<html><body>
Private investors or a syndicate of private investors may be interested in a Woolworths Service Station and adjoining development site listed for sale and offering a potential yield of around 7.5%.
The Woolworths Service Station stands at 258 Beenleigh-Redland Bay Road in <a target="_blank" href="/news">Cornubia</a>, a busy road between the Gold Coast, 54 kilometres to the south and the Brisbane CBD, 32 kilometres to the north.
It stands on a 6,031-square-metre site, with the corner portion of the site available for further development.
The service station is branded ‘Caltex Woolworths’ – one of 550 such petrol outlets located around the country.
It is leased by Woolworths on a 20-year lease, which expires in 2022.
The site is zoned for residential use but according to the investment memorandum prepared by Jones Lang LaSalle, it could be developed as a retail outlet subject to planning approval from Logan City Council.
The property brings in current net income of around $249,555 per annum with CPI annual increases capped at 4%.
The property is being marketed for sale by private treaty by Sam Hatcher, manager of Queensland retail investments at Jones Lang LaSalle, who expects it to sell for around $3.4 million, representing a yield of around 7.5%.
Refurbished 7-Eleven petrol stations have proved popular investments for self-managed super funds and retirees, with dozens selling on strong yields over the past 18 months.
In December last year<a href="https://www.propertyobserver.com.au/news/more-than-%2440-million-worth-of-7-eleven-service-stations-sold/2012121458473">,</a> <a href="https://www.propertyobserver.com.au/news/more-than-%2440-million-worth-of-7-eleven-service-stations-sold/2012121458473">$40 million worth of 7-Eleven service stations</a> sold at auction in Brisbane and Sydney, which achieved a 100% clearance rate and yields averaging 6.9% in Brisbane.
“Interest is expected from private investors with the opportunity to develop (subject to council approval) on the adjoining parcel,” says Hatcher.
“The opportunity also includes an adjoining site on the corner of Beenleigh-Redland Bay Road which could be used for future retail development (STCA).
“In addition, Fabcot Pty Ltd (Woolworths Development Company) have acquired a supermarket site approximately two kilometres from the service station further strengthening the desirability of this store to Woolworths Fuel,” says Hatcher.
</body></html>

lschlesinger-FZcF9M3vE6

Woolworths service station to tempt private investors with 7.5% return

<html><body>
The mining boom has pushed up demand for accommodation in hotels, motels and serviced apartments from those working on projects in the mining industry.
The chart below prepared by valuers at LandMark White shows how occupancy rates have risen more or less in line with rising mining investment over the last few years.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2013/02/lmwfeb6.gif"><img src="/images/stories/2013/02/lmwfeb6thumb.gif"></a>
</body></html>

What the mining boom has done for hotel occupancy rates: Chart of the week

<html><body>
Borrowers risk a headache and frustration if they expect consensus from the major banks about the direction of interest rates in 2013.
Westpac chief economist Bill Evans is tipping one more rate cut in March; ANZ says possibly two rate cuts but maybe not in March; while the Commonwealth Bank’s Michael Blythe says there could be no more rate cuts in 2013.
NAB has yet to update its position, having forecast three more rate cuts last week when surveyed by Bloomberg.
The key issue appears to be how the non-mining sections of the economy will fare over the year and whether they will pick up the slack from the resources sector.
Inflation is expected to remain low throughout the year, providing scope for further rate cuts if they are needed.
In a note following yesterday’s decision, Bill Evans says there is “considerable encouragement in the [monetary policy] statement for our near term view that they will decide to cut rates by 25 basis points at the next meeting on March 5”.
Evans says the most important justification for this expectation is around the sentence in the final paragraph of the statement:
"The inflation outlook as assessed at present would afford scope to ease policy further should that be necessary to support demand."
“Our experience is that use of that word ‘scope’ in a forward sense indicates a decent chance that the bank will move at the next meeting,” says Evans.
He also points out that not much has changed in the domestic economy since the RBA last met in December, with “two extra months of low rates have not provided the board with much encouragement that things are turning”.
Evans notes the RBA’s “modest uplift in the assessment of the housing sector” but also fresh concerns around the outlook for employment growth and weak credit growth in both households and firms.
ANZ has moderated its expectations about further rate cuts.
Having previously forecast the cash rate to fall to 2% by year-end, ANZ says it is now “a little less confident about this call”, though the bank says its “expectations for employment growth and unemployment still suggest significant risk of at least two further rate cuts, even though the global picture appears to be improving”.
“Just as the mining boom kept Australia outperforming during recent years of global weakness, this effect will be a drag for Australia in coming years.
As for a March rate cut, ANZ appears to be hedging its bets at present and waiting for further data.
The bank says the RBA is “comfortably in assessment mode, waiting to see whether its policy easing to date is going to be sufficient to ensure enough of a pick-up in the non-mining sectors of the economy to offset the expected moderation in mining investment”.
“While the chances of a rate cut in March appear to have fallen somewhat, key to the near term path for the cash rate will be incoming labour market data and the outlook for non-mining investment,” says ANZ.
According to ANZ, the capex survey released on February 28 now takes on significant importance “given that it will include firms’ initial estimate of investment intentions for fiscal year 2013-14”.
The Commonwealth Bank’s Michael Blythe expects the cash rate to remain unchanged at 3% during 2013.
“Many of the forces that drove rates lower in 2012 have abated and the transition to non?mining led growth is underway,” says Blythe.
However, he tempers this by saying that an easing bias “persists” and would be triggered by any stumble in the non?mining economy.
“The RBA game plan during 2012 moved along the lines of providing some defence against global risks, moderating some of the pain imposed by a strong currency and fiscal consolidation, and getting the transition towards non mining led growth underway.  It may not be quite 'mission accomplished' but a lot of progress has been made,” says Blythe.
“The RBA notes that downside risks to global growth have ‘abated’, even if it is ‘for the moment at least’.
“Most importantly, growth in China has stabilized at ‘a fairly robust pace’ and commodity prices have ‘firmed’.
“Public spending is expected to be ‘constrained’ but the RBA has no doubt taken some comfort from the government’s decision to abandon the hard edged budget surplus commitment,” Blythe says.
</body></html>

Big four banks divided on likelihood of March RBA cash rate cut

<html><body>
Piercing studio Body Pleasure Piercing has agreed to pay around $1,900 per square metre per annum to rent a 71 square metre shop on Melbourne’s Flinders Lane.
 
The tenant has taken a three year lease on the ground floor shop at 289 Flinders Lane (Carlow House) at a net rental believed to be around $135,000 per annum. 
The deal was brokered by Savills Australia retail director, Michael Di Carlo, along with colleague Jeremy Marmur. 
The Flinders Lane shop is the first CBD lease for Surf Coast-based Body Pleasure Piercing, which currently operates stores in Geelong, Corio, and Prahran. 
"This has been a natural progression for a firm which has taken body piercing to a new level on the surf coast and will now introduce it to a new client base in a CBD location ideally suited to a company with strong links to the fashion industry, ‘’ says Di Carlo.
</body></html>

Piercing studio rents space on Flinders Lane, Melbourne at $1,900 per square metre

<html><body>
The Perth house price index rose 2.9% in the final quarter of 2012 to lead a 1.6% gain across the combined seven capital city housing markets, according to preliminary ABS figures.
Sydney (2.3%), Darwin (2.6%) and Canberra (2.1%) also performed strongly with more modest gains in Melbourne (+0.7%), Brisbane (+0.7%) and Adelaide (+0.8%).
Hobart was the only capital city house index to record a fall (-1.4%) over the quarter.
Australian Financial Review columnist and economist Christopher Joye tweeted that the quarterly rise of 1.6% "smashed" expectations of a 0.3% gain, while bearish economist Steve Keen noted that house prices rose as his mortgage accelerator predicted and "still no better than CPI inflation rate".
AMP Capital Investors chief economist Shane Oliver said the ABS data confirms other house price data in indicating a gradual housing recovery underway.
RP Data-Rismark has house prices up <a target="_blank" href="/news">1.2% over January.</a>
The stronger preliminary December quarter results follows a weak September 2012, with a preliminary estimate of a 0.3% September quarter gain revised down to a 0.1% fall.
Over 2012, house prices are up 2.1% based on preliminary ABS estimates.
Annually, house prices rose in Darwin (+10.1%), Perth (+5.6%), Sydney (+4.2%), Brisbane (+0.7%) and Canberra (+0.3%) and fell in Hobart (-6.1%), Adelaide (-0.4%) and Melbourne (-0.2%).
According to the ABS, the rise in the Perth house price index was consistent across a range of clusters while in the case of Sydney, houses priced below $750,000 contributed most to the rise in the December 2012 quarter.
The revised negative movement in the September quarter 2012 was the result of falls in Sydney (-0.5%, revised from +0.3%), Adelaide (-0.8%, revised from -0.6%), Melbourne (-0.1%, revised from +0.2%), Canberra (-0.6%, revised from -1.1%) and Hobart (-0.7%, revised from +0.2%). This was partially offset by rises in Perth (+1.1%, revised from +1.8%), Brisbane (+0.4%, unchanged) and Darwin (+0.3%, revised from -0.5%).
The ABS uses a stratification approach to control for compositional change in the sample of houses used to compile the House Price Indexes each quarter.
This approach stratifies (clusters) houses according to two characteristics: the long-term level of prices for the suburb in which the house is located, and the neighbourhood characteristics of the suburb, as represented by the ABS Socio-Economic Indexes for Areas (SEIFA).
</body></html>

Perth leads capital city house prices up 1.6% in December 2012 quarter: ABS

<html><body>
The Reserve Bank has, as expected, left the cash rate unchanged at 3% today following its February monetary policy meeting.
A poll of 28 economists carried out by <a target="_blank" href="/news">Bloomberg last week</a> found that 24 expected the RBA to leave the cash rate unchanged today.
Preliminary figures released by ABS today revealed that capital city house prices increased by 1.6% over the December quarter, following a revised 0.1% fall over the September quarter, indicating that previous rate cuts may be starting to have an impact on the housing market.
Commenting on the decision, RP Data national research director Tim Lawless said the RBA was likely to be "reasonably satisfied with how the housing market has played out since they embarked on the rate cutting cycle back in November 2011".  
"Since that time dwelling values across the combined capital cities of Australia have increased by 0.8%, and values are up 3.1% since bottoming out at the end of May last year.  
"Most other indicators are also showing some subtle improvements, albeit from a low base.  
"Consumer confidence has shown some improvement, commodity prices are once again on the rise, and share markets have shown some consistent gains as well.  The big wild card remains the labour market; how high will unemployment go and at what level will the RBA react with a further cut to the cash rate," he says.
Michelle Hutchison, spokesperson for financial comparison website RateCity.com.au, said that while there was no  cut from the Reserve Bank today, "it is possible that we’ll see lenders make an unprecedented move to cut their rates out-of-cycle this year".
"Lenders have kept 40 basis points on average from variable home loans since rates began to fall and with wholesale funding reportedly lower, they have room to move," she says.
"Borrowers need to keep a close eye on their lenders, find out what rates you’re paying and compare it to the rest of the home loan market using RateCity. The slow lending market is set to continue so borrowers are in a great position to haggle for an even better deal.”
</body></html>

RBA leaves cash rate on hold at 3% in February 

<html><body>
Sales of strata offices in the Melbourne CBD have begun strongly in 2013 after being flagged as a potentially attractive investment option last year.
Owner-occupiers and investors have been buyers of strata offices in the first two months of 2013.
The sale of 1 Elizabeth Street Melbourne for $940,000 by agents DTZ represented $4,921 per square meter and was purchased by YC Travel who intends on occupying the space.
This is in contrast to a previous sale in the building in 2011 for $800,000 for a full floor strata office.
The property had been on the market for over 12 months, but upon advice from DTZ, the previous owner removed the existing dental practice fit-out to reposition the property in the market.
“Within a week of the removal of the previous fit-out we received multiple enquiries, with the offers ranging from $840,000 up to the $940,000 negotiated sale price,” said DTZ agent Craig Hembrow.
Also sold in January was level three at 250 Queen Street.
The 420 square metre floor sold for $1.85 million through Kliger Wood Real Estate, representing around $4,404 per square meter.
Selling agent, Grant McKenzie says the sale represents an indicative yield of 7.46% based on the current rent for a whole floor in the building.
The property was sold with a lease in place consisting of $138,000 net rent per annum on a four year lease with a four year renewal option and 4% annual rental increases.
<a target="_blank" href="https://www.propertyobserver.com.au/office/small-business-snapping-up-melbourne-cbd-strata-offices-for-as-little-as-%2495000-dtz/2012121358460">Last year Property Observer reported</a> that strata office space in the Melbourne CBD was being acquired by small businesses as their business premises for as little as $95,000, according to property services group DTZ.
A 2012 Urbis Melbourne strata office market report calculated that there are some 1,800 strata units within the Melbourne CBD, with an average sales turnover approaching 130 units per annum – this represents 7% per cent of total stock.
The report notes that prior to 2000, the market was characterised by the creation of strata units from the conversion of older, conventional office buildings, with few purpose built facilities.
Sales completed towards the end of last year include an office-warehouse property on Ricketts Road in Mount Waverley, which sold through Crabtrees Real Estate sold for $1.26 million in November.
The site has a total building area of 695 square meters inclusive of 191 square meters of air-conditioned offices.
It was purchased by owner-occupiers and brickwork specialists, Byrne Construction Systems.
The property is part of a commercial strata development located within close proximity to the Monash Freeway.
</body></html>

Melbourne CBD strata offices continue to be snapped up.  

<html><body>
A mortgage war between the four major banks and the smaller banks is looming as APRA figures show regional banks Bendigo &amp; Adelaide Bank and Suncorp along with investment bank Macquarie Bank and mutual bank Members Equity Bank competed strongly for new mortgage customers in 2012.
This week Westpac signalled its intentions by becoming the first major bank to currently offer a <a target="_blank" href="https://www.propertyobserver.com.au/news/westpac-lead-the-big-banks-below-5-on-nfixed-home-loans/2013020659208?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news">fixed-rate home loan below 5%</a>, while its subsidiary brands RAMS and St George have also cut their fixed-rate offerings.
Fairfax economic commentator Michael Pascoe told David Koch on Sunrise this morning that all a customer had to do was walk into his or her bank, show a loan approval from a lender like ME Bank offering a lower variable rate, and the bank would match it or beat it – echoing similar sentiments made by Business Spectator’s Robert Gottliebsen.
Pascoe says variable mortgage holders should not be paying an annual interest rate of more than 5.5%.
Tim Brown, CEO of mortgage aggregator VOW Financial, which has 600 mortgage broker members, told Property Observer recently that he expected banks to launch their discounted mortgage offerings over the next two months as they looked to improve their mortgage settlement numbers ahead of reporting season.
But he says it is possible to get a discount of up 100 basis points just by shopping around.
“Some of these discounts are advertised, but the bigger ones are a negotiation dependent on the standing of the borrower,” he says.
Property Observer's analysis of APRA banking figures for the 2012 calendar year reveals that Bendigo &amp; Adelaide Bank and Suncorp increased their owner-occupier home loans books by more than $2.5 billion each, achieving annual growth rates of 19.4% and 12% respectively.
This compares with average industry mortgage growth for owner-occupier lending over 2012 of just 4.1%, according to RBA figures.
Click to enlarge
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2013/02/banksfeb8.gif"><img src="/images/stories/2013/02/banksfeb8thumb.gif"></a>
Source: APRA * Commonwealth Bank and Bankwest figures combined from November 2012, Bankwest mortgage book around $38 billion.
The January 2013 competition index compiled by mortgage broker AFG reveal that Suncorp, in addition to performing well in its home state with 8.2% of the Queensland market and ranking as the fifth biggest lender, also performed strongly in NSW (sixth biggest lender with 9% of the market) and with some success in WA (eight biggest with 3.1% of the market) and Victoria (seventh biggest, with 2.8% of the market).
The APRA figures also show that Macquarie Bank was another stand-out home loan provider over 2012, with the fastest-growing home loan book of all bank lenders.
Over 2012, Macquarie doubled its owner occupier mortgage lending book from $1.55 billion to $3.17 billion as it returned  strongly to mortgage lending following its post-GFC exit.
Macquarie also teamed up with <a target="_blank" href="/news">Mark Bouris’s Yellow Brick Road franchise venture in November</a> to provide wholesale funding for its mortgage lending.
Another strong performer was mutual bank Members Equity (ME) Bank, which provides discounted home loans to eligible super fund and union members.
ME Bank currently offers a standard home loan rate to members of 5.88% compared with an average standard variable home loan rate of 6.42% offered by the major banks and is one of a number of lenders offering a one-year fixed rate at 4.99%.
Among the major banks, NAB was a strong performer, growing its home loan book by nearly 10% - more than double the average industry growth rate.
NAB offers the lowest standard variable rate of the major banks at 6.38% and has maintained this ranking for the past 43 months as part of a pledge to customers.
ANZ managed to growt its mortgage book by 6%, but both the Commonwealth Bank and Westpac – the two biggest home loan providers in Australia – grew at well below the industry average.
</body></html>

Mortgage war looms as smaller banks show they are more than willing home loan providers: APRA figures

<html><body>
GPT is reportedly looking to sell its half-share in the super-regional Erina Fair Mall on the Central Coast, according to the Australian Financial Review.
The mall is considered one of the retail jewels on the central coast, about an hour's drive from Sydney.
<img alt="erina" height="314" width="470" src="/images/stories/2013/02/erina.jpg">
GPT’s half-share in the 113,700-square-metre centre was valued at $392.9 million as of June 30, 2012, and it will reportedly be seeking around $400 million.
It paid in excess of $80 million to acquire its half share of the mall in June 1992 from the Capita Statutory Fund.
The mall is jointly owned by the Australian Prime Property Fund Retail (APPRF) and is managed by Lend Lease.
It was built in 1987 and is the largest mall on the central coast.
<img alt="erina1" height="195" width="470" src="/images/stories/2013/02/erina1.jpg">
In 2003, GPT and APPRF spent a combined $210 million on a redevelopment of the centre including adding a Coles supermarket and creating a homewares precinct.
A further refurbishment was completed in 2009. 
The mall has an occupancy rate of 99.8%, with annual sales turnover of $626.9 million, putting it among the top 15 malls in Australia.
A spokesperson from GPT said it could not confirm the AFR report, but said GPT had advised the market last June of its strategy to “reweight the retail portfolio to 50% and increase the weighting in office and logistics &amp; business parks to 35% and 15% respectively".
“This is being done through a combination of organic means, actively managing our portfolio and through selective acquisitions.
“The GPT Group has implemented a number of initiatives in line with this strategy including the divestment of 50% interests in shopping centres at Woden in Canberra and Casuarina in Darwin, the divestment of Jindalee and Aspley Homemaker Centres in Brisbane and the acquisition of two logistics facilities in Sydney, one in Melbourne and an agreement to develop a new logistics facility for the Toll Group in Brisbane.
“GPT continues to review opportunities to deliver on our strategy,” says the spokesperson.
The cash injection from the sale of the mall will also firm up the GPT balance sheet as it considers a fresh bid for Australand’s commercial assets and investment business.
GPT's offer of $3 billion for Australand’s investment property portfolio and commercial and industrial business - but not its residential business - in mid-December 2012 was <a href="https://www.propertyobserver.com.au/australian-capital-territory/australand-rejects-gpt-offer/2012121358470" target="_blank">rejected by Australand.</a>
According to the AFR, the marketing and sale of the mall is being handled by Jones Lang LaSalle’s shopping centre specialist Simon Rooney.
The mall is tenanted by Myer, Kmart, Target, Big W, Best &amp; Less, Woolworths, Coles and Aldi plus over 300 specialty stores an eight screen Hoyts Cinema.
</body></html>

GPT puts half-share in Erina Mall on Central Coast up for sale: Reports

<html><body>
The Edwardian-era building that houses the Elephant Backpacker, across the road from Flinders Street Station, has been sold to an owner-operator for a price in excess of $6.6 million plus GST.
<img alt="elephant" height="353" width="470" src="/images/stories/2013/02/elephant.jpg">
The freehold building, formerly called Ackmans Building, was built in 1910, around the same time as Flinders Street Station (1909) was constructed.
Heritage website <a target="_blank" href="https://www.walkingmelbourne.com/">walkingmelbourne.com.au</a> describes the building as a “classically inspired Edwardian building featuring Federation free-style motifs”.
It most likely bears the name of former pawnbroker-turned-retailer Henry Ackman, who ran a department store called Ackman's Monster Emporium on Smith Street in Fitzroy.
Located on the corner with Degraves Street, the property incorporates the ground floor entrance foyer and basement area together with three upper levels that are serviced by a single lift and stairwells.
The sale price included the business itself.
In May last year a historic <a href="https://www.propertyobserver.com.au/leisure/art-nouveau-backpackers-hostel-on-spencer-street-sells-for-%241075-million/2012051154659" target="_blank">1913-built Art Nouveau backpackers' hostel on the corner of Flinders Street and Spencer Street</a> sold for $10.75 million with an expected yield of more than 8%. 
The new owner of Elephant Backpackers operates a hostel in the Melbourne CBD and plans to continue operating the 240-bed backpacker hostel.
It currently generates an annual cashflow from accommodation and related services afforded to backpackers and travellers of around $1.4 million.
The building extends 45.6 metres along the eastern side of Degraves Street, the popular laneway and eating strip, which runs all the way to Flinders Lane.
It includes part ground floor and three upper floors measuring 2,141 square metres on a site measuring 584 square metres.
The sale does not include the shopfronts that run the length of the hostel that extends down Degraves Street, which are separately titled.
It was sold via an expressions of interest campaign by Kliger Wood agents Grant McKenzie and Russell Meerkin, who said it had attracted a significant number of offers.
“The vendors of the freehold and business are based interstate so the accommodation business has been operated efficiently prior to the sale under management,” says McKenzie
“The location of the building is the key factor, as it abuts Degraves Street probably the city’s most dynamic laneway and cafe precinct.
“In addition, the building itself is relatively under-developed.
“The basement for instance is used only as a resident communal kitchen for backpackers, as a laundry facility and break-out area.
“It could in future be utilised as a bar or restaurant and could also provide direct pedestrian access under Flinders Street to the Station and on across the River to Southbank.
“Two of the upper levels provide older style accommodation with a mix of single and double rooms, with dormitories offering four to six bed accommodation," he says.
“The third level has been extensively renovated as 18 flash pack rooms, 11 with en suites inclusive of shower, basin and toilet with three eight-bed dormitories and another two six-bedroom dormitories.
Subject to the owner obtaining the necessary permits and planning permission, the building has the potential to have additional floors added.
</body></html>

Melbourne backpackers' hostel building the Elephant with faded Edwardian charm sells to owner-operator

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

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News