliminary clearance rate 76.1% was recorded compared to 71.4% last week.
<img src="/images/2014/05/12/larocca%20may%2012%20two.jpg" alt="">
The higher national clearance rate does not represent a significant shift in the market and is broadly in line with the trend this year, particularly with the results prior to Easter and Anzac Day.
In Melbourne a preliminary clearance rate of 63.4% was recorded compared to 61.9% last week. Last week’s Melbourne clearance rate was the lowest since late 2012 and is running counter to the established trend through the last year and also reflects moderating growth in property values.
<img src="/images/2014/05/12/larocca%20may%2012%20three.jpg" alt="">
In Brisbane a preliminary clearance rate of 54.8% was recorded compared to 42.4% last week. Adelaide recorded a clearance rate of 60.5% compared to 62.7% last week.
In Canberra a clearance rate of 58.8% was recorded and in Perth there was one auction sale from eight results. In Tasmania there was two sales from three results.
<img src="/images/2014/05/12/larocca%20may%2012%20four.jpg" alt="">
<img src="/images/2014/05/12/larocca%20may%2012%20five.jpg" alt="">
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Auctions volumes trending lower: RP Data's national auction market wrap

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There are 643 auctions scheduled this week in Melbourne compared to 807 this weekend last year. This is a 20% reduction and reflects the record seven weekends with over 1,000 auctions already held.
Last weekends clearance rate was the lowest since late December in 2012.
The most popular areas for auctions this weekend are in the inner north where there are 10 in both Pascoe Vale and Preston.
Melbourne is currently returning a below average clearance rate when compared to the market nationally and that should translate into better conditions for buyers over the next few months. The lower clearance rate should also indicate to vendors with an auction in the next month the importance of taking current market conditions into account when setting a selling price.
Conditions eased slightly in the private sale market with time on market for houses stable at 33 days and vendor discounting still stable at -5.6%. The lowest vendor discount on a suburban basis is in Armadale for units at -2.6% followed by houses in Vermont at -2.7% and houses in Bayswater South at -3%.
Key data
<ul>
<li>Clearance rate week ending 4 May: 61.9% 
</li>
<li>Melbourne auctions expected week ending 11 May: 643 
</li>
<li>Melbourne private sales time on market week ending 4 May: 35 days (houses) 
</li>
<li>Melbourne vendor discounting market week ending 4 May: -5.6% (houses) 
</li>
<li>Listings being prepared for market are 7.5% higher in month ending 4 May (seasonally adjusted)</li>
</ul>
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Falling clearance rates translate to better buyer conditions: RP Data's Melbourne auction preview

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A unique and interesting feature of the current housing market in Victoria is not only a rise in investor activity, but the falling numbers of first home buyers.
It may be easy to draw the conclusion that investors have forced first home buyers out of the market, however, this is not supported by the data available from the Australian Bureau of Statistics (ABS) data, rather it indicates a rise in the overall share of all non first home buyers.
Analysis of data from the ABS shows that the market share of local investors has been cyclical over the past decade.
In the most recent twelve months investors represented 36.1% of the total value of loans in Victoria compared to 34% in the preceding twelve months. In the twelve months ending Feb 2011 – the last rising cycle – the proportion was 37%. A similar rise was also evident in 2007 suggesting that as the market strengthens so too does the level of investor activity rise.
Unlike investors, the numbers of first home buyers have shrunk to record lows.
<blockquote>
Unlike investors, the numbers of first home buyers have shrunk to record lows.
</blockquote>
In February there were 1,402 dwellings financed for first home buyers in Victoria, a mere 11.7% of the entire number financed. This was lower than in January when they represented 12.7% of the market. In raw terms, this is the lowest since July 1991 when the population of Victoria was also 31% lower than it is today. More first home buyers are staying in rented accommodation or with family.
During the last rising cycle, in 2010, there were a higher proportion of both first home buyers and investors. When home values last peaked, in October of 2010, the proportion of first home buyers was 18.2%. Over that year investors were 37% of the market in value terms.
If first home buyers were being forced out by investors you would expect there to be a lower proportion in 2010 and 2007, yet this was not the case. Other factors have also changed for first home buyers including the levels of financial assistance. The state government now provides up front financial assistance for new homes only unlike in 2007 and 2010 when it was also available for established homes.
And as prices are comparable in real terms with late 2010, there are clearly reasons other than investor activity for first home buyers now being such a small portion of the market.
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Investors up, first home buyers down in the Melbourne market

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There are 851 auctions scheduled this week in Melbourne compared to 822 this weekend last year.
It’s interesting to note that the suburbs which have had the highest volume of houses for sale as a proportion of the total number of homes over the past year, are found in the Mornington Peninsula.
<a href="/news">Mount Eliza</a> had 8.6% of its housing stock on the market followed by 7.9% in <a href="/news">Mount Martha</a> and in <a href="/news">Safety Beach</a>. At the other end of the spectrum is the highly sought after <a href="/news">Fitzroy North</a> where a mere 2.6% of houses were on the market. Given the high demand in Fitzroy North there is no doubt that if more homes were on the market they would find sellers.
Conditions remain tight in the private sale market with time on market for houses stable at 33 days and vendor discounting also stable at -5.6%.
Key data
Preliminary clearance rate week ending 20 April: 63%
<ul>
<li>Melbourne auctions expected week ending 4 May: 851 
</li>
<li>Melbourne private sales time on market week ending 27 April: 33 days (houses) 
</li>
<li>Melbourne vendor discounting market week ending 27 April: -5.6% (houses) 
</li>
<li>Listings being prepared for market are 13.5% higher in month ending 27 April (seasonally adjusted)</li>
</ul>
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Highest proportion of homes for sale this year in Mornington Peninsula: RP Data's Melbourne auction preview

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Melbourne house values recorded a very minor reduction in April with the <a href="https://image.e.rpdata.com/lib/fe591570776d03757d17/m/6/2014-05-01--rpdata-rismark-home-value-index.pdf" target="_blank">latest RP Data Rismark Index results</a> showing a change of -0.4%.
Over the last three months they have recorded a 1.7% rise and in the last 12 months there has been a 12.2% rise. The median house price based on settled sales over the last three months is was $615,000.
The underlying health of the market is shown by the fact that over the last year only one capital city, Sydney, has recorded a greater rise in house values. At the same time the result should allay concerns that Melbourne was moving into a period of rapid and unsustainable property price growth.
There is now a significant gap between units and houses.  Unit values recorded a change of -1.6% in April, over the last three months they have risen 0.7% and in the past 12 months the rise is just over half that of houses at 6.8%.
Demand in the auction market also fell with a clearance rate in April of 63.8% from 3,176 auctions in Melbourne. In March, which was a record month in terms of volumes, the clearance rate was 69.9% from 5,322 auctions.
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Melbourne home values record small drop in April

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In March 2009, the median advertised rent for a house in Melbourne was $379 per week compared to $442 this year.
This has equated to a rise of 16.6% over five years. Surprisingly there are a number of suburbs where renters have not faced comparable rises and there are even some suburbs where rents have actually dropped.
Three of the four suburbs where rents have fallen are growth suburbs; Doreen, Mernda and Sandhurst. These suburbs are unique cases as the supply of homes is very strong resulting in distortion in the data compared to more established areas.  In this case it has resulted in reductions in the advertised rent.
Advertised rents in Doreen have dropped by 6.4% over five years, similar to nearby Mernda which recorded a fall of 5.9%. Sandhurst rents dropped by 2.6%.
Rents have also fallen in Ormond and barely changed in Toorak; both suburbs have comparatively expensive houses and this highlights a trend of poor growth in rents in expensive suburbs.
With very low yields in the more expensive suburbs investors are more motivated by the strong capital growth that can be found and renters in this price bracket are clearly in a very different market to the majority of renters in Melbourne.
Other similar suburbs in the top 20 for low rental growth are Canterbury, Wonga Park, Caulfield, Ashburton and Hawthorn East.
This highlights that by targeting certain areas renters can find homes where rents do not continually rise.
<table style="width: 460px;" border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="bottom" width="139">
Suburb
</td>
<td valign="bottom" width="129">
Change in advertised rents in five years - Houses
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="139">
<a href="/news">DOREEN</a>
</td>
<td valign="bottom" nowrap width="129">
-6.4%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="139">
<a href="/news">MERNDA</a>
</td>
<td valign="bottom" nowrap width="129">
-5.9%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="139">
<a href="/news">SANDHURST</a>
</td>
<td valign="bottom" nowrap width="129">
-2.6%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="139">
<a href="/news">ORMOND</a>
</td>
<td valign="bottom" nowrap width="129">
-2.0%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="139">
<a href="/news">TOORAK</a>
</td>
<td valign="bottom" nowrap width="129">
0.3%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="139">
<a href="/news">ELTHAM NORTH</a>
</td>
<td valign="bottom" nowrap width="129">
0.5%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="139">
<a href="/news">CANTERBURY</a>
</td>
<td valign="bottom" nowrap width="129">
0.9%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="139">
<a href="/news">DANDENONG SOUTH</a>
</td>
<td valign="bottom" nowrap width="129">
1.7%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="139">
<a href="/news">WONGA PARK</a>
</td>
<td valign="bottom" nowrap width="129">
1.8%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="139">
<a href="/news">BLACKBURN</a>
</td>
<td valign="bottom" nowrap width="129">
2.6%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="139">
<a href="/news">CAULFIELD</a>
</td>
<td valign="bottom" nowrap width="129">
2.7%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="139">
<a href="/news">BROOKFIELD</a>
</td>
<td valign="bottom" nowrap width="129">
3.4%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="139">
<a href="/news">ASHBURTON</a>
</td>
<td valign="bottom" nowrap width="129">
3.6%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="139">
<a href="/news">HAWTHORN EAST</a>
</td>
<td valign="bottom" nowrap width="129">
4.2%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="139">
<a href="/news">LYNDHURST</a>
</td>
<td valign="bottom" nowrap width="129">
4.2%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="139">
<a href="/news">OAK PARK</a>
</td>
<td valign="bottom" nowrap width="129">
4.5%
</td>
</tr>
</tbody></table>
Photo courtesy of <a href="https://www.flickr.com/photos/linh_rom/" target="_blank" data-track="commentUserNameClick" data-action="follow" data-rapid_p="34">Hai Linh Truong</a>/Flickr.
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Robert Larocca

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