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The cut-price online estate agency Purplebricks may have to abandon its struggling Australian operation to survive in the United Kingdon, analysts at investment bank Berenberg have warned.
Berenberg slashed its share price forecast for the embattled company from £4.70 to 80 pence.
It switched its rating from "buy" to "sell", sending the stock into an 8.4 per cent tailspin on the British share market on Friday.
The Financial Times reported: "It was more bad news for Purplebricks as Berenberg analysts turned sharply bearish on the online estate agent."
The analysis by Berenberg suggests Purplebricks is “running out of steam” in the UK.
However Purplebricks hit back saying it is looking to boost the business in Australia.
Investment bank Berenberg also said the company might have to quit the US to survive in its core British market.
"Having flown too close to the sun, with operations in five countries and cash burn of circa £7 million [$12.9 million] a month, we believe the group will be forced to seek additional equity at a significant discount or a doubtless expensive debt facility; or to abandon the Australian and US operations and retrench to the UK and Canada," the German private bank said in a note to its clients.
But Vic Darvey, the London-based group's global chief operating officer, rejected the analysis, reaffirming that Purplebricks was committed to the Australian market.
"Our transformation over the last six months is bearing fruit, and we are pleased with the recent growth in instructions and sales," he told The Australian Financial Review.
"Recently, we have boosted our agent numbers and expanded to new regions, bringing our proposition to more Australians."
Darvey joined the firm in February from MoneySuperMarket.com with experience of tech-focused, customer-centric businesses.
Purplebricks shares closed at 129.6 pence on Friday, down about 75 per cent from a mid-2017 high point of about £5.13.
The company's current bout of share price doldrums began in February, when it cut its revenue forecast.
One of the agency's co-founders, Michael Bruce, is now running the US business full-time, having previously divided his time between there and Britain. Meanwhile, his brother Kenny Bruce has only just returned from Australia to focus on the British business.
"In our view, the limitations of the upfront fee model are being laid bare," according to the Berenberg analysts' note which joined other analysts in questioning the business model.
"In our view, the limitations of the upfront fee model are being laid bare and the addressable market is proving much small than initially hoped," the Berenberg analysts said.
In Australia, the newly-installed CEO Neil Tavender and Kenny Bruce have overhauled the charging model, so that half the fee is paid upfront and half on completion of the sale.
"While the local market has softened, the fixed fee model continues to be an attractive proposition for sellers who want to maximise their returns," Mr Darvey said on Sunday.
The pressure on the Australian business was exposed when it reported an $18 million interim loss for the six months to October.
While Purplebricks has sold more than 5000 homes since launching in Australia in September 2016, the company now spends about 84c in advertising to generate a dollar of revenue.
The Australian Financial Review has regularly revealed an exodus of estate agents along with allegations of a "toxic culture" within the company.
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Purplebricks Australian agency may need to be abandoned to save UK mothership

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Ravenswood, the former Victoria country getaway of Offspring star Asher Keddie and her husband, Archibald Prize-winning artist Vincent Fantauzzo, is back up for sale just over two years after they sold it.
Keddie and Fantuazzo secured their sale in late 2017. Now the 43 hectare farm is up for sale at $2.45 million.
There's been no updates to the Hesket property in the Macedon Ranges north of Melbourne.
<a href="https://www.realestate.com.au/property-house-vic-hesket-130865634" target="_blank">The Scandinavian style residence</a> has three bedrooms and two bathrooms. A lake, two dams, a spring fed mountain creek and original shedding amid old yards and English trees feature in the grounds.
The property also lends itself to equine interests, with an original stable complex and tack room.
Keatings Real Estate Woodend agent Sandi Barry-Mueller, who sold the home for Keddie and Fantauzzo, is the listing agent again.
This article was first published in The Weekend Australian
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Ravenswood, the former country getaway of Asher Keddie and Vincent Fantauzzo, returns to market

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Australia's biggest property developer Harry Triguboff says Sydney's apartment boom had relied too much on Chinese buyers.
"We depend too much on Chinese purchasers," the Meriton boss said in a letter emailed last month to local Sydney estate agents.
"Foreigners must only be an additional bonus," said the veteran who has overseen the construction of more than 75,000 residential dwellings over the past six decades.
"I don't want us also to depend on high priced foreign lenders to provide the finance instead of our banks."
"We must stand on our own two feet," he said adding this independence was "far away".
"We will have stability," he said when Australia depends on itself.
Triguboff concedes the Chinese played a big part in pushing the property prices up, and says even in the current reduced turnover were still significant buyers.
On the price front Triguboff says "the rapid price fall is slowing down, maybe completely stopped".
"We will only know later," he indicated.
He says everything must be done to ensure that property prices don't drop any further.
"They should rise otherwise, no one will build," he warned.
"If prices fall the economy suffers."
The developer, who employs 898 staff, was motivated to send the letter to estate agents with a desire to generate sales amid negative media headlines.
"We are all talking about Reserve Bank lowering interest rates, but that is only a minor matter.
"Banks must lend, but they do not because they are afraid.
"Now that we have shown where they were wrong (at the Royal Commission), we must encourage them to lend, and use their discretion." 
The optimist developer says young buyers face a wide choice.
"There's no dreadful hurry ...it's not going to jump up tomorrow."
He said Sydney's planning system must also change.
"A lot of the costs are because of the planning system," he said. 
Ahead of the declining property market, the apartment king posted after tax profits of $384 million in the financial year ending June 2017, according to Meriton's latest annual return which was lodged last month.
The $384 million profit was up from the $230 million profits Meriton saw in 2016.
There was $1.7 billion in revenue.
He said buyers and renters "flocked" to new apartment blocks.
"The old blocks with few facilities and in the wrong places will suffer.
"Some of our leaders think that people suffer when we build units.
"That is nonsense. 
"We see even councils who were against units now trying to allow high rise because they are left behind. 
"We must remember the demand for housing is great," said Triguboff who founded the company in 1963.
He says his was not unduly concerned about the low sales turnover in the short term.
"It is so easy for me to lease," he told Channel 9 finance editor Ross Grenwood.
"I'm not buying any land," he added.
He warned if the State Government refused to fix the planning department and the banks didn't lend that construction would stop.
"And prices will rise because of a lack of supply," he forecast.
This article first appeared in The Daily Telegraph. 
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Harry Triguboff says apartment boom relied too much on Chinese buyers

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Multiplex has pinpointed incomplete grouting as having caused crumbling of precast concrete columns at its $1.2 billion Collins Arch project.
The issue halted work at the Collins Street, Melbourne CBD work site of the CBUS project, nicknamed the Pantscaper.
The builder would not say how many columns had been affected or what levels of the 44-level twin-tower project had been affected.
The embarrassed super fund, which provides superannuation and income stream accounts to more than 790,000 members, prides itself as being a leading commercial and residential property developer across the country.
The concerns triggered an <a href="/news/precast-column-movement-concerns-stops-work-at-cbus-447-collins-street-pantscraper-twin-tower-project">investigation by structural engineers</a>.
"In limited locations the liquid grouting solution between the column and the floor slab has been found not to have fully penetrated, leading to minor spalling of the precast column edges," Multiplex said on Wednesday.
"The columns in question have since been remediated in accordance with the engineers’ recommendation and a full audit of all precast structural columns is expected to be complete later today."
The builder said there were no structural problems with the building, the design or the precast columns separating floors.
But is acknowledged that "spalling", or crumbling, of the pillars had occurred where pressure built up because the grouting was not evenly spreading the load of the column above.
RCP was appointed by Cbus Property in 2015 to project manage the redevelopment of 447 Collins Street, Melbourne. The quantity surveyor is Rider Levett Bucknall.
It is understood CBUS Property board members were briefed on the issue after the stopwork gained national attention on the Nine Entertainment website.
<div class="cbp-l-project-desc-title">
Mark Ford has been the CBUS Property chair since 2006. Ford is a professional director with extensive property industry experience, including previously being managing director, head of DB Real Estate Australia.</div>
The CBUS Property board includes trade union construction boss Dave Noonan who worked as a builder’s labourer, and managed major union sites at several iconic Melbourne landmarks.
<div class="cbp-l-project-desc-text">
Noonan’s qualifications now comprise the RG146 for Superannuation.
<div class="cbp-l-project-desc-title">
Chris Kakoufas is the CBUS Property general manager of development.</div>
<div class="cbp-l-project-desc-title"> </div>
<div class="cbp-l-project-desc-title">A CBUS presentation indicated there were unique design considerations for 447 Collins Street due to its complex form, and focuses on the linking of East and West Towers via the skybridge.
</div>
<div class="cbp-l-project-desc-title"> </div>
<div class="cbp-l-project-desc-title">"Each tower experiences permanent lateral deflections in different directions due its unique geometry," Rob DiBlasi, Director, 4D Workshop said in 2017 at the Council on Tall Buildings and Urban Habitat.</div>
<div class="cbp-l-project-desc-title"> </div>
<div class="cbp-l-project-desc-title">"This is all about construction...by tieing them together it's an extremely stiff building" said DiBlasi.</div>
<div class="cbp-l-project-desc-title"> </div>
<div class="cbp-l-project-desc-title">"The architectural aspiration was to maintain an uninterrupted façade across connecting towers," he advised.</div>
<div class="cbp-l-project-desc-title"> </div>
<div class="cbp-l-project-desc-title">"The skybridge structure has been utilized to link the towers and avoid expansion joints. </div>
<div class="cbp-l-project-desc-title"> </div>
<div class="cbp-l-project-desc-title">"Design considerations include individual tower movement during construction and construction tolerance, skybridge and link structure design and detailing, consequential design effects on stability elements, and skybridge construction methodology. </div>
<div class="cbp-l-project-desc-title"> </div>
<div class="cbp-l-project-desc-title">"The linking of towers can be carried out successfully to create a unique continuous and homogenous architectural form," </div>
<div class="cbp-l-project-desc-title"> </div>
<div class="cbp-l-project-desc-title">The presentation advised internal linking forces can be significant and may affect design, detailing and construction.</div>
</div>
Poor grouting was part of the problem at Sydney's troubled Opal Tower, from which residents were evacuated on Christmas Eve.
Along with the poor assembly of beams, there was also insufficient grout – concrete glue made up of water, cement, and sand – at the joints between the hob beams and panels, causing stress in the panels,<a href="https://www.afr.com/real-estate/residential/poor-design-and-construction-at-opal-breached-national-codes-and-standards-20190221-h1bjch" target="_blank"> </a>the Opal investigation found.
Opal Tower also had unique <a href="https://www.propertyobserver.com.au/https://vimeo.com/293076036" target="_blank">construction challenges</a>.
 
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Grouting issues cause of embarrassing crumbling in CBUS's Pantscraper construction project

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<div class="_2vba1">
Overcoming his dread of the trade union influence, the Meriton apartment developer, Harry Triguboff has ditched Sydney to try his luck in the Melbourne property market.
Triguboff has bought a serviced apartment site at 140-146 King Street near Southern Cross Station, between Bourke Street and Collins Street.
He will develop a Meriton Suites apartment hotel to replace the three storey building.
The deal, worth about $29 million, will be Meriton's first development outside of NSW and Queensland, where it has completed about 70,000 apartments over the past six decades. Triguboff recently admitted the recent Sydney apartment boom had <a href="/news/harry-triguboff-says-apartment-boom-relied-too-much-on-chinese-buyers">over-relied on Chinese foreigners</a>.
The King Street, Melbourne site last sold at $10 million in 2013.
The vacant, three-storey concrete building had been expected to fetch more than $20 million, according to a report by The Age in February.
It was offloaded by Besgate Group, a little-known Sydney-based developer, backed by wealthy Chinese families, who got cold feet about Melbourne’s development market.
Besgate Group, led by the Alexandria-based Justin Gao, had burst into Melbourne’s development market in 2013 when it snapped up three city sites within six months.
Besgate's shareholders are Gao Pty Ltd; Baohua Pty Ltd directed by the Pyrmont-based Hua Gao; and Elda Group Pty Ltd, which is directed by Justin Gao, Xiao Han Sheng, Li Fan and accountant Peter Hedge. 
The site at 140 King Street could support a high-rise tower on the 781-square-metre site with an existing 2016 permit for a 57-storey building with 263 apartments.
ROTHELOWMAN's design for 140 King Street was <a href="http://www.besgate.com.au/portfolio/melbourne-king-street/" target="_blank">reminiscent of a luxury watch wrist band</a>. 
There were 11 offers on the site in the recent tender.
The listing agents <a href="http://www.meltoday.com/content-101910651106054" target="_blank">told the Chinese press</a> the flexible site was also suitable for the development of mixed-use, commercial, student residences, hotels or serviced apartments.
Triguboff's wealth was recently put at $12.3 billion in the Rich List published last weekend by The Australian.  
<div>Considered the most comprehensive study of the country’s wealthy elite ever undertaken in Australia, The List was curated and edited by wealth expert John Stensholt and a global team of researchers and journalists.</div>
<div>
 Triguboff's wealth is apparently set to soar to over $13.5 billion in the upcoming, belated Financial Review Rich List. </div>
“It is very exciting for us to bring Meriton to Melbourne, giving the hotel business a complete presence from Melbourne, throughout Sydney and up to Brisbane and the Gold Coast," Mr Triguboff told Nine Entertainment. 
</div>
<div class="ztzrw">
<div class="_3t7hh">
<div class="_1kIOl">
"Guests have been asking for a long time, ‘when are you coming to Melbourne’, but it hasn’t been the opportune time, until now.
"It is a great location for us and our early discussions with local government made us feel very welcome – they want us to get started quickly," said Mr Triguboff.
Trade union power wasn't the only issue Triguboff has had with Melbourne.
 In a 2017 interview he said he had a problem with the weather.
"I don’t like it that it is cold. I’m too old. Old people need warmth," he said.
Meriton’s director of construction, David Cremona, said the company would seek tenders shortly, with construction due to commence later in the year.
Meriton founded its burgeoning serviced apartment business in 2003.
It currently comprises 18 hotels and 4644 self-catering suites, making it one of the country's largest owner of hotel rooms.
</div>
</div>
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Harry Triguboff overcomes dread of CFMEU trade union influence and buys first Melbourne project site

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The listing of the landmark building, Wirrara in Potts Point coincides with the lease of Arida formally expiring this August.
The luxury retailer of international clothing brands and distinctive interiors has been on a five year lease at $158,000 a year, the local listing agents have advised potential buyers.
It has been trading there for almost two decades.
The tenancy intentions of Arida have not been made public, with Hemmes leaving it to the next owner to negotiate.
The neighbouring Hemmes-run restaurant The Fish Shop has been on a $170,000 a year lease which Hemmes could continue subject to the buyers' wishes.
It has been many restaurants through the decades including Juillet's, Moran, Giraffe, Clochemerle, Lotus and Merivale.
At one point it was leased by Thelma and Terry Clune, the gallerists, who are best associated with the adjacent acclaimed Yellow House. 
The corner building has been listed for sale with a reported $11 million plus guide. 
It has been offered through Alan Levy from Metro Commercial inconjunction with the local R&amp;W office.
The building has been scheduled for May 8 auction by the unassuming Justin Hemmes. 
However the seemingly full of themselves listing agents claim in the marketing it was "without doubt a listing of nationwide magnitude, the coming to market of this block is a headline-worthy event."
Set in the corner of Macleay Street and Challis Avenue, the mixed-use freehold investment located features four large apartments and two retail shopfronts. 
It boasts Merivale’s Fish Shop at street level and the Arida clothing retail outlet next door. 
There is current $520,950 total rental income with $328,550 from the shops and $192,400 from the four upstairs units per annum. 
The total internal 741 sqm area comprises 300 sqm of the ground floor, 225 sqm of the first floor, and 216 sqm of the second floor. 
There are $10,000 estimated council rates, $93,000 water rates and $55,000 land tax. 
Through the years, as the Hemmes family expanded their fashion and restaurant business, they also started buying up the buildings in which they operated their different businesses.
One of their first Merivale coffee shops was in Potts Point.
Justin Hemmes' late father, Mr John bought the property at 61-63 Macleay Street for $1.428 million in 1988 from Peejays Developments.
The property is part of the Santa Fe row of 1905 Queen Anne style terraces that once ran from 45 to 63 Macleay Street.
It is part of the surviving half of a set of 10 terraces, designed by architect Maurice B Halligan, some of them demolished to make way for the Chimes. 
 
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Hemmes listing on Macleay Street, Potts Point offers option to buyer 

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Multiplex has halted construction work at CBUS's high-rise jewel, the 447 Collins Street project after possible movement in precast structural columns on the half-built twin-tower project.
The concerns have triggered an urgent investigation by engineers at Collins Arch.
The decision comes after Sydney's Opal Tower issues with precast over the Christmas-New Year period.
The exact nature of the Pantscraper problem was not clear, according to a report by Nine Enertainment, with neither Multiplex nor its consultant engineers 4D Workshop giving more than limited details.
"A small number of minor column settlements have been identified on the 447 Collins Street project currently under construction," the companies said.
"The builder, Multiplex, places the utmost importance on safety and quality and has already commenced a detailed investigation into the cause, with structural design engineers currently inspecting the columns. As a precaution, work has temporarily stopped while that investigation takes place.”
Rob DiBlasi, 4D Workshop director, assured Collins Street pedestrians that the building was safe.
"There’s no issue with the structural integrity of the building," he told The Australian Financial Review.
"There are some minor issues with regard to precast columns."
CBUS has boasted Melbourne's skyline was to be transformed following the construction of a $1 billion luxury high-rise.
Called the "Pantscraper", after its twin towers joined by a sky bridge, Cbus Property's 42-storey mixed-use development comprises 49,000 square metres of premium-grade office space, a five-star W Hotel and 202 residential apartments.
Designed collaboratively by Melbourne-based Woods Bagot and New York-based SHoP Architects, the Pantscraper will dominate the skyline given its unique silhouette.
Three major legal firms, including King &amp; Wood Mallesons, HWL Ebsworth Lawyers, and Gadens have committed to office space.
Completion was anticipated for late 2019.
The current design is the third, after earlier plans for a 100-storey tower and then a 47-storey tower were rejected, in part because of the shadow they would have cast on the nearby Yarra River.
Heritage groups have criticised the proposed park for being smaller than the 2800-square-metre plaza in front of the previous revered brutalist-style building on the site.
Above ground, the two towers meet at level 33. 
The possible fault of precast concrete on a $1.2 billion project in the heart of Melbourne's CBD will ignite to calls for reforms to Australia's construction industry.
The state have yet  to implement recommendations of last year's Shergold-Weir Building Confidence report.
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Precast column movement concerns stops work at CBUS 447 Collins Street, Pantscraper twin tower project

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Nine Entertainment has reported its chief executive Hugh Marks has been in contact with former Domain chief executive Antony Catalano and Thorney Investment Group chairman, Alex Waislitz over the future of the regional Domain property listings platform.
Bidders are currently in the due diligence on Nine's redundant regional news business, Australian Community Media, with the second round of offers due April 24.
The ACM business includes regional and community titles such as Horse Deals, Cotton &amp; Grain Outlook, Lotfeeding, Collie Mail, Wee Waa News, the Goondiwindi Advocate, Queensland Country Life, Macleay Valley Happynings (published every Wednesday) and the Dubbo Mailbox Shopper. There's also The Byron Shire Echo where Catalano has property interests.
The future of the challenged online real estate group Domain outside of Australia's two biggest cities is potentially in play as part of Nine Entertainment Co's desired sell-off of 170 regional and community newspapers.
Nine's Hugh Marks lunched with Catalano (above) and Waslitz at the Sydney CBD restaurant The Bentley last month, Nine Entertainment reported, sans advising what chef Brent Savage and sommelier Nick Hildebrandt served up.
However the Nine report did note Catalano is "considered loyal" to Domain, the realestate.com.au News Ltd competitor, notwithstanding the extraordinary attack on Catalano's character in the Australian Financial Review after his dramatic rumour-laden exit from Domain in January 2018.
Nine now owns 59 per cent of Domain.
Last November Catalano attempted to block the Fairfax-Nine merger in an eleventh hour folly that might have gained greater traction had he not left his bid until the Sunday evening before the Monday shareholders meeting.
At the time the SMH advised Catalano held about one per cent of Fairfax and Domain shares.
Jason Pellegrino, who replaced Catalano as its chief executive, has presided over a dramatic share slump.
The Domain shares were at $3.22 when he took over, and are now trading at $2.55 million giving rise to speculation, in The Australian, that the highly regarded Greg Elis could assume the top job following his return to Australia.
Domain director Greg Ellis was a guest on the table of investment giant KKR at the Sydney Institute’s 30th black tie dinner, the paper reported this week.
Ellis recently returned to Australia having finished his gig in Germany running digital real estate and car ads business Scout24, which was backed by private equity giant Hellman &amp; Friedman.
Between 2008 and 2013 Ellis was the boss of Australia’s biggest online real estate classifieds REA Group which now has a $9.8 billion capitalisation.
Domain has a current $1.49 billion market capitalisation. It hit the market with a $2.2 billion valuation under Catalano's leadership in late 2017.
 
<a href="https://www.smh.com.au/business/companies/ex-domain-boss-antony-catalano-secures-new-role-20180530-p4zic0" data-track-relatedarticle="inarticlelink"></a>
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Antony Catalano seeking small-time backdoor Domain return

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Bass Lodge, once the weekender of the family of the supermarket giant Coles, has sold for $6,775,000. 
It was bought by the Newell family who are behind manufacturing company Baron Rubber.
It was sold by the local Barr-Smith family, who paid $5.4 million in 2010 before restoring the grand 1915 built home.
Set on a vast 5,340 square metres, the home has four bedrooms, a formal sitting room, dining room, seven-car garage, wine cellar and an internal lift 
Kay &amp; Burton sold the home for a suburb record for a residential house, but failed to achieve near its initial $8 million to $8.5 million guide.
The record house price of $6.56 million was paid last year for the 2800 square metre 14 Bass Street.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/10/10/flinders%201.jpg" alt="">
It comes with four bedrooms, formal sitting room, dining room, light-filled kitchen, wide balcony with views across the water, and a seven-car garage. 
Other features include lift, wine cellar, guest kitchen and dining, concealed laundry, drying cupboard, cloakroom, powder room, plentiful storage, and split system heating and cooling.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/10/10/flinders%202.jpg" alt="">
Bass Lodge is ideally located just a few minutes walk to the shops, cafes and restaurants of the Village, the popular Flinders Hotel, the Flinders Golf Club, the beach and the pier.
The suburb's median house price sits at<a href="/developments/flinders-vic-3929"> $1.67 million</a> according to CoreLogic. 
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Bass Lodge, Flinders trophy home sold for $6,775,000

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Sydney's newest office building has set the record for the most expensive office rental in the Sydney CBD.
It is at an annual net face rate of more than $1800 a square metre at 60 Martin Place.
The 33-level premium-grade building topped out on Wednesday, in a project being undertaken by Investa Commercial Property Fund and Gwynvill Group.
Higher floors have been leased at an annual net face rent of more than $1800 a square metre, while lower floors were averaging around a net annual face rent of between $1200 to $1300 a square metre, Investa group executive Michael Cook said.
Its three latest tenant signings have taken leases of over 9000sq m on terms of between 10 to 15 years.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/3/27/Martin1.jpg" alt="">
Flexible workspace provider International Workplace Group has agreed terms on 4500 square metres within the building's podium across levels one to three, with plans to use them as a co-working hub called "Spaces".
Financial services group, Munich Re secured 2600sq m of space on levels 27 and 28, moving out of its own building on Macquarie Street.
The Japan megabank, Mizuho Bank will relocate from 60 Margaret Street to levels 29 and 30, occupying 1900 square metres.
Other tenants which have committed to 60 Martin Place include Norton Rose Fullbright and Banco Chambers.
"The interesting thing is that incentives had been stubborn, and we are into the teens. I am surprised prices have been sticky on the way down but it is a function of the fact that a lot of organisations struggle to justify the capital expenditure of a fitout," Mr Cook told Nine Entertainment.
"There is more elasticity in rents than fitout costs. I would rather have my incentives and rents a little higher because we are producing a cashflow, and I use the incentives to support a cashflow."
Mr Cook said only four to five floors were still available for lease.
The HASSELL-designed building with state-of-the-art end-of-trip facilities is on track for September completion.
In 2016 Investa Office Management Pty Ltd raised $600 million in equity and another US$150 million through a US private placement after it acquired a 50 percent stake in the 40,000 sqm office redevelopment.
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60 Martin Place sets record Sydney rent

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

Joel Robinson

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

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

Sammut secures approval for debut Brisbane apartment development in Toowong

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

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

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

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

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

Jonathan Chancellor

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