According to The Australian Financial Review, the gap between house and unit prices has narrowed in most capital cities since the RBA started raising interest rates in May, as buyers turn to high density amid worsening affordability, data from CoreLogic shows.
The premium for Sydney houses over units shrunk by 2.2 percentage points to 67 per cent in July, reflecting the faster and deeper deterioration in detached housing values.

https://www.afr.com/property/residential/gap-between-house-prices-and-units-narrows-20220824-p5bcg4
 

According to The Australian Financial Review, more than half of all unit markets nationwide and a third of all house markets are now achieving high enough rental yields to generate a positive cash flow, as the sharp rise in rents and falling prices offset the increase in mortgage rates, data from CoreLogic shows.
In NSW, rental houses in 131 suburbs or one in seven of all suburbs analysed are now achieving positive cash flow, amid large increases in rents.

https://www.afr.com/property/residential/the-suburbs-where-landlords-are-reaping-positive-cash-flow-20220817-p5bah6

 

According to The Australian Financial Review, the housing downturn could be over in the next 12 months – a significantly shorter run than previous cycles – but prices are set to fall sharply in the meantime as interest rates jump higher, experts say.
The subsequent recovery is also forecast to be slower, and it will take years before prices hit a new high.
Shane Oliver, AMP Capital chief economist, said the bigger and faster rate rises, high inflation, poor affordability and surging supply would fuel steeper declines in house values in the next six to nine months.
“Our base case is for prices to fall 20 per cent top to bottom, assuming the interest rate will peak at 2.6 per cent, but there is a risk that it could go up to 3 per cent and above, which will trigger sharper price declines,” Dr Oliver said.

https://www.afr.com/property/residential/investors-brace-for-years-of-slow-housing-market-recovery-20220810-p5b8qz
 

 

According to The Australian Financial Review, Monark Property Partners, the real estate financier backed by Melbourne’s ultra-wealthy Liberman family, has invested in an $80 million housing estate in the city’s south-east that will emit no carbon and be powered only by electricity.
The greenfield project to be delivered on a 9.2ha site next door to the Ranfurlie Golf Course in Cranbourne West, is the first joint venture between Monark and Resolution Property Group headed by Jeremy De Zylva and Frazer East.

https://www.afr.com/property/residential/liberman-family-backed-monark-to-invest-in-zero-carbon-housing-estate-20220801-p5b66w

 

According to The Australian Financial Review, surging construction cost inflation that is making projects unviable and causing developers to shelve them will ease next year as a global weakening in demand softens prices, helping calm inflation in the wider economy, according to fresh forecasts from consultancy RLB.
Construction cost growth should slow from 11.5 per cent this year to 5.5 per cent in calendar year 2023 in Gold Coast alone, while in Melbourne it will halve from 8 per cent to 4 per cent and drop from 6.9 per cent to 3.9 per cent in Sydney, the quantity surveying firm’s International Report Q2 2022 forecasts show.

https://www.afr.com/property/commercial/why-building-cost-inflation-is-set-to-ease-from-next-year-report-20220727-p5b50p

 

According to The Australian Financial Review, record low vacancy rates and rising demand for warehouse space going into Christmas are expected to heap more pressure on industrial rents, after they accelerated at their fastest annual rate in more than three decades in the second quarter of this year.
New figures from JLL show prime industrial rents rose 6.22 per cent between April and June to be up 14.9 per cent on an annual basis.

https://www.afr.com/property/commercial/industrial-rental-growth-hits-33-year-high-as-christmas-pain-looms-20220721-p5b3dv

 

According to The Australian Financial Review, Mitsubishi’s inking of a long-discussed “trophy” deal with Lendlease to take a two-thirds stake in the $3 billion One Circular Quay project follows the resumption of high-level business travel between the two countries and other transactions frozen by pandemic restrictions will follow.
Construction – by Lendlease – is due to start “immediately” on the project comprising a 59-level luxury residential tower designed by the late Australian architect Kerry Hill, and a second tower developed as a 220-room luxury hotel designed by Kengo Kuma & Associates.
The completion would be in financial year 2027, the company said.

https://www.afr.com/property/commercial/lendlease-mitsubishi-estate-buy-one-circular-quay-for-800-million-20220714-p5b1kl

 

According to The Australian Financial Review, a glut of unsold homes in Sydney and Melbourne is forcing sellers to discount their asking prices and creating bargains for buyers willing to take the risk of prices falling further, as the largest housing market correction in at least 40 years accelerates.
Clearance rates in Sydney have fallen below 50 per cent for the first time since the market was shut down by the pandemic. Before that, it was in the latter part of the downturn between 2017 to mid-2019 when clearances rates last went below that level.

https://www.afr.com/property/residential/buyers-and-sellers-buckle-up-for-the-biggest-correction-in-40-years-20220708-p5b03o

 

According to The Australian Financial Review, housing boom gains in Sydney and Melbourne, made through the pandemic, could be wiped out by July next year, as higher interest rate rises trigger a sharper decline in prices, experts say.
The CoreLogic home value index for June shows Sydney house prices have dropped by 1.6 per cent in June, faster than monthly declines seen during the 1980s recession and close to the price falls recorded during the 2018 to 2019 downturn, said Shane Oliver, AMP Capital chief economist.
“By the way prices are going, I think Sydney, Melbourne, Canberra and nationally could fall by 15 per cent to 20 per cent, while Brisbane and Adelaide could drop by 15 per cent,” said Dr Oliver.

https://www.afr.com/property/residential/house-price-gains-could-be-wiped-out-by-july-next-year-20220630-p5axwt

 

According to The Australian Financial Review, the NSW budget housing policies will give a shot in the arm to outer-suburban houses and inner-city apartments as the stimulus spreads across different housing types, CoreLogic director of research Tim Lawless said.
The twin stimuli for first home buyers of a shared equity scheme and the opportunity to pay an annual land tax instead of an upfront stamp duty would play out most strongly in lifestyle areas such as the Central Coast and affordable areas where prices were lower, Mr Lawless said.

https://www.afr.com/property/residential/sydney-units-central-coast-and-outer-suburban-homes-get-budget-boost-20220621-p5avf8