The top advised weekend Melbourne auction sale was when a boutique townhouse development site sold for $3.4m at Chadstone.&nbsp;

The double block Fitzroy Grove offering had come with a $2.85m to $3.05m price guide from Jellis Craig Monash agent Stephen Huang.&nbsp;

The 1,920 sqm site came with permits for six townhouses with potential city views.&nbsp;

Recent single townhouse sales have been at over $1.1 million, showing price growth since completion.

The weekend site offering had been consolidated after 4 Fitzroy Grove had been bought for $1,292,000 in 2019.

2 Fitzroy Grove - which is the larger of the blocks at 1034sqm - had been bought at $1,558,000 in 2019.

The address had been marketed as the perfect foundation for an innovative multiple townhouse site, capitalising on potential City views from an upper level (STCA).&nbsp;

It is located, walking distance to Jordanville train station, Jordan Reserve, Riversdale Golf Club and minutes to Chadstone shopping centre and Holmesglen TAFE.

Chadstone, known as the fashion capital because of the famed shopping centre, returned to having a $1 million median for houses early in the pandemic.

Recent townhouse sales included a four bedroom, two bathroom townhouse at 3/19 Atkinson Street which fetched $1,187,500 at January auction through Ray White agent Bill Gianidis.

It was a 2019-built executive residence in a coveted development having first sold at $950,000 in 2018.

There were three townhouses offered off the plan in the project.

The marketing noted there is a generous living area which can also be used as the perfect home office.&nbsp;

&quot;There is an abundance of good schools including Malvern Valley Primary, Salesian College and Huntingtower nearby, nature reserves and a world of dining destinations,&quot; it noted.

A popular boutique townhouse project was completed in 2019 at 7 Churchill Avenue, Chadstone by Auspacific Property with its prices starting from $1,060,000. The seven townhouse complex has been tightly held since completion.

Major developers have sought larger scarce infill sites in the city&#39;s leafy east and south-east, including Frasers Property Australia with a mix of apartments and townhouses at the Brickworks site in Burwood and Mirvac with its Tullamore project on the site of the former Eastern Golf Club in Doncaster.

In 2020 developer Golden Age, led by Jeff Xu, bought a 1.65-hectare Glen Waverley residential site close to Chadstone Shopping Centre, with plans for 100 townhouses.

The Golden Age site at 583 Ferntree Gully Road has yet to hit the market.

The 1,920 sqm site came with permits for six townhouses with potential city views. 

jchancellor-FAypfDUnLy

Chadstone townhouse site tops Melbourne weekend auction results

Brisbane median unit prices have recovered from a dip in 2020, according to PRD Research.

With all rings recording positive price growth in 2021, the inner median unit price sits at $530,000. The middle is $467,000. The outer meidan sits at $397,000.

&quot;The outer-ring provides affordability for first home buyers and is also the fastest growing,&quot; the report noted.

&quot;Buyers must be quick to secure their property,&quot; it added.

The 2017-2021 price growth was 6% in the inner ring (+$30,001).

[smartcode_project:default project_id=102309 project_image_fid=163974]

The middle ring growth was 3.1% (+$14,000).

The outer ring growth was 6.4% (+$24,000).

The Brisbane market update report divides the city into the inner-ring (0-5km from the city), middle-ring (5-10km from the city), and outer-ring (10-20km from the city).

Units in all three Brisbane rings are selling for higher than the first list asking price, the report advised.

[smartcode_project:default project_id=31674 project_image_fid=175289]

&quot;There is a revival in the unit market after a period of price discounting in mid-2020.&quot;

Units in the outer-ring recorded the highest average premium of 2.7% while inner-ring units recorded the smallest premium.&nbsp;

The other indicator of an improved conditions for sellers is units are selling quicker, especially in the middle and outer rings as demand starts to shift due to an increase in people working from home.

The days to sell a unit continued to decline over the past 18 months to 46 days in the inner ring, 39 days in the middle and outer.&nbsp;

&quot;The Brisbane unit market is moving faster again, allowing for new stock to come to the market,&quot; it advised.

Off the plan projects in the inner ring include Bide in the heart of Newstead, 3 km from Brisbane CBD.

[smartcode_project:default project_id=102309 project_image_fid=163973]

Its one bedroom offerings sold out quickly in the 89 apartment project by Dibcorp Properties which was launched last year.

Elsewhere in the inner ring Mosaic will be launching its latest project in Toowong, which will be Mosaic&#39;s 11th project in six years in the inner-west.

Its prior projects have included Kensington by Mosaic, positioned directly across from the Toowong Memorial Park featuring 63, 2- and 3- apartments and a penthouse over nine levels.

[smartcode_project:default project_id=93863 project_image_fid=160903]

In the outer ring seaside suburb of Manly, 191 Stratton is a collection of contemporary one, two and three-bedroom residences by the developer, DeMartini Fletcher.

It is one block from the main waterfront.

[smartcode_project:default project_id=31674 project_image_fid=175290]

Designed by Ellivo Architects, the development embraces open-plan living and dining and landscaped balconies.

Set in the outer ring seaside suburb of Manly, 191 Stratton is a collection of contemporary one, two and three-bedroom residences

Brisbane apartment market selling faster with prices on the rise: PRD Research

There are signs of recovery in Melbourne&#39;s inner-ring apartment market as a shift back to living in the city is becoming evident, according to PRD Research.

Investor confidence will be restored as rental demand is starting to increase in the inner-ring, and will be further pushed up with the opening of international borders, it noted.

Inner-ring vacancy rates are showing signs of improvement, declining by 3.4% annually.&nbsp;

The Q4 2021 median rental price in the inner ring is $410 per week, up $10, equal to the middle ring&#39;s $410 per week and slightly higher than the outer ring at $400 per week.

Three bedroom units in the inner-ring fetched the highest rent at $695 a week&nbsp;while 1 bedroom units in the inner and middle rings are the most affordable at $320 a week.

The report noted the inner-ring median was $586,000, it was $665,000 in the middle suburbs and $658,000 in the outer ring.

The report calculated the &nbsp;2017-2021 price growth in the inner ring was 3.2% (+$18,000).

The middle ring growth was 12.7% (+$75,000) with the growth highest in the outer ring - up 14.4% (+$83,000).

The time to sell the establishment apartment has declined in the past 12 months which shows signs of recovery with little difference in average days to sell between all rings at around 50 days.

The Melbourne market update report divides the city into the inner-ring (0-5km from the city), middle-ring (5-10km from the city) and outer-ring (10-20km from the city).

It noted middle and outer-ring unit prices continue to outpace that of the inner-ring, with the middle-ring now the most expensive.

But inner-ring unit median prices are starting to see higher growth &quot;which is great news for vendors looking to sell in this current market,&quot; it said.

The inner ring off the plan inner city offerings include the Carlton project, Encompass.

[smartcode_project:default project_id=5116 project_image_fid=188280].

The pricing at the 8 Elgin Street, Carlton project starts from $422,500.

There will be 115 residences in the project which has an estimated mid-2023 completion date.

Encompass is the latest residential project from Frasers Property and Citta Property Group.

[smartcode_project:default project_id=5116 project_image_fid=188286]

Neometro has seen recent sales success at Nine Wilson Ave, their final apartment project in Brunswick&#39;s Jewell Station Village.

Over 35 per cent of the 73 apartments on offer have been snapped up over the traditionally quiet Christmas holiday period.

[smartcode_project:default project_id=93019 project_image_fid=183948]

For a limited time Lendlease is offering no stamp duty for eligible buyers at Melbourne Quarter&rsquo;s East tower.

One-bedroom apartments are priced from $446,000, with two-bedroom apartments starting from $607,000.

[smartcode_project:default project_id=3459 project_image_fid=179455]

Encompass is the latest residential project from Frasers Property and Citta Property Group

Melbourne inner ring apartment market in recovery: PRD Research

Suttons City the longtime Rosebery dealership yard has been sold for an undisclosed sum apartment development.

The 4.45 ha site will close its doors on 30 June 2022 after opening 28 years ago, with the decision prompted by developer enthusiasm and rising land tax.

The annual land tax bills has been estimated to be close to $5 million making the property "unviable for new-car sales," according to the motoring website, Drive.

The identity of the property developer was not disclosed, however Drive noted the location is surrounded by Meriton apartments, it added.

The Australian has reported Meriton paid $300m plus.

Urban understands there was a put and call option taken last November.

The car yard is one of Australia’s largest dealership sites having showrooms for 12 major automotive brands.

Suttons City comes with 92 workshop bays on the site, servicing up to 350 cars daily. 

It opened as a standalone Holden dealership after the Suttons bought the land from GMH.

The Sutton family have operated car dealerships since 1943.

The dealership site will close its doors on 30 June 2022 

Suttons Holden dealership Rosebery site sold for Meriton apartment redevelopment

The 19-storey Miami beachfront tower sought by DD Living has been approved by Gold Coast council.

The $105-million beachfront apartment tower has been recently marketed as the Alba North Burleigh at the 264 The Esplanade site in anticipation of the approval.

The Bureau Proberts-designed project has apartments priced from $2.25 million through David Devine&#39;s DD Living.

The 30-unit apartment tower on The Esplanade had been scaled down from 22 storeys since its initial application in 2019.&nbsp;

The building height still sits above the suburb&rsquo;s level under the City Plan with its 17th storey aligning with the 53 metre code assessable building height.&nbsp;

[smartcode_project:default project_id=100278 project_image_fid=189549]

There were 255 objections from owners in the nearby Mariner Shores apartment complex, according to the Gold Coast Bulletin.

The slender tower with a typical 505sqm floor plan will &shy;replace the 1960s three-storey walk-up on the 1012sqm holding.

The council report said the proposal was 59.6m in height.&nbsp;

The development is located within the Urban neighbourhood which, under limited circumstances, allows for an increase in building height of up to 50 per cent (in this instance, 79.5m providing the relevant provisions are satisfied).

&quot;The proposed development is a well-designed building that complements the existing and emerging character of the area.&nbsp;

[smartcode_project:default project_id=100278 project_image_fid=189549]

&quot;The proposed built form of the development has been designed to achieve a well maintained interface to the adjacent properties.

&quot;The building has been treated with high quality materials to enhance the visual appearance of the building, along with a varying colour pallet.&nbsp;

&quot;Planters are incorporated within the building articulation at all levels of the development to provide visual interest and to soften the built form.&nbsp;

&quot;After a detailed assessment, it has been determined the proposed development is able to satisfy the provisions warranting an increase in building height of 6.6m above the mapped building height of 53m.&nbsp;

&quot;The cumulative consideration of built form setbacks, site cover, landscaping elements and architectural design confirm the developments ability to satisfy the additional height considered within the 50 per cent uplift provisions of the Urban neighbourhoods element.&quot; the report from council advised.

[smartcode_project:default project_id=100278 project_image_fid=189548]

The Melbourne developer Caydon Property Group plan to build a slender 18-storey apartment tower on an adjacent site

The apartment developer intends to have 51 apartments on its 1012sq m site at 266 The Esplanade at Miami, opposite North Burleigh Beach.

It is currently a 12-unit complex.

There are numerous mid-rise developments including Outrigger Resort in the precinct.

All councillors at the council meeting voted to accept the recommendation for approval by officers 

David Devine's 19 storey Alba, Gold Coast beachfront apartment block approved

Stockland has a pipeline of 81,000 housing lots, the ASX listed company advised its shareholders this week.

It advised its pipeline was focussed on "under supplied markets across the eastern seaboard."

The pipeline has 33,600 lots in Queensland, including 16,400 at Aura, at Caloundra on the Sunshine Coast.

There are 25,800 lots in Victoria including 9,500 at Cloverton, at Kalkallo in Melbourne's north.

NSW has 7,300 lots including 2,400 at The Gables, at Box Hill in the Hills Shire.

WA has 14,800 lots including 2,600 at Sienna Wood, at semi-rural Hilbert south of Perth.

“Enquiries remain well above long run averages, with market supply unable to keep pace with strong demand," Stockland CEO, Communities, Andrew Whitson said.

Its half year net sales of 3,815 lots, was in line with sales volumes in 1H21 that had been elevated by State and Federal Government stimulus measures, such as HomeBuilder, that have subsequently been withdrawn, he noted.

Settlement volumes totalled 2,329 lots over the half (1H21: 3,101 lots), with the decline versus the previous corresponding period driven by project staging.

There is still a significant under supply in the market, its chief executive Taran Gupta said.

Gupta told Bloomberg that home prices already showed signs of moderating.

He said Stockland would be bring "smaller more affordable lots" into the sales cycle.

"But we still seeing demand continuing," he said as Stockland sold at the affordable end of the market.

There is still a significant under supply in the market, its chief executive Taran Gupta said

Stockland see housing demand remaining elevated while prices moderate

Sydney developers are building office and residential towers as the North Sydney CBD prepares for the opening of its new Metro station

The new wave in development is set to pivot the precinct into a key apartment hub for the first time.

Aqualand&rsquo;s $1bn development, Aura has seen strong sales since its launch last December.

Leveraging off the success of nearby Blue at Milsons Point, Aqualand is building a 386-apartment tower on its 168 Walker St site, located near North Sydney Oval.

It&#39;s a Woods Bagot design, with interiors by Richards Stanisich.

[smartcode_project:default project_id=30959 project_image_fid=181044]

Its three bedroom apartments were the most popular among buyers, starting at $3 million with owner occupiers and a sprinkling of investors.

Melbourne-based Cbus Property is advancing its project plans, having partnered with Neil Werrett&rsquo;s Galileo on East Walker St, North Sydney.

The 4000sq m amalgamation of seven residential sites is located within North Sydney Council&rsquo;s Ward Street Precinct, a masterplan initiative intended to stimulate the northern end of North Sydney&rsquo;s CBD.

[smartcode_project:default project_id=30959 project_image_fid=181049]

The site at 173-179 Walker Street and 11-17 Hampden Street, North Sydney is among the opportunities emerging from the decision to proceed with Victoria Cross Metro station, which opens in 2024.

Cbus plan to develop high-end owner-occupier residences with views across the harbour.

FJMT Studio has been appointed to design the project which pending approval, will see demolition and excavation next year.

[smartcode_project:default project_id=30959 project_image_fid=181048]

Its construction is anticipated to commence in 2023 with completion in 2026.

Cbus and Galileo purchased the site for around $150 million from property developer Avenor, which had spent several years amalgamating the site.

The site include five residential flat buildings each of three to four storeys and two single dwelling houses.

The Avenor development application indicated increased residential densities would increase the demand for retail and commercial services, increasing the economic viability and vibrancy of North Sydney. The planning proposal was initially assessed by the Sydney North Planning Panel in 2017/2018 and deemed by the panel to have strategic merit.

Developers took a look at the 167-room The Rydges North Sydney Hotel, which was listed for sale at 54 McLaren St, but yet to find a buyer.

The hotel occupies a 2549sq m freehold site in North Sydney.

The Sydney Metro rail development will see the commute from Victoria Cross Station in North Sydney to Barangaroo in Sydney&rsquo;s CBD just three minutes.

The fresh wave of office projects in North Sydney has seen Sydney&#39;s fast-growing second CBD set accommodate a further 20,000 workers by 2036.

Heavy government and private investment in North Sydney is planned with 19 key projects that will see over 17,000sqm of new parks and plazas, creating a new network of laneways, and improving pedestrian safety and amenity.

The initial $3.2 billion wave of office development included Suntech REIT&rsquo;s 177 Pacific Highway, Winten Property Group&rsquo;s 1 Denison Street and Dexus&rsquo; 100 Mount Street towers.

Now a further $2.9 billion of projects include Lendlease&rsquo;s Victoria Cross tower and Billbergia&rsquo;s office-hotel development at 88 Walker.

It has been noted strata dwellings within the North Sydney LGA provide a more affordable option for its residents and key workers.&nbsp;

The Avenor application noted the median strata price was 109% lower than the median price of non-strata dwellings in the LGA.

The Department of Planning and Environment (DP&amp;E) project the need for an additional 11,450 dwelling for the LGA over the next 20 years from 2016, equating to a target of 573 new dwellings per annum in the LGA.

Of this growth in households, 51% or 5,350 households is attributed to lone person households, while 23% and 12% is attributed to couples without dependents and couples without dependents, respectively.

Aqualand’s $1bn development, Aura has seen strong sales since its launch last year


North Sydney's CBD renewal will see pivot to apartments as Metro station nears

Mortgage rates will rise gradually over the next couple of years, according to Pete Wargent, co-founder of BuyersBuyers.

But the impact on the housing market won’t be too dramatic, Wargent said.
 
Doron Peleg, co-founder and CEO of BuyersBuyers, said financial markets are pricing interest rate hikes aggressively, "but it’s unlikely we’ll see a significant move in the cash rate any time soon."
 
“Even if the cash rate does increase in time, we think that any increases will be delivered gradually, and in a controlled manner,” Pelog said. 

“The Reserve Bank may not be in too much a rush to hike rates, though, given that annual wages growth is only 2.2 per cent, and expectations for pay rises are still anchored at low levels.

“Fiscal support will also be wound back over the next year or two, and it’s not yet clear how the economy will track when this very large fiscal support is withdrawn. 

“In any case, much of the inflation relates to supply chain issues in 2021, which will be mostly resolved later in 2022, particularly for food and new dwelling costs, so hiking interest rates significantly while real wages are negative might not be desirable” Mr Peleg said.

Their commentary comes as economists including from the Commonwealth Bank, Westpac and AMP Capital expect an August rate rise.

AMP Capital's chief economist Shane Oliver says any earlier rate increase would bring forward the peak in property prices. HSBC chief economist for Australia and New Zealand, Paul Bloxham still expects the first rate rise to be in 2023, while forecasting single-digit house price growth in 2022, but no declines.

Wargent of BuyersBuyers said compared to some of the inflation readings coming out of Europe or the U.S. – and even New Zealand - "inflation is not exactly running out of control in Australia.
 
“In fact, inflation has largely been driven by food and new dwelling costs, where pressure will likely ease in 2022, and fuel costs, which are admittedly less predictable”.
 
He added commentators have sometimes overstated the impact of rising mortgage rates on the Australian housing market for four main reasons.

“Firstly, because inflation is exogenous to housing market modelling, estimates of the impact on housing prices should be based upon changes in real interest rates. 

"If inflation expectations are to move materially higher, then any related impact on housing prices would correspondingly be lessened. 

"Given Reserve Bank modelling was referenced in 2019 to isolate the impact of lower real rates, it doesn’t make sense to translate estimates across to forecasts today, given that the context is not the same”.
 
“Secondly, the response of prices in the housing market model is non-linear, so logically interest rate cuts should have had a far greater positive impact on sentiment as interest rates approached zero.”
 
“Thirdly, any impact on housing prices should be relative to your baseline forecasts. Thus, if forecasts were for housing prices to increase by, say, a few per cent per annum, then only relative to these forecasts would the impact on prices be seen as a result of rising mortgage rates.”
 
“And fourthly, any dramatic predictions of a crunch would need to assume no other change in macro variables, which is unrealistic. In reality, in our opinion, we should be expecting employment growth and population growth to come roaring back over the next couple of years, comfortably offsetting even a potential 1 per cent increase in interest rates”.
 
“And, as noted, we also expect hikes to the cash rate to be delivered in a considered and gradual manner, even if funding costs are rising.”
 
“We have consistently discussed many of these variables with our clients such as employment growth, the immigration reboot, fierce competition between lenders, low out-of-pocket expenses for property investors, and the ability of households to absorb higher repayments” Wargent said.
 
“We think mortgage rates will rise in 2022 and 2023, but the impact of this on the housing market has often been overstated.”
 


The Reserve Bank may not be in too much a rush to hike rates, Doron Peleg, co-founder and CEO of BuyersBuyers, said

Rising mortgage rates impact on the housing market overstated: BuyersBuyers  

National gross rental yields fell to 3.22% in December, down from September's 3.29% and the 3.71% a year ago.

The 2021 December quarter was a new record low as growth in dwelling values continues to outpace rental growth, according to CoreLogic. 

Over the fourth quarter, national dwelling values recorded a 3.9% rise, while rental values increased by 1.9%. 

Across the capital cities gross rental yields fell below 3% for the first time in October (2.99%), falling further to 2.96% in December. 

It was 3.42% this time last year. 

Across regional markets the yield sat at 4.15% in December 2021, down from 4.35% the previous quarter and 4.83% a year earlier.

"COVID restrictions such as international border closures, and disruption to employment across sectors such as tourism and hospitality, which have a relatively high proportion of renters, have played a role in compressed yields," CoreLogic Tim Lawless said. 

Sydney and Melbourne have the lowest yields of any capital city at 2.42% and 2.74% respectively while Darwin has the highest at 6.05%, followed by Perth (4.37%).

Brisbane recorded the largest quarterly decline falling to 3.66% in December, in part due to its 8.5% rise in values over the same period.

Brisbane was the strongest performing rental market amongst the capitals over the quarter, rising 2.3%, followed by Canberra and Hobart, both rising 2.1%. 

Despite recording the strongest annual rental growth (15.2%), the Darwin rental market was the worst performing over the quarter, with rents rising 0.6% over the three months to December.

Canberra remains the most expensive capital city rental market, with typical dwellings renting for $651 per week, followed by Sydney ($604p/w), Darwin ($561p/w), Hobart ($521p/w) and Brisbane ($507p/w). 

Adelaide remains Australia’s most affordable capital with a median dwelling rent of $447 per week, followed by Melbourne at $456 per week.

Melbourne’s rental growth trends shifted in December, as units recorded the strongest rental growth in the country, up 1.6%.

Lawless says Melbourne’s rents remain 5.5% below the record highs of July 2019, however any recent momentum in unit rental growth could represent a recovery trend, underpinned by affordability constraints.

“Brisbane’s rental market for houses has shown strength throughout the pandemic as demand outweighed supply, while Melbourne’s unit market has been weak through most of the pandemic to date due to low demand against relatively high vacancy rates,” Mr Lawless says.

“Melbourne’s unit market is now benefitting from higher demand as more domestic renters seek out affordable housing options in the unit sector. Demand for Melbourne unit rentals is likely to increase more sharply as foreign students and international visitors return.”




COVID restrictions such as international border closures have played a role in compressed yields

Rental yields hit record low as Melbourne apartment rentals see recovery: CoreLogic

The retail and office components of Sekisui House&rsquo;s $1.1billion masterplanned urban renewal development, West Village, in Brisbane has been sold.

The Singaporean sovereign wealth fund GIC has partnered with fund manager Centuria Capital in spending $202m for five buildings within the mixed-use precinct, 1km south of the Brisbane CBD.

It includes existing properties as well as buildings to be constructed on the former Peter&rsquo;s Ice Cream site.&nbsp;

[smartcode_project:default project_id=106960 project_image_fid=185877]

It includes a retail mall anchored by a Woolworths store, and Brisbane&rsquo;s first Harris Farm Markets.

Centuria head of retail Bruce McCully said the West End area was experiencing &ldquo;a renaissance&rdquo; that would further benefit from improved connectivity once the proposed new green bridges were completed, linking the area with Toowong to the west and St Lucia to the south.

West Village was a flagship project for the Japanese company which on completion will provide 1250 residences across eight &shy;residential buildings, 1900 carparks and 6500 sqm of public open space.

[smartcode_project:default project_id=106960 project_image_fid=185878]

Half the site will be open parkland and green laneways, which Sekisui House Australia managing director Hide Seguchi said accords with its &quot;satoyama design principles, which places enormous importance on generous green spaces around each development.&rdquo;&nbsp;

The first stage, Park &amp; Lexington apartment buildings were launched in 2017, with Arcadia the next residential release.

Sales are proceeding at Altura, a 22-storey apartment tower where more than 70 of the initial 147 apartments on offer sold on the first day on the market last year.

[smartcode_project:default project_id=106960 project_image_fid=170167]

It&#39;s been marketed as having a 99/100 walk score.

[smartcode_project_cta: project_id=106960]

West Village will provide 1250 residences across eight ­residential buildings

Jonathan Chancellor

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Jonathan Chancellor

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