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The Gold Coast house-and-land market has sunk to its lowest level in over 30 years.
Residential land and house-and-land packages sales totalled just 980 for the full calendar 2012 year, compared with a long-term average sales of 4,200 per year since 1995, according to the latest quarterly Prodap Report.
This is particularly bad news for developer Stockland, which is selling residential lots and house-and-land packages in six residential communities on the Gold Coast and has 35% of the market.
According to the Prodap Report, the three biggest residential development projects on the Gold Coast are all Stockland projects.
Stockland’s biggest is its Riverstone Crossing project in Upper Coomera, which accounts for 10% of the vacant land market on the Gold Coast. Land in the project is priced between $205,000 and $480,000.
Prodap reports just 22 sales over the December quarter in this project, though up from 15 in the September quarter.
Stockland acquired the 14-hectare site along the Coomera River in 2007 for $15.7 million with plans for 652 lots. To date 337 lots have been sold, with 15 still available and another 75 due to be released over the next 12 months.
Stockland’s two other major projects on the Gold Coast are Highland Reserve also in Upper Coomera, with 19 sales over the quarter (25 in September quarter), and Ormeau Ridge in Ormeau, with 18 sales over the quarter (down from 35 in the September quarter).
In its most recent market update in December, Stockland reported that the new housing market remained “poor” with a “negligible impact” from recent interest rate reductions. The introduction of the $15,000 construction grant available to first-home buyers in Queensland who buy or build a new home since September has also not had an impact on demand.
Stockland's head of residential communities, Mark Hunter, said market uncertainty and a lack of confidence were the biggest problems facing the market.
The Prodap report says there are over 2,800 lots that developers plan to produce over the next 12 months – not all of which will go ahead in the current market – adding that Stockland, Mirvac, Lend Lease and QM Properties have combined sufficient land banked to satisfy total market demand.
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Along with the drop in demand, the report quotes Department of Natural Resources figures showing that Gold Coast house prices fell by 4.5% and units by 7.3% during 2012.
Prodap Report author Bill Morris says such a “grim picture” of the new housing production market has not been witnessed since the 1981-82 recession.
Over the December quarter Prodap records 166 residential lots sales and 64 house-and-land packages sales – a total of 230 compared with 239 sales in the September quarter.
There are 1,117 vacant lots and house-and-land packages for sale on the Gold Coast, with Stockland the most heavily exposed, with 35% of the market.
“The sad news is that not even record low interest rates seem to have had any effect on the volume of sales. Sad but true,” says Morris, who adds that a reduction in council infrastructure charges had no effect on new production.
Morris says the problem is that established houses are cheaper and in many cases better located than new houses.
“In other words, replacement costs are higher than the price of older homes.
“Why is this so? Land prices are still too high, representing more than 50% of the price of the average home. This was not case 10 years ago, when the average serviced block cost $60,000. In 10 years that has risen to $220,000, almost 300% or 30% per annum” says Morris.
Morris says land prices have escalated out of all proportion to house prices over the past 10 years.
“There needs to be a new era of thinking about what level of services constitutes an 'acceptable' house lot. Do we need 'fully serviced' lots? Can we use septic tanks or package sewage treatment for individual lots?
“Should we continue to treat stormwater to very high standards, or should we 'dose' creeks with nitrates to neutralise phosphorous and nitrogen build up?” says Morris.
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Stockland exposed as Gold Coast house-and-land activity falls to worst level in 30 years: Prodap

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REA Group, publisher of Australia's biggest property listings website realestate.com.au, has reported a 25% rise in interim net profits after tax for the half year to December 31 of $51.6 million.
It's Australian division, which generates 90% of group revenue, increased revenue by 21% to $144.7 million.
Paying agent numbers fell by 4% from 9,324 to 8,982 compared with the previous comparable period, but average revenue per agent rose 27% to $1,924 on the back of them taking pricier premium advertising packages.
Site visits lifted by 2% to 19.4  million across its three Australian websites realestate.com.au, realcommercial.com.au and property.com.au.
Australian real estate listings on realestate.com.au declined 2% year-on-year to 749,634.
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REA Group profits up 25% but paying agent numbers fall

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Absentee landlords have been placed on fresh alert against overseas criminals selling their properties after a plot to sell two investment properties in late January was foiled by vigilant Perth estate agents.
Both properties are owned by investors who live in South Africa, and the case follows the foiling of similar scams in <a href="https://www.propertyobserver.com.au/residential/another-nigerian-perth-scam-house-sale-averted/2012101557180" target="_blank">October</a> and <a href="https://www.propertyobserver.com.au/residential/vigilant-applecross-perth-estate-agency-prevents-another-fraudulent-house-sale-nigerian-scam/2012060454969" target="_blank">June</a> last year.
In the last few years scammers have managed to sell two properties they didn't own – one in Karrinyup in 2010 and another in Ballajura in August 2011.
WA Today.com.au reports that scam artists attempted to sell a property worth $700,000 in the northern suburbs of Perth and another in the southern Perth suburbs worth $800,000.
In one case, the agent became suspicious after receiving a phone call from the scammer, who had an African accent, wanting an urgent sale for the property that had just sold two months earlier, said Consumer Protection and WA Police in a joint statement.
“In the second case, the agency had received a request to sell the property supported by copies of fake passports, forged signatures and a letter of verification purportedly from the Australian High Commission in Pretoria, South Africa."
Documents obtained by WA Today.com.au show a date on the letter to the high commission of January 31.
“The alarm was raised when the agency’s sales manager identified warning signs of property fraud he had learned in presentations and educational material provided by Consumer Protection, WA Police and REIWA. In this case, scammers requested an urgent sale and promised the agency future sales – similar tactics used in previous scam attempts.”
The latest attempts are being investigated by the WA Police Major Fraud Squad with a view to identifying the offenders.
“The investigation will analyse similarities between these incidents and past successful and attempted property frauds, such as the links to Africa and the methods of contact. It’s clear that the criminals are again active and could be targeting other agencies now and in the future, so everyone in the property industry needs to be extra vigilant,” said Detective Senior Sergeant Dom Blackshaw.
While the frauds were detected fairly quickly, Commissioner for Consumer Protection Anne Driscoll expressed concern and disappointment that these attempts were not detected much earlier by property management staff.
“It’s vital, where possible, that these fraud attempts are picked up by real estate agents before the scammers even get to first base and certainly well before any documents and personal details of the real owner are sent to these criminals,” Driscoll said.
“It’s important that real estate agents and their employees independently confirm any change in contact details for the properties they manage. It is clearly stated in the scam prevention guidelines issued to agents that confirmation of changes should first be sent to original contact addresses, both physical and email, that are on file. This will alert the real owners should there be an attempt to steal their identity and ultimately their home.
“Agents should be particularly vigilant when a request for change in details comes from an absentee owner, but all transactions should be thoroughly scrutinised to ensure they are only dealing with the true owner. Agents must rely on good procedures to detect these fraud attempts early."
Two weeks ago <a href="https://www.propertyobserver.com.au/residential/how-to-stop-property-scammers-selling-homes-they-don-t-own-david-airey/2013012358923" target="_blank">REIWA president David Airey wrote </a>that the state government has implemented a system "whereby the seller of a property must produce evidence of identity in much the same way as you do when you open a bank account or sign a mobile phone contract".
"This means a 100-point check in most cases, through which the seller has to produce a series of different identity documents such as a passport, driver’s license, rates notice, bank statement and birth certificate. It is almost impossible for such multi-layered counterfeit to occur and hugely reduces the risk of property fraud," wrote Airey.
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Absentee landlords on alert as Perth estate agents foil fresh scammers

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Melbourne office landlords with better quality floor space are best positioned to weather what is expected to be a softer office rental market over the next two years. 
Consultants Charter Keck Cramer (CKC) are anticipating weaker demand for office rentals in the Melbourne CBD and Docklands markets over 2013 and 2014, with not yet fully committed new supply adding to the pool of available space. 
“Melbourne’s central city office market (CBD and Docklands primarily) have been holding up well in the context of the numerous headwinds that have buffeted the economy and global property markets,” writes CKC director Robert Papaleo in a new commentary piece. 
“Although central city office rents are not growing and vacancy rates are trending up, new supply has continued and investors have keenly sought prime assets at lower yields. 
“The softening demand environment and other indicators clearly signal however that conditions in 2013 and 2014 will shift in favour of tenants in an increasingly competitive marketplace where better quality floor space will become more cost-effective,” he says. 
Papaleo says there now a “clear window of opportunity” for both landlords and tenants to respond proactively to the reality of this emerging situation. 
“Owners that act early and decisively will cap their exposure to the downside risk of further weakening in the rental market. 
“Tenants that properly understand their own requirements (and lease obligations) relating to their accommodation will be best placed to take advantage of changing market conditions and the inevitable opportunities as they arise,” he says. 
A further indication of weaker demand conditions going forward is a rise rental incentives being offered by landlords. 
These can include such things as a certain number of rent free months or contributions made by the landlord to the cost of office fit-outs. 
Papaleo says rent incentives have been a “notable feature of office lease negotiations since 2009 in response to GFC induced fears”. 
These incentives eased through 2011 due to a brighter outlook, but rose again through the second half of 2012. 
“The market is implicitly recognising, through higher incentives, that the impending new supply is expected to have a detrimental effect on vacancies. 
“Firstly, there is a relatively high level of uncommitted floor space in some new buildings under construction which will be compounded by vacant floor space being left behind by those tenants moving into the new buildings. 
“This situation is in contrast to what happened in the last supply cycle (2002 – 2008). 
“In the last cycle, demand from anchor tenants was so strong that it was able to (almost completely) underwrite new floor space prior to its completion whilst other tenants were expanding to absorb much of the space being left behind which prevented extended vacancy. 
“Strong market conditions also implied that it was viable for owners to withdraw vacant backfill floor space for upgrading and refurbishment. 
“The weakening rental scenario this time around however will not afford owners the luxury of withdrawing space through 2013 and 2014 which will leave owners fully exposed to vacant floor space,” he says.
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Melbourne landlords with poor-quality office space placed on notice: Charter Keck Cramer

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All immigration signs are pointing to a continued rise in the number of houses and apartments being bought by Chinese immigrants on Australia’s east coast.
According to the ABS, around 17,580 Chinese people settled permanently in Australia in 2012, up from 15,780 in 2011 and 14,720 in 2010.
Short term Chinese visitor arrival numbers - a forward indicator of demand for Australian residential property – are rising at even faster rate.
The ABS reports that Chinese short-stay visits to Australia have more then trebled over the past decade from 190,000 in 2002 to 630,000 in 2012.
Similarly, Indian short stay visits have jumped almost four fold from 45,000 to 160,000 over the same period.
Its not suprising as at the same time Australia's close proximity to Asia, the resilience of its economy driven by the mining boom, a transparent real estate market, and new apartment developments being actively marketed in China and other Asian markets are all enticing factors.
Last year alone there were an extra 85,000 visits from Chinese nationals - an increase of 16% over 2011 – with Chinese tourists now the second biggest visitor group behind New Zealanders, accounting for around one in 10 of the 6.1 million tourists who arrived for holiday or business purposes last year.
The ABS figures cover stays of up to 12 months, more than enough time for Chinese visitors that arrive in Australian on holiday or business to have a look at what’s on offer, in many cases decide they like what the country has to offer them and perhaps buy an apartment close to the Melbourne or Sydney CBD where their children will attend university or a family homes in suburbs in desirable school zones.
Evidence of this trend can be seen in Census 2011 figures, which show the number of Chinese-born people living in Australia has increased by 54% over the five year period since the last census from 207,000 to 319,000 while Indian-born resident numbers increased by 100% from 147,000 to 295,000 and now rank as the third and fourth biggest expat populations in Australia after British and New Zealanders.
Meriton’s Harry Triguboff says that most buyers of his new apartment blocks in Sydney, Brisbane and on the Gold Coast are from Asia while <a target="_blank" href="https://www.propertyobserver.com.au/residential/asian-buyers-vital-to-australian-property-market-morry-schwartz/2011121552862">Morry Schwartz, who heads up Melbourne developer Pan Urban</a>, says they are vital to the success of future residential developments.
Making the permanent move even easier now for high-net worth Chinese and other foreign nationals is the recent launch of the <a target="_blank" href="/news">“Golden ticket” significant investor stream visa </a>that provides non-English speaking immigrants with a four-year visa to live in Australia if they invest $5 million.
Apart from Chinese and Indian tourists, visitor numbers from other Asian countries are also rising with Japan, Singapore, Malaysia, South Korea and Hong Kong all in the top 10 visiting nationality groups.
"New Zealand remains our biggest source of overseas short-term visitor arrivals with 1.2 million trips in 2012 or one in five visitors coming from there, but China is now in second place with one in ten, followed by the UK, the USA and Japan,” says Neil Scott, assistant director of demography at the ABS.
"The top five countries alone provided more than half of last year’s overseas visitors, and there were an extra 85,000 visits from China - an increase of 16%. The next largest increase in visitor numbers came from Malaysia, with a 9% increase.
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Chinese signal property buying intentions in Australia as permanent arrivals numbers rise and visitor numbers jump dramatically

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Christmas failed to spur a pick-up in retail trade in shopping centres and retail strips with sales falling 0.2% in December on a seasonally-adjusted basis despite, following a fall of 0.2% in November and a drop of 0.1% in October.
Expectations were for a 0.3% rise over December.
The figures will be noted by the RBA, which is expecting a recovery in non-mining sectors of the economy such as retailing and manufacturing to take up the slack from a fast-approaching mining investment peak. The largest contributor to the fall was other retailing (-2.8%) followed by cafes, restaurants and takeaway food services (-1.1%) and food retailing (-0.1%).
These falls were partially offset by rises in clothing, footwear and personal accessory retailing (2.1%), household goods retailing (0.8%), and department stores (0.8%).
Over the longer term, the weakest performing industries were household goods retailing (down 0.4% in trend terms) and other retailing (down 0.5%).  The largest contributor to the fall was New South Wales (-0.7 per cent), followed by Victoria (-0.2 per cent), Western Australia (-0.3 per cent) and the Australian Capital Territory (-0.8%). These falls were partially offset by rises in Tasmania (2.0 per cent), the Northern Territory (0.7 per cent) and South Australia (0.1 per cent). Queensland (0.0 per cent) was relatively unchanged. Over the longer term, South Australia was the weakest performing state (down 0.4 per cent in trend terms) whilst Tasmania has fallen in trend terms for 14 consecutive months.  The trend estimate for Australian retail turnover fell 0.1% in December 2012. This follows a relatively unchanged November 2012 (0.0%) and a relatively unchanged October 2012 (0.0%).
In volume terms, turnover rose 0.1 per cent in the December quarter 2012, seasonally adjusted, following a fall of 0.3 per cent in the September quarter 2012.
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Retail sales fall 0.2% in December despite Christmas cheer: ABS

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Construction of Lend Lease’s $1 billion Waterbank urban regeneration project featuring 600 apartments on the shores of the Swan River adjacent to the Perth CBD is set to commence in 2014 following a deal inked with the Perth’s Metropolitan Redevelopment Authority. 
The formal signing of the Project Development Agreement (PDA) follows Lend Lease’s selection in November 2011 as the preferred developer of the project, which dates back to 2008.
<img src="/images/stories/2013/02/riverside1.jpg" width="470" height="336" alt="riverside1">
The Riverside project, designed by architects Hassell, is situated on a six-hectare site on the banks of the Swan River and is one of the city’s key urban regeneration projects. 
Upon completion in 2021 the staged development is proposed to include over 600 residential apartments, commercial office space, a hotel, a variety of retail uses and substantial public spaces. 
<img src="/images/stories/2013/02/riverside2.jpg" width="470" height="335" alt="riverside2"> 
Concept sketches show two high-rise buildings and a host of smaller buildings featuring a row of retail and restaurants on the ground floor in a curve around a beach and gardens, with a dining pier jutting out into the river.
According Hassell, the site will also feature a town square area and a wetlands area. 
“We are delighted to have finalised an agreement with the MRA to deliver this project,” says Lend Lease group chief executive officer and managing director Steve McCann. 
“Lend Lease has significant experience in major waterfront and urban regeneration projects, both within Australia and overseas and we will leverage this expertise to deliver a world-class solution for the people of Perth.”
Lend Lease’s other major waterfront project is the <a href="https://www.propertyobserver.com.au/developments/every-apartments-has-harbour-views-as-lend-lease-unveils-two-barangaroo-apartment-blocks/2012112057997" target="_blank">$2 billion development of Barangaroo</a> in Sydney Harbour. 
Lend Lease will now work closely with the MRA in the design and planning for the project ahead of the expected commencement of construction in 2014.
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Lend Lease signs deal for $1 billion Perth riverside project to feature 600 apartments

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After your spot of shopping on Collins Street, why not pop into the Bank of Melbourne branch at the Paris end for a free valuation of your investment property or a quick read of the latest investment tips from Alan Kohler or Robert Gottliebsen? Or even just sit back and watch Sky Business for a while?
Just don’t expect either of these two economic gurus to be standing around answering personal investment questions when you step into the recently opened 'Investore' at the Bank of Melbourne branch at 233 Collins Street.
<img src="/images/stories/2013/02/investore1.jpg" width="470" height="583" alt="investore1">
Despite the store beckoning you to enter with a collage poster featuring a slice of Alan Kohler's face alongside that of Robert Gottliebsen's, they won't actually be there. 
They will seemingly limit their involvement in the venture to providing half of their faces to the promotional material and allowing visitors to read their investment tips for free.
It’s a rather unusual venture with a Fairfax brand, Domain, sitting alongside a News Limited one, The Eureka Report.
The Investore, as explained by an onsite Bank of Melbourne employee, is not a pop-up shop but a permanent investment lounge with computers and rows of iPads where visitors can obtain free property reports provided by Domain's Australian Property Monitors and read unlocked stories and reports on the Eureka website from Kohler, Gottliebsen and other investment writers.
<img src="/images/stories/2013/02/investore2.jpg" width="470" height="283" alt="investore2">
It’s all part of efforts by the Bank of Melbourne to add extra value to its customers and build the brand and, one imagines, take on the likes of Bankwest, which was the first to pioneer the idea of a funky bank branch offering free coffee, the chance to buy property investment books and this writer's personal favourite, the coin counter.
Certainly, Bank of Melbourne been trying to separate itself (in the minds of customers) from its big four bank parent Westpac, with signs in Bank of Melbourne windows promising lower mortgage rates than the big four banks.
In addition to the free property reports and a browse of the Eureka website, there’s also the chance to sign up for free property and investment seminars presented by Business Spectator editor James Kirby and Consumer Affairs Victoria.
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Bank of Melbourne offers free property reports and investment tips but don’t expect a chat with Alan Kohler

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Mooted changes to superannuation tax rules have come under fire from former federal Labor superannuation minister Nick Sherry. 
The mooted unconfirmed changes, which would affect those with superannuation balances in excess of $800,000 to $1 million, comes as property continues to grow as an investment class for those with a self-managed super fund and with big industry super funds looking to offer members more flexibility to re-weight their portfolios more heavily in favour of property.
At the same time industry super funds are looking to invest more heavily in income-generating commercial property assets as flagged by <a target="_blank" href="https://www.propertyobserver.com.au/commercial/australiansuper-to-double-commercial-property-investments-as-part-of-diversification-play/2012102457425">AustralianSuper chairwoman Elana Rubin in October last year.</a> 
SMSF income is currently generally taxed at a concessional rate of 15% with around a third of SMSFs have assets in their portfolios worth more than $1 million, according to ATO figures.
Commercial property comprising more than 11% and residential assets about 4% of the portfolios of SMSF funds with assets worth more than $1 million. 
It has been speculated Labor plans to use the next federal budget to target the wealthier families who get disproportionate tax advantages in super as part of its strategy to appeal to its traditional supporters, lower and middle-class earners.
The unconfirmed speculation suggest Labor is proposing to pare back around $30 billion in annual tax concession on super, which are set to rise to $45 billion by 2015/16.
It is also considering a tax on withdrawals made by individuals with super account balances of at least $800,000.
In last year’s budget it signalled its intention to target super tax concessions when it increased the tax on super contributions from 15% to 30% for those earning over $300,000, and has reduced the general tax-free contributions cap to $25,000 from $50,000 a year. 
Nick Sherry, who was federal superannuation minister from 2007 to 2009, is urging the government not to change the way it taxes super and consider other ways to raise revenue, including cuts to contributions to generous public service super. 
Sherry told today's The Australian Financial Review, the current tax treatment for super was “appropriate” though he did add that there were areas within the super system that require attention. 
He said the current retirement access age for super of 60 should be raised to 67, which is what the pension access age will climb to over the next decade. 
The retirement access age allows people to work part-time and draw down their super at the same time.
“The indirect policy response of those two policy changes would be to constrain to some degree the growth of super tax expenditures, and that’s the area I think governments need to focus on,” he said.
He also called for the government’s contribution to military super should be cut from about 28% and public sector super from 15.4% and said there was “no justification” for such a level of contribution “above the community standards”.
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Mooted super tax changes a concern for SMSF property investors: Nick Sherry

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The Gold Coast has replaced the outer south-west Sydney regions of Fairfield and Liverpool as having the highest proportion of home owners more than a month behind on their mortgage repayments.
The Gold Coast east market (including <a href="/news">Surfers Paradise</a> and <a href="/news">Broadbeach</a>) ranks as the worst-performing region, with a delinquency rate of 2.44%. The Gold Coast west (suburbs including <a href="/news">Nerang </a>and <a href="/news">Carrara</a>) ranked second, with a delinquency rate of 2.08%, according to the latest Fitch Ratings Australian Mortgage Delinquency report for the six months to September 2012.
The two markets ranked fifth and sixth in the March 2012 Fitch report have improved in line with the national trend, but not at the same pace as other regions.
At its current delinquency rate, the Gold Coast east region would have ranked as the eighth worst performing region in Australia six months ago (March 2012 report).
But demonstrating that tourism-dependent regions have not benefited to the same degree as other parts of the country from interest rate reductions and improved affordability, the Sunshine Coast ranked fourth most delinquent region with a 30 days-plus arrears rate of 1.89%. The NSW central coast market ranked sixth, with a delinquency rate of 1.81%.
All are well above the national delinquency rate, which improved from 1.6% at the end of March 2012 to 1.4% at the end of September, to be currently significantly below the five-year average of 1.56%.
“Tourist areas are less affected by monetary policy and more by the high Australian dollar, housing prices, occupancy rates and rental yields,” says Fitch.
“This is evident in popular tourist destinations being among the worst-performing postcodes. “
On a postcode basis, the well-known tourist destination of <a href="/news">Nelson Bay</a> in the NSW Hunter region remains the worst-performing postcode by value of mortgages in arrears, with a 30+ day delinquency rate of 6.6%.
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In the previous March survey, Fairfield and Liverpool ranked as the worst-performing region in Australia, but in line with an improving outlook for the western Sydney market and parts of it being considered investment hotspots –<a target="_blank" href="https://www.propertyobserver.com.au/landlords/investors-returning-in-droves-to-outer-western-sydney-with-granny-flat-appeal-htw/2012121158164"> granny flat conversions are growing increasingly prevalent </a>– its delinquency rate improved from 2.82% to 1.82% and its ranking has fallen from first to fifth most delinquent market.
Similarly, the delinquency rate improved noticeably in the outer south-west Sydney region from 2.78% to 1.99% between March and September.
Another region on the western outskirts of Sydney, <a target="_blank" href="/news">Blacktown</a>, which was among the 10 worst-performing regions by value until September 2011, “continues to perform remarkably”, says Fitch, with a delinquency rate of 1.55% at the end of September 2012.
Fitch notes that most of the 10 worst-performing regions were in Queensland, not NSW, as was the case in March 2012.
“House price stagnation in Queensland particularly affected Gold Coast east ? which has been among the worst performing regions since September 2008 ? and the Sunshine Coast. Other regions in Queensland, which have been historically characterised by serviceability constraints, remained among the worst performing regions despite their remarkable improvement following cash-rate cuts.
“For example, delinquencies in Ipswich and Logan City, which started to increase at the beginning of 2011, have improved significantly (100bp and 91bp, respectively) in the six months end-September 2012,” says Fitch.
 
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Melbourne dominates the best-performing regions, with five of the top six locations led by northern middle Melbourne (suburbs like <a target="_blank" href="/news">North Melbourne</a>, <a target="_blank" href="/news">Kensington</a>, <a target="_blank" href="/news">Ascot Vale</a>) with an arrears rate of just 0.55% compared with a rate of 0.7% six months ago.
The affluent lower northern Sydney market (including million dollar suburbs like <a target="_blank" href="/news">Cremorne</a>, <a target="_blank" href="/news">Kirribilli </a>and <a target="_blank" href="/news">Neutral Bay</a>) ranks second with a 30 days plus arrears rate of 0.56%, up from 0.63%. 
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Commenting on the national improvement in the delinquency rate, Nomura banking analyst Victor German says the sharp but consistent improvements seen in delinquency rates coincide with the 50-basis-point and 25-basis-point interest rate cuts announced by the RBA in May and June 2012, respectively.
“With further 25-basis-point interest rate cuts put through in Oct and Dec 2012, we will be looking for signs of further improvement in delinquency rates during the upcoming reporting season,” German says.
On a state-by-state basis, Queensland has the highest arrears rate (1.41%), followed by NSW (1.25%), WA and Tasmania (1.2%) and South Australia (1.19%). The remaining states are all below 1%.
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Gold Coast replaces Sydney south-west fringe as most mortgage delinquent region in Australia: Fitch Ratings

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]

Larry Schlesinger

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