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The Reserve Bank of Australia (RBA) released the minutes for its November 5 meeting today, stating that there are signs that low interest rates are working, but did not want to “close off the possibility of reducing [the cash rate] further”.
Board members discussed the “uncomfortably high” Australian dollar and noted that a lower level of the exchange rate would likely be essential to achieve balanced growth in the economy.
CommSec economist Savanth Sebastian notes that policymakers are hoping that the super stimulus provided by low rates will be sufficient. Conversely, if the stimulus is not adequate, the RBA will likely consider a further interest rate cut.
Sebastian added that at this stage, the RBA has adopted a “wait and see” mode while waiting for a clearer picture of how the domestic business and household sectors respond in the Christmas spending period as well as the early part of 2014.
The Statement of Monetary Policy, released a fortnight ago, confirmed modest downgrades to near medium term economic growth forecasts. Inflation is expected to remain in the 2-3% target band as well.
Sebastian reiterates that the RBA has provided the economy with substantial stimulus in the last year. While the RBA remains cautious with its approach, its prior rate cuts have only just begun to impact the economy. He does not expect any changes in policy settings over the next few months.
HSBC chief economist (Australia &amp; New Zealand) Paul Bloxham said in a recent report that the RBA has noted they are seeing an improvement in conditions that extends beyond a pick-up in the housing market.
While the RBA explores the possibility of cutting rates further if the Australian dollar does not fall, Bloxham believes the AUD will fall modestly over 2014 and there will be no need for the RBA to cut rates further.
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dleow-BGaNPbHWyK

RBA leaves door open for further rate cuts in November meeting minutes

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A one-bedroom apartment in the Melbourne CBD was the most affordable auction sale in Melbourne last weekend.
Located at <a href="https://www.realestate.com.au/property-apartment-vic-melbourne-115195055" target="_blank">404/408 Lonsdale Street</a>, the unit sold for $210,000 through Biggin &amp; Scott Richmond.
Prior to this sale, it last sold in 2007 for $170,000, and in 1998 for $118,857, according to RP Data records.
Listing agent Claire Parkes told Property Observer the auction went “well”, with two bidders. The sale price was a pretty good result.
“It’s the highest price for a studio in that building in the last few years,” she said.
The successful bidder was an investor.
She notes that the property market in Melbourne is “bubbling along nicely” as the moment, with investors coming back on the market.
“One-bedroom apartments aren’t moving as well as larger apartments and houses. However, it seems like they are on the move. Older-style units and houses seems to be preferred over the newer styles that available, probably due to affordability and positioning,” she said. 
According to Biggin &amp; Scott’s estimated asking rent of $290 a week, the price reflects a 7.18% rental yield.
According to the latest RP Data report, the median sale price for units in Melbourne is $400,500, up by 4% on last year. The average discount required to sell a unit is 6.1%, while private treaty sales average 86 days on market.
The median asking rent for a unit is $450 per week, while gross rental yield currently stands at 5.8%.
Other one-bedroom units listed for sale in Melbourne include: <a href="https://www.realestate.com.au/property-apartment-vic-melbourne-115431391">1002/243 Franklin Street</a> (pictured below).
{yoogallery src=[images/stories/2013/11/19/mel2]}
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Melbourne cheapie sells for $210,000, reflects 7.18% yield

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A four-bedroom semi-detached home in Middlesex, UK has been <a href="https://www.rightmove.co.uk/property-for-sale/property-41719309" target="_blank">listed for sale</a> – with a distinct difference. While it looks like a typical home on the outside, it boasts a purple theme in the interior – the walls have a lick of lavender paint, while the carpets are a bright purple.
{yoogallery src=[images/stories/2013/11/19/mid]}
Even the bathroom is not spared – its floor is adorned with the same purple carpeting, while white tiles with purple flowers are used on the walls.
The dining and living rooms all see purple accents as well, with purple and white dining chairs and purple cushions.
While it may be tempting to makeover your home entirely in your favourite colour, principal of Just Think Real Estate, Edwin Almeida, advises that vendors should ensure your property is redone in a neutral colour before it goes to market.
“Typically, we try to keep it as neutral as possible so that people can have a clean canvas to work with, and create their own colour coordination to their own likes,” Almeida told Property Observer.
For those hoping to rent out a property like this one, Almeida says that wear and tear, as well as damages to the furnishings, could potentially be a huge issue.
“It's going to be very very difficult to match those specific colours. There’s going to be different shades of purple all over the place – that’s going to be a deterrence,” he said.
When a property like this one goes on sale, Almeida says potential buyers who will factor in the cost of repainting and recarpeting the home. This cost will then be a reason to reduce the price based on the amount of work it is going to take to redo it. 
He notes that vendors should consider the actual cost of repainting a home before it goes to market to avoid unnecessary price reductions.
“My philosophy is, you get rid of all the objections before you go to market. If we get this fixed, it’s going to cost us $1,000. If someone is negotiating a price, and they see this problem, they're going to want a reduction of $5,000 to $10,000. They will always inflate the cost,” he warned.
A good way to calculate the potential reduction cost is to multiply the cost of a repainting and recarpeting job by two and a half times. Almeida says that's typically the amount a buyer would ask as a reduction in price.
"If it costs $10,000 to re do, people will look at it as a $25,000 job, if not more. The emotional factor in negotiating a price can cost more than what it will actually cost to fix. It works both ways," he said.
“I always say to my vendors and landlords – get it fixed within our price point before the purchaser or renter uses it as a objection to dramatically reduce the price.”
Almeida also notes that colour can be the only hindrance in a successful transaction.
“If the colour becomes the only objection - get rid of your troubles,” he said.
Renters might also be deterred from such a property, according to Secret Agent founder Paul Osborne.
“It will actually scare away a lot of the market. From a rental market’s perspective, certainly a lot of people wouldn't be happy to accept it,” he said. 
Conversely, Osborne notes it could just be a matter of finding the right buyer or renter. 
“It is quite possible that there could be a section of the population that loves to rent purple houses. If those people were in the market, they would pay a premium for something like that,” he said.
He noted that certain quirky properties could work to a vendor’s or landlord’s advantage. For instance, period homes with cracks in the walls and ivy could be very appealing to certain buyers – yet homes with distinct quirks could either attract potential buyers or deter them altogether.
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Selling your beloved purple home? You might want to consider a few things first...

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Ipswich, an urban centre in Southeast Queensland, is located about 40 kilometres west from the Brisbane CBD. Flanking the Bremer River Valley, it has been the victim of flooding in the last few years, rendering it less-than-ideal for property investment in the eyes of many.
However, it has recently been put back in the spotlight as an investor’s playground. This can be attributed to an abundance of properties in the entry-level market.
Australian Property Monitor’s senior economist Dr Andrew Wilson told Property Observer he expects to see “some growth” in the Ipswich market in the next year. 
“Ipswich is starting to pick up, in line with the Brisbane economy. It is one of those markets that appeals to entry-level buyers,” he said.
wHeregroup director and location researcher, Todd Hunter, agrees that the property market there is “fairly warm” at the moment.
He picks out Springfield and Springfield Lakes as the top suburbs in the area, for both proximity to the CBD as well as the new Springfield train line due to open later this month.
However, he notes that investors who got in early have already snapped up many great properties, perhaps leaving the pickings a little thin.
“There’s still money to be made, but not as good as it would've been 12 to 24 months ago,” he said.
Infrastructure in place, including the upgrade of the Centenary Motorway, makes Ipswich an accessible area as well.
Hunter added that Ipswich will see a change of demographics in the coming years.
“A lot more people will be forced out of the CBD, and looking for lifestyle and affordability. The incomes will be higher, the whole area will start changing,” he said.
Personally, he began purchasing properties in the Ipswich area from 2010 to late 2012, with the exception of a gap when the flood occurred and insurance companies placed an embargo on house insurance for flood-prone areas.
“There were some really good bargains where properties had previously been sold between $370,000 to $420,000 in the boom at the end of 2006 to 2007; we were picking those properties up at $285,000 to $290,000. Those same properties now would be worth about $310,000 to $320,000, and I think the market will keep increasing,” he said.
He added that the most popular style of home in the area is one with four-bedrooms and two-bathrooms.
Additionally, he warns against suburbs that have been previously hit by the floods as insurance will be very expensive. These include riverside suburbs such as Goodna, Brassall and Barrellan Point.
Overall, he believes the property market in Ipswich will remain profitable. 
“It’s in its early stages, in a really good upcycle. I see very good times probably around the next 18-24 months,” he said.
An increase in investor activity can lead to a great rental market as well. Kelly Higgins, state manager for MPM Property, told Property Observer they have seen “the Ipswich region have significant rent increases across key suburbs throughout 2013.”
“We have achieved averaged rent increases between 3% to 6% in suburbs of high demand including; Brassall, Redbank, Raceview and Springfield,” she said.
She also mentioned that the most sought after homes are newly-constructed four-bedroom two-bathroom double lock ups to accommodate families.
“The Ipswich area attracts families that are seeking an affordable housing option, whilst still being close to Brisbane suburbs and major public transport and infrastructure,” she added.
Higgins notes that MPM Property has seen positive results thus far with rent increases and reduced vacant days on market.
“We see this as a brilliant result for current investors and the opportunity for other investor to consider the Ipswich market. We see this as ideal time to invest in the Ipswich region with ample affordable property options currently on the market or house &amp; land package options which are also available,” she said.
She also anticipates the rental market to remain “buoyant” as a result of stability and steady returns across the rental market, as well as ongoing growth, affordability, proximity, and infrastructure enhancements across the city region. 
<a href="mailto:DLeow@propertyobserver.com.au">DLeow@propertyobserver.com.au</a>
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Suburb spotlight: Ipswich picks up

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An initiative by the City of Gold Coast to stimulate development activity and create jobs has generated about 9,500 jobs and more than $885 million in building projects, potentially generating residential housing demand.
Named Construction Kickstart, a report to the City Planning Committee stated that the initiative has resulted in the commencement of 282 projects, including 55 industrial developments.
Kickstart started on October 1 2012, and concluded on September 30 this year.
Of the 55 eligible industrial developments, 38 are still underway and 17 have been completed. 
President of the Urban Development Institute of Australia Gold Coast Logan Branch, David Ransom, said the Kickstart initiative had been a very worthwhile exercise which proved the City of Gold Coast had an ‘open for business’ attitude.
“There is a strong linkage between the level of infrastructure charges and the economic viability of projects,” said Mr Ransom.
“Employment generating projects such as industrial and retail will provide a triple benefit to the city by creating construction employment and ongoing operational employment, as well as fuelling residential housing demand.”
It is estimated 2,000 ongoing jobs will result from these projects and other non-residential projects that have commenced.
Non-residential land uses that qualified for Kickstart include a child care centre, sports facility, fast food outlet, service station, place of worship, indoor recreation, as well as retail facilities.
The City of Gold Coast’s Division 3 is home to the highest number of Kickstart projects, with 52 commencing, the majority of these being residential developments. 
Division 1 and Division 4 ranked second and third in terms of Kickstart developments, with 48 and 31 eligible projects respectively. 
Mayor Tom Tate said the figures showed Construction Kickstart had been an overwhelming success.
“This initiative was always about creating jobs and encouraging development activity and it’s certainly done that. When we launched the project, we estimated 4,000 jobs would be created so to reach an estimate of 9,500 is fantastic,” he said.
Phase One of Kickstart offered 100% discount on transport, recreation facilities and stormwater infrastructure charges, while Phast Two offered a 50% discount on the same charges.
Projects that have benefitted from Kickstart include a 41-storey residential tower in Surfers Paradise, a large warehouse and industrial facility, and apartment complexes.
<a href="mailto:dleow@propertyobserver.com.au" target="_parent">dleow@propertyobserver.com.au</a>
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Gold Coast's Kickstart generates $885 million in projects, could fuel residential demand

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According to the latest report from SQM research, vacancy rates experienced tightening across all capital cities, with the exception of Darwin and Brisbane.
Both cities saw a 0.1% increase in vacancy rates. However, Darwin recorded the highest vacancy rate nationally at 1%.
Brisbane’s vacancy rate currently stands at 2.2%, up by 0.6% on last year’s figures.
The national vacancy rate for October was 2%.
SQM Research director Louis Christopher told Property Observer that Brisbane has seen a “real sustained rise [in vacancy rates] in the CBD itself”.
“The Brisbane market has been fairly well-supplied over the last few years. The Brisbane CBD rate is quite elevated at 4.2%. This is the seventh month in a row we have seen a rise in vacancy rates,” he said.
<blockquote class="twitter-tweet">
<a href="https://twitter.com/JennieDuke" target="_blank">@JennieDuke</a> But I don't like what I am seeing on the rental front in the CBD. Vacancies at 4.2% now and rising fast. <a href="https://t.co/pBkSdqtm3k" target="_blank">https://t.co/pBkSdqtm3k</a>
— Louis Christopher (@LouiChristopher) <a href="https://www.propertyobserver.com.au/https://twitter.com/LouiChristopher/statuses/401148992035119104" target="_blank">November 15, 2013</a>
</blockquote>
“Naturally this is one of the reasons why the overall vacancy rate [in Brisbane] has risen. It’s currently a tenant’s market in the middle of town.”
He notes that the vacancy rate in the Brisbane CBD was 2% in October last year.
When asked what could have contributed to this rise, Christopher rules out an increase in investor activity.
“Investor activity in the Brisbane market is relatively weak, definitely lower compared to the Sydney market,” he said.
“It’s a difficult one to call. We know supply is more fluid in the Brisbane market for some years now. There has been a state downturn in the economy, particularly in Brisbane. Office vacancy rates are extraordinarily high, at 12%. I’m just speculating, but this high CBD vacancy rate could be a reflection of a structural downshift in white collar workers,” he said.
He added that investors would find it difficult to lift rents in the Brisbane CBD.
Christopher also said it is important to note that rents in Brisbane have risen strongly over the last three years.
“Rents have risen 18.9% for houses and 25% for units. The last 12 months in particular have been weak, and both houses and units have been falling in rent over the last three months,” he revealed.
Conversely, asking prices have recorded increases of 0.9% for houses and 0.5% for units over the last 30 days, according to SQM Research. 
<blockquote class="twitter-tweet">
<a target="_blank" href="https://twitter.com/JennieDuke">@JennieDuke</a> Our asking prices series is recording a similar trend (up 0.9%,houses &amp; 0.5%,units) over past 30 days. <a target="_blank" href="https://t.co/X3Qy60Plql">https://t.co/X3Qy60Plql</a>
— Louis Christopher (@LouiChristopher) <a target="_blank" href="https://www.propertyobserver.com.au/https://twitter.com/LouiChristopher/statuses/401148547015274496">November 15, 2013</a>
</blockquote>
The report also stated that nationally, Melbourne recorded the highest vacancy rate at 2.7%. Sydney recorded a vacancy rate of 1.5%, down by 0.1% from September this year.
Canberra recorded the highest yearly increase in vacancies, climbing 1.1% to 2.1% from last year’s figures.
Hobart was the capital city to record the largest yearly decrease in vacancies, falling by 0.5% to 1.5% on last year’s figures.
Adelaide recorded the largest monthly vacancy rate decline of the capital cities, falling by 0.2% during October 2013 to record a vacancy rate of 1.3%.
<a href="mailto:dleow@propertyobserver.com.au" target="_blank">dleow@propertyobserver.com.au</a>
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Brisbane rental market down in October: SQM Research

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The National Housing Conference held in Adelaide this year from October 10 to November 1 saw over 800 people attend, with over 50% of delegates stating they were “somewhat pessimistic” about the prospects of significant housing policy over the next five years.
Generation X made up the bulk of attendees at 40%, while 26.5% of attendees were baby boomers, and 22.5% were part of Generation Y.
Conference topics discussed included: the roles of government and the not-for-profit sector in housing supply, urban renewal and the supply of affordable housing, as well as homelessness prevention through mainstream services.
Various questions were posed throughout the three-day conference with responses collected using an application.
Attendees mainly felt the two biggest issues in Australian housing today are: 
<ul>
<li>Clarity about the future roles of government and non-government sectors</li>
<li>Blending public and private sector finance to achieve social objectives</li>
</ul>
They were also optimistic that the latter would see much progress in the next five years.
Additionally, 35% of conference delegates felt the biggest challenge for affordable housing in Australia is the undersupply of housing. The second biggest challenge was access to development finance, with 23.8% of delegates responding to that.
Mixed public and private funding was seen as the biggest opportunity for affordable housing in Australia, with over 50% of delegates agreeing with that statement. Growth of the not-for-profit sector was seen as the second most effective method for affordable housing to be more accessible.
Property Observer will speak to industry leaders, and look into some of these issues over the next few weeks.
<a href="mailto:DLeow@propertyobserver.com.au">dleow@propertyobserver.com.au</a>
 
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Majority of National Housing Conference delegates "somewhat pessimistic" about housing policy prospects

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Tasmania’s Minister for Sustainable Transport Nick McKim announced today that the first stage of Hobart’s proposed light rail service would be extended to the Museum of Old and Modern Art, and will be named Riverline.
Real Estate Institute of Tasmania (REIT) president Adrian Kelly told Property Observer that “it will be fantastic – if they get it off the ground.”
Kelly added that the rail corridor is already present, flanking both residential and commercial areas. He believes the light rail will bring a much-needed efficient public transport system to Hobart, which is currently serviced by buses.
“For example, to catch a bus from a suburb called Brighton into the city, that would take at least 45 to 50 minutes. To jump on the light rail, it would probably not take more than 15 (minutes). The light rail service will also run through areas that would make it much easier for people to park and ride,” he said.
Stage one of Riverline is slated to have stops at Franklin Square, Moonah, Glenorchy and MONA, with potential stops at the Botanical Gardens and New Town. 
McKim believes the light rail will be a huge economic winner.
"For example, in Perth in Western Australia, property values have risen by up to 40 per cent in areas within 400 metres of light rail stations."
"The same academic report shows land values rose by up to 15 per cent as far as 800 metres from stations," he said.
However, Kelly thinks there will be “very slight price increases if a home is near a station”.
Conversely, Rick Abbott, Principal of Raine &amp; Horne Hobart, is skeptical about Riverline.
“Stuff's like that been floating down here but nobody believes any of it. When it becomes reality, I imagine it will have some effect on the property market,” he said.
McKim stated that the project has already entered the planning phase, which includes undertaking a strategic assessment of the wider benefits of the project, as well as evaluate funding and financing options.
<a target="_blank" href="mailto:dleow@propertyobserver.com.au">dleow@propertyobserver.com.au</a>
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Hobart to get new light rail

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Located in south-east Queensland and 127 kilometres west of Brisbane CBD, Toowoomba is Australia’s most populous inland non-capital city with a population of over 100,000, according to ABS statistics. 
In the last year it has grown to be "the strongest-growing region of all of Queensland," according to Australian Property Monitors (APM) senior economist Dr Andrew Wilson. He foresees that activity there will remain strong over the next year or so. 
This can be attributed to Toowoomba’s geographical location as a gateway to the Surat Basin resources and mining areas.
However, he has his reservations about Toowoomba being labeled a 'hotspot'. 
"It was the most affordable of the region, driving everyone to Toowoomba as there’s higher yields there. Because of increased investor activity, it has been highlighted as a hotspot – but the curse of the hotspot could lead to an oversupply of investment properties, pushing down rents and yield," he told Property Observer.
At the moment, Dr Wilson thinks Toowoomba is tracking a similar outcome to Gladstone, with one clear difference.
"The only differentiation is that there are no similar large urban areas as an alternative living area near Toowoomba. In Gladstone, people could live in other areas where it’s cheaper. It sees a lot of drive-in, drive-out workers, some driving in from as far as the Sunshine Coast," he said.
As for the similarities between Toowoomba and Gladstone, Dr Wilson believes that in areas with an oversupply of investment properties, there needs to be investment in the area or population growth in order to maintain the returns investors require.
"Surges in investor activity tend to oversupply the market. It will follow an adjustment process in the medium term as we see in Gladstone," he said.
In the short term, Dr Wilson has seen an acceleration in activity in Toowoomba, and believes it will remain as Queensland’s strongest-growing region in the following months to come.
Ray White Toowoomba principal Andrew Carter thinks Toowoomba’s property market is at the beginning of its recovery.
"We’re at the start of an upwind; we’ve been recovering quite quickly on sales volumes. The number of sales have now recovered to long-term averages," he told Property Observer.
He noted that property prices are starting to trend upwards. This could be due to a new town plan being put in place in that encourages infill development, which has had significant impact on land valuation in certain zonings. 
While Toowoomba has often been compared to Gladstone, Carter thinks the two are vastly different. 
"Toowoomba is the largest inland city. Gladstone is much smaller than Toowoomba. Traditionally, Toowoomba has been supported by the agricultural industry which is still there. All that’s happened adds another dimension to the commercial spots of Toowoomba as a centre," he said.
Toowoomba’s vacancy rate was 1.3% as of September’s end, but Carter emphasises that the area has historically had a low vacancy rate.
"We haven’t necessarily had surging rents like you would expect. We haven’t seen circumstances where there is bidding for property where people have to pay significantly above the asking rent in order to secure the property," he said.
From a commercial perspective, Carter thinks Toowoomba still needs some population growth and optimism.
In addition, Carter does not think Toowoomba has reached a point of oversupply.
"Traditionally, Toowoomba is a very conservative place, not prone to boom or bust movements [compared to] other markets. It’s not the Toowoomba way. I can’t see any evidence that we are in a boom/bust environment. It will still provide very solid investment growth for people going forward," he said. 
He added that Toowoomba will see its infrastructure strengthen with the addition of Australia’s first public airport next year, as well as the Toowoomba Second Range crossing.
"These are major infrastructure projects. If you look at the major fundamentals of investments, investing in Toowoomba is fantastic," Carter said.
McLean Property Toowoomba owner Lynn McLean has lived in Toowoomba all her life. She echoes Carter’s sentiments that the market is doing well.
"The property market in Toowoomba is firing, the enquiry level is high especially from investors. This enquiry is largely from interstate buyers and I often hear complaints from local buyers who miss out on a property, they say they were not quick enough. The enquiry and sale level has definitely increased from this time last year," she told Property Observer.
In addition, McLean says there is a shortage of available land at the moment in Toowoomba, which has slowed the supply of development sites for both units and houses.
In her years of experience, she has seen Toowoomba’s property values protected by the city’s different markets, including the rural sector. 
"Over the last 23 years of investing and selling real estate in the Toowoomba market it has become obvious that Toowoomba is one of the few cities in Australia which offers a very safe environment for investing," she said.
With a slowdown in supply, she has seen rental returns go beyond dollar for dollar, which indicates demand outstripping supply.
"As vacancy rates fall the rents go up and of course the investors are happy, but affordable rent starts to disappear," she added.
She notes that all markets are built on supply and demand, and she foresees demand outstripping supply in both the rental market as well as properties for sale.
Lastly, she reiterates that it is a good time to invest in Toowoomba at the moment.
"There has never been a better time for investment in this region. The new airport, the range crossing, the planned rail system, the city centre redevelopment and the Charlton Wellcamp Enterprise Centre are all indicators of enormous confidence in the region," she said.
<a target="_blank" href="https://mce_host/DLeow@propertyobserver.com.au">DLeow@propertyobserver.com.au </a> 
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Suburb spotlight: Toowoomba

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Located in Melbourne’s northwest, 13 kilometers from the CBD, Glenroy is an up-and-coming suburb that has grown in popularity over the years. This is due to an increase in medium-density developments favoured by first-home buyers and young couples, residential amenities in the area, as well as its proximity to the CBD.
Dr Andrew Wilson, senior economist for Australian Property Monitors, told Property Observer that Glenroy is “part of the gentrification process”.
“The Northern suburbs – Coburg, Pascoe Vale, Glenroy, they’re all being gentrified. Glenroy has easy access to reasonable levels of residential amenities and infrastructure. It is a developing lifestyle market – typical of areas such as Brunswick,” he said.
He added that property in Glenroy is more generally affordable compared to suburbs in the area.
“We’ve seen lots of redevelopment and medium-density developments, which are directed towards that first homebuyer or young couple-type of buyer,” he said.
Dr Wilson has also noticed a shift in the types of buyers in the area, which he attributes to an “emerging cosmopolitan lifestyle”.
With many properties undergoing redevelopment, Wilson believes the area will continue to increase in popularity. Trends point towards smaller types of property or unit development.
According to the latest RP Data report, median unit prices in Glenroy have fallen by 9.4% compared to last year’s figures.
Dr Wilson says there has been an “overshoot with unit development” as developers tend to overshoot underlying demand. However, he does not believe there will be an oversupply of medium-density developments in the middle-ring suburbs.
Barry Plant Glenroy managing director Angelo Nestor, who has 30 years’ experience in Melbourne’s northern suburbs, told Property Observer the property market in Glenroy has “picked up quite well”. 
“The interest rates have helped the market kick a little bit more. The last twelve months have been slower but it’s picked up because of the interest rates. The change in government has helped as well,” Nestor said.
He notes that investors have fueled most buyer activity in Glenroy. In particular, investors are purchasing units in new developments. First-time home buyers are also making a resurgence, preferring townhouses over developments.
Nestor also agreed that the sharp drop in median unit price over the last year is due to oversupply in the area. 
“When the market was going really well, the developers came in and there was a lot of development going on. When the market pulled back, a lot of developers were caught with units. But that’s changing now,” he said.
According to the <a href="/news">latest RP Data report</a>, the median house price for Glenroy is $419,000, down 1.9% on last year. The average discount required to sell a house is 6.6%, while private treaty sales average 75 days on market.
The median asking rent for a house in Glenroy is $320 per week, while gross rental yield currently stands at 4%.
The median unit price in Glenroy is $385,000, down 9.4% on last year. The average discount required to sell a house is 4.6%, while private treaty sales average 84 days on market.
The median asking rent for a unit in Glenroy is $300 per week, while gross rental yield currently stands at 4.4%.
<a href="mailto:dleow@propertyobserver.com.au" target="_blank">dleow@propertyobserver.com.au</a>
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Suburb spotlight: Glenroy undergoing "gentrification"

<a href="https://www.apartments.com.au/developers/consolidated-properties">Consolidated Properties Group</a> (CPG) is approaching the launch of its latest Brisbane riverfront development, Castile, on the dress circle Skyring Terrace in Newstead.

VIP buyers are now being engaged, with a full public sales launch coming later this year.

Positioned as the final opportunity to secure a new absolute riverfront residence on the East bank of Newstead, Teneriffe or New Farm, Castile at 47 Skyring Terrace has been designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a> as a timeless addition to the Brisbane skyline.&nbsp;

[smartcode_project:default project_id=150489 project_image_fid=371113]

The name Castile draws on themes of permanence, sophistication and legacy, reflecting a broader vision centred on enduring architecture and timelessness in the rarest of riverfront positions.&nbsp;

CPG Chairman and CEO Don O’Rorke said the project had been envisioned as a future Brisbane icon.&nbsp;

“With 47 metres of direct river frontage and never to be built out views, 47 Skyring Terrace is the definitive address on the Brisbane River,” O’Rorke said.&nbsp;

[smartcode_project:default project_id=150489 project_image_fid=371114]

“Rather than following trend-based apartment design, Castile draws inspiration from Brisbane’s great heritage buildings, reinterpreting classical architecture into a contemporary riverfront landmark designed to stand proudly for the next 100 years,” he said.&nbsp;

The approved development will comprise 227 apartments across a 25-storey tower alongside a boutique six-storey riverfront building of just 12 residences.&nbsp;

Construction is scheduled to commence in September 2026.

[smartcode_project_cta:default project_id=150489]

Joel Robinson

CPG unveils Castile Newstead ahead of upcoming sales launch

Australia’s online shopping habits have shifted dramatically over the last decade. As eCommerce volumes surged, so too did the frustrations that came with traditional parcel delivery: missed deliveries, long Post Office queues, parcel theft and the challenge of being home during business hours.

Australia Post’s Parcel Lockers emerged as one of the more practical responses to that changing consumer behaviour.

What started as a relatively niche delivery option has evolved into a nationwide network of more than 1,400 self-service Parcel Lockers positioned at train stations, shopping centres, supermarkets and Post Offices across the country. The system allows Australians to send, collect and return parcels 24 hours a day, fundamentally changing how many people interact with deliveries.

The appeal is relatively straightforward: flexibility.

Instead of waiting at home for a delivery driver or rushing to a Post Office before closing time, users can direct eligible parcels to a Parcel Locker location of their choice. Once the parcel arrives, Australia Post sends a notification with a collection code or QR access through the AusPost app, allowing customers to retrieve their package at any time within the collection window.

For apartment residents in particular, the system has become increasingly valuable.

Higher-density living has created logistical challenges around deliveries, especially in buildings without concierge services or secure parcel rooms. Missed deliveries are common, while parcel theft has become an increasing concern as online shopping volumes continue to rise.

Australia Post itself has repeatedly highlighted the growing issue of “porch pirates” during peak shopping periods, encouraging customers to use Parcel Lockers as a safer alternative to unattended home deliveries.

That security aspect is one of the key reasons the Australia Post Parcel Locker network has grown so rapidly.

Parcel Lockers are positioned as secure, monitored collection points that reduce the risk of theft while also improving delivery efficiency for Australia Post. Instead of multiple redelivery attempts, parcels can be consolidated into a single secure destination.

The Parcel Lockers themselves are free to use through a MyPost account and support a range of parcel sizes up to 16 kilograms and dimensions of approximately 35 x 44 x 61 centimetres.

Beyond receiving parcels, the system has increasingly become integrated into the broader eCommerce ecosystem.

Customers can now use Parcel Lockers to return online purchases, while retailers have embraced the model as a way to improve delivery success rates and reduce friction in the shopping process. Australia Post has actively expanded partnerships with major retailers and promoted Parcel Lockers as part of a broader out-of-home strategy.

The timing of that expansion aligns with broader changes in Australian shopping behaviour.

The acceleration of online retail during and after the pandemic placed enormous pressure on delivery infrastructure. Parcel volumes reached record highs, particularly during Black Friday and Christmas periods, with Australia Post delivering more than 100 million parcels during peak festive seasons.

That growth forced logistics providers to rethink the “last mile” of delivery, widely regarded as the most expensive and operationally difficult stage of the process.

Parcel Locker systems have increasingly been viewed as part of the long-term solution.

The concept itself is not unique to Australia. Parcel Locker networks have become common globally, particularly across Europe and Asia, where dense urban environments and apartment living create similar logistical challenges. But Australia’s geography and suburban sprawl made adoption slower initially.

Now, however, the convenience factor is driving mainstream usage.

For commuters, Parcel Lockers near train stations allow parcels to be collected on the way home from work. For apartment dwellers, they remove the uncertainty around access and missed deliveries.

The rise of the AusPost app has also streamlined the experience, centralising notifications, tracking and Parcel Locker access into a single platform. Australia Post has increasingly pushed customers toward app-based delivery management, partly as a way to combat phishing scams and fake delivery notifications, which have become more sophisticated in recent years.

The Parcel Locker model is also beginning to influence property development itself.

Parcel management has become a growing consideration in apartment building design, particularly as online shopping becomes embedded in everyday life. Many new residential developments are now incorporating dedicated parcel rooms or Parcel Locker systems into foyers and communal spaces.

For developers, parcel management is increasingly viewed as part of the broader resident amenity offering, alongside gyms, wellness spaces and communal work areas.

That reflects a wider evolution in how residential buildings are designed.

Apartment buyers are placing greater emphasis on convenience, security and operational functionality, particularly in higher-density urban environments. Parcel delivery, once considered a minor operational detail, has become an increasingly important part of that equation.

Australia Post’s Parcel Locker network sits at the centre of that behavioural shift.

What began as a simple alternative delivery option has evolved into a key piece of infrastructure supporting Australia’s growing eCommerce economy and changing urban lifestyles.

And as online shopping continues to expand, the role of Parcel Lockers is likely to become even more embedded in how Australians live, shop and receive goods.

How Australia Post Parcel Lockers changed parcel delivery convenience in Australia

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;

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;

Diane Leow

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