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Prime CBD non-residential property such as offices and shopping centres have delivered rental yields of between 5% and 10% to investors consistently every year going back to 1986, according to AMP Capital.
However, as the graph below shows, capital gains tend to fluctuate.
The graph highlights the income and capital gains returns of the benchmark IPD Australian All Property Index since 1986.
The index tracks 1,629 direct property investments worth $136 billion.
Click to enlarge
<a href="/images/stories/2012/10/ampoct17.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/10/ampoct17thumb.gif"></a>
 
According to Damian Fitzpatrick, fund manager for property at AMP Capital, offices and shopping centres are a key part of a diversified portfolio because they can provide stable, reliable income streams.
“These investments can also provide a hedge against inflation due to regular rent reviews that are linked to the consumer price index (CPI).
“However there are still underlying risks in the sector, therefore portfolio diversification and experience in managing these assets are critical,” he says.
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Consistent rental returns on direct commercial property, but capital gains fluctuate: AMP

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There is a place for listed property trusts in an investment portfolio, but only in a supporting capacity, says research firm Morningstar in its latest A-REITs update.
Morningstar says the fundamentals of the sector are now once again “broadly aligned with the core principles of steady, sustainable income-focused returns with the scope for some capital upside”, making AREITs “more attractive on the basis of pure fundamentals”.
However, this increased attractiveness has yet to flow through to increased investor appetite, with A-REITs delivering annual income returns well below global REITs and infrastructure funds – but better than large-cap stocks.
Click to enlarge
<a href="/images/stories/2012/10/morningstar.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/10/morningstarthumb.gif"></a>
“Before investing in a dedicated A-REIT vehicle, investors and advisers should first assess the extent of any existing exposures,” says Mark Laidlaw, research analyst at Morningstar Australasia.
“We suggest an allocation of no more than 10% to Australian and global REIT strategies combined, although this will depend on individual needs, objectives, and risk profiles.
“Investors with a more income-focused orientation may look to prefer AREITs, while those seeking a greater growth profile may lean towards global property.
“Any listed property allocation should be considered a relatively defensive component of a broader Australian equities allocation, or housed within a broader global listed property sleeve,” he says.
In its analysis of the sector, Morningstar presents a mostly favourable picture of the sector and says most A-REITs have “cleaned up their business models” after being heavily leveraged and adopting riskier asset management endeavours pre-GFC.
Most A-REITs have returned to “reasonable payout ratios” – from paying out 100% of earnings around 2008 to paying around 80% of earnings currently.
This is much more sustainable, says Morningstar, “and leaves plenty of room to maintain the health of the properties and the trust”.
However, two structural shortcomings of  the A-REITs sector are the lack of diversification – a 47% retail assets allocation – and the concentration of the market in the hands of less than a dozen big developers.
More than 90% of the market capitalisation of the A-REIT sector is held by the top 10 stocks, with Westfield Group and its shopping centre spin-off Westfield Retail Trust accounting for around 40% of the pie.
The other major A-REITs are Stockland, Goodman Group, GPT, Centro, Mirvac, Dexus, Investa, Charter Hall Office REIT and Multiplex.
The sector could lean even more heavily towards retail if Woolworths goes ahead with plans to launch a $1.4 billion shopping centre trust holding around 70 Woolworths-owned and anchor tenanted centres.
Morningstar notes that some fund managers have broadened the range of stocks they invest in to include infrastructure and property-related stocks.
It warns, though, that any further reduction in sector constituents could critically impair fund managers' ability to build portfolios of investable stocks.
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Listed property trusts should only play a supporting role in an investment portfolio: Morningstar

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Cromwell Property Group has recorded a strong investor response to its Ipswich City Heart Trust. an unlisted single property trust comprising the $93 million Ipswich City Heart Building currently under construction in the Ipswich CBD.
More than 800 investors invested around $50,000 each in the trust, with the offer oversubscribed and closing early. 
The trust has raised around $50 million in total.
The nine-storey commercial office and retail building is being built at 117 Brisbane Street and will have the Queensland government’s Department of Public Works as the major tenant.
The trust is a seven-year investment distributing 8% per annum paid monthly to investors and offering capital growth potential and tax-deferred income.
The building is the first stage of ICON Ipswich, a $1 billion revitalisation project that will span four city blocks and deliver approximately 170,000 square metres of master-planned commercial, retail, residential and public space to deliver a “new generation” city centre.
The Department of Public Works will occupy 91% of the 15,600 square metres of office space. There will be an additional 2,134 square metres of retail space over the lower ground, ground and mezzanine levels.
Cromwell CEO Paul Weightman said the recent announcement of an increase in forecast trust distributions (from 7.75% to 8%) combined with falling official interest rates significantly boosted the rate of inflows.
Apart from the 8% annual return, Weightman said expectations of further falls in interest rates made the investment “extremely attractive to yield-conscious investors”.
“The strong response from investors proves the continuing appeal of simple, transparent, yield-based products underpinned by quality Australian commercial property assets,” he added.
Construction of the building commenced in January 2012 and is on target to be completed by September 2013.
“Given the level of inflows over the last two to three months, Cromwell is now focused on meeting this demand for quality direct property by bringing another similar opportunity to market over the next few months,” said Weightman.
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Investors rush to buy into Cromwell’s Ipswich City unlisted property trust

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Australia's largest charitable group, World Vision Australia, will pay around $85 per square metre net per annum to lease a 1,250-square-metre office and warehouse facility at Croydon South in Melbourne’s eastern suburbs in a deal negotiated by Savills Australia.
The combined warehouse and office is located at the Merrindale Estate Business Park at 36 Research Drive on a 2,023-square-metre site zoned Industrial 1 with 18 on-site car spaces.
The leasing deal was brokered by Savills’ Notting Hill office executive Adrian Smith.
World Vision had taken a five-year lease with two, five-year renewal options and will move from former leased premises in Mulgrave. 
The lessor is a local private investor.
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Charity World Vision leases warehouse space in Croydon

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A local investor has acquired the warehouse premises of Classic Picture Framers in Clayton for $515,000, equating to yield of around 7%, in a private sale.
<img src="/images/stories/2012/10/classicframers.jpg">
The price is exclusive of GST.
Classic Picture Framers has a long-term lease on the property, which is situated at 49 Sarton Road in Melbourne's outer south-east.
It was marketed and sold by Ryan Amler of Ray White Commercial Oakleigh, who said he fielded over 25 enquiries about the property before completing the sale to the local investor.
RP Data records show the warehouse took just 32 days to sell, having been marketed at $540,000 plus GST.
 
“The property currently returns approximately $36,000 per annum, plus GST and outgoings, so the fact it had a long-established tenancy agreement that delivers a consistent and healthy yield meant interest would be high," says Amler.
The warehouse measures 450 square metres with a total land area of approximately 712 square metres.
“The size of the complex is advantageous, and the on-site parking and terrific street frontage to busy Sarton Road make it a prime location for a number of commercial uses,” says Amler.
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Investor picks up outer-Melbourne warehouse for $515,000 on 7% yield

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A Singapore developer has been called “a bit cheeky” and "a little bit arrogant" by Melbourne lord mayor Robert Doyle for selling apartments in proposed CBD skyscraper Melbourne Tower to Asian investors, despite not yet receiving planning approval from Victorian Planning Minister Matthew Guy.
CEL Australia, a subsidiary of Singapore-based developer Chip Eng Seng Corporation, is still awaiting a permit to build the 68-storey, 220-metre tower on the corner of Queen and Bourke streets.
Sydney developers have a greater reputation for the pre-approval sale practice, with half of the <a href="https://www.propertyobserver.com.au/developments/edwin-davey-flour-mill-rises-again-as-harbour-mill-as-investors-rush-to-secure-stamp-duty-exempted-units/2012052954887" target="_blank">apartments in the Ceerose's Harbour Mill </a>selling ahead of an expected approval in May. But NSW has a staged development process, and developers have pre-sold apartments with a fair degree of confidence of having the project approved.
Observers have noted that a 68-storey tower in the heart of the Melbourne CBD is another matter entirely.
The planning permit for the Melbourne Tower application features 581 apartments, 12 storeys of office space as well as retail and food services on the lower levels.
The skyscraper has been designed by local architects Elenberg Fraser, featuring thin undulating glass construction and would be just shorter than the iconic blue glass Rialto Tower, which rises to 250 metres at the Southern Cross station end of Collins Steet. The Eureka Tower on South Bank is Melbourne's tallest tower, rising to 297 metres.
<img style="margin: 5px; float: left;" src="/images/stories/2012/10/melbournetower1.jpg">
According to Fairfax, the apartments in the building are being “heavily marketed to Asian investors, particularly a newly wealthy generation of Chinese entrepreneurs and business people”.
The application for Melbourne Tower was submitted on March 29 and is currently listed as “under assessment”.
The site at 150 Queen Street currently houses the 1960s-built 14-level office building known as the Prudential Building, which was purchased for $25.5 million in September last year following a joint Savills and Colliers International campaign. It was sold by Charter Hall, which bought it for $32 million in September 2007, just before the commercial property market peaked.
Its development is opposed by the Melbourne City Council, with Doyle, currently in an election battle, labelling it “too big”.
“In the core of our city we do have tall buildings, but we don’t want canyons, and we need to think about the culture of the city.
“At the footpath level it needs to be something that is active and adds to culture of Melbourne,” he told the Ten Network.
Doyle called the move to sell apartments prior to approval as “not only a bit cheeky” but also "a little bit arrogant" though there is nothing illegal about doing it either in Singapore or Melbourne.
“I understand this is still at [Victorian planning] minister [Matthew Guy’s] desk.
“He has not said yes or no.” If Guy does say yes, Doyle said he could not fight the decision, as it is a ministerial decision.
Guy himself has also labelled the move to sell apartments in Melbourne Tower as "very cheeky".
''And that's very much an understatement – of someone to be selling off the plan to people on a tower that isn't approved," Guy told ABC Radio.
In a statement, CEL Australia said it has been “cooperating with the Department of Planning and Community Development in relation to the development approval for Tower Melbourne”.
CEL Australia corrected an earlier media release, which said it was co-operating directly with the minister's office.
Doyle says high-rise buildings need “human scale”.
“When you get mega-buildings you have to look at the context as a whole."
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Singapore developer 'cheeky' for selling unapproved Melbourne CBD high-rise project off the plan: Lord mayor

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Australand has slammed some of its biggest house-and-land competitors for offering incentives to entice buyers as the outlook for the Melbourne land market remains soft.
Land sales on Melbourne’s fringes have been in decline since the second half of 2009, falling from 16,000 sales in 2010 to just 6,000 for the first six months of 2012, according to the latest Melbourne communities report from Colliers International, which forecasts only modest growth ahead.
Median land prices fell by 9% over the six-month period, from $215,000 to $205,000, but recorded an increase of 7% year-on-year.
Developers have also been hurt by the withdrawal of the $13,000 Victorian government first-home buyer handout for the construction of new homes, which ended in June.
Australand general manager Rob Pradolin told Fairfax the current land market remained tough, with first-home buyers disappearing following the ending of the grant, but says rebates and incentives are causing hundreds of home owners to pay more stamp duty because the face value of contracts included those extras.
He says there is a lot of competition in the marketplace, with “developers under-cutting each other and offering significant incentives to make a sale”.
Pradolin says rebates are disguising the adjustment that has already occurred in the Melbourne land market and says it is about time developers face the facts, give a simple best price and move on.
Australand has eight land estates for sale on the Melbourne fringes including Casiana Grove in Cranbourne West, with land prices starting at $187,000 featuring 670 lots.
According to Colliers, 400 lots remain available for sale in this development.
Among those offering incentives is one of Australand’s biggest competitors, Stockland, which is offering a $10,000 cash rebate on selected lots.
The rebate is offered at Selandra Rise in Clyde North, the-top selling residential project over the second half of 2011, according to the same Colliers report.
Lend Lease is offering to pay back the value of stamp duty of the land component of the sale to be received as a cash-back upon settlement before December 7, 2012.
Another developer, Peet, was giving away Toyota cars up until October 14.
Other developers offering incentives include Intrapac, which is offering a $15,000 new home buyer grant at its Somerfield development at Keysborough in Melbourne’s south-east, which is available to all buyers.
“We’re extending the expired new home buyer hrant to include everyone,” says the Somerfield brochure.
Some of the promotions come with flashy, attention-grabbing signage.
<img src="/images/stories/2012/10/hotlots.jpg">
The Stockland offering is called the “Hot Lots Offer” complete with burning flame.
Other developer incentives have included cash rebates, stamp duty rebates, free fencing and landscaping.
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Flashy developer incentives push up cost – and attendant stamp duty – of Melbourne land packages: Australand

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<img src="/images/stories/2012/10/cbrelogo3.jpg">
CBRE Melbourne CBD retail specialist Zelman Ainsworth talks about the work he did on the retail leasing of the newly refurbished Hamer Hall in the Arts Centre, including concluding leases with a number of Australia’s biggest restaurateurs.
How long have you been in the industry?
Three years.
What’s happening in the area you specialise in?
I specialise in Melbourne CBD retail leasing. Retailing has generally been difficult over the last 24 months due to the competition from online retail and the newly adapted saving habits people are becoming accustom to. Although the Melbourne CBD retail market has proven to be resilient when compared to the suburban retail markets, this can be accredited to the limited retail vacancies in the Melbourne CBD and the success CBD retailers have been experiencing due to the large increase in CBD residents, office workers and visitors over the last five years.
<img style="margin: 5px; float: left;" src="/images/stories/2012/10/zelman.png">
Describe the most interesting property you have sold/leased:
I was fortunate enough to work on the retail leasing of the newly refurbished Hamer Hall in the Arts Centre. This high-profile project attracted interest from some of Australia’s biggest restaurateurs and chefs; it was a privilege to work with such great talent. We concluded a leasing deal with Frank Van Haandel for his new restaurant Trocadero and the Sydney-based Asian restaurant Sake. We will soon be announcing the last and final restaurant deal within the Hamer Hall, which will certainly be as high-profile and exciting as the first two leasing deals done.
What are the ingredients to being successful in your job?
Working hard and always be proactive, avoid taking any shortcuts and always do my absolute best. I always strive to give the best possible advice to clients. It helps to put myself in their shoes and think, 'What would I do if this was my property?'.
What aspects of your role do you enjoy the most?
Working with creative and exciting retailers and restaurateurs and getting a clear understanding of their retail requirements and then going out to the market and helping  them make the right property decisions for their business. At the same time  achieving the best possible outcome for our clients’ retail properties.
Where would invest a spare $750,000?
Use it as a down payment to buy a retail property anywhere in the Melbourne CBD.
Which football team do you support?
Collingwood (maybe next year, boys).
What’s your favourite app or techno gadget?
Google Maps.
How do you use social media?
I use <a href="https://www.propertyobserver.com.au/https://au.linkedin.com/pub/zelman-ainsworth/21/30b/154" target="_blank">LinkedIn</a>.
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In profile: CBRE's Zelman Ainsworth, Melbourne CBD retail specialist

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There are a growing number of investors using their self-managed super funds (SMSFs) to purchase fast-food outlet premises, attracted by the opportunity to earn rental yields as high as 8%.
This follows a number of recent sales of fast-food outlets, including a Red Rooster on Murray Street in Colac that sold for $1.3 million with a yield 7.16%.
Burgess Rawson agent Jamie Perlinger, who sold the property,believed that the brand name played an important part in the sale, as well as the long lease term.
“It was two things, the brand and the 15-year term,” he tells Property Observer.
Other recent fast-food outlet sales include a 440-square-metre Hungry Jack’s in Corio, Geelong, which sold at auction in August for $1.9 million with a yield of 7.83%.  The Hungry Jack’s lease runs until 2017 with multiple renewal options and brings in rent of around $153,000 per annum.
A combined Subway and KFC outlet in Riverstone, NSW, measuring 778 square metres was also sold for $1.3 million, with a yield of 6.7%. Both fast-food outlets are on long leases bringing in net income of $88,000 per annum plus GST.
Both were marketed by Burgess Rawson.
“There has been a lot interest in properties between the $1 million and $2 million price bracket. A lot of investors are after that kind of price and have been interested in investing through their self-managed super funds,” says Perlinger, who believes that yield rates of between 7% and 7.5% on these properties would remain steady over the coming months.
A combined Red Rooster and Souvlaki Hut premises is currently on the market. It is at 40 Princes Highway, in the small town of Traralgon in Victoria.
The 372-square-metre premises is leased by the fast-food chain on 10-year lease with rent of around $178,000 per annum.
Traralgon is the retail capital of the Latrobe municipality, with a trade catchment in excess of 70,000 people.
The property is for sale by private treaty, with the listing held by Raoul Holderhead and Jamie Perlinger of Burgess Rawson in conjunction with Ted Addison and Matt Addison of Addison Real Estate.
It last sold for $2.46 million in October 2010 with estimated annual rent of $200,000 – a gross yield in excess of 8%.
Another two KFC premises have been listed for sale by Burgess Rawson, the KFC in Casino in NSW's Northern Rivers region and the KFC Mona Vale. Both are on long leases and will be auctioned on October 30 through Burgess Rawson the listings agents.
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Investors have a taste for high yields, long leases and brand names of fast-foods premises

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Australia is clearly not the only country in the Asia-Pacific region where rising property prices have been linked to a possible housing bubble – and downplayed, says CommSec chief economist Craig James.
Attending a Standard &amp; Poor's (S&amp;P) briefing to analysts today in Sydney, James tweeted:
<a target="_blank" href="https://twitter.com/search?q=craigjamesoz&amp;src=typd"><img src="/images/stories/2012/10/jamestweet.jpg"></a>
Earlier CommSec tweeted that S&amp;P gave a "guardedly positive analysis of global bank system" adding that US banks are "85% through the working off problem loans".
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Tweet of the day: Hong Kong housing bubble risks downplayed by S&P, notes CommSec's Craig James

<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.

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Larry Schlesinger

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