The PRWIRE Press Releases https:// 2019-02-27T19:00:00Z Solid 2018 for Gold Coast New Apartment Market, With a Hint At 2019’s Prospects 2019-02-27T19:00:00Z solid-2018-for-gold-coast-new-apartment-market-with-a-hint-at-2019s-prospects 2018 has been a great year for the Gold Coast new apartment market, as revealed in the latest release of the Apartment Essentials by leading property consultants, Urbis. The Gold Coast recorded 1,010 sales in 2018 – 24 per cent higher than 2017’s performance. On average, there were 252 sales each quarter, however the first three quarters showed stronger sales rates. In other years, Urbis has seen growth in the final quarter, however 2018 saw a slight fall, with 156 sales. ‘Urbis is monitoring 75 new apartment projects across the Gold Coast, a post GFC record. While the number of apartment projects has risen, the projects are generally containing less apartments than was seen in previous cycles’ said Lynda Campbell, Senior Consultant at Urbis. ‘We have seen a shift away from the mega-towers and sites with numerous buildings toward smaller boutique style apartment buildings.’ 2018 saw 33 new apartment projects launch across the Gold Coast. Two projects sold out in the quarter, bringing the annual tally to nine projects sold out and 30 per cent of this quarter’s surveyed projects are over 75 per cent sold out. The Gold Coast recorded weighted average sale prices in the low $700,000s over the course of 2018, whereas 2017 recorded low to mid $600,000s. The gradual increase in apartment prices is consistent with the higher concentration of luxury apartment projects on the Gold Coast, highlighting the move towards larger, owner occupier buildings. Southern Beaches recorded the highest weighted average sale price during the quarter ($797,500), based on 40 sales, coinciding with the precinct’s larger proportion of 3-bedroom products (23 per cent of future supply). 12 months ago, this precinct had 14 projects being actively marketed – it now has 24. ‘Apartments in this precinct tend to have larger floor plates and are suitable for owner occupiers, hence the higher price points’, Ms Campbell commented. The Gold Coast Central precinct recorded the highest sales rate with 87 sales, dominated by high rise projects and selling mainly two-bedroom, two-bathroom products. Interstate investors and owner occupiers made up the majority of sales in the quarter, with 41 per cent and 38 per cent respectively. Owner occupiers made up the majority of sales in 2018 with 38 per cent, followed closely by interstate investors 36 per cent of total buyers in 2018. 2019 is shaping up to be an exciting year for Gold Coast’s new apartment market, with approximately 2,000 new apartments expected to launch their sales campaigns in the first half of 2019. Strong population growth and an increase in interstate migration should see demand continue into 2019. Urbis Gold Coast Apartment Essentials Q4 2018 snapshot: Weighted average sale price recorded: $715,865 7 project launches in the quarter: 412 new apartments 709 apartments approved in the quarter For media enquiries contact: Stephanie Keith, Senior Brand & Clients Consultant Ph: 02 8233 7633 E: skeith@urbis.com.au Rebecca Jagger and Alexis Carroll at DEC PR Ph: 02 8014 5033 E: urbis@decpr.com.au About Urbis Apartment Essentials The Urbis Apartment Market Essentials is the most comprehensive national survey in Australia, and the only survey for which the sales data for apartment projects with 25 or more units is collected at the time of contract rather than at settlement. Projects with 25 apartments or more are tracked from initial application through to the building being sold out for projects across Perth and key areas of density across Sydney, Melbourne, Brisbane and Brisbane. As well as tracking the status of 2,513 developments Urbis receives surveys from 295 apartment developments. Urbis recognises the traditional owners of the land on which we work. Learn more about our Reconciliation Action Plan. National new apartment market set to show signs of recovery in 2019 2019-02-27T19:00:00Z national-new-apartment-market-set-to-show-signs-of-recovery-in-2019 Australia saw a lot of new things in 2018: a new prime minister, tightening lending controls, debates around housing affordability and thousands of new apartments launched across Australia. But how did each market compare and what does 2019 have in store? Urbis’ Apartment Essentials brings together the sales and supply data from five markets across the country, revealing the quarterly wins and losses in the many new apartment markets. Today’s release provides a yearly review as the fourth and final quarter brings perspective to the recently departed 2018. Sales With new stock coming in and sales experiencing speed bumps, national apartment sales as a percentage of available stock surveyed has dropped to a new low of 7.7 per cent in quarter four. Clinton Ostwald, Director at Urbis, commented, ‘we’ve seen fluctuating results around the country. In many markets, buyers are soaking up the existing completed stock as the brakes have been put on new launches. In other markets, new projects are still being launched to market, replenishing the supply and leading to steady sales. Sales rates have been dropping for the last two years, so it’s no surprise that 2018’s results were lacklustre in comparison to 2017. In Sydney, surveyed sold stock averaged 21 per cent of available supply throughout each quarter in 2017 whereas this dropped to 5.5 per cent in 2018. Melbourne and the Gold Coast followed in this same pattern with sales as a percentage of available stock dropping by around 4 per cent over the same period. Brisbane and Perth, the markets that have seen the least new stock enter, have reversed this trend and have seen slight increases in 2018. Stock It’s not the stock crisis we imagined one year ago. Lower levels of new stock entering the market has continued to replenish the slow sales throughout 2018, with 24,000 new apartments launching throughout the year. The two biggest markets saw the most impressive figures; Melbourne took the cake with over 11,244 new apartments entering the market in 2018, while Sydney placed second in the country with 4,810 new apartment launches. There was a surprising standstill in Brisbane with no new launches in the quarter, however the first half of 2019 will likely bring over 1,000 new apartment launches for the sunny city. Apartment approvals are at their lowest in the history of Urbis’ Apartment Essentials, sitting at 4,576 in quarter four 2018. With new design specifications and planning requirements in some jurisdictions, we’re likely to see this number continue to fall in 2019. In relation to the falling levels of new launches and apartment approvals, Mr Ostwald observed, ‘we need to keep an eye on supply levels as ongoing population growth, particularly on the East Coast, will quickly take up available supply. This may result in a housing supply shortage in the next 12 to 18 months as we are also seeing fewer completions in the greenfield house and land market.’ Buyer Profile It truly was a year for owner occupiers, with 46 per cent of total sales for 2018 attributed to this buyer type. Interstate investors leapt up by 10 per cent in 2018, accounting for 19 per cent of sales. Local state investors, who previously accounted for 30 per cent of the market in 2017, dropped down to 17 per cent in 2018, in line with foreign investors. Q4 2018 Apartment Essentials Snapshot 7.7 per cent of the surveyed available stock was sold in the December quarter across the five markets: Sydney (6 per cent of available surveyed stock sold, 977 new apartments launched) Melbourne (9 per cent of available surveyed stock sold, 2781 new apartments launched) Brisbane (9 per cent of available surveyed stock sold, no new apartments launched) Perth (9 per cent of available surveyed stock sold, 464 new apartments launched) Gold Coast (6 per cent of available surveyed stock sold, 377 new apartments launched) National weighted average sale price recorded at $705,226 for Q4 Sydney – $899,793 Melbourne – $656,739 Brisbane – $831,884 Perth – $602,524 Gold Coast – $715,032 The most popular product type was two-bedroom, two-bathroom product at 47% of total sales. Across the cities the highest selling product types were: Sydney – One-bedroom, one-bathroom apartments – 48% Melbourne – Two-bedroom, two-bathroom apartments – 44% Brisbane – Two-bedroom, two-bathroom 53% Perth – Two-bedroom, two-bathroom – 41% Gold Coast – Two-bedroom, two-bathroom – 66% 25% of actively selling apartments are in presales, 49% are under construction and 26% are recently built. For media enquiries contact: Stephanie Keith, Senior Brand & Clients Consultant Ph: 02 8233 7633 E: skeith@urbis.com.au Rebecca Jagger and Alexis Carroll at DEC PR Ph: 02 8014 5033 E: urbis@decpr.com.au About Urbis Apartment Essentials The Urbis Apartment Market Essentials is the most comprehensive national survey in Australia, and the only survey for which the sales data for apartment projects with 25 or more units is collected at the time of contract rather than at settlement. Projects with 25 apartments or more are tracked from initial application through to the building being sold out for projects across Perth and key areas of density across Sydney, Melbourne, Brisbane and Brisbane. As well as tracking the status of 2,513 developments Urbis receives surveys from 295 apartment developments. Urbis recognises the traditional owners of the land on which we work. Learn more about our Reconciliation Action Plan. Brisbane Soaking Up the Stock As New Apartment Launches Dry Up 2019-02-27T19:00:00Z brisbane-soaking-up-the-stock-as-new-apartment-launches-dry-up-1 Today, leading property experts, Urbis released their latest update of the Apartment Essentials, Australia’s most comprehensive new apartment survey. This latest release features a 2018 summary as well as a look into what 2019 has in store. The Inner Brisbane region recorded 138 sales in the fourth quarter of 2018, dropping back down after a stand-out quarter three result. There was a total of 840 new apartment sales in 2018, almost 30 per cent lower than 2017. Paul Riga, Director at Urbis, summarised, ‘the fourth quarter result was to be expected, with no new projects launching, buyers are essentially soaking up the current projects on the market’. Across Inner Brisbane, new apartment launches dropped off in 2018, down by around 35 per cent on 2017 launches. Available stock has fluctuated throughout the past two years, however after a peak in 2017 Q2 with a record 3,243 apartments available at the start of the quarter, available stock has hovered around the low to mid 2000s throughout 2018. Sales as a percentage of available stock have also dwindled, dropping to a record low of 9.4 per cent in the final quarter of 2018. The downward movement in available stock highlights the continued absorption of this product, and importantly that demand for new apartments is still present in the market. Whilst the depth of the investor market is still subdued, owner occupiers are the key target market, with many projects now boutique in nature and catering to the needs of a longer-term resident. This can be noted in the results, as despite the drop in the volume of sales, the weighted average sale price was significantly higher than 2017’s quarterly reports, indicating that the style and quality of stock currently selling has changed. Whilst the latter half of 2018 saw conservative developer activity, many developers are being buoyed by the levels of sales absorption, low vacancy rates and stable growth drivers for Brisbane. Approximately 2,000 apartments are anticipated to launch in the three quarters of 2019, and with a replenishing pipeline, it is likely to register a pick-up in sales. ‘Ultimately it will be access to finance (for buyers and developers) that will temper the inner Brisbane market in the short-term,’ said Mr Riga, ‘but the drivers of demand are there, and smart developers are already looking at opportunities for their next move’. Urbis Brisbane Apartment Essentials Q4 2018 snapshot: Weighted average sale price recorded: $831,884 48% of buyers were owner occupiers 674 apartments approved in the quarter For media enquiries contact: Stephanie Keith, Senior Brand & Clients Consultant Ph: 02 8233 7633 E: skeith@urbis.com.au Rebecca Jagger and Alexis Carroll at DEC PR Ph: 02 8014 5033 E: urbis@decpr.com.au About Urbis Apartment Essentials The Urbis Apartment Market Essentials is the most comprehensive national survey in Australia, and the only survey for which the sales data for apartment projects with 25 or more units is collected at the time of contract rather than at settlement. Projects with 25 apartments or more are tracked from initial application through to the building being sold out for projects across Perth and key areas of density across Sydney, Melbourne, Brisbane and Brisbane. As well as tracking the status of 2,513 developments Urbis receives surveys from 295 apartment developments. Urbis recognises the traditional owners of the land on which we work. Learn more about our Reconciliation Action Plan. Melbourne Apartments: Posing Questions & Answers on Housing Affordabilit 2019-02-27T19:00:00Z melbourne-apartments-posing-questions-answers-on-housing-affordabilit Today, leading property consultants, Urbis released the 2018 summary for Melbourne’s new apartment market, featuring the latest results for the December quarter. The Urbis Apartment Essentials has been a trusted source of information for new apartment sales and supply for four years, using survey data and detailed research to provide an accurate look at today’s new apartment market. Urbis analysed 230 sales from a sample of 48 projects, comprising almost 10,000 apartments in Melbourne in quarter four 2018. Coupled with detailed analysis of 1,140 sales across the year, Urbis Apartment Essentials has sampled between 15 to 20 per cent of new apartment projects in the city in each quarter. Melbourne’s weighted average sale price hovered around the mid $600,000s throughout the year and recorded a weighted average sale price of $657,000 in quarter four. Despite prices appearing to hold steady at a market level, affordability is still very much in focus, with housing emerging as a core battleground in the upcoming federal election. The proportion of sales in more affordable apartments has increased, with apartments priced beneath $400,000 accounting for 12 per cent of all sales in quarter four, a stark difference to the 5 per cent recorded in 2017 quarter four. This coincided with one-bedroom apartment sales accounting for one third of sales in quarter four, having fluctuated between one quarter and a third of sales throughout 2018. Consistent with national trends, sales of two-bedroom apartments continued to make up the majority of sales in Melbourne at 60 per cent in Q4 2018 compared to 57 per cent for the full year. Two-bedroom, two-bathroom apartments remained a buyer favourite, accounting for 44 per cent of all sales, up from 34 per cent in the third quarter. Sales of three-bedroom apartments accounted for 10 per cent of off the plan transactions. The market pivot to owner occupiers is increasingly apparent with 54 per cent of new apartments purchased throughout the year to this segment, while overseas investors dropped down from 40 per cent in 2017 to 23 per cent in 2018. Despite a series of initiatives aimed at dampening overseas investor demand and fears emerging in recent years over settlement, it is encouraging to see that major central city towers are settling as planned, with developers getting on the front foot with buyers well in advance of settlement. However, with funding challenges in both the development and purchaser markets, measures aimed at testing serviceability in the short-term risk having adverse affordability effects in the longer run. This is becoming increasingly clear as future housing supply is being held up by reduced lending and uncertainty in the lead up to the federal election. In line with the wider residential market, the pace of sales dropped in the last quarter, dipping below 10 per cent of available stock sold for the first time. That said, Melbourne has maintained a more rapid rate of sale than other Australian markets in the quarter, but also for the year, averaging 12.4 per cent of available sold per quarter throughout 2018. Amid the tougher conditions, there are projects that are managing to stand out from the crowd. Typically these are delivering either one or a combination of the following: A relatable scale, close to existing amenity and jobs, with views Precinct renewal, bringing new amenity in areas where there is limited housing supply or diversity of product Delivering client service and customisation at an attractive price point Approvals continued to decline, with just over 1,800 apartments approved in the last quarter of 2018 representing one third of the volume approved in the equivalent quarter a year earlier and well below the average quarterly volume over the last two years (5,400). In summary, while apartments present a much-needed affordable option into the housing mix, the slowdown in credit and repercussions in the wider residential market, continue to impact upon the delivery of housing in the inner city and middle ring. As population growth continues amid sound economic conditions, the stall in supply stemming from the standoff between lenders, regulators, policymakers, developers and most importantly buyers, risks accentuating the demand to supply imbalance in the medium term. This brings risks of flow on consequences to housing affordability as the market regains traction. Urbis Melbourne Apartment Essentials Q4 2018 snapshot: Weighted average sale price recorded: $657,000 14 project launches in the quarter: 2,781 new apartments 1,827 apartments approved in the quarter For media enquiries contact: Stephanie Keith, Senior Brand & Clients Consultant Ph: 02 8233 7633 E: skeith@urbis.com.au Rebecca Jagger and Alexis Carroll at DEC PR Ph: 02 8014 5033 E: urbis@decpr.com.au About Urbis Apartment Essentials The Urbis Apartment Market Essentials is the most comprehensive national survey in Australia, and the only survey for which the sales data for apartment projects with 25 or more units is collected at the time of contract rather than at settlement. Projects with 25 apartments or more are tracked from initial application through to the building being sold out for projects across Perth and key areas of density across Sydney, Melbourne, Brisbane and Brisbane. As well as tracking the status of 2,513 developments Urbis receives surveys from 295 apartment developments. Urbis recognises the traditional owners of the land on which we work. Learn more about our Reconciliation Action Plan. Renowned Urban Designer Chris Melsom joins Urbis 2019-02-13T23:25:07Z renowned-urban-designer-chris-melsom-joins-urbis Urbis is thrilled to announce the Director appointment of Chris Melsom, an esteemed architect, planner and urban designer with 30+ years of experience delivering strategic urban change. Chris brings significant local and international experience to the Urbis National Design team. As an urban design specialist, Chris has worked in senior roles at HASSEL, Tract (WA) and East Perth and Subiaco Redevelopment Authorities, unlocking the potential of cities, places, and sites across Australia and South East Asia. He was recently the Director of the Australian Urban Design Research Centre, where he also taught in the Master of Urban Planning program at The University of Western Australia before joining Urbis. With 30+ years of experience in strategic urban design, Chris brings to Urbis broad expertise in the leadership and management of multi-disciplinary design teams for large scale, complex projects. His arrival complements the National Design team’s already diverse range of skills and will cement Urbis as an industry leader in the arena of city shaping and place building. Ray Haeren, Regional Director Perth said, “We are pleased to welcome renowned Urban Designer Chris Melsom to Urbis. His skills and experience will be a fantastic complement to the diverse and talented team locally, nationally and internationally. “Chris is more than a designer, he brings a strategic perspective and insight… with a grounded personality to boot,” said Ray. James Tuma, Group Director National Design added, “We are delighted to confirm the appointment of Chris Melsom to the growing international team of designers at Urbis. Chris brings a wealth of local market knowledge and a design pedigree that cements our position as the strongest urban design and strategy advisors in the West Australian market.” Carl Thompson, Director National Design said: “It’s an exciting time for Urbis in Perth. Chris has a strong urban design presence in Western Australia and South East Asia and brings both an international perspective and a deep appreciation for the local context to the table.” “Chris is a city-shaping expert of the highest calibre and we look forward to his design leadership as we continue to deliver great outcomes for our clients,” said Carl. On his appointment, Chris Melsom said, “It’s no accident that Urbis is becoming one of the leading thinkers in the urban design space, locally and abroad, combining economics, planning and a passion for creating places that really work.” “I’m looking forward to joining the bright minds of Urbis and contributing to the important goal of shaping cities and communities for a better future.” Reflecting on his career, Chris added: “The best solutions aren’t always the ones we thought we’d find. Sometimes, it’s having a good process of exploration, rigorous testing and engaging with real people that opens up all sorts of possibilities for creating more liveable and resilient outcomes.” “I think it’s fantastic that Urbis sets its sights on city-scale thinking, so that projects not only work independently to exceed our clients’ needs and aspirations, but work together to create something that enriches its context socially, culturally, economically and environmentally as well,” said Chris. “The Urbis Design team is well placed to bring together strategic planning, urban economics and design thinking for new communities, whether developing a complex urban renewal strategy, preparing a site development master plan or building an integrated landscape and built form solution.” “Having worked on large scale urban renewal and development projects internationally for over 30 years, I look forward to making the most of that background with the Urbis team in Perth,” said Chris. National apartment statistics: Two-bedroom apartments most attractive to Aussie buyers 2017-12-17T19:00:00Z national-apartment-statistics-two-bedroom-apartments-most-attractive-to-aussie-buyers Property consultants Urbis surveyed 37% of brand new and off the plan apartments across Sydney, Melbourne, Brisbane, Perth and the Gold Coast in the September 2017 quarter, recording a total of 1,241 sales. This is a 35% decrease in sales from the previous July quarter which recorded a spike in sales, though similar to the March 2017 quarter (38% of market surveyed), which recorded a total of 1,360 sales. Of the surveyed apartments nationally, 75% are now sold. Urbis monitored over 100,000 actively selling apartments across 704 developments nationally, of which 69% are currently under construction or built. Despite the sales slowdown, the number of available apartments remaining to sell is at the lowest level in years. National Director of Property Economics and Research, Clinton Ostwald, said, “At the end of the quarter, only 9,827 surveyed apartments remained available for sale, compared to 12,548 apartments at the same time last year. Fewer new apartments are launching to the market, leading to fewer sales, however the existing product is still selling though at a slightly slower rate.” PRODUCT Two-bedroom, two-bathroom apartments were the most popular selling product, accounting for 47% of total sales, compared to 39% in the previous quarter. One-bedroom, one-car park apartments were the next most popular product type making up 23% of total sales. Three-bedroom plus product recorded 13% of total sales, the same rate as the previous quarter. Looking at projects currently under construction, an average of 55% of future supply across the country is made up of two-bedroom apartments, while one-bedroom apartments make up 32%, with the remainder being three-bedroom plus units and studios. PRICE Across Australia, the weighted average sale price decreased by $36,672. This decrease was only felt across Brisbane and Perth, which impacted the overall price as surveyed sales in these cities made up 46% of the sample. Mr Ostwald said, “The number of apartments on the market which had recently been completed had an impact on price, as developers, particularly in Brisbane and Perth, were keen to move existing product. “Across the country quality apartments in highly sought-after locations are selling first, quickly achieving their presale targets.” In Perth, 44 per cent of actively selling apartments are now built. Similarly, in Brisbane 35 per cent of projects have completed. In Sydney and Melbourne, respectively, only 14% and 10% of actively selling apartments are built. Nationally, the weighted average sale price for a built apartment was $657,000, for an apartment under construction $788,000, and for an apartment in presales $914,000. FUTURE SUPPLY Sixty-nine developments yielding over 11,000 units settled in the quarter, the majority of these being in Brisbane (31%), Melbourne (33%) and Sydney (31%). Additionally, nineteen projects yielding just under 2,000 apartments sold out in the quarter. Twenty-nine projects yielding over 4,000 apartments launched nationally in the quarter, compared to 56 projects yielding over 6,000 apartments in the same period last year. As well as a slowdown in project launches, only 7,047 apartments were approved, the lowest number of approvals since the beginning of 2014. Mr Ostwald noted, “The slowdown in supply along with demand was a positive sign for the apartment market.” “In 2018, over 44,000 apartments are expected to settle across all five cities, including approximately 10% of which belong to already sold out developments. The skyline and the way we live in Australia is changing, however the pace is currently maintainable. Currently there are approximately 131,000 apartments in development application and approval across the five cities and new development approvals are slowing down. “Of course, not all of these will come to the market, and the level of demand will regulate what does sell and is eventually built. “In Q3, each state had their own story to tell about market conditions, however the united message was one of stability. “In Brisbane, fewer launches, combined with competition from built product that hasn’t been able to settle suggests we won’t be seeing sales numbers increasing, but rather maintain at the current pace. Elsewhere in Queensland, with the festive season and the lead up to the Commonwealth Games, The Gold Coast is quite active for property developers. “In Sydney, owner occupiers and local state investors made up 86% of total transactions this quarter, so we can see that in current conditions the market is very much a local one. The Melbourne market is still very much in presales, and almost 50% of active selling projects in Inner Melbourne have not yet commenced construction. While in Perth, we are seeing sentiment improve about the economy and property market, and we expect to see population growth levels improve, leading to more demand.” said Mr Ostwald. Urbis Apartment Essentials Q3 2017 snapshot: 1,241 sales were recorded in the September 2017 quarter across: Sydney (381 sales, 19% of market surveyed, market size 41,844 units) Melbourne (291 sales: Inner Melbourne 131 sales, 22% of market surveyed, market size 32,636 units – a further 160 sales were recorded in the middle-ring) Brisbane (300 sales, 62% of market surveyed, market size 18,441 units) Perth (276 sales, 88% of market surveyed, market size 10,681 units) Gold Coast (153 sales, 83% of market surveyed, market size 4,519 units) Weighted average sale price recorded at $822,570, a national decrease of $37,000. Sydney - $1,205,774 - $47,000 increase Inner Melbourne - $737,473 - $82,000 increase Brisbane - $644,667 - $81,000 decrease Perth - $608,424 - $53,000 decrease Gold Coast - $676,307 - $48,000 increase The most popular product type was two-bedroom, two-bathroom product at 47% of total sales. Across the cities the highest selling product types were: Sydney – Two-bedroom, two-bathroom apartments - 32%. Inner Melbourne – Two-bedroom, two-bathroom apartments - 27%. Brisbane – Two-bedroom, two-bathroom – 50% Perth – Two-bedroom, two-bathroom – 60% Gold Coast – Two-bedroom, two-bathroom – 69% 31% of actively selling apartments are in presales, 49% are under construction and 20% are recently built. ENDS For media enquiries contact: Rebecca Parry, DEC PR Ph: 02 8014 5033 E: urbis@decpr.com.au About Urbis Urbis is a market-leading firm with the goal of shaping the cities and communities of Australia for a better future. Drawing together a network of the brightest minds, Urbis consists of practice experts, working collaboratively to deliver fresh thinking and independent advice and guidance – all backed up by real, evidence-based solutions. Working across the areas of planning, design, policy, heritage, valuations, transactions, economics and research, the expert team at Urbis connect their clients in the public and private sectors to a better outcome, every time. New Perth Apartment Statistics: Perth apartment market continues to see demand 2017-12-13T19:02:00Z new-perth-apartment-statistics-perth-apartment-market-continues-to-see-demand Despite sluggish activity for Perth real estate, the new apartment market continued to show resilience with 267 sales totalling almost $170 million in value. Urbis Apartment Essentials report for Q3 2017 found that the Perth real estate market was starting to recover with 624 apartment sales in the second half of the year compared to 511 sales in the first half of the year. September 2017 quarter sales were evenly spread across Inner, Fringe and Western Suburbs precincts, however the top two selling projects were both Finbar developments, with the successful launch of Reva in South Perth and Vue Tower in East Perth. Across Perth, the weighted average sale price was $608,424, this was lower than the previous quarter which reflected the more diverse sales, as opposed to the previous quarter which saw a high focus of sales in the Western Suburbs. Sales in other areas (areas outside of the eight defined Urbis precincts and generally more suburban areas) saw an increase in activity for the quarter with 48 apartments sold for the quarter. In the first half of 2017 activity in these areas fell right back (44 sales) but it picked up again in the second half of the year (93 sales). An issue for projects looking to achieve pre-sales continues to be competition from recently completed projects with 38% of total sales in recently built apartments, and a further 30% were in developments which had commenced construction. Urbis Director of Property Economics and Research, David Cresp, said, “Our research shows pre-sales are continuing to support new projects, with almost 60% of all apartments currently under construction having been sold off the plan.” There were only three developments yielding 163 new apartments launching to the market this quarter. However, there are a number of projects sitting on the sideline with 20 projects yielding 1,578 apartments looking to launch over the next 12 months. This is attesting the regained confidence in the Perth apartment market. Included in the launches are projects such as Wright Street Apartments and Eden apartments, which launched in Q4 and are already seeing strong sales. Mr Cresp said, “Apartment over supply was not an issue for the Perth market. Apartments accounted for only 17% of all dwelling approvals according to ABS data for the YTD August 2017. Minute in comparison to Sydney, where 54% of approvals were apartments. As to who these apartments are aimed for, according to Urbis research 53% of sales were to owner-occupiers this quarter, and a further 25% were to local state investors.” The outlook for apartments in Perth was positive, with sentiment improving about the economy and property market in general for 2018. “We expect to see population growth levels improve, leading to more demand. While we are seeing lower levels of apartment completions forecast in 2018, which will allow the market the breathing space it needs to sell any excess apartments. Overall, I feel the Perth apartment market is sitting comfortably.” concluded Mr Cresp. Urbis Perth Apartment Essentials Q3 2017 Snapshot The Perth Apartment Essentials Report found: 276 sales were recorded in the September 2017 quarter. The Inner City precinct recorded the majority of sales at 52 sales, followed by the Other precinct (48 sales), Fringe-East (36 sales), Western suburbs (36 sales), Fringe-South (35 sales), Fringe-North West (30 sales), Southern (16 sales), Southern-Coastal (14 sales) and Outer Southern (9 sales) The weighted average sales price for the September 2017 quarter was $608,424. Two-bedroom two-bathroom product made up the majority of sales at 60% of total sales. One-bedroom, one-bathroom product made up 24% of total sales compared to 29% in the previous quarter. Owner occupier sales dominated the market with 53% of transactions, up slightly from 50% in the previous quarter. ENDS For media enquiries contact: For media enquiries contact: Rebecca Parry, DEC PR Ph: 02 80145033 E: urbis@decpr.com.au About Urbis Urbis is a market-leading firm with the goal of shaping the cities and communities of Australia for a better future. Drawing together a network of the brightest minds, Urbis consists of practice experts, working collaboratively to deliver fresh thinking and independent advice and guidance – all backed up by real, evidence-based solutions. Working across the areas of planning, design, policy, heritage, valuations, transactions, economics and research, the expert team at Urbis connect their clients in the public and private sectors to a better outcome, every time. New Brisbane Apartment Statistics: Inner Brisbane skyline lights up as apartments settle 2017-12-13T19:01:00Z new-brisbane-apartment-statistics-inner-brisbane-skyline-lights-up-as-apartments-settle The Brisbane new apartment market recorded 300 sales in the September 2017 quarter, in line with the previous two quarters’ results of 302 and 311 sales, according to new research by leading property consultants, Urbis. After last quarter’s record high weighted average sale price, this quarter the weighted average sale price decreased by $80,896, registering $644,667. This decrease was driven by a higher proportion of one and two-bedroom apartments transacting across Inner Brisbane, compared to more premium price-pointed stock selling in the previous quarter. At a product level, most product types registered a weighted average sale price decrease from the previous quarter. At a precinct level, the CBD and Inner South precincts were the only two precincts to register a weighted average sale price decrease. Looking at future supply, there were only 672 new apartments which reached development approval status in the quarter, the lowest number recorded in the Urbis Apartment Essentials. Paul Riga, Director Property Economics and Research, said, “Between 2014 and 2016, it was normal to see over 2,000 units reach approval status per quarter, and at the height of the cycle in 2014 and 2015, this number peaked at over 5,000 apartments. “We are now in the settlement phase of the cycle, and lower levels of new apartment demand are fast driving a slow-down in the addition of any further future supply.” There were 3,382 apartments across Inner Brisbane which commenced settlement this quarter, with over 50% of these in the Inner North precinct. Mr Riga noted that of these 3,382 apartments, 47 per cent belonged to sold out projects, with surveyed projects under construction indicating that 13 per cent of product remained unsold. Looking at the bigger picture, in 2016, over 7,000 apartments reached settlement, whereas in 2017 close to 6,700 apartments are expected to settle. A number of projects saw slippage in the estimated completion period, with 2018 now expecting to see a further 7,100 apartments reach settlement. “We are really starting to notice a change in how we live in Brisbane, the cranes are coming down and more and more lights are turning on, and the effect of these new residents is continuing to re-generate both new and established precincts.” said Mr Riga. The traditional two-bedroom two-bathroom apartment market made up the majority of sales this quarter, with 50 per cent of total sales, similar to the 51 per cent achieved in the previous quarter. The level of one-bedroom and three-bedroom-plus sales was also similar to the previous quarter. “What our research is telling us is that even in current market conditions apartments are still selling. Established local developers with a reputation for quality product and strong networks are achieving great results. For the rest of the market, it is certainly harder than it was 18 months ago but sales continue to tick over quarter after quarter. The coming quarters will continue to see limited new project launches, with only a handful mooted to launch over the next six months. “The lack of new launches, combined with competition from built product that hasn’t been able to settle, suggests we’ll see sales numbers maintain at the current pace.” said Mr Riga. Urbis Brisbane Apartment Essentials Q3 2017 Snapshot The Brisbane Apartment Essentials Report found: 300 sales were recorded in the September 2017 quarter, a slight decrease of 3% in sales from the previous quarter which recorded 311 sales. The weighted average sales price for the September 2017 quarter was $644,667, a $80,896 decrease compared to the record June 2017 quarter. This is the lowest weighted average sale price recorded in 2017. The decrease was driven by entry level one and two bedroom apartments transacting across Inner Brisbane, compared to more premium stock in the previous quarter. Sales by product type did not change much from the previous quarter. Two-bedroom two-bathroom product made up the majority of sales at 50% of total sales, similiar to 51% in the previous quarter. Three-bedroom plus product made up only 11% of sales, and one-bedroom product made up 31% of total sales. Only two new projects yielding 342 apartments launched this quarter, compared to five new projects yielding 744 apartments in the previous quarter. Interstate investor buyers dominated the market with 35% of transactions, followed by foreign investor buyers with 28% of transactions. Owner occupier buyers made up 21% of purchases. The Inner East had the highest percentage of Interstate Investor sales, driven by the launch of a new project. ENDS For media enquiries contact: Rebecca Parry, DEC PR Ph: 02 8014 5033 E: urbis@decpr.com.au About Urbis Urbis is a market-leading firm with the goal of shaping the cities and communities of Australia for a better future. Drawing together a network of the brightest minds, Urbis consists of practice experts, working collaboratively to deliver fresh thinking and independent advice and guidance – all backed up by real, evidence-based solutions.Working across the areas of planning, design, policy, heritage, valuations, transactions, economics and research, the expert team at Urbis connect their clients in the public and private sectors to a better outcome, every time. New VIC Apartment Statistics: Flood fears pass as Melbourne apartment pipeline dries up 2017-12-13T19:00:00Z new-vic-apartment-statistics-flood-fears-pass-as-melbourne-apartment-pipeline-dries-up Urbis’ Apartment Essentials report for the September quarter 2017 reveals that while most of the current inventory is progressing well to construction, the pace and volume of new supply is slowing down. As prices hold and even increase, policy makers are left to ponder what will happen if future supply volume continues to fall back. Urbis’ assessment of Melbourne’s off the plan apartment market is based on sales from 49 off the plan projects in the September 2017 quarter comprising a total dwelling stock of 10,350 apartments, as well as monitoring the status of almost 400 projects. Of the 291 sales recorded, 45% were in the Inner Melbourne area, while 55% were recorded in Melbourne’s middle ring. As predicted, there was a drop in sales activity in this quarter for two key reasons: Firstly, a greater share of projects have now sold the majority of their stock - Of the 49 surveyed projects across Inner and Middle Melbourne, 71% of projects have sold more than 70% of their available product. Of these, four projects yielding 291 apartments sold out their last remaining stock in the September 2017 quarter. Secondly, as we predicted earlier in the year, some activity was brought forward to the June quarter to beat the stamp duty changes coming into effect on July 1, with the anticipated softening of investor activity in the September quarter. Given the changing conditions there were fewer projects brought to market. Five new projects amounting to 1,119 apartments launched in Inner Melbourne this quarter, compared to nine new projects amounting to 1,700 units in the previous quarter. While less than 50% of active projects had commenced construction at the close of the quarter, those that are well progressed through presales will soon move to boost construction volumes in the short to medium term. However, this looks to be offset by a diminishing supply pipeline from both a project launch and a development approval perspective. In Inner Melbourne, Urbis assessed 131 sales from 32 projects in the quarter. After a surge in one-bedroom apartments in the June quarter, the market preference for two-bedroom two-bathroom apartments returned, boosting the weighted average sale price by $82,000 to $737,000 in this quarter. Some product differences were apparent across different precincts, with one-bedroom apartments the most popular product in the Central and Inner West Precincts, two-bedroom one-bathroom apartments in the Inner North Precinct and two-bedroom two-bathroom apartments in the Inner East and Inner South. In Inner Melbourne at a product level, prices remained similar to the previous quarter, however several expensive premium product sales helped to lift the overall weighted average sale price. Three of the six Inner Melbourne precincts, the Central, Inner North and Inner West, registered a weighted average sale price increase in the quarter. Combined, these three precincts made up 73% of total Inner Melbourne sales – which further helped boost the overall weighted average sale price. In Melbourne’s middle-ring, the weighted average sale price remained consistent with the previous quarter at $582,000. Two-bedroom, two-bathroom product was also the most popular choice in the middle-ring, accounting for 51% of total sales. Urbis Melbourne Apartment Essentials Q3 2017 Snapshot The Melbourne Apartment Essentials Report found: Urbis assessed 49 off the plan projects comprising a total dwelling stock of 10,350 apartments By the end of the quarter 71% of projects had sold more than 70% of stock Urbis recorded 291 off the plan sales in the September 2017 quarter. Of these, 45% were in the Inner Melbourne area, while 55% were recorded in Melbourne’s middle ring. Once again, the majority of sales were in the middle ring. Within Inner Melbourne, 33% of sales were recorded in the Central Precinct, followed by the Inner North (28% sales), Inner East (24% of sales), Inner West (11% sales) and Inner South (4% sales). The weighted average sales price for the September 2017 quarter was $737,000 for the Inner Melbourne precincts, a $82,000 increase compared to the June 2017 quarter. This increase was driven by more two-bedroom apartments transacting and premium product sales helping to lift the overall weighted average sale price. Two-bedroom, two-bathroom product accounted for 40% of total sales across Inner and Middle Melbourne, and 27% of total sales in Inner Melbourne. One-bedroom apartments across Inner and Middle Melbourne accounted for 37% of total sales, and were split evenly between those with and those without a car park. In Melbourne’s middle-ring, the weighted average sale price remained steady, decreasing by $1,390 to sit at $582,391. Five new projects amounting to 1,119 apartments launched in Inner Melbourne this quarter, compared to nine new projects amounting to 1,700 units in the previous quarter. Only one new development yielding 261 apartments is expected to launch in the last quarter of 2017, with a steadier flow of project releases anticipated in 2018. ENDS For media enquiries contact: Rebecca Parry, DEC PR Ph: 02 8014 5033 E: urbis@decpr.com.au About Urbis Urbis is a market-leading firm with the goal of shaping the cities and communities of Australia for a better future. Drawing together a network of the brightest minds, Urbis consists of practice experts, working collaboratively to deliver fresh thinking and independent advice and guidance – all backed up by real, evidence-based solutions. Working across the areas of planning, design, policy, heritage, valuations, transactions, economics and research, the expert team at Urbis connect their clients in the public and private sectors to a better outcome, every time. New Gold Coast Apartment Statistics: Sold signs aplenty, but fewer new projects on the Gold Coast 2017-12-13T19:00:00Z new-gold-coast-apartment-statistics-sold-signs-aplenty-but-fewer-new-projects-on-the-gold-coast The Gold Coast new apartment market recorded 153 unconditional sales in the September 2017 quarter, according to the latest research by property consultants Urbis. Though a decline on the previous quarter’s sales, fewer active projects were selling. Only 46 new apartment developments were monitored during September quarter, compared to 62 at the same time last year. The Gold Coast weighted average sale price across the four precincts increased by $48,381, to register $676,307 in Q3 2017. This is the highest recorded average price since 2014. This increase was driven by more expensive two-bedroom apartment transactions. The weighted average sale price of this product increased by over $100,000 this quarter. This product price increase was most significant in the Gold Coast Central Precinct, which had a higher level of beach front developments selling. At a precinct level, the Coastal Fringe Precinct registered the greatest increase in weighted average sale price, rising by $123,182 in Q3 2017. However, it was still the most affordable precinct with a weighted average sale price of $592,241. The Southern Beaches Precinct registered a $226,471 decrease in weighted average sale price this quarter, as a new project launch brought affordable stock to the traditionally more high-end apartment market. Given that 63 per cent of sales in the quarter were owner occupier sales, there was a lean towards multi-bedroom apartments. Two-bedroom, two-bathroom apartments made up 69 per cent of total Gold Coast sales this quarter. Three-bedroom, two-bathroom apartments were the next highest selling product type making up 17 per cent of total sales. Urbis Senior Consultant, Lynda Campbell, said, “The Gold Coast apartment market’s level of supply remained stable, with 1,170 apartments for sale at the end of September, lower than the two year quarterly average of 1,325. Additionally, to date 15 projects have sold out during 2017. Only three projects yielding 298 apartments launched on the Gold Coast this quarter, further contributing to fewer sales.” The December 2017 quarter is expected to record an increase in sales with several pending projects launching to the market. “New developments which launched in October and November on the Gold Coast have already achieved strong presales. I expect to see the number of sales increase next quarter, with the festive season and the lead up to the Gold Coast Commonwealth Games being quite active for property developers.” said Ms Campbell. Urbis Gold Coast Apartment Essentials Q3 2017 snapshot: 153 sales recorded in the September 2017 quarter, with 69 per cent of sales being two-bedroom, two-bathroom product. Weighted average sale price recorded at $676,307, an increase of $48,381, and the highest recorded price since 2014. The Gold Coast Central Precinct recorded the highest quarterly sales rate across the four Gold Coast precincts, with 61 sales during the September 2017 quarter, accounting for 40 per cent of total sales. The Coastal Fringe Precinct recorded 58 sales during the September 2017 quarter, followed by Southern Beaches (34). Supply remains stable with 1,170 apartments for sale at end of September, lower than the two year average of 1,325. *Coastal Fringe suburbs include Arundel, Parkwood, Molendinar, Ashmore, Benowa, Bundall, Carrara, Robina, Clear Island Waters, Merrimac and Varsity Lakes. *North Shore suburbs include Biggera Waters, Coombabah, Helensvale, Hollywell, Hope Island, Paradise Point and Runaway Bay. *Gold Coast Central suburbs include Labrador, Southport, Main Beach, Surfers Paradise and Broadbeach and Broadbeach Waters. *Southern Beaches suburbs include Bilinga, Burleigh Heads, Burleigh Waters, Casuarina, Coolangatta, Currumbin, Kingscliff, Kirra, Mermaid Beach, Mermaid Waters, Miami, Palm Beach, Tugun and Tweed Heads. ENDS For media enquiries contact: Rebecca Parry, DEC PR Ph: 02 8014 5033 E: urbis@decpr.com.au About Urbis Urbis is a market-leading firm with the goal of shaping the cities and communities of Australia for a better future. Drawing together a network of the brightest minds, Urbis consists of practice experts, working collaboratively to deliver fresh thinking and independent advice and guidance – all backed up by real, evidence-based solutions. Working across the areas of planning, design, policy, heritage, valuations, transactions, economics and research, the expert team at Urbis connect their clients in the public and private sectors to a better outcome, every time. New Apartment Statistics: Room for growth in Sydney new apartment market 2017-12-13T19:00:00Z new-apartment-statistics-room-for-growth-in-sydney-new-apartment-market Sydney’s new apartment market recorded 381 sales from a sample of 19% of the market in the September 2017 quarter, according to new research released today by leading property consultants, Urbis. The Inner West Precinct recorded the majority of sales at 27% of total sales in the quarter, closely followed by the Eastern Suburbs (24%) and Parramatta (16%). Though fewer sales were recorded with 81% of surveyed apartments now sold, the weighted average sale price increased by $46,677 over the previous quarter, reaching $1,205,774. At a product level, the weighted average sale price decreased across one-bedroom, one-car and two-bedroom, two-bathroom apartments, despite these being the two best-selling product types. However, with 18 of the 30 surveyed projects registering a total weighted average sale price of over $1 million, including the top two selling developments, the overall increase makes sense. Urbis Associate Director of Property Economics and Research, Alex Stuart, said, “Two-bedroom, two-bathroom product was back in the top selling position this quarter, however at only 32% of total sales the popularity of this product type differs from other markets. “The Gold Coast, Brisbane and Perth markets generally sit between 50% and 60% for the proportion of two-bedroom, two-bathroom apartments sold. However, in Sydney and Melbourne where it is a lot harder to get a foot on the property ladder, this is a lot more spread across other, mostly smaller, product types.” One bedroom, one car apartments were the next best seller making up 24% of sales. Sixteen projects containing 2,157 apartments launched in the quarter, compared to thirteen projects containing 3,232 apartments in the previous quarter. Looking ahead, there are 12 projects containing 3,902 new apartments which are expected to launch in the next 6 months. Apartment approvals dropped to 2,433 apartments in the Q3 2017, the lowest number of approvals since mid-2014. However, with only approximately 27,000 apartments currently in development approval and application status, there is still plenty of room for growth. Mr Stuart noted, “The Sydney apartment market has fewer apartments in future supply compared to the much smaller Brisbane apartment market. In Sydney, developments are coming to the market at a much quicker rate than the rest of the nation, and if developers are able to source affordable land, there is opportunity to make a profit.” “Looking at sales and supply levels, apartments in Sydney are still attractive to buyers and developers. Owner occupiers and local investors made up 86% of total transactions this quarter, so we can see that in current conditions the market is very much a local one. The challenge is keeping these apartments attractive and affordable for both developers and buyers.” concluded Mr Stuart. Urbis Sydney Apartment Essentials Q3 2017 Snapshot The Sydney Apartment Essentials Report found: 381 sales, from a sample of 30 surveys, were recorded in the September 2017 quarter. The Inner West Precinct recorded 27% of total sales, followed by Eastern Suburbs (24%) and Parramatta (16%). The weighted average sales price for the September 2017 quarter was $1,205,774 an increase of $46,677 over the previous quarter, and the highest weighted average sale price recorded for the Sydney Apartment Essentials. Two-bedroom, two-bathroom apartments were the most popular product type, making up 32% of total sales. One-bedroom, one-car apartments made up 24% of total transactions. NSW investor sales were once again the most popular transaction, accounting for 51% of total sales. Owner occupier sales accounted for 35% of sales. There were sixteen new apartment launches this quarter, equating to 2,157 apartments. ENDS For media enquiries contact: Rebecca Parry, DEC PR Ph: 02 8014 5033 E: urbis@decpr.com.au About Urbis Urbis is a market-leading firm with the goal of shaping the cities and communities of Australia for a better future. Drawing together a network of the brightest minds, Urbis consists of practice experts, working collaboratively to deliver fresh thinking and independent advice and guidance – all backed up by real, evidence-based solutions. Working across the areas of planning, design, policy, heritage, valuations, transactions, economics and research, the expert team at Urbis connect their clients in the public and private sectors to a better outcome, every time.