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The Commonwealth Bank has followed NAB by announcing that it will reduce interest rates on its standard variable home loan account by 0.2 percentage points from October 12.  
The new standard variable rate is 6.6% per annum.  
The CBA said it continued to balance the needs of "1.8 million home loan borrowers with those of its 11 million depositors and its shareholders, who include 800,000 Australians who own its shares directly, and millions more Australians who own shares through pension funds".  
"One significant factor impacting this balancing of needs has been the increase in the cost of deposits noted in the Reserve Bank of Australia’s most recent Financial Stability Review.
"This increase, benefitting depositors, has resulted from increased competition for deposits, as Australian banks reduce their reliance on wholesale funding," says the CBA.
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Commonwealth Bank cuts standard variable rate by 20 basis points to 6.6%

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Following nearly three days of silence NAB has reduced its standard variable home loan rate by 20 basis points to 6.58% p.a.
NAB will also reduce its rate on standard variable business rate lending products by 0.2 percentage points p.a.
Both new rates are effective from Monday, October 8.
The banks says it has offered the lowest SVR of the major banks for the past 39 months, saving borrowers $1,800 in interest compared with those who have a standard variable loan with another major bank.
<img src="/images/stories/2012/09/banksoct5.gif">
But borrowers will be upset that the bank has not passed on the full 25 basis points on offer following Tuesday’s cash rate cut.
NAB has maintained its promise of having the lowest standard variable rate of the major banks throughout 2012.
Soon after the NAB announcement, the Commonwealth Bank said it would also pass on 20 basis points to variable mortgage holders, reducing its SVR to 6.6% from October 12.
Were ANZ to pass on 23 basis points or more at its independent interest rates meeting next Friday it would surpass NAB's 6.58% offering.
Westpac cut its SVR by 18 basis points to 6.71% effective from October 15.
NAB group executive for personal banking, Lisa Gray, said decisions on interest rates were not taken lightly and NAB had sought to strike the right balance between offering the lowest SVR of the major banks and its obligations to ensure Australian banks are safe and secure. "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,” says Gray. "The increased competition for deposits is pushing up costs, making it more expensive to fund our lending. “The decision we have taken today means we can continue to offer competitive deposit rates while delivering on our pledge to have the lowest SVR of the major banks for 2012.”
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NAB passes on 20 basis points and trims standard variable rate to 6.58%

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Emerging buying interest is again expected from Sydney first-home buyers this weekend for off-the-plan projects, due to the $15,000 government grant available for new home purchases, which kicked off October 1.
However, because many developers were forced to offer incentives in the three-month "vacuum" between its NSW state budget announcement and its October 1 introduction, the initial response has not been as dramatic as might have been anticipated.
The grant is available for first-home buyers buying or building a new home up to a value of $650,000.
In addition, first-home buyers pay no stamp duty on new homes valued up to $550,000, a maximum saving of $20,240.
One project, the Montrose development in North Sydney (pictured below), which features a rooftop cinema, sold 25 apartments off the plan last weekend, six of them to first-home buyers in a pre-launch VIP sale.
The official launch of Montrose will be this weekend.
<img src="/images/stories/2012/09/montrose1.jpg">
Curtis Field, director of project marketing at Colliers International, which is marketing Montrose, tells Property Observer a rooftop cinema is fairly unique for an apartment project in Sydney, but they are more common Melbourne.
He says the cinema was included in the design to appeal to younger couples and singles who are expected to show interest in Montrose and which will “add some vibrancy” to the project.
<img src="/images/stories/2012/09/montros4.jpg">
“It’s set up like a home cinema. Residents or tenants book it through the body corporate. It could be a great place to watch the grand final.”
<img src="/images/stories/2012/09/montrose3.jpg">
Field says inquiries levels have been “really good”, with 25% to 30% of them coming from first-home buyers.
 
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More than half of the 104 apartments in the 10-storey project have been deliberately priced under $650,000.
Studios measuring 40 to 48 square metres are priced from $435,000, with weekly rental potential of about $450 to $500 – a gross yield of about 5.4%.
Prices rise to $920,000 for bigger apartments with better views.
Montrose has been designed by Mayoh Architects and is being developed by Sydney-based Legacy Property led by Princeton University graduate Matthew Hyder and Stewart Nettleton, former NSW state manager for retirement living at Stockland.
Recently completed Legacy projects include the boutique, high-end The Avenue apartment complex in Collaroy on Sydney’s Northern Beaches and the 88 apartment Kantarra project in Lindfield. Legacy has also completed a number of projects in the US.
However, according to David Chittenden, director of residential in Sydney for Colliers International, because developers were forced to offer incentives in the three-month vacuum between the $15,000 grant’s announcement and its commencement (only a $7,000 handout was available up to October 1), the impact has not been as dramatic.
“Every developer tried to prop-up the market in this interim period,” Chittendon tells Property Observer.
“This has watered down the official grants because buyers have been conditioned to expect incentives and discounts.”
In the past, Chittendon says it was a sign of a “desperation 101” if you advertised incentives for a project but it has since become “need 101” because developers needed some first-home buyer interest.
He says the real benefits have gone to second and third home-buyers and some investors, who have been able to access $15,000 incentives and discounts.
“It’s difficult to discriminate just because someone is not a first-home buyer.”
However Chittendon has noticed a pick-up from first-home buyers with more visits to display suites of other projects being marketed by Colliers International aimed at this market segment.
These include La Vista in Kogarah on the Princess Highway, with views across Botany Bay, featuring one, two and three bedroom apartments, with two-bedders priced from $519,000.
Colliers is also marketing the Carleton Estate Apartments in Summer Hill in the inner west, featuring 78 apartments across four buildings, being developed by Nascon with one-bedders starting from $519,000.
Other Sydney developers have noted an increase in first-home buyer inquiries.
 
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A spokesperson for developer Becton tells Property Observer there has been “a significant uplift in first-home buyer enquiries and reservations in the last several weekends" at its Divercity Waterloo project, where one-bedroom apartments are priced under $500,000. Divercity amenties include an outdoor pizzeria, a health club and an outdoor yoga studio.
“Last weekend we took five reservations of which four were first-home buyers. We currently have 10 contracts with first-home buyers awaiting exchange," says the Becton spokesperson.
Mark Mendel, CEO of FindInvestmentProperty.com.au, which promotes new residential projects, says there has been a “surge” in enquiries from first-home buyers since October 1.
“This has increased even more in the first few days of October as FHB look to take advantage before the rush of buyers expected before Christmas,”he says.
“Where we may have had four out of 10 enquires being first home buyers earlier in the year, over the last week this has increased to eight out of 10 buyers.
"September was our biggest month ever because of the additional enquires from first home buyers and it looks like October we'll beat it again," says Mendel.
Adam Sparkes, Frasers Property Australia’s group sales manager, which is building the $2 billion Central Park mixed-use precinct on Broadway in Chippendale in partnership with Sekisui House Australia, says they have fielded a “large volume of inquiry from first-home buyers seeking to take advantage of the new government grant and stamp duties savings on offer for new developments".
“Our agents at both Central Park and Putney Hill have forwarded several new sales advices across varying apartment types with prices ranging from $480,000 through to $650,000.
“We expect the level of inquiry from first time buyers to remain steady over the coming 15 months as the full grant and concessions remain in place.
At The Mark, the third residential tower launched at Central Park, one bedroom suites start from $475,000. Another residential tower in the development, Park Lane, offers one bedroom suites from $495,000.
A spokesperson for Sekisui House, which is developing The Waterfront at Wentworth Point and The Hermitage in south west Sydney, says they are expecting a "significant increase from first-home buyer enquiries".
"Whilst no product is available below $550,000 for maximum stamp duty concessions, we are seeing enquiry for  sub-$650,000 product.
Sekisui House has made some reviews of pricing to ensure a maximum number of units fall below $650,000.
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Sydney first-home buyer interest picking up – but not silver screen-worthy – in wake of government grant

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There was no big rush from vendors to list their properties for sale in the first month of the spring buying and selling season, according to online residential listings data compiled by SQM Research.
Total online residential listings remained steady during the month of September 2012 at 373,374, down 2.6% year-on-year.
However, the September figures suggest more active property markets in Perth, Sydney, Queensland and Darwin, where year-on-year listings are well down, while Melbourne, Adelaide and Hobart have added to the stock of properties available for purchase over the same time frame.
Perth recorded a 3% month-on-month drop in listings from 18,053 in August to 17,517 in September, followed by Sydney, where listings fell by 2.9% to 30,408.
Perth listings are down 14.6% year-on-year, while Sydney listings are down 13.1% year-on-year.
Darwin listings fell 6.6% to 1,198 in September and are down 25.9% since September 2011 – the largest yearly decrease of all capital cities, though off a low listings base.
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SQM research director Louis Christopher said it was as strong result for those cities where listings declined and added that it was “unusual” for cities to record falls in listings during the opening month of spring.
“Either vendors have been withdrawing their properties at a faster rate than new listings entering into the market, or stock is being sold at a quicker rate. Or a combination of both,” said Christopher.
At the other end of the spectrum, Adelaide experienced the largest monthly increase, rising by 2.1% during September to come to a total of 17,091.
Melbourne recorded a net gain of 370 listings over September, a rise of 0.7% to take total online listings to 51,564, with listings up 3.2% over the past 12 months.
Brisbane recorded a small 0.6% gain in online listings to 28,837, but listings are down 8% year-on-year.
Hobart listings were down a modest 0.4% over September to 4,371 but the Tasmanian capital has by far the inactive or stagnant property market with online listings up 21.5% since September 2011.
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No big spring listings rush as stock on market hold steady in September: SQM

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A third senior financial services executive has come out to warn that lower interest rates could inflate a housing bubble in Australia following the RBA cash rate cut on Tuesday.
Phil Chronican, chief executive of ANZ Australia, told Fairfax radio station 3AW that one had to worry “when there is a lot of cheap money around that results in asset price inflation”.
"That's been true over the past 40 or 50 years."
"I do think it's an issue that the authorities have to keep in mind over the next year or two," he added.
His comments come a day after <a href="https://www.propertyobserver.com.au/news/low-interest-rates-could-lead-to-property-bubble-future-fund/2012100356967">Barry Brakey, head of property at the The Future Fund</a>, warned property investors of the inflation caused by a lot of capital waiting to be invested directly into the Australian property market.
The Future Fund is an independently managed investment fund established in 2006 into which the Australian government deposits its budget surplus. It holds $4.95 billion in property around the world.
Patrick Winsbury, senior vice-president of Moody’s, has also expressed concerns about the effect lower interest rates may have on Australian property prices.
Winsbury said there was a key side-effect risk that lower rates could inflate a housing bubble.
"It's one of the scenarios we consider when we analyse the credit-worthiness of the banks," he said.
The cash rate is now at three-year low and just 25 basis points off record lows of 3%.
House prices rose 1.4% in September, according to RP Data-Rismark – the biggest monthly gain since March 2010, with RP Data’s national research director Tim Lawless saying he expected further capital value gains over the next few months, though not at the magnitude of the September gain.
However, not everyone agrees that lower interest rates might create a housing bubble.
AMP Capital Investors chief economist Shane Olive said yesterday that the cash rate would need to fall to 2.5% to deliver a variable mortgage rate around 6%, which would be low enough to be “stimulatory” and improve consumer and business confidence.
He says the current average variable rate of about 6.75% is only the neutral setting.
Oliver expects banks to pass on about 20 out of the 25 basis points to borrowers.
None of the major banks have made an announcement yet about interest rates.
ANZ will make its independent interest rate announcement in a week’s time (October 12).
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ANZ boss adds to growing list warning of Australian housing bubble risk

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The number of new Gold Coast apartments available to purchase has halved in the space of two years, according to the August quarter Midwood Report.
There are now just 420 high-rise apartments up for sale (representing two year’s of supply at current low rates of sale), compared with 839 new apartments available for purchase in August 2010.
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“There should no longer be the perception that Gold Coast high-rise apartments are oversupplied,” said Midwood Report author Bill Morris.
Midwood records 54 new apartment sales over the August quarter of 2012, double the 26 sales recorded in the May quarter and just above the 52 sold in the February quarter.
The long-term average for the Gold Coast is 300 unconditional sales per quarter.
The August quarter figures excluded Juniper Group's Soul tower, featuring 288 units, of which 92 are still available for sale and Brookfield Multiplex’s Orchid tower in its Hilton project, featuring 224 apartments, of which 25 remain available for purchase. Construction of both these <a href="/news">Surfers Paradise</a> towers is now complete.
Midwood notes that the two developers had refused to report sales “because they are embarrassingly low”.
The top-selling project was Phoenix Apartments on Lakefront Crescent at <a href="/news">Varsity Lakes</a>, which managed 16 off-the-plan sales.
This is a $60 million project featuring 120 apartments being developed by Trilink Developments and De Va Project Marketing.
The project features four lake precinct buildings, three eight-storey buildings and one four-storey building, with stages one and two currently being marketed.
One-bedroom apartments with a car park are being marketed from $339,000, and three-bedroom apartments on the eighth floor with two car parks from $550,000.
Sales over the quarter included a 106-square-metre, three-bedroom apartment that sold for $580,000.
 
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Conditions for investors due not appear to be improving.
According to the Midwood Report, rents on the Gold Coast have hardly changed in the past two years.
The median weekly rent for a one-bedroom flat on the Gold Coast is $290 per week, unchanged from two years ago; rentals for two-bedroom flats have increased from $340 to $350 over the past two years, and median asking rent for three-bedroom houses has increased marginally from $400 to $405 in the past 12 months. Four-bedroom houses rent at $450 per week, compared with $440 two years ago.
Furthermore, the report notes that there has been significant changes in population trends on the Gold Coast and Sunshine Coast, “both of which have experienced a slowing down in population growth rate over the five years ending 2011”.
The Gold Coast population was growing at 6% per annum in 1991, 4.5% in 1996, 3.4% in 2001 and 2.7% in 2006
“On the other hand, Townsville has experienced a higher growth rate over the same period, whilst Cairns has seen steady growth.”
Morris notes that these are “significant trends for property investors”.
“They beg the question “have the Gold Coast and Sunshine Coast lost their growth fundamentals permanently”?
In its October Gold Coast update, LandMark White records 709 new units available on the Gold Coast in high-rise developments currently being marketed, with 527 of these apartments in the "big three" – Soul, Hilton and Niecon's two-tower Oracle project on Broadbeach, which is in the hands of receivers Korda Mentha.
Some 93 of the remaining 182 units are located within SPC Residential's three-tower Southport Central project, where receivers have also been appointed. Tower two is almost sold out, with just 11 out of 262 apartments remaining, according to Midwood.
LandMark White notes there are no new units available priced under $500,000 "and less than 10 units available priced under $750,000 if you then take Southport Central out of the equation". "We also note that certain developers have retained units and placed them into letting pools, thereby reducing the amount of available units even further."
One new project about to commence construction is Kirra’s Pure apartments (33 units over 12 storeys), being developerd by the Pikos Group of Companies, while another project, Jewel in Surfers Paradise, being developed by Chinese developer The Ridong Group is progressing through the approval process
"This comes as good news to the construction industry which has experienced a slump in new project proposals and construction since the completion of the ‘Big Three’," says LandMark White.
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Gold Coast new apartment stock halves in two years: Midwood 

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The Sydney unit market is heading into an upswing and is ahead of the detached housing market on the property clock, due to increased competition and tighter inner-city vacancy rates, according to PRDnationwide NSW research analyst Oded Reuveni-Etzioni.
Reuveni-Etzioni places Sydney units at 6.30 on the property clock, indicating the market is starting to rebound, with Sydney houses at 6 o’clock, indicating that the market has bottomed out.
<img src="/images/stories/2012/09/clock-generic.jpg">
<ul>
<li>At 12 o’clock the market is at its peak (demand exceeds supply)</li>
<li>At 3 o’clock the downswing has set in (an evenly supplied market)</li>
<li>By 6 o’clock it has bottomed out (an oversupplied market).</li>
<li>At 9 o’clock the market is rebounding (supply tightening)</li>
</ul>
He says that the new $15,000 first-home buyers' grant, which kicked in on October 1 and is only available to those buying or building a new home, will drive increased activity in what is already a competitive unit market in the inner city suburbs.
“Off-the-plan enquiries have slowed over the past three months but buoyancy is expected to return in October, with first home buyers taking advantage of the new first-home owner grant (new homes).
“First-home buyers are finding it increasingly difficult to compete with overseas investors for affordable product in the CBD fringe and lower north shore.
“Instead they opt for buildings located in south Sydney, St George and western Sydney.
“Second-home buyers and downsizers are using equity built in their previous property to buy units in middle and high price brackets.”
According to Reuveni-Etzioni, investors have been targeting the lower end of the market, purchasing studio and one-bedroom units, with re-sales often occurring close to the date of completion.
“The level of units advertised for sale is similar to this time last year, as new units compete with older stock for buyers.
“Overall vacancy remains tight, although anecdotal evidence points to stabilising rent prices in several inner-city locations.
“Vacancy in some middle ring suburbs has increased, with tenants moving west or away from the metropolitan region in search for lower rents,” he says.
August vacancy rate figures compiled by the Real Estate Institute of NSW  <a target="_blank" href="https://www.propertyobserver.com.au/landlords/sydney-rental-vacancy-rate-rises-to-27-in-august-with-middle-and-outer-suburbs-favouring-renters/2012091956681">show a 1.8% vacancy rate for inner Sydney </a>(where units predominate), with higher vacancy rates in the middle suburbs (3%) and outer suburbs (3.1%).
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New first-home owner grant to add momentum to Sydney unit market upswing: PRDnationwide

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While the major banks keep as quiet as church mice, ING Direct has passed on the full 25 basis point rate cut to its borrowers.
The rate cut will take effect on October 12 and will reduce the interest rate on its most popular variable rate offering, Mortgage Simplifier to 5.97%.
ING Direct is the fifth largest home lender in the country, with $38 billion in mortgages.
Also today, The Greater Building Society has announced that it will reduce its already low home loan rates by between 0.15  and 0.25 percentage points.
A full rate cut will apply to the Greater’s Ultimate Home Loan (packaged loan) rate which will fall to 5.74% (comparison rate 6.09%).
The Greater’s standard variable home loan and basic variable home loan rates will fall by 0.15 percentage points to 6.25% p.a (comparison rate of 6.31% p.a.) and 5.89% p.a. (comparison rate of 5.95% p.a.) respectively.
The decrease in rates is effective from Monday for new loans and for existing customers from October 15.
Customers on a 30-year standard variable or basic home loan of $300,000 will see their monthly repayments reduce by $30.
CEO Don Magin says The Greater wanted to pass on as much of the cut as possible as quickly as possible to customers.
He says intense competition and high loan funding costs meant that The Greater was not able to pass on the full rate cut this time.
The Greater’s standard and basic variable home loan rates will remain lower than those of the major banks, even lower when comparison rates are used.
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ING Direct passes on full rate cut while Greater Building Society passes on 15 bps to standard variable customers

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The RBA is likely to cut the cash rate again on Melbourne Cup Day (November 6) with another rate cut in the March quarter, according Shane Oliver, chief economist at AMP Capital.
Oliver expects the cash rate to fall to 2.5% over the next six months to deliver a variable mortgage rate of around 6%, a setting which will encourage growth and improving consumer and business confidence.
According to Oliver the current average standard variable rate of around 6.75% is the new “new neutral” setting and at a level that is only “just starting to become stimulatory”.
He expects the banks to pass on around 20 out of the 25 basis points on offer following Tuesday’s cash rate cut to 3.25%, which would take the average standard variable rate to 6.6%.
“In the last two easing cycles the mortgage rate had to fall to around 6.05% in 2002 and to 5.8% in 2009.
“Given the fall in the likely neutral level for mortgage rates and the current headwinds coming in the form of the strong Australian dollar and fiscal tightening, mortgage rates will at least need to fall to these lows.
“Given the ongoing issues with bank funding, to achieve a circa 6% mortgage rate the cash rate will need to fall to around 2.5%” he says.
This is because banks have not passed on past rate cuts in full due to “funding issues”.
“Basically banks have been seeking to reduce their reliance on non-deposit funding which has proved unreliable since the GFC and to do this they have had to offer higher deposit rates relative to the cash rate than would normally be the case.
“This has resulted in higher lending rates relative to the cash rate than was the case pre GFC.”
Oliver says the RBA is “coming around to this view”.
“As such we expect another 0.25% cash rate cut next month on Melbourne Cup day, followed by a cut to 2.5% in the March quarter next year,” Oliver says.
Oliver says key sectors likely to benefit from lower rates are retailers, building materials and home builders.
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RBA “coming round” to need for November rate cut and 2.5% cash rate: Shane Oliver

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The number of dwellings approved rose 6.4% to 12,046 in August, following a fall of 21.2% in July, according to the latest ABS figures.
Most of the growth was the result of a strong pick-up in the more volatile apartment approvals sector, which rose 23.0% to 4,596 dwellings approved in August.
However, the detached housing sector remained weak with approvals for the construction of private sector houses falling 0.5% in August to 7,314 houses.
In August 2011, there were 8,275 private sector house approvals.
Private sector house approvals fell in NSW (-10.4%) and Queensland (-3.6%) but rose in Western Australia (11%), South Australia (1.4%) and Victoria (0.8%).
Dwelling approvals (combined for both houses and units) increased in Victoria (30.2%), Western Australia (16.1%) and Queensland (1.8%) but decreased in NSW (-18.3%), South Australia (-1%) and Tasmania (-0.9%) in seasonally adjusted terms.
The value of total building approved rose 9.4%, in seasonally adjusted terms, after falling for two months.
The value of residential building rose 9.2% while non-residential building rose 9.8%.
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Dwelling approvals rise 6.4% in August but detached housing remains weak: ABS

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.

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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>

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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;

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<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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