residential

Suburban vacancy rates continue to fall, according to new SQM Research data revealed Tuesday.

The Australian investment research house recorded a 0.2 per cent drop in the national residential rental vacancy rate over the month of April, falling to 1.9 per cent from 2.1 per cent in March.

<figure><a class="colorbox colorbox-insert-image" href="/www.urban.com.au/s3fs-public/pictures/article-images/vacancy_rates.png" rel="gallery-all" title="Vacancy Rates - April 2021"><img alt="" class="image-article-full-width-580px" height="263" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/vacancy_rates.png?itok=K3RQjn1f" title="Vacancy Rates - April 2021" width="580" /></a>

<figcaption>Vacancy Rates - April 2021</figcaption>
</figure>

Melbourne&rsquo;s vacancy rate fell to 4.0 per cent in April from 4.4 per cent, while in Sydney it dropped to 3.1 per cent from 3.4 per cent.

In Adelaide, Canberra and Hobart, the vacancy rate remained below 1.0 per cent, while Brisbane&rsquo;s fell to 1.4 per cent.

&ldquo;Along with the smaller capitals, Brisbane&rsquo;s vacancy rate has become extremely tight and so we are expecting a surge in rents for the city this year&rdquo;, Christopher said.

[smartcode_project:default project_id=26734 project_image_fid=153694]

Vacancy rates in Perth and Darwin saw the most significant drop over the year, with rates falling 1.3 per cent and 1.1 per cent, respectively.

Rents have also jumped in these smaller cities, a trend that SQM managing director Louis Christopher believes we could see continue given the recent commodities boom for iron ore and other base metals.

<figure><a class="colorbox colorbox-insert-image" href="/www.urban.com.au/s3fs-public/pictures/article-images/asking_prices.png" rel="gallery-all" title="Weekly Rents Index - 11 May 2021"><img alt="" class="image-article-full-width-580px" height="560" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/asking_prices.png?itok=xko1lk5t" title="Weekly Rents Index - 11 May 2021" width="580" /></a>

<figcaption>Weekly Rents Index - 11 May 2021</figcaption>
</figure>

&ldquo;Demand for rental accommodations is still outstripping supply, which is having the effect of boosting rents in many locations and unaffordable to lower income tenants&rdquo;, Christopher said.

In some locations, including the Gold Coast and New South Wales&rsquo; North Coast, landlords are demanding huge rent hikes, with asking rents soaring 32 per cent for houses on the Gold Coast over the year.

[smartcode_project:default project_id=22057 project_image_fid=150842]

This surge has occurred as people migrate out of the big capital cities and move to regional and warmer locations, as well as the number of occupiers per dwelling fall, the research revealed.

&ldquo;People are also looking for larger properties as they work from home and not wishing to live together.&rdquo;

In contrast, rates for Melbourne and Sydney CBDs remain elevated with the loss of international student tenants combined with apartment oversupply.

These were among the only areas recording rises in vacancy rates, excluding Sydney&rsquo;s Liverpool.

As a result of demand outstripping supply, some locations, including the Gold Coast, are seeing asking rents soaring 32 per cent over the year

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National residential vacancy rates continue to fall: SQM Research

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There are 2,050 capital city auctions expected across the capital cities this week, similar to the number held last week (2,076) when the final auction clearance rate was recorded at 75.9%, the softest result across the combined capital cities since March this year. At the same time last year, 2,040 residential auctions were held and the clearance rate over the week was recorded at 65.4%.
Melbourne is expecting 959 auctions this week, an increase from 947 last week and higher than the 946 at the same time last year. Last week, Melbourne’s final auction clearance rate was recorded at 77.7%, which is much higher than one year ago (69.1%), however it is the lowest clearance rate for the city in 9 weeks.
This week, there are 799 Sydney homes scheduled for auction, compared to 816 last week and 785 over the previous week. Sydney’s clearance rate was down last week, from 88.7% the previous week to 83.4%, while in comparison, the clearance rate for the city last year was 70.1%. Sydney’s year to date clearance rate is 84.9%, while over the same period last year, the clearance rate for the city was tracking at 75.0%. On the other hand, auction volumes this year are slightly lower than they were last year.
Across Brisbane, CoreLogic RP Data is currently expecting 114 auctions this week, compared with 135 last week and 141 last year. Brisbane’s clearance rate last week was 45.5 per cent, while one year ago, 32.2% of homes taken to auction were sold.
There are currently 76 Adelaide homes scheduled for auction this week, slightly lower than the 87 last week and tracking at a similar level as the same time last year when 74 auctions were held across the city. Adelaide’s clearance rate last week was 58.7%, having fallen from 71.2% the previous week.
Canberra has 51 scheduled auctions this week, compared to 53 last week and 35 at the same time last year.
Across Perth, 40 homes are set for auction over the current week, increasing from 32 last week and slightly lower than one year ago (45).
Across Australia’s individual suburbs, the highest volume of auctions this week will be held in Balwyn North, Glen Waverley and Richmond (Vic).
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Auction volumes lower year on year: CoreLogic RP Data's Shana Miller

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As I finalise the Project Analysis on one of our last development projects for 2016, I've realised we've broken our equity creation record for a dual occupancy project.
We've manufactured just under $200,000 in equity within a year which represents an 18% return on investment (ROI). 
This wonderful client is now onto his third project with Property Bloom and so I'm very happy we've been able to deliver this amazing result for him, it's a fabulous Christmas present for our client but also for us. 
This was one of those projects where financially, things just went right. We started with a build estimate and with every update of our builder's tender the project costs dropped. We ended up with an actual construction cost of just under $40,000 less than we'd originally estimated. This includes Torrens title subdivision costs so that our client ends up with two x three bedroom dwellings each on their own title. 
We secured the development site in Newcastle in an estate that ticked all our  'great location' boxes. It has a high proportion of owner occupiers, strong sales and rental demand, community facilities including primary and high school, sporting fields, bike paths, picnic areas, children's parks and close to the local shopping centre and on the bus route. The location also allows quick drive time into the CBD and onto the major arterial roads.
We were able to prepare plans and other documentation required for the Development Application (DA) quickly and have it lodged with Newcastle City Council even before our client settled on the land. This saved on holding costs. However, the DA processing time was disappointing. It took 16 weeks, although I have to add this included Christmas, so you could say 14 weeks. Still, this is a long time. Our best DA processing time with the same council is two weeks. It all comes down to the town planner we are allocated and how efficient they are.  
The construction time was five months from the site cut date to Handover of a full turnkey product. Again, we've done better but I was happy with this result considering there is a shortage of building trades right now in the Hunter. 
Of course there was a few unexpected hiccups, like two windows that needed to be replaced after the internal linings were finished, we realised they were not centered in the area we wanted them to be. Our builder quickly had them replaced. But this didn't delay the project, just added some extra work for the builder. 
Our client will enjoy strong depreciation benefits from his new properties and a 6.5% gross yield. 
As we move closer to closing the door on 2015, it's nice to finish the year on a high. We'll be back for more fun and games in 2016. I hope you've enjoyed our stories this year, wishing all our readers and the wonderful people at Property Observer  a safe, relaxing and happy Christmas.  May 2016 bring you much joy and happiness, and a maybe a shiny new property development!
Jo Chivers is chief executive officer of property development project managers <a href="https://www.propertybloom.com.au/about" target="_blank">Property Bloom</a>.
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jochivers-wq5Bp59R5a

Finishing the year with a bang: Jo Chivers

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Firstly, what is a Polycentric city and how can it benefit our growing population?

In Urban Planning, a Polycentric city is an urban area that is organised around multiple cities. In this example, Melbourne CBD is designated as the major hub with built up connecting activity centres which benefit by sharing job creation with inner and outer suburbs using a '20 minute neighbourhood' model. 
We can benefit from being a polycentric city in numerous ways as it will decrease travel time, localise businesses, encourage walkability, cycleability, social interaction, networking and community by creating opportunities in areas with existing increased infrastructure standards.

<h2>What does Melbourne look like now?</h2>

An estimated 5 million people reside in the city limits as of early 2019 with an expected projection upwards of 8 million people by 2050. 
This immense growth has seen:

<ul>
<li>An average of 50,000 new homes being built, most of those are a product of Urban Sprawl with new housing estates, communities and suburbs developing beyond existing suburbia.</li>
	<li>Due to urban sprawl, commute times have increased for many Melbournians, adding 30 minutes to the average drivers journey to work. </li>
	<li>With infrastructure not meeting the demands soon enough due to unprecedented growth, liveability in outer reach suburbs is lower as connection to jobs, opportunities, education and basic services require car dependency.</li>
	<li>Most job creation is isolated to or around the Melbourne CBD, with a daily workforce of over 500,000 people. 
	 </li>
</ul>
<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/screen_shot_2019-07-30_at_2.03.16_pm.png" rel="gallery-all" title="Sprawl in Melbourne's South Western suburbs. Image by Google Maps"><img alt="" class="image-article-full-width-580px" height="314" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/screen_shot_2019-07-30_at_2.03.16_pm.png?itok=JQT7LvTB" title="Sprawl in Melbourne's South Western suburbs. Image by Google Maps" width="580"></a>

<figcaption>Sprawl in Melbourne's South Western suburbs. Image by Google Maps</figcaption></figure> What will Melbourne look like as a polycentric city?

<ul>
<li>With activity centres already in place and on the move for urban renewal and rejuvenation in Frankston, Reservoir, Moonee Ponds, Box Hill, Footscray, Preston, Epping, Sunshine, Dandenong and Werribee we will see an abundance of localised opportunity and a shared balance of job creation that extends beyond the CBD, strengthening our city economy.</li>
	<li>When built up, these activity centres will provide a diverse range of jobs, activities and housing options for residents as well as playing major roles in delivering health, education, government, retail and commercial services.</li>
	<li>Existing local activity centres thrive as they remain dedicated to community, culture and social attributes as well as giving residents no reason to commute one or two hours to work. This increases the quality of life majorly.</li>
	<li>These mini-cities are hubs of medium to high density mixed use developments, which will help curtail urban sprawl thus lessening the impact on native ecological and natural environments.</li>
</ul>
 

<h2>Existing - <a href="https://www.urban.com.au/developments/moonee-ponds-vic">Moonee Ponds</a> Activity Centre</h2>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/moonee_ponds_new_heart_pedestrians_and_cyclists.png" rel="gallery-all" title="Artist impression of the new civic centre space with a dedication to pedestrians, cyclists and community buildings."><img alt="" class="image-article-full-width-580px" height="338" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/moonee_ponds_new_heart_pedestrians_and_cyclists.png?itok=1uJkgm6L" title="Artist impression of the new civic centre space with a dedication to pedestrians, cyclists and community buildings." width="580"></a>

<figcaption>Artist impression of the new civic centre space with a dedication to pedestrians, cyclists and community buildings.</figcaption></figure> 
Moonee Ponds is a principal activity centre in Melbourne’s north-west with a current population of 15,000 people. Known for destinations such as the Moonee Valley Racecourse, Queens Park and the quaint community feel of the cafe’s, bars, boutiques and fresh food shopping of Puckle and Hall street.

This eclectic inner city suburb is just 7km out of the Melbourne CBD and has recently seen monumental growth in terms of density and commercialisation. At its core, the Moonee Ponds Junction serves as the arterial and tram connection to surrounding suburbs.

The 2030 Moonee Ponds activity plan expects to develop the suburb into a high density, pedestrian friendly, sustainable centre that intimately connects to public transport in an effort to reduce urban sprawl and car dependency which includes developments such as <a href="https://www.urban.com.au/buildings/hall-st-40-hall-street-moonee-ponds">Mason Square</a> by <a href="https://www.urban.com.au/developers/caydon-property">Caydon</a>.

Moonee Ponds vision is to exceed in creating a new civic community space with a central square around the historic Clocktower, create major improvements to car parks and pedestrian access, fostering and nurturing retail and businesses, protecting heritage, enhancing neighbourhood character and expanding community services such as health and education centres.

 

Existing - <a href="https://www.urban.com.au/developments/preston-vic">Preston Central</a> Activity Centre

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/screen_shot_2019-07-30_at_12.45.07_pm.png" rel="gallery-all" title="Artist impression of residential and mixed use density surrounding Preston Market."><img alt="" class="image-article-full-width-580px" height="316" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/screen_shot_2019-07-30_at_12.45.07_pm.png?itok=e4wtsJ3E" title="Artist impression of residential and mixed use density surrounding Preston Market." width="580"></a>

<figcaption>Artist impression of residential and mixed use density surrounding Preston Market.</figcaption></figure> 
Preston is a multicultural suburb 9km north of Melbourne CBD with a plan to centralise growth and progress opportunities for residents. Preston’s population of 32,000 people is made up of European, Asian and Middle Eastern residents, many of which are descendants of the post war migration. The suburbs flat terrain and abundance of land resulted in low density developments to which now is evolving into a hub for the North as population growth pressure and closeness to the CBD leads to more medium to high density residential developments.

The Preston Activity Centre is centralised around the beloved Preston Market, with a strong focus on retaining its community charm and cultural significance for the suburb. The utilisation of car parks and empty plots surrounding Preston Market and the suburbs main thoroughfare for local businesses, High Street is an important factor in bringing people closer to work and opportunities. 

Preston has numerous community facilities such as the Darebin Performing Arts Centre, Preston Library and the Northern Region Migrant Resource Centre which are all serviced by Preston Station, the main link to education and fresh food markets in the suburb.

The main objective for the central plan is to curtail urban sprawl, strengthen community links and advanced opportunities, increase business and civic space and provide residents with affordable housing options. Preston could see an increase of over 10,000 new residents in the next 5 years with high density developments such as <a href="https://www.urban.com.au/new-apartments/due-north-70-82-high-street-preston">Due North</a> and <a href="https://www.urban.com.au/buildings/8-clinch-avenue-preston">8 Clinch Avenue</a>.

 

<h2>FUTURE - <a href="https://merrifieldmelbourne.com.au/about/">MERRIFIELD, MICKLEHAM</a></h2>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/merrifield-render-1.jpg" rel="gallery-all" title="Rendering of civic space in Merrifield’s city centre."><img alt="" class="image-article-full-width-580px" height="387" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/merrifield-render-1.jpg?itok=qWnNkxJO" title="Rendering of civic space in Merrifield’s city centre." width="580"></a>

<figcaption>Rendering of civic space in Merrifield’s city centre.</figcaption></figure> 
Located in Melbourne’s far north is the newly planned community suburb of Merrifield, a joint masterplan by <a href="https://www.urban.com.au/developers/mab-corporation">MAB</a> and <a href="https://www.urban.com.au/developers/gibson-property-corporation">Gibson Property</a> which will sustain a population of 30,000 residents and 40,000 workers. 
The city of the north is expected to be completed by 2025, and aims to be a hub of connectivity for small and large businesses in their business district, a cultural and community space with shops, restaurants and medium density residential and civic buildings by the Central Park and waterfront with 12,000 homes planned and already under construction. 
Merrifield is serviced by rapid bus transport and major highway links though aims to truly be a walkable, 30 minute neighbourhood where residents will use the pedestrian and bicycle friendly links to reach all of their daily needs. 
As the North is one of the fastest growing areas in the country, we need sustainable and centralised developments with updated infrastructure and commercial opportunities for residents. Car dependency makes working in the CBD difficult for many people living in the Northern suburbs as transport is infrequent or too far from home. Having a hub closer to the outer reach suburbs makes a vast improvement for businesses and locals who live an hour from the CBD.

The community is already home to one of Victoria's biggest Industrial Parks with Dulux, D'orsogna and Australia's first Kaufland setting up shop with access to sustainable energy and recycled water. 
Merrifield boasts numerous lakes, wetlands and urban parks which are designed to encourage environmental consciousness and enrich natural biodiversities. 
 

 
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Nick Dante

How close is Melbourne to becoming a Polycentric city?

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Earth works have commenced on a new masterplanned residential community on Fairway Drive adjoining Bella Vista Waters in Norwest. 
Essentia is being developed by Mulpha.  
Designed with lifestyle in mind, the six hectare estate will comprise a mix of 33 large 700 square metre home sites and 74 architect-designed town homes.
They will be set around a landscaped central park complete with swimming pool, gym, yoga area and clubhouse.
A landscaped riparian corridor with natural waterway will wind through the estate.  
Mulpha Norwest Executive General Manager, Tim Spencer said Norwest was evolving into one of Sydney’s most vibrant communities, with its plans for extensive community facilities, rapid transit, public open space, activated public parks and plazas and a vibrant social, food and entertainment scene.
 <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/2018/5/15/Essentia%20estate%20on%20Fairway%20Drive%20in%20Norwest.jpg" alt="">
The new Norwest and Bella Vista metro stations are located within walking distance and due to open in 2019, connecting Norwest with the city and all areas of Sydney.
The first stage release of large home sites are on sale with registrations of interest being taken for the town homes. 
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j.ballantyne1990-6AQqhLzZaK

New residential community planned for Essentia in Norwest

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Many have mixed feelings about the 2018 outlook for the South Australian property market, the latest report by valuers Herron Todd White (HTW) noted.
An increase in the median price appears to be underpinned by the inner ring whilst the outer suburbs maintain slow growth and in some instances negative growth. 
HTW are paying close attention to the labour market, foreign investment and interest rates as these appear to be the issues which will have the biggest bearing on the South Australian property market in 2018.
Over the past decade, the South Australian jobs market has undergone significant changes with a move away from traditional manufacturing based industries.
This has included a number of well publicised closures, in particular the Holden manufacturing plant in the northern suburb of Elizabeth, the announcement by Tenneco that jobs will be lost at the Monroe shock absorber plant in the southern suburb of O’Sullivan Beach and an announcement by Coca-Cola Amatil that their Thebarton bottling plant will be closing in 2019.
Consequently, the South Australian unemployment rate has risen to the second highest in the nation at 6% as at January 2018 (source: Australian Bureau of Statistics).
This has affected populations in the middle to the outer ring, particularly the northern, southern and western suburbs which have the largest proportion of those employed in the manufacturing industry.
Within these regions, Seaton to the west, Morphett Vale to the south and the greater area of Elizabeth to the north provide a good snapshot of general market parameters given their large volume of annual turnover.
Seaton is a large western suburb located approximately 11 kilometres from the Adelaide CBD.
The suburb comprises a north and south section with Royal Adelaide Golf Club situated in the centre of the suburb. Data from the December 2017 quarter indicates the median dwelling price to be $505,000 (source: Real Estate Institute of South Australia (REISA)) which is a 3.8% increase from the same period in 2016.
The majority of dwelling transactions during 2017 occurred within the $400,000 to $600,000 price range (source: CoreLogic).
The recent sale of 10 Raymond Avenue, Seaton for $510,000 provides an indication of what can be purchased within this bracket.
This is a circa 1960s, 3-bedroom, 1-bathroom dwelling situated on an allotment of 757 square metres (pictured below).
It was sold by Attilio Cavuoto and Michael Cavuoto from Ray White.
<a href="https://www.realestate.com.au/sold/property-house-sa-seaton-127369422" target="_blank">Located at 10 Raymond Avenue</a>, the property has been partially updated internally and features a large pergola, carport and vinyl in-ground pool.
It is within easy reach of many amenities that include Westfield West Lakes, schools, transport (bus &amp; train) and local various shops.
<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/2018/4/6/seaton.jpg" alt="">
Seaton provides greater affordability than the similarly located suburbs of Fulham, Fulham Gardens and Kidman Park.
Morphett Vale is located approximately 26 kilometres south of the Adelaide CBD.
Development consists of mainly 1970s housing with further development occurring during the 1990s.
Morphett Vale has shown gradual year on year price growth since 2013. In 2017, there were 440 dwelling transactions in Morphett Vale. With the current median house price being $312,500 (source: REISA), Morphett Vale had a 1.54% increase in the median house price from the December 2016 quarter to the December 2017 quarter (source: REISA).
Having such a high turnover of sales provides a reliable indicator as to how the general market is faring in the middle and outer southern suburbs.
Dwelling values within the northern suburbs, particularly those surrounding Elizabeth Central, approximately 28 kilometres north of the Adelaide CBD, have historically fluctuated.
It’s noted that Elizabeth East, Elizabeth Park, Elizabeth Grove, Elizabeth South and Elizabeth Vale have all recorded reductions in their median house prices in the past 12 months. Rental yields remain strong in these areas with gross yields hovering around 6% to 7%.
An example of this is <a href="https://www.realestate.com.au/sold/property-house-sa-elizabeth+east-126756382" target="_blank">38 Ballard Street, Elizabeth East</a> which settled in December 2017 for $181,000 (pictured below).
This property is now let for $275 per week indicating gross yield of 7.1%.
Positioned on an 801 sqm block, it comes with three bedrooms with built in robes, updated kitchen, spacious lounge and garden sheds.
<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/2018/4/6/ballard%20st.jpg" alt="">
The middle to the outer ring has historically had a higher number of first home buyers and investors who are typically mortgage holders.
At the March meeting of the Reserve Bank of Australia, the cash rate was left at a continued record low of 1.5%.
There has been continual speculation as to when the cash rate will be lifted, with some lenders taking their own measures through 2017 and lifting their lending rates. Media coverage of doom and gloom scenarios surrounding interest rate rises has put this issue in the forefront of mortgage holders’ minds, the recent HTW report noted.
If this scenario was to play out, the middle to the outer ring could be the first market segment to show signs of stress.
Despite these market pressures, Adelaide’s median house price reached a record high of $465,000 in the December 2017 quarter.
Agents have indicated that there has been significant interest in the inner ring from local, interstate and overseas purchasers.
The $500,000 to $1 million price bracket is considered to have had the most upwards pressure through the back end of 2017 and into early 2018.
Comparatively to the surrounding suburbs, good buying can be found in Linden Park which is located approximately six kilometres south-east of the Adelaide CBD where the median house price currently sits at $989,444.
This suburb is characterised by early to mid-1900s dwellings on allotments of 600 square metres plus with a mixture of more recent infill development.
The surrounding suburbs of Tusmore, Toorak Gardens and Beaumont have similar characteristics and have median prices at December 2017 of $1.32 million, $1.507 million and $1.012 million respectively.
The CBD apartment market has shown significant growth over the past 12 months, rising from a median of $434,000 in January 2017 to $505,150 in December 2017.
Data supplied by Core Logic indicates that 2017 had the largest number of CBD apartment transactions on record with 646 transactions.
HTW noted that a large proportion of these transactions have come from off the plan sales contracted throughout 2014 to 2016 which have now settled on completion of construction. There has been a significant amount of foreign investment in this market.
The CBD apartment market will be monitored as the government enforces increased regulations on foreign investment.
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Adelaide has a two-speed residential market: HTW

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With approximately 215,000 residents, Wollongong City is the third largest City in NSW.
The population of the entire Illawarra District tops 400,000.
"Although it has the population and local microeconomic factors of its own, the geographic proximity to Sydney is the key measure when determining the main influence on the residential property market," according to the valuation firm, Herron Todd White (HTW).
"When Sydney is hot, it flows on down the coast. When Sydney dries up, so do things down here," HTW's latest report advised.
As Sydney has become more and more unaffordable, Sydney residents are looking further afield - and Illawarra is a place to go to.
Buyers are faced with the decision of paying over $1,000,000 to live in a suburb close to the Sydney CBD or to consider outer suburbs.
With the commute from Campbelltown and surrounds into the CBD being over an hour, this compares favourably with catching the train from Thirroul (one hour 15 minutes) or Helensburgh (50 minutes).
"If proximity to family is not a relevant factor, the decision to pick the Illawarra is an easy one," HTW's April report noted.
CoreLogic reports the median sale price for December 2017 in Helensburgh as $911,000; in Woonona as $920,000; in Corrimal as $800,000.
A Woonona four bedroom house has been recently sold for $950,000 (pictured below).
<a href="https://www.realestate.com.au/sold/property-house-nsw-woonona-127898146" target="_blank">Located at 88 Rixons Pass Rd</a>, the newly renovated house features north facing balcony,  parents retreat with ensuite, second living zone and private courtyard.
It is only moments to Woonona Village, schooling and local beaches, and with easy access to Memorial Drive.
The home also features a coastal outlook from its elevated position.
<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/2018/4/11/woonona.jpg" alt="">
Another offering currently on the market is a Helensburgh three bedroom house which priced at $85,000 to $87,000.
<a href="https://www.realestate.com.au/property-house-nsw-helensburgh-127827242" target="_blank">Located at 24 Hay Street</a>, the cottage style home comes with three generous sized bedrooms, modern kitchen and open plan living and dining.
Extra features include polished floorboards throughout,  yard with covered entertaining area, and lock up garage.
Town centre, parklands, shops and cafes are within walking distance. 
<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/2018/4/11/helensburgh.jpg" alt="">
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Sydney market strength remains key to Illawarra performance: HTW

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Stockland said record settlements of new lots in the Sydney and Melbourne residential markets had boosted its half-year profit by 18.2 per cent.
<div class="cq-article-content-paras section">
The country's largest listed residential developer advised its focus on undersupplied markets triggered the record 3210 settlements in the six months to December.
It advised its cancellation rate sat at below the long term average.
Click here <a href="https://www.propertyobserver.com.au/images/2018/2/21/stockland%20res.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/2018/2/21/stockland%20res.jpg" alt="">
"Over the last four years we have built a strong residential business with significantly enhanced returns," chief executive Mark Steinert said adding they had placed a greater focus on the deep Melbourne and Sydney markets with particular emphasis on transport and infrastructure corridors.
"Around half our residential customers are first home buyers and over 75 per cent are owner-occupiers, which places us in a preferred position in the current residential lending and policy environment.
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"As a result, our Residential business delivered another half of exceptionally strong returns and settlements, with operating profit growing over 80 per cent to $182 million in 1H18. 
“We settled a record 3,210 lots, up 12.5 per cent on the corresponding period, and achieved a net operating profit margin of 20.9 per cent. FY18 profit will be skewed to the first half of the financial year due to a large proportion of higher-margin Sydney settlements.” 
Stockland expects operating profit margins of around 17 per cent in FY18 and for the next 2 - 3 years, subject to market conditions.
It noted WA had an ongoing weakness.
Click here <a href="https://www.propertyobserver.com.au/images/2018/2/21/summary.jpg" target="_blank">to enlarge.</a>
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Its upcoming launches include Waterlea in Melbourne.
“We have intentionally increased our weighting to Sydney and Melbourne housing, where the markets continue to be driven by structural undersupply. 
It advised around half its residential customers were first home buyers and over 75 per cent are owner-occupiers, "which places us in a preferred position in the current residential lending and policy environment."
“More than 95 per cent of our residential business earnings over FY18 - FY20 will be generated by our masterplanned communities,” Mr Steinert said. 
Click here<a href="https://www.propertyobserver.com.au/images/2018/2/21/outlook.jpg" target="_blank"> to enlarge.</a>
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Stockland's 2018 market outlook suggests demand will continue to outstrip supply in New South Wales.
They note market prices in Western Australia are likely to remain stable.
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Stockland sell record housing lots to owner occupiers 

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Echuca in Victoria is the closest settlement on the Murray River to Melbourne, and valuation firm Herron Todd White take a look at properties in the sub-$500,000 in their July 2016 residential market report. 
“The lazy half a million buys a very good standard residence on a standard block in most of Echuca and Moama and those shopping around are even likely to find ancillary improvements such as a pool and sheds depending on how much quality they are prepared to trade off,” says the HTW report.
While the rental market has been a little slow, whether this is seasonal or a consequence of building supply coming on line to cater for tighter rental markets over the past 12 months is hard to tell though the market typically tightens up coming into spring when new people are coming to town and are on the hunt for reasonable accommodation. 
The median price of houses in Echuca is $300,000 while it is $278,000 for units, according to <a href="https://www.urban.com.au/property-observer" target="_blank">CoreLogic RP Data</a>.
Property Observer looked up recent sales around the median price and found a three-bedroom, two-bathroom house at <a href="https://www.realestate.com.au/property-house-vic-echuca-122854394" target="_blank">7 Illawarra Drive, Echuca, Vic 3564</a> which was bought for $317,000, according to RP Data.
 
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Victoria's Echuca offers good value for money in sub-$500,000 property category: HTW

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The lazy half-a-million offers a range of property options in Melbourne’s eastern suburbs, with a three-bedroom house in the outer east to four-bedroom houses on 500 sqm of land a little further on the south-eastern side. 
This is the inference from valuation firm Herron Todd White’s July 2016 residential market report, which discusses properties in the sub-$500,000 range.
Outer Eastern Suburbs 
Within the outer eastern suburbs, $500,000 can in general enable investors to purchase either a two- or three-bedroom house with a rental yield between 3.5% and 4%. In Bayswater for example, a two-bedroom house can be purchased for on average $456,000 (www.realestate.com.au) and achieve a weekly rental of $310 per week. Similarly, Boronia and Moorolbark still have two-bedroom houses with an average selling price of $482,500 and $462,500 respectively. In comparison, in the newly established Harcrest Estate, located in Wantirna South, sub-400 square metre lots are selling for just below the $500,000 mark or $1,300 per square metre. 
For investors looking to benefit from higher returns, Monbulk which has an average purchase price of $500,000 is perhaps one of the more profitable options, with average rental yield of 4% and demand for properties remaining high. The reason for this is the generally lower supply of properties available in the suburb as well as its reputation as a leafy family- friendly suburb, also popular with retirees. 
Units are perhaps another area to consider for investors wanting to strong arm their way into suburbs which have arguably a better location and are closer to amenities and access to public transport. For example, in Croydon, unit and townhouse prices are on average $465,500 and rents achieved approximately $350 per week, resulting in a gross yield of 3.9%. However, once service charges and other costs are taken into consideration, this figure is likely to be somewhat reduced. 
Units in Ringwood are also on average selling for $500,500 and rent for $343 per week. Given the extent of development that has taken place within the suburb in recent years, most notably the redevelopment of Eastland Shopping Centre and the train station, investors may regard this as a good investment for future capital growth, especially with annual growth for units for the period 2014-2015 being 10.6%. 
Property Observer found a three-bedroom house at <a href="https://www.realestate.com.au/property-unit-vic-croydon-122900742" target="_blank">24 Broughton Avenue, Croydon, Vic 3136</a> which sold recently for $485,000.
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South Eastern Suburbs 
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If you are willing to sacrifice proximity to the city then head to the outer south east, where $500,000 will get you quite far. Suburbs such as Cranbourne, Officer, Pakenham, and Clyde North provide many options for buyers with a $500,000 budget. 
In these suburbs this budget will cover a newly built four-bedroom home on roughly 500 square metres of land in one of the newly released estates. 
“A new wave of double-story townhouses on smaller blocks in Cranbourne is just starting to hit the market. One of these will set you back around $350,000,” say HTW in the report.
“Original double-brick dwellings in Frankston North have seen growth over the past six months and $500,000 will buy you plenty of house on a decent sized block, with close proximity to the beach.”
Between Hampton Park and Langwarrin there are plenty of opportunities to purchase either a house, townhouse or parcel of land in this price bracket.
Property Observer found a three-bedroom townhouse on www.realestate.com.au at <a href="https://www.realestate.com.au/property-townhouse-vic-cranbourne-120898661" target="_blank">75/1030 Cranbourne-Frankston Road, Cranbourne</a> for $360,000.
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