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The restructuring of the Centro Retail Australia property portfolio continues with the shopping centre landlord announcing that it has acquired the Centro Tormino, about 8 kilometres south of Coffs Harbour for $65.5 million from one of its investment syndicates.
The sale was concluded on December 14 and was in line with the June 2012 independent valuation of the centre and 8.3% above the highest offer received for the Centre during the most recent March 2012 sale campaign.
It follows Centro selling its Surfers Paradise Mall for $162.5 million to a Challenger institutional investor syndicate.
Centro Tormino formed part of the Centro MCS 16.
The 21,000 square metre mall was acquired for $25 million in September 2006 on a yield of 10.28% with Coles and Woolworths as the anchor tenants and 35 speciality stores.
The syndicate has not made any distributions to investors since July 2008 and its senior debt facility was due to expire in December last year.
In his update to investors, Gerard Condon, executive general manager of syndicates, says the sale to Centro Retail Australia saved the syndicate approximately $650,000 in sale agents commission.
He also said that any alternative strategies were likely to take more time to complete and incur further transaction costs with no guarantee of improved value for syndicate investors.
Investors are forecast to receive a final syndicate net asset backing of $0.44 per unit.
According to the Australian Financial Review, Centro is considering purchasing another single-asset fund, MCS 27 which holds the $91 million Sunshine Marketplace in Melbourne, as its debt facility reaches term.
Centro is currently acquiring key syndicate assets and disposing of those it deems non-core as part of its restructure plan agreed with lenders in December 2011.
Other assets it has acquired include the Centro Dianella in Perth and full-ownership of the $570 million Bankstown shopping centre in NSW.
Centro will rebrand to Federation Centres at its EGM on January 22, subject to shareholder approval.
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Centro buys Coffs Harbour mall from syndicate for $65.5 million

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Forget about a fifth banking pillar emerging and a mortgage discount war in 2013.
The big four banks’ dominance of the mortgage market is set to strengthen this year with regional banks, non-bank lenders and mutual lenders continuing to clutch at their coat-tails.
According to Morningstar analyst David Ellis, the major banks are only going to get stronger in 2013 and the last thing they want is a mortgage war to impact on their “highly profitable oligopoly”,
The possibility of a mortgage war was raised by Business Spectator columnist Robert Gottliebsen in a recent article in The Australian titled "The rate discount that will change banking".
Gottliebsen claimed that because lenders like <a target="_blank" href="/news">Yellow Brick Road now have access to cheaper funding from Macquarie Bank</a>, banks will be forced to match discounted offers in the market place and that a mortgage war will erupt.
Ellis says quite the opposite that, while net interest margins are under pressure, a combination of loan repricing, better conditions in wholesale funding markets, the major banks’ strong competitive position and improving funding mix will provide upside to margins.
“We expect major bank pricing decisions to remain rational, as there is no desire for a home loan price war to upset the highly profitable oligopoly," he says.
In a slow-growth housing market, likely to persist until 2015, Ellis says the major banks managed outstanding housing credit growing of 5.9% to the end of October compared to the 4.7% for the total market, continuing to take market share from non-banks.
According to Ellis the major risk to earnings growth for the major banks is a sharp deterioration in credit quality growth, particularly if the economy slides into recession, “but we rank this a low possibility”.
“We do not see any material loan loss risks in the residential portfolios of the major banks and at this early stage of the 2013 financial year, overall credit quality remains sound,” he says.
And while the outlook for the major banks in the current environment of low loan growth, benign bad debts and strong profitability is strong with Ellis expecting them to generate approximately 50–75 basis points bps in internal capital each year, “providing a growing surplus for capital management initiatives” the outlook is murkier for other lenders.
“Regional banks, building societies and non-bank lenders relying on securitisation as a major funding source will struggle to raise cost effective funds, crimping profitability,” he says.
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The mortgage loans war we won’t have in 2013: Morningstar

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Headline inflation rose just 0.2 % in the December quarter to an annual rate of 2.2% for 2012, according to ABS data released today.
This was below expectations of a 0.5% rise in headline inflation over the quarter to an annualised rate of 2.5%, according to an AAP survey of 15 economists.
Core or underlying inflation, watched most closely by the RBA, rose by a lower than expected 0.5% over the quarter to an annualised rate of 2.2%.
This is at the bottom end of the RBA's target inflation band of 2% to 3% and the lower than expected core reading will weigh into discussions about a possible rate cut in February.
However, <a href="https://www.propertyobserver.com.au/news/rba-likely-to-avoid-february-rate-cut-with-home-prices-up-13-since-start-of-year-craig-james/2013012258935?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news" target="_blank">CommSec economist Craig James </a>says strong house price growth over January (up 1.3% over the first three weeks of the year) is likely to stay the RBA's hand in February.
"The latest data keeps the door open to a rate cut should it become necessary," says James.
"Financial markets see a 36% chance of a rate cut. CommSec believes that the Reserve Bank will leave interest rates unchanged in February.
James says the December quarter data indicates that "inflation is not an issue at present, meaning that rates can stay lower for longer".
"Inflation is well and truly contained and the Reserve Bank certainly has the scope to cut interest rates interest rates in February if it believes it is necessary. The low inflation result removes any lasting hurdle for the Reserve Bank to cut interest rates over the next few months," he says.
The Aussie dollar was unchanged at US105.55 cents.
The ABS figures show that the housing group rose 4.4% in the December quarter with rises in all categories.The main contributors to the rise were rents (+0.8%), maintenance and repair of the dwelling (+0.5%) and new dwelling purchase by owner-occupiers (+0.1%).
The most significant price rises in the December quarter 2012 were for domestic holiday travel and accommodation (+6.2%) and automotive fuel (+2.6%).
The most significant offsetting price falls were for vegetables (–5.7%), audio, visual and computing equipment (–4.3%) and pharmaceutical products (–3.5%).
NAB and ANZ had forecast a core inflation reading of around 0.7% for the quarter equating to an annualised rate of 2.4% to 2.5%.
According to NAB, a low core reading of 0.6% or below for the quarter is needed to sway the RBA to cut the cash rate in February rather than March.
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RBA interest rate watch: Inflation up 0.2% in December quarter, below expectations

<html><body>Take the common example of an Australian expatriate who buys a home back in Australia while still resident of another country, including for tax purposes. In this case study, the house will be rented until the expat eventually returns to Australia, when it will become the family’s home. The capital gains tax (CGT) treatment when the home is eventually sold will be influenced by the length of time when the property was not the expat’s main Australian residence. (Main residences are exempt from Australian CGT).What would be this expat’s CGT position if he or she were to own the property for, say, 10 years and it was his or her Australian home for only the final two of those years? Joe Galea, property tax partner for accountants Deloitte in Sydney, says a fifth of any net capital gain should be taxable. The capital gain or loss is calculated by offsetting the so-called “cost base” against its sale price. (Very broadly, the cost base comprises the cost of buying and selling the property after allowing for any capital depreciation.) For more tips for Australian expats buying back home this summer, <a href="http://propertyobserver.com.au/ebooks/free-ebook-20-top-tips-for-australian-expats-thinking-of-buying-homes-this-summer" target="_blank">download our free eBook.</a></body></html>

Understand potential capital gains tax implications: Tips for expat Australian property buyers

<html><body>A Sydney-based online real estate start-up has taken an unusual approach to website development by crowdsourcing ideas from the public over the functionality and concept of its offering. Housenet.com.au, which launched in September, bills itself as the only social media network for property in Australia. Aimed at both the real estate industry and consumers, the site allows people to buy, sell and interact with other. The business has a free basic level but users can pay a fee to subscribe and add new features or promote their listings. Darren Moffatt, Housenet’s founder who previously launched Express Mortgage Market, says that he wants to “democratise” the process of website development. “We want to include site members, but also other people, maybe social media nerds, who have ideas,” he says. “Like every start-up, we’re in an evolving process. We have learned the last three months that people like the site and it’s easy to use, but the experience needs to be localised, which we are looking to do.” “We want to cast a wide net, not caught in groupthink. We are a big believer with wisdom of crowds, [and we are] very happy to dump our ideas if better.” In return for providing suggestions that get taken up, users will receive free Housenet lifetime premium membership and free advertising on the site. “Everyday users will bring practical responses, such as ‘I don’t like where this button is’ but we are trying to go beyond that and attract lateral thinkers to give them the opportunity to shape a site from the ground up,” he says. “To date, the stuff has been practical, but we’re looking for more conceptual stuff. It’s not every day a new social media site launches.” “It’s very much an experiment. We’ll suck it and see. It is a little scary, frankly, about letting go of some control.” “If you’re in a start-up and you’re building a community, this is the way to go. Feedback is common, but we’re putting that approach on steroids and saying anyone can have a say. There are risks to that, but I think it’s worth it.” This article originally appeared on <a href="https://www.startupsmart.com.au/" target="_blank">StartupSmart.</a></body></html>

Real estate listings website Housenet.com.au crowdsources its design

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Proactive borrowers with home loans in excess of $500,000 and a strong equity position are well placed to negotiate substantial discounts off their current home loan rate if they’re willing to putting in the leg work, say mortgage brokers.
The issue of negotiating mortgage discounts has risen to prominence once again with the launch of Mark Bouris’s Yellow Brick Road’s 115-basis-point discount campaign and other substantial rate discounts offerings aimed at new borrowers or those refinancing.
Business Spectator’s Robert Gottliebsen wrote recently of a mortgage and deposit war erupting on the back of Yellow Brick Road accessing cheap funding from Macquarie Bank and a new TV promotion – set to coincide with Mark Bouris hosting Celebrity Apprentice – “to inform borrowers that they can reduce their mortgage rate by 0.3%”.
According to Gottliebsen, all borrowers have to then do is take this home loan approval with them to their incumbent lender and demand a rate cut and if you are with certain banks you will get it – the result a mortgage discount war and the banks returning to overseas markets to access cheap funding.
Yellow Brick Road declined to comment on its upcoming campaign, which Property Observer understands won't kick off until at least after Easter given Channel Nine's program scheduling, suggesting Gottliebsen may have jumped the gun on the campaign. YBR did say that its current 115-basis-point offer had been extended to the end of February.
“We’ll continue to use our relationships with Macquarie and [Channel] Nine to build and promote great offers to the public and deliver them via our national network of branches,” a spokesperson for YBR said.
Property Observer discussions with mortgage brokers indicate that Gottliebsen is more or less on the money – lenders are prepared to offer a discount if there is a risk of losing a good borrower, especially one with a big loan, but warn that getting multiple home loan approvals can damage your credit rating if you don't take them up.
Smartline mortgage broker Michael Daniels says negotiating a discount can definitely be done provided the client is prepared to do a fair bit of work.
“Clients are apathetic, but there definitely are discounts out there,” he says, arguing that competition is fierce between the four major banks.
However, he says banks will not just provide a discount if you tell them you can get a cheaper rate online.
“The first phase would be an email from a broker confirming the offer that they can make.
“This is more of a pricing email than an approval, but it is assumed that the broker would only be quoting a loan that they are confident would be approved,” he says.
“If this does not work, then a full submission will need to be made to show the current bank that their client is now a genuine flight risk,” he says.
This should do the trick, but if it does not, he says borrowers can, with the help of their broker, secure a discharge authority from an alternative lender (offering a lower rate), which is required to get a mortgage off title.
Daniels says this worked with a client who believed he was paying a mortgage rate 20 basis points higher than he should.
An initial letter from Daniels to the bank, secured the borrower a five-basis-point discount, but it was only when he the client presented the lender with a discharge authority notice that the bank wilted and gave him what he wanted.
“That’s when the bank knows you’re serious and when their client retention teams are likely to takeover,” says Daniels.
However, he says in most cases an email from a broker should suffice to get the attention of your bank manager.
Mortgage Choice head of corporate affairs Belinda Williamson agrees that there is competitive tension between lenders at the moment.
“As you probably know, in terms of funding costs it is generally more beneficial for a lender to keep an existing borrower by offering an incentive to stay than it is to attract a new customer. “More incentives are likely to be offered to borrowers who have a high loan amount ($500k+) and a low LVR (under 80%). However, it still does come down to lenders' policies,” she says. Depending on the borrower, their loan type and lender, Williamson says it may be possible to get discounts of up to one percentage point off the standard variable rate. “It is definitely worth anyone's while to enquire and do their best to negotiate. If you don’t ask, you won’t receive,” she says.
Williamson says that even though basic variable rate borrowers already have the advantage of receiving the lender’s lowest interest rate that can also try to negotiate.
She says borrowers don’t need to get loan approval with another lender to negotiate a better rate with their existing lender and adds that borrowers should be mindful that multiple loan applications can impact their credit rating and hence their ability to borrow in the near future.
“There are other tools that borrowers can use to negotiate a better loan deal before going to the extent of apply for a loan offer from another lender (hence, adding a notch to their credit record) for the sake of price matching.
“For example, a borrower could ask their mortgage broker to use their lender relationships to do the negotiating for them or to shop around for ‘cheaper’, better suited loan.
“A borrower could also use lenders’ marketing material to negotiate based on an advertised rate. In any case it is important that the borrower is negotiating based on similar loan products,’ she says.
Don Nicolussi, a mortgage broker with Home Loan Warehouse, says pricing or interest rate is a very important consideration “but as brokers we are constantly on the look-out for innovation and flexibility in the area of lending policy and product options”.
“As brokers we welcome competition in the banking sector if it means more options and favourable pricing for our clients in the long term.
“That is, a strong industry with the right number of lenders,” he says.
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Big mortgage + big deposit = big rate discount possibilities: mortgage brokers

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Economist Steve Keen has delivered a damning verdict on the impact of first-home owner grants, saying they only serve to drive up property prices and push first-home owners out of the property market. 


The embattled economics professor and columnist, currently in a legal dispute with his academic institution the University of Western Sydney, says the new doubled $15,000 first-home owner grants being offered by the NSW and Queensland state governments – labelled builders’ grant by Ray White boss Brian White – aren’t as damaging as the previous broader grant to buyers of existing properties.

Keen labelled the recent accusation levelled by acting NSW opposition leader Linda Burney that Premier Barry O’Farrell had abandoned first-home buyers by cutting the grant for existing home and removing stamp duty concessions (unless you buy or build a new home) as “bollocks”.

“First-home buyers weren’t locked out by the ending of the first home vendors’ grant: they were locked out by the impossibly high prices that this grant has helped generate over the 30 years since it was first invented,” says Keen.

Keen says former prime minister Kevin Rudd’s doubling and tripling of the first-home owner grant from 2008 to 2010 caused the last spike in house prices, with the real beneficiaries those vendors who sold their first homes to first-home buyers – hence why Keen calls it the "‘first-home vendors’ grant" – and the banks that took the extra deposit and heaped first-home buyers with “initially three and ultimately over 10 times as much more debt”.

“The grant should be abolished, and governments should keep their hands out of asset markets.

“The O’Farrell government is still in there with its grant to purchasers of new properties, but that isn’t as damaging as the broader grant to buyers of existing properties as well.

“In that sense, I applaud the O’Farrell government for limiting the damage done to first-home buyers – and indeed the economy – by the grant,” he says in a column for Business Spectator.

Keen says the purpose of the first-home owners grant has never been to give first home buyers a helping hand, but has “always been used as a way of giving the economy the economic equivalent of a steroid injection”.

“First-home buyers have instead been the sacrificial lambs of an asset-price-inflation route to apparent national prosperity,” says Keen.
 
<hr class="system-pagebreak">
Keen says former prime minister Bob Hawke was the first to use a first-home buyers grant after he beat Malcom Fraser at the 1983 election, not to help first-home buyers but as a way of “reviving the housing market and perhaps the economy”.

He says it worked a treat, and allowed Paul Keating to claim the mantle of greatest treasurer ever.

But, Keen says, the grant also “supercharged house price rises”.

According to Keen, every time the government has introduced a first-home owner grant, the effect has been the same and can be observed by looking at house price before and after its introduction.

He says without government-injected stimulus, house prices have risen more or less in line with inflation, but have diverged noticeably to deliver real growth on the back of first-home owner grants.

“This is when the myth that house prices always rise took hold in the Australian psyche – without the awareness that this was not a natural phenomenon like sunrise, but took not only rising leverage from the banks, but also active intervention in the property market by both state and federal governments.

Keen is currently embroiled in a Fair Work Commission dispute with the University of Western Sydney over delays in processing his voluntary redundancy while at the same time facing a corruption watchdog enquiry after telling his economics students he could not fail any of them because they would not be able to re-sit exams due to the university no longer offering an Economics degree course.

A tribunal hearing involving Keen and UWS began yesterday in Sydney while UWS has already referred the matter to ICAC.

Keen tweeted that it was confidential hearing at the request of the university.

Keen explained what he told his students in an interview with ABC News radio yesterday.

“I told the students that I would not fail anyone given the circumstances that their subject was quite possibly being abolished and they were told about it two weeks before the exam for that subject would take place and of course if they failed, there wouldn't necessarily be a subject there for them to repeat the following year and I certainly wouldn't be teaching it so in that situation I just couldn't see how I could fail anybody.

He says he “probably overstepped the mark”, but claims UWS has “blown the matter out of proportion as part of a battle over the cuts to economics”.

Keen says he has been invited to two universities in London to apply for professorships and has also applied to his alma mater, the University of Sydney, for the professorship of political economy.
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State handouts turned first-home owners into “sacrificial lambs”: Steve Keen

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In what could signal a better year for retail property on the Gold Coast, diversified financial services group Challenger has bought the Centro Surfers Paradise Mall for $162.5 million.
The sale price is 1.6% above the June 30 2012 book value and follows a number of unsuccessful sales campaigns dating back to April 2010.
Challenger has acquired the centre alongside institutional investors having previously been a lender to the Centro-managed investor syndicate MCS 11, which held the asset.
The centre had attracted the interest of billionaires John Van Lieshout and John Gandel.
The sale was negotiated by retail specialist Simon Rooney of Jones Lang LaSalle, who said “a range of investors are now targeting quality retail assets with strong growth outlooks.
 Rooney says investors are "particularly attracted to Queensland’s positive economic growth forecast, high rate of population growth and strong international tourism sector, which will support a recovery in the Gold Coast retail market"
Centro Surfers Paradise is the dominant retail complex in Surfers Paradise occupying some 2.6 hectares on Cavill Avenue with more than 100m of frontage to the Esplanade overlooking the main Surfers Paradise beach.
The mall was first listed for sale in April 2010, but failed to achieve what Centro considered a reasonable price “in excess of $150 million”.
It was remarketed for sale in November 2011 but Centro could not negotiate a sale despite receiving a number of offers.
Centro purchased the mall for $88 million in 2006 on a yield of 10% with Woolworths as the anchor tenant along with 112 speciality tenants and over 21,000 square metres of gross lettable space.
Investors are forecast to receive a final syndicate net asset backing (NAB) of $1.63 for every $1.00 of original equity invested.
Centro Retail Australia will continue to manage the centre, which according to the Australian Financial Review has “substantial development upside”.
Centro Retail Australia is the restructured entity that emerged after Centro ran into deep financial trouble on the back of the GFC.
Subject to shareholder approval later this month, it will change its name to Federation Centres.
Centro Retail Australia owns 41 shopping centres and has assets worth $6.6 billion
It also manages a further 43 shopping centres on behalf of unlisted property syndicates.
 
 
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Challenger acquires Centro Surfers Paradise Mall for $162.5 million

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There are just over two weeks to go until the Reserve Bank’s monetary policy committee meets for the first time in 2013 on February 5 to deliberate on the cash rate.
It currently stands at 3%, with the lowest advertised variable rate on offer being 4.99% from lender Easy Street, owned and operated by Sydney-based Community First Credit Union.
The lowest three-year fixed fixed-rates also start from 4.99%, offered by non-bank lender homeloanHQ, with loans underwritten by a major bank.
Economists are suggesting that the RBA may wait until March to begin cutting rates, but will take a closer look at the December quarter inflation result to be released by the ABS on Wednesday.
With annual inflation expected to track well within the RBA’s annual target band of 2% to 3%, a<a target="_blank" href="/news"> low quarterly inflation reading </a>may give the RBA the green light to cut rates – depending on its assessment on other factors such as unemployment, mortgage growth and retail spending.
AMP Capital Investors chief economist Shane Oliver, who expects at least three rate cuts this year, points out that there was only bright note in December economic data – a record number of car sales.
Overall, he says, “the Australian economy remains sub-par, particularly so given that the RBA started cutting interest rates over a year ago”.
Regardless of what the RBA decides to do, astute borrowers will be examining their current mortgage and lender with expectations that rates will fall further this year.
These are the lowest advertised mortgage rates based on listings by <a href="https://www.ratecity.com.au/" target="_blank">ratecity.com.au</a>, <a href="https://mozo.com.au/" target="_blank">Mozo.com.au</a>,  <a href="https://www.infochoice.com.au/" target="_blank">infochoice.com.au</a> and <a target="_blank" href="https://www.homeloanfinder.com.au/">homeloanfinder.com.au</a> as of January 21:
Where the headline rate is the same, the lender with the lowest comparison rate gets preference.
Lowest variable rate offerings:
<table border="1" cellspacing="0" cellpadding="0" width="470"><tbody>
<tr>
<td width="134" valign="top">
Provider
</td>
<td width="124" valign="top">
Loan name
</td>
<td width="97" valign="top">
Rate
</td>
<td width="116" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="134" valign="top">
Easy Street
</td>
<td width="124" valign="top">
Honeymoon Home Loan Special
</td>
<td width="97" valign="top">
4.99%
</td>
<td width="116" valign="top">
5.77%
</td>
</tr>
<tr>
<td width="134" valign="top">
Nationwide Mortgage
</td>
<td width="124" valign="top">
True Saver Home Loan
</td>
<td width="97" valign="top">
5.17%
</td>
<td width="116" valign="top">
5.18%
</td>
</tr>
<tr>
<td width="134" valign="top">
Mortgage View
</td>
<td width="124" valign="top">
Mortgage View Pro Pack, New Year Special
</td>
<td width="97" valign="top">
5.17%
</td>
<td width="116" valign="top">
5.19%
</td>
</tr>
</tbody></table>
Lowest one-year fixed-rate offerings
<table border="1" cellspacing="0" cellpadding="0" width="470"><tbody>
<tr>
<td width="137" valign="top">
Provider
</td>
<td width="123" valign="top">
Loan name
</td>
<td width="95" valign="top">
Rate
</td>
<td width="114" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="137" valign="top">
Greater Building Society
</td>
<td width="123" valign="top">
Fixed Rate Ultimate Home Loans
</td>
<td width="95" valign="top">
4.99%
</td>
<td width="114" valign="top">
5.80%
</td>
</tr>
<tr>
<td width="137" valign="top">
Newcastle Permanent
</td>
<td width="123" valign="top">
Fixed Rate Home Loan
</td>
<td width="95" valign="top">
4.99%
</td>
<td width="114" valign="top">
5.98%
</td>
</tr>
<tr>
<td width="137" valign="top">
Hunter United
</td>
<td width="123" valign="top">
Fixed Rate Home Loan
</td>
<td width="95" valign="top">
4.99%
</td>
<td width="114" valign="top">
5.98%
</td>
</tr>
</tbody></table>
Lowest three-year fixed-rate offerings
<table border="1" cellspacing="0" cellpadding="0" width="470"><tbody>
<tr>
<td width="131" valign="top">
Provider
</td>
<td width="131" valign="top">
Loan name
</td>
<td width="96" valign="top">
Rate
</td>
<td width="111" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="131" valign="top">
homeloanHQ
</td>
<td width="131" valign="top">
Rate Lock Home Loan
</td>
<td width="96" valign="top">
4.99%
</td>
<td width="111" valign="top">
5.53%
</td>
</tr>
<tr>
<td width="131" valign="top">
Resi
</td>
<td width="131" valign="top">
Flexi Fix Plus 75
</td>
<td width="96" valign="top">
5.09%
</td>
<td width="111" valign="top">
5.80%
</td>
</tr>
<tr>
<td width="131" valign="top">
UBank
</td>
<td width="131" valign="top">
UHomeLoan for refinancing - Fixed Rate Loan
</td>
<td width="96" valign="top">
5.13%
</td>
<td width="111" valign="top">
5.26%
</td>
</tr>
</tbody></table>
*A comparison rate includes both the interest rate and the fees and charges relating to a loan, combined into a single percentage figure.
For information on refinancing, watch our free webinar <a target="_blank" href="/news">The Do's and Don’ts of Refinancing Your Existing Home Loan ... and How to Avoid Unnecessary Hurdles</a>.
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The cheapest home loan offerings in the lead-up to February RBA decision

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Hopes of a recovery in demand for tourist accommodation in 2013 on the Gold Coast have been dealt a blow, with young Australians increasingly shunning it as a holiday destination, according to the latest Roy Morgan survey.
Based on a survey sample of 22,000 Australians aged under 30 taken just before the key Christmas holiday period, Roy Morgan found that 4.1 million Australians (22%) want to take a holiday in Melbourne within the next two years, compared with 3.3 million (18%) who would choose the surf, sun and sandy sequins of the Gold Coast.
Also reflecting the rise of big city-based holidays, Sydney is now almost equal third with the Sunshine Coast as a favoured destination, with 2.2 million Australians (12%) choosing Sydney and 2.3 million the Sunshine Coast (12%).
Victoria’s iconic Great Ocean Road rounds out the top five, with 2 million (11%) wanting to visit.
Reflecting the devastating impact of the GFC on tourism-dependent locations, the Gold Coast was the top tourist destination in Australia from 2001 to late 2007, before Melbourne overtook it in late 2008.
Since then Melbourne’s tourism star has risen and continues to rise while the Gold Coast has continued to decline with both its holiday accommodation market and overall property market slumping.
The November quarter Midwood Report tallied just 19 high-rise apartment sales on the Gold Coast over the November quarter, a 70% plunge from sales figure a year ago, with 705 new high-rise apartments still available for purchase and receivers appointed to high-rise developments Oracle and Soul among others.
Top 5 domestic holiday destinations Australians would like to visit in next two years
<img alt="roymorgan" height="216" width="470" src="/images/stories/2013/01/roymorgan.gif">
Source: Roy Morgan
Commenting on the latest results, Jane Ianniello, international director of tourism, travel &amp; leisure at Roy Morgan Research, says beach destinations such as the Gold and Sunshine coasts have suffered in popularity over the past decade due to increased competition from short-haul overseas beach destinations such as Bali, Fiji and Thailand.
She says Melbourne is only domestic holiday destinations to have increased in preference over past decade.
“Australians under 30 are particularly attracted to it, with 28% saying they would like to take a holiday there in the next two years. The shopping, dining, nightlife, and special events all appeal to this younger age group. “Sydney has regained popularity as a holiday destination over the past three years after suffering a large drop in preference after the Cronulla riots in December 2005. A guide to the top 10 destinations for 2013 by accommodation booking website hostelworld.com ranks Taipei, Taiwan, as the top destination following a rise in tourist numbers in 2012 and the opportunity to view the city from one of the world’s tallest buildings (Taipei 101), along with "gloriously tasty and extremely affordable food and more”.
Porto, Portugal, the "city of bridges", ranks second for being “visually stunning”, followed by Christchurch, New Zealand – the closest to an Australian destination, as it rises from earthquake disasters.
The others in the Hostelworld top 10 are Amsterdam, San Diego, Rio De Janeiro, Budapest, Tokyo,  Girona (Spain) and Cape Town. 
 
 
 
 
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Younger Australians increasingly prefer holidaying in Melbourne over the Gold Coast: Roy Morgan

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

Joel Robinson

CPG unveils Castile Newstead ahead of upcoming sales launch

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

How Australia Post Parcel Lockers changed parcel delivery convenience in Australia

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

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

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

Sammut secures approval for debut Brisbane apartment development in Toowong

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

Larry Schlesinger

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