Sky high demand for units but approvals remain in the doldrums
As the cash rate eases, demand for this increasingly popular housing choice is set to soar
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High density housing supply will fall significantly short of demand by 2027, CoreLogic predicts, leaving first homebuyers and investors out in the cold.
The CoreLogic Property Pulse report, authored by economist Kaytlin Ezzy, said the State of the Nation report released by the National Housing Finance and Investment Corporation forecast a national housing deficit of 175,000, with a 59 percent shortfall in unit supply.
Ms Ezzy said this comes as the market is increasingly turning to high density housing as a solution to Australia’s residential supply woes.
“The continued reliance on the unit sector to deliver fresh housing stock is particularly evident across some of Australia’s largest capitals, including Sydney and Melbourne, as well as the ACT, where limited land supply has made further development of low-density dwellings increasingly difficult,” Ms Ezzy said. “The medium to high-density sector is increasingly becoming an important tool in delivering additional housing stock for Australia’s growing population, especially as households continue to congregate in metropolitan areas.”
According to CoreLogic estimates made in August, units account for 30.4 percent of capital city housing stock. However ABS data shows a continuing decline in construction approvals, with July figures recording a -19.9 percent fall compared with the previous month and -39.8 percent below the decade average.
Ms Ezzy said the trend was set to continue.
“Despite surging demand, developers and consumers alike are exercising a more cautious approach in light of uncertain economic conditions, weaker capital gains, high construction costs, a tight labour market for trades and rising interest rates,” Ms Ezzy said. “With fewer unit projects set to move through the construction pipeline, it’s likely completions will continue to ease, with units making up a smaller portion of new housing stock over the coming years.”
While current concerns among buyers in regard to higher interest rates and an uncertain economic outlook have kept the lid on prices despite growing demand, Ms Ezzy said that could change next year.
“With the cash rate potentially easing in 2024, greater purchasing demand could fuel a stronger price boom in the unit market at this time,” she said.
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A landmark Watsons Bay residence formerly owned by businessman Mark Bouris has returned to the market, bringing one of the harbourside village’s most distinctive homes back into play.
The five-bedroom property at 23 Robertson Place occupies 654 square metres opposite Robertson Park, within footsteps of Watsons Bay Beach, the ferry wharf and the celebrated restaurants lining the foreshore.
Its position places the home at the centre of one of Sydney’s most recognisable harbour villages, yet its substantial proportions, private outdoor areas and garaging give it a degree of separation rarely found so close to the waterfront.
The residence was previously owned by Bouris, the founder of Wizard Home Loans and chairman of Yellow Brick Road. Property records show it last changed hands in November 2013 for $7 million, having sold for $890,000 in 1995.
That 2013 transaction was handled by prestige agent Bill Malouf through Highland Double Bay. Bouris was the vendor when the home last sold.
Architect Malcolm Sholl designed the contemporary residence around a fluid connection between its interiors and outdoor entertaining areas. Extensive glazing draws natural light into the principal rooms, while district views take in the Sydney Harbour Bridge.
Travertine flooring extends through the principal living areas and out towards the terraces, reinforcing the relationship between the home and its coastal setting.
At the centre of the residence is a marble kitchen equipped with Gaggenau gas appliances and an integrated Miele coffee machine. It connects to expansive open-plan living and dining areas designed for both family life and large-scale entertaining.
Five double bedrooms are accompanied by three bathrooms and a guest powder room. Informal living spaces include a home cinema.
Outside, there’s a 23-metre lap pool and an alfresco entertainer’s terrace. Internal access from the garage and accommodation for four cars are especially valuable in the tightly held village location.
The address also carries an unusual fragment of local architectural history. Woollahra planning material identifies portions of an early Victorian cottage dating from about 1839 within the contemporary three-storey residence, placing the property within the wider Watsons Bay heritage conservation area.
The home made headlines for another reason in January 2025, when a Ferrari left the road and struck the property. Two occupants of the vehicle were taken to hospital following the incident.
The Agency’s Ben Collier has a $20 million guide.
Watsons Bay remains one of Sydney’s smallest and most tightly held prestige markets. There have only been two house sales in the suburb so far in 2026. The suburb record was set late last year when yachtie Linda Goddard paid $35.5 million for a Pacific Street waterfront.
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