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The decision by Charter Hall Retail REIT to buy three high-yield sub-regional NSW shopping centres marks a shift in its acquisition strategy. The purchase won't add value to its portfolio but will free up capital to develop other centres it holds, according Goldman Sachs senior REIT analyst Simon Wheatley.
Charter Hall Retail REIT successfully raised $100.7 million from institutional investors to fund its purchase of Dubbo Shopping Centre, Tamworth City Plaza, and the half share in Lake Macquarie Fair and Mount Hutton shopping centres the trust did not already own.
The sale price reflected an initial yield of 9.6%.
Scott Dundas, Charter Hall Retail fund manager, said the acquisitions were in line with its strategy of “acquiring supermarket anchored centres in the $20 million to $80 million asset value range that improve the quality of the REIT's already strong Australian property portfolio”.
But Wheatley does not believe the acquisitions are a value-add for the trust, with the risk that a trend of declining net tangible assets could continue.
Charter Hall Retail has a $1.72 billion retail property portfolio with a net tangible asset value of $3.38 per share compared with a current share price around $3.55.
He says the acquisition of the sub-regional shopping centres “further shifts the portfolio away from the grocery store-anchored style it has historically been known for”.
“The assets acquisition increase exposure to discount department stores and also have a higher proportion of rent being derived from specialty stores."
“Sub regional centres are anchored by at least one discount department store,“ Wheatley tells Property Observer.
“The point is – as you move further away from neighbourhood centres into sub-regional and regional assets, the proportion of income from anchor tenants becomes lower and the proportion of income from specialty stores gets higher.”
As an example, in the Dubbo Orana Mall, discount department store Big W occupies a much biggest share of the mall than Woolworths or Franklins.
“The acquisitions increase Charter Hall Retail’s exposure to NSW. However, we don't believe this has any meaningful benefit to the trust. It would seem that the benefit is merely increased diversification and unlocking the ability to fund some development works which were previously liquidity constrained,” says Wheatley.
Dubbo Shopping Centre was acquired from Centro for $30.5 million on a yield of 10.2%, while the Tamworth City Plaza was acquired from Australian Unity Investments for $35 million, on a yield of 10.1%
The acquisition of the remaining 50% stake in the Lake Macquarie Fair and Mount Hutton shopping centres for $35.2 million reflected a yield of 8.6%.
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lschlesinger-FZcF9M3vE6

Charter Hall Retail REIT shifts focus to high-yielding sub-regional shopping centres 

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The Australian commercial mortgage-backed securities (CMBS) market has completely dried up in 2012, according to Standard &amp; Poor’s latest CMBS market watch report.
There were no new tranches of commercial mortgages issued to institutional investors in the first half of the year, and S&amp;P does not expect any commercial mortgage-backed securities (CMBS) offerings to be launched for the remainder of 2012.
As the chart below shows, the CMBS market peaked at $5 billion in 2006, but has declined sharply since then in the wake of the GFC.
Click to enlarge
<a rel="shadowbox" href="/images/stories/2012/10/sandpoct23.gif" title="Click to enlarge"><img src="/images/stories/2012/10/sandpoct23thumb.gif"></a>
S&amp;P expects a quiet start to 2013 for the CMBS market.
“Approximately $1.92 billion of Australian CMBS and credit lease-backed notes remain outstanding as of June 30, 2012, compared with $2.04 billion in the six months ended December 31, 2011.
“The decline coincides with a flat period for CMBS issuance, amid persistent uncertainty in global markets,” says S&amp;P.
Issuing CMBS is an alternative way of raising funds to a traditional loan through a lender with both local and offshore investors able to participate.
In a commercial securitisation arrangement, loans secured against commercial properties are bundled together and sold as debt securities to institutional investors.
Recent issuers of CMBS (prior to the drying up of the market) include Charter Hall Retail and Colonial First State Capital Management.
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Commercial mortgage securitisation market dries up in wake of global uncertainty: Standard Poor’s

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Nearly a third (31%) of Australian households would consider re-locating to another state for financial benefit with Queensland the preferred destination, according to the latest ING Direct Financial Wellbeing Index.
Across households that would consider relocating interstate, Queensland (46%) is the most popular destination ahead of both NSW and Victoria (40%) followed by WA (31%) and South Australia (31%).
These responses tie with interstate migration forecasts from BIS Shrapnel, which anticipate a big rise in Queensland from 31,300 interstate migrants in 2011 rising to 41,900 in 2012, 49,700 in 2013, 54,300 in 2014 and 58,200 in 2015.
BIS Shrapnel also forecasts interstate migration to rise in NSW from 50,200 in 2011 to reach 71,500 by 2015 while WA numbers will rise from 30,800 to 53,600 over the same time period. More modest gains are expected in Victoria rising from 45,700 interstate migrants to 57,200 by 2015.
Interstate, along with overseas migration, is a key driver of demand for housing.
According to BIS Shrapnel, relative housing affordability and economic conditions are the main reasons people move states.
Among the smaller states and territories, the ING Direct report found that more people would consider relocating to Tasmania (22%) and the ACT (20%) than the Northern Territory (16%) – perhaps put off by surging house prices in Darwin and a lack of rental accommodation, as much by its remoteness.
The results are based on the online responses of 1,024 households between September 26 and October 3 carried out by Galaxy Research for ING Direct – households could pick multiple interstate migration options.
Digging down into the responses, they reveal that more than half of Victorians and those from NSW considering relocating would choose to move to Queensland.
Nearly two-thirds (62%) of Queenslanders pick NSW as their preferred relocation destination.
However, nearly one in two (47%) households from WA would move to Victoria for financial benefit.
The overall results of the survey were that household finances are in good shape with the Financial Wellbeing Index rising to 109.0 in the third quarter of 2012, up from 105.6 in the previous quarter and on par with the highest ever index score recorded in the second quarter of 2010, when ING Direct kicked off the index.
It also found that households are more comfortable with their mortgage than any other aspect of personal finances, with almost one in two (47%) of those households with a mortgage ahead with their loan repayments.
Median household savings across the country is $9,735.
Only 6% of households say income is insufficient to pay immediate bills.
“Australian households are continuing to adopt cautious money management with a focus on reducing household debt,” says ING Direct.
“As a result almost nine out of ten (88%) are comfortable with credit card debt, and 93% are comfortable with their home loan."
“Households are saving more and reducing debt which is leading to greater confidence,” says Vaughn Richtor, CEO of ING Direct.
“It is a good sign that confidence is on the way up with financial wellbeing reaching a 2-year high.”
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Queensland the top destination for those prepared to “pull up stumps”: ING Direct

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Forecasters BIS Shrapnel anticipate stronger housing market conditions ahead for Sydney, Perth, Brisbane and Darwin, but warn that a boom in house prices would not be good for a sustained recovery of the market.
“I am hoping that stronger conditions [in these markets] does not mean a boom in house prices,” said BIS Shrapnel managing director Robert Mellor at a housing market briefing in Melbourne today.
“People love booms. So does the media.
“For the media it’s either a boom or a bust, but the reality is that we need modest house price growth which will then stimulate more construction and more development activity.
“But if we suddenly start getting price growth shooting up 10% and 15% per annum, then the market will run out of steam pretty quickly,” said Mellor, presenting the results of the 2012 QBE LMI Australian Housing  Outlook report for 2012 to 2015.
Mellor also dismissed recent talk of a housing bubble threat in Australia, as has been highlighted by overseas commentators and some local analysts.
“When you are talking about Sydney, which we are fairly bullish about, you need to put things into context..
“The Sydney market has had one good year in the last nine years.
“In real terms prices are 10% to 12% below what they were nine years ago,” said Mellor.
Overall, he says the Australian economy is in good shape, though the benefits are not being evenly felt due to the emphasis on the mining boom, with property and retail among those sectors to have suffered.
“Underlying demand for housing is still strong,” said Mellor, pointing out that there was a strong rise in overseas migration in the last year, which was one of the key drivers of housing demand.
However, while the outlook for Sydney, Perth, Brisbane and Darwin is strong, weaknesses are expected to persist in Melbourne, Hobart and Canberra for another three years.
“There will be an exodus of investors from Victoria,” said Mellor.
He says there will be a big rise in new apartments being completed in Melbourne over the next two to three years, particularly in places like Docklands and the Melbourne CBD, exacerbating the current oversupply of housing.
“Victorian investors will be looking north.”
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Modest recovery rather than a boom bodes well for housing market recovery: BIS Shrapnel

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Reductions in fixed mortgage rates have not kept pace with variable-rate cuts since the RBA started cutting the cash rate in November last year and have further to fall, according to analysis by mortgage comparison website Mozo.com.au.
Its research reveals that the major banks have cut their standard variable rates by an average of 116 basis points between November 2011 and October 2012 but average one-year fixed rates have only fallen by 96 basis points and average three-year fixed by 94 basis points.
As the Greater Building Society announced its one-year fixed rate would fall below 5% from tomorrow (4.99%), Mozo's Peter Marshall told Property Observer fixed rates “still have some way to fall”.
“Fixed rates have fallen swiftly in the last few months in particular, but they have still not fallen as much as variable since November," says Marshall, product data manager at Mozo.
“And most analysts agree there are more cuts coming through from the RBA,” he says.
Marshall expects lenders to continue to cut fixed rates over the next week or so.
He says it currently makes “very good sense" to consider splitting your loan between fixed and variable products.
“Some lenders will do a sharper fixed rate if you only fix up to 50% of your loan."
He says currently, non-bank lender eMoney  is offering a three year fixed-rate of 5.25% but only if you fixed up to half the loan.
“It’s a really good strategy as you get some benefit if rates fall, but but no repayment shocks”
Marshall also says it pays to look around beyond the major banks.
On average the big four have cheaper fixed rates than other banks, mutuals and non-bank lenders, but when you drill down to individual lenders, the major banks don’t compete.
“There are plenty of other providers offering lower rates,” he says, providers borrowers are happy with a non-big brand lender.
“For borrowers wanting the security of a major lender, it’s worth looking at UBank, owned by NAB and the same goes for Bankwest, owned by Commonwealth Bank.
“You get the confidence of a major lender without having to pay for the privilege."
Changes in rates while the RBA has cut the cash rate by 150 basis points, from November 1, 2011 to October 18, 2012 
<table border="0" cellspacing="0" cellpadding="0" width="389"><tbody>
<tr>
<td valign="bottom" width="125" nowrap>
 
</td>
<td valign="bottom" width="264" colspan="3" nowrap>
Average SVR
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
Provider type
</td>
<td valign="bottom" width="93" nowrap>
1/11/2011
</td>
<td valign="bottom" width="104" nowrap>
18/10/2012
</td>
<td valign="bottom" width="66" nowrap>
Change
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
Big 4 banks
</td>
<td valign="bottom" width="93" nowrap>
7.78
</td>
<td valign="bottom" width="104" nowrap>
6.62
</td>
<td valign="bottom" width="66" nowrap>
-1.16
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
Other banks
</td>
<td valign="bottom" width="93" nowrap>
7.70
</td>
<td valign="bottom" width="104" nowrap>
6.63
</td>
<td valign="bottom" width="66" nowrap>
-1.07
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
Mutuals
</td>
<td valign="bottom" width="93" nowrap>
7.51
</td>
<td valign="bottom" width="104" nowrap>
6.40
</td>
<td valign="bottom" width="66" nowrap>
-1.11
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
Non-bank lenders
</td>
<td valign="bottom" width="93" nowrap>
7.01
</td>
<td valign="bottom" width="104" nowrap>
5.98
</td>
<td valign="bottom" width="66" nowrap>
-1.03
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap></td>
<td valign="bottom" width="93" nowrap></td>
<td valign="bottom" width="104" nowrap></td>
<td valign="bottom" width="66" nowrap></td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap></td>
<td valign="bottom" width="93" nowrap></td>
<td valign="bottom" width="104" nowrap></td>
<td valign="bottom" width="66" nowrap></td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
 
</td>
<td valign="bottom" width="264" colspan="3" nowrap>
Average 1 yr fixed
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
Provider type
</td>
<td valign="bottom" width="93" nowrap>
1/11/2011
</td>
<td valign="bottom" width="104" nowrap>
18/10/2012
</td>
<td valign="bottom" width="66" nowrap>
Change
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
Big 4 banks
</td>
<td valign="bottom" width="93" nowrap>
6.49
</td>
<td valign="bottom" width="104" nowrap>
5.53
</td>
<td valign="bottom" width="66" nowrap>
-0.96
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
Other banks
</td>
<td valign="bottom" width="93" nowrap>
6.65
</td>
<td valign="bottom" width="104" nowrap>
5.66
</td>
<td valign="bottom" width="66" nowrap>
-0.99
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
Mutuals
</td>
<td valign="bottom" width="93" nowrap>
6.48
</td>
<td valign="bottom" width="104" nowrap>
5.68
</td>
<td valign="bottom" width="66" nowrap>
-0.80
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
Non-bank lenders
</td>
<td valign="bottom" width="93" nowrap>
6.50
</td>
<td valign="bottom" width="104" nowrap>
5.79
</td>
<td valign="bottom" width="66" nowrap>
-0.71
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap></td>
<td valign="bottom" width="93" nowrap></td>
<td valign="bottom" width="104" nowrap></td>
<td valign="bottom" width="66" nowrap></td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
 
</td>
<td valign="bottom" width="264" colspan="3" nowrap>
Average 3 yr fixed
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
Provider type
</td>
<td valign="bottom" width="93" nowrap>
1/11/2011
</td>
<td valign="bottom" width="104" nowrap>
18/10/2012
</td>
<td valign="bottom" width="66" nowrap>
Change
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
Big 4 banks
</td>
<td valign="bottom" width="93" nowrap>
6.49
</td>
<td valign="bottom" width="104" nowrap>
5.55
</td>
<td valign="bottom" width="66" nowrap>
-0.94
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
Other banks
</td>
<td valign="bottom" width="93" nowrap>
6.61
</td>
<td valign="bottom" width="104" nowrap>
5.63
</td>
<td valign="bottom" width="66" nowrap>
-0.98
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
Mutuals
</td>
<td valign="bottom" width="93" nowrap>
6.53
</td>
<td valign="bottom" width="104" nowrap>
5.70
</td>
<td valign="bottom" width="66" nowrap>
-0.83
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
Non-bank lenders
</td>
<td valign="bottom" width="93" nowrap>
6.53
</td>
<td valign="bottom" width="104" nowrap>
5.76
</td>
<td valign="bottom" width="66" nowrap>
-0.77
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap></td>
<td valign="bottom" width="93" nowrap></td>
<td valign="bottom" width="104" nowrap></td>
<td valign="bottom" width="66" nowrap></td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap></td>
<td valign="bottom" width="93" nowrap></td>
<td valign="bottom" width="104" nowrap></td>
<td valign="bottom" width="66" nowrap></td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
 
</td>
<td valign="bottom" width="264" colspan="3" nowrap>
Average 5 yr fixed
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
Provider type
</td>
<td valign="bottom" width="93" nowrap>
1/11/2011
</td>
<td valign="bottom" width="104" nowrap>
18/10/2012
</td>
<td valign="bottom" width="66" nowrap>
Change
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
Big 4 banks
</td>
<td valign="bottom" width="93" nowrap>
7.00
</td>
<td valign="bottom" width="104" nowrap>
5.85
</td>
<td valign="bottom" width="66" nowrap>
-1.15
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
Other banks
</td>
<td valign="bottom" width="93" nowrap>
7.07
</td>
<td valign="bottom" width="104" nowrap>
6.06
</td>
<td valign="bottom" width="66" nowrap>
-1.01
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
Mutuals
</td>
<td valign="bottom" width="93" nowrap>
6.96
</td>
<td valign="bottom" width="104" nowrap>
6.15
</td>
<td valign="bottom" width="66" nowrap>
-0.81
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
Non-bank lenders
</td>
<td valign="bottom" width="93" nowrap>
7.03
</td>
<td valign="bottom" width="104" nowrap>
6.39
</td>
<td valign="bottom" width="66" nowrap>
-0.64
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap></td>
<td valign="bottom" width="93" nowrap></td>
<td valign="bottom" width="104" nowrap></td>
<td valign="bottom" width="66" nowrap></td>
</tr>
<tr>
<td valign="bottom" width="219" colspan="2" nowrap>
 
Source: mozo.com.au
</td>
<td valign="bottom" width="104" nowrap></td>
<td valign="bottom" width="66" nowrap></td>
</tr>
</tbody></table>
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More room for fixed rates to fall and better deals outside major banks: Mozo

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The threat of a bubble building in the Australian housing market has been dismissed by senior Treasury economist David Gruen.
Gruen, executive director of Treasury’s macroeconomic group, says there is no danger of a housing bubble because of Australia has an undersupply of homes unlike other major economies, which have built too many houses.
The housing bubble debate has received fresh oxygen of late with senior industry figures warning about the threat posed by rising house prices including ANZ Bank Australia CEO <a href="https://www.propertyobserver.com.au/residential/anz-boss-adds-to-growing-list-warning-of-australian-housing-bubble-risk/2012100456996">Phil Chronican</a> and Barry Brakey head of property at the Future Fund.
However, others like <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">John Symond</a> of Aussie Home Loans, Meriton’s Harry Triguboff and Australian Property Monitors’ Andrew Wilson have dismissed these concerns.
Gruen also expects the housing market to play a role in driving the economy forward once the mining boom has run its course.
“In a couple of years, when mining investment does not contribute to growth any more, we will need other things to contribute to growth,” Dr Gruen told a Senate budget estimates hearing in Canberra today, as reported by the Australian Financial Review.
“One of the most obvious things [to contribute to growth] is the housing market, given that we think there is undersupply.
Such a contribution, he said, would be “a natural and desirable development and we are seeing early signs of it”.
Gruen said Australia was building no more dwellings now than it was a decade ago, so “we think there is net undersupply in the housing market”.
He contrasted the Australian undersupply picture with that of Spain, Ireland, UK and the US where very large house price increases were accompanied by “truly extraordinary” increases in supply.
He also told the estimates committee he expected the federal government to deliver on its budget surplus ambitions.
“Provided we are in a world in roughly trend growth and there is room to move on monetary policy, it seems to me an appropriate strategy to be aiming for surplus.”
And he expects the mining industry, currently in a lull with commodity prices falling, to be boosted again as more mining investment projects are  finalised.
“I guess I wouldn’t call the resource prices a bubble; I would call it a natural understandable response to a big increase in demand that was unanticipated,” he said.
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No risk of housing bubble forming in Australia: Treasury economist David Gruen

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The Greater Building Society has cut its one year fixed-rate packaged home loan by 30 basis points to 4.99%.
This is the only home loan offering currently below 5% and the first time a home loan from The Greater had been under 5% since July 2009.
The mutual lender has also cut its three and five year fixed-rates by 15 points to 5.34% and 5.54% respectively.
Product manager David Bryde says this gives The Greater the lowest home loan rate in Australia.
The new rates are effective tomorrow and open to both new and existing customers.
The new fixed rates are offered as part of  The Greater’s Ultimate Home Loan home loan package which includes a fee free transaction account, discounted insurance, financial planning, and a linked credit card with waived annual fee.
Current cheapest one-year fixed rate loans
<table style="width: 470px;" border="0" cellspacing="0" cellpadding="0">
<colgroup>
<col width="173">
<col>
<col width="369">
<col>
<col width="60">
<col>
</colgroup>
<tbody>
<tr height="21">
<td height="21" width="173">1 year fixed rates</td>
<td width="369"></td>
<td width="60"></td>
</tr>
<tr height="21">
<td height="21">Provider</td>
<td>Product</td>
<td>Rate %</td>
</tr>
<tr height="21">
<td height="21">Greater Building Society</td>
<td>Fixed Rate Home Loan (Ultimate Home Loan Package)</td>
<td>4.99</td>
</tr>
<tr height="21">
<td height="21">My Mortgage Freedom</td>
<td>Fixed Rate (LVR 75%-90%)</td>
<td>5.09</td>
</tr>
<tr height="21">
<td height="21">QT Mutual Bank</td>
<td>Fixed Rate (Choices)</td>
<td>5.29</td>
</tr>
<tr height="21">
<td height="21">Greater Building Society</td>
<td>Fixed Great Rate Home Loan</td>
<td>5.34</td>
</tr>
<tr height="21">
<td height="21">Morgan Brooks Direct</td>
<td>Fixed Rate Home Loan</td>
<td>5.34</td>
</tr>
<tr height="21">
<td height="21">NAB</td>
<td>Tailored Home Loan (Choice Package)</td>
<td>5.34</td>
</tr>
</tbody>
</table>
Source: Mozo
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Greater Building Society cuts one-year fixed home loan to 4.99%

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The benchmark RBA cash rate will be at its lowest point since 1960 should the cash rate fall to 2.75% by March 2013, as is being priced by futures markets, Business Spectator columnist and economist Stephen Koukoulas has tweeted today.
<a target="_blank" href="https://twitter.com/TheKouk"><img src="/images/stories/2012/10/kouktweet4.jpg"></a>
Koukoulas, who heads up consultancy Market Economics and is a former economic adviser to the Gillard government, is tipping the cash rate to be cut by 25 basis points on Melbourne Cup Day next month and then another rate cut in the first quarter of 2013.
The RBA has only been publishing an official cash rate since August 1990 and a cash rate range since January 1990.
Prior to 1990 the Reserve Bank did not publish an official cash rate setting, so cash rate measures prior to this date are proxies of the current measure.
Historical proxy data going back to June 1959 shows the cash rate fell to its previous lowest point of 2.89% in January 1960.
“The Reserve Bank previously used other measures of the short-term interest rates as its tool of monetary policy,” explains the RBA.
“However, prior to 1990 monetary policy was not targeting inflation as it does now. In that way, the rates before 1990 do not reflect the same focus of policy.”
</body></html>

Cash rate heading for 52-year low, says Stephen Koukoulas: Tweet of the day

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Borrowers should look to fix at least part of their home loan as fixed rates continue to fall, according to mortgage broker Loan Market.
“Investors and families on tight budgets should really be looking to lock in some rates as they hit near record lows,” says Loan Market corporate spokesman Paul Smith.
“Lenders are coming out with three year fixed rates as low as 5.35%. Historically, it always pays off to fix rates when they are on the way down, as opposed to what most people do in fear, which is fix on the way up.
“Many people were caught out fixing on high rates post recovery during the GFC when lenders began lifting their rates and confidence returned to the market. Right now, these fixed rates are already a quarter percentage point below variable rates, so even if variables dropped one more time this year, they would still be ahead. 
“Could rates dip below 5%? Possibly, but rates right now are pretty hard to resist the gamble and waiting game.
Smith says that borrowers with higher incomes can afford to ride the variable wave a little longer or look at fixing half of their rates and continue paying extra into their variable loans.
“Obviously, consumers should be aware that when the market recovers, these all-time low fixed rates will disappear pretty quick and borrowers will start to scramble for the lender slowest to react and pick up leftovers.”
Currently the cheapest one-year fixed rate home loan is 5.29% offered by Greater Building Socieity while the cheapest three-year fixed is 5.35% offered by loans.com.au.</body></html>

Fixed rate offerings pretty hard to resist: Loan Market

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The Mallee region in northern Victoria is the cheapest place in Australia to buy a block of residential land, according to the latest HIA-RP Data Residential Land Report
The median lot price in Mallee was $73,500 over the June quarter.
The Mallee municipality incorporates the rural towns of <a target="_blank" href="/news">Mildura </a>and <a target="_blank" href="/news">Swan Hill</a> as well as the Shire of Gannawarra and the Shire of Buloke.
Nationally, in the June 2012 quarter the weighted median residential land value in Australia eased by 0.3% to $192,828.
Sales were up 23.3% to 15,255, the highest number of sales recorded since the June quarter of 2010.
<img src="/images/stories/2012/10/hiaoct18.gif">
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Victoria’s Mallee tops list of 10 cheapest municipalities to buy land: HIA-RP Data

<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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