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The last of the big four banks, Westpac, has reported its 2012 annual results, with the country’s second-biggest mortgage lender recording record cash earnings of $6.6 billion for the year ending September 30.
However, it managed just 4% growth in mortgage lending over the group (3% within the Westpac brand) over the course of the financial year with funding costs rising as it shifts its funding mix towards a greater reliance on customer deposits.
For their respective financial years <a href="/news">NAB</a> reported 9.9% annual growth in mortgage lending, <a href="/news">ANZ</a> managed mortgage growth of 7% and <a href="/news">Commonwealth Bank</a>, mortgage growth of 4%.
System growth in mortgage lending for the year to September has been 4.7%, according to RBA financial aggregate figures.
The $6.6 billion cash profit figure was Westpac’s third consecutive record result – cash profit excludes one-off financial items.
Statutory net profit, which does include one-off financial items, fell 15% to $5.97 billion, reflecting a previous year benefit of a one-off St.George tax consolidation.
Westpac maintained its 26% share of the national home loan market growing its total mortgage book by $11.7 billion from $304.6 billion to $316.3 billion.
However, line-of-credit lending (used primarily by investors) declined from $35 billion to $32.6 billion.
Westpac Group CEO Gail Kelly called the bank’s performance a “strong result in a lower growth economic environment”.
The bank reported its net interest margin down five basis points for the year at 2.17%, attributing this decline to higher funding costs, mostly from the increased benefit customers received from higher deposit interest rates relative to market rates.
“Strengthening our balance sheet and improving our funding profile has been a key area of focus in recent years," says Kelly. 
"At our half year results, I stressed that a priority was growing deposits so I am pleased that our total customer deposits grew 12% or $38 billion this year, more than funding our growth in loans. Combined with a reduction in short-term wholesale debt, this has materially improved our funding mix."
 Kelly says a highlight of the result was the strong performance of the new Australian Financial Services division (AFS), which includes the Australian retail banking, business banking and wealth operations, where cash earnings increased by 14% to $2.1 billion as deposits and loans grew.
Among the subsidiary businesses, St George’s earnings flat compared to the previous year, at $1.2 billion.
Westpac says all its brands (the others being BankSA; Bank of Melbourne; and franchised mortgage lender RAMS) “contributed to the good momentum”.
The bank declared a record fully franked final dividend of 84 cents per share, up 2 cents, or 2% over first half 2012.
Total dividends for the year were 166 cents, up 6% over the prior year, and reflected a pay-out ratio of 77%.
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Westpac records record cash profits of $6.6 billion but sluggish mortgage lending amid higher funding costs

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NIMBYism (not in my backyard) and "save our suburbs" campaigns by local residents and councils are one of a number of factors that will inhibit a strong residential building recovery despite rising pent-up demand for new housing, according to Paul Braddick, head of property research at ANZ.
In his latest update, Braddick lists the difficulty in obtaining dwelling construction approval due to both red and green tape (environmental concerns) as a key factor that will result in a subdued recovery, rather than a stronger one.
The other factors that will impinge on the recovery, he says, are soft house price expectations, rising building costs, a squeeze on developer profit margins, substantial infrastructure charges and developer contributions, problems with land availability, affordability and accessibility, insufficient infrastructure (especially transport) and tight credit conditions.
According to Braddick, there is strong pent-up demand for new housing with many conditions favouring a solid recovery including falling interest rates, improved market sentiment and house prices appearing to have bottomed out in most capital cities.
Braddick says total dwelling approvals have risen by almost 12% in trend terms since their low point in January this year, but says the upswing has been almost exclusively driven by a one-third jump in apartment approvals, while detached house approvals remain "near cyclical lows equal to the lows of the past 30 years, excluding the post-GST introduction".
 
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ANZ doubts the boom in apartment building’s share of new building activity (now above 40%) is sustainable given that detached housing makes up 75% of the existing housing stock
 
“While we continue to expect a affordability-driven structural shift away from traditional landed property towards higher-density living, we believe this will be a gradual, longer-term adjustment, rather than as dramatic as suggested in recent data," says Braddick.
ANZ forecasts real dwelling investment (seasonally adjusted) growth to have turned positive in the September quarter 2012 and for 138,000 and 146,000 dwellings to be completed in 2012-13 and 2013-14, respectively, compared with 142,000 in 2011-12.
However, the recovery will not be uniform with ANZ predicting “solid cyclical residential building recoveries for New South Wales, Queensland, Western Australia and the Northern Territory, but weak activity in Victoria, South Australia, Tasmania and the Australian Capital Territory in the near term.
This is due to a “marked de-synchronisation of home building cycles across the states” with Melbourne, Adelaide, Perth, Hobart and Canberra bucking the national trend in recent years and having “actually significantly out-performed relative to their long-run average home building activity levels”.
Overall though, Braddick warns that the recovery will “disappoint despite the urgent need for additional housing stock".
“The total decline in interest rates in the current cycle is small compared with earlier cyclical upturns.
 “Moreover, economic uncertainty and heightened debt aversion mean the responsiveness of households and home buyers to lower interest rates is likely to be significantly lower in this cycle than before, though strong population growth means there is more pent-up demand.
“For all of the above-mentioned reasons, we suspect the current upswing in new dwelling approvals and building activity will disappoint relative to previous recoveries and existing market expectations.
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NIMBYism to impact on subdued two-speed recovery in new home building: ANZ

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First-home buyers in Victoria who sign contracts to purchase their first homes with a 60-day settlement now stand to benefit from increased stamp duty concessions that formally begin on January 1, 2013.
Savings will range from around $2,000 to just over $3,000 depending on the value of the home they purchase.
In addition, the first-home buyers' grant of $7,000 remains in place in Victoria for both new and established first-home purchases.
Real Estate Institute of Victoria chief executive Enzo Raimondo says many first-home buyers may not realise that homes bought as of last weekend (November 3) with 60-day settlements will be eligible to benefit from the lower stamp duty because they pay stamp duty when settlement of their purchase occurs, not when they sign a contract.
“Settlement occurs on the day the balance of the purchase price is paid and the property’s title document is handed over to the buyer.
“This means that if you are buying your first home right now, you meet the eligibility criteria and your settlement date is 1 January or later, you will be eligible for the 30% discount on stamp duty.
“This is unlike the first-home buyer grant, which applies from the date the contract is signed."
From January 1 the Victorian government will increase the current 20% discount is to 30% up to a total purchase price of $600,000.
Currently a home bought by a first-home buyer price at just under $600,000 is eligible to pay stamp duty of $24,808.
This decreases to $21,701 from January 1 – a savings of $3,101.
The stamp duty cut increases to 40% on January 1, 2014 and then to 50% on September 1, 2014. 
<a target="_blank" href="https://www.sro.vic.gov.au/SRO/SROCalcs.nsf/transfer?OpenForm#calc">This calculato</a>r provided by the Victorian State Revenue Office will help first-home buyers calculate their stamp duty bill.
The first-home buyers’ grant of $7,000 remains available for all those buying their first home for $750,000 or less. The grant is paid by the state government and has no scheduled end date. 
Raimondo says other key criteria for the stamp duty cut are that the total purchase price must not be over $600,000, it must be a first home and the buyers must live in it as their primary place of residence.
 “If you are looking to purchase at the moment, it is sensible to establish your eligibility with the State Revenue Office before you commit to a purchase. The first step is to look at the information at the SRO website.
 “Overall, the cut is good news for those buying their first home and it will be worth an additional $2,377 on a home valued at $530,000. This will bring the total stamp duty cut on the median priced home from $4,754 to $7,131,” Raimondo says.
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Victorian first-home buyers increased stamp duty benefits take effect with savings of up to $3,100

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With a total year-on-year returns of 16.6% for houses and 9.6% for units and yields of 6% in the year to October, Darwin has solidified its reputation as very desirable location for property investors.
RP Data senior research analyst Cameron Kusher says much of this growth is being driven by the mining and resources sector as well as spending from the public sector.
<table cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td width="99" valign="top"> </td>
<td width="78" valign="top">
MEDIAN HOUSE PRICE
</td>
<td width="99" valign="top">
QUARTERLY CHANGE
</td>
<td width="79" valign="top">
RENTAL YIELD
</td>
</tr>
<tr>
<td width="99" valign="top">
OCTOBER
</td>
<td width="78" valign="top">
$525,000
</td>
<td width="99" valign="top">
1.2%
</td>
<td width="79" valign="top">
5.9%
</td>
</tr>
<tr>
<td width="99" valign="top">
SEPTEMBER
</td>
<td width="78" valign="top">
$534,000
</td>
<td width="99" valign="top">
3.6%
</td>
<td width="79" valign="top">
6%
</td>
</tr>
<tr>
<td width="99" valign="top">
AUGUST
</td>
<td width="78" valign="top">
$545,000
</td>
<td width="99" valign="top">
4.8%
</td>
<td width="79" valign="top">
5.7%
</td>
</tr>
<tr>
<td width="99" valign="top">
JULY
</td>
<td width="78" valign="top">
$543,500
</td>
<td width="99" valign="top">
4%
</td>
<td width="79" valign="top">
5.7%
</td>
</tr>
</tbody></table>
 
<table cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td width="86" valign="top">
 
</td>
<td width="86" valign="top">
MEDIAN UNIT PRICE
</td>
<td width="99" valign="top">
QUARTERLY CHANGE
</td>
<td width="75" valign="top">
RENTAL YIELD
</td>
</tr>
<tr>
<td width="86" valign="top">
OCTOBER
</td>
<td width="86" valign="top">
$427,000
</td>
<td width="99" valign="top">
2.7%
</td>
<td width="75" valign="top">
6%
</td>
</tr>
<tr>
<td width="86" valign="top">
SEPTEMBER
</td>
<td width="86" valign="top">
$423,000
</td>
<td width="99" valign="top">
5.5%
</td>
<td width="75" valign="top">
6%
</td>
</tr>
<tr>
<td width="86" valign="top">
AUGUST
</td>
<td width="86" valign="top">
$420,000
</td>
<td width="99" valign="top">
7.1%
</td>
<td width="75" valign="top">
5.8%
</td>
</tr>
<tr>
<td width="86" valign="top">
JULY
</td>
<td width="86" valign="top">
$410,000
</td>
<td width="99" valign="top">
-0.2%
</td>
<td width="75" valign="top">
5.9%
</td>
</tr>
</tbody></table>
 Source:<a target="_blank" href="https://www.myrp.com.au/"> RP Data</a>. Note the median price is the middle price of all settled sales over the three months to the end of the final month.
However, Kusher also notes that the recent rise in Darwin house values – up 10.6% for the year to date for houses and up 8.9% for units – has come following a “fairly significant correction in values through most of last year”.
“At one point last year Darwin values were down 15% on an annualised basis.
“Values have increased, but they can be volatile," Kusher says, pointing out that because Darwin is tied to the mining boom it is very dependent on demand from China.
Apart from the mining and resources sector boost and public sector investment, Kusher says there are also “significant incentives” from the Northern Territory government to encourage property purchases.
Currently the NT government continues to offer a $7,000 first-home owner grant for both existing and new homes (in contrast to NSW and Queensland, which offer $15,000 for first-home buyers buying a new home but nothing for existing homes) as well as a $10,000 'BuildBonus' for home buyers building or purchasing a new home until the end of 2012. In addition the NT government also offers a first-home owners stamp duty concession of up to $26,730 (the duty owned on the first $540,000 value of a property).
Kusher says the Darwin market is also appealing to investors because many people won’t live there long term.
“There are a lot of renters and people who don’t stay long. This means more opportunities for investors to negotiate the rent upwards when new tenants move in,” he says.
Kusher expects the Darwin property market to trend higher in the long term, but “perhaps not at same rate it is currently trending upwards”. 
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Darwin well-positioned as investor hotspot but dependent on mining and public sector: RP Data

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The vast majority of economists still expect the RBA to cut the cash rate by 25 basis points to 3% on Melbourne Cup Day.
Some 20 out of the 27 economists polled by Bloomberg today expect the cash rate to be lowered on November 6 – just one fewer than the 21 who expected a rate cut when polled last week.
However, ANZ remains notably among those expecting rates to stay on hold.
“Following the slightly higher-than-expected third-quarter CPI inflation data last week we pushed back our call for a 25-basis-point cut in the cash rate from November to December," says ANZ.
“We did this not because we don’t think there are good reasons to lower rates now – we certainly do – but because the CPI outcome and somewhat better data flow from overseas complicates the picture.
“The RBA may choose to wait another month by which time they will have further labour market information and a better read on third-quarter GDP growth (from partial indicators).
“Market pricing suggests around a 50% probability of a rate cut next Tuesday,” says ANZ.
The other institutions not tipping a rate cut next week are Barclays Capital, Citi, Goldman Sachs JP Morgan, Merrill Lynch and TD Securities.
Westpac chief economist Bill Evans expects the Reserve Bank to cut the cash rate but highlights that there is considerable uncertainty about the Tuesday decision.
However, he says recent comments by deputy governor Philip Lowe, that the “very low interest rates in many other economies should not be seen as a good thing or something to aspire to” should not be interpreted to mean rates can’t go any lower.
Evans says if there is no move next week and there is no indication in the RBA’s monetary policy statement to the contrary, “then we can only conclude that the [September quarter] inflation report has (in our view unjustifiably) prompted the bank to delay any easing decision until there is more information available including the inflation profile".
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RBA still likely to cut the cash rate on Melbourne Cup Day: Bloomberg survey

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The Queensland government's well-documented cost-cutting drive has impacted on the performance of the Westlawn Property Trust, an unlisted property fund managed by Clarence Property.
In its latest newsletter to investors, Clarence Property, based in Ballina, writes that the vacancy rate at its 29 level office building at 307 Queen Street in the Brisbane CBD has increased from 4.91% to 19.56% following Queensland government staff cutbacks.
The building, which offers 20,000 square metres of lettable office space, currently has four floors vacant.
This compares to a vacancy rate across the whole portfolio of just 3.89% as of June 2012 an 19.1% improvement on the June 2011 vacancy rate of 4.81%.
“The government cutbacks, combined with a slowing in the mining industry are likely to create difficulty leasing this space in the near-term.
“This vacancy has an obvious detrimental impact on rental income,” says Clarence Property.
The trust paid investors a distribution rate of 4c per unit per annum for the year to June 2012, unchanged from the previous year, after reporting a 7.1% improvement in net operating profit of $5.46 million.
In its newsletter, Clarence Property notes that it has continued to monitor the trust’s cash flow position with a view to being able to increase the distribution rate, but due to the increased vacancy at 307 Queen Street it remains “unable to announce a distribution rate increase”.
A further update will be provided to investors in December.
Clarence Property managing director Peter Fahey described the 2012 financial year performance of the trust as “acceptable” in what transpired to be a “difficult leasing year”.
Looking ahead, Fahey says the trust expects “moderate returns from direct commercial property (office) over the next 12 months".
“Performance will be largely dependent on tenant demand. Vacancy levels in Australian office markets are expected to rise slightly as white collar employment growth continues to be modest at best.
“Vacancy rates in the Brisbane office market, where the trust has its largest exposure, are expected to increase over the next year or so as a result of government staffing cutbacks and a pause in the mining industry," he says.
Fahey says the trust’s primary short-term focus is to fill the vacant space at 307 Queen Street.
Clarence Property paid $76.5 million when it acquired the Queen Street office tower in September 2002.
In currently has a book valuation of $127 million and comprises 46% of the value of all the properties in the trust, which stands at $274 million.
Other properties in the trust include a five-storey office building at 29 Molesworth Street in Lismore leased to the NSW government and Family Law Court of Australia, the Byron West Shopping Fair in Byron Bay, the Easy T Centre in Robina and the Yamba Shopping Fair.
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Queensland government cutbacks hurt Westlawn Property Trust

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The number of residential properties listed for sale in Melbourne fell by 1.4% over the busy month of October, lending some support to what is considered an oversupplied housing market currently favouring buyers.
Melbourne online listings fell from 51,564 to 50,861 from September to October with year-on-year figures now down 0.8%.
This was the steepest monthly fall recorded of all the major capital city markets in contrast with the nation result which was virtually unchanged (up 0.3%) at 374,445 a mere difference of 1,071 listings compared with September.
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SQM Research managing director Louis Christopher called the October data a surprise result.
“We were expecting listings to rise in October following the steady result in September and to be fair some capital cities have recorded a rise, but overall it is becoming clear to us that this is an abnormal result for this time of year and suggests to us that stock is being absorbed by buyers and/or vendors have been withdrawing their listings.
“We are starting to believe that it is the former rather than the latter,” he says. Matching strong recent price gains, Darwin registered the strongest decline in residential listings of all capital cities falling 2.7% to just 1,166 properties for sale – down 26.3% year-on-year.
In contrast, Sydney recorded a 4.5% increase in listings over October to 31,773 while Perth gained 1% to 17,689.
This was a reversal of what happened in September, the first month of the spring selling season, when Melbourne recording a 0.7% rise in online residential property listings while both Sydney (-2.9%) and Perth (-3%) both recorded noticeable declines.
However, both Perth and Sydney listings are more than 10% down on a year ago while Brisbane listings are down 5.5% (28,585) on a year ago, following a 0.9% fall over October.
RP Data-Rismark figures show a 0.8% rise in the Melbourne house price to the October quarter to a median of $508,000 while unit prices are down 1.3% to a median of $420,000.
RP Data senior research analyst Cameron Kusher says he expects Melbourne property prices to bounce along near the bottom for the next 12 to 18 months.
In October BIS Shrapnel managing director Robert Mellor predicted an exodus of Melbourne investors with a big rise in new apartments being completed in Melbourne over the next two to three years exacerbating the current oversupply of housing.
According to property market analyst Michael Matusik ,since 2009, Victoria has created 69,000 too many new dwellings, representing “about a two-year oversupply based on the current annual underlying demand for 34,000 new dwellings across the state”.
SQM Research notes that Canberra (6%) and Sydney (4.5%) have experienced the most noteworthy month-on month increases.
“As the spring selling season is well under way, the increases in these capital cities do not come as a surprise; what is surprising however, is that stock levels have not swollen dramatically during spring as is usually seasonally expected,” says the firm.
“This is perhaps a potential indicator that the market has begun to recover – albeit modestly."
 
 
 
 
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Declining October Melbourne residential listings bring some balance to market

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A guitar shop on trendy Dank Street in Waterloo in Sydney’s inner south is being marketed at small investors and those with self-managed super funds offering an attractive gross yield of 8%.
The guitar shop occupies shop 6 at 9-15 Dank Street, a mixed-use building developed and built by family-owned property development and investment company Manicaland five years ago.
The 69-square-metre shop has an asking price of $474,000 plus GST and is currently leased to Playa Playa on a five-year lease, which commenced in August this year with a five-year renewal option.
Playa Playa is paying a starting rent of $38,000 per annum gross plus  GST with annual rent increases of 3%.
The property is being marketed by Anthony Tripodi and Steve Hawksley from City Alliance Property – Waterloo.
Alex Zylberberg from Manicaland tells Property Observer that looking at the profile of buyers of similar properties sold in the same building in the last couple of years suggests it will appeal to “small mum and dad investors who might already have a residential portfolio and are looking to diversify into commercial property”.
He says it would also appeal to small self-managed super funds.
“We are currently working with a couple of enquiries,” says Zylberberg.
Dank Street is the retail heart of urban regeneration in Waterloo, featuring cafes, boutique stores, galleries and studios, and is especially popular on weekends.
Well-known establishments in Dank Street include the Dank Street Bakery and supermarket Fratelli Fresh.
According to census 2011 figures <a href="/news">Waterloo </a>is Australia’s second most upwardly mobile suburb, with weekly household income rising 167% between 2001 and 2011.
Just around the corner from Dank Street, the Amelia Street Café premises measuring 70 square metres are also up for sale with an asking price of $485,000 plus GST.
The property is being sold by Michael Gould of Deans Property Broadway.
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Gross yield of 8% on offer for Dank Street guitar shop in Sydney's Waterloo

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Aussie Home Loans founder John Symond says the Reserve Bank must cut the cash rate on Melbourne Cup Day (November 6).
“Australia continues to be susceptible to economic shocks from overseas and small retailers and businesses are doing it tough as we head into the crucial Christmas retail season," Symond told Fairfax.
According to Symond, a rate drop would boost retail sales and the rest of the economy – especially employment – “providing much needed confidence to consumers”.
His calls for a rate cut come as the certainty of a Melbourne Cup rate cut shrinks from a sure bet a few weeks ago to now only a "50-50 call", according to Commonwealth Bank chief economist Michael Blythe.
Symond has been critical of the Reserve Bank for being too slow to move on rates in the past, accusing governor Glenn Stevens  and the RBA board of being<a href="https://www.propertyobserver.com.au/residential/recovering-housing-market-at-630-on-the-property-clock-with-no-risk-of-a-housing-bubble-john-symond/2012101157115"> “asleep at the wheel”.</a>
He has also dismissed arguments that lower interest rates could fuel a housing bubble.
“I am confident, notwithstanding a lot of hype from offshore analysts about a housing bubble, of Australia’s fundamentals,” Symond said in a speech in October.
Among those who disagrees with Symond on the need for a November rate cut is Annette Beacher, head of Asia-Pacific research at investment bank TD Securities.
Beacher says an expansion in Chinese manufacturing (as seen in an improvement in the Chinese manufacturing index from 49.8 to 50.2 in October) as well as a stronger than expected rise in inflation in the September quarter are two reason why the RBA should pause in November.
“The RBA can afford to pause at 3.25%t and 'wait and see' for the next round of monthly data, as well as assess the impact to date of previous easing," she said in a note to clients.
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RBA must cut the cash rate on Melbourne Cup day: John Symond 

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Dixon Advisory, the manager of the US Masters Residential Property Fund, does not expect storm damage from Hurricane Sandy to materially impact on the value of its portfolio of 249 rental properties in New Jersey and Brooklyn.
Yesterday, fund managing director Alan Dixon said low-lying properties in Jersey City, Bayonne and Hoboken had suffered damage as a result of Hurricane Sandy following inspections made by himself and other members of the fund's management team.
In an ASX statement, the fund said net asset value calculations on October 26 – prior to Hurricane Sandy making landfall in the New York Metropolitan area – was at $1.44 per share.
“An assessment of the impact of the storm on the portfolio is currently being undertaken," says the fund.
“While it is too early to precisely estimate the storm’s impact on the value of the portfolio, given the limited nature of the damage and the insurances carried by the fund, the responsible entity currently estimates there will be no material effect on the NTA.”
<a target="_blank" href="https://www.propertyobserver.com.au/international/dixon-advisory-to-undertake-significant-clean-up-of-new-jersey-properties-damaged-by-hurricane-sandy/2012103157557">An announcement yesterday</a> about damage to some properties in the portfolio did not impact on its share price, which is currently trading at $1.55, having traded in a range between $1.53 and $1.61 over October.
The ASX-listed fund bills itself as the first Australian fund to invest directly in US residential real estate with many of the investors being self-managed super funds.
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Dixon Advisory expects “no material impact” on the value of US residential portfolio following Hurricane Sandy

<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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