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The proportion of new houses and apartments being purchased by foreign buyers has doubled in the space of two years.
Foreign buyers now account for between 12% and 13% of all new residential property purchases, according to the views of around 300 property participants surveyed as part of the <a href="https://www.propertyobserver.com.au/residential/property-prices-to-rise-just-24-over-next-two-years-as-sentiment-weakens-nab-survey/2013071163168?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news" target="_blank">June quarter NAB residential property index.</a>
This is up from foreign buyers accounting for around 5% to 6% of buying activity in much of 2011, previous NAB surveys have found.
<img src="/images/stories/2013/larry_uploads/new_developments_graph.jpg" width="470" height="309" alt="new_developments_graph">
Queensland (20%) and Victoria (14.1%) remain the choice locations for foreign investors followed by NSW (above 10%).
<img src="/images/stories/2013/larry_uploads/new_properties2.jpg" width="470" height="307" alt="new_properties2">
While not stated in the survey, many of the offshore buyers would be purchasing apartments off-the plan in new developments in Melbourne, Brisbane, the Gold Coast and Sydney.
“Asian investors (mainly Chinese) have been driving this trend according to the latest data from the Foreign Investment Review Board, says NAB chief economist Alan Oster.
“A number of factors are driving Chinese investment into Australian property, including initiatives to curb real estate speculation in China, diversification for Chinese property investors and immigration potential.”
The latest quarterly survey found that resident owner occupiers remain the biggest players in the new property market, but their share of total demand has slipped to 36% in the June quarter.
The share of first home buyer activity in the market was broadly unchanged at just over 20%.
In contrast, demand for new property from Australian resident investors climbed to 27% in the June quarter, with investment demand especially strong in Victoria (34%) and Queensland (26%).
“We suspect that the relative low yields offered by fixed interest and continuing equity market volatility may be helping to boost investment demand,” says Oster.
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Foreign buyers of new residential property have doubled in two years: NAB survey

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While mortgage exit fees have been banned on variable home loans for more than two years, hefty break costs may still apply if you exit a fixed-rate home loan before the end of the agreed term of the loan.
This is something borrowers need to keep in mind, particurlarly if they think they may sell their home before the end of their fixed-rate term.
Selling your home and exiting a fixed-rate mortgage early will not protect you from break costs and lenders will calculate an “early repayment adjustment” to recover their funding costs.
Depending on what has happened to interest rates since the loan was taken out, the size of the loan and the length of time remaining in the fixed-rate term, break costs can range from a few hundred dollars to many thousands of dollars.
Financial products data provider Canstar estimates that the break costs on a $250,000 three-year fixed rate loan that still has two-and-a-half years to run would be around $10,300.
At the same time enticements to take out longer fixed-rate home loans are greater with lenders cutting interest rates on three and five year fixed rate home loans.
These include ME Bank, which last month cut its five-year fixed rate to 5.49%. <a target="_blank" href="/news">In May Citibank</a> cut its five-year fixed rate to 5.35%.
Five-year fixed-rate home loans account for around one in five fixed-rate home loans taken out by borrowers with three-year fixed-rates the most popular (two-thirds of all fixed-rate home loans taken out in Australia), <a target="_blank" href="https://www.propertyobserver.com.au/ews/monday-feb-25-feature-the-fix-is-on-for-bank-mortgage-rates-should-you-take-the-deal/2013022159504/Page-1">according to finder.com.au.</a>
While the cash rate is tipped to fall next month to 2.5%, if you take a view that rates will rise over the next five years, a fixed rate of just over 5% may sound tempting.
But be aware that break cost can run into the thousands of dollars if you decide to sell your home within the fixed rate term.
Here are four other fixed-rate traps to avoid:
<ul>
<li>Not being able to pay off your home loan sooner if your financial situation improves</li>
</ul>
While fixed-rate home loans provide certainty around future mortgage repayments and help with budgeting, if your financial situation improves, the terms of your loan may restrict you from making extra repayments or additional costs may apply. In essence, the interest rate is not the only factor to consider when taking out a fixed-rate home loan. In addition higher monthly and annual fees and costs may apply.
<ul>
<li>Not splitting your home loan</li>
</ul>
Borrowers that take out their entire home loan on a fixed-rate will lose out on any interest rate cuts. However, if they split their home loan between fixed and variable, they hedge their bets, meaning some upside if rates fall and some protection if rates rise. Many lenders will allow borrowers to choose how much of their home loan they wish to fix and how much they wish to borrow on a variable rate.
<ul>
<li>The fixed-rate rollover trap</li>
</ul>
According to Mortgage Choice, many borrowers would not be aware that at the end of a fixed rate the loan rolls over into a standard variable rate, which is usually 0.7% higher than the cheaper basic rate loan and could result in your mortgage repayments rising. Usually borrowers can negotiate a better deal with their lender, but this requires that you be vigilant as to when your fixed-term ends and have maintained a high credit rating.
<ul>
<li>Missing out on attractive offerings during your loan term</li>
</ul>
Taking out a fixed-rate home loan at what seems like an attractive rate may seem like a good idea, but if attractive variable or other fixed-rate mortgage offerings come to market, you may not be able to take advantage of them because you are locked in. The key is to be certain about the loan product and length of the fixed-rate term.
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Don't fix if you are thinking of selling your home and 4 other fixed-rate traps to avoid

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Receivers from McGrathNicol have been appointed to the $326 million LM First Mortgage Income Fund, one of the funds that formed part of collapsed Gold Coast-based fund manager and property developer, LM Investment Management (LMIM).
At the same time trustee of another fund, the $400 million LM Managed Performance Fund, are demanding that group founder Peter Drake pay back more than $17 million in loans, the Australian Financial Review reports.
It follows LMIM administrators John Park and Ginette Muller from FTI Consulting revealing in April that the <a target="_blank" href="https://www.propertyobserver.com.au/trends/administrator-investigates-%2417-million-loan-to-lm-investment-management-founder/2013040360152">business had lent Drake $17 million.</a>
LMIM, founded by Drake in 1997, was placed in administration on March 19 leaving investors facing exposures worth more than $740 million in total.
McGrath Nicol were appointed receivers to the LM First Mortgage Income Fun by investment bank Deutsche Bank, with the AFR calling it a “pre-emptive action” ahead of July 15 court battle over control over the fund.
Deutsche Bank has provided a line of credit facility worth $25 million to the fund.
The court hearing is to determine whether FTI Consulting remains as responsible entity or fund management group Trilogy (which controls other LM funds) be appointed as the replacement responsible entity.
Last month FTI Consulting said it would seek to wind up the fund, where debenture holders have around $288 million invested.
Investor funds were lent on as registered first mortgages over commercial, residential, industrial, retail and vacant land – most of which is now in default.
Prior to its collapse, LM Investment management secured the sale of 28 loans leaving a balance of 27 loans totalling $481 million.
A January 2013 update reveals that the historical book value of the fund is now $326 million.
A June 2012 report revealed provisions for impairments of $146 million in the fund leaving a net balance of $334 million.
Of the $480 million lent out, $216 million was secured against assets under construction with the loan to be repaid through “cash flows of the project”.
Four of the loans account for 10% of the fund‘s exposure each and total
Management fees over 2012 were $2.47 million and were $9.1 million in 2011, the annual report shows.
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LMIM founder Peter Drake under pressure to repay $17 million loan as receivers appointed to $326 million mortgage fund 

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House prices are forecast to rise just 1.4% in the next year and 2.4% in the next two years, according to the expectations of around 300 property market participants surveyed as part of the June quarter NAB Residential Property Survey.
The strongest expectations are for Western Australia (3.3% over next two years) followed by South Australia/NT (2.6%), Victoria (2.5%) and NSW (2.4%).
Queensland is forecast to be the weakest mainland state with just 1.7% house price growth over the next two years.
<img height="273" width="470" src="/images/stories/2013/larry_uploads/nab_house_price_expectations.jpg" alt="nab_house_price_expectations">
Source: NAB
Weaker expectations about house price growth come despite improved affordability and lower interest rates, but amidst weaker overall sentiment about the property market.
The quarterly survey of 300 people (with a high proportion of estate agents, property owners and developers) recorded a 20 point drop in the overall NAB Residential Property Index from 35 to 15, following a rise of 27 points in the first quarter of the year.
It follows the July Westpac-Melbourne Institute consumer sentiment index, released yesterday, which also recorded a<a target="_blank" href="https://www.propertyobserver.com.au/trends/home-buyer-sentiment-falls-sharply-in-july-westpac-index/2013071063161"> sharp decline in home buying sentiment.</a>
In line with a stronger outlook on house prices, sentiment is highest in WA with a reading of 42, though this fell 29 points over the quarter.
Sentiment is weakest in South Australia/NT (-9 points) and Queensland (4 points).
“Longer-term confidence has also been undermined by the softening economy and the downside risks being posed by the economy’s structural adjustment,” says NAB chief economist Alan Oster.
“NAB’s own view of Australian house prices (based on its modelling) is slightly more optimistic than the average survey forecast.
“NAB sees capital city house prices rising by 3.1% in the year through to June 2014 and by 2.5% in the year through to June 2015,” he says.
<img height="156" width="470" src="/images/stories/2013/larry_uploads/NAB_forecasts_of_house_prices.jpg" alt="NAB_forecasts_of_house_prices">
“House price growth will however vary with Perth (5.1%), Sydney (4.1%) and Brisbane (3%) leading the way in 2014.
“Capital gains will be slowest in Melbourne (1.5%) and Adelaide (1%) reflecting excess supply in these locations and subdued state economic conditions.
“State variance will persist into 2015 with slower growth forecast in Perth (3.1%) as resource activity moderates, unemployment rises as population growth eases.
“Sydney (3.6%) will out-perform the national average underpinned by supply shortages and improved affordability.
“In Brisbane, house prices are expected to rise by 3.4%.
“In Melbourne (1.6%) and Adelaide (1.1%), price growth will continue to be constrained by excess supply.”
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Property prices to rise just 2.4% over next two years as sentiment weakens: NAB survey

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More Sydney CBD office landlords should be considering sub-dividing vacant floor space with the added incentive of a higher return, a study by Savills Research suggests.
The property group found high levels of activity at the smaller end of the market found with almost half of the lease deals that have occurred in the Sydney CBD office market in the past 24 months having been sub-1,000 square metres.
Of the 221 leasing deals brokered in the last 24 months 100 (or 45.2%) have been for space between 500 and 1,000 square metres and a further 67 deals (or 30.3%) have been for space between 1,000 and 2,000 square metres.
Savills only included leasing deals greater than 500 square metres in its survey.
Strong demand for smaller office spaces comes as many prime Sydney CBD office floors sit vacant.
Savills found that almost 25% of 279 floors that were available as at the end of June 2013 have been on the market for 12 months or longer
“There are a number of prime full floors currently available that have been on the market for more than two years,” says Simon Hemphill, divisional director of research NSW at Savills.
Savills notes that there is also the added incentive that a smaller suite, based on the economies of scale, will attract a higher premium than that of a larger floor plate.
“Subdividing floors present benefits to both landlords and tenants alike.
"Landlords see a reduction in their vacancy periods as these tenants have the ability to move much sooner than tenants occupying greater than 1,000 square metres. It also allows growing tenants to occupy better grade buildings and take advantage of the quality services on offer,” says Josh Pails, associate director of office leasing at Savills.
Likely tenants of office space below 1,000 square metres include the property and business services sector - the most active industry in office leasing, accounting for 39% of all leases signed in the last two years - and the IT &amp; communications industries
Savills Research found the majority of lease deals signed in the last two years sub-1,000 square metres had occurred in the ‘core’ precinct, followed by the ‘western’ precinct of the Sydney CBD.
‘The Core precinct continues to be the most desirable location in Sydney CBD but the migration of tenants towards Western precinct that started a few years ago has heralded a decline in leasing activity in the Midtown precinct.” says Hemphill.
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Subdivision a possible solution for Sydney CBD landlords with vacant office space

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Expectations of a rate cut will have many borrowers reviewing their current home loan while first-home buyers will be sourcing the best deals.
Yesterday, <a href="/news">NAB revised its interest rate forecasts</a>, tipping the RBA to cut the cash rate to 2.5% on August 6.
The bank had previously forecast a November rate cut, but brought this forward three months following its end of June monthly business survey showing conditions slipping to a reading of minus 8 in June - well below the long-term average of five and the lowest level since May 2009.
Variable rates can be sourced from as low as 4.69% from non-bank lender Smart Finance with the Greater Building Society is offering a one-year fixed rate of 4.54%.
These are the lowest advertised variable and fixed mortgage rates based on listings on mortgage comparison websites <a href="https://www.ratecity.com.au/" target="_blank">ratecity.com.au</a>, <a href="https://mozo.com.au/" target="_blank">Mozo.com.au</a>,  <a href="https://www.infochoice.com.au/" target="_blank">infochoice.com.au</a> and <a href="https://www.finder.com.au/" target="_blank">finder.com.au </a>as of July 11:
Where the headline rate is the same, the lender with the lowest comparison rate gets preference.
Lowest variable rate offerings:
<table border="1" cellspacing="0" cellpadding="0" width="470"><tbody>
<tr>
<td valign="top" width="127">
Provider
</td>
<td valign="top" width="129">
Loan name
</td>
<td valign="top" width="98">
Rate
</td>
<td valign="top" width="116">
Comparison rate*
</td>
</tr>
<tr>
<td valign="top" width="127">
Smart finance
</td>
<td valign="top" width="129">
Horizon Loan
</td>
<td valign="top" width="98">
4.69%
</td>
<td valign="top" width="116">
5.02%
</td>
</tr>
<tr>
<td valign="top" width="127">
State Custodians
</td>
<td valign="top" width="129">
Peak Performance Offset
</td>
<td valign="top" width="98">
4.74%
</td>
<td valign="top" width="116">
5.11%
</td>
</tr>
<tr>
<td valign="top" width="127">
Loans.com.au
</td>
<td valign="top" width="129">
Blackboard Special – purchases only
</td>
<td valign="top" width="98">
4.75%
</td>
<td valign="top" width="116">
4.77%
</td>
</tr>
</tbody></table>
Lowest one-year fixed-rate offerings
<table border="1" cellspacing="0" cellpadding="0" width="470"><tbody>
<tr>
<td valign="top" width="137">
Provider
</td>
<td valign="top" width="123">
Loan name
</td>
<td valign="top" width="95">
Rate
</td>
<td valign="top" width="114">
Comparison rate*
</td>
</tr>
<tr>
<td valign="top" width="137">
Greater Building Society
</td>
<td valign="top" width="123">
Ultimate Home Loan Package
</td>
<td valign="top" width="95">
4.54%
</td>
<td valign="top" width="114">
5.49%
</td>
</tr>
<tr>
<td valign="top" width="137">
Newcastle Permanent
</td>
<td valign="top" width="123">
Fixed Rate
</td>
<td valign="top" width="95">
4.59%
</td>
<td valign="top" width="114">
5.71%
</td>
</tr>
<tr>
<td valign="top" width="137">
iMortgage.com.au
</td>
<td valign="top" width="123">
Fusion 75
</td>
<td valign="top" width="95">
4.74%
</td>
<td valign="top" width="114">
5.07%
</td>
</tr>
</tbody></table>
Lowest three-year fixed-rate offerings
<table border="1" cellspacing="0" cellpadding="0" width="470"><tbody>
<tr>
<td valign="top" width="133">
Provider
</td>
<td valign="top" width="133">
Loan name
</td>
<td valign="top" width="97">
Rate
</td>
<td valign="top" width="108">
Comparison rate*
</td>
</tr>
<tr>
<td valign="top" width="133">
HomeloanHQ
</td>
<td valign="top" width="133">
Rate Lock Home Loan
</td>
<td valign="top" width="97">
4.69%
</td>
<td valign="top" width="108">
5.19%
</td>
</tr>
<tr>
<td valign="top" width="133">
iMortgage.com.au
</td>
<td valign="top" width="133">
iMortgage Fusion ProPack 75
</td>
<td valign="top" width="97">
4.69%
</td>
<td valign="top" width="108">
5.23%
</td>
</tr>
<tr>
<td valign="top" width="133">
UBank
</td>
<td valign="top" width="133">
UHomeLoan for refinancing
</td>
<td valign="top" width="97">
4.73%
</td>
<td valign="top" width="108">
4.97%
</td>
</tr>
</tbody></table>
*A comparison rate includes both the interest rate and the fees and charges relating to a loan, combined into a single percentage figure.
<a target="_blank" href="https://homeloans.propertyobserver.com.au/home-loans/"><img alt="homeloancomparison" height="110" width="399" src="/images/stories/2013/07/homeloancomparison.jpg"></a>
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The cheapest fixed and variable mortgage offerings as August rate cut seems more likely 

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The Westpac 'time to buy a dwelling' sub-index - an indicator of housing investment and buying sentiment - fell sharply in July.
Westpac records an 8.4% drop in this sub-index compared with the overall consumer confidence index, which was flat (down 0.1%) in July and just favouring optimists with a reading of 102.1.
The time to buy a dwelling sub-index fell from 143.3 in June to 131.4 in July.
Despite the drop in July, the time to buy a dwelling index is still at elevated levels overall with optimists significantly outnumbering pessimists.
The graph (below) prepared by ANZ shows that sentiment about the property market has been rising since around the time the RBA starting cutting the cash rate in November 2011.
It also shows that the time to buy a dwelling sub-index tracks demand for new housing with the orange line showing residential building approvals in trend terms.
<img height="290" width="470" src="/images/stories/2013/larry_uploads/WESTPAC_GRAPH_FLICKER_1.jpg" alt="WESTPAC_GRAPH_FLICKER_1">
It shows a great deal of volatility in sentiment about buying property, but that the overall trend is upwards and that the index remains at elevated levels.
Westpac senior economist Matthew Hassan notes that the monthly decline “highlight the air of fragility around consumer sentiment.”
A more pessimistic outlook on family finance among the 1,200 survey respondents may have contributed to weaker property market sentiment in July with the sub-index tracking assessments of ‘family finances versus a year ago’ falling 5.6% to be back near recent lows.
“The downgrade in consumers’ assessments of their finances highlights the fragility of sentiment. It is also somewhat concerning given that these components tend to be better predictors of shifts in actual spending,” says Hassan.
Hassan talks of “powerful cross-currents” underlying the stable overall consumer confidence result.
While family finance sentiment has fallen, the outlook for the economy improved with the sub-index tracking consumers’ expectations for economic conditions over the next five years "surging 9.2% to be well above the average level recorded over the last two years”.
“Pinpointing the exact drivers of these shifts is difficult. The improved view on economic prospects for example may reflect shifting expectations for the US economy that have become more visible with US Fed now contemplating ‘tapering’ its quantitative easing policy stimulus," says Hassan.
“It may also reflect clearer signs of an upturn in parts of the local economy, the housing sector in particular. The sharp fall in the Australian dollar may also have played a part.
“The currency has gone from 104¢ US to 91.3¢ US over the last three months and although this would ordinarily be a negative for sentiment, the decline may be viewed differently given the currency’s high starting point and the difficulties this has presented for ‘trade-exposed’ parts of the economy."
ANZ says the Westpac figures suggest that household consumption growth will remain "relatively subdued, in line with our forecasts, after moderating since mid 2012".
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Home buyer sentiment falls sharply in July: Westpac index

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Sunshine Coast investors looking for opportunities away from the beach should consider railway towns in the hinterland with good amenities and a community feel, say valuers Herron Todd White.
The firm's investment picks are the hinterland towns of Beerwah and Landsbourgh to the south, Palmwoods and Woombye to the centre and Eumundi, Cooroy and Pomona to the north.
“As we move further from the coast, more emphasis is placed on being closer to amenities,” says HTW.
“We also see that there is a growing desire for a sense of community.
Price points are circa $350,000 and generally owner-occupiers are the most active, it says.
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Sunshine Coast hinterland railway towns are good investment picks: HTW

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Real estate group Laing + Simmons has has launched a shared services model to its real estate franchisees as part of new growth plans.
General manager Leanne Pilkington says its back of house service offering to franchisees covers trust accounting, salaries and wages, human resources, employment contracts, assistance with recruitment and training.
The idea is to free up estate agents so they can focus on the job of selling real estate and move their businesses to the next level, while also attracting fresh talent.
“Our growth plan involves not simply increasing the number of Laing+Simmons offices. We want to take that next step with our franchisees so their businesses can grow at an individual level too, and we offer the services and the flexibility for them to achieve this," she says.
The new back office functions follows Laing &amp; Simmons being acquired by Canberra-based Independent Property Group last year, led by chief executive and real estate agent John Runko.
Runko told Property Observer the shared service model offering had just been launched in Sydney with a separate entity looking after all the admin and accounting functions.
The Independent Property Group sits under the umbrella of the Dexar Group, which also owns Peter Blackshaw Real Estate, Clarify Financial Group, Six Fingers Creative Marketing and the Academy of Real Estate.
"Dexar is the corporate entity that sits over all the other businesses. It does not trade and is not a retail or public brand," says Runko.
Runko told BRW the new shared services model has been implemented because real estate agents are great at selling but poor at business administration and managing multi-million dollar trust accounts.
“We want to find someone who is a good agent and let them concentrate on being a good agent,” he said.
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Laing + Simmons to bring trust accounting and other admin tasks in-house as part of shared services offering

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Australia is set to add to the list of quirky architectural icons given unintended nicknames following James Packer’s proposed <a target="_blank" href="https://www.propertyobserver.com.au/trophy-homes/crown-s-%2440-million-barangaroo-serviced-apartment-atop-james-packer-s-hoover-vacuum-cleaner-shaped-highrise-casino-proposal/2013051761450">60-storey Barangaroo South casino development</a> receiving the amber light from the NSW state government this week.
A Property Observer reader has suggested the project (pictured below) looks remarkably similar to an old-fashioned vacuum cleaner, such as the Hoover dial-a-matic. The winning bid for the $1.2 billion development was designed by British-based firm Wilkinson Eyre, who more than likely did not have carpet cleaning in mind when they began drafting ideas.
<img alt="barangaroojuly5one" height="397" width="470" src="/images/stories/2013/07/barangaroojuly5one.jpg">
Another Barangaroo project to attract attention and a possible new nickname is the low rise visually-<a target="_blank" href="https://www.propertyobserver.com.au/developments/bamboo-bowl-restaurant-design-on-barangaroo-south-waterfront-promenade/2013070262888">striking bamboo clad restaurant complex</a> on the waterfront promenade.
Designed by architects Collins and Turner, it resembles stacked bamboo bowls.
The design of the building (pictured below) will be submitted to the Barangaroo Delivery Authority for approval prior to being submitted to the NSW Department of Planning as part of the statutory planning process.
<img alt="bamboojuly5one" height="312" width="470" src="/images/stories/2013/07/bamboojuly5one.jpg">
Australia has long played its part in this worldwide nick-naming phenomenon, with one of its most recognisable landmarks, the Sydney Harbour Bridge, built in 1932, nicknamed the “coat-hanger” given its semi-circular arch design (It was also nicknamed the “Iron Lung” in the 1930s for providing employment to Depression-era workers).
<img src="/images/stories/2013/07/bridgejuly5one.jpg" width="470" height="241" alt="bridgejuly5one">
 
<hr class="system-pagebreak">
Some less well-known nicknames have been applied to other Sydney land marks.
The Sydney Opera house is sometimes called the “nun’s scrum” alluding to the curved white roof shapes resembling the headdresses of religious sisters.
<img src="/images/stories/2013/07/operahousejuly5one.jpg" width="470" height="289" alt="operahousejuly5one">
Just to the right of the Opera house, the modern apartments, retail and entertainment complexes of northern Macquarie Street, much derided by Sydneysiders, have attracted the unflattering moniker of “the toaster” building.
<img alt="toasterjuly5one" height="200" width="470" src="/images/stories/2013/07/toasterjuly5one.jpg">
In Stockholm, there are plans to transform one of its skyscrapers into a “strawscraper” by adding “electricity-generating bristles” or “plastic hairs”. The tower in question is Henning Larsen’s Söder Torn tower on Södermalm in Stockholm. It is designed by architects Belatchew with a wind farm that will top the existing building with a 16-story extension, covering the facade with “hairy-looking plastic straws designed to move with the wind” according to the architectural firm’s own description. To Property Observer’ keen eye, we suggest it resembles a winter fur coat.
<img alt="strawscraperjuly5one" height="331" width="470" src="/images/stories/2013/07/strawscraperjuly5one.jpg">
Image courtesy of archdaily.com
Of course there are many famous existing landmarks around the world that have earned nicknames, some not so flattering.
There is London’s “The Gherkin” building (pictured below) designed by British architect Sir Norman Foster as the headquarters for reinsurance firm Swiss Re with its distinctive spiralling glass-covered design over an oblong cylindrical shape. Officially, it is called 30 St Mary Axe, rising to 41 stories and opened in 2004.
<img alt="gherkinjuly5one" height="508" width="370" src="/images/stories/2013/07/gherkinjuly5one.jpg">
 
<hr class="system-pagebreak">
Perhaps the most famously nicknamed building is the Frank Lloyd Wright-designed Guggenheim Museum in Manhattan, which has been likened to a toilet bowl and also a hangar for flying sauces. It opened in 1959, 10 years after the famous architect’s death.
<img alt="guggenheimjuly5one" height="289" width="470" src="/images/stories/2013/07/guggenheimjuly5one.jpg">
A few buildings with nicknames you may not have heard of include the Clyde auditorium in Glasgow, Scotland, also designed by Sir Norman Foster, which is called ‘the Armadillo’ for obvious reasons:
<img alt="armadillojuly5one" height="237" width="470" src="/images/stories/2013/07/armadillojuly5one.jpg">
And how about the Absolute World residential condominium twin tower complex in Mississauga, Ontario named the "Marilyn Monroe" due to them apparently resembling the Hollywood actress’s famously curvaceous figure. Not sure she'd agree.
<img alt="missijuly5one" height="642" width="370" src="/images/stories/2013/07/missijuly5one.jpg">
And of course, there's London's The Shard, resembling a shard of glass and designed by architect Renzo Piano.
<img alt="shardjuly5one" height="512" width="370" src="/images/stories/2013/07/shardjuly5one.jpg">
 
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A night in the high roller's vacuum cleaner, a meal in the bamboo bowl? Sydney adds to list of nicknamed architectural icons

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;

Joel Robinson

Perth apartment sales hit strongest pace since late 2021 as builder capacity tightens

<a href="https://www.apartments.com.au/developers/sammut-developments">Sammut Group</a> has secured development approval for its latest Brisbane apartment project, marking the Sydney developer’s next step in expanding its Queensland pipeline following the success of its debut Gold Coast development, Coast.

The approved project at <a href="https://www.apartments.com.au/new-apartments/44-glen-road-toowong-qld-4066">44 Glen Road, </a><a href="https://www.apartments.com.au/developments/toowong-qld-4066">Toowong</a> will deliver a 15-storey riverfront apartment building with 42 residences, significantly increasing the scale of the site’s previous approval for a smaller luxury scheme. Designed by Bureau^proberts, the development will comprise a mix of predominantly four-bedroom and two-bedroom apartments positioned to maximise Brisbane River and city views.

Sammut Director Julian Sammut said the group had been actively searching Brisbane for several years before identifying Toowong as the right fit.

“Brisbane was the right step for Sammut,” Sammut said.

“With the success of Coast we thought we should definitely look to do more in Queensland alone. We then pushed up to look at Brisbane. We've been looking for I'd say two to three years actually and it was hard to find the right location.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-23%20at%203.27.14%E2%80%AFPM.png?VersionId=dYAVIL7qdcGA8ojvkslSrLjczXFejSSx" />

Sammut said suburbs including New Farm and Teneriffe were considered before the group ultimately focused on Toowong due to its strong downsizer demographic and limited supply of developable riverfront land.

The site was acquired off-market after what Sammut described as a lengthy negotiation and planning process, with the developer pursuing an uplift to the original approval.

“We are DA approved now which is very exciting,” Sammut said.

“We've had our change approval come through and we've obviously doubled the height, 15 storeys plus rooftop. We've got 42 amazing apartments that are going to be coming to market soon.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-23%20at%203.27.26%E2%80%AFPM.png?VersionId=ohkRkY0dIZlqdfME2EZePsCQavRiBadE" />

Bureau^proberts said the design responds to Toowong’s evolving urban character, balancing contemporary apartment living with the area’s established residential identity.

“A place where traditional Queensland living has taken place for centuries; Toowong is seeing a shift of contemporary influence, commercial and retail hubs mixed with well-considered residential offerings – all the while maintaining its character and charm,” the architect noted in planning documents submitted to Brisbane City Council.

The architecture practice said the project’s form was shaped by its riverfront setting, flood considerations, neighbouring building scales, and view corridors.

“They said the mix of four and two-bedroom apartments capture the ‘fundamental qualities of Queenslander living,’ translated into the context of a contemporary subtropical building.”

The development sits just off Coronation Drive within walking distance of Toowong’s retail precinct and the upgraded Regatta ferry terminal, while also benefiting from proximity to the incoming green bridge connection to West End. Sammut said the accessibility and amenity offering were central to the site’s appeal.

The approval adds to growing residential activity along the Toowong riverfront, joining nearby projects including Consolidated Properties’ Monarch Residences and Spyre Group’s ARC Residences.

Sammut secures approval for debut Brisbane apartment development in Toowong

Developer Lanevick is heading back into Sydney’s apartment market after focusing more heavily on the luxury townhouse and terrace sector in recent years.

Lanevick, founded and directed by Steve Maroun, is expecting to receive approval in the coming months for a new apartment development in Gladesville, with the aim to launch it to the market later this year.

The 51-apartment project, designed by Studio Johnston, will comprise a mix of one-, two-, and three-bedroom apartments positioned toward the Hunters Hill downsizer market.

“Traditionally it’s been difficult for people in that market to downsize because there just hasn’t been the right product available,” Maroun said.

“We’re targeting buyers who might have 30 to 40 per cent of their house value sitting in the bank after downsizing.

“They still want good spacious entertaining areas, they still want quality design, but they also want flexibility and the ability to enjoy life a bit more after working hard for a long time.”

The project sits near Boronia Park and within close proximity to the Parramatta River foreshore, an area Maroun says offers more of a Hunters Hill lifestyle than a traditional apartment precinct.

“From a lifestyle perspective, it’s really more Hunters Hill than Gladesville,” Maroun said. “You’re close to the foreshore, close to parklands, and still connected back into the village precinct.”

From level four and above, apartments will capture water views&nbsp;toward Sydney Harbour. Communal amenity will include rooftop entertaining areas, wellness spaces, and a gym tailored toward owner-occupier buyers.

“We’ve really designed these apartments around that buyer coming from the Hunters Hill LGA and what they’re actually looking for in their next chapter.”

The proposed development has also been designed to respond to the changing character of the broader Gladesville town centre, where a growing number of mixed-use and residential proposals are expected to emerge over the coming years.

“Gladesville presented a rare opportunity to deliver a genuinely design-led residential project within an evolving lifestyle precinct, just moments from the growing Gladesville town centre, and we’ve approached the project with a strong focus on architecture, liveability and long-term community value,” Maroun said.

Maroun said Lanevick saw a first-mover advantage within the precinct as planning controls continue to evolve to accommodate greater housing density.

“We think there’s a real opportunity there that hasn’t really been serviced properly yet,” he said.

“There’s going to be a broader evolution of the whole Gladesville village precinct over time, particularly with more activation and mixed-use outcomes.”

The Venus Street proposal will include a commercial and retail component at ground level designed to contribute to that evolving streetscape activation.

“A big part of the thinking was how do you activate that area properly and create more vibrancy and amenity, which is what Hunters Hill has been looking for,” Maroun said.

Lanevick’s focus since 2020 has largely been on smaller-scale luxury townhouse and terrace developments. The developer recently completed Royale Randwick, also designed by Studio Johnston, where prices reached $3.65 million. The project was featured in the UDIA NSW 2026 Professional Development Prospectus and was also named a finalist for Development of the Year.

&nbsp;

Lanevick to cater for Hunters Hill downsizers with new Gladesville apartment development

Property developer One Living, backed by former Macquarie banker turned investment manager Chris Green’s investment firm, has unveiled plans to bring more institutional capital into housing to help address the national supply crisis.

The New York-based investor has focused his firm, GreenPoint Partners, on addressing the supply shortage hitting middle market housing in Australia.

It is backing the new One Living business to develop more than 1000 units along the eastern seaboard. The new firm is starting with a development on Mona Vale Road, on the border of Mona Vale and Pymble, in Sydney’s Northern Beaches, with around 140 apartments planned. They are eyeing off more sites across the city.

With cost pressures rising in the industry, One Living’s model is to be a vertically integrated developer-builder, so it can respond directly to the housing gap by removing the cost inefficiencies embedded in traditional residential delivery.

“We are building a platform designed to operate at scale and starting in a market where there’s a clear need for quality, attainable housing,” One Living joint managing director Joseph Scuderi said.

“It’s that missing middle – it’s that attainable end of housing… that’s what most Australians invest into and what Australians can actually afford.”

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="798dfa93-4941-4db6-a696-31e9dc18e81c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.31.50%E2%80%AFPM.png?VersionId=mKBqi5C_DmeiXS.AtJkcR8LQIxqCqmFi" />

GreenPoint Partners brings years of experience assembling and scaling real estate operating businesses across major markets. And Green sees a big opportunity in Australia.

“For its size, sophistication and importance to the community, Australia’s living sector has remained largely under-institutionalised, which represents significant opportunity,” Green said. “GreenPoint identified that gap, assembled the right team, and is backing One Living to build a platform that is aligned to market needs.”

Green said being a builder-developer would give the company the capacity and flexibility it required to deliver reasonably-priced homes.

“We want it to be at that attainable level; not super high end luxury but at that attainable level,” he said.

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="74a5344a-4b26-4d4a-ada3-056b1220be77" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.32.15%E2%80%AFPM.png?VersionId=vY8hXHO4reBMdO8ZXMWCNtGZJofUPQ3j" />

&nbsp;

One Living will undertake a component of affordable housing in its schemes, which it will own and operate, and it could also run build-to-rent on some sites.

Green praised local policy settings.

“The NSW government is being very supportive, strategic and pragmatic in terms of how do we generate more supply of housing,” he said. “We think it’s actually positive for development and the bit that’s been lacking at that attainable level is that it’s lots of relatively small private developers, whereas we want to create an institutional platform.”

One Living is also&nbsp;looking at high-density projects and could take on more institutional funding in the future.

“The way we will be able to achieve economies of scale is through size,” Green added.

One Living enters Sydney's new apartment market with Northern Beaches site acquisition

It's been several years since there's been an opportunity to buy a brand new townhome in Melbourne's coastal suburb of Mordialloc. Even apartment developments in recent times have been few and far between in the area.

Local developer LDS Property identified the gap in new housing, securing a site on White Street, directly opposite&nbsp;Woodlands Golf Club Mordialloc. They've recently launched&nbsp;<a href="https://www.apartments.com.au/new-townhouses/wm-residences-mordialloc-102-white-street-mordialloc-vic-3195">WM Residences</a>, just 13 townhouses which they have already started building.

Projects by Buxton Director Heath Thompson, who is selling WM Residences, says the townhouses x that perfect middle ground be

"Mordialloc residents have had limited options to downsize within the suburb, often forcing them to look elsewhere despite long-standing ties to the area," Thompson says.

"With very little comparable new supply coming to market, projects like WM Residences are well placed, particularly as buyers look to capitalise on current conditions amid constrained supply."

[smartcode_project:default project_id=134646 project_image_fid=6109]

The development, designed by regarded architecture firm&nbsp;<a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a>,&nbsp;adopts a deliberately restrained architectural approach, focusing on simplicity, durability and liveability rather than overt design gestures.

The boutique scale is central to the offering. With only 13 three-bedroom residences, each home is configured to prioritise functional layouts and everyday use, supported by private terraces and secure two-car garages.

Ewert Leaf’s design response leans into a calm, neutral material palette. Interiors are defined by oak flooring, white walls and soft finishes, creating a consistent and understated backdrop. The approach avoids trend-driven detailing in favour of longevity, with an emphasis on natural light and spatial clarity.

[smartcode_project:default project_id=134646 project_image_fid=6110]

Beyond aesthetics, the homes are designed to meet contemporary performance expectations. Each residence targets a minimum 6-star energy rating, incorporating double glazing, comprehensive insulation and all-electric Bosch appliances.

The project’s location supports a walkable coastal lifestyle, sitting within close proximity to Mordialloc’s foreshore, Main Street retail strip and the train station. Local cafés and dining venues, including Suburbia Deli and Hendriks Café, are within a short walk, reinforcing the area’s established neighbourhood character.

[smartcode_project:default project_id=134646 project_image_fid=6116]

While <a href="https://www.apartments.com.au/developments/mordialloc-vic-3195">Mordialloc</a> is often defined by its beach and pier, the project taps into other areas of day to day living, offering easy access to local food, casual dining and transport, rather than positioning itself purely as a lifestyle retreat.

WM Residences reflects a continued trend across Melbourne’s coastal suburbs towards smaller-scale, design-led townhouse developments, particularly on infill sites where proximity to amenity is already established.

With construction commenced prior to its market entry, the project aligns with a growing preference among buyers for developments with visible progress and defined delivery timeframes.

[smartcode_project_cta:default project_id=134646]

Larry Schlesinger

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