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The decision to allow Perth shops to trade on Sundays helped push up the performance of Federation Centres' WA portfolio of shopping centres, the group has revealed in its March quarter update.
The new laws were introduced on August 26 last year allowing all general retail shops in the <a target="_self" href="https://www.commerce.wa.gov.au/consumerprotection/PDF/Misc/Metropolita_area_map.pdf">Perth metropolitan area</a>, including major supermarkets and department stores, the right to open their doors on Sunday between 11am and 5pm.
“Following the introduction of Sunday trading in August 2012, the performance of our WesternAustralian portfolio was particularly strong, recording moving average turnover growth of 4.9% at the end of the period," said Federation Centres chief operating officer Mark Wilson.
The performance of the WA portfolio was substantially better than annual retail sales growth of 2.4% and the performance of Federation Centres shopping malls in other states.
"Our NSW portfolio also showed encouraging signs, with moving average turnover growth of 2.5%.
"The portfolio located in NSW and Western Australia represents approximately 50% of the total by value.
"Trading conditions in Victoria and Queensland however remained more subdued, with moving average turnover growth of only 0.3% and 1.2% respectively over the period," he said.
Overall Federation Centres reported a "solid" first quarter of the year with occupancy at a rate of 99.4%.
Overall annual sales growth increased to 2.4% at 31 March 2013 from 2.0% at 31 December 2012, with specialty retailers continuing a positive trend to show annual sales growth of 2.5%.
Federation Centres, formely called Centro Retail Australia, has a portfolio of 46 shopping centres worth $4.4 billion.
It has recently sold over $200 million worth of non-core shopping centre assets held in Centro syndicates, while also acquiring the <a href="/news">Centro at Gympie for %63.8 million</a>.
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Perth Sunday trading delivers boost to Federation Centres WA malls

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Sydney remains the preferred location of choice for Australia's biggest companies with around 36% of the companies listed on the S&amp;P ASX 300 headquartered in the city.
And it is set to grow in prominence in the coming years with the S&amp;P ASX All Ordinaries Index up 23% from May 2012 to mid-February 2013.
"Historically, there is a lag of between one and three years from movements in the All Ordinaries to net absorption in the Sydney CBD," according to a new Sydney office report by Andrew Ballantyne and Tim O’Connor of Jones Lang LaSalle.
<img alt="ASX_300_headquarters" height="311" width="470" src="/images/stories/april23maitland/ASX_300_headquarters.jpg">
Perth, with its mining boom attracting resource companies to lease in the city, is not far behind Sydney with about 80 of the S&amp;P 300 based in the WA capital city.
Melbourne is third and Brisbane fourth, according to Knight Frank.
"Sydney is the headquarters of corporate Australia.
"As such, Sydney is the finance and administrative heart of Australia. 
"The market capitalisation of the Australian Stock Exchange is $1,400 billion, making it the ninth largest stock exchange in the world.
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Sydney CBD remains the capital for big business headquarters: Chart of the week

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The decision by Fivex Commercial Property to convert office space on Flinders Street into retail space for <a href="/news">Japanese gift and homewares retailer Daiso</a> is likely to herald a trend across Melbourne as large ground floor retail space becomes scarcer. 
The first floor in Fivex's 'Riverview House” across the road from Flinders Station, and previously tenanted by the Commonwealth Bank, is currently being converted into a Daiso store, accessed via escalators. 
The move is in line with Fivex’s plans to reposition the use of the building with another floor in the building being converted into a gym and another is being transformed into a child-care centre. 
A digital advertising board  was recently wrapped around the first floor of the building on the corner of Flinders Street and Elizabeth Street to generate a seperate source of income. 
The Daiso deal has an upside for both tenant and landlord: the landlord receives a higher rent for the retail space then he would if it were office space while the tenant pays a lower rent then they would if they had leased a ground floor space, though without the passing foot traffic. 
The lease was negotiated by Ben Tremellen, Colliers International retail leasing manager, who tells Property Observer that international retailers are struggling to find large ground floor spaces in the Melbourne CBD. 
He says new international retailers all require at least 500 square metres of space and they all want to be on Collins Street between Elizabeth and Swanston Street or on the Bourke Street Mall. 
“It’s near impossible to find this sort of foot print,” he says. 
“There are definitely a lot of office landlords seeking to activate the ground floor and level one and provide space for those retailers that can’t get a footprint on the ground floor,” he says. 
Converting from office to retail could also become an option for some office landlords who can’t secure tenants in the lower floors of some of their buildings. 
The Melbourne office market is expected to soften further over 2014 and move increasingly in favour of tenants over landlords. 
BIS Shrapnel forecasting the vacancy rate to hit 10% by the end of the year. 
The Property Council of Australia recorded the highest CBD office vacancy rates in Flagstaff (13.9%), the Western Core (8.2%), Eastern Core (7.1%) and Spencer Street (6.9%) in its most recent office market report.
Retailers seeking prime Melbourne CBD space may also not have the appetite for the high rents charged on Bourke Street. 
According to Knight Frank, "super-prime" rents on Bourke Street Mall range from $7,500 per square metre to $10,000 per square metre.
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Office-to-retail conversion a growing CBD trend as ground floor space dries up: Colliers International

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The value of commercial finance commitments rose 1.5% in March to $29.64 billion, following a rise of 0.9% in February, according to the latest seasonally-adjusted data from the ABS.
The rise in March and February followed a 9% fall in January with commercial lending continuing to trend downwards.
In trend terms, loans for commercial purposes were down 1.1% over March.
Revolving credit commitments rose 4.7%, after a fall of 6.3% in the previous month.
Fixed lending commitments rose 0.4%, following a rise of 3.4% in the previous month.
The value of commercial mortgage commitments for the purchase of housing for rent or re-sale trended up 1.4% in March 2013 and the seasonally adjusted series rose 4.6%.
The value of total personal finance commitments (credit cards, personal loans) rose 0.6% in seasonally adjusted terms.
Fixed lending commitments rose 10.1%, while revolving credit commitments fell 11.8%.
The value of total lease finance commitments trended down 0.6% in March 2013. The seasonally adjusted series fell 4.1%, after a rise of 1.6% in February 2013.
Yesterday, the ABS revealed that the number of housing finance commitments <a target="_blank" href="https://www.propertyobserver.com.au/residential/mortgage-lending-surges-up-52-in-march-abs/2013051361314?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news">lifted 5.2% in March</a> and 5.8% in value, led by strong gains in NSW and Victoria.
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Commercial mortgage commitments up 1.5% in March: ABS

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Westfield speciality tenants signing new leases in Australian malls have scored an average 5.1% rent reduction than the expired rents, according to the group’s March quarter update.
The shopping centre group completed 380 leasing deals over the first three months of the year across its portfolio of 38 malls in Australia.
Excluding new projects, the leases represented 2.2% of specialty retail space across the Australian portfolio.
The rent reductions were offered against a subdued retail backdrop with comparable specialty sales up just 0.3% for the quarter.
Westfield reported that retail sales in the quarter were negatively impacted by the timing of Easter as well as 2012 being a leap year.
“Whilst retail conditions remain subdued the productivity of the portfolio remains high at $9,863 per square metre (psm) with continuing demand for space from both domestic and international retailers,” said Westfield in its quarterly update.
"Average specialty rent for the Australian / New Zealand portfolio grew by 2.4% from March 2012 with average rent in Australia now at $1,522 psm and New Zealand at NZ$1,127 psm.
"In Australia, for the 3 months over 380 leasing deals were completed. Excluding projects, this represented 2.2% of specialty area, which were completed at rents 5.1% lower than expiring rents," 
Overall, Westfield said performance across the group's global operations over the three months to March 31 was in line with expectations.
It previously reported that <a target="_blank" href="https://www.propertyobserver.com.au/retail/westfield-top-10-malls-westfield-sydney-shines-but-bondi-junction-disappoints/2013040260098">Westfield Sydney and Westfield Liverpool</a> were the top performing mall in its Australia and New Zealand portfolio.
During the quarter, Westfield commenced $700m of new projects including the $400m redevelopment of the Mt Gravatt mall in Brisbane, the US$150m redevelopment at Garden State Plaza in New Jersey and the US$90m redevelopment at Montgomery in Maryland.
It also entered into an agreement with O'Connor Capital Partners to form a US$1.28bn joint venture comprising a portfolio of six Westfield regional malls in Florida while disposing of its joint venture interest in Brazil.
Westfield's global portfolio comprises 100 shopping centres in 4 countries with around 22,000 retail shops, 1.1bn annual customer visits and over $40bn in annual retail sales. 
The global portfolio at 31 March 2013 was 97.4% leased, up 20 basis points compared to the same period last year.
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Westfield's Australian tenants score 5% discount on new leasing deals amid "subdued" retail conditions: March quarter update

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The tiny Macarthur Credit Union has become only the third lender to pass on more than the RBA’s 25 basis point May cash rate cut to borrowers.
The credit union, which dates back to 1971 when it formed to service coal miners and truck drivers as the Clutha Employees Credit Union Ltd, cut its standard variable rate by 26 basis points to offer a new 5.99% standard variable rate.
As the Macarthur Credit Union, it services 17,000 members in Camden, Campbelltown and Wollondilly in the Macarthur region of NSW, south west of Sydney.
The other lenders to pass on more than the RBA's May cash rate reduction to date are ANZ (27 basis points) and the Greater Building Society (30 basis points).
“It’s great to see most lenders passing on the Reserve Bank’s 0.25 percentage points and even better to see some lenders going further. Macarthur Credit Union is the third lender so far to drop its standard variable rate by more than the Reserve Bank’s 0.25 percentage point cash rate drop, even if it’s only by an extra 0.01 percentage point,” said RateCity.com.au CEO Alex Parsons.
“We’re hoping that this latest round of rate cuts by the Reserve Bank will spark greater competition between lenders. The game has changed for Australia’s lending market and now is the time for borrowers to take advantage of what lenders are offering.
RateCity.com.au has counted 39 lenders announcing rate cuts since last week’s decision by the RBA to cut the cash rate by 25 basis points to a 53-year-low of 2.75%:
<div align="center">
<table align="left" style="width: 470px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="45%" nowrap>
Company
</td>
<td width="32%" nowrap>
Standard variable
rate movement
</td>
<td width="22%" nowrap>
New standard
variable rate
</td>
</tr>
<tr>
<td width="45%" nowrap>
Greater Building Society
</td>
<td width="32%" nowrap>
-0.30%
</td>
<td width="22%" nowrap>
5.75%
</td>
</tr>
<tr>
<td width="45%" nowrap>
ANZ
</td>
<td width="32%" nowrap>
-0.27%
</td>
<td width="22%" nowrap>
6.13%
</td>
</tr>
<tr>
<td width="45%" nowrap>
Macarthur Credit Union
</td>
<td width="32%" nowrap>
-0.26%
</td>
<td width="22%" nowrap>
5.99%
</td>
</tr>
<tr>
<td width="45%" nowrap>
AMP Bank
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
6.25%
</td>
</tr>
<tr>
<td width="45%" nowrap>
Aussie Home Loans
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
5.24%
</td>
</tr>
<tr>
<td width="45%" nowrap>
Bank MECU
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
5.74%
</td>
</tr>
<tr>
<td width="45%" nowrap>
Bank of Melbourne
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
6.15%
</td>
</tr>
<tr>
<td width="45%" nowrap>
Bank SA
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
6.22%
</td>
</tr>
<tr>
<td width="45%" nowrap>
Bankwest
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
6.14%
</td>
</tr>
<tr>
<td width="45%" nowrap>
Bendigo Bank
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
6.26%
</td>
</tr>
<tr>
<td width="45%" nowrap>
BMC Mortgage
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
5.28%
</td>
</tr>
<tr>
<td width="45%" nowrap>
BOQ
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
6.26%
</td>
</tr>
<tr>
<td width="45%" nowrap>
Coastline Credit Union
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
5.34%
</td>
</tr>
<tr>
<td width="45%" nowrap>
Commonwealth Bank
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
6.15%
</td>
</tr>
<tr>
<td width="45%" nowrap>
Heritage Bank
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
5.89%
</td>
</tr>
<tr>
<td width="45%" nowrap>
IMB
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
5.91%
</td>
</tr>
<tr>
<td width="45%" nowrap>
ING DIRECT
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
5.41%
</td>
</tr>
<tr>
<td width="45%" nowrap>
Intech Credit Union
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
5.93%
</td>
</tr>
<tr>
<td width="45%" nowrap>
Macquarie Bank
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
6.24%
</td>
</tr>
<tr>
<td width="45%" nowrap>
MyRate
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
5.42%
</td>
</tr>
<tr>
<td width="45%" nowrap>
nab
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
6.13%
</td>
</tr>
<tr>
<td width="45%" nowrap>
Newcastle Permanent
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
5.80%
</td>
</tr>
<tr>
<td width="45%" nowrap>
P&amp;N Bank
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
5.95%
</td>
</tr>
<tr>
<td width="45%" nowrap>
Pacific Mortgage Group
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
5.02%
</td>
</tr>
<tr>
<td width="45%" nowrap>
People's Choice Credit Union
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
6.12%
</td>
</tr>
<tr>
<td width="45%" nowrap>
Police Credit
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
5.74%
</td>
</tr>
<tr>
<td width="45%" nowrap>
Queenslanders CU
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
5.25%
</td>
</tr>
<tr>
<td width="45%" nowrap>
RAMS Home Loans
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
6.10%
</td>
</tr>
<tr>
<td width="45%" nowrap>
RESI Mortgage Corp
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
5.31%
</td>
</tr>
<tr>
<td width="45%" nowrap>
SGE Credit Union
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
5.82%
</td>
</tr>
<tr>
<td width="45%" nowrap>
St George Bank
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
6.24%
</td>
</tr>
<tr>
<td width="45%" nowrap>
Summerland CU
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
5.54%
</td>
</tr>
<tr>
<td width="45%" nowrap>
Suncorp Bank
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
6.24%
</td>
</tr>
<tr>
<td width="45%" nowrap>
UBank
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
4.87%
</td>
</tr>
<tr>
<td width="45%" nowrap>
Westpac
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
6.26%
</td>
</tr>
<tr>
<td width="45%" nowrap>
Yellow Brick Road
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
6.15%
</td>
</tr>
<tr>
<td width="45%" nowrap>
loans.com.au
</td>
<td width="32%" nowrap>
-0.24%
</td>
<td width="22%" nowrap>
4.75%
</td>
</tr>
<tr>
<td width="45%" nowrap>
Community First Credit Union
</td>
<td width="32%" nowrap>
-0.22%
</td>
<td width="22%" nowrap>
6.12%
</td>
</tr>
<tr>
<td width="45%" nowrap>
Police Bank
</td>
<td width="32%" nowrap>
-0.20%
</td>
<td width="22%" nowrap>
5.84%
</td>
</tr>
</tbody></table>
</div>
Source: RateCity.com.au, ranked by biggest cuts then alphabetically, effective dates vary between lenders
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Macarthur Credit Union beats RBA with 26 bps rate cut: RateCity guide of 39 lender rate cuts

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Midland Brick heiress Marilyn New has finally secured the sale of her Perth hotel with the four star Esplanade River Suites serviced apartments in Como selling to the Chinese-based Narada Hotel Group for around $31 million.
A year ago, she sold the 4.5-star, 300-room Esplanade Hotel in Fremantle to <a href="https://www.propertyobserver.com.au/leisure/marilyn-new-sells-fremantles-esplanade-hotel-for-%2490-million/2012040454156">Singaporean property fund Ascendas</a> for $90 million.
Narada’s purchase, reported by The Australian Financial Review, continues a trend of Asian hotel groups buying prominent Australian hotels.
Recent noteworthy purchases include the Dong Run Group purchasing the <a href="https://www.propertyobserver.com.au/industry-news/palazzo-versace-hotel-sale-helps-lift-sunland-interim-profits-as-residential-sales-slow/2013021459356">Palazzo Versace hotel on the Gold Coast</a> for $68.5 million at the end of 2012, Hong Kong-listed Shangri-La Asia paying $352 million to fully own the Sydney’s Shangri-La Hotel in The Rocks and William Han, chairman of China-based White Horse Australia Holdings Pty Ltd and non-executive director of Western Australia's Padbury Mining buying Lindeman Island in the Whitsundays for around $12 million in April last year with plans to redevelop the island.
Narada bills itself as one of the Top 10 hotel groups in China and among the Top 100 in the world, managing 15,000 guestrooms in 11 provinces in China.
The group was established in 1995 and has assets comprising hotels, infrastructure and real estate development worth 5 billion yuan ($816 million).
The Esplanade River Suites on Melville Parade overlooks the Swan River, and features 101 guest rooms and apartments as well as the Pagoda Restaurant and Bar and conferencing facilities.
It opened in February 1998 on the site of the historic Pagoda Ballroom, which was built in 1922 as a dance hall and tearooms.
The hotel retains the distinctive red-roof Pagoda design.
The sale of Esplanade River Suites was negotiated by Aaron Desange of?Jones Lang LaSalle’s Hotels &amp; Hospitality Group.
It was sold as vacant possession.
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Marilyn New exits Perth hotel scene with Esplanade River Suites sale to Chinese hotel group Narada 

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First-home buyers continue to stay on the sidelines of the housing market with economists noting the flow-on effect this is having for the wider housing market recovery. In addition the <a href="/news">different incentives on offer in state and territory housing markets</a> and with different expiry dates, is distorting the picture, pulling forward demand in some cases, but with a vaccum likely to follow when incentives are withdrawn.
ABS housing finance figures show that first-home buyer activity retreated further in March with this segment accounting for 14.2% of total owner-occupied housing finance compared with 14.4% in February.
First-home buyer numbers, as a proportion of the total dwellings financed, are at their lowest level since May 2004 – a nine-year-low..
A year ago they made up 18.1% of the market with the first-home buyer market peaking at 31.4% in May 2009, with first-home buyers spurred on by the $7,000 first-home owner boost (FHOB) for existing homes and $14,000 bonus for new homes, which ran from October 2008 to December 2009 (halved in the final two months).
<img src="/images/stories/2013/05/fhbmay14twothumb.gif" width="470" height="328" alt="fhbmay14twothumb">
This decline in first-home buyers is against a backdrop of a stronger-then-expected rise in home lending, which lifted 5.2% in March led by strong gains in NSW and Victoria.
Westpac economist Matthew Hassan highlights a point made by other economists like <a href="/news">AMP Capital’s Shane Oliver</a> that the current housing market recovery has been weak by comparison to previous easing cycles
He told the Australian Financial Review it had taken “a very long time to generate any movement in the sector", but that prior to yesterday’s housing finance bounce, the recovery had been “sub-par”.
Hassan pointed to the lack of activity in the first-home buyer market as a key issue for a sustained recovery, as they typically purchase the homes of those looking to upgrade and move up the property ladder.
“Ultimately you need a new entrant to drive ongoing growth on the buyer side,” he said.
A similar point was made by Commonwealth Bank economist Michael Workman who called first-home buyers “still the missing link to the overall housing activity story”.
“Higher levels of first home buyers in the market are needed to make a solid impact on total housing activity,” he said.
ANZ property market analysts David Cannington and Paul Braddick said that “looking through the distortions from state and territory government first-home buyer policy changes in recent months” the March data indicates “the combined impact of improved housing affordability and low rental vacancy rates (putting upward pressure on rents) is supporting moderate growth in first-home buyer finance, albeit from low levels”.
"First-home buyer activity increased in March (on a trend basis), however its share of the total value of housing finance commitments (excluding refinancing) decreased to 10.9% - the lowest first-home owner share since April 2004," said Cannington and Braddick.
"Growth in the number of first home-buyer commitments in March was lowest in Tasmania, followed by the Northern Territory (-21.3% m/m and -17.5% m/m respectively).
"The withdrawal of the First Home Buyer Grant on established homes in NSW and Queensland and the unwinding of Northern Territory first-home buyer concessions have weighed on first- home buyer lending in these states.
"However, moderate growth in first home-buyer finance in many states in recent months indicates the combined impact of improved housing affordability and low rental vacancy rates (putting upward pressure on rents) issupporting first home buyer activity," the said.
ANZ prepared the following sets of graphs to show how the first-home buyer segment is tracking in each of the state and territory markets, with the five biggest markets – NSW, Victoria, Queensland, Western Australia and South Australia – showing mild improvements, but declining trends in the three smallest states.
Click to enlarge
<a href="/images/stories/2013/05/fhbmay14one.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2013/05/fhbmay14onethumb.gif"></a>
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Lack of first-home buyer recovery halting stronger housing market rebound: Matthew Hassan

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Property Council of Australia chief executive Peter Verwer has warned the government not to introduce further changes to its withholding tax rules, which could create more uncertainty in the minds of institutional investors.
The withholding tax is charged on income paid to foreign investors who invest in managed schemes, many of which fund large infrastructure and property projects in Australia.
Last year, the government doubled the tax rate on distributions from 7.5% to 15% for all buildings in managed schemes, except those constructed after July 1 with a five-star energy rating, where a 10% tax rate has been implemented.
Verwer told Property Observer that the important thing was certainty amid concerns that government may tinker with the thin capitalisation regime – the debt side of institutional investments.
“There is the potential for them to make changes to the thin capitalisation regime, which would send a further negative signal to rest of the world and would complicate the ability of schemes to raise money internationally,” he said.
Currently, institutional investors can borrow up to 75% and take advantage of a favourable tax regime for this debt. The proposed changes would reduce the gearing threshold at which the thin-cap rules apply.
“International investors have been dismayed by the chopping and changing regime.
"They see Australia’s economic growth as attractive for long-term investment, but are dismayed at the ad hoc approach taken to taxing them,” he said.
Verwer said the PCA’s preference was for a single, low rate “that sends a clear message to the world”.
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Property Council warns against further tinkering with offshore investment rules

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The cash rate may be back to what it was in January 1960, but it was a different era for those seeking a home loan.
For those who missed it, the RBA’s <a target="_blank" href="/news">decision to cut the cash rate to 2.75% last week</a> meant that the benchmark borrowing rate fell to a 53-year-low below a 'cash rate' setting of 2.89% in January 1960.
This was not the official benchmark figure it is today, since the Reserve Bank did not publish a cash rate target until January 1990.
Rather the cash rate was a proxy measure of short-term interest rates at a time when the banking sector was highly regulated and getting a home loan meant making an appointment with your bank manager and wearing your best suit to an interview.
<img alt="commsecmay13one" height="333" width="470" src="/images/stories/2013/05/commsecmay13one.gif">
Source: CommSec
There were no foreign banks, no discount online mortgage offerings, nor the plethora of different mortgage products tailored for different types of borrowers and investors.
There were no honeymoon rates, low-doc loans, reverse mortgages, packaged home loans or off-set accounts with such product innovation only coming to the fore in the late 1990s and early 2000s.
Getting a good home loan rate meant having a good relationship with your bank manager.
The headline home loan rate was also lower at 5.00% through 1959 and 1960, according to <a target="_blank" href="https://www.propertyobserver.com.au/economy/a-return-to-the-1950s-glory-days-is-on-the-cards-commsec-s-craig-james/2013050861160?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=economy">CommSec chief economist Craig James</a> compared with an average standard variable rate of around 6.17%, according to RateCity.com.au following the 25 basis point reduction.
However, a standard variable rate would not even have been quoted in 1960s, with most home loans on fixed-rates with "flexible" mortgage rates only appearing more commonly in the mid-1960s. Certainly most of the Commonwealth Bank's lending would have been done on fixed-rates.
 
<hr class="system-pagebreak">
Assistant RBA governor Guy Debelle pointed out in a speech in 2010 the differences between mortgage lending today and forty and fifty years ago.
"In the 1960s and early 1970s, the Australian financial system was heavily regulated," Debelle said.
He highlighted a number of wide-ranging controls including that interest rates that banks could charge on their loans and pay on their deposits were controlled.
"Banks were subject to reserve ratios and liquidity ratios. There were directives on the overall quantity of loans banks should make, as well as moral suasion on who they should lend to.
"Institutions were specialised – trading banks lent to businesses, savings banks held large quantities of government debt and lent to households (almost entirely for housing), and finance companies lent for more risky property loans and consumer credit," he explained.
Finance companies likes of the Finance Corporation of Australia funded Alan Bond's first property speculations now subsumed into ANZ-owned Esanda.
However, this heavy regulation of the banks would later result in them losing market share as the unregulated financial sector, primarily building societies moved in.
The banks’ share of total financial intermediary assets declined from nearly 90% in the early 1950s to 70% in 1970.
"The banks’ share of housing credit was just below 60% in 1976 with much of the rest of the mortgage market being provided by credit unions and building societies. Finance companies, which were generally associated with the banks, often provided top-up funding to bank mortgages but were not a particularly large share of the overall market," explained Debelle.
Compare this with today's mortgage market where banks have 96% of outstanding home loans and credit unions and building societies just 4%.
And there are other differences.
It certainly was not possible as it is today to contact your mortgage broker if you felt you were paying too high an interest rate and ask them to source a better deal with another lender.
Or demand that your bank offer you a better rate.
In 1959/60 Australia's GDP growth was 4.4% compared with 3.1% through 2013.
The unemployment rate was under 2% compare with the current 5.5%, meaning decidely fewer borrowers were worrying about paying off their mortgages.
It certainly was not the market-driven banking and lending system we have today while a high Australian dollar - a key factor in the RBA's decision to cut the cash rate on Tuesday - was not a problem as the currency only floated in 1983.
The floating of the dollar coincided with federal treasurer Paul Keating deregulating the banking system between 1983 and 1985 granting 40 new foreign exchange licences in June 1984; and granting 16 banking licences to 16 foreign banks in February 1985.
Australia’s sixth biggest mortgage lender, ING Direct, only began offering its cheap online home loans and high-interest savings accounts in 1999.
Bear in mind that in 1960, the Reserve Bank of Australia had only just come into official being in under the Reserve Bank Act 1959, tasked with undertaking the central banking functions of the Commonwealth Bank.
The Commonwealth Bank as we know it today, originated from this date offering commercial banking and savings banking activities in the form of the newly created Commonwealth Banking Corporation.
Monetary policy was of course entirely different with no RBA imperative to maintain an inflation target of between 2% and 3%.
And it’s not just the nature of the banking system that was so different, house prices had yet to boom as they did in the 1990s and 2000s.
Housing was far more affordable meaning mothers did not have to go out into the workforce to help pay for the mortgage and buying your first home was not the financial commitment it is today.
The boom in property values prior to the GFC saw house price to income ratios of less than to two in the 1960s rise to above four to one currently.
As for household debt that's in a different stratosphere.
In 1960 household debt to Australia’s GDP was less than 20%.
Today it’s just under 150%.
 
</body></html>

It's really not back to the 1960s for borrowers despite a 2.75% cash rate

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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