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Murarrie, a semi-industrial suburb on the southern banks of the Brisbane River about eight kilometres east of the city, has been Brisbane’s best-performing detached suburban housing market over the past year, according to the latest figures compiled by the Real Estate Institute of Queensland (REIQ).
House prices in Murarrie, where News Limited prints the Courier Mail and Sunday Mail, have risen 9.6% over the year to September to a median of $509,500.
In comparison, Brisbane house prices, while gaining 1.6% over the September quarter rising to $508,000 are still down 1.9% year-on-year to a median just below $510,000.
According to murarrie.com, the suburb has until recently consisted of light industrial development, but its proximity to the city has made it more attractive to office and residential developments.
The suburb is serviced by buses and trains into the city, while it takes about 15 minutes by car to get to the city.
The stock of houses is a mix of post-war weatherboard and chamferboard cottages, tin roof houses and new estates being "typically low set and high set brick and tile homes".
According to a Belle Property suburb profile, Murarrie has had an "interesting past", playing host to a variety of industries over the years including sugar cane, cotton, meatworks and boatbuilding.
As a residential suburb it is situated close to the GatewayMotorway and the main thoroughfares of Wynnum and Creek Roads with Cannon Hill and Carindale shopping centres close by and local shops on Queensport Road.
The suburb is popular with families and offers "stunning views of the Gateway Bridge and the Brisbane River" as well as the large Murarrie Recreation Area with bike tracks, barbecue areas, skate parks and canoe ramps.
Recent sales have included this 1940s-built three-bedroom weatherboard home on a 1,200-square-metre block (pictured bel0w) sold by the Queensland Public Trustee for $480,000, according to RP Data records.
<img src="/images/stories/2012/11/billungah.jpg">
 
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Current listings include this modern three-bedroom Queenslander on Queensport Road (pictured below), which last sold for $379,000 in 2006 and is listed through Glenn Bool of Re/Max-Morningside.
<img src="/images/stories/2012/11/queensport.jpg">
An older-style propery up for sale is this "cavity" brick home with two bedrooms, high ceilings and large backyard (pictured below), which is listed at $349,000. RP Data records show it last sold for $92,000 in 1994 and for $44,500 in 1985.
<img src="/images/stories/2012/11/railway.jpg">
Aspley, about 13 kilometres north of the city, is the next best performing suburb over the past 12 months with median house prices up 8.7% to $500,000
The best-performing inner-city detached housing markets are Taringa, a few kilometres south-west of the city, and West End, just outside the CBD, where prices are up 8.2% and 7.5% respectively.
<table border="1" cellspacing="0" cellpadding="0" width="411"><tbody>
<tr>
<td width="187" valign="top">
Region
</td>
<td width="95" valign="top">
Median Sale 12mths Sep12
</td>
<td width="66" valign="top">
1yr change
</td>
<td width="64" valign="top">
5yr change
</td>
</tr>
<tr>
<td width="187" nowrap valign="top">
<a href="/news">MURARRIE</a>
</td>
<td width="95" nowrap valign="top">
$509,500
</td>
<td width="66" nowrap valign="top">
9.6%
</td>
<td width="64" nowrap valign="top">
22.8%
</td>
</tr>
<tr>
<td width="187" nowrap valign="top">
<a href="/news">ASPLEY</a>
</td>
<td width="95" nowrap valign="top">
$500,000
</td>
<td width="66" nowrap valign="top">
8.7%
</td>
<td width="64" nowrap valign="top">
20.9%
</td>
</tr>
<tr>
<td width="187" nowrap valign="top">
<a href="/news">TARINGA</a>
</td>
<td width="95" nowrap valign="top">
$700,000
</td>
<td width="66" nowrap valign="top">
8.2%
</td>
<td width="64" nowrap valign="top">
14.3%
</td>
</tr>
<tr>
<td width="187" nowrap valign="top">
<a href="/news">WEST END</a>
</td>
<td width="95" nowrap valign="top">
$747,000
</td>
<td width="66" nowrap valign="top">
7.5%
</td>
<td width="64" nowrap valign="top">
22.0%
</td>
</tr>
<tr>
<td width="187" nowrap valign="top">
<a href="/news">SEVENTEEN MILE ROCKS</a>
</td>
<td width="95" nowrap valign="top">
$630,000
</td>
<td width="66" nowrap valign="top">
7.4%
</td>
<td width="64" nowrap valign="top">
23.0%
</td>
</tr>
<tr>
<td width="187" nowrap valign="top">
<a href="/news">NUDGEE</a>
</td>
<td width="95" nowrap valign="top">
$515,000
</td>
<td width="66" nowrap valign="top">
6.5%
</td>
<td width="64" nowrap valign="top">
45.8%
</td>
</tr>
<tr>
<td width="187" nowrap valign="top">
<a href="/news">CALAMVALE</a>
</td>
<td width="95" nowrap valign="top">
$500,000
</td>
<td width="66" nowrap valign="top">
4.2%
</td>
<td width="64" nowrap valign="top">
16.3%
</td>
</tr>
<tr>
<td width="187" nowrap valign="top">
 
<a href="/news">MORNINGSIDE</a>
</td>
<td width="95" nowrap valign="top">
$580,000
</td>
<td width="66" nowrap valign="top">
3.6%
</td>
<td width="64" nowrap valign="top">
21.0%
</td>
</tr>
<tr>
<td width="187" nowrap valign="top">
 
<a href="/news">FERNY GROVE</a>
</td>
<td width="95" nowrap valign="top">
$490,000
</td>
<td width="66" nowrap valign="top">
3.2%
</td>
<td width="64" nowrap valign="top">
19.8%
</td>
</tr>
<tr>
<td width="187" nowrap valign="top">
<a href="/news">GREENSLOPES</a>
</td>
<td width="95" nowrap valign="top">
$574,450
</td>
<td width="66" nowrap valign="top">
2.5%
</td>
<td width="64" nowrap valign="top">
18.4%
</td>
</tr>
<tr>
<td width="187" nowrap valign="top">
<a href="/news">GEEBUNG</a>
</td>
<td width="95" nowrap valign="top">
$407,629
</td>
<td width="66" nowrap valign="top">
2.0%
</td>
<td width="64" nowrap valign="top">
16.5%
</td>
</tr>
<tr>
<td width="187" nowrap valign="top">
<a href="/news">AUCHENFLOWER</a>
</td>
<td width="95" nowrap valign="top">
$835,000
</td>
<td width="66" nowrap valign="top">
1.8%
</td>
<td width="64" nowrap valign="top">
14.4%
</td>
</tr>
<tr>
<td width="187" nowrap valign="top">
 
<a href="/news">BARDON</a>
</td>
<td width="95" nowrap valign="top">
$737,500
</td>
<td width="66" nowrap valign="top">
1.7%
</td>
<td width="64" nowrap valign="top">
20.6%
</td>
</tr>
<tr>
<td width="187" nowrap valign="top">
<a href="/news">JAMBOREE HEIGHTS</a>
</td>
<td width="95" nowrap valign="top">
$403,000
</td>
<td width="66" nowrap valign="top">
1.4%
</td>
<td width="64" nowrap valign="top">
15.1%
</td>
</tr>
<tr>
<td width="187" nowrap valign="top">
<a href="/news">BRIGHTON</a>
</td>
<td width="95" nowrap valign="top">
$402,000
</td>
<td width="66" nowrap valign="top">
1.3%
</td>
<td width="64" nowrap valign="top">
23.7%
</td>
</tr>
<tr>
<td width="187" nowrap valign="top"></td>
<td width="95" nowrap valign="top"></td>
<td width="66" nowrap valign="top"></td>
<td width="64" nowrap valign="top"></td>
</tr>
</tbody></table>
 Source: REIQ
The REIQ notes that Brisbane house sales activity picked up notably over the quarter, with a 35% increase recorded compared with the June quarter.
“Brisbane’s market continues to improve as buyers turn their attention to our affordable capital city property prices, as well as the continued strong demand for rental properties which is attracting investors,” says REIQ chief executive Anton Kardash.
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lschlesinger-FZcF9M3vE6

Little-known Murarrie the top-performing Brisbane suburb for house prices over past 12 months: REIQ

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<img src="/images/stories/2012/11/raywhite2.gif">
John Skufris tells Property Observer companies seeking office space in Sydney hail from all over the world, including Singapore and South Africa. He would invest a spare $750,000 in a commercial property with dual zoning and parking close to the CBD.
How long have you been in the industry?
Twelve years.
<img style="margin: 5px; float: left;" src="/images/stories/2012/11/johnskulfis.png">
What’s happening in the area you specialise in?
We are seeing an increase in overseas businesses seeking more office space in Sydney's CBD from countries including, but not limited to, Singapore, South Africa and Holland recently.
Describe the most interesting property you have leased.
We leased a property that was vacant for years to a dance studio with stunning views over Hyde Park. They funded their own fit-out and paid a year's rent in advance to secure the premises.
What are the ingredients to being successful in your job?
The ingredients include being able to help people and understanding their requirements.
What aspects of your role do you enjoy the most?
Working in the CBD is great. I also enjoy meeting people and helping them with their property needs.
Where would invest a spare $750,000?
I would consider purchasing a property with dual zoning and parking, close to Sydney's CBD.
Which football team do you support?
The St George Illawarra Dragons.
What’s your favourite app or techno gadget?
It is the new Samsung S3.
How do you use social media?
We use <a href="https://www.raywhitesydneyleasing.com.au" target="_blank">https://www.raywhitesydneyleasing.com.au</a> and <a href="https://www.raywhitecommercial.com.au" target="_blank">https://www.raywhitecommercial.com.au</a> to advertise available properties.
These websites also offer details of our personnel with a media centre, leased properties and tools including an office space calculator.
My Twitter account is <a target="_blank" href="https://twitter.com/SydneyOffices">@SydneyOffices</a>, and we also use other networking sites including LinkedIn.
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In profile: Sydney CBD office leasing specialist John Skufris

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US private equity firm the Blackstone Group has become a major retail mall player in Australia after acquiring the in-debted Top Ryde City shopping centre in Sydney for $341 million from receivers McGrathNicol.
The mall on the corner of Devlin Street and Blaxland Road in Ryde has been in the hands of receivers since February 2011 after a syndicate of four banks foreclosed on retail development tycoon John Beville’s Bevillesta Pty Limited, after it was unable to meet the repayments on loans that financed its $800 million re-development.
It collapsed just six months after its grand re-launch attended by the prime minister. The shopping centre was valued at $840 million four years ago.
It covers 78,000 square metres of retail space and ranks among the 40 biggest shopping centres in Australia.
According to a report in the Australian Financial Review, Blackstone fought off competition from both local and overseas institutional investors to acquire the shopping centre.
Bidders for the mall included Lend Lease fund’s management unit and investment bank, Goldman Sachs, Melbourne businessman and shopping centre manager Sam Alter, super fund ISPT and listed property trust, CFS Retail Property Trust.
The mall was marketed by Simon Rooney of Jones Lang LaSalle via an expressions of interest sales campaign.
 
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New York-based Blackstone Group buys Top Ryde mall for $341 million

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Federal Treasurer Wayne Swan has once again waded into the debate over whether the Reserve Bank should cut the cash rate on December 4.
In a Treasury note over the weekend, Swan says the government’s forecast of a return to a budget surplus in the current financial year “gives the Reserve Bank more room to move on interest rates”.
“That’s the equivalent of six cuts to the official cash rate. For a family with a $300,000 standard variable mortgage, our responsible budget management has helped deliver a saving of around $4,500 a year in repayments compared to when the Government came to office,” says Swan.
By a majority of one, <a href="/news">economists polled by Bloomberg on Friday</a> tip the RBA to leave the cash rate on hold on December 4.
Tomorrow’s release of the minutes of the November monetary policy meeting and a speech by RBA governor Glenn Stevens will give clues as to the thinking of the RBA about a possible rate cut in December.
These are the lowest advertised mortgage rates based on listings by <a href="https://www.ratecity.com.au/" target="_blank">ratecity.com.au</a>, <a href="https://mozo.com.au/" target="_blank">Mozo.com.au</a> and <a href="https://www.infochoice.com.au/" target="_blank">infochoice.com.au</a> as of November 19:
Lowest variable rate offerings:
<table border="1" cellspacing="0" cellpadding="0" width="470"><tbody>
<tr>
<td valign="top" width="134">
Provider
</td>
<td valign="top" width="124">
Loan name
</td>
<td valign="top" width="97">
Rate
</td>
<td valign="top" width="116">
Comparison rate*
</td>
</tr>
<tr>
<td valign="top" width="134">
Loans.com.au
</td>
<td valign="top" width="124">
Blackboard special
</td>
<td valign="top" width="97">
5.42%
</td>
<td valign="top" width="116">
5.45%
</td>
</tr>
<tr>
<td valign="top" width="134">
My mortgage freedom.com.au
</td>
<td valign="top" width="124">
Low rate -LVR up to 75%
</td>
<td valign="top" width="97">
5.43%
</td>
<td valign="top" width="116">
5.74%
</td>
</tr>
<tr>
<td valign="top" width="134">
UBank
</td>
<td valign="top" width="124">
UHomeloan – refinance only
</td>
<td valign="top" width="97">
5.47%
</td>
<td valign="top" width="116">
5.47%
</td>
</tr>
</tbody></table>
Lowest one-year fixed-rate offerings
<table border="1" cellspacing="0" cellpadding="0" width="470"><tbody>
<tr>
<td valign="top" width="137">
Provider
</td>
<td valign="top" width="123">
Loan name
</td>
<td valign="top" width="95">
Rate
</td>
<td valign="top" width="114">
Comparison rate*
</td>
</tr>
<tr>
<td valign="top" width="137">
UBank
</td>
<td valign="top" width="123">
UHomeloan – refinance only
</td>
<td valign="top" width="95">
4.79%
</td>
<td valign="top" width="114">
5.40%
</td>
</tr>
<tr>
<td valign="top" width="137">
Community First
</td>
<td valign="top" width="123">
Honeymoon
</td>
<td valign="top" width="95">
4.99%
</td>
<td valign="top" width="114">
6.46%
</td>
</tr>
<tr>
<td valign="top" width="137">
My mortgage freedom.com.au
</td>
<td valign="top" width="123">
Low rate -LVR up to 75%
</td>
<td valign="top" width="95">
4.99%
</td>
<td valign="top" width="114">
5.78%
</td>
</tr>
</tbody></table>
Lowest three-year fixed-rate offerings
<table border="1" cellspacing="0" cellpadding="0" width="470"><tbody>
<tr>
<td valign="top" width="132">
Provider
</td>
<td valign="top" width="131">
Loan name
</td>
<td valign="top" width="96">
Rate
</td>
<td valign="top" width="111">
Comparison rate*
</td>
</tr>
<tr>
<td valign="top" width="132">
UBank
</td>
<td valign="top" width="131">
UHomeloan – refinance only
</td>
<td valign="top" width="96">
5.13%
</td>
<td valign="top" width="111">
5.40%
</td>
</tr>
<tr>
<td valign="top" width="132">
Pacific Mortgage Group
</td>
<td valign="top" width="131">
Three year fixed
</td>
<td valign="top" width="96">
5.19%
</td>
<td valign="top" width="111">
5.43%
</td>
</tr>
<tr>
<td valign="top" width="132">
CUA
</td>
<td valign="top" width="131">
Fixed rate home loan
</td>
<td valign="top" width="96">
5.30%
</td>
<td valign="top" width="111">
5.90%
</td>
</tr>
</tbody></table>
*A comparison rate includes both the interest rate and the fees and charges relating to a loan, combined into a single percentage figure.
For information on refinancing, watch our free webinar <a href="/news">Refinancing and the Interest Rates Riddle</a>
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Room for RBA to move on rates, says Wayne Swan: Guide to the lowest rate mortgages, fixed and variable as of November 19

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Property analyst Michael Yardney says there are four fundamental reasons why the Australian housing market is unlikely to crash with Australia’s high rate of mortgage-free property ownership another factor protecting the market.
Michael Yardney, director of Metropole Property Strategists,  says people who blog in hope or expectation of a housing crash are probably “jealous of those who have worked hard and built up some assets”.
Speaking as part of a realestatetalk.com.au podcast, Yardney says that while a housing crash cannot be ruled out entirely – it could possible happen one day – the four things that would need to happen for this to occur are unlikely to eventuate.
These four things are: a recession, extremely high interest rates, a high rate of unemployment and an oversupply of housing.
Before going on to explain how none of these four factors apply to Australia, Yardney highlighted that the “main reason” house prices won’t crash is that currently the housing market is underpinned by the fact that 50% of home owners have no mortgage against their home.
“Therefore high interest rates and recessions aren’t going to make them sell.
“It’s the only investment market controlled by non-investors,” says Yardney, in comparison with overseas markets where there are a lot more tenants, where people move from state to state and from country to country and where the banking rules are different.
“In Australia the things that could make a difference are [firstly] a recession
“People suddenly lose their jobs, unemployment is high and people can’t afford to keep their mortgages.
“But nothing suggests Australia is going to have a recession in the immediate future.”
Extremely high interest rates are another thing that could cause a crash, but Yardney says no one is suggesting that is going to happen in the forseeable future.
A high rate of unemployment would create a situation where people have to “give away their homes – sell them at “silly prices” and could cause a crash.
But, Yardney contends “everybody who wants a job can get a job at the moment” though it may not be the job they want”.
And the fourth factor is “significant oversupply” as was the case in the US housing crash.
“No doubt it is happening in some markets such as the Gold Coast and some of the off-the-plan markets, but overall there is not a huge oversupply.
“[So] I can’t see the Australian property market crashing in the foreseeable future.
Yardney says the housing market has corrected by between 5% and 7%, but says such a fall is not a crash, but part of a cyclical downturn.
“For a crash you need a 15% to 20% fall."
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No housing bubble and no housing crash likely: Michael Yardney

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The Reserve Bank is falsely pinning its hopes that lower interest rates will stimulate a recovery in housing construction, according to Bank of America Merrill Lynch Australia economists Saul Eslake and Alex Joiner.
They point to the muted impact that six rate cuts since November last year have had to date on both house prices and building approval figures – the weakest response to monetary policy stimulus in a decade – and anticipate only a "relatively moderate" recovery in residential construction" compared with previous cycles.
The RBA is hoping that when the mining and liquid natural gas (LNG) investment boom tails off in the next few years, the slack will be taken up by a boom in housing construction and a broader recovery in the housing market.


Last week, Jonathan Kearns,head of economic analysis at the RBA, said in a speech on the outlook for dwelling investment that there were “tentative signs” that investment in housing “will pick up which would, in part, offset the smaller contribution to growth that we expect from resource investment in the coming years”. 
But in a research report, Eslake and Joiner say that despite the RBA being over a year into the current monetary policy easing cycle, "the response from both house prices and residential construction has so far been measured at best".
Click to enlarge
<a href="/images/stories/2012/11/rbanov19.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/11/rbanov19thumb.gif"></a>
"We argue that due to structural and cyclical factors that any upswing in dwelling prices and investment over the coming year will remain relatively modest compared with previous cycles," they say.
The cash rate has fallen 150 basis points between November 2011 and October 2012, and banks’ standard variable mortgage rates have dropped 120 basis points in response, but Eslake and Joiner calculate that median house prices are still 1.2% lower than they were in October 2011 and have climbed just 2% since bottoming out in May.

In comparison, house prices increased by nearly 37% after the Reserve Bank cut interest rates by 200 basis points (from a cash rate of 6.25% to 4.25%) between January 2001 and December that year, and by a further 16% after the GFC, when the RBA cut the cash rate by 425 basis points from September 2008 to April 2009 (7.25% to 3%).

Building approval figures for detached houses – a forward indicator of future construction activity – have also not responded to the current rate-cutting cycle and are down 1.8% for the year to September in comparison with the units and apartment approval, which are up 41.6% year-on-year.
"This underperformance of detached housing approvals in particular is likely to result in the overall recovery in approvals and subsequently residential construction in the coming year being significantly less pronounced than in previous cycles," say Eslake and Joiner.
"This is especially true when we note that at least part of the strength in ‘other’ approvals was prompted by regulatory changes and alterations to state governments’ first home buyer grants (which will nonetheless boost dwelling investment growth in the short term).
"Our rationale for this is that despite easier monetary policy and Commonwealth and state government initiatives designed to boost the supply of housing (first home buyer grants, negative gearing etc) several factors are conspiring against any significant and sustained addition to housing supply."
 
<hr class="system-pagebreak">
These include macroeconomic headwinds (slowing activity and higher unemployment), regulatory processes becoming "ever more burdensome, drawn out and costly", high infrastructure and developer costs and softer sale prices.
Other reasons noted by Eslake and Joiner include a winding back of some government housing grants and slower income growth as seen in last week quarterly wage price index which eased back to 0.7% quarter-on-quarter growth below 0.9% to 1% growth in the last three quarters.
They also note that housing finance approval levels are "gradually rising spurred by lower mortgage interest rates and improved sentiment towards the housing market" which should continue in coming months.
"However, with approvals levels only 10% higher than lows experienced in early 2011 the recovery been less than convincing thus far (levels remain 10% below average levels since 2000)."
"With uncertainty in the labour market high, household caution will likely keep the recovery in approvals levels more modest than we have seen in previous monetary policy easing cycles. This will cap any recovery in housing credit growth going forward from what is currently historically low on an annual basis."
“With the debt to income ratio now having ‘plateaued’ at around 150%, households have seemingly recognised a limit to their borrowing capacity.

“As such, a more modest expansion of incomes will result not only in lower house price growth but also significantly slower growth in housing credit,” they say.
Looking ahead to the December 4 RBA meeting, Eslake and Joiner say the RBA minutes from the November board meeting (out tomorrow) "are not likely to say too much that last week’s statement on monetary policy hasn’t already".
"The sentiment from the RBA is that rates are at an appropriate level for the time being.
"We are still marginally biased towards a cut in December and will assess the data flow leading into the meeting (including building approvals, retail sales and some partial third quarter GDP data) to ascertain whether there is likely a need for a further easing of policy in the short term."
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RBA rate cuts stimulating 'relatively moderate' housing market recovery: Bank of America Merrill Lynch

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There were 365 unconditional inner-Brisbane apartment sales in the September quarter, with more than four out of five sales below the $650,000 mark, according to a new report by Place Advisory.
Affordability appears to be a key consideration for buyers, with more than a third of sales (35%) price between $350,000 and $450,000 – the most popular price band.
However, there appears to be little appetite (or little product) at the more expensive end of the market, with just 3% of sales for apartments prices from $900,000 and above.
Click to enlarge
<a href="/images/stories/2012/11/placenov19.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/11/placenov19thumb.gif"></a>
Source: Place Advisory
The weighted average price over the quarter was $548,493 – 3% below the previous June quarter price. 
The 365 transaction were 15% lower than the previous quarter but above the long-term 10-year average of 311 transactions, which Place Advisory says indicates stability in the market.
At the current sales rate there is more than a year’s worth of apartments available for purchase, with Place Advisory counting a total of 1,808 new residential apartments remaining for sale across the inner-<a target="_blank" href="/news">Brisbane </a>market.
It was a very good quarter for developer David Devine,who notched up two of the top-selling projects over the three months to September via his Metro Property development businesses.
The highest-selling project over the quarter was Metro Property’s newly released Plaza Apartments, which recorded 54 unconditional sales, followed by another Metro Property project, Brooklyn on Brookes, with 44 sales.
Double One 3 (39 sales) – being developed by Devine Limited in <a href="/news">Teneriffe </a>– ranked third. The business is no longer associated with David Devine, but still bears his name.
“From discussions with agents and developers across the marketplace, consistency month to month remains the biggest challenge,” says Place Advisory, a project marketing agency.
“Enquiry appears to fluctuate in quality and quantity with no reasoning associated.
“The reality is when you look at the overall picture, we must be prepared and understand that we are in what could be regarded as a normal market.
“Most feedback suggests that if Brisbane’s residential supply pipeline continues as a constant, where close to an average of 1,000 new apartments have been released annually over the past five years, and stock remains price pointed and affordable these trends are unlikely to change in the coming two years.
“Importantly, the impact of the first-home owners' construction grant (FHOCG) will be one to watch in coming quarters.”
 
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Brisbane apartment market stabilises in September quarter with sub-$650,000 the sweet spot: Place Advisory

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Industrial assets offers the potential for far better returns than risk-free government bonds, according to investment bank Morgan Stanley’s latest Australian property report.
As the chart below shows, while capitalisation rates (yields) are well off their mid-1990s peaks, industrial assets offer an average return of 8.3% compared with a yield of 3.05% for 10-year government bonds.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/11/morganstan.gif"><img src="/images/stories/2012/11/morganstanthumb.gif"></a>
“Yield is the name of the game,” says Morgan Stanley in its latest report authored by analysts Lou Pirenc, Todd McFarlane and John Meredith.
 
“In a typical environment where demand fundamentals in property are weakening, we would normally expect a softening in asset prices.
“As the graph shows, however, industrial, office and retail all offer attractive spreads to the risk-free rate and increasingly to the marginal cost of debt for many REITs.
“Whereas assets in recent years were primarily sought by sovereign wealth funds and selected domestic unlisted funds, we are now seeing buyer demand from listed REITs, unlisted funds, sovereign wealth and pension funds, and offshore corporates/investors," says Morgan Stanley
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Industrial property offers strongest returns of commercial property classes: Morgan Stanley

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Mutual lender bankmecu has leased 123 square metres of retail space on Little Collins Street.
The new branch at 104 Little Collins and Southern Cross Lane will add to the more than 25 branches that bankmecu has across Australia, but is its first retail presence in the Melbourne CBD.
Bankmecu has its headquarters in <a target="_blank" href="/news">Kew</a>.
The lease agreement for the vacant premises was negotiated by Fitzroys agent Mitchell Humphreys on behalf of landlord Brookfield.
Humphreys says rents in the location are still being negotiated well in excess of $1,000 per square metre.
The space was fitted out by bankmecu and opened for business on November 19.
Humphreys says Brookfield was pleased to secure a strong tenant to anchor the Southern Cross food and retail laneway.
“It is critical to be proactive and sensitive to the ongoing tenancy mix in these establishing precincts when securing new tenants,” he says.
“The vibrant precinct taking in the Southern Cross food laneway and the top end of Little Collins Street continues to attract strong tenant demand, with no retail vacancies.”
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Bankmecu takes retail space on Little Collins Street at around $1,000 per square metre 

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Western Australia’s remote Pilbara region, the state’s iron ore mining heartland, has topped the list of regions with the lowest proportion of annual sales under $400,000.
According to research by RP Data, just 5.8% of sales in the Pilbara region were under $400,000 over the year to August.
There were nearly four times as many sales below $400,000 in the second-ranked Kimberley (22.1%) region, which lies just above the Pilbara geographically, and benefits from mining as well as tourism.
Third was Canberra (22.1% of annual sales) and fourth Sydney (30.3% of all sales).
The Pilbara is a vast region covering an area of 502,000 square kilometres in northern WA running west from the coast. Its main mining towns are <a href="/news">Karratha</a>, <a href="/news">Dampier</a>, <a href="/news">Port Hedland</a>, <a href="/news">South Hedland</a> on the coastal edge and <a href="/news">Newman </a>and <a href="/news">Tom Price</a> in the hinterland.
Property Observer has scoured real estate listings in these mining towns and found only four properties currently listed for sale under $400,000, three of them in the Karratha suburb of <a href="/news">Bulgarra </a>and one in the Karratha suburb of <a href="/news">Pegs Creek</a>. All of them are one-bedroom apartments. None of the other mining towns had properties listed for sale under $400,000.
Property Observer only considered existing properties with a listing price advertised under $400,000 and excluded vacant land and house-and-land package listings.
$182,000
A <a href="https://www.realestate.com.au/property-house-wa-pegs+creek-111445311" target="_blank">one bedroom unit being sold by Ray White Karratha on Warambie Road in Pegs Creek (pictured below).</a>
<img width="470" src="/images/stories/2012/11/warnambie.jpg">
$299,000
A <a target="_blank" href="https://www.realestate.com.au/property-apartment-wa-bulgarra-110436629">one-bedroom ground-floor apartment on Ridley Street, Bulgarra</a> (pictured below), being sold by Jackie McVee of First National Karratha.
<img width="470" src="/images/stories/2012/11/ridleyst.jpg">
$350,000
A<a href="https://www.realestate.com.au/property-house-wa-bulgarra-112164847" target="_blank"> one-bedroom bedsit with separate bathroom and toilet on Ridley Street</a> in Bulgarra (pictured below) being marketed by Richard Naulls of Ray White Karratha.
<img width="470" src="/images/stories/2012/11/ridleyst2.jpg">
$375,000
A <a target="_blank" href="https://www.realestate.com.au/property-house-wa-bulgarra-110467185">furnished one-bedroom bedsit with separate bathroom and toilet on Ridley Street</a> in Bulgarra (pictured below) being marketed by Richard Naulls of Ray White Karratha.
<img width="470" src="/images/stories/2012/11/ridleyst3.jpg">
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Pilbara offers only rarest of property investment nuggets under $400,000

<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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