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Bank of New Zealand chief economist Tony Alexander has proposed eight ways the NZ government could act to cool down the overheating property market, though he expects there is little chance they will be implemented.
They include outlawing of sales of New Zealand residential property to offshore buyers and implementing a tax on New Zealanders who own property overseas.
In his latest weekly newsletter, Alexander warns of four housing problems facing New Zealand being: “affordability, bank exposures should prices fall, the New Zealand dollar’s surge as monetary policy fights housing sector inflation and physical accommodation availability”.
The latest data confirms that house prices have been rising strongly, most notably in Auckland, New Zealand's biggest property market.
In May Real Estate Institute of New Zealand (REINZ) figures showed the Auckland median house price increased to a new record high median price of NZ$565,000 (A$475,000) with median prices up 14.8% over the past 12 months.
But price rises have not been restricted to Auckland.
The National, Auckland, Christchurch and Other South Island Stratified Housing Price Indices all hit new record highs in May.
The Christchurch Index is up 13.1% and the Other South Island Index up 5.4%.
Alexander says the optimal solution to cool the market is a “quick jump in house supply combined with reductions in building materials costs”.
He proposes eight ways to achieve this:
<ul>
<li>First initiate a large builder training programme targeting not just youth but low skilled migrants. Yes, the  migrant gates would need to be opened. Just the signalling of strong intention to boost builder numbers  would make investors think twice about their capital gain assumptions.</li>
<li>Second, ban councils from imposing any development fees and allow developers to install their own infrastructure.</li>
<li>Third, create an SOE whose sole purpose is to undercut existing building materials suppliers through bulk purchases from offshore, nodal warehousing and distribution from just three or four locations in the country, with a separate agency responsible for monitoring the quality of materials sourced.</li>
<li>Fourth, initiate a new large state house building programme relying largely on the to be created new carpenters etc. Constrain new state houses to more efficient building systems including containerised modular housing (this doesn’t involve shipping containers), central and screwed in foundations, etc.</li>
<li>Fifth, ban house sales to non-residents (even new houses given the ease with which special developments could arise targeting solely folk offshore and soaking up construction sector resources).</li>
<li>Sixth, impose a tax on all houses owned by Kiwis offshore with the aim of encouraging them to sell them.</li>
<li>Seventh, put in place a capital gains tax on second properties and farmland and immediately payable stamp duty for all second house purchases.</li>
<li>Eighth, rezone all land within 10-20 kilometres of existing city boundaries as residential.
</li>
</ul>
However, Alexander says the chances of such radical policies (plus others) being imposed are “low, zero, zero, mild, mild, zero, low, zero".
Instead what he says will happen is that “some land will be freed up but it will little affect section prices, construction will soar and rising costs will force higher interest rates and a higher NZ dollar.
“The Reserve Bank will tighten high loan to value lending but the impact will be minimal and mainly encourage young buyers to raise more expensive  finance elsewhere (a big business opportunity looms there) or to leave the country to make a purchase overseas,” he says.
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Ban house sales to Aussies among BNZ economist Tony Alexander’s eight radical ways to cool down overheating New Zealand housing market

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Elders Limited has entered a trading halt as it begins assessing final bids for its Elders Rural Services and Futuris Automotive businesses.
In a statement to the ASX, Elders advised it was “in receipt of one or more final or near final bids for each of its Elders Rural Services and Futuris Automotive businesses.
"As those bids require analysis, consultation with secured lenders and consideration by the Elders Board and potentially further negotiations on key terms, Elders is not in a position to make an immediate announcement in connection."
Elders Limited has sought that the trading halt remain in place until Tuesday (April 18) or until further announcements are made.
Elders has net debts of $295 million and a market cap of about $40 million.
Both businesses have had significant write-downs - Futuris was written down by $166.5 million to $75 million and rural services, by $52 million.
For its 2012 financial year to September 31, Elders Limited reported a statutory loss after tax of $60.6 million compared with loss of $395.4 million in 2011.
Elders Limited announced plans to sell the rural business in October last year.
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Elders Limited in trading halt as it assesses business division bids

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HSBC has cut its two-year fixed rates for new home loans to 4.59%.
This is the lowest fixed-rate offering in Australia, according to InfoChoice and Cannex. 
To qualify, applications must be submit their applications by July 22. 
HSBC has also cut its three and five-year fixed rates to 4.79% and 5.09% respectively for new and existing customers.
The rate cut comes as Mortgage Choice reported that nearly a <a target="_blank" href="/news">third of mortgage approvals in May</a> were for fixed-rate home loans. 
“The easing in wholesale funding costs has also meant we can offer some of the lowest three and five year fixed-rates to our customers across the board,” says Alice Del Vecchio, head of mortgages for HSBC Australia. 
HSBC also offers a 4.99% variable rate home loan. 
“With fixed rates like these well below standard variable rates, now is a great time for borrowers to consider fixing or splitting their home loan between fixed and variable rates to get the best of both worlds. It’s a fantastic combination of certainty and value,” says Del Vecchio.
HSBC’s fixed rates are as follows:
2-year fixed rate 4.59%
3-year fixed rate 4.79%
5-year fixed rate 5.09%
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HSBC cuts two-year fixed-rates to 4.59%

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The spun-off Woolworths shopping centre portfolio, Shopping Centres Australasia (SCA Property Group) has acquired a portfolio of seven neighbourhood shopping centres in Victoria and Queensland from a  private investor, for $135.8 million.
The portfolio of seven neighbourhood shopping centres acquired comprises:
<ul>
<li>Alfred Square, VIC ($20 million on a 7.5% cap rate; 100% occupied; 8,964sqm GLA; 11.6 yr average age; anchor tenant 89% of gross income)</li>
<li>Burdekin Plaza, QLD ($18.7mn on a 8.0% cap rate; 96% occupied; 5,513sqm GLA; 26.6 yr average age; anchor tenant 84% of gross income)</li>
<li>Drouin Central, VIC ($12.3mn on a 8.0% cap rate; 99% occupied; 3,798sqm GLA; 4.6 yr average age; anchor tenant 79% of gross income)</li>
<li>Langwarrin Plaza, VIC ($17.2mn on a 7.8% cap rate; 98% occupied; 5,087sqm GLA; 8.5 yr average age;anchor tenant 54% of gross income)</li>
<li>Ocean Grove Marketplace, VIC ($29.9mn (incl. A$0.5mn of surplus land) on a 7.5% cap rate; 96% occupied; 6,910sqm GLA; 8.5 yr average age; anchor tenant 50% of gross income</li>
</ul>
The acquisition will be funded via a $90 million institutional placement and subsequent unit purchase plan (UPP), at $1.58 per share.
The A-REIT  was placed in a trading halt yesterday pending the announcement.
Goldman Sachs A-REIT analyst Andrew Macfarlane says the investment will increase Shopping Centres Australasia’s gearing 34.3% to 35.0% at the top end of management’s target range while net tangible assets will decrease from $1.58 to $1.56.
“While muted rent growth and the roll-off of Shopping Centres Australasia’s two-year rental guarantee provided by Woolworths arguably remain key issues for Shopping Centres Australasia, today’s acquisition goes a small way to diluting the potential shortfall in the 2014 financial year, Macfarlane says.
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Shopping Centres Australasia buys seven shopping centres for for $135.8 million

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Non-bank lender Liberty Financial has cut interest rates on its commercial lending products by up to 100 basis points.

The Melbourne-based lender is offering the lower rates for new customers with its flagship Enterprise full-doc commercial mortgage product starting at 6.8%, reports Australian Broker online.

The product is available for loan amounts from $150,000 to $10 million and aimed at owner-occupiers, small businesses or investors seeking to finance commercial property purchases.

It required a minimum 20% deposit with a 30 year loan term for owner-occupiers and 15 year loan term for investors.

A 6.8% starting rate also applies to its LeaseStream loan for commercial property investors also covering loans from $150,000 to $10 million with a maximum 15 year loan term.
GM of commercial finance, Suresh Pillai, said reductions of 100 basis points had also been made on its low-doc rates now start from 7.40% per annum.


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Liberty Financial cuts commercial loan rates by 100 basis points

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Gold Coast property investors and estate agents be warned - David Koch is at it again bagging out the struggling Queensland coastal property market.
In January last year the Adelaide-born, Sydney-based financial journalist and Channel 7 breakfast TV host outraged local Gold Coast and Sunshine Coast property players, residents and retirees by <a href="https://www.google.com.au/url?sa=t&amp;rct=j&amp;q=&amp;source=web&amp;cd=5&amp;cad=rja&amp;ved=0CE8QFjAE&amp;url=http%3A%2F%2Fwww.propertyobserver.com.au%2Fresidential%2Fkochie-to-property-investors-avoid-catastrophic-gold-and-sunshine-coasts%2F2012011953058&amp;ei=C2O6Ud-WDKq5iQemxYGACw&amp;usg=AFQjCNFpSCbgsr0nGifgzS6awlh5hKBbCQ&amp;bvm=bv.47883778,d.aGc" target="_blank">calling them “catastrophes”</a> claiming an oversupply of new apartments was having a “devastating” impact on the market and that any sort of recovery was years away.
In his latest commentary for Yahoo7 Finance, ‘Kochie’ says there are "serious bargains" in the property market despite Australian property prices remaining among the most expensive in the world.
Kochie says there are "still pockets of property in Australia, and one postcode in particular, that go against the grain in a big way”.
“If you’re a market watcher you might guess that I’m talking about the Gold Coast,” he writes.
Kochie notes the latest Home Discounts Report from SQM Research, shows there are now over 1,000 properties in the 4217 postcode (Surfers Paradise and surrounds) that have been on the market for more than 60 days.
However, if he really wanted to drive home his point a bit more research would show that<a target="_blank" href="https://www.propertyobserver.com.au/residential/friday-may-3-news-gold-coast-time-on-market-drops-slightly-to-225-days-apm/2013042960834"> average days on market for Gold Coast property</a> is currently nearly four times this at 225 days - down from 239 days according to Australian Property Monitors (APM).
APM also reported that the Gold Coast’s average discount rate for property increased over April to 13.3% from 10.1% in March - the highest discount rate since June 2012 where it was also 13.3%.
“As you can imagine this oversupply has seriously pounded prices,” Kochie goes on to say.
One example he notes is a two-bedroom Gold Coast unit on the market since September 2011 and listed for $350,000, having previously sold for $595,000 in 2005 –a 40% discount.
Kochie says there are “plenty more where this came from”.
“Now, I don’t mean to single the Gold Coast out as a basket case, because there are certainly other regions that have felt the pain of oversupply too.
“But it should serve as a stern reminder for property investors looking at the region, and properties anywhere for that matter, to look very closely at an area before buying,” he adds.
According to the most recent Prodap Report, the Gold Coast unit market fell by 3% in the March quarter, based on 895 settlements following falls of 11.3% of the past two years.
The average unit price of $419,724 is the lowest since June 2003.
According to report author Bill Morris, this reflects significant discounting of liquidation stock, particularly for central Surfers Paradise high rise apartments.
The most <a href="https://www.propertyobserver.com.au/developments/heavily-discounted-hilton-surfers-paradise-the-only-notable-gold-coast-high-rise-seller-in-november-quarter-midwood/2012121958540/Page-2" target="_blank">recent Midwood Report on the Queensland market</a> recorded only 19 high-rise apartment sales over the November quarter, a 70% plunge from sales figure a year ago with 705 high-rise apartments available for purchase on the Gold Coast, which at current sales rates would take close to a decade to clear.
The Gold Coast detached housing market, which has not been flooded by new developments, is in better shape.
According to the Prodap report, the average Gold Coast house price rose from $515,941 to $554,263 (7.4%) in the March 2013 quarter, matching average prices in Brisbane ($550,000), despite a 27% drop in the volume of house sales. The average price was recorded from a sample of 589 sales.
The increase reversed a 4.5% fall over 2012 and an 8.4% fall over 2011 and 2012 combined.
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Gold Coast “basket case” a good bet for property bargains: David Koch

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The trendy inner city suburb of South Yarra, just four kilometres south east of the Melbourne CBD, was the top performing Melbourne suburb in 2012, according to the latest Victorian Property Sales report prepared by the office of Victorian valuer-general Robert Marsh.
It led a strong but patchy recovery in the Melbourne property market in the final quarter of the year, with Metropolitan Melbourne sales statistics show an increase of 4.8% for median house prices to $495,000 following a 1.6% decrease in the September quarter.
South Yarra, home to the glitzy shopping strips of Chapel Street and Toorak Road, registered a 19.9% increase in its median house for the December 2012 quarter compared with the previous corresponding period.
The South Yarra median house price increased from $1,037,500 in the December quarter of 2011 to $1,243,500 in the December quarter of 2012 with 158 sales recorded over 2012.
Over the December quarter the South Yarra median house price increased by 25.6% from 36 sales.
Other inner city suburbs to record strong annual quarter-on-quarter gains were Malvern (up 10.8%), Footscray (10%) and Fitzroy North.
However, there were also significant corrections in some prominent inner city suburbs with Toorak, Melbourne's most expensive suburb, recording a 15.9% annual correction with its median house price falling from $2.68 million from $2.26 million with 113 sales recorded over 2012.
There were also an 11.5% decline in St. Kilda (103 sales) and an 11.3% decline in South Melbourne (105 sales).
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“The data does not indicate the general location of the 4.8% increase in metropolitan Melbourne housing values,” says Marsh.
“It does indicate the need for data analysts to undertake their own detailed research,” he added.
However, the overall trend was for an increasing number of suburbs to record increases in their median house prices.
“It has generally been observed that there are fewer suburbs showing a decrease in median house price in the December 2012 quarter compared to the September 2012 quarter,” says Marsh.
The December quarter figures show that 134 metropolitan suburbs with 10 or more sales showed a decrease in median house price for this quarter, compared to 182 suburbs in the September 2012 quarter.
In addition, 77 metropolitan suburbs with 10 or more sales in both of the last two quarters shifted from showing a median price increase for the September 2012 quarter to a median price decrease for the December 2012 quarter compared with 112 metropolitan suburbs shifting from an increase in the June 2012 quarter to a decrease in the September 2012 quarter.
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In the Western suburbs, the strongest annual gains were in Altona (up 3.4%) and Derrimut (2.6%) but with steep falls in Keilor East (-9.5%) and Sunshine (-5.8%).
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In the outer-western suburbs,  Taylors Hill house prices lifted 12.6% followed by Hillside up 9.1%. However Werribee median house prices fell 6.6% over 2012 and by 4.4% in Tarneit.
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In the outer-eastern suburbs, Heathmont recorded a 6.8% rise, but Wantirna prices fell 6.9%.
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South Yarra shines with 19.9% annual rise as part of patchy Melbourne median house prices recovery: Victoria valuer-general report

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Western Australia's consumer watchdog Consumer Protection has won a legal victory in its campaign against rent-to-buy property schemes with the operators of <a href="https://www.sellhouseseasy.com.au/" target="_blank">www.sellhouseseasy.com.au</a> served with a Supreme Court interim injunction preventing them from engaging in alleged misleading and deceptive conduct.

The injunction is in place until a trial takes place in relation to the allegations made against the operators of the website - siblings Patricia Mirawati Susilo and Bryan Artawijaya Susilo of Applecross.
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WA’s Consumer Protection also alleges that they are operating as real estate agents without the required licence.
Bryan Susilo told Property Observer he would not respond or comment until Consumer Protection "adjusted" their media statement.
"It's not what the judge actually ordered," he said.
A spokesperson for Consumer Protection told Property Observer there would be no changes to its <a href="https://www.commerce.wa.gov.au/Corporate/Media/statements/2013/06/Supreme_Court_injunctions_agai" target="_blank">press release, issued on June 10.</a>
"Our media statements go through a rigorous approvals process, which includes our Legal Unit, before release and we believe it is an accurate summary of the Court Orders.
"There are no plans to retract or amend the release," he said.
Consumer Protection <a href="https://www.propertyobserver.com.au/western-australia/was-consumer-protection-takes-legal-against-rent-to-buy-property-scheme-after-tenant-sells-portable-swimming-pool/2013022559509">sought the injunction in October last year</a>, after alleging that the Susilos engaged in misleading and deceptive conduct in breach of Australian Consumer Law.
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On a video on the site, the Susilos refer to their business as "your friendly real estate pawn shop".
Consumer Protection alleges that the Susilos accepted <a href="https://www.propertyobserver.com.au/industry-news/wa-consumer-protection-targets-rent-to-buy-property-scheme-that-took-david-beckham-jersey-in-lieu-of-deposit/2012101557170" target="_blank">wedding rings and various family collectables</a>, including a Real Madrid football jersey signed by David Beckham, in cases where tenant/buyers could not afford the upfront fees.
Rent-to-buy schemes are targeted at people who don’t qualify for home loans. Buyers agree to pay rent to the seller in return for being able to purchase the property at a later date.
While they are not illegal they have come under increasing scrutiny from regulators.
Consumer advocate Neil Jenman, a long campaigner against rent-to-buy schemes, calls them “dangerous scams” that are “designed by predators who prey on the poor”.
“They are a complete rip-off and should be outlawed," Jenman said in 2007.
In February Consumer Protection lodged a Supreme Court writ against the<a href="https://www.propertyobserver.com.au/western-australia/was-consumer-protection-takes-legal-against-rent-to-buy-property-scheme-after-tenant-sells-portable-swimming-pool/2013022559509" target="_blank"> promoter of another rent-to-buy property scheme</a>, alleging the company and its director misled consumers, after a tenant/prospective buyer allegedly sold an above-ground swimming pool, valued at more than $16,000, despite not being the owner of the property.
The Susilos describe themselves on their website as "part of a group of real estate investors who buy residential property in all areas throughout Australia! Any price, any condition!"
 
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Other statements in the Frequently Asked Questions section of the website include:
Q: Why should I contact you?
"We can buy your house fast. Agents can't.
Q: If you buy my house before the banks foreclose, will that save my credit?
 Selling your house before foreclosure is finalized may prevent foreclosure and/or bankruptcy from appearing on your credit report, which is usually better for your credit (think of it as amputating an infected leg to save your life)."
The interim injunction granted to WA’s Consumer Protection requires that the Susilos publish statements on their website "clarifying the nature of their business and clearly outlining the purchasing and rental arrangements for the properties they are advertising for sale under the scheme".
It requires that they "make the terms of their contracts clearer to consumers in relation to the ownership of the property and the purchasing arrangements between the owner and prospective buyer/tenant".
"They must also provide purchasers with a notice setting out a payment schedule and timeframe, as well as outlining the consequences should the buyer/tenant not be in a position to purchase the property at the end of the contract period," said WA Department of Commerce in a statement.
"Claims in their advertising that a loan from a bank or other financial institution is not required to purchase the homes will need to be qualified with “Bank or other financial institutions aren’t required to assist in all cases”.
"The injunctions prevent the promoters from representing that they own or have interests in properties unless they are the owner or have the represented interest.
"They must also indicate that the sale price and instalment payments being advertised are approximate amounts only.
"The promoters must provide both owners and prospective buyers/tenants with a written notice stating the exact nature of the scheme they are proposing, at least seven days before any contracts take effect."
Commissioner for consumer protection Anne Driscoll said the injunctions will give greater clarity to those who might be considering this particular scheme.
“The Supreme Court’s decision acknowledges the need for greater clarity about these complex rental and purchase arrangements and the need for both parties to know their rights and financial obligations before signing any contracts,” she says.
“We would urge anyone who is contemplating a rent to buy property proposal to seek legal and financial advice before committing to a contract, as there are many aspects of these schemes that require careful consideration.”
“We would strongly recommend that, if buyers or sellers of WA properties decide to deal with an intermediary, they only deal with licensed real estate agents. This gives much greater protection as there are laws that are designed to uphold consumer rights and safeguard their financial interests.”
In August 2011, the Commissioner warned consumers about rent to buy property promoters No Loan Home Pty Ltd (trading as Perth’s Easyhomes WA), its sole Director Filip (Fil) Butkovic and employee Nikola (Nik) Butkovic.
In May 2012, the Supreme Court ruled the scheme was illegal because the promoters were not licensed real estate agents.
 
 
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Perth rent-to-buy property scheme promoters hit with injunction ahead of trial

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Administrators will seek to wind up the $480 million LM First Mortgage Income Fund (FMIF) – one of the investment funds offered by failed Gold Coast Funder fund manager LM Investment Management.
Debenture holders have around $288 million invested in the fund, which was then lent on as registered first mortgages over commercial, residential, industrial, retail and vacant land – most of which is now in default.
John Park and Ginette Muller of FTI Consulting were appointed joint administrators of LM Investment Management at the end of March and in April were appointed responsible entity of the fund.
The fund closed to new investment in March 2009 with LM Investment Management blaming this on “headwinds caused by the global financial crisis”.
In a June update to investors in the fund, administrators said they had been authorised by ASIC to “investigate and preserve the assets and affairs of the fund and to either “wind-up the scheme” or “transfer the functions of the responsible entity to an entity not externally-administered”.
“Whilst we have now reached our view that it is in the best interests of members to formally wind up the FMIF, we have given an undertaking (and the Court may order) that we not take any steps pending the [court] hearing on 15 July 2013, to formalize the winding up,” said the administrators.
The July 15 court hearing is to determine whether FTI Consulting remain as responsible entity or fund management group Trilogy (which controls other LM funds) be appointed as the replacement responsible entity
At the time the fund closed, there were 55 loan assets.
Prior to its collapse, LM Investment management secured the sale of 28 loans leaving a balance of 27 loans totalling $481 million.
The accounts reveal provisions for impairments of $146 million leaving a net balance of $334 million, according to its most recent annual report to June 2012.
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.
FTI Consulting says that while “technically” a wind-up has not commenced actions taken by LM Investment management following the closure of the fund in 2009 would be no different to a winding-up of the fund.
“The only assets of FMIF are loans which are secured by mortgages. Most of the loans are in default.
“The function of LM is to realize those loans – it does this by taking the appropriate action to enforce its rights under those loans or sell those loans.
“As a result of the global financial crisis LM has been unable to make new loans on acceptable terms. Accordingly, in accordance with the “go forward” strategy which was announced by LM on 20 December 2012, when loan moneys are recovered they are used to pay FMIF liabilities with the surplus being distributed to members.
“Thus while a technical wind up of FMIF has not commenced, the action in relation to FMIF loan assets and moneys recovered which is being taken by LM would be no different if a technical wind up had commenced,” said FTI Consulting.
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FTI Consulting to seek winding up of LM Investment mortgage fund

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While Canberra house prices <a href="https://www.propertyobserver.com.au/australian-capital-territory/canberra-median-house-prices-down-a-statistical-87-as-property-market-treads-water-in-march-quarter-reia-report/2013061262200" target="_blank">fell sharply in the March quarter</a>, property investors received an income boost with the Federal capital recording the biggest rent increase for three-bedroom houses of all capital cities over this period.
The Real Estate Institute of Australia (REIA) records a 4.4% rise in median weekly rents to $470 per week for three-bedroom houses in Canberra ahead of Perth (up 4.3% to $480 per week), Adelaide (up 3.1% to $330 per week), Melbourne (up 2.9% to $350 per week) and Sydney (up 2.4% to $430 per week).
In Canberra, the biggest gains were four-bedroom houses in the West and North (Belconnen, Gungahlin and Hall), up 6.4% to a median of $585 per week followed by four-bedroom houses in the Inner South (Woden andWeston Creek) up 4.5% to $575 per week and three-bedroom houses in the Inner South up 4.3% to $490 per week.
Over the past year Perth and Darwin clearly standout with the former recording a 12.9% rise in weekly rents of three-bedroom houses and the latter recording a 16.3% rise in weekly house rents.
Within the Perth market, rents surged within 5 kilometres of the CBD with REIA reporting a 12.9% quarterly rise in inner city weekly house rents to $700 per week compared with more modest gains of 3.2% ($490) and 3.5% ($445) in the middle and outer suburbs of Perth respectively.
Over the quarter, Broome was the only regional centre in WA to record a fall in the median house rent, down by 1.3%.
Albany in the Great Southern region of WA was another strong rental market, recording a 6.7% rise in weekly house rents to $320 per week.
In Melbourne, the biggest gains were recorded in the middle suburbs with two-bedroom house rents rising 2.6% to $390 per week and three-bedroom house rents up 2.4% to $430 per week.
According to moving annual trend figures, Perth, Sydney and Brisbane have the tightest unit markets with vacancy rates of just 2% followed by Melbourne (2.2%), Darwin (2.3%) and Canberra (2.9%) which all sit below the 3% benchmark vacancy rate.
Vacancy rates below 3% generally indicate a rental market favouring tenants while a vacancy rate above 3% is said to favour renters.
Hobart has the highest unit vacancy rate among capital cities of 4.8% - its weekly rents have fallen 5.3% over the past year.
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Canberra and Perth record strongest rental growth for houses in March quarter: REIA

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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