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The Federal Government wants to encourage retirees to downsize from their big family homes.
It is part of Treasurer Scott Morrison's budget package to improve housing affordability with the draft legislation allowing Australians aged over 65 to make an exempt contribution to their superannuation from the sale proceeds.
The Government's aim is to free up the stock of larger houses for young families.
The superannuation break will apply when the elderly move into a smaller home that that "better suits their needs," or on entering the rental market, relocating to an aged-care facility or moving into their adult children’s homes.
The special voluntary superannuation contribution rules could see couples contributing up to $600,000 from the proceeds of selling their home if it has been home for the past decade.
The measure will not commence until 1 July 2018 and as the Age Pension means test will continue to apply, the measure are not expected to be taken up by too many.
The Government has released consultation draft legislation - and here are six important takeouts. 
1) What kind of homes would this apply to? 
The sale of any dwelling – other than a caravan, houseboat or mobile home – could qualify. 
2) Must the home be my main residence?
Yes, but only for some portion of your ownership period. 
3) Could I sell now and contribute after 1 July 2018? 
No. It is set to only apply where the contract of sale is entered into on or after 1 July 2018. 
4) Must my spouse have been on the title to make a contribution? 
No. The consultation draft provides that either you or your spouse must have owned the home. 
5) How much could I contribute?
The maximum downsizer contribution would be $300,000 per contributor. However, the downsizer contribution must come from the proceeds of the sale. So, if a couple sold their home for $500,000, their combined downsizer contributions would be limited to $500,000. 
6) What if I don’t have a super account? 
There is no restriction preventing you from opening a superannuation account to make a downsizer contribution.
I think there is no doubt that the reluctant downsizer demographic has created roadblocks for the orderly flow of home listings across more established areas of Sydney.
Tightly held homes means prices keep going up quicker than normal.
But their reluctance to move isn't solely due to the desire to keep the happy family memories intact.
They really want housing options such as single level patio garden homes that are few and far between in most neighbourhoods.
Additionally they are not that keen on paying stamp duty on any downsized property purchase.
Treasurer Scott Morrison needs to have Premier Gladys Berejiklian introduce a reduced or postponed stamp duty initiative to really make any progress on downsizers.
This article first appeared in the Daily Telegraph.
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jchancellor-FAypfDUnLy

Government to free up stock of larger houses for young families

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GUEST OBSERVER
Investing in Sydney’s real estate market has been a tough call in recent years, with ever-increasing prices putting the squeeze on returns and meaning that investors need to do their due diligence more than ever before. 
According to CoreLogic, the median apartment price in Sydney has increased by a massive 106.2% since 2008 and is now at $750,000. 
With prices at this level, investors need to be savvy and on the look-out for ways to increase capital gains by identifying upcoming ‘hot spots’. There is huge potential in some pockets of metropolitan Sydney, set to benefit from significant future development and infrastructure projects. 
Sydney’s burgeoning North West in particular should be high on an investor’s radar. 
Nestled within the Hills Shire, Castle Hill is a suburb where future growth has been forecast. Key early indicators of growth lie within the current and future plans for commercial and residential developments within the region. 
In accordance with The Implementation Plan proposed by the New South Wales Government, some 33,000 new homes are to be developed in North West Sydney. Estimates by the Hills Shire Council predict the population in Castle Hill will grow by 49.53% by 2036. 
It is undeniable that Castle Hill is an area set for long-term growth and ticks all the boxes for investors. 
To cater for the growth in population infrastructure developments are also currently underway including the $900 million upgrade of Castle Towers and the $8.3 billion North West Rail link. 
Upon completion the Castle Towers redevelopment is set to generate 2,373 jobs and create an enhanced community hub. The North West Rail link is expected for completion in 2019 and will also increase the efficiency of transport connecting residents from Castle Hill Station to Martin Place Station in around 30 minutes. 
To combat rising property prices in Sydney investors are strongly encouraged to continue to seek out growth areas and identify “hot spots” to realise the future potential, rather than to try to buy into markets that have already hit their peak. 
Residential real estate remains the investment of choice with solid medium and long-term returns and those who are waiting in anticipation for market conditions to change may miss out on solid investment opportunities.
Ian Bennett is Director, Colliers International  
 
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Castle Hill tipped as next hot spot for property investing 

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GUEST OBSERVER
After a choppy few months, demand surged again in July with even the struggling WA market starting to hit its stride.
In July, the index hit another new peak, and only one section of the Australian market, NSW apartments, saw a slight drop in demand. Given that the state has been seeing decades of housing undersupply, this is surprising, but it has more to do with affordability concerns impacting demand levels, rather than people not wanting to buy.
Tasmania remains the standout performer, seeing far more people looking to buy than the number of available properties. From both a buyer’s and renter’s perspective, demand is high, which may support new development in key areas. Hobart is the only capital city in Australia where we haven’t seen a building boom and demand levels suggest that now may be the time to start increasing housing supply. Given the size of the market, it may not need many projects to lead to a better balance.
The continued increases in demand would suggest that we will see more price growth, but it’s likely the continued lending rate rises will be the limiting factor. The RBA is clearly unlikely to increase rates in a hurry, but continued increased costs of wholesale funding, pressure from APRA and the new banking tax will mean that banks will pass these costs on to mortgage holders.
<a href="https://www.propertyobserver.com.au/images/2017/08/10/Screen%20Shot%202017-08-10%20at%208.17.17%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/08/10/Screen%20Shot%202017-08-10%20at%208.17.17%20AM.png" alt="">
Foreign buyers are also starting to back off, and we’ve seen a slight drop in property seekers from overseas on realestate.com.au in recent months, likely driven by more taxes aimed at foreign buyers and greater challenges for them to access finance.
New South Wales
NSW remains one of the strongest markets in Australia, however demand levels have been overtaken by Victoria this month for the first time since 2013. It appears that apartment demand is to blame, which is surprising given that the level of development has been so much lower than Victoria for quite some time. The issue is affordability, with Sydney now so expensive that it is pricing out many prospective buyers. Whether these buyers are now looking elsewhere to buy as investors, or alternatively looking to move, is uncertain.
Victoria
Property demand in Victoria overtook NSW for the first time since 2013, driven by greater affordability and population growth. The Victorian market is also seeing very high demand from renters. This is partly driven by a slowdown in first home buyer activity, but jobs growth is likely to be a bigger factor. More jobs means more people and therefore greater demand for housing.
Despite massive levels of new apartment development, demand from buyers and renters for this property type remains strong. Melburnians have been largely resistant to living in apartments, but it appears the time has come for a shift. Lots of supply in the market is driving up affordability and, in many cases, apartments offer  a great lifestyle when compared to a similarly priced house on the urban fringe.
<a href="https://www.propertyobserver.com.au/images/2017/08/10/Screen%20Shot%202017-08-10%20at%208.19.15%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/08/10/Screen%20Shot%202017-08-10%20at%208.19.15%20AM.png" alt="">
Queensland
Queensland’s property market closely follows the Australian average. Not as strong as NSW and Victoria,  but certainly far stronger than WA and NT. Houses and apartments continue to see strong demand which is surprising given recent concerns about oversupply in the state. There are no doubts that challenges continue in inner city Brisbane, with apartment stock aimed at investors being a problem area. This is slowing demand as buyers wait for better quality stock. In other parts of Queensland, demand remains high and the Gold Coast continues to be popular among both buyers and renters.
South Australia
South Australian demand levels hit a new peak in July and while growth is subdued and below the Australian average, it is steady. Although buyer demand growth remains fairly moderate, rental demand growth was much stronger. This is often an early sign of jobs growth, so it may be that the jobs market in South Australia  s doing better than official figures suggest.
<a href="https://www.propertyobserver.com.au/images/2017/08/10/Screen%20Shot%202017-08-10%20at%208.20.48%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/08/10/Screen%20Shot%202017-08-10%20at%208.20.48%20AM.png" alt="">
Tasmania
Is now the time for apartment developers to look more closely at the Apple Isle? Property seekers are certainly curious about apartments in the market, with apartment demand the highest of anywhere in Australia. Demand is high and there is not much to buy, which could be an opportunity for potential developers. Offshore interest also continues to grow in the market, focused mainly on Hobart.
Western Australia
Overall, Perth has been doing it tough with demand well down for some time now, but premium suburbs in the inner west and northern beaches are now seeing strong price growth, which can be considered an early sign of a wider turn. On a state level, demand appears to be rising and we have hit the highest level recorded since 2014. One could say that green shoots seem to be sprouting in WA’s property market, but buyers should remain cautious and be prepared to hold for at least two years.
Australian Capital Territory
Canberra continues to see very high levels of rental demand, making it one of the few markets in Australia where we need more investors. Buyer demand remains strong which suggests that the region’s price growth will continue. Like the rest of Australia however, rising costs of funding will likely drive a slowdown in the fast-paced growth that has been occurring of late.
Northern Territory
The Northern Territory has been showing steady growth in buyer demand for some time now and last month it continued. Although the market was hit hard by the mining slowdown, it appears that other industries have picked up the slack and are leading to increased demand from both buyers and renters. While a recovery seems to be occurring, some areas are doing better than others, with premium suburbs in Darwin in particular seeing stronger levels of growth. 
Nerida Consibee is the Chief Economist at REA Group and can be contacted <a href="https://www.rea-group.com/irm/content/default.aspx" target="_blank">here</a>.
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What slowdown? Demand for Australian property hits a new peak: Nerida Consibee

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<img src="https://counter.theconversation.edu.au/content/81562/count.gif?distributor=republish-lightbox-advanced" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
Half of all Australians are now able to connect to the NBN.
But around 40 percent of eligible households have chosen not to connect to the network. Our modelling shows that subsidising the NBN is key to encouraging more Australians to connect. This would benefit the economy as a whole, but hurt the government’s plans to privatise the network.
The government is currently counting both on receiving ongoing revenue from the NBN, as well as the proceeds from its eventual privatisation. To achieve both goals, the NBN charges for access to the network.
Switching from a pricing model that charges for access to the network to one that subsidises access will mean the government won’t get a return on its investment. 
The NBN’s pricing model
The NBN currently charges internet service providers, such as Telstra, for access to the network. The internet service providers then sell the service on to consumers - businesses and households.
Our model tried to find an NBN access price that would generate the greatest benefit to consumers, internet service providers and the network. We set our model in the future - when the NBN has been fully constructed, the cost of construction has been paid, and the government is preparing to privatise it.
In order to maximise the shared economic benefit from the network, we found that the access price has to be less than zero - a subsidy. The network shouldn’t be charging internet service providers to access the network, it should instead pay them to connect. 
The internet market in Australia is dominated by four large internet service providers (Telstra, Optus, TPG and Vocus) so we can’t expect the subsidy to be fully passed on. But competition means consumer prices would drop, and the number of customers connecting to the network would increase by as much as 25%. The benefit to the economy as a whole would outweigh the costs, but the cost falls entirely on the NBN, which would have to run at a loss. 
The NBN as a public service
We know that regulators want the NBN to benefit the whole economy. This requires more customers to connect to the network. Our model shows that means prices need to be reduced. 
This will weigh on the plans to privatise the NBN. There was a similar issue over access to Telstra’s copper network, which was marked by repeated litigation and public wrangling between Telstra and the Australian Competition and Consumer Commission over access pricing. 
Private companies won’t invest in infrastructure such as the NBN unless they can earn a profit in return. In fact, neither Telstra nor its competitors managed to build a fibre network themselves precisely because they couldn’t agree with the ACCC on how much profit they would be allowed to make from it. 
But the NBN is financed and currently owned by the government. This means it doesn’t necessarily have to run at a profit. 
Our model shows the NBN should be treated like other services the government provides - roads, education and doctors visits. All of these services can theoretically be provided by the private sector but are subsidised because the benefits of broad access outweigh the costs. 
Any guarantee of a profitable NBN also means that the benefit to consumers and the economy will be suboptimal. With the nbn Co. due to finish construction and be polished up ready for privatisation in less than four years, it’s time for our politicians and regulators to start transparent conversations with the public, investors and broadband businesses about how many consumers will be connected to Australia’s broadband future.
<a href="https://theconversation.com/profiles/troy-s-barry-392664" target="_blank">Troy S Barry</a> is PhD Candidate in Economics, University of Western Australia.
<a href="https://theconversation.com/profiles/ishita-chatterjee-392690" target="_blank">Ishita Chatterjee</a> is Economics lecturer, University of Western Australia.
Both are authors for <a href="https://theconversation.com/au" target="_blank">The Conversation</a>.
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The NBN needs subsidies if we all want to benefit from it

Fixed income markets and the economy: RBA's Christopher Kent

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The future of real estate purchasing has long been forecast as digital.
But conducting home purchase transactions over the internet rather than face to face is still a rare occurrence.
We know over 95% of people use the internet and apps to do their property research but the emergence of online auctions has never been widely embraced.
There are several online platforms these days where buyers can bid on properties rather than turn up to an auction or estate agent's office to sign up the deal. These listings tend to be properties that were likely more suited to private treaty, so they get a fillip via their online auction.
Being less frenetic, the bush also seems to have taken to online price per acre auctions of small farms.
<div>Sydney's desired for a showy sale means there have been only the occasional online auction offerings.</div>
Back in 2000 Di Jones Real Estate used pioneering technology to allow the viewing of its auctions live on the internet, but it was without the capacity to accept bidding, in part because of inbuilt time delays.
Within a decade inroom auctions were periodically being run by the industry in parallel with an online auction, opening up to people who could watch and make online bids.
Around five years ago we saw pure online-only property auctions - envisaged as eBay-like portals.
Dubbed as the logical transformative step, it was suggested it all was inevitable part of the online transition in the 21st Century.
Online auctions had been a proven success in other sectors – such as clothes, cars and travel. 
But it seems we are happy with the routine, structure and transparency of traditional property sales that have been relatively unchanged since the 18th Century.
Despite regulatory advancement, real estate agents - and the buying public - have been reluctant to adopt the innovative technology-enabled solution, preferring the face to face contact.
In 2015 a Lilyfield listing with $1.3 million plus hopes was auctioned online. The three bedroom terrace secured 22 bids over a three day period from three bidders.
The winning bidder paid $1,618,000, well above the reserve price. The vendor was also the founder of an auction online website.
The estate agency has since kept its preference for auctions on a Saturday morning.
There is good reason why Sydney's residential heartland loves their onsite 20 minute, pressure-cooker auctions.
Last month a three-bedroom home on Ocean Road Manly was sold by Clarke and Humel Property for $3.45 million.
There were the nine registered bidders until a dramatic pause when a 10th bidder stepped forward for registration having only inspected the offering minutes before. He was the buyer.
And two weeks earlier - also on Ocean Road - a jogger happened across an auction and successfully bid for the home.
Despite all the technological advancement, and our familiarity with it, I'd suggest the onsite ritual is irreplaceable.
This article first appeared in the Daily Telegraph.
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Why suburban onsite house auctions trump online auctions

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GUEST OBSERVER
Concerns about the privatisation of public housing estates should not blind us to the benefits of the transfer of public housing to the not-for-profit community housing sector.
The Victorian government’s recently released housing strategy allows for the transfer of the state’s public housing stock to the community housing sector. In a recent Conversation article, Kate Shaw raises an important question – “Why should the state wriggle out of public housing?” – and condemns the transfer of public housing to private developers for redevelopment.
However, if one is really interested in providing more housing for people on low to moderate incomes, the community sector is the way to go – not public housing.
Criticism of community housing provision – in part because of its role in the UK’s liberal market reforms to public housing – neglects the reality. Community housing has underpinned the growth and viability of what many would see as some of the fairest and best-performing social housing systems in the world — those of Sweden, Denmark and the Netherlands.
Management and/or ownership of land (including state land) by not-for-profit community groups ensures affordability in perpetuity. It is not lost to the private sector. And it can provide the same security as public housing, but with more innovative management practices, such as co-operatives and housing trusts.
<h2>Not-for-profits serve a range of needs</h2>
Importantly, in the Australian context, the not-for-profit sector offers a range of housing options pitched at different household needs. These include rental housing for households on low and moderate incomes and affordable home ownership.
One reason for this flexibility is that, unlike government instrumentalities, Australian community sector providers can borrow against their assets. In the appropriate financial environment (as exists in the aforementioned social democratic countries), they can then grow their asset base to meet a broad range of housing needs.
And it does appear we are slowly moving toward such a financial environment. In its budget in May, the federal government announced the creation of a National Housing and Finance Corporation (NHFC) to offer community housing agencies access to lower-cost loans. While cheaper loans are not the full financial answer (there is still a substantial yield gap between rents and loan costs), the government has established an expert panel to look at this and report back later this year.
On top of these developments, the recent Productivity Commission draft report on human services, including social housing, recommends growth of the sector including an increase in Commonwealth rent assistance. This is vital for community housing viability.
International trends aligned with the direction of policy reform in Australia suggest the not-for-profit community sector is the future for social housing growth. And this could be done in a way that addresses Shaw’s other concern — the privatisation of public land.
On this, I agree with her. Losing valuable, well-located land to the private sector creates an enormous opportunity cost; once sold it will never be available for future use.
And all we might get out of it is a 10% increase (a few thousand units) in social housing stock. But merely to keep social housing stock at the current 3.5% of all housing (the lowest in Australia) we need at least an additional 31,000 in Victoria by 2031.
<a href="https://www.propertyobserver.com.au/images/2017/07/05/expert%206%20july.jpg" target="_blank">Click to enlarge</a>
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<h2>Making up for decades of neglect</h2>
We do have to acknowledge that decades of underinvestment in Victoria’s public housing has left a legacy of housing estates that have gone well beyond repair and maintenance. And, given their low density, these estates are not achieving their potential in terms of either number or quality of dwellings.
In this context, the fact that the state government has set aside $185 million for its Public Housing Renewal Program is to be welcomed.
Some argue that the less-than-ideal result of a public-private partnership renewal of the old Carlton estate demonstrates that mixing public and private housing is problematic.
But what if it was a mix of public and community-managed rental and ownership housing instead?
The community sector can act in the same role as a private developer (with the state not expecting as big a financial reward), renewing the site with a mix of affordable properties for sale.
Unlike conventional private ownership, these would be covenant-protected to ensure, as with equivalent models in the US, that home ownership remains affordable. While privately owned, the properties remain within the affordable housing stock. A community housing association manages their sale and resale.
Also, the rental housing could be a mix of public and community housing. The focus would be on both high-need deep-subsidy households and moderate-income low-subsidy households. Such transformed estates would be genuinely integrated mixed communities, rather than an uneasy balance of high-need public housing at one end and high-end private housing at the other.
Across Australia, many community housing organisations have demonstrated their ability to deliver successful public housing renewal projects with a mix of households and tenure types. They have done so in an integrated and cohesive way, with privately owned units underpinning the financial viability of the projects.
Transfer of stock to the community sector is an important and valuable process of substantial community benefit, both in its own right and as part of a considered process of estate renewal.
Shaw is right. We need much more social housing, and relying on the private sector to drive the process will have an enormous opportunity cost. This will very likely constrain the capacity for future growth and affordability.
But the leaves in the tea cup suggest that the bulk of future growth should be in the not-for-profit sector. The sector can grasp the opportunities offered by policy reform in a way the public sector cannot, and provide sustained affordability and security.
Terry Burke is a Professor of Housing Studies at Centre for Urban Transitions, Swinburne University of Technology and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/terry-burke-1268" target="_blank">here</a>.
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Community sector offers a solid platform for fair social housing: Terry Burke

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GUEST OBSERVER
The many measures adopted to encourage more first home buyers into the property market have so far failed to produce the upswing that everybody had hoped for, leaving many to wonder if there is a solution to the declining rates of home ownership.
But put yourself in the shoes of those contemplating the big step into a lifetime mortgage and there should be no surprises. There is so much uncertainty swirling around property which only serves to discourage first home buyers from making the most important financial decision of their lives.
We all know that certainty is crucial to future planning, whether in business, life or real estate. And some of the negative sentiments that are getting an airing along with the always-on electioneering and point scoring do nothing to engender confidence.
Doomsayers who predict catastrophic falls in property values, despite ample evidence to the contrary, make for scary reading. The forensic examination of every Reserve Bank statement, looking for hints of an interest rate rise, can be equally misleading and off-putting.
You have to read deep and wide to find a rational voice in this debate and that is difficult when people who should know better seek to exploit a complex problem for political gain.
Last week the Greens announced their war on home ownership with a party platform to strip away capital gains tax exemptions and negative gearing. Never mind that negative gearing is the vehicle that many first home buyers are relying upon to get their foot on the property ladder.
But Labor’s weekend declaration that they are going into election mode to be ready for the gift that might arise from the citizenship mess that has embroiled so many politicians, is the real worry.
In the last election, Labor singled out property for special treatment as an investment class, grandfathering their own investment property portfolios but depriving future owners of the same benefits. Is it possible to be any more cynical or self-interested? At least the Greens had the decency to share the pain.
In an environment where many politicians, including those who would be in power in a change of government, have a stated policy intention to reduce property prices, it is hardly surprising that many potential first home buyers are sitting on their hands.
This attack on property investment is rolled out under the banner of equality, purported to enable more people to experience the financial and emotional security that comes with home ownership.
However the effect, in the here and now, is that it adds another level of uncertainty for those who might otherwise take advantage of historic low interest rates and the government stamp duty concessions that have been broadened to encompass both new and second hand homes.
Anybody who can remember the heart-palpitating moment when they bought their first home will know that it was the best decision they ever made. Young people do not need to have their considered decision-making undermined by well-heeled politicians and commentators pursuing their own personal or political agendas.
If it’s equality we’re after, let’s play fair and leave off the scare tactics.
Andrew Cocks is a Managing Director at Richardson &amp; Wrench and can be <a href="https://www.randw.com.au/staff-profiles/2332-andrew-cocks" target="_blank">contacted here</a>.
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Scare mongering the enemy of first home buyers: Andrew Cocks

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GUEST OBSERVER
The NAB business survey reported that business conditions remained elevated in July and that business confidence increased. The survey was conducted from July 25 to 31.
In July, the conditions index rose 1pt to +15. This is well above the long-run average for this series, of +1 (dating from 1989), but below the highs of 2007 ahead of the GFC.
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<img src="https://www.urban.com.au/images/2017/08/09/Screen%20Shot%202017-08-09%20at%208.14.38%20AM.png" alt="">
The components of business conditions for July were: trading conditions down 1pt to +20; profitability up 4pts to +18; and employment conditions held onto earlier gains, steady at +7.
Business confidence moved higher, up 4pts to +12. Business confidence has improved since 2016, mirroring the global trend, and is at above average levels, although it continues to trail actual conditions.
<a href="https://www.propertyobserver.com.au/images/2017/08/09/Screen%20Shot%202017-08-09%20at%208.15.52%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/08/09/Screen%20Shot%202017-08-09%20at%208.15.52%20AM.png" alt="">
How to interpret the survey?
The elevated level of the business conditions index is overstating actual conditions across the broader economy, as it has tended to do since the GFC.
Directionally, the survey suggests that the Australian economy is experiencing a trend improvement in underlying conditions after the slowdown in mid-2016, associated with the July Federal election.
The official data was mixed early in 2017, impacted by weather disruptions. More recently, partial indicators have improved (retail sales, exports, jobs), lending support to our view that the economy will rebound in 2017 from these temporary disruptions, although consumer spending is likely to be constrained by weak wages growth.
<a href="https://www.propertyobserver.com.au/images/2017/08/09/Screen%20Shot%202017-08-09%20at%208.17.09%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/08/09/Screen%20Shot%202017-08-09%20at%208.17.09%20AM.png" alt="">
On employment growth, the previously weak official data has fallen into line with the positive signal from the private business surveys, meeting our expectations. The survey suggests that the recent trend improvement in employment will be sustained in coming months.
On investment, the outlook is less certain, with the survey’s capex measure pulling back in July.
By industry, a strengthening of conditions in 2017 relative to 2016H2 is evident in: construction; manufacturing; and mining. Construction has strengthened on an upswing in public investment; a lift in commercial building; elevated home building activity (ahead of a 2018 downturn); and the waning of the mining investment drag. Mining is enjoying better cash flows associated with higher commodity prices. Manufacturing is benefitting from strength in construction, mining, agriculture and the lower AUD. Positive spillover effects are also evident in wholesale and in transport &amp; utilities.
Retail conditions reportedly dipped in July, possibly in part due to a mild winter, with Sydney experiencing its 2nd warmest July on record. Official data reports that real retail sales jumped in Q2, up 1.5%, after a weather disrupted 0.2% gain in Q1. The uncertainty is around the strength of consumer spending over the second half of 2017 and beyond.
By state, business conditions for July are positive in all states, with the exception of WA. Trend conditions are most favourable in the major non-mining state of NSW and Victoria. In NSW conditions jumped in July, to +22, possibly in part due to unseasonably mild and dry weather conditions. Looking through month to month volatility, the improvement in overall conditions between 2016H2 and 2017H1 is largely driven by the mining states of WA and Qld, as well as SA. 
Andrew Hanlan is senior economist for Westpac and can be contacted <a href="https://www.propertyobserver.com.au/https://au.linkedin.com/pub/andrew-hanlan/3/222/430" target="_blank">here</a>. 
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July conditions elevated, confidence lifts: Andrew Hanlan

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<img src="https://counter.theconversation.edu.au/content/81334/count.gif?distributor=republish-lightbox-advanced" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
The Australian Competition and Consumer Commission has pledged to get tough on any Internet Service Providers that mislead consumers about National Broadband Network speeds.
But how do you know if you’re getting a good deal when you connect to the NBN? How do you know if you’ll be getting the high-speed connection you were promised?
NBN Co is building the infrastructure, with 5.7 million premises now able to connect to the network via fibre, hybrid cable, wireless or satellite. To make that connection though, you have to deal with one of almost 150 listed ISPs.
<h2>Customers are ‘confused’</h2>
The ACCC’s chairman Rod Sims says we should expect a healthy and competitive sector. But he also says many consumers are “confused about broadband speed advertising” and the industry has been “inconsistent in making clear, accurate information available”.
So it is crucial for the ACCC to ensure that companies do not mislead consumers about the speeds offered by their ISP.
The Australian market is different to that in the United Kingdom, where the regulator Ofcom actively provides accurate information to consumers to enable a comparison of services.
Australia takes a different approach, relying on protections available via consumer law, and encouraging industry self-regulation to provide the right information to the consumer.
The experience you get really depends on a range of factors relating to transmission quality, reflected as speed of connectivity and latency (delays) in exchanging information across the internet. Key factors include:
<ul>
<li>how you connect to the internet router in your house (such as by Wi-Fi or ethernet)</li>
<li>the transmission quality from home to the Point of Interconnect (where the ISP’s network connects to the NBN) </li>
<li>transmission quality within the ISP network </li>
<li>transmission quality of the content delivery network. </li>
</ul>
<h2>Measuring the speed of your internet connection</h2>
A basic speed test of any internet connection is a measure of the time it takes to transfer a fixed file from a server. The result is usually given in Mbps (Megabits per second).
Many ISPs, such as Telstra, Optus and iiNet, currently provide internet speed tests for their customers.
But speeds measured this way tend to reflect the connectivity from the ISP to the consumer. The speeds you experience in general use can be significantly lower than the “peak” speed advertised by the service provider. 
To get a better idea of the real speed of your internet connection you should use another speed testing service, in addition to the one recommended by your ISP. 
You should also repeat this measurement at various times of the day and keep detailed notes of any results. Some typical speed tests are:
<ul>
<li>Oz Broadband Speed Test</li>
<li>Ookla</li>
<li>Speed of Me</li>
<li>Speedtest.net</li>
<li>Testmy.net</li>
</ul>
Speeds can change over time for even the fastest NBN connection.
Currently most ISPs offer a higher speed for downloading and lower speed for uploading. As many users often download the same content, the network can be optimised to take advantage of this and offer higher speeds. 
But users also upload unique content, such as photos to social media accounts or files to cloud storage. This does not have the advantage of scale and thus speed of access could be lower. 
As cloud-based storage and content-delivery networks – such as Netflix, Foxtel and others – become more highly trafficked, our requirements are changing. Many users now prioritise more symmetrical internet connectivity, with similar download and upload speeds. 
<h2>How fast should the internet be in Australia?</h2>
In Australia, premises with fibre connections to the NBN can theoretically get a peak rate of 100Mbps. In fact, in Australia there are 5 tiers of NBN connections, varying between Tier 1 (12Mbps download/1Mbps upload) to Tier 5 (100Mbps download/40Mbps upload). 
But the measured speeds can often be slower than promised by your provider.
There are various reasons for this. It could be that there is a problem between the premises and the NBN network, or there could be delays or oversubscription within the ISP network. 
There can be congestion and delays in national and international networks due to inadequate investment by various stakeholders to keep the capacity of the network in scale with the increasing number of customers. 
Your experience can also vary across the day and from one service to another. As the number of users varies quite markedly over 24 hours, the state of the network (NBN, ISP network, Content Delivery Network) can change with various levels of congestion. 
This leads to different speeds of connectivity at different times when accessing different types of services. For example, web access might be slower given the location of a server, compared with an internet video streaming service that might be optimised to deliver the most popular content within the region. 
While many internet service providers advertise a typical speed, in Australia there is no expectation that they should indicate the variability (the range of minimum and maximum speeds).
<h2>When so slow is too slow</h2>
If you think your NBN connection is too slow and not what you were promised, you should raise the problem with your ISP. If they fail to resolve the issue you should report it to the ACCC.
To improve information about broadband speeds, the ACCC is currently running a A$7 million trial of NBN speed monitoring and it wants consumers to be part of it.
Australia could have anticipated these speed issues and established a broadband performance reporting framework as part of access to the NBN infrastructure by providers.
The Australian Communications Consumers Action Network (ACCAN) has been crying out for a scheme to monitor the performance of ISPs.
But this hasn’t happened yet. So for now it’s left to you as a consumer to monitor your NBN connection speeds, and report any ongoing problems to the ACCC which hopes to start publishing speed and performance data later this year.
<a href="https://theconversation.com/profiles/thas-ampalavanapillai-nirmalathas-824" target="_blank">Thas Ampalavanapillai Nirmalathas</a> is director - Melbourne Networked Society Institute, Professor of Electrical and Electronic Engineering, Co-Founder/Academic Director - Melbourne Accelerator Program, University of Melbourne and author for <a href="https://theconversation.com/au" target="_blank">The Conversation</a>.
</body></html>

Australians left to monitor their own NBN broadband speeds

<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;

Jonathan Chancellor

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