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That annoying Coles jingle “Down, down, prices are down” (was there ever more reason to shop at Woolworths?) could easily be applied to the outlook for the cash rate in 2013 with economists revising their forecasts in expectation of further rate cuts over the course of the next 12 months.
The key questions remain how many more rate cuts there are likely to be in the current cycle and perhaps more importantly, if they will have any impact on buying intentions of key market segments like first-home buyers and upgraders.
Certainly rate cuts will be welcomed by the generally financially better off investor market, where activity already appears to be on the rise based on October housing finance figures from the ABS.
These showed a 5.5% rise in the value of fixed-rate investor home loans over the month of October, compared with 0.2% decline in the value of owner-occupier mortgages.
An improvement in the new housing market is also expected, with Westpac chief economist Bill Evans noting that residential construction sector has “turned the corner and will be supported by recent lower interest rates, a shift which has greatly enhanced housing affordability” as well as from the  $15,000 first-home buyer handouts for those buying or building a new home in NSW and Queensland.
Evans quotes ABS construction figures that show that new dwelling construction advanced by 3.7% in the September quarter, partially reversing a 7% decline over the previous five quarters.
In addition, he points to the October Westpac- Melbourne Institute consumer sentiment index, where the ‘time to buy a dwelling’ sub-index showed a very positive response rising to the highest level since late 2009.
“This suggests that a housing recovery is locked-in for 2013. However, we expect the upswing in activity to be relatively gradual to emerge and that the cycle will be restrained by historical standards. The main constraint is the high starting point for household debt. Our forecast is for new dwelling construction to rise by 4.5% through 2013 and by 5.0% through 2014,” he says.
However, the evidence of a recovery is less certain for established housing, which makes up the bulk of the Australian housing market.
Concerns remain about the fragile confidence of Australian consumers, with the November Westpac consumer index recording a drop in confidence to levels last seen before the RBA began cutting the cash rate in November last year, though mortgage holder confidence rose 4.4%.
The key take-home message from the November index were concerns about the <a href="https://www.propertyobserver.com.au/economy/households-growing-concern-about-job-market-point-to-further-rate-cuts-westpac/2012121358456?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=latestnews" target="_blank">economy and job security are upper-most in the minds of consumers</a>, something a rate cut won't easily fix.
Despite 175 basis points being trimmed from the cash rate since November 2011, consumer confidence has not improved, with interest rate cuts appearing to lose their potency, a point observed by Laing+Simmons general manager Leanne Pilkington who, following the December rate cut, said they were no longer having any meaningful impact on <a href="/news">housing market activity</a>.
For the RBA, the focus will be on the job market and the non-mining sectors of the economy, including housing, taking up the slack with the 2014 mining investment peak now “confirmed”.
“Labour demand had softened, which pointed to only modest employment growth in coming months,” was arguable the key sentence in the December minutes, along with the RBA’s note that the “inflation outlook still afforded the board some scope to provide additional support to demand”.
ANZ has revised its estimates and is now tipping a further 100 basis points to be shaved off the cash rate over 2013, principally due to the slowdown in mining investment and an expected slow pick-up in non-mining sectors.
This would take the cash rate to an unprecedented 52 year low of 2% and could result in introductory variable loans being offered at around 4.4% (currently the cheapest variable loan offerings start from about 5.2%) assuming lenders pass on about 80 basis points to borrowers.
Standard variable mortgage rates would fall to around 5.6%, while the three-year fixed rate would fall well below 5%.
AMP Capital chief economist Shane Oliver is tipping at least two more rate cuts next year (in February and April), taking the cash rate to 2.5%, but warns that the cash rate could fall below 2% if the recovery in key non-mining sectors like retail, housing and tourism is slower to eventuate.
According to Oliver, in the current environment “of household and business caution post-GFC” the neutral standard variable rate has likely fallen to around 6.75%.
“In the last two easing cycles the mortgage rate had to fall to around 6.05% in 2002 and to 5.75% in 2009.
“Given the fall in the likely neutral level for mortgage rates and the current headwinds coming from the strong Australian dollar and fiscal tightening, mortgage rates will at least need to fall to these lows.
“Given ongoing issues with bank funding, to achieve a circa 6% mortgage rate the cash rate will need to fall to around 2.5%,” he says.
Oliver is quite bullish on the impact that lower rates will have on the housing market.
“Based on the assumption that the RBA cuts interest rates further and the global economy stabilizes then Australian economic growth should pick up by the end of next year.
“One should not underestimate the boost lower mortgage rates will ultimately provide. A fall in mortgage rates to 6% from the 2011 high of around 7.8% is equivalent to around $4500 pa in interest savings on a $300,000 mortgage. Ultimately some of that will be spent.
The key question remains though if lower interest rates will have enough of an impact on the housing market to spur a pick-up in activity.
Westpac’s Bill Evans anticipates one more rate cut on February 5 when the RBA next meets, but tellingly adds that “evidence to date is that low rates are not achieving traction with the hearts and minds of households or business”.
But he says the RBA is unlikely to concede that its primary policy instrument is ineffective.
However if the cash rate does fall to 2% and bank mortgage rates follow downwards but home buyers stay away, the uncomfortable question for the RBA and economists will be: where to next?
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lschlesinger-FZcF9M3vE6

Down, down, interest rates going down in 2013, but will they make a difference?

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Unless you have a reliable crystal ball, predicting how the property market will shape up in 2013 is a tough call to make.
Uncertainties include how the global economy will play out and impact on Australia, the extent of the slowdown in the mining investment boom and how quickly non-mining sectors like retailing, housing, manufacturing and tourism can pick-up the slack.
Economists are tipping interest rates to fall further in 2013 and reach record lows, which will be good news for mortgage holders, but astute buyers and investors will recognise the economic warning signs.
Lower interest rates are having less of an impact on buying intentions, with confidence seeming to be the major stumbling block.
Still, many property market players are tipping modest property gains in 2013 for some markets, while others are set to tread water or fall further.
Property Observer has spoken to a wide range of industry players and pundits to get their thoughts on what might happen next year.
Here are 10 tips from property market analysts about what to expect in 2013:
1. Sydney to do better, but best NSW prospects still in the regions: Terry Ryder
Hotspotting.com.au’s Terry Ryder expects the Sydney market to do better in 2013 but still tips a number of NSW regional towns to outperform the capital city. Regional towns, he says, are more affordable and have provided much better capital growth over recent years. He expects the following regional market to continue to outperform Sydney in 2013: <a target="_blank" href="/news">Dubbo</a>, <a target="_blank" href="/news">Tamworth</a>, <a target="_blank" href="/news">Gunnedah</a>, <a target="_blank" href="/news">Mudgee</a>, <a target="_blank" href="/news">Orange</a>, <a target="_blank" href="/news">Goulburn</a>, <a target="_blank" href="/news">Albury </a>and <a target="_blank" href="/news">Wagga Wagga</a>. For more on <a target="_blank" href="/news">capital city vs regional prospects in 2013 watch the full webinar</a> with Terry Ryder.
2. Luxury market to recover first: Janusz Hooker
LJ Hooker deputy chairman Janusz Hooker says a recovery in the housing market is “inevitable”, with the luxury high-end market expected to be the first to enjoy price recovery having been hit the hardest by the downturn. His advice to property investors is to “look for places that went down the most and also watch the big cities – when they move it fans out to the regions usually within six to 12 months”.
3. Sydney sub-$750,000 market the strongest in Australia’s “BHP of real estate”: John McGrath
McGrath Estate Agents CEO John McGrath says recent weekend clearance rates indicate clearly that the under-$750,000 market is still strongest in Sydney, with McGrath averaging a 69% clearance rate in this bracket, followed by 65% for the $750,000 to $1.5 million sector. "Sydney remains the <a target="_blank" href="https://www.propertyobserver.com.au/residential/the-end-of-the-buyers-market-drawing-near-with-australian-property-prices-set-to-rise-in-2013-john-mcgrath/2012121658475/Page-1?utm_campaign=observers&amp;utm_medium=aida&amp;utm_source=po">BHP of Australian real estate</a> – the big blue-chip market that generally outperforms the rest, says McGrath, who predicts a 2% to 5% price rise in the under-$750,000 market and a 5 to 8% rise in the $750,000 to $1.5 million bracket.
4. Consider the outer suburbs of Adelaide and Brisbane: Margaret Lomas
Destiny Financial’s Margaret Lomas says property investors are starting to take a look at the outer suburbs of Adelaide and Brisbane, with activity picking up towards the end of 2012. These were areas were house prices started to move up a little bit in contrast to the rest of the market, which mostly stagnated, she told realestatetalk.com.au.
5. Rent vs buy equation to sway more first-home buyers and renters into the market: Tim Gurner
Tim Gurner, director at Melbourne-based property development company Urban Inc, says the buy versus rent equation will sway strongly towards buying in 2013, “so we’re expecting to see a lot of first home buyers and renters return to the market”. Urban Inc is currently developing Alessi in West Melbourne.
6. Perth and Sydney to perform, Brisbane held back by unemployment: Aaron Maskrey
Aaron Maskrey, research director at PRDnationwide, expects Sydney to experience steady, but modest growth of around 5% throughout the upcoming year. He says Perth should also be a stronger performer in 2013, with a combination of mining investment and low interest rates helping to shift this market off the bottom of its property cycle. “A conservative estimate of price growth during 2013 would see Perth increase in value by 2%, but such is the swing with this resource affected region, greater market sentiment could give rise to 6% growth." Maskrey says Brisbane finds itself in a similar situation to Perth and would have been included with Perth’s forecasted growth but for the sharp rise in unemployment. “With a rising rate of jobless residents, any potential growth that was initially forecasted for Brisbane is now expected to be temporarily suppressed in early 2013,” he says.
 
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7. A more generic uplift in property prices for Sydney then Melbourne: Matthew Chun
Becton CEO Matthew Chun is more bullish on the Sydney property market than Melbourne in 2013. Chun tells Property Observer he expects “meaningful price growth” in Sydney of 4% to 8% with modest growth of 2% to 4% in Melbourne. Chun also expects a more generic recovery across the Sydney market, while Melbourne will be restricted to growth from unique, well-located properties within 10 kilometres of the CBD. “Outside of this zone growth will be flat, and I also don’t expect much growth in the Melbourne apartment market,” he says. Becton's two key projects are Divercity in Waterloo and Newleaf in Bonny Rigg in the west of Sydney.
8. West Melbourne land market has better prospects: Jeff Garvey, director of ID Land
Jeff Garvey, director of Melbourne residential developer ID Land, says the outer west growth corridor, which includes suburbs like <a target="_blank" href="/news">Truganina</a> and <a target="_self" href="/news">Plumpton, </a>have good prospects, in contrast to the perception that the Melbourne land market is struggling. Garvey says the area is supported by “really big infrastructure projects” including the $5 billion regional rail link running from Southern Cross to Werribee and due for completion in 2016. In addition, Truganina is only 20 kilometres from the Melbourne CBD. 
9. Don’t expect or wish for the cash rate to reach 2%: Joe Sirianni
Joe Sirianni, executive director at mortgage brokers Smartline, anticipates only one more rate cut in 2013 and says were the cash rate to fall to 2% it would undermine confidence, which he says is the key issue. “We’re living in changing times and the use of interest rate cuts as a lever to stimulate the economy just isn’t having the same impact as it has in the past. Therefore, I think the RBA will realise that there is little point in going much lower with the cash rate.  A cash rate of 2% would be unprecedented in Australia, and I think there’s a danger that if rates were cut to this level, it would un-nerve most people and exasperate the already low levels of confidence,” says Sirianni.
10. A modest recovery in new housing in NSW in 2013 with better buying conditions: Craig D'Costa
Craig D'Costa, senior development manager of Sekisui House, a co-developer of the $2 billion Central Park project in Sydney, says a recovery in the housing industry will be a key factor in boosting the NSW economy. "The housing industry is forecasting NSW to achieve a modest increase in housing starts for 2013, this comes of the back of government led stimulus for new home buyers with substantial saving in stamp duty and grants. Overall, improved affordability and better buying conditions will underpin home buying activity next year in 2013, with upgraders and investors also likely be very active sectors," he says.
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The 10 insights into the 2013 property market: What, why, when and where to look

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The Gold Coast apartment market remains deeply troubled with developers reporting only 19 high-rise apartment sales over the November quarter, a 70% plunge from sales figure a year ago, according to the latest Midwood Report.
Quarterly sales figures were more than double the paltry eight sales recorded in the August quarter, but just a fraction of the 73 sales recorded in November quarter of 2011.
In total there are 705 high-rise apartments available for purchase on the Gold Coast, which at current sales rates would take close to a decade to clear.
The Midwood report classifies high-rise sales as those developments of 40 storeys and higher.
All but three of the sales over the quarter were in the Brookfield Multiplex-constructed $700 million Hilton Surfers Paradise (pictured below), following prices being reduced by up to a third.
<img alt="hiltonsurfers" height="346" width="470" src="/images/stories/2012/12/hiltonsurfers.jpg">
There were no sales reported in the two other major high-rise apartments – Niecon’s Oracle and Juniper’s Soul, both of which are in the hands of receivers.
The Midwood report records just 45 total unit sales on the Gold Coast over the November quarter, compared with 107 in the corresponding quarter last year.
Putting this in context, there were 386 apartment sales recorded in Brisbane over the same period, more than three times more than the 110 apartments sold a year ago.
In the Hilton, prices ranged from $495,000 for a two-bedroom, one-bathroom apartment over 76 square metres to $1.63 million for a two-bedroom, two bath apartment over 118 square metres.
According to 360 Project Marketing, which is marketing the Hilton apartments, buyers have snapped up more than $15 million in apartments during the past three months, following a recent reduction in prices of up to 34%.
Marketing director Trent Milburn of 360 Project  says the new price tags have stimulated buyer activity across the board.
The project also has Foreign Investment Review Board (FIRB) approval, and Milburn says many of the buyers have come from south-east Asia.
“A month ago a foreign buyer could have purchased an apartment in the development for under $500,000, two months ago they could have bought for under $450,000 – now we’re at $525,000 and headed for $600,000.
Since January, 65 apartments have sold at prices between $435,000 and $2.3 million, with the final sub-penthouse currently on the market for $3.45 million.


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Out of the 410 apartments across the Boulevard and Orchid towers in the Hilton development, 134 remain up for sale.
Midwood reports two sales – one each in the Oceana and Solitaire Towers – as part of the Element Burleigh Beach project being developed by Amalgamated Property Group and marketed by CBRE, which is nearly sold out.
A further sale was recorded at Southport Central III, the Lindaning Pty Ltd/Colliers International development in the hands of receivers, with 87 out of 258 units still available for sale.
Report author Bill Morris notes that high-rise sales “continue to be sluggish”, with only the Brookfield Multiplex/360 Project marketing Hilton recording a reasonable volume, having re-introduced 109 apartments when contracts had fallen over, and discounted them by 30%.
“Oracle and Soul are only recently in receivership and the liquidators have yet to mount a solid marketing campaign and price list,” says Morris.
Morris notes that a new project, Broadbeach Central has been announced by Amalgamated Property Group and Morris Property Group on Main Street Broadbeach, however off-the-plan sales have yet to commence.
There was little for investors to cheer about either with rents unchanged across both units and houses.
Median weekly rents for one-bedroom apartments are unchanged from two years at $290 while the median two-bedroom apartment rent is up slightly from $340 in 2010 to $350 currently.
The Gold Coast market has been hit by both a slowdown in interstate and overseas migration into Queensland over the last few years with regional population growth slowing from 3.4% in 2001 to 2.1% in 2011.
Overseas migration numbers have nearly halved from around 60,000 per year in 2008-09 to just over 30,000 in 2010-11 while interstate migration has fallen from around 27,000 in 2007-08 to less than 10,000 in 2010-11.
The Midwood report notes that he recent downturn in Queensland net overseas migration is clearly a result of the lack of employment opportunity.
“With Queensland’s two biggest employers, construction and hospitality industries in the worst position we have seen since pre-GFC, migrants are choosing to settle elsewhere,” says the Midwood report.
The Midwood report shows that the number of apartments approved for development increased over the six months to June 2012 from 450 to 490, but numbers have been trending down since the GFC, when there were more than 1,800 apartments approved in the second half of 2007.
 
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Heavily discounted Hilton Surfers Paradise the only notable Gold Coast high-rise seller in November quarter: Midwood 

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The last few months of 2012 were noticeable for the manoeuvrings of arguable the three most recognisable mortgage broking brands: Aussie, Mortgage Choice and newish kid on the block, Yellow Brick Road.
All three franchise groups have taken steps to shore up their revenue-generating capabilities in what is likely to a challenging 2013 for mortgage lending and the housing market.
Each brand has adopted a different growth strategy, but the ultimate objective is the same – grow market share, increase revenues and improve profitability. The most recent media attention has been focused on John Symond selling the majority of <a href="/news">his Aussie Home Loans business to the Commonwealth Bank</a>.
Should the ACCC wave the chequered flag, Australia's biggest home lender will go from minority shareholder (33%) to owning 80% of Aussie Home Loans with the right to acquire all of the business at a later stage, should the bank deem it prudent.
It certainly is a prudent move from John Symond (apart from increasing his already substantial personal wealth), who will brush away criticisms that the once bank-bashing battler Aussie brand is now bank-owned.
Having re-positioned Aussie as a mortgage broker in 2002 rather than primarily as a non-bank lender prior to the GFC funding freeze (though it still offers Aussie-branded loans) the investment by the Commonwealth Bank  – said to be around $160 million –will ensure Aussie can continue to grow its retail stores, mortgage broker numbers and brand.
"Our feeling is it is a bigger, better Aussie with more choice and services for consumers, and that has to be good for competition,” he told Property Observer's sister publication <a href="https://www.propertyobserver.com.au/industry-news/aussie-john-symond-explains-sale-to-cba/2012121958587?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news" target="_blank">SmartCompany.</a>
Symond’s former non-bank Wizard rival Mark Bouris has also taken a number of decisive steps in recent months aimed at ensuring his fast-expanding Yellow Brick Road franchise business has the funding it needs to provide competitive home loans and can generate enough leads to keep its 140 or so franchise stores busy and profitable.
The well-connected Bouris tied up a wholesale funding deal with <a href="/news">Macquarie Bank in November</a>, (which is itself ramping up its mortgage lending) and this month signed a reciprocal referral agreement with <a href="https://www.propertyobserver.com.au/industry-news/yellow-brick-road-and-run-property-form-property-and-financial-services-referral-alliance/2012121758542" target="_blank">property management group RUN Property</a>. Under the agreement Yellow Brick Road franchisees will offer their home loan and wealth management products and services to RUN’s 40,000 client base, many of whom are property investors.
Macquarie Group, of which Macquarie Bank is a subsidiary, cemented its ties with Yellow Brick Road by acquiring an 8.3% shareholding just ahead of the Christmas break with Yellow Brick Road strategic adviser and Australian Financial Review columnist Christopher Joye investing $1 million through Coolabah Ventures business entity.
Business Spectator's Stephen Bartholomeusz points out that in a twist of irony, Macquarie was the bank that originally funded John Symond's push into mortgage lending and is now doing something similar with his long-time rival.
 
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Mortgage Choice may not have sought or garnered the headlines that Bouris and Symond have managed, but the ASX-listed franchise has also been re-jigging its business model and building on its strategy of diversifying its offering.
In December, as it celebrated its 20th anniversary, Mortgage Choice opening its first financial planning franchises in Sydney and another one in Brisbane.
The focus will be on providing risk insurance products – a natural fit to its home loan business – as well as superannuation and investment advice.
Mortgage Choice aims to have 10 financial planning stores up and running as part of a “soft launch” with a full roll-out planned from July 2013.
The franchise has ambitious plans for its financial planning business.
Looking ahead over the next two decades, Mortgage Choice CEO Michael Russell says the company has plans to “revolutionise the financial planning industry in the same way it did the home loan business”.
“We have put in place the solid foundations needed to successfully transition from a home loan specialist into the full financial services provider our customers have been asking for,” he adds.
These developments are good news for shareholders in these three businesses, but smaller mortgage broking groups could find the going a lot tougher, with further consolidation activity likely in the coming months.
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Mortgage broking big brands position themselves for challenging 2013 with diverse strategies

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The Sydney median house price gained just 0.4% in the September quarter while unit prices were unchanged as the strongest growth was recorded in outer suburbs to the west and north, according to the latest figures released this week by the Real Estate Institute of NSW (REINSW).
The median Sydney house price stands at $567,000 still 3.1% down over the 12 months to September while the unit price stands at $460,000, down 1.1% over the same period.
The inner and middle suburbs of Sydney have borne the brunt of house price declines with the median house price for inner city suburbs down 2.8% over the past 12 months to a median $1.03 million while middle suburb house prices have fallen 3.3% over the same period to $720,000.
House prices in the prestige Eastern suburbs local of Woollahra have fallen 21% over the past year from $1.9 million to $1.45 million from 90 sales while houses in Mosman on the north shore have fallen 15% from $2.25 million to $1.9 million with 279 sales recorded.
The outer suburbs, predominantly in the west, were the ‘good news’ story, having avoided the drops experienced in inner and middle parts of the city, with the median house price remaining stable at $460,000.
Unit prices made their strongest gains in the Blue Mountains LGA rising 8.6% to a median of $315,000 with four of the top performing unit markets in Sydney’s outer west. The exception was Ku-Ring Gai to the north.
Across Sydney, the more affordable unit market performed decidedly better than houses with 25 Sydney LGA recorded gains in their unit prices and only 15 recorded falls. The Manly LGA recorded the biggest annual fall in unit prices – 8.5% to a median of $670,000.
Top five performing Sydney LGAs year to September 2012 - Units
<table cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td width="154" valign="top">
LGA
</td>
<td width="154" valign="top">
Median price
</td>
<td width="154" valign="top">
Gain over year
</td>
</tr>
<tr>
<td width="154" valign="top">
Blue Mountains
</td>
<td width="154" valign="top">
$315,000
</td>
<td width="154" valign="top">
8.6%
</td>
</tr>
<tr>
<td width="154" valign="top">
Campbelltown
</td>
<td width="154" valign="top">
$256,000
</td>
<td width="154" valign="top">
6.1%
</td>
</tr>
<tr>
<td width="154" valign="top">
Camden
</td>
<td width="154" valign="top">
$324,000
</td>
<td width="154" valign="top">
6.1%
</td>
</tr>
<tr>
<td width="154" valign="top">
Ku-Ring Gai
</td>
<td width="154" valign="top">
$662,000
</td>
<td width="154" valign="top">
5.3%
</td>
</tr>
<tr>
<td width="154" valign="top">
Bankstown
</td>
<td width="154" valign="top">
$346,000
</td>
<td width="154" valign="top">
4.4%
</td>
</tr>
</tbody></table>
Source REINSW
There were only 13 Sydney LGAs that recorded house price gains over the year to September with 26 LGAs recording falls.
The top performer was Camden in the south west, which managed a gain of 2.8% to a median of $452,250 over the year to September with the outer western suburbs (Penrith, Wollondilly, Bankstown) again prominent among the top performers, with Drummoyne in the inner west the exception to the rule.
Top five performing Sydney LGAs year to September 2012 - Houses
<table cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td width="154" valign="top">
LGA
</td>
<td width="154" valign="top">
Median price
</td>
<td width="154" valign="top">
Gain over year
</td>
</tr>
<tr>
<td width="154" valign="top">
Camden
</td>
<td width="154" valign="top">
$452,250
</td>
<td width="154" valign="top">
2.8%
</td>
</tr>
<tr>
<td width="154" valign="top">
Penrith
</td>
<td width="154" valign="top">
$380,000
</td>
<td width="154" valign="top">
2.7%
</td>
</tr>
<tr>
<td width="154" valign="top">
Drummoyne
</td>
<td width="154" valign="top">
$1,100,000
</td>
<td width="154" valign="top">
2.5%
</td>
</tr>
<tr>
<td width="154" valign="top">
Wollondilly
</td>
<td width="154" valign="top">
$438,000
</td>
<td width="154" valign="top">
2.4%
</td>
</tr>
<tr>
<td width="154" valign="top">
Bankstown
</td>
<td width="154" valign="top">
$540,000
</td>
<td width="154" valign="top">
2.3%
</td>
</tr>
</tbody></table>
Source: REINSW
There were much strong gains in some of the major regional towns headed by the Upper Hunter, with its house prices up 11.1% to a median of $306,000 ahead of Greater Lithgow, which recording a 9.6% gain to $232,500 and Singleton, up 7.5% to a median of $428,000.
There were also gains for Bathurst (up 5.4% to $510,000) and Dubbo (up 3.8% to $269,500).
However, the regions were very much a mixed bag with losses recorded in Wagga Wagga (down 3.3% to median of $300,000), Tweed (down 5.1% to $438,000), Port Macquarie Hastings (down 3.1% to $376,500) and Kempsey (down 8.6% to median of $267,500).
Wollongong house prices are down 2.2% for the year to a median of $440,000 while Newcastle house price are down o.5% to a median $385,000.
Commenting on the Sydney metropolitan market, REINSW chief executive Tim McKibbin says the flow-on effect from interest rates has yet to be seen.
“As conditions in the US improve, it is having an impact on our market and the overly cautious outlook we have had is beginning to ease.
“While we will not see sharp rises in property in 2013, we do expect to see consistent growth,” he says.
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Sydney house and unit prices continue to tread water with strongest gains in far outer suburbs: REINSW

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Mortgage industry bigwig John Symond has tipped a gradual improvement in the housing market in 2013 and for interest rates to fall further.
“I am pretty confident the housing market throughout the country has bottomed out,” he says.
Symond believes there will be a “very gradual increase in [property] values across the board”, but not the 15% or 20% annual spike that occurred pre-GFC.
Mirroring comments made by<a href="https://www.propertyobserver.com.au/https://www.propertyobserver.com.au/news/no-housing-price-crash-but-if-pries-increase-further-australia-flirting-with-danger-glenn-stevens/2012121858581" target="_blank"> RBA governor Glenn Stevens </a> about sustainable house price growth, Symond said such price spikes were “not healthy”
Rather, he says a gradual increase of 4% to 5% would be “a good healthy return year-on-year”.
“I believe the property market will now head into a healthy state of growth with only gradual increases and that is on the back of low interest rates,” he says.
He is also starting to see a return of property investors to the market due them having the “greatest choice in the number of properties on the market in Australia’s history” combined with the low interest rates.
“I am confident we will see a healthy gradual improvement in housing across the country and I believe the regional centres will see that increase as well because overall Australia still has a shortage of housing,” he says.
Symond says he also expects interest rates to head lower in 2013.
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Property has bottomed out and heading for “healthy" growth rates of around 4% to 5% per annum”: John Symond

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Reserve Bank governor Glenn Stevens has played down concerns of house prices crashing but has indicated the RBA would act if prices started rising by 10% to 20% per year alongside rising household debt levels.
He urged Australians to be more comfortable with more modest increases in house prices, describing double-digit house price growth as both “puzzling and “troubling”.
He also suggested the RBA would be comfortable with the cash rate falling below 3%, adding that there was no “particularly clear evidence” that monetary policy is failing to work, as part of an interview with the Australian Financial Review.
“We’ve seen some pick-up in housing prices, as you’d expect with interest rates coming down, but I don’t think we’re seeing at the moment a dangerous leveraging up there by households,” he said.
Stevens said his position was that house prices in Australia were high, but when comparing to a range of other countries, not just the US, it was “actually a lot harder to make the case that they’re grossly overpriced and due for a crash”.
“After all, we’ve been around this level of house prices/income for 10 years – [it’s] taking a long time to burst if it is a bubble.
“So I’m not so much concerned about a crash, but as I have said also before, it’s seems to me we would be flirting with danger were we to see a very big run-up from these present levels,” he said.
Stevens said the RBA was comfortable with “gentle reversal” of the 10 or 15% decline that has already occurred” noting that there had been “some gain in house prices over the past year”.
But he said it would “troubling” if there were a return to “very strong 10 to 20% per year persistent rates of growth of housing prices, especially if that was accompanied by a return of rising leverage”.
“I think that would be a very dangerous thing to do, and we would be imprudent in the extreme to preside over that,” he said.
He tempered these remarks by saying that he did not expect such a scenario to unfold.
In the interview he also acknowledged that the drop in house prices had impact on the residential construction sector, dampening the confidence of builders and their lenders because “nobody wants to build an asset whose price is going down as you build it”.
He said the seeming end of the downturn in prices would be helpful in getting some more construction going, but added that being comfortable with modest house price growth was also important in a recovery for this sector.
He also noted that he had expected the housing construction sector to pick up earlier than expected, but said “there are some signs of that looking like it’s about to go up now”.
On the issue of interest rates, Stevens said that a cash rate of 3% was not an emergency setting as was the case four years ago, but that the low rate had been “calibrated” for the current circumstances.
He said there was no “particular totemic significance” to be attached to the cash rate going below 3% per cent “if it needed to do that”.
Economists are tipping a cash rate below 3% in 2013, with ANZ expecting four more rate cuts to an unprecedented rate of 2%.
Stevens acknowledged that interest rate futures markets were pricing in further cuts but said the RBA would “have a look in the New Year and see how things look”.
“But I think we have to recognise that we are in a very unusual world internationally. It is a very important conditioning factor that the rate of interest out of the global money centres is nil.
“A 3% rate for us, which is very low by historical standards, is, by global standards, pretty attractive for others.”
He added that it needed to be accepted that the international situation has impacted on where the RBA sets its cash rate.
“But whether or not we need to go lower, we’ll see how that turns out in the new year.”
 
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No housing price crash, but if prices increase further Australia ‘flirting with danger’: RBA's Glenn Stevens

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Landlords could find themselves bearing heavy losses if their properties are rented by tenants who  undertake criminal activities if they don’t take out extra insurance to cover this sort of behaviour.
However, investigations by Property Observer indicate that obtaining the extra insurance needed may be hard to come by, with many insurers not readily covering this kind of activity.
It especially highlights the importance that property managers properly vet prospective tenants before signing lease agreements.
The issue has come to light following the reporting of two drug labs uncovered in rental properties in Melbourne and on the Gold Coast in the last few months.
In September, the Herald Sun reported that property investor Nicholas Milan Wyman would sue his property manager after suffering extensive damage his rental property in St Leonards, Sydney, which was used as a drug lab and where a corpse was dismembered.
Last week, the Gold Coast Bulletin reported that a police drug raid uncovered a drug lab in a rental property<a href="https://www.propertyobserver.com.au/landlords/how-queensland-property-insurance-can-help-if-a-drug-lab-is-found-in-an-investment-property-amanda-haack/2012121858560?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=observers" target="_blank"> on the prestigious Isle of Capri.</a>
Property Observer recently contacted the major landlord insurance providers, but only one – Terri Scheer Insurance – provided a definite response to the question of landlord recompense cover for criminal activity.
Another insurance provider, Perth-based EBM Insurance Brokers, has subsequently contacted Property Observer to say that its RentCover landlord insurance does cover drug lab clean-up costs and recently paid out a $50,000 claim to clean up a property used as a drug lab in Hoxton Park, NSW.
According to RentCover general manager, Sharon Fox-Slater, police discovered the laboratory by chance when investigating a child abuse allegation; the home was occupied by a family with four children aged under 10.
Fox-Slater says in this case the alleged crooks were careful with gardens well-kept and the four-bedroom home "immaculate during property inspections, with the laboratory dismantled".
“We treated the claim as tenant damage because the ongoing liability is massive if the property is not cleaned correctly,” she said.
A spokesperson for Allianz Australia said the company could not provide any comments in relation to the example of the St Leonards drug lab story.
“We have looked into it, but there are some many potential complexities and unknowns in the scenario provided below that it is not possible to provide a simple response as to whether our landlords policy could respond in full or part to such an event,” said the spokesperson.
A spokesperson for CGU said the insurer had no comment.
Aon said it could not comment, though it does provide a professional indemnity policy for property managers with a “mismanagement extension”.
 
<hr class="system-pagebreak">
 
This extension provides protection from allegations of negligence arising from any claim arising as a result of an actual or alleged breach of the agent’s professional duty as a property manager, including malicious damage to a rental property or loss of income or value to a rental property as a result of illegal activity by tenants (including drug labs).
Terri Scheer Insurance manager Carolyn Majda said criminal activity by a tenant that results in damage to the rental property “may be covered by insurance – provided there is a tailored landlord insurance policy in place”.
Terri Scheer Insurance offers tailored insurance policies to cover landlords for many risks including malicious and accidental damage, loss of rental income and legal liability.
“Landlord insurance policies that cover these specific risks can assist landlords to safeguard their investment and ensure they continue to receive a steady flow of rental income,” Majda says.
“A good landlord insurance policy that covers malicious damage – for example holes punched in walls, doors that have been kicked in and intentional damage to carpets and floors - will class illegal activity within this category.
“Loss of rental income resulting from criminal activity may also be covered by landlord insurance, for example, if the landlord is unable to lease the property while it is repaired or cleaned, or if the tenant absconds before their lease is up for renewal.
“This is why every landlord should have a tailored landlord insurance policy,” she says.
“Landlord insurance policies that cover these specific risks can assist landlords to safeguard their investment and ensure they continue to receive a steady flow of rental income.
Majda says the policy should also provide cover if a court orders a tenant’s eviction or terminates the rental agreement due to tenant hardship.
“A standard building and contents insurance policy generally won’t cover landlords for many of these risks,” she says.
From January 1 next year, all real estate licensees in NSW will be required to have mandatory professional indemnity insurance with cover of at least $1 million for any one claim and not less than $3 million in the aggregate for all claims made during the period of insurance.
Photo by West Midlands Police courtesy of <a href="https://www.flickr.com/" target="_blank">Flickr</a>.
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Drug labs: landlords exposed if tenants undertaking criminal activity

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The north-west Melbourne satellite town of Sunbury has proved popular with Sydney and Melbourne commercial property investors with three properties selling recently on strong yields.
The top yield was achieved for a Sunbury childcare centre on Cornish Street, which sold privately for $2.31 million, equating to a sharpish yield of 8.45%.
The property is leased for 10 years with a 10 year renewal option to G8 Education – ASX listed operator with over 130 centres across Australia.
The property was marketed by Burgess Rawson’s Adam Thomas, who has sold a number of childcare centres over the course of the year including in Doncaster, Sydenham, Maribynong and Cranbourne,
The premises of a Subway store, with a five-year lease and renewal options to 2024 on the corner Station &amp; Evans Street in Sunbury, sold at auction last week for $610,000 on a yield of 6.55%.
The price exceeded the reserve by around 10% and was picked up by a "cashed-up Melbourne investor" according to Thomas.
And the 940 square metres premises of two showrooms leased to national car repair firm Midas and tyre retailer Beaurepaires until 2019 sold under the hammer for $2.9 million - $100,000 above the reserve on a yield of 6.25%.
Thomas says the sales demonstrate the appeal of Sunbury as a town in its own right and the appeal of commercial properties with strong and secure tenants.
Sunbury, about 40 kilometres north west of Melbourne, has a population of around 30,000 people.
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Investors snap up Sunbury commercial properties at yields ranging from 6.25% to 8.45%

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A pick-up in both population growth and overseas migration bodes well for the housing market, according to CommSec chief economist Craig James.
Australia’s population grew by 359,600 people over the year to June 2012 to reach 22,683,600 people with its annual population growth rate rising from 1.49% to 1.61% – a near three year high.
A total of 208,300 people migrated to Australia over year to June - the fifth consecutive quarter that annual migration has increased, with Western Australia claiming 23% of Australia's total net overseas migration for the year compared with 18% for the previous year.
WA managed population growth of 3.3% over the 12 month period - double the Australian average - and on the verge of breaking Queensland's record for highest interstate migration.
In absolute terms, Victoria had the highest number of new arrivals (both interstate and overseas) totalling 89,000 followed by Queensland (86,000) and NSW (78,900) and WA (78,000).
James says the latest population figures are “encouraging”.
“Population growth is again rising, underpinned by migration. And if more people are coming to Australia that means greater demand for houses, cars and retail items. Clearly faster population growth is good news for builders and retailers,” he says.
A similar point was made by Chart Keck Cramer’s Robert Papaleo with reference to the struggling Melbourne land market.
According to Papaleo, a pick-up in overseas migration will have flow-on effects for the Melbourne property market and help spur a recovery in the fringe residential new housing market.
“Net overseas migration has come off the bottom of its cycle, but there is usually a 12 to 18 month lag before it feeds into the housing market,” <a target="_blank" href="https://www.propertyobserver.com.au/victoria/long-slow-road-to-recovery-for-melbourne-residential-land-market-with-prices-to-fall-further-charter-keck-cramer/2012121158413/Page-2">he told Property Observer.</a>
A pick-up in overseas migration could result in a rise in demand for fringe housing from these new arrivals but could also see them acquiring established housing and those displaced residents choosing, in some cases, to buy a lifestyle property on the outskirts of the city.
According to James, a pick-up in migration is also positive from a longer-run point of view in that it flattens out the ageing profile.
“We will need more in the way of younger people over time to support the growing ranks of pensioners,” he says.
James does include the counter-argument that faster population growth may not always be a good thing.
“It is all about striking the right balance. If we need more workers and we can’t get them locally, it makes sense that we bring them in from abroad. It is vital that supply and demand for workers is brought into balance,” he says.
 
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Population and migration pick-up likely to deliver boost to housing market: CommSec

<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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