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Beneath the smoke-stacks and giant mining pits, a Mount Isa retail complex in the centre of the mining town featuring a Blockbuster, Subway and Pizza Hut is expected to fetch around $3 million when it goes to auction on December 12.
A sale at this price would represent a yield to investors of around 10%
Mount Isa is a remote north-west investment hotspot with rents having risen 22% over the past two years driven by demand for temporary accommodation from mining employees, according to a <a target="_blank" href="https://www.propertyobserver.com.au/queensland/rents-and-house-prices-rise-in-mount-isa-due-to-demand-from-mining-employees/2012110557629">recent report by PRDnationwide.</a>
There are five properties up for sale in one line on a site measuring 2,250 square metres at 17-19 Simpson Street in the centre of Mount Isa.
The other two premises are tenanted by lunch and juice bar Something Zesty and four-wheel drive accessory business, TJM.
The retail complex is being marketed by Raoul Holderhead and Pat Kelly of Burgess Rawson alongside Nellie Smithurst from Jays Real Estate and will be auctioned at Crown Casino Melbourne on December 12.
Holderhead tells Property Observer likely buyers include Melbourne investors, local Mount Isa investors and far North Queensland investors.
All five properties are leased for five years with fixed 3% annual rent increases plus renewal options.
Combined the five leases bring in annual net rent of $328,000.
Mount Isa is around 900 kilometres inland from Townsville and 1,800 north west of Brisbane. The main mine operator and the town’s biggest employer is Xstrata which operates an underground copper mine and underground zinc-lead-silver mine – among the biggest underground mines in the world.
The population of Mount Isa is 33,000.
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lschlesinger-FZcF9M3vE6

Mount Isa retail complex expected to sell on 10% yield at auction

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Confession time: I'm a big fan of Jessica Irvine.
I've read her stuff for years in the SMH and Fairfax and have almost always found myself nodding furiously in agreement. I love her brand of accessible, econo-political insight. It's rare for an economist to effectively deconstruct big issues for the masses, and rarer still to offer common sense solutions. That she regularly does both, is a real testament to her talent and value as a writer.
Recently she moved to News Ltd and now commands a much larger audience. Her column is syndicated out through the Sunday dailies such as the Sunday Herald Sun, The Sunday Telegraph, and Sunday Brisbane Courier Mail.
It's a pity then, that so many people would have read <a target="_blank" href="https://www.news.com.au/national/brokers-advice-costly-for-buyers/story-fndo4bst-1226523336091" title="Jessica Irvine Mortgage Brokers">her howler of a column today. </a>It’s a real shocker.
Her attack on mortgage brokers might make for a nice headline, but it’s riddled with factual inaccuracies and omissions. It’s not even a real story – everyone knows that brokers are paid commissions by the lenders and that this is how it’s (mostly) kept as a free service to consumers. Borrowers themselves use brokers for convenience, product knowledge, and access to many lenders so they can more easily get a better rate and save on interest. Several iconic household brands such as <a target="_blank" href="https://www.aussie.com.au/" title="Aussie">Aussie</a> and <a target="_blank" href="https://www.mortgagechoice.com.au/" title="Mortgage Choice">Mortgage Choice</a> have been built on this premise. It’s not news.
But most damning of all, is her total failure to understand the crucial role brokers play in keeping some semblance of competition in our bank-dominated mortgage market. More on this in a moment.
First, the errors. Early in her piece she claims that:
"Brokers are failing to adequately disclose the commissions they receive from lenders when they sign up borrowers for a loan.”
Really? What’s the basis for this assertion? Because I can’t find one in her column. It also ignores the reality of <a target="_blank" href="https://www.comlaw.gov.au/Details/C2012C00083" title="NCCP">the government’s recent efforts to legislate against this concern (among others).</a> In 2009, they introduced the National Consumer Credit Protection (NCCP) act, and substantially lifted requirements for broker disclosure on commissions. If, as she claims, brokers are not disclosing, then the bigger story would be the failure of government policy. Strange then, that we do not hear about this.
In fact, it’s impossible for any authorised credit representative (broker) not to disclose exactly how much they’re getting paid (unless they’re deliberately breaking the law). The main document for this is the “Credit Proposal Disclosure” form, but there’s also the “Credit Guide” and the commissions are disclosed again the lender’s loan offer contract.
That’s lot of disclosure in any one’s book.
Jessica makes the point that brokers aren’t required to disclose the commission rates of every-single-lender, only a short list, so there is potential for brokers to recommend lenders that pay a higher commission. Technically this is true. And no doubt, some brokers (a very, very small minority I would say) might abuse this. However, the law again requires that brokers offer borrowers a choice of lenders and rates, and the practicality of the process is that most brokers have software that compares hundreds of mortgage products right in front of the client.
 
<hr class="system-pagebreak">
 
Now, her omissions.
Jessica proclaims the laudable information and convenience of online comparison sites such as<a target="_blank" href="https://www.iselect.com.au/" title="iSelect"> iSelect</a> and <a target="_blank" href="https://www.ratecity.com.au/" title="Rate City">Rate City</a>, in stark contrast to mortgage brokers who are apparently compromised by commissions and “conflict of interest”. It’s true, these sites have many great qualities and pose a real threat to brokers –<a target="_blank" href="https://www.theadviser.com.au/breaking-news/7957-online-labelled-the-next-big-threat" title="Online threat to mortgage brokers">something I’ve been banging on about for a while now</a>. But she’s left out a crucial detail here: these sites also receive income from banks and lenders for introductions to potential borrowers. Here are the terms from the RateCity site:
“We make money by generating qualified leads for financial institutions. A lead is generated when our users visit a financial institution's website via a link from the RateCity website. If you visit a bank's website via RateCity, we may get paid either for that click itself, or more likely, for you "doing something" with the institution - for example, opening an account, or completing an application form on the bank's website.”
How is this different from what mortgage brokers do? In the case of iSelect, they're actually an online broker!
Here’s a quote from their site:
“iSelect receives payment of commissions from participating lenders (via our aggregation partner, Australian Finance Group Limited, ABN 86 148 217 181 ('AFG') for mortgage products sold via the services referred to on this website. You are not required to pay iSelect for the use of the website.”
This is not to knock either organisation, simply to highlight the sloppy journalism in Jessica’s article. These are very serious omissions that in my view, serve her readers poorly. One can only hope they were the result of a zealous sub-editor, not lazy research.
Finally, brokers are not just commission-earning machines.
Mortgage brokers have been called many things over the years, but <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" title="Washing machine mortgage brokers">Jessica’s comparison to “washing machine sales people” is a new low.</a> I know many brokers, who, with 30 years plus banking experience, a Certificate IV, a Diploma of Mortgage Broking, and hundreds of very satisfied clients would be insulted at the analogy, but this is beside the point.
The real point is that the comparison is erroneous. In trying to illustrate that a mortgage is a commodity item sold just like a washing machine, she has seriously erred. For a start, a mortgage is a much more complex product, with deep financial and emotional implications for the consumer. This is a comparison only an economist could love. But most importantly, her analysis ignores the fundamental issue of mortgage market dynamics.
In the fragile eco-system that is the Australian mortgage market, brokers play a vital role in keeping the flame of competition alive. Yes, they originate nearly half of all mortgages, but for non-bank lenders the figure would be closer to 95%. They are the main (sometimes only) distribution channel for non-bank lenders and regional banks,  who over the last twenty years have helped cut the interest margins big banks charge their customers from 4% to well under 2%. This competition from non-banks lenders has been an immeasurable win for consumers, but it simply would not have been possible without a mortgage broker distribution channel.
In fact, brokers were so good at delivering consumers a better deal from lenders outside the big four banks that by 2007 non-bank lender had 20 per cent of the mortgage market. Thanks to the GFC, and <a target="_blank" href="https://www.openforum.com.au/content/mortgage-exit-fees-why-abolishing-them-will-hurt-industry-kill-competition-and-enrage-consum" title="Mortgage exit fees">some cack-handed government policy</a>, just five short years later the big four banks now once again control around 90 per cent market share. Is this good for consumers?
Some journalists complain when the banks jack up their rates. But banks are only able to do this because competition has diminished. What would happen if commissions, and therefore, brokers disappeared entirely? Would banks pass on the cost saving to consumers in the form of lower rates? We know the answer. Brokers are a bulwark for consumers against complete bank dominance. If, or when, broker market share declines as a result of rising volumes to bank proprietary online channels, it's likely we'll see their rate margins return to the higher levels of the bad old days.
Like any industry, mortgage brokers are not perfect. And yes there are some genuine issues with commission-based incentives; Jessica rightly highlights bonus volumes as an area of concern. However, the industry has come a long way, is now fully-regulated with a high degree of compliance, and continues to serve the interest of consumers well. One day the online channel may take over and brokers might become extinct. But in the meantime, busy, stressed Aussies will continue to enjoy the convenience, choice, and interest savings that mortgage brokers provide, regardless of the twaddle good journalists even sometimes publish.
Darren Moffatt is owner and director of the mortgage broker business <a target="_blank" href="https://www.seniorsfirst.com.au/" title="Seniors First">Seniors First</a>. He is also CEO of <a href="https://www.housenet.com.au" target="_blank">Housenet.com.au </a>
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Mortgage brokers are not washing machine salesmen: Darren Moffatt

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The former ANZ Banking Group deputy chief executive Bob Edgar has called for tougher laws governing the non-bank lending sector following the collapse of Banksia and Provident Capital.
Edgar said it was “surely no accident” that Banksia chose to include the word “bank” in its name.
“Anything that has the word ‘bank’ in it or uses the word ‘bank’ in a prominent fashion is effectively purporting something about itself,” said Edgar in an interview with the Australian Financial Review.
Edgar says it is the responsibility of prudential regulator APRA to get the laws changed to prevent Banksia using such a name.
Banksia collapsed in October owing 3,000 small investors a combined $650 million while Provident Capital collapsed in July owing investors over $100 million.
Both Banksia and Provident Capital’s debenture funds come with no government guarantees.
ASIC announced on October 31 the setting up of an internal taskforce to look at the failure of Banksia and regulation of the wider Australian unlisted debenture sector.
Edgar, who is now the chairman of Centro Retail Australia after a 25 year career at ANZ, also had a go at federal treasurer Wayne Swan for urging borrowers to seek an alternative to their bank following interest rate decisions.
“The political process has to accept some of the blame that it has encouraged people to believe they are not getting a fair and reasonable risk- adjusted return from the banking sector and they should look elsewhere," he said.
Edgar also called on the major banks to take a “higher profile on corporate matters through leadership and much more engagement with politicians”.
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Rules governing non-banks need to be tightened: Bob Edgar

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The popularity of home renovation reality shows like The Block and The Renovators has encouraged more Australians to undertake their own renovations putting them at risk of deadly diseases caused by exposure to asbestos fibres, according to Asbestos Diseases Foundation of Australia (ADFA).
The ADFA is warning of a third wave of victims and their families as part of  Asbestos Awareness Week, which is running with the slogan:  “Don’t play Renovation Roulette!”
The first wave was those working in mining and manufacturing exposed to raw fibres followed by workers who used asbestos products in the workplace (the second wave).
According to the ADFA, the case of women suffering from mesothelioma (an incurable asbestos-related cancer), are rising with the ADFA expecting these to spike over the next 40 years unless “Australians start taking seriously the dangers of asbestos when renovating or maintaining their homes”.
“With DIY renovations increasing partly due to the popularity of home renovation and lifestyle television programs and magazines, those thinking about renovating or home maintenance must visit asbestosawareness.com.au to learn where asbestos can be found in the home and how best to manage it,” says professor Nico van Zandwijk, director of ADFA.
The ADFA believes reality renovation shows have a moral obligation to include "substantial warnings” about asbestos for viewers and claims they have let viewers down by not having warnings.
Viewers of hit series The Block were warned by presenter Scott Cam of the dangers of asbestos in <a target="_blank" href="https://homes.ninemsn.com.au/theblock/updates/8457681/scott-cam-asbestos-and-the-block">this video</a>.
“Asbestos is an absolute killer and if you're thinking of renovating, make sure you get your place checked out by professionals," Cam said "If you do find something, make sure those professionals remove it."
Channel 10’s <a target="_blank" href="https://therenovatorstv.com.au/start-renovating.htm">The Renovators</a> did not appear to have any prominent asbestos warnings on its website.
The ADFA’s asbestos concerns have been echoed by Archicentre, the building design, inspection and advice service of The Australian Institute of Architects, which is also warning of the deadly dangers of lead paint
David Hallett, from Archicentre said the real risk of exposure to asbestos fibres and dust occurs with the demolition, drilling or cutting of products containing asbestos and in the case of lead paint the burning, sanding or stripping of paint can produce dangerous toxins.
"Tens of thousands of renovations take place every year often with families living in the home during the renovation placing people at danger unless the renovation is carried out safely,” says Hallett.
"It is vital for everyone to understand that once you disturb asbestos there are extreme health risks involved for home owners and their families in relation to the diseases which can be caused by asbestos fibres."
"Anyone undertaking renovations and living in their home at the same time with their children needs to be well informed about the dangers and extremely careful about how asbestos and lead paint is managed by contractors who may be carrying out the renovation works."
Inhalation of asbestos fibres can cause serious illnessesincluding malignant lung cancer, mesothelioma, and asbestosis
Most homes built in Australian between 1945 and 1987 would have been constructed using asbestos as insulation in the roof.
A complete ban on asbestos-containing material in Australia was introduced in 1991.
According to the ADFA, if asbestos is left undisturbed, it generally does not pose a health risk.
However a study of mesothelioma cases carried out by Western Australian Mesothelioma Register (from 1960 to 2008) showed that over a four year period (2005 and 2008), 8.4% of all men and 35.7% of all women diagnosed with mesothelioma were home renovators with renovations and maintenance being the main cause of the disease in women.
The study also noted that the most prevalent non-occupational exposure of people occurred during simple home renovations, with mesothelioma patients reporting having drilled or sanded asbestos cement walls, lifted linoleum floors and used asbestos cement sheeting to build sheds and fences, laundries and simple extensions, often with exposure limited to a single activity.
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Popularity of home renovation reality television shows creating deadly asbestos health risk: ADFA

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After a “period of protracted weakness” a strong recovery in demand for residential land on the fringes of Sydney and Perth is being tipped by forecasters at BIS Shrapnel.
To meet this rising demand, BIS Shrapnel expects annual residential lot production in outer Sydney to more than double over the next five years from an average of 2,809 lots produced annually from 2007 to 2012 to 5,870 lots annually from 2012 to 2017.
Last week developer Devine announced its first return to the Sydney market in nine years, with plans for an apartment development in Turramurra.
A strong recovery is also anticipated for the outskirts of Perth, with residential lot production expected to rise from an average of 7,633 lots produced annually from 2007 to 2012 to 11,280 lots produced annually between 2012 and 2017.
A strong recovery is also tipped for the Gold Coast with smaller improvements on the Sunshine Coast and outer Brisbane.
Recent and Forecast Lot Production
<table border="1" cellspacing="0" cellpadding="0" width="370"><tbody>
<tr>
<td valign="top" width="139" nowrap>
City/region
</td>
<td valign="top" width="230" colspan="2" nowrap>
Average lots produced annually
</td>
</tr>
<tr>
<td valign="top" width="139" nowrap></td>
<td valign="top" width="125" nowrap>
2007-2012
</td>
<td valign="top" width="105" nowrap>
2012-2017  forecast
</td>
</tr>
<tr>
<td valign="top" width="139" nowrap>
Outer Sydney
</td>
<td valign="top" width="125" nowrap>
2,809
</td>
<td valign="top" width="105" nowrap>
5,870
</td>
</tr>
<tr>
<td valign="top" width="139" nowrap>
Outer Melbourne
</td>
<td valign="top" width="125" nowrap>
16,917
</td>
<td valign="top" width="105" nowrap>
12,340
</td>
</tr>
<tr>
<td valign="top" width="139" nowrap>
Outer Brisbane
</td>
<td valign="top" width="125" nowrap>
5,372
</td>
<td valign="top" width="105" nowrap>
5,560
</td>
</tr>
<tr>
<td valign="top" width="139" nowrap>
Gold Coast
</td>
<td valign="top" width="125" nowrap>
1,494
</td>
<td valign="top" width="105" nowrap>
2,280
</td>
</tr>
<tr>
<td valign="top" width="139" nowrap>
Sunshine Coast
</td>
<td valign="top" width="125" nowrap>
1,652
</td>
<td valign="top" width="105" nowrap>
1,820
</td>
</tr>
<tr>
<td valign="top" width="139" nowrap>
Outer Adelaide
</td>
<td valign="top" width="125" nowrap>
2,962
</td>
<td valign="top" width="105" nowrap>
2,320
</td>
</tr>
<tr>
<td valign="top" width="139" nowrap>
Outer Perth  (includes Mandurah)
</td>
<td valign="top" width="125" nowrap>
7,633
</td>
<td valign="top" width="105" nowrap>
11,280
</td>
</tr>
</tbody></table>
 Source: BIS Shrapnel
“The recent protracted weakness in the Sydney, Perth and Brisbane markets – and to a lesser extent the Gold Coast and Sunshine Coast markets – has created the conditions for an upturn,” says report series author and senior manager Angie Zigomanis.
“Low new dwelling construction has resulted in a rising underlying dwelling deficiency, while affordability has improved considerably due to the combination of the weakness in house and land prices and lower interest rates.”
In its third-quarter update released earlier this month, residential developer Australand notes that conditions remaining challenging in south-east Queensland but says activity is more positive in Sydney and Perth with it making good progress on sales targets.
While Australand says the market softened in the third quarter resulting in weaker sales “particularly for land in Melbourne’s growth corridors” it says the Sydney market continues to display “resilience supported by an ongoing structural undersupply of median-priced product”. 
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Strong recovery in demand for residential land anticipated in Sydney and Perth fringes: BIS Shrapnel

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The production of residential lots on the outskirts of Melbourne is forecast to fall 27% annually over the next few years as demand remains subdued, according to a new report by BIS Shrapnel.
The research firm is forecasting annual lot production to fall from an average of 16,917 lots annually from 2007 to 2012 to just 12,340 between 2012 and 2017.
A 22% decline is anticipated for outer Adelaide, with average lot production of 2,962 lots between 2007 and 2012 falling to 2,320 over the next five years.
Recent and Forecast Lot Production
<table width="370" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td valign="top" nowrap width="139">
City/region
</td>
<td valign="top" colspan="2" nowrap width="230">
Average lots produced annually
</td>
</tr>
<tr>
<td valign="top" nowrap width="139"></td>
<td valign="top" nowrap width="125">
2007-2012
</td>
<td valign="top" nowrap width="105">
2012-2017 forecast
</td>
</tr>
<tr>
<td valign="top" nowrap width="139">
Outer Sydney
</td>
<td valign="top" nowrap width="125">
2,809
</td>
<td valign="top" nowrap width="105">
5,870
</td>
</tr>
<tr>
<td valign="top" nowrap width="139">
Outer Melbourne
</td>
<td valign="top" nowrap width="125">
16,917
</td>
<td valign="top" nowrap width="105">
12,340
</td>
</tr>
<tr>
<td valign="top" nowrap width="139">
Outer Brisbane
</td>
<td valign="top" nowrap width="125">
5,372
</td>
<td valign="top" nowrap width="105">
5,560
</td>
</tr>
<tr>
<td valign="top" nowrap width="139">
Gold Coast
</td>
<td valign="top" nowrap width="125">
1,494
</td>
<td valign="top" nowrap width="105">
2,280
</td>
</tr>
<tr>
<td valign="top" nowrap width="139">
Sunshine Coast
</td>
<td valign="top" nowrap width="125">
1,652
</td>
<td valign="top" nowrap width="105">
1,820
</td>
</tr>
<tr>
<td valign="top" nowrap width="139">
Outer Adelaide
</td>
<td valign="top" nowrap width="125">
2,962
</td>
<td valign="top" nowrap width="105">
2,320
</td>
</tr>
<tr>
<td valign="top" nowrap width="139">
Outer Perth  (includes Mandurah)
</td>
<td valign="top" nowrap width="125">
7,633
</td>
<td valign="top" nowrap width="105">
11,280
</td>
</tr>
</tbody></table>
 Source: BIS Shrapnel
The forecast comes as Melbourne house-and-land developers continue to offer incentives in an effort to encourage buyers, despite <a target="_blank" href="https://www.propertyobserver.com.au/land/price-melbourne-land-at-its-true-value-and-buyers-will-come-australand/2012102357384">warnings from the likes of Australand's Rob Pradolin </a>that these only distort the market and can create financing problems for buyers.
“These two markets experienced the strongest residential rebound after the global financial crisis (GFC), and the consequent combination of high levels of land production and solid land price growth has meant that there is little pressure on the demand for new houses and land,” says report series author and senior manager Angie Zigomanis.
Victorian residential developers have also lost the added sweetener of the $13,000 new home bonus, which was available to first-home buyers and ended in June. According to BIS Shrapnel, the bonus has pulled forward demand.
In its annual report, developer Peet– which has 19% of its land bank in Victoria – notes that the Victorian residential market “weakened sharply” during the year, with the result that it has “restrained capital expenditure on some key Victorian projects”.
Peet has deferred development in two large, company-owned projects in Victoria until there are signs of improvement and also notes that Victorian buyers have had difficulty securing finance with the market having reached “the top of its cycle”.
“The declines in lot production in the Melbourne and Adelaide markets reflect activity falling from unsustainable record levels, while the weakness in the other cities were the result of excess supply, weak underlying demand, and constrained affordability after land prices had peaked in earlier years,” says Zigomanis.
“These issues are now starting to wash through, with the recent declines in interest rates expected to be the trigger for a pick-up in demand into 2013.
“Conversely, the factors that drove the downturns in the other cities now exist in Melbourne and Adelaide and it will be their turn for demand for land to experience a period of weakness,” he says.
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Demand for residential land to remain subdued on Melbourne and Adelaide fringes till 2017: BIS Shrapnel

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There are occasion when buying an apartment without a car parking space would make good sense, says David Poppleton, head of residential projects in NSW for Savills.
Poppleton says it’s very much a “case by case” issue depending on where the apartment is located relative to public transport and the city and the type of alternative property the investor is considering.
"I'd rather by an apartment (one bed or studio) in Potts Point, Surry Hills, Ultimo, etc, without a car than the same  apartment with a car space anywhere outside a five-kilometre radius of the city," he says.
He tells Property Observer it is perhaps “misguided or even slightly negligent to suggest” that investors dismiss the right property without a car space for one that does have a car space if it does not stack up as a better investment.
His comments follow property investment advisor <a href="https://www.propertyobserver.com.au/landlords/dont-invest-in-apartments-without-a-car-park-monique-sasson-wakelin/2012112258047" target="_blank">Monique Sasson Wakelin</a> writing that a car space is “a must” and that investors should not handicap themselves by buying a property “restricting the pool of potential tenants and future owners”.
Sasson Wakelin based her comments on census 2011 data, which shows that more than four-fifth (81%) of households own one or more cars.
Poppleton agrees that it would be “flawed advice at best” if an agent suggested buying a two-bedroom apartment away from transport and five kilometres from the city that did not have a car space.
But he says suggesting that investors avoid all apartments without car spaces “ignores the statistics, affordability, and the government’s growing obsession to reduce the number of cars in every residential project in prime areas”.
Poppleton also points to other statistics unearthed by Wakelin that show that in the <a target="_blank" href="/news">Sydney </a>CBD and inner suburb of <a target="_blank" href="/news">Haymarket  </a>67% and 62% respectively of apartment households do not own cars, which suggest that there are locations where a car space would not be  priority.
He says if it came to the choice of buying a studio in the Sydney CBD versus a period unit in a prime urban area of Brisbane, he would put his money on the Sydney studio being a better investment.
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Investing in an apartment without a car park can make good sense: Savills’ David Poppleton

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All 26 economists surveyed by Bloomberg expect the RBA to cut the cash rate further by mid-2013, with sentiment shifting somewhat towards a RBA cash rate cut on December 4.
In the latest poll carried out on Friday, 15 out 26 economists are tipping the cash rate to fall to 3% on December 4.
<a href="/news">In last week’s poll </a>12 out of 25 economists tipped the RBA to cut the cash rate.
The major banks have not shifted their positions, with the Commonwealth Bank and NAB tipping the RBA to hold firm at 3.25% and ANZ and Westpac expecting one more rate cut before Christmas.
ANZ was the only one of the major banks to correctly tip the RBA to leave the cash rate on hold on Melbourne Cup Day.
If the RBA does decide to leave the cash rate on hold, the next meeting is in February – the RBA does not meet in January.
Data out this week includes October new home sales figures from HIA and third-quarter construction figures, which may give clues to any recovery in the new residential building sector, and RBA private sector credit data, including data on mortgage lending.
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Majority of economists tipping a December RBA cash rate cut, but all say there's one more cut left: Bloomberg

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ASX-listed residential developer Devine will return to the NSW market after an absence of nine years with plans for an apartment development in Turramurra.
At Devine’s AGM on Friday, managing director and CEO David Keir announced Devine had secured an option over a 5,900 square metre site at Turramurra on Sydney’s upper north shore, which has been earmarked for an 86-apartment development.

In his address, Keir also said “lead indicators present a strong case that the Australian residential housing market is and will continue to recover over the next 12 months".
Keir said lower interest rates had contributed to improved housing affordability while other positive factors pointing towards a recovery include “low vacancy rates in most capital cities, steady unemployment figures, rising rental costs, increased immigration levels and wage growth”.
The Sydney development is expected to commence in about 12 months’ time, pending achievement of appropriate planning approvals.
A spokesperson for Devine tells Property Observer, the last time Devine had a presence in NSW was under the Devine Pioneer Homes brand, developing house and land packages.
"The operation was shut down due to the lack of available developable land at the time. It was an industry-wide problem with the NSW government restricting the release of land.. after we closed it down Devine started focusing on the Queensland market and then we it wanted to expand again we went to Victoria because it was a much better environment at the time."
“It is the first time in nine years that Devine will again have operations in Australia’s most populated State,” Keir told shareholders.
In his address, Devine chairman Peter Dransfield said one of the company’s growth priorities for the year ahead would be to re-entering the Sydney market.
Keir also announced a number of milestones including the settlement of 425 apartments at Devine’s signature Hamilton Harbour project and deliver of the first two residential towers at the same project by Devine Constructions, ahead of time and under budget.
Devine has also began marketing three master planned communities including in the Queensland mining town of Gladstone, Queensland; Bacchus Marsh in Victoria and Evanston Gardens in Adelaide, which will deliver over 5,000 new residential allotments over the years ahead.
“Strategically, we will continue to focus on diversifying our operations by entering new markets and developing new products while leveraging our strengths in core markets to grow market share,” said Keir.
He also announced that Devine had sold a Brisbane CBD development site at 111 Margaret Street “above the current book value of the asset” with the price not disclosed.
Devine recorded an underlying operating profit after tax and before impairments of $11.1 million for the year to June 30.
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Devine to develop first NSW project for nearly a decade with brighter residential outlook

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Residential developers continue to offer incentives and rebates to encourage buyers of house and land packages and off-the-plan apartments.
These include offers from developers to pay mortgage repayments for a period of time, offers to pay the 5% builder deposit, discounts off the retail price of packages and cash rebates.
Developers increasing reliance on these incentives comes as the outlook for new detached housing remains weak with the latest building approval figures – forward indicators from the ABS show that approvals for detached houses rose just 1.2% from August to September and are down 1.8% year-on-year.
In contrast, apartment approvals rose 17.9% over September to be up 41.6% year-on-year.
Prospective buyers of house and land packages and off-the-plan apartments that come with rebates and incentives could face the possibility of having to raise additional financing due to lenders discounting the rebates from their valuations.
Here’s what’s currently being offered by developers across the country
$24,000 +from Devine
Devine is offering to <a href="https://www.devinemortgagebreak.com.au/" target="_blank">cover mortgage repayments</a> for up to 12 months for buyers of some of its home and land packages. The offer expires on November 30. The fine print says the repayments must be the minimum required repayments on a 30-year loan and interest only during construction. Devine's contribution will not continue for longer than 6 months after house settlement or 12 months after land settlement, whichever occurs first.  Repayments on a $360,000 loan with a 10% deposit over a 30 year term equates to monthly repayments of around $2,000. 
Up to $25,000 from Carlisle Homes at Aston
Carlisle Homes are offering house and land buyers a $15,000 discount for selected house and land packages at its <a href="https://www.carlislehomes.com.au/files/specialOffers/Aston_32k_Flyer.pdf" target="_blank">Aston development in Craigieburn</a> on Melbourne’s northern fringe. There is an extra $10,000 offered for buyers who purchase the Seville 29 or Pavillion 44 on display.
Up to $25,000 from Villawood
Villawood will pay the <a href="https://www.villawoodproperties.com/" target="_blank">5% builders deposit on new homes</a> in communities in Geelong and Melbourne up to a value of $25,000. The offer is for a limited time, but no expiration date is given.
 
Up to $50,000 off retail price from Porter Davis
As part of its <a href="https://www.porterdavis.com.au/content/pdfs/SpringStimulus_lifestyle.pdf" target="_blank">spring stimulus campaign</a>, Porter Davis is offering a $32,000 discount off the retail price of selected single-storey lifestyle homes and $50,000 off selected double-storey lifestyle homes.
 
From around $13,000 - Meriton to pay stamp duty on apartments
<a href="https://www.meriton.com.au/our-services/finance-services/stamp-duty-concessions-and-grants/" target="_blank">Apartment builder Meriton</a> is offering to pay the stamp duty on all apartments less any applicable government grants. The offer excludes apartments at Oceanvale (Warriewood) and Cascada (Sylvania). Prices for Meriton apartments start from around $400,000 which equates to stamp duty of $13,500 in NSW and $16,300 in Queensland
Double deposit up to $10,000 from Devine
Devine is offering to <a href="https://www.devine.com.au/contact-us.aspx?double=true" target="_blank">double a buyer’s deposit</a> on house and land packages up to a maximum of $10,000.The purchaser will still need to provide funds or obtain finance for the full balance purchase price in order to settle. 
Up to $10,000 in rebates from Satterley
<a href="https://www.satterley.com.au/www.satterley.com.au/go/special-rebate-offer/special-rebate-offer" target="_blank">WA developer Satterley</a> is offering rebates – cash and stamp duty – on house and land packages in a selection of its residential communities from $5,000 to $10,000.
If you are offering an incentive to buyers, send an email to <a href="mailto:news@propertyobserver.com.au">news@propertyobserver.com.au</a> and we will include it on this list.
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From $10,000 to $50,000: Residential developers tempt buyers with incentives

<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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