<html><body>
Housing affordability improved for the seventh straight quarter in September to be at its highest level in three years, according to the latest HIA-CBA Housing Affordability Index.
Over the quarter, the index increased by 5.3% to 65.8% to be up by 15% compared with the same quarter in 2011.
Affordability improved due to the median dwelling price falling from $466,900 to $459,100, and mortgage rates falling from 6.4% to 6% over the quarter.
Affordability improved in all capital city and regional markets with Hobart the most affordable with an index score of 78.3 - up from 73.1, followed by the ACT (67.8 to 71.3) and Adelaide (70 to 71.1).
Sydney’s affordability score improved from 51.9 to 54.2 over the quarter, but remains the least affordable capital city market, followed by Melbourne (63.6), Perth (64.1) and Brisbane (68.5).
In Victoria, South Australia and Queensland, it is more affordable to buy in the capital city market than in the regions.
HIA chief economist Harley Dale says the run of consecutive improvements in some regional indices is even longer, “in some instances showing affordability has reached levels not seen since the early 2000s”.
“Housing affordability has been improving on the back of steadily growing incomes, falling interest rates, and easing dwelling prices,” says Dale.
“At the same time, however, transactions volumes have remained historically low as economic uncertainty has weighed heavily on households’ willingness to engage in the residential property market.”
“Tentative signs of a recovery in transactions volumes should hopefully gather legs – another interest rate cut in early December would enhance the prospects of this occurring.
“An increase in home buyer action can occur without generating undue inflationary pressure and would assist a much-needed recovery in new residential construction activity.”
A full explanation of how the index is calculated can be <a href="https://economics.hia.com.au/media/Affordability%20Index%20Methodology.pdf">downloaded on the HIA website.</a>
</body></html>

lschlesinger-FZcF9M3vE6

Housing affordability improves to highest level since September 2009: HIA/CBA index

<html><body>
A house price crash has been rated as a low to medium risk of occurring in Australia, according to the latest Financial System Stability Assessment report from the International Monetary Fund (IMF).
The report does note that the banking sector is heavily exposed to the housing market, with residential mortgages the banks’ single largest asset, but says the financial system is buffeted from an “unlikely” house price collapse because the household sector is not highly leveraged.
The report says an average loan to value ratio of 50% on mortgages provides the Australian financial system with “a buffer against a large decline in house prices”.
Click to enlarge
<a href="/images/stories/2012/11/imfnov28.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/11/imfnov28.gif"></a>
<a href="/images/stories/2012/11/imfnov281.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/11/imfnov281.gif"></a>
In addition, the IMF notes the differences in the Australian mortgage market compared with other countries and the propensity of borrowers to pre-pay their mortgages.
“[In Australia] there is no tax incentive for owner-occupier debt,  and prepayment on housing loans is prevalent and sizable.
“Mortgages are full recourse loans, giving borrowers an incentive to continue making payment even under stress,” the IMF adds.


<hr class="system-pagebreak">
Apart from the diligence of borrowers, the IMF says that at a central bank and government level, there are good structures in place to mitigate against structural risk from Australian banks' heavy exposure to the residential mortgage sector.
The IMF says authorities have “considerable policy space to respond to negative shocks given low public debt, a flexible exchange rate, some scope for monetary easing, and a well-capitalized banking system”.
However, it does warn of some risks to financial stability due to about a quarter of mortgages having a loan to value of 80% or more at origination mainly by first-home buyers and low-income households.
“The buffer for this group is much smaller and a large decline in house prices would have an impact on asset quality,” says the IMF.
But a house price crash is unlikely given that there is no oversupply of housing as was the case in the US sub-prime-fuelled mortgage crash.
“No construction boom has accompanied the run-up in house prices, and supply remains quite tight,” says the IMF.
While the report notes that house prices have “declined gradually over the past year” it anticipate a further correction in commercial property prices.
“Commercial real estate prices have seen a large correction since 2008 but still appear high by international comparison,” says the IMF, which calculates that commercial real estate represents about 10% of banks’ exposures and a sharp fall in prices would impair banks’ balance sheets.
The report does highlight how heavily Australia depends on the residential property market, with 90% of Australia’s household debt being housing loans, above the average of advanced economies in the G20.
“Strong house price gains over much of the past two decades have made Australia’s house prices relatively expensive now. This combination exposes banks to negative income shocks generated by a sharp increase in unemployment.
“Moreover, around 30% of new mortgages are interest-only, a potentially riskier type of lending than regular mortgages, and 55% of those mortgages are interest-only investor loans.
“However, the risk is mitigated by a number of factors, including much larger household assets that dwarf household debt, relatively low household leverage and increased household savings over recent years."
The report also notes that loans with an LVR of greater than 80% are “generally covered” by lenders mortgage insurance (LMI).
“The banks’ capital positions seemed capable of withstanding a range of adverse scenarios ranging from slow growth to severe macroeconomic shocks, even after taking into account banks’ cross-border-exposures.
“Under the most severe scenario, aggregate Tier 1 capital (funding sources to which a bank can most freely allocate losses without triggering bankruptcy such as ordinary shares and retained earnings) remains above the minimum threshold, although total capital of some banks falls slightly below the threshold after two years.
“The liquidity stress test, which simulated a bank-run type scenario, indicates that banks would be able to withstand a severe liquidity shock with support from the RBA under a new Basel-approved facility, and withdrawals of funding from banks in the United States, United Kingdom, and Japan would have the largest impact,” says the IMF.
</body></html>

Borrower mortgage repayment diligence protecting Australia against ‘unlikely’ house price crash: IMF

<html><body>
A grain shed in the rural village of Corobimilla in the NSW Riverina region has been listed for sale at $180,000 and may appeal to rural investors or farmers looking for additional storage space.
<img src="/images/stories/2012/11/grainshed.jpg">
The grain shed has a 2,500-tonne capacity and stands at <a target="_blank" href="https://www.realestateview.com.au/Real-Estate/67-newell-highway-corobimilla/Property-Details-buy-commercial-4735537">67 Newell Highway</a>, 20 kilometres from <a target="_blank" href="/news">Narrandera </a>and 10 kilometres from <a target="_parent" href="/news">Morundah</a>.
<a target="_blank" href="/news">Corobimilla</a> is in the central east part of the Riverina close to the NSW/Victoria border, with the name derived from the aboriginal word meaning "tree struck by lightning".
The grain shed listing is through by Jeremy Bell of Rodwells &amp; Co Laverton.
Corobimilla lies within the state suburb of Gillenbah, which had a population of 405 on census night 2011.</body></html>

Grain shed may tempt rural investor at $180,000

<html><body>
Sydney's western corridor is currently the most tightly held precinct in the CBD office market and is expected to remain tightly held over the next three years while Lend Lease’s $6 billon Barangaroo development takes shape, according to a new Pulse report from Jones Lang LaSalle.
The western corridor comprises the strip of offices incorporating Hickson, Shelley and Kent roads and the future Barangaroo development, from Circular Quay to Darling Harbour.
As the graph below shows, the vacancy rate in the western corridor has fallen steeply since the early 2000s, when it was above 16%, to under 8%.
The highest vacancy rate is in the core CBD market.
Click to enlarge
<a href="/images/stories/2012/11/jllnov27.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/11/jllnov27thumb.gif"></a>
“No developments are scheduled to complete in the western corridor until the first stage of the Barangaroo development in late 2015," says Jones Lang LaSalle.
“There will, however, be backfill space created as a result of KPMG and Lend Lease relocating to the International Towers.
“Both tenants will vacate assets at the end of first generation leases. Jones Lang LaSalle expects that a high proportion of the good quality backfill space at 10 Shelley Street and 30 Hickson Road will be leased prior to lease expiry.”
According to Jones Lang LaSalle, the western corridor has experienced the strongest growth in stock over the past 15 years.
Major buildings to complete over the past six years include: Westpac Place at 221-293 Kent Street (73,620 square metres), 1Shelley Street (31,225 square metres) and 12 Shelley Street (14,848 square metres).
As a result, the western corridor’s share of the Sydney CBD office market has increased from 19.2% in 2001 to 23.2% in mid-2012.
</body></html>

Sydney’s western corridor now the tightest CBD office market: Jones Lang LaSalle

<html><body>
Hollywood special effects studio Luma Pictures, which has worked on over 80 movies including films by the Coen Brothers (True Grit, No Country for Old Men), X-Men and Prometheus, has leased over 1,000 square metres of office space in South Melbourne on the edge of the Melbourne CBD.
Luma Pictures will pay net rent in the high $300s per square metre per annum in Heritage Victoria listed, warehouse-style space at 256 Clarendon Street, <a target="_blank" href="/news">South Melbourne</a>.
The five-year lease deal was brokered by Savills Australia’s Louise Nicoll.
Nicoll says the Santa Monica-based company sought a location in close proximity to restaurants, bars and tenant amenity.
"Luma also wanted a funky space which was conducive to a creative working environment, which the village like community of Clarendon Street was able to provide,’’ she says.
The Melbourne premises are Luma’s first office outside of the US and will focus on offering its special effects expertise to Australia’s film and television industry.
The lessor was a private Melbourne investor.
</body></html>

Hollywood special effects studio leases heritage space in Melbourne

<html><body>
Mortgage Choice CEO Michael Russell says licensed mortgage brokers “most certainly working in customers’ best interests” and are required by law to always act appropriately.
Russell is the most high-profile mortgage broking executive to speak out against a weekend News Limited article that suggested because brokers are paid upfront commissions by lenders, this creates <a target="_blank" href="https://www.news.com.au/opinion/borrowers-beware-you-must-shop-around-for-the-best-value-home-loan/story-fnfhswl8-1226523426843">a conflict of interest when recommending loans to consumers</a>.
Russell called the article written by News Limited national economics editor Jessica Irvine “ill-informed” following on from comments from mortgage broker Darren Moffatt who said it was <a target="_blank" href="/news">riddled with factual inaccuracies and omissions</a>.
“It is important to set the record straight to reassure Australian property buyers that contrary to the misinformation that was published over the weekend, licensed mortgage brokers are most certainly working in customers’ best interests," says Russell.
“Furthermore, there is legislation in place to enforce that mortgage brokers are acting appropriately,” says Russell, who heads up the biggest mortgage broking franchise in Australia.
“Under the National Consumer Credit Protection Act, it is compulsory for all mortgage brokers to be licensed and to fully disclose to a customer any commissions paid on their housing loan.
“Consumers should most definitely do their own research before deciding on which mortgage broker to use. But when they do, they can be assured that ASIC oversees stringent national legislation that imposes strict obligations on mortgage brokers to always make lender and product recommendations that are aligned to customers’ requirements, objectives and financial circumstances,” Russell says.
Also responding to the News Limited article, Phil Naylor, CEO of industry body, the Mortgage and Finance Association of Australia (MFAA) called the assertions in the articles that mortgage brokers did not act in the best interests of borrowers are completely “without foundation”.
“Mortgage brokers are now a trusted source of home loan information and cost effective products.
“It is law that all commissions are disclosed fully in loan documents for borrowers, including upfront, trail and volume commissions. The industry has been closely involved in the federal government’s creation of rules to protect borrowers, who find mortgage brokers a very valuable resource in making what is the largest investment of their lives,” Naylor says.
“This is evidenced by the fact that about 41% of all home loans in Australia are now written by brokers, the vast majority of whom are members of the MFAA, which ensures the highest professional, training and disciplinary standards for the protection of consumers," he adds.
Naylor says “transparency is a key aspect of how mortgage brokers operate and it is unfair to assert that brokers are not providing unbiased and comprehensive information as it is published in the loan documents borrowers review and sign.
Ray White-owned mortgage broking group Loan Market Group also defended the industry yesterday.
Loan Market corporate spokesman Paul Smith said the brokerage was disappointed by weekend newspaper reports claiming brokers were merely “salesmen” conflicted because of the commissions they received from lenders.
According to Smith, the rise in popularity for mortgage brokers has occurred because mortgage brokers enable borrowers to make considerable savings.
“The success of a mortgage broker is built upon providing a unique service where they can negotiate lower interest rates and fees and guide borrowers through a range of products most people simply wouldn’t have the time to research,” he says.
</body></html>

Mortgage brokers required by law to work in customers’ best interests: Mortgage Choice

<html><body>
Borrowers are likely to get a better deal through a subsidiary brand of a major bank in 2013 or by going to a mutual bank or non-bank lender, according to the latest Deloitte Australian Mortgage Report.
This finding is based on sentiments of a roundtable discussion made up of senior executives representing banks, non-banks, mutual lenders, mortgage brokers and mortgage insurers.
The report forecasts that banks will still chase market share targets and “aggressively compete for whatever growth exists”, but it is likely that in 2013 the majors will use their subsidiary brands as the “more aggressive price competitor, so protecting their main brand and its margins”.
“To meet borrowers’ demand for lowest price, it is also likely that the majors will use their subsidiary brands at a more aggressive price point and so shift up a competitive gear,” says Deloitte financial services partner James Hickey.
This approach is already in evidence, with Westpac subsidiary St George currently promising to beat any advertised home loan interest rate offered by the four major banks.
The special offer is available until December 21 for new home loan customers, with a $1,000 rebate also available to help new customers cover the cost of purchasing their new home.
To take advantage of this offer, customers need to provide a copy of the relevant bank’s advertisement (print, radio or online) showing the interest rate being offered.
“I encourage people to look around, find the cheapest rate advertised by one of the four major banks then contact us, so we can offer them an even better rate,” says  Andy Fell, general manager of St George retail banking.
Unsurprisingly, the offer does not mention that St George is 100% owned by big four bank Westpac.
Westpac has a standard variable rate of 6.71% with St George offering 6.69%.
Other subsidiary brands of major banks offering better deals than their parent banks include NAB’s online offering UBank, consistently offering among the cheapest fixed and variable refinancing offerings.
Bankwest offers an online variable rate loan at 5.58%, compared with parent bank  Commonwealth Bank’s best offering (excluding one-year introductory specials) of 5.9%.
According to the Deloitte report, “price, and the level of discounts offered to the standard variable rate (SVR), will be a lever which banks use to tap into market share”.


<hr class="system-pagebreak">
 
The report also says that the current imbalance in market share power held by the major banks over smaller banks and non-bank lenders is unlikely to be resolved in 2013.
“The advantages which the majors have, through their stronger credit rating when raising funds, their scale in terms of operating cost efficiency, and their distribution reach, will continue to maintain the divide between them and smaller lenders.
“This is a justified reality in the market, and while calls for an inquiry into the banking sector have merit in terms of considerations of the impact of this on future competitiveness and innovation, smaller lenders should not expect government intervention in 2013 to tilt the balance in their favour," says the report.
But the report also says that smaller lenders “are and can continue to be successful if they play to their strengths (and understand their limitations)”.
“Key strengths are customer satisfaction, community engagement, member affiliations, and market and product specialisations and niches.
“They are limited in terms of competing with majors on a national scale, and by funding and capital constraints. These are realities which smaller lenders can use to their advantage when tailoring their business models.
Hickey says that while it is unlikely that major lenders will increase their risk profile in 2013, “there is opportunity for the smaller banks and non-bank lenders to leverage their risk appetite for ‘near prime’ borrowers”.
</body></html>

Smaller banks and non-banks to offer borrowers better mortgage deals in 2013: Deloitte 

<html><body>
Only one in 20 property investors is making enough money from his or her rental portfolio to no longer have to work full time, according to a landlord survey carried out by research consultancy group BDRC Jones Donald.
Based on an online survey of 500 Australians who own one or more rental properties, it found that just 6% of respondents earn a profitable full-time living from rents paid by their tenants.
Just over a third (35%) derive income from their rental properties to supplement their full-time income, while a quarter (26%) break even on rental activity, and just under a third (32%) make a small loss.
While the report does not delve into the actual dollar earnings of the landlords who are making a living off their rental yields, it does reveal that the average property value for those making a profitable full-time living is $915,000, with these landlords holding a portfolio with an average of 4.3 properties, equating to total average value of $3.9 million.
 "Of these people, the average household income is $111,000 before tax," says a spokesperson for BDRC Jones Donald.
Click to enlarge
<a href="/images/stories/2012/11/llnv27.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/11/llnv27thumb.gif"></a>
The most recent statistics from the Australian Tax Office (ATO) for the 2009-2010 tax year show that the majority of property investors own just one investment property, indicating that it is not a full-time occupation for most.
Of the 1.7 million individuals who reported net rental income from rental property in the 2009-2010 tax year, 73% own just one rental property.
The ATO figures also show that 63.4% of property investors with net rental income reported a taxable loss (net rental income less than zero) from their rental property.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/11/atonov27.gif"><img src="/images/stories/2012/11/atonov27thumb.gif"></a>
 
<hr class="system-pagebreak">
 
The results of the Australian Private Property Investor Study also suggest a degree of complacency among landlords about the performance of their investments, with more than a third (34%) being unaware of the rental yield earned on their investments.
This lack of awareness is even higher (40%) for those landlords who manage their own investments, compared with 34% of landlords who use a professional property manager.
Sentiment about property investing remains positive, though, with 77% of Australian landlords feeling very positive about their rental investment and nearly a half of respondents noting an increase in demand from tenants. Only 12% reported a decrease in demand from tenants.
Overall the survey found that landlords are better off financially if they use a property manager both in terms of rental yields achieved and profitability.
Around 20% of landlords that used a property manager earned yields of 6% or more compared with 15% of landlords that managed their properties themselves.
Similarly, 46% of landlord that used a property manager derived a positive income return from their investments compared with just 34% of landlords that that managed their properties themselves.
The findings of the survey indicate that the majority of landlords (77%) use the services of a property manager.
“In the current market, landlords are seeking advice to ensure that their investments are working hard for them,” says Roger Donbavand, managing director of BDRC Jones Donald.
“Along with real estate agent support, six out of 10 landlords would welcome receiving more information and advice from their lender.”
The survey suggests there is some appetite among landlords to increase their investment portfolios, with 21% looking to increase the number of properties they own over the next 12 to 18 months – higher than the 12% who plan to decrease the size of their portfolios.
Half of landlords (48%) don’t plan to make any acquisitions over the next 18 months, while a significant proportion (18%) remain unsure whether to buy or sell.
Donbavand says the study reveals that to get the best results Australian private property investors must consider both houses and units when looking for an investment opportunity.
“The Australian Private Property Investor Study has shown that more private property investors have purchased houses over units. However, units may offer better returns in some instances,” he says.
“While Sydney, Perth, Darwin and Canberra all boast increasing unit rental returns, our in-depth research demonstrates that investors who seek real estate advice will see better financial results overall.”
According to the study, the majority of property investors are typically married, professional couples with an average of 1.9 properties in their portfolio.
The study can be purchased in full from<a target="_blank" href="https://www.jonesdonald.com.au/"> BDRC Jones Donald.</a>
</body></html>

Property investment proceeds not an alternative to full-time job: Australian buy-to-let landlord survey

<html><body>
The well-known face of the BBC's Antiques Roadshow Eric Knowles recently opened the Brisbane Antique Centre at Loganholme to provide the largest concentration of small-time antique traders in Australia.
The Brisbane Antique Centre will lease around 2,300 square metres of space at 1/10 Beenleigh-Redland Bay Road, Loganholme in Logan City, in a deal negotiated by Ray White Commercial Springwood industrial sales and leasing consultant John De Martini.
It has taken up a seven-year lease with options at a gross rental industry sources estimated to be around $368,000 per annum.
A separate tenancy has been taken up by Fernwood Gym.
“The Brisbane Antique Centre chose this complex due to its size, visibility and location,” explains De Martini.
“There is room for up to 100 antique traders, while the site offers 140 dedicated off-street car parks, with 50 more under construction.
“The complex includes a French-themed café and it is easily accessed being located just off exit 30 on the M1 Motorway South at Loganholme.”
“This centre provides Brisbane with the greatest concentration of small-time antique dealers in the largest amount of space of any state capital,” says Brisbane Antique Centre general manager Jasmine Khan.
</body></html>

Brisbane Antiques Roadshow rolls into Logan City with industrial leasing

<html><body>
<img src="/images/stories/2012/11/collierslogo.jpg">
Colliers International's Aaron Green tells Property Observer the trend in the Canberra market is some institutional owners taking a gamble on generically fitting out their vacant office space in the hope that it will help lure tenants. He would invest a spare $750,000 in a single-titled commercial property that showed returns of more than 8% per annum.
How long have you been in the industry?
For a spot on three years starting in September 2009. So still learning the trade, but also within that short time I have gained a lot of knowledge within the Canberra commercial market and formed some good business relationships.
What’s happening in the area you specialise in?
<img style="margin: 5px; float: right;" src="/images/stories/2012/11/aarongreen.png">
I specialise in leasing office space between 500 to 1,000 square metres.  I’m finding that tenants are looking to make the cost of relocating as neutral as possible as they do not have a capital expenditure budget allocated for fitout. Building owners who have tenancies with reasonable fitouts in place and  offering an incentive (typically between 8-12%) are attracting tenants. This trend has seen some institutional owners taking a gamble on generically fitting out their vacant office space in the hope that it will help lure tenants. So if a tenant can make the fitout work for their business, they get the benefit of being able to occupy a turn-key office straight away, enjoy new workstations rather than tired and outdated looking ones, and they no longer need to pay for the design and project management of this process. Only time will tell if this is a gamble that will pay off, but I’m sure that it will be enough to lure at least a small number of tenants in the marketplace.
Describe the most interesting property you have sold:
An owner-occupier asked me to dispose of their last remaining assets in Canberra after selling their business. They owned three units within a strata-titled building at 26-28 Napier Close, Deakin. The units had a combined total size of 266 square metres and were sold in one line to a local private investment company. The owners had already moved on prior asking me to sell the units and had settled down in Whistler, Canada. I was due to go to Canada soon after, and I sold the units just before departing, so I met up with them in Whistler and celebrated the sale with them over a beer on the slopes.
What are the ingredients to being successful in your job?
Being knowledgeable within your market is key– and when I say your market it is not just facts and figures or knowing who’s left or occupied what space, it’s knowing what the current trends are and what the outlook is. Also, don’t get caught up in all the distractions that can happen on a daily basis. Give yourself tasks to achieve daily so that you can stay on track, stay focused and hold yourself accountable. At the end of the day it provides a sense of achievement. And of course, having good administration staff in the background making sure everything is running smoothly is a must.
What aspects of your role do you enjoy the most?
One of the main reasons I got into commercial real estate was to meet new people and create relationships that will stay with me for life. I also really enjoy that I’m not chained to my desk eight hours a day and have the flexibility of going to meetings, site visits, socialising and accelerating clients’ success in their property endeavours.
Where would invest a spare $750,000?
With the current interest rate I wouldn’t be leaving it in the bank. I would invest the money in a single-titled commercial property that showed returns of more than 8%, with a long lease and good yearly increases – making it a sound investment.
Which football team do you support?
I'm a born and bred Canberra boy, so without a doubt both Canberra teams – Raiders and the Brumbies.
What’s your favourite app or techno gadget?
I really enjoy my Apple products and currently own an iPhone and iPad that I use daily within social and work environments. I’m also currently trying to develop an app with my fiancée and another couple outside of work which so far has been an interesting experience. We are working closely with app developers to get our idea into design phase.
How do you use social media?
Social media is something I really haven’t used professionally  until moving to Colliers International. Since being here I have started to post listings on Twitter and LinkedIn and tracked traffic through Bitly. I do however need to have a better social media plan going forward, so what I do put out there is interesting and frequent enough for people to take interest. I’ve been posting a fair bit of interesting information on <a target="_blank" href="https://twitter.com/aaron_green82">Twitter </a>lately and I’m slowly starting to get more followers, so it must be working.
</body></html>

In profile: Colliers International's Canberra office leasing specialist Aaron Green

<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

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News