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There was a “spectacular” recovering in home loan approvals to fund new home purchases, including apartments bought off-the-plan in March, says Westpac, quoting ABS figures.
Apart from noting that the upswing in housing finance approvals “clicked back into gear in March” Westpac noted a “spectacular 21% jump in approvals for the purchase of newly built dwellings”.
“With approvals for construction up 4.7% the combined gain in 'construction related' finance approvals is showing a strong upturn with a 10% rise in the March month the strongest reading since early 2009 and up 21% for the year,” said the Westpac economics team, led by Bill Evans.
Westpac also noted that when re-financing is stripped out of mortgage approvals to owner occupiers, the number of 'new' loans posted an even stronger 7.2% gain to be up 13.8% for the year. “The rest of the detail showed a more modest gain for approvals to first-home buyers - we estimate up 4% for the month in seasonally adjusted terms but coming from a record historical low.
“The value of loans to investors was also more sluggish, rising 2.1% for the month suggesting the March strength was dominated by 'upgraders',” said Westpac Economics.
Master Builders Australia chief economist was less exuberant in his response to the March figures, saying they were a “welcome improvement” and “good news for an industry going through the tenuous signs of recovery”.
“Residential building is at a ow ebb and the industry hopes that Reserve Bank’s decision to cut interest rates in again May will give new home buyers the boost in confidence to enter the market.
“The solid improvement in March comes off the back of a positive housing finance figure in February but the industry is not ready to count its chickens before they hatch.
“There needs to be a much longer run of positive figures to confirm a recovery. However, builders may be relieved to see these figures, which suggest that new housing activity may have finally found a trough,” he said.
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Mortgages approvals for new homes up a “spectacular” 21% in March: Westpac

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Aussie Home Loans has announced deep cuts to its Aussie-branded fixed-rate home loans as well as a 5.15% variable rate offering for new customers in the wake of the RBA cutting the cash rate to 2.75%.
The John Symond-fronted brand has dropped its two-year fixed-rate by 0.40%  to 4.89% p.a and its three-year fixed-rate by 0.30% to 4.99% p.a,  effective today.
The new variable offering will take effect from May 15 - it required a minimum 20% deposit and a loan size bigger than $500,000.
“Competition between lenders for a slice of the home loan pie is getting hotter and rates are certainly far more competitive than they have been for some time. Aussie is throwing down the gauntlet to the major lenders, and I’m confident consumers will find there is nothing lower than our two and three year fixed rates on the market,” says Aussie founder and chairman, John Symond.
“It is a good time to consider fixing your loan if you are someone who wants certainty on repayment amounts month to month, but equally there are some great deals to be found on variable rates too, so there’s definitely a great choice and variety out there,” he says.
Aussie passed on the full RBA cut announced last week. 
FIXED RATE COMPARISON TABLE
<table border="1" cellspacing="0" cellpadding="0" style="width: 400px;"><tbody>
<tr>
<td style="width: 70px;" nowrap valign="top">
 
</td>
<td style="width: 70px;" nowrap valign="top">
1 Year
</td>
<td style="width: 70px;" nowrap valign="top">
2 years 
</td>
<td style="width: 70px;" nowrap valign="top">
3 years
</td>
<td style="width: 70px;" nowrap valign="top">
4 years
</td>
<td style="width: 70px;" nowrap valign="top">
5 years
</td>
</tr>
<tr>
<td style="width: 70px;" valign="top">
CBA Package
</td>
<td style="width: 70px;" valign="top">
5.19%
</td>
<td style="width: 70px;" valign="top">
4.99%
</td>
<td style="width: 70px;" valign="top">
5.29%
</td>
<td style="width: 70px;" valign="top">
5.64%
</td>
<td style="width: 70px;" valign="top">
5.69%
</td>
</tr>
<tr>
<td style="width: 70px;" valign="top">
NAB
</td>
<td style="width: 70px;" valign="top">
5.09%
</td>
<td style="width: 70px;" valign="top">
4.99%
</td>
<td style="width: 70px;" valign="top">
5.29%
</td>
<td style="width: 70px;" valign="top">
5.64%
</td>
<td style="width: 70px;" valign="top">
5.55%
</td>
</tr>
<tr>
<td style="width: 70px;" valign="top">
WBC
</td>
<td style="width: 70px;" valign="top">
5.24%
</td>
<td style="width: 70px;" valign="top">
5.29%
</td>
<td style="width: 70px;" valign="top">
5.29%
</td>
<td style="width: 70px;" valign="top">
5.69%
</td>
<td style="width: 70px;" valign="top">
5.69%
</td>
</tr>
<tr>
<td style="width: 70px;" valign="top">
ANZ
</td>
<td style="width: 70px;" valign="top">
5.19%
</td>
<td style="width: 70px;" valign="top">
5.29%
</td>
<td style="width: 70px;" valign="top">
5.29%
</td>
<td style="width: 70px;" valign="top">
5.64%
</td>
<td style="width: 70px;" valign="top">
5.84%
</td>
</tr>
<tr>
<td style="width: 70px;" valign="top">
SGB
</td>
<td style="width: 70px;" valign="top">
5.15%
</td>
<td style="width: 70px;" valign="top">
4.99%
</td>
<td style="width: 70px;" valign="top">
5.29%
</td>
<td style="width: 70px;" valign="top">
5.64%
</td>
<td style="width: 70px;" valign="top">
5.69%
</td>
</tr>
<tr>
<td style="width: 70px;" valign="top">
BOM
</td>
<td style="width: 70px;" valign="top">
5.15%
</td>
<td style="width: 70px;" valign="top">
4.99%
</td>
<td style="width: 70px;" valign="top">
5.29%
</td>
<td style="width: 70px;" valign="top">
5.64%
</td>
<td style="width: 70px;" valign="top">
5.69%
</td>
</tr>
<tr>
<td style="width: 70px;" valign="top">
BOQ
</td>
<td style="width: 70px;" valign="top">
4.99%
</td>
<td style="width: 70px;" valign="top">
5.19%
</td>
<td style="width: 70px;" valign="top">
5.29%
</td>
<td style="width: 70px;" valign="top">
5.59%
</td>
<td style="width: 70px;" valign="top">
5.69%
</td>
</tr>
<tr>
<td style="width: 70px;" valign="top">
Aussie
</td>
<td style="width: 70px;" valign="top">
4.95%
</td>
<td style="width: 70px;" valign="top">
4.89%
</td>
<td style="width: 70px;" valign="top">
4.99%
</td>
<td style="width: 70px;" valign="top">
5.49%
</td>
<td style="width: 70px;" valign="top">
5.49%
</td>
</tr>
<tr>
<td style="width: 70px;" valign="top">
Suncorp
</td>
<td style="width: 70px;" valign="top">
5.30%
</td>
<td style="width: 70px;" valign="top">
5.34%
</td>
<td style="width: 70px;" valign="top">
5.40%
</td>
<td style="width: 70px;" valign="top">
 
</td>
<td style="width: 70px;" valign="top">
5.85%
</td>
</tr>
<tr>
<td style="width: 70px;" valign="top">
BankWest
</td>
<td style="width: 70px;" valign="top">
5.39%
</td>
<td style="width: 70px;" valign="top">
4.99%
</td>
<td style="width: 70px;" valign="top">
5.19%
</td>
<td style="width: 70px;" valign="top">
5.64%
</td>
<td style="width: 70px;" valign="top">
5.49%
</td>
</tr>
<tr>
<td style="width: 70px;" valign="top">
ING
</td>
<td style="width: 70px;" valign="top">
5.19%
</td>
<td style="width: 70px;" valign="top">
4.99%
</td>
<td style="width: 70px;" valign="top">
5.09%
</td>
<td style="width: 70px;" valign="top">
5.39%
</td>
<td style="width: 70px;" valign="top">
5.39%
</td>
</tr>
<tr>
<td style="width: 70px;" valign="top">
RAMS
</td>
<td style="width: 70px;" valign="top">
4.99%
</td>
<td style="width: 70px;" valign="top">
5.25%
</td>
<td style="width: 70px;" valign="top">
5.29%
</td>
<td style="width: 70px;" valign="top">
5.64%
</td>
<td style="width: 70px;" valign="top">
5.69%
</td>
</tr>
<tr>
<td style="width: 70px;" valign="top">
Newcastle Permanent
</td>
<td style="width: 70px;" valign="top">
4.98%
</td>
<td style="width: 70px;" valign="top">
4.98%
</td>
<td style="width: 70px;" valign="top">
5.28%
</td>
<td style="width: 70px;" valign="top">
5.64%
</td>
<td style="width: 70px;" valign="top">
5.69%
</td>
</tr>
<tr>
<td style="width: 70px;" valign="top">
Bendigo
</td>
<td style="width: 70px;" valign="top">
5.19%
</td>
<td style="width: 70px;" valign="top">
5.29%
</td>
<td style="width: 70px;" valign="top">
5.44%
</td>
<td style="width: 70px;" valign="top">
5.74%
</td>
<td style="width: 70px;" valign="top">
5.79%
</td>
</tr>
</tbody></table>
AUSSIE SELECT VARIABLE RATES
<table style="width: 414px;" border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="137" rowspan="2" valign="top">
Effective May 15, 2013
</td>
<td width="277" colspan="3">
Aussie Select Variable
</td>
</tr>
<tr>
<td width="98">
&lt;$350k
</td>
<td width="85">
$350k-&lt;500k
</td>
<td width="95" valign="top">
$500k+
</td>
</tr>
<tr>
<td width="137" valign="top">
LVR &lt;80%
</td>
<td width="98">
5.20%
 
 
</td>
<td width="85">
5.20%
 
 
</td>
<td width="95" valign="top">
5.15% 
 
</td>
</tr>
<tr>
<td width="137" valign="top">
LVR &gt;=80.00%
</td>
<td width="98">
5.29%
 
 
</td>
<td width="85">
5.29%
 
 
</td>
<td width="95" valign="top">
5.20%
 
 
</td>
</tr>
</tbody></table>
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Aussie reduces two and three-year fixed rates below 5% with new variable offering in the mix

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There was a 5.2% lift in the number of home loans issued to owner occupiers in March led by strong gains in NSW and Victoria, according to seasonally-adjusted ABS figures.
In total there were 48,071 home loan commitments in March compared with 46,225 in February.
Analysts had forecast a 4% rise in mortgage lending in March.
The seasonally-adjusted estimates rose in New South Wales (up $1,036m, 8.0%), Victoria (up $664m, 5.2%), Western Australia (up $280m, 4.0%), Queensland (up $157m, 1.8%), South Australia (up $155m, 5.3%), Tasmania (up $30m, 4.2%) and the Australian Capital Territory (up $27m, 3.5%), while a fall was recorded in the Northern Territory (down $6m, 1.6%).
In value terms, home loans to owner occupiers lifted 5.8% to $14.9 billion.
Rises were recorded in commitments for the purchase of established dwellings (up $129m, 1.1%), commitments for the purchase of new dwellings (up $16m, 1.8%) and commitments for the construction of dwellings (up $16m, 1.1%).
The total value of dwelling commitments excluding alterations and additions (trend) rose 1.2% in March 2013 compared with February 2013 and the seasonally adjusted series rose 4.5% in March 2013. 
The value of investment housing commitments seasonally adjusted rose 2.1% in March 2013.
Rises were recorded in commitments for the purchase of dwellings by individuals for rent or resale (up $91m, 1.4%), commitments for the purchase of dwellings by others for rent or resale (up $11m, 1.3%) and commitments for the construction of dwellings for rent or resale (up $7m, 1.3%).
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Mortgage lending surges up 5.2% in March led by NSW and Victoria: ABS

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The listed property trust sector (A-REITs) gained a new participant yesterday with ArenaREIT, a childcare centre property trust, floating with a share price of $1.05
This represented a premium to its net tangible assets of $1 per share and is also a premium to its initial offer price of $1.01 per unit.
The full initial offer of $75 million was taken up ahead of listing yesterday.
The Melbourne-based trust, formerly the Arena Childcare Property Fund, is managed by Arena Investment Management Limited and comprises 172 childcare centres and 5 childcare centre development land sites located in Australia, valued at $228 million (as at 31 December 2012).
The portfolio has a relatively long weighted average lease expiry (WALE) of 8.2 years as of December 2012 and an occupancy rate of 97.7% as of March 2013.
Two thirds of the portfolio (66.3% by value) is leased to childcare group Goodstart which purchased the collapsed ABC Learning business.
Goodstart is owned by the charitable organisations The Benevolent Society, Mission Australia, the Brotherhood of St Laurence and Social Ventures Australia.
The trust earned rental income of $11.05 million for the half year to December 31 2012 down slightly from $11.8 million in the prior corresponding period.
The joint managing directors of the fund are James Goodwin and Bryce Mitchelson.
The managers of the trust intend to diversify over time expanding beyond childcare into education, healthcare and government tenanted facilities.
Arena REIT trades under the ASX code of ARF. 
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<div class="section">
<div class="layoutArea">
<div class="column">
It was established as an unlisted trust in 2003 investing into childcare centres. 
</div>
</div>
</div>
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Arena REIT lists $228 million childcare centre portfolio with $1.05 share price

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Ian Corfield has been appointed as the new Aussie Home Loans chief executive, following the <a target="_blank" href="https://www.propertyobserver.com.au/news/aussie-home-loans-ceo-stephen-porges-resigns-after-commbank-acquisition/2013041560393">resignation of Stephen Porges last month.</a>
He will commence his role on June 3 joining from Bankwest, where he is currently chief executive of its business banking division.
Bankwest is owned by the Commonwealth Bank, which also owns Aussie Home Loans.
Corfield is well experienced in the mortgage broker space having previously held the role of chief executive  for Bankwest's retail banking division between 2007 and 2010.
This included being in charge of its third party mortgage broker business.
Prior to that Corfield held senior roles at the Halifax Bank in the <country-region>UK</country-region> and <country-region>Ireland</country-region>.
“I am really pleased the board has accepted my recommendation to hire Ian, as he was the stand-out candidate in my search for a new CEO," said Aussie founder and executive chairman John Symond.
“He has an impeccable pedigree with relevant experience at the helm of dynamic brands and also has extensive experience managing brands through a corporate transition such as Aussie is experiencing now,” he added.
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Aussie Home Loans appoints Bankwest executive Ian Corfield as new CEO

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Amid expectations of a surge in Chinese buyers of Australian and New Zealand property, LJ Hooker has signed a new three-year strategic partnership with Chinese property listings portal Juwai.com.
A previous 12-month agreement was signed in July last year and has been successful to date with 30% of calls from estate agents to the LJ Hooker head office about wanting a closer relationship with Juwai.com.
Juwai’s two co-CEOs will attend LJ Hooker’s annual conference in Queensland this week to explain how LJ Hooker franchisees can attract as many Chinese buyers as possible to their listings.
Juwai.com bills itself as the top-ranked international property portal for the world’s Chinese-language population.
The new agreement follows Juwai.com recording a <a target="_blank" href="/news">61% rise in Australian residential property searches</a> since the start of the year with property viewings up 162% over the same period.
Chinese buyers spent over $4.2 billion on Australian property in 2011 compared with $1.1 billion spent in 2009, earning Australian estate agents about $48 million in commission in 2011.
The new partnership will include LJ Hooker participation in “elite international property expos in China, attended by high net worth Chinese buyers”.
The real estate group will also get greater exposure to the Chinese market through a special corporate landing page hosted behind the Chinese government firewall; corporate banner ad campaigns designed around the core offshore purchasing seasons as well as other branding initiatives.
LJ Hooker estate agents will also receive exclusive discounts on selected premium advertising products on Juwai.com.
Greater demand among Chinese buyers for prestige residential property is also expected due to the new significant investor visa (SIV) with the first such visa issued just over a week ago to a Chinese toy manaufacturer.
Further issuances of SIVs are expected to flow through to the prestige end of the property market - residential property does not qualify as part of the $5 million investment requirement, but successful applicants will want somewhere to live.
LJ Hooker chief executive Georg Chmiel says that "on the whole, Australian agency brands are not well known in China".
"Our extra branding and advertising on Juwai.com will mean that Chinese buyers know and trust LJ Hooker long before they hear about any other agency network," he says.
Simon Henry, co-CEO of Juwai.com said Chinese buyers are now more confident when planning property inspection and buying trips. 
“It can take 12 weeks to obtain their visa to visit Australia and they use that time to thoroughly research the market. That makes it critical to reach them before they leave China,” he says.
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LJ Hooker looks to sell more property to Chinese buyers with three-year marketing deal with international property listings portal Juwai.com

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The residential property market recovery is underway but the house and land market is lagging this by around six months, new Stockland CEO Mark Steinert has told investors at a third quarter update.
He also revealed more pain ahead for Stockland investors before a recovery from about 2016 onwards with another $49 million worth of write-downs identified on previously impaired projects.
This follows Stockland reporting a <a href="https://www.propertyobserver.com.au/land/stockland-pins-hopes-on-western-sydney-and-wa-residential-projects-as-interim-profits-slump-148/2013021259306" target="_blank">$306 million write-down across 13 residential community projects</a> in February as part of a 148% drop in statutory interim profits and a loss of $147 million to December 31.
The new writedowns assume a worst-case scenario with "no additional material impairments"expected "unless trading conditions deteriorate significantly".
Third quarter performance is expected to be in-line with expectations but earnings per share for the full 2013 financial year will be down 25% on 2012 and at the bottom end of the target range provided three months ago.
Stockland is forecasting a 2013 distribution to shareholder of 24 cents per security.
Steinert revealed that only 30% of Stockland’s projects are “capital efficient” amid an overall upbeat outlook for the residential market.
“Key leading indicators are showing signs of improvement and the established housing market is improving,” said Steinert.
Stockland achieved its strongest net deposits in the March third quarter of 2013 since the first quarter of 2011, with its WA division accounting for 47% of these and Victoria improving, though still impacted by "competitor rebating".
"Queensland lead indicators suggest confidence is returning, but this varies between sub-markets," he said.
Steinert said the group would no longer build standalone high-rise apartments, saying this had been an “unhappy” experience for Stockland and also “high risk”.
Instead, Stockland will look to “reshape” the residential portfolio by accelerating the launch of new projects that “improve geographic diversity, accelerate completion of poor performing projects and right-size the land bank”.
Stockland will also look to expand its customer reach with medium-density offerings, noting the success of its terrace home Bower series at its Bells Reach community in Queensland.
Other successful medium-density projects noted by Stockland include the Mernda (Victoria) and Willows (NSW) retirement projects, Essence in Maribyrnong and Riverwalk and Waterside in NSW.
In the growing medium-density housing market, Stockland will look to build semi-detached and attached houses, townhouses, and terraces as well as low rise apartment towers of up to six levels.
These will be built by “selectively developing land from its existing land bank”.
“Residential performance will improve in coming years with the launch of new projects, disposal of non-core assets, reduction in cost base and delivering community outcomes in our larger masterplanned communities,” said Steinert.
<img src="/images/stories/2013/stockland_housing_graph.jpg" width="470" height="371" alt="stockland_housing_graph">
 
<hr class="system-pagebreak">
Stockland has an existing land bank of 86,000 lots of which 31,000 of these lots are at its $4 billion Lockerbie project in Melbourne’s north (covering 1,121 hectares and aimed to deliver homes for 30,000 people) and its 2,300-hectare Caloundra South project on the Sunshine Coast, with plans for homes for 50,000 people.
<img alt="stockland_land_bank" height="320" width="470" src="/images/stories/2013/stockland_land_bank.jpg">
Source: Stockland
The goal will be to reduce its land bank to 51,000 lots by 2018 with 30,000 of these remaining lots in Lockerbie and Caloundra and 21,000 in other projects.
The group is targeting 5,000 to 6,000 lot sales per annum with an expectation of rising sales in NSW (17% to 21% of sales), Queensland (30% to 33%) and WA (19% to 23%).
However, lots sales in Victoria are expected to fall from 34% to 23%.
Stockland will launch new residential projects in East Leppington and Marsden Park in NSW in 2014/15 to “take advantage of the strong market conditions in metropolitan Sydney”.
It also notes that its WA business is “now at scale and benefiting from the strong market conditions”.
In total Stockland has 28 active residential projects covering 28,000 lots with plans for five new projects valued at $200 million to be launched in 2014/15 covering 11,000 lots.
Stockland expects residential margins to increase from 2016 onwards and will look to increase revenue by “creating a better community value proposition that drives higher customer referrals”.
Around a fifth of all new sales leads are referred.
“These leads convert at three times the rate of a non-referred lead. There is a strong link between satisfaction and referral,” says Steinert.
“Our proprietary liveability study of over 1,700 residents has enabled the identification of the specific community elements that contribute the most to higher customer satisfaction (or liveability)
“By focusing our development and community creation activities on the most important elements, we can increase satisfaction, drive greater referral rates and grow margins over time,” says Steinert.
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Residential recovery underway but more pain for Stockland as $49 million write-down revealed

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Mirvac will look to sell poorly-performing shopping centres and retail properties in secondary, sub-optimal markets as it focuses on building a prime retail portfolio.
The A-REIT will look to acquire sub-regional, and neighbourhood shopping centres in “strong markets” as well as select CBD retail assets “within strong trade areas either standalone or as part of mixed-use property”.
Mirvac will look to acquire assets in the four big capital city markets - Sydney, Melbourne, Brisbane and Perth - as well as in some select regional markets "with strong fundamentals", said Mirvac chief executive Susan Lloyd-Hurwitz as part of the group’s strategic review.
Secondary and in sub-optimal markets make up 20% of Mirvac's $1.6 billion retail portfolio.
<img src="/images/stories/april23tivoli/mirvac.jpg" width="470" height="247" alt="mirvac">
Assets that might come under review given the new strategic focus might include the Orange City Centre, Manning Mall in Taree and Hinkler Central in Bundaberg.
The strategic review highlights that Mirvac’s Broadway Shopping Centre in Glebe, just outside the Sydney CBD, is its most productive shopping centre over 45,000 square metres by annual turnover per square metre.
The 50,000 square metre centre is valued at $250 million and brings in annual turnover of $423 million.
“Whilst there has been some improvement in retail sales this quarter, conditions are expected to remain difficult for retailers during 2013,” says Lloyd-Hurwitz.
“Recent interest rate cuts, whilst boosting consumer incomes, have not translated into broad-based sales growth and category performance is expected to remain mixed.
“Vacancy rates to remain resilient in quality centres (across all sub-sectors); however rental growth continues to moderate,” she says.
Mirvac has an $800 million retail investment pipeline tied to its residential community projects include the Stanhope Shopping Village in north west Sydney, Kawana Shopping World on the Sunshine Coast and the Orion Springfield town centre in Ipswich.
Mirvac revealed a 99.2% occupancy rate in its retail property portfolio with moving average turnover up 3% across its portfolio driven by food-based retailers and mini-majors.
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Mirvac to head to big city suburbs and CBDs for prime retail investments amid “difficult” conditions

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Thinking about one day renting the heritage premises at 70 Errol Street, North Melbourne tenanted by Australia Post? Take a number. Better yet wait 868 years, as only 131 years of the lease has gone.
According to the Melbourne City Council book on lease agreements, recently opened to public inspection, Australia Post has the lease on the premises (pictured below) until 2881.
And that’s not a typo.
<img alt="postofficemay13one" height="353" width="470" src="/images/stories/2013/05/postofficemay13one.jpg">
According to The Age’s city editor Jason Dowling, lord mayor Cornelius Job Ham signed a 999-year lease with Australia Post in 1882.
Melbourne City Council finance committee chairman Stephen Mayne called the lease agreement “ridiculous” and said it should be renegotiated.
Image courtesy of Travel Victoria.
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Australia Post’s 999-year lease in North Melbourne revealed by Melbourne City Council

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The NSW government’s decision to only incentivise first-home buyers who purchase new homes from October last year appears to be gaining traction, the Reserve Bank has noted in its May monthly statement on monetary policy.
"For the state as a whole, there has been an increase in demand from first home buyers, which is likely to reflect the increase in government incentives to first-home buyers purchasing new homes relative to the incentives available for purchases of established homes," says the RBA.
The following graph prepared by the RBA shows the trend of rising first-home owner grants (FHOGs) in NSW for new dwellings and also a small uptick in Queensland, where a similar incentive scheme is in place.
In Victoria the trend is heading in the other direction, but this is ahead of the introduction of a <a target="_blank" href="/news">$10,000 FHB grant for new homes only from July 1</a>, with an expected rush among some FHBs to finalise purchases of existing dwellings.
<img alt="fhb_in_nsw" src="/images/stories/2013/fhb_in_nsw.jpg" width="470" height="402">
The <a href="https://www.propertyobserver.com.au/residential/everything-you-need-to-know-about-the-new-nsw-first-home-buyer-%2415000-grant/2012092756828/Page-1" target="_blank">NSW government provides $15,000 to first-home buyers</a> purchasing a new home up to $650,000 but has removed the previous $7,000 grant available for both new and existing FHBs.
A first-home buyer maximum stamp duty exemption of $20,240 is also available for new homes worth up to $550,000.
From January 1 2014 the $15,000 grant will reduce to $10,000.
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FHB demand for new homes rising in NSW: RBA

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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