<html><body>
Big four bank ANZ reported a strong rise in both annual profits and mortgage lending but has warned of a tougher operating environment moving forward with funding costs rising.
The bank reported a 6% rise in annual profits to $5.7 billion with its mortgage book growing by 7% from $170 billion to $182 billion – well above system growth of under 5%.
ANZ also reported a 12 basis point drop in net interest margins over the year to September 30 for its Australian business reflecting “increased funding costs in particular from deposits", as well as asset pricing pressure in its institutional banking division.
ANZ chief executive officer Mike Smith said its Australian retail banking division (which includes mortgage lending) had “performed well across all segments”
“With the global economy softening, it’s clear that the post-GFC lower growth business environment will be with us for the foreseeable future, as will the requirement to operate with higher levels of regulatory capital and higher funding and liquidity costs.
“Although the operating environment in 2013 looks more challenging with stronger headwinds in a number of areas, our unique growth strategy and the momentum we have in adapting to the new environment means we are well placed to deliver value and performance to shareholders in 2013,” he added.
The quality of ANZ’s mortgage book remained strong with mortgage delinquencies continuing to decline across all bands (30, 60 and 90 days in arrears) “however softening economic conditions, particularly in regional Australia, drove increased provision charges”.
The bank grew its deposits base by 12% over the year with customer funding comprises 61% of total funding, with ANZ reducing its reliance on wholesale funding.
“ANZ continues to have the lowest wholesale funding requirement of its domestic peers," said Smith.
Shareholders will receive a total dividend for 2012 of $1.45 per share.
</body></html>

lschlesinger-FZcF9M3vE6

ANZ reports strong mortgage growth and annual profits of $5.7 billion but warns of “stronger headwinds” in 2013

<html><body>
Industry super fund AustralianSuper plans to more than double its investments in commercial property over the next five years, according to chairwoman Elana Rubin.
According to its most recent annual results to June 30, Australia’s biggest industry super fund has $4.54 billion invested in direct property through unlisted property trusts up from $4.17 billion in the previous financial year.
In speech to the Israel Australia Chamber of Commerce luncheon reported by the Australian Financial Review, Rubin said the super fund would look to invest in large, top-end shopping centres and also build on its portfolio of CBD offices and other commercial assets.
Rubin expects there to be greater competition from other super funds and institutional investors for premium commercial properties as well as a move to invest directly in assets rather than as passive investors in “pooled vehicles”.
She also expects AustralianSuper to increase its exposure to overseas commercial property assets from just 3% of its portfolio to 20% as competition heats up for local commercial core properties.
In its annual report, AustralianSuper says super members have the option to invest directly in a “range of Australian and international properties, including office buildings, shopping centres, hotels, resorts, factories and warehouses”.
“It’s designed for members seeking strong medium to long-term capital growth and lower volatility than shares”.
The annual report says AustralianSuper’s investments in infrastructure and direct property “continue to provide diversification benefits and to sustain strong long-term returns”.
“Our diversified strategy helped to reduce the impact of poorly performing share markets.”
More than half of AustralianSuper’s property investments are in the ISPT Core Fund, which holds 78 office, industrial and retail assets, including 500 Bourke Street in Melbourne, 363 George Street in Sydney and Central Plaza One on Queen Street in Brisbane.
AustralianSuper has $46 billion under management and 1.9 million members.</body></html>

AustralianSuper to double commercial property investments as part of diversification play

<html><body>
There were just 239 sales of vacant residential land and house-and-land packages on the Gold Coast over the September quarter, according to the latest Prodap report.
Of these 239 sales, 56 were house-and-land packages, with vacant lot sales totalling 183.
Report author Bill Morris says the Gold Coast residential land market continues to under-perform, though there are some exceptions, with developer Sunland finding a niche market for its architect-designed homes.
“The real standout was Sunland Group’s four projects at The Glades (Robina), Gardene at Pacific Pines, The Concourse at Royal Pines (Benowa), and The Address at Sanctuary Cove had all but sold out its available stock, with more to be released with strong pre-sales,” says Morris.
<img src="/images/stories/2012/10/glades.jpg">
“Sunland Group is operating in the mid-price range of $700,000 to $1.1 million for quality three- and four-bedroom products, mainly on golf course frontages."
The other developer to manage reasonable sales was Stockland, which recorded 75 sales on its three land estates at Ormeau Ridge (35), Highland Reserve Upper Coomera (25), and Riverstone Crossing Upper Coomera (15).
Mirvac managed 15 land sales at its Gainsborough Greens development in Pimpama, with prices ranging from $215,000 to $400,000.
Gilston Developments sold 12 townhouses at auction at its Grand Manor estate at the Grand Golf Course, with prices ranging from $595,000 to $1,625,000.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/10/prodap.jpg"><img src="/images/stories/2012/10/prodapthumb.jpg"></a>
“Vacant land sales continue to hover under 200 per quarter with no sign of improvement,” notes the report, which is based on a survey of every active and passive developer of residential land, house-and-land packages, townhouses and villas on the Gold Coast.
This brings total sales to 1,001 lots and house-and-land packages sold over the past 12 months to September – the lowest volume of annualised sales for records going back to 1985.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/10/prodap2.jpg"><img src="/images/stories/2012/10/prodap2thumb.jpg"></a>
Despite the record low land sales, the number of lots and house-and-land packages available for purchase remain at historical low levels, with few new projects being launched.
There are currently just 818 lots and 388 new houses up for sale representing one year’s supply at current take-up rates.
While stock is not rising, Morris says residential rents are increasing at 6% per annum south of Broadbeach for four-bedroom houses, with the market "virtually unserviced for new stock", except for Stockland’s Observatory land project at Reedy Creek in West Burleigh.
The report notes there is a pipeline of planned projects comprising 2,848 lots, but Morris says this is “unrealistically positive”, running at three times the current annual sales rate.
Morris says low demand rather than over-supply is the main problem – the result of restrictive bank lending policies.
Other problems facing the Gold Coast new housing market are record low population growth prohibitive local council infrastructure and charges, which are only new being “re-formulated”.
The Gold Coast City Council resolved to impose on a 12-month moratorium on infrastructure charges, which will save developers $28,000 per detached house and $20,000 per one- or two-bedroom apartment.
</body></html>

Sunland boutique projects find niche market but Gold Coast house-and-land sales slump to 27-year low

<html><body>
Brisbane ended a run of eight consecutive quarters of house price declines as capital city house prices barely moved in the September quarter, according to the latest data from Australian Property Monitors (APM).
The median Brisbane house price was almost unchanged at $430,965 over the September quarter, though still down 1.2% year-on-year.
APM revised the Brisbane June 2012 figure upwards from a previously reported $427,933 to $430,844.
APM senior economist Dr Andrew Wilson called the steady result for Brisbane “encouraging” and a “positive indication the market may have finally bottomed out".
Across the country, the national median house price was also unchanged at $533,480, while unit prices declined by 1.1% to a median of $406,415.
This followed revisions to June 2012 figures with house prices revised down from $536,075 to $533,695 and unit prices revised down from $411,810 to $410,981.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/10/apmoct25.gif"><img src="/images/stories/2012/10/apmoct25thumb.gif"></a>
“Although buyer activity and prices growth appears to be generally consolidating, capital city markets and sub-markets continue to operate at different levels,” says Wilson.
The Melbourne unit market remains the weakest capital city market for both house and units, down 6.1% year-on-year.
It registered a 1.4% drop over the September quarter – the sixth consecutive quarterly fall – taking the median Melbourne unit price down a median of $381,154.
This follows APM revised the  June median Melbourne unit price down from $392,862 to $386,678.
On average, a Melbourne apartment is $24,000 cheaper to buy now that it was a year ago.
Wilson attributed the continued to decline of Melbourne unit prices to a “surplus of new supply in the marketplace” negating an increase in activity from first-home buyers.
At the other end of the spectrum Darwin units were the best performing market across both house and units, with the median price of a Darwin apartment rising by more than $30,000 (8.1%) over the three month period to a median of $406,099.
This followed revisions to the Darwin median house price in June revised down from $384,384 to $375,666.
Apart from the drop in Melbourne unit prices and strength in Darwin unit prices, the September quarter results show that both house and unit prices have essentially been treading water over the past 12 months.
 
<hr class="system-pagebreak">
 
The strongest major capital city market over the past 12 months to September has been Perth, with house prices up 1.3% to a median $537,267, followed by Sydney, where house prices are up 1% year-on-year to a median of $641,890.
Melbourne registered a 0.8% rise in its median house price over the September quarter to $523,804 to leave prices down 0.8% year-on-year.
These figures were calculated based on APM revisions to previous June medians for Sydney (revised up from $642,425 to $644,191), Perth (revised up from $536,151 to $539,823) and Melbourne (revised down from $531,167 to $519,503).
Click to enlarge
<a href="/images/stories/2012/10/apmoct251.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/10/apmoct251thumb.gif"></a>
Among the smaller capital city housing markets, Darwin has been the standout with houses up 3% year-on-year to $610,592.
Hobart remains the weakest housing market, with a 2% decline over the September quarter and 4.7% drop year-on-year to a median of $305,889.
Overall, Wilson says that capital city housing markets continue to “edge their way through a tentative recovery following the downward correction of 2011”.
Click to enlarge
<a href="/images/stories/2012/10/apmoct252.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/10/apmoct252thumb.gif"></a>
However, the housing market remains “mixed and patchy”, with individual housing market prospects for the remainder of 2012 “dependant on the performance of local economies”.
“Although falling interest rates have improved housing affordability and buyer confidence, market growth has been driven largely by other local factors, including changes to buyer incentives, population growth, and value-buying momentum in some prestige markets.
“Given a reasonable economic performance over the remainder of 2012, housing markets will continue to generally find their feet, albeit at varying levels of activity,” Wilson says.
House prices are forecast to increase in Sydney, Perth, Darwin with Melbourne prices to remain relatively steady.
“The Brisbane market is poised for growth, particularly from rising inner-suburban demand, however the recent increase in the unemployment rate could have an impact.
“In Adelaide, the market will likely track sideways, and there are no clear signals that sustained house prices growth is set to return to Hobart,” says Wilson.
</body></html>

Brisbane house prices hold firm for first time in two years as national housing market 'consolidates': APM

<html><body>
The Reserve Bank is likely to cut the cash rate only once more – either in November or December – but that could be it for the current monetary policy easing cycle, according to HSBC chief economist Paul Bloxham.
Most economists (23 out of 27 polled by Bloomberg) are tipping a rate cut on Melbourne Cup Day.
Bloxham says the release of third-quarter CPI data shows that inflation is now trending up, giving the RBA “less room to move on rates”.
Examining yesterday's inflation data, Bloxham says it indicates that inflation has passed the low point.
Bloxham says the ABS data shows that Australia inflation jumped in the third quarter, “partly due to the introduction of the carbon tax which boosted the headline figure to 2% year-on-year” above HSBC forecasts of 1.9% and market expectations of 1.6%.
“Looking at the various measures, it appears inflation may have passed its trough and while we still expect another RBA cut by year-end, we think this could be the last this easing cycle.”
“The RBA has said it will look through the third quarter result, much like it did when the GST was introduced in 2000.
“However, with the prospects of inflation already on the up and with the RBA already having cut rates by 150 basis points we think that they may have less room to move on rates now,” says Bloxham.
Bloxham also points that in annual terms, inflationary pressures are strongest in the major categories of health (+7.2%), education (+6.1%) and housing (+4.7%), which was partly offset by declines in recreation and culture (-1.5%) and food and beverages (-1.1%).
</body></html>

Rising inflation could mean just one more RBA rate cut: HSBC’s Paul Bloxham

<html><body>
The new and existing house markets of Ipswich and Yamanto on Brisbane’s fringe are expected to benefit directly and indirectly from the recently introduced new $15,000 first-home owners construction grant (FHOCG), according to new research from PRDnationwide.
The property group has released reports on the <a target="_blank" href="/news">Ipswich </a>and <a target="_blank" href="/news">Yamanto </a>property markets and forecasts that both will benefit from an “influx of young budget-conscious buyers since the introduction of the FHOCG on September 21".
The grant applies to new property bought or built at a value under $750,000.
Ipswich is 40 kilometres west of Brisbane and considered part of the greater Brisbane metropolitan area, while the adjoining Yamanto local area comprises the suburbs of <a target="_blank" href="/news">Raceview</a>, <a target="_blank" href="/news">Flinders View</a> and Yamanto.
As the chart below shows, Ipswich house sales are starting to trend up following a number years of declining sales.
Click to enlarge
<a href="/images/stories/2012/10/prdoct25.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/10/prdoct25thumb.gif"></a>
According to the PRDnationwide Ipswich report, a combination of the FHOCG and the reinstatement of transfer duty concessions “provide an exceptional saving for first home buyers who are considering building”.
First-home buyers pay no stamp duty on land valued up to $400,000, an additional saving of $5,520.


<hr class="system-pagebreak">
“The availability of competitively priced house and land offerings in the immediate area is likely to be the key draw card to buying new," say PRDnationwide research analyst and Ipswich report author Robert Matta.
“Already developers are noting an increase in buyer enquiry and have been successfully unloading old stock to bring forward mooted stages in their estates. It is expected that volumes will trend upwards on the back of this new incentive at least for the short term.” 
There is also an expectation among local property analysts of a flow-on effect to the existing house markets as sellers are forced to discount properties in order to compete with developers.
PRDnationwide Ipswich principal Peter Mendoza says activity is trending upwards.
“Sales are up 25% on last year,” he says.
“Over the past few years a lot of people put things on hold but we get the feeling there’s a lot more confidence in the market now and people are starting to list and sell.”
According to PRDnationwide research, 30% of total sales in the Ipswich area occurred in the sub-$250,000 price range in the 12 months to June 2012, compared with 15% in the June 2010 period.
The median Ipswich house price sits at $293,000, which is 35% cheaper than compared with inner Brisbane.
“This is a major draw card even for those who work in the Brisbane CBD or surrounds,” he says.
PRDnationwide also highlights census population data, which shows that the Ipswich municipality has demonstrated the highest average annual population growth rate (3.9%) from 2006 to 2011 across the south-east Queensland region.
In Yamanto, the volume of house sales is up 22.7% over the past 12 months to June 2012.
However, house prices have fallen 4.6% over this period to a median of $310,000, with Yamanto following the trend of the wider Ipswich municipality, with the correction to prices improving buying conditions. 
Activity in the Yamanto Aarea vacant land market has also turned a corner to register 40 settled transactions during the June 2012 period, almost double the number recorded during the June 2011 period.
Land prices were down 12.7% to $165,000 for the June 2012 period.
“In the Yamanto, Flinders View and Raceview region we are experiencing a lift in enquiry for established houses,” says PRDnationwide Yamanto principal Roger Muller.
“There are great buys out there in all styles of homes. More listing are needed to supply buyer’s varying requirements.
“With good land prices, some buyers are opting for house and land packages.”
Rental properties are also in high demand, he says, because of good returns on offer.
</body></html>

New $15,000 construction grant to spur on recovery of Ipswich property market: PRDnationwide

<html><body>
Sydney has ranked as the sixth biggest destination for overseas commercial property investors to place their funds, according to a new global cities report from Cushman &amp; Wakefield.
Australia’s biggest city attracted US$3.6 billion in offshore capital in the 12 months to June 2012, an increase of 47.7% on the previous 12 months, with Sydney ranking above Shanghai, Berlin, Beijing and Singapore.
Offshore investors abandoned Melbourne, with the city recording a drop of 41.8% in cross-border capital on the previous 12-month period, ranking a distant 24th, with US$1.3 billion worth of investment from offshore sources.
The top destination for global flows of cross-border capital – by some distance – is the London metropolitan market, which attracted US$19.6 billion from offshore institutions, followed by Paris, New York and Tokyo.
Click to enlarge
<a href="/images/stories/2012/10/candw.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/10/candwthumb.gif"></a>
According to the latest Winning in Growth Cities report, global flows of cross-border capital reached US$150 billion in the 12 months to June, a rise of 4.3% on the same period in 2011 and outperforming the market as a whole, which fell by 7.5%.
“This represents a rise in market share of 2.2%, and consensus indicates this is only to increase further in the coming year,” says the report.
Cushman &amp; Wakefield says cross-border investment activity is focused on “those locations that are perceived to offer some level of security as investors balance potential rewards against their heightened sensitivity to risk”.
Sydney ranked as 11th biggest global office investment market (US$4.2 billion) and 10th biggest industrial investment market (US$1 billion).
Melbourne ranked as 22nd biggest global office investment market (US$2.2 billion) and 26th biggest industrial market (US$511 million).
Sydney ranked 17th overall, managing US$6.4 billion in global investment volumes over the 12 months to June 2012, up just 0.2% on the previous 12-month period.
In contrast investment in Melbourne commercial real estate fell by 38.7% to US$3.4 billion, with the Victorian capital ranking 32nd overall.
Brisbane ranked just behind Melbourne, attracting US$3.3 billion from overseas investors, an increase of 37.2%.
Top of the list was the New York metro area, which managed US$34.7 billion, an increase of 17.5%, followed by metropolitan London (US$29.3 billion), Tokyo (US$24 billion) and Paris (US$19.4 billion).
The report also names Sydney as one of the best locations for modern retailing and e-tailing.
</body></html>

Sydney named sixth biggest global commercial property investment locale: Cushman & Wakefield

<html><body>
Goldman Sachs has downgraded its leasing expectations for Colonial First State’s Emporium Melbourne retail complex, now a year away from completion on Lonsdale Street in the Melbourne CBD.
Goldman Sachs Australia senior REIT analyst Simon Wheatley expects the retail development to be 85% leased on completion, having previously forecast it to be fully leased.
The leasing downgrade follows Goldman Sachs taking a more conservative view on the project.
“While the Emporium project is in a core CBD location, the vertical retailing format and the limited reported pre-commitment at last update elevate the risk in the current difficult retail environment,” says Wheatley.
“As such we prefer to take a more conservative approach – we previously assumed the property being fully leased and thereby reaching target yield on cost on completion just over a year away, pre-Christmas 2013.
“We now take the view this will be 85% occupancy increasing quickly to 95% thereafter.
Wheatley says if the Emporium project can be successfully completed in line with targets this will be a positive catalyst.
“Until the outcome is proven, however, it is likely investors will increasingly show wariness around the development completion date,” he says.
The $1.12 billion project is being developed by the Colonial First State (CFS) Retail Property Trust and will feature 46,000 square metres of retail space between Lonsdale Street and Little Bourke Street, with 240 shops replacing the old Myer Lonsdale Street store.
The complex will also link with the Myer Melbourne department store and to David Jones via pedestrian bridges and tunnels.
Retailers who have pre-committed to space in the complex include UK fashion retailer Topshop, which will occupy 2,600 square metres over three levels and another “new brand to Australia” that will take 3,000 square metres over four floors.  Fashion shops Salvatore Ferragamo, Sass &amp; Bide, Michael Kors, Scanlon &amp; Theodore and Zimmerman have all been confirmed as tenants.
“Our estimates still factor expectation of a 6.65% yield on Emporium to deliver the target 6.0% yield on the whole project,” says Wheatley.
Emporium Melbourne is being built by Grocon and was at the heart of the recent dispute between Grocon and CFMEU.
</body></html>

Emporium Melbourne likely to open with 85% occupancy rate in 2013: Goldman Sachs

<html><body>
The Consumer Price Index (CPI) rose 1.4% in the September quarter compared with a rise of 0.5% in the June quarter,  according to the latest ABS figures.
Economists had forecast a 1% rise over the quarter.
Year-on-year inflation is now up 2% compared with a rise of 1.2% through the year to the June quarter - and above expectations of a 1.6% year-on-year rise in the September quarter.
This is the largest quarterly rise since the March quarter 2011 (+1.4%) and the largest annual rise since the December quarter 2011 (+3.0%).
However, it is still within the RBA’s target inflation range <a target="_blank" href="https://www.rba.gov.au/inflation/inflation-target">averaging between 2% to 3%</a> - "a rate of inflation sufficiently low that it does not materially distort economic decisions in the community".
The most significant price rises in the September quarter 2012 were for electricity (+15.3%), international holiday travel and accommodation (+6.6%), medical and hospital services (+4.5%), vegetables (+10.5%) and gas and other household fuels (+14.2%).
The most significant offsetting price falls were for automotive fuel (–3.9%), motor vehicles (–1.0%), pharmaceutical products (–2.6%), domestic holiday travel and accommodation (–1.3%) and other financial services (–0.9%).
The ABS says it is unable to quantify the impact of the carbon price on greenhouse emissions, introduced at $23 per tonne on July 1. 
</body></html>

Inflation rises by a higher than expected 1.4% over September quarter, up 2% year-on-year: ABS

<html><body>
NAB’s customer satisfaction rating lifted 0.7 percentage points to 80.3% in September to reach the highest score for a big four bank since Roy Morgan began researching customer attitudes to the banks in 1996.

The bank’s customer satisfaction rating has improved by 3.8 percentage points over the past 12 months to be the “clear market leader” among the big four banks.

However, NAB’s rating is due to the satisfaction of its non-home loan customers ( up 5.2 percentage points over the past 12 months), whereas its home loan customers had a decline in satisfaction of 1.4 percentage points over the same period – despite NAB maintaining its promise of offering the lowest standard variable rate of the major banks.

All the major banks improved their ratings over September as customer satisfaction with the banking sector as a whole improved for the third consecutive month to 79.4%.
Despite the positive trend shown by the big four banks, they still lag far behind the satisfaction levels of their smaller rivals, with an average satisfaction rating of 77.3% compared with 84.1%.
The best performers among the smaller banks were bankmecu (93.7%), Heritage Bank (90.7%), BankSA (88.7%) and Bendigo Bank (87.6%).
Over September, the Commonwealth Bank matched NAB with a 0.7 percentage point increase to 78.5%.

Westpac recorded the biggest monthly increase of 1 percentage point to reach 75.7% to rank third of the big four, with ANZ improving by 0.5 percentage points to a satisfaction rating of 74%.

Click to enlarge
<a href="/images/stories/2012/10/roymorganoct24.jpg" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/10/roymorganoct24thumb.jpg"></a>
Roy Morgan says the improvement in Westpac’s customer satisfaction rating was mainly due to an improvement in September in satisfaction among its home loan customers.

Home loan customers still remain less satisfied across all of the major banks compared with non-home loan customers, presumably due to the banks' policy of not passing on full rate cuts.

“Recent reductions in home loan rates should improve satisfaction levels among borrowers but this can also be impacted by any negative perceptions if the full rate drop is not being passed on,” notes Roy Morgan.

“Continued improvement in bank customers’ perception will depend largely on the big four avoiding any further negative publicity, as we have seen that Westpac, the CBA and most recently ANZ have all suffered major setbacks in customer satisfaction following negative market announcements,” says Norman Morris, industry communications director at Roy Morgan Research.

“The big four have arguably set their satisfaction target a little low by focusing almost exclusively on how they rank against each other rather than against their smaller competitors who are perceived as performing much better in terms of customer satisfaction and have considerable combined market strength.”

</body></html>

NAB customer satisfaction rating reaches record high but home loan customers not any happier: Roy Morgan

<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

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News