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Aussie Home Loans will decrease its Aussie-branded variable rate home loans by 25 basis points in line with the Reserve Bank of Australia rate cut announced yesterday.
The changes will take effect on Wednesday May 15.
Customers will an average home loan of $300,000 could save $47 per month.
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lschlesinger-FZcF9M3vE6

Aussie passes on full rate cut to borrowers

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GPT Group has reached a $75 million settlement with a group of 2,300 investors in relation to a  Slater &amp; Gordon class action.
The conditional settlement was achieved under terms which include GPT denying liability.
The class action was filed in December 2011 with a four-week trial taking place in the <a target="_blank" href="/news">Victorian Federal Court in March</a> with former GPT boss Nic Lyons among those giving evidence.
It was one of a number of<a href="https://www.propertyobserver.com.au/legal/rod-lambert-s-%24175-million-gold-coast-claim-and-other-courtroom-conflicts-to-consider-in-2013/2013012458976" target="_blank"> high-profile property disputes</a> highlighted by Property Observer in January.
Class action lawyer Ben Phi said the settlement was great news for participating shareholders who were awaiting judgment from Federal Court Justice Michelle Gordon following the trial’s conclusion last month.
The dispute relates to a July 7 2008 statement from GPT to the ASX in which GPT downgraded its forecast earnings for the 2008 calendar year by 27%, and its distributions per security (DPS) by 30%.
Six months prior GPT had released its results for the 2007 calendar year and stated that its earnings would be “flat” (about $600m) for 2008.
Investors claimed that GPT "engaged in misleading or deceptive conduct and breaches of continuous disclosure obligations in relation to and following the release of its 2007 Full Year Statutory Accounts".
"The GPT Group is pleased to announce that a settlement has been reached in relation to the class action with Slater &amp; Gordon. The settlement is subject to Court approval, as is usual in class actions," said GPT today in a statement.


"GPT has maintained its position that it complied with disclosure requirements in 2008 – the settlement will mean that the litigation is now resolved, including any possible appeals.

"As stated previously, claims of this nature were insured. GPT’s share of total costs associated with the case and the settlement is not material, and has been fully provided for in previous years," says GPT.
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GPT settles Slater & Gordon class action dispute with $75m pay out to investors

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Only 10-year government bonds will deliver poorer returns than residential investment property, suggests AMP Capital chief economist Shane Oliver in his latest commentary piece following yesterday’s decision by the RBA to cut the cash rate to 2.75%.
Yesterday, Michael O'Neill chief executive of National Seniors, the consumer lobby group for older Australians complained that the cut in the cash rate would “come as a blow for seniors living off simple investments such as term deposits”.
But it could be property investors relying on income from their investment properties that could be worse off.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2013/05/shaneolivermay8one.gif"><img src="/images/stories/2013/05/shaneolivermay8onethumb.gif"></a>
 In the current low interest rate environment, Oliver says that housing rental yields are “relatively low at around 4%, less once allowing for costs".
And while he says house prices are likely to rise over the next year or two, returns on residential property are likely to be “constrained by still high price to income ratios”.
Oliver expects average rental yields on investment property to fall to around 3%.
“This means the desire for better performing investments and specifically higher yielding investments will remain,” he says.
Rather than buy a residential property, investors could consider commercial property held in unlisted property trusts, where average returns are around 7%.
“Commercial property (office, retail and industrial) continues to offer relatively attractive income yields, particularly for unlisted property,” says Oliver. 
Recent unlisted property trust offerings have been higher than the average 7% yield.
The latest offer from fund manager Centuria has a forecast distribution of 8% on its 10 Spring Street Fund, which will be acquiring the 10 Spring Street office tower in the Sydney CBD.
<a target="_blank" href="/news">Centuria’s 175 Castlereagh Fund</a>, which closed oversubscribed, offered a return 9%.
If not commercial property then Australian shares, listed property trusts (REITS), Australian corporate bonds and even 12 month term deposits may be a better options than residential property.
“Australian shares have rallied strongly over the last year which has seen average dividend yields decline.
“But once allowing for franking credits, the dividend yield on shares at around 5.5% remains well above the yield available on term deposits.
“Lower interest rates will also help boost the outlook for profits and may help by lowering the value of the Australian dollar taking pressure off trade exposed companies. The broad rising trend in the share market is likely to continue
“Corporate bond yields have already fallen a long way, but their yields remain above term deposit rates and are a good alternative,” says Oliver.
He says sovereign bond yields are likely to remain low making them a “relatively unattractive investment in terms of return potential”.
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Commercial property and shares offer better returns than residential property yields: AMP’s Shane Oliver

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Westpac chief economist Bill Evans is tipping the cash rate to fall by 25 basis points to 2.5% in June and then to eventually bottom out at 2% by the first quarter of 2014.
Following the June rate cut, he expects two further rate cuts will be required in the December quarter of this year and March quarter of next year.
"That would see the cash rate bottom out at 2% from its current 2.75%. Having driven rates down to that level we expect rates to remain on hold through the remainder of 2014," he says.
Evans was the first major economist to correctly tip <a href="/news">the cash rate to fall to 2.75%.</a>
"There are ample precedents for a May/June move. Over the last 10 years the Bank has moved rates on four occasions in May with two of those occasions being followed up in June," says Evans in his latest market commentary. 
Evans expects that from June, the RBA will be "patient to assess the impact on domestic demand of the low rates".
"However by year's end it will become clear that further stimulus will be required to offset the impact of a softening world economy while the response to the low rates in the domestic economy will be disappointing," he says.
Evans says the really key new developments over the last few weeks have been "evidence of an even lower than expected trajectory for inflation and, as pointed out in this note, a Reserve Bank that is clearly open to further action". 
"Given this scenario we think that the most likely policy option is a follow up rate cut in June of 25 basis points which will be implemented for the same reasons as we have seen today complemented by further evidence of softening confidence and weak business investment. 
"We have also always argued that our assessment of the global economy is more subdued than the consensus. The IMF is expecting 4% world growth in 2014 – we are closer to 3%.
"For Australia's terms of trade, the peak to trough decline in the 2011–12 period was 17%, while we forecast a 2013–14 decline in the region of 10%. We have long maintained that from a world growth perspective, 2014 will feel like 2012," he says.
Furthermore, Evans says the "threat of a disruptive event in Europe remains ever present". 
"The US story does not convince us. We confidently expect that the US Federal Reserve will persist with its quantitative easing policy through most of 2014. 
"China has already begun the process of recalibrating its monetary and real estate policy settings and the support it received from the export sector in the first quarter is already receding.
"Indian domestic demand is flagging badly and the required policy support has not been adequate. Japan is something of a bright spot, but its gross acceleration will far exceed the net from a global growth perspective as it takes back market share," he says.  
"Our specific profile for the Australian dollar, which had incorporated a steady cash rate of 2.75% (with downside risks) and a softening world economy, saw the Australian dollar back at US$0.97 by June next year, partially due to a gradual narrowing of the overvaluation premium. 
"With our lower RBA rate profile there is some modest room for further moderation in the fair value of the Australian dollar with our June 2014 target being lowered to US$ 0.96. However, the key to a more significant fall in the Australian dollar is a more marked reduction in that over valuation premium – something that lies essentially outside the RBA's influence," he says.
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Westpac tips June rate cut and cash rate to fall to 2% by March 2014

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AMP Capital chief economist Shane Oliver is tipping the cash rate to fall to 2.5% noting that the housing market in particular has failed to respond to rate cuts in the manner it has done in previous easing cycles.
Figures compiled by Oliver show that house prices, building approvals, retail sales and employment growth have responded in a "modest" manner to the current easing cycle 18 months on from the first rate cut in November 2011 in comparison with much swifter responses to previous easing cycles  in 1996, 2001 and 2008 over the same time frame.
As the table below shows, home prices are currently up just 1.9% since November 2011.
This compares with an 18% increase in house prices 18 months after the RBA cut the cash rate by 50 basis points in July 1996.
They were up 30% a year-and-a-half after the start of 2001 easing cycle and 11% a year-and-a-half after the big GFC easing cycle started in September 2008.
Key variables, 18 months into rate cutting cycles
<table width="347" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td width="111" valign="top">
Variable
</td>
<td width="47" valign="top">
July 1996
</td>
<td width="47" valign="top">
Feb 2001
</td>
<td width="47" valign="top">
Sept 2008
</td>
<td width="47" valign="top">
Avg
</td>
<td width="47" valign="top">
Latest
</td>
</tr>
<tr>
<td width="111" valign="top">
NAB biz confidence,
index level
</td>
<td width="47" valign="top">
+5.7
</td>
<td width="47" valign="top">
+12.6
</td>
<td width="47" valign="top">
+16
</td>
<td width="47" valign="top">
+11.4
</td>
<td width="47" valign="top">
+2
</td>
</tr>
<tr>
<td width="111" valign="top">
Consumer conf, index level
</td>
<td width="47" valign="top">
101.7
</td>
<td width="47" valign="top">
105.6
</td>
<td width="47" valign="top">
117.3
</td>
<td width="47" valign="top">
108.2
</td>
<td width="47" valign="top">
104.9
</td>
</tr>
<tr>
<td width="111" valign="top">
Retail sales, % gain since first cut
</td>
<td width="47" valign="top">
+5%
</td>
<td width="47" valign="top">
+9.8%
</td>
<td width="47" valign="top">
+8.4%
</td>
<td width="47" valign="top">
+7.7%
</td>
<td width="47" valign="top">
+4.5%
</td>
</tr>
<tr>
<td width="111" valign="top">
Home approvals, % gain since first cut
</td>
<td width="47" valign="top">
+18%
</td>
<td width="47" valign="top">
+60%
</td>
<td width="47" valign="top">
+35%
</td>
<td width="47" valign="top">
+38%
</td>
<td width="47" valign="top">
+5%
</td>
</tr>
<tr>
<td width="111" valign="top">
Auction clear rate, % – Syd, 4 wk avg
</td>
<td width="47" valign="top">
NA
</td>
<td width="47" valign="top">
NA
</td>
<td width="47" valign="top">
70.6%
</td>
<td width="47" valign="top">
NA
</td>
<td width="47" valign="top">
73.6%
</td>
</tr>
<tr>
<td width="111" valign="top">
Auction clear rate, % – Melb, 4 wk avg
</td>
<td width="47" valign="top">
NA
</td>
<td width="47" valign="top">
NA
</td>
<td width="47" valign="top">
78.7%
</td>
<td width="47" valign="top">
NA
</td>
<td width="47" valign="top">
68.9%
</td>
</tr>
<tr>
<td width="111" valign="top">
Home prices, % gain since first cut
</td>
<td width="47" valign="top">
+13%
</td>
<td width="47" valign="top">
+30%
</td>
<td width="47" valign="top">
+11%
</td>
<td width="47" valign="top">
+18%
</td>
<td width="47" valign="top">
+1.9%
</td>
</tr>
<tr>
<td width="111" valign="top">
Employment, % gain since first cut
</td>
<td width="47" valign="top">
+2.1%
</td>
<td width="47" valign="top">
+2.4%
</td>
<td width="47" valign="top">
+1.5%
</td>
<td width="47" valign="top">
+2.0%
</td>
<td width="47" valign="top">
+1.5%
</td>
</tr>
<tr>
<td width="111" valign="top">
Private credit, % gain since first cut
</td>
<td width="47" valign="top">
+14%
</td>
<td width="47" valign="top">
+16%
</td>
<td width="47" valign="top">
+2.5%
</td>
<td width="47" valign="top">
+11%
</td>
<td width="47" valign="top">
+4.5%
</td>
</tr>
</tbody></table>
Source: NAB; Westpac/Melbourne Institute; ABS; Australian Property Monitors; RP Data/Rismark, RBA, AMP Capital 
“The basic issue in Australia is that the slowdown in mining investment growth is now looming and we need to see a pick-up in non-mining activity to fill the gap in terms of the contribution to GDP growth,” says Oliver. 
“While this was never expected to occur smoothly, the evidence to date points in the direction of non-mining activity not picking up quickly enough.
To be sure interest rate cuts have got some traction: the home buyer market has improved with increased sales, auction clearances and house prices, consumer confidence is up and retail sales are up. 
“But the response has been tentative and weak. 
“Apart from auction clearance rates, which look solid, all of these indicators are currently below the average level they attained this far into past easing cycles. 
“Importantly, he points out that while consumer confidence has picked up, business confidence remains subdued. 
“Retail sales picked up in January and February but the level of sales is still well below where it would normally be this far into an easing.
“It’s the same story with dwelling approvals which are off their lows but haven’t seen the average 38% gain they would have normally seen by now. 
“Employment growth is also lagging,” he says.
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Cash rate to fall to 2.5% as housing and other non-mining sectors fail to pick-up “quickly enough”: Shane Oliver

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Westpac chief economist Bill Evans got the timing of yesterday's cash rate cut wrong – tipping June instead of May – but believes a “further move could still possible”.
Evans, the first major bank economist to correctly tip the RBA to begin its easing cycle in November 2011, was also the first to forecast that the cash rate would fall to 2.75%, doing so <a target="_blank" href="https://www.propertyobserver.com.au/news/rba-to-cut-rates-by-25-basis-points-next-week-with-three-more-to-come-taking-cash-rate-to-reach-275-by-year-end-westpac/2012053154924">back in May last year.</a>
“The overnight cash rate has now reached 2.75% which was the target we nominated in May last year when the consensus view was that rates would bottom out at 3.25 to 3.5%," said Evans in a note following the RBA's decision yesterday to cut the cash rate. “We have been reluctant to moderate that target although have argued consistently that the risks have been to the downside and have intensified over the last month. In light of yesterday's decision we are currently evaluating the outlook," he says.
"We have consistently argued that 2.75% would be the low point but that risks are to the downside for the cash rate. We are currently assessing that outlook," he says.
The bank is tipping the cash rate to fall again by 25 basis points to 2.5% in June and then to eventually bottom out at 2% by the first quarter of 2014.
Evans says the governor’s statement indicates further easing may be on the cards.
“[Yesterday’s] statement by the governor points out that a further move is possible.
“The final paragraph of the statement makes the following point:
'The Board has previously noted that the inflation outlook would afford scope to ease further, should that be necessary to support demand. At today's meeting the Board decided to use some of that scope. It judged that a further decline in the cash rate was appropriate to encourage sustainable growth in the economy, consistent with achieving the inflation target.'
Evan said it was also significant that the Governor did not choose to use the term: 'The Board will continue to assess the outlook and adjust policy as needed to foster sustainable growth in demand and inflation outcomes consistent with the target over time.' Evans has argued since May last year that a drop in the cash rate to 2.75% would not result in bank variable rates at equal record lows, given that previous rate cuts have not been passed on in full, while there has also been small increases in variable mortgage rates outside of an official RBA increase.
Evans highlighted this point again in his commentary following yesterday’s decision.
“It is significant that while the cash rate has now been reduced to 2.75%, below the 2009 lows, borrowing rates are described as "approaching previous lows".
“This is somewhat of an overstatement given that official RBA statistics nominate the low point on the standard variable rate at 5.75% in May 2009 compared to 6.45% before today's decision," he says.
He adds that headline mortgage rates are "complicated by special discounts which banks consistently offer” similar to a point made by <a target="_blank" href="/news">Commonwealth Bank CEO Ian Narev</a> in February, when he said that no borrower paid the bank’s standard variable rate -  every borrower’s rate is set relative to this benchmark rate.
Were ANZ to pass on 25 basis points on Friday as the three other major banks have done already, the average standard variable rate of the big four would be 6.17% - still someway off the May 2009 record low.
Evans says the argument for the RBA to consider a further rate cut are contained in the post-decision statement.
"The description of the domestic economy has taken a step down from previous statements. Growth in the second half of 2012 is now described as 'a bit below trend' and 2013 to date is described similarly," he says.
"Employment is assessed as not being strong enough to absorb the labour force explaining the rise in the unemployment rate and probably indicating further increases in the future.The peak in mining investment is assessed as being in 2013 while the demand for credit remains relatively subdued.
"On the positive side, consumption is described as 'strengthening' and there are prospects for some increase in non-mining investment. The description of the all important housing market is fairly downbeat with dwelling investment described as 'modest firming' and asset values 'have risen'. "Of course the recent unexpectedly low print on inflation is assessed as 'a little lower than expected' while labour costs have moderated slightly and productivity growth appears to be improving. "Finally the governor once again points out the unusual elevated level of the exchange rate given that export prices and interest rates have fallen markedly over the last 18 months with the exchange rate remaining relatively steady," Evans says. 
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Scope for more rate cuts says Westpac’s Bill Evans, the first to tip a 2.75% cash rate

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The appeal of ungainly industrial property for private investors remains high with a warehouse/office with long term tenants at Bentleigh East in Melbourne’s south-east selling at auction for $1.115 million.

The property at <a href="https://www.commercialrealestate.com.au/property/2010363834/for-sale/vic/bentleigh-east/industrial-warehouse" target="_blank">2 Ardena Court, Bentleigh East</a>, was sold by Ray White Commercial Oakleigh’s Ryan Amler and George Kelepouris on behalf of an undisclosed vendor. 
Amler said the industrial property on a total land area of approximately 1800 square metres and currently leased for $65,000 per annum net was sold to a local investor with a yield of 6%. 
There were more than 30 enquiries for the property and three registered bidders at the auction.
Tenents recently commenced a new five by five year lease.
The property included a large clear span warehouse and well-appointed office/showroom with a building area of approximately 1200 square metres.
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Warehouse appeal for investors as Bentleigh East showroom sells on 6% yield

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Architect firm Hassell has relocated its Sydney studios from The Rocks to a new studio at the historic Walsh Bay Pier 8/9, near Barangaroo, where it will work on the redesign of the $2.5 billion Darling Harbour exhibition centre among other Sydney projects.
The new studio is in historic Pier 8/9 on the harbour’s edge off Hickson Road - adjacent to Barangaroo Headland Park, is in the heart of the emerging Walsh Bay creative industries community.
Businesses renting premises nearby include search engine Yahoo, global architect firm Grimshaw, advertising agent Leo Burnett and visual effects studio Method Studios.
Pier 8/9 was built in 1914 to store and load wool onto ships bound for Europe.
The rent has not been disclosed.
A 329-square-metre space on <a href="https://www.realcommercial.com.au/property-offices-nsw-millers+point-500508471" target="_blank">Hickson Road in Walsh Bay</a> is currently being advertised at $575 per square metre plus GST.
The new Hassell studio has a large double height creative hub that "reveals the historic fabric and function of the building while accommodating interaction, model making, meeting and forum spaces".
This space will facilitate everything from incidental get togethers,to formal presentations and even performances for larger groups.
The main studio space on the mezzanine level overlooks the hub, placing Hassell’s design process on display, visible from both the entry below and throughout the large column free workspaces.
Hassell's current projects include Darling Harbour Live - the redesign of the convention, exhibition and entertainment precinct, a new glasshouse and tropical centre at Sydney’s Botanic Garden, the new light rail project in Sydney’s CBD and south eastern suburbs, and several mixed use projects within the city and cityfringe.
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Architects Hassell relocate from The Rocks to historic Walsh Bay pier

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An unnamed “national financial institution” has hired Colliers International to find 22 prominent retail locations to lease on high streets stretching from Kempsey on the Mid North Coast region of NSW all the way to Geelong in Victoria.
Seemingly bucking the trend of struggling suburban high streets and an overall subdued retail environment the unnamed financial institution is seeking half of the retail spaces around Sydney with 11 shopfronts sought in suburbs including Belmore, Five Dock, Potts Point, Rozelle  and Surry Hills.
The campaign is being handled by Colliers International agent Mable Lee who said her client was seeking retail spaces in "heavy traffic areas" to offer financial services.
<img src="/images/stories/2013/05/colliersmay9one.jpg" width="470" height="255" alt="colliersmay9one">
Lee says she cannot disclose the name of her client but tells Property Observer a few submissions have been received since the campaign launched a few weeks ago.
The advertisement says the institution is seeking “strong retail locations” with “good exposure and street frontages” measuring in size from 120 square metres to 250 square metres.
A number of locations in the advertisement include specific street requests including for a shop on Elizabeth Street in Surry Hills.
Current real estate listings show just a handful of retail space available to lease on Elizabeth Street including these 220 square metre premises at <a href="https://www.commercialrealestate.com.au/property/8268201/for-lease/nsw/surry-hills/retail" target="_blank">491 to 493 Elizabeth Street</a>.
In Victoria, the institution is seeking shopfronts on Flinders Street in the Melbourne CBD and on St Kilda Road on the fringe of the city as well as in Hawthorn and Clifton Hill along with locations in Mornington and Whittlesea.
The full list of 22 locations is:
Regional NSW
Kempsey (Mid North Coast)
Blaxland (Blue Mountains)
Umina Beach (Central Coast)
Nowra (South Coast)
Sydney
Belmore
Forestville
Five Dock
Gladesville
Gymea
Kingsford
Oatley
Padstow
Potts Point
Rozelle
Surrey Hills (Elizabeth Street)
Regional Victoria
Whittlesea
Geelong West
Mornington
Melbourne
Melbourne CBD (Flinders Street)
Melbourne (St Kilda Road)
Clifton Hill
Hawthorn
Do you know who the mystery national financial institution is? If so, send an email to <a href="mailto:news@propertyobserver.com.au">news@propertyobserver.com.au</a>
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Mystery financial institution embarks on east coast streetfront retail expansion

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Westpac has joined the Commonwealth Bank and NAB by passing on the full rate cut to its borrowers, though they will have to wait a week longer for lower monthly repayments.
The bank's headline standard variable mortgage will be cut by 0.25% to 6.26% effective on May 20.
Both the Commonwealth Bank and NAB will pass on their full rate cuts on May 13.
The decision by three of the big four to pass on rate cut in full mean there has been no change in the rankings from lowest to highest standard variable rates, excluding ANZ, which only announces its decision on the second friday of the month, May 10.
Were ANZ to pass on 25 basis points to borrowers, its standard variable rate would be 6.15% meaning:
<ul>
<li>NAB - 6.13% standard variable rate (May 13)</li>
<li>CBA - 6.15% standard variable rate (May 13)</li>
<li>ANZ - 6.15% likely standard variable rate (announcement on May 10)</li>
<li>Westpac - 6.26% standard variable rate (May 20)</li>
</ul>
Westpac package home loan customers who receive a minimum 0.7% package discount on the headline standard variable mortgage will see their new effective rate fall to 5.56% per annum.
The reduction in home loan rates will save homeowners $48 a month or $576 a year in total monthly repayments on an average mortgage of $300,000.
“With headline mortgage rates now at their lowest level for three and a half years, we know this reduction is the kind of incentive our customers are looking for to make the most of the opportunities available in the housing market," says Jason Yetton, group executive of Westpac retail and business banking.
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Westpac passes on full rate cut to offer 6.26% standard variable rate, but only from May 20

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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