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Reports suggesting the Commonwealth Bank is seeking to shed management of its listed commercial property platforms – the CFS Retail Property Trust Group and the Commonwealth Property Office Fund  - have been dismissed as “speculation”.
The two A-REITS have a combined value of $20 billion.
The responsible entity of the fund is the Commonwealth Managed Investments Limited (CMIL), a subsidiary of the Commonwealth Bank while another subsidiary, Colonial First State Global Asset Management (CFSGAM) manages the trusts.
It follows the Australian Financial Review’s StreetTalk column revealing last week that a “number of unsolicited approaches were made by a string of potential buyers” to replace the bank as responsible entity of the two A-REITS.
The column reported today that the Commonwealth Bank planned to unleash “a buy-out frenzy for its listed office vehicle, Commonwealth Property Office Fund”.
In a statement posted to the ASX, Commonwealth Managed Investments Limited (CMIL), as responsible entity of both funds advised “it has not received any approach or proposal that would support this speculation”.
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lschlesinger-FZcF9M3vE6

Commonwealth Bank shedding of commercial property trusts dismissed as “speculation”

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Raine &amp; Horne Manly principle Toby Hutton has attributed the private treaty sale of a six-bedroom Northern Beaches family home for $1.715 million in part to expectations that the Coalition will win the federal election in September.
The house is in Liberal Party heartland and only a short drive from Tony Abbott's own home in Forestville and his federal electorate of Warringah.
The property in a cul-de-sac at <a target="_blank" href="https://www.realestate.com.au/property-house-nsw-beacon+hill-113719739">10 Scarborough Place</a> was built in 1995, stands on a 901 square metre site and includes a saltwater pool and spa plus landscaped gardens and manicured lawns.
It sold to a Clontarf owner-occupier after failing to sell at auction in May with expectations of $1.6 million plus.
Hutton said he attributes local buyer confidence to the prospect of a "couple of terms of a federal Coalition government after 14th September".
“Unlike other real estate markets and business sectors, political instability is not affecting the Peninsula.
“Our region is traditionally blue ribbon Liberal, so the prospect of long-term stability after the difficulties of a minority government over the last three years, is a prospect many homeowners and businesses are already savouring in our region.”
Abbott is the federal member for Warringah, just three kilometres east of Beacon Hill.
He lives five kilometres west of Beacon Hill in Forestville
Hutton says the property attracted a steady stream of genuine enquiries over the three weeks it was on the market.
“This is a significant difference to 18 months ago, when it was possible to go two weeks without fielding an enquiry for prestige homes such as these,” he says.
Apart from an expected Coalition victory, Hutton also attributes increased buyer confidence to improving economic news from the likes of the United States, coupled to stronger share market returns over the last year or so.
“The sharemarket has had a pretty good twelve months, despite the latest volatility, and this has translated to bonuses being paid to investment bankers and portfolio managers, and this money is starting to find its way into prestige homes in our region,” he says.
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The Tony Abbott effect? Raine & Horne agent attributes Northern Beaches sale to likely Coalition election victory

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Ballajura settlements agent, Natalie Jane Briggs, has been fined $8,000 by the Midland Magistrates Court over the misuse of trust account funds.
This follows her pleading guilty to 13 charges related to failures to comply with the Settlement Agents Act and the agency’s inability to finalise the financial settlement of four property transactions due to the agent’s misuse of her clients’ trust money.
Briggs, who trading as Frontline Settlements, surrendered her licence and triennial certificate in September 2010.
An August 2011 audit found the agency’s trust account only had a balance of $80.69 and was therefore unable to settle a total of $89,357.78 in financial commitments.
Lawyers for Western Australia’s Consumer Protection told the court that an investigation was launched after Briggs surrendered her licence, but then refused to cooperate with a mandatory termination audit of the agency’s trust account.
The investigation into Frontline Settlements found that:
<ul>
<li>Vendors in the settlement of a Jurien Bay property in 2011 were owed $49,085.86 by the agency and were later compensated by the Fidelity Guarantee Account.</li>
<li>A mortgage broker loaned Ms Briggs $36,790 which was subsequently misappropriated by the agent. The broker was not eligible to be compensated by the Fidelity Guarantee Account as the transaction was not in the course of a real estate settlement.</li>
<li>A cheque for $981.92 from the agent’s trust account to pay for a client’s council rates was dishonoured due to inadequate funds. Ms Briggs then paid the rates from a personal account. The transaction related to the settlement of a Nollamara property.</li>
<li>Another settlement agent claimed Ms Briggs failed to finalise the settlement of a Shelley property and then made a payment of $2,500 which did not come from the trust account, as required by law.</li>
</ul>
Magistrate Benn said the series of offences represented a serious decline in the performance of the settlement agent, despite being well aware of her obligations and responsibilities.
The magistrate said the offences demonstrated a conscious and deliberate disregard for the responsibility of looking after trust monies and cast the profession in a poor light, resulting in community distrust. He said the community has a legitimate expectation to have matters such as this dealt with by way of a serious penalty.
Commissioner for Consumer Protection Anne Driscoll said settlement agents were entrusted with the proper handling of funds related to property transactions.
“To betray this trust and misuse these funds is a very serious offence, so it’s imperative that agents comply completely with the strict rules that apply to these transactions which often involve large amounts of other people’s money,” Driscoll said.
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Perth settlements agent fined $8,000 for misuse of trust account funds

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Forecasts of a sharp rise in Australian house prices creating a housing bubble are “overblown” new modelling by Citi Research suggests.
Under its expected baseline scenario, which assumes no further rate cuts until the second quarter of 2014, Citi Research expects nominal house prices to rise 3% between now and  March 2014 and then start to fall slightly, driven downwards by among other things a slowing Chinese economy, a weaker Australian dollar and reduced Chinese migration.
Even under the most bullish scenario - the cash rate dropping to 2% by March 2014, Chinese growth above 10%, the dollar to remain elevated and the non-FHB loan size to lift significantly over the forecast period – the forecast is for house prices to rise by around 8% from current levels or 5% relative to the peak in June 2010.
“Hardly the definition of a housing ‘bubble’,” say Citi Research analysts Paul Brennan and Josh Williamson, who created the modelling and authored the report.
<img src="/images/stories/2013/larry_uploads/citigraph.jpg" width="470" height="310" alt="citigraph">
Under the expected baseline scenario, they say the initial house price increase will be the result of sustained low interest rates which in turn causes increased borrowing.
However, “the downward pressures created by a slowdown of the Chinese economy, lesser appetite for capital inflows as reflected in a lower Australian dollar and reduced Chinese immigration will eventually overtake the upward momentum from positive domestic factors, causing prices to fall slightly” say Brennan and Williamson.
In the short term, they say the main driver for the Australian housing market will be the low interest rate, “which will likely remain low in the foreseeable future”.
“We maintain our view that the official cash rate will remain at 2.75% until second quarter of 2014.
“This implies that the variable lending rate will also stay at current levels over the same period, easing households’ (particularly non-first home buyers’) concerns over mortgage pressures and consequently stimulating the demand for housing.
“We also assume consumer confidence rises gradually later this year. We have allowed for the non-FHB loan size to grow at higher than the historical average rates, which we think is reasonable in response to the record-low cash rate.
“The auction clearance rates in Sydney and Melbourne have been hitting the 70% to 80% mark for the first 5 months of 2013, coinciding with the RBA cutting rates to lows of 3% in December 2012 and again to 2.75% in April this year."
What will be holding back growth in house prices in the longer term are a number of factors, including the “lower growth outlook in China, slowdown of Chinese immigration and reduced appetite for offshore capital inflows associated with the lower Australian dollar as the mining capex boom winds down".
“We expect the nominal house price to peak in March 2014, by which time it will have increased by 3% from its current level," say Brennan and Williamson.
“However, we expect the slowdown in China to flow through to the Australian housing market during 2014, causing downward pressure on house prices.
“Our Chinese economists are of the view that Chinese industrial production (IP) growth will moderate to below 10% over our forecast period, a significant reduction from the double digit growth rates seen not too long ago. 
Under a bearish scenario, a combination of factors - Chinese IP growth to drop between 9.5% and 8.5%, non-FHB loan size growth to reach negative territory over the forecast horizon, a much sharper drop in the Australian dollar and an earlier cash rate hike than the second quarter of 2014  as well as a drop in consumer confidence to below neutral levels - would give rise to a weak housing market where prices drop on a year-on-year from December 2013.
"By the end of our forecast horizon the nominal house prices would have fallen by around 7% from their current levels," they say. 
Brennan and Williamson claim their modelling has “strong predictive power” with an 85% correlation to house price movements incorporating domestic factors impacting on the housing market as well as international factors including Chinese immigration growth, changes in Chinese industrial production as well as the weakening Australian dollar.
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Australian housing bubble risk “overblown” with prices to peak in March 2014: Citi

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Harry Triguboff’s Meriton group has bought its second Mascot development site this year, adding to a war chest comprising $300 million worth of development sites across Sydney.
Triguboff, Australia’s sixth richest man with a fortune estimated by BRW at $4.95 billion has acquired a <a href="https://www.commercialrealestate.com.au/property/2010468589/for-sale/nsw/mascot/development-land" target="_blank">17,150 square metre site at 200 Coward Street, Mascot</a> in Sydney’s southern suburbs for $47 million.
It last sold for $11 million in 1998 when acquired by the Queensland Local Government Superannuation Board, the trustee of LGsuper, a super fund for current and former Queensland local government employees and their spouses.
It comes just a month after Meriton spent $39 million on a <a target="_blank" href="https://www.propertyobserver.com.au/news/harry-triguboff-buys-lane-cove-service-station-with-tower-approval/2013051261299?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news">North Shore Sydney service station</a> in Lane Cove from Bob Rose’s Rose Group with plans to build a $300 million residential tower development featuring 440 apartments.
The Mascot site on the corner of Coward and O’Riordan Streets currently operates as a multi-unit industrial estate with tenants including chocolate maker Lindt.
An apartment development on the site would overlook Mascot Park with Mascot railway station and town centre just a short walk away.
It was sold by Michael Crombie and Jonathon Canavan of Colliers International following a tender process which closed on June 12 and with the potential for 380 apartments.
Crombie tells Property Observer, while there has been no planning in relation to the site, the expected number of units if a compliant scheme is proposed is around 401 units.
He confirmed that Meriton was the buyer.
“The site has exchanged with a three month settlement date, not subject to anything,” he said.
It has proposed mixed-use residential zoning.
In February this year, Triguboff announced that Meriton had acquired a 31,500 square metre industrial site in Mascot for $100 million from industrial landlord Goodman Group. He plans to build 1,000 apartments on the <a target="_blank" href="https://www.propertyobserver.com.au/developments/harry-triguboff-celebrates-80th-birthday-with-proposed-%24100-million-inner-sydney-site-acquisition-and-calls-for-more-rate-cuts/2013030459705?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news">19-33 Kent Road site</a> near Sydney airport.
Meriton is currently selling more than 2,000 apartments off-the-plan having spent around $300 million on development sites in the past 18 months”.
Triguboff's first project dates back to 1963 when as a clerk, he built his first block of units in the<a href="https://www.propertyobserver.com.au/new-south-wales/harry-triguboff/2013013159060" target="_blank"> Sydney suburb of Tempe</a>.
May 2013 – Lane Cove
Harry spends $39 million on a <a href="https://www.propertyobserver.com.au/news/harry-triguboff-buys-lane-cove-service-station-with-tower-approval/2013051261299?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news" target="_blank">North Shore Sydney service station</a> with plans to build a $300 million residential tower development featuring 440 apartments. The 150 Epping Road site in Lane Cove is acquired from Bob Rose’s Rose Group, which received development approval for the site in August last year.
February 2013 - Mascot
Harry acquires a 31,500 square metre industrial site for $100 million from industrial landlord Goodman Group. The sale is confirmed by Goodman after Meriton leaks it to The Australian. He plans to build 1,000 apartments on the <a target="_blank" href="https://www.propertyobserver.com.au/developments/harry-triguboff-celebrates-80th-birthday-with-proposed-%24100-million-inner-sydney-site-acquisition-and-calls-for-more-rate-cuts/2013030459705?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news">19-33 Kent Road site</a> near Sydney airport.
February 2013 – Olympic Park
Harry pays a <a rel="nofollow" href="https://www.meriton.com.au/blog/meriton-buys-olympic-park-site/" target="_blank">reported $22 million plus to buy a 15,000 square metre</a> site with plans for 300 apartments in Sydney’s Olympic Park. The site offers strong transport links, is a corporate hub with over 100 companies based around the sporting complex bringing in more than 10,000 employees every day.
October 2012 - Rosebery
Harry acquires a former industrial property in Rosebery in inner south-east Sydney with plans to build 200 apartments. Meriton pays $21 million for the site.
August 2012 - Waterloo
Harry purchases on McEvoy Street in Waterloo, with plans for 220 apartments.
July 2012 - Lewisham
Harry spends $48.5 million to buy the <a href="https://www.propertyobserver.com.au/residential/harrytriguboff-s-meriton-buys-lewisham-estates-development-site-for-%24485-million/2012071755616" target="_blank">controversial Lewisham Estates development site</a> which has amended potential for between 377 and 430 units. He boasts that he'd beaten Frasers Property, Toga, Crown Group and Ralan to win the tender. Charlie Demian of the Demian Group paid $8.5 million for the site in 2005.
March 2012 – North Ryde
Harry pays $25 million for a Macquarie Park development site in North Ryde, with plans for a $200 million apartment development covering 330 apartments. The site at 88 Talavera Road, across the road from the Macquarie Shopping Centre and close to Macquarie University, was acquired from property developer St Hilliers, whose construction arm was placed in administration two months later (May 2012) St Hilliers had acquired it in 2007 for $23.5 million.
March 2012 - Chatswood
The biggest site acquired by Harry in 2012 is on Thomas Street in Chatswood on Sydney’s north shore, with approval for 547 apartments. Meriton pays $50 million for the Thomas Street car park with plans for two towers of 29 stories each, one of which will be retained by Meriton as serviced apartments – a growing part of the Meriton business.
December 2011 – North Sydney
Harry acquires a 922 square metre site for serviced apartments at 80 Arthur Street. The sales price is not disclosed. The vendor was the Medi-care Centre Foundation, which acquired the land and office building in 1988 for $14.1 million.
December 2011 – Zetland
Harry acquires a site at South Dowling Street with plans for 400 apartments and “excited by the prospect of further development in the Green Square precinct”. The initial design includes five buildings ranging in height from seven – 20 levels with 360-degree views. Meriton plan to provide a mix of 1, 2 and 3 bedroom apartments with a retail component strip.
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Harry Triguboff buys Mascot site for $47 million with plans for 400 apartments

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Receivers are seeking expressions of interest for more than $100 million worth of mortgages attached to collapsed Queensland-based lender, Waratah Cooperative Housing Society.
Based in Toowong, Brisbane, the society was placed in receivership in December last year after it defaulted on its loan with the Commonwealth Bank.
The cooperative received commercial financing from the Commonwealth Bank and then lent it on as residential home loans to Queensland-based borrowers.
Receivers Michael McCann and Graham Killer of Grant Thornton are seeking expressions of interest for three loan portfolios comprising 500 residential home loans worth $80 million.
Receivers Damian Templeton and Philip Hennessy from KPMG are seeking expressions of interest for one loan portfolios comprising 140 residential home loans worth $22 million.
Expressions of interest close on July 25.
Last year Queensland-based Poinciana and Jacaranda Co-operative Housing Societies were placed in receivership after defaulting on a commercial loan used for residential lending. The two lenders had loan books of $120 million providing mortgages for homes in regional Queensland.</body></html>

Receivers seek buyers for four Waratah Cooperative Housing Society mortgage portfolios worth $102 million

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Lenders have taken large slices out of the interest rates of their fixed-rate home loan offerings recently as demand for the product rises.
<a href="/news">The latest to do so was CUA</a>, which will cut its one, two and three-year fixed-rates to 4.89% from Wednesday (June 26).
Borrowers can now secure one year-fixed rates closer to 4.5% than 5% with many also offering three-year fixed rates under 5% and even five-year fixed-rates just above 5%.
A number of lenders offer discounted variable rates below 5% - with conditions.
With the RBA likely to hold fire on rates when it meets next week, 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/home-loans" target="_blank">finder.com.au</a> as of June 24:
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">
State Custodians
</td>
<td valign="top" width="129">
State Custodians Peak Performance Offset Home Loan
</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>
<tr>
<td valign="top" width="127">
UBank
</td>
<td valign="top" width="129">
UHomeloan – refinance only
</td>
<td valign="top" width="98">
4.87%
</td>
<td valign="top" width="116">
4.87%
</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 Home Loan
</td>
<td valign="top" width="95">
4.59%
</td>
<td valign="top" width="114">
5.71%
</td>
</tr>
<tr>
<td valign="top" width="137">
UBank
</td>
<td valign="top" width="123">
UHomeLoan for refinancing
</td>
<td valign="top" width="95">
4.68%
</td>
<td valign="top" width="114">
5.10%
</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">
UBank
</td>
<td valign="top" width="133">
3 Year Fixed Rate - Refinance Only
</td>
<td valign="top" width="97">
4.73%
</td>
<td valign="top" width="108">
4.97%
</td>
</tr>
<tr>
<td valign="top" width="133">
Resi Home Loans
</td>
<td valign="top" width="133">
Flexi Fix - 3 Years Fixed Rate
</td>
<td valign="top" width="97">
4.78%
</td>
<td valign="top" width="108">
5.54%
</td>
</tr>
<tr>
<td valign="top" width="133">
iMortgage.com.au
</td>
<td valign="top" width="133">
Fusion ProPack
 
</td>
<td valign="top" width="97">
4.79%
</td>
<td valign="top" width="108">
5.33%
</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.
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The current cheapest fixed and variable mortgages as RBA expected to hold fire in July

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The shine appears to be wearing off the Pilbara region as a property investment hotspot with rents falling around 20% on average over the past year and with rental vacancies rising steadily.
This, however, needs to be put into context.
Rents in Pilbara – principally the towns of Port Hedland and Karratha plus smaller surrounding towns like Dampier, Newman, Tom Price – remain very high by national standards with some landlords still seeking in excess of $3,000 per week for three, four and five bedroom houses.
And investment in the region continues with Leighton Contractors this week awarded a $1.3 billion contract variation to mine the Kings deposit at the Solomon Hub for Andrew Forrest's Fortescue Metals Group, taking the total value of work under the Solomon Hub agreement to $2.8 billion, the largest single contract award in the history of Leighton Contractors.
However, evidence is emerging of a broader correction and the seemingly unthinkable: some Pilbara landlords reducing rents by up to 40% to secure tenants.
These figures (below) prepared by the Real Estate Institute of Western Australia show that the Karratha unit market in particular has been hard hit with rents almost halving in the past two years from $1,600 per week to $850 per week.
In Port Hedland, the rental market appears to have peaked in the June quarter of last year.
<table cellpadding="0" cellspacing="0" border="1" style="width: 470px;"><tbody>
<tr>
<td width="123">
Karratha
</td>
<td width="123">
Overall median rent $ p/week
</td>
<td width="123">
Houses only
</td>
<td width="123">
Units, apartments, villas only
</td>
</tr>
<tr>
<td width="123">
June Q 2010
</td>
<td width="123">
1,500
</td>
<td width="123">
1,550
</td>
<td width="123">
1,050
</td>
</tr>
<tr>
<td width="123">
June Q 2011
</td>
<td width="123">
1,600
</td>
<td width="123">
1,650
</td>
<td width="123">
1,600
</td>
</tr>
<tr>
<td width="123">
June Q 2012
</td>
<td width="123">
1,500
</td>
<td width="123">
1,550
</td>
<td width="123">
1,250
</td>
</tr>
<tr>
<td width="123">
Current
</td>
<td width="123">
1,200
</td>
<td width="123">
1,200
</td>
<td width="123">
850
</td>
</tr>
<tr>
<td width="123">
Port Hedland
</td>
<td colspan="3" width="370">
 
</td>
</tr>
<tr>
<td width="123">
June Q 2010
</td>
<td width="123">
1,350
</td>
<td width="123">
1,400
</td>
<td width="123">
1,100
</td>
</tr>
<tr>
<td width="123">
June Q 2011
</td>
<td width="123">
1,500
</td>
<td width="123">
1,600
</td>
<td width="123">
1,425
</td>
</tr>
<tr>
<td width="123">
June Q 2012
</td>
<td width="123">
1,800
</td>
<td width="123">
1,900
</td>
<td width="123">
1,575
</td>
</tr>
<tr>
<td width="123">
Current
</td>
<td width="123">
1,675
</td>
<td width="123">
1,800
</td>
<td width="123">
1,400
</td>
</tr>
</tbody></table>
Source: REIWA
 
<hr class="system-pagebreak">
Property Observer has found a number of examples of properties in Port Hedland where asking rents have been reduced substantially.
Most notable is a 2012-built six bedroom house at <a href="https://www.realestate.com.au/property-house-wa-port+hedland-410520339" target="_blank">79 Dowding Way</a> (pictured below), which, according to RP Data was advertised for rent at $5,500 per week in June last year, and which is now on the market for $2,500 – a 54% reduction – through Shayne Macaulay-Smith of Crawford Realty – South Hedland.
<img alt="pilbarajune25one1" height="337" width="470" src="/images/stories/2013/06/pilbarajune25one1.jpg">
Macaulay-Smith is also seeking tenants for an elevated three-bedroom house at <a href="https://www.realestate.com.au/property-house-wa-port+hedland-410473539" target="_blank">8 Trembath Street</a> (pictured below), “a short stroll from Cemetery Beach” with an advertised weekly rent of $1,500 down from $2,500 per week in May last year (when the listing was held by Jan Ford Real Estate- Port Headland).
<img src="/images/stories/2013/06/pilbarajune25two.jpg" width="470" height="321" alt="pilbarajune25two">
Jane Aspey from Hedland First National - Port Hedland is seeking tenants for a centrally-located three-bedroom house at <a href="https://www.realestate.com.au/property-house-wa-port+hedland-410411143" target="_blank">113 Anderson Street</a> (pictured below) with an asking rent of $1,200.
<img src="/images/stories/2013/06/pilbarajune25three.jpg" width="470" height="304" alt="pilbarajune25three">
This rental provides a good proxy of the recent performance of Port Hedland rental market – the property was first listed for rent at $1,000 per week in 2009, peaking at $1,550 per week in mid-2011 with asking rent reduced to $1,500 per week in November 2012 and now down to $1.200.
 
<hr class="system-pagebreak">
This reduction in rents is being driven by greater choice with the REIWA reporting that at the end of February 2013 there were 164 rental listings in Karratha, up 4% on December and up a significant 56% from a year earlier.
In Port Hedland, the REIWA records 144 listings at the end of February. Currently there are 215 properties listed for rent on realestate.com.au, suggesting a rise comparable with Karratha.
On the forum propertyinvesting.com discussions about the Pilbara market focus on a correction and on the monthly rises in properties available for rent.
One participant warns that investors who paid between $600,000 and $800,000 for one-bedroom apartments off the plan, paid “crazy money for them”.
“There were heaps of them…they're now trying to get around $1300 - $1,500 per week. Good luck with that.”
One forum participant, writing from personal experience, attributes the rise in vacancies and the reduction in asking rents to a number of factors including seasonality (the extreme heat from October to February), BHP laying off contracting groups in September and October (partly in response to “spiralling rents) and a large number of new dwellings coming on to the market at the same time.
This writer says it will take another bull run for one-bedroom apartments asking $1,850 per week to be taken up and says investors should "avoid them with a barge pole”.
“I was caught in this perfect storm. I bought a property and the reno wrapped late October 2012 - and it lay empty until January 1 and is on a one year lease. The rent last year would have been $3,800 per week - the rent is now $2,800 per week.”
Another contributor warns that investors “have to be careful to stay away from any off-the-plan properties or transportable homes posing as new builds”.
The writer adds that there is “definitely a lot of trepidation in the market at the moment which makes it a buyers’ market” – she is currently negotiating on a less than 12 month old four-bedroom, two bathroom unit in a new subdivision returning $2,700 per week.
The most recent figures from BIS Shrapnel forecast a 36% reduction in new dwelling commencements over the next 12 months with 984 starts expected compared with 1,531 a year ago.
This slowdown in supply appears welcome given the rise in rental vacancies and fallen rents.
However, according to the REIWA’s Pilbara branch chair, Jan Ford, while there has been a 20% correction in rents, she still expects some properties to top $5,000 per week by 2014.
“We already have a few $3,000 to $4,000 per week houses in top locations. They are rare, large, new, modern, spacious, multi bedrooms and bathrooms, multi-keyed and designed to appeal to mature professional singles who are sharing and prefer the privacy and comfort of a residential house.
“These are not average rents as we don’t have enough of them.
“Average rents have dropped around 20% after rising 30%.
“Houses are always in higher demand than single units but price often dictates what people take,” she says.
Looking ahead Ford suggests investors and developers consider adaptable living by building large houses that can be separated, with dual or multi keyed for several tenancies during construction and single families in the long term.
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Pilbara rental market starts to lose some of its sparkle

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Never one to shy from giving his opinion on the property market, Sunrise presenter and financial journalist David Koch, believes that the property market moves in cycles of between seven to 10 years.
However, within the overall market cycle, each city and even down to the city block can be in its own cycle, which investors need to understand so they buy at the right time.
"Knowing where you are on a property cycle means following a strict process of understanding the macro and micro elements affecting your decision," writes Koch in an advice column for news.com.au.
For example, while the overall housing market is considered to be undergoing a moderate recovery, Kochie believes the Gold Coast is oversupplied with apartments - many of which have been on the market for a long time - meaning <a target="_blank" href="https://www.propertyobserver.com.au/queensland/gold-coast-basket-case-a-good-bet-for-property-bargains-kochie_online/2013061462238">there are bargains</a> to be snapped up by investors.
He suggests astute investors make themselves aware of such things as "local influences" such as new infrastructure in the works or the release of plans for new housing, "property condition" (the extent and cost of any future improvements), "city variances"(local economic and demographic factors) and the overall economic indicators like consumer confidence, interest rates and unemployment, which can all impact on demand for property.
Most importantly, Kochie says investors must understand the four property phases, which he labels as:
Opportunity Phase
This he says is the best time to buy, at the beginning of cycle when the market has bottomed out (not always easy to pick)
<div>Growth Phase</div>
<div></div>
<div>This is the point when investors are most confident and prices start to rise. 
</div>
 <div>Peak Phase: </div>
<div></div>
<div>When the best gains have been achieved, this is the point, says Kochie, when "inexperienced and timid investors pile in".</div>
<div></div>
<div></div>
<div>Correction Phase</div>
<div></div>
<div>This he says is when buyers over extend themselves and banks start to tighten credit, making it harder to get a mortgage or refinance.</div>
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The four property phases you need to know according to David Koch

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Australia’s largest customer-owned financial institution, CUA will cut its one, two and three-year fixed rate home loans to 4.89% from June 26.
The credit union group has cut its basic three-year fixed-rate by 10 basis points, its two-year fixed rate by 16 basis points and its one-year fixed-rate by 21 basis points. CUA has also made rate cuts across its premium one, two and three year fixed-rate products.
It joins a growing number of lenders to have cut fixed-rates recently as demand for the products rises to around one in three borrowers, according to Mortgage Choice.
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CUA cuts one, two and three-year fixed-rates to 4.89%

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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