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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EXPERT OBSERVER
I was disappointed and unhappy with how the 60 Minutes segment Bricks and Slaughter, which aired on Sunday and sensationalised the country’s property downturn. The interview I conducted with the 60 Minutes team spanned approximately 45 minutes, of which approximately one minute was featured in the segment.  I stated in my interview with 60 Minutes the risks as well as the safety valves that are still present in the property market, including strong local economies, strong population growth, banks very unlikely to fail, the RBA and/or the Federal Government likely intervening in the property market should the market quickly deteriorate. The program covered my comments on the risks and overvaluation only, which distorted my views. During the interview, I actually covered the following:
<ul>
<li>A city-by-city state of the market. Which capital city markets are strong. Which are not.</li>
<li>The magnitude of overvaluation of Sydney and Melbourne and how the markets got to that point.</li>
<li>The weakening rental market in Sydney.</li>
<li>How many distressed properties there were in Sydney and where they are located.</li>
<li>How the market is vulnerable to further price falls if any adverse factors came along.</li>
<li>The banks potentially holding back information on the health of the market.  </li>
<li>The rapid growth of the non-bank financial sector.</li>
</ul>
  Crash unlikely Overall, I think a full blown housing crash scenario playing out is unlikely. What is far more likely is that Sydney and Melbourne will record further ongoing price declines, followed by a lengthy period of price stagnation. The magnitude of those price declines still depends upon future events that have yet to unfold, if they do at all. A housing crash in Sydney and Melbourne is unlikely for the following reasons:
<ul>
<li>Our various government bodies have the capacity and the will to intervene if such a scenario were to become apparent. They can cut interest rates. They can introduce a first home owner grant. They can introduce quantitative easing. They can loosen recent regulatory requirements on the banking sector. There are precedents for all these actions.</li>
<li>Leading indicators such as auction clearance rates, housing finance approvals, rental vacancy rates, credit growth rates, while not always perfect in their forecasting abilities, are suggesting this will be a correction that will be material but not calamitous. SQM Research continues to monitor these indicators closely for further deterioration.</li>
<li>The economy is healthy and has shown itself to be somewhat resilient when past housing downturns have come and gone.</li>
<li>Population growth rates are still very strong, if not excessive.</li>
<li>
The mining downturn has come to an end and the mining sector is now creating positive input into the economy.
</li>
<li>
While it has become tougher to qualify for a home loans, the banks are still lending and conservatively competing for borrowers within the APRA boundaries set.
</li>
</ul>
This all said, a housing crash, however unlikely, is not an impossible scenario. A string of events couldmaterialise that could translate to peak to trough declines in our two largest cities of greater than 20%.  Such events could include:
<ul>
<li>A significant additional contraction in the supply of housing credit brought upon by perhaps a second global financial crisis.</li>
<li>
A deep domestic recession triggering sharply rising unemployment which would have flow on effects into housing in the form of lower demand and rapidly rising defaults thereby creating a cascading effect of bank forced sales.
</li>
<li>A nationwide oversupply of new real estate brought upon by either too much speculative property investment combined with rapid cuts in population growth rates.</li>
<li>A rapid cut in population growth rates.</li>
<li>A rapid and significant rise in lending rates.</li>
<li>A lengthy series of other miscalculated policy action.</li>
</ul>
There is also the possibility of an adverse feedback loop whereby the housing market commences a correction which triggers a domestic recession. Such a recession could easily feedback into the housing correction, turning it into a crash. I am watchful of this scenario but I do believe governments would intervene to prevent this possibility. I note some recent mixed signals in the economy via weakening retails sales data and new car sales data but other sectors of the economy remain robust including ongoing strong jobs creation. Overvaluation still present The Sydney and Melbourne housing markets though, despite the recent falls, remain excessively overvalued and in our opinion vulnerable to future negative adverse events. These events, while perhaps may not be strong enough to create a precipitous crash, may still create larger price falls than currently recorded.  These events could include:
<ul>
<li>The banks, out of step with the RBA, lift lending rates once again.</li>
<li>The repeal of negative gearing which is the Labor Party’s current policy.</li>
</ul>
<img src="https://gallery.mailchimp.com/9badbd870addb4af72206c2eb/images/43f1ddc7-57bb-4e87-a681-2468410b5979.jpg" width="550" height="338"> <img src="https://gallery.mailchimp.com/9badbd870addb4af72206c2eb/images/a65c3eb1-9d45-435f-a3c4-0267f23c5ac4.jpg" width="550" height="361"> SQM Research measures relative housing market valuation by studying dwelling price changes to changes in nominal GDP, which is a good measure of a nation’s total income. We have found there is a relationship between the two where in the past, excessive dwelling price growth over nominal GDP growth has eventually unwound. The charts presented illustrate the relationship as well as where Sydney and Melbourne currently sit. The red lines effectively represent the excess (in other words overvaluation) over and above of dwelling prices to nominal GDP while the green represents a discount (undervaluation). The charts clearly illustrate that both Sydney and Melbourne are excessively overvalued. Indeed, on our numbers, Melbourne has never been more overvalued since the data began in the mid-1980s.  Our forecasts for 2019 will hopefully be released by November via the 2019 Housing Boom and Bust Report. I do note that the current downturn has parallels with the one incurred by Sydney between 2003 to 2006. During that downturn, prices fell by 9.6% from peak to trough. The magnitude of overvaluation was similar to what we are experiencing now (indeed it was slightly worse on our numbers). The magnitude of oversupply that was in the Sydney market at the time is also similar to now. Finally, banks also took some steps to restrict lending to new apartments in the Sydney inner-city market. The levels of lending restrictions now are greater than at that point in time. So the current thinking is that this current downturn will be at least on par with the 2003 to 2006 downturn. And given the price falls to date (down 6.5% for Sydney) the market will likely have a larger fall. How much more, we are very unsure at this stage as the final result will be driven by events (some of those mentioned above) that have yet to pass. As per previous years, the Housing Boom and Bust Report will provide further evidence backed details surrounding our forecasts. Overall the point of the exercise for me featuring on 60 Minutes was to note that any additional adverse events or adverse policy action could trigger a deeper correction which may have consequences for the economy overall. The property market is vulnerable right now and will remain that way until we see valuations return to more normal levels.   Unfortunately, the segment was sensationalist to say the least and so going forward, I have decided to only work with trusted reporters and to heavily rely on our newsletter to put forward any messages.
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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jrobinson-rf4aSBido9

SQM's Louis Christopher disappointed with 60 Minutes Bricks and Slaughter editing 

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The national residential vacancy rate dipped to 2.1% in August 2018, according to SQM research, however Sydney’s vacancy rate remained at its highest level in 13 years.
An oversupply of rental property is keeping asking rents down in the harbour capital.
The number of vacancies across the country sat at 70,447 properties. 
Sydney’s vacancy rate was unchanged at 2.8% from July with 19,114 properties available for rent, and remains at the highest level since SQM started recording the data in 2005, and well up from 1.9% a year ago.
Click here <a href="https://www.propertyobserver.com.au/images/2018/9/18/sqm1.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/2018/9/18/sqm1.jpg" alt="">
Hobart recorded the lowest vacancy rate of 0.5 percent, although higher than this time last year. Melbourne's vacancy rate has remained steadfast at 1.6 percent for over 12 months.
Brisbane has been the biggest mover in the last 12 months. In August last year its rate stood at 3.4 percent. Now it's 2.8 percent, having dropped 0.1 percent since July 2018.
Perth has followed a similar pattern, dropping from 4.9 percent this time last year to its current 3.7 percent. Darwin's vacancy rate was the only capital city rise, from 3.4 percent to 3.5 percent.
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Capital city asking rents for houses rose over the month to 12 September 2018 by 0.7% to $552 a week. Unit asking rents were steady at $440 a week. Over the year, asking rents for houses and units rose just 0.5%.
Click here <a href="https://www.propertyobserver.com.au/images/2018/9/18/Sqm2.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/2018/9/18/Sqm2.jpg" alt="">
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Louis Christopher, managing director of SQM Research, said asking rents had eased in Sydney given the greater supply of rental accommodation, which is now verging on oversupply. 
“The trend for the vacancy rate is definitely up and, as a result, Sydney is increasingly becoming a tenant’s market," Christopher said.
"Over the year to 12 September, asking rents for houses in Sydney dropped by 3.4% and we expect to see further falls. 
"In contrast, the tight rental markets in Hobart and Canberra are continuing to push asking rents higher,” he said. 
 
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National vacancy rate dips in August but Sydney at 13 year highs: SQM

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National residential listings rose nearly six percent in August, according to SQM Research, however asking house prices fell 1.9 percent and unit prices fell 0.5 percent.
The highest property listing increase was found in Sydney where listings were up 10.9% in the month, and up over 30% percent from this time last year.
Sydney residential property listings are now at the highest level recorded since February 2009, surpassing the peak in listings recorded during the 2010-12 housing downturn.
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In Melbourne, listings jumped 16.3%, to be up 25.3% over the year to August 31. 
Click here <a href="https://www.propertyobserver.com.au/images/2018/9/4/listings.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/2018/9/4/listings.jpg" alt="">
Stock on market rose 10.7% in Canberra while even in Hobart, listings rose 4.5%, though they remain sharply down from a year ago, reflecting a shortage of properties available for sale in the Tasmanian capital. 
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Listings rose 5.2% in Brisbane in August from July and by 4.9% in Adelaide. In Perth, stock on market rose 3.8% in August while Darwin’s listings increased by 2.2%. 
SQM Research managing director Louis Christopher said the increase in the supply of properties for sale has emerged in all capitals. However, numbers were inflated by five weekends falling during August, up from four in July. 
“That made a significant difference to stock levels in August, which were boosted by the fifth weekend," Christopher said.
"In addition, some home owners are readying for a sale and want to list their homes sooner rather than later before prices fall any further, especially in Sydney, where asking house prices are down 2.1% over the month to 4 September. 
"That is also true of Melbourne, where the property market has slowed, reflected in a 1.2% drop in asking house prices over the month."
Asking Prices 
Capital city average asking prices fell 1.9% for houses to $942,800 while unit asking prices fell 0.5% to $573,600 over the month to September 4.
Melbourne asking house prices fell to $972,000, back below $1 million, while asking house prices in Sydney fell even more, by 2.1% to $1.32 million. 
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Only in Adelaide did asking house prices rise, up by 0.2% over the month, though prices are down by 1.7% over the year to 4 September. 
Asking house prices were down by 0.2% over the month in Hobart. Canberra prices too dipped, down 1.8% over the year to $799,200.
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Key Points 
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<li>
National residential listings rose 5.9% in August 2018 from July. 
</li>
<li>
Listings rose by 10.9% in Sydney, up 30.4% higher from a year ago. 
</li>
</ul>
</div>
</div>
</div>
<div class="page" title="Page 3">
<div class="layoutArea">
<div class="column">
<ul>
<li>
Sydney residential property listings are now at the highest level recorded since February 2009, surpassing the peak in listings recorded during the 2010-12 housing downturn. 
</li>
<li>
Melbourne listings rose 16.3%, to be up 25.3% higher over the year to August 31. 
</li>
<li>
Listings rose in Hobart by 4.5% in August but are down 18.8% from a year earlier. 
</li>
<li>
Capital city average asking prices fell 1.9% for houses to $942,800 while unit asking prices fell 0.5% to $573,600 over the month to 4 September. 
 
</li>
</ul>
</div>
</div>
</div>
</div>
</div>
</div>
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National listings rise in August but asking prices fall: SQM Research

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Data released by SQM Research has revealed the national residential vacancy rate dipped to 2.2% in July 2018.
But the vacancy rate in Sydney remains at its highest level in 13 years, which has pushed down asking rents in the nation’s biggest city. 
The number of vacancies Australia-wide sat at 72,458 properties.
Sydney’s vacancy rate was unchanged at 2.8% from June, the highest level since SQM started recording the data in 2005, and well up from 1.9% a year ago with 19,114 properties available for rent. 
In contrast, to Sydney, Melbourne’s vacancy rate is much lower, just 1.6% in July, though unchanged from June and a year ago. 
<img src="https://www.urban.com.au/images/2018/8/14/SQM%201.png" alt="">
Brisbane is enjoying a sustained reduction in its vacancy rate, falling to 2.9% in July, down from 3.0% in June and 3.6% in July 2017. The decline in Brisbane follows five straight monthly declines in rental vacancies in the first half of 2018.
Canberra’s vacancy rate slipped to 0.8%, down from 0.9% in June and 1.1% a year ago. Hobart's vacancy rate was steady at 0.7% in July, but up from 0.5% a year ago. Adelaide’s vacancy rate fell to 1.3% from 1.5%, and down from 1.8% a year ago.
Darwin’s vacancy rate fell to 3.4% from 3.5% in June. Perth’s vacancy rate slipped to 4.0%, and is well down from 5.2% a year earlier as the oversupply of rental properties eases in that city. 
Louis Christopher, Managing Director of SQM Research, said asking rents had eased in Sydney given the greater supply of rental accommodation – and he expects rents to keep falling.
“The supply of rental accommodation, especially of new units, has jumped following the building boom in the city. Sydney has also experienced slowing population growth, which has helped to push asking rents lower, as landlords increasingly struggle to fill properties. In contrast, the tight rental market in Hobart is continuing to push rents higher,” Christopher said.
Asking Rents
Capital city asking rents for houses fell over the month to 12 August 2018 by 0.2% to $548 a week. Unit asking rents dropped 0.9% to $440 a week. Over the year, asking house rents rose just 0.2% and unit rents rose a modest 0.5%.
The asking rent for a three-bedroom house in Sydney is the highest nationwide at $707 a week, but fell 0.3% over the month to 12 August. Asking unit rents now stand at $515, down 1.2%. Canberra asking house rents stand at $626 a week and $437 for units. Hobart’s unit asking rents jumped 3.7% over the month to 12 August to $360 a week while house rents rose 0.4% to $400.
<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/2018/8/14/SQM%202.jpg" alt="">
 
</body></html>

j.ballantyne1990-6AQqhLzZaK

Sydney vacancy rate remains at 13-year high: SQM Research

<html><body>
Figures released today by SQM Research reveal national residential listings rose 1.9% in June 2018.
Total listings went up to 331,407 led by a jump in Brisbane properties hitting the market.
Strong rises were also posted in Sydney and Melbourne, with greater stock in those cities pushing down asking house prices.
Click here <a href="https://www.propertyobserver.com.au/images/2018/7/4/SQM%20.JPG" target="_blank">to enlarge.</a>
<img src="https://www.urban.com.au/images/2018/7/4/SQM%20.JPG" alt="">
Property listings rose 3.8% in Brisbane in June, while in Sydney listing rose by 3.0% from May to be up 25.0% from a year earlier.
In Melbourne, listing rose by 2.3% to be up 7.7% over the year to June 30.
In Canberra, listing rose by 1.1%, 11.0% higher than a year ago.
Listing were steady in Hobart, but they are 25.8% lower than a year earlier, with a property shortage still prevailing there.
Louis Christopher, managing director of SQM Research, said "A greater supply of properties for sale has emerged in most capital cities compared to a year ago, however, that has weighed on asking property prices, especially in Sydney and Melbourne".
“We are seeing more property being listed in Sydney and Melbourne compared to a year ago, which is pushing down asking house prices in both cities and even in Hobart, price growth has slowed despite the ongoing shortage of properties for sale there,” said Christopher.
Click here <a href="https://www.propertyobserver.com.au/images/2018/7/4/SQM%20%202.JPG" target="_blank">to enlarge.</a>
<img src="https://www.urban.com.au/images/2018/7/4/SQM%20%202.JPG" alt="">
Capital city average asking prices fell 1.4% for houses to $962,600 while unit asking prices rose just 0.2% to $580,600 for the month to 3 July.
Sydney led the losses, with asking house prices falling 1.4%. Over the year, asking house prices were down by 0.2% to $1.35 million, reflecting a slowdown of the property market in the nation’s largest capital city.
In Melbourne, asking price for houses fell 1.3% over the month and rose 6.4% over the year, lower than 20%-plus levels a year ago.
Hobart’s growth in asking property prices is cooling too despite a fall in listings, with house prices up by 2.4% over the month to 3 July and up just 5.7% over the year, also down from 20%-plus gains a year through 2017.
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National property listings rise while asking house prices slide in big cities : SQM

<html><body>
SQM Research has revised down its forecasts for 2018.
It follows recent market evidence that dwelling prices have been falling in Sydney and to a lesser extent in, Melbourne this year.
Indicators such as auction clearance rates, total aggregated property listings and asking prices suggest further deterioration in market conditions in recent weeks, the property research company advised.  
As a result, SQM Research has had to revise down its initial forecasts in five of the capital cities compared to its forecast back in October 2017 via its annual Housing Boom and Bust report.
Click here <a href="https://www.propertyobserver.com.au/images/2018/5/7/sqm2.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/2018/5/7/sqm2.jpg" alt="">
The revisions came with the follow assumptions/Notes
<ul>
<li>No further APRA action taken in 2018.</li>
<li>Cash rate remains on hold at 1.5%.</li>
<li>The recent APRA announcement of lifting the 10% investment credit growth limit (26 April 2018) is likely to have an initial muted impact upon the market.</li>
<li>June quarter – seasonally the strongest quarter in the year, is likely to record a fall in dwelling prices.</li>
</ul>
Sydney
SQM Research believes the Sydney housing market may now record price declines for the year or at best, very small price gains, assuming property investor do come back to the market at a slow rate following the recent APRA announcement. The base case forecast has been downgraded to -4% to 0% dwelling price changes for 2018. 
Recent auction results suggest that market activity has further deteriorated during April. 
Actual auction clearance rates have ranged in the low to mid 50% range with the last weekend of April suggesting that the clearance rate may have dropped further to below 50%. These are levels which, historical, have translated into price falls.
Sydney’s Inner West, Lower North Shore and Eastern suburbs are recording higher clearance rates (average between 60-64%) suggesting the top end of Sydney’s residential housing market ($2.5m+) is holding.
Total Sydney listings year on year have now risen by over 34% and are now at similar levels recorded in 2011 - a point in time when Sydney dwelling prices fell 3% for the year. SQM Research expects listings to rise further in the current month of May.
Days on market for existing listings has increased to 118 days in April 2018 from 107 days recorded in April 2017. This data is backed by agents on the ground whom are reporting in unison that many properties are not moving. 
Asking prices for April fell 1.1% for houses and 0.6% for units – this suggests a degree of capitulation by property sellers which will likely mean a negative pricing result for the June Quarter.
Given the loosening of investment property credit growth restriction, there may be a response from Sydney investors. However, given other housing credit restrictions it is unlikely that the response will be significant. 
SQM noted that on a nominal aggregate incomes to dwelling prices measure, "the Sydney market is approximately 45% overvalued."
SQM Research expects this overvaluation to wind down somewhat over an extended period of time. 
SQM expects Melbourne to record a flat market, with risks on the downside that prices could fall for the year.
Click to <a href="https://www.propertyobserver.com.au/images/2017/10/18/Crash1.jpg" target="_blank">enlarge the previous forecast.</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/10/18/Crash1.jpg" alt="">
SQM's Louis Christoper tweeted this morning that the "main reason for the forecast range is a degree of uncertainty at our end about the impact of the recent lifting of investment property credit growth limits by APRA."
"Our expecation is a muted response from property investors," he advised.
 
</body></html>

Sydney prices to likely fall: SQM's revised 2018 forecast

<html><body>
National residential listings fell in April 2018 by 3.8 percent from March, according to SQM Research.
Asking prices also fell over the month.
A total of 325,147 properties were listed in April.
In Sydney, listings fell by 4.4% from March but are up 34.9% from a year earlier as some homeowners seek to take profits on their homes before any sustained drop in prices.
Melbourne listings fell by 3.7% though they are now up 6.4% from a year earlier, reversing a previous a shortage of properties for sale in that city.
Listings fell in Hobart by 8.4% in April and are still down sharply or 26.8% from a year earlier, with a shortage of properties for sale helping to force asking property prices higher over the year to 1 May 2018. 
<table class="t1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td class="td1" valign="middle">
City
</td>
<td class="td2" valign="middle">
April 2017 Total
</td>
<td class="td3" valign="middle">
March 2018 Total
</td>
<td class="td2" valign="middle">
April 2018 Total
</td>
<td class="td4" valign="middle">
Monthly change %
</td>
<td class="td5" valign="middle">
Yearly change %
</td>
</tr>
<tr>
<td class="td6" valign="middle">
Adelaide
</td>
<td class="td7" valign="middle">
15,579 
</td>
<td class="td8" valign="middle">
16,912 
</td>
<td class="td7" valign="middle">
16,235 
</td>
<td class="td9" valign="middle">
-4.0%
</td>
<td class="td10" valign="middle">
4.2%
</td>
</tr>
<tr>
<td class="td11" valign="middle">
Brisbane
</td>
<td class="td12" valign="middle">
28,082 
</td>
<td class="td13" valign="middle">
31,619 
</td>
<td class="td12" valign="middle">
30,419 
</td>
<td class="td14" valign="middle">
-3.8%
</td>
<td class="td15" valign="middle">
8.3%
</td>
</tr>
<tr>
<td class="td6" valign="middle">
Canberra
</td>
<td class="td7" valign="middle">
3,472 
</td>
<td class="td8" valign="middle">
4,060 
</td>
<td class="td7" valign="middle">
3,895 
</td>
<td class="td9" valign="middle">
-4.1%
</td>
<td class="td10" valign="middle">
12.2%
</td>
</tr>
<tr>
<td class="td11" valign="middle">
Darwin
</td>
<td class="td12" valign="middle">
2,010 
</td>
<td class="td13" valign="middle">
2,094 
</td>
<td class="td12" valign="middle">
2,089 
</td>
<td class="td14" valign="middle">
-0.2%
</td>
<td class="td15" valign="middle">
3.9%
</td>
</tr>
<tr>
<td class="td6" valign="middle">
Hobart
</td>
<td class="td7" valign="middle">
3,103 
</td>
<td class="td8" valign="middle">
2,479 
</td>
<td class="td7" valign="middle">
2,270 
</td>
<td class="td9" valign="middle">
-8.4%
</td>
<td class="td10" valign="middle">
-26.8%
</td>
</tr>
<tr>
<td class="td11" valign="middle">
Melbourne
</td>
<td class="td12" valign="middle">
30,434 
</td>
<td class="td13" valign="middle">
33,624 
</td>
<td class="td12" valign="middle">
32,378 
</td>
<td class="td14" valign="middle">
-3.7%
</td>
<td class="td15" valign="middle">
6.4%
</td>
</tr>
<tr>
<td class="td6" valign="middle">
Perth
</td>
<td class="td7" valign="middle">
25,397 
</td>
<td class="td8" valign="middle">
27,261 
</td>
<td class="td7" valign="middle">
26,548 
</td>
<td class="td9" valign="middle">
-2.6%
</td>
<td class="td10" valign="middle">
4.5%
</td>
</tr>
<tr>
<td class="td11" valign="middle">
Sydney
</td>
<td class="td12" valign="middle">
24,735 
</td>
<td class="td13" valign="middle">
34,901 
</td>
<td class="td12" valign="middle">
33,364 
</td>
<td class="td14" valign="middle">
-4.4%
</td>
<td class="td15" valign="middle">
34.9%
</td>
</tr>
<tr>
<td class="td6" valign="middle">
National
</td>
<td class="td7" valign="middle">
322,400 
</td>
<td class="td8" valign="middle">
338,113 
</td>
<td class="td7" valign="middle">
325,147 
</td>
<td class="td9" valign="middle">
-3.8%
</td>
<td class="td10" valign="middle">
0.9%
</td>
</tr>
</tbody></table>
In Canberra, listings fell 4.1% and in Adelaide they were down by 4.0%. In Brisbane, stock on market fell 3.8% while in Perth listings dropped 2.6%. In Darwin listing fell by just 0.2%.
SQM Research managing director Louis Christopher, said the falls are just seasonal.
“Compared to a year ago, listings are higher in most cities," he said.
"The falls recorded this month are just seasonal and reflect the Easter holiday period. 
“Homeowners in Sydney are taking advantage of capital gains over recent times to list their properties for sale. 
"We have also seen more stock in Melbourne compared to a year ago as some homeowners there seek to take profits too. 
"However, in Hobart, home buyers are facing higher prices given an ongoing shortage of properties for sale,” said Mr Christopher.
Capital city average asking prices fell 0.8% for houses while unit asking prices fell 0.2% for the month to 1 May. In Sydney, asking house prices fell 1.1% while asking unit prices slipped 0.6%. Over the year, house asking prices were down by 1.0% to $1.36 million as the property market cools in Sydney. 
In Melbourne, asking price for houses were up 0.5% over the month and 18.8% over the year, entrenching gains over $1 million.
Hobart’s asking property prices are cooling, with house prices down by 1.7% over the month to 1 May and they are up just 5.3% over the year, down from 20%-plus gains a year through 2017. 
Capital city average asking prices fell 0.8% for houses while unit asking prices fell 0.2% for the month to 1 May. In Sydney, asking house prices fell 1.1% while asking unit prices slipped 0.6%. Over the year, house asking prices were down by 1.0% to $1.36 million as the property market cools in Sydney. 
In Melbourne, asking price for houses were up 0.5% over the month and 18.8% over the year, entrenching gains over $1 million.
Hobart’s asking property prices are cooling too, with house prices down by 1.7% over the month to 1 May and they are up just 5.3% over the year, down from 20%-plus gains a year through 2017. 
SQM have decided to review their annual Housing Boom and Bust Report, which they published in October 2017, due to recent developments to the housing market.
 
 
</body></html>

Sydney listings up 35 percent from last April: SQM

<html><body>
SQM are reviewing their annual Housing Boom and Bust Report outlook, which they published in October 2017, due to recent developments to the housing market.
The annual outlook - which offered three scenario's - did forecast moderated dwelling price rises in 2018, at a slower rate than the price gains in 2017, led by a slowdown in Sydney.
The SQM housing expert Louis Christopher confirmed the new review in his latest update. 
"Any revisions will be released next Tuesday, 8 May," he said.
It was only four weeks ago that Christopher told the firm's annual conference he was sticking to his forecast of a 4 percent to 8 per cent rise for Sydney and 7 percent to 12 per cent growth for Melbourne.
<div>
"APRA will loosen the market again because they are under instruction not to crash the market," Christopher said, according to The Australian Financial Review.
</div>
<div>"We think APRA will lift the credit growth limit limit, if that does occur, we think it will stimulate the investor market."</div>
<div>
<div id="article-inline-ad"> </div>
</div>
<div>"What the banks are doing is they have been lowering interest rates for property investment...the gap between owner-occupier and investor loans has now narrowed."</div>
<div> </div>
<div>SQM suggest in a worse case scenario - should investors not return - Sydney's house prices would fall only by about 1 per cent, buoyed by steady population growth.</div>
<div>
"I think the reality would be that the first quarter will be line-balled whether prices in Sydney and Melbourne have fallen or not.
"If they fall, it won't be more than 1 per cent," Mr Christopher said.
</div>
<div>"It's very hard to be bearish when you see strong population growth and low unemployment, unless we see a major credit default occur," he said in March adding Melbourne had a greater chance of a more severe downturn than Sydney, if a large correction happens.</div>
<div>
"In absolute dollars, Melbourne is cheaper than Sydney, but compared to incomes Melbourne is more expensive and more susceptible to a downturn," Mr Christopher said.
</div>
SQM Research’s base case forecast last year for 2018 was for capital city dwelling prices to rise between 4% to 8% in 2018, which would represent a fall from a growth rate of approximately 8.5% over the past 12 months to 30 September 2017. 
The rate of property price increases will be slower in 2018, predominantly due to a slowdown in the Sydney housing market, which should continue into the first half of the year. Melbourne’s property market will also lose some momentum, however, this will only be a relatively modest slowdown, according to predictions in Christopher’s Housing Boom and Bust Report. 
“Offsetting a slowdown in Melbourne and Sydney will be first-year property market recoveries for Perth and Darwin and an ongoing real estate boom in Hobart’s property market, which is set to record the highest level of accelerated price growth of any capital city next year at between 8% to 13%,” Christopher said.
Click here <a href="https://www.propertyobserver.com.au/images/2017/10/18/Crash1.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/2017/10/18/Crash1.jpg" alt="">
The report forecast Brisbane’s property market will experience slightly stronger gains than those posted in 2017, with property prices forecast to rise between 3% to 7%. However, the persistent overhang of surplus property listings will hold back property in that city from a faster rate of inflation. 
The base case for all capital cities forecasts assumes no changes in interest rates next year, a stable exchange rate and the existing restrictions by APRA on investment lending to remain in place. 
“Through the actions of APRA earlier this year, a possible deeper housing correction in Sydney and Melbourne has been averted, for now. Accelerated population growth rates in Melbourne and Sydney have enabled the cities to avoid severe property downturns. On the flipside, housing affordability will likely continue to deteriorate in 2018 with growth in property prices still outpacing wages growth,” said Christopher. 
“The authorities were right to take action earlier this year to restrict investing lending by banks. Failure to have taken action would have resulted in out-of-control Sydney and Melbourne housing markets, where additional aggressive monetary policy may well have triggered a large fall in dwelling prices in 2018,” said Christopher.
“APRA’s action, which came earlier than I had expected, has meant that the Sydney housing market is cooling sooner than expected. That has meant our Sydney forecast for this year of price growth of 11% to 16% will not be reached and a more moderate 6% to 8% increase in prices can be anticipated for 2017.
“Our Sydney forecast for 2018 is for a 4% to 8% increase in prices whereby Sydney will record a soft market in the first half of the year, but property prices will start to recover in the second half as the banks will likely increase investment lending once again. There have been reports of banks investment lending ratios being under the maximum thresholds allowed, so we can expect a rise next year as banks increase investment lending up to this limit.” 
“Hobart’s property market is expected to remain the fastest growing city in 2018, with the combination of a fast economy and housing supply shortages likely to ensure the second year running of double digit price rises for that city,” Christopher said. 
</body></html>

SQM's Louis Christopher says he's reviewing the annual Housing Boom and Bust Report

<html><body>
Data released by SQM Research this week has revealed the national residential vacancy rate slipped to 2.1% in March 2018.
The number of rental vacancies Australia-wide fell to 68,964, down from 2.2% in February when 69,727 properties were available.
Capital city asking rents have been pressured in Melbourne where the vacancy rate is just 1.4%.
Brisbane’s vacancy rate fell to 3.2%, down from 3.4% in February, while Canberra’s slipped to just 0.6%, down from 0.8%.
Commentator Peter Warrant noted the vacancy rate for Canberra has fallen from 2.5% in mid-2015 when it was announced in the Barr Budget that there would be significant rate rise and land taxes imposed in the Australian Capital Territory (ACT). While there are rentals on the market, the methodology picks up rental properties vacant between leases for a period of time and acts a viable leading indicator for markets that are tightening or easing.
With investors looking elsewhere, SQM reports that median asking rents for houses in the ACT have increased by +29% over the past three years to $617 per week.
That makes Canberra the second most expensive capital city after Sydney at a $738 per week median asking rent for houses.
<a href="https://4.bp.blogspot.com/-BGm3VeZZ7TA/WtUvDQ7EPOI/AAAAAAAApbk/ZQQmQb6NGrAHb2cNp2ojORGr-fJPI_-SQCLcBGAs/s640/SQM1.jpg" target="_blank">Click to open in new window</a>
<a href="https://4.bp.blogspot.com/-BGm3VeZZ7TA/WtUvDQ7EPOI/AAAAAAAApbk/ZQQmQb6NGrAHb2cNp2ojORGr-fJPI_-SQCLcBGAs/s640/SQM1.jpg" target="_blank"><img src="https://4.bp.blogspot.com/-BGm3VeZZ7TA/WtUvDQ7EPOI/AAAAAAAApbk/ZQQmQb6NGrAHb2cNp2ojORGr-fJPI_-SQCLcBGAs/s640/SQM1.jpg" width="640" height="386" data-original-height="836" data-original-width="1385"></a>
 
In Hobart the chronic shortage of rentals has eased a little over the past two months, if only a little. 
Melbourne has a relatively tight vacancy rate at 1.4%, while in Sydney the vacancy rate of 2.3% is being reflected in relatively flat rents overall, including a slight decline for median house asking rents.
The Perth market continues to pick up steadily from its nadir.
Melbourne’s vacancy rate of 1.4% was steady as was Sydney’s at 2.3%.
But Sydney’s vacancy rate is well up from 1.7% a year earlier, reflecting slightly easier rental conditions in the nation’s most populous capital.
Hobart's vacancy rate inched higher to 0.6% from 0.5%, but a shortage of rental properties still exits there. In Adelaide, the vacancy rate remained tight at just 1.4%.
<table>
<colgroup>
<col width="77">
<col width="87">
<col width="95">
<col width="100">
<col width="95">
<col width="96">
<col width="95">
</colgroup>
<tbody>
<tr>
<td>
City
</td>
<td>
March 2017 Vacancies
</td>
<td>
Vacancy Rate
</td>
<td>
February 2018 Vacancies
</td>
<td>
Vacancy Rate
</td>
<td>
March 2018 Vacancies
</td>
<td>
Vacancy Rate
</td>
</tr>
<tr>
<td>
Adelaide
</td>
<td>
3,108
</td>
<td>
1.7%
</td>
<td>
2,540
</td>
<td>
1.4%
</td>
<td>
2,519
</td>
<td>
1.4%
</td>
</tr>
<tr>
<td>
Perth
</td>
<td>
9,860
</td>
<td>
5.0%
</td>
<td>
8,319
</td>
<td>
4.1%
</td>
<td>
8,221
</td>
<td>
4.1%
</td>
</tr>
<tr>
<td>
Melbourne
</td>
<td>
7,397
</td>
<td>
1.4%
</td>
<td>
7,889
</td>
<td>
1.4%
</td>
<td>
7,479
</td>
<td>
1.4%
</td>
</tr>
<tr>
<td>
Brisbane
</td>
<td>
11,028
</td>
<td>
3.5%
</td>
<td>
10,925
</td>
<td>
3.4%
</td>
<td>
10,246
</td>
<td>
3.2%
</td>
</tr>
<tr>
<td>
Canberra
</td>
<td>
471
</td>
<td>
0.8%
</td>
<td>
495
</td>
<td>
0.8%
</td>
<td>
392
</td>
<td>
0.6%
</td>
</tr>
<tr>
<td>
Sydney
</td>
<td>
10,989
</td>
<td>
1.7%
</td>
<td>
15,581
</td>
<td>
2.3%
</td>
<td>
15,833
</td>
<td>
2.3%
</td>
</tr>
<tr>
<td>
Darwin
</td>
<td>
1,058
</td>
<td>
3.6%
</td>
<td>
989
</td>
<td>
3.3%
</td>
<td>
1,073
</td>
<td>
3.6%
</td>
</tr>
<tr>
<td>
Hobart
</td>
<td>
174
</td>
<td>
0.6%
</td>
<td>
145
</td>
<td>
0.5%
</td>
<td>
191
</td>
<td>
0.6%
</td>
</tr>
<tr>
<td>
National
</td>
<td>
73,554
</td>
<td>
2.3%
</td>
<td>
69,727
</td>
<td>
2.2%
</td>
<td>
68,964
</td>
<td>
2.1%
</td>
</tr>
</tbody>
</table>
SM noted in contrast to the national trend, Darwin’s vacancy rate rose to 3.6% from 3.3% in February.
The vacancy rate in Perth was steady at 4.1%.
Managing Director of SQM Research, Louis Christopher, said the vacancy numbers highlighted tight rental markets in some capital cities, particularly in Canberra and Hobart but also in Melbourne.
“Reflecting the tight rental conditions in Melbourne, asking rents for houses were up by 1.1% over the month to 12 April 2018, while asking rents rose 4.7% over the year.
"We can expect continued strong growth given the high population growth that Melbourne is currently experiencing, creating rental demand.
“In contrast, Sydney’s vacancy rate is above year-ago levels, and as rental vacancies rise, asking rents are falling. Asking rents for houses fell 1.3% over the year to 12 April while asking unit rents increased by just 0.8%.
"Sydney rents could continue to ease this year given its higher vacancy rate,” Christopher said.
Asking Rents
Capital city asking rents rose over the month to 12 April 2018 by 0.5% to $563 a week for houses. Unit asking rents rose 0.2% to $443 a week. Over the year, asking house rents rose by 1.3% while asking rents for units increased by 0.9%.
Asking rents for houses rose the most in Darwin over the month, up by 3.3% to $560 a week, though unit asking rents dropped 2.6%. In Melbourne, asking house rents gained 1.1% to $537 while unit asking rents rose 0.7% to $407 a week.
The asking rent for a three-bedroom house in Sydney remains the highest in the nation at $738 a week while for units it stands at $524. Canberra follows at $617 a week for houses and $439 for units.
<a href="https://www.propertyobserver.com.au/images/2018/4/18/Picture1.jpg" target="_blank">Click to open in new window</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/2018/4/18/Picture1.jpg" alt="">
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Sydney rents could continue to ease this year given its higher vacancy rate: SQM

<html><body>
Sydney house prices stand a good chance of posting growth in 2018, property research group SQM Research managing director Louis Christopher anticipates.
<div>
Christopher told the firm's annual conference in Sydney he was sticking to his forecast of a 4 percent to 8 per cent rise for Sydney and 7 percent to 12 per cent growth for Melbourne.
"APRA will loosen the market again because they are under instruction not to crash the market," Christopher said, according to The Australian Financial Review.
</div>
<div>"We think APRA will lift the credit growth limit limit, if that does occur, we think it will stimulate the investor market."</div>
<div>
<div id="article-inline-ad"> </div>
</div>
<div>"What the banks are doing is they have been lowering interest rates for property investment...the gap between owner-occupier and investor loans has now narrowed."</div>
<div> </div>
<div>SQM suggest in a worse case scenario - should investors not return - Sydney's house prices would fall only by about 1 per cent, buoyed by steady population growth.</div>
<div>
"I think the reality would be that the first quarter will be line-balled whether prices in Sydney and Melbourne have fallen or not.
"If they fall, it won't be more than 1 per cent," Mr Christopher said.
</div>
<div>"It's very hard to be bearish when you see strong population growth and low unemployment, unless we see a major credit default occur."</div>
<div>
Melbourne has a greater chance of a more severe downturn than Sydney, if a large correction happens.
"In absolute dollars, Melbourne is cheaper than Sydney, but compared to incomes Melbourne is more expensive and more susceptible to a downturn," Mr Christopher said.
</div>
 
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