<html><body>
Australian housing affordability has improved markedly over the last few years, but it still remains the least affordable housing market in the world, according to credit rating agency Fitch.
Fitch measures housing affordability using two measures: percentage of disposable household income required to make mortgage repayments and house prices relative to average income per person.
On the first measure, "market debt-to-income ratio” (which measures mortgage payment on average-priced dwellings as a proportion of an average-sized household‘s average gross disposable income), Australia ranks as the least affordable of 12 global markets
This is despite a great improvement in this ratio, with Australians home owners now spending about 32% of their household income on mortgage payments, compared with around 38% of income in 2011 and around 44% of income in 2008,  just before the GFC.
In comparison, American households spend only around 16% of their income on mortgage repayments and those in the UK about 17%.
“This ratio aggregates various key drivers of mortgage performance in a single figure and can therefore be used as a high-level indicator to assess, forecast, and stress borrowers‘ ability to make payments on a new loan,” says Fitch.
On the second measure of affordability, house price to GDP per capita ratio, Australia ranks second only to Greece with a ratio of 8, compared with a ratio of 5 in the US and under 7 in the UK. Greece's ratio is 8.5.
In 2010 the Australian house price to GDP per capita ratio was nearly 9.
“Outside Europe, the HP-to-GDP ratio for Australia remains on high levels despite having corrected downwards over the past two years.
“In contrast, the average ratio in the US now is among the lowest in a cross-country comparison,” says Fitch.
</body></html>

lschlesinger-FZcF9M3vE6

Australian housing still least affordable in the world despite recent improvements: Fitch

<html><body>
Centuria Property Funds has added to its commercial property portfolio after entering into a conditional contract to purchase the 175 Castlereagh Street office tower in the Sydney CBD from Stockland for $56 million.
Centuria Property Funds is a wholly owned subsidiary of the ASX-listed Centuria Capital Limited, headed by CEO Jason Huljich, and has a commercial property portfolio valued in excess of $1 billion.
<img width="470" src="/images/stories/2013/01/175castlereagh.jpg">
The property will be held in The Centuria 175 Castlereagh Street Fund, a single-asset, unlisted property fund and is expected to generate a return of 9% in its first year.
The 17-level building, located in the midtown precinct of the Sydney CBD, has 13 levels of commercial office accommodation and four levels of basement parking and has recently undergone a substantial refurbishment of the lobby, lift cars, some office floors and bathrooms.
It features around 12,000 square metres of net lettable area.
Stockland acquired the office tower in 1982 and is valued at $53 million.
The property at 175 Castlereagh Street is located immediately adjacent to the  new  50-storey office tower at 161 Castlereagh Street being built by Grocon, scheduled for completion in 2013. It is set to be Sydney’s newest premium-grade office tower, anchor-tenanted by ANZ.
Recent acquisitions by Centuria Property Funds include the purchase of the $23.3 million Canon Hill, Queensland property.
 
</body></html>

Centuria buys Sydney CBD tower from Stockland for $56 million

<html><body>
The Australian housing market is expected to be among the more stable global markets in 2013 but house prices won’t rise, according to forecasts from credit rating agency Fitch.
Fitch‘s most favourable house price outlooks are for Germany, Australia and the US, which is “finally expected to turn a corner in 2013".
“Fitch expects stable house prices [in Australia] in 2013, although some areas may still continue to decline," says the credit rating agency in its latest Residential Mortgage Briefing.
“Despite the RBA recently cutting the policy rate, home buyers remain cautious and have been deleveraging.
“On a relative scale, the Australian housing market appears expensive, however the combination of house prices falling 4.1% from the peak in quarter 2, 2010 and the RBA cutting the policy rate over 12 months to October 2012 has eased pressure on affordability levels,”  says Fitch.
Fitch has an overall "neutral" outlook on the Australian housing and mortgage market and rates Australia alongside Germany as “more stable” compared with peripheral eurozone markets (Spain, Portugal, Greece, Ireland and Italy) where it holds “substantial concerns”.
Australia’s mortgage lending market is also given a favourable mention, described alongside the US prime market as “characterised by relatively low default probability assumptions”.
“In Australia, arrears are likely to remain low, in line with low unemployment and recent policy rate reductions,” says Fitch.
“Australia benefits from a low and relatively stable recent history of unemployment, due to strong global demand in commodities. The recent cut in policy rates aims at stimulating the non-mining sectors of the economy.”
The report notes “relatively high affordability indicators for Australia” which are “largely driven by high average house prices”
It also notes that Australian household debt to income levels have risen significantly over the past decade, but says that a combination of flat house prices and policy rate cuts has eased affordability pressures.
</body></html>

Stable outlook for Australian housing market but no price gains in 2013: Fitch

<html><body>
This year’s federal election is likely to have positive impact on the property market, provided it delivers a decisive result, according to industry experts.
The next federal election must be held by November 30.
Brett Draffen, chief executive of development at Mirvac, says he is “personally quite confident that we will see a positive out of the election".
“It really goes to that question of consumer confidence and sentiment.
"And I think the opportunity is that we start to see a clearer leadership profile coming from that federal election and that will then flow through to confidence and then have a flow-on impact on transactions and therefore prices,” Draffen said in an interviewer on Australian Financial Review TV.
But property market activity could slow in the months leading up to the election.
“Prior to the election people get a bit more nervous,” says Rod Cornish, real estate strategist Macquarie Capital.
“A month or two prior to the election things do tend to slow down,” he says.
“And then if it is reinforced, if there is a distinct change in power, then people could become more confident."
</body></html>

Decisive federal election result will help Australian property markets: Analysts

<html><body>
A special investigation finds the Tax Office is aggressively pushing aggrieved taxpayers into settlements to protect its own people, with one property investor saying he’s been ruined by fighting big firms hired by the ATO.
<a target="_blank" href="https://www.abc.net.au/7.30/content/2012/s3623899.htm">Sydney architect Gary Kurzer</a> and his partner sold two investment properties in 2006 under direct instructions from their bank. They had cash losses from the sales, and were told by the ATO that GST did not apply to their circumstances. But the ATO then launched an audit and handed them a tax bill of $207,000 in “GST and penalties” plus tax on “profits of $655,000” never earned.

After a five-year battle that Kurzer says ruined his health, relationship and finances, the ATO finally agreed to determine liability based on the information he had previously provided. This was communicated to Kurzer at the 11th hour at the doorstep of the Administrative Appeals Tribunal hearing room prior to a hearing before a senior member of the AAT.

Despite the matter settling, the ATO issued another incorrect revised assessment of $120,000. Angered by the continued mistakes and mistreatment, Kurzer pursued the ATO for compensation under the <a target="_blank" href="https://www.finance.gov.au/financial-framework/discretionary-compensation/cdda-scheme">Scheme for Compensation for Detriment caused by Defective Administration</a> —?established to help Commonwealth agencies compensate persons who have suffered detriment as a result of an agency’s “defective” actions or inaction, and who have no other avenues of redress?—? including the latest revised incorrect assessment.

The ATO has power to engage legal counsel under the Legal Services Directions, which is administered by the Attorney-General, when there is a legal claim. The Finance Circular 2009-09 is clear that the Legal Services Directions do not apply to a CDDA claim?—?it’s more a moral obligation to assist those who have suffered. Despite this, the ATO hired big law firm Minter Ellison to handle the CDDA claim. The ATO said in a statement: “It is not unusual for us to obtain legal advice where there is no legal claim or litigation on foot. Our views on CDDA claims comply with the Department of Finance’s guidelines.”

The ATO advised Kurzer of its decision after receiving advice from Minter Ellison, that no defective administration arose and no compensation was payable. Kurzer continued to owe $120,000. Minter Ellison charged the ATO $128,000 for this advice, as <a target="_blank" href="https://media.crikey.com.au/wp-content/uploads/2013/01/crikey1minterbill.pdf">documents obtained by Crikey</a> under freedom of information laws show.

Kurzer was relentless, eventually pushing the ATO to review the CDDA claim for the second time, where it was uncovered the Tax Office made major mistakes in the revised assessment?—?Kurzer only owed $8,554. The ATO continued to deny any liability for mistreatment during the audit and objection stages but now admitted it made mistakes in the revised assessment. Despite Minter Ellison being engaged to review Kurzer’s tax liability, it found no mistakes.

At a mediation meeting chaired by former royal commissioner Tony Fitzgerald and attended by Kurzer, ATO officers and Kurzer’s lawyers (appointed by the Tax Office), the <a target="_blank" href="https://media.crikey.com.au/wp-content/uploads/2013/01/Crikey2atodeed.pdf">deed of release shows</a> the ATO offered $70,000 in compensation contingent on Kurzer releasing the ATO and every officer, employee and agent from any liability beyond the scope of the major calculation errors, and equally for all future claims, whether related or unrelated to the dispute.

The ATO also sought a confidentiality clause. Kurzer accepted the $70,000 and agreed to release the ATO from any future liability on the basis the ATO does not stop him from pursuing his rights in relation to his mistreatment during the audit and objection processes and to delete a blanket ban on all future claims unrelated to the dispute. The ATO then refused to pay the $70,000 compensation.

In direct contradiction to this, the ATO told Crikey: “There is no compulsion for taxpayers to settle matters they do not want to settle. Settlements made in relation to a particular dispute do not affect future claims arising in relation to a completely unrelated dispute.”


<hr class="system-pagebreak">
In addition to Minter Ellison’s fee of $128,000, Fitzgerald’s fee for conferences, preparation and the mediation was $12,650?—?according to <a target="_blank" href="https://media.crikey.com.au/wp-content/uploads/2013/01/CRIKEY3fitzgeraldbill.jpg">a tax invoice</a> released under FOI?—? while ATO appointed lawyers for Kurzer, LAC Lawyers, were <a target="_blank" href="https://media.crikey.com.au/wp-content/uploads/2013/01/Crikey4LACbill.pdf">paid $19,992 for legal advice</a> and attendance at the mediation. The ATO refused to pay LAC Lawyers for any assistance to Kurzer after the mediation. In addition, the ATO expended $47,599 in relation to the CDDA claim. In total, $208,241 was spent on a case with an offer of $70,000 in compensation that was ultimately rejected by Kurzer.

Kurzer is highly distressed. In five years of attempting to gain justice he says he has lost everything he has worked for over 40 years, and faces imminent foreclosure. “Each day is a battle to stay afloat,” he told Crikey.

“Minter Ellison was hired to check the ATO view and they came up with zero errors and zero compensation, and I was intimidated by them in denying my rights. The ATO then attempted to silence me via an oppressive deed with a patronising offer of $70,000 to me as compensation for my losses and expenses over five years. Although that was a tiny fraction of my losses, to even accept this, they insisted on a massive legal gag on my rights.

“I will continue to fight, not just because of my circumstances but also because the ATO are doing this to innocent people across the country every day, decimating families and small businesses. In tough times it is heinous that the ATO can expend huge amounts of public money to bankrupt people. What is the net advantage? People are forced onto welfare, instead of being active taxpayers. I will now be seeking a realistic monetary claim that reflects my losses in the Federal Court for negligence, breach of statutory duty and misfeasance against the tax office.”

A senior Sydney tax lawyer who is involved in negotiating settlements with the ATO on a regular basis but did not want to be identified said: “Settlements are sometimes instituted by the ATO because they know they have done the wrong thing. Unfortunately, in these cases the wrong thing ends up being hidden from the public by the use of a confidentiality clause. They won’t talk about what they did wrong.”

Allegations about the ATO’s use of legal services coincide with the <a target="_blank" href="https://www.ag.gov.au/Publications/Documents/Commonwealth%20Legal%20Services%20Expenditure/OLSC%20-%20Legal%20Services%20Expenditure%20Report%202011-2012.PDF">announcement last month</a> by the Attorney-General’s Department that the ATO was the biggest user of legal services in the Commonwealth, spending $101 million dollars in 2012. The report shows a 30% increase in the provision of external legal services (such as Minter Ellison and Clayton Utz) in just the last two years. At the same time the average rise in external legal costs across all government agencies was just 7%. External legal services accounted for $64.9 million of the total figure, while $46.1 million was spent internally.

<a target="_blank" href="https://www.crikey.com.au/2012/09/20/ato-whistleblower-in-court-they-sabotaged-my-complaints/">Crikey reported in September</a> the ATO had offered Serene Teffaha a $250,000 settlement to walk away from litigation she launched for bullying as a result of a whistleblower complaint. She was prepared to accept the offer and release the ATO commissioner from vicarious liability as long as she was not barred from pursuing the senior public officials personally for their misconduct against her. The ATO refused to settle on that basis.

“My motivation is not money??—??just accountability,” she said. “It is perplexing the lengths the Commonwealth will go to, to protect the wrongdoers. Unfortunately for the Commonwealth they are now risking a whole lot more than just money.” Teffaha says she has been told the Commonwealth will back the personal defences of the officials involved by funding Clayton Utz’s services.

The Attorney-General’s Department is the guardian of how Commonwealth agencies pursue litigation. Crikey put a list of questions to the department and was told: “Questions regarding the ATO’s reasons for settling claims, legislative authority for engaging counsel, and its conduct in the handling of claims and litigation, should be directed to the ATO.”
“The difficulty with releases and confidentiality provisions is that they are exclusively for the benefit of the [ATO] commissioner,” David Hughes, a tax partner in law firm SMH Tax Lawyers, told Crikey. “Aggrieved taxpayers are silenced and ATO errors … are not brought into the public domain. This allows ATO officers the latitude to continue working without accountability to the public.

“Confidentiality clauses in settlement deeds have their place in commercial settlements, but the Commissioner is at pains to emphasise that he negotiates on a ‘principled’ basis, not a commercial one. If that is so, then the principle by which they reach settlements must be transparent. He cannot have it both ways.”

But some lawyers see the benefit of commercial settlements. Andrew Robinson from Robinson Legal, who gained notoriety as the outspoken lawyer for Paul Hogan and John Cornell in their very public dispute with the Tax Office, believes early settlements are good.

“Whether it’s right or wrong, making sure settlement discussions and settlement agreements don’t see the light of day probably means that all parties can be more open in their discussions which can lead to earlier settlements. While discussions take place they can’t be disclosed because they are without prejudice and if a settlement deed happens it’s bound by confidentiality so all parties know that nothing they say should hit the public record.”

 

This article first appeared on <a href="https://www.crikey.com.au/" target="_blank">Crikey.com.au</a>

</body></html>

Sydney property investor battles ATO for five years over tax bill on property sold at a loss

<html><body>
Property prices in the Queensland mining boom town of Gladstone are starting to cool, with prices for older houses and units falling by as much as 20% in some cases, according to property valuers at Herron Todd White (HTW).
HTW describes the Gladstone market – driven by a number of liquefied natural gas (LNG) and coal projects – as “volatile”, with a stabilisation in rents flowing through to softer capital values.
HTW reports of a “new phase in the Gladstone residential market” noting that that vacancy rate has increased from just 0.5%  at the start of 2012 (with minimal vacancies particularly noticeable in three- and four-bedroom dwellings and two- and three-bedroom units and townhouses) rising to between 1% and 2% by the end of the year and “trending upwards”.
“We are now seeing declines in values from what was being achieved approximately 12 months ago," HTW says.
“For the first six months of 2012 we saw evidence that the market was stabilising or softening with some values creeping back 5%.
“In the last four months, transactions have shown values have declined further. New housing and unit stock has come back by up to 5%, whereas older housing and unit stock has come back by as much as 20% in some cases," says HTW in its December report.
“We are seeing an ever increasing number of current contracts that are far below a value that could have been achieved at the beginning of 2012,” says HTW.
These observations follow property market analyst Michael Matusik declaring the <a target="_blank" href="https://www.propertyobserver.com.au/queensland/gladstone-s-mining-related-property-boom-over-michael-matusik/2012081556036">Gladstone mining-related property boom over in August last year</a>, with hotspotting.com.au's Terry Ryder saying around the same time that the savviest of investors were in the market 12 to 18 months prior.
However Matusik refined his view on Gladstone towards the end of last year, suggesting it remained a<a href="https://matusikmissive.com.au/2012/11/27/g-10/" target="_blank"> "healthy real estate market"</a> with reference to the success of a recommended new off-the-plan development, <a href="https://www.stoneapartments.com.au/" target="_blank">Stone Apartments</a> near the Gladstone city centre, now 70% sold out.
According to HTW, local selling agents are reporting a loss of confidence in the market with recent research indicates that the volume of unit and dwelling accommodation available in Gladstone has increased significantly.
 
<hr class="system-pagebreak">
 
Recent sales show a number of older properties failing to sell at auction and then selling at reduced prices following long listing campaigns lasting many months.
These include this three-bedroom house on <a target="_blank" href="https://www.realestate.com.au/property-house-qld-telina-110971499">Finchley Street in Telina</a>, which sold through Kerry Connor of Go Gecko Gladstone in mid-December for $398,500 – an 11% discount to its July 2012 listing price of $449,000.
Another recent sale was<a target="_blank" href="https://www.realestate.com.au/property-house-qld-south+gladstone-109519076"> this 1950s four-bedroom house</a> on Martin Street in South Gladstone, which sold through Margie Richards of PRDnationwide Gladstone for $445,000 in November.
RP Data records indicate that it failed to sell at auction in February and April and was then listed for sale in May at $478,000. The asking price was reduced to $469,000 in August and then reduced further to $449,000 in May before finally selling for $445,000.
In a recent <a href="/news">Property Observer webinar</a> looking at the prospects for regions versus cities in 2013, Terry Ryder highlighted rising rents as being a leading indicator of rising prices, but with a lag period of about a year.
In the case of Gladstone, Ryder says the first big rent rises started happening in 2011, but property prices only really lifted in 2012 – rising about 16%.
The stabilisation in Gladstone rents, as reported by HTW, suggests that the prospects for price growth are weaker in 2013.
In its assessment of the Gladstone market, HTW says that at the start of 2012, it predicted that activity would remain high and demand would stay very strong across all residential property types.
“We also stated that values were already at record high levels and we were unsure just how much higher prices would go.
“Over the course of this year, confidence in the market has dropped slightly, activity remains strong however not at the levels we were experiencing during 2011 and the record high prices have started to soften.
“We are now seeing declines in values from what was being achieved approximately 12 months ago."
HTW says it is aware of extensive land and unit projects being developed in the area with demand for these products being “moderate to high”.
“However, as more and more stock is produced and made available to the market, it is effectively increasing the competition in the area and giving potential purchasers a greater degree of product selection.
“The demand for newer stock with high rental returns now outweighs the demand for older existing stock. This has forced prices down and we are now seeing a greater differentiation in values,” says HTW.
HTW says it is difficult to gauge the actual level of demand and whether prices are “at market” due to a high percentage of available vacant land marketed and sold by specialist project marketers off the plan to “out of town investors” with none of these pre sales settling until construction of the estate is complete.
</body></html>

Gladstone property market cooling, with some 20% price corrections: HTW

<html><body>
Better affordability in Sydney and Perth should result in property price growth of between 4% and 6% in these key capital city markets, says Rod Cornish, real estate strategist at Macquarie Capital.
But Cornish says Melbourne, where property is relatively less affordable, is likely to record lower housing price growth.
According to Cornish, if the RBA cuts the cash rate twice more this year Sydney's housing affordability will fall to levels last seen in 2001, with a similar scenario for Perth.
“Normally when you see affordability gets to these levels you see a double-digit jump in prices, but given people’s lower propensity to spend, I think it will be single-digit growth.
“Instead of 10% to 12% growth there will be 4% to 6% growth in Sydney and Perth,” Cornish said in an interview with Australian Financial Review TV.
But in places like Melbourne, which Cornish says is still going through an over-extended cycle, price growth will be lower.
Cornish pointed out that there had been five rate-cutting cycles since 1990, but that the latest one (which began in November 2011) was by far the slowest, meaning a patchy impact on affordability.
“The RBA cut rates twice in 2011 (25 basis points rate cuts in November and December) but then there was a five-month gap [until the May 2012 50-basis-point rate cut].
“In that time the banks raised their mortgage rates, we have never seen that big gap before – this has an impact on affordability."
As a result he said affordability remained “patchy” across different property markets.
 
 
</body></html>

Sydney and Perth set for property price growth of between 4% and 6% in 2013, with increased housing affordability: Macquarie Capital

<html><body>
Demand for fixed-rate home loans tapered off in December following four consecutive months of gains, according to new home loan approval data from Mortgage Choice.
Fixed-rate home loans accounted for 20.14% of all new home loan approvals in December, down from 22.37% in November.
The reduced appetite for these more conservative lending products follows the 25-basis-point RBA cash rate cut on December 5, taking the cash rate to 3% and expectations of further rate cuts in 2013.
Furthermore, the latest mortgage rates <a href="https://www.propertyobserver.com.au/news/more-rate-cuts-likely-in-2013-a-guide-to-the-lowest-rate-home-loan-offerings-as-of-january-7/2013010658623" target="_blank">published on mortgage comparison websites</a> suggests that borrowers can source variable mortgage rates that are only a few basis points off fixed-rate offerings, with the added benefit of greater flexibility and not being locked into a rate should rates fall further.
Demand for fixed-rates has now fallen below the 12-month average of 21%, with the popularity of fixed-rate loans decreasing in the majority of states, by an average of 4.26 percentage points.
Demand for fixed-rate home loans rose by 4.12 percentage points in Queensland.
Over the same period the percentage of variable-rate loans rose to 79.86% from 77.63% in November, with increased appetite for no-frills basic variable home loans rising by 1.75 percentage points to 17.71%, and ongoing discount home loans remaining the most popular at 41.16% of all new home loan approvals in December.
Demand for standard variable rates was relatively steady, dipping by only 0.12 percentage points to 16.78%. Demand for line-of-credit loans, popular with investors, rose slightly to 3.26%, while introductory rates dropped marginally to 0.95%.
“Our data shows that fixed rates have fallen out of favour in December for the first time in five months as recent variable rate cuts gain the attention of the majority of new borrowers,” says Mortgage Choice spokesperson Belinda Williamson.
“While fixed rate home loans continue to offer piece of mind with a steady repayment level, a variable rate home loan that has the potential to shift down in price is proving more attractive. In fact, four in every five new borrowers say they would opt for this type of loan,” says Williamson.
“Borrowers may also be heeding the advice that there may be more cuts to come, particularly as recent media reports suggests some lenders may cut their home loan rates out of cycle with the Reserve Bank of Australia’s cash rate setting and as soon as next month.”
</body></html>

Appetite for fixed-rate home loans falls in December following rate cut: Mortgage Choice

<html><body>
The north shore is shaping up to be the top-performing Gold Coast market as buyers take advantage of reduced prices on a number of projects in the hands of receivers.
There were a total of 54 sales recorded across nine medium- and low-rise projects on the north shore, making it the top-performing precinct for the third consecutive quarter, with a total of 156 sales for the first nine month of the year, according to September 2012 quarter figures from Colliers International, which were released just before Christmas.
The north shore precinct includes suburbs from <a href="/news">Hope Island</a> to <a href="/news">Biggera Waters</a>, about 15 minutes from <a href="/news">Surfers Paradise</a>.
The report provides an overall favourable impression of the Gold Coast apartment market, reporting 140 sales across high-, medium- and low-rise sectors over the three months to September – an increase of 5% on the previous quarter and 43% up on the same period last year.
Click to enlarge
<a title="Click to enlarge" href="/images/stories/2012/12/colliersdec20.gif" rel="shadowbox"><img src="/images/stories/2012/12/colliersdec20thumb.gif"></a>
Tony Holland, Colliers International residential project marketing director, says price growth in the new apartment market is yet to be seen, but an “impending supply shortage would likely lead to strengthening prices at some point down the track”.
“Based on the current quarterly selling rate, the supply of new apartments could be taken up within 1.9 years, which is the lowest expected absorption period in two years, and if the sales rate increases this time frame will be reduced.
In contrast, the more up-to-date <a href="https://www.propertyobserver.com.au/developments/heavily-discounted-hilton-surfers-paradise-the-only-notable-gold-coast-high-rise-seller-in-november-quarter-midwood/2012121958540" target="_blank">Midwood Report</a> for the November quarter shows just 45 sales (19 in high-rise projects), a 50% drop on a year ago, and has more than 700 high-rise apartments available for purchase, indicating a much longer supply pipeline.
Colliers International reports 26 high-rise sales over the September quarter.
“The [north shore] figures exceed annual sales for 2011, 2010, 2009 and 2008. With one more quarter still to be reported, 2012 is shaping up to be a standout for this precinct,” says Colliers International research manager Lynda Campbell, who compiled the report.
“The increased sales rate during 2012 has been as a result of several projects falling into the control of receivers or financiers who have reduced prices and made concerted efforts to sell down remaining apartment stock.
“This has been an ongoing process and has resulted in stock levels reducing significantly, particularly at Hope Island where only 28 new apartments remain on the market, the majority of which we would expect to see sold over the next six months, if not sooner,” she saids.
<img src="/images/stories/2013/01/mistral.jpg">
Mistral at Harbour Quays (pictured above) was the best-performing project, recording 17 sales during the September quarter, followed by the now sold-out Ilanah Aqua development at Hope Island (pictured below), with 12 sales.
<img src="/images/stories/2013/01/ilanah2.jpg">
Mistral, currently under construction, features 60 one- and two-bedroom apartments being developed by the Emandar Group. There have been 33 sales recorded to date, with 27 apartments still available for purchase.
One-bedroom apartments start from $309,000.
The Emandar Group has told Colliers International that the remaining apartments are under contract, with the project expected to sell out during the December quarter.
If sales continue at the current rate and no new projects are marketed off the plan, overall supply could be taken up in just over 14 months.
Supply will dry up in just three months in the low-rise sector at the current sales rate.
Analysis by Colliers International shows there are around 1,400 apartments in various stages of planning and gaining approvals.
All planned apartments are in the low- and medium-rise sectors, with around 45% mooted for Hope Island.
</body></html>

North shore the standout Gold Coast new unit market in 2012, helped by receivership sales: Colliers

<html><body>
House building activity declined at its steepest rate in three months to December amid weaker new orders as the overall construction sector continued to contract – albeit at a slower rate – for the 31st consecutive month.
The seasonally adjusted Australian Industry Group/ Housing Industry Association Australian (AIG/HIA) Performance of Construction Index (PCI) increased by 1.8 points in December to 38.8, still well below the 50 points level that separates expansion from contraction.
The December index update shows that house building conditions weakened, with the sector’s activity sub-index falling by 6.1 points to 34.7 to signal a sharper rate of contraction in December.
<img src="/images/stories/2013/01/hiajan8.gif">
New orders in the house building sector declined by four points in December to 33.9, compared with new orders index increasing by 8.3 points to 42.6 across all sectors of the construction industry.
The increased rate of contraction reflected a steeper decline in new orders, “which is of concern for the sector’s outlook”, noted the AIG and HIA.
Apartment building activity was also more subdued in December, with the sub-index declining by 2.4 points in December to 40.1.
In contrast, commercial construction activity contracted at its slowest pace in just over two years, while the rate of decline in engineering construction again eased during the month.
AIG director of public policy Peter Burn says construction activity ended the year largely as it began it, “deeply entrenched in negative territory”.
While he says there are some signs of more positive conditions for 2013, he describes as “worrying” the steeper decline in new orders within the house building sector, with “low consumer confidence continuing to weigh heavily on demand”.
HIA chief economist Harley Dale says the December update for housing is disappointing.
“Detached house building represents well over 60% of all residential construction activity in Australia, and the December 2012 Australian PCI points to a steeper decline in activity and new orders, not to mention employment,” he says.
“That is a concerning update, which aligns with other indicators suggesting a deterioration in pre-existing weak conditions for detached house building in the latter part of last year.
“Activity in the apartments sector only lost a modest amount of the ground gained in November while new orders contracted at a slower pace, but monthly iterations still revolve around clear contractionary conditions.
“All up, if policy makers were hoping the first housing update out in 2013 would deliver a signal of current policy settings boosting the chance of a new home building recovery, they’re going to have to keep hoping," says Dale.
</body></html>

Dwelling construction activity continues to slump in December quarter: AIG/HIA

<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

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News