Perth’s new apartment market recorded its strongest quarter of sales since Q4 2021, with 412 apartments sold in Q1 2026 and a record quarterly sold value of $537 million, according to Urbis’ latest Apartment Essentials results.

Urbis said the March quarter result reflects strong, highly product‑specific demand across both ends of the market, from more attainable projects delivering at scale, through to premium stock being absorbed by equity‑rich downsizers.&nbsp;

David Cresp, Partner at Urbis, said the key story in Perth is not demand, it is the market’s ability to convert demand into delivered housing.&nbsp;

“This is the strongest sales quarter since Q4 2021, and it reinforces that demand in Perth is real and it’s local,” David Cresp said. “But the task now is delivery, turning that demand into projects that can actually be built and completed.”&nbsp;

[smartcode_project:default project_id=110291 project_image_fid=302785]

<h2>Affordable product leads, premium demand remains resilient</h2>

Sales in Q1 were led by more affordable projects, with The Boulevard (SKS Group) recording 115 sales in the quarter, the presentation noting this is only the second time a single project has surpassed 100 quarterly sales. The project was able to offer more affordable housing product right next to a train station.&nbsp;

Palmyra West (Finbar) also delivered strong results with 28 sales in Q1, following 84 sales in Q4, with an average price of under $800,000, underscoring depth of demand for well‑located, attainable new stock.&nbsp;

At the premium end, Urbis said downsizer demand is continuing, with the results highlighting Romeo (Applecross, Finbar) recording 75 sales and reaching almost 50% sold in one quarter.

Jual (Shenton Park, Celsius Property) also posted a strong quarter with 28 sales, reaching 39% sold in one quarter.

Urbis noted that Perth apartment demand is not speculative, not investor‑led, and not uniform, describing it as localised, often equity‑driven and highly product‑specific, a pattern reflected in the polarisation between strong “attainable” performers and premium downsizer product.&nbsp;

[smartcode_project:default project_id=148957 project_image_fid=364102]

<h2>Prices underpinned by costs, and the delivery risk is growing</h2>

Urbis said pricing pressure is cost not demand‑driven: construction costs and delivery risk are now a central constraint, with the results noting build costs remain elevated and volatile, and that energy, fuel and labour uncertainty weigh on feasibility.

David Cresp said a growing challenge for private Build‑to‑Sell developers is simply securing a builder in the current environment.

“Developers are really feeling the pressure from a building market that was operating at capacity and securing a builder is challenging,” David Cresp said, adding that even where a builder can be secured, “trying to get to the price that makes the development financially viable is incredibly challenging in the current market.”&nbsp;

Urbis’ broader WA commentary also notes that industry remains at or above capacity with lot and housing creation, and that many builders are limiting new sales to manage stretched workforces and fixed‑price contract pressures, conditions that flow directly into apartment feasibility and delivery timing.

[smartcode_project:default project_id=108869 project_image_fid=317905]

<h2>Supply: improving later, but still constrained, and Perth lags eastern benchmarks</h2>

While near‑term supply remains constrained, Urbis’ forecast shows completions lifting “Supply is forecast to be back above 1,500 apartments per annum for the first time since 2019”, with 1,775 completions forecast for 2026, and volumes remaining above that level over the following years.&nbsp;

Looking further ahead, completions are forecast to reach 2,500 in 2028, with the report noting 32% of that total is social/affordable, reflecting the role of government‑supported delivery in rebuilding the pipeline.&nbsp;

However, Urbis said Perth remains behind comparable markets on pipeline scale. In a national comparison of projects under construction, the report shows under construction Perth Build‑to‑Sell (BTS) at 3,446 apartments versus the Gold Coast at 7,922. Mr Cresp said “The challenge for Perth is how to we grow the delivery pipeline”.

Urbis’ conclusion is that Perth’s market is increasingly defined by product discipline and delivery certainty, with the research identifying “delivery certainty is key” and calling out builder risk and procurement models as core success factors, alongside “timing and staging”.&nbsp;

Joel Robinson

Perth apartment sales hit strongest pace since late 2021 as builder capacity tightens

<a href="https://www.apartments.com.au/developers/sammut-developments">Sammut Group</a> has secured development approval for its latest Brisbane apartment project, marking the Sydney developer’s next step in expanding its Queensland pipeline following the success of its debut Gold Coast development, Coast.

The approved project at <a href="https://www.apartments.com.au/new-apartments/44-glen-road-toowong-qld-4066">44 Glen Road, </a><a href="https://www.apartments.com.au/developments/toowong-qld-4066">Toowong</a> will deliver a 15-storey riverfront apartment building with 42 residences, significantly increasing the scale of the site’s previous approval for a smaller luxury scheme. Designed by Bureau^proberts, the development will comprise a mix of predominantly four-bedroom and two-bedroom apartments positioned to maximise Brisbane River and city views.

Sammut Director Julian Sammut said the group had been actively searching Brisbane for several years before identifying Toowong as the right fit.

“Brisbane was the right step for Sammut,” Sammut said.

“With the success of Coast we thought we should definitely look to do more in Queensland alone. We then pushed up to look at Brisbane. We've been looking for I'd say two to three years actually and it was hard to find the right location.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-23%20at%203.27.14%E2%80%AFPM.png?VersionId=dYAVIL7qdcGA8ojvkslSrLjczXFejSSx" />

Sammut said suburbs including New Farm and Teneriffe were considered before the group ultimately focused on Toowong due to its strong downsizer demographic and limited supply of developable riverfront land.

The site was acquired off-market after what Sammut described as a lengthy negotiation and planning process, with the developer pursuing an uplift to the original approval.

“We are DA approved now which is very exciting,” Sammut said.

“We've had our change approval come through and we've obviously doubled the height, 15 storeys plus rooftop. We've got 42 amazing apartments that are going to be coming to market soon.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-23%20at%203.27.26%E2%80%AFPM.png?VersionId=ohkRkY0dIZlqdfME2EZePsCQavRiBadE" />

Bureau^proberts said the design responds to Toowong’s evolving urban character, balancing contemporary apartment living with the area’s established residential identity.

“A place where traditional Queensland living has taken place for centuries; Toowong is seeing a shift of contemporary influence, commercial and retail hubs mixed with well-considered residential offerings – all the while maintaining its character and charm,” the architect noted in planning documents submitted to Brisbane City Council.

The architecture practice said the project’s form was shaped by its riverfront setting, flood considerations, neighbouring building scales, and view corridors.

“They said the mix of four and two-bedroom apartments capture the ‘fundamental qualities of Queenslander living,’ translated into the context of a contemporary subtropical building.”

The development sits just off Coronation Drive within walking distance of Toowong’s retail precinct and the upgraded Regatta ferry terminal, while also benefiting from proximity to the incoming green bridge connection to West End. Sammut said the accessibility and amenity offering were central to the site’s appeal.

The approval adds to growing residential activity along the Toowong riverfront, joining nearby projects including Consolidated Properties’ Monarch Residences and Spyre Group’s ARC Residences.

Sammut secures approval for debut Brisbane apartment development in Toowong

Developer Lanevick is heading back into Sydney’s apartment market after focusing more heavily on the luxury townhouse and terrace sector in recent years.

Lanevick, founded and directed by Steve Maroun, is expecting to receive approval in the coming months for a new apartment development in Gladesville, with the aim to launch it to the market later this year.

The 51-apartment project, designed by Studio Johnston, will comprise a mix of one-, two-, and three-bedroom apartments positioned toward the Hunters Hill downsizer market.

“Traditionally it’s been difficult for people in that market to downsize because there just hasn’t been the right product available,” Maroun said.

“We’re targeting buyers who might have 30 to 40 per cent of their house value sitting in the bank after downsizing.

“They still want good spacious entertaining areas, they still want quality design, but they also want flexibility and the ability to enjoy life a bit more after working hard for a long time.”

The project sits near Boronia Park and within close proximity to the Parramatta River foreshore, an area Maroun says offers more of a Hunters Hill lifestyle than a traditional apartment precinct.

“From a lifestyle perspective, it’s really more Hunters Hill than Gladesville,” Maroun said. “You’re close to the foreshore, close to parklands, and still connected back into the village precinct.”

From level four and above, apartments will capture water views&nbsp;toward Sydney Harbour. Communal amenity will include rooftop entertaining areas, wellness spaces, and a gym tailored toward owner-occupier buyers.

“We’ve really designed these apartments around that buyer coming from the Hunters Hill LGA and what they’re actually looking for in their next chapter.”

The proposed development has also been designed to respond to the changing character of the broader Gladesville town centre, where a growing number of mixed-use and residential proposals are expected to emerge over the coming years.

“Gladesville presented a rare opportunity to deliver a genuinely design-led residential project within an evolving lifestyle precinct, just moments from the growing Gladesville town centre, and we’ve approached the project with a strong focus on architecture, liveability and long-term community value,” Maroun said.

Maroun said Lanevick saw a first-mover advantage within the precinct as planning controls continue to evolve to accommodate greater housing density.

“We think there’s a real opportunity there that hasn’t really been serviced properly yet,” he said.

“There’s going to be a broader evolution of the whole Gladesville village precinct over time, particularly with more activation and mixed-use outcomes.”

The Venus Street proposal will include a commercial and retail component at ground level designed to contribute to that evolving streetscape activation.

“A big part of the thinking was how do you activate that area properly and create more vibrancy and amenity, which is what Hunters Hill has been looking for,” Maroun said.

Lanevick’s focus since 2020 has largely been on smaller-scale luxury townhouse and terrace developments. The developer recently completed Royale Randwick, also designed by Studio Johnston, where prices reached $3.65 million. The project was featured in the UDIA NSW 2026 Professional Development Prospectus and was also named a finalist for Development of the Year.

&nbsp;

Lanevick to cater for Hunters Hill downsizers with new Gladesville apartment development

Property developer One Living, backed by former Macquarie banker turned investment manager Chris Green’s investment firm, has unveiled plans to bring more institutional capital into housing to help address the national supply crisis.

The New York-based investor has focused his firm, GreenPoint Partners, on addressing the supply shortage hitting middle market housing in Australia.

It is backing the new One Living business to develop more than 1000 units along the eastern seaboard. The new firm is starting with a development on Mona Vale Road, on the border of Mona Vale and Pymble, in Sydney’s Northern Beaches, with around 140 apartments planned. They are eyeing off more sites across the city.

With cost pressures rising in the industry, One Living’s model is to be a vertically integrated developer-builder, so it can respond directly to the housing gap by removing the cost inefficiencies embedded in traditional residential delivery.

“We are building a platform designed to operate at scale and starting in a market where there’s a clear need for quality, attainable housing,” One Living joint managing director Joseph Scuderi said.

“It’s that missing middle – it’s that attainable end of housing… that’s what most Australians invest into and what Australians can actually afford.”

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="798dfa93-4941-4db6-a696-31e9dc18e81c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.31.50%E2%80%AFPM.png?VersionId=mKBqi5C_DmeiXS.AtJkcR8LQIxqCqmFi" />

GreenPoint Partners brings years of experience assembling and scaling real estate operating businesses across major markets. And Green sees a big opportunity in Australia.

“For its size, sophistication and importance to the community, Australia’s living sector has remained largely under-institutionalised, which represents significant opportunity,” Green said. “GreenPoint identified that gap, assembled the right team, and is backing One Living to build a platform that is aligned to market needs.”

Green said being a builder-developer would give the company the capacity and flexibility it required to deliver reasonably-priced homes.

“We want it to be at that attainable level; not super high end luxury but at that attainable level,” he said.

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="74a5344a-4b26-4d4a-ada3-056b1220be77" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.32.15%E2%80%AFPM.png?VersionId=vY8hXHO4reBMdO8ZXMWCNtGZJofUPQ3j" />

&nbsp;

One Living will undertake a component of affordable housing in its schemes, which it will own and operate, and it could also run build-to-rent on some sites.

Green praised local policy settings.

“The NSW government is being very supportive, strategic and pragmatic in terms of how do we generate more supply of housing,” he said. “We think it’s actually positive for development and the bit that’s been lacking at that attainable level is that it’s lots of relatively small private developers, whereas we want to create an institutional platform.”

One Living is also&nbsp;looking at high-density projects and could take on more institutional funding in the future.

“The way we will be able to achieve economies of scale is through size,” Green added.

One Living enters Sydney's new apartment market with Northern Beaches site acquisition

It's been several years since there's been an opportunity to buy a brand new townhome in Melbourne's coastal suburb of Mordialloc. Even apartment developments in recent times have been few and far between in the area.

Local developer LDS Property identified the gap in new housing, securing a site on White Street, directly opposite&nbsp;Woodlands Golf Club Mordialloc. They've recently launched&nbsp;<a href="https://www.apartments.com.au/new-townhouses/wm-residences-mordialloc-102-white-street-mordialloc-vic-3195">WM Residences</a>, just 13 townhouses which they have already started building.

Projects by Buxton Director Heath Thompson, who is selling WM Residences, says the townhouses x that perfect middle ground be

"Mordialloc residents have had limited options to downsize within the suburb, often forcing them to look elsewhere despite long-standing ties to the area," Thompson says.

"With very little comparable new supply coming to market, projects like WM Residences are well placed, particularly as buyers look to capitalise on current conditions amid constrained supply."

[smartcode_project:default project_id=134646 project_image_fid=6109]

The development, designed by regarded architecture firm&nbsp;<a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a>,&nbsp;adopts a deliberately restrained architectural approach, focusing on simplicity, durability and liveability rather than overt design gestures.

The boutique scale is central to the offering. With only 13 three-bedroom residences, each home is configured to prioritise functional layouts and everyday use, supported by private terraces and secure two-car garages.

Ewert Leaf’s design response leans into a calm, neutral material palette. Interiors are defined by oak flooring, white walls and soft finishes, creating a consistent and understated backdrop. The approach avoids trend-driven detailing in favour of longevity, with an emphasis on natural light and spatial clarity.

[smartcode_project:default project_id=134646 project_image_fid=6110]

Beyond aesthetics, the homes are designed to meet contemporary performance expectations. Each residence targets a minimum 6-star energy rating, incorporating double glazing, comprehensive insulation and all-electric Bosch appliances.

The project’s location supports a walkable coastal lifestyle, sitting within close proximity to Mordialloc’s foreshore, Main Street retail strip and the train station. Local cafés and dining venues, including Suburbia Deli and Hendriks Café, are within a short walk, reinforcing the area’s established neighbourhood character.

[smartcode_project:default project_id=134646 project_image_fid=6116]

While <a href="https://www.apartments.com.au/developments/mordialloc-vic-3195">Mordialloc</a> is often defined by its beach and pier, the project taps into other areas of day to day living, offering easy access to local food, casual dining and transport, rather than positioning itself purely as a lifestyle retreat.

WM Residences reflects a continued trend across Melbourne’s coastal suburbs towards smaller-scale, design-led townhouse developments, particularly on infill sites where proximity to amenity is already established.

With construction commenced prior to its market entry, the project aligns with a growing preference among buyers for developments with visible progress and defined delivery timeframes.

[smartcode_project_cta:default project_id=134646]

WM Residences fills gap in Mordialloc townhouse market

Sqm Research

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National residential listings decreased by four per cent in November, and are now down -12.6 per cent compared to the time last year.
Listings dropped from 308,469 in October to 296,267 in November.
All capital cities recorded decreases in listings over the month with the exception of Melbourne, which posted an increase of 1.2 per cent.
Darwin saw the largest listing decrease, down -6.7 per cent, followed by -6.4 per cent declines in Sydney and -6.1 per cent in Hobart.
Darwin, Sydney and Hobart posted the largest decreases of 6.7%, 6.4% and 6.1% respectively.
Brisbane recorded a -3.8 percent decrease, Canberra -3.2 per cent and Adelaide three per cent. Perth recorded the lowest decrease of -2.4 per cent.
Louis Christopher, managing director of SQM Research said the surprising decline in total listings for the month was predominantly driven by a decline in old listings.
"The fall in old listings tells me stock is being absorbed at a quicker rate than levels recorded earlier this year. It is a yet another signal that buyer activity is on the rise.”
<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/2020/DEC/2/SQM%20stock.jpg" alt="">
National year-on-year listings decreased -12.6 per cent, with significant decreases in Darwin (-28.2 per cent) and Hobart (-26.1 per cent) and Adelaide (-21.5 per cent).  
Sydney recorded a smaller decrease of 0.7 per cent. Melbourne however, recorded a large increase of 11.5 per cent. 
New listings across the country rose, just 0.48 per cent in November, with 381 more new properties listed for sale.
<a href="https://sqmresearch.com.au/total-property-listings.php?region=nt%253A%253ADarwin&amp;type=c&amp;t=1">Darwin’s</a> new listings increased by a significant 27.3 per cent. New listings in Melbourne increased by 4.1 per cent, while Sydney was the only capital that recorded a decline in new listings.
 
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jrobinson-rf4aSBido9

Total property listings decrease in November as old stock gets snapped up: SQM

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The number of residential property listings nationally fell -1.2 per cent in September, according to the latest data from SQM Research. 
They dropped from 293,053 in August to 289,566, which is -7.4 per cent down on listings 12 months ago.
New listings were up 2.4 per cent however over September nationally, with 1,447 more listings hitting the market. And that's taking in to account Melbourne's -41.3 per cent decline in new listings.
Louis Christopher, managing director of SQM Research, says the fall in listings is a little abnormal for the spring season.
"It has been predominantly driven by two factors which include sharp falls in new listings for Melbourne over the month; as well a sizeable falls in older listings across the country.
<img src="https://www.urban.com.au/images/2020/10/6/SQM%20stock%20levels.png" alt="">
"This second reason may point to an increase in absorption rates.
"In other words, there may have been increases in buyer activity over the month. There has also been other evidence of increases in buyer activity.
"This includes the rises in asking prices, the rises in auction clearance rates and the increases in housing finance approvals.”
Only Sydney and Perth bucked the trend of a drop in listings. Sydney saw its listings jump 1.8 per cent and Perth 0.9 per cent.
Sydney has 9.2 per cent more listings than it had 12 months ago. 
 
 
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Total property listings drop in September: SQM Research

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The national residential rental vacancy rate dropped over August, according to figures released by SQM Research. 
It dropped from 2.1 per cent to two per cent, with the total number of vacancies across the country dropping to 69,971.
But the locked-down Melbourne's rates have continued to soar, with its CBD recording its highest ever vacancy rate of 10 per cent, up from 8.8 per cent in July.
City-wide, the vacancy rate rose from 3.1 per cent to 3.4 per cent.
It was better news for property owners in other capital city CBD's.
Sydney's CBD vacancy rates are now 12.9 per cent, down from its record high of 16.2 per cent in May.
The Brisbane CBD also saw its vacancy rate scale back, to 11.4 per cent. Its high came in June when there were 14 per cent of residential properties vacant.
Adelaide's CBD vacancy rate also jumped, to 8.4 per cent from 7.6 per cent. Perth CBD remained stable at 5.5 per cent.
To enlarge, <a href="https://www.propertyobserver.com.au/images/2020/9/15/SQM%20vacancy%20rates.png" target="_blank">click here</a>.
 <img src="https://www.urban.com.au/images/2020/9/15/SQM%20vacancy%20rates.png" alt="">
Sydney still has the highest vacancy rate in the country. Despite scaling back 0.1 per cent in July, the vacancy rate still sits at 3.5 per cent.
Hobart’s vacancy rate is the lowest in the nation at 0.7%, with Canberra and Adelaide also recording low vacancy rates of 0.8% and 0.9% respectively.  
The regional market continues to be sought-after as city dwellers seek a life outside of CBD's.
Most regional locations recorded falls in rental vacancy rates, with Sydney’s Blue Mountains falling to a record low rental vacancy rate of just 0.7%, along with Victoria’s Mornington Peninsula. 
Queensland’s Ipswich fell to just 0.9%. 
 
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Melbourne spikes, but residential vacancy rates decrease over August: SQM Research

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The national residential rental vacancy rate recorded a decrease over the month from 2.5% in May to 2.2% throughout June 2020, according to the latest data from SQM Research.
The financial year ended with the total number of vacancies Australia-wide now at 77,132 vacant residential properties. 
This time last year, the national vacancy rate was slightly higher at 2.3%.
All capital cities recorded declines in vacancy rates over the month. 
Sydney currently has the highest vacancy rate in the nation at 3.8%, having declined by 0.2%, followed by Melbourne with a vacancy rate of 3.0%, declining by 0.1%. 
Hobart’s vacancy rate is the lowest in the nation at 0.9%, having declined by 0.4% over the month. 
Darwin recorded the largest decline in rental vacancy rate of 0.5% to now record a low vacancy rate of 1.8%. 
<img src="https://www.urban.com.au/images/2020/7/13/g1.png" alt="">
Even among the capital city CBD locations, there have been declines in vacancy rates over the month.  Sydney CBD has dropped to 13.8%, down from 16.2% in May, Melbourne’s CBD and Melbourne Southbank have also declined to 8.8% and 16.2% respectively.
Adelaide CBD has dropped to 7.1% and Perth CBD is now 5.3%.
However, Brisbane CBD’s vacancy rate has increased from 13.3% in May to 14.0% and Sydney’s Palm Beach is now 18.0%, up from 16.7% in May.
Over the month, Capital City asking rents decreased 3.1% for houses and 4.5% for units for the week ending 12 July 2020 to record asking rents of $534 per week for houses and $421 per week for units. 
Sydney, Melbourne and Adelaide recorded declines in asking rents for both houses and units over the month, whilst Brisbane and Perth continue to record increases in house and unit asking rents. 
Canberra and Darwin have had declines in house asking rents but recorded increases in unit asking rents.
<img src="https://www.urban.com.au/images/2020/7/13/g2.png" alt="">
"We believe the surprise fall in vacancy rates is due to Airbnb property owners giving up on the longer term leasing market and moving back to short term leasing, especially in light of the July school holiday period and the opening of some state borders," said Louis Christopher, the managing director of SQM Research.
The fall in rents over the same period for a numbers of our capital cities suggests that the weakness in the rental market remains.
Going forward, our expectation is the Australian rental market will remain weak for the duration of 2020 or until such time as the international border reopens and we as a community have past the worst of COVID19."
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j.ballantyne1990-6AQqhLzZaK

National rental vacancy rates drops over June: SQM Research

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National residential property listings surprisingly decreased in June, by one percent, figures released by SQM Research have showed.
Listing were down from 304,137 in May 2020 to 301,140 in June.
Listing were down 7.5 per cent compared to this time last year.
Most capital cities experienced decreases in property listings over the month except for Melbourne and Perth, whilst Brisbane remained steady.
The largest listings decrease was in Hobart at 7.5% followed by Canberra by 5.7% and Darwin 5.3%. Sydney’s listings only decreased by 1.6%.
Melbourne and Perth were the only capital cities to record increases in listings, 2.7% and 0.4% respectively.
Year-on-year listings show more significant declines for nearly all capital cities with Darwin recording a high 22.2% decline, followed by Perth with a 15.4% decline. Melbourne however bucked the trend and increased listings by 10.2% this time last year.
<img src="https://www.urban.com.au/images/2020/7/2/Stock%20SQM.JPG" alt="">
Louis Christopher, Managing Director of SQM Research said, “It is not unusual for listings to decrease in June as it is the start of the colder winter months."
There was a solid increase in new listings. Indeed, we have more new listings on the market compared to this time last year."
"Listings that were coming up to 90 days dropped the most, indicating that some of the older stock had either been withdrawn or was selling during June."
"Overall, these numbers on their own would indicate fairly normal activity in the housing market. Of course, we know that conditions are far from normal. And this is illustrated in the fall in vendor asking prices for the month.”
Asking Prices
Capital City average asking prices decreased by 0.8% for houses and 0.4% for units, over the month to 30thJune 2020. Unit asking prices are now at $571,000 and houses $989,100.
Compared to a year ago, the capital city asking prices posted increases of 8.8% for houses and 1.3% increase for units.
Over the month, most capital cities recorded marginal asking price increases however Sydney’s asking prices continue to decline to now record declines of 0.9% for houses and 1.3% for units. Melbourne recorded a 1.5% decrease in house prices but units increased by 0.7%
Strongest monthly growth was seen in Hobart’s unit prices with a 3.1% increase, followed by Perth’s house prices which had a 1.3% price increase.
Year on year, Darwin experienced declines in house and unit prices, 0.6% and 2.8% respectively, and Perth experienced declines in unit prices only of 1.3%. Sydney recorded an 11.5% increase in house price growth and a small decline of 0.1% for units this time last year whilst Melbourne recorded 9.9% increase in houses and a 5.4% increase for units.
All other capital cities recorded growth this time last year with Hobart recording a huge 19.8% house price growth and 10.4% unit price growth, this time last year.
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Residential property listings fell in June: SQM Research

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National residential property listings increased month-on-month in May by 3.9%, according to figures released by SQM Research.
Total listings rose to 304,137, up from 292,775 in April.
Compared to 12 months ago however, listings were down by 12.0%.
<img src="https://www.urban.com.au/images/2020/6/3/listings%20graph.png" alt="">
All capital cities experienced increases in property listings over the month, except for Canberra which posted a 0.8% decrease.
The largest listings increase was in Melbourne and Sydney, with growth of 11.6% and 10.9% respectively.
Hobart also recorded a large increase of 7.8%.
Year-on-year listings show more significant declines for all capital cities with Perth recording a 20.0% decline, followed by Darwin with a 18.8% decline, and Hobart a 15.8% decline (compared to this time last year).
“Overall, there was a rise in listings at the national level, driven by older stock not selling,” SQM Research Managing Director, Louis Christopher.
“We have recorded a 12% increase in listings of over 60 days. This tells me it is a patchy market with vendors struggling to meet their pricing expectations.”
“New listings actually fell for the month at the national level, which is abnormal for May.”
Meanwhile, capital city average asking prices increased by 0.5% for houses and decreased 0.1% for units, over the month to 2nd June 2020.
Unit asking prices are now at $573,300 and houses $997,400.
Compared to a year ago, the capital city asking prices posted increases of 10.2% for houses and 2.5% increase for units.
The figures showed that most capital cities recorded marginal asking price increases however, Sydney’s unit prices declined by 0.4%.
Brisbane, Darwin and Hobart’s house prices also all recorded declines of 0.3%, 1.1% and 0.1%, respectively.
The strongest monthly growth was seen in Darwin, with unit prices seeing a 7.2% increase.
Hobart followed, with a 1.5% unit price increase, and Perth’s houses had a 1.2% increase.
Year on year, it was only Perth and Darwin that experienced declines in house and unit prices.
All other capital cities recorded growth year on year, with Sydney recording a 13.7% house price increase, Melbourne recording an 11.9% house price increase, and Hobart recording a 10.0% house price increase compared to this time last year.
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Property listings increase in May: SQM Research

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The national residential vacancy rate has jumped to 2.6 per cent in April, up from two per cent in March, according to figures released today by research house SQM Research.
The total number of residential vacancies Australia-wide has hit 88,668, with every state seeing an increase with the exception of Darwin.
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It was the CBD and holiday markets which saw the biggest jumps, with Sydney's vacancy rate now nearly 14 per cent in the city.
SQM Research managing director Louis Christopher said the vacancy rate rise was one of the largest one month rises record on their vacancy rate series
"The blow out in rental vacancy rates for the major CBDs suggests a mass exodus of tenants occurred over the course of March and April", Christopher said. 
"This might be attributed to the significant loss in employment in our CBDs plus the drop off in international students.  
"We are well aware of a surge in short term accommodation now being advertised for long term leasing. 
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Christopher said the question is now how long will we see such high rental vacancies. 
"If it is sustained throughout the course of the year, then we can expect far deeper falls in rents which will be good news for tenants but a disaster for landlords," Christopher suggested. 
"There will also be economic consequences with further sharp falls in building approvals likely; thereby risking a major depression in our residential construction sector as well as the rather obvious risks for housing prices.”
Over the month, capital city asking rents decreased 1.3 per cent for houses and remained stable for units for the week ending 12 May 2020, with asking rents of $537 per week for houses and $428 per week for units. 
Sydney, Melbourne and Perth all recorded decreases in asking rents for both houses and units over the month, while Brisbane, Canberra and Hobart recorded decreases in house asking rents but minor increases in unit asking rents
Adelaide bucked the trend and recorded rent increases for both houses and units of 0.1% and 1.4%.   
In terms of popular holiday markets, Surfers Paradise recorded a vacancy rate of 8.5 per cent, and Noosa's usually tight vacancy rate shot to 6.8 per cent.
 
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National residential rental vacancy jumps to 2.6 per cent in April: SQM Research

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Australian residential property listings decreased in April by 4.9%, according to the latest figures released by SQM Research.
Overall listings nationwide were at 292,775, down from 307,847 properties listed in March 2020.
Compared to 12 months ago, listings were down by 11.9%.
Canberra was the only capital city which did not experience a decrease in property listings, posting a small 0.4% increase.
The largest decrease was in Perth with an 8.4% retraction, followed by Sydney at 7.2%.
Adelaide and Darwin both posted 6.0% decreases in property listings.
Hobart had the smallest decrease of 4.3% in listings.
Year-on-year listings show more significant declines for all capital cities with Sydney recording a decline of 19.4%, followed by Darwin with a 17.7% decline and Perth a 17.4% decline this time last year.
To enlarge, <a href="https://www.propertyobserver.com.au/images/2020/4/6/11.png" target="_blank">click here</a>.
<img src="https://www.urban.com.au/images/2020/4/6/11.png" alt="">
The report found that the housing market “has clearly been weakened by the coronavirus and the restrictions placed on the economy to limit the outbreak.”
“With the lifting some restrictions over the course of May, we could see a lift in buyer activity for housing; however many issues persist such as the spike in unemployment and the ongoing closure of the international border,” the firm added.
Clearance times have, however, stayed remarkably steady.
In April 41.52% of properties sold in 90 days or less, while that figure was 41.16% in March.
This is slightly up from 12 months ago, when 40.28% of homes sold within the same time frame.
To enlarge, <a href="https://www.propertyobserver.com.au/images/2020/4/6/22.png" target="_blank">click here</a>.
<img src="https://www.urban.com.au/images/2020/4/6/22.png" alt="">
Meanwhile, capital city asking prices increased by 0.7% for houses and increased 0.1% for units, over the month to 5th May 2020.
Unit asking prices are now at $574,900 and houses $994,300.
Compared to a year ago, the capital city asking prices posted increases of 9.4% for houses and 3.0% increase for units.
Over the month, some capital cities recorded marginal asking price increases, with the exception of Perth, Canberra and Hobart which all recorded declines for both houses and units. Brisbane recorded the highest decline in house prices of 1.0% over the month, followed by Perth 0.9%, Hobart 0.7% and Canberra 0.1% decline in house prices.
Unit prices declined in Sydney by 0.6%, Perth 0.5%, Hobart 0.3% and Canberra 0.1%.
Melbourne, Adelaide and Darwin were the only capital cities to record increases in both house and unit prices.
Strongest monthly growth was seen in Sydney house prices with a 1.1% increase and Melbourne’s unit market which saw a 1.0% increase. Year on year, it was only Perth and Darwin that experienced declines in house and unit prices.
All other capital cities showed some strong growth this time last year where house prices rose 12.4% in Sydney, 11.2% in Melbourne and 12.0% in Hobart.
 
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Residential property listings decrease nationwide in April: SQM Research

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Expert Observation
Despite the current gains recorded for the March quarter being on track with our base case forecasts, given current events, there is only a single scenario that is still feasible and that is Scenario 4 – a scenario we outlined in our top 4 scenarios for 2020. 
One where the RBA would bring the cash rate to zero and start quantitative easing. It was based on a possibility the tentative trade war truce between the U.S and China would collapse and a ‘take no prisoners’ trade war would break out between the two countries, turning into a global trade war.
The outlook for housing in this scenario was one where the market would eventually stall and start to record price decreases from mid-year onwards. That the rate cuts and money printing would not be able to offset job losses and subsequently, forced sales activity.
Yes, the RBA has now had to introduce quantitative easing. Yes, the cash rate is now just 0.25 per cent. But what we now face economically is a tsunami that dwarfs even a global trade war.
To get a sense of the economic carnage that is underway, check out this gif of U.S jobless claims.
The scale of what we are facing right now on the economic front is something never truly encountered since The Great Depression. And if we don’t manage it well then a depression (a contract in in GDP of greater than 10 per cent) is what we will have – something which I am far more frightened of than catching Covid-19. And believe me, I do not want to catch this virus.
Click <a href="https://www.propertyobserver.com.au/images/2020/4/16/SQM%20chart.JPG" target="_blank">here</a> to enlarge.
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So, with that in mind, I want to now give a general outlook on what I think are two main scenarios that are really in play this year.
A V-shaped recovery
Let’s be clear, despite the positive Corelogic numbers (dwelling prices rose 2.8 per cent for the quarter) and indeed our asking price indexes, I think housing price expectations have already corrected by five per cent to ten per cent from their very highs. That may not show up in the official numbers as the highs were only briefly obtained during the later stages of February. It is anecdotal only, through my discussions with real estate agents and the sharp fall in clearance rates, which were already occurring prior to the auction ban starting from the 25th of March.
The best case scenario from here for property owners and investors is one where we get to zero new Covid-19 cases before April is over with. And on that front the numbers have been looking promising. I believe it is now a 50 per cent chance that our three major states will record a zero new Covid-19 cases day before the month is over. If we get to that point, the next question begs how long will restrictions be kept? Potentially some restrictions could be lifted in May. And my bet is that when restrictions are eventually lifted, they will be lifted in the reverse order that they were placed on to begin with. As the ban on auctions occurred as one of the last stages (25 March), it is quite feasible that lifting that ban could come sooner than expected.
If we are able to get back to close to normal business by end of May (I certainly don’t think all restrictions will be lifted by that time), then I think confidence in the housing market is going to return. Assisted with all the stimulus announced and the economic damage relatively limited, it would mean a fall in housing prices recorded for the June quarter but a bounce back in the September and December quarters. The net result for the year may come in at our Scenario 4 range or slightly better.
It should not be underestimated how much expenditure has been announced (including RBA money printing via quantitative easing) and how low lending rates are now. 
A borrower with a good credit rating can now expect a variable owner occupier lending rate somewhere between 2.5 per cent to 2.8 per cent. Average capital city gross rental yields are running at about 2.9 per cent for houses and 3.9 per cent for units.
That means property owners on a purely interest expenses verses rental payments scenario could do better owning. And of course it also means that investors may find more cashflow positive properties in our major cities.
That said though, we think there is trouble ahead for the rental market. We will come to that point later.
<h2>The worse-case scenario</h2>
The worse-case scenario is we have a second wave in new virus case counts and it occurs shortly after some restrictions are lifted. Or that new case numbers flatten at current levels but never quite manage to get to zero cases or stay at zero cases. This appears to be the plight of South Korea at the moment.
If this second wave were to occur, we think the housing market will have a much deeper correction.
A second wave of new Covid-19 cases is a great risk. Note, a second wave of Spanish Flue hit Australia in mid-1919 and this occurred just after restrictions were lifted after the first wave, noting hospital numbers (which is the available data we have for time) never actually got to zero on the lull.
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Such a scenario would mean current restrictions would stay with us for longer. Probably more than six months. Or worse, more restrictions added. A second wave of infections may be more deadly as it would potentially occur over the course of the Southern Hemisphere winter. A sharp rise in deaths may result in more panic at the shops and most certainly a new low in confidence.
Damage to the economy would be deeper and longer lasting. Many businesses, including those that are currently on life-support, would not last the distance and will be liquidated.
You see, even with the generous measures announced for small business, it won’t be enough to keep much of the sector alive for half a year. When there is little to zero revenues coming in, month after month, PAYG relief is not enough. Being subsidised to cover employee wages at $1,500 a fortnight is not enough. Neither is a $10,000 cash grant for most. And forget about asking small business to go into debt. Most of them, particularly in retail, hospitality and tourism, will refuse to do so. And so job creation would occur at a far slower rate when a recovery would eventually return.
With the surging and sustained unemployment rate, the banks could start to get nervous on mortgages. Potentially, after the six-month hiatus, banks may be backed into a corner where they are forced to repossession on defaulted housing loans. Now I believe the RBA and/or the Federal Government would come to the rescue to enable banks to avoid a mass repossession event. Let’s keep in mind that in 2008, the banks could have pulled the trigger on the commercial property sector. Many owners at the time were in breach of lending covenants. The banks, by and large, chose not to pull that trigger. Mainly for their own self-preservation, as doing so would have created a cascading affect that would have smashed their balance sheets.
So I am not convinced we will see a lot of forced sales activity, even in this bleaker scenario. All the same, there will be many property owners who will want to sell out if this crisis goes on for six months or more. They will see the falls in dwelling prices over the course of the June quarter. And they will be very protective of what is left of their net wealth.
The buy side of the property equation would be hit very hard as it is being hit hard now. But far worse than what we had in 2018 or indeed 2008.
You see it’s not just the loss of employees representing many first home buyers, but, as mentioned above it is also the potential wipe out of many thousands of small business owners, who themselves employ nearly 50 per cent of the total workforce. Small business owners actually represent a very large component of the home buyer market. As at the 2016 Census there were over two million small businesses.
So this is very much a buy side issue in my view. Anyone that is worried they will lose their job or their business, won’t be seriously thinking of taking out a home loan to buy into the property market.
Let’s also remind ourselves that our international border is closed to most except for permanent residents, citizens and some temporary visa holders. And I believe it will remain closed for many months to come. So underlying demand for housing, which has been predominantly driven by net overseas migration has now stalled for this year. This will be a different experience to the Spanish Flu of 1919, whereby population growth still expanded at a very strong rate (1.9 per cent for 2019) due to our soldiers returning home as well as the settling of European refuges.
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Up to a 30 per cent peak to trough price decline cannot be ruled out.
In this more bleaker scenario, a 30 per cent decline in dwelling prices would be on the cards. Note, I have not modelled this out, other than taking elements such as previous work on the relationship between unemployment and the housing market. Modelling in this environment is almost impossible. It is simply based on my experience and study. The most overvalued cities would be hit the hardest, that being Sydney and Melbourne. Other cities should do better than a 30 per cent correction given their relative fair value. Now some of you will note that during The Great Depression, the Australian housing market did not correct by this magnitude. Nor, during the Spanish plague of 1919 did the Australian housing market record such a correction. However, those two markets were not laden with the debt burden our current housing market has. Not even close. The only market that comes close in Australia was the massive boom/bust of the 1890s.
Of course, it should be noted that period was also laden by a very dodgy and nearly entirely unregulated banking sector.
Either way, the rental market is in trouble.
Overall, a stalling in underlying demand for accommodation driven by near zero migration, combined with a reduction in existing tenancy demand (as a result of job losses) plus a very likely increase in supply from empty AirBNB accommodation will likely mean we can now expect a rise in rental vacancies over this year. Previously the forecast was for a gentle reduction in vacancies in 2020 as dwelling completions were (and still are) due to fall.
On our estimates and other estimates, there are some 120,000+ properties nationwide at any point in time being used for short term accommodation via websites such as airbnb. And on our latest numbers for February,there were some 68,000 vacant rental properties available for normal leasing.
I can’t tell you how many property owners are going to switch back to longer term leasing but there will be a number, especially if this plays out for longer. This is not a scenario here. This is our view. Our view is that rental vacancy rates are going to rise sharply over the short term. I think we can expect the rate to rise from the current 2.0 per cent to north of 2.5 per cent and perhaps north of 3.0 per cent. That may not sound like much to you but if we do hit 3.0 per cent that would be a record high on our index which goes back to 2005. Rents would fall as a result. Perhaps our weekly asking rents index is already revealing some weakness with national asking rents for houses down by 0.9 per cent for the month and 0.3 per cent down for units.
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The weakness in the rental market will probably put off many would-be property investors over 2020 creating more issues on the buy side of the market.
So what is it going to be? - Scenario 1, Scenario 2 or another scenario?
The next 30 days will likely tell the story. It is very hard to judge it. Like everyone else I am watching the new case numbers closely.
Let me tell you. I don’t want Scenario 2 to play out. A depression would create massive economic misery. Suicides will rise, so will crime.
There is also the possibility we muddle through somewhere between the two scenarios. A world where daily new virus cases don’t quite get to zero but there isn’t a second wave. Restrictions lifted very gradually over many months. Eventually, a vaccine is produced and distributed in 2021. We would need to see what is lifted and at what point in time to work out the impact on the housing market. Regardless, rents will still be hit for simply the fact that the international border will still remain closed.
LOUIS CHRISTOPHER is the CEO of SQM Research
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Looking back at forecasts made in October last year: Louis Christopher

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Data released by SQM Research reveals that national residential property listings increased in March 2020 by 3.7%, up from 296,770 in February to 307,847.
Compared to 12 months ago, listings were down by 13.2%.
All capital cities experienced increases in property listings over the month with the largest increase in Darwin of 15.6%, followed closely by Canberra with a 11.0% increase and Sydney a 10.5% increase. Hobart had the smallest increase of 2.4% increase in listings.
Listings that have been on the market for between 30 to 60 days surged by 74%, suggesting sales activity did slow during March.
Year-on-year listings show declines for all capital cities with Sydney recording a significant decline of 22.8% and Hobart an 18.5% decline this time last year.
<img src="https://www.urban.com.au/images/2020/4/8/chart%201.png" alt="">
Louis Christopher, Managing Director of SQM Research said, “residential property listings are starting to increase and accumulate. I note the surge of stock that has been on the market between 30 and 60 days.  This may reflect the start of a capital city housing market downturn due to the health and economic impact of COVID-19. I also note though the rise in asking prices for the month, so quite a number of vendors have not really adjusted their pricing expectations as yet.”
<img src="https://www.urban.com.au/images/2020/4/8/chart%202.png" alt="">
Capital City asking prices increased by 0.7% for houses and increased 0.6% for houses, over the month to 31st March 2020. Unit asking prices are now at $577,000 and houses $990,500.
Compared to a year ago, the capital city asking prices posted increases of 8.8% for houses and 2.1% increase for units.
Over the month, most capital cities recorded asking price increases, with Darwin and Hobart both recording the highest increases for houses of 3.1%.  Highest price increase in units was Sydney and Perth with 0.8% increase. 
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