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National luggage, leather goods and travel accessories retailer Victoria Station has pre-committed to a nine-year lease with renewal options at a $9 million office and warehouse facility at Keysborough in Melbourne’s south-east.
The facility will act as its national headquarters and distribution centre.
Due for completion by owner/developer BFD Constructions in mid-November, the 1 Atlantic Drive, building will comprise a 7,396-square-metre warehouse with a 560-square-metre office component on a 14,850-square-metre site. The deal was brokered by Savills Australia’s Joseph Catanese.
The rent is believed to be around $700,000 per annum. BFD Constructions purchased the property last month for $3.2 million.
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Luggage retailer Victoria Station signs nine-year office/warehouse lease in Melbourne suburb of Keysborough

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The capital cities of Australia’s resource states are leading the property market recovery, according SQM Research managing director Louis Christopher.
Christopher places Perth houses and units at 6.30 on the property clock, indicating the market has just bottomed out and heading into an upswing, and Brisbane houses and units at six o’clock, indicating the market has bottomed out.
<img src="/images/stories/2012/10/clock-generic.jpg">
His assessment of the Perth market is based on falling listings and a tightening rental market.
Perth house and unit prices have also stopped falling, says Christopher.
In its September stock-on-market report, SQM found that Perth online residential listings declined by 3% to 17,517. Year-on-year they are down 14.6%, the biggest decline of the mainland capital cities (excluding the much smaller Darwin market).
SQM also found that the Perth vacancy rate tightened from an already very low 0.7% in July to 0.6% in August, with just 1,177 properties available for rent (compard with more than 2,600 in Adelaide and nearly 12,000 in Melbourne). Apart from Darwin (0.5%), Perth has the tightest rental market in Australia.
This tightening vacancy rate resulted in median house rents increasing by $10 to $450 per week over the August quarter, with weekly rents for units, apartments and villas rising by $20 to $430 per week, according to the latest REIWA data.
Christopher says Brisbane has bottomed out due to falling listings volumes and house prices no longer falling.
According to SQM Research, Brisbane online residential listings are down 8% year-on-year to September, with the vacancy rate at a tight 1.5%.
 
<hr class="system-pagebreak">
Investors looking to get into the Sydney market at the bottom of its cycle may have missed out, according to Christopher.
Christopher has Sydney houses at seven o’clock on the property clock, with units slightly further ahead at 7.30, indicating houses are well on their way to rebounding.
In both the case of houses and units listings are falling with SQM recording 2.9% fall in Sydney listings in September to be down 13.1% year-on-year to 30,408 properties for sale.
In both house and unit markets he says evidence of a recovery can be seen in rising Sydney auction clearance rates, which was 63% over the weekend.
However, Sydney houses are not making a homogenous recovery, with prestige houses stuck at four o’clock, according to Christopher, indicating they still have some way to fall.
Sydney units are slight further ahead of houses in the property cycle due to the introduction of the $15,000 first-home buyer handout, which applies to new homes, including apartments, marketed off the plan.
The Melbourne property market (houses and units) is assessed as having some way to go before bottoming out – at five o’clock on the property clock.
“Melbourne listings are still elevated and are not falling," says Christopher.
“There is some evidence of a rise in clearance rates, but no real evidence of a rise on prices, he says.
SQM has Melbourne online residential listings up 3.2% year-on-year to September to 51,564 properties listed for sale.
Adelaide and Canberra are assessed as flat property markets and at the same point in the property cycle as Melbourne (five o’clock).
In the case of Adelaide, Christopher says that “listings are still elevated, yet they are no longer rising at rapid rate.
“There is no evidence yet of increased buyer demand and prices are flat.”
In Canberra, apart from listings remaining high and prices flat, Christopher says the “outlook is uncertain due to the federal budget”.
Darwin is assessed as the only capital city market that has already rebounded (at nine o’clock) and heading towards it its peak.
“There has been a strong lift in Darwin house and unit prices starting in the first half of this year.
“Stock levels are falling rapidly. The rental market very tight,” he says.
SQM Research shows a 25.9% decline in Darwin properties available to purchase, with online listings falling from 1,616 in September 2011 to 1,198 currently.
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Perth and Brisbane heading into property market upswing: Louis Christopher

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Liquor retailer Cellarbrations will pay around $304 per square metre to lease a shop in the  Healesville Walk Shopping Centre, a popular Melbourne tourist destination.
The 230-square-metre store has been leased on a five-year term at a rental of around $70,000 per annum guaranteed by Metcash.
The deal was brokered by Savills Australia retail director Michael Di Carlo alongside colleague Jeremy Marmur. 
Di Carlo says there is a very high level of demand for tenancies at Healesville Walk.  
Anchored by a Coles supermarket, Healesville Walk is a community shopping centre with frontage to the Maroondah Highway. Other retail tenants include Liquourland, Bakers Delight, and National Australia Bank. The lessor is a major institutional investor/developer.
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Cellarbrations leases shop in Healesville Walk Shopping Centre

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Sydney’s prestige northern beach suburbs property markets remain weak, “with no sign of improvement" according to property valuers Herron Todd White’s (HTW) October market review.
According to HTW, the northern beaches of Sydney – comprising the suburbs of Pittwater, Manly and Warringah all the way to Palm Beach – traditionally are among the hardest hit when the overall Sydney market is soft.
“The first suburbs to show signs of softening tend to be the upper northern beaches suburbs, and the further north you go, the weaker the market tends to be.
“The main factor resulting in this trend is the number of holiday/weekender type properties.
“People who work in inner Sydney during the week may purchase a property on the northern beaches to get away for the weekend.
“When economic conditions remain soft, these weekend homes are often the first asset to be sold off by owners,” says HTW.
According to the firm, the trend of Sydneysiders selling their holiday properties on the northern beaches occurred during the GFC, and in the last 12 months there is “evidence of this pattern repeating itself”.
“With the global economic situation still unstable a turnaround in market conditions is unlikely in the foreseeable future.
A further factor contributing to the weak northern beaches market is the lack of transport, “which has always been a negative for the area”.
“Although relatively close to the Sydney CBD, public transport and worsening vehicle access due to traffic contribute strongly to the weakened demand for property, especially in soft market conditions.
“There have been many local government proposals to improve the roads into the northern beaches but we are yet to see any action taken,” says HTW.
Similar challenges facing prestige suburbs are noted by John McGrath in his Sydney spring McGrath report, who says the Sydney property market is experiencing “a two-speed turnaround”.
“Properties under $1 million are in strong demand whilst those above $2  million are less so.
“The key catalyst for the upper end recovery will be the share market. Interest rates, rents and unemployment are not really influencing factors for the top end.
“Many luxury owners are still awaiting some clearer resolution on the macro economy and the eurozone before jumping back into the market,” says McGrath.
<hr class="system-pagebreak">
The outlook for the North Sydney residential market – just across the city from the CBD – is a lot better, despite HTW witnessing a slight decrease in activity in the first-home buyers’ market and mid-market range in the last year and local agents advising that a lack of stock is slowing down the market.
“We are still seeing property that has been marketed well and realistically priced being sold in short periods of time," says HTW.
“We believe this illustrates that the market is still quite strong with prospective purchasers present in the market, ready to move in and purchase the ‘right home’."
However, HTW also warns of the need for better transport infrastructure and growing traffic congestion issues.
“As more people move to the north west there is going to be more demand placed on key transport and road corridors, so a lot of pressure falls on to the government to proceed with the construction of the new North West City Rail Link.
“With the lack of transport in these areas, more and more people are driving and this leads to traffic congestion.
“In the past potential purchasers may have thought twice before buying in the area due to the lack of support by government for a north-west city rail link.
According to HTW, across Sydney, units and entry level homes are the best performers, with these properties continually in high demand.
It notes that there is still strong demand for properties price below $1 million.
“Ashfield, on the outer fringe of Sydney’s inner-west market has been a very strong performer recently.
“As the inner-west suburbs become too expensive for first time home buyers, we have seen Ashfield representing excellent value resulting in increased demand.
“Ashfield is on the fringe of the first time home-buyers bracket for single residences and long term growth is expected as evident from other inner west suburbs.
“Proximity to the CBD and public transport are positives for Ashfield adding to the popularity,” says HTW.
Manly photograph courtesy of <a target="_blank" href="https://www.flickr.com/">Flickr</a>.
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Sydney northern beaches residential market still weak with no turnaround in sight: HTW

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Melbourne estate agent Kon Balasis and Victorian Realty Group Pty Ltd (VRG), which operated as Century 21 Craigieburn, have been permanently disqualified by the Victorian Civil and Administrative Tribunal (VCAT) from holding estate agents’ licences after $167,000 was found missing from a trust account.
In a seperate VCAT ruling, real estate agent’s representative Zoran Rakocevic was banned from being an estate agent's representative or holding an estate agent’s licence for five years after being found guilty of offences, including creating false deposit receipts that led to him benefiting by $156,000.
The permanent disqualification against Kon Balasis and Victorian Realty Group Pty Ltd (VRG) was handed down by VCAT on October 1, reported Consumer Affairs Victoria.
At the VCAT hearing it was found that VRG and Balasis breached the Estate Agents Act 1980 in relation to a deficiency in the Century 21 Craigieburn trust account of $166,935.27 on March 27, 2012, regarding deposits paid on six property sales and that VRG "fraudulently omitting to pay about $177,000 to the persons entitled to that money, which was being held by VRG as a stakeholder pending completion of sales of land.
"Mr Balasis at the time was an officer of VRG and he knowingly authorised these contraventions," said Consumer Affairs.
VRG was also found to have not kept "full and accurate accounting records so as to show the true position of all moneys it received and had also breached the Sale of Land Act in that "it received deposit moneys in the course of transactions for the sale of land and did not hold that money as stakeholder until the purchasers became entitled to those deposits".
The tribunal ruled that Balasis was guilty of conduct as an estate agent that rendered him unfit to hold a licence and he was not of good character or otherwise a fit and proper person to hold an estate agent’s licence.
VCAT cancelled Balasis’ licence and permanently disqualified VRG and Balasis from holding a licence.
In the hearing into allegations against Zoran Rakocevic, Consumer Affairs said he had "created false receipts for the sale of four properties, stating that Compton and Green Real Estate Pty Ltd (where he was employed as an agent’s representative) had received a deposit on each, when it had not,” said Consumer Affairs Victoria.
VCAT also upheld Consumer Affairs' allegations that Rakocevic made false statements in contracts of sale in relation to six properties, "incorrectly stating that C&amp;G was the vendor’s agent when C&amp;G was not the vendor’s agent".
In a further three contracts of sale, Rakocevic was found to have falsely stated that "the vendor had agreed to sell the property described in the contract when the vendor had not so agreed"
VCAT made orders that Rakocevic was "not of good character and is not otherwise a fit and proper person to be an agent’s representative".
In her finding, VCAT senior member Jacqueline Preuss described Rakocevic’s conduct as "deliberate, calculated and carried out over a number of months".
Preuss found that Rakocevic benefitted from his offences because, in three of the transactions involving false deposit receipts and contracts of sale, the company of which he was sole director and shareholder, Montex Corporation Pty Ltd, received $156,419.99.
"Mr Rakocevic’s behaviour was compounded by the fact that he exhibited an unwillingness to admit indisputable facts such as receipt by him of a financial benefit from the transactions. In my view, this indicated a disregard for his duty of honesty and candour’, she said.
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Melbourne estate agent cops permanent ban over $167,000 trust account deficit

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Westpac, Commonwealth Bank and NAB have asked for understanding following their decision not to pass on the full October 2 rate cut to borrowers.
Sympathy they are unlikely to get.
They three banks have asked borrowers to consider the higher cost of raising deposits, retirees dependent on their savings accounts and the many Australians who hold bank shares in their super funds.
However, sympathy will be in short supply with smaller lenders offering standard variable rates in some cases 100 basis points below the major banks, despite not having the multibillion-dollar pockets, enormous numbers of customers and distribution networks.
The cheapest standard variable rates: where the major banks rank
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="205">
 
</td>
<td valign="top" width="205">
Standard variable rate
</td>
</tr>
<tr>
<td valign="top" width="205">
Pacific Mortgage Corp
</td>
<td valign="top" width="205">
5.72%
</td>
</tr>
<tr>
<td valign="top" width="205">
State Custodians
</td>
<td valign="top" width="205">
5.82%
</td>
</tr>
<tr>
<td valign="top" width="205">
Family First Credit Union
</td>
<td valign="top" width="205">
5.95%
</td>
</tr>
<tr>
<td valign="top" width="205">
CUA
</td>
<td valign="top" width="205">
6.05% (October 12)
</td>
</tr>
<tr>
<td valign="top" width="205">
ING Direct
</td>
<td valign="top" width="205">
5.97%  (October 12)
</td>
</tr>
<tr>
<td valign="top" width="205">
Greater Building Society
</td>
<td valign="top" width="205">
6.25% (October 15)
</td>
</tr>
<tr>
<td valign="top" width="205">
NAB
</td>
<td valign="top" width="205">
6.58% 
</td>
</tr>
<tr>
<td valign="top" width="205">
Commonwealth Bank
</td>
<td valign="top" width="205">
6.6% (October 12)
</td>
</tr>
<tr>
<td valign="top" width="205">
Westpac
</td>
<td valign="top" width="205">
6.71% (October 15)
</td>
</tr>
<tr>
<td valign="top" width="205">
ANZ
</td>
<td valign="top" width="205">
6.8% 
</td>
</tr>
</tbody></table>
Source: major banks, Infochoice.com.au, RateCity.com.au
The decisions of the <a href="/news">Commonwealth Bank</a> (20 basis points), <a href="/news">Westpac </a>(18 basis points) and <a href="/news">NAB </a>(20 basis points) mark the 21st time the major banks have cut by less than the official RBA cash rate reduction.
Westpac subsidiary St George today said it would reduce its standard variable home loan rate by 0.17 percentage points  to 6.69% per annum (effective from October 15).
On average the major banks have passed just 115 basis points of the 150 basis points in cash rate cuts introduced by the Reserve Bank since November 2011.
 
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All banks stuck to form when it came to the time they will take to pass on the rate cut – earning an estimated $6 million every day they withhold relief for borrowers.
Westpac remains the worst offender, taking nearly two weeks to pass on the rate cut and earning the bank an extra $20 million into its already swollen coffers.
Westpac is drifting further from the big four on variable rates, offering a standard variable rate of 6.71% from October 15.
Commonwealth Bank will take 10 days to pass on its rate cut (6.6%), with NAB’s new standard variable rate of 6.58% in effect from today, six days after the RBA announcement.
In previous statements following partial rate cuts, the major banks highlighted the growing cost of wholesale funding.
However, with wholesale funding now cheaper, the major banks focused on their rising reliance on deposits to fund their mortgage lending and the fact that savers would lose out if they passed on the full rate cut.
Westpac tried to tug at the heart strings with its statement that it needed to balance the needs of “our mortgage customers with those of our millions of savers, particularly retirees who depend on the income from their deposit accounts”.
The Commonwealth Bank told borrowers that “one significant factor” impacting its balancing of borrower, depositors and shareholder need was the “increase in the cost of deposits noted in the Reserve Bank of Australia’s most recent Financial Stability Review”.
If borrowers weren’t happy about the decision, the Commonwealth Bank tried one further tactic, reminding customers that “millions more Australians own Commonwealth Bank shares through pension funds.
NAB’s head of personal banking, Lisa Gray, steered clear of mentioning pensioners or shareholders but did highlight that “banks obtain funds for lending from deposits and from wholesale funding markets.
“Around the world, banking regulators require banks to hold more stable forms of funding, like deposits, to reduce risk in the banking sector. "The increased competition for deposits is pushing up costs, making it more expensive to fund our lending," said Gray.
However, disgruntled borrowers who have standard variable loans dated from July 1, 2011, can switch lenders without having to pay any mortgage discharge fees (exit fees), with many smaller lenders offering substantially lower offerings.
Non-bank lender Pacific Mortgage Corporation is offering an SVR of 5.72% – 86 basis points below the lowest of the big four, NAB at 6.58%.
ING Direct, the nation’s fifth biggest lending brand, passed on the full rate cut to its borrowers with a standard variable rate of 5.97%.
Another lender, non-bank State Custodians is offering an SVR of 5.82%.
Mutual lender CUA, Australia’s largest customer-owned financial institution, said it would cut its standard variable rate by 20 basis points to 6.05% from October 12.
CUA points out that its SVR has continuously remaining over 50 basis points cheaper than the average standard variable rate offered by the big four over two years.
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Smaller lenders offer borrower satisfaction as major banks withhold part of rate cut

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The Melbourne property market is set for a tentative recovery in the short term, but there are currently buying opportunities for investors, particularly in the west, north and some outer eastern suburbs, according to Clinton McNabb, senior research analyst for Australian Property Monitors (APM).
Delivering a presentation at this weekend’s Melbourne Home Buyer &amp; Property Investor Show, McNabb said investors needed to look for areas displaying the greatest population growth and where incomes are rising.
“There will be a tentative recovery for Melbourne, growth will be subdued for a while,” said McNabb.
But longer term, demand for housing will rise as the city’s population grows to beyond 6 million people over the next 20 years and overtakes Sydney, McNabb said.
“The biggest driver of house prices will be population growth,” said McNabb.
Investors should also look for suburbs, where incomes are growing.
McNabb presented a series of heat maps, with shades of blue, orange and red.
The heat map below shows which suburbs have displayed the greatest house price growth over the past two years.
Suburbs in shades of blue show where property prices have declined by 3% or more over the past two years, green suburbs have exhibited limited growth (up to 3%) orange indicates property prices rising around 10% and red zones show growth in excess of 15%.
<img src="/images/stories/2012/10/heatmelb.jpg">
The map shows much of the growth has been in suburbs around the city, but also good growth in some outlying areas such Narre Warren North and Beaconsfield Upper in the outer east.
In the west, McNabb says suburbs like Altona and Yarraville, where the median house price is around $500,000 – much cheaper than neighbouring suburbs – offer good potential.
Similarly, he picks unfashionable Footscray, West Footscray and Sunshine due to their affordability, closeness to the CBD and good transport connections.
In the north, McNabb says investors should look at well-located suburbs like Brunswick, Coburg and Preston.
They are affordable and also located close to the city with good transport connections.
Currently suburbs that have the highest average discount (the original listing price compared with the sale price) include Canterbury (15% discount), Toorak (12%), Footscray (11%), Brooklyn and St Kilda West.
Taking a wider view of the market, McNabb says the latest census data shows rising numbers of single person and childless couple housing occupants.
This he says indicates an increasing  demand for higher-density living.
“In addition, more families are now willing to live in apartments and they will sacrifice space for location.
“Being close to transportation to the CBD is key. There has been a 47% jump in people using public transport since 2005,” he says.
“Compare suburbs and look at comparable sales – that’s the best way to avoid things like underquoting,” he says.
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Hot property investment opportunities in west, north and outer-east Melbourne suburbs: APM

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Property investors should look to get into the market now rather than try and time their purchases to when the market bottoms out, Margaret Lomas told attendees at the weekend’s Melbourne Home Buyer &amp; Property Investor show.
Lomas says the property market currently sits at five o’clock on the property clock, meaning it has yet to reach the bottom of the current cycle.
<img src="/images/stories/2012/10/clock-generic.jpg">
“It’s better to buy at five o’clock, because it’s very hard to time your purchase so you buy at six o’clock. And you don’t want to buy at seven o’clock,” says Lomas, founder of property investor advisory business Destiny and a regular pundit on Sky Business.
With flames flickering on a screen behind her, Lomas then launched into her hotspot list, telling the big crowd that they should be looking at regional markets with strong population growth, and where there a big infrastructure projects in place.
“Some regional centre populations are growing faster than the national average. And there is a growing affluence as well in some of these locations,” she says.
In Victoria, Lomas favours regional centres like Shepparton, Ballarat, Bendigo and Morwell.
She says investors should steer clear of apartments in Melbourne because the market is oversupplied. with prices forecast to fall by around 2%.
<img src="/images/stories/2012/10/lomashot.jpg">
Overall the outlook for Victoria is one of subdued growth over the next 18 months.
 
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The outlook is better for NSW due to a housing shortage in many areas and tightening vacancy rates.
She picks Blacktown on the Sydney fringe as one of her NSW hotspots as well as locations in the Hunter Valley including Branxton, Singleton, Cessnock and Muswellbrook.
In Queensland, Lomas says there is a two-speed housing market due to the mining boom, with some regions benefiting and others not.
She says investors should steer clear of Brisbane apartments – she forecasts a 10% drop in prices over the medium term due to an oversupply of new apartments.
Rather, Lomas says investors should look to places like Toowoomba, which benefits from the mining boom, but is not solely dependent on it.
“Pick towns with a mining influence rather mining towns,” is her credo.
The only mining town she picks as an investment hotspot is Gladstone.
“It has 13 separate mining projects including coal and aluminium – so not dependent on one project,” she says.
Her other picks are Rockhampton, which benefits from the Gladstone “influence”, and Mackay.
Lomas says investors should be wary of WA mining hotspots, unless they have an appetite for risk.
“Mining towns are at risk if local government bodies release more land for development.”
Furthermore, she says mining companies are looking to build their own cheap housing for mine workers, rather than be "held to ransom by private landlords".
Lomas says there are no hotspots in Tasmania.
South Australian hotspots include Port Noarlunga, Port Adelaide, Hackam, Huntfield Heights, Christie Downs and Mitchell Park.
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Plenty of regional hotspots to tempt investors as market hovers at five o’clock on property clock: Margaret Lomas

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A clear majority of economists expect the Reserve Bank to reduce the cash rate by a further 25 basis points on Melbourne Cup Day (November 6), according to the latest survey by Bloomberg.
Out of 24 economists polled today, 17 expect the cash rate to fall to 3% in November. This would be the lowest the cash rate has ever been, equal to the rate in 2009 during the GFC.
All the big four banks are in agreement on a rate cut in November.
Interestingly, St George Bank chief economist Besa Deda is tipping the cash rate to remain on hold in November, while Bill Evans, chief economist at parent bank Westpac, expects a rate cut.
Another notable economist not tipping a rate cut in November is HSBC Australia chief economist Paul Bloxham, who had favoured November over October – but not a rate cut in both months.
“The [earlier October] cut reflected concerns about weaker global conditions, particularly slower growth in China,” said Bloxham in his weekly RBA update.
“With activity in China showing some signs of bottoming we think the RBA's easing cycle may be nearing its end.”
Only one brave economist (Michael Knox from RBS Equities) is tipping a rate cut in December on top of a November rate cut, which would take the cash rate to 2.75%.
Ten out of 24 economists tip another rate cut in the first quarter of 2013.
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Majority of economists punt on Melbourne Cup Day RBA cash rate cut: Bloomberg

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Westpac will pass on just 18 basis points to variable mortgage holders following NAB and the Commonwealth Bank announcing earlier today they would pass on 20 basis points.
The reduction, which takes effect on October 15, will cut Westpac's standard variable mortgage rate to 6.71%.
The<a target="_blank" href="/news"> Commonwealth Bank</a> will offer a standard variable rate of 6.6% from October 12 and <a target="_blank" href="/news">NAB</a> a standard variable rate of 6.58% from October 8 – a full week ahead of Westpac.
ANZ will make its decision next Friday and currently offers a standard variable rate of 6.8%.
The reduction in home loan rates will save homeowners $36 a month or $432 a year in total monthlyrepayments on an average mortgage of $300,000.
Since October 2011, Westpac has cut its variable mortgage rates by 1.15%, equating to an annual saving of $2,820 on an average home loan.
Westpac Group executive of retail and business banking Jason Yetton said: “In coming to this decision we have sought to balance the needs of our mortgage customers with those of our millions of savers, particularly retirees who depend on the income from their deposit accounts.
“At the same time we continue to offer package discounts on our headline mortgage rate which will seethe majority of our home loan customers pay no more than 6.01%. And for those borrowers who are looking for security and peace of mind over a longer period we are pleased to make further reductions to our fixed rate homes loans that are now at new three year lows and are very competitively priced.”
Yetton said Westpac’s decision was based on a range of factors including the price of deposits, which remain at very competitive and attractive rates for savers but when combined with the cost of wholesale funding continue to put pressure on bank finances.
"While we have seen some easing in the wholesale market in recent months, our overall costs including the price of deposits remain historically very high,” he added.
Westpac also cut its fixed rate offers for its one year, two year, three year, four year and five year rates.
The new rates include the 0.2% discount offered under the Premium Advantage Package.
They are effective from 10 October 2012.
<ul>
<li>One year packaged fixed rate – down 0.20% to 5.49%</li>
<li>Two year packaged fixed rate – down 0.15% to 5.39%</li>
<li>Three year packaged fixed rate – down 0.15% to 5.39%</li>
<li>Four year packaged fixed rate - down 0.20% to 5.69%</li>
<li>Five year packaged fixed rate - down 0.20% to 5.69%</li>
</ul>
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Westpac passes on just 18 basis points to bring standard variable rate to 6.71% and cuts fixed rates

South East Queensland’s apartment market is entering a new phase defined by rising prices, constrained affordability, and mounting pressure on the construction pipeline, according to RPM Group’s latest SEQ Apartments &amp; Townhomes Market Report.

The May 2026 report highlights a widening divide between what buyers can afford and what developers can viably deliver, with detached house prices continuing to push more buyers toward apartments across Brisbane, the Gold Coast, and the Sunshine Coast.

RPM says Brisbane’s median house price has reached around $1.5 million, accelerating the shift toward higher-density housing as buyers are increasingly priced out of the detached market.

[smartcode_project:default project_id=135094 project_image_fid=356540]

Median unit prices rose across all three major SEQ markets in the March quarter. Brisbane City recorded the strongest annual growth, with median unit prices climbing 21 per cent to $862,000, while the Gold Coast reached the highest overall median at $950,000, up 17 per cent year-on-year. The Sunshine Coast followed at $870,000, representing annual growth of nine per cent.

RPM noted the affordability gap between houses and units remains significant, with detached homes commanding premiums of 67 per cent in Brisbane and 68 per cent on the Gold Coast relative to apartments.

The report suggests this price disparity is increasingly consolidating buyer demand within the apartment market, particularly among downsizers and owner-occupiers.

“Demand is real. Supply is moving. But they’re operating on different timelines and the gap between what’s being built and what buyers can afford is the defining tension in this market right now,” RPM Queensland and NSW Managing Directors Peter Neale and Clinton Trezise said in the report.

[smartcode_project:default project_id=150787 project_image_fid=366230]

While approvals and commencements are strengthening, RPM argues the delivery pipeline remains constrained by construction costs, labour shortages, and extended build timelines.

Apartment approvals across Queensland increased 86 per cent over the year to February 2026, reaching 12,682 approvals, the highest level recorded since 2016. Brisbane overtook the Gold Coast as the state’s most active apartment approval market, with nearly 5,000 apartments approved over the past 12 months.

Unit commencements also strengthened considerably, rising 48 per cent year-on-year to 5,453 commencements in the December 2025 quarter, the highest level since 2018.

However, RPM’s research found apartment delivery timeframes have expanded sharply compared to the previous cycle. Projects are now averaging around 30 months from approval to completion, compared to roughly 20 months a decade ago.

[smartcode_project:default project_id=143932 project_image_fid=367515]

The number of units under construction has climbed to approximately 31,530 dwellings, nearing the previous 2016 peak, though projects are remaining in the pipeline for considerably longer.

Construction costs continue to weigh heavily on feasibility. RPM found the average apartment construction cost in Greater Brisbane reached $630,000 per dwelling in 2025, exceeding both Sydney and Melbourne. Coastal Queensland markets, including the Gold Coast and Sunshine Coast, were even higher at an average of $817,418 per apartment due to the prevalence of larger premium product.

The report also points to increasing pressure from Olympic-related infrastructure spending ahead of Brisbane 2032, with labour competition expected to intensify over the next several years.

[smartcode_project:default project_id=150017 project_image_fid=370960]

ANZ Associate Director of Property Daniel Gradwell said the underlying demand drivers across South East Queensland remain strong, supported by interstate migration, downsizers, and population growth.

“The challenge is bringing enough supply to market to meet that demand, and nothing on the horizon makes that straightforward,” Gradwell said.

RPM’s analysis found the affordability challenge is becoming more pronounced in the new apartment market itself, with only three per cent of surveyed new apartments priced below $1 million.

Instead, the market is increasingly concentrated in higher price brackets, with the most common new apartment price band across SEQ sitting between $1.5 million and $1.75 million. Around half of all new apartment stock surveyed is priced below $2 million.

The report suggests developers are not necessarily avoiding lower price points by choice, but because current construction economics make delivering affordable apartments increasingly difficult at scale.

Rental conditions also remain tight across the region. Median rents for one-bedroom apartments rose 12 per cent in Brisbane over the past year to $580 per week, while Gold Coast one-bedroom rents increased nine per cent to $630.

Despite rising rents, RPM noted bond lodgements have generally trended downward over the past five years, indicating more apartments are being absorbed by owner-occupiers rather than retained as investor-held rental stock.

Looking ahead, RPM expects projects targeting the mid-market owner-occupier segment between $1.25 million and $2 million to remain the most viable part of the market, while premium projects in highly constrained coastal or riverfront locations continue to attract demand.

“Construction costs are rewriting the feasibility rulebook across Greater Brisbane, and with little relief in sight, only projects in the right price band, right location, and with presales secured early will make it through,” the report concludes.

Joel Robinson

SEQ apartment demand outpacing affordable supply as construction timelines stretch: RPM

Camberwell Junction has long been the epicentre of amenity in Melbourne’s Boroondara region.

For nearly a century, it has drawn both locals and visitors, anchored by the Camberwell Sunday Market, which first operated in 1929 and quickly became a fixture of the suburb’s identity. Over time, the Junction evolved into one of Melbourne’s most established retail and lifestyle precincts, now comprising more than 400 stores and over 300 commercial businesses.

Despite that depth of amenity, one thing has remained notably limited: the supply of new apartments.

In a suburb defined by its heritage streetscapes and tightly held residential stock, new development opportunities have been scarce, particularly within the core of the Junction itself. That lack of supply has left a gap in the market for larger, design-led apartments suited to downsizers and owner-occupiers wanting to remain in the area.

Boutique developer Above Zero identified that gap when it secured a prime site on Burke Road, in the heart of Camberwell Junction.

[smartcode_project:default project_id=4896 project_image_fid=368543]

The site has a long planning history. Various proposals have been put forward over more than a decade, many of which were knocked back by the City of Boroondara, with initial applications dating back to 2015. Above Zero acquired the site in 2022 and returned with a revised scheme, refining both the building’s height and its ground-level interface to better align with Council expectations.

That process has culminated in approval for Camberwell House.

The Cera Stribley-designed development will deliver 57 residences on a 1,950 sqm site within the Camberwell Activity Centre, placing it directly within one of Melbourne’s most established retail and transport hubs.

It is expected to be one of the only new apartment developments to launch in the Junction in recent years, reinforcing the rarity of new supply in the precinct. Currently, there are just a handful of projects on the market in Camberwell, underscoring the significance of a development of this scale and positioning.

[smartcode_project:default project_id=4896 project_image_fid=368544]

Camberwell House has been conceived with a clear focus on larger-format apartments. The project will offer a mix of two-, three- and four-bedroom residences, alongside a limited number of penthouses, targeting owner-occupiers seeking scale rather than volume-driven product.

The building’s vertical presence will also set it apart.

Positioned on Burke Road, the development is set to become one of the taller buildings in its immediate context, allowing for elevated outlooks across Melbourne’s CBD skyline and toward the Dandenong Ranges. In a precinct characterised by lower-scale built form, that height provides a point of differentiation, particularly for buyers seeking outlook and natural light.

[smartcode_project:default project_id=4896 project_image_fid=368568]

Architecture has been led by Cera Stribley, with interiors by GOLDEN and landscape design by Florian Wild. The design approach centres on material consistency and restraint, with residences oriented to maximise light, ventilation and connection to outdoor spaces.

Full-height glazing and generous terraces form a key part of that strategy, allowing apartments to extend beyond their internal footprint and engage with the surrounding environment.

Beyond the private residences, a significant component of the project is its amenity offering.

Above Zero has positioned Camberwell House as a “complete living environment”, incorporating a full floor dedicated to resident facilities. At the centre of that is a wellness zone, including a 12.5-metre lap pool, spa, sauna and treatment spaces, alongside a gym and recovery-focused amenities.

This level of amenity is more commonly associated with inner-city developments, rather than established middle-ring suburbs like Camberwell.

[smartcode_project:default project_id=4896 project_image_fid=368588]

Additional shared spaces include a private library lounge, dining and entertaining areas, and an indoor golf simulator. A self-contained guest suite has also been incorporated, allowing residents to accommodate visiting family or friends without impacting their primary living space.

The inclusion of these facilities reflects a broader shift in buyer expectations.

As more downsizers look to transition from larger family homes into apartments, there is increasing demand for developments that offer not just a residence, but a lifestyle. That includes access to wellness, social and entertaining spaces within the building itself, reducing the reliance on external amenity while still maintaining proximity to established precincts.

Camberwell House is positioned to benefit from both.

Its location places it within immediate walking distance of Camberwell Junction’s retail and dining offering, as well as public transport connections, including tram and train services. That combination of internal amenity and external convenience is central to its appeal.

<section data-scroll-anchor="false" data-testid="conversation-turn-150" data-turn="assistant" data-turn-id="request-WEB:55d7c6ac-8e6d-4881-ad49-0ed9bf66d1cc-74" dir="auto">
Jellis Craig Projects Director Stephen Bowtell is handling sales for the project and says Camberwell House offers a rare entry point into one of Melbourne’s most tightly held markets.

“Buyers are recognising that Camberwell House offers something they simply haven’t seen before in Boroondara,”&nbsp;Bowtell&nbsp;says.

“It combines a level of resident amenity and service typically associated with Melbourne’s premium inner-city developments, while being positioned right in the heart of Camberwell Junction.

“The response to the concierge offering has been particularly strong. Buyers appreciate not only the convenience, but also the sense of security and peace of mind that comes from having a dedicated presence in the building every day.

“When you combine that with the wellness facilities, the exceptional arrival experience, and panoramic views across both the CBD skyline and the Dandenong Ranges, it creates a lifestyle proposition that is genuinely unique within the local market.”
</section>

[smartcode_project_cta:default project_id=4896]

Above Zero launches Camberwell House in undersupplied Camberwell Junction precinct

<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, <a href="https://www.apartments.com.au/new-apartments/castile-47-skyring-terrace-newstead-qld-4006">Castile</a>, 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]

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;

Larry Schlesinger

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