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GUEST OBSERVATION
Today, the Reserve Bank Board decided to lower the cash rate by 25bps to 2.25%.
This has been Westpac’s forecast since 4 December when it became clear that demand conditions in the Australian economy had deteriorated more sharply than we expect the Bank had anticipated.
The Governor’s statement confirms this assessment when he refers to growth as being below trend but more importantly “domestic demand growth overall quite weak”.
The Bank has also clearly revised down its growth forecasts and the exact extent of these revisions will be known in the Statement on Monetary Policy to be released on 6 February (we expect that forecast growth in 2015 will be reduced from 3% to 2.5%). It refers to “output growth will probably remain a little below trend for somewhat longer and the rate of unemployment peak a little higher than earlier expected” (the Bank does not provide specific unemployment forecasts).
It is also likely that the Bank will lower its inflation forecast. Recall that in November when the oil price was US$86/bbl, underlying inflation for 2015 was forecast at 2.75% (midpoint of the range). The Governor now refers to underlying inflation currently running at 2.25% and it is reasonable to conclude that he is implying that that low read will continue for some time.
The most popular argument against cutting rates continues to be around overstimulating housing. In that regard, the Governor points out that dwelling prices continue to rise strongly in Sydney whilst recognising that other cities have had more variable performance. As we anticipated the new macroprudential policy around containing growth in loans to investors to 10%pa is deemed by the Bank as an effective insurance policy to contain any housing bubbles. In that regard the statement specifically refers to the Bank’s work with regulators.
Another argument against the rate cut was that the Australian dollar had fallen sufficiently. However the Bank points out that even though the Australian dollar has declined noticeably against the US dollar its performance against other currencies has been more robust. Once again it is stated that the Australian dollar “remains above most estimates of its fundamental value” and the statement calls out for a lower currency.
In the all-important final paragraph it is concluded that based upon assessments of the economy and in particular the updated forecasts, which will be released in the Statement on Monetary Policy, a cut in the cash rate was appropriate. The language in the final sentence which might have referred to “a period of stability” or “scope to cut further” takes a more neutral stance making the obvious point that “this action adds some further support to demand”. This gives the Bank full flexibility to determine its next policy move without making any commitment to the market.
Westpac’s forecast which was released on 4 December, 2014 included not only a 25bp cut in February 2015 but a follow up move of 25bps in March. Our reasoning is that the Bank would not have disturbed such a long period of interest rate stability for just one move. The case to move rates after such a long period would need to be convincing.
We believe that the forecasts that will be released in the Statement on Monetary Policy will depict an economy expected to grow markedly below trend in 2015, barely back at trend by 2016 and with core inflation holding near the bottom of the 2-3% band in 2015. Under those circumstances we think it is justifiable to expect another move with March being the best timing.
Our forecast last December was for rates to then remain on hold for the rest of the year and we are comfortable with that view.
Bill Evans is chief economist of <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>.
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One more, then rates on hold: Westpac's Bill Evans

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Reserve Bank governor Glenn Stevens appeared before the House of Representatives Standing Committee on Economics on Friday. In his opening statement, the governor set out the RBA’s economic assessment. Naturally, the themes were along the lines of those outlined in the RBA’s quarterly Statement on Monetary Policy, published a fortnight ago. In short, the RBA judges that the Australian economy has been growing close to trend over both the second half of 2011 and up to the middle of 2012. This allows for the likelihood of a more moderate expansion of real GDP in the June quarter than in the March quarter. Growth at around trend pace accords with the RBA’s expectations. Consistent with trend growth, the rate of unemployment remains essentially unchanged from this time last year. On prices, core inflation has moderated to about 2% and the RBA expects inflation to remain consistent with the target. The exchange rate appreciation has had a significant impact on prices for traded goods, but this dampening effect is starting to wane. This will require that the more moderate growth of domestic costs and prices that we have seen will need to continue in order for inflation to remain consistent with the target. On the world economy, the governor emphasised both the risks and that the global slowing to date has “been of the more ordinary variety”. Growth for the world as a whole is close to its long-run average and the IMF forecast for world GDP growth of about 3.5% for this year seems reasonable, although the risks seem weighted to the downside. The governor’s discussion of the Australian economy looked ahead to the peak of resource investment within the next couple of years, as was outlined in the SoMP. The expectation is that growth will still be close to trend, albeit with a different composition (with exports, residential and non-residential construction starting to pick up). Committee chair Julie Owens, a member of the government, opened the Q&amp;A with four leading questions, each of which invited the governor to acknowledge that the Australian economy is performing reasonably well, notwithstanding suggestions to the contrary. Not surprisingly, the governor obliged, agreeing with the proposition of these questions. The governor continues to see the economy as a “glass half full” and referred to his most recent speech of July 24, “The Lucky Country”, where he put the case that Australia is relatively well placed to withstand perceived downside risks. Other questions focused on the currency, the labour market and the mining boom. There were a few key take-outs on these issues. The governor judges the Australian dollar to be “a bit on the high side” but “not dramatically so”. In terms of the risks to the economy, the question was if the dollar was a “long way above” fair value and whether it was above fair value for a “long time”. The governor noted that the RBA has not intervened in the currency market and the tone of his comments could be interpreted as implying that, given current circumstances, there is no plan to do so. As for intervention by the Swiss National Bank, the governor noted the differences between Switzerland and Australia. In an earlier question, on forecasting, the governor referred to the difficulty of predicting the impact of shocks to the economy. He cited the current strength of the Australian dollar despite declines of the terms of trade. With the dollar not playing its normal shock-absorber role, there are important implications for the economy. The governor suggested that it is not inconceivable that the Australian dollar could go higher (due to safe haven effects and generally high rates of return in Australia). The RBA views the labour market not only in terms of national averages, but also sees the labour market as a “patchwork”. The RBA tracks the dispersion of the unemployment rate across regions. This shows that the labour market is currently not more of a patchwork than normal. The governor is surprised that dispersion is not bigger and noted that it could get bigger. On the mining investment pipeline, the RBA’s view on the outlook has not changed in response to recent announcements. The RBA has long expected that the peak of the investment phase will be in the next couple of years and that mining investment as a share of GDP will reach around 9% of GDP. The next phase will be the boost to mining output, the export upswing. As for the Westpac view, we were not surprised by the governor’s comments. Moreover, there was no discernible market reaction to the testimony. In our judgement, additional interest rate relief will be required to ensure robust growth of the Australian economy during 2013. We expect world growth to be sub-trend this year, forecasting a slowing to just 2.8%. The Australian labour market is likely to be soft over the remainder of this year, with the unemployment rate rising to a forecast 5.7%. Structural change, reinforced by the current strength of the Australian dollar despite lower global commodity prices, tighter fiscal policy, both at the state level and federally, household sector deleveraging, and ongoing caution against the backdrop of global uncertainty are all weighing on job prospects. Our central case forecast is for the RBA to reduce the cash rate to a low of 2.75% by the first quarter of 2013, but with the next move not until the December quarter given the RBA’s current wait and see approach.
Bill Evans is chief economist of <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>.
This article originally appeared on <a href="https://www.businessspectator.com.au/" target="_blank">Business Spectator.</a>
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More RBA interest rate relief needed to ensure robust economic growth

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The Reserve Bank board meets next on June 5. We expect that the board will decide to further reduce the overnight cash rate from 3.75% to 3.5%.
We now expect that the low point in this easing cycle will be 2.75% rather than 3.25%, which had previously been our expectation. We expect further cuts in July and August to be followed by a final cut in the fourth quarter.
We do not favour the 50bp cut scenario in June. The decision to cut by 50bps in May was mainly driven by direct concerns around the domestic economy. To us, there appeared to be an element of catch up with the bank holding steady in February–April when the domestic case for a cut was strong. The decision will be built around the impact that the deterioration in global confidence will have on the Australian economy. Since the board meeting in May, US 10-year bond rates are down from 1.9% to 1.6% and the Australian equivalent is down from 3.6% to 2.9%. However, there are a number of key risk events over the next few weeks (Greek elections on June 17, for example) which will be critical for global confidence. We expect a more orderly approach to addressing these issues and thus a more “considered” 25bps move. However, nobody can be particularly confident in gauging the bank's meeting-by-meeting strategy for dealing with these issues.
This is a change in our previous forecast position. We had been expecting that the board would decide to hold rates steady in June, with two further moves expected in both July and August of 25bps each. We now expect that the low point in this easing cycle will be 2.75% rather than 3.25.
These two extra cuts are based on our assessment that the global environment – read Europe – has deteriorated even further since we revised down our call for the low point from 3.75% to 3.25%. In turn, this deterioration is expected to have a more severe impact on confidence in Australia than had earlier been expected.
The stance of policy is currently only mildly expansionary despite the official cash rate being at 3.75%, its lowest level outside the global financial crisis.
We gauge that it is only mildly expansionary because the stance of policy should be assessed in the context of private sector interest rates. With the gap between the Standard Variable Mortgage Rate (SVMR) and the official cash rate now being 140bps wider than in 2007, we assess that the neutral rate has fallen from 5.5% in 2007 to 4.1%. That puts the official cash rate only 0.45% below neutral today – certainly only mildly accommodative.
Another way of assessing this stance is to compare the SVMR with its long-term average. The long-term average SVMR is 7.5%, so the current SVMR, at 7.05%, is also only 0.45% below the average.
A move to 2.75% in the official cash rate is likely to see the rate somewhere between 100bps and 145bps below neutral, depending on the movement in private sector rates in response to the fall in the official cash rate. If there was a full 100bp reduction in private rates then the official cash rate would bottom out 145bps below neutral.
If the reduction in private rates was along the lines of the reduction following the rate cut in May then the official cash rate would bottom out 115bps below neutral. The same logic would mean a SVMR of between 6.05% and 6.5%.
In the three previous easing cycles the official cash rate has bottomed out at 150bps (2008/09); 125bps (2001) and 50bps (1996-97) below neutral.
In those periods the SVMR bottomed out at 5.8% (2009); 6.05% (2001); and 6.7% (1997).
The contrast with 2009 is important. Despite the cash rate falling below its GFC trough, we expect the SVMR will bottom out well above the 2009 level.
In the more recent two periods above, the final rate cut in the cycle coincided with an increase in the unemployment rate of one to two percentage points over the preceding year: 6% to 7% in 2001 and 4% to 5.9% in 2008-09. In 1996-97 the increase in the unemployment rate was only around 0.5ppts, as this was a mid-cycle slowdown rather than a fully- fledged slowdown.
The contrast with those earlier periods the implied stance of policy should also take into account the level of the Australian dollar. In 1997 the AUD/USD was around 68 cents; in 2001 around 50 cents and in 2009 around 70 cents. Clearly the AUD was providing a much more complementary stimulatory support for the economy than in current circumstances where, despite recent weakness, it is still around 98 cents.
 
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The labour market comparison argues that current market pricing is somewhat excessive. Market pricing implies that rates will eventually fall by 140bps (just above 2.25%) which implies a range 125bps to 175bps range below neutral.
Because market expectations are still significantly more aggressive than even this revised view, we still expect fixed rates to increase should our forecasts prove correct. For example, with markets giving a significant probability to a 50bp cut this week we would expect fixed rates to increase modestly if we are correct and "only" a 25bp move is delivered.
Market pricing is reflecting extreme uncertainty, and it is distorted by hedging activity by offshore investors who are not taking a pure position on Australian monetary policy, and it is therefore highly volatile. The uncertainty emanates from:
<ul>
<li>The European outlook, highlighted by the risk of Greece withdrawing from the Euro and excessive instability in the Spanish banking/sovereign nexus.</li>
<li>The state of the Chinese economy and prospects for counter cyclical policies to be a) enacted and b) to gain traction.</li>
<li>Prospects for the US economy where the recovery seems to be losing momentum</li>
<li>The impact on private sector rates in Australia of official rate cuts and the spillover to confidence.</li>
<li>The state of the labour market in Australia following the surprise fall in the unemployment rate from 5.2% to 4.9%.</li>
<li>Prospects for the interest rate sensitive parts of the Australian economy – housing and consumer expenditure and the investment and employment decisions of those firms that service those sectors.</li>
</ul>
Our forecasts are based around a general outlook that while Greece is unlikely to leave the euro the European "scene" will be marked by rolling crises and bailout packages against a back drop of protracted recession in the region. That would avoid the "worst case" scenario that might be partly priced in by the market but would ensure an ongoing drag on confidence, both consumer and business, in this country.
Recent news from Europe has reinforced our concerns for the region, particularly for Greece and Spain. For Greece, the June 17 election looms as a crucial event. The most recent polls point to far-left party Syriza being in the ascendency; if this poll proves correct, then a tense stand-off between the new government and the Troika is almost assured. The eventual outcome is highly uncertain although our base case leaves Greece in the euro.
Spain’s financial ill-health has also rapidly come back to the fore over the past month, primarily due to the need to fully nationalise banking conglomerate Bankia, formed in 2010 through the union of seven stressed regional banks. The €19 billion price tag for the nationalisation is troublesome given the Spanish sovereign’s urgent need for austerity and difficulty in accessing cost-effective capital. However, the reported €180 billion of bad loans (industry estimates) for the system as a whole, combined with the enfeebled financial position of Spain’s regional governments, make a positive outcome increasingly improbable. The need for a support package for Spain would be a serious test for the financial and political capital of the region. Our concerns about the impact of these issues on confidence in Australia have increased in recent weeks.
Recent information out of China has been in accord with our long-held views that the cyclical downturn of the first half of this year will be progressively relieved by policy accommodation. That will see a recovery underway later this year, which will get 2013 started on the front foot. Our forecast for 2012 remains at 7.8% and our 2013 forecast remains 8.7%. A weaker than expected export profile, driven by European problems, would lower near-term growth, but would strengthen the policy response in the second half, which would help the 2013 numbers. We note that the RBA's approach to the Chinese slowdown has been to attribute it to policy choices which can be reversed if needs be. Thus we might expect that the board will have been heartened by the recent move towards growth support in China. That adds up to a position whereby China is a neutral for the policy outlook detailed here.
The US economy is likely to lose further momentum through the Northern spring and into summer. Deteriorating job and domestic demand growth are expected to result in another round of quantitative easing. Further weakness in equity and/or house prices would give further justification for action. As evidenced from the April FOMC meeting minutes, so too would a deterioration in Europe and/or concerns over the potential impact on activity of the 2013 ‘fiscal cliff ’.
Overall, we continue to expect global growth of "only" 2.8% in 2012, compared with official estimates of 3.5%. We expect that recent developments in Europe will prompt a downward revision to official estimates moving towards our own view.
While off shore issues are likely to dominate the board's explanation behind its decision to cut rates this week there is also a domestic case for lower rates. We were surprised by the insipid 0.8% increase in the Westpac Melbourne Institute index of consumer sentiment in May, despite a 35bp cut in mortgage rates – the biggest cut since February 2009. We are wary of the recent fall in the unemployment rate noting the unusual circumstances of a rise in jobs and a fall in the labour force. We note that Treasury is forecasting the unemployment rate to reach 5.5% by mid-2013, with, presumably, a higher rate earlier in the year. We also point to the Westpac Melbourne Institute index of unemployment expectations which has "job insecurity" on a par with 2001. While the headline unemployment rate looks solid the underlying story around the labour market is perplexing.
In the year to April total employment has lifted by 87.3k jobs. However, 71.7k were part-time jobs and 57.3k were female. So the employment growth this year has been concentrated in part-time and/or females jobs. It is also worthwhile noting that to date, WA is still the centre of growth for employment having added 35.7k to its workforce this year.
 
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Now this is a far from a spectacular number (just 21k per month) and the fall in the unemployment rate has been driven by the fall in participation rate. If the participation rate had held constant since September last year, the unemployment rate would have peaked at 5.75% in Feb 2012 and even in April, following a run of better jobs numbers, the unemployment rate would still be 5.5%. Overall we are not inclined to alter our forecast that the unemployment rate will exceed 5.5% by year's end.
Recent data prints are also uninspiring. Retail sales for April (down 0.2%); spending on renovations and additions (down 4.7% in the March quarter) and residential building (down 1.9%) and dwelling approvals (weak even abstracting for the WA element) have all been weak despite the rate cuts in November and December. While investment plans in mining from the Capex survey for 2012-13 remain strong we estimate that both manufacturing and services investment are expected to decline in 2012-13.
On house prices, the RP Data series (apparently favoured by the RBA, and also our favourite measure) estimates that house prices have continued to fall in 2012, despite the rate cuts, being down by 0.8% in to April, with high frequency prints showing that prices fell further in May.
We expect there will also be adequate scope from inflation to further lower rates. With growth pressures mainly in the mining sector where the "escape" valve of imports can be used to contain inflation pressures and with those industries being affected by the high AUD and the deleveraging of the household sector needing to raise productivity, the inflation outlook is particularly encouraging. We expect another respectable productivity and unit labour costs outcome in the March quarter national accounts, due the day after the RBA meets in June. In its May statement on monetary policy the RBA forecast that inflation will remain near the bottom of the 2–3% band over the next year.
We have always expected rates to bottom out in the second half of 2012, with rates on hold for most of 2013.
That was not the case in 2009 when rates got to a more stimulatory level than we expect this time and fiscal policy both domestically and offshore was providing a huge complementary boost. In particular, the government's boost to housing with the First Home Owners Grant was very important.
However, as we progress through 2013, the interest rate debate will shift from anticipating additional rate cuts to the timing of the next RBA tightening cycle. On this, we make two key points.
The rate outlook for 2013 will differ from that during late 2009. On the earlier occasion, the view was that rates needed to be normalised, that borrowing rates needed to be returned to around average levels, in an orderly fashion. We assess that the stance of policy needs to remain on the expansionary side throughout next year. Notably, the global economy will remain fragile and vulnerable to shocks, even if the headline growth numbers return to around trend, as we anticipate. Domestically, the consumer is in a deleveraging phase, which means the housing sector needs more supportive settings. Moreover, the Australian economy is in a transition phase, with the relatively high dollar driving significant structural change. The tightening of monetary conditions associated with the high dollar needs to be taken into consideration.
Equally, it would be inappropriate for the Australian economy, which is on the right side of the shift in global growth to the Asian region, to leave interest rates around historic lows for a prolonged period. As the significant confidence drag from Europe begins to fade, but not disappear (markets become more comfortable with the likely adjustment process in Europe), rates will need to move off their lows. We envisage that the RBA will need to begin raising the cash rate during the second half of 2013. This would have the cash rate at 3% on our forecasts by year's end.
Outlook for the Australian dollar
The AUD has recently reached our base September quarter forecast of 98 cents. At present there are a number of downward pressures operating on the currency – rate differentials, commodity prices, the shift back into trade deficit, weak risk appetite globally, diminished FX reserve accumulation in emerging markets – that will not dissipate in the short term. Therefore we feel that there is more to come in this depreciation phase. We now see a 96 cents rate by end September, with the strong likelihood that it goes lower than that rate in the meantime. In the short-term, we expect the USD index to show considerable strength, the yen's safe haven status to shine through as Japanese investors exhibit strong home bias in a low yield world, while the euro will understandably find few adherents. Asian currencies will also remain under pressure for the moment.
We do however retain the view that AUD/USD will be back above parity by year's end, in line with a pullback in the USD index. That call is largely predicated on an expected series of stimulus policies in Europe; China; and the US that will gain traction, particularly through the December quarter,. The combined effects of the more accommodative global policy environment will reverse the negative dynamics current swirling around the AUD (and other growth assets, like Asian currencies and commodity prices). We see the currency reaching $1.02 by the end of the year and moving even higher in early 2013, before levelling out at mid-year in the $1.05–$1.06 area.
Bill Evans is chief economist of <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>.
This article originally appeared on <a href="https://www.businessspectator.com.au/" target="_blank">Business Spectator.</a>
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Interest rates to fall to a low point of 2.75% by the end of this year: Westpac’s Bill Evans

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]

Bill Evans

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