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The Commonwealth Bank has become the second of the big four banks to announce its interest rate decision, passing on 20 basis points to borrowers.
From December 10, the bank's standard variable rate will reduce to 6.40% per annum.
This follows <a target="_blank" href="/news">NAB cutting its variable rates by 20 basis points</a> to 6.38%, also from December 10.
The Commonwealth bank once again said that it had to "balance the needs of 1.8 million home loan borrowers with those of its 11 million depositors and its shareholders, who include 800,000 Australians who own its shares directly, and millions more Australians who own shares through superannuation funds" in making the decision.
"A significant factor impacting this balancing of needs has been the increased competition in the domestic deposit market which has benefitted many customers, including those who rely on interest earnings to meet their living expenses," said the bank.
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Commonwealth Bank cuts rates by 20 basis points 

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Australian households pre-occupation with saving their income rather than taking on mortgage and other debt has increased, third quarter GDP figures released today by the ABS show.
The household savings ratio has increased from 9.2% in the June quarter to 10.6% in the September quarter – the highest it has been since June 2009.
Economist Glen Maguire, a former economic advisor in the department of the prime minister,  <a href="https://twitter.com/AsiaSentry" target="_blank">tweeted </a>that “no wonder Australian monetary policy is a dulled instrument”.
The increasing propensity among Australian households to save re-affirms the view expressed by Laing+Simmons general manager, <a href="/news">Leanne Pilkington yesterday</a>, that RBA rate cuts are no longer having an impact on the housing market.
In seasonally-adjusted volume terms, the economy grew by 0.5% over the September quarter.
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RBA rate cuts blunted by households choosing to save rather than take on debt: September quarter GDP figures

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Housing affordability improved by just 0.1 percentage points over the September quarter as the RBA held firm on interest rates and house prices and salaries tread water.
Nationally, the proportion of family income needed to meet home loan repayments reduced from 31.9% to 31.8% over June, July and August, according to the latest quarterly Real Estate Institute of Australia/Adelaide Bank Housing Affordability Report.
There was a similar, small improvement in rental affordability with 24.4% of family income required to meet monthly rental payments over September compared with 24.5% in the June quarter.
<img alt="fast_facts_REIA" height="221" width="400" src="/images/stories/2012/12/fast_facts_REIA.gif">
REIA president Pamela Bennett notes that “unfortunately the earlier [RBA cash rate] cuts in May and June haven’t stimulated the market quite as hoped" but said the slight improvement was cause for "continued quiet optimism".
Adelaide Bank general manager Damian Percy said with the average loan size of new lending commitments now at $320,542 and average monthly loan repayments up slightly to $2,176, or $544 per week, “the current low interest rate environment is encouraging many people to re-visit and weigh up the ‘buy vs rent’ equation".
“Certainly there are many desirable parts of Australia where it is now cheaper to buy and make loan repayments than it is to rent, particularly in blocks of older apartments. This can also be the case for those prepared to take on houses in outer ring suburbs and regional areas that have been ‘let go a bit’ and would see you racking up the frequent flyer points on the weekends in those multi-aisle hardware megastores,” Percy says.
On a state-by-state basis, only three states recorded an improvement in housing affordability over the quarter, led by NSW where the proportion of family income required to meet mortgage repayments declined by 0.9 percentage points from 37.4% to 36.5%, though it remains the least affordable housing market in Australia.
Affordability also improved in Queensland (by 0.5 percentage points to 30%) and in the Northern Territory (0.8 percentage points to 22.1%).
The biggest fall in housing affordability was recorded in the ACT with the proportion of income required to meet home loan repayments in the Australian Capital Territory rising 1.6 percentage points over the quarter to 18.9%.
However, the ACT remains the most affordable market due to the high salaries paid to its mainly civil servant working population.
The report also notes that the ACT’s rents are amongst the highest in the country at $460 per week for a three bedroom house, and $440 for two bedroom other dwellings.
“However, due to a higher average income, over the quarter rental affordability improved with the proportion of income required to meet median rent repayments decreasing 0.3 percentage points to 15.7%,” says the report.
Housing affordability declined marginally in Victoria with the proportion of income required to meet loan repayments increasing by 0.3 percentage points to 32.1% with declines also recorded in South Australia (up 0.6 to 32.6%), WA (0.1 to 23.4%) and Tasmania (0.6 to 26.1%).
The Northern Territory presents the most compelling case for renters to consider buying with the improvement in housing affordability contrasting with the territory recorded the steepest decline in rental affordability with the proportion of income required to meet median rents increased 1.3 percentage points to 24.9%.
For the September quarter, first-home buyers made up 19% of the market, compared with  17.9% in the June quarter and the newf inancing commitments to this group increased 6% over the same period.
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Little improvement in housing affordability in September quarter: REIA/Adelaide Bank report 

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NAB has announced that it will pass on 20 out of the 25 basis points cut from the cash rate by the RBA yesterday.
The bank's standard variable home loan rate will fall from 6.58% to 6.38% per annum on December 10 - the lowest of the major banks with the Commonwealth Bank (6.6%) and Westpac (6.71%) yet to make an announcement on rates and ANZ (6.6%) making its independent decision on Friday, December 14.
NABs head of personal banking, Lisa Gray said the rate cut delivers on its pledge to offer the lowest standard variable home loan rate of the major banks for 2012 - however the bank did not say whether it would continue with this pledge in 2013.
The bank has offered the lowest standard variable home loan rate of the major banks for 41 months.
"Throughout the year, we have consistently acted to deliver on our pledge to our customers to offer the lowest standard variable rate throughout 2012," she said.
NAB must be fairly confident that neither the Commonwealth Bank nor ANZ will pass on 23 basis points or more.
Were they to do so, the Commonwealth Bank and/or ANZ's standard variable rate would reduce to 6.37% meaning they would have a lower standard variable offering than NAB - a public relations disaster.
Gray said NAB's decisions on interest rates were not taken lightly and the bank sought to strike the right balance between the cost of funding and offering competitive rates to customers.
Update, the <a target="_blank" href="/news">Commonwealth Bank</a> has announced it will pass on 20 basis points to borrowers, reducing its standard variable rate to 6.40% from December 10. 
 
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Rate watch: NAB moves first among big four passing on 20 basis points 

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The Reserve Bank’s decision to cut the cash rate to 3% appears to have been taken – perhaps belatedly – to stimulate the non-mining sectors of the economy as well as provide a greater buffer against further global economic weaknesses.
Many will argue that it has come too late and that the RBA should have made adjustments earlier for struggling sectors like manufacturing, retail and tourism.
It also suggests some inconsistency in thinking (as pointed out rather harshly by<a href="https://www.businessspectator.com.au/bs.nsf/Article/RBA-Reserve-Bank-interest-rate-cut-inflation-pd20121204-2N6WD?OpenDocument&amp;utm_source=exact&amp;utm_medium=email&amp;utm_content=143786&amp;utm_campaign=pm&amp;modapt=commentary" target="_blank"> </a><a href="https://www.businessspectator.com.au/bs.nsf/Article/RBA-Reserve-Bank-interest-rate-cut-inflation-pd20121204-2N6WD?OpenDocument&amp;utm_source=exact&amp;utm_medium=email&amp;utm_content=143786&amp;utm_campaign=pm&amp;modapt=commentary" target="_blank">Business Spectator's Adam Carr</a>) when looking back at concluding remarks in the November statement with the RBA content to adopt a wait and see approach as to the impact of earlier rate cuts.
“Further effects of actions already taken to ease monetary policy can be expected over time. The board will continue to monitor those effects, together with information about the various other factors affecting the outlook for growth and inflation,” said Glenn Stevens in his November statement.
The December statement says growth has been “running close to trend over the past year” and that inflation is “consistent with the medium-term target”, so on those two fronts the need for a rate cut cannot be argued.
The conclusion which can then be drawn is that concerns about the world economy and the need for stimulus of the non-mining sectors of the economy have finally become uppermost in the mind of the RBA.
Certainly, the housing market is not worrying the RBA as much as it has previously, with Stevens noting in his December statement that there are “indications of a prospective improvement in dwelling investment, with dwelling prices moving a little higher, rental yields increasing and building approvals having turned up”.
And access to capital for big business and banks is also not a problem in the minds of the RBA board members.
“Capital markets remain open to corporations and well-rated banks, and Australian banks have had no difficulty accessing funding, including on an unsecured basis. Borrowing conditions for large corporations are similarly attractive and share prices have risen since mid-year," said Stevens.
Indeed, such statements could have been taken to justify a rate hold.
But clearly the two-speed economy is a serious concern.
“Available information suggests that the near-term outlook for non-residential building investment, and investment generally outside the resources sector, remains relatively subdued. Public spending is forecast to be constrained,” said Stevens in his December statement.
Adding to this, the RBA is also concerned about the forecast slowdown in the mining investment boom and that other sectors of the economy will need to grow to keep the economy on track.
“In Australia, most indicators available for this meeting suggest that growth has been running close to trend over the past year, led by very large increases in capital spending in the resources sector, while some other sectors have experienced weaker conditions.
“Looking ahead, recent data confirm that the peak in resource investment is approaching. As it does, there will be more scope for some other areas of demand to strengthen,” said Stevens.
The RBA also highlights a gloomier global outlook with global growth “forecast to be a little below average for a time”, with risks to the outlook “still seen to be on the downside”.
Given the focus on the mining investment slowdown (expected to peak in 2014) and a desire to stimulate the non-mining sectors, further rate cuts should be expected in 2013, perhaps earlier rather than later.
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Rate cut aims to stimulate non-mining sectors of the economy

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Australia's fifth biggest mortgage lender, ING Direct has thrown down the gauntlet to the major banks by passing on today's RBA cash rate cut in full.
ING Direct will lower the interest rate on its variable mortgages by 0.25 percentage points, effective Monday December 24.
The online bank's most popular home loan the Mortgage Simplifier will reduce to 5.72% p.a.
“Our funding position has eased recently allowing us to pass on 25 basis points, however, the threat of elevated funding costs has not passed completely, " says ING Direct CFO Glenn Baker.
ING Direct has a $38 billion home loan book.
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Online ING Direct quick to move with full rate cut passed on to borrowers

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Reserve Bank rate cuts no longer have any meaningful impact on housing market activity, according to Laing+Simmons general manager Leanne Pilkington, following today’s 25 basis point cash rate cut.
Swimming against the tide of industry commentary forecasting a housing market bounce in 2013, Pilkington says that while borrowers may get a final reprieve for the year from the rate cut, the Reserve Bank "no longer has the relevance or power to stimulate housing market activity as the banks are either not passing on the cuts, or passing on only a fraction of them".
“The net result is that interest rate cuts at the Reserve Bank level are not having an impact. The subdued levels of transactional activity, despite the official cash rate being at historical lows, not only emphasises the caution among buyers but also the lack of stock on the market,” said Pilkington.
“The end result of the lack of consumer confidence – and trust – in the banks is that more people are staying put, fewer first home buyers are taking the first step to ownership, and those in need of an upgrade are hesitant to make a move in the current climate.”
Laing+Simmons recorded a 30% jump in open for inspections in October over September as well as a rise in the number of auction attendees and market appraisals following the October 3 rate cut, but the rally was short lived with November numbers back on par with September.
Pilkington said spring contributed to the usual spike in activity, with the market unable to maintain the upward momentum.
She said the government needed to investigate “new avenues to stimulate activity, as cash rate adjustments are no longer cutting it and said there was a need for to incentivise the developer side of the equation “because caution is dictating the buyer side at present”.
She also called for a “reconsideration of stamp duty” calling it “the single most restrictive tax inhibiting transactional activity, one which effectively quashes a potential deposit for many buyers”.
Other market commentators said the rate cuts would have an impact.
“Two interest rate cuts this quarter (October and now December) improve the prospects of a tangible recovery emerging in 2013 for both new home building and renovations activity,” said HIA chief economist, Dr Harley Dale.
 "Lower interest rates make a vital contribution to improving conditions for the residential construction industry, but government action is the key.”
Residential developer Sekisui House, currently building the $2 billion Central Park mixed-use project in inner Sydney in partnership with Frasers Property Group and The Hermitage residential community in Sydney’s South West said the 0.25% cut would boost the property market in the coming months
“In our market, we’ve noticed a trend in higher sale volumes corresponding to previous rate cuts throughout 2012, which we believe is also buoyed by the significant State Government commitment to infrastructure in Sydney’s South West,” said Craig D’Costa, Sekisui House senior development manager at The Hermitage.
Matt Daly, general manager of residential builder Hotondo Homes, welcomed the rate cut and said it would bring the dream of building and owning your own home “a little more reachable”.
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RBA rate cut won’t stimulate housing market pick-up: Leanne Pilkington

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The number of dwellings approved for construction fell 7.6% in October in seasonally adjusted terms, after rising for the past two months, according to the ABS.
The monthly fall was far greater than 1.6% drop forecast by economist polled by Bloomberg and follows an upwardly revised 9.5% rise in September (from unrevised 7.8%) and 23% rise in August.
Dwelling approvals are a forward indicators of future construction activity.
The biggest fall in dwelling approvals occurred in Victoria (-14.2%), followed by Queensland (-7%) and South Australia (-0.1%). Building approvals increased in Tasmania (11%), New South Wales (3.2%) and Western Australia (0.1%).
In the key detaching private sector housing market, approvals fell 1.5% in October while approvals in the more volatile units market fell 18%
Private sector house approvals rose in New South Wales (5.5%) but fell in South Australia (-7.9%), Victoria (-4.5%), Queensland (-2.4%) and Western Australia (-1.3%).
Westpac says private sector house approvals were the "main source of disappointment although the segment continues to follow a strong double-digit uptrend despite the 1.5% fall in October", with Queensland and Victoria both showing more "pronounced weakness across private sector houses than elsewhere".
"Private sector house approvals are showing a vigorous uptrend in WA and steady gains in NSW," says Westpac.
The bank says the main driver of the 18% fall in unit approvals were dwellings in 'high-rise' buildings with 'low to mid-rise' continuing to show a strong uptrend.
The value of total building approved fell 6.7% in October, in seasonally adjusted terms, after rising for two months.
The value of residential building fell 12.9%, while non-residential building rose 6.7%.
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Dwelling approvals fall by greater than expected 7.6% in October: ABS

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Stockland’s 2013 full-year earnings are likely to fall 15% unless there is an “unlikely” improvement in the “challenging” Victorian residential market, the residential developer has told investors.
In its latest market update, Stockland said there had been no improvement in the Victorian residential market since the company’s AGM in October.
“Unless the Victorian market improves soon, which seem unlikely, underlying earnings per security (EPS) for the 2013 financial year will be at the lower end of our previously guided range of 10% to 15% below the 2012 financial year. EPS decline will be even greater in the first half, primarily due to a large skew to the second half in the Residential business,” said Stockland.
In his October AGM address, outgoing managing director Matthew Quinn said Stockland’s residential business faced a “high degree of uncertainty given current buyer caution” though with some signs of improvement in Perth and a bolstering in NSW and Queensland through first-home buyer stimulus targeted at the new housing market
“The reality, though, is that conditions are very tough in Victoria where the company’s most profitable projects are located,” Quinn said.
The lower earnings expectations follows the release of a Melbourne update from The National Land Survey Program, which found that <a href="https://www.propertyobserver.com.au/land/one-in-three-melbourne-residential-lots-being-returned-to-developers-by-building-firms-report/2012112958179?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=newsplus">nearly a third of residential lots</a> released by big land estate developers on Melbourne's fringes are being returned by mid-sized home building companies, which can't find smaller home builders and or end-use home buyers.
The poor outlook will be one of the challenges faced by incoming Stockland boss Mark Steinert, who will replace Matthew Quinn as chief executive from January 14.
At today's market update briefing, Stockland residential boss Mark Hunter acknowledged recent interest rate cuts and the reintroduction of first-home buyers’ grants in NSW and Queensland, but said market uncertainty and a lack of consumer confidence were continuing to present challenging market conditions, which were particularly apparent in the Victorian residential market.
“Although the challenging market is impacting our performance in the 2013 financial year, we have made good progress in diversifying our residential portfolio and we are meeting the market with more affordable products. We have demonstrated our continued focus on larger, master-planned communities, which present better economies of scale and greater potential to deliver stronger returns over time.
“In the second half of 2014 and 2015 financial years we will bring more projects to market that meet these core criteria and this will drive stronger returns. We will also finish a number of projects in 2013 and 2014 financial years that don’t meet these criteria and are currently impacting our performance.”
Stockland will provide its next update to investors at its half-year results in February.
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Victorian residential market likely to impact on 2013 earnings as Stockland confirms continued tough conditions

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DIY super investors should consider acquiring an NRAS property because of the positive cashflow benefits, according to a new report by property investment and financial advisory firm Onyx Wealth.
Investing in a property that qualifies for the government’s national rental affordability scheme (NRAS) is a way for SMSF trustees to avoid being in the position, where they hold a property that is both negatively geared and provides negative cashflow, according to report authors Paul Thewlis and Margaret Hardy.
Such a holding would require the SMSF to have large enough liquid assets and/or cash inflows to allow for these losses.
In an interview with <a target="_blank" href="https://www.propertyobserver.com.au/queensland/nras-and-smsf-investors-helping-keep-inner-brisbane-off-the-plan-market-afloat-david-devine/2012112858155">Property Observer last week,</a> Brisbane apartment developer David Devine said SMSF and NRAS investors were among the biggest buyers of off-the-plan projects developed by his Metro Property Development company, which has the two top selling projects in inner Brisbane.
Metro has marketed more than 50% of the 308 apartments in its Madison Heights development as NRAS-approved investments, compared with 20% in its first development, the Chelsea, now completed.
But yesterday, <a target="_blank" href="https://www.propertyobserver.com.au/residential/nras-is-a-tax-scheme-a-property-investment-must-stack-up-on-its-own-margaret-lomas/2012120258187/Page-2?utm_campaign=observers&amp;utm_medium=aida&amp;utm_source=po">property investment advisor Margaret Lomas</a> warned investors against investing in NRAS properties, labelling it a tax scheme intended for institutional investors and said investors considering the scheme should seek a private tax ruling "before taking the plunge on any scheme that sounds so good".
SMSFs can purchase an NRAS approved property, which provides an annual tax free incentive estimated at $119,833 over the next 10 years.
In return, the property must be rented out to eligible tenants at a rent at least 20% below market rent as assessed by an independent valuer, with eligible tenants determined by government income thresholds.
“NRAS properties have greater negative gearing than equivalent non-NRAS properties,” explain Thewlis and Hardy.
“By giving up 20% of the taxable rental income the SMSF increases its tax loss. Normally a loss is undesirable, but in this case it is usually offset by the value of the NRAS incentive.
“Take for example an NRAS property which has a market rental value of $300 per week. A 20% discount on that rent means the SMSF is giving up $60 per week of taxable income.
“At the same time, the SMSF gains $190 per week of untaxed income in the form of the NRAS incentive."
Due to superannuation act rules SMSFs can only purchase completed or off-the-plan property
The majority of NRAS properties purchased by Onyx Wealth clients are priced between $250,000 and $400,000.
Because they are new properties, they also have the tax benefit of having greater depreciation allowances than older property.
Another benefit is stamp duty savings in some states.
“SMSFs buying property off the plan can benefit from substantial stamp duty savings. For example, in Victoria and Western Australia, purchasers who buy apartments off the plan prior to construction only pay stamp duty on the land value apportioned to each individual apartment,” explain Thewlis and Hardy.
<a target="_blank" href="https://onyx.net.au/">Onyx Wealth</a> provides the following example to show income generated for a SMSF with no property investment, an SMSF with a normal property investment and an SMSF with an NRAS property investment:
Click to enlarge
<a rel="shadowbox" href="/images/stories/2012/12/onyx.gif" title="Click to enlarge"><img src="/images/stories/2012/12/onyxthumb.gif"></a>
 
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NRAS property investment can provide positive cashflow for SMSF investors: Onyx

<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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