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Business conditions fall further in October, recording their weakest outcome since May 2009, with construction sentiment falling sharply, according to the latest NAB monthly business survey.

The index fell from +1 to -1 partly unwinding a modest improvement in September, and showing no signs of improving despite the RBA cutting the cash rate by 25 basis points on October 3 to 3.25%.
Confidence in the construction sector fell 11 points to -9 points, "with the lure of lower borrowing rates seemingly having little positive impact on sentiment in construction".
“Businesses were more downcast in October, with the pessimism particularly apparent in the mining and construction sectors," says NAB chief economist Alan Oster.


“Confidence deteriorated heavily in construction, returning to the heavily negative levels that have applied since May and making the improvement in September look anomalous.


"Mining conditions are currently the weakest they have been since the Queensland floods in early 2011, which caused major disruptions to coal mine production.


“It appears that the RBA’s decision to lower the cash rate by 25 bps to 3.25% at its October meeting failed to improve sentiment, with firms instead likely to be focussing on the reasons for the rate change – a softening global economy, fiscal tightening, a soft labour market and high Australian dollar,” says Oster.


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Business conditions weakest in three years as construction sentiment slides: NAB

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ASIC is currently 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.
The corporate watchdog also has a taskforce focused on the aggressive marketing of speculative property investments, according to report in The Australian.
"We don't want SMSFs to be the preferred vehicle for dodgy property spruikers," says ASIC commissioner Peter Kell.
Kell says being encouraged to set up a SMSF “solely to invest in direct property” should be a “warning sign” for consumers.
He says a big risk for SMSF investors is speculating on property in areas where they are less familiar.
This would suggest ASIC concerns about investing in areas such as remote mining towns, where new housing developments have been heavily promoted by marketeers.
According to Kell, in some cases investors are being flown to places like the Gold Coast, shown a property and then steered through all the steps necessary to set up the SMSF, including creating the holding trust required to act as custodian of the property and arranging the loan and purchase of the property.
Current tax rules do allow investors to put investment property into their SMSF and also borrow against the fund to acquire property - provided it is done at arm’s length and with the appropriate structures.
But Kell says setting up a fund just to acquire and hold property is clearly in breach of the spirit of DIY funds by not achieving diversity and may also breach trustee obligations to maintain liquidity in the fund.
Investing in property through a SMSF holds significant tax advantages with the maximum rate of tax paid on rental income being 15% and falling to 0% if the SMSF is in the pension phase.
This compares with personally held property where rental income is taxed at a marginal tax rate, which in some cases can be as high as 46.5%.
“ASIC has concerns that people are being encouraged to set up SMSFs in situations where they don’t have the resources, experience and understanding to ensure they actually generate the expected benefits,” says Kell.
Kell says the resourcing issue is not just about money but having the time to properly manage your SMSF.
But he says ASIC is emphatically not anti-SMSF, but is worried that as the sector grows in popularity it will be a target for fraudsters.
ASIC hopes to release research into this aspect of SMSF investing in 2013.
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 ASIC raises alarm bells about spruikers exploiting SMSF rules to push dodgy property investments 

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Popular Caulfied South meat-lovers restaurant Big Boy BBQ has leased space for its second eaterie at around $1,400 per square metre on Hardware Lane in the Melbourne CBD, which runs between Bourke and Little Bourke Street.
The lease over the 100 square metre premises at 29 Hardware Lane was negotiated by Savills Australia’s state retail director, Michael Di Carlo, in conjunction with Grange Property Consultants.
The premises were previously tenanted by Affogato Espresso Bar.
There are already a number of restaurants on the popular pedestrianised retail strip including Amigos Mexican Restaurant, Grill Steak Seafood Restaurant, The Mill Restaurant, Pugg Mahones and Campari House.
Hardware Lane is a tightly held retail strip with commercial property listings showing no shops currently available for lease.
“Big Boy BBQ was keen to test the market with its offering in the CBD driven by the CBD’s significant recent population growth and the existing office staff catchment,” says Di Carlo
“Consumer spending on restaurants and cafes has also held up very well at a time when retailers generally are feeling the pain of a consumer savings trend and on-line competition.”
The lessor is a Melbourne-based investor.
 
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Big Boy BBQ leases restaurant space in Hardware Lane in Melbourne CBD

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Building and construction industry super fund Cbus is considering allowing its members to invest directly in its portfolio of commercial, retail and residential property.
Currently super members can invest in property as a component of a diversified investment portfolio that may also include shares, fixed income and other investment strategies.
However, Cbus chief executive David Atkin says the board is currently reviewing different strategies that would allow members to invest directly in the property assets managed by property investment and development subsidiary Cbus Property reported the Australian Financial Review.
The review comes as super funds look to increase their exposure to the property market as a portfolio diversification strategy and as a way to hold onto members who can now invest in property directly through their self-managed super funds.
Last month, another <a target="_blank" href="https://www.propertyobserver.com.au/commercial/australiansuper-to-double-commercial-property-investments-as-part-of-diversification-play/2012102457425">industry super fund, AustralianSuper</a>,  said it planned to more than double its investments in commercial property over the next five years.
Cbus Property has built up a $2 billion property portfolio by investing in new building projects including office and retail developments and residential apartment projects.
It is also an investor and manager of commercial property.
In conjunction with Dexus, it developed and owns two-thirds of the 27-storey 1 Blight Street office tower in the Sydney CBD and also owns and manages the 35-storey Ernst &amp; Young tower on Exhibition Street in the Melbourne CBD.
Current projects under construction include the futuristic new 63,000 square metre NAB building at 700 Bourke Street in Melbourne’s Docklands, with about $1.5 billion worth projects in its development pipeline including 850 apartments.
Property investments delivered Cbus a 9.5% return last year compared with a 12.4% return for Australian fixed, but better than 7% loss from Australian shares.
Cbus is also review expanding its blue-collar membership base to include related white-collar professions, such as architects.
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Super fund Cbus mulling direct property investment for members

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The number of home loan commitments to NSW first-home buyer numbers has risen for four consecutive months with the state appearing to lead a first-home buyer recovery, according to ABS housing finance figures.
September housing finance data show that first-home buyers as a proportion of the total market reached 19.3% in September, their highest market share since January and  as pointed out by CBA senior economist Michael Workman above the long-run average of 18.5%.
Andrew Hanlan, senior economist at Westpac, said further gains were to be expected from first-home buyer market.
But will they come from NSW?
A cursory look at the evidence, suggests the state is leading the revival - in raw terms loans to NSW first-home buyers are up a healthy 21% since June.
NSW is also the only state to record a steady monthly increase over this period with almost the exact opposite happening in Victoria, where loans to first-home buyers have fallen around 20% since June.
The number of loans to first-home buyers are largely unchanged in Queensland, South Australian and WA over this period.
The improvement in NSW would suggest a return of the key first-home buyer market in a significant way.
But it could be nothing more than rush by this sector of the market to access the $7,000 first-home owner grant which expired on September 30 replaced by a new $15,000 hand-out but only for those building or buying a new home.
Market observers like Angie Zigomanis at BIS Shrapnel have argued that incentives pull demand forward but create a vacuum when the incentive ends.
Ray White chairman Brian White told Property Observer last week that first-home buyer incentives distorted the market, “and not in a healthy way”.
White calls the increased NSW $15,000 handout for new homes “no longer a first-home buyers  but a builders incentive” and a "deceit".
For the NSW first-home buyer rally to be significant the pick-up in first-home buyer numbers will need to continue into October and beyond.
There will also need to be a pick-up in NSW first-home buyers taking out loans to buy or build new houses.
The ABS data does not break down the data into type of buyer so ascertaining this trend is difficult.
The data that is available shows a 16% overall rise in loans to NSW borrowers for the purchase of new dwellings since June which is encouraging.
However, loans for the construction of new homes in NSW have fallen about 20% over the same period – economists point out that a recovery in construction takes longer to filter through.
In the case of Victoria, the slump in first-home buyer numbers may also have something to do with ending of government incentives with both the $13,000 first-home bonus and the $6,500 regional bonus ending on June 30.
They may also be waiting to take advantage of increased stamp duty savings concessions, which formally begin on January 1, 2013 (but take effect for purchases<a target="_blank" href="https://www.propertyobserver.com.au/residential/victorian-first-home-buyers-increased-stamp-duty-benefits-take-effect-with-savings-of-up-to-%243100/2012110457604"> beginning in November, given 60 day settlements</a>) with the potential to generate potential savings of as much as $3,000.
The $7,000 first-home buyer grant still remains in place in Victoria for both existing and established homes.
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NSW first-home buyer numbers trending up could be a rush or a recovery

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The high cost of renting has shifted dramatically from south-east Queensland to regional mining towns, led by Roma, Gladstone and Mackay, according to the Residential Tenancies Authority (RTA) annual report for 2011-12.
Median weekly rents for three-bedroom houses in Roma rose an astonishing $150 over the space of 12 months to June to a median of $500 per week – a rise of 40% – while two-bedroom unit rents  increased by 35% to $350 per week.
Roma lies 515 kilometres west of Brisbane in the Darling Downs, the epicentre of the coal seam gas (CSG) boom, home to Origin Energy's Spring Gully Coal Seam Gas Development and the outer end point of the 434-kilometres Roma-to-Brisbane gas pipeline.
In the more widely known mining hotspot of Gladstone, median weekly rents for three-bedroom houses rose $120 (33%) over the past 12 months to a median of $500 and by $100 per week for two-bedroom units to a median of $400.
The report also found that weekly rents have risen by $70 per week in Mackay for houses ($460) and by $60 per week for Mackay units ($360) – annual increases of 18% and 20% respectively.
In comparison median weekly rents have hardly shifted in Brisbane and in other more heavily populated south-east Queensland locations including Ipswich, the Sunshine Coast and the Gold Coast.
Click to enlarge
<a href="/images/stories/2012/11/qldrent.jpg" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/11/qldrentthumb.jpg"></a>
The figures are based on data gathered by the RTA for the year to June 30 as part of its rental bond custodial function combined with data from other official and industry sources.
The report notes that traditionally, the most expensive areas in terms of rents are in south east Queensland, "particularly areas of Brisbane, the Gold Coast and Sunshine Coast".
“However, areas which experienced the most significant rent increases for houses and flats were Gladstone, Roma and Mackay.
“Mount Isa also saw a significant increase in rents for houses. Most other areas experienced either smaller rent increases or no change.
“Significant increases in the regional areas are generally related to resource-driven activities,” says the RTA in its annual report.
The RTA is a regulatory body which monitors and reports on Queensland’s residential rental sector.
For tips on investing in Gladstone, download Property Observer's free eBook: <a href="http://propertyobserver.com.au/ebooks/free-ebook-gladstone-investment-keys-to-one-of-the-nations-most-talked-about-hotspots" target="_blank">Gladstone – Investment keys to one of the nation’s most talked-about hotspots</a>
Photograph of Roma courtesy of <a href="https://www.flickr.com/" target="_blank">Flickr</a>.
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Roma leads Queensland mining town rental boom with 40% annual growth

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<img src="/images/stories/2012/11/cbrelogo3.jpg">
Peter Vines tells Property Observer he has noticed an increasing rezoning of industrial property to residential for redevelopment into apartments and townhouses. Consequently, he would invest a spare $750,000 in a small warehouse around the inner west or south Sydney and wait for re-zoning.
How long have you been in the industry?
I have worked in real estate both residential and commercial in Sydney, London and Paris for over 13 years.
What’s happening in the area you specialise in?
<img src="/images/stories/2012/11/petervines.png" style="margin: 5px; float: left;">
Several things are happening, but of interest is the increasing rezoning of  industrial property to residential for redevelopment into apartments and townhouses. This will continue to happen, with industrial users needing cheaper rents to satisfy consumer demand and also an increase in the value of residential property due to a lack of housing in the inner west and western Sydney. Also an increase in the level of community, religious and education groups needing to buy large properties to occupy in order for them to realise their mandate of caring for and educating an ever-increasing population.
Describe the most interesting property you have sold.
We were involved in selling a school on behalf of Ernst &amp; Young at the beginning of the year which was purchased by the Department of Education. We also have recently sold a large  eight-hectare industrial facility on behalf of Pacific Brands, which is going through rezoning to residential at the moment. It was huge and had some really cool industrial style heritage buildings on it that will be retained and converted.
What are the ingredients to being successful in your job?
It is quite simple: persistence and resilience. You need to constantly be talking to people and following up and then you need to be able to get back up and keep going when things go wrong.
What aspects of your role do you enjoy the most?
I love every part of my job. I love the diverse nature of the assets we work on. I cover all sectors of the market, we sell schools, shopping centres, development sites, aged-care facilities, office buildings, places of worship, retreats and the list goes on. This enables me to be more creative and think outside the box when marketing a property and looking at alternate potential uses, which is extremely important when dealing with “complex/difficult assets” like we so often do. We often sell large parcels of land and vacant buildings where there could be several uses.
Where would invest a spare $750,000? 
Probably in a small warehouse around the inner west or south Sydney and wait for rezoning
Which football team do you support?
The Bunnies, Manly and the Waratahs
What’s your favourite app or techno gadget?
My iPhone has changed my life, I have everything in the palm of my hand and can work from anywhere at any time while listening to music. My favourite app at the moment is Everguide: It is a guide to all music, entertainment and arts and culture happenings around Sydney.
How do you use social media?
I have a LinkedIn account, which is linked to my <a target="_blank" href="https://twitter.com/petevinescbre">Twitter account</a>. I regularly post up our new listings and then the results of the property deal. I have over 500 connections on LinkedIn and use it as a way of finding useful contacts. CBRE also posts videos on YouTube of properties that we are selling.
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In profile: CBRE commercial property specialist Peter Vines

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Retail properties priced under $1 million are likely to hold strong appeal for small investors, according to a Property Observer reader survey.
While purchasing commercial real estate remains on the radar for just a small number of readers, of those who do intend to look beyond residential investments, two in five (40%) would consider a commercial property priced between $500,000 and $1 million, while more than a third (36%) are interested in commercial property priced under $500,000.
Less than a quarter would consider investing in commercial property above $1 million.
The most sought-after assets are retail properties, chosen by more than a third of respondents (35%), followed by industrial assets (28%) and office assets (16.3%).
A third of readers considering buying commercial property said they intended to buy using their self-managed super funds, while nearly half (47%) said they would use their commercial property acquisition as their business premises. The remainder said they would acquire a commercial property as an investment.
The results of the survey also indicate that retail property is further along the property cycle than offices and closer to recovering.
Half of those surveyed (51%) said retail property in their state had bottomed out, while less than a third  (32%) said the sector was still in a downswing.
A smaller proportion said their state office market had bottomed out (46%), while more than a third (34%) said it was still in a downswing.
In the last few months, combined warehouse/office premises priced under $1 million have attracted strong interest from both owner-occupiers and small investors.
<ul>
<li>A large 344-square-metre office/warehouse facility at Molendinar, the Gold Coast’s premier industrial precinct, sold to truck spare parts company $430,000. The property at 2/18 Expansion Street, <a href="/news">Molendinar</a>, was sold by Steve Macgregor of Ray White Commercial Gold Coast post auction.</li>
<li>In Melbourne, an office-warehouse unit at 2 Railway Avenue in <a href="/news">Oakleigh </a>sold to a private investor for $670.000 on a yield of around 7.5%. The 389-square-metre building sold leased at a net rental of $50,000 per annum plus GST was negotiated by Crabtrees Real Estate.</li>
<li>In September a warehouse/office complex at <a href="/news">Hendra </a>in Brisbane’s north was sold by Ray White Industrial Milton to construction company Solutions Three for $675,000.</li>
</ul>
Retail premises up for sale priced under $500,00 include a <a href="https://www.propertyobserver.com.au/victoria/docklands-hair-salon-offers-small-investors-and-smsf-potential-8-return/2012102457390" target="_blank">Docklands hair salon</a> asking $300,000 to $310,000 at a yield of around 8% and the <a href="https://www.propertyobserver.com.au/tasmania/historic-high-street-campbell-town-pharmacy-listed/2012101657144" target="_blank">old pharmacy building in Tasmania’s Campbell Town</a> listed for sale with an asking price of $495,000.
One in 20 of the more 800 readers surveyed by Property Observer said they planned to purchase a commercial property in the next 12 months.
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Retail and industrial properties under $1 million the sweet spot for small investors: Reader survey

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A private investor has paid $16.5 million to acquire a B-grade Adelaide office building leased to Westpac wealth management subsidiary BT Financial.
The BT Centre located at at 1 Hugh Cairns Avenue comprises a net lettable area of around 6,224 square metres on a total site area of 29,353 square metres. It formed part of the Mirvac Property Trust and had a book value in 2010 of $16.5 million as of June 2012.
The office building generates net annual income of around $1.74 million, which equates to a yield in excess of 10.5%.
Mirvac acquired the building  in 2010 as part of its acquisition of the Westpac Office Trust.
The BT Centre is 13 kilometres south-east of the Adelaide CBD in a commercial precinct adjoining the Flinders University campus and is tenanted by BT Financial on a 12-year lease, commencing in 2007, with two five year renewal options.
CBRE’s Philip Rundle and Alistair Laycock negotiated the sale on behalf of Mirvac as trustee for Bedford Park Office Trust.
Rundle says the campaign provided a "rare opportunity to acquire a strong commercial investment".
“The property has been occupied by Westpac since its construction in 1997 and their further commitment to a long-term lease in 2007 clearly demonstrates the building’s strong fundamentals.
Laycock says the precinct is an important commercial hub incorporating the Westpac call centre, Florey research and development building and the major southern districts police centre.”
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Private investor snaps up BT call centre for $16.5 million on double-digit yield

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The value of home loans taken out by owner occupiers rose by a better than expected 1.5% over September to $13.9 billion, according to the latest ABS housing finance figures.
This was the second consecutive monthly rise in the value of owner occupier commitments following a 1.3% rise in August.
In July the value of owner occupier commitments slumped 1.4%.
The number of loans to owner occupiers rose 0.9% to 46,395 in September following a 1.8% rise in August - economists polled by Bloomberg had tipped a 1% rise over September.
Housing finance commitments by investors increased by 8.6% to $7.3 billion following a small 0.8% fall in August and a 2.7% drop in July.
The total value of dwelling commitments – owner occupiers and investors – rose 3.8% to $21.2 billion.
Westpac noted that gains were reported across the eastern states - Queensland (0.6%), NSW (1.6%) and Victoria(2.3%). This was offset by a dip in WA and a fall in SA.
"FHBs share of finance increased, rising to 19.3%. Further gains are in prospect," says Westpac.
The rise in September suggests -as mentioned by the RBA - that previous rate cuts are starting to flow through into the economy.
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Owner-occupier mortgage lending up 1.5% in September as first-home buyers reach 19.3%: ABS

<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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