The Victorian Government has secured the passage of the Building Legislation and Treasury Legislation (Tax Relief) Amendment Bill 2026, introducing a suite of reforms aimed at improving consumer protection and confidence in the apartment market.

Resilience Insurance, Australia’s leading Latent Defects Insurance (LDI) provider, has welcomed the move.

The LDI elements of the Bill passed with bipartisan support and now moves to the Legislative Council where debate and passage are expected later this month. It represents a significant milestone in the national shift toward stronger, longer-term protection for apartment buyers.&nbsp;

The reform would deliver practical benefits across the housing system. Apartment owners will have stronger protection if major defects emerge, developers and builders will have a clearer quality framework to work within, and the State will reduce the risk of serious building failures becoming a long-term financial and social burden for households, communities and government.&nbsp;

LDI helps support apartment delivery while providing stronger protection for buyers and encouraging better construction outcomes.&nbsp;

Resilience LDI provides apartment owners with 10 years of insurance-backed cover for major structural defects from completion, with direct claim access to the insurer. This means owners are not required to first pursue developers or builders through costly legal action before accessing protection.&nbsp;

Resilience Insurance has been operating in Australia since 2022 and has already insured hundreds of development projects covering many thousands of apartments across Australia.&nbsp;

At approximately 1.8 per cent of build cost, it is a cost-competitive alternative to the traditional two per cent Strata Bond, bond while delivering significantly broader and longer protection.&nbsp;

“The Victorian Lower House vote shows that reforms like this succeed when they are practical, evidence-based and supported by industry," says Corey Nugent, CEO of Resilience Insurance.

"Victoria is moving quickly on a reform that will make a real difference for apartment buyers, while supporting better building outcomes and greater confidence in apartment delivery.

“This is step one. We look forward to the Bill completing its passage through the Legislative Council and to working with government and industry to implement the framework effectively.”&nbsp;

Fast Facts: What is Resilience LDI?&nbsp;

<ul>
	<li>Resilience Latent Defects Insurance (LDI): Covers major structural defects for 10 years from completion.&nbsp;</li>
	<li>Consumer-first: Direct claim access, no need for lengthy legal action.&nbsp;</li>
	<li>Cost advantage: At approximately 1.8% of build cost, LDI is typically priced below the traditional 2% Strata Bond while offering broader protection.&nbsp;</li>
	<li>Market leader: Resilience Insurance is the first approved LDI provider in NSW.</li>
</ul>

The Building Legislation and Treasury Legislation (Tax Relief) Amendment Bill 2026 has passed the Victorian Lower House, putting Victoria on track to become the first state to legislate an industry workable LDI framework as a formal alternative to the Strata Building bond. 

Joel Robinson

10-year Latent Defects Insurance for new apartment buyers set to land in Victoria

Just a few months after acquiring a prime Broadbeach site on the corner of First Avenue and Surf Parade, family-run developer <a href="https://www.apartments.com.au/developers/raptis">Raptis</a> has filed fresh plans for a new apartment development.

Raptis is seeking to deliver a <a href="https://www.apartments.com.au/new-apartments/17-19-first-avenue-broadbeach-qld-4217">29-storey tower with 73 apartments</a> on the 818 sqm site. It will be the developer's seventh project in the suburb, as they are approaching completion of The Sterling on George Avenue.

There will be a pool, barbecue and outdoor dining area, residents lounge and dining, sauna and steam room, gym, and a Yoga and Pilates studio.

<img alt="Raptis" data-entity-type="file" data-entity-uuid="b554da3f-7344-49aa-b1c9-44cf459af0d7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-05%20at%2010.41.45%E2%80%AFAM.png?VersionId=zzjWu1iO1wnuYv4EV4fyOyf5nSXjGYut" />

Raptis Joint Managing Director, Evan Raptis, says they remain&nbsp;committed to developing quality infill sites across the Gold Coast in the lead-up to the 2032 Brisbane Olympics.

"This project continues our long track record of delivery in Broadbeach, and we look forward to bringing another premium development to this thriving precinct."

The announcement follows strong delivery momentum for Raptis, with The Sterling Broadbeach nearing completion and construction well underway on the final stage of the Waterpoint community adjacent to Harbour Town. The developer's continued investment in the Gold Coast reflects confidence in the region's apartment market fundamentals, underpinned by sustained Southeast Queensland population growth.&nbsp;

The outlook for the region is further bolstered by infrastructure investment tied to the Brisbane 2032 Olympic Games, which is expected to drive continued economic and population growth across the SEQ corridor.&nbsp;

Subject to a favourable response from Gold Coast City Council, construction on the new First Avenue tower is targeted to commence before the end of 2026.&nbsp;

Read more:&nbsp;<a href="https://www.apartments.com.au/news/qld/it-s-all-in-the-family-four-decades-later-raptis-continues-to-shape-the-gold-coast-skyline">It’s all in the family: Four decades later, Raptis continues to shape the Gold Coast skyline</a>

Read more: <a href="https://www.apartments.com.au/news/qld/raptis-secures-prime-surf-parade-site-for-next-broadbeach-apartment-development">Raptis secures prime Surf Parade site for next Broadbeach apartment development</a> 
&nbsp;

Gold Coast developer brings seventh Broadbeach project to market, targeting construction commencement before year end

First look: Raptis lodges plans for new 29-storey Broadbeach tower 

Brisbane development veteran Kevin Seymour's Seymour Group is set to deepen its presence on one of Brisbane's most tightly held riverfront addresses, lodging revised plans for a luxury apartment development on Oxlade, just a few doors down from The Oxlade, which it completed in 2024.

The <a href="https://www.apartments.com.au/new-apartments/70-72-oxlade-drive-new-farm-qld-4005">new project at 70-72 Oxlade Drive</a>, directly north of The Oxlade, will have 27 apartments across a seven-storey building&nbsp;overlooking the Brisbane River and Merthyr Park. It's a revision from a 2021-approved design.

Designed by bureau^proberts, the project has evolved from the previously approved 26-apartment scheme, introducing an additional penthouse level while maintaining a low-density, boutique character. The development will comprise 26 three-bedroom apartments and a single four-bedroom penthouse, supported by two basement levels with 86 car spaces and 34 bicycle spaces.

The architectural response is centred around two distinct building forms separated by a landscaped open-air atrium.&nbsp;"This dual composition captures and embraces Brisbane’s subtropical environment whilst breaking down built form and scale," the submission to the Brisbane City Council noted.

<img alt="First look: Seymour Group returns to Oxlade Drive with revised riverfront apartment plans in New Farm" data-entity-type="file" data-entity-uuid="c12d84d0-bc11-4067-b46f-5bd2d786a34d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/new%20farm%20landscape.png?VersionId=YEPc2k5CAdh6aAPlu4uVpgZadh4MEfRd" />

A defining feature of the design is a deep landscaped void running through the centre of the building, creating what bureau^proberts describes as a "natural ravine" that enhances airflow, daylight penetration and resident amenity. The design report notes that the separation of the two building volumes is intended to maximise natural light, cross-ventilation and outlook while strengthening connections to the surrounding riverfront setting.

Curved balcony edges, integrated planting and extensive landscaping throughout the façade reinforce the subtropical design approach. The building's façade is softened by elevated gardens and planter beds, creating a green edge that complements the established landscape character of Oxlade Drive and neighbouring Merthyr Park.

New Farm has become one of Brisbane's most sought-after suburbs for developers delivering premium downsizer-focused apartments.

GRAYA has been particularly active in the precinct, completing both Chalk and York in recent years, while construction of Moray House, being delivered for Spyre, is now nearing completion. Architect-turned-developer Joe Adsett recently launched <a href="https://www.apartments.com.au/new-apartments/arcilla-new-farm-by-joe-adsett-28-maxwell-street-new-farm-qld-4005">Arcilla on Maxwell Street</a>, an exclusive collection of just nine apartments.

First look: Seymour Group returns to New Farm's Oxlade Drive with riverfront apartment plans

A new residential tower will be the first piece of a broader mixed-use precinct set to reshape a prominent Newcastle West site, with local developer <a href="https://www.apartments.com.au/developers/gwh">GWH</a> bringing its <a href="https://www.apartments.com.au/new-apartments/cambridge-quarter-newcastle-west-12-denison-street-newcastle-west-nsw-2302">Cambridge Quarter</a> vision to market.

The first release, Tempo, will introduce 87 apartments across a 24-storey tower, marking Stage 1 of the residential component of a larger urban regeneration project planned for the western end of Newcastle's city centre, encompassing the former Cambridge Hotel site.

Positioned on Denison Street, Tempo has been designed as the inaugural building within Cambridge Quarter, a precinct that will ultimately combine apartments, retail activation and revitalised public spaces including the revamping of the Cambridge Hotel.

[smartcode_project:default project_id=135876 project_image_fid=368853]

The tower will comprise a mix of one, two and three-bedroom apartments, including layouts with multipurpose rooms, catering to a broad cross-section of owner-occupiers. Apartment sizes range from around 60 sqm to 192 sqm, with a number of residences oriented to capture views across Newcastle Harbour, the city skyline and coastline.

GWH has emphasised liveability in the design, with open-plan layouts extending to generous balconies and terraces. Residents will have a choice of two interior palettes, while specifications include engineered stone benchtops, SMEG appliances, full-height bathroom tiling and secure building access. Premium upgrade packages will also be available.

Multiple rooftop resident retreats will provide communal outdoor space overlooking the harbour and city, offering an elevated amenity layer above the activity of the precinct below.

[smartcode_project:default project_id=135876 project_image_fid=368851]

The broader Cambridge Quarter vision extends beyond the residential tower itself. Ground-level retail activation and landscaped public areas are planned throughout the precinct, creating a walkable neighbourhood environment connected to the surrounding renewal of Newcastle West. The Cambridge Hotel is also earmarked for future redevelopment into a family-friendly hospitality venue integrated with the new precinct.

The project is strategically positioned within walking distance of Newcastle Interchange, providing access to light rail, regional rail services and direct connections to Sydney. Residents will also be close to Honeysuckle, Newcastle Harbour and the city's beaches and coastal walkways.

[smartcode_project:default project_id=135876 project_image_fid=368852]

For GWH, Cambridge Quarter represents one of its most significant Newcastle developments to date. The locally based developer, which has operated in the Hunter region since 1995, describes the project as a new chapter in the ongoing transformation of Newcastle West.

GWH Executive Director Jonathan Craig said the project had been shaped by a focus on creating lasting community connections.

"We take pride in creating places that last. Spaces where people feel connected, comfortable and a genuine sense of belonging," Craig said.

"Cambridge Quarter is something we are truly proud of, a place shaped by local knowledge, built with care and designed to be part of Newcastle's next chapter."

[smartcode_project_cta:default project_id=135876]

GWH unveils first release at landmark Cambridge Quarter precinct in Newcastle West

<a href="https://www.apartments.com.au/developers/ss-projects">S&amp;S Projects</a>,&nbsp;Rainbow Bay's busiest developer,&nbsp;has officially lodged plans for the largest development in its booming local portfolio, seeking approval for a further 88 apartments on Boundary Street.

The proposal&nbsp;at <a href="https://www.apartments.com.au/new-apartments/209-213-boundary-street-coolangatta-qld-4225">209–213 Boundary Street, Coolangatta</a>,&nbsp;marks the next chapter in the developer's transformation of the southern Gold Coast beachside precinct. It will be its fifth in the area, having already delivered Flow, Awaken and Esprit, while construction continues on the 38-apartment Radia. The new project would rise 57 metres above a consolidated 1,518 sqm site, on the same street as Radia and Esprit.

&nbsp;

Designed by <a href="https://www.apartments.com.au/architects/cottee-parker-architects">Cottee Parker</a>, the proposed development comprises 88 two and three-bedroom apartments across a contemporary podium-and-tower form that integrates extensive landscaping from street level through to the rooftop.

The tower would be delivered above a basement and multi-level podium accommodating resident and visitor parking, with the residential component commencing from level three. The design incorporates cascading planting throughout the façade, landscaped podium edges, and deep planting zones along the Boundary Street frontage.

<img alt="First look: S&amp;S Projects lodges plans for 88-apartment wellness tower at Coolangatta's Boundary Street" data-entity-type="file" data-entity-uuid="677e6615-b5c0-4b6c-b4f9-efb14fcde1a6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/ss%20da%20pers.png?VersionId=YOnPKQm7IFXv0M5H326djEpxk80500Hi" />

A key feature of the development is its expansive rooftop wellness and recreation precinct. Plans reveal a resort-style pool deck, gymnasium, sauna, steam room, hot and cold plunge pools, rooftop terraces, barbecue areas and landscaped relaxation spaces positioned to capture views across the southern Gold Coast coastline.

The rooftop wellness focus builds on the vision S&amp;S Projects first outlined when it acquired the site for $20.25 million last year.

"We are taking every advantage to create a truly unique rooftop wellness experience with a natural feel for residents, offering stone features throughout and an underlying theme that emulates a botanical garden," S&amp;S Projects founder and director Paul Gedoun said at the time.

The proposal seeks a 57-metre building height, representing a 50 per cent uplift on the site's mapped 38-metre height limit. Planning documents argue the additional height is consistent with recently approved and emerging towers in the immediate Boundary Street and Rainbow Bay precinct.

Urbis, acting as planning consultant, said the development would provide "88 dwellings, comprising a mix of two and three-bedroom apartments, contributing to housing choice and supply within an established medium to high-rise coastal urban neighbourhood."

The scheme has undergone extensive pre-lodgement consultation with the City of Gold Coast, with the design refined following feedback relating to architectural expression, landscaping, traffic access and podium treatment.

<img alt="S&amp;S" data-entity-type="file" data-entity-uuid="0a2d70fd-62ac-4b83-97c6-b798fc1243dd" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-05%20at%209.16.31%E2%80%AFAM.png?VersionId=yHmghUwKM3IVGpBktQU1mE.0Lpf3WimG" />

The architectural team is led by Brisbane-based Cottee Parker, one of Australia's most active residential design studios, with landscape architecture by Dunn + Moran. The consultant team also includes ADG Engineers, Windtech and Acoustic Works.

S&amp;S Projects has become one of the most influential private developers operating on the southern Gold Coast. Since entering Rainbow Bay in 2022, the company has assembled a portfolio exceeding $1 billion in end value, establishing itself as a key player in the area's evolution into a premium apartment destination. Pezet Matheson will again handle the sales for S&amp;S.

Coolangatta is entering another wave of apartment development, following the delivery of several prominent residential projects in recent years.

John Kearney's Immerse Projects will launch&nbsp;<a href="https://www.apartments.com.au/new-apartments/kaiya-kirra-beach-5-haig-street-coolangatta-qld-4225">Kaiya on Haig Street</a>&nbsp;soon, meanwhile, Palm Beach-based Sherpa Property Group is preparing to bring its debut Coolangatta development, <a href="https://www.apartments.com.au/new-apartments/flourish-viver-87-griffith-street-coolangatta-qld-4225">Flourish Viveré</a>, to market later this year, subject to approvals.

First look: S&S Projects proposes 88-apartment wellness tower at Coolangatta's Boundary Street

Tim Lawless

<html><body>
EXPERT OBSERVER
Almost half of Australia’s SA4 sub-regions have recorded a rise in dwelling values over the past twelve months.
With housing values falling across four of the eight capital cities over the past twelve months, it’s easy to forget there are some housing markets around the country that are actually seeing relatively healthy and sustainable growth conditions.  An analysis of Australia’s 88 SA4 sub-regions shows almost half (42) of them have recorded some level of growth in housing values over the past twelve months.  
Half of these regions have recorded a higher rate of annual capital gain relative to their five year average rate of growth, suggesting some acceleration in market conditions over the past twelve months.  In fact, 31 (35%) of the SA4 sub-regions across Australia have recorded an improvement in their rate of capital gain over the past 12 months relative to their five year average rate of growth.  
Regional areas of the country are much more likely to be showing positive growth conditions, with 57% of all regional areas recording a rise in dwelling values over the past twelve months, while only 39% of the capital city sub-regions recorded a rise in values. 
The ‘healthier’ conditions across the regional markets can probably be attributed to a range of factors including:
<ul>
<li>More sustainable growth conditions during the growth phase – most regional areas of Australia have seen relatively sedate housing market conditions compared with the heroic gains across Sydney and Melbourne.  The more sustainable history of price growth has kept a lid on housing affordability and made these markets attractive to migrants, particularly those areas where economic conditions are buoyant. </li>
<li>A ripple of demand has been emanating from the largest capitals towards the satellite cities where housing is generally more affordable and lifestyle factors can be appealing.</li>
<li>Many coastal and lifestyle markets have benefited from a rise in buyer demand, either from those looking for a new residence, second home or investment option.</li>
<li>Many of the hard hit mining regions have now levelled out and are now showing some growth.</li>
</ul>
Some of the capital cities are also showing a broad base to rising values as well. In Brisbane, seven of the nine SA4 sub-regions have seen a rise in values over the past year and in Adelaide three of the four SA4 sub-regions have recorded an annual gain. The opposite is true in markets where growth conditions were previously much stronger; only one of Sydney’s 15 SA4 sub-regions (Central Coast) has recorded an annual rise in dwelling values while in Melbourne only four out of nine SA4 regions have recorded an annual rise.
The sub-region data highlights the diversity across Australia’s housing markets.  While conditions are broadly slowing, especially around Sydney and Melbourne, many areas of the country are benefitting from a history of more sustainable growth rates, improving demand and reasonably strong economic conditions.
<div class="page" title="Page 2">
<div class="layoutArea">
<div class="column">
<div class="page" title="Page 2">
<div class="layoutArea">
<div class="column">
<div class="page" title="Page 3">
<div class="layoutArea">
<div class="column">
Tim Lawless heads up the CoreLogic RP Data research and analytics team<a href="https://blog.corelogic.com.au/author/timlawless/" target="_blank"> </a>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</body></html>

tlawless-5VLUrbAk9s

The regions where dwelling values are still rising: Tim Lawless

<html><body>
GUEST OBSERVATION
Varying from state to state, another factor contributing to the high entry cost to housing is stamp duty, particularly in Australia’s largest two capital cities.
Levied by each state and territory and payable by the receiver when a property is transferred, stamp duty varies remarkably across the states and territories based on the price of the property, the type of buyer (owner occupier / first home buyer / investor) and the type of property. 
Calculating how much stamp duty is applicable on a property purchase can be confusing due to the significant differences regionally, but also due to the complexity of rules, concessions and limits that are applied to the calculation of stamp duty.
Based on the median dwelling value across each capital city, stamp duty estimates can range from a whopping $32,680 in Melbourne to a modest $9,000 in Brisbane.
Even though the median dwelling value is $200,000 higher in Sydney compared with Melbourne, the cost of stamp duty on the median valued home is actually slightly lower in Sydney, at $31,763, due to higher stamp duty rates in Victoria.
In some states, first-time home buyers can be offered substantial concessions on stamp duty; however there is generally an upper limit. 
For example, first home buyer property transactions in Victoria with a price tag of $600,000 or less will enjoy a 50% reduction on their rate of stamp duty. 
In Queensland, first home buyers purchasing a property priced less than $550,000 can realise a discount of more than $8,000.
Stamp duty rates can also be higher for investors.
Surprisingly, New South Wales, which is the state with the largest proportion of investors, does not charge a premium rate of stamp duty on this segment of the market.
The three largest states also charge a stamp duty premium on property purchasers by foreign buyers.
Because stamp duty costs are percentage based, as dwelling values move higher, stamp duty costs can rise disproportionately faster due to bracket creep. 
Over the past five years dwelling values in these two cities have increased by 62% and 38% respectively which implies at least a commensurate rise in stamp duty costs in these cities.
The high transactional costs associated with housing are likely to be one factor that is contributing to a slowdown in the number of sales across the country.
While stamp duty is generally the largest transactional cost associated with buying, there are other costs such as building and pest inspections, conveyancing, removalists and more that also need to be factored in and are likely to be dampening participation in the housing market. 
Add to this the fact that most lenders will be seeking a 20% deposit and the barriers to entry become even more substantial.
For state governments, stamp duty is one of the largest revenue sources. 
In the 2014-15 financial year, state and local government taxation revenue was recorded at $89.278 billion having increased by 7.0% over the year. 
The taxation revenue was comprised of $45.203 billion or 50.6% from property related taxes (mostly stamp duty and municipal rates). 
While total tax revenue increased 7.0% over the year, property tax revenue increased by 10.5% highlighting that property taxes are the largest source of taxation revenue for state and local governments and are rising at a rapid pace.
If transaction numbers across the housing market continue to trend lower, state governments are likely to encounter a budget hole as stamp duty revenue falls.  
For this and associated reasons, we may find state governments become more serious about considering a broader based land tax that is applicable to all property owners rather than a stamp duty that is payable only across the small percentage of properties that transact each year.
Tim Lawless heads up the CoreLogic RP Data research and analytics team, analysing real estate markets, demographics and economic trends across Australia.
</body></html>

Stamp duty a significant cost barrier for Sydney and Melbourne housing markets: Tim Lawless

<html><body>
Perth’s housing market reported steady performance, according to CoreLogic’s latest update report.
The property data firm says that house values remained unchanged while unit values increased slightly.
For more information see the video below:
<iframe src="https://www.youtube.com/embed/uDmAmOPXaq8" frameborder="0" width="450" height="253"></iframe>
</body></html>

j.ballantyne1990-6AQqhLzZaK

Perth housing market update: Tim Lawless

<html><body>
EXPERT OBSERVATION
Australia is moving through the peak of an unprecedented boom in apartment construction.
Over the twelve months ending March 2018 there were almost 97,000 medium to high density dwellings that completed construction across Australia; a year earlier there were 105,300 projects that finished construction (84% higher than the decade average).
As at March of this year there were still 155,275 medium to high density projects still under construction.
The majority of this construction work has been centered around the inner city areas of our largest capital cities, so it shouldn’t come as a surprise that population densities have surged higher across many inner city areas of our largest cities.
Based on an analysis of population data at the SA2 level (an SA2 region is a standard geographical classification roughly the size of a suburb in the cities or a town in regional areas), the highest density area in Australia is now Melbourne.
45,231 people reside within the 2.4 square kilometre area, equating to a population density of just over 19,100 people per square kilometre.
The population of the area has increased from 7,644 in 2001 – an increase of almost 500% over 16 years.
Apartment values in the area are relatively low with a median of $444,000, providing a relatively low cost entry point to a housing market located right in the middle of one of Australia’s largest working populations.
Back in 2001, the Melbourne SA2 region ranked 114th in the country with a population of only 3,229 and a population density of 7,644 persons per square kilometre.
Potts Point – Woolloomooloo showed the highest population density, followed by Surry Hills.
In fact, back in 2001, the top 12 areas of highest population density were all located in Sydney, with St Kilda East recording the highest population density outside of Sydney (6,259 people per square kilometre).
The 20 most densely populated areas of Australia are all confined to Sydney and Melbourne. Fifteen of the top 20 areas are in Sydney and five are in Melbourne.
While high density living may not be everyone’s cup of tea, it makes sense for many, especially for students and young professionals who work and play in and around the city centre.
Focusing on the Melbourne SA2 area again, two thirds of the resident population are aged between 20 and 34, with the most significant age group being 20-24 year olds (31% of the population).
High density living generally involves less time commuting, lower housing prices and plenty of choice for amenities.
Of course there are going to some downsides to high density living, like the potential for noise pollution, tight living spaces, elevator congestion at peak times, overcrowded or poorly maintained communal areas and limited access to green space.
The latest small area population numbers from the ABS are already a year old, and, considering the record number of apartments under construction across Australia, our inner city areas are going to increase in density further from here.
Densification makes sense from a town planning perspective – it reduces urban sprawl and the necessity to continually invest in transport infrastructure linking the outer fringes of the cities.
From a livability perspective, some people will thrive in a high density environment, while others will crave the peace and quiet of the burbs. Lucky Australia has such as broad range of housing options.
<a href="https://www.propertyobserver.com.au/images/2018/10/4/density%201.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/2018/10/4/density%201.jpg" alt="">
<a href="https://www.propertyobserver.com.au/images/2018/10/4/density%202.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/2018/10/4/density%202.jpg" alt="">
TIM LAWLESS heads up the CoreLogic RP Data research and analytics team and can be contacted<a href="https://blog.corelogic.com.au/author/timlawless/" target="_blank"> here.</a>
</body></html>

The highest density living options in Australia: Tim Lawless

<html><body><div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
While housing sales activity slumped during the housing downturn, the recent trend shows turnover has levelled out as home values rise and mortgage rates reach the lowest level since the 1950’s.
Although the housing market appears to have moved through the bottom of a near two year downturn, sales activity remains well below normal levels.
Nationally, CoreLogic estimates that there were 367,630 settled sales over the twelve months ending August 2019; 17% lower year- on-year, and about 30% below the recent peak level of annual sales recorded over the twelve months ending September 2015.
<a href="https://www.propertyobserver.com.au/images/2019/9/26/corelogic%201.jpg" target="_blank">Click here</a> to enlarge: 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/9/26/corelogic%201.jpg" alt="">
 
Source: CoreLogic 
<div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
The good news is that home sales appear to be stabilising, albeit at a low base. 
The six month trend has found a floor at around the same lows recorded during the previous two downturns in 2008 and 2010-12. 
The six month trend has been tracking higher since June 2019, in line with a recovery in home values.
Such a large reduction in market activity has implications for the economy, especially from a consumption perspective. 
Reduced housing activity implies less spending on retail items such as home furnishings, white goods and appliances. 
With both values and volumes falling, state government stamp duty revenues have experienced a big hit, and of course we see real estate industry and finance sector participants receiving less income based on lower rates of sale and lower values.
<a href="https://www.propertyobserver.com.au/images/2019/9/26/corelogic%202.jpg" target="_blank">Click here</a> to enlarge: 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/9/26/corelogic%202.jpg" alt="">
Source: CoreLogic 
<div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
The drag on economic growth is compounded when housing values fall, as the wealth effect moves into reverse and households are less inclined to spend on discretionary items.
There isn’t a single trigger for the levelling in sales activity; in fact we can point to a variety of factors that have supported a turnaround in conditions.
A boost to confidence following the federal election, which removed a lot of the uncertainty around housing tax reform. Also, lower mortgage rates and policy changes from APRA which relaxed home loan servicing tests for borrowers were other likely factors driving the rebound in activity. 
Additionally there is the improvement in housing affordability driven by the 8.4% fall in housing values nationally.
<a href="https://www.propertyobserver.com.au/images/2019/9/26/corelogic%203.jpg" target="_blank">Click here</a> to enlarge: 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/9/26/corelogic%203.jpg" alt="">
Source: CoreLogic 
Most of the capital cities have seen either a stabilisation in settled sales activity or a rise in the trend rate of sales. 
Housing turnover is rising the most sharply in Adelaide, with a more subtle improvement across Sydney, Melbourne and Canberra. 
The trend in sales has stabilised across Brisbane, Perth and Darwin but is still trending lower in Hobart.
The fact that housing values are now under some upwards pressure while housing turnover remains low presents somewhat of a paradox.
One explanation for the low rate of sales activity comes back to constraints around stock available for sale. 
Newly advertised stock levels remain about 15% lower than a year ago across Australia and total advertised stock levels are still 8% lower than a year ago and haven’t been this low for this time of the year since 2010.
As housing values continue to recover and the seasonal rise in listing numbers gathers pace we are likely to see sales activity also trend higher. Credit availability remains the wildcard in a material bounce back in turnover.
Although credit policies have become a little looser, gaining loan approval remains a challenge for many borrowers, despite the lowest mortgage rates since the 1950’s.
TIM LAWLESS heads up the CoreLogic RP Data research and analytics team and can be contacted<a href="https://blog.corelogic.com.au/author/timlawless/" target="_blank"> here.</a>
</div>
</div>
</div>
</div>
 
</div>
</div>
</div>
</div>
 
</div>
</div>
</div>
</div></body></html>

Housing turnover stabilises as housing conditions improve: Tim Lawless 

<html><body>
The RBA have decided to hold the official cash rate at a record low one per cent at its September meeting today.
CoreLogic research director Tim Lawless said the <a href="/expert-insights/buying/sydney-and-melbourne-house-and-apartment-prices-power-ahead-in-august-corelogic">resurgence in Sydney and Melbourne housing values</a> was likely a key topic of conversation amongst the RBA Board at today’s meeting. 
"In line with rate cuts in June and July, housing values in Australia’s two largest cities have recorded a lift, with dwelling values rising 1.9% and 1.8% in Sydney and Melbourne over the past three months.  
"August data showed CoreLogic’s national index recorded its first month on month rise since October 2017 and five of the eight capital cities saw dwelling values increase.  
"Clearly housing market conditions are responding to lower interest rates as well as the recent loosening of loan serviceability rules from APRA and the positive influence of the stable federal election outcome.  
Lawless noted that the recovery trend is still very early and there is the potential for the pace of growth to slow as advertised stock levels rise in line with spring.
"If the recent acceleration in housing value growth is sustained over coming months, we could potentially see additional credit policy levers pulled, aimed at keeping a lid on household debt. 
"Limiting lending to borrowers on high debt to income ratios could be one option, or introducing hard limits on high LVR lending could be another mechanism that would reduce the risk of a further build up in household debt whilst at the same time allow borrowers to access housing credit and take advantage such low interest rates."
The Finder RBA Cash Rate Survey saw 95 per cent of their 41 experts and economists surveyed predict a cash rate hold in September.
Craig Emerson, of Craig Emerson Economics, said the RBA will save its last few bullets for now, but he predicts and October cut.
"The RBA will be reluctant to use up its little remaining ammunition," Emerson said.
Westpac's Bill Evans also recently suggested we <a href="/expert-insights/finance/rba-to-hold-next-week-but-expect-october-rate-cut-bill-evans">should be looking to October</a> for the cut.
Griffith University economics professor Tony Makin is one of 61 per cent of experts in the survey who believe the RBA will wait until November.
"Previous RBA research suggested it takes up to 18 months for the effects of official interest rate changes to feed through to the wider economy," Makin said.
“The RBA should therefore be waiting a little longer before cutting further, especially in light of the weaker dollar of recent weeks."
 
 
 
 
</body></html>

jrobinson-rf4aSBido9

RBA holds rates at September meeting

<html><body>
The April meeting of the RBA has seen the cash rate remain on hold at 1.5 percent.
It has now stayed at record lows for 29 consecutive meetings. 
The last time the rate changed was in August 2016.
CoreLogic's head of research Tim Lawless said there is a growing likelihood the cash rate will move lower later this year.
"While labour markets remain strong, low unemployment and above average jobs growth is generally confined to New South Wales and Victoria," Lawless said.
"Concerns around slowing consumption as the wealth effect reverses, causing households to pull back on spending and revert to saving were likely a central theme of the RBA’s board meeting deliberations. 
"The ongoing falls in dwelling values have the potential to weigh down consumer attitudes towards spending and cause a sharper than anticipated fall in residential construction activity.
"The latest data from CoreLogic shows the pace of decline has eased off somewhat over the past couple of months, but the geographic scope of weak housing market conditions has broadened. 
"With values trending lower across most regions of Australia, household wealth is being eroded and the risks of a downturn in consumer spending are heightened.  Also, with economic growth losing momentum, as well as inflation and wages growth remaining below expectations, there are plenty of reasons why the RBA might have considered a cut to the cash rate today. 
"The consensus from financial markets remains that interest rates will be cut later this year. 
"We should get a better feel for the RBA’s monetary policy position via the Financial Stability Review, released on April 12, and the Statement on Monetary Policy, released on May 10. 
"Chances are we will see some downwards revisions to the RBA’s forecasts for economic growth and inflation which could set the scene for lower rates over the second half of the year.  
 
</body></html>

RBA continues to hold rates at record lows in April

<html><body>
EXPERT OBSERVATION 
Australia’s national population is estimated to have increased by 109,057 persons over the quarter to be up 395,101 persons or 1.6% over the 12 months to September 2018 according to the latest Australian Bureau of Statistics (ABS) demographic arrivals and departures data release.
Analysing the results, CoreLogic noted that while nationally the drivers of population growth are net overseas migration and natural increase (births minus deaths), between the states net interstate migration is an important component of population growth.
While nationally the drivers of population growth are net overseas migration and natural increase (births minus deaths), between the states net interstate migration is an important component of population growth.
NSW 
Net interstate migration to NSW saw the state lose 22,113 residents over the year to September 2018, its largest net loss of residents since March 2008. As the chart shows, the biggest sources of arrivals to NSW over the year were Qld (36,730), Vic (25,876) and ACT (11,728). Arrivals from Vic were the highest they’ve been since June 1993 while arrivals from ACT were the greatest they’ve been since December 1997.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/3/28/NSW%20.jpg" alt="">
Vic 
Annual net interstate migration was recorded at 13,985 persons over the year to September 2018, the lowest it has been since December 2015. The largest source of migration to Vic was NSW (32,688) followed by Qld (22,433) and WA (12,187). Arrivals from Qld were the highest on record while arrivals from Tas (4,195) were the highest since March 2004 and arrivals from ACT (4,076) were also the highest on record.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/3/28/VIC%20.jpg" alt="">
Qld 
Net interstate migration over the year to September 2018 was recorded at 24,316 persons, which although it remains high was slightly lower than the previous quarter. With 52,409 arrivals, NSW accounted for almost 50% (49.45%) of interstate arrivals to Qld over the year. Arrivals from NSW were the highest they’ve been since December 2005. The 24,680 arrivals from Vic were the greatest since June 2004.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/3/28/QLD%20.jpg" alt="">
WA 
The state has seen a large net loss of residents due to residents leaving for other states over the year (10,304) however; the outflow has slowed to its smallest levels since June 2016. Although WA is shedding many residents, arrivals from NSW (7,970) were the greatest they’ve been since September 2014, arrivals from Vic (7,364) were the greatest they've been since September 2015 and arrivals from NT were the greatest they’ve been since December 2015.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/3/28/WA%20.jpg" alt="">
Tas 
Over the year to September 2018, net interstate migration of 2,370 persons was recorded which was slightly lower than the previous quarter however, net interstate migration remains at the highest levels since June 2004. NSW (3,560), Vic (4,053) and Qld (3,800) were the prime sources of arrivals to Tas. Arrivals from NSW were the highest they’ve been since December 2004, arrivals from Vic were the largest since September 2004 and arrivals from Qld were the largest since March 2008.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/3/28/TAS%20.jpg" alt="">
NT 
The state saw a loss of 3,920 residents due to net interstate migration over the year to September 2018, which was the largest outflow of residents on record. Although NT is losing people to other states, the largest sources of arrivals to NT are Qld (3,848), Vic (2,775) and NSW (2,731). As the accompanying chart shows the number of arrivals to NT from other states is typically trending lower.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/3/28/NT%20.jpg" alt="">
ACT 
Net interstate migration was recorded at 274 persons over the past year, the smallest gain from net interstate migration since March 2016. With 12,604 arrivals to the ACT, NSW accounted for 56.7% of all arrivals over the past year. The only two other significant states for arrivals were Vic (3,358) and Qld (3,290). While arrivals to ACT were generally trending lower, arrivals from NSW were the greatest on record over the past year.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/3/28/ACT%20.jpg" alt="">
Over the year to September 2018, there were 394,193 interstate arrivals across the nation. Australian’s are becoming more willing to move interstate with the 394,193 arrivals over the past year the greatest number since September 2003.
While the economies of NSW and Vic remain much stronger than elsewhere, the cost of housing in these states is also much higher than elsewhere. With greater flexibility around working remotely nowadays, it’s no surprise that the trend towards more interstate movements increasing - we would expect that this trend is set to continue over the coming years.
<img src="https://www.urban.com.au/images/2019/3/28/NATIONAL%20.png" alt="">
TIM LAWLESS heads up the CoreLogic RP Data research and analytics team and can be contacted<a href="https://blog.corelogic.com.au/author/timlawless/" target="_blank"> here.</a>
</body></html>

Trend towards interstate movements increasing: Tim Lawless

<html><body>
National dwelling prices will have declined by five percent by the end of the year, CoreLogic have estimated in their 2019 market outlook.
They still say national dwelling values will be 22 percent higher relative to this time five years ago.
Through to the end of November, Sydney was the hardest hit, with dwelling values dropping 8.1 percent, while Hobart performed the best, seeing a 9.3 percent rise.
CoreLogic's head of research Tim Lawless said there is likely to be only three capital cities bringing down the national dwelling total.
“In all likelihood, five of Australia’s capital cities will finish the year with a positive annual movement in dwelling values, highlighting that weaker conditions in Sydney and Melbourne, and to a lesser extent, Perth, are the main drag on the national index," Lawless said.
"To assess the housing market trends over the coming year, it’s important to reflect on the factors that have driven the market performance more recently and how they are likely to change over the coming twelve months.”
He suggests the lack of credit availability is a key factor in the current housing market downturn, and expects lenders to remain conservative in 2019.
"With the final report from the Royal Commission due in early 2019, we expect lenders will remain conservative in their approach," Lawless advised.
"This implies that high quality borrowers will be in the driver’s seat (i.e those with large deposits, low debt relative to their income and a strong serviceability position).
"Borrowers with less than a 20% deposit and those with debt levels that exceed six times their income will find it harder to obtain finance and will likely face a premium on their mortgage rates.
<div class="page" title="Page 4">
<div class="layoutArea">
<div class="column">
"Overall, we expect housing finance will remain a formidable obstacle to improving housing market conditions next year, but higher quality borrowers should be able to secure debt at very low rates as lenders compete for their business. 
 
 
 
</div>
</div>
</div>
</body></html>

Tim Lawless

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

Tim Lawless

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

Developments

New apartments

New townhouses

News