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Apart from “middle-ring” suburbs well-connected to the CBD via better transport and infrastructure links, the Brisbane residential market underperformed and remained soft over 2012.
At the start of the year, valuers from Herron Todd White had tipped the Brisbane market to firm up over 2012.
However, while things “may have hardened up some towards the end of this year on the back of interest rate cuts, most of the year remained 'Tontine soft',” says HTW in its December year-in-review wrap.
HTW was “decidedly bullish” at the start of the year but said “a 10% drop across a broad range of the market is far from bullish” with investors instead keeping their heads down.
The outlook is somewhat better for 2013, with a few more investors “fronted up in November in response to the stronger rents and lower interest rates”.
However the best HTW can say about 2013 is that “maybe next year will be more agreeable”.
The only market that lived up to expectations were “mid-ring, well serviced, transport accessible localities”.
“It may seem like a lay-down misère, but frankly we think this patch has continued to be a good investment.
“Those hubs that are now much closer to the CBD in travel time due to the infrastructure boom are feeling the love.
“Once again these markets didn’t make you rich right away, but they certainly performed better than most,” says HTW.
HTW also notes some improvements in sentiment towards property in flood-affected regions of the city.
“We also made one very brave call for the coming year, and that was flood-affected property. In 2011, you could barely get a nod of recognition from purchasers when listing in a suburb that flooded, and woe betide the property that actually copped some water.
“We thought as the mud started to settle, a few speculative types might pop out of the woodwork.
“To some degree, we were right. Whilst it couldn’t be said that fortunes have been made on investing in the flood affected areas, it is fair to say that the market is becoming more comfortable with the risk."
 
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According to HTW, the findings of the Queensland Floods Commission, which placed some blame on how the flood was managed in terms of releases and outlined some ways the effects might have been mitigated, has convinced some buyers it won’t happen again, “which means demand is a touch stronger and by this year’s end, sales were a more regular event”.
However, outside of the middle-ring and some flood-prone areas where fears reduced, the market remained soft both at the upper end of the market and at the bargain end.
“The prestige bit of the market looked lacklustre at the end of 2011, and our call was more of the same in 2012. Guess what – we were right," says HTW.
The bargain end of the market spectrum was one area HTW thought had “some real upside going into the year”.
“It always seems a given that in a soft market the really cheap stuff just can’t get any cheaper. In reality, though, buyers just continued to stay away, and if you weren’t competitive in your list prices, then you could forget about anyone turning up to the open house.
“Buyers were spoilt for choice with solid returns for not too much outlay on offer.  Unfortunately the jitters prevailed and even this affordable end kept up the drag.”
Overall, HTW said that on balance the Brisbane market “didn’t fire as much as expected and some markets actually took another hit in the past 12 months”.
“In many respects the statistics show we probably weren’t pessimistic enough about 2012 when making our calls on the year ahead back in February."
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Well-connected middle suburbs the bright spot in otherwise soft year for Brisbane residential market: HTW

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Credit Union Australia (CUA) has cut its standard variable rate by 20 basis points with a new rate of 5.85% kicking on December 13.
The new rate is 53 basis points below NAB’s standard variable rate of 6.38% ( from December 10), the lowest of the major banks followed by Commonwealth Bank (6.4% from December 10), Westpac (6.51% from December 17) and ANZ, which will announce its rate decision next Friday, at 6.6%.
This equates to an average discount of 62 basis points to the major banks – saving borrowers more than $100 a month in mortgage repayments for a standard $300,000 home loan taken out over 25 years.
CUA’s general manager for products and marketing Jason Murray says operating a customer-owned model enables the mutual lender to provide lower rates over the long term as they continue to focus entirely on customers rather than shareholders.
“CUA’s customers are already saving and gaining the benefits of our lower rates. The current standard variable home loan (SVHL) rate cut of 20 basis points ensures we remain over 50 basis points cheaper than the average of the SVHL rates offered by the big four banks – a gap we’ve maintained continuously for over two years now,” he says.
CUA’s new rate of 5.85% has a comparison rate of 5.91% and has no ongoing fees, extra payments can be made at any time without penalty and it includes a 100% mortgage offset account.
Another mutual lender, Heritage Bank (formerly Heritage Building Society), has cut its variable home loan interest rates by 20 basis points to 6.14%, effective from December 14. 
Heritage Bank CEO John Minz said Heritage’s standard variable home loan remained extremely competitive, well below the rates offered by the big banks. ”Unlike the big banks, we don’t have to target bigger profits to pay dividends to shareholders, so we can keep our rates lower, As a customer-owned bank, our motivation is to always provide the best possible rates we can,” he says
However, as with other lenders, Minz says Heritage has to take into account the high costs of funding and the need to meet long-term capital and liquidity requirements 
Minz says it is also important to remember that Heritage also had to consider the interests of investors. “Cutting home loan interest rates has a flow-on effect that also reduces the interest payments that investors receive. “We have many customers, such as self-funded retirees, who rely on the interest income they receive from their investments to fund their living costs. “It’s important that we keep in mind the needs of all customers when we make these decisions," he says. 
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CUA offers 62 basis point average discount to major banks with 5.85% standard variable rate

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Home loan comparison websites will face greater scrutiny from corporate watchdog ASIC to ensure they provide accurate information and are not misleading consumers.
This follows growth in the number of comparison websites since GFC, filling a need for consumers to be sure they are getting the best deal on mortgages, credit cards, insurance and other products.
However, ASIC has identified a number of concerns with some comparison websites, including that some only compare a limited number of brands/products from a limited number of providers.
“This may not be clearly disclosed which creates the impression that the extent of comparison is much broader than it actually is,” says ASIC.
ASIC is also concerned at the use of ‘ratings’ and ‘rankings’ for products without a clear explanation of the basis for them and websites that refer to ‘special offers’ and ‘featured products’ without properly explaining the basis of selection of certain products.
“For credit comparison websites that advertise loan products, it is important that comparison rates are disclosed as required under the National Credit Code. Given the nature of comparison sites it is important that consumers are provided with accurate information so they can choose financial products that best suit their needs,” says ASIC.
“ASIC recognises that consumers can benefit from the increasing opportunities to research and compare financial products online. For this to occur, operators of comparison websites must take care to ensure they accurately portray the features and limitations of the products compared. They also need to ensure that any information they provide, including quotes, is reliable, accurate and up-to-date,” says ASIC commissioner Peter Kell. "We will be targeting this area of the market and we will take regulatory action where necessary to ensure that operators of financial product comparison websites comply with the law," he says.
The increased scrutiny of comparison websites was welcomed by Rohan Gamble, managing director of Mozo.com.au.
Gamble told SmartCompany.com.au the aggregator industry is filled with so-called affiliates, who simply create an aggregator product that only compares their products.
“This type of announcement makes sure that we do the best we can. We’ve been waiting for this type of thing, and we take the view that we do this seriously, and that everyone else should as well.”
Comparison websites must comply with their obligations under consumer protection laws.
ASIC recently released a new regulatory guide for advertising financial products (Regulatory Guide 234 Advertising financial products and advice services: Good practice guidance), which includes guidance for comparison websites.
These include early disclosing the basis of awards or ratings, disclosing any links to the providers of products that are being compared, including commissions, referral fees, payments for inclusion in comparisons and/or payments for ‘featured’ products including a warning if not all providers are included in the comparison, clearly disclosing advertisements to prevent consumers being misled about the ranking of the product, and where necessary, including a warning that financial products compared do not compare all features that may be relevant to the consumer.
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ASIC warns mortgage comparison websites on accuracy, disclosure and compliance

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Westpac-owned St George Bank and Bank of Melbourne will pass on 20 basis points to variable mortgage holders from December 17.
The rate cuts mean all three banks will continue to maintain different variable rate settings.
St George Bank it will reduce its standard variable home loan rate by 0.20% to 6.49% per annum while Bank of Melbourne will reduce its standard variable rate to 6.40% per annum.
Yesterday Westpac announced its standard variable rate would reduce to 6.51% on December 17.
In a further move to differentiate the brands in the minds of consumers, Bank of Melbourne is promising to beat any advertised equivalent home loan rate of the big four anks if they take out a new home loan by 21 December.
“On average, Bank of Melbourne has been 15 basis points better than the majors, based on a $300,000 loan over the last 12 months,” said chief executive, Scott Tanner.
This is based on a comparison of a $300,000 loan and average packaged loan rates of Westpac, ANZ, CBA and NAB.
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Three brands, three different rates: St George and Bank of Melbourne to cut by 20 basis points

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Provident Capital receiver PPB Advisory is investigating dividend payments totalling in excess of $5 million paid to a company associated with Provident managing director Michael O'Sullivan dating back to 2008.
In a note to debenture holders, the receivers have commenced investigating "payment of in excess of $5 million in dividends to Provident's shareholder (a company associated with Provident's managing director Michael O'Sullivan) since 2008" as well as Provident's auditing and investor disclosure policies.
This follows preliminary assessments by PPB Advisory finding that a number of assets that Provident took control of as mortgagee in possession may have been substantially overvalued and that this was not disclosed to debenture holders, trustee AET or ASIC.
The receivers have warned Provident Capital debenture holders to expect a maximum of 35¢ back for every dollar they invested in the failed non-bank lender and mortgage fund manager.
Provident Capital receivers and managers Phil Carter, Tony Sims and Marcus Ayres from PPB Advisory say that based on “preliminary analysis of the loan portfolio” an estimated likely return “will be in the region of $0.25 to $0.35 of every dollar invested”.
This prime reason for the “shortfall” in returns to debenture holders relates to Provident’s lending and asset management policies with the receivers noting that many of the loans originated on a “pure asset basis without regard to the borrower’s ability to service the debt or repay it otherwise then from a sale of the security”.
The report is also highly critical of the behaviour of Provident Capital when taking control of an underlying asset as mortgagee in possession.
PPB Advisory says Provident Capital failed to issue legal notices enacting its power of sale as well as comply with its obligations under the Corporations Act as controller.
The latest report also says Provident Capital “appeared to lend on poor or unsuitable security on a number of cases”.
When Provident Capital collapsed in July, it was found that 85% of loans funded by debenture holder investments in fixed interest products were six months or more in arrears with a high proportion being first mortgages for risky residential development projects.
Out of a total of 55 loans in the fixed interest term portfolio, 30 were for properties in NSW worth $51.2 million with 15 in Queensland totalling $38.9 million.
The latest report shows that loans were concentrated with two “key borrowers” who were provided mortgages totalling $40 million with the administrators expecting to recover less than 50% of this amount.
The estimated maxium return of 35¢ on the dollar  is contingent on a number of assumptions, including that there are no new defaults from borrowers in the existing loan portfolio; full recovery of certain loans from existing defaulting borrowers, continued support from Provident staff and “no significant adverse changes to the Australian property market”.
PPB Advisory also added that estimate was difficult to work out with any precision and warned that there are “a large number variables outside of a receiver’s control”
Debenture holders should treat this as an estimate only that could change as more information comes to light, said the receivers, who added that there could be further returns arising from claims against the directors of Provident Capital, professional advisors and third parties.
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Poor return likely for Provident Capital debenture holders as $5 million dividend payments investigated

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The new owners of the Australian and New Zealand RE/MAX master franchises will look to double the size of the network over the next five years, with a particular focus on recruiting new estate agent immigrants familiar with the brand in their home countries.
“Our medium-term goal is to double the number of offices in each country,” RE/MAX Australia and New Zealand master franchise co-owner and managing director Michael Davoren tells Property Observer.
Davoren, Keith Walker, the current RE/MAX Australia franchise director, and Chris Chapman, the current RE/MAX New Zealand regional director, bought out the Australian regional master franchise from its US owner. 
“We have 65 offices in Australia and aim to have 130 in five years. In New Zealand we have 50 offices and our aim is to have 100."
“It’s very achievable," says Davoren.
The trio will look to recruit real estate agents immigrating to Australia from places like South Africa and Europe, where RE/MAX is a very well-known brand name.
“We are working with recruitment organisations, outplacement services in this regard,” Davoren says.
In Australia, Davoren says there are a lot of territories where RE/MAX’s presence is nowhere near where it should be, including big real estate markets like Sydney and Melbourne.
RE/MAX is considered the biggest real estate brand in the world – primarily due to its size in the US and its presence in more than 80 countries, but it punches below its weight in Australia and New Zealand.
The new owners are also investing in promoting the RE/MAX brand to consumers and agents.
“It started that in the last 12 months with significant investment to get the brand out into places we don’t have offices through billboards and bus advertising.
“We will also look to build the brand over next few years through social media and online.”
Davoren says Australia and New Zealand were among the last regions where RE/MAX America actually still owned the master franchise, the others being Western Canada and the Caribbean.
“They decided to clear the decks. They are very good at franchising, but being an operator is a different kettle of fish with a different culture, legal requirements and industrial awards that makes Australia peculiar.”
“The rules made from world’s biggest real estate don’t fit into the country where you are not the biggest."
Davoren, Walker and Chapman negotiated with RE/MAX since February before securing the buy-out.
He says being the owners will increase their focus on being creative in growing the business.
“It’s going to be pretty interesting times.
“We expect fairly good sales levels over next few years. There is a bit of science behind this thinking as in most major centres, there is no major oversupply.
“It’s a bit different in places like Port Douglas or the Gold Coast.”
But overall, he says real estate is now more affordable than it has been in a while, with prices having come back in most areas and with interest rates falling.
Davoren has been with RE/MAX for a year.
Prior to that he had own consultancy for five years providing real estate training, auction and business consultancy services.
He spent 12 years as a director at LJ Hooker and before that was with Raine &amp; Horne.
He is also a past president of the Real Estate Institute of Australia and the Real Estate Institute of Queensland.
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RE/MAX Aussie owners aim to double network with appeal to new estate agent immigrants

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The RBA will continue to maintain a low cash rate setting, according to RBA deputy governor Philip Lowe.
He says Australia now has lower interest rates than it otherwise would have to offset some of the effects of an uncomfortably high exchange rate and in an environment of slower credit growth and greater consumer caution.
But he said it was possible that “normal lending rates will be somewhat lower for a period owing to the combination of global factors and the legacy of the credit boom”.
These remarks where part of a speech delivered in Sydney overnight following the RBA cutting the cash rate to 3% and to its lowest level since the GFC.
Speaking on the topic of “What is normal?” Lowe highlighted how it was now much harder for the RBA to judge what an appropriate economic response was to rate cuts, but re-affirmed that the RBA continues to believe that monetary policy continued to keep inflation in check and have a positive impact on the economy.
“Monetary policy still looks like it is working,” Lowe said.
“There are lags and different parts of the economy respond differently, but lower interest rates are still effective in providing a boost to the overall economy.”
But he also provided numerous examples of how the economy has shifted since the GFC and that a new "normal" had emerged.
He said the Australian propensity to spend every dollar earned between the mid-1980s and into the 2000s (as house prices boomed) was not normal and that “more recently, the saving rate has increased and it is back to the level it was in the mid-1980s”.
<img src="/images/stories/2012/12/rbadec6.gif">
 
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Lowe said the lower cash rate settings were also in response to higher funding costs facing banks, meaning they no longer moved in step with the RBA.
Lowe said that in a new “normal” of lower credit growth and higher funding costs for banks, the cash rate was currently around 150 basis points lower than it otherwise would have been.
“The fact that the bank has offset the effect of higher funding costs on lending rates means that the normal level of the cash rate is lower than it otherwise would have been,” said Lowe.
“A 3% cash rate today is not the same as a 3% cash rate in the past,” he added, implying that this was because headline mortgage rates offered by banks are no longer moving “in near lock step with the cash rate”.
The theme of a new normal was also touched on by AMP Capital Investors economist Shane Oliver, who said that while the RBA has cut the official cash rate back to its post-GFC record low of 3%, “overall policy settings are nowhere near as stimulatory as they were in mid-2009”.
“Bank lending rates are much higher, the Australian dollar is way higher and fiscal policy is being tightened not loosened."
In his latest economic note, Oliver said mining investment was fading rapidly and non-mining growth needed to pick up quickly.
“The trouble is that growth in other areas of the economy is soft. While the Reserve Bank has been cutting interest rates for just over a year the response has been subdued.”
Oliver pointed out that all key indicators – building approvals, credit growth, retail sales – “are currently well below the average level they attained this far into past easing cycles” and that further rate cuts were needed to achieve mortgage rates that will become “stimulatory”.
“Although the RBA has cut the official cash rate to its GFC low, because of bank funding issues bank lending rates are around 0.6-0.8 percentage points above their 2009 lows.
“The standard variable mortgage rate at around 6.42%, assuming banks pass on around 0.2% of the RBA’s latest 0.25% rate cut, is below its long term average of 7.25%.
“But normally rates need to fall well below their long-term average to be confident of stronger growth. And in an environment of household and business caution post GFC the neutral rate has likely fallen, probably to around 6.75% ,which is shown as the “new neutral” level," Oliver said.
"This would suggest that current mortgage rate levels are only just starting to become stimulatory.”
But HSBC chief economist Paul Bloxham disagreed.
"We expect that this could be the last in the easing phase of this cycle given China's economy is bottoming out, local rates are supporting the interest-rate sensitive sectors and inflation may have passed its trough, leaving the RBA will little further room to move," he said.
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Credit boom unlikely to return but lower rates the new normal: Philip Lowe

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The historic Gippsland town of Moe on the western end of the Latrobe Valley was Victoria’s top-performing housing market over the October quarter, according to new figures by Residex.
<a href="/news">Moe </a>house prices increased by 4.66% over the three months to October, rising to a median value of $243,500. Residex calculates the median weekly rent in Moe at $270, suggesting investors can expect rental returns of around 5.7%.
Moe (along with <a href="/news">Morwell </a>and <a href="/news">Traralgon</a>) is one of the major urban centres in the Latrobe Valley, which has a population of around 18,000 people according to the 2011 census.
The majority (80%) of properties are houses, with around one in four (27%) Moe residents renting.
In its September market round-up valuers from Herron Todd White (HTW) picked Moe along with Morwell and <a href="/news">Newborough </a>as offering sub-$300,000 opportunities with 1980s and 1990s brick veneer homes.
HTW said also that 1970s units can be bought for well under $300,000 with gross rental returns of 7% to 9% possible.
Investment properties listed for sale include a <a href="https://www.realestate.com.au/property-house-vic-moe-112013631" target="_blank">four-bedroom weatherboard house</a> priced between $185,000 and $200,000 and marketed by Alan Johnson and Ross Maddaluno of Ross Maddaluno Real Estate Morwell. It is expected to rent for $250 per week, an indicative yield in excess of 6%.
Current listings also include this <a href="https://www.realestate.com.au/property-unit-vic-moe-107244651" target="_blank">modern two-bedroom townhouse</a>, which has an asking price of $195,000 and rents for $240 per week, a gross yield of 6.4%.
The second best performing region in Victoria over the October quarter was the north-western regional city of <a href="/news">Mildura </a>in the Sunraysia region, with house prices up 3.2% to a median of $194,500.
With a median weekly rent of $235, Mildura investors can expect rental returns around 6.3%.
In its September assessment of sub-$300,000 options, HTW says investors should look at brick veneer houses in Mildura built between 1995 and 2006 on reasonably sized allotments in the centre.
"The home won't come with a pool and will have an average fit-out, but will most likely have some established landscaping and not need any immediate upgrading," HTW said.
HTW also suggested buying four-bedroom homes off the plan on the fringes of Mildura, which are popular with out of town investors, “keen to capitalise on the tight rental market and potential to obtain 6% gross rental returns combined with higher depreciation allowances than would be obtained from older dwellings”.
Currently listed for sale in Mildura is this <a href="https://www.realestateview.com.au/Real-Estate/63-hazeldene-street-mildura/Property-Details-buy-residential-4659603" target="_blank">three-bedroom weatherboard</a> house built in 1940 priced between $115,000 and $145,000 marketed by Barry Plant Real Estate Mildura as an investment opportunity with rental potential of $220 per week. This would represent a yield of between 8% and 10% at this price range.
According to RP Data records, it rented for $170 per week in 2008.
The Victorian regional centres of <a href="/news">Ballarat </a>and <a href="/news">Bendigo </a>registered modest house price growth over the quarter of 1.72% ($277,500) and 1.09% ($266,500) respectively, while Geelong house prices fell 2.28% to a median of $380,000.
House prices in <a href="/news">Warrnambool</a>, often picked on hotspot lists, fell by 2.5% over the quarter to $269,000.
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Moe beats Mildura as Victoria's top-performing regional city: Residex October quarter

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Currently around 20% of borrowers choose a fixed-rate home loan, according to Mortgage Choice, with a three-year fixed rate the most popular fixed-rate product.
However, as the chart below prepared by RateCity.com.au shows, timing is key when fixing.
Borrowers who fixed around September 2008, when the average three-year fixed rate was 8.75% and just before the RBA began drastically cutting the cash rate, would have had to endure three years of substantially higher mortgage repayment than those who chose a variable-rate mortgage.
Even those who took out just a one-year fixed rate would have felt mortgage pain.
The standard variable rate was 9.61% in September 2008 but dropped to  5.75% by May 2009 and was well below 8% over the three-year period.
<img alt="ratecity_chart" src="/images/stories/2012/12/ratecity_chart.gif" width="470" height="270">
The chart also shows how the gap between fixed and variable rates has widened since the federal government introduced its ban on exit fees on variable rate mortgages.
“The major banks’ three-year fixed home loans have followed generally followed their standard variable rates quite closely over the past five years," says Michelle Hutchison, spokesperson at financial comparison website RateCity.com.au.
"But since 2011, we’ve seen three-year fixed rates start to fall lower than the banks’ standard variable rates. It’s unusual to see fixed rates so much lower than standard variable rates, but several factors have resulted in lenders making their fixed rates more attractive.
"One of the reasons was banking reforms banned exit fees on variable home loans from July 1, 2011, making fixed loans a more secure investment for lenders.”
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Winners and losers on the interest rate rollercoaster: Fixed and variable rates since 2007

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Westpac  will pass on 20 basis points of the RBA's 25 basis point cash rate cut to borrowers.
It's standard variable rate will reduce to 6.51% from December 17.
It follows both <a target="_blank" href="/news">NAB and Commonwealth Bank</a> announcing rate cuts of 20 basis points, taking effect from December 10.
NAB's new standard variable rate will reduce to 6.38% and Commonwealth Bank's will fall to 6.40%.
Westpac taking an extra week to reduce its variable rates compared with the Commonwealth Bank and NAB is significant.
Earlier this year, <a target="_blank" href="/news">The Australia Institute</a> calculated that every day that the big four banks delay passing on the Reserve Bank’s latest interest rate cut represents a deprivation of $12 million from home owners’ pockets.
Westpac is taking 12 days to pass on 20 basis points this month compared with a big four bank<a target="_blank" href="/news"> average of 10.6 days </a>calculated by the Economic Record, published by the Economic Society of Australia.
In contrast, NAB and the Commonwealth Bank will take only five days to pass on the rate cut.
ING Direct announced yesterday it would pass on the full rate cut, but this will only take effect on December 24 - 19 days after the RBA reduction.
Westpac's reduction in home loan rates will save homeowners $38 a month or $456 a year in total monthly repayments on an average mortgage of $300,000.
Since October 2011, Westpac has cut its variable mortgage rates by 1.35 percentage points, equating to an annual saving of $3,192 on an average home loan.
The RBA has reduced the cash rate by 175 basis points since October.
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Westpac joints CBA and NAB by passing on 20 basis points

<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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