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

<html><body>
SQM Research believes there is a "very high risk" based on Labor’s proposed negative gearing policy, that investors purchasing new property may experience losses on a resale in the first three years of the property’s life.
"Investors seeking to benefit from the new concession by buying new properties are exposed to a substantial risk of their property being valued below purchase price, especially if the buyer is seeking to sell their investment within the first three years," SQM director Louis Christopher said.
While the SQM director Louis Christopher says there is no solid data to prove this point, it was in SQM'S experience that over the course of a cycle:
<ul>
<li>Off-the-plan developments will be sold between a 15-30% premium to the existing market.</li>
<li>30% of off-the-plan developments will sell at a loss to the initial purchase price if sold within the first three years if the dwelling’s life.</li>
</ul>
A premium paid over and above the existing market is often justified as one is effectively buying ‘new’ and the best quality fixtures and fittings compared to the existing market. 
Christopher predicts dwelling prices to fall.
<img src="https://www.urban.com.au/images/2019/3/22/JPEG%20-%202020%202022%20Dwelling%20Price%20Forecasts.JPG" alt="">
"Given the forecast of initial negligible rental growth, SQM Research forecasts an additional correction in the housing market of between 4% to 8% over a three year period (2020 to 2022) with most of the falls occurring in years one and two."
This assumes an interest rate cut of 50 basis points by early January 2020.
He sees yields as rising.
<img src="https://www.urban.com.au/images/2019/3/22/JPEG%20-%20Yields%20to%20Rise%20International%20Comparisons%20table.JPG" alt="">
International comparisons as well as historical precedents indicate that acquisition rental yields are likely to rise between 0.85% and 1.2% (85-120 basis points) over a two to three year period post the implementation of the new policy.
"If interest rates are cut by 50 basis points, the rise in yields will be smaller at between 60 and 95 basis points."
He tips rents to rise 7-12% over 2020 to 2022.
<img src="https://www.urban.com.au/images/2019/3/22/JPEG%20-%202020%202022%20Dwelling%20Rent%20Forecasts.JPG" alt="">
<img src="https://www.urban.com.au/images/2019/3/22/JPEG%20-%20Change%20in%20National%20CPI%20and%20Rent%20Index.JPG" alt="">
"Rental changes are initially likely to be negligible due in part to a current oversupply in Sydney and some other cities.
"However, there may be an acceleration from year 2021 due to an expected sharp fall in dwelling completions.
"Brisbane and Perth are forecasted to record the largest rises."
The report envisages housing construction and completions will fall further.
<img src="https://www.urban.com.au/images/2019/3/22/JPEG%20-%20Aust%20Dwelling%20Commencements.JPG" alt="">
SQM Research forecasts the total fall in housing construction activity will amount to a 25% to 30% decline from 2019 levels.
"Given the existing falls in construction and the anticipated peak in infrastructure spend in 2021 this could have a large impact on GDP and employment in the economy," Christopher said.
"The total adjustment in the market housing market is forecasted to last for approximately three years, with most of the adjustment phase occurring within two years.
"Thereafter the market would likely return to equilibrium, having ‘priced-in’ the loss of the tax concessions."
He forsees sales turnover to fall by another 12% to 15% with most of the declines in sales to occur in the first year (FY2021).
This would result in a fall in state stamp duty revenue of approximately $2.3 billion.
The report represents an update on his 2016 research to cover the potential price, rent and turnover impact of the Labor Party’s negative gearing policy initially released February 2016.
Labor will limit negative gearing to new housing from a yet-to-be-determined date after the next election.
All investments made before this date will not be affected by this change and will be grandfathered which means that taxpayers will continue to be able to deduct net rental losses against their wage income, providing the losses come from newly constructed housing.
From a yet-to-be-determined date after the next election losses from new investments in shares and existing properties can still be used to offset investment income tax liabilities. These losses can also continue to be carried forward to offset the final capital gain on the investment.
The report presents several scenarios.
<ul>
<li>Scenario 1 - Negative Gearing cut 1 July 2020 and interest rates cut by 50 basis point</li>
</ul>
In the first scenario, The Reserve Bank of Australia cuts interest rates starting from late 2019 by half a percent (50bp). Negative Gearing is changed and CGT increases are passed and enacted on 1 July 2020.
SQM take the view there would be an overall gross yield increase of some 65 basis points after taking into account the rate cut; 25 basis points of which is passed on. Prices would still considerably fall in Sydney and Melbourne but other cities would be less affected.
There is a likelihood the housing market could rally post the interest rate cuts and leading into 1 July 2020 as investors take advantage of grandfathering. The earlier the rate cuts, the greater the likelihood of a rally. Most of the price falls would happen over later 2020 and 2021 with a potential market bottom in 2022.
Rents in Sydney and Melbourne do not lift initially on the back of some existing oversupply of rental stock. But that stock is quickly absorbed in 2021/2022 leading to an acceleration in rents.
<ul>
<li>Scenario 2 – No Interest Rate cut</li>
</ul>
In this scenario, the market takes the full brunt of the Negative Gearing change and CGT lift. Prices fall sharply with a minimal pick up in demand prior to passing of the bill (assumed 1 July 2020).
Average capital city gross rental yields lift by 85 to 120 basis points with the yield increase being shared between price falls and rent increases.
With prices falling sharply over 2020/21, housing commencements fall greater than scenario one therefore creating a larger shortage of housing relative to underlying demand in 2021/2022.
<ul>
<li>Scenario 2 assumes no recession but there would have to be serious questions on the state of the economy.</li>
<li>Scenario 3 – No Negative Gearing change and 50 basis point rate cut</li>
</ul>
This scenario assumes either the Labor Party defers the tax changes or the Liberal Government wins the 2019 Federal Election. This assumes therefore, a likely recovery in the housing market as confidence returns due to a rate cut, no Negative Gearing change and no Capital Gains Tax increases. Bank lending is less restrictive.
</body></html>

j.ballantyne1990-6AQqhLzZaK

Rents to rise under Labor, negative gearing/CGT policy risky to economy: SQM's Louis Christopher

<html><body>
The national residential vacancy rate has remained steady at 2.2% in February 2019, according to the latest data from SQM Research.
The total number of vacancies Australia-wide is now at 72,333, it said. 
Adelaide was the only capital city to increase its vacancy rate over the month, from 1.1% in January to 1.2%, resulting in 2,197 properties available for rent in February 2019.
Brisbane, Canberra, Darwin and Hobart experienced marginal decreases of 0.1% in vacancy rates.
Melbourne decreased by 0.2% over the month to 1.7%.
Sydney and Perth’s vacancy rates remained steady at 3.2% and 3.0% respectively.
Hobart still remains the lowest of all capital cities at 0.4% for February 2019.
Darwin ranks the highest of all capital cities at 3.7%.
<table border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="13%">City</td>
<td width="12%">Feb-2018 Vacancies</td>
<td width="16%">Feb-2018 Vacancy Rate</td>
<td width="14%">Jan-2019 Vacancies</td>
<td width="15%">Jan-2019 Vacancy Rate</td>
<td width="12%">Feb-2019 Vacancies</td>
<td width="14%">Feb-2019 Vacancy Rate</td>
</tr>
<tr>
<td nowrap width="13%">Sydney</td>
<td nowrap width="12%">15,581 </td>
<td nowrap width="16%">2.3%</td>
<td nowrap width="14%">22,426 </td>
<td nowrap width="15%">3.2%</td>
<td nowrap width="12%">22,396 </td>
<td nowrap width="14%">3.2%</td>
</tr>
<tr>
<td nowrap width="13%">Melbourne</td>
<td nowrap width="12%">7,889 </td>
<td nowrap width="16%">1.4%</td>
<td nowrap width="14%">10,564 </td>
<td nowrap width="15%">1.9%</td>
<td nowrap width="12%">9,818 </td>
<td nowrap width="14%">1.7%</td>
</tr>
<tr>
<td nowrap width="13%">Brisbane</td>
<td nowrap width="12%">10,925 </td>
<td nowrap width="16%">3.4%</td>
<td nowrap width="14%">8,911 </td>
<td nowrap width="15%">2.7%</td>
<td nowrap width="12%">8,611 </td>
<td nowrap width="14%">2.6%</td>
</tr>
<tr>
<td nowrap width="13%">Perth</td>
<td nowrap width="12%">8,319 </td>
<td nowrap width="16%">4.1%</td>
<td nowrap width="14%">6,121 </td>
<td nowrap width="15%">3.0%</td>
<td nowrap width="12%">6,170 </td>
<td nowrap width="14%">3.0%</td>
</tr>
<tr>
<td nowrap width="13%">Adelaide</td>
<td nowrap width="12%">2,540 </td>
<td nowrap width="16%">1.4%</td>
<td nowrap width="14%">2,141 </td>
<td nowrap width="15%">1.1%</td>
<td nowrap width="12%">2,197 </td>
<td nowrap width="14%">1.2%</td>
</tr>
<tr>
<td nowrap width="13%">Canberra</td>
<td nowrap width="12%">495 </td>
<td nowrap width="16%">0.8%</td>
<td nowrap width="14%">594 </td>
<td nowrap width="15%">0.9%</td>
<td nowrap width="12%">502 </td>
<td nowrap width="14%">0.8%</td>
</tr>
<tr>
<td nowrap width="13%">Darwin</td>
<td nowrap width="12%">989 </td>
<td nowrap width="16%">3.3%</td>
<td nowrap width="14%">1,193 </td>
<td nowrap width="15%">3.8%</td>
<td nowrap width="12%">1,161 </td>
<td nowrap width="14%">3.7%</td>
</tr>
<tr>
<td nowrap width="13%">Hobart</td>
<td nowrap width="12%">145 </td>
<td nowrap width="16%">0.5%</td>
<td nowrap width="14%">144 </td>
<td nowrap width="15%">0.5%</td>
<td nowrap width="12%">133 </td>
<td nowrap width="14%">0.4%</td>
</tr>
<tr>
<td nowrap width="13%">National</td>
<td nowrap width="12%">69,727 </td>
<td nowrap width="16%">2.2%</td>
<td nowrap width="14%">72,574 </td>
<td nowrap width="15%">2.2%</td>
<td nowrap width="12%">72,333 </td>
<td nowrap width="14%">2.2%</td>
</tr>
</tbody></table>
Source: SQM Research
Asking Rents
Capital city asking rents declined 0.2% for both houses and units over the month to 12 March 2019 to $559 per week for houses and $441 per week for units. 
Similarly, over the 12 months, asking rents for both houses and units also declined by 0.2%.
Adelaide and Hobart recorded increases in weekly rents over the month for both houses and units with Hobart houses recording the highest weekly rental increase of 4.5% for houses and 1.8% for units.
Sydney, Brisbane, Canberra and Darwin recorded marginal decreases in both house and unit asking rents over the month to 12 March 2019. 
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td colspan="6" valign="top" width="100%">SQM Research Weekly Rents Index</td>
</tr>
<tr>
<td colspan="2" valign="bottom" width="35%">Week ending: 12 Mar 2019</td>
<td valign="bottom" width="14%">Rent</td>
<td valign="bottom" width="13%">Change on prev week</td>
<td valign="bottom" width="19%">Rolling month % chg</td>
<td valign="bottom" width="17%">12 month % chg</td>
</tr>
<tr>
<td rowspan="2" valign="top" width="20%">Sydney</td>
<td valign="top" nowrap width="14%">All Houses</td>
<td valign="top" nowrap width="14%">706.9</td>
<td valign="top" nowrap width="13%">0.1  </td>
<td valign="top" nowrap width="19%">-0.5%  </td>
<td valign="top" nowrap width="17%">-4.3%  </td>
</tr>
<tr>
<td valign="top" nowrap width="14%">All Units</td>
<td valign="top" nowrap width="14%">507.2</td>
<td valign="top" nowrap width="13%">-0.2  </td>
<td valign="top" nowrap width="19%">-0.7%  </td>
<td valign="top" nowrap width="17%">-3.2%  </td>
</tr>
<tr>
<td rowspan="2" valign="top" width="20%">Melbourne</td>
<td valign="top" nowrap width="14%">All Houses</td>
<td valign="top" nowrap width="14%">543.6</td>
<td valign="top" nowrap width="13%">-0.6  </td>
<td valign="top" nowrap width="19%">-0.0%  </td>
<td valign="top" nowrap width="17%">2.3%  </td>
</tr>
<tr>
<td valign="top" nowrap width="14%">All Units</td>
<td valign="top" nowrap width="14%">420.1</td>
<td valign="top" nowrap width="13%">0.9  </td>
<td valign="top" nowrap width="19%">0.7%  </td>
<td valign="top" nowrap width="17%">4.0%  </td>
</tr>
<tr>
<td rowspan="2" valign="top" width="20%">Brisbane</td>
<td valign="top" nowrap width="14%">All Houses</td>
<td valign="top" nowrap width="14%">456.8</td>
<td valign="top" nowrap width="13%">-0.8  </td>
<td valign="top" nowrap width="19%">-0.1%  </td>
<td valign="top" nowrap width="17%">2.1%  </td>
</tr>
<tr>
<td valign="top" nowrap width="14%">All Units</td>
<td valign="top" nowrap width="14%">370.9</td>
<td valign="top" nowrap width="13%">0.1  </td>
<td valign="top" nowrap width="19%">-1.0%  </td>
<td valign="top" nowrap width="17%">1.2%  </td>
</tr>
<tr>
<td rowspan="2" valign="top" width="20%">Perth</td>
<td valign="top" nowrap width="14%">All Houses</td>
<td valign="top" nowrap width="14%">440.5</td>
<td valign="top" nowrap width="13%">0.5  </td>
<td valign="top" nowrap width="19%">-0.1%  </td>
<td valign="top" nowrap width="17%">4.2%  </td>
</tr>
<tr>
<td valign="top" nowrap width="14%">All Units</td>
<td valign="top" nowrap width="14%">333.3</td>
<td valign="top" nowrap width="13%">1.7  </td>
<td valign="top" nowrap width="19%">1.4%  </td>
<td valign="top" nowrap width="17%">2.0%  </td>
</tr>
<tr>
<td rowspan="2" valign="top" width="20%">Adelaide</td>
<td valign="top" nowrap width="14%">All Houses</td>
<td valign="top" nowrap width="14%">394.8</td>
<td valign="top" nowrap width="13%">1.2  </td>
<td valign="top" nowrap width="19%">0.6%  </td>
<td valign="top" nowrap width="17%">3.4%  </td>
</tr>
<tr>
<td valign="top" nowrap width="14%">All Units</td>
<td valign="top" nowrap width="14%">302.4</td>
<td valign="top" nowrap width="13%">0.6  </td>
<td valign="top" nowrap width="19%">0.9%  </td>
<td valign="top" nowrap width="17%">2.3%  </td>
</tr>
<tr>
<td rowspan="2" valign="top" width="20%">Canberra</td>
<td valign="top" nowrap width="14%">All Houses</td>
<td valign="top" nowrap width="14%">644.9</td>
<td valign="top" nowrap width="13%">3.1  </td>
<td valign="top" nowrap width="19%">-0.0%  </td>
<td valign="top" nowrap width="17%">4.1%  </td>
</tr>
<tr>
<td valign="top" nowrap width="14%">All Units</td>
<td valign="top" nowrap width="14%">455.1</td>
<td valign="top" nowrap width="13%">-0.1  </td>
<td valign="top" nowrap width="19%">-1.2%  </td>
<td valign="top" nowrap width="17%">4.0%  </td>
</tr>
<tr>
<td rowspan="2" valign="top" width="20%">Darwin</td>
<td valign="top" nowrap width="14%">All Houses</td>
<td valign="top" nowrap width="14%">490.3</td>
<td valign="top" nowrap width="13%">-0.3  </td>
<td valign="top" nowrap width="19%">-2.8%  </td>
<td valign="top" nowrap width="17%">-9.5%  </td>
</tr>
<tr>
<td valign="top" nowrap width="14%">All Units</td>
<td valign="top" nowrap width="14%">378.4</td>
<td valign="top" nowrap width="13%">-0.4  </td>
<td valign="top" nowrap width="19%">-1.6%  </td>
<td valign="top" nowrap width="17%">-8.6%  </td>
</tr>
<tr>
<td rowspan="2" valign="top" width="20%">Hobart</td>
<td valign="top" nowrap width="14%">All Houses</td>
<td valign="top" nowrap width="14%">437.7</td>
<td valign="top" nowrap width="13%">6.3  </td>
<td valign="top" nowrap width="19%">4.5%  </td>
<td valign="top" nowrap width="17%">3.7%  </td>
</tr>
<tr>
<td valign="top" nowrap width="14%">All Units</td>
<td valign="top" nowrap width="14%">364.4</td>
<td valign="top" nowrap width="13%">-2.4  </td>
<td valign="top" nowrap width="19%">1.8%  </td>
<td valign="top" nowrap width="17%">-0.2%  </td>
</tr>
<tr>
<td rowspan="2" valign="top" width="20%">National</td>
<td valign="top" nowrap width="14%">All Houses</td>
<td valign="top" nowrap width="14%">447.0</td>
<td valign="top" nowrap width="13%">2.0  </td>
<td valign="top" nowrap width="19%">-0.2%  </td>
<td valign="top" nowrap width="17%">0.9%  </td>
</tr>
<tr>
<td valign="top" nowrap width="14%">All Units</td>
<td valign="top" nowrap width="14%">360.0</td>
<td valign="top" nowrap width="13%">0.0</td>
<td valign="top" nowrap width="19%">-0.6%  </td>
<td valign="top" nowrap width="17%">0.8%  </td>
</tr>
<tr>
<td rowspan="2" valign="top" width="20%">Cap City Average</td>
<td valign="top" nowrap width="14%">All Houses</td>
<td valign="top" nowrap width="14%">559.0</td>
<td valign="top" nowrap width="13%">1.0  </td>
<td valign="top" nowrap width="19%">-0.2%  </td>
<td valign="top" nowrap width="17%">-0.2%  </td>
</tr>
<tr>
<td valign="top" nowrap width="14%">All Units</td>
<td valign="top" nowrap width="14%">441.0</td>
<td valign="top" nowrap width="13%">0.0</td>
<td valign="top" nowrap width="19%">-0.2%  </td>
<td valign="top" nowrap width="17%">-0.2%  </td>
</tr>
</tbody></table>
Source: <a href="http://www.sqmresearch.com.au/" target="_blank">www.sqmresearch.com.au</a>
</body></html>

National vacancy rate steadies in February: SQM Research 

<html><body>
Data released by SQM Research revealed the national residential vacancy rate predictably declined to 2.2% in January, down from 2.5% in December 2018.
SQM had the total number of vacancies Australia-wide declining to 72,574 – some 9,984 fewer properties are now available for rent in December 2018.
All capital cities, except Hobart experienced a decline in their vacancy rates in January with Darwin currently having the highest vacancy rate of all capital cities at 3.8%, down from 0.5% on December’s vacancy of 4.3%.
Although Hobart increased its vacancy rate marginally by 0.1%, it still remains the lowest of all capital cities at 0.5% for January 2019.
Sydney’s vacancy rate, although declining, is still currently the second highest of all capital cities at 3.2% with 22,426 properties available for rent. 
<table border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="13%">
City
</td>
<td width="12%">
Jan-2018 Vacancies
</td>
<td width="16%">
Jan-2018 Vacancy Rate
</td>
<td width="14%">
Dec-2018 Vacancies
</td>
<td width="15%">
Dec-2018 Vacancy Rate
</td>
<td width="12%">
Jan-2019 Vacancies
</td>
<td width="14%">
Jan-2019 Vacancy Rate
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="13%">
Adelaide
</td>
<td valign="bottom" nowrap width="12%">
2,793 
</td>
<td valign="bottom" nowrap width="16%">
1.5%
</td>
<td valign="bottom" nowrap width="14%">
2,383 
</td>
<td valign="bottom" nowrap width="15%">
1.3%
</td>
<td valign="bottom" nowrap width="12%">
2,141 
</td>
<td valign="bottom" nowrap width="14%">
1.1%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="13%">
Perth
</td>
<td valign="bottom" nowrap width="12%">
8,909 
</td>
<td valign="bottom" nowrap width="16%">
4.4%
</td>
<td valign="bottom" nowrap width="14%">
6,935 
</td>
<td valign="bottom" nowrap width="15%">
3.4%
</td>
<td valign="bottom" nowrap width="12%">
6,121 
</td>
<td valign="bottom" nowrap width="14%">
3.0%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="13%">
Melbourne
</td>
<td valign="bottom" nowrap width="12%">
9,744 
</td>
<td valign="bottom" nowrap width="16%">
1.8%
</td>
<td valign="bottom" nowrap width="14%">
12,619 
</td>
<td valign="bottom" nowrap width="15%">
2.2%
</td>
<td valign="bottom" nowrap width="12%">
10,564 
</td>
<td valign="bottom" nowrap width="14%">
1.9%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="13%">
Brisbane
</td>
<td valign="bottom" nowrap width="12%">
11,505 
</td>
<td valign="bottom" nowrap width="16%">
3.6%
</td>
<td valign="bottom" nowrap width="14%">
10,519 
</td>
<td valign="bottom" nowrap width="15%">
3.2%
</td>
<td valign="bottom" nowrap width="12%">
8,911 
</td>
<td valign="bottom" nowrap width="14%">
2.7%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="13%">
Canberra
</td>
<td valign="bottom" nowrap width="12%">
569 
</td>
<td valign="bottom" nowrap width="16%">
0.9%
</td>
<td valign="bottom" nowrap width="14%">
829 
</td>
<td valign="bottom" nowrap width="15%">
1.3%
</td>
<td valign="bottom" nowrap width="12%">
594 
</td>
<td valign="bottom" nowrap width="14%">
0.9%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="13%">
Sydney
</td>
<td valign="bottom" nowrap width="12%">
15,775 
</td>
<td valign="bottom" nowrap width="16%">
2.3%
</td>
<td valign="bottom" nowrap width="14%">
25,177 
</td>
<td valign="bottom" nowrap width="15%">
3.6%
</td>
<td valign="bottom" nowrap width="12%">
22,426 
</td>
<td valign="bottom" nowrap width="14%">
3.2%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="13%">
Darwin
</td>
<td valign="bottom" nowrap width="12%">
941 
</td>
<td valign="bottom" nowrap width="16%">
3.1%
</td>
<td valign="bottom" nowrap width="14%">
1,317 
</td>
<td valign="bottom" nowrap width="15%">
4.3%
</td>
<td valign="bottom" nowrap width="12%">
1,193 
</td>
<td valign="bottom" nowrap width="14%">
3.8%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="13%">
Hobart
</td>
<td valign="bottom" nowrap width="12%">
126 
</td>
<td valign="bottom" nowrap width="16%">
0.4%
</td>
<td valign="bottom" nowrap width="14%">
121 
</td>
<td valign="bottom" nowrap width="15%">
0.4%
</td>
<td valign="bottom" nowrap width="12%">
144 
</td>
<td valign="bottom" nowrap width="14%">
0.5%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="13%">
National
</td>
<td valign="bottom" nowrap width="12%">
74,113 
</td>
<td valign="bottom" nowrap width="16%">
2.3%
</td>
<td valign="bottom" nowrap width="14%">
82,558 
</td>
<td valign="bottom" nowrap width="15%">
2.5%
</td>
<td valign="bottom" nowrap width="12%">
72,574 
</td>
<td valign="bottom" nowrap width="14%">
2.2%
</td>
</tr>
</tbody></table>
SQM’s calculations of vacancies are based on online rental listings that have been advertised for three weeks or more compared to the total number of established rental properties.
SQM considers this to be a superior methodology compared to using a potentially incomplete sample of agency surveys or merely relying on raw online listings advertised. 
The managing director of SQM Research, Louis Christopher said, the decline in vacancies is expected in January as December usually has a higher seasonal listings.
"It still appears to be a tenants market in Darwin and Sydney where vacancy rates are high at 3.8% and 3.2% respectively," he said. 
"Going forward, we expect another seasonal decline in vacancies for the month of February.
"However for the year our expectation is national vacancy rates will rise at the national level, driven by rises in Sydney." 
The decline in vacancies saw asking rents for houses in capital city increase 0.2% over the month to 12 February 2019 to $560 a week.
Unit asking rents also increased 0.7% to $442 a week. Over the year, asking rents for houses declined 0.4% while unit asking rents remained steady.
Hobart recorded the highest weekly rental increase of 4.8% for units but house weekly rents declined 0.6% declined. Just 12 months ago, Hobart’s house asking rent had increased by 4.3%.
Sydney, Melbourne and Perth recorded marginal increases in both house and unit asking rents over the month to 12 February 2019.
Whilst Darwin, Brisbane and Adelaide recorded declines in weekly rents for both houses and units.  Canberra’s house rentals increased 1.6% but unit asking rents declined 1.7%.
<a href="https://www.propertyobserver.com.au/images/2019/2/12/sqm%201.jpg" target="_blank">Click here</a> to enlarge:
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/2/12/sqm%201.jpg" alt="">
SQM's <a href="http://www.sqmresearch.com.au/graph_vacancy.php?region=nsw::Sydney&amp;type=c&amp;t=1#terms" target="_blank">methodology page</a> explains how SQM’s vacancies are compiled.
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Vacancy rates decline in January across most capital cities

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SQM's Louis Christopher has forecast dwelling prices across Sydney are likely to fall 6 percent to 9 percent during 2019. 
It will happen for the most part in the first half of the year, he suggests.
"There is a chance we may well see a bottoming out but that is dependent on a number of events which have not yet unfolded, for example we may see the RBA intervene in the market," he told a <a href="http://harrispartners.com.au/resources/videos" target="_blank">Harris Partners podcast</a>.
"It's looking increasingly likely that this will be a 15%-20% peak to trough decline."
<a href="https://www.propertyobserver.com.au/subscribe" target="_blank"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/1/Subscriber%20strip%20ad.jpg" alt=""></a>
Christopher described the inner west as a market "correctly fairly fiercely" because the market was overvalued.
"I think we will still see some fairly rapid falls," he said.
Christopher noted the ongoing crosschecking of loan applicants incomes and expenses.
"That will result in a number of potential buyers having less borrowing power.
"I fear there may be a second credit crunch playing out in 2019.
"If the RBA come to the view that these price drops could lead to an economic recession, it is likely they will cut rates to put a floor in the market place."
Louis Christopher is the <a href="http://sqmresearch.com.au/about-us.php" target="_blank">managing director at SQM Research.</a> 
 
 
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SQM's Louis Christopher affirms Sydney prices to fall 6 percent to 9 percent during 2019

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<div>
<div>EXPERT OBSERVER</div>
</div>
<div>
 Just a quick update on a few thoughts and stats on the market as we start the new property year off this weekend.   Firstly, Sydney and Melbourne valuation points have improved with the price declines but both markets remain heavily overvalued on our favoured measurement, which is house prices to nominal GDP. Both markets could do with another year of price drops. If we were to have it (and we think there will be more price declines), then valuations would at least return to closer longer term trends for Sydney. Melbourne still needs to correct some more. <img src="https://gallery.mailchimp.com/9badbd870addb4af72206c2eb/images/94248197-92c6-4585-87be-a0f3318f26a7.png" data-imagetype="External">
</div>
<div>
 <img src="https://gallery.mailchimp.com/9badbd870addb4af72206c2eb/images/06d1119b-c91c-42eb-bacd-aa0bba793422.png" data-imagetype="External">
</div>
<div>
 Of course, there is a massive difference between where prices ‘should’ be and where they may actually go. All I do know is when housing prices do eventually bottom in this cycle (very unlikely to be this year), the housing bears will no doubt be forecasting (and demanding!) yet more declines. Housing bears are notoriously hopeless in picking housing market bottoms and I can assure you now it will be no different in this cycle! As mentioned, this coming weekend will be the opening of the new auction season for Sydney and Melbourne. We can expect just over 150 auctions in Sydney and around 200 for Melbourne. As each weekend goes by in February, auctions numbers will increase to the point where the market will should reach its full volume on the 2nd of March with about 850 to 1000 Saturday auctions that day for each city.</div>
<div> </div>
<div>
<a href="https://www.propertyobserver.com.au/subscribe" target="_blank"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/1/Subscriber%20strip%20ad.jpg" alt=""></a> As per the opening of each season, auction clearance rates will likely rise from the December lows. I am expecting Sydney to rise back into the late 40s or maybe early 50s after unreported results. While Melbourne may reach the high 50s. Be careful of the media reading too much into this. Some may herald this as a recovery in the housing market.  It won’t be. Just recall this time last year the market opened up with Sydney recording a clearance rates in the high 50s and Melbourne actually touched 70%. No, this downturn still has some legs to run yet. As mentioned above, Sydney and Melbourne remain heavily overvalued despite the price falls that have happened, there is a election just a few months away where negative gearing is at play, and then the banks are still being very draconian on providing loans to the market. But I have noticed one thing – there are more bargain hunters in the market. And the first home buyers are somewhat out. This downturn has been going on for over 18 months now. Its not new any more and the longer it goes for, the more sensitive it will be to any stimulus thrown at it.  APRA have also signalled a reversal of policy. Back prior to Christmas, APRA scrapped its interest only <a id="LPlnk67935" href="https://sqmresearch.us5.list-manage.com/track/click?u=9badbd870addb4af72206c2eb&amp;id=2a328c6fb0&amp;e=0aab96dc54" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable">lending limits</a>, which was in our view the final straw for the market when the interest only limits were brought in earlier 2017.  Speculation is rising that the next move from APRA may well be to lower the 7% buffer threshold to maybe 6% or lower still. This buffer is a minimum servicing requirement that’s of the loan applicant if they could handle an average lending rate of 7%. With average lending rates in the 4s it is now very hard to see a scenario where lending rates lift by some 300 basis points. In the current environment, doing so would probably see revolution on the streets, let alone the deepest housing crash in history.   So, what are our forecast again? <img src="https://gallery.mailchimp.com/9badbd870addb4af72206c2eb/images/d8d04315-ef9c-44aa-9857-46476dcd0c83.png" data-imagetype="External"> Nothing much has changed in our view since the release of our results. We think our base case is very much in play but I do also think the odds have increased just a little more that instead of a possible rate cut later this year, the RBA will lean on APRA as mentioned above. Doing so may well create the same effect as a rate cut which  in turn, just might create a bottom in the current housing downturn, especially if APRA keeps loosening lending restrictions into 2020. Offsetting this view will be fears by investors over the repeal of negative gearing, assuming Labor wins in May plus the ongoing hard core scrutiny of the banks on loan applicants.  For now, there is no rush for buyers to enter into the market. But keep an eye out for easy pickings. We have quite a few distressed listings in our Distressed Property report now. Some 23,000 of them, of which, many vendors are quite negotiable…</div>
<div>
Louis Christopher is the <a href="http://sqmresearch.com.au/about-us.php" target="_blank">managing director at SQM Research.</a> 
<div>
<div id="cpgAdsenseContainerId"><ins id="aswift_0_expand" data-ad-slot="3195360564"></ins></div>
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louischristopher-TWpYcZDLBK

Housing bears are notoriously hopeless in picking housing market bottoms: Louis Christopher

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The national vacancy rate rose to 2.5 percent in December, up from 2.3 percent in November, according to SQM Research.
Sydney and Canberra were the biggest contributors, with both of their vacancy rates increasing 0.4 percent.
Sydney's vacant rate is currently the second highest of all capital cities at 3.6 percent, with 25,177 properties available for rent.
Canberra's is at a lot 1.3 percent, with just the 829 properties for rate.
Louis Christopher, managing director of SQM Research, said 2019 could become a tenants market.
"The rise in vacancies continue into December due to seasonality, with Hobart continuing to face ongoing tight rental conditions however rents in Hobart have decreased over the month for both houses and units.”
 “If current vacancy rate levels continue to rise into January and February, Darwin, Sydney, Brisbane and Perth will be a tenant’s market in 2019,” Christopher said.
The total number of vacancies Australia-wide increased to 82,558 – an additional 7,968 properties now available for rent since November 2018.
Click here <a href="https://www.propertyobserver.com.au/images/2019/1/15/SQM-Rents.jpg" target="_blank">to enlarge</a>.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/1/15/SQM-Rents.jpg" alt="">
Darwin has the highest vacancy rate at 4.3 percent. 
Perth follows Sydney as the third highest capital vacancy rate, although it's remained steady at 3.4 percent from November and well down from 4.6 percent a year ago when it was the highest of all capital cities.
Brisbane edged higher in December from three percent to 3.2 percent in November. A year ago the vacancy rate sat at 3.8 percent.
Melbourne's vacancy rate is at a low 2.2 percent, but increased from its 1.9 percent rate in November. It's up just 0.1 percent from a year ago.
Adelaide rose 0.1 percent in December, but is down from 1.5 percent in December 2017. 
Hobart has continued its record low vacancy rate of 0.4 percent with no change from November.
Asking rents for houses grew 0.7 percent over the month to 12 January to $559 a week.
Unit asking rents also grew 0.7 percent over the same period to $429 a week.
Over the year, asking rents for houses rose 0.7% while unit asking rents slipped 0.2%.
 
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jrobinson-rf4aSBido9

Sydney and Canberra drive national vacancy rates higher in December: SQM Research

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National residential listings jumped 7.9% in November 2018 with the expected seasonal uptick in stock on market, according to SQM Research.
Listings rose across every capital city, growing from 335,014 in October to 361,619 in November.
The rise was just shy of national listing rise of 8.1 percent this time last year.
Sydney's property listings rose by 7.5% over the month to 39,772, the highest reading since 2009. Listings are up over 20% from a year ago in the harbour capital.
Melbourne saw a November spike of 11.6% to be over 32% higher than a year ago.
Hobart saw the highest stock level surge, rising 17.2% over the month, however down one percent from last November.
Canberra (12.5%), Adelaide (11.8%), Perth (9.7%) and Brisbane (8.4%) all saw strong listing increases.
Darwin, despite being some way off the rest, saw listings rise 4.4%, 
“We are also finally seeing some relief in Hobart, with listings jumping in November, helping to reverse a shortage of properties available for sale,” he said.
Louis Christopher, managing director of SQM Research, said a rise in listings is normal in November as people try sell properties before the year’s end.
An additional weekend made it into November rather than October, also helping to lift listings over the month.
“November listings usually jump ahead of the market slowing during the Christmas and New Year’s break, so the results are expected. That said, the year-on-year increases in Sydney and Melbourne are large. The market in these big cities is now flooded with stock. Vendors who do not price their properties realistically will not sell in this market. It has been a particularly bad spring selling season for vendors and agents alike,” Christopher said.
“We are also finally seeing some relief in Hobart, with listings jumping in November, helping to reverse a shortage of properties available for sale,” he said.
“It is also likely this will be the peak in listings for the year as we expect the December reading to fall given the Christmas break," he said.
Capital city average asking prices for houses fell to $932,600 while unit asking prices were steady at $569,300 over the month to December 4.
 Asking house prices in Sydney dropped again, by 2.3% to $1.274 million, to be down 5.2% from a year earlier. Unit prices too fell by 1.0% to $696,000, reflecting the surplus of stock in Australia’s biggest city. 
Melbourne asking house prices rose 0.4% to $963,200, while unit prices were up 0.5% to $555,800. Canberra’s asking house prices in contrast rose by 0.8% over the month to $$836,500 be up 7.3% from a year ago, the greatest growth of any capital city. 
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Residential listings jump in November: SQM Research

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The total peak to trough declines in Sydney and Melbourne could reach 12 and 17 percent by the end of 2019, according to new research from SQM Research.
The most likely 'base case' prediction from SQM is that the two biggest housing markets will decline a further six to nine percent by the end of next year.
The base case forecasts assume no changes in interest rates, a Labor win at the next Federal Election with Negative Gearing repeal and CGT changes coming into effect 1 July 2020. 
The second scenario, which relies on an out of cycle rate hike by the banks and an official RBA rate cut in late 2019, suggests prices could decline up to 11 percent in both Sydney and Melbourne.
SQM also believes that, should the RBA not intervene in the market, 2020 could also record price declines due in part to the repeal of negative gearing, which is a firmly stated Labor party objective.
This would be the worst case scenario, which could see total peak to trough declines in the range of 20% to 30% for our two largest capital cities.
Click here <a href="https://www.propertyobserver.com.au/images/2018/11/15/SQM%20BB%201.JPG" target="_blank">to enlarge.</a>
<img src="https://www.urban.com.au/images/2018/11/15/SQM%20BB%201.JPG" alt="">
SQM managing director Louis Christopher said if the RBA does not respond and/or the bank lift interest rates again in 2019, it is possible the peak to trough falls in Sydney and Melbourne could be even more than this negative range.
"But we do take the view that the downturn in Sydney and Melbourne will be a significant negative for the overall economy, and so the central bank will eventually respond at some point and cut interest rates," Christopher said.
“The looming changes of Negative Gearing and Capital Gains Tax are increasingly weighing on investor sentiment. Quite frankly implementing these changes during a housing downtown is very risky and may trip the economy into a recession,” Christopher added.
SQM’s "base case"" forecast is for national dwelling prices to fall between -6% to -3%, which is a continuation of the current falls of 4.5% over the past 12 months.
Other cities will record mixed results with Hobart expected to have a third year of strong price rises of 5% to 9%.
SQM Research also anticipates a recovery in the Brisbane and Perth rental markets in 2019 with Canberra to also record solid rental increases. However Darwin will continue to record steep declines in both rents and prices as the local Northern Territory economy enters recession.
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Sydney to decline 17 percent peak to trough: SQM

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Figures by SQM Research reveal national residential listings fell slightly in October 2018 to 335,014 from 335,854 in September.
Compared to a year ago, national listings rose 3.3%, boosted by a big increase in Melbourne, where listings also bucked the national trend and increased 5.9% in October.
Over the year, the stock available for sale in Melbourne jumped by 24.3%. 
In Sydney, property listings rose by 2.4% over the month to be up 18.2% higher from a year ago.
Listings also jumped by 10.3% in Canberra over the month while asking house prices also continued to rise in the nation’s capital, compared to drops in Sydney and Melbourne. 
<a href="https://www.propertyobserver.com.au/images/2018/11/6/SQM%201.jpg" target="_blank">Click here</a> to enlarge:
 <img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/11/6/SQM%201.jpg" alt="">
Source: SQM Research
In Hobart, listings rose 0.6%, but remain down 12.9% from a year ago, reflecting a shortage of properties available for sale there.
In Perth, stock on market fell 1.1% in October, while Darwin’s listings dropped 4.9%. In Adelaide, listings dropped 3.2%. Listings were flat in Brisbane over the month. 
Louis Christopher, Managing Director of SQM Research, said a slight drop in listings is normal October after a rise in September listings.
"It is typical to record a slight decline in listings in October after an initial Spring jump in September," said Christopher.
"A second surge is usual in November, before the property market slows down for Christmas, and so we expect listings to rise again this month. 
"Having said that, listings were significantly up in Melbourne, creating large recorded rises over the year, which is illustrative of the downturn Melbourne has entered into.
"In Sydney too, listings are up compared to a year earlier, as well as Canberra, as more vendors consider selling."
Asking Prices
Capital city average asking prices were steady for houses at $939,200 while unit asking prices fell 0.4% to $569,500 over the month to 6 November.
Asking house prices in Sydney fell again, by 0.3% to $1.30 million, to be down 2.8% from a year earlier. Unit prices too fell by 0.4% to $702,700, as the property market continues to correct in Australia’s biggest city. 
Melbourne asking house prices fell again to $959,200, though unit prices were up 0.5% to $553,100. Canberra’s asking house prices in contrast rose by 0.7% over the month to 6 November to be up 12.7% from a year ago, the greatest growth of any capital city. 
<a href="https://www.propertyobserver.com.au/images/2018/11/6/SQM%202.jpg" target="_blank">Click here</a> to enlarge:
 <img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/11/6/SQM%202.jpg" alt="">
<a href="https://www.propertyobserver.com.au/images/2018/11/6/SQM%203.jpg" target="_blank">Click here</a> to enlarge:
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/11/6/SQM%203.jpg" alt="">
Source: SQM Research
 
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Property listings slip modestly in October: SQM Research

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The national residential vacancy rate was steady at 2.1% in September 2018, according to data released by SQM Research.
The number of vacancies Australia-wide sat at 70,172 properties.
At a capital city level, Sydney’s vacancy rate remained at its highest level in 13 years, unchanged at 2.8% in September from August with 19,469 properties available for rent.  
Melbourne’s vacancy rate rose to 1.7% in September from 1.6% in August with 9,676 dwellings available for rent.  
Hobart’s vacancy rate slipped to just 0.4% and Canberra’s tightened to 0.6%. 
<a href="https://www.propertyobserver.com.au/images/2018/10/16/SQM%201.jpg" target="_blank">Click here </a>to enlarge:
 <img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/10/16/SQM%201.jpg" alt="">
Brisbane’s vacancy rate rose to 2.9% from 2.8% in September, but was down from 3.5% a year ago.
Perth’s vacancy rate fell to 3.6% from 3.7% from August, being well down from 4.9% a year ago as the oversupply of rental properties.
Darwin’s vacancy rate rose to 3.6% from 3.5% while Adelaide's slipped to just 1.1% from 1.2%.
SQM’s calculations of vacancies are based on online rental listings that have been advertised for three weeks or more compared to the total number of established rental properties.
Louis Christopher, Managing Director of SQM Research, said:
“There is now an extreme shortage of rental accommodation in Hobart with just over 100 properties vacant and available to rent.  
“Hobart rents have already been rising well above the national average for the past three years and I think that is likely to continue for the foreseeable future as the construction pipeline is not keeping up with underlying demand.
“There is a similar situation in Canberra.
“While we may speak of a surplus of rental properties in our largest city Sydney, this is a timely reminder that we have a mixed national housing market overall.”
Asking Rents
Capital city asking rents for houses were steady over the month to 12 October 2018 at $552 a week, while Unit asking rents fell to 0.7% to $437 a week, SQM Research said.
Over the year, asking rents for houses rose just 0.4% while unit asking rents slipped 0.2%.
The asking rent for a three-bedroom house in Sydney remains the highest nationwide at $714 a week and $513 a week for two-bedroom units.
Asking unit rents were down 0.4% in Sydney over the month while asking house rents rose 0.9%. 
Asking rents in Melbourne have fallen, with unit down 0.7% over the month to 12 October to $406 a week while asking rents for houses fell 0.5% to $524.
<a href="https://www.propertyobserver.com.au/images/2018/10/16/SQM%202.jpg" target="_blank">Click here</a> to enlarge:
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/10/16/SQM%202.jpg" alt="">
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