Residential Market

Queensland has recorded its highest quarterly property sales settlement number since 2007.

Some 51,771 Queensland property sales were settled during the first quarter of 2021, according to the latest analysis by PEXA, Australia&rsquo;s leading digital settlement platform.

Queensland&rsquo;s 40% jump year-on-year illustrates the current confidence in the north-eastern Australian property market.

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Western Australia saw 57% growth year-on-year in recording its highest property sales settlement number since at least 2015.

Throughout January and February, WA has seen more than 15,000 property sale settlements, which was 5,000 more than the corresponding period in 2020, prior to the impact of COVID-19.

Mike Gill, the senior research Manager, PEXA, said the Australian property market continues to perform strongly.

And he sees no strong reason for this trend to change in the immediate future.&nbsp;

&ldquo;We have seen a really strong start to the year Australia wide, with the nation recording 30% year-on-year growth in property sales settlements when compared to the beginning of 2020.

&quot;We have also witnessed considerable momentum build in Victoria, with the state living up to its property powerhouse reputation recording the most sales settlements (more than 55,000) of any state during this period.&quot;

New South Wales posted 26% growth year-on-year, and South Australia experiencing a jump of 28% year-on-year for the quarter, said Gill.

Australia&rsquo;s property sector witnessed almost 200,000 properties settled during the first quarter of 2021, PEXA calculated.

PEXA, Australia’s leading digital property settlement platform, calculated in the past quarter Queensland recorded 51,771, its highest sales number since 2007.



jchancellor

Queensland's first quarter residential sales jump 40% year on year: PEXA

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This time every year, with the close of February approaching, we all dream of an endless summer. But according to our agents, the sun hasn’t set on the marketplace, and won’t for some time.
Spring and summer have traditionally been the major selling seasons for vendors, but conditions could turn that tradition on its head in the coming cooler months, especially with the recent strength seen in auction markets in both Sydney and Melbourne.
The numbers of people turning out to open-for-inspections have been very strong since the holidays wound up. Many buyers have been enticed by a slowdown in price growth across certain markets.
It is this very demand combined with positive economic fundamentals that will keep real estate markets humming along in 2016.
However, overzealous commentators trying to capture media headlines and mountains of data risk overloading and confusing consumers. It is, therefore, important that buyers and sellers not be swept up in the short-term outlook.
Ensure that you do what is right for your situation and your own investment strategy rather than trying to second-guess the timing of the market.
The best data to keep an eye on is that from your own street and neighbourhood.
Strong employment figures combined with the share market volatility and already historic low-interest rates should negate any “gloom and doom” talk directed towards property markets.
While buyers are out and about, listings are tightening in parts of the country. 
We can see this in Melbourne where a lack of stock has resulted in price growth of 2.5 percent In January, outperforming even Sydney (+0.5%). The figures from CoreLogic RP Data, released last week, could well indicate both these markets are bouncing back following a slow down at the end of last year. 
Overall the economic outlook remains positive with retail spending increasing and cheaper petrol adding more money to family budgets.
Homeowners have income to pay mortgages, interest rates are still low and affordability is improving. Some of these savings will be used by people to try and pay down their debt quicker. 
Homes will spend longer on the market as we return to more normal conditions but it doesn’t necessarily mean sellers will be disappointed with the final result. 
In fact, it could prove to be similar to what I have seen from our Harveys real estate business in New Zealand where prices in Auckland skyrocketed over the past 12 months, driven by migration. Prices there are now starting to moderate to a more sustainable level, as buyer demand turns to more affordable regional markets.
Grant Harrod is chief executive officer of LJ Hooker and can be contacted <a href="https://about.ljhooker.com.au/leadership-team" target="_blank">here</a>.
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jchancellor-FAypfDUnLy

The sun hasn’t set on the marketplace: LJ Hooker's Grant Harrod

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GUEST OBSERVER
Vestbuild specialise in developing homes with spaces that feel big, versatile and flexible - spaces that can be repurposed for daily/seasonal needs. 
We believe in squeezing use out of every square inch of space. 
While smaller designs are becoming more popular, compact homes have been built in Melbourne since the late 1800s: for example, you will have seen the Victorian terrace housing and cottages in the north Melbourne suburbs and in Fitzroy and Albert Park. 
The small two-three bedroom home was introduced to the inner suburbs of large Australian cities by the UK in the 1850s when huge swathes were built to accommodate the Victorian Gold Rush population boom.
Building was halted by an economic depression in the early 1890s and when it restarted again in the early 1900s, the demand was for larger houses to accommodate a much smaller population.
It makes sense then that, facing another population boom coupled with the key issue of affordable housing, Vestbuild is committed to continuing the tradition of creating housing in Australia based on what the market requires. 
Another factor shaping our housing needs is the unprecedented aging of our population. 
Vestbuild understands this. 
We understand that the Baby Boom Generation that’s driven change throughout their lives now want new housing models that meet their needs. 
We’ve learned is that Generation Y are looking for the same thing: accessory dwelling units in walkable, urban neighbourhoods.
This need is reshaping the traditional concept of suburban single family living who are moving away from the traditional large lot/large houses that have dominated the Australian property market for the past 20 years. 
Vestbuild has answered this with our intuitive designs that are efficient, appealing and financially viable.
Deniz Sivasli is managing director, Vestbuild and can be contacted <a href="https://www.vestbuild.com" target="_blank">here</a>. 
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Vestbuild's modern take on the Victorian Workers Cottage circa 1850's priced from $299,900 in Doreen

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Which is the better property investment – Sydney or Gosford?
Gosford is the clear winner, according to <a href="https://www.ibuynew.com.au/" target="_blank">iBuynew's</a> Mark Mendel.
<a href="/images/2016/04/21/Screen%20Shot%202016-04-22%20at%208.27.27%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/04/21/Screen%20Shot%202016-04-22%20at%208.27.27%20AM.png" alt="">
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Which is the better property investment, Sydney or Gosford? Mark Mendel

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In our Purchase or Pass segment this week with Charles Tarbey and Tom Panos we see if it was still possible to get a great investment, close to the city, for a reasonable budget at the end of last year.
Location: 8.5kms from CBD
Beds: 1
Bath: 1
Parking: 1
SQM: 68m
Price: $625k
Rent: $550-600/wk
Chris: It’s a 1 bed, 1 bath unit with parking 8.5km’s from the CBD and <a href="https://www.realestate.com.au/property-apartment-nsw-coogee-121217178" target="_blank">less than a km to the local action</a>. It’s a 68 sqm first floor unit, with courtyard off the lounge for outside dining and entertaining. It’s located at the back of the building in a well maintained security block. The property sold for $625k, has a rental estimate of $550-600/wk and has strata fees of $633/qtr. I thought we’d look at some of the information on the advert and decipher how we’d read into that. So when you hear something that’s maybe 8.5km from the CBD and less than a km from the heart of the suburb, what does that mean to you Charles?
Charles: Well, as we’ve always said the western suburbs start at Centennial Park for most people. It’s nice and located close to the city and if you’ve brought it up or you’ve raised it as a property for purchase or pass it’s likely to be in the eastern suburbs somewhere and you’ve likely bought it off one of your mates who work near the eastern suburbs. That’s what I got out of there. What have you got out of that Tom?
Chris: What about for you Tom, 68sqm?
Tom: It says to me that it’s not tiny, it’s the sort of unit that’s liveable. So they’re happy to talk about the size there. And on that previous point, 8.5ks to the city. Anything within 10ks of the city you think it’ll suit a city dweller. So it feels like you might not be right in the heart of it, but you’re close to it. That’s the initial impression.
Chris: Charles, for some of the listeners in the Blue Mountains who like fresh air, how does the courtyard suit?
Charles: Well, I had a look at the photo it looked pretty nice. It looked like I was looking at a wall but was that right, are you looking at a bit of wall?
Chris: Potentially, yeah
Charles: So we’d call that privacy, right, so you get no neighbours looking at you. So that’s what I’d get from that. Tell me, 68sqm does that include a patio?
Chris: That’s including the patio, yeah
Charles: and not the car space
Chris: Yeah, I think car space is maybe 15 on top or something. So again it’s not massive.
Charles: No, it’s a great price for that size
Chris: Backward block Tom?
Tom: Backward block to me, straightaway the initial feeling is that it’s quiet, that you’re not going to be hearing lots and lots of noise. That’s the suggestion on why the agent would write that in the marketing literature.
Chris: Maybe the block’s the other way around and the backs the freeway, you never know so you’ve also got to go and check it out at the same time. But in this case that’s right. North facing Charles?
Charles: Well, that’s an important part of it, you know, the sun, making sure it’s not facing the west where you’ve just got to have your air conditioning on at a certain time. Facing north always is an appealing thing and every agent will use it when they can.
Chris: 22 end block Tom?
Tom: 22, it’s basically saying it’s not one of these big Meriton complexes, where you won’t know everyone. 22, you’ll get to know who the people are there. It’s also not as good as say 6, 8, 10 or 12, but 22 says that it’s not a monster of a building. 
Chris: Yeah, reasonable size. 633 a quarter for the strata fees Charles?
Charles: Yeah, I thought that was really excellent. Actually, and I would have promoted that as probably one of the first points because some of those buildings down there can cost you a great deal more and a lot of people are very concerned about strata fees and they should be.
Chris: Yeah, and I’ll do the final one, 5-600 a week for the rent, 4 and a half to 5 per cent rent this market it’s pretty superb so purchase or pass for you guys?
Charles: Definitely purchase based on the price
Chris: And what about you Tom?
Tom: Purchase, whether it’s 625 or 650 I’m not quite sure what it was, but it’s a good buy.
(Chris) I think this is an almost text book purchase for someone that has a limited budget and still wants to stay in a blue chip suburb. Everything ticks the boxes for me so I would PURCHASE
To watch the discussion in full, <a href="https://www.youtube.com/watch?v=eKMvn0Pu9nc" target="_blank">click here</a>.
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Purchase or Pass: Property investments on a reasonable budget with Chris Gray

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GUEST OBSERVER
Dear Young People, Malcolm Turnbull and Bill Shorten, Daniel Andrews and Matthew Guy.
Please consider younger homebuyers getting access to their super funds, to help them buy a home – please help young homebuyers level up the playing field.
Please don’t say the super idea will start in 2025 – say it will start now – as the time for having children may pass some by during this time.
Granted, it will add a bit more fuel to the market fire – but is that a fair-go reason, not to help young people get onto a level playing field?
It's not a level playing field - Reason 1
When I, as a 57-year-old tax payer can go to an Inner Melbourne auction for $1 million and it cost me $20,000 of my income to buy it – YET for a young homebuyer it costs them $80,000 of their income to buy that same home. It’s not fair. This is not a level playing field.
Is the market out of control, dangerous or is it doing what it should?
“Beggars belief – Defies logic – Unsustainable”
These are the headlines that in part, are being attached to the reasons why we should not help YOUNG PEOPLE with access to their super.
Can I ask why the authors of these headlines say this about the Inner Melbourne market?
What do they mean – what beggars belief in their mind?
That more and more people are wanting to come to Inner Melbourne?
That for all it’s internally recognised faults; Melbourne is seen externally as one of the truly great places in the world to bring up a family.
That political stability, business opportunities, an overarching community attitude of fair play, jobs, education, pollution, gun laws, health system, labour protections and………. are on the tick-off list of almost all skilled migrants in this world.
Why does our strong Inner Melbourne housing market, beggar belief?
Do the economists, bankers and other business people who are saying this, not believe in this century’s old economic demand and supply thesis.
<a href="https://marketnews.com.au/wp-content/uploads/DandS-260x195.jpg" target="_blank">Click to enlarge</a>
<img class="aligncenter size-medium wp-image-59674" src="https://marketnews.com.au/wp-content/uploads/DandS-260x195.jpg" alt="DandS" width="260" height="195">
What “defies logic” about the current Inner Melbourne housing and land market?
False assumptions or different perceptions
In a country, that for decades has been focused on “low fat”, only to become one of the obese nations of the world.
Is it defying logic to think that if we put more calories in (population), than we can exercise out (land), then our bellies will not explode (prices)?
It's not a level playing field - Reason 2
This government supported graphic below, is the Inner Melbourne home market price obesity issue.
This is another of the structural community decisions, that we as older people have made, that are impacting young people.
It’s great for us!
Our asset values go up; but it’s very difficult for young people who do not have housing assets.
<a href="https://marketnews.com.au/wp-content/uploads/VIF.jpg" target="_blank">Click to enlarge</a>
<img class="aligncenter size-full wp-image-59891" src="https://marketnews.com.au/wp-content/uploads/VIF.jpg" alt="VIF" width="299" height="205">
The true Inner Melbourne market price obesity issue is population and the lack of discussion we have around the actual number, rather than the issues.
Are the above population figures acceptable or not – are they sustainable or not?
Yes a falling population has different issues – look at Japan.
However Inner Melbourne doesn’t have a falling population issue – we have the opposite.
So are we really in some unexplainable pricing bubble, so bad that we can’t help YOUNG people because the market is “dangerous”?
Or are we in a normal, but strong market explained by limited supply (land) and increasing demand (population); which affects young people UNFAIRLY because of structural inequities around negative gearing, skilled migration, overseas investment and so on.
One final world about unsustainability of the market, before we get back to young people – young sub-million homebuyers.
These days we are all talking about “unsustainable.”
We seem to be focused on “unsustainable” pricing, rather than our “unsustainable” society as a whole?
In 2030 when your children’s children (grandkids) are 2-3 hours away in Albury or Bendigo, because of housing affordability inequities; or you can’t get an ambulance driver or a teacher, because they can’t find housing in your local area – is that the unsustainable bit you should be talking about or is it pricing?
We live in a society with some issues, but compared to many in the world right now, Inner Melbourne is one of the great pluralistic societies.
We have many obsessions like footy and food and housing AND population growth.
And as our population grows, I’m with the well known economist from Toy Story, Buzz Lightyear who says the Inner Melbourne housing market will, without a change in circumstance, continue to rise, with a few interruptions, ’till infinity and beyond.
Of course there will be hiccups and of course those that cry wolf often enough about doom and gloom, will eventually be right – but in the longer term are we really in so much trouble, that we can’t help young people?
Possibly when an assistant at the Reserve Bank or a leader of business says we are in danger, they are doing so for altruistic reasons to make people think, or they are under the boss’s riding instructions to “hose the market down” – BUT – when those statements are not attached with an additional explanation like – you still can buy a home only have a buffer for interests rate increases, then are those well meaning “expert” comments all that helpful?
Especially when all they usually hose down are the inexperienced homebuyers like the Youngies, who are nervous, in need of permanent housing and are already up against it.
If you believe in demand and supply, then possibly our Inner Melbourne market is not dangerous and we are in nothing more than a strong market.
Which brings us back to the young people in our society.
The young people's housing issue, in our opinion, should be addressed – it will not go away by osmosis AND it is UNFAIR.
Which brings us back to young people and their superannuation funds.
This could be a bloody good idea to level up the playing field for not us oldies, but for young people.
Young people don’t need special treatment; they just need a releveling of a very unlevel and UNFAIR playing field.
I will repeat – with my tax advantages as a 57-year-old tax payer I can go to an Inner Melbourne auction for $1 million and it cost me $20,000 of my income to buy it – YET for a young homebuyer it costs them $80,000 of their income to buy that same home, then that is UNFAIR.
As well, my deposit can come from the increase in my current home value for which I have done little – except make a few smart decisions over the last few decades – before many young people were born.
That possibly is unfair (but maybe not). My point – a young person’s deposit is so, so much harder to get – super could help.
<img class="aligncenter size-large wp-image-60071" src="https://marketnews.com.au/wp-content/uploads/49896-93WellingtonStreetKEW-3-597x447.jpg" alt="49896-93WellingtonStreetKEW-3" width="597" height="447">
Overseas skilled migration and overseas investors. With tax and other structural advantages, Xiou Lin from Beijing or Peter Pepper from the US, can buy that same Australian $1 million home with a myriad of interest rate and currency advantages over a local young homebuyer.
And please financial planners, bankers and so on – please don’t start telling us that young people’s money is better tied up in one of your funds, rather than good land content, near rail with a workable floor plan.
Please don’t do that without declaring your conflicts as well and showing us the stats that actually evidences that theory may have a scintilla of historical truth.
Young people, young Australians of all cultural backgrounds and religions are being pushed out of our society by housing structural unfairness such as negative gearing, skilled migration policies, overseas investment policies and restricted infrastructure spending.
We as older people have resided over a Tax and Immigration system, with the unintended consequence of making the homebuying market very unfair for young people.
It’s not a guilt trip, I don’t feel bad, I just think we should try and level it up a bit and MAYBE SUPER (under controlled circumstances and with due regard to other issues, such as the current industry) could do that.
The past week’s media blast on how bad an idea it is to try and help young people, because it may already add to a strong housing market is a valid point BUT total baloney in the overall scheme of things for young people.
I’m no rocket scientist and therefore I don’t know if the superannuation idea will work for sure, but it seems logical and worth a try.
This and other measures should be tried or Inner Melbourne may well become a desert of walking frames, grumpy old farts, unoccupied housing and NO YOUNG PEOPLE in a few decades.
Hawthorn, Toorak and Brighton could be just one big nursing home in 2035.
Try the superannuation idea and don’t make it too hard for young people to access it.
Please Young People, Daniel Andrews, Matthew Guy, Malcolm Turnbull and Bill Shorten – give the super idea some serious consideration – it seems to makes sense in giving young people a chance to get back on the playing field, with their biggest challenge – a deposit.
Apologies about being on a high horse and I’m not wedded to the super idea, nor am I the author of the idea – I just think it’s a bloody good idea worth being positive over and worth exploring for young people AND we oldies need to recognise that the current system is unfair for Youngies – and that may not be in our best interests in a decade or so.
MAL JAMES is principal of<a href="https://www.jamesbuyeradvocates.com.au/" target="_blank"> James Buyer Advocates</a>, which advocates on behalf of buyers of property over $1 million. Mal writes weekly auction reports, advice and in-depth market analysis on James' website.
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Helping young people get onto a level property playing field: Mal James 

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GUEST OBSERVER
Between January 2011 and December 2015, 512 houses and townhouses were bought and sold in Fitzroy. 
A simple comparison between average prices in 2011 and 2015 reveals that these have increased by about 9.4 percent per year (Table 1).
<a href="/images/2016/03/17/Screen%20Shot%202016-03-17%20at%201.11.45%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/17/Screen%20Shot%202016-03-17%20at%201.11.45%20PM.png" alt="">
That’s the only thing this tells us: people spent more money on each house in 2015 than they did in 2011. As a statistic, averages can be very misleading. They ignore any changes to the mix of properties being put on the market.
For example, each time a property is refurbished, extended or renovated, the value of the property increases. While this increase in value is reflected in an increased average price, this is not true capital growth, as additional investments had to be made. Also, with only about 100 properties being sold each year, the sale of a very few, very large houses would have a significant impact on the average price in that period.
If we break this down into individual years (Table 2), we can see that average prices fluctuate, which again highlights the limitation of using averages as indicators of capital growth.
<a href="/images/2016/03/17/Screen%20Shot%202016-03-17%20at%201.11.50%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/17/Screen%20Shot%202016-03-17%20at%201.11.50%20PM.png" alt="">
A better way to track capital growth is to track individual houses that were bought and then sold again at a later time, while remaining physically unchanged. This eliminates the other factors mentioned earlier that plague averages.
Using selected properties that were sold twice or more since 2011, Table 3 shows the year-on-year capital growth of houses and townhouses in Fitzroy, while Figure 1 shows the growth of a housing investment made in 2011 visually.
<a href="/images/2016/03/17/Screen%20Shot%202016-03-17%20at%201.15.40%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/17/Screen%20Shot%202016-03-17%20at%201.15.40%20PM.png" alt="">
A house that was bought in Fitzroy in 2011 would sell for 25% more in 2015, given it remained in the same condition.
<a href="/images/2016/03/17/Screen%20Shot%202016-03-17%20at%201.18.27%20PM.png">Click to enlarge</a>
<img src="/images/2016/03/17/Screen%20Shot%202016-03-17%20at%201.18.27%20PM.png" alt="">
The only limitation of this methodology is that it can become inaccurate if the sample of properties is small. For example, in Fitzroy only 29 property sales were deemed eligible for the index above. This can be improved by extending the time range to earlier than 2011, which would show longer term growth trends.
For more information, <a href="https://secretagent.com.au/" target="_blank">click here</a>.
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Fitzroy's true property price growth: Secret Agent

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New REIV data shows that tenants can repay the mortgage on a $210,000 one-bedroom Carlton property for just $221 a week - $135 less than the suburb’s median weekly rent of $356. 
With a median apartment price of $335,000, one-bedroom apartments in Melbourne are also more affordable to buy than rent with weekly mortgage repayments of $352 - $49 less than the weekly median rent of $401.
Other suburbs offering value for money include two-bedroom apartments in Carrum Downs where mortgage repayments on a $267,750 property are $282 a week while the median rent for the same property type is $310 – a $28 weekly difference. 
These figures are based on median house prices by bedroom, a 10 per cent deposit and a three-year, fixed interest rate of 4.5 per cent. 
REIV CEO Enzo Raimondo said first home buyers are taking advantage of the low interest rate environment to enter the market at a price they can afford. 
“One and two-bedroom apartments allow first home buyers to get a foothold on the property ladder for what they are currently paying in rent,” he said. “Savvy buyers should also consider two-bedroom properties in Sunshine, where the median apartment price is $275,000 and mortgage repayments are $21 cheaper per week than the median rent.”
 
TOP MELBOURNE SUBURBS TO BUY RATHER THAN RENT:
 
<table style="width: 442px;" border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td>Suburb</td>
<td>Dwelling Type</td>
<td>Weekly Mortgage (Fixed)</td>
<td>Weekly Median Rent (Sep 2015)</td>
<td>Median Price (Sep 2015)</td>
</tr>
<tr>
<td nowrap> </td>
<td nowrap> </td>
<td nowrap> </td>
<td nowrap> </td>
<td nowrap> </td>
</tr>
<tr>
<td nowrap>PAKENHAM</td>
<td nowrap>3-bedroom unit</td>
<td nowrap>$294</td>
<td nowrap>$300</td>
<td nowrap>$280,000</td>
</tr>
<tr>
<td nowrap>CARLTON</td>
<td nowrap>1-bedroom unit</td>
<td nowrap>$221</td>
<td nowrap>$356</td>
<td nowrap>$210,000</td>
</tr>
<tr>
<td nowrap>MELBOURNE</td>
<td nowrap>1-bedroom unit</td>
<td nowrap>$352</td>
<td nowrap>$401</td>
<td nowrap>$335,000</td>
</tr>
<tr>
<td nowrap>SOUTHBANK</td>
<td nowrap>1-bedroom unit</td>
<td nowrap>$447</td>
<td nowrap>$465</td>
<td nowrap>$425,000</td>
</tr>
<tr>
<td nowrap>NOBLE PARK</td>
<td nowrap>1-bedroom unit</td>
<td nowrap>$201</td>
<td nowrap>$210</td>
<td nowrap>$191,000</td>
</tr>
<tr>
<td nowrap>MITCHAM</td>
<td nowrap>1-bedroom unit</td>
<td nowrap>$303</td>
<td nowrap>$310</td>
<td nowrap>$288,000</td>
</tr>
<tr>
<td nowrap>ASCOT VALE</td>
<td nowrap>1-bedroom unit</td>
<td nowrap>$265</td>
<td nowrap>$270</td>
<td nowrap>$252,125</td>
</tr>
<tr>
<td nowrap>CARRUM DOWNS</td>
<td nowrap>2-bedroom unit</td>
<td nowrap>$282</td>
<td nowrap>$310</td>
<td nowrap>$267,750</td>
</tr>
<tr>
<td nowrap>SUNSHINE</td>
<td nowrap>2-bedroom unit</td>
<td nowrap>$289</td>
<td nowrap>$310</td>
<td nowrap>$275,000</td>
</tr>
<tr>
<td nowrap>PAKENHAM</td>
<td nowrap>2-bedroom unit</td>
<td nowrap>$264</td>
<td nowrap>$273</td>
<td nowrap>$251,000</td>
</tr>
<tr>
<td nowrap>WERRIBEE</td>
<td nowrap>2-bedroom unit</td>
<td nowrap>$246</td>
<td nowrap>$250</td>
<td nowrap>$234,000</td>
</tr>
<tr>
<td nowrap>CRAIGIEBURN</td>
<td nowrap>2-bedroom unit</td>
<td nowrap>$292</td>
<td nowrap>$295</td>
<td nowrap>$278,000</td>
</tr>
<tr>
<td nowrap>MELTON SOUTH</td>
<td nowrap>3-bedroom House</td>
<td nowrap>$257</td>
<td nowrap>$265</td>
<td nowrap>$244,000</td>
</tr>
<tr>
<td nowrap>MELTON</td>
<td nowrap>3-bedroom House</td>
<td nowrap>$258</td>
<td nowrap>$260</td>
<td nowrap>$245,000</td>
</tr>
</tbody></table>
 
Source: <a href="https://www.reiv.com.au" target="_blank">REIV</a>
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The top 14 Melbourne suburbs where it's cheaper to buy than rent: REIV

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GUEST OBSERVER
Building approvals rose slightly in September, but did not offset last month’s fall. 
We continue to believe that the housing market is at or near a peak, and further growth from housing construction is looking increasingly unlikely.
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Housing building approvals rose marginally in September, not offsetting the previous month’s decline, which was revised even further downward. Detached housing approvals fell slightly, meaning that activity has been unchanged for near two years. But the key swing variable, the higher-density segment, posted growth of 6.9% m/m (Figure 1).
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 This monthly growth in the higher-density segment was mixed across the states. Queensland rebounded sharply to a near-record level, while Victoria posted mild growth. On the other hand, New South Wales approvals fell heavily, and are now 60% lower than the peak of just two months ago, highlighting the volatility inherent in the data. Nonetheless, the national level of approvals continued to trend lower, consistent with our belief that although demand for new housing will remain solid, it will not return to the peak levels of earlier this year. This means that although construction activity will remain elevated, further growth, and further contribution to national output, will be increasingly hard to come by.
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 Meanwhile, the outlook remains weak in the non-residential segment. Approvals rose slightly in September, but remain low, hindered by ongoing softness in the office segment particularly. Accommodation-related approvals continue to trend higher, and now sit at record levels, likely supported by the lower AUD’s positive impact on the tourism sector (Figure 2). 
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<div class="column">Other data today showed house price growth weakening in Sydney, up just 0.3% in October (in seasonally adjusted terms). In turn, annual price growth eased back to 16%, from a peak of 20% in July. This marked slowdown is in line with falling auction clearance rates (Figure 3), reflecting lower housing market sentiment, especially amongst investors. Melbourne price growth remained more robust, outpacing Sydney for the past four months in seasonally adjusted terms. However, price growth is easing in Melbourne too, and has slowed over each of the past three months.</div>
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 This waning enthusiasm for housing is at least partially driven by tighter regulation aimed at removing some of the heat from the housing market. APRA’s macro prudential measures (which have resulted in tighter borrowing conditions and higher interest rates) have resulted in a sharp slowdown in investor borrowing, as seen in last Friday’s credit data. This is expected to result in house price growth easing further over coming months, with Sydney and Melbourne growth rates to converge with other capital cities. 
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Cherelle Murphy is co-head of Australian economics, ANZ and Daniel Gradwell is economist. They can be contacted <a href="https://bluenotes.anz.com/authors/our-economists/" target="_blank">here</a>.
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Building approvals improve, house price growth eases: ANZ Research

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The townhouse was long viewed as lesser property choice.
But townhouses in our inner and middle ring suburbs are now categorised as a smart lifestyle choice and making good investments.
They fall between the increasingly prevalent high rise apartments and detached homes on the larger land holding.
Townhouses are the increasing the preferred accommodation for a several competing demographic groups, struggling between the choice of freestanding and high rise.
There was an extraordinary result last weekend when the Glebe townhouse of ABC television personality Leigh Sales went to auction.
It secured $1,705,000 when auctioned by BresicWhitney agent Andrew Liddell.
The Jarocin Avenue property first sold in 1996 for $420,000, reflecting 7.5% annual growth over the near two decade period.
The two level corner property, with two car spaces, last sold in 2009 at $955,000, so the price reflected 9% annual growth over their six years. There had been no sales in the tightly held complex of 10 in the interim.
Leigh Sales, the 7.30 presenter, and her husband, animator Phil Willis, had hoped their townhouse would fetch more than $1.3 million, with plans to upsize to something nearby with more space for their now family of four. 
It sold to unit dwellers from Pyrmont seeking a new home for their young family.
The property attracted 10 registered bidders with around six putting their hands up throughout the auction. 
Many attendees walked away shaking their heads, the price of the 196 sqm townhouse pushed well beyond all expectations given the diversity of the buyers.
There were numerous kinds of buyers in the crowd - the most obvious the family with children at one of the nearby tertiary education campuses. The kids want to move closer to the city, and so too did the parents, so this place was perfect. 
Baby boomer empty nesters looking to downsize were keen bidders. There were those seeking the courtyard space for gardening, or their pet or just for the joy of outdoor space.
Buyers priced out of existing detached homes.
Investors too who viewed the townhouse as a solid low maintenance investments within walking distance to shops, transport and restaurants, all highly sort after by tenants.
There no doubt were also been apartment weary investors.
Townhouses are appealing not just for affordability, amenity and liveability.
There is a sense of individuality about a townhouse that you don't get from high rise apartments.
These properties also have good underpinning land value, as this townhouse sits on a 1500 sqm block of land, yet only has 10 abodes on the block.
The nationwide trend sees the proportion of people living in detached houses falling. Down by one percentage point between 2006 and 2011, with a shift towards more people living in units and townhouses, according to latest ABS census data. 
Of Australia's private dwellings, 75.6% were separate houses, compared with 76.6% in the 2006 census. Meanwhile the number of semi-detached, terraced house or townhouse rose from 9.2% to 9.9%.
Flats too rose from 13.1% of dwellings to 13.6%, and will no doubt show a bigger rise in the next census, I suspect because the development industry sees greater gains from apartment construction, rather than the more costly townhouse option.
In the 2011 NSW census data, some 69.5% were separate houses, 10.7% were semi-detached, row or terrace houses and townhouses with a rising rampant 18.8% were flats.
Sadly there just isn't the required diversity of product in new Sydney housing developments, which ends up placing higher price pressures on what's fast becoming the townhouse sweet spot. 
This article was first published in the Saturday Daily Telegraph.
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