Property developer Alta is planning to redevelop an office tower just off St Kilda Road, converting it into residential apartments.

Alta, which is being led by former Fridcorp co-owner Nigel Givoni, has paid around $27 million for the B-grade office asset on a 2,323 sqm site at 10 Queens Road, opposite Albert Park. They are planning a conversion to build to sell apartments.

During the campaign, there became a divergence between bids based on those looking to purchase for office use and those proposing residential redevelopment through adaptive reuse. That gap was over 30 per cent, Cushman &amp; Wakfield advised.&nbsp;

&nbsp;

Jozef Dickinson of Colliers Residential said “10 Queens Road is a prime example of a well-located but underutilised asset that can be repositioned to meet the evolving needs of the city.

"The St Kilda Road precinct, with its proximity to the CBD, Albert Park, and the new Anzac Metro Station underpins its higher and better use. Couple this with premium park and bay views, the site is well placed to support high-quality residential development.”

The site was bought from receivers for Taiwan-backed Everland Global. They had spent $59 million on the 19-level building in 2019 when they bought it from billionaire NBL owner and property developer Larry Kestelman.&nbsp;

Queens Road is where Mirvac is currently building <a href="https://www.apartments.com.au/new-apartments/the-albertine-by-mirvac-melbourne-31-queens-lane-melbourne-vic-3004">The Albertine,</a> just under 100 apartments that will complete in mid-2026.

The site was bought from receivers for Taiwan-backed Everland Global

Joel Robinson

Alta plots office to apartment conversion in St Kilda Road precinct

Rooftop pools are hard to come by in Melbourne.

While generally more of a trend in the Sunshine State due to the climate, Melbourne's gets plenty warm enough in Spring and Summer for the amenity that has been a little left behind in both the Victorian and New South Wales capital.

Projects by Crema decided to break the mould at its recently completed South Melbourne apartment development, The Eighth.

<a href="https://www.apartments.com.au/buildings/the-eighth-south-melbourne-22-kings-place-south-melbourne-vic-3205">The Eighth</a> is one of the least dense projects to be delivered in South Melbourne in years, with just 36 large-scale apartments across the 12-level building.

[smartcode_project:default project_id=5345 project_image_fid=269728]

It was about creating an inspiring space for residents to gather. Those who already call The Eighth home frequently head up to the roof, whether it's for a swim or for the bar and dining area, which offer sweeping views to both the Melbourne CBD skyline and Albert Park.

There's further amenity within the building, with an Italian eatery, serving from the early hours through to the mid afternoon, located conveniently on the ground level.

[smartcode_project:default project_id=5345 project_image_fid=269730]

Peter Kennon, the architect behind the building, described The Eighth as “a container for life”.

Kennon and Projects by Crema Founder Nicolas Crema bonded over their mutual frustration with buildings and residential developments that claimed to offer a superior lifestyle, but did not at their heart have an understanding of and appreciation for the way people really want to live, and that did not give residents the power to curate their own lifestyles.

They decided to create a place to live where people’s lives organically spilled over the edges of their private residences and into other areas of the building. And where spaces inspire feelings of belonging.

This shared vision has resulted in a building that is intuitive, easy living in its DNA. The thinking behind The Eighth and its design epitomises Kennon’s and Crema’s philosophy of lifestyle without compromise.

The building elevates everyday experiences and activities – like reading the paper or working in the downstairs café, meditating or exercising at lunch time, arriving home via a private lift at the end of the day, and catching up with family and friends at night by the rooftop pool – by centring the way people actually want to live now.

“To me, it’s about feeling comfortable in your own skin,” says Kennon.

“It’s the ability to craft a lifestyle and routine that enables you to spend time doing what you love and what makes you feel good. The Eighth works to the patterns of the people living in the building."

To cater for a variety of lifestyle far and above what spaces there are for residents, The Eighth also has a dedicated concierge service and on-site management to elevate the day-to-day experience.

[smartcode_project:default project_id=5345 project_image_fid=269726]

The apartments themselves have been crafted by interior design doyenne Miriam Fanning, whose focus tends to be more on luxury houses than apartment developments.&nbsp;

Her design studio, MIM Design, created the spaces with timeless materials, such as stone benchtops, cove lighting in bedrooms, stone baths in most apartments, and expansive glazing that draws in natural light while maintaining privacy.

[smartcode_project:default project_id=5345 project_image_fid=269730]

Located in South Melbourne, just one train stop from the CBD via the upcoming Anzac Station, The Eighth integrates private residences, co-working spaces, wellness facilities and hospitality offerings within a single, architecturally driven address.&nbsp;

&nbsp;

&nbsp;

There are only four apartments left to sell in the building. The generously-sized 128 sqm three-bed apartments start from just under $1.6 million.

[smartcode_project_cta:default project_id=5345]

Projects by Crema takes lifestyle elements sky high at The Eighth in South Melbourne

Recruitment industry boss Sarina Russo, who heads up&nbsp;one of Australia's largest education, training, and employment providers, is turning to residential apartment development.

An entity tied to Russo has filed plans for a skinny 36-level tower, on a <a href="https://www.urban.com.au/new-apartments/457-adelaide-street-brisbane-city-qld-4000">narrow 367 sqm site on Adelaide Street</a>.

There are just 20 apartments proposed, some full-floor, some multi-floors.

Designed by <a href="https://www.apartments.com.au/architects/nettletontribe">Nettletontribe</a>, the project would replace Jamison House, an existing five-storey office building.

<img alt="457 Adelaide Street, BRISBANE CITY" data-entity-type="file" data-entity-uuid="bd429ae2-a7c3-449b-89f3-7fb67e8c54c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Adelaide%20st%20front.png?VersionId=2iXa_91lFlbJsVJb15hjXzoAbs8jN5JQ" />

The architectural vision promotes “biophilic design, passive design, and open flowing spaces,” with interiors promising high-end finishes and abundant natural light, the documents submitted to the Brisbane City Council noted.

Each apartment has direct lift access, and most occupy entire or half floors, reinforcing the project’s high-end positioning. Generous private balconies face either Adelaide and Howard Streets.&nbsp;

According to the assessment report by Urbicus, “the building is well designed and articulated with varying setbacks, deep balconies, and variations in façade treatments and materials,” allowing it to integrate with its taller surroundings while minimising amenity impacts.

The uppermost levels will host communal amenities, including a rooftop pool, covered BBQ area, and multiple outdoor lounging zones, with additional resident facilities provided on Level 1 and a mezzanine.

Access to the site is split across its two frontages, with pedestrians entering from Adelaide Street while vehicle access is provided from Howard Street via a single 6.5-metre crossover.&nbsp;

Car parking is facilitated through a car stacker system across three basement levels, accommodating 24 spaces, 20 for residents and 4 for visitors, as well as bicycle storage.&nbsp;

<img alt="457 Adelaide Street, BRISBANE CITY" data-entity-type="file" data-entity-uuid="3fe617d7-7f72-4ee6-ab3c-90a11d123248" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Adelaide%20st.png?VersionId=s4cGqip_A3okoUh_7xfzRJ2Biwdc7gOd" />

The project is a rare one for the Brisbane CBD, which hasn't had a new tower launch in years.

Meriton has <a href="https://www.apartments.com.au/news/qld/meriton-approved-for-brisbane-skyscrapers">approval for its two-tower development on Alice Street</a>, but they are yet to start marketing the 753 apartments.

First Look: Sarina Russo plots skinny Brisbane CBD apartment tower

Legacy Property is taking its new&nbsp;<a href="https://www.apartments.com.au/developments/north-sydney-nsw-2060">North Sydney</a> development to the NSW Government.

They've submitted a State Significant Development proposal for a mixed-use building with 35 apartments, 10 of which will be affordable, above a two-storey commercial podium at <a href="https://www.apartments.com.au/new-apartments/1-church-street-north-sydney-nsw-2060">1 Church Lane</a>.

The new development comprise 35 apartments, 10 of which are affordable, above a two-storey commercial podium. The plan includes the retention and adaptive reuse of the heritage-listed shopfront at 265 Pacific Highway, integrating it into the ground-level frontage.

According to the Scoping Report prepared by Planning Lab, the design “responds to the broader priority and urgent demand for affordable housing” while incorporating a “tower above consisting of 35 residential apartments and communal roof garden”.&nbsp;

Positioned within 300 metres of Victoria Cross Metro Station, the site qualifies for Housing SEPP incentives, including a 30 per cent bonus to height and floor space ratio, which the proposal seeks to utilise.

Designed by <a href="https://www.apartments.com.au/architects/nettletontribe">Nettletontribe</a>, the building would rise 10 to 13 storeys, with a stepped massing strategy to transition from the Pacific Highway frontage down to the finer-grain character of Church Lane. The two-level podium includes new commercial tenancies, communal open space, and landscaping.&nbsp;

Winter gardens have been integrated into apartments along the highway elevation to mitigate noise impacts, and Church Lane is set to be widened to six metres to improve access and separation from lower-scale dwellings to the east.

Nettletontribe said in the documents submitted as part of the application that the proposal delivers a well-resolved mixed-use development that responds to its urban and heritage context along Pacific Highway, North Sydney.

"Positioned along a key section of the Pacific Highway corridor, the site forms part of a transitional zone between the North Sydney CBD and the emerging Crows Nest and St Leonards centres. The design responds to this dual context—addressing the scale and intensity of the highway frontage while engaging sensitively with the finer grain and heritage character of Church Lane and West Street."

<img alt="Legacy" data-entity-type="file" data-entity-uuid="629ff458-3b46-4f72-a01b-aade8baf8b2d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-08-07%20at%2012.03.14%E2%80%AFPM.png?VersionId=kNYKtqbXY1Gjov794jKtaOJmhFm15gUS" />

As the Scoping Report notes, “the design of the proposal is still consistent with the objective of [ADG] controls to maintain the privacy of neighbouring properties,” with separations and setbacks applied particularly along Church Lane.

The proposed envelope is largely consistent with the uplift previously approved through Planning Proposal PP-2021-2926, which designated the site as part of a Southern Transition Area in the North Sydney Civic Precinct Planning Study. That designation supports mid-rise, mixed-use development to bridge the scale between the North Sydney CBD and nearby heritage areas.

The site spans 1,099 sqm and includes four properties. While 253-263 Pacific Highway will be demolished, the heritage item at 265 will be retained and adapted for commercial or community use.&nbsp;

The development includes four levels of basement car parking accessed from Church Lane, with a total of 55 car spaces planned, exceeding minimum Housing SEPP requirements.

Legacy Property, led by CEO Matthew Hyder, has two projects in Macquarie Park, totalling nearly 400 apartments.

Designed by Nettletontribe, the building would rise 10 to 13 storeys, with a stepped massing strategy to transition from the Pacific Highway frontage down to the finer-grain character of Church Lane

First look: Legacy Property proposes shoptop housing on North Sydney fringe

Sydney’s residential market continued its gentle climb in July, with dwelling values up 0.6 per cent over the month and 1.8 per cent across the rolling quarter.

The affordability gap between units and houses is continuing to wide. Units values grew by 0.2 per cent over July, whereas houses jumped by 0.8 per cent, Cotality's Home Value Index found.

Units in the harbour capital are now up 1.3 per cent over the quarter, compared to 1.9 per cent for houses.

Sydney median unit value is $868,000, some $662,000 less than the $1.53 million house median.

Sydney’s relative strength echoes broader capital city resilience, with combined capital values also up 0.6 per cent for the month and 1.8 per cent over the quarter. The gains are underpinned by interest rate cuts earlier in the year, tight listings, and steadily improving buyer confidence.

<h2>What happened in Sydney’s off the plan apartment market in July?</h2>

There were some major moves in the Sydney off the plan apartment market, from Sydney's biggest developers.

<a href="https://www.apartments.com.au/developers/lendlease-development">Lendlease</a>&nbsp;formalised a new joint venture with Mitsubishi Estate Asia and Nippon Steel Kowa Real Estate to develop a $2.5 billion luxury project at 175 Liverpool Street.

<img alt="Lendlease announces partners for its $2.5 billion luxury development on Hyde Park" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Bates%20Smart_175%20Liverpool%20Street%2002-min.jpg?VersionId=2l2XiHSdIP5a_Ei_Y3yft5eLPJ6kLX3G" />

Located on the southern edge of Hyde Park, the dual-tower development will deliver up to 300 high-end residences with north-facing views toward the Opera House and Harbour, alongside 2,000 sqm of retail and commercial space.

Construction is targeted to begin in 2027, pending approvals.

Read more: <a href="https://www.apartments.com.au/news/nsw/lendlease-announces-partners-for-its-2-5-billion-luxury-development-on-hyde-park">Lendlease announces partners for its $2.5 billion luxury development on Hyde Park</a>

On the Lower North Shore, <a href="https://www.apartments.com.au/developers/traders-in-purple">Traders In Purple</a> and joint venture partner Sydney Anglican Property were granted planning approval for the renewal of St Andrew’s Anglican Church in <a href="https://www.apartments.com.au/developments/lane-cove-nsw-2066" target="">Lane Cove</a>.

The development will offer 48 two and three-bedroom apartments, many of which will enjoy dual aspect, enhancing outlooks and cross-flow ventilation.

The existing parish church, built in 1924, will be retained and sensitively adapted into a meeting place and portal to the new contemporary auditorium and ministry spaces, linking old and new.

Traders In Purple CEO Brett Robinson said redevelopment of the site had been enthusiastically supported by many members of the local community.

“There is a demand for high-quality, well-designed, premium apartments for locals wanting to downsize in their neighbourhood and those wanting to raise their family in a highly desirable suburb without the burden of a high-maintenance house and yard.

“It was very clear to us that the local community is also in need of a larger performance space, and we look forward to providing the community with a fantastic new venue that will support the cultural richness of Lane Cove.”

Read more: <a href="https://www.apartments.com.au/news/nsw/traders-in-purple-and-sydney-anglican-property-greenlit-for-lane-cove-project">Traders in Purple and Sydney Anglican Property greenlit for Lane Cove project</a>

Over in the eastern suburbs, <a href="https://www.apartments.com.au/developers/toga-group">TOGA</a> reached a significant milestone at The Kensington, with the development officially topping out.

The Anzac Parade building is being delivered by Gold Star iCIRT-rated builder <a href="https://www.apartments.com.au/developers/dasco-australia" target="">DASCO</a>, who can start to turn their attention toward the exterior of the building, and the fitout of the 142 one, two, and three-bedroom apartments strategically located opposite the Kensington Light Rail stop.

[smartcode_project:default project_id=110959 project_image_fid=307645]

<a href="https://www.apartments.com.au/new-apartments/the-kensington-147-151-anzac-parade-kensington-nsw-2033">The Kensington</a> forms part of a broader revitalisation effort along the light rail corridor in Sydney’s inner south.

Residents will move in midway through 2026.

Read more: <a href="https://www.apartments.com.au/news/nsw/toga-tops-out-the-kensington-reshaping-anzac-parade-light-rail-corridor">TOGA tops out The Kensington, reshaping Anzac Parade light rail corridor</a>

Sekisui House Australia released the latest stage of their Melrose Park urban renewal precinct.

<a href="https://www.apartments.com.au/developers/sekisui-house-australia">Sekisui House Australia</a>, in partnership with Hankyu Hanshin Properties, has opened expressions of interest for <a href="https://www.apartments.com.au/new-apartments/aeris-melrose-park-86-wharf-road-melrose-park-nsw-2114">Aeris</a>, the sixth and most elevated stage in the $5 billion Melrose Park master planned community in Sydney’s north-west.

<img alt="Sekisui House Australia reveals Aeris, Melrose Park’s latest stage" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Aeris_Stage%206_1_0.jpg?VersionId=xsMRsasGYnnQoaLLmwqtSFAsOQv8ZZJN" />

Aeris will comprise 468 apartments across two tall 20 and 24-storey slender towers. Prices start from $649,000 up to $1.55 million, with internal sizes ranging from 50 to 130 sqm.

As sustainability credentials become more central to buyer expectations, <a href="https://www.apartments.com.au/developments/melrose-park-nsw-2114">Melrose Park</a> continues to model future-facing urban design.

Construction of Aeris is anticipated to commence in late 2025, with the first lower tower due for completion in Q4 2027 and the second and third towers expected in 2028.

Read more: <a href="https://www.apartments.com.au/news/nsw/sekisui-house-australia-reveals-aeris-melrose-park-s-latest-stage">Sekisui House Australia reveals Aeris, Melrose Park’s latest stage</a>

In <a href="https://www.apartments.com.au/developments/crows-nest-nsw-2065">Crows Nest</a>, <a href="https://www.apartments.com.au/developers/deicorp">Deicorp</a> broke ground on <a href="https://www.apartments.com.au/new-apartments/falcon-alexander-8-alexander-street-crows-nest">Falcon &amp; Alexander</a>, offering around 100 apartments near the new Metro station.

Conceived by award-winning architects <a href="https://www.apartments.com.au/architects/turner-studio">TURNER</a>, Falcon &amp; Alexander will create a vibrant vertical village in the heart of one of Sydney’s most connected neighbourhoods. Thoughtfully arranged around a central atrium and lush communal gardens, residences will enjoy panoramic views over Sydney Harbour and the Lower North Shore, with interiors designed for modern, light-filled living.

<img alt="Deicorp breaks ground at Falcon &amp; Alexander, Crows Nest apartments" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-07-28%20at%203.55.17%E2%80%AFPM.png?VersionId=3IIFc1X8W6tPGj.P6xmw_2limcEUkinJ" />

Residents will benefit from premium amenities, including a resident-only skygarden, and boutique retail and dining spaces on the ground floor, all integrated with the local urban fabric.

With proximity to transport and established retail precincts, the development is well-positioned to capture demand from downsizers and city professionals alike.

Read more: <a href="https://www.apartments.com.au/news/nsw/deicorp-breaks-ground-at-falcon-alexander-crows-nest-apartments">Deicorp breaks ground at Falcon &amp; Alexander, Crows Nest apartments</a>

In the upper north, <a href="https://www.apartments.com.au/developers/capital-corporation">Capital Corporation</a> advanced <a href="https://www.urban.com.au/new-apartments/the-residences-at-wahroonga-estate-169-fox-valley-road-wahroonga-nsw-2076">The Residences at Wahroonga Estate</a>&nbsp;masterplan by appointing DASCO to build the first stage. This is the first partnership between Capital Corporation and DASCO, bringing together two award-winning property powerhouses in what promises to be a defining project for the region.

[smartcode_project:default project_id=135247 project_image_fid=3629]

The move followed over $90 million in early sales, highlighting appetite for prestige residential offerings in leafy, well-connected locales.

Construction on the first 128 residences will commence in the coming months, with completion targeted for late 2027.

Read more: <a href="https://www.apartments.com.au/news/nsw/capital-corporation-appoints-dasco-to-build-the-first-stage-at-the-residences-at-wahroonga-estate-after-90m-in-sales">Capital Corporation appoints DASCO to build the first stage at The Residences at Wahroonga Estate after $90m in sales</a>

City Beat July 2025: Sydney’s apartment upswing gathers pace as Sydney's biggest developers make major moves

Hobart

The Melbourne-based developer Bensons Property Group has purchased a Battery Point development site.

It intends to build a $50 million apartment project with a penthouse with $10 million sale prospects.

Close to Sullivan&rsquo;s Cove, the boutique project is set to be 30 apartments with a $1 million staring price.

The site cost about $7 million through Knight Frank with The Australian reporting the move was driven by the company&rsquo;s &shy;chairman and founder Elias Jreissati and wife Colleen, who want to add to the company&rsquo;s luxury interstate projects.

Completion is expected in late 2023.

Bensons chief executive Rick Curtis said they will work closely with Hobart City Council and the local community on revised plans for the site.

It spans 1442 sqm on the corner of Knopwood St and Montpelier Retreat.

The approved DA allows for the construction of 30 luxury apartments, basement carparking for 46 cars.

The site set 200m from the Salamanca Place and Hobart waterfront was offered with a short term lease to Care Park.

The Jreissati family have owned a Hobart apartment for more than five years in Battery Point.

The Jreissati family supports the arts in Hobart.

The site will include a public open space embedded with art created by Tasmanian artists.

Bensons Property Group is set to create the first high-rise residential tower on Chevron Island, minutes from the beaches of Surfers Paradise.

Its Chevron One project will form part of the new arts and cultural precinct for the Gold Coast.

Melbourne-based developer Bensons Property Group has snapped up the development site close to Sullivan’s Cove

jchancellor

$10m Hobart penthouse in Bensons Property Group project

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Apartment vendors across the major capital cities have been securing close to their asking prices, according to CoreLogic

The latest data shows that Canberra is the apartment market where vendors do not need to discount their asking prices by that much.

The median required discount in Canberra is 1.7 percent.

Across the other capital cities there is a prospect that apartment vendors require to adjust their asking prices by between 2.2 percent to 2.6 percent in order to secure a sale.

[smartcode_project:default project_id=2772]

Hobart is the fastest selling city for both apartments and houses.

<img alt="" height="458" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/cl_2021_apt_vendors.jpg" width="643">

House vendors are a little more ambitious in their asking prices with the required discount needing to be offered to buyers sitting in the range of 2.2 percent to 3 percent.
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Apartment vendors across the major capital cities have been securing close to their asking prices, according to CoreLogic

Apartment vendors selling at close to asking prices: CoreLogic

<html><body>The city of Hobart has again seen a very high rate of profit making sales with 97.2% of resales making money for their vendors in the last quester of 2020.

The rate of profit making sales increased further over the December quarter, up from 96% in the three months to September, the CoreLogic pain and gain report noted.

The lowest typical hold period associated with a profit making sales across the nation was across regional Tasmanian units, where the median hold period on a profit-making sale was just 6.7 years.

The report noted that in the 6.7 years to December 2020, regional Tasmania unit values increased around 40%, compared to an increase in unit values across the Australia-wide market of approximately 7%.

Hobart continued as the most profitable capital city across Australia in terms of the portion of resales with 97.2% of observed resales making a nominal gain in the December 2020 quarter, up from 96.7% in the three months to September.

Hobart houses saw a slightly higher rate of profit making sales (97%) than units (95.2%) in the December quarter. 

It was 97.7% in the rest of Tasmania for houses and 96.2% for rest of Tasmania units. 

"Interestingly, the rate of profit making unit sales increased 80 basis points in the quarter while the portion of unit profit making sales actually declined 80 basis points," the report noted.

Each local government area of Hobart saw a high level of profitability in the December quarter, ranging from 93.3% across Sorrell, to 98.3% across Brighton. 

Hobart has seen a renewed surge in values off the back of the cash rate reduction in November, and will likely see continued increases in profitability through the March 2021 quarter, CoreLogic forecast.

Eliza Owen, Core Logic’s Head of Research noted the lowest incidence of profit making sales across the capital cities was across Darwin, where 51.4% of properties sold for a loss.</body></html>

The city of Hobart once again saw the highest rate of profit making sales at 97%. 

Hobart and regional Tasmania units are selling quick and at big profits

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EXPERT INSIGHT

Hobart and regional Victoria profit most, shows latest CoreLogic Pain and Gain report

CoreLogic’s Pain and Gain report for the September 2020 quarter released today has revealed Hobart retained its position as the capital city with the highest rate of profit making resales at 96.6%, while regional Victoria was the most profitable ‘rest of state’ region with 97.5% of dwellings sold for a profit in the three months to September.

Nationally, the proportion of resales that made a profit was 88.1% or $24.8 billion in profits, up from 87.2% or $19.8 billion in the June 2020 quarter. However, the amount of losses also deepened on non-profitable sales, from -$885 million in the June quarter to -$1.2 billion in September.

The Pain and Gain analysis for the September quarter reflects the resilience seen in the property market throughout 2020.

Each of the greater capital city markets, with the exception of Melbourne, saw an increase in the rate of profit making sales over the September quarter. The highest rate of profit making sales was across Hobart, which has been the case since March 2018.

Coastal regional markets were also particularly profitable for sellers, with profit making sales representing over 95% of resales across six major coastal markets: Geelong, Illawarra, the Mid North Coast, the Newcastle Lake Macquarie region, the Richmond Tweed region and the Sunshine Coast. The Sunshine Coast hit a record high rate of profit making sales in the September quarter at 96.4%.

Comparing the capital cities to regional Australia, the portion of profit-making sales increased more rapidly across the regions than capitals.

The combined regional Australian market saw the rate of profit making sales increase 150 basis points, to 89.2% in the September quarter, while the rate of profitability across capital city markets expanded 30 basis points, to 87.2%. This also reflects the divergent performance between regional and capital city real estate markets through 2020.

Houses vs Units

The report also demonstrates that there was generally a higher rate of return for houses ($225,000) than units ($125,000).

Profitability across both houses and units rose across Australia in the September 2020 quarter. The portion of properties sold at a loss among houses fell from 10.2% in the three months to June to 9.6%, while the portion of loss making unit sales fell from 21.4% to 19.6%.

The differential between house and unit profitability narrowed to 10 percentage points in the September quarter, down from 11.2 percentage points in the three months to June. The narrowed differential was a result of unit profitability rising faster than that of houses. Even though the rate of loss making sales declined faster across the unit segment, units were still about 2 times more likely to sell for a loss than houses in the September quarter.

Investors vs Owner Occupiers

A higher portion of property investors sold their dwelling at a loss during the September quarter compared with owner occupiers. Investor sales in the September quarter saw 17.1% of properties sell for a loss, compared with 10.4% of owner occupied sales.

Despite the higher rate of loss observed in investor sales in the quarter, the rate of properties re-sold at a loss was down from 18.0% in the June quarter, while the rate of loss making sales among owner occupiers was down from 11.1%.

The only region where there was a higher incidence of loss making sales among owner occupiers was across Hobart. This has been a consistent trend across the past few quarters. In the three months to September, 3.2% of owner occupied resales saw a nominal loss, compared with just 1% of investor sales.

The relatively low level of loss making sales among both cohorts reflects the exceptional capital growth across the Hobart market. CoreLogic home value indices show dwelling values across Hobart have seen annualised growth of 7.9% for the 5 years to December 2020, the highest annualised growth rate of the capital city markets.

Hold periods

Analysing returns by hold period suggests a greater amount of gain comes from more time in the market.

Over the September 2020 quarter, the median hold period of re-sale events across Australia was approximately 8.5 years. For profit making sales, the median hold period was 9 years, while loss making sales were typically held for 6.7 years. For houses and units, typical hold periods were longer across profit making resales.

The Australian housing market is expected to improve further in the coming months. With record low mortgage rates, a faster than expected economic recovery and relatively low cases of COVID-19, profitability is tipped to trend upwards over the coming quarters.

Eliza Owen is CoreLogic’s Head of Research Australia
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Regional Victoria and Hobart homes profited most in Q4 2020: CoreLogic's Eliza Owen

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Listings rose 3 percent in June, driven mainly by a 7 percent jump in Brisbane.
Higher listings in the month mirror recent softening auction trends, reported SQM Research. 
Over the year, listings are still 3.3 percent lower, with Melbourne (-12.7 percent) and Hobart (-14,8 percent) recording excessive declines. 
<a href="https://www.propertyobserver.com.au/images/2017/07/05/SQM1.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/07/05/SQM1.jpg" alt="">
Melbourne house prices have exploded 
The Hobart market is very tight, with a total of only 2912 listings, sending rents and house prices higher. 
With the other exception of Melbourne, listings are generally higher this year than last.
Listings in Brisbane jumped by 7 percent in June, as vendors struggle gamely to offload a glut of apartment stock.  
<a href="https://www.propertyobserver.com.au/images/2017/07/05/SQM2.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/07/05/SQM2.jpg" alt="">
Meanwhile SQM reported that median asking prices in Melbourne have exploded, rising by 22 percent over the year to June. 
Indeed, Melbourne asking prices for houses have increased by a massive 48 percent over the past three years, now comfortably outstripping growth in all other capital cities, including house prices in Sydney at 39 percent. 
 
PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.
His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank">Four Green Houses and a Red Hotel</a>.
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Hobart property market tight

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Entrenched habits die hard and it’s difficult to shake people’s rigid views about certain locations.
This, despite everything that’s happened recently, applies to the hottest market in Australia right now, Hobart.
Hobart has been leading city Australia for some time on a number of parameters, including highest price growth, fastest-selling locations, lowest vacancy rates and highest rental yields, as well as having the lowest prices among the state and territory capitals.
Many remain unconvinced for a host of entrenched but out-of-date reasons: it’s not sustainable, the economy is weak, there’s no population growth, the city is too small, no one wants to live there, etc.
The reality is that much has changed. And it’s because of these fundamental changes that Hobart has a booming property market. It also provides clues as to which city will rise next.
Tasmania previously ranked as the weakest economy in the nation. It consistently ranked last or second last on most of the key parameters. But that’s old news. Tasmania’s economy has improved markedly and it now is entrenched in fourth ranking among the eight state and territory economies, according to CommSec.
Previously Tasmania generated little or no population growth, because of the once weak economy, but that has changed too. Now Tasmania is a net gainer from interstate migration and overseas migration – not with the big numbers of Victoria or Queensland, but now growing again.
Housing affordability is partly the cause. Hobart has been easily the cheapest of the capital cities for houses and apartments, but perhaps not for much longer. Such has been the strength of its price growth that it may soon overtake cities like Adelaide and Darwin in terms of its median house price.
According to one source, Hobart has been the price growth leader for 10 consecutive months. Its median prices now are around $450,000 for houses and $350,000 for units.
Price growth has been underpinned by that strong state economy and an increased level of spending on infrastructure, as well as growing numbers of buyers attracted by the relatively low prices.
Recent research suggested that Hobart is now the most unaffordable capital city for renters – that’s typical rents relative to typical local incomes (May Rental Affordability Index). This is bad news for local tenants but good news for investor owners.
Hobart rents have been rising because vacancies have been well under 1 percent for a long time – the lowest among the capital cities, challenged only by Canberra.
A recent survey found 40 Hobart suburbs with no rentals available at all, while another 31 suburbs had only three or fewer available for rent. It’s been suggested that local councils have been very slow to approve new dwellings, creating a shortage of rental supply.
So should you be rushing off to buy in Hobart? Not necessarily. Two years ago would have been a great time to buy there but there’s already been a lot of growth. There’s a case for building new dwellings there, if you have high levels of patience.
The smartest of investors will look at what’s happened in Hobart, understand why it’s risen and then ask the core question: where next?
Given that Hobart’s run has been driven by affordable prices, low vacancies, a strengthening economy and elevated infrastructure spending, I’d suggest the next place to look for uplift is Adelaide.
But, like Hobart, Adelaide is a hard sell. Many people have entrenched negative views about Adelaide, as they do about Hobart. And no level of change in circumstances will change the unshakeable views.
But I’m increasingly bullish about Adelaide, with its improving economy, strengthening confidence levels, growing status as the national capital for hi-tech innovation and alternative energy - and all that’s coming up in the construction pipeline, including those big contracts to building submarines and other vessels for the Navy.
Terry Ryder is the founder of hotspotting.com.au
<a href="https://mailto:ryder@hotspotting.com.au">ryder@hotspotting.com.au</a>
twitter.com/hotspotting
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terryryder-YECXbqmri2

Australia's hottest property market - and where's next?

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The Hobart housing market has been the nation’s weakest performing capital city housing market for more than a decade.
There are now signs that the Hobart (and Tasmania’s) housing market may be in line for a steady improvement.
<a href="/images/2016/04/27/Chart-1-2-580x208.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/04/27/Chart-1-2-580x208.jpg" alt="">
Over the 12 months to March 2016, home values in Hobart have increased by 4.8 percent while over the past two years values are only 4.5 percent higher highlighting that the value growth performance has been much stronger over the past year relative to the previous year.
The above chart shows the annual change in home values across all capital cities, with Hobart and the combined capital cities highlighted and the other cities in grey.  Although Hobart values have increased over the past year, the recent rise must be put in context, over the past decade home values in Hobart have increased at an annual rate of 1.5 percent with values falling at an annual rate of -0.7 percent over the past five years.  Hobart’s decade growth performance is well behind Perth which has recorded the second lowest annual rate of growth over the period at 3.1 percent.
<a href="/images/2016/04/27/Chart-2-2-580x207.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/04/27/Chart-2-2-580x207.jpg" alt="">
It is interesting to look at the performance of the Hobart housing market in context with the performance of the Melbourne market. The previous chart shows that in 2003 and 2004 home value growth in Hobart surged. The rate of growth reached a peak of 57.9 percent annual growth in November 2003 and very shortly thereafter the growth performance in Hobart stalled and has been limited ever since.
The surge in Hobart dwellings came following a surge in Melbourne home values and at a similar time to which the rate of growth in Melbourne values began to slow.  Ever since the end of the last surge in home values in Hobart, Melbourne has recorded strong rises in home values while growth in Hobart has been minimal.
Melbourne has obviously recently seen a large surge in home values meaning that many home owners have substantial levels of equity in their property. Investment in the Tasmanian housing market which offers much lower home values and superior yields may be looking attractive for those in Melbourne looking for a lifestyle investment.
<a href="/images/2016/04/27/Chart-3-2-580x207.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/04/27/Chart-3-2-580x207.jpg" alt="">
While value growth in Hobart is picking up, transaction volumes are relatively steady from where they were at the end of last year and virtually unchanged from a year ago.  In comparison, most other capital city housing markets are actually recording fewer property transactions than they were a year ago.
<a href="/images/2016/04/27/Chart-4-2-580x206.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/04/27/Chart-4-2-580x206.jpg" alt="">
Looking at the current market, listings provides one of the best guides about the balance between buyers and sellers.  As listings move lower, buyers have less choice and vendors can be less flexible on their price expectations which can push values higher.  Over the 28 days to 17 April 2016 there were 376 newly advertised properties added to the Hobart housing market and 2,189 total property listings. 
New listings are 1.3 percent higher than they were a year ago and fairly flat over recent weeks.  Meanwhile, total listings are -26.2 percent lower than they were a year ago and as the table shows they are trending lower.  In fact, the number of listings is at its lowest level since October 2010.  With new listings slightly higher than a year ago and total listing much lower it suggests that there is limited new supply coming to the market with increasing demand which is causing total listing volumes to trend much lower.
<a href="/images/2016/04/27/Chart-5-2-580x210.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/04/27/Chart-5-2-580x210.jpg" alt="">
One of the main drivers of the surge in Hobart home values in 2003 and 2004 was the positive migration trends for Tasmania.  The above table shows that in 2003 and early 2004 both net overseas and net interstate migration were positive.  The chart also shows that typically there is an outflow of residents of Tasmania to other states and territories while net overseas migration is usually positive.  Over the past few quarters, for the first time in a number of years, net interstate migration to Tasmania has been positive.  It is still early days but should this trend continue over the coming quarters it could be a positive for the Tasmania housing market.
<a href="/images/2016/04/27/Chart-6-1-580x208.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/04/27/Chart-6-1-580x208.jpg" alt="">
People will generally only move to a new region if they are reasonably comfortable that they can find employment.  The unemployment rate in Tasmania has ticked up over recent months and job creation has slowed which may act as a deterrent to make the move to a market like Hobart.  However, if we look at 2003 and 2004 when home values were surging and migration to Tasmania was quite strong, job creation was stronger although the unemployment rate was in the high 6% to low 7% range compared to a similar 6.9% currently.  Keep in mind that some people will move to Tasmania and Hobart as a lifestyle choice so they may be able to do their current job remotely or may commute back to the mainland a few days a week / each month.  Furthermore, a proportion of people that move interstate would be retirees and therefore their decision is not reliant upon securing employment.
<a href="/images/2016/04/27/Chart-7-1-580x213.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/04/27/Chart-7-1-580x213.jpg" alt="">
Tourism is likely to be a growing source of employment for those living in Tasmania.  According to data from Tourism Research Australia, international visitor numbers to Tasmania increased by 19.6 percent in 2015 and have increased by 53 percent over the past five years. Meanwhile, domestic overnight trips to Tasmania increased by 17.3 percent in 2015 and have increased by 40 percent over the past five years.  Should the ramp-up in tourism continue it will create even more employment opportunities in the local economy.
When you look at the housing and economic indicators for Hobart it looks like the market is well positioned to see an increase in the rate of housing demand and subsequently home values over the coming year.  Of course Hobart also has the advantage of being a substantially more affordable housing market than all of the other capital cities.  Any of these indicators could change and most importantly if job creation picked up pace and the unemployment rate fell it would provide further positives for the local market.  Nevertheless, it looks as if the fundamentals are in place for a long-awaited improvement in value growth for the Hobart housing market.
 Cameron Kusher is research analyst for CoreLogic RP Data. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>.
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Hobart's time to shine: Cameron Kusher

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<h3 class="post-title entry-title">Sydney and Canberra listings crept higher in the lead-up to the spring selling season, taking national listings a little north over the month of August from 316,748 to 318,825, according to SQM Research. </h3>
<div id="post-body-7780315564848738704" class="post-body entry-content">
Asking prices in Sydney nevertheless moved higher than a month earlier, both for houses and units. 
Nationally total listings are -4.3 per cent lower than a year ago, however, driven by excessive annual declines in the firing Melbourne and Hobart housing markets. 
<a href="https://www.propertyobserver.com.au/images/2017/09/07/newb.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/09/07/newb.jpg" alt="">
Both monthly and annual listing numbers are also now in decline in Perth, suggesting that it's only a matter of time now before prices begin rising again in Western Australia, especially in light of the commodity markets rebound. 
Listings in Melbourne have now broadly fallen from ~50,000 to ~30,000 since 2012, with listings a massive -15.3 per cent lower year-on-year, suggesting that house prices will continue to surge in the Victorian capital. 
<a href="https://www.propertyobserver.com.au/images/2017/09/07/newB2.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/09/07/newB2.jpg" alt="">
In Hobart listings have plummeted some -20.2 per cent lower since August 2016, with now just 2,520 listings across the entire capital city market and a surfeit of willing buyers, both locally and from interstate.
House prices are recording gains of ~15 per cent per annum across Greater Hobart.
Simon Pressley, founder of Propertyology, notes that gains in inner metropolitan Hobart have been tracking at closer to ~20 per cent per annum.  
Supply sluggish
Hobart is a relatively small capital city of about 225,000 persons. 
<a href="https://www.propertyobserver.com.au/images/2017/09/07/newB3.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/09/07/newB3.jpg" alt="">
Normally, one would associate such a rapid run-up in demand and house prices with a decisive supply response.
Hobart is not a mainland city, however, and some larger developers may be a little more reluctant to get involved, due to logistics and cost.
To date the increase in dwelling approvals has been muted to say the least, suggesting that the Hobart price boom will likely continue well into 2018. 
SQM sees more first homebuyers entering the market in New South Wales and Victoria, drawn in by first homebuyer grants, but more stock likely to be hitting the market too.
GDP to be solid
In other news, the current account deficit widened in the second quarter to $9.6 billion on weaker commodity prices - albeit from a tremendously improved position - while net foreign debt declined for another quarter. 
Exports exceeded imports, however, and are expected add +0.3 percentage points to GDP growth when the national accounts are released today.
Furthermore there was a very strong +2.2 per cent increase in public demand, set to add another +0.5 percentage points to GDP. 
<a href="https://www.propertyobserver.com.au/images/2017/09/07/A1.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/09/07/A1.jpg" alt="">
Thus, despite the significant drag from inventories, Westpac now expects quarterly GDP growth to be around +1 per cent. 
And with a negative quarterly print to drop off in due course, GDP growth now seems likely to surge into the end of 2017.
One other interesting point of note for the phantom rate hike brigade to take note of, the Reserve Bank Governor noted in his dinner speech that the Board had considered the merits of lower rates still, but appears to have held off to allow the heat in the Sydney housing market to ease (which it now has). 
PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.
His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank">Four Green Houses and a Red Hotel</a>.
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Hobart mounts full-scale property boom

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<div>EXPERT OBSERVER</div>
<div> </div>
<div>Despite a record investor boom since 2013 vacancy rates are now falling as investment loans are squeezed harder, with the national rental vacancy rate down from 2.3 per cent to 2.1 per cent over the year to September 2018 according to SQM's latest release. </div>
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<div>In absolute terms, that represents a decrease from 72,955 to 70,172 rentals. </div>
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<div>
Every month I'm bombarded with theoretical constructs about how Canberra's land tax experiment won't impact the rental market...and every month the rental vacancy rate falls further, now down from about 2½ per cent to just 0.6 per cent since taxes were initially all but doubled. 
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<div>
 I guess the idea was that people in the ACT earn high incomes so homeowners can afford to pay exorbitant taxes, but unfortunately ludicrously high taxes don't discriminate and it's turning out to be a disaster (especially for asset-rich but income-poor homeowners, and now for renters too).  
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<div>The ABS rental CPI index has more lag than my nanna's boiler, but more timely industry asking rents indices are now pointing to double-digit rental price increases for the nation's capital. </div>
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<div>Indeed, SQM Research's asking rents index shows the median asking rent for houses increasing by 31½ per cent over the past three years.</div>
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Plotted below are the capital city vacancy rates reported by SQM Research on a 6mMA basis so that you can see the trends. 
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<div>Click here <a href="https://2.bp.blogspot.com/-3RxbEjERnck/W8X2yGCInEI/AAAAAAAAsZY/f4GIMl4KzdAZAGf9ItxZ555CwkI0nYt8wCLcBGAs/s1600/SQM1.jpg" target="_blank">to enlarge.</a>
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<div class="separator"><img src="https://2.bp.blogspot.com/-3RxbEjERnck/W8X2yGCInEI/AAAAAAAAsZY/f4GIMl4KzdAZAGf9ItxZ555CwkI0nYt8wCLcBGAs/s640/SQM1.jpg" width="640" height="358"></div>
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Ouch.
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Hobart rentals evaporate Hobart has increased in popularity over the past few years, but with banks either dithering or knocking back investor loans the rental stock has now totally evaporated.
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<div>With median asking rents in in the Tasmania capital city already up by 29 per cent over the past 3 years new rental supply should be abounding.</div>
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<div>But instead it has completely crashed to sit close to the lowest level on record for any Australian capital city at just 0.4 per cent. </div>
<div> Asking rents for houses in Hobart were up by more than 6½ per cent over the past quarter alone. </div>
<div>
 With only 108 (!) rental vacancies now remaining - please see the definition of a rental vacancy before emailing me - Hobart rents are now destined to increase by more than 50 per cent through this cycle. Meanwhile kamikaze commentators continue to call for tighter lending criteria for investors and scrapping negative gearing. Before you pile in to Hobart real estate too late in the cycle remember that small markets can be more volatile and building approvals in Hobart are just coming off <a id="LPlnk756867" class="OWAAutoLink" href="http://petewargent.blogspot.com/2018/08/hobart-building-boom" target="_blank">99-month highs</a>.  I suppose a supply shock is one way to get consumer price inflation somewhere closer to the target range, with some forecasters already anticipating another dismal 1¾ per cent CPI print next time around. 
</div>
<div> </div>
<div>Adelaide is heading in a similar direction, with the vacancy rate now down to just 1.1 per cent. </div>
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<div>
Brisbane has considerably more breathing space following its preceding record apartment construction boom, with the vacancy rate down far more comfortably from 3½ per cent to 2.9 per cent over the past year.  As an interesting aside, check out how seasonal Melbourne's rental market these days as population flows become more fluid, partly due to more international students.
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<div>Click here <a href="https://3.bp.blogspot.com/-0PuL9sCcSUw/W8YW5Itzm4I/AAAAAAAAsZw/NyweL3IoJ1sg6G74P5mzonQMXxuV8F6FwCLcBGAs/s1600/MEL.jpg" target="_blank">to enlarge.</a> 
<div class="separator"><img src="https://3.bp.blogspot.com/-0PuL9sCcSUw/W8YW5Itzm4I/AAAAAAAAsZw/NyweL3IoJ1sg6G74P5mzonQMXxuV8F6FwCLcBGAs/s640/MEL.jpg" width="640" height="380"></div>
 
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Christmas could be interesting this year. 
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<div>Sydney elevated</div>
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<div>The only major city that's seen a meaningful increase in rental vacancies over the past year is Sydney at 19,469 or 2.8 per cent (largely due to investors that bought off the plan a couple of years ago). </div>
<div> </div>
<div>Unfortunately for these investors that bought new at inflated prices they'll probably be in negative equity as they settle. </div>
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<div>While most of the city doesn't have especially high vacancy rates - for example, the Canterbury-Bankstown region sits only at 2.2 per cent - some parts are experiencing a surge of completions, and thus very high rates of vacancy, including most notably the Hills District.</div>
<div> </div>
<div>Click here <a href="https://4.bp.blogspot.com/-02AnfdeLLGU/W8X2yCqKNjI/AAAAAAAAsZU/DdtwNEpHYrE30_SiNlu0DAQzbAHF-bGdwCLcBGAs/s1600/SQM2.jpg" target="_blank">to enlarge.</a>
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<div class="separator"><img src="https://4.bp.blogspot.com/-02AnfdeLLGU/W8X2yCqKNjI/AAAAAAAAsZU/DdtwNEpHYrE30_SiNlu0DAQzbAHF-bGdwCLcBGAs/s640/SQM2.jpg" width="640" height="372"></div>
 
<div>19,469 sounds like a lot for Sydney vacancies, and it sort of is - arguably about 16,000 would be a rental market in balance - but let's face it, at the present rate of population growth this could turn around into a rental shortage on a dime if investors pull up stumps. The summer months tend to be much busier in Sydney and Melbourne these days, so let's see what happens over the festive period. Finally, the coal price bust and subsequent super-boom has seen the vacancy rate in the Hunter Valley tumble from sky-high levels in 2015 to just 1.3 per cent. There could be an interesting twist in the tail for the coal-mining towns that took such a hit in the aftermath of the resources construction boom. The coking coal price has burned up into the stratosphere at $215/tonne (or about A$300/tonne) which is huge for Queensland. </div>
<div> </div>
<div class="separator">PETE WARGENT is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.</div>
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Canberra and Hobart are turning into rental disaster zones

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EXPERT OBSERVER
My analysis reveals that over the 2017-18 financial year, annual value growth fell from 10.2% over the previous financial year to a decline of -0.8% this year.
The largest fall in values is occurring for Sydney and Melbourne’s most expensive properties.
This has resulted in the number of sales at, or in excess, of $1 million starting to trend marginally lower across the nation.
<img src="https://www.urban.com.au/images/2018/8/16/CL%20PP%201.JPG" alt="">
As housing market conditions continue to weaken, it is anticipated that there will continue to be fewer sales above the $1 million threshold.
Over the 12 months to June 2018, 16.0% of all houses and 8.8% of all units sold nationally had a price of at least $1 million; the share of house and unit sales at this price point was slightly lower than the previous year when 16.1% of houses and 9.1% of unit sales were at this price point.
The share of $1 million plus sales is also down from the peak of 16.8% for houses in February 2018 and 9.4% for units in October 2017; 24.5% of houses and 10.7% of units were sold for at least $1 million over the 2017-18 financial year.
House sales at this price point were slightly higher than the 24.3% a year ago but down from the recent peak of 25.5% in February 2018.
<img src="https://www.urban.com.au/images/2018/8/16/CL%20PP%202.JPG" alt="">
 
The 10.7% of unit sales for at least $1 million was down from 11.1% a year ago as well as being lower than the 11.5% peak in October 2017.
Across the combined regional markets, 4.7% of all houses sold over the 2017-18 financial year transacted for at least $1 million.
A year earlier, 4.3% of all sales were at that price point however, the share of house sales at or above $1 million has fallen slightly from 4.8% in March 2018.
Four per cent of all units sold over the past year were at least $1 million which was a recordhigh share and up from 3.7% the previous year.
<img src="https://www.urban.com.au/images/2018/8/16/CL%20PP%203.JPG" alt="">
At its peak in March 2018, 50.4% of houses sold over the past year in Sydney transacted for at least $1 million with the figure since falling to 48.8% in June 2018.
The 48.8% share in June 2018 was slightly higher than the 48.6% a year earlier but clearly now trending lower.
Over the 12 months to June 2018, 21.2% of all unit sales were at least $1 million which was both down from a year ago (21.8%) and lower than the October 2017 peak (22.5%).
<img src="https://www.urban.com.au/images/2018/8/16/CL%20PP%20SYdney.JPG" alt="">
Over the 2017-18 financial year, 29.6% of houses and 8.% of units sold in Melbourne sold for at least $1 million.
The share of house sales at this price point was higher than the previous financial year (27.6%) while for units it was slightly lower (8.1%).
The share of sales of at least $1 million in Melbourne peaked in March 2018 for houses at 30.6% and peaked in January 2018 at 8.6% for units.
<img src="https://www.urban.com.au/images/2018/8/16/CL%20PP%205.JPG" alt="">
A historic high of 9.2% of houses and 3.3% of units in Brisbane were sold for at least $1 million over the 12 months to June 2018.
The share of sales of at least $1 million has risen quite considerably over the year from 8.1% for houses and 2.8% for units a year ago.
 
<img src="https://www.urban.com.au/images/2018/8/16/CL%20PP%206.JPG" alt="">
Over the 12 months to June 2017, 5.3% of Adelaide houses and 1.8% of units had been sold for at least $1 million.
12 months later, the share of sales within this price point had increased to new record-highs of 5.9% for houses and 2.0% for units.
<img src="https://www.urban.com.au/images/2018/8/16/CL%20PP%207.JPG" alt="">
Despite ongoing declines in values over recent years the share of sales of properties for at least $1 million in Perth has increased over the year.
In June 2017, 10.9% of houses and 3.8% of units sold for at least $1 million compared to 11.1% and 3.7% respectively in June 2018.
The share of houses sold for at least $1 million peaked in April 2018 at 11.3% while the share of unit sales over $1 million peaked at 5.6% in April 2008.
<img src="https://www.urban.com.au/images/2018/8/16/CL%20PP%208.JPG" alt="">
With Hobart dwelling values having surged over the past year there has been a substantial increase in the share of house sales of at least $1 million.
Over the 12 months to June 2018, 3.7% of all houses sold and 1.2% of all units sold transacted for $1 million or more.
The share of house sales of $1 million or more was a record high and up from 2.6% of all sales a year earlier.
The share of $1 million unit sales increased from 1.0% a year earlier but has eased back from a peak of 1.3% in January 2018.
<img src="https://www.urban.com.au/images/2018/8/16/CL%20PP%209.JPG" alt="">
As Darwin dwelling values have fallen over recent years so too has the share of sales of properties for at least $1 million.
At the peak in February 2015, 5.9% of all house sales were at least $1 million while for units, the peak of 3.1% of all sales occurred in August 2015.
Over the past 12 months, 3.8% of all house sales were at least $1 million which was steady over the year while 0.9% of all unit sales were seven figures over the past year compared to 1.4% a year ago.
<img src="https://www.urban.com.au/images/2018/8/16/CL%20PP%2010.JPG" alt="">
Over the 2017-18 financial year, 14.1% of all house sales and 2.5% of all unit sales in Canberra were at least $1 million.
The 14.1% of house sales for at least $1 million was an historic high while the share of seven figure sales of units peaked in March 2016 at 3.1%.
The share of $1 million house and unit sales both increased over the year from 12.0% and 1.9% respectively.
In closing, with dwelling values declining and much more rapid declines across the most expensive housing stock it is reasonable to expect the share of $1 million sales to trend lower over the coming year.
This will largely be driven by weakening in Sydney and Melbourne. Smaller capital cities are also likely to continue to see the share of $1 million sales climb further too.
<img src="https://www.urban.com.au/images/2018/8/16/CL%20PP%2011.JPG" alt="">
Cameron Kusher is a CoreLogic research analyst 
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