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The luxury property boom in London is unsustainable, according to Grosvenor Group, the £5.8 billion investment group.
It told Reuters that the rate of luxury home price growth in London looks shaky after years of foreign investment in the safe-haven market.
Luxury home prices there have increased 53% since 2009 compared to 25% in the rest of Greater London, according to Knight Frank.
The influx of cash came as investors sought refuge from Europe's debt crisis and political uncertainty in the Arab world and Russia.
"The extremely high rate of growth over the last two, three years is a thing I'm concerned about and I think it's probably unsustainable," Grosvenor's chief executive Mark Preston told Reuters last week.
"As those crises recede then perhaps there's less interest in capital moving internationally for safe haven reasons.  (And) we're reaching values in prime London that are just extremely high by historic standards."
He said the group would now focus on diversifying the business by investing in Canadian residential and British rental homes to offset the risk of slowing price growth in the luxury housing market.
According to Knight Frank, London is the third most expensive place in the world to buy a house after Monaco and Hong Kong.
Grosvenor Group owns most of London's upscale Mayfair and Belgravia districts. It is headed by Gerald Grosvenor - the Duke of Westminster – with a £7.4 billion fortune. 
Last month the group sold a 50% stake in the Brisbane tower 400 George Street to South Australia’s Motor Accident Commission for $195.8 million. It is also looking sell the Bank of Queensland building at 259 Queen Street for a reported $190 million.
And, along with Leighton Properties, it sold the Eclipse Tower in Parramatta to REST Industry Super for $167.5 million last November.
According to Reuters, its London estate, which it has owned for more than 300 years, comprises 300 acres of Mayfair and Belgravia with more than 1,500 homes, shops and offices as well as investments in China, Europe and North America and a fund management arm.
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London luxury property market price growth unsustainable: Grosvenor Group

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Demand for apartments could slow in favour of houses as the 20 to 34-year-old segment of the population move onto the next stage of their lives, according to new research by BIS Shrapnel.
The age bracket, which it labels the echo baby boomers, has been driving apartment occupancy for the last 10 years, according to its Emerging Trends in Residential Market Demand report.
At the same time, it found there has not been any major evidence of an increase in the rate of downsizing by those aged 65 and over.
The age-bracket has been over-represented in demographic make-up of Australia as the children of the baby boomer generation grow up while overseas migration is strong in that age bracket.
“The growth in the 20-to-34 year old group has fuelled occupancy of units and apartments in the inner and middle suburbs of the capital cities over the past decade, mainly as renters,” says BIS Shrapnel senior manager Angie Zigomanis.
“However, as this group increasingly moves into their late 30s and early 40s in the coming decade and enters their next life stage, the question is whether they will still live in medium and high density dwellings.”
According to the 2011 Census, around 63% of households with a household head aged 20 to 34 years old lived in detached houses, but this figure is 80% for households where the household head is aged 35 to 49.
And 71% of households among 35 to 49 year olds were families with children, compared with only 39% of 20 to 34-year-old households.
“Assuming the current 20 to 34 year olds in multi unit dwellings move on to separate houses, as has already been evident among 35 to 49-year-old households, then this will translate to higher demand for new detached houses,” says Zigomanis.
“This would provide some relief for land developers, builders and building materials suppliers who mainly service the detached house market and have found the going tough in recent years – although the challenge will be for all stakeholders to ensure that the greenfield land market will be able to meet this potential increase in demand.”
<img alt="bisshrapnelapril22one" height="320" width="470" src="/images/stories/2013/04/bisshrapnelapril22one.jpg">
But BIS Shrapnel does propose an alternative future where apartment dwellers grow to like living in apartments and don’t move on to houses, thereby increasing the average age of those living in apartments.
This would drive demand for apartments appropriate for family with young and growing children, offering more space, both indoor and some outdoor, or located adjacent to public outdoor spaces.
“It could also trigger greater renovation activity as the emerging 35 to 49 year olds who still want a house purchase in established areas and tailor the house to their needs,” Zigomanis says.
BIS Shrapnel says this alternative theory is currently online likely in New South Wales where households have much a higher propensity to live in townhouses, units and apartments.
In Queensland, Western Australia, and South Australia the demand for apartments won’t be as strong, while the jury is still out on Victoria.
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Ageing echo baby boomers may temper apartment demand: BIS Shrapnel

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Investors could be given the keys to the prison cells of the Pymble police station. The heritage listed building has been listed for sale at more than $800,000.
The brick building on a corner block opposite Pymble railway station is being marketed as a commercial site.
The lock-up, at <a target="_blank" href="https://richarddutton.com.au/real-estate/property/622977/for-sale/house/nsw/pymble-2073/1116-pacific-highway/">1116 Pacific Highway</a>, was recently rezoned to high density development but it retains the option of business or office usage with consent.
Agent Laurie Castorina from Professionals Berowa markets the property as being suitable for medical, para-medical, professional occupancy and possibly restaurant uses.
But he says it could equally be converted into a family home, though it may be a squeeze getting a double bed into one of the two prison-cells.
It includes a reception area, three offices, an open plan office, a staff room, male and female toilets and showers and basement storage areas.
The <a target="_blank" href="/news">Pymble</a> property also has two garages and on-site parking at the rear.
Castorina says this “charming home” still includes most of its original features including four fireplaces. It comes on 465 square metres.
In 1988 the station was named the efficient station in the northern region which covers stretch of coast from Sydney Harbour to Tweed Heads.
The award found the station had a high standard of service, firm leadership and a commitment to the principles of policing.
Police moved out of the station in 1994 after finding the quarters too cramped.
"We have 42 police and five auxiliary staff at Pymble and we need more space," Inspector Abbott told Fairfax Media at the time.
"There has been a lot of housing development in Pymble and surrounding areas in the last 10 to 20 years, and our workload has increased substantially."
At that time Pymble Police Station served 75,000 people.
It’s not the only police station on the market right now though.
Less cashed up police station enthusiasts could spend $125,000 on the <a target="_blank" href="https://www.domain.com.au/Property/For-Sale/House/VIC/Willaura/?adid=2010259839">former Willaura police station</a>, $470,000 on the <a target="_blank" href="https://www.realestate.com.au/property-house-sa-mclaren+vale-112865451">former McLaren Vale police station</a>, or try their luck at the auction of the former <a target="_blank" href="https://www.realestate.com.au/property-house-vic-seaford-113109487">Seaford police station</a>. Those looking to lease could try the <a target="_blank" href="https://www.commercialview.com.au/2-24-burleigh-street-burwood/commercial-lease-details-5409557">former Burwood police station</a> at $45,000 per annum.
And the <a href="https://www.propertyobserver.com.au/victoria/old-bluestone-carlton-police-station-with-squizzie-taylor-links-listed-by-state-government/2013041860481" target="_blank">police station which held Melbourne's notorious Squizzie Taylor </a>has been listed for sale by the state government.
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Former Pymble police station offered with cells included

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Investors in the Gold Coast can earn yields of up to 6.4% on units, according to data by the Real Estate Institute of Queensland.
Units in <a href="/news">Upper Coomera</a> have a median price of $270,000 and a weekly rent of $335 giving gross yields of 6.4%, according to the REIQ.
According to RP Data, the median price for units dropped 18.4% in the last year.
Online real estate unit listings are few and far between for the suburb. According to the 2011 census, there are 7,128 dwellings in Upper Coomera, but 82.5% of those were houses.
A three-bedroom unit at <a href="https://www.realestate.com.au/property-unit-qld-upper+coomera-113377803" target="_blank">10/8A Clydesdale Drive Upper Coomera</a> (pictured below) is listed for sale at $270,000 to $300,000. It currently rents at $360 per week giving a potential gross yield of 6.93%.
<img alt="coomeraapril22one" height="307" width="470" src="/images/stories/2013/04/coomeraapril22one.jpg">
A four-bedroom townhouse at <a href="https://www.realestate.com.au/property-townhouse-qld-upper+coomera-112148839" target="_blank">96/1 Sauvignon Parade Upper Coomera</a> sold in February for $260,000. It was advertised for rent at $385 per week in November giving a potential gross yield of 7.7%.
Units in Merrimac and Robina – postcode 4226 – have gross yields of 6.2%, according to the REIQ. The median price in that postcode is $340,814 with a median weekly rent of $403.
A one-bedroom retirement unit at <a href="https://www.realestate.com.au/property-retirement+living-qld-merrimac-112843583" target="_blank">304/5 Bourton Rd Merrimac</a> is listed for sale at $125,000. It is currently rented at $350 per week giving a potential gross yield of 14.56%.
A three-bedroom unit at 10/23 Bourton Road Merrimac sold in November for $307,000. It was listed for rent at the same time for $385 per week giving a potential gross yield of 6.52%.
A three-bedroom unit at <a href="https://www.realestate.com.au/property-unit-qld-robina-111741935" target="_blank">33/12 Promenade Avenue Robina</a> is listed for sale at $375,000 to $399,000. It currently rents at $410 per week giving a potential gross yield of 5.69%.
A two-bedroom unit at <a href="https://www.realestate.com.au/property-apartment-qld-robina-109337956" target="_blank">117/25 Lake Orr Drive Robina</a> is listed for sale at $200,000. It currently rents at $400 per week giving a potential gross yield of 10.4%.
And Oxenford, in the west, has yields of 6.1%, according to the REIQ. It has a median price of $260,000 and a median rental of $305.
A three-bedroom unit at <a href="https://www.realestate.com.au/property-unit-qld-oxenford-112741787" target="_blank">23/1-2 Carnarvon Court Oxenford</a> (pictured below) is listed at $280,000. It currently rents for $360 per week giving a potential gross yield of 6.69%.
<img alt="coomeraapril22two" height="346" width="470" src="/images/stories/2013/04/coomeraapril22two.jpg">
A two-bedroom unit at <a href="https://www.propertyobserver.com.au/https://www.raineandhorne.com.au/financial/properties/259246" target="_blank">2/14 Illusion Court Oxenford</a> sold for $227,000 on February 6. It was advertised for rent at $310 per week giving a potential yield of 7.1%.
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Upper Coomera units offer highest yield prospects amid top eight Gold Coast suburbs

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The former V8 Supercars driver Steven Johnson, son of Dick Johnson, has relisted his Maudsland home, 16 kilometres inland from the Gold Coast.
The five-bedroom house, at <a href="https://www.realestate.com.au/property-house-qld-maudsland-113510275">28 Lagoon Park Drive</a>, has 900 square metres of living space.
The fully automated house comes with ensuites for every bedroom, a luxury home cinema, a guest house, multiple garages for nine vehicles and a 19 metre swimming pool adjoining an impressive outdoor living and entertainment area with a six-person spa and a teppanyaki bar.
It is in a Riverstone Crossing Estate in <a href="/news">Maudsland</a>, an exclusive community with its own security guards, an environmental maintenance team, its own gym and leisure centre, and sporting grounds. Any buyers will have to pay $52.51 per week in community costs.
Johnson bought the property for $575,000 in December 2007.
According to RP Data, Johnson had the property listed for sale from May 2011 to March 2012 without selling – 280 days.
It goes to auction on May 12.
The property was designed Steven and his wife Bree for entertaining as well as family time with their children Jett and Lacy.
"I wanted more space for motorbikes and my son races go karts and we have a tinny and other equipment -- I wanted the man shed so to speak I guess," Johnson told The Gold Coast Bulletin.
"There's no people out here. With the racing side of things it's very hectic and there's a lot of people around so when I come home I don't feel like I need to deal with people, I can come home and relax without a neighbour at the back fence asking how I went in my last race."
Johnson, nicknamed Junior, debuted at the Australian Touring Car/V8 Supercar Championship Series in 1994 and has had 366 race starts, three race wins and 11 podium finishes.
He announced his retirement from V8 Supercars earlier this year.
He currently competes in the Australian Carrera Cup Championship.
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Former V8 Supercars driver Steven Johnson lists Queensland home

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{qtube vid:=PSh3sIVXZ5I&amp;feature}
In this week’s Purchase or Pass we check out the pros and cons of a potential investment property and get the panel’s view on whether we would choose whether to buy or not based on our own personal property investing criteria.
This week we have a <a target="_blank" href="https://www.propertyobserver.com.au/https://www.mcgrath.com.au/buy/apartment-bronte-nsw-2024/169285">two-bed, one-bath unit in a small block of four</a>, seven kilometres from the city and just over one kilometre from the local shops and leisure facilities. The property presents very well and so would be perfect for tenant to move into straight away. It’s on the ground floor and the main bedroom opens out onto a covered balcony. The main debate on this unit will be that there is no specific allocated parking – it’s scattered parking worked on a first in best dressed basis and there’s only two spots for the four units.
So John, I guess the first issue there aside from the parking is whether everything hits the right criteria. It’s the right location, it’s obviously well presented, it’s a nice block of four, all of those things are pretty straight forward.
John: It’s very modern today. The whole unit is looking pretty good in terms of its presentation and obviously there’s air-conditioning as well.
Chris: Now we talk about this parking quite a lot. There are lots of different types of parking. It can be on title, it can be not on title, it can be scattered parking or no parking. This one is quite different. Here we have two spots for the four units. Does it really matter if there’s one spot, two spots or three if there’s no guarantee does it really matter what your chances are?
John: I don’t think it does. The other thing that I would point out about that block of units is if you look at it it’s an older style and you have a very large land content for a small block of units. So from my point of view I would love to actually buy the whole block and not just a little bit of it. And you can also see that you could actually cut into the land to actually create parking both at the front and back of it. So it allows a lot of development application. I wouldn’t be excessively worried about the parking however.
Chris: I’ve seen some places like Tamarama in Bondi that have the most amazing views and people have looked at really digging into the ground and building it. It might cost something like $200,000 per car park that they’re creating but in those kind of areas it’s actually worth spending that kind of money if you have a $2 million or $3 million apartment.
John: Obviously what you have to do in a situation like this where there is limited car parking is actually look where the car parking facilities are on-street and if the on-street parking isn’t too bad then don’t worry.
Chris: One of the tell-tale signs for me is I looked up on the internet and I found it took actually 109 days to sell this uni. So originally they were after $650,000-plus and then it was advertised for $600,000-plus. Now they actually sold it for $663,000 so they got the right price which is pretty good, but 109 days to me that’s a big tell-tale sign that either the parking or something else isn’t quite right.
John: I think it’s probably two things going on there. I think it’s probably the parking having an some impact on it and at the same time, the mere fact that they had to reduce it and probably even the $663,000 that they sold it for is probably still over the top a little bit. So I think those two things are probably influenced the overall outcome that we have.
Chris: So purchase or pass for you?
John: Well I think I’m balanced depending given the poor parking that is there and the fact that it sold in 109 days, I really want something that would sell much faster than that so I’m going to pass.
Chris: And look that was the same thing for me. I think the days it took to sell tells the whole story here. If I’m going to buy an investment property I want to know that it can be sold in an instant if I needed the cash and 109 days is just too long for me. But well done to them for getting the right price. So I’m going to pass.
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Purchase or Pass? A Bronte unit with scattered parking: Chris Gray and John Edwards

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Economist David Bassanese says the Reserve Bank of Australia will cut interest rates again despite effects from rate cuts being already seen.
The Australian Financial Review columnist says rising unemployment from the mining and manufacturing industries will force the RBA to lower rates again by the end of the year.
“It’s true that asset prices especially are responding to lower interest rates, but whether this will be enough to contain unemployment in the face of the looming mining sector downturn and extreme pain from the high exchange rate remains to be seen,” Bassanese wrote today.
He says the rate cuts are having an effect on the interest-rate sensitive sectors of the economy including a moderate lift in housing demand.
Auction clearance rates lifted to their highest level since mid-2010
“As I’ve argued since last year, rising established house prices are exactly what we should be expecting at this stage. After all, measures of home mortgage affordability are below long-run average levels,” he wrote.
“My call has been that a 10% to 15% pop higher in nationwide house prices is possible by early 2014.”
He said with non-mining sector parts of the economy picking up house price growth will be more pronounced in Sydney and Melbourne.
This will lead to increased confidence and spending despite sluggish employment growth.
And retail spending has been strong so far this year while consumer sentiment remains above long-run average levels.
“So far so good, but serious questions remain over the smoothness of the transition in economic growth from the mining investment boom to non-mining domestic spending,” he wrote.
“In terms of the housing sector, for example, the upturn in home building demand remains reasonably modest and is not yet destined to provide major growth offset from the downturn in mining investment.
“Meanwhile, sectors sensitive to the exchange rate, such as manufacturing and even mining, are also feeling the pinch, with the $A remaining at relatively high levels.”
Holden has announced massive job cuts while Woodside is scaling back LNG operations.
He says the decline in business conditions have been led by the mining sector and there is extreme weakness in manufacturing.
“The labour market reflects this sectoral tug of war. The number of job advertisements measured by ANZ Bank fell in March after two promising monthly gains, while the nation’s unemployment rate ticked up to 5.6%.”
“My call is that unemployment will reach 6% by year end, which should be enough to goad the RBA into cutting interest rates again.”
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Unemployment will force the RBA to cut rates again while house prices set to rise 10%: David Bassanese

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Investors in Queensland stand to earn yields of up to 6.4% on Brisbane units, according to statistics released by the Real Estate Institute of Queensland.

The top ten yielding postcodes for units in Brisbane are led by Brisbane City along with Moorooka and Greenslopes - all with a gross yield of 6.4%.

The median price in postcode 4000, which includes Brisbane City and <a target="_blank" href="/news">Spring Hill</a>, is $438,057 with rents at $542.
Click to enlarge
<a href="/images/stories/2013/04/reiqapril18one.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2013/04/reiqapril18onethumb.gif"></a>
Property Observer undertook a survey of current rental listings to ascertain the actuality of the statistically derived figures with the live marketplace. The random results suggest a correlation, with perhaps the weakest being Greenslopes.
In Brisbane City a two-bedroom, two-bathroom unit in <a target="_blank" href="https://www.realestate.com.au/property-apartment-qld-brisbane+city-113556795">347 Ann Street</a> (pictured below) is listed for sale in the mid to high $400,000s. It currently rents via a corporate letting firm for $540 per week unfurnished. If it sold for $475,000 it would give a potential gross yield of 5.91%.
<img src="/images/stories/2013/04/reiqapril18two.jpg" width="470" height="350" alt="reiqapril18two">
It is being sold by Alexander Veal from Next Property Group Brisbane.

Also in Brisbane City is a two-bedroom, two-bathroom unit in <a target="_blank" href="https://www.realestate.com.au/property-apartment-qld-brisbane+city-113454399">120 Mary Street</a> is listed for sale at $489,000. Marketing for the property suggests a potential rental of $660 to $690 per week giving a potential gross yield of 7.34%.

It is being sold by Tom Kralikas from North South Real Estate.

And <a target="_blank" href="https://www.realestate.com.au/property-unit-qld-brisbane+city-113297995">unit 1003 at 92 Quay Street</a> Brisbane City is listed for sale at more than $495,000. It currently rents at $650 per week giving a potential gross yield of 6.83%.

It is being sold by Justin Hagen from Calibre Real Estate.

<a target="_blank" href="/news">According to RP Data</a> Brisbane City unit prices increased 4.3% in the last year.
 
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The median price in <a target="_blank" href="/news">Moorooka</a>, six kilometres south of the CBD, is $287,500 with rents at $355 per week, according to the REIQ.

A two-bedroom <a target="_blank" href="https://www.realestate.com.au/property-unit-qld-moorooka-113379479">unit 1 at 28 Hamilton Road</a>, Moorooka, (pictured below) is listed for sale at more than $279,000. According to RP Data it was last listed for rent at $340 per week in January 2012. This would give a potential gross yield of 6.34%. It last traded for $200,000 in 2010.
<img src="/images/stories/2013/04/reiqapril18three.jpg" width="470" height="349" alt="reiqapril18three">
It is being sold by Wayne Hankinson from Go Gecko.

A two-bedroom <a target="_blank" href="https://www.realestate.com.au/property-unit-qld-moorooka-113034435">unit 2 at 116 Chaucer Street</a> Moorooka is listed for sale at more than $390,000. According to RP Data it was last listed for rent at $400 per week in 2012. This would give a potential gross yield of 5.33%. It last traded for $390,000 in 2009. 

It is being sold by David Cotterill from Belle Property.

The median price in <a target="_blank" href="/news">Greenslopes</a>, 4.5 kilometres south of the CBD, is $293,500 with rents at $362 per week, according to the REIQ.

A two-bedroom unit at <a target="_blank" href="https://www.realestate.com.au/property-unit-qld-greenslopes-113581675">3/58 Douglas Street</a> Greenslopes is listed for sale at more than $310,000. It is currently rented at $290 per week giving a potential gross yield of 4.86%. 

It is being sold by Di Dent from Harcourts.

A two-bedroom unit at <a target="_blank" href="https://www.realestate.com.au/property-unit-qld-greenslopes-113547943">51/38 Palmer Street</a> Greenslopes is listed for sale at $345,000. It currently rents at $385 per week giving a potential gross yield of 5.8%.

It is being sold by Matthew Griffiths from RE/MAX.

Outside of Brisbane, the highest unit yields in Queensland are found in <a target="_blank" href="/news">Holloways Beach</a> and <a target="_blank" href="/news">Yorkeys Knob</a> in Cairns, as well as <a target="_blank" href="/news">Chinchilla</a> in the Western Downs, both at 8.2%.

The Logan City localities of <a target="_blank" href="/news">Woodridge</a> and <a target="_blank" href="/news">Slack’s Creek</a> are next at 7.8% and 7.7%.
 
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Moorooka, Greenslopes and Brisbane City top the unit yields in Brisbane suburbs: REIQ

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Sentiment within Australia’s property industry is at an 18 month high, according to research by Property Council of Australia and ANZ.
The gains are driven by increased confidence in the housing market and easing financing conditions, according to Property Council of Australia-ANZ Property Industry Confidence Survey.
Across the country overall sentiment is up from 107 last quarter to 124 on the index. A score of 100 is considered neutral.
NSW, VIC, WA and QLD recorded the largest increases in sentiment.
Western Australia leads at 149, followed by Northern Territory at 132, New South Wales at 131, Queensland at 121, Victoria at 117, South Australia at 108, ACT at 96 and Tasmania at 96.
State by state break down as follows:
Victoria
Victoria rose 18 points on the index – the third consecutive rise, but there are concerns about rising construction costs.
The report found rising Victorian sentiment is primarily being driven by the retirement living, industrial and residential sectors, with 58%, 40% and 39% of Victorian respondents expecting increases in construction activity levels over the next 12 months for these sectors respectively.
Property Council Victorian executive director, Jennifer Cunich, says the survey also found the rising cost of construction was a growing concern for the sector, with 46 per cent of Victorian respondents indicating they believe the cost of construction will rise over the next twelve months.
“Rising construction costs undermine project viability, interstate competitiveness and threaten our ability to attract investment,” Ms Cunich says. Unless Victoria gets its construction costs under control, we will continue to loose vital investment and labour to more competitive markets.
“The Property Council hopes next month’s State Budget tackles this challenge by placing downward pressure on construction costs. Reductions in planning delays, industrial disputation and bureaucratic red tape would make a big difference to the sector’s long term outlook and investment levels.”
ANZ Head of Property Research, Paul Braddick says, “the increase in property industry confidence was likely driven largely by an improved outlook for the residential property market, with solid housing sales and positive house price growth in recent months.”
“In addition, a more stable global economic outlook and expectations of increased availability of debt finance are likely to have boosted expectations for construction activity and property capital growth in Victoria,” Mr Braddick says.
“Nonetheless, we expect property industry confidence to be weaker in the coming quarters, weighed down by a soft outlook for the Victorian economy, further slowing in Victoria’s housing construction from the recent peak and a subdued outlook for retail spending and office employment.”
New South Wales
New South Wales rose 19 points on the index.
“Sentiment across the property industry has hit new heights and now sits well above the national average,” says Property Council NSW executive director, Glenn Byres.
“In fact, NSW enjoyed the biggest lift in sentiment of all jurisdictions across the country.
“Positive expectations for national economic growth, availability of debt finance and house price growth have largely fuelled the positive result.
“There are also strong expectations for an increase in staffing levels and forward work schedules across the industry.”
Paul Braddick says, “tight residential property market demand/supply fundamentals, low mortgage rates and solid housing market sales in recent months have driven property industry expectations for house price growth and housing construction higher.”
“However expectations remained varied across sectors with the strongest expectations for capital growth in aged care and commercial office property, while a subdued outlook for retail spending is expected to drive retail property values lower in the coming year,” Mr Braddick says.
 
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Queensland
Queensland jumped 17 points in the index.
“The industry returned to the market with renewed positivity after the new year break,” Queensland executive director of the Property Council of Australia, Kathy Mac Dermott says.
“Responses show that the industry in Queensland expects more positive capital growth in all sectors over the next 12 months.” “House price expectations saw its 3rd consecutive quarter of predicted growth and led the sentiment increase.”
Paul Braddick says, “while property industry confidence remains weighed down by a soft outlook for the coal mining sector and recent job cuts to the state government public service, solid growth in retail sales and house prices in Queensland appear to be partly driving a more optimistic outlook for Queensland’s economy and property sector.”
“The survey results show the net balance of Queensland respondents expect state economic growth to increase and commercial property prices to be higher across all segments in the coming year.”
Western Australia
WA rose 18 points on the index, pushing it well in the lead.
The survey found expectations are at their highest point since the survey’s inception consolidating gains made in the March-quarter survey.
Respondents were positive about expectations for state economic growth, with the index score rising strongly from the March quarter (110) to 132 for the June quarter.
Expectations for house price growth are up across Australia with the strongest survey reading in Western Australia. The WA index climbed from 129 in the March-quarter to finish at 164 for the June-quarter.
Property Council WA executive director, Joe Lenzo, says the standout in the survey numbers was that residential is now the new darling of the property sector in WA.
“After a sustained period of negative and stalled growth the survey numbers anticipate a steady pick-up in residential capital values over the next 12-months.
“We have rebounded from previous quarters when respondents were affected by negative sentiment about the resources sector and what impacts this might have on the housing market in WA.
“The June-quarter results have shown that these jitters have receded with a marked improvement in market confidence.”
Paul Braddick says results were driven largely by the most optimistic outlook for the state economy.
“Despite a softer outlook for WA mining infrastructure spending in the coming year, recent increases in Western Australian housing prices, particularly Perth unit prices, and solid state economic growth have driven high property industry expectations for property prices and construction activity,” Mr Braddick says.
“Respondents revealed a particularly optimistic view for residential property with 80% of respondents expecting residential property prices to be higher in the coming year and 84% expecting residential building activity to be higher over the same period.”
 
<hr class="system-pagebreak">
South Australia
Sentiment rose eight points in the index.
Property Council of Australia South Australia executive director Nathan Paine cautiously welcoms the results, saying that while the lift in sentiment was supported by an improvement in the availability of finance, concerns remained about overall demand levels in the economy.
“While we welcome the positive headline result, respondents’ views of wider economic fundamentals stayed stubbornly bleak, at both the state and federal level,” Mr Paine says.
Respondents’ expectations about the availability of debt finance presented one of the big surprises, with a ten-point turn-around from four points in the negative to six in the positive. This might reflect the growing awareness of patient capital across the globe looking for a secure home. Another notable turn-around was a jump in expectations for housing price growth, a result broadly reflected across the nation.
“While we welcome these “green shoots” of optimism, it is important to note that confidence is a subjective thing, and it is relative,” Paine says.
“These results clearly show that South Australia has room for improvement.”
Paul Braddick says, “the increase in property industry confidence was likely driven by an improved outlook for the residential property market in the June quarter, with the net balance of survey respondents expecting house prices to be higher in the coming year.”
“In addition, survey respondents reported positive expectations for capital growth and construction activity in aged care property, with 51 per cent of respondents expecting aged care property values to be higher in the coming year and 68 per cent expecting aged care construction activity to increase over the same period.”
Northern Territory
Northern Territory rose one point on the index to 132.
The NT’s score on government performance has dropped by 37 index points which is only second to Tasmania, the worst performing state.
Property Council NT executive director, Raquel Nicholls-Skene, says, “now that the NT political situation has settled down and with the implementation of the planning reforms coming into play we expect to see a more positive outlook on the NT Governments performance over the next 3 months.”
“NT still has strong growth however there needs to be some recognition that not all sectors are as buoyant as the industrial sector at the moment.”
Paul Braddick, says the NT’s positive outlook was underpinned by the economic benefits from major energy project investment to demand for labour, property market returns and household income.
“The property sector is already sharing in the Northern Territory economic boom, with Darwin house prices 9.7% higher in the year to February 2013,” Braddick says.
Australian Capital Territory
ACT rose six points in the index to 96, still below the middle ground of 100.
Property Council ACT executive director, Catherine Carter, says the latest survey shows ACT continues to have the lowest sentiment of any mainland state or territory, though this had improved marginally from the March 2013 quarter.
Paul Braddick says respondents in the ACT maintained a broadly negative view of the property sector reflecting a soft economic outlook for ACT.
“With the combination of an uncertain political outlook leading up to the September federal election and a continued unwinding of the 2011 dwelling construction boom likely to have weighed on ACT property industry confidence, 50% of respondents expect ACT economic growth to be lower in the next year,” Braddick says.
 
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Property sentiment at an 18 month high: Property Council of Australia

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Western Australia's retail property sector is experiencing some positive sentiment with expectations for price growth in positive territory for the second consecutive quarter, according to research by Property Council of Australia and ANZ.
Sentiment across all sectors within Australia’s property industry is at an 18 month high, according to a Property Council of Australia-ANZ Property Industry Confidence Survey.
The research found gains are driven by increased confidence in the housing market and easing financing conditions.
Across the country overall sentiment is up from 107 last quarter to 124 on the index. A score of 100 is considered neutral.
NSW, VIC, WA and QLD recorded the largest increases in sentiment.
Western Australia leads at 149, followed by Northern Territory at 132, New South Wales at 131, Queensland at 121, Victoria at 117, South Australia at 108, ACT at 96 and Tasmania at 96.
The report made reference to commercial property in the following states:
Queensland
Queensland jumped 17 points in the index.
“Respondents...expressed a positive outlook for hotels, tourism and leisure product in Queensland for the first time since the survey’s inception,” Queensland executive director of the Property Council of Australia, Kathy Mac Dermott says.
“Similarly, expectations for the retail sector continued their recent positive trend, also rising above 100 for the first time – one of only three states in the country to positively rate the sector this quarter.”
ANZ head of property research, Paul Braddick, says, “while property industry confidence remains weighed down by a soft outlook for the coal mining sector and recent job cuts to the state government public service, solid growth in retail sales and house prices in Queensland appear to be partly driving a more optimistic outlook for Queensland’s economy and property sector.”
NSW
New South Wales rose 19 points on the index.
“NSW enjoyed the biggest lift in sentiment of all jurisdictions across the country,” Property Council NSW executive director, Glenn Byres says.
Paul Braddick, says “tight residential property market demand/supply fundamentals, low mortgage rates and solid housing market sales in recent months have driven property industry expectations for house price growth and housing construction higher.”
“However expectations remained varied across sectors with the strongest expectations for capital growth in aged care and commercial office property, while a subdued outlook for retail spending is expected to drive retail property values lower in the coming year,” Mr Braddick says.
VIC
Victoria rose 18 points on the index.
Paul Braddick says, “the increase in property industry confidence was likely driven largely by an improved outlook for the residential property market, with solid housing sales and positive house price growth in recent months.”
“In addition, a more stable global economic outlook and expectations of increased availability of debt finance are likely to have boosted expectations for construction activity and property capital growth in Victoria,” Mr Braddick says.
“Nonetheless, we expect property industry confidence to be weaker in the coming quarters, weighed down by a soft outlook for the Victorian economy, further slowing in Victoria’s housing construction from the recent peak and a subdued outlook for retail spending and office employment.”
WA
Western Australia rose 18 points on the index.
Property Council WA executive director, Joe Lenzo, says the survey results are strong and that sentiment has benefitted from the re-election of the Barnett Government in WA, which guarantees the development of a number of key property projects in the State.
In construction survey results show respondents expect residential, retail, hotels and retirement construction activity to increase over the next year. Western Australia posted strong expectations for construction activity, including the strongest reading for planning office construction activity.
Commercial office price expectations have improved modestly from the previous quarter. The Perth office market has seen strong investment in-flows from international and eastern-states based investors over the last 12-months.
The retail property sector is experiencing some positive sentiment with expectations for price growth in positive territory for the second consecutive quarter.
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WA retail property sentiment positive as national industry sentiment at 18 month high: PCA

Perth’s new apartment market recorded its strongest quarter of sales since Q4 2021, with 412 apartments sold in Q1 2026 and a record quarterly sold value of $537 million, according to Urbis’ latest Apartment Essentials results.

Urbis said the March quarter result reflects strong, highly product‑specific demand across both ends of the market, from more attainable projects delivering at scale, through to premium stock being absorbed by equity‑rich downsizers.&nbsp;

David Cresp, Partner at Urbis, said the key story in Perth is not demand, it is the market’s ability to convert demand into delivered housing.&nbsp;

“This is the strongest sales quarter since Q4 2021, and it reinforces that demand in Perth is real and it’s local,” David Cresp said. “But the task now is delivery, turning that demand into projects that can actually be built and completed.”&nbsp;

[smartcode_project:default project_id=110291 project_image_fid=302785]

<h2>Affordable product leads, premium demand remains resilient</h2>

Sales in Q1 were led by more affordable projects, with The Boulevard (SKS Group) recording 115 sales in the quarter, the presentation noting this is only the second time a single project has surpassed 100 quarterly sales. The project was able to offer more affordable housing product right next to a train station.&nbsp;

Palmyra West (Finbar) also delivered strong results with 28 sales in Q1, following 84 sales in Q4, with an average price of under $800,000, underscoring depth of demand for well‑located, attainable new stock.&nbsp;

At the premium end, Urbis said downsizer demand is continuing, with the results highlighting Romeo (Applecross, Finbar) recording 75 sales and reaching almost 50% sold in one quarter.

Jual (Shenton Park, Celsius Property) also posted a strong quarter with 28 sales, reaching 39% sold in one quarter.

Urbis noted that Perth apartment demand is not speculative, not investor‑led, and not uniform, describing it as localised, often equity‑driven and highly product‑specific, a pattern reflected in the polarisation between strong “attainable” performers and premium downsizer product.&nbsp;

[smartcode_project:default project_id=148957 project_image_fid=364102]

<h2>Prices underpinned by costs, and the delivery risk is growing</h2>

Urbis said pricing pressure is cost not demand‑driven: construction costs and delivery risk are now a central constraint, with the results noting build costs remain elevated and volatile, and that energy, fuel and labour uncertainty weigh on feasibility.

David Cresp said a growing challenge for private Build‑to‑Sell developers is simply securing a builder in the current environment.

“Developers are really feeling the pressure from a building market that was operating at capacity and securing a builder is challenging,” David Cresp said, adding that even where a builder can be secured, “trying to get to the price that makes the development financially viable is incredibly challenging in the current market.”&nbsp;

Urbis’ broader WA commentary also notes that industry remains at or above capacity with lot and housing creation, and that many builders are limiting new sales to manage stretched workforces and fixed‑price contract pressures, conditions that flow directly into apartment feasibility and delivery timing.

[smartcode_project:default project_id=108869 project_image_fid=317905]

<h2>Supply: improving later, but still constrained, and Perth lags eastern benchmarks</h2>

While near‑term supply remains constrained, Urbis’ forecast shows completions lifting “Supply is forecast to be back above 1,500 apartments per annum for the first time since 2019”, with 1,775 completions forecast for 2026, and volumes remaining above that level over the following years.&nbsp;

Looking further ahead, completions are forecast to reach 2,500 in 2028, with the report noting 32% of that total is social/affordable, reflecting the role of government‑supported delivery in rebuilding the pipeline.&nbsp;

However, Urbis said Perth remains behind comparable markets on pipeline scale. In a national comparison of projects under construction, the report shows under construction Perth Build‑to‑Sell (BTS) at 3,446 apartments versus the Gold Coast at 7,922. Mr Cresp said “The challenge for Perth is how to we grow the delivery pipeline”.

Urbis’ conclusion is that Perth’s market is increasingly defined by product discipline and delivery certainty, with the research identifying “delivery certainty is key” and calling out builder risk and procurement models as core success factors, alongside “timing and staging”.&nbsp;

Joel Robinson

Perth apartment sales hit strongest pace since late 2021 as builder capacity tightens

<a href="https://www.apartments.com.au/developers/sammut-developments">Sammut Group</a> has secured development approval for its latest Brisbane apartment project, marking the Sydney developer’s next step in expanding its Queensland pipeline following the success of its debut Gold Coast development, Coast.

The approved project at <a href="https://www.apartments.com.au/new-apartments/44-glen-road-toowong-qld-4066">44 Glen Road, </a><a href="https://www.apartments.com.au/developments/toowong-qld-4066">Toowong</a> will deliver a 15-storey riverfront apartment building with 42 residences, significantly increasing the scale of the site’s previous approval for a smaller luxury scheme. Designed by Bureau^proberts, the development will comprise a mix of predominantly four-bedroom and two-bedroom apartments positioned to maximise Brisbane River and city views.

Sammut Director Julian Sammut said the group had been actively searching Brisbane for several years before identifying Toowong as the right fit.

“Brisbane was the right step for Sammut,” Sammut said.

“With the success of Coast we thought we should definitely look to do more in Queensland alone. We then pushed up to look at Brisbane. We've been looking for I'd say two to three years actually and it was hard to find the right location.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-23%20at%203.27.14%E2%80%AFPM.png?VersionId=dYAVIL7qdcGA8ojvkslSrLjczXFejSSx" />

Sammut said suburbs including New Farm and Teneriffe were considered before the group ultimately focused on Toowong due to its strong downsizer demographic and limited supply of developable riverfront land.

The site was acquired off-market after what Sammut described as a lengthy negotiation and planning process, with the developer pursuing an uplift to the original approval.

“We are DA approved now which is very exciting,” Sammut said.

“We've had our change approval come through and we've obviously doubled the height, 15 storeys plus rooftop. We've got 42 amazing apartments that are going to be coming to market soon.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-23%20at%203.27.26%E2%80%AFPM.png?VersionId=ohkRkY0dIZlqdfME2EZePsCQavRiBadE" />

Bureau^proberts said the design responds to Toowong’s evolving urban character, balancing contemporary apartment living with the area’s established residential identity.

“A place where traditional Queensland living has taken place for centuries; Toowong is seeing a shift of contemporary influence, commercial and retail hubs mixed with well-considered residential offerings – all the while maintaining its character and charm,” the architect noted in planning documents submitted to Brisbane City Council.

The architecture practice said the project’s form was shaped by its riverfront setting, flood considerations, neighbouring building scales, and view corridors.

“They said the mix of four and two-bedroom apartments capture the ‘fundamental qualities of Queenslander living,’ translated into the context of a contemporary subtropical building.”

The development sits just off Coronation Drive within walking distance of Toowong’s retail precinct and the upgraded Regatta ferry terminal, while also benefiting from proximity to the incoming green bridge connection to West End. Sammut said the accessibility and amenity offering were central to the site’s appeal.

The approval adds to growing residential activity along the Toowong riverfront, joining nearby projects including Consolidated Properties’ Monarch Residences and Spyre Group’s ARC Residences.

Sammut secures approval for debut Brisbane apartment development in Toowong

Developer Lanevick is heading back into Sydney’s apartment market after focusing more heavily on the luxury townhouse and terrace sector in recent years.

Lanevick, founded and directed by Steve Maroun, is expecting to receive approval in the coming months for a new apartment development in Gladesville, with the aim to launch it to the market later this year.

The 51-apartment project, designed by Studio Johnston, will comprise a mix of one-, two-, and three-bedroom apartments positioned toward the Hunters Hill downsizer market.

“Traditionally it’s been difficult for people in that market to downsize because there just hasn’t been the right product available,” Maroun said.

“We’re targeting buyers who might have 30 to 40 per cent of their house value sitting in the bank after downsizing.

“They still want good spacious entertaining areas, they still want quality design, but they also want flexibility and the ability to enjoy life a bit more after working hard for a long time.”

The project sits near Boronia Park and within close proximity to the Parramatta River foreshore, an area Maroun says offers more of a Hunters Hill lifestyle than a traditional apartment precinct.

“From a lifestyle perspective, it’s really more Hunters Hill than Gladesville,” Maroun said. “You’re close to the foreshore, close to parklands, and still connected back into the village precinct.”

From level four and above, apartments will capture water views&nbsp;toward Sydney Harbour. Communal amenity will include rooftop entertaining areas, wellness spaces, and a gym tailored toward owner-occupier buyers.

“We’ve really designed these apartments around that buyer coming from the Hunters Hill LGA and what they’re actually looking for in their next chapter.”

The proposed development has also been designed to respond to the changing character of the broader Gladesville town centre, where a growing number of mixed-use and residential proposals are expected to emerge over the coming years.

“Gladesville presented a rare opportunity to deliver a genuinely design-led residential project within an evolving lifestyle precinct, just moments from the growing Gladesville town centre, and we’ve approached the project with a strong focus on architecture, liveability and long-term community value,” Maroun said.

Maroun said Lanevick saw a first-mover advantage within the precinct as planning controls continue to evolve to accommodate greater housing density.

“We think there’s a real opportunity there that hasn’t really been serviced properly yet,” he said.

“There’s going to be a broader evolution of the whole Gladesville village precinct over time, particularly with more activation and mixed-use outcomes.”

The Venus Street proposal will include a commercial and retail component at ground level designed to contribute to that evolving streetscape activation.

“A big part of the thinking was how do you activate that area properly and create more vibrancy and amenity, which is what Hunters Hill has been looking for,” Maroun said.

Lanevick’s focus since 2020 has largely been on smaller-scale luxury townhouse and terrace developments. The developer recently completed Royale Randwick, also designed by Studio Johnston, where prices reached $3.65 million. The project was featured in the UDIA NSW 2026 Professional Development Prospectus and was also named a finalist for Development of the Year.

&nbsp;

Lanevick to cater for Hunters Hill downsizers with new Gladesville apartment development

Property developer One Living, backed by former Macquarie banker turned investment manager Chris Green’s investment firm, has unveiled plans to bring more institutional capital into housing to help address the national supply crisis.

The New York-based investor has focused his firm, GreenPoint Partners, on addressing the supply shortage hitting middle market housing in Australia.

It is backing the new One Living business to develop more than 1000 units along the eastern seaboard. The new firm is starting with a development on Mona Vale Road, on the border of Mona Vale and Pymble, in Sydney’s Northern Beaches, with around 140 apartments planned. They are eyeing off more sites across the city.

With cost pressures rising in the industry, One Living’s model is to be a vertically integrated developer-builder, so it can respond directly to the housing gap by removing the cost inefficiencies embedded in traditional residential delivery.

“We are building a platform designed to operate at scale and starting in a market where there’s a clear need for quality, attainable housing,” One Living joint managing director Joseph Scuderi said.

“It’s that missing middle – it’s that attainable end of housing… that’s what most Australians invest into and what Australians can actually afford.”

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="798dfa93-4941-4db6-a696-31e9dc18e81c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.31.50%E2%80%AFPM.png?VersionId=mKBqi5C_DmeiXS.AtJkcR8LQIxqCqmFi" />

GreenPoint Partners brings years of experience assembling and scaling real estate operating businesses across major markets. And Green sees a big opportunity in Australia.

“For its size, sophistication and importance to the community, Australia’s living sector has remained largely under-institutionalised, which represents significant opportunity,” Green said. “GreenPoint identified that gap, assembled the right team, and is backing One Living to build a platform that is aligned to market needs.”

Green said being a builder-developer would give the company the capacity and flexibility it required to deliver reasonably-priced homes.

“We want it to be at that attainable level; not super high end luxury but at that attainable level,” he said.

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="74a5344a-4b26-4d4a-ada3-056b1220be77" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.32.15%E2%80%AFPM.png?VersionId=vY8hXHO4reBMdO8ZXMWCNtGZJofUPQ3j" />

&nbsp;

One Living will undertake a component of affordable housing in its schemes, which it will own and operate, and it could also run build-to-rent on some sites.

Green praised local policy settings.

“The NSW government is being very supportive, strategic and pragmatic in terms of how do we generate more supply of housing,” he said. “We think it’s actually positive for development and the bit that’s been lacking at that attainable level is that it’s lots of relatively small private developers, whereas we want to create an institutional platform.”

One Living is also&nbsp;looking at high-density projects and could take on more institutional funding in the future.

“The way we will be able to achieve economies of scale is through size,” Green added.

One Living enters Sydney's new apartment market with Northern Beaches site acquisition

It's been several years since there's been an opportunity to buy a brand new townhome in Melbourne's coastal suburb of Mordialloc. Even apartment developments in recent times have been few and far between in the area.

Local developer LDS Property identified the gap in new housing, securing a site on White Street, directly opposite&nbsp;Woodlands Golf Club Mordialloc. They've recently launched&nbsp;<a href="https://www.apartments.com.au/new-townhouses/wm-residences-mordialloc-102-white-street-mordialloc-vic-3195">WM Residences</a>, just 13 townhouses which they have already started building.

Projects by Buxton Director Heath Thompson, who is selling WM Residences, says the townhouses x that perfect middle ground be

"Mordialloc residents have had limited options to downsize within the suburb, often forcing them to look elsewhere despite long-standing ties to the area," Thompson says.

"With very little comparable new supply coming to market, projects like WM Residences are well placed, particularly as buyers look to capitalise on current conditions amid constrained supply."

[smartcode_project:default project_id=134646 project_image_fid=6109]

The development, designed by regarded architecture firm&nbsp;<a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a>,&nbsp;adopts a deliberately restrained architectural approach, focusing on simplicity, durability and liveability rather than overt design gestures.

The boutique scale is central to the offering. With only 13 three-bedroom residences, each home is configured to prioritise functional layouts and everyday use, supported by private terraces and secure two-car garages.

Ewert Leaf’s design response leans into a calm, neutral material palette. Interiors are defined by oak flooring, white walls and soft finishes, creating a consistent and understated backdrop. The approach avoids trend-driven detailing in favour of longevity, with an emphasis on natural light and spatial clarity.

[smartcode_project:default project_id=134646 project_image_fid=6110]

Beyond aesthetics, the homes are designed to meet contemporary performance expectations. Each residence targets a minimum 6-star energy rating, incorporating double glazing, comprehensive insulation and all-electric Bosch appliances.

The project’s location supports a walkable coastal lifestyle, sitting within close proximity to Mordialloc’s foreshore, Main Street retail strip and the train station. Local cafés and dining venues, including Suburbia Deli and Hendriks Café, are within a short walk, reinforcing the area’s established neighbourhood character.

[smartcode_project:default project_id=134646 project_image_fid=6116]

While <a href="https://www.apartments.com.au/developments/mordialloc-vic-3195">Mordialloc</a> is often defined by its beach and pier, the project taps into other areas of day to day living, offering easy access to local food, casual dining and transport, rather than positioning itself purely as a lifestyle retreat.

WM Residences reflects a continued trend across Melbourne’s coastal suburbs towards smaller-scale, design-led townhouse developments, particularly on infill sites where proximity to amenity is already established.

With construction commenced prior to its market entry, the project aligns with a growing preference among buyers for developments with visible progress and defined delivery timeframes.

[smartcode_project_cta:default project_id=134646]

Alistair Walsh

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