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A private investor has paid $800,000 at auction for a two-storey shopfront and residence on Puckle Street, the popular retail strip in Moonee Ponds in Melbourne’s north-west.
It also features a courtyard and two rear car spaces.
<img src="/images/stories/2012/09/margaretstshop.jpg">
<a href="https://www.realcommercial.com.au/property-retail-vic-moonee+ponds-500392031" target="_blank">The property </a>(pictured above) was marketed by Campbell Dickinson of Rendina Real Estate Kensington, who tells Property Observer he received “good interest” from around 20 parties over the four weeks leading into the auction.
The ground floor is leased to Yim Yam Thai Laos Restaurant on a three-year lease with a three-year renewal option started this year in January.
Yim Yam Thai Laos is paying $24,500 per annum plus GST and outgoings.
The three-bedroom apartment above is currently leased on a month to month, equating to $16,000 per annum.
Combined, the two spaces provide monthly income of around $3,375 per month, a gross yield of around 5% when fully leased.
Dickinson says the investor might look to develop the property down the track.
According to research by Knight Frank, <a target="_blank" href="https://www.propertyobserver.com.au/retail/melbourne-shopping-strip-bridge-road-richmond-has-highest-vacancy-rate-in-five-years/2012091656593">Puckle Street has one of the lowest vacancy rates of the suburban retail strips</a>, with vacancies rising just 0.5% to 4.2% over the past two years.
Realcommercial.com.au lists five shops available for rent on Puckle Street.
For more commercial property sales, visit our dedicated Commercial hammer prices section on the website
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Commercial hammer prices: Puckle Street restaurant plus upstairs apartment sells for $800,000 on 5% yield

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Hair salon Clash City Cuts has taken up space in the heritage-listed Capitol Arcade, which runs through what was once the auditorium of the Capitol Theatre, between Swanston and Little Collins streets in the Melbourne CBD.
The arcade is next door to the iconic, neo-gothic Manchester Unity Building and across the road from the Melbourne Town Hall.
Clash City Cuts (pictured below) has agreed to lease shop five at 109-117 Swanston Street for four years with renewal options at a rate of $1,600 per square metre net.
<img src="/images/stories/2012/09/clashcity.jpg">
The lease was negotiated by Andrew Hewett of Fitzroys on behalf of a private investor who has interests in other CBD properties.
Hewett says there was keen interest in the space from a range of tenants given its central location in the heart of Melbourne and the strong tenancy mix surrounding the property.
Immediate neighbours include Phillipa’s Bakery, Alannah Hill, 7 Angels and Jeans West.
The arcade is named after the Capitol Theatre, which was designed by Walter Burley Griffin and his wife Marion Mahony Griffin.
Burley Griffin trained with the famed American architect, Frank Lloyd Wright.
The theatre opened in 1924 and converted to a single-level cinema and shopping arcade in 1965.
The theatre was acquired by RMIT University in 1999.
For more commercial leasing deals visit our dedicated leasing page.
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Leasing ladder: Hair salon takes up historic arcade space in Melbourne CBD at $1,600 per square metre

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Outside of Perth and Brisbane, the nascent office market recovery has plateaued in the first half of 2012 due to investor uncertainty, says ANZ in its September Property Outlook report.
The chart below shows how Perth average rents have climbed since 2010 from around $500 per square metre to around $700 per square metre, with other capital city markets unable to match this growth.
In the case of Sydney, Melbourne, Canberra and Adelaide, rental growth has stalled.
Click to enlarge
<a title="Click to enlarge" href="/images/stories/2012/09/anzsept28.gif" rel="shadowbox"><img src="/images/stories/2012/09/anzsept28thumb.gif"></a>
"The weakening in Sydney,Melbourne and Adelaide has been particularly sharp as labour markets in those states have lost momentum," notes ANZ.
"Looking ahead, cost pressures will continue to weigh on the financial services and public sectors and will restrain the demand for office space, particularly in the south eastern states. Moreover, ongoing economic and financial market uncertainty will further delay any yield compression."
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Outside of Perth, office rents have stalled; Commercial Property chart of the week

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The housing industry has welcomed the RBA cutting the cash rate by 25 basis points today to 3.25% and expects a follow-up rate cut when the bank next meets on Melbourne Cup Day on November 6.
The rate cut came despite capital city <a target="_blank" href="https://www.propertyobserver.com.au/residential/surprise-14-rise-in-capital-city-dwelling-values-highest-in-30-months-but-moderate-growth-ahead-rp-data-rismark/2012100256920">dwelling prices surging 1.4% in September</a>, according to RP Data-Rismark.
Praise for the rate cut came from the Housing Industry Association (HIA), which represents the struggling residential building sector.
The HIA says the rate cut was appropriate “given current economic conditions, which are highlighted by the parlous state of the residential construction industry”.
HIA chief economist Dr Harley Dale called on lenders to “deliver today's interest rate cut in full, without delay, to provide the appropriate relief to businesses and mortgage holders".
"There is no funding cost wall to justifiably hide behind," says Dale, who adds that there is also a need for a follow-up interest rate cut on Melbourne Cup Day, with “widespread expectation for that outcome”.
The HIA prepared the following chart, which show that while margins banks earn on mortgage lending fell in August (the grey bars), they still remain at historical highs.
Click to enlarge
<a href="/images/stories/2012/09/hiaoct2.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/09/hiaoct2thumb.gif"></a>
Real Estate Institute of Australia (REIA) president Pamela Bennett said today’s decision “is a great relief for home owners and potential buyers”.
“Home owners always like to see interest rates go down.  This cut means the average loan repayment is reduced from $2,155 to $2,105 or by $50 per month.”
Mark Courtney, Colliers International research director, says the collective 75-basis-point drop in the cash rate over May and June has gone some way to improving confidence in the housing sector, but the latest rate cut was necessary in order for the real estate industry to see a sustained improvement in conditions.
“This year’s rate cuts have contributed to a significant improvement in housing affordability and allowed households additional capacity to repair their balance sheets, and today’s 25 basis point cut will only help the situation further,” he says.
“These drops have gone some way to improving confidence amongst consumers, who have been exercising caution particularly due to the financial situation in the eurozone.”
But he said more cuts were needed this year because from a "property perspective" one rate cut was not enough.
 
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Economists were more circumspect in their responses.
CommSec chief economist Craig James says the RBA “acted to insulate the Australian economy from weakness abroad”.
But he says that while rate cuts have in the past acted to stimulate activity, "the impact on the economy today is more ambiguous".
“While rate cuts help borrowers, they hurt savers," says James.
“The number of savers has soared and currently deposits are creeping up to be almost neck and neck with loans. Deposits represent around 90% of loans outstanding, well up from 75% just five years ago.
“Further only a third of households benefit from a rate cut with a third of families renting while a third of families fully own their homes. The non-home buying public tend to be savers rather than borrowers. So a rate cut will hurt all the families living off interest income.”
James says confidence remains the pertinent question.
“If people don’t have the confidence to spend and instead continue to save and pay off home loans at a faster rate, then the rate cut will have no impact on activity.
“It is also important to note that it is the level of interest rates that does the hard lifting work in the economy, not the change in rates. Interest rates are already below longer-term averages. And judging by what has happened in previous months, home borrowers are more likely to respond to a rate cut by paying off their home loan at a faster rate, rather than going on a spending spree.”
Rismark economist and Australian Financial Review columnist Christopher Joye tweeted that home variable home loan rates would “fall to around 5.4% and 5.5% (near GFC lows); 3yr fixed rates as low as 5.3%”.
“Near GFC lows in home loan rates will galvanize recovery in house prices - great news for home owners,” he added in a follow-up tweet.
Australian Property Monitors senior economist Dr Andrew Wilson called the rate cut good news for home buyers and housing affordability but questioned in a tweet that it “seemed a speculative move as economic drivers have improved recently”.
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Housing industry welcomes RBA cash rate cut and expects another on Melbourne Cup Day 

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Capital city property markets have recorded their strongest gain in more than 2 ½ years, rising 1.4% over September led by a 2.4% gain in Adelaide, with strong support from Perth, Sydney and Melbourne.
The result was the largest month-on-month rise recorded since March 2010 and means that capital city dwelling values are now 0.8% higher over the first nine months of 2012, with a median dwelling price of $450,500.
Five of the eight capital cities are now in the black for the first nine months of the year, led by Darwin, up 6.3%, with Sydney dwelling prices up 3.4%.  Melbourne dwelling prices are down 1.2% for the year.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/09/rpoct21.gif"><img src="/images/stories/2012/09/rpoct21thumb.gif"></a>
Source: <a href="https://www.myrp.com.au/" target="_blank">RP Data</a>
The September gain followed capital city property markets recording no gain in traditionally quiet August, following a 1% gain in June and 0.6% rise in July.
RP Data research director Tim Lawless told Property Observer he expected a continued recovery in prices over the next few months, but not at the magnitude of the September gain.
“It’s a pretty big number (1.4%) and it was quite a surprise – but we are tipping more moderate growth in capital values with the market remaining in the black.”
Lawless highlighted the fact that there had now been four straight months where the property market has avoided a decline.
 
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He said the property market was also showing more appeal for investors, with rents rising faster than capital values, while renters were also starting to "do the sums" and considering buying.
Lawless says Perth has the best property market fundamentals going forward, with rents growing at double-digit rates and a “burgeoning level of confidence, despite tremors in the resources sector”.
Lawless said the Sydney market also had strong fundamentals, while Melbourne “continues to surprise”, with prices up 4% since bottoming out in May.
“Melbourne is looking like a pretty reasonable market.”
Lawless labelled the Adelaide results also something of a surprise given the recent announcement regarding BHP’s decision not to go ahead with the Olympic Dam mining expansion project suggesting a more resilient than expected housing market.
He said the improving market conditions could mostly be tied back to the low interest rates currently in place.
“It’s no coincidence that housing market conditions bottomed out at the end of May, after the Reserve Bank cut the official cash rate by 50 basis points.
“A further cut of 25 basis points in June and the anticipation of further rate cuts in the pipeline appear to have instilled renewed confidence in the housing market which has driven the growth in home values,” Lawless said.
However, he said he expected the RBA to leave rates on hold at its October meeting, though it would be a close call.
“This renewed strength in the housing market is likely to be one of the key deliberation points when the Reserve Bank meets today.
“The Bank will want to keep a lid on housing prices from a financial stability perspective, while at the same time ensure interest rates are low enough considering the decline in commodity prices and Australia’s terms of trade.”
Lawless said other factors supportive of a housing market recovery are auction clearance rates tracking about 10 percentage points higher than what they were last year, capital city listings now lower than at the same time last year and vendors discounting their asking prices by a lesser amount.
 
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Adelaide recorded a gain in both its detached house and unit prices over September.
House prices rose 2.4% to a median of $385,000 while unit prices were up 1.9% to a median of $315,000.
The second best performer over September was Perth, with capital values up 1.6% to a median of $450,000.
This gain was mainly the result of Perth units, which was the est performing market in September across both houses and units was the Perth unit, with median prices up 4% to a median of $380,000.
Perth house prices were up by a more subdued 1.4% to a median of $467,000.
Sydney dwelling prices gained 1.5% in September to a median of $522,000 with Melbourne just behind with a 1.4% gain to a median of $470,000.
Sydney gained ground on the back of 1.9% rise in house prices ($587,000) with unit prices treading water, down 0.1% to a median of $470,000.
It was a similar story in Melbourne, with stronger gains in house prices (up 1.5% to median of $507,750) and smaller rise in unit prices (up 0.6%) to median of $417,500).
Brisbane managed dwelling price capital growth of 1.1% over September ($427,500).
The smaller capital city markets of Darwin (-2%), Canberra (-0.6%) and Hobart (-0.2%) all lost ground in September.
Darwin remains an investor hotspot returning the highest rental yields of all the capital cities for both houses (gross rental yield of 6%) units (6%).
Melbourne is delivering the weakest returns to investors with houses yielding a 3.6% and units, 4.3%.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/09/rpoct22.gif"><img src="/images/stories/2012/09/rpoct22thumb.gif"></a>
Source: <a target="_blank" href="https://www.myrp.com.au/">RP Data</a>
On a quarterly basis, capital city dwelling values recorded a 2.0% capital gain, which is the highest quarterly result since the three-month period ending May 2010.
Rismark International CEO Ben Skilbeck noted that the recovery in the housing market “is broad based and not simply attributable to a seasonal spring uptick”.
“Over the four months from end May to end September actual Australian capital city house values have increased by 3.4%.
“If we adjust this to take into account seasonality, the increase is still a strong 2.9% which represents an annualised pace of 9% per annum.”
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‘Surprise’ 1.4% rise in capital city dwelling values highest in 30 months but moderate growth ahead: RP Data-Rismark

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Woolworths is continuing with its preparations to offload up to 70 shopping centres its own worth around $1.5 billion.
The group is believed to be favouring setting up an independent listed property fund (A-REIT) that would hold the assets, according to a report in the Australian Financial Review.
Woolworths is being advised by Citi with plans to raise more than $400 million for the fund, which would also allow Woolworths to make strategic property acquisitions into the fund in the future.
The proposal has the backing of analysts and fund managers.
Commonwealth Bank analyst Andrew McLennan said that the “rising amount of property on Woolworths’ balance sheet was constraining cashflows that could otherwise go to capital management”.
McLennan added that he expected Woolworths to come up with structures that ensure the spin-off went smoothly.
Brett McNeill, investment manager at Antares Equities, said if the fund had good governance practices and was structured well, there was no reason why it couldn’t trade well.
According to the AFR, there is excitement among some fund managers about the idea of a Woolworths property fund, which would be seen as one of the “first high-quality offers for some years after some smaller industrial and office plays”.
Woolworths has already sold off some of its shopping centres in recent times.
In July last year, eight neighbourhood and sub-regional retail shopping centres were sold to  a 50/50 joint venture entity owned by Charter Hall Retail REIT and Telstra Super for $266 million.
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Woolworths considering spinning off property holdings into A-REIT

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Residential property developer Peet expects “conditions” in the residential property market to remain “volatile and challenging" into 2013 with business and consumer confidence remaining low despite the series of rate cuts in the previous financial year.
However, Peet managing director and CEO Brendan Gore did note in the company’s annual report that “positive signs” have emerged in the Western Australian property market in the first months of the year.
And he said there are also plans to accelerate development of Peet's Vantage master-planned residential community in Gladstone, the mining hotspot 550 kilometres north of Brisbane.
However, the overall tone of the annual report was one of a challenging year ahead for Peet and others operating in the residential development sector.
“The 2012 financial year delivered some of the most challenging conditions experienced in almost 20 years and there is little expectation that markets will improve significantly in the 2013 financial year,” said Gore.
“The series of interest rate cuts in 2012 has not had the desired effect to date and consumer and business confidence remains low."
He did add that the long-term fundamentals of the Australian property market – including population growth, an under-supply of housing and a tight rental market – “remain conducive to an improving market.
“However, the catalyst for household confidence, which will underpin improved demand in the residential property market activity, is yet to be found.”
Gore says Peet would be well prepared to "respond quickly and effectively to any improvement in consumer sentiment and the residential market".
“However, given the ongoing uncertainty in Australia, and until the timing and strength of the expected recovery is confirmed, the directors are unable to provide guidance on 2013 operating earnings with any degree of certainty."
Peet recorded a net operating profit after tax of $20.3 million for the year to June 30 and statutory net profit after tax for the full year of $5.4 million, representing a decrease of 76% compared to the previous corresponding period.
Shareholders did not receive dividend payment.
Peet chairman Tony Lennon said he appreciated this would be disappointing for investors, but said he trusted investors “have confidence in our ongoing dividend payment policy and the validity of the reasoning behind the decision taken”
Lennon said the year ahead would be a period of consolidation for Peet.
“We are operating in exceptional times where, despite the relative wealth of our own nation, we are heavily impacted by the global economy and consumer and business confidence has been low over a sustained period of time.
“This time last year, it was the crisis befalling some European economies and concern about the United States’ debt ceiling issue. This year, the slowing of the Chinese economy and falling commodity prices are also having significant flow-on effects in Australia and consumer and business sentiment remains cautious.
But he said the company was well positioned with “quality assets in good locations around Australia”.
“We have managed through a number of cycles and will continue to maintain the rigour required during the current market conditions, while positioning the company to capitalise on any upturn in consumer sentiment.”
Peet’s biggest residential project is Flagstone City, 45 minutes south-west of Brisbane in Jimboomba, which has a gross development value of $1.87 billion and is due to begin in 2013. It features 1,500 lots and is proceeding as scheduled.
In total Peet has a lot pipeline of 34,600 worth $6.2 billion.
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No property market recovery in 2013, but some early positive signs in WA: Peet

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The self-appointed "shadow" RBA board favours the Reserve Bank leaving the cash rate on hold today at 3.5% but expects a rate cut in the medium term.
The board is comprised of economists and academics that meet under the banner of the Centre for Applied Macroeconomic Analysis (CAMA) at Australia National University.
Keeping the interest rate unchanged at 3.5% received nearly 60% weight, considerably above the next most popular setting — a decrease to 3.25% — which received a 30% weight.
For the RBA's September decision, keeping the interest rate unchanged at 3.5% received around a 65% weight from the shadow board.
In October, the shadow board saw evidence of weakening inflationary pressures and a risk that the current cash rate should be lower.
"The corresponding figures for September suggested both more upside risk and less downside risk to inflation. With some evidence that inflationary pressures will continue to abate in the coming months, there is greater scope for lower rates in the medium term. Support for a decrease in the cash rate over the next six months was just over 50%.
“Support for a decrease in the cash rate over the next six months was just over 50%," said the shadow board.
Shadow board member Saul Eslake, chief economist at Bank of America Merrill Lynch Australia and formerly chief economist at ANZ for 14 years, says the argument for a rate cut is “getting stronger — given the ongoing slowdown in China, and the impact that’s having on commodity prices — but not, so far, on the Australian dollar”.
“However, it’s not yet clear to me that, overall, the negative effects of persistent Australian dollar strength have started to overwhelm the other factors that have kept the unemployment rate steady in a 5% to 5.25% range and growth close to or even slightly above its trend pace so far this year. I expect rates eventually will need to fall, but I’m not ‘over the line’ for October.”


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Another shadow board member, Jeffrey Sheen, professor and head of economics at Macquarie University, says that Australian foreign interest rate differentials are “probably appropriate to this stage of the mining boom, delivering expected future depreciation”
“The expected weakening in the terms of trade — down a little from a 50-year high — will assist this depreciation in due course.”
He also pointed out that there have been no significant changes to global macro risks in the last month.
Shadow board member Paul Bloxham, chief economist at HSBC Bank Australia, says he favours holding rates steady this month, although he says he would be willing to consider cutting rates by 25 basis points.
“Conditions locally and in China look fairly similar to last month. Western growth is still slowing, but it is not clear how much further downward pressure that will put on growth in Asia. Commodity markets have generally stabilised. The local unemployment rate remains low.”
“While there are some signs that employment is easing, timely indicators do not decisively point to weaker conditions. Monetary policy is starting to lift the housing market. Inflation was low in the second quarter, but there is no new price data this month to confirm that this has continued to be the case in the third quarter.
“Given limited urgency to cut rates further, and signs that lower rates are providing some support for the economy, I would prefer to wait for the third quarter CPI for confirmation that inflation remains low before cutting rates further if needed,” said Bloxham
The full shadow board is:
Shaun Vahey, Professor, RSE, ANU. (non-voting chair)
Paul Bloxham, Chief Economist (Australia &amp; New Zealand), HSBC Bank Australia Ltd
Mark Crosby, Dean of the Global MBA Program, Acting Dean of the Global BBA Program, and Professor of Economics, S P Jain Center of Management in Singapore
Mardi Dungey, Professor, University of Tasmania, CFAP University of Cambridge, CAMA
Saul Eslake, Chief Economist, Bank of America Merrill Lynch Australia
Bob Gregory, Professor Emeritus, RSE, ANU, Professorial Fellow, Centre for Strategic Economic Studies, Victoria University, Adjunct Professor, School of Economics &amp; Finance, Queensland University of Technology
Warwick McKibbin, Professor, RSE, ANU, CAMA
James Morley, Professor, University of New South Wales, CAMA
Jeffrey Sheen, Professor &amp; Head, Department of Economics, Macquarie University,Editor, The Economic Record, CAMA
Mark Thirlwell, Director, International Economy Program, Lowy Institute for International Policy
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RBA should keep cash rate on hold at 3.5%: Shadow board

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Were he alive today, bush poet Henry Lawson might have penned a few lines about soaring property values in the central NSW country town of Grenfell, the place of his birth, which ranks 22nd on RP Data’s list of top 100 capital growth suburbs and regions.
Grenfell, about 370 kilometres west of Sydney in Weddin Shire, is also the cheapest entry on the top 100, with median property values sitting at just under $150,000 – up from $125,000 in June 2011, a gain of 20%.
There have been very few established houses sold in Grenfell over the past year, according to RP Data records, with most sales being rural blocks and farm land.
Properties that have sold in the 12 months to June include a single-story three-bedroom house on Wood Street with a swimming pool, which sold for $170,000 in October last year.
There are currently just 34 property listings for Grenfell on realestate.com.au – most of them vacant land or farm land.
Currently listings<a target="_blank" href="https://www.realestate.com.au/property-lifestyle-nsw-grenfell-7318050"> include this three-bedroom wood cottage</a> (pictured below) on 5.5 hectares, asking $199,000 through Marie Jamieson of Jamieson Real Estate – Young.
<img src="/images/stories/2012/09/starst.jpg">
The property has been listed for sale for nearly four years. It was originally listed at an asking price of $235,000.
For those with bigger budgets, and a desire for something historic and grand, <a target="_blank" href="https://www.realestate.com.au/property-mixed+farming-nsw-grenfell-7442013">currently listed for sale is "Pinnacle Homestead" on Pinnacle Road</a> (pictured below), a fully renovated Victorian homestead on 517 hectares, which has an asking price of $1.457 million and dates back to 1882. It is being sold by Ainslie Toole of Landmark NSW, who describes it as one of just a few historic homesteads "offered at such a high standard".
<img src="/images/stories/2012/09/pinnacle.jpg">
 
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Grenfell is one of only two suburbs on the list with a median price under $200,000 – the other being Stawell in the Wimmera region of Victoria, 237 kilometres north-west of Melbourne, which ranked 29th out of 100 with house prices up 18.4% over the year to June, from $149,000 to $176,000.
The third cheapest location is Cobar, a remote outback town in central western NSW towns with ties to copper mining and other mining projects, where median values rose 12.9% over the year to June, rising from $184,000 to $208,000.
According the 2011 census, Grenfell has a population of just under 3,000 people ,with 1,400 dwellings, more than 90% detached housing.
There is a high degree of home ownership, with more than half of dwellings (51.7%) owned outright and a quarter (23.2%) owned with a mortgage. Fewer than a quarter (21.5%) of Grenfell’s residents rent.
Mortgage stress is low in Grenfell, with only 4.8% of households spending more than 30% of their household income on mortgage payment, less than half the state average of 10.5%.
Median weekly rent is $119, meaning an indicative rent of just over 4% based on the current median price.
Amenities in Grenfell include a plethora of churches, a number of schools (including Henry Lawson High School), a pharmacy, Grenfell Hospital, local newspaper the Grenfell Record and an art gallery on main street.
Lawson was born among the goldfields of Grenfell in 1867 “just metres from mineshafts”, according to grenfell.org.au, and penned a number of poems about the town, including Said Grenfell to My Spirit, written in 191, which includes the lines:
“Though you sing of dear old Mudgee and the home on Pipeclay Flat, You were born on Grenfell goldfield – and you can’t get over that."
His died in 1922, with his place of birth marked in 1924 by an obelisk, which now stands under a large sugar gum tree planted by his daughter Berth Jago.
A Henry Lawson festival is held every year in Grenfell.
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Cheapest of RP Data’s 100 growth suburbs, Grenfell rising property values would have inspired native son Henry Lawson

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Bank of Queensland has passed on only 20 out of the 25 basis point rate cut announced by the RBA today, an indication that other banks won't pass on the full rate cut.
The 20-basis-point rate cut brings BOQ's standard variable rate home loan to 6.71% p.a. effective from Friday, October 19, 2012.
"Given the continuing pressure on the cost of funding a 20 bps reduction is the best balance between our customers and shareholders,” CEO Stuart Grimshaw says.



“We are also conscious of pressure facing all of our customers, including those with home loans and those with deposits, and believe the 20 bps cut also strikes a fair balance between the two.”
Ken Raiss, director at national accounting, property and wealth advisory group Chan &amp; Naylor, anticipated the issue of whether or not the banks would pass on the full rate cut pre-announcement.
"The rate cut is to stimulate demand and confidence, something which is unlikely to happen unless it is passed on," he says.
“Bank rates need to reflect the true economics of the economy,” says Raiss.
“Banks must align their rates official cash rates and increase availability to loans.”
Meanwhile, Suncorp and NAB have been the standout lenders in terms of funding new mortgages over the past three months to August, according to analysis of the latest APRA banking figures by Nomura.
Queensland-based bank Suncorp has grown its mortgage book by 11.1% between July and August to $32 billion (more than double the <a target="_blank" href="/news">current annualised mortgage growth rate of 4.8%</a>), while NAB has achieved impressive growth of 8.3% off a much larger book, which has grown to $186 billion.
ANZ has pulled back on mortgage lending recording growth of 5.4% over the August quarter – compared with annualised growth of 8.6%.
The Commonwealth Bank and Westpac remain the laggards in terms of new mortgage lending, with growth of just 4.2% each over the August quarter – below system growth of 4.8%.
The Commonwealth Bank’s mortgage book stands at $260 billion.
APRA counts Commonwealth Bank subsidiary Bankwest as a separate entity, with a $48 billion loan book, giving the Commonwealth Bank group a $308 billion combined mortgage book.
Westpac (including its subsidiary banks) has a loan book worth $293 billion.
According to Nomura analyst Victor German, the August APRA figures show that ANZ’s mortgage growth rate continues to converge with the average of the major banks.
However, he says NAB is continuing to gain market share, growing at one-and-a-half times the majors’ growth rate over the past three months.
“We believe this is positive for NAB’s longer-term profitability as long as funding is available.
“Both the Commonwealth Bank and Westpac continue to lose market share in mortgages as they defend their back book profitability,” he says.
NAB’s ability to grow its share of mortgage lending has been funded, in part, by its expanding deposits base.
The total value of deposits held by NAB are up by an impressive 16.5% over the past three months to $235 billion, ahead of the Commonwealth Bank (quarterly growth of 15.6%), Westpac (11.2%) and ANZ (4.7%).
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Banks reluctant to pass on full 25-basis-point rate cut

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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