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A two-tier unit and townhouse market is set to emerge in the NSW Riverina town of Wagga Wagga, with a number of new developments under construction aimed at the upwardly mobile and retiree end of the market, as the region benefits from economic growth and resource-related activity.
Located 450 kilometres from both Sydney and Melbourne, <a target="_blank" href="/news">Wagga Wagga </a>is NSW’s largest inland city, with a population of 63,500 people.
A recent Sydney Morning Herald report notes the development of a strong restaurant culture in Wagga Wagga, the launch of the National Art Glass Gallery and the city becoming a conferences hosting hub, with accommodation offerings such as Carlyle Suites featuring 21 upmarket suites and apartments.
In his column on Property Observer today, <a href="https://www.propertyobserver.com.au/new-south-wales/regional-property-markets-outperformed-capital-cities-in-2012-terry-ryder/2012121258440" target="_blank">Terry Ryder </a>names Wagga Wagga alongside <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>and <a target="_blank" href="/news">Albury </a>as regional locations in NSW that he expects to outperform capital city markets.
"NSW is blessed with many strong regional centres that are a lot more affordable than Sydney and have provided much better capital growth over recent years," says Ryder.
Two of the biggest developments under construction in Wagga Wagga are the Mill Residence and The Grange Village, which will add 282 units and townhouses to the Wagga market by 2014- 2015.
<img src="/images/stories/2012/12/waggamill2.jpg">
The Mill Residence is being built on the historic Murrumbidgee Flour Mill site (pictured above), with the first stage consisting of 52 apartments ranging from modern two-bedroom apartments through to luxury penthouse apartments.
Two-bedroom units in The Mill Residences, being developed by Interlink Wagga Central, are priced from $360,000, with a three bedroom selling from $470,000.
“The higher prices asked by the developer of this project are a show of confidence in the Wagga market. Sales levels in this unique development will determine the strength of demand for luxury strata-titled product in this regional market," says PRDnationwide NSW analyst Oded Reuveni-Etzioni.
The Grange Village (pictured below) is being developed by Nash Bros Constructions and set within 22 hectares of landscaped gardens and is aimed at over-55 retirees featuring two- and three-bedroom villas.
<img src="/images/stories/2012/12/grangewagga.jpg">


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Another retiree community, Estella's Settlers Village, is expected to expand with new townhouse to be built with serviced apartments selling from $139,000 and self-contained villas from $259,000.
Both retiree developments come as the healthcare and retirement sector expands in the region, led by the Wagga Wagga Base Hospital redevelopment and an increase in the number of retirement units across the city.
The new developments are set to create a dichotomy between high- and low-end products, says Reuveni-Etzioni, with older villas remaining an affordable option to first-home buyers, investors and retirees.
In the past six months to September 2012, 45% of medium-density dwellings have sold for less than $200,000, while 47% of villas and units have sold in the $200,000 to $300,000 price range.
Sales in the $300,000-plus bracket averaged 12% of sales.
Reuveni-Etzioni says there is evidence of the region's economic growth across all major property sectors.
"The expansion of the [Bomen] Business Park is underpinned by a new oil refinery and an integrated oil-seed processing plant, while on the retail front a new Masters Warehouse has entered construction phase," he says.
“This stable and diversified economy provides employment for locals and attracts new residents from other parts of the state.”
In RP Data’s Rent vs Buy report, three Wagga Wagga locations are included where buying could be cheaper than renting.
These include <a href="/news">Lake Albert</a>, where the median unit rent is $275 per week and the median unit value is $196,000, <a href="/news">Ashmont </a>(median rent of $164, median value of $146,000) and <a href="/news">Tolland</a> (median rent of $162, median value of $137,000).
About 250 properties were flooded when the Murrumbidgee River burst its banks in early March this year.
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Luxury unit and retiree communities emerging in Wagga Wagga as local economic grows

AMP Capital chief economist Shane Oliver predicts property prices will rise by between 4% and 5% in 2013&nbsp;spurred on by lower mortgage rates, but expects only modest returns for property investors compared with other asset classes.

Oliver says property investors can expect returns of around 6% from their investment properties over 2013, compared with returns of 2% in 2012 and a loss of 4% in 2011, but well below expected returns for both listed property (12%) and unlisted property trusts (9%).

Oliver expects the cash rate to fall what would be a record low of 2.5% next year as a result of initially subdued economic growth as “mining slows and mining slows and non-mining is slow to pick up”, with unemployment set to rise to 6%.

“Against this backdrop the RBA is likely to cut rates further to 2.5% in order to push bank lending rates down closer to past cyclical lows. However, as the impact of rate cuts starts to feed through with normal lags, growth should start to improve by year end.

“Overall we see growth around 2.5%, but this is masking a second half upswing; inflation remaining benign; and the cash rate falling to around 2.5% in the first half."

He says the main risk to the Australian economy is that the non-mining sectors –&nbsp;housing, retailing, tourism, etc&nbsp;–&nbsp;take longer than expected to pick up pace, leading to a sharper slowdown in growth beyond the 2.5% we are expecting.

“This could occur, for example, if rising unemployment triggers a desire on the part of households to more rapidly reduce their debt levels. This could see the RBA cut the cash rate to 2% or below,” he says.

But Oliver says he remains cautiously optimistic about 2013, with historical recession patterns suggesting a continuation of the global recovery for the next three years.

His outlook on the property market also appears more bullish when compared with comments he made in July, when he said Australian property prices were still overvalued by around 10% to 15%, though down from earlier AMP estimates of a 30% overvaluation.

Click to enlarge

<img alt="" data-entity-type="" data-entity-uuid="" src="/images/stories/2012/12/ampdec13thumb.gif" />

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For investors, the strongest growth is expected to come from the share market, with gains of 15% from global, Asian and emerging market shares.

“Shares are likely to provide another solid year of returns. Shares are very cheap against bonds as bond yields have fallen further and should benefit from ultra-easy monetary conditions globally and the anticipation of stronger profit growth in 2013-14," says Oliver.

“What’s more, while sentiment towards shares is not as bearish as it was in late 2011 it is still very cautious at a time when share weightings have collapsed. This suggests there is plenty of money to come into shares once confidence starts to pick up."

Investors looking for strong returns from the property sector with a lower cash outlay should consider invested in listed property trusts –&nbsp;REITs, either in Australia or globally, with Oliver forecasting returns of 12% for this sector.

“Property securities are likely to continue to benefit from investors seeking yield, however returns are likely to slow after the 20 to 30% returns of 2012."

Unlisted commercial property and infrastructure are likely to benefit from relatively attractive returns and strong investor demand given their relatively attractive yields, e.g. around 7% for commercial property, he says.

Oliver advocates investors having a balanced portfolio that includes both shares and property investments and says that historically returns have been similar for both asset classes.

At the bottom end of the risk-spectrum, Oliver says cash and hence term deposits are likely to become even less attractive as cash rates slide to 2.5%, further pulling down term deposit rates well below 4%.

&nbsp;Bonds are also likely to offer little upside either for investors.

“Historically low starting point bond yields suggest low returns from sovereign bonds, unless global growth takes a renewed leg down. Australian bonds are a bit more attractive than global bonds given higher yields.

“Corporate debt is a better bet for those after income,” he says.

To learn more about where property should sit within your wealth-creation portfolio, <a href="/news" target="_blank">watch our free webinar.</a>

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Residential property prices to rise 5% in 2013 but shares a better bet than property: Shane Oliver

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China’s sovereign wealth fund CIC has reduced its stake in industrial property developer and manager Goodman Australia by 6.9%.
Goodman Australia is part of Goodman Group, an international integrated property group that owns, develops and manages logistics and business space across continental Europe, the United Kingdom and the Asia-Pacific region.
CIC has sold $519.2 million worth of shares (116.7 million shares at $4.45 a share) to leave it with a 9.9% holding in Goodman Australia.
The shares were purchased by local and foreign institutions at 3% discount to the last trading price, reported the Australian Financial Review.
The downsizing of CIC's stake follows a day after the Goodman Australia Industrial Fund announced an equity raising of $624 million and an extension of the fund term by four years to 2019.
CIC benefited from a 66% surge in the Goodman share price over 2012, with the listed property trust outperforming Australia’s biggest A-REIT, Westfield, by a significant margin.
The money is being returned to China rather than being invested in Goodman’s unlisted funds as had been expected.
CIC is expected to retain its remaining stake for at least another 12 months due to their being a tax advantage.
CIC is expected to hold onto its remaining stake for at least another year as there is a tax advantage to doing so. Contrary to expectations, it is thought to be repatriating the cash back to Beijing rather than reinvesting the money in some of Goodman’s unlisted funds.
CIC bought a 17.8% stake in Goodman in the wake of the GFC, which rescued the group from the risk of collapse.
Goodman's current portfolio consists of 191 properties located in Sydney, Melbourne, Brisbane, Adelaide, Canberra and Perth.
Blue-chip tenants include Toll, Linfox, DHL, Coles, Coca-Cola, TNT and Brambles.
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Chinese sovereign fund cashes in on share price surge to reduce holding in Goodman Australia

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Consumer sentiment fell 4.1% in December in the week the Reserve Bank cut the cash rate to an emergency level setting of 3%, according to the latest Westpac Melbourne Institute Index of Consumer Sentiment.
This nearly reverses the 5.2% increase in the index in November with the index now 3.2% below its November 2011 level meaning there has been no overall improvement in consumer sentiment despite the cash rate falling 175 basis points over the past 13 months.
It follows the release of the NAB business survey yesterday, which found that business conditions were unchanged in November, but remain well below their long term average and at their lowest level since May 2009.
The only Westpac respondents to react positively to the rate cut were  - not surprisingly - mortgage holders, where sentiment rose 4.4%.
The survey of 1,200 Australians was conducted from December 3 to December 9 December, with the RBA cutting the cash rate on December 4 and all the major banks and their subsidiaries (apart from ANZ) announcing they would pass on 20 basis points within roughly 24 hours of the decision.
Overall, the index fell from 104.3 in November to 100.0 in December.
The December result indicates a drop in confidence about the future with a 4.3% slump in confidence about economic conditions over the next 12 months and an 8.9% slump in confidence about economic conditions over the next five years.
In the home ownership categories, those that own their homes outrights were the most pessimistic with a 10.9% slump in this sub-index while renter sentiment fell by 9.1%.
Westpac chief economist Bill Evans called the December findings of the survey "a very surprising result”.
“When we saw the 5.2% increase in the Index in November, which came despite the Reserve Bank surprising by holding rates steady, it appeared that sentiment was finally starting to respond to the accumulated series of rate cuts since November last year.
“With that in mind it was therefore reasonable to expect that the Index would respond quite positively to the rate cut the Reserve Bank delivered last week.
“Instead the Index fell back to near its October level and is now 3.2% below its November 2011 level," he said.
Evans attributed the slump in confidence to consumers being influenced by reports in the media about economic conditions.
“In this survey we also receive a measure of the major news categories which influenced respondents and how each category was assessed.
“The news items which had the largest impact were around economic conditions. An impressive 60% of respondents recalled news items on the economy.
“Next most prominent were interest rates (28.9% of respondents); budget and taxation (20.7%); international economic conditions (20.6%); inflation (13.9%); and employment (11.9%),” he says.
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Rate cuts keep mortgage holders upbeat but overall consumer sentiment slumps in December: Westpac index

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A striking three-level multi-purpose building featuring a rectangular prism rising above spectator seating has been unveiled as the new headquarters for Football NSW (FNSW) in Glenwood, western Sydney.
<img src="/images/stories/2012/12/football2.jpg">
The building, which is subject to development approval from Blacktown Council, will be built at NSW Football’s current home base, the 11-hectare Valentine Sports Park (VSP), ahead of Australia hosting the Asian Cup in 2015.
It has been designed by architectural firm HBO+EMTB, whose other projects include the refurbishment of the Westend precinct of Crown Casino Melbourne and the design of the new multi-storey headquarters for the National Rugby League (NRL) at Moore Park in Sydney.
The proposed building includes integrated spectator and playing facilities that could be used as by national teams as a training base or base camp for teams for the Asian Cup in 2015.
The tournament will be hosted by Australia from January 8 to 31 in 2015.
In addition to the new building, the project includes the upgrade of five playing surfaces, with two fields converted to international standard synthetic surfaces.
The new building is the centrepiece of the project, with the ground level comprising player and officials change rooms, the concourse level made up of spectator facilities and a learning centre and the upper level offering 1,100 square metres of administrative and related space.
Around half of this upper level space will be devoted to accommodation for FNSW’s staff, and the balance for training and tribunal uses associated with the running of the sport from junior to elite level, according to FNSW chief executive Eddie Moore
HBO+EMTB managing director Kevin Fitzgerald says the firm worked closely with FNSW to create a highly functional yet memorable structure.
“A striking rectangular prism supported by broad angular columns floats above the raked stands.
“The structure is anchored by a bold off-form triple height concrete cube which also forms the entrance to the facility
“It’s an attractive, highly efficient building that will serve FNSW for many decades to come,” he says.
An existing gymnasium building will be extended to create an additional 365 square metres and will include an international standard Futsal stadium (indoor football) with tiered seating for 400 spectators.
Both the NSW state government and the federal government have contributed funds for the project.
Valentine Sports Park has been operational since the late 1960s.
Earlier this year London based industry publication Building Design rated HBO+EMTB the world’s 38th largest architectural practice in the annual BD World Architecture Top 100 Survey.
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Design unveiled for Football NSW headquarters in western Sydney ahead of Asian Cup in 2015

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Small investors returned to the Sydney property market in "droves" in 2012, with their focus being the previously unfashionable but fast-expanding outer-western suburbs, according to Herron Todd White.
In its 2012 year-in-review wrap, valuers at Herron Todd White say their predictions about the north-west Sydney market made in February were “mostly on the money.
“The small investor returned to the market in droves in 2012, especially in the west. This helped prop up the 'old' first-home buyer’s market.
“There was a continued 'granny flat' trend in the Penrith and Blacktown council areas. Investors are increasingly looking for higher returns and the dual income stream offered by purchasing a basic three-bedroom dwelling and building a granny flat to the rear has proved most popular," says HTW in its December wrap.
Recent sales of houses with granny flats in the outer west include <a href="https://www.realestate.com.au/property-house-nsw-cranebrook-108968621" target="_blank">this five-bedroom house with a self-contained brick granny flat</a> plus 1 ½-car garage on Farmview Drive in Cranebrook near Penrith, which sold for $455,000 through Ali Khanchedar of Southlands Estate Agents Penrith.
 
<a href="https://www.realestate.com.au/property-house-nsw-cranebrook-108968621" target="_blank">
<img src="/images/stories/2012/12/farmview.jpg">
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The house last sold for just $69,000 in 1987.
Khanchedar estimates it could earn weekly rent of $700 equating to a healthy yield of 8%.
In October, Mina Khanchedar Julie Stinson also from Southlands Estate Agents Penrith, sold <a href="https://www.realestate.com.au/property-house-nsw-jamisontown-111242887" target="_blank">this four-bedroom house</a> for $393,000 on Henderson Crescent, Jamisontown, noting that it has “plumbing for potential granny flat as well as a carport”.
<a href="https://www.realestate.com.au/property-house-nsw-cranebrook-108968621" target="_blank"> </a>
<img width="470" src="/images/stories/2012/12/jamion.jpg">
The 1980s-built house last sold for $265,000 in 2001.
 
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In its July market wrap looking at <a target="_blank" href="https://www.propertyobserver.com.au/hotspots/from-western-sydney-granny-flats-to-east-brisbane-workers-cottages-15-eclectic-investment-opportunities-under-%24500000-htw/2012071855637">sub-$500,000 investment options</a>, Herron Todd White said buying a a house with a granny flat in the western suburbs was the “best investment from a rental return basis in the western suburbs”.
HTW suggested investors consider purchasing a circa 1960s to 1970s dwelling on 650- to 700-square-metre allotments and erect a granny flat on the rear of the allotment, thus creating two separate tenancies.
Typically, HTW says investors are paying somewhere between $280,000 to $330,000 for the existing dwelling and between $60,000 to $80,000 for the granny flat, plus spending an extra $25,000 on sprucing up the original dwelling.
According to HTW the dual tenancies can generate monthly rent of $600 ($350 for the main house and $250 for the granny flat), with vacancy rates at practically 0%. 
Property developer and regular Property Observer writer Jo Chivers suggested back in February that investors consider adding a granny flat to their investment property and then rent it out separately, “resulting in an increased yield and good depreciation benefits”.
Chivers points out that such endeavours are supported by the NSW government’s Affordable Rental Housing State Environmental Planning Policy (SEPP), which can fast-track the approval of granny flats in 10 days provided it meets <a target="_blank" href="https://www.planning.nsw.gov.au/plansforaction/pdf/Affordable%20Housing_Fact_Granny%20Flats.pdf">a number of regulations</a>.
Apart from a rise in investor buying properties with granny flats in the outer west, HTW notes an increase in the uptake of house-and-land packages by first-home buyers in this market following the new $15,000 state government hand out for those building or buying a new home, which began on October 1.
“Many first home buyers are paying a bit extra for a base level house-and-land package,” says HTW.
The improvement in the outer west was not matched in other parts of Sydney, with HTW describing the rest of the market as “volatile”.
“Despite strong sales in the first half of 2011, properties on the northern beaches and north shore have underperformed over 2012.
“This is especially true above the $1.5 million price point, where we have seen evidence of re-sales that have declined in value from the peak of the market in 2007. This trend was expected to continue as 2012 began, however many predicted the spring season may have brought people back into the market.
“This has not been the case however, with deep-seated uncertainty when it comes to purchasing high-end property.
“This sentiment appears to be across the board with the eastern suburbs, southern suburbs and inner-west all experiencing similar market conditions throughout 2012.
“It is fairly safe to say that the $750,000 to $1.5 million range has been steady, with no significant capital growth experienced. Properties with a price point below $750,000 have generally had minor capital growth overall, but far less than that experienced in previous years,” says HTW.
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Investors returning ‘in droves’ to outer-western Sydney, with granny flat appeal: HTW

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The struggling far north Queensland Cairns office market is expected to improve in 2013, with a brighter economic outlook for the state economy.
The tourism-dependent Cairns economy and property market took a battering in the wake of the GFC, with employment figures falling, and has not benefited from mining investment in other regional Queensland areas.
Cairns is the gateway to the Great Barrier Reef and a short drive from places like the Daintree Rainforest.
As a result the local office market, which serviced local industries in Cairns, slumped as well – the market covers offices in the town centre, a smaller selection of office buildings in Cairns North, which is that part of the town north of Upward Street, following Sheridan Street towards the airport.
According to property valuers Propell, the Cairns market did not decline further as a result of the two-tier economy in Queensland is expected to benefit from an increase in Asian tourist visits with Jetstar added further Cairns flights from September, while China Eastern commenced 3 flights a week from Shanghai to Cairns since the end of October.
A Propell survey of 100 office buildings on the market found that there is a “considerable surplus of space on the market, and in most cases rents are negotiable for a prospective tenant”.
“There are no vacancy figures available for Cairns. However currently there is some 33,000 square metres of commercial space advertised for lease, which is down from a figure of 42,000 square metres surveyed in July 2012,” says Propell.
A typical rent for a Cairns office is around $200 per square metre gross, inclusive of outgoings.
Incentives are in the region of around 30% plus.
"The outlook for office values in the Cairns region is improving, and lower interest rates and improved economic conditions will make office space here more attractive, with values likely to increase in the coming year,” according to the report prepared by Propell analysts Linda Phillips and James Spencer.
According to Propell, the office market has been steady, though there have been just two commercial office sales, compared with six in 2011 with a total sales value of $6 million.
Propell expects the number of sales to increase as the year draws to a close.
“In terms of numbers, most demand is for smaller properties of less than $1 million, easily affordable for purchase by small business, and this accounts for some seven sales a year, rising to 14 in years of high demand.
“Smaller offices are most popular, in the price bracket of $250,000 to $1 million where owner occupiers can purchase their own property, or they can be purchased as a small investment.
“In this bracket, sales average around four a year, with a median price that has been oscillating. With few recent sales it is estimated that the median price is around $400,000 and steady.
 
 
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Cairns office market still quiet but outlook brighter for 2013: Propell

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There will be no swift recovery in the outer-Melbourne residential new housing market, with a confluence of factors contributing to the unprecedented high rate of lots being returned to residential developers, according to Charter Keck Cramer.
The most recent update of the National Land Survey – a project undertaken by consultants Charter Keck Cramer (CKC) in conjunction with Research4, which tracks the performance of capital city residential land markets – <a href="https://www.propertyobserver.com.au/land/one-in-three-melbourne-residential-lots-being-returned-to-developers-by-building-firms-report/2012112958179">found that 30% of Melbourne greenfield</a> land had been returned by building companies to developers in the September quarter.
This compared with an already high average cancellation rate of 23% over the past 12 months and a cancellation rate of only 4% during the property boom from June 2009 to December 2010.
CKC director Robert Papaleo tells Property Observer there may have been a degree of artificiality in the September quarter cancellation rate, but there is likely to be a “long, slow recovery” for the Melbourne land market, with the current downturn exaggerated by the swift nature of the upswing over the 2009-10 period as prices rose by an “unsustainable” 15% to 20% ever quarter.
Papaleo says the jump in cancellations recorded in the September quarter to one in three may be partly due to the fact that listed developers – the main players in the Melbourne land market – have used incentives and other selling strategies to lift their contracts on hand and present healthier-looking numbers in their financial results.
Most developers reported annual financial results to the end of June.
Papaleo says some developers relaxed their selling terms to secure sales, including requiring in some cases that buyers pay only a $500 holding deposit, rather than the traditional 10% deposit.
“These are the lots that are being returned – they are also the smallest lots and the lowest price products,” says Papaleo.
He says such selling practices have been common in the south east Queensland and Brisbane market for at least two years, but are now being used to some degree in Melbourne.


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In addition, the $13,000 state government handout for those buying or building a new home ended on June 30, which also may have contributed to a drop in demand.
The December quarter update to the land survey – out in early 2013 – will provide further evidence if the spike in the cancellation rate was exacerbated by these factors or is a longer-term trend.
What does remain though is a current a peak residential lot “overhang” of around 5,000 lots – land held mainly by listed developers – with is likely put further pressure on pricing.
“We are in for a lot of pain, and there is no clear sign of a turnaround either," says Papaleo.
Papaleo says the current incentives being offered by residential developers – <a href="https://www.propertyobserver.com.au/land/from-%2410000-to-%2450000-residential-developers-tempt-buyers-with-incentives/2012112358053" target="_blank">ranging from $10,000 to $50,000</a> – are being dissolved into the pricing, causing a “re-benchmarking to remove the distortion”.
“This will result in the need for a reduction in the price.” he says.
The market has also not been helped by a rise in supply following plans announced in June to extend Melbourne’s urban growth boundary outwards over the next 20 years to incorporate six new fringe suburbs and provide new homes for up to 100,000 people.
There are currently 24 precinct structure plans (PSPs) in various stages of planning, according to Melbourne’s Growth Area Authority, with each PSP catering for master-planned residential communities of between 10,000 to 30,000 people.
“Supply has been forced up at the worst possible time,” says Papaleo.
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,” he says.
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.
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Long, slow road to recovery for Melbourne residential land market, with prices to fall further: Charter Keck Cramer

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A private Melbourne investor has paid $2.38 million to acquire an Art Deco-inspired former bank building on Oakleigh’s Eaton Mall in south-east Melbourne.
The solid brick building sold under the hammer on December 7 with a large crowd in attendance and exceeded Crabtrees selling agent Mathew Marenko’s expectation of offers in the region of $2 million.
The sale price represents an indicative return of only 3.8% – reflecting the ‘landmark’ status of the building on the trendy eating strip – earlier the year a <a target="_blank" href="https://www.propertyobserver.com.au/retail/lygon-street-premises-of-donatis-fine-meats-slices-records-with-emotion-driven-%24289-million-auction-sale/2012103057521">Lygon butcher shop premises sold for $2.89 million</a> on a yield of just 2.3% and well above pre-auction price expectations.
“This is a building of substance reflected in its original construction for a leading Australian bank and it sits on one of the best and most highly exposed corners in the Oakleigh shopping precinct," says Marenko.
Eaton Mall is open both day and night, with a mix of retailers including cafes and restaurants.
The two-level building  on a 172-square-metre site on the corner of Chester Street and the pedestrianised mall was built about 50 years ago as a banking chamber and branch premises and still bears the logo “CBC”.
It now houses Steve’s Wine Bar on the ground floor and an accounting practice on the first floor, bringing in total annual rental income for the property is $83,500 plus GST and building outgoings.
Steve’s Wine Bar has occupied the ground for the last 17 years and is on a current lease which expires at the end of June 2013 with an option for a further two years.
The restaurant pays an annual rental of $52,000 plus GST plus the building outgoings.
The rental increases are 4% each year with a review to market at the expiry of the current lease in June 2013.
The upper level tenant with its own access from Chester Street is OST Accounting, paying $31,500 per annum on similar terms.
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Private investor buys former Oakleigh bank building for $2.38 million

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For investors looking for strong rental returns in 2013, Perth and Darwin are the markets to be in, if recent performance is anything to go by.
Both cities – beneficiaries of the mining investment influence – recorded double-digit rental growth over the year to September, while rents hardly moved in the other capital cities and went backwards in Hobart and Adelaide, according to the latest Market Facts update from the Real Estate Institute of Australia (REIA).
The top-performing rental market over the year to September has been Perth three-bedroom houses, with rents rising 15.4% annually to a median of $450 per week.
This growth was almost matched by Perth two-bedroom units, where rents increased by 14.9% to $425 per week.
Not far behind was Darwin’s two-bedroom unit market, with rents rising 13.5% to a median of $463 per week, making the Northern Territory capital city the most expensive unit market in Australia – just ahead of Sydney, where two-bedroom units rent for $460 per week.
Darwin also registered near double-digit growth (9.5%) in three-bedroom house rents to a median $597 per week – the most expensive capital city to rent a three-bedroom house, far ahead of second-placed Canberra ($460).
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/12/reiadec12.gif"><img src="/images/stories/2012/12/reiadec12thumb.gif"></a>
Source: REIA
Weekly rents for three bedroom Sydney houses have risen 5% over the past year while Sydney unit rents are up a modest 2.2%.
Melbourne rents hardly moved, while Brisbane registered 2.9% annual gains for both houses and units.
In last week’s Property Observer webinar looking at investor opportunities in 2013, hotspotting.com.au’s Terry Ryder tipped Perth and Darwin to be the standout capital city markets next year having led the recovery in 2012.
Ryder is tipping annual capital growth in excess of 10% in Perth and Darwin in 2013.
He notes that apart from strong house price, Darwin has recorded an “outstanding” 28% rise in building approvals for the year to September (compared with a 9% national decline)
“Every other state and territory has shown a decline in building approvals,” he says.
In addition, Darwin has recorded 17% growth in loans to owner-occupiers (second best nationally) and 22% growth in loans to property investors (the highest growth nationally).
Darwin, Ryder says, is being boosted by its evolution as a liquefied natural gas (LNG) hub with the $34 billion Inpex gas project now under construction as well as being a military hub with a growing influx of US military personnel.
Ryder suggests investors focus on Palmerston City, which is the satellite city to the south of Darwin and the most affordable market relative to the very unaffordable main Darwin market.
On Perth, Ryder says the market is finally showing signs of strong growth having last peaked back in 2007 and has been going backwards since then.
“There has been huge rental growth, but not much price growth, which is just starting to come through now.
“2013 is the year of price growth for Perth,” he says, with the city underpinned by having the best economic indicators in Australia.
Ryder hotspot picks in Perth are the Midland precinct to the north, Murdoch to the south and Rockingham – a very affordable coastal enclave to the south.
For more on Terry Ryder’s investment outlook for 2013 and where to consider investing view the full webinar: <a href="/news">Regions versus capital cities - where to invest in 2013?</a>
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Perth and Darwin register double-digit annual rental growth defying flat market: REIA 

<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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