The new <a href="https://www.apartments.com.au/new-apartments/yarraville-green-42-stephen-street-yarraville-vic-3013">Yarraville Green</a> development in Melbourne's inner west is showing that landscaping can be just as influential as architecture, with buyers responding strongly to the garden-first approach adopted from the outset by developer Excelon Projects and the project's design team.

Excelon appointed Six Degrees Architects and landscape architects SBLA to work collaboratively on the development, with a brief to create "a sustainable, design-led building with a focus on community."

That approach has resonated with buyers. According to Next Chapter Director Tom Hirini, who is leading the sales campaign, the landscaped communal garden has become one of the project's defining features, alongside its boutique scale and European-inspired cluster housing concept.

Local downsizers, right-sizers and established families already living in Yarraville and surrounding suburbs have accounted for the majority of purchasers.

[smartcode_project:default project_id=144913 project_image_fid=297740]

Yarraville Green will comprise 53 homes, including apartments and townhomes, arranged around the shared central garden to maximise connections to the landscaped open space. Parking has been moved underground, allowing the ground plane to be dedicated to greenery, pedestrian movement and communal spaces.

The landscape extends well beyond passive planting. Productive garden beds, a pergola, communal gathering spaces, garden sheds and a pet wash have all been integrated into the masterplan, creating spaces designed to encourage everyday interaction between residents.

[smartcode_project:default project_id=144913 project_image_fid=297741]

The interiors continue Excelon's focus on craftsmanship, incorporating bespoke elements by Melbourne artisans including leadlight detailing by Adadaz, hand-turned timber hardware by Auburn Woodturning and blown-glass lighting by Ruth Allen.

Sustainability has also been embedded throughout the project, with Yarraville Green targeting an average 7-star NatHERS energy rating through passive design principles, rooftop solar servicing common areas and rainwater harvesting for landscape irrigation.

[smartcode_project:default project_id=144913 project_image_fid=297735]

Construction continues to progress at Yarraville Green, with structural works well underway and framing works approaching completion under builder Balmain &amp; Co. The project remains on track for completion in mid-2027.

Apartments at Yarraville Green are currently priced from $625,000, while townhomes start from $1.4 million.

[smartcode_project_cta:default project_id=144913]

Joel Robinson

Garden-led design drives buyer demand at Yarraville Green

National diversified developer Fortis has officially launched Crest &amp; Walker, its latest Brisbane apartment development, with construction now underway on the 20-storey Newstead project.

Award-winning builder BINAH has commenced construction on the Bureau^Proberts-designed building, which will deliver a limited collection of 65 two and three-bedroom apartments on Kyabra Street.

[smartcode_project:default project_id=145922 project_image_fid=373556]

The project marks Fortis' fourth active residential development in Brisbane, following River House, which is nearing completion, alongside projects in New Farm and Hamilton as the national developer continues to expand its South East Queensland pipeline.

Fortis General Manager – Development Queensland Dan Boman said Crest &amp; Walker reflects the developer's long-term commitment to delivering design-led residential projects in Brisbane's established inner-city suburbs.

"We're proud to be strengthening our presence in Brisbane with Crest &amp; Walker, particularly in such a sought-after lifestyle destination as Newstead," Boman said.

"Every Fortis project is shaped by its context, and we approach each one with the respect and care it deserves.

"Our focus is always on creating places that feel connected to their neighbourhood and elevate the everyday experience for residents. Newstead continues to evolve as one of Brisbane's most sought-after urban communities, and Crest &amp; Walker reflects our ambition to contribute meaningfully to that story."

[smartcode_project:default project_id=145922 project_image_fid=373559]

Positioned between Gasworks Plaza and James Street, <a href="https://www.apartments.com.au/new-apartments/crest-walker-newstead-12-kyabra-street-newstead-qld-4006">Crest &amp; Walker</a> has been designed as a boutique residential address offering privacy and generous living spaces within one of Brisbane's most established lifestyle precincts.

The building features a contemporary brick podium softened by integrated landscaping, while the upper levels are characterised by restrained architecture and enduring materiality. Interiors have been designed to maximise natural light, acoustic performance and long-term liveability.

[smartcode_project:default project_id=145922 project_image_fid=373583]

Residences comprise spacious two and three-bedroom floorplans, with two-bedroom apartments priced from $1.55 million and three-bedroom, half-floor residences from $3.95 million.

Residents will have access to a wellness-focused rooftop featuring a swimming pool, sauna, steam room, landscaped dining spaces and outdoor lounge areas overlooking Newstead and the Brisbane CBD.

[smartcode_project:default project_id=145922 project_image_fid=373571]

Sales are being managed by Slaite Projects, with Fortis expecting strong demand from owner-occupiers seeking a high-quality, design-focused apartment in one of Brisbane's most tightly held inner-city suburbs.

Completion of Crest &amp; Walker is slated for late 2028.

[smartcode_project_cta:default project_id=145922]

Fortis expands Brisbane pipeline with launch of Crest & Walker in Newstead

The enormity of delivering a true skyscraper in Australia's new development market is often overlooked.

It has taken the best part of a decade since plans for Chevron One were first unveiled, but the 41-storey tower is now complete, with residents collecting their keys and moving into what has become one of the Gold Coast's most recognisable new landmarks.

Rising 127 metres above Chevron Island, Chevron One stands almost twice as high as any other building on the island. Its scale places it alongside the trio of towers at Jewel, arguably the last truly significant addition to the central Gold Coast skyline when they were completed around six years ago.

While there are several developments underway around a similar height to Chevron One, they are more concentrated within clusters of the highest towers in the city. The fact Chevron One sits within a developing precinct, looking back at the other high-rise developments in Surfers Paradise and Broadbeach, makes it a different proposition altogether. It will certainly become a reference point on the Gold Coast skyline.

[smartcode_project:default project_id=6515 project_image_fid=68833]

Developer Bensons Property Group is behind the 41-storey tower, which has 229 apartments, along with an exhaustive list of resident amenity spread across what is the largest development site ever assembled on Chevron Island.

The tower has been the talk of the town for years, says Ray White Projects Gold Coast agent Caitlin Rosenboom, who is selling the remaining apartments.

"People have been watching Chevron One go up for years," Rosenboom says, adding that many prospective buyers have been surprised by the scale of the views once they step inside.

"It's only when they walk through a completed apartment that they truly understand the position of the building," Rosenboom says.

"The views are jaw-dropping. Whether you're looking east over the ocean, across Surfers Paradise, along the river systems or out to the hinterland, every level offers something different but equally impressive."

[smartcode_project:default project_id=6515 project_image_fid=360215]

One of Chevron One's defining advantages is its location on the eastern side of Chevron Island on Stanhill Drive, a position which protects the views forever.

"There's only one row of houses between Chevron One and the water, and the height restrictions along the river means views from Chevron One can never be built out,"&nbsp;Rosenboom says.

While new apartment developments continue to emerge across the Gold Coast, Rosenboom says opportunities to secure a completed apartment with this level of outlook are becoming increasingly rare.

"The size of the site is something that would be incredibly difficult to replicate today," she says.

"That's allowed Chevron One to deliver the sort of amenity, open space and resident facilities that very few projects can offer. There are not many completed apartment buildings on the Gold Coast right now that can compete with the combination of scale, quality and amenity."

[smartcode_project:default project_id=6515 project_image_fid=68839]

There's around 2,000 sqm of amenity solely for the use of residents of Chevron One. Club One features a uniquely shaped swimming pool that mirrors the footprint of the building itself, set within a extensively landscaped gardens. There's also an indoor pool and spa, a fully equipped gym with a Pilates room, a yoga garden, a bookable private dining area and lounge that can host up to 30 people, and a 24-hour concierge service.

As for the buyers, Rosenboom is fielding enquiry from everywhere: Sydneysiders and Melburnians looking at the new and off-the-plan market following the changes in the Federal Budget, as well as those looking to relocate, through to South East Queenslanders seeking either a permanent home or a weekender bolthole.

"The Gold Coast lifestyle continues to resonate with people relocating from the southern states, and when they see the views and the quality of what's been delivered at Chevron One, it becomes very easy for them to understand the appeal," Rosenboom says.

A diverse mix of one, two and three-bedroom apartments remain available, with each offering "something a little different", be it the orientation and views, configuration, or level, to suit a wide variety of buyers.

The remaining apartments are ready to inspect in person, by appointment.

[smartcode_project_cta:default project_id=6515]

A decade in the making: Residents to move into Chevron One as construction wraps up

A general rule of thumb in new apartment developments is that the penthouses get the rooftop.

It's a formula that's become commonplace across Australia's apartment market. Residents might have access to a pool, gym or barbecue facilities on a dedicated lower level, but the most desirable outdoor spaces are typically reserved for the highest-priced homes at the top of the building.

<a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Property Group</a> has taken the opposite approach.

Rather than dedicating the rooftop to a handful of buyers, the Gold Coast developer has made it the centrepiece of its Flourish collection, creating expansive shared spaces from the best vantage point in the building.

The philosophy has reached its most ambitious expression at <a href="https://www.apartments.com.au/new-apartments/flourish-soleira-palm-beach-1150-1160-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a> in Palm Beach, where two rooftop precincts connected by a skybridge will deliver one of the most extensive lifestyle offerings seen in a residential apartment project on the Gold Coast.

[smartcode_project:default project_id=150017 project_image_fid=374053]

"We're seeing a clear move toward developments that offer more than just an apartment," Sherpa Group founder Christie Leet said.

"People want spaces that support how they actually live, whether that's working from home, staying active, or spending time with family and friends.

"That's where amenity becomes critical. It's not just about what's included, but how those spaces are designed to be used every day."

[smartcode_project:default project_id=150017 project_image_fid=374052]

The breadth of amenity has already attracted buyers across multiple demographics. Younger first home buyers have been drawn to Soleira's one-bedroom apartments, a product rarely delivered in Palm Beach, while families have responded to practical inclusions such as the shallow children's pool adjoining the main lap pool and the extensive communal recreation areas.

Instead of a single rooftop, Soleira delivers two distinct lifestyle zones.

[smartcode_project:default project_id=150017 project_image_fid=372547]

The southern rooftop has been dedicated to wellness, featuring a gym, yoga and Pilates studio, work-from-home facilities, a wellness centre, spa, and hot and cold plunge pools.

The northern rooftop focuses on recreation and entertaining, incorporating a heated resort-style pool, private dining rooms, pizza ovens, barbecues, a golf simulator, children's recreation areas, and what is expected to be the Gold Coast's first rooftop basketball court, which will also double as a squash court.

[smartcode_project:default project_id=150017 project_image_fid=374054]

Beyond the rooftops, Soleira will introduce 1,500 sqm of curated retail beneath the towers, creating one of Palm Beach's first genuinely mixed-use lifestyle precincts where cafés, restaurants and convenience retail become part of residents' everyday lives.

Sherpa has also retained management rights across the development, allowing it to oversee the long-term operation of the building through a 24-hour concierge model. The developer is also exploring additional revenue streams within the precinct aimed at helping offset ongoing body corporate costs for residents.

[smartcode_project:default project_id=150017 project_image_fid=370962]

While Soleira is the largest project Sherpa has delivered, the rooftop-first philosophy has been evolving for several years.

It began with <a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Flourish Amargo</a>, the first project released under the Flourish brand. Rather than competing at the ultra-luxury end of the market with oversized half-floor and full-floor residences, Sherpa focused on creating lifestyle-driven apartments supported by resort-style shared spaces.

Amargo introduced more than 800 sqm of rooftop amenity, combining wellness facilities, heated pools, entertaining areas, cabanas, pizza ovens and private dining spaces into what was designed as an extension of residents' homes rather than a facility used only occasionally.

[smartcode_project:default project_id=146527 project_image_fid=366550]

That approach continued with Flourish Oasis, where the same amenity-led philosophy was refined into a more boutique development. Strong demand from Sherpa's growing VIP database saw much of the project sold before it reached the broader market, reinforcing buyer appetite for apartment communities centred around shared lifestyle experiences.

Flourish Amargo is slated for completion mid-way-through next year, with Oasis to be delivered by late 2027. Flourish Soleira is expected to complete in 2030.

[smartcode_project_cta:default project_id=150017]

Sherpa takes amenity to the sky as Flourish Soleira captures booming Palm Beach demand

As apartment living continues to evolve across Sydney's growth corridors, the quality and distribution of shared spaces is increasingly shaping how residents experience home. Rather than functioning as add-ons, amenities are being embedded into the daily rhythm of a building, supporting everything from quiet retreat to social interaction, often within a single vertical community.

At <a href="https://www.apartments.com.au/new-apartments/aeris-melrose-park-nursery-street-melrose-park-nsw-2114">Aeris</a> in Melrose Park, this approach is resolved through a layered amenity offering that unfolds from ground level through to its upper podium. Developed by <a href="https://www.apartments.com.au/developers/sekisui-house-australia">Sekisui House Australia</a> in partnership with Hankyu Hanshin Properties, the project introduces 468 apartments across two towers and a mid-rise building, positioned at the highest point of the broader masterplan.

[smartcode_project:default project_id=426 project_image_fid=359199]

The amenity experience begins at street level, where two courtyards sit within a landscaped setting that connects residents to the wider network of parks and green spaces. These green spaces are not isolated pockets but part of a wider pedestrian network that links Aeris to the surrounding <a href="https://www.apartments.com.au/developments/melrose-park-nsw-2114">Melrose Park</a> precinct, including Central Park, future schools, and the Town Centre opening in July 2026. The result is a transition that moves from public to private without abrupt boundaries, allowing residents to pass through shaded, tree-lined environments before reaching the building itself.

Moving upward, the focus shifts to the level five podium, where the primary communal facilities are concentrated. This space brings together a 16-metre swimming pool, outdoor seating areas, and a communal BBQ zone arranged to take advantage of elevated outlooks. Seating is positioned beneath pergolas, creating pockets of shade that extend the usability of the space throughout the day. The pool edge aligns with views toward the wider district, reinforcing the sense of elevation that defines the project’s positioning.

In the adjacent building, this is complemented by quieter, more contemplative spaces, including an outdoor cinema set within the same level. Positioned to operate primarily in the evening, it introduces a different tempo to the shared environment, shifting from daytime activity to after-hours use without requiring separate zones.

[smartcode_project:default project_id=426 project_image_fid=360299]

The podium also accommodates an intimate private resident gym. Located on the lower levels, it gives residents convenient access to fitness facilities without leaving the building.

Above, the elevated podium sky deck extends the amenity offering, providing additional open-air spaces with elevated outlooks across the surrounding landscape. While more restrained in program, this upper level reinforces the project’s vertical progression, from ground-level greenery to elevated outlook, allowing residents to move between distinct spatial conditions within a single address.

This distribution of amenities reflects a deliberate response to how residents use space across the day. Sekisui House Australia Sales and Marketing Director Peter Kalaf points to the role these shared areas play in shaping buyer demand. Aeris has been conceived as more than a collection of apartments, with the podium pool, gym and outdoor cinema forming part of a broader lifestyle offering that extends the home beyond each individual residence.

[smartcode_project:default project_id=426 project_image_fid=360300]

What distinguishes Aeris is not the inclusion of these elements individually, but how they are arranged in relation to one another. Active, social, and passive spaces are layered vertically rather than separated, allowing residents to choose between them without leaving the building or moving far from their apartment. This proximity supports both routine use, such as a morning swim or evening workout, and more occasional gatherings, whether around the BBQ area or within the cinema setting.

The amenity design also sits within a broader framework of connectivity across Melrose Park. The Melrose Park Town Centre, anchored by Coles and Dan Murphys, features a mix of retail, dining, health and lifestyle offerings, bringing everyday convenience closer to residents. By the end of the year, more than five hectares of parks and open space, equivalent to around seven football fields of green space on residents' doorstep, will further enhance the precinct, allowing the internal facilities at Aeris to operate as an extension of the wider neighbourhood rather than a substitute for it.

Construction at Aeris continues to gather momentum, with ground floor slabs expected to be completed in late 2026 before the first sections of the buildings begin to rise above ground.

[smartcode_project_cta:default project_id=426]

Elevated amenity anchors daily life at Aeris, Melrose Park

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>
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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>
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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. 
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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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<ul>
<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>
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<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>
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</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

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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

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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.
 
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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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