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Brisbane-based firm Resolution Research says it stands by its 2011 census-derived research that households in Dutton Park, just south of the Brisbane CBD, are spending more than half (54%) of their income on repaying their mortgage and is thus has the highest level of mortgage stress in inner Brisbane.
The research used 2011 census data to compare weekly household income with monthly mortgage repayments to determine what percentage was going to paying off the home loan.
<a target="_blank" href="/news">Dutton Park topped the list</a>, followed by <a target="_blank" href="/news">West End </a>(44%) and then <a target="_blank" href="/news">Woolloongabba </a>(41%).
However Michael Matusik, director of property advisory firm Matusik Property Insights, rubbished the research. In a <a target="_blank" href="https://matusikmissive.com.au/2012/10/24/wrong/">lengthy rebuttal article on his website</a> he said that census data revealed that the ratio of mortgage payments to household income in Dutton Park averaged just 17%, meaning very little mortgage stress in the suburb.
“We stand by our analysis, which was correct at the time of the 2011 census,” Diana Howes, managing director of Resolution Research, tells Property Observer.
“We have reviewed the alternative methodology put forward [from Michael Matusik] and state as follows:
“'Our analysis has been thorough and correct at the time of the 2011 census, we have employed a methodology which has demonstrated itself to be accurate.  As with all economic data there are always varying opinions by analysts relative to outcomes.  We support our work and also the views of our peers.”
Howes directed Property Observer to the following page of census data, which shows the median <a target="_blank" href="https://www.propertyobserver.com.au/https://www.censusdata.abs.gov.au/census_services/getproduct/census/2011/quickstat/305011187?opendocument&amp;navpos=220">weekly household income at $989 and median monthly mortgage repayments of $2,167</a>.
Property Observer notes that on the same census 2011 data page, the data shows that only 3.8% of <a target="_blank" href="/news">Dutton Park</a> household have mortgage payments that are 30% or more of household income – the common definition of mortgage stress.
According to Matusik's calculations the average household income of a mortgage holder in Dutton Park is “$2,920 and not $989 as suggested, meaning that the real mortgage to relevant household income ratio is just 17%”.
“You have to dig deeper than the headline results to find the correct answers,” he said.
“It takes a lot of effort to scroll down from page one to page six of the seven pages of the 2011 Census QuickStats to find out the tenure profile and proportion of rent/mortgage paid by households in each location.
“It does actually take some time to then visit the expanded community profile, and to visit tables X14 to X16 to work out the actual household incomes for those paying a mortgage in each location."


<hr class="system-pagebreak">
He provided Property Observer with the following explanation for how he obtained the $2,920 income figure, referencing the <a target="_blank" href="https://www.propertyobserver.com.au/https://www.censusdata.abs.gov.au/census_services/getproduct/census/2011/communityprofile/305011187">more detailed Dutton Park community profile tables</a>
"Dutton Park, Brisbane
<ul>
<li>584 private occupied dwellings</li>
<li>$989 weekly household income or $51,428 per annum</li>
<li>$2,167 monthly mortgage or $26,004 in annual mortgage payments</li>
<li>Divide $26,000/$51,500 = 51% - this is what Resolution have done</li>
</ul>
<ul>
<li>BUT 81% of households don’t have a mortgage</li>
<li>336 rent – 58% of households</li>
<li>121 own, but have paid out the mortgage – 21% households</li>
<li>109 pay a mortgage – 19% IT IS THIS 109 HOUSEHOLDS THAT WE ARE INTERESTED IN, I.E WHAT THEIR WEEKLY INCOME IS</li>
</ul>
<ul>
<li>The table below is how one works out income by tenure or household types – it is sourced from tables X14, X15 and X16 as per missive – you have to work out the weighted average incomes yourself.</li>
</ul>
<ul>
<li>By doing so you find that the 109 households that have a mortgage in Dutton Park earn on average about $2,920 per week, or $152,000 per annum.  This equates to about a 17% mortgage to relevant income level."</li>
</ul>
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/11/dpark.gif"><img src="/images/stories/2012/11/dparkthumb.gif"></a>
Source: ABS
Matusik claims that just by looking at the existing housing and cars in the driveways in Dutton Park, you can tell that home owners are “earning incomes well into triple figures”.
“But if you never go outside the 2011 census also tells you that 96% of households with a mortgage in Dutton Park pay less than 30% of their income towards a mortgage.”
Matusik has since provide fresh commentary on the Dutton Park research with<a href="https://matusikmissive.com.au/2012/11/21/for-the-record-2/" target="_blank"> this posting on his website</a>, which says that his assertions are not a matter of opinion but "plain fact".
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Dutton Park mortgage stress debate continues as Resolution Research stands by figures

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American frozen yoghurt chain Tutti Frutti has leased space in the Target Centre at 236 Bourke Street adding to the mini-explosion of frozen yoghurt and ice-cream chains taking up leasing space in the Melbourne CBD and inner suburbs over the past year.
The Tutti Frutti lease is also part of a wider trend of take-away shops, cafés and restaurants claiming a bigger share of the Melbourne CBD retail mix as clothing retailers struggle.
According to Knight Frank, the number of cafés and restaurants in the CBD has risen from 796 to 1,193 over the past 10 years with the trend driven by larger premises being subdivided into smaller spaces better suited to food operators as well as their being greater demand due to their being more residential dwellers in the city.
CBRE estimates that food operators make up more than a quarter (27%) of the CBD tenancy mix with the hotspots being Bourke Street, Swanston Street, the Degraves Street arcade and Melbourne Central shopping centre.
Adding to the growing pie of food operators, Australand recently announced the list of retailers secured for its 357 Collins Street development, which is nearing completion.
Seven out of the eight are food outlets including Italian fresh pasta and pizza chain Vapiano (which will occupy the largest retail tenancy of 800 square metres), trendy hamburger joint huxtaburger, Vietnamese eatery Roll’d: Asian cuisine specialist O’Bento, sandwich retailers Nashi and Basic Bites and Thai takeaway restaurant Rock the Wok.
Tutti Frutti's lease covers a 45 square metre shop at an annual rental of $2,000 per square metre over five years.
The lease was negotiated by the CBRE retail services team of Zelman Ainsworth and Max Cookes. "Our team has been working with a significant number of popular frozen yoghurt retailers that have requirements to open new stores within some of Melbourne’s most popular retail precincts before the summer,” says Ainsworth.
Earlier this year organic frozen yoghurt and café chain Cacao Green leased two new shops at 235 Bourke Street and 835 Burke Road in Camberwell. American ice cream chain Ben and Jerry’s secured its first retail location in Victoria at 166 Chapel Street, Windsor while another American dairy dessert chain Tasti D-Lites securing their first store in Victoria at 450 Chapel Street, South Yarra. Australian-based frozen yoghurt bar Igloo Zoo leasing a new store in the Chadstone shopping centre while another Australian owned and operated frozen yoghurt concept Yo Chi opening its first store at 292 Carlisle Street, Balaclava.  “There are a number of new and existing exciting food concepts that have been expanding over the 24 months which have proven to be resilient despite reports of difficulties in the retail market,” says Cookes.
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Melbourne going Tutti Frutti for take-away foodie tenants

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The Australian Tax Office (ATO) is warning trustees of self-managed superannuation funds (SMSFs) to be cautious when investing in property.
Its warned arrangements that are “deliberately entered into to get around the law” can result in the fund's trustees being disqualified, facing civil penalties and even criminal charges.
The ATO has also joined ASIC by warning of those individuals and companies promoting property investments to SMSF trustees.
<a target="_blank" href="/news">Last week ASIC</a> revealed to The Australian that it is undertaking “limited surveillance” of financial advisers and accountants over concerns that property spruikers are encouraging investors to set up self-managed super funds purely as vehicles for "dodgy" property investments.
Acting tax commissioner Bruce Quigley says he is concerned people are using their SMSF to invest in property without fully understanding their obligations under the law or some people are seeking to take advantage of certain types of arrangements.
 "We have observed that some arrangements are deliberately entered into to get around the law, which can result in the fund's trustees being disqualified, facing civil penalties or even facing criminal charges.
“Those marketing properties to SMSF trustees as part of such arrangements could be referred to ASIC,” he says.
Quigley says investing in property can be a confusing area for some people.
"The fine details are important and trustees need to be sure that property is the right investment for their SMSF and that the arrangement is legal,"
"We have also seen instances where holding trusts have not even been established at the time the contracts to acquire are signed.
“In other instances the title of the property is held in the individual's name rather than the trustee of the holding trust. Another common mistake is gearing in a related unit trust, which is not allowed under the law," he says.
"Some of these arrangements, if structured incorrectly, cannot simply be restructured or rectified. The only option may be to unwind the arrangement which could involve forced sale of assets at an inconvenient time. This could be very expensive for the fund with potential stamp duty and tax consequences."
"I urge trustees to get reliable, independent advice when making investment decisions and to obtain advice from us if they are contemplating entering into these sorts of arrangements. The responsibility for ensuring their SMSF complies with the law rests with them," says Quigley.
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Australian Tax Office joins ASIC by warning SMSF trustees on illegal property investment arrangements

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A higher-than-expected rise in inflation over the September quarter and an unexpected pick up in new dwelling prices were among the reason the RBA left the cash rate unchanged at 3.25% on Melbourne Cup Day, minutes of the November monetary policy meeting show.
However, an easing bias remains firmly in place, with RBA minutes revealing that members “considered that further easing may be appropriate in the period ahead” but preferred to hold, with “earlier rate cuts continuing to work their way through the economy and “further effects of these changes” yet to be observed.
HIA economist Geordan Murray tells Property Observer the statement that "new dwelling prices had picked up unexpectedly" refers to rising prices for new dwellings "in the context of a discussion of broader inflation".
"Therefore the comment is likely to be a reference to the 'new dwelling purchased by owner-occupier' item of CPI – a sub-component of the housing component of CPI," he says, reflecting "movements in the price of new homes (excluding land) and major improvements to existing homes".
"In the September 2012 quarter this component increased by only 0.9%t (up by 1.2% over the year). Similar movements were observed in the Producer Price Index for materials used in home building and the Project Home Price Index," the minutes say.
The minutes show that with "prices data for the September quarter slightly higher than expected and recent information on the world economy slightly more positive, the board judged that the stance of monetary policy was appropriate for the time being".
As with the post-decision statement by RBA governor Glenn Stevens on November 6, the minutes note signs of improvement in the housing market.
"There were tentative indications that housing activity may be reaching a turning point. Over recent months, the number of private residential building approvals had increased, as had dwelling prices, and auction clearance rates in Sydney and Melbourne had continued to rise," say the minutes.
The RBA also notes that most lenders have passed on 20 basis points in rate cuts to borrowers following the 25-basis-point cash rate cut decision in October, but also that lenders have a greater reliance on retail deposits.
"The average interest rate on outstanding housing loans was now about 75 basis points below the post-1996 average, while rates on small and large business loans were 75 and125 basis points below average. Competition for deposits remained strong, with deposit funding accounting for more than half of total bank funding," says the RBA.
The minutes record that the rise in new dwelling prices, grocery prices and health prices were partly offset by a "softening in the inflation of rents in the quarter and subdued rises in the prices of a range of market services".
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Unexpected pick-up in new dwelling prices among reasons for November rate hold, but easing bias remains: RBA minutes

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Property investors with small budgets should consider investing in larger regional towns where prices are more affordable, but “avoid one-industry conurbations such as mining or resort towns” according to investment advisor Monique Sasson Wakelin.
In her latest blog post, Monique Sasson Wakelin says a regional town investment may be an option for prospective investors whose budgets don’t stretch to the $350,000 threshold that will buy “an entry level investment grade one bedroom apartment in an inner suburb of most of our capital cities, with a little more required in Melbourne and a fair amount more in Sydney”.
She says investors should consider regional cities that have a larger population and a diverse range of economic activity.
Sasson Wakelin says good regional options for budget-conscious investors are Newcastle and Wollongong in NSW and Geelong, Ballarat, and Bendigo in Victoria.
However, there are risks with investing in regional towns while the returns may not match those attainable in the bigger capital city markets.
“Be aware that due to the compromise in location, you are unlikely to attain the capital growth in a regional city that you can expect from the capital,” says Sasson Wakelin.
“The aim should therefore be to pay off debt quickly. With the acquired equity, you can then use this first property as a stepping stone into a capital city market.”
Investors should focus on property close to the town’s CBD, often within 1 kilometre of centre.
“A word of warning. It is much easier to pick a quality asset in a capital city than in a regional centre.
“Follow the fundamentals for inner suburban investment and the risk is low. An investment in a regional town is far more problematic,” she says.
Investors trying to weigh up whether to stick with the city or consider a more affordable regional investment option next year should sign up for <a href="/news">Property Observer’s free webinar with Terry Ryder: Regions versus capital cities - where to invest in 2013?</a> The webinar takes place on December 6 at 12.30.
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Regional towns a budget property investment option but avoid one-industry mining towns: Monique Sasson Wakelin

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The Sydney rental market tightened noticeably over October, with the vacancy rate falling 0.6 percentage points to 1.9%, according to the latest Real Estate Institute of NSW (REINSW) vacancy rate survey.
It was the second consecutive month that the Sydney vacancy rate has tightened after the middle and outer suburbs reached a balanced market position of 3% in August.
The vacancy rate is tightest in the inner-city suburbs (within five kilometres of the CBD), where the vacancy rate fell by 0.3 percentage points to just 1.6%.
However, the rental market is also tight in the middle suburbs (2.1%) and outer suburbs (2.2%) of Sydney, which recorded greater falls of 0.7 and 0.8 percentage points respectively, indicating a growing number of people seeking more affordable rental accommodation further out of the city.
In contrast the vacancy rate eased in the major regional rental markets – the Hunter and the Illawarra – though both still favour landlords over tenants.
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<a href="/images/stories/2012/11/reinswnov20.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/11/reinswnov20thumb.gif"></a>
The Newcastle vacancy rate rose slightly from 1.4% to 1.6% but remains as tight as the inner-Sydney market.
The rental situation in Wollongong eased markedly over October from 2.1% to 2.6% but is still well below the 3.4% vacancy rate in August.
REINSW president Christian Payne says that despite recent increases in some areas, “tenants will find it difficult to secure a property in the foreseeable future”.
“The government needs to incentivise investment in this critical area as a way to tackle the rental crisis that is now entrenched in NSW. “Action is required to stimulate investment in the residential property market. Until we see such action, there will be continue to be growing numbers of people competing for a smaller number of properties.”
Across NSW, <a target="_blank" href="/news">Coffs Harbour</a> had the highest vacancy rate in NSW at 3.6%, but did experience a fall of 0.1 percentage point fall over October. The vacancy rate almost doubled in rural Murrumbidgee<a target="_blank" href="/news"> </a>from 0.8% to 1.4%, but it remains the area in NSW with the lowest vacancy rate.
The results are based on survey responses covering 137,532 residential rental properties.
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Sydney has entrenched tight rental market crisis but vacancy rate eases in Hunter and Illawarra: REINSW

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Victorian construction industry unions are threatening to quit industry super fund Cbus over its ties with construction giant Grocon.
The unions threatening action include the Construction, Forestry, Mining and Energy Union (CFMEU), which is currently locked in a $10.5 million legal battle with Grocon over its blockade of a number of Melbourne projects in August.
The other union named by the Australian Financial Review is the Electrical Trades Union.
The threats from the unions came just ahead of the Victorian Supreme Court today dismissing the CFMEU's application for a stay of Grocon's damages case against the union and ordered that CFMEU pay Grocon's court costs for the application at the determination of the proceeding.
"Grocon is pleased that its rights to seek a fair reckoning for the CFMEU’s blockades in August and September 2012 remain unhindered," says Grocon spokespeson Michael Zorbas.
The unions have called for a meeting with Cbus chairman (and former Victorian premier) Steve Bracks and Cbus chief executive David Atkin to seek an explanation of the superfund’s ties with Grocon and its ethical standards and policies.
Cbus is the industry super fund for the building and construction industry, but according to the AFR, the unions are considering Brisbane-based BUSSQ Building Super as an alternative.
BUSSQ has around $2 billion in member super funds under management compared, with the $18 billion managed by Cbus.
The CFMEU is represented on the Cbus board with three seats: Rita Mallia,  president, CFMEU Construction and General Division (NSW divisional branch), Dave Noonan, national secretary, CFMEU Construction and Frank O’Grady, assistant national secretary of the CFMEU.
Cbus has a $2 billion property development arm – Cbus Property – which invests large building projects, some of which are being built by Grocon, according to the AFR.
None of the current major commercial projects listed on Cbus Property appear to involve Grocon and the most recent annual report does not include a mention of the building group.
Grocon built the ultra-modern 1 Bligh Street office tower in the Sydney CBD, which was jointly developed and is jointly owned by Cbus Property and Dexus.
Tensions between the CFMEU and Grocon continue to simmer.
The November issue of CFMEU’s Hardchat Express mentions that it won a “significant backpay” for Grocon employees and subcontractors on a project in Footscray after the Victorian Building Industry Disputes Panel found that employees should have been paid $4.10 per hour rather than $3.70 per hour.
The newsletter also mentions that the CFMEU “remains in dispute with Grocon over safety and workplace reps".
“These incidents show how vital it is that the Union continues to fight until  workers on Grocon sites have full safety rights.”
 
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Victorian construction unions threaten to pull super funds from Cbus over ties with Grocon

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Industry super fund AustralianSuper says it is on the “cusp” of rolling out its strategy to double its property investment portfolio to $9 billion over the next four years following the appointment of  a research manager and an investment manager.
Plans to double its property investment holdings were announced by <a target="_blank" href="/news">fund chairwoman Elana Rubin</a> in March this year.
The super fund, one of the largest in Australia with $46 billion in funds under management, has also indicated that it will target acquiring offices and shopping centres.
Its strategy is part of a growing trend for large industry super funds to increase their exposure to direct commercial property investments as a way to diversify their portfolios and offer more choice to their members – and to counter the loss of members who are setting up self-managed super funds, which can acquire property in their own right.
However, unlike another<a target="_blank" href="https://www.propertyobserver.com.au/commercial/super-fund-cbus-mulling-direct-property-investment-for-members/2012111257785"> industry super fund Cbus</a>, which is considering allowing its members to invest directly in property owned and managed by its property subsidiary, AustralianSuper will not get involved in developing new projects.
As part of its rollout of the new strategy, the super fund’s head of property, Jack McGougan, is currently in the process of appointing a research manager and senior investment manager to build and manage new local and international relationships reported the Australian Financial Review.
Their roles will be to ensure that portfolio management decisions are increasingly made in-house while property and asset management will remain mainly out-sourced – the Queensland government’s QIC and unlisted property fund manager ISPT will continue to manage the majority of AustralianSuper's property assets.
The fund will focus on acquiring office and retail assets with a “slight bias” towards super-regional shopping and shopping centres in the CBD.
<a target="_blank" href="https://www.propertyobserver.com.au/retail/new-york-based-blackstone-group-buys-top-ryde-mall-for-%24341-million/2012111957931">Yesterday’s acquisition by Blackstone</a> of the Top Ryde City shopping centre for $341 million would likely be the type of asset sought by the fund.
In the office space, the fund will target premium and A-grade buildings in the capital cities.
For more on where property fits into your wealth-creation portfolio, sign up for our free webinar on <a target="_blank" href="/news">Thursday, November 29 at 12.30.</a>
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AustralianSuper to target offices and shopping centres in quest for $9 billion property portfolio

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Hotels have delivered the best total returns for commercial property investors over the past 12 months to September despite a marked decline over this period due to falling CBD room rates, according to the latest Australian Commercial Property Index compiled by the Property Council of Australia and IPD (Investment Property Databank).
The index tracks the performance of over 1,600 commercial property assets held by unlisted property trusts, REITs and government-owned commercial buildings. Annual total returns for the hotel sector fell by 620 basis points over the year to September, but the sector still continues to outperform offices, retail and industrial assets with an annual total return of 11.4%.
Click to enlarge
<a href="/images/stories/2012/11/ipdnov20.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/11/ipdnov20thumb.gif"></a>
“The softening was driven by a decline in average room rates across major CBD hotel markets,” says IPD.
The office sector was the most stable sector over the year to September 2012, showing a slight decline of 30 basis points over the year to record a total return of 10.1%, “predominantly caused by weak demand linked to a soft labour market”.  Retail property was the poorest performer of the property sectors, posting a significant decline of 140 basis points over the year to post an annual total return of 8.8%.  “Weakness in returns was driven by ongoing softness in retail spending and general consumption,” says IPD. Industrial sector returns declined moderately by 50 basis points to post an annual total return of 9.8%.  “Industrial property continues to be supported by a strong income yield, which insulates the sector from capital declines,” says IPD. Across all sectors, IPD’s commercial property index generated a total return of 9.7% for the year ending September 2012, with 7.5% of this coming from an income return (predominantly rental income) and 2% from capital growth.  This was slightly lower than the previous quarter’s total annual return of 10% and down on the 10.6% total return achieved for the year to September 2011. Commenting on the latest quarterly results, Peter McGuinness, research manager of IPD in Australia and New Zealand, says below-trend macroeconomic activity has resulted in softer capital growth and lower total return for the broader Australian property market.  “Looking forwards, the market is exposed to downside risk with continued slowing in China and a moderation in the mining boom, which is likely to result in modest growth over the short to medium term. “The core CBD office markets of Sydney and Melbourne have been negatively impacted by sluggish employment growth and weak net take-up of space, translating into weaker capital growth and lower total returns.  “The non-core CBD office markets of Perth and Brisbane are the current outperformers, but with a slowing in the resource sector, both markets are heavily exposed to downside risk. “In the retail sector, super and major regional shopping centres experienced the largest decline in returns as they were negatively impacted by weakness in discretionary spending.  “Conversely, neighbourhood shopping centres, which are anchored by supermarkets, have been supported by stable food retailing. With their high income yield, neighbourhood centres are expected to outperform larger format centres over the next twelve months.”  “The industrial sector continues to offer an attractive yield play for investors seeking a strong income stream. With capital growth across the broader market expedited to remain soft, a competitive income yield makes industrial property an attractive investment option,” says McGuinness
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Declining hotel returns still offers best reward for investors: IPD

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An attractive unoccupied commercial building in the Brisbane coastal suburb of Sandgate dating back to the 1930s has been listed for auction, with price expectations starting from $400,000.
It could fit nicely into the portfolio of a small investor or SMSF portfolio or could appeal to a business looking to own its own premises.
Located at <a target="_blank" href="https://www.realestateview.com.au/Real-Estate/1-loudon-street-sandgate/Property-Details-buy-commercial-4653913">1 Loudon Street</a>, <a target="_blank" href="/news">Sandgate</a>, the 130-square metre property is split over two levels and has previously been host to a bank, a hotel and a boarding house.
<img src="/images/stories/2012/11/loudon.jpg">
It stands at the end of a fork comprising Loudon Street and Seymour Street and is a short walk from the Sandgate train station.
It last sold in 1997 for $200,000 but has remained within the same family.
It has the potential to be occupied or leased as offices or retail premises and comes with three partitioned offices, a boardroom and a reception.
The premises are being marketing by Lawrence Temple and Hudson Dale of Raine &amp; Horne Commercial Brisbane North, who tell Property Observer they have received a significant number of enquiries since the start of November.
The land area is 167 square metres and offers two car spaces.
The property will be auctioned on December 5 at 11am.
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Two-storey 1930s commercial building in Sandgate, Brisbane has $400,000 auction hopes

<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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