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Mark Bouris's Yellow Brick Road franchise has confirmed a mortgage funding tie-up with Macquarie Group, part of an ambitious and distinctly long-term plan to take on the major banks as the fifth banking pillar.
In a statement to the ASX, Yellow Brick Road chief executive Matt Lawler said it had signed an origination agreement with Macquarie Bank, the financial services subsidiary of Macquarie Group, to "develop branded banking and wealth management products and services, including the terms of a new mortgage funding and distribution arrangement".
Macquarie will provide wholesale mortgage funding to Yellow Brick Road, allowing the franchise to expand its mortgage offering with plans for further wealth management and banking products in 2013. In conjunction with the funding from Macquarie Bank, Yellow Brick Road has launched a range of discounted mortgage offers as part of a plan to offer a “much-needed alternative for Australian customers”.
The financial services group has launched what it calls “an aggressively priced range of mortgage products” with the details of these on its website today under the heading “Smash your home loan”.
<img src="/images/stories/2012/11/smash.jpg">
These include an introductory variable rate mortgage priced at 5.5% for the first 12 months (among the lowest offerings in the market) and available to all "successful mortgage applicants", not just a chosen few who qualify for a discounted offer.
The rate reverts to 5.79% after the first year with a comparison rate of 5.77%. The website also lists the ongoing rates of the major banks and some of the regional banks, starting with Westpac at 5.9%, with savings ranging from $7,000 (for current ANZ customers who refinance with Yellow Brick Road) rising to almost $23,000 (for Bank of Queensland customers) over a 25-year period for a principal and interest loan of $300,000.
The products will be distributed through Yellow Brick Road’s 140 branches located across Australia – with a heavy concentration of branches in Sydney, Melbourne and Brisbane.
Yellow Brick Road will partner with Channel Nine to promote the offering, the same television channel that ran The Apprentice, featuring YBR executive chairman Mark Bouris as the host.
All of this is part of a campaign aimed at providing some competition to the banking sector, which controls 92% of the mortgage market and is heavily dominated by the major banks.
<hr class="system-pagebreak">
However, talk of being a fifth pillar in the mortgage lending space may be a little premature.
According to the latest APRA banking figures for September, the four major banks dwarf the rest of the market.
The Commonwealth Bank remains the biggest mortgage lender by some margin with a$308 billion loan book, followed by Westpac ($294 billion home loan book), NAB ($187 billion) and ANZ ($171 billion).
Many would argue that there already is a fifth pillar in banking, that being ING Direct, a subsidiary of the Dutch banking giant ING, which has a loan book of $37 billion and has a reputation for sharply priced online mortgage and savings products.
While Yellow Brick Road has impressively more than doubled its mortgage lending over the past year according to its 2012 annual report, ita loan book currently stands at just $855 million.
This is small change when compared with the major banks and also dwarfed by the $18 billion of loans under management that Wizard Home loans achieved. The defunct mortgage lender made Bouris his fortune – he sold Wizard to GE Money for around $500 million in 2004.
Macquarie does present Yellow Brick Roads with a strong financial services partner, with over $340 billion in assets on its balance sheet as well as strong track record as a mortgage funder. Macquarie provided non-banks with wholesale funds prior to the GFC – raising over $40 billion through securitisation.
As Stephen Bartholomeusz wrote yesterday in Business Spectator, Macquarie has an “exceptionally competitive source of funding for a large-scale entry into retail banking”.
And of course, Bouris himself will be the ringmaster, using his media connections and personality to promote Yellow Brick Road offerings.
“Cheap funding, low distribution costs and Bouris’ ability to market the brand represent a potentially potent competitive combination in a home loan market that is low-growth and where the margins have been compressed by the funding cost pressures,” says Bartholomeusz
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lschlesinger-FZcF9M3vE6

Yellow Brick Road confirms Macquarie Bank funding deal to challenge major bank mortgage dominance

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Sydney estate agent John McGrath has joined Aussie Home Loans boss John Symond by describing the RBA Melbourne Cup Day rate decision as “disappointing”, arguing the housing recovery has been limited to the more affordable end of the market.
“I think the RBA is over-estimating the depth of the market,” says McGrath, CEO of McGrath Estate Agents.
“The real recovery has been limited to the first-home buyer markets.
“Above $1 million there is no real depth.”
McGrath says a further two rate reductions in the short term would allow the market to gain some momentum “which in turn will provide activity and confidence in not only the housing market, but all associated sectors.
“I hope that they reduce rates pre-Christmas and again in early 2013 to give borrowers the incentive they need to transact,” he says.
In his spring 2012 market update,  John McGrath says falling interest rates and prices have attracted first-home buyers into the market helped by the introduction of the new first-home owner grant.
“Rising rents have incentivised many tenants to shift into home ownership,” he says.
Looking ahead, McGrath says he believes that “real estate markets in most parts of Australia, certainly Sydney, are past the worst and heading for some blue skies in 2013”.
“That’s not to say I expect either a straight line growth recovery or an instant uplift in prices. Neither of these outcomes is likely.”
McGrath believes that a key catalyst for an upper-end housing market recovery will be the share market.
“Interest rates, rents and unemployment are not really influencing factors for the top end. Many luxury owners are still awaiting some clearer resolution on the macro economy and the euro zone before jumping back into the market,” he says.
Yesterday, Aussie Home Loans boss John Symond slammed the RBA's decision to hold the cash rate at 3.25% accusing the RBA of not being in sync with what is happening in the real economy and of making <a href="https://www.propertyobserver.com.au/news/property-market-unlikely-to-feel-too-much-pain-from-rba-rate-decision/2012110657644">“pretty odd decisions”.</a>
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RBA decision disappoints as property recovery limited to first-home buyer market: John McGrath

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Perth prime office rents have grown at more than three times the national average over the year to September, according to the latest CBRE national office market report.
Spurred on by better economic growth and resources-led demand for office space, Perth net face rents have risen 12.9% between September 2011 and September  2012 compared with 3.4% increases in Melbourne rents and 3.2% increases in Sydney rents over the same time frame.
The national average growth rate for major capital city office rents over this period was 3.9%.
In a previous update, CBRE said mining giant BHP Billiton accounted for around 43% of the total net office space (115,000 square metres) leased over the first six months of 2012 with the premium Perth office vacancy rate currently well under 2%.
Net face rents in other major CBD office markets – Brisbane, Adelaide and Canberra – have been flat over the 12 months to September.
Net face rents refer to the quoted rental rate (exclusive of any negotiated or offered discounts) and exclude building outgoing costs.
Looking ahead over the current financial year to June 2013, Perth is again expected to be the top performer with projected net face rental growth of 8% with Sydney (3%) and Adelaide (2.7%) performing better than Melbourne (1.5%).
<img height="154" width="429" src="/images/stories/2012/11/office_rents.gif" alt="office_rents"> Source: CBRE
Nationally, CBRE is forecasting rental growth to soften over the course of the 2013 financial year while CBD office capital values are expected to hold firm due to the uncertain economic outlook.
CBRE’s Australian head of research, Stephen McNabb, says there are both cyclical and structural factors that are resulting in subdued tenant demand relative to historic averages.
Cyclical factors include the two-speed economy, which has headline GDP growing at a 3.7% but according to McNabb “largely reflects significant growth in engineering investment activity supporting the mining industry”
“The broader economy has been growing at well below trend rates and forward indicators such as job vacancies, below average consumer and business confidence, and sluggish credit growth suggest that the economy will continue at a similar pace in the next 12 months.”
Structural factors include an increasing shift towards activity based working (work teams that don't have allocated work stations) which is reducing employee floor space ratios.
CBRE regional director of office services, James Patterson, says Perth remains the standout in relation to prospects for future rental growth, given the strength of the local economy and continued resources sector investment.
“Sydney is more heavily aligned to finance and insurance tenants who have been experiencing pressure on revenues and are aggressively managing expense growth and employee head countsPatterson said.
“The Victorian economy has also been slowing and employment growth is easing after a period of strong growth, which had been spurring demand for office space in Melbourne,” he says.
CBRE also highlights a shift in the growth prospects for the other resource-driven capitals of Adelaide and Brisbane.
“The Brisbane market has also been subdued, given weaker economic growth of late as a result of resource sector uncertainty and space consolidation by the State Government, although the expectation is that growth will gather momentum going forward,” says Patterson.
“Falling commodity prices have also impacted on markets such as Adelaide, as highlighted by the shelving of BHP’s Olympic Dam expansion, which would have provided a significant boost to the South Australian market.”
 
 
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Perth CBD office rents growing at three times national average

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Borrowers looking to take a punt on future cash rate decisions by the RBA should listen to ANZ, according to CommSec chief economist Craig James.
ANZ was the only major bank to correctly tip the RBA to leave the cash rate unchanged yesterday at 3.25% with Westpac, Commonwealth Bank and NAB all forecasting a rate cut.
James tweeted:
<div class="stream-item-header" style="color: #333333; font-family: Arial, sans-serif; font-size: 14px; line-height: 18px; background-color: #f5f5f5;"><a class="account-group js-account-group js-action-profile js-user-profile-link js-nav" href="https://twitter.com/craigjamesOZ" data-user-id="242979193" style="color: #999999; text-decoration: none;"> Craig James ?<s style="text-decoration: none; color: #bbbbbb;">@</s>craigjamesOZ</a></div>
Best interest rate forecaster this year: ANZ. I've looked at the 10 meetings. Most economists got it right on 7 of 10 meetings.
<div class="stream-item-footer" style="font-size: 12px; padding-top: 1px; color: #333333; font-family: Arial, sans-serif; line-height: 18px; background-color: #f5f5f5;">
<div class="context"></div>
<a class="details with-icn js-details" href="https://www.propertyobserver.com.au/https://twitter.com/craigjamesOZ/status/265923044139225088" style="color: #999999; text-decoration: none; font-size: 12px; display: inline-block; margin-right: 2px;">Expand</a> 
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</ul>
</div>
The chief economist at ANZ is Warren Hogan.
The other economists (polled by Bloomberg last week) that correctly tipped the cash rate to remain on hold yesterday were from Barclays Capital, Citi, Goldman Sachs, J.P Morgan, Merrill Lynch and TD Securities.
 
 
 
 
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ANZ best at forecasting rate calls: Tweet of the day

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The aspirations of Mark Bouris to take on the major banks once again appear to be gathering steam with Macquarie Group tipped to provide wholesale mortgage funding to his Yellow Brick Road wealth management franchise business.
Yellow Brick Road has placed its shares in a trading halt today ahead of an announcement on Friday (November 9) in relation to speculation about "potential distribution deal with a major Australian Financial Institution".
Bouris has hinted at his desire to not only take on the major banks – as he did during the late 1990s and early 2000s through Wizard Home Loans – but also to obtain a banking license for Yellow Brick Road.
He hired former NAB home loans executive Matt Lawler as<a href="/news"> Yellow Brick Road CEO </a>last year.
A report in The Age, quoting “sources close to the deal” said Macquarie-funded home loans sold via Yellow Brick Road would seek to undercut the major banks by a full percentage point.
Bouris made his money from his Wizard mortgage broking business, which he eventually sold to GE Money for about $500 million in 2004.
He founded Yellow Brick in 2007 to sell investment services in former Wizard Branches and now has more than 140 branches across the country.
Aussie Home Loans bought the Wizard brand and franchise network from GE Money in December 2008, changing the stores to the John Symond brand.
Macquarie provides home loans through its banking and financial services group with APRA September banking figures showing that Macquarie has a mortgage book of around $4.5 billion, ranking it as the 14th biggest bank lender and a long way behind the smallest of the big four banks, ANZ, which has a mortgage book of $170 billion.
It also offers a portfolio of mortgage products aimed at both investors and first-home buyers.
Prior to the GFC Macquarie provided wholesale mortgage funding through its PUMA securitisation program but stopped originating new mortgages in March 2008 when the GFC made it significantly harder to access wholesale funding at competitive rates. It has since returned to the securitisation market.
Macquarie also has a play in the mortgage distribution space, facilitating the creation of aggregator Vow Financial through the merger of a number mid-tier mortgage broking businesses and maintains a minority holding in this venture.
In its most recent half-year results Macquarie notes that its “mortgages business continued to grow through targeted distribution and quality products”.
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Macquarie Group set to fund Yellow Brick Road home loan assault on major banks 

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The decision by the RBA to leave the cash rate on hold at 3.25% on Melbourne Cup Day took many economists, punters and borrowers by surprise.
Three out of four of the major banks had tipped the cash rate to fall to 3% with only ANZ making the correct prediction.
Westpac chief economist Bill Evans called yesterday’s post-decision statement by RBA governor Glenn Stevens “perplexing” noting that “comments on the domestic economy seem to be straining to identify good news”.
“Some signs of ongoing growth in consumption were identified; some indications of a prospective improvement in investment in dwellings were also noted while the housing market was described as "has strengthened" and business credit had increased. All these signs are correct but the improvement is tepid and should be further boosted with lower rates,” says Evans.
Despite the official borrowing rate remaining unchanged, borrowers can still find very low fixed and variable offerings.
The following results are based on advertised mortgage rates listed by <a target="_blank" href="https://www.ratecity.com.au/">ratecity.com.au</a>, <a target="_blank" href="https://mozo.com.au/">Mozo.com.au</a> and <a target="_blank" href="https://www.infochoice.com.au/">infochoice.com.au</a> as of November 7:
Lowest variable rate offerings:
<table width="470" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td width="134" valign="top">
Provider
</td>
<td width="124" valign="top">
Loan name
</td>
<td width="97" valign="top">
Rate
</td>
<td width="116" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="134" valign="top">
Loans.com.au
</td>
<td width="124" valign="top">
Dream Catcher blackboard special
</td>
<td width="97" valign="top">
5.42%
</td>
<td width="116" valign="top">
5.44%
</td>
</tr>
<tr>
<td width="134" valign="top">
My Mortgage Freedom
</td>
<td width="124" valign="top">
Low rate (LVR up to 75%)
</td>
<td width="97" valign="top">
5.43%
</td>
<td width="116" valign="top">
5.74%
</td>
</tr>
<tr>
<td width="134" valign="top">
UBank
</td>
<td width="124" valign="top">
UHomeLoan refinance only
</td>
<td width="97" valign="top">
5.47%
</td>
<td width="116" valign="top">
5.47%
</td>
</tr>
</tbody></table>
Lowest one-year fixed-rate offerings
<table width="470" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td width="137" valign="top">
Provider
</td>
<td width="123" valign="top">
Loan name
</td>
<td width="95" valign="top">
Rate
</td>
<td width="114" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="137" valign="top">
Community First Credit Union
</td>
<td width="123" valign="top">
12 month fixed home loan
</td>
<td width="95" valign="top">
4.99%
</td>
<td width="114" valign="top">
6.46%
</td>
</tr>
<tr>
<td width="137" valign="top">
Greater Building Society
</td>
<td width="123" valign="top">
Ultimate Home Loan Package Standard Fixed one year 
</td>
<td width="95" valign="top">
4.99%
</td>
<td width="114" valign="top">
6.01%
</td>
</tr>
<tr>
<td width="137" valign="top">
My Mortgage Freedom
</td>
<td width="123" valign="top">
Fixed rate (LVR &lt;75)
</td>
<td width="95" valign="top">
4.99%
</td>
<td width="114" valign="top">
5.81%
</td>
</tr>
</tbody></table>
Lowest three-year fixed-rate offerings
<table width="470" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td width="133" valign="top">
Provider
</td>
<td width="133" valign="top">
Loan name
</td>
<td width="97" valign="top">
Rate
</td>
<td width="108" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="133" valign="top">
Pacific Mortgage Corporation
</td>
<td width="133" valign="top">
PMG Fixed (three years)
</td>
<td width="97" valign="top">
5.19%
</td>
<td width="108" valign="top">
5.43%
</td>
</tr>
<tr>
<td width="133" valign="top">
Resi
</td>
<td width="133" valign="top">
Flexi Fix Plus 75
</td>
<td width="97" valign="top">
5.29%
</td>
<td width="108" valign="top">
5.99%
</td>
</tr>
<tr>
<td width="133" valign="top">
CUA
</td>
<td width="133" valign="top">
Residential fixed three years
</td>
<td width="97" valign="top">
5.30%
</td>
<td width="108" valign="top">
5.9%
</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 target="_blank" href="/news">Refinancing and the Interest Rates Riddle</a>
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A guide to the lowest rate home loan offerings fixed and variable as of October 30 as RBA leaves cash rate at 3.25% 

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Ray White chairman Brian White has singled out the group's New Zealand estate agents for particular praise as the real estate business racked up $2.6 billion in sales across Australasia in October, a record over the past 12 months.
<a target="_blank" href="https://www.propertyobserver.com.au/https://twitter.com/brwhite/status/265542578693357568?uid=275380192&amp;iid=6c612cfc-9117-4a5a-9261-88cbb86657fe&amp;nid=12+47+20121105"><img src="/images/stories/2012/10/whitetweet.jpg"></a>
At the start of November, Brian White tweeted that early October results have "NZ a massive 66% above Oct 11".
"Even Christchurch better than pre-earthquake results! Who would have predicted?"
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NZ agents help Ray White to $2.6 billion October sales tally: Tweet of the day

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The Australian arm of global healthcare provider B Braun has leased the entire 2,709 sqm top floor of Vantage, a five storey office development in the Norwest Business Park in the outer north west Sydney suburb of Bella Vista.
The new lease takes the occupancy rate in Vantage to 50%.
B Braun Australia will pay $339 per square metre net per annum plus GST and is inclusive of 108 car parking spaces.
The deal was negotiated by Peter Beaumont of Norwest Commercial &amp; Industrial Real Estate, in conjunction with Colliers International and Balmoral Partners.
Other large-scale tenants in the building are Caroma Bathrooms and Kitchens, and concrete products company Holcim (Australia).
The five storey office building at 7-9 Irvine Place with a five-star NABERS energy rating, comprises 12,278 square metres of net lettable office space and has one of Sydney’s largest floor plates.
It was developed by commercial property developer Presida and completed in January 2011 and its stand out feature is a 110-metre long, 8-metre high mural in a ‘geometric abstraction’ style, which forms its base facing Old Windsor Road.
Presida has two other developments in the business park - Sky City (30,000 square metre over five storeys) and T1( 25,000 square metres over twin four storey office towers) .
 B Braun Australia will join a number of blue chip tenants in the office park including Woolworths, which has its head office at 1 Woolworths Way along with Actron Air, Resmed, AAMI, Westpac, Capital Finance and Bankwest.
Globally, B Braun employs around 44,000 employees in more than 50 countries with annual turnover of $5.6 billion.
 
B Braun Australia has signed a five year lease renewal options with deal including major signage to Old Windsor Road where an estimated 40,000 vehicles pass every working day.
The company is expected to occupy the premises from late November.
Construction of a new train line linking the office park to Chatswood as part of the North West rail link is due to begin in 2014 and be completed by around 2020.
First-stage approval for the project was granted in October by the NSW state government.
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Healthcare giant B Braun signs whole-floor lease in Bella Vista office park 

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Consumer sentiment towards the housing market may be the biggest casualty from yesterday’s unexpected decision by the RBA to leave the cash rate on hold on Melbourne Cup Day.
However, its impact on the property market and prices is likely to be small with interest rates offered by lenders already very low (with fixed rates continuing to fall) and with housing data from both ABS and RP Data showing the housing market treading water at the moment with no major adjustment in prices despite rate cuts in May, June and October.
Over the three months to October, RP Data has capital city property prices down 0.6% while preliminary ABS September quarter figures have capital city house prices up a negligible 0.3%.
Sentiment about the housing market has been improving with the Westpac-Melbourne Institute Consumer House Price Expectations Index posting a solid gain in October, rising 9.1pts from 25.2 in July to 34.4 in October.
“The rise is not surprising given the further interest rate easing in October and evidence of a stabilisation in house prices nationally,” said Westpac senior economist Matthew Hassan.
Yesterday, following the release of the ABS housing data and just before the RBA announcement, Hassan said despite a "promising improvement" in auction clearance rates and sentiment readings in October, the expectation remained that “prices will tend to 'consolidate' near term before further rate cuts drive a clearer recovery mid to late next year”.
With most economists tipping another rate cut – possibly two – in the next few months, the decision by the RBA to hold back in November is likely to do no more than ruffle the feathers of some in property and mortgage lending circles, moderately disappoint borrowers and please savers.
Indeed, while activity has picked up some sectors of the housing market and there was a mini-four month rally in property prices (as recorded by RP Data) part of this could be attributed to the busier spring selling as to the lower interest rate settings.
Among those to slam was did slam the decision was Aussie Home Loans chairman John Symond who called it “very disappointing”.
Symond has been on a crusade against the RBA in recent months calling it “asleep at the wheel” and not reacting fast enough to changes in the economy.
“It’s very disappointing and a lost opportunity to help manufacturers and retailers in the lead-up to Christmas,” Symond in an interview on Channel 7's Sunrise this morning, though he made no reference to either the mortgage market or property prices.
However, he did make the point about the rate hold creating uncertainty in the minds of consumers.
“The decision will create more uncertainty as expectations were high for a rate cut.
“Confidence is everything - there is not much confidence out there."
Symond says a rate cut is needed in December but would not go so far as to say the RBA would do so.
“They don’t seem to be in sync with what is happening in the real economy. They are making some pretty odd decisions and overall it’s pretty disappointing,” he said.
Property market analyst Margaret Lomas tells Property Observer that while investors and home buyers may have been appreciative of a further cut, “we are already in an environment where rates are at a low which we have not seen for some time”.
She says the property market has already shown signs of movements, "albeit small ones, on the back of the prior interest rate cuts".
“The stimulus has occurred and affordability has returned to the market.  Prepayments on mortgages are at an all- time high and many mortgage holders are feeling a security.  I think that few were too disappointed in not seeing another cut and I doubt that this failure to drop rates will have too big an impact on the recovering market.
“I also believe that Australians are more informed and many understand the significant benefits which occur in our economy if the Reserve bank continues with careful measures.  It’s important to keep rates at realistic levels, just as occurred during the GFC, to protect all Australians in these unstable world economic times,” says Lomas.
 
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Property market unlikely to feel too much pain from RBA rate decision

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A landmark historical commercial building in the Melbourne bayside suburb of Williamstown that was once the premises of turn-of-the-century grocer Robert Punshon has sold for $2.5 million.
The two-storey freehold building, designed by local architect CJ Polain and built by James Rowsthorn in 1890, was sold to Wayne Elly, owner of Greg Hocking Elly partners.
The building was marketed and sold by Fitzroys Associate James Gregson.
<img src="/images/stories/2012/10/ferguson1.jpg">
Elly will use the building as his business premises.
According to Victorian Heritage the building is a “novel adaptation” of the English Queen Anne architectural style and notable for its ornamental façade, which houses a bas-relief bust of its original owner, Robert Punshon.
Punshon operated from the shop under the name of Punshon’s Federal Stores.
Most recently the property had been occupied by Marks Brothers electrical store for over 20 years.
It was sold with vacant possession with the vendor being local businessman John Marks.
The Williamstown Chronicle reported in 1904 that both 82 -84 Ferguson Street and 78 Ferguson Street were sold by "Mrs. R. Punshon to W.N. McAlister and Co., a grocery, wine and spirit business".
John Pentase, a grocer and the ES&amp;A Bank shared the premises in the 1920s.
Victorian Heritage notes that the building is of historical significance as it “perhaps best illustrates the increasing importance of Ferguson Street as the main commercial centre of Williamstown during the latter half the nineteenth century”.
“It is also notable for its original and long association with the locally important Punshon family and for its long use as a grocery.”
The 750 square metre building comprises ground floor retail space, a grand first floor dwelling and a basement.
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Local estate agent Wayne Elly buys historic former Williamstown grocer for $2.5 million

<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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