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There has been no official confirmation of a bid by Mirvac to merge with Australand in a move that would create a $7 billion listed property trust.
Australand posted an ASX statement to say that it was “not in receipt of any such proposal” with Mirvac, providing the same Australand statement.
Mirvac later sent an email to the Australian Financial Review (which broke the story) that it continually assesses opportunities to increase shareholder value.
"We are also aware of our continuous disclosure obligations and there is nothing to disclose." An article in the Australian Financial Review claimed that Mirvac, under the new leadership of Susan Lloyd-Hurwitz, was preparing a proposal to merge with its smaller rival.
The mooted merger proposal follows the Australand board rejecting an offer from GPT to acquire its non-residential businesses for $3 billion.
The AFR article did not name any source for its story, but says the proposal is being considered by Mirvac advisers Citigroup and is at an “early stage”.
For the deal to go through, it would need the backing of Singaporean real estate giant CapitaLand, Australand’s controlling shareholder.
AFR veteran property editor Robert Harley said a Mirvac merger proposal would be a better fit than GPT only wanting Australand's commercial assets.
Goldman Sachs A-REIT analyst Peter Zuk notes that the AFR article suggests that other parties could potentially join the offer process, including industrial specialist Goodman Group and Lend Lease.
Zuk says he could see a “strategic rationale” for the merger and says it would not surprise the investment bank “if some/all of these parties were interested in having a look at Austrland’s assets”
“Focusing on the reported potential Australand/Mirvac merger, we can see the strategic rationale behind any potential merger given the similarities between their business models,” says Zuk.
"Whether on a stand alone basis or a combined entity basis, we see both Mirvac and Australand as having leverage to:
<ul>
<li>The Australian residential market recovery; </li>
<li>Sourcing cheaper debt</li>
<li>Lower corporate overheads."</li>
</ul>
Recent mergers/takeovers in the listed REIT space include Goodman Group (GMG) and its consortium acquiring the then listed ING Industrial Fund in March 2011 and Blackstone acquiring the Valad Property Group in May 2011.
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No official confirmation of Mirvac proposal to merge with Australand

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The Commonwealth Bank is set to acquire 80% of John Symond's Aussie Home Loans mortgage broking business with the right to subsequently move to 100% ownership.
The bank increasing its stake in Aussie from the current 33% (acquired in August 2008) is subject to it obtaining informal clearance from the Australian Competition and Consumer Commission (ACCC).
John Symond will remain as executive chairman and Aussie will continue to operate as a standalone mortgage broker and financial services provider, said the Commonwealth Bank in a statement.
“We recognise the strength and reputation of the Aussie brand and name in the Australian mortgage market and also the importance of broker distribution of home loans and other financial products," said Commonwealth Bank group executive Rob Jesudason.
Jesudason says that for Aussie, it will be "business as usual as it continues to provide a full range of services to brokers and lenders in the way it always has".
The financial terms of the acquisition are confidential, however the transaction is not material to the Commonwealth Bank.
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Commonwealth Bank lifts stake in Aussie Home Loans to 80%

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The likelihood of house prices rising in real terms in 2013 are “not good”, according to the University of Western Sydney’s professor Steve Keen, who says his 2008 call of a slow 40% fall in Australian house prices over the next 10 to 15 years is looking “healthy”.
According to Keen, for house prices to perform better than the current inflation rate of 2% would require that property price growth start to accelerate.
However, he says the opposite has been happening following a “slight uptick in nominal prices over the last six months”.
According to RP Data, capital city house prices rose 0.4% over the three months to November, following a quarterly fall of 0.6% in October, a 2% gain over the September quarter and a 1.6% gain over the August quarter – to be up just 0.1% year-on-year.
Keen says the argument put forward by “permabulls” like Dr Andrew Wilson of Australian Property Monitors – tipping house prices to rise 3% to 5% nationally in 2013 – and BIS Shrapnel’s Robert Mellor – expecting 2% to 8% growth in Sydney, based on the “usual property mantra that house prices always rise faster than consumer prices because of the “fundamentals” of (a) a rising population and (b) tight supply” – is out of sync with what is actually happening in the property market, where prices have fallen 9.8% in real terms since peaking in June 2010.
Writing for Business Spectator, Keen revived comments that gained him notoriety in 2008, when he said in an interview with Kerry O'Brien on the ABC's Lateline the property prices would fall 40%, though he distanced Australia’s property predicament from that which befell the American housing market.
“While Australia’s house price fall post its bubble peak is clearly different to America’s crash, it’s on par with that experienced in Japan’s long, slow melt,” says Keen.
“That was the basis of the comment that dragged me into the property debate back in 2008, that Japan had experienced a 40% fall from its bubble peak over 10 to 15 years, and I saw no reason for Australia to be different. So that call is looking healthy.”
Keen says he does not accept the argument that an undersupply of housing will prop up the property market, and says the bigger issue is the high-level of debt held by Australian households, which has not diminished as it has in the US.
While mortgage lending is at its slowest on record, Keen says the main point to bear in mind is that it is still growing with mortgage debt at 85% of GDP compared with the situation in the US, where mortgage debt as a percentage of GDP has fallen from 86% in 2009 to 68% in 2012.
The following chart prepared by Keen on his <a target="_blank" href="https://www.debtdeflation/">www.debtdeflation.com</a> blog shows the much higher ratio of private sector debt relative to GDP (the blue line) compared with the red line showing the ratio of government debt to GDP, based on RBA data.
<img src="/images/stories/2012/12/keendec18.gif">


<hr class="system-pagebreak">
Keen says for house prices to rise, “the flow of new mortgages has to exceed the flow of properties onto the market, and that requires mortgage debt to not merely rise, but do so at an accelerating pace”.
And it has sustain this accelerated growth for some time – something that  Keen says will be difficult with the debt burden of Australian households already so “immense”.
“Australia, with a mortgage debt to income ratio that has barely budged from its 87% of GDP peak, has precious little room to maintain accelerating mortgage debt.
“America, on the other hand, has some headroom because of the fall in mortgage debt from 86% to 68% of GDP,” he says.
Keen’s column on Business Spectator drew the usual volley of disparaging remarks about his forecasts.
But they’re unlikely to bother the thick-skinned Keen, whose international reputation is growing at a faster rate than Australians' propensity to take on new mortgages.
Keen recently gave addresses to the <a target="_blank" href="https://www.debtdeflation.com/blogs/2012/12/11/briefing-on-the-fiscal-cliff-at-congress/">US congress on the fiscal cliff</a> and in November took part in an <a target="_blank" href="https://www.debtdeflation.com/blogs/2012/11/29/a-macroeconomics-debate-at-cambridge/">economics debate at Cambridge University</a>.
This year he has also appeared on the BBC’s Question Time to discuss the impact of debt on economies along with addresses at conferences around the world.
He is currently mulling up a more permanent move overseas, telling Property Observer at the end October of his frustration at a decision by the University of Western Sydney to cut economics entirely from its curriculum.
“So we'll soon have a university with no economics courses at all, which I think would be a very dubious first in Australia – and maybe the world,” he said.
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Odds of Australian house prices beating inflation in 2013 'not good': Steve Keen

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A tentative recovery in the housing market remains on course with the RBA deciding to cut the cash rate “on balance” due to concerns about the softening job market and to provide support to the non-mining sectors of the economy as the investment peak approaches.
The minutes indicate the inflation outlook provides scope for further rate cuts if needed, with a “small decline in the growth of wages, which was consistent with the softening in the labour market seen over the past year”.
The minutes also suggest an easing bias remains in the minds of RBA board members, with the comment that “forward-looking labour market indicators had generally declined recently, suggesting that employment growth would remain modest in the months ahead”.
A statement about lending rates “now clearly below their medium-term averages” but remaining above the levels reached in 2009 also suggests an easing bias.
As with the November minutes, the December minutes make a number of positive observations about the housing market.
“Forward-looking indicators of residential construction over recent months, including building approvals, continued to point to a modest recovery in that sector over the period ahead,” say the December minutes.
“This was likely to be supported by the pick-up in dwelling prices, sales activity and rental yields over recent months. In addition, loan approvals had moved a little higher since the middle of the year.”
The RBA also notes “tentative signs that dwelling investment was turning up, but the outlook for non-mining investment overall in the year ahead remained subdued”.
The November minutes noted tentative signs of recovery in the property market with the RBA board noting that “new dwelling prices had picked up unexpectedly” and that there had been a “softening in the inflation of rents in the [September] quarter”. The board also said that there were “tentative indications that housing activity may be reaching a turning point”.
“Over recent months, the number of private residential building approvals had increased, as had dwelling prices, and auction clearance rates in Sydney and Melbourne had continued to rise,” said the RBA board.
The December minutes show that softer labour market conditions and concerns about the outlook for non-resource investment where the primary reasons for the December rate cut.
“At this meeting, the information on labour costs and softening labour market conditions suggested that the inflation outlook still afforded the board some scope to provide additional support to demand.
“Further confirmation that the peak in resource sector investment was near, and that the short-term outlook for non-resource investment remained subdued, indicated that there was a case for the board to provide that support. The Board considered whether to respond to this case in the near term or wait for further information. On balance, members saw merit in reducing the cash rate at this meeting,” say the December minutes.
 
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RBA sticks with theme of tentative residential recovery with mining and job worries spurring December rate cut

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Listed entities Yellow Brick Road and RUN Property have formed a reciprocal alliance to offer financial products and property services to each other’s clients.
Yellow Brick, founded by Mark Bouris and which last month secured a home loan funding arrangement with <a href="/news">Macquarie Bank</a>, will benefit from having its financial products and services offered to over 40,000 RUN clients through dedicated referral servicing hubs across the Eastern seaboard.
In turn Yellow Brick Road will offer RUN’s property management service across its network of branches and licensees.
RUN provides property management and real estate sales services across Melbourne, Sydney and Brisbane.
The referral program has been trialing in Brisbane and Sydney and will be rolled out across the eastern states in the first quarter of 2013.
RUN CEO Rob Farmer says the alliance with Yellow Brick Road will build on its strategy of being an “all-encompassing financial management solution for investors”.
"In Yellow Brick Road, we have found a partner with a nationally recognised and trusted brand, strong systems and processes and motivated local licensees who like RUN share a passion for their client’s futures. We see this as a strong, strategic alliance and one that will build real value for our investors,” he adds.
Yellow Brick Road executive chairman Mark Bouris says property investors need a strategic plan that will see them through the duration of their investment, “an end-to-end solution that starts at the pre-approval process and goes right through the management of the property once it is tenanted”.
“The partnership between Yellow Brick Road and RUN will enable us to put investors in the best possible loan for their situation, find the right insurances to protect them and their investment, and make sure that their plan achieves the best possible return,” he says.
RUN Property is currently in the process of being acquired by property management group Rental Express, subject to a number of conditions being fulfilled.
Yellow Brick Road was formed by Bouris in 2007 and has around 140 branches nationally offering mortgages, financial planning, family trusts, super, tax &amp; accounting and term deposits through franchised stores.
 
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Yellow Brick Road and RUN Property form property and financial services referral alliance

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House prices in Kalgoorlie/Boulder in the Goldfields-Esperance region of Western Australia have risen 10% over the year to September, making it the top-performing market in the state, according to ANZ.
As the graph below shows, regional markets in WA have been both the best performers and the worst performers over the 12-month period, with the largest price decline of 8% recorded in <a href="/news">Pallinup </a>in the Great Southern region.
Click to enlarge
<a title="Click to enlarge" href="/images/stories/2012/12/anzdec17.gif" rel="shadowbox"><img src="/images/stories/2012/12/anzdec17thumb.gif"></a>
In July Property Observer reported that <a href="https://www.propertyobserver.com.au/hotspots/broken-hill-and-kalgoorlie-no-longer-as-risky-for-property-investors-but-some-mining-towns-unsustainable-westpac/2012071955639">Kalgoorlie/Boulder</a> had been removed off a Westpac list of mainly mining towns deemed as risky single-industry mining towns, where the bank is reluctant to provide investor loans.
Real Estate Institute of WA president David Airey said that in contrast to “unsustainable” house prices and rents in mining towns like <a target="_blank" href="/news">Karratha</a>, <a target="_blank" href="/news">Port Hedland</a>, <a target="_blank" href="/news">South Hedland</a> and <a target="_blank" href="/news">Newman </a>“the steady growth and more affordable market of Kalgoorlie-Boulder perhaps offers greater confidence to lenders”.
Recent sales in Kalgoorlie include this four-bedroom fully renovated house (below) in Lamington, built in 1925, which sold for $358,000 in October having been listed in June for $399,000. The property sold through Andrew Zafer from Fyson &amp; Associates, having last sold for $290,000 in July 2010.
<img src="/images/stories/2012/12/wardst.jpg" width="470">
A more affordable investment option was this four-bedroom plain-looking bungalow (below) in South Boulder, dating back to 1950. It sold for $161,000 through Nicola Unkovich, also from Fyson &amp; Associates having last sold for $73,000 in 2005. It has been appraised as promising weekly rental returns of around $300 per week, which would equate to an indicative yield of over 9%.
<img src="/images/stories/2012/12/hopkinsst.jpg" width="470">
Notable on the list of top performing regions is Geraldton, <a href="https://www.propertyobserver.com.au/hotspots/investors-should-look-at-geraldton-as-future-gladstone-style-hotspot-terry-ryder/2012121158400?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news">picked by Terry Ryder</a> as future potential Gladstone-like hotspot, where house prices increased 4% over the year to September.
For more on Terry Ryder's hotspots selections for 2013 and the three other regional locations that could be the next Gladstone, watch the full free webinar - <a href="/news">Regions versus capital cities - where to invest in 2013?</a> 
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Kalgoorlie/Boulder leads WA house price growth in year to September: ANZ

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The receivers of failed non-bank lender Provident Capital have terminated two high-interest mortgage funds after failing to find suitable new managers.
The two funds are the Provident Capital Monthly Income Fund and the Provident Capital High Yield Fund.
Investors in these two funds will receive initial distributions of between 30 cents and 50 cents for every dollar invested as the receivers seek to sell the properties financed with high-interest loans.
PPB Advisory receivers Marcus Ayres, Anthony Sims and Philip Carter had sought tenders to manage the two funds but in both cases the process did not result in a “suitable change of responsible entity proposal being identified”.
Investors in the high yield fund were due to be paid an interim distribution of 50 cents per unit by December 13 while investors in the monthly income fund were due to be paid a distribution of 30 cents for each $1 unit held.
As of November 30, the high-yield fund had cash of $409,859 which will be utilised to pay the first wind-up distribution of approximately $358,000 to unitholders while the monthly income fund had cash of $9,328,724, which, together with upcoming loan discharges of $1,032,646, will be utilised to pay the first wind-up distribution of approximately $9,460,000 to unitholders.
The monthly income fund has a total of 57 loans worth a total of $22.3 million with 10 loans in a arrears worth $4.4 million.
Provident Capital acted as a lender of last resort on risky development, charging very high interest rates and fees.
The majority of loans in the monthly income fund had annual interest rates of between 10% and 12.5% while a high proportion of borrowers - 15 loans worth $6.6 million - had interest rates in excess of 12.5%.
Of the 57 loans worth a total of $22.3 million, 10 loans are in a arrears worth $4.4 million.
The high-yield fund has three loans – two for residential purposes and for an industrial property – totalling $300,000 all with double-digit interest rates.
The receivers have warned <a href="https://www.propertyobserver.com.au/residential/poor-return-likely-for-provident-capital-debenture-holders-as-%245m-dividend-payments-investigated/2012120558316">Provident Capital debenture holders</a> to expect a maximum of 35¢ back for every dollar they invested in the failed non-bank lender and mortgage fund manager.
Small investors, many of them pensioners and mum-and-dad investors have $96 million invested collectively in the fixed-interest debenture fund.
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Provident Capital receivers terminate two mortgage funds with poor initial returns for investors

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National Australia Bank will lease the former Cartier shop on Exhibition Street in the Melbourne CBD, relocating from a more expensive location at the Paris-end of Collins Street.
The bank will pay $1550 a square metre net for the new premises at 100 Exhibition Street having previously occupied premises at 71 Collins Street.
The new 10-year lease was negotiated by Savills’ director of retail leasing Michael Di Carlo alongside colleague, Jeremy Marmur.
The shop became available after luxury watch retailer Cartier relocated to a bigger and better-located store at 101 Collins Street.
Di Carlo said NAB had required a more modern fit-out which offered superior customer access and exposure.
The lessor was a private investor.
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NAB takes up former Cartier retail space on Exhibition Street at $1,550 per square metre

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Australia’s elder statesman of apartment development, Harry Triguboff, has no plans to retire as he prepares for his 50th year in the property market and says bricks and mortar remains the soundest form of investment.
The Meriton boss, who turns 80 next year, says he has dabbled in the stock market, but says it is very unpredictable.
“I still believe that bricks and mortar are the strongest investment,” he tells the inaugural edition of StrataCall magazine, an offshoot of the <a target="_blank" href="https://www.stratalive.com.au/">stratalive.com.au </a>website.
“Investing in property is simpler, safer and far more straightforward and logical."
Triguboff says now is “a perfect time" for first homeowners and investors to purchase property and describes the decision as “really a very easy equation’.
2013 is likely to be a busy year for Harry Tribugoff and Meriton following its <a href="https://www.propertyobserver.com.au/developments/debtless-meriton-halts-sydney-apartment-site-buying-spree-as-it-seeks-to-sell-700-older-apartments-harry-triguboff/2012110157564">acquisition of six sites across Sydney</a> this year at a combined cost in excess of $200 million.
The sites have the capacity for 2,000 apartments worth around $1.3 billion.
Meriton remains debt free, but Triguboff says this is not a good thing, though he sympathises with other developers who have struggled to manage their debts due to the economic downturn.
“Trying to grow too fast and carry huge debt is OK when the banks are not nervous; but once they start pulling in the purse strings, it takes very little for the whole deck of cards to come tumbling down,” he says.
Were Meriton to carry some debt, Triguboff says this would be a good sign that development approvals are going through, land is becoming available and Meriton is in a position to build.
“If you ever hear I am carrying debt, it will be very good news for the property market,” he says.
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Stick to bricks and mortar: Harry Triguboff’s advice to investors as he prepares for a busy 50th year in property game

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ANZ is forecasting the Reserve Bank to cut the cash rate by a further 100 basis points over the course of 2013 to a rate of just 2%.
This would be the lowest the cash rate has been by some margin based on <a href="/news">RBA data going back to 1959</a>. The previous low, based on RBA proxy data (official cash rate settings began in August 1990) was 2.89% in January 1960.
Last week <a target="_blank" href="https://www.propertyobserver.com.au/residential/residential-property-prices-to-rise-5-in-2013-but-shares-a-better-bet-than-property-shane-oliver/2012121258437">AMP Capital chief economist Shane Oliver</a> forecast the cash rate to fall 2.5% in the first half of 2013, but said it could fall below 2% if there is slower than expected recovery in the non-mining sectors of the economy such as housing and retailing.
"Due to the further sharp weakening in mining business conditions in recent months, the tepid improvement in the non-mining sector, the deterioration in job advertising trends and the strong Australian dollar, we now expect a further 1 percentage point cut in the cash rate over the course of 2013," says ANZ as part of Australian Monthly Chartbook released today.
"This will help limit the prospective rise in the unemployment rate that job advertising is signalling. If realised, such rate moves will provide significant further support to the non-mining sectors, including the housing market."
In the latest chartbook, ANZ says the key issue for markets and policy makers is whether the weakest sectors of the economy (e.g. retail,housing, manufacturing and non-residential investment) strengthen sufficiently to offset the anticipated slowing in mining investment.
"The RBA’s two monetary easings in recent months, suggests the central bank wants some further insurance on this front. The related policy question is what further should (and can) be done if non-mining activity does not strengthen sufficiently. Backing away from the delivery of a budget surplus would be a start, while the RBA could consider moves to offset some of the negative effects of the strong flow of capital into Australia, thereby taking some pressure off the high Australian dollar," says ANZ.
The bank also notes that the RBA recently downgraded its mining investment forecast for 2012-13 to a little above 8% of GDP from around 9% of GDP.
"While this downgrade was substantial, the latest capex data suggest this forecast is now a ‘best case’ scenario with the 'low' CAPEX estimate around half a percentage point of GDP lower.
"This creates therisk that mining investment may now peak at an even lower level than previously forecast by the RBA,meaning that non-mining activity needs to pick up more sharply than before to maintain reasonable growth."
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Cash rate to fall 100 basis points to 2% in 2013: ANZ

<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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