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Investment in the housing market has remained weak and at odds with housing demand fundamentals, the October minutes of the RBA monetary policy meeting have revealed.
The October 2 meeting minutes note that sentiment in the housing market is improving but also acknowledge the challenges faced by residential developers selling new houses in some areas, “given their prices relative to existing dwellings”.
At the meeting the RBA cut the cash rate by 25 basis points to 3.25%, just one rate cut off record lows.
“Dwelling investment remained at a low level in the June quarter, although there were signs of improving sentiment in the housing market more recently,” say the October minutes.
“Members noted that weak dwelling investment had been at odds with the fundamentals for housing demand, as evidenced by the relatively low vacancy rate, below-average mortgage rates and ongoing population growth.
“They observed that, in some areas, developers had difficulties selling new dwellings given their prices relative to existing dwellings." 
The RBA board also noted that the improvement in sentiment in the housing market had been accompanied by an increase in dwelling prices in recent months.
However, they also note that borrowers continue to deleverage, helped by the recent lowering of mortgage rates.
“Household credit had been growing a little more slowly than household incomes, with members discussing the desire of households to pay down their debts ahead of schedule, helped by the reductions in borrowing rates,” said the RBA.
The minutes indicate the decision to cut the cash rate was made mainly due to global concerns, with members noting that “recent indicators suggested that the pace of global growth had edged down”. The RBA says it had scope to cut rates  due to the inflation outlook being within its target range.
“At its previous meeting, the board had observed that the effects of earlier reductions in the cash rate were still working through the domestic economy, and that the outlook for inflation was consistent with the target over the next one to two years.
"Members concluded that the current assessment of the inflation outlook provided scope to adjust policy in response to the softer growth outlook. Therefore, at this meeting the Board judged that it was appropriate for the stance of monetary policy to be a little more accommodative, thereby providing some additional support to demand over the period ahead,” said the RBA board.
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Housing demand fundamentals in place but investment yet to pick up: RBA October minutes

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One Big Switch, the consumer discount advocacy company, has returned to its roots with a new mortgage awareness campaign targeting lenders who don’t pass on RBA cash rate cuts in full.
Called “Truth in Banking” and with the slogan "We mind the gap" it asks borrowers to enter in the details of their current mortgage including their lender, interest rate, amount owed and any fees they are charged.
A trademarked “Rate Gap calculator’ gives subscribers an indication of how much extra they have been paying to date and on a monthly basis, based on RBA cash rate movements and their lender’s response to them.
Subscribers can sign up over the next 17 days with the campaign attracting just under 3,400 participants at last count. Subscribers will then receive information about future discounting campaigns.
One Big Switch was founded by Harvard MBA graduate Paul Hunyor and former press secretary to Kevin Rudd Lachlan Harris in July 2011 with funding from venture capital fund MH Carnegie &amp; Co (MHC), founded by Mark Carnegie and advertising veteran John Singleton.
It launched with a campaign offering borrowers the opportunity to be part of a mortgage discount offering.
Around 40,000 borrowers  signed up to this campaign last year have refinanced through one of these lenders with 1,600 choosing to refinancing through non-bank lenders Resimac, FirstMac, Mortgage Ezy, Mortgage Point and IMB Building Society.
One Big Switch is seeking to sign on 25,000 mortgage holders to the new campaign, which runs until November 2.
A spokesperson for One Big Switch says the campaign is all about “transparency, creating awareness and consumer empowerment”.
"The purpose of the campaign is find 25,000 consumers to calculate the rate gap. The rate gap is the difference between RBA cash rate movements and rate movements by individual lenders.  
"Throughout the year One Big Switch members are offered discounts on many household bills, including their mortgage, but this campaign is not about discounted mortgages."
One Big Switch campaigns are being led by Christopher Zinn, former the head of communications at consumer watchdog Choice.
“The banks know exactly how their policies of not passing on the benefits of cash rate changes impacts on their bottom line in a positive way,” says Zinn.
"But the consumer, until now, has been largely oblivious of the negative effect  unless they had the will and technical skills to juggle all the numbers.
"This is one reason we have launched the ‘ We Mind the Gap’ campaign. To arm ordinary people with information they may need to make better decisions."
The latest campaign is being carried out in partnership with Channel 7 and being promoted via Channel 7 News, Sunrise and Today Tonight.
According to Strachan Taylor, head of mortgages at One Big Switch, a look back over the last 20 years reveals that banks have often not always passed RBA cash rate moves completely and immediately on.
“In fact over the last decade they have done so 55 times,” he says.
“Since 1990 the spread between the RBA cash rate and the general bank lending rate grew to 4.75% by mid-1993, and remained around 4% until late 1994, dropping to 3% in late 1994 and from mid-1995 rapidly fell to its minimum of 1.7% in 1999.”
He says the spread remained tight at around 1.8% until 2008 when the GFC hit, following which spreads once again quickly began to widen to 3.4% today.
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One Big Switch targets miserly mortgage lenders in new consumer awareness campaign

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Office leasing activity in the Melbourne CBD is at lowest level in a decade, but the current vacancy rate of 6.2% is not expected to blow out, with accountants KPMG and law firm Corrs Chambers Westgarth among those seeking around 150,000 square metres of office space.
Savills recorded 190,487 square metres of space leased over the 12 months to September 2012 in central Melbourne (CBD, St Kilda Road, Southbank and Docklands) from leases greater than 1,000 square metres.
This is down 56% on the previous corresponding 12-month period and down on the five-year average of 438,495 square metres.
The hardest hit was the high-end premium office market, which experienced a total negative net absorption of 12,336 square metres for the year compared with grade A, which enjoyed a positive net absorption of 7,760 square metres and secondary grade office stock, which recorded a positive net absorption of 8,619 square metres.
This resulted an overall positive net absorption of 4,043 square metres - net absorption refers to the amount of space occupied at the end of a period of time minus the amount occupied at the beginning of that period, takes into consideration space vacated during the period.
The following graph prepared by Savills shows that the lowest vacancy rate remains for A-grade office stock (4.7% down from 5% ) while the vacancy rate for the most expensive premium grade stock has risen from 5.4% to 7.7%.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/10/savillsoct16.gif"><img src="/images/stories/2012/10/savillsoct16thumb.gif"></a>


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Despite the subdued leasing activity, significant tenancy requirements remain in the market, according to Savills.
Savills head of office leasing for Victoria Nicholas Farley says it is premature to talk about a vacancy rate blowout and predictions of a significant fall in rental levels when there is a good level of tenancy requirement and enquiry levels are trending upward.
"Public requirement for CBD office space is currently well above 150,000 square metres, including Corrs Chambers Westgarth (9,000 square metres), KPMG (25,000 to 30,000 square metres), and several other well-known tenants in the market for circa 6,000-square-metre requirements.”
"Add to that the fact that enquiry from the finance and insurance sector is well above its historical average, the property and business sector has its highest enquiry level for 10 years, and while the IT and technology sector has recorded an about average requirement, in terms of what its requirements have been over the last decade, it is now trending up."
The biggest leasing deal over the year to September was Suncorp leasing 15,500 square metres of space at 530 Collins Street, Melbourne’s largest premium office building, which is owned by the GPT Wholesale Office Fund.
Net effective rents now typically ranged from $340 to $437 per square metre per annum for A-grade quality stock, and between $205 to $287 per square metre per annum for secondary-grade buildings.
Net rents for premium grade range from $440 to $675 per square metre.
According to Savills,the Melbourne CBD office market contains 3,581,940 square metres of lettable space.
Of this, over half at 2,034,886 square metres is of prime (premium and A grade) quality, 849,431 square metres is grade-B quality and the balance (697,623 square metres) grade C and grade D.
Savills also notes that foreign investors continue to be attracted to Melbourne  office investments due to a range of newly built buildings  with long leases to quality tenants and the comparable stability of the region’s economic environment.
In the last six months the most significant transactions in central Melbourne were 525 Flinders Street ($54 million, purchased by AFIAA), 501 Swanston Street ($60 million, purchased by PDG) and 150 Collins Street currently under construction ($180 million, purchased by GPT).
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Melbourne CBD office leasing activity lowest in a decade but demand for space will prevent vacancy 'blowout': Savills

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Conglomerate Wesfarmers, the owner of Coles, has engaged investment banks to review its property strategy with a view to selling the freeholds of 25 shopping centres it owns worth $700 million.
This follows its main supermarket rival Woolworths considering selling down 69 shopping centres currently held on its own balance sheet into a new $1.4 billion A-REIT.
Both moves are aimed at allowing the supermarkets to focus on their core activity of retailing.
Coles is not contemplating a similar ASX-listed structure as Woolworths, but is considering a similar model used by shopping centre landlord Centro, which added around $1.1 billion to its coffers through property investment partnerships with the Perron Group and industry superfund ISPT.
It would remain property manager of the freehold stores with investors also able to invest in new store rollouts – around 10 new stores annually, according to a report in The Australian Financial Review.
Coles is being advised by Simon Rooney, head of retail investments at Jones Lang LaSalle along with Nick Jacobson, head of real estate at Goldman Sachs, and John Perry, head of industrial and real estate at RBS.
Coles operates 744 supermarkets, 794 liquor outlets, 625 Coles Express stores and 92 hotels, but owns only a small percentage of these properties.
It leases 95% of its supermarket space.
Coles has been selling some of its smaller free-standing property holdings while properties featuring Coles as an anchor tenant have sold on strong yields.
In September, a 4,000 square metre corner bulky goods site on Ferntree Gully Road in Glen Waverley featuring a Coles Express service station sold under the hammer for $7 million through Burgess Rawson Melbourne. The site brings in annual rent of $413,000 a year, representing a gross yield of around 5.9%.
Wesfarmers has vast experience in the commercial property market growing the BWP Trust, which holds Bunnings Stores, into an externally run portfolio worth $1.3 billion. Wesfarmers has a 23% investment in the BWP Trust.
It also has experience divesting its property interests, selling a $230 million portfolio of stores to a Charter Hall Group and Telstra Super consortium.
Wesfarmers holds $2.6 billion worth of property assets on its balance sheet, according to June 30 annual accounts.
It acquired Coles in 2007, with Wesfarmers managing director Richard Goyder saying at the time it had not ruled out putting any property assets that it might inherit into a separate property trust.
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Wesfarmers considering selling off Coles freehold supermarkets to institutional investors

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Suncorp Insurance will occupy 785 square metres of new office space at Westfield’s Fountain Gate Shopping Centre in Narre Warren at a gross rent of $320 per square metre on a five-year lease starting in October.
The lease agreement was negotiated by Leah Baxter of Colliers International.
Under the new structure of the business staff will operate from home, with Suncorp using the Narre Warren office space as a training hub.
The location within a shopping centre made the training hub accessible and convenient for staff.
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Suncorp leases new office space at Westfield Fountain Gate for training hub

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The most common commercial property assets that falls into the hands of receivers are development sites in regional Queensland, according to the September quarter update to the LandMark White forced sales monitor.
The monitor tracks all commercial properties that are listed for sale in the print media and counts any that are listed are labelled as a receiver or mortgagee sale as a forced sale.
According to LandMark White, vacant residential development sites in regional Queensland, which accounted for 8% of all recorded forced sales nationally.
Across all asset types, Queensland has accounted for nearly one out of every two (48%) forced commercial properties sales over the past 12 months to September.
Over the September quarter there were 151 commercial properties listed as forced sales, down marginally from 153 in the June quarter, with 43% of these properties located in Queensland.
This was above the national average of 39% over the September quarter.
Of the properties in New South Wales that were advertised in the September quarter, only 16% were distressed sales, compared with the annual figure of 24%.
In Victoria, the proportion of forced sales was only 11%, compared with 13% over the past 12 months.
LandMark White says it is unsurprising that Queensland has the largest share of forced sales over the past year.
Click to enlarge
<a href="/images/stories/2012/10/landmark.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/10/landmarkthumb.gif"></a>
Recent distressed sales in Queensland include 388 hectares of waterfront land known as Clarkes Cove (pictured below) in Cape Gloucester in the Whitsundays, which sold for $2.55 million at the end of August through Christie Leet &amp; Rob Taylor of PRDnationwide in a mortgagee sale.
<img src="/images/stories/2012/10/clarkescove1.jpg">
The picturesque block of land is bounded by the Dryander National park on three sides and Pacific Ocean on the fourth side and had been targeted for development as a large-scale tourist facility with three resort hotels offering a total of 810 rooms.
It had an open market valuation of $2.98 million in February 1999.
Nationally, development sites accounted for 34% of the total in the September quarter, against an average of 32%, while sites with a holding income comprised 9% of the September results, against an annual average of 10%.
The second most common property type listed for forced sale were vacant residential development sites in regional NSW (5.2%) and third most prevalent were income producing retail properties in regional Queensland, which accounted for 5.1% of all forced sales over the past 12 months.
Across the broad commercial property sectors, office and retail property had the poorest results of the September quarter, as 18% of office and 31% of retail properties were forced sales.
The industrial property sector had the biggest improvement, falling to 19% from 35% in June, which was also below its 12-month average.
Over the 12-month period, 32% of forced sales were in NSW and only 8% in Victoria.
Since the series began 12 months ago, a total of 2,095 properties have been advertised for sale in the national press, and 27% (573) were specifically listed as being in the hands of mortgagees, receivers, or liquidators.
 
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Regional Queensland development sites top list of most distressed commercial assets: LandMark White

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Two-thirds of borrowers who have a mortgage with a bank believe they could be getting a better mortgage deal by refinancing with a new lender, according to research by Ernst &amp; Young.
However, many give up at the early stages of the mortgage application process or turn to a mortgage broker for help.
These were the key findings of a survey of 635 respondents across the  big four banks as well as regional banks carried out as part of Ernst &amp; Young’s customer experience series.
Research by Ratecity.com.au finds that <a href="/news">three of the four lenders to have passed on the full October rate cut are small lenders</a> led by bankmecu, which is offering a standard variable rate of 5.49% – 108 basis points lower than the lowest standard variable rate offered of the big four (NAB, 6.58%).
According to the Ernst &amp; Young survey, when applying for a mortgage, a third of customers give up at the "information gathering" stage because of "too much choice" and a lack of simple and clear information.
It also found that 60% of people who initiated the mortgage application process ended up finalising it and getting a mortgage, but the remaining 40% dropped off along the way.
“It sounds simple enough, but banks need to focus their efforts on that initial step – when customers first put their mortgage feelers out. They need to ensure the information available via all their channels is in plain English and provides real comparisons for customers, in other words it doesn’t require high levels of financial literacy to make sense of it,” says Ernst &amp; Young’s John Rolland
“We know Australians are time poor. They feel a lack of control over their lives and, as such, don’t like complex decision-making. This means they default to the simplest tools that help them in their everyday decisions.
“While choice is obviously a good thing for consumers, there is such a thing as ‘choice overload’ – even in banking when competition is a good thing.
“It’s a sign of our times that people looking for a mortgage are feeling overwhelmed by the vast array of mortgage products as well as the number of mortgage lenders, and don’t know where to start."
Another finding was that 80% of customers who embarked on the mortgage or switching process started without involving a broker or third party – significantly below the 42% share of the mortgage distribution market that brokers are estimated to hold.
This suggests that many borrowers choose to engage a mortgage broker after finding the application process to difficult or frustrating to do on their own.
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Two-thirds of borrowers open to switching lenders for better deal: Ernst & Young

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Australian-owned transport and logistics firm Australian Container Freight Services (ACFS) will pay $800,000 per annum net to lease an office/warehouse property at Tottenham in Melbourne’s western industrial precinct in a deal  negotiated by Savills Australia.
The 33-65 Paramount Road property comprises a 15,150-square-metre office/warehouse facility with a huge canopy, three recessed loading docks and a large concrete hardstand area.
The short-term leas deal was brokered by Savills industrial agents Greg Jensz  and Tim Casanelia.
"The facility will give the firm room to move as it manages its expansion in the nation’s transport and logistics capital. The location – five kilometres from Melbourne's port with excellent access to major arterials via Sunshine Road – was also a key consideration,’’ says Jensz.
ACFS will move from its current home at Port Melbourne.
 The lessor is a private Geelong-based investor.
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Transport group ACFS to lease 15,000-square-metre Melbourne warehouse at $800,000 per annum

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The practical completion of the Convesso and Serrata apartment projects in Victoria Harbour at Melbourne's Docklands helped push up Lend Lease apartment sales over 2012, but the overall residential outlook remains challenging with residential lot settlements down 10%.
Settlements on Victorian apartments rose from 351 to 523 over the 2012 financial year ending June 30, 2012, with the average price paid decreasing by 12% to $1.05 million.
Just 15 units remain available for purchase in Convesso, which features 220 one-, two- and three-bedroom units, one half of Lend Lease's flagship Convesso Concavo development.
Prices range from $530,000 for a one-bedroom apartment to more than $5 million for a 329 square metre three-bedroom marina home apartment.
<a href="https://www.propertyobserver.com.au/developments/seven-sub-%24600000-units-left-in-newly-completed-docklands-development-serrata-as-june-30-deadline-draws-closer/2012061255046" target="_blank">Only seven remain available in Serrata</a>, a joint venture project with Japanese developer Sekisui House, featuring 83 two-bedroom apartments and 61 one-bedders, with one-bedders priced between $425,000 and $465,000.
Lend Lease also recorded strong sales at Silk and Antias at Jackson's Landing on the northern peninsula of Pyrmont, in inner Sydney.
“The current year includes a high proportion of mid-market apartments settled at Serrata and Antias,” added Lend Lease.
The developer settled 2,059 land lots in the year to June with a value of $461 million, down from 2,299 settlements in the previous financial year worth $497 million, with the average price per residential land lot increasing by 3% from $216,300 to $223,600. The company says this is "reflecting a change in the product mix compared to the prior year".
Lend Lease said the drop in settlements was principally the result of fewer settlements in Victoria and South Australia, “reflecting current market conditions and a number of projects approaching completion”.
Pre-sales (contracts that had not settled prior to June 30) totalled a further 1,369 units, with a combined value of $278 million.
Lend Lease has a pipeline of 70,500 units in its various residential projects, including joint venture projects.
The developer says “weak consumer sentiment continues to impact the residential market in Australia, resulting in lower enquiry levels, longer conversion times and lower trading levels”.
Lend Lease is looking to increase its presence in Western Australia, having being selected by the Metropolitan Redevelopment Authority (MRA) as the preferred proponent for the $1 billion Waterbank mixed-use redevelopment in Perth.
Lend Lease reported operating profit after tax of $507.2 million for the 2012 financial year, a 4.5% increase on the prior year.
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Docklands apartment sales help Lend Lease weather challenging residential market conditions

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The number of registered domestic builders declined for the fifth straight month in September to 14,414, the lowest number since September 2011, when there were 14,429 builders registered with the Victoria’s Building Commission.
Since May more 400 builders have not renewed their registrations.
The decline in the number of registered residential builders come on the back of  recently published ABS quarterly data showing that nearly 24,000 jobs have gone from the industry in the first six months of the year.
The total number of people employed in the industry has fallen from a peak of 197,800 in the December quarter to 173,900 in the three months to June 2012, with the building industry’s contribution to state employment having fallen from 6.9% to 6%.
The building industry has been hit with a spate of high-profile company collapses this year, including most recently Victorian-based New Dimension Homes, which entered into administration at the end of August, impacting about 50 home owners, and earlier this year the coll apes of Bina Construction, based in Caufield, and Australian Property and Construction, based in Mitcham.
Builders with a national presence that have collapsed include St Hilliers Construction, Kell &amp; Rigby and Reed Construction, with SmartCompany counting 80 building or construction firms entering administration, liquidation or being hit by winding-up notices in the month of March alone.
Victorian building industry employment ('000)
<img src="/images/stories/2012/10/buildingoct16.gif">
Source: ABS
Figures released by the Building Commission in August for the 2011-12 financial year reveal that the value of building permit activity dropped 4.5% to $23.2 from $24.3 billion recorded in the previous financial year.
Permits for the construction of houses fell 9.9% to $11.8 billion, while permits for the construction of apartments jumped from 17.6% to $4 billion.
The only region to record a notable rise in building approvals was inner Melbourne, the focus of most high-rise and high-density projects, with the value of approvals increasing 8.5% to $10.8 billion.
In outer Melbourne the value of permits fell 17.9% to $7.6 billion.
Photograph courtesy of <a href="https://www.propertybloom.com.au/index" target="_blank">Property Bloom.</a>
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Victorian registered builder numbers at 12-month low as 24,000 jobs go: Victorian Building Commission

<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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