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Mortgage broker alliances helped Macquarie Group grow its Australian mortgage portfolio by $1 billion (9%) to reach $11.8 billion for the year to March 31, the investment bank has revealed in its annual results today.
Its home loans are distributed through John Symond’s Aussie Home Loans business, AFG, Vow, Mortgage Choice and Mark Bouris’s Yellow Brick Road after it formed a mortgage distribution alliance with the franchise group in November.
This compares to just <a href="/news">1% growth in Westpac’s mortgage book</a> over the six month period to March 31, also announced today.
<a href="/news">ANZ grew its mortgage book by 2%</a> over the same six-month time frame.
Macquarie reported a 17% rise in net profit to $851 million in the year ended March 31, driven by improved market conditions and reduced costs.
This is the first time profits have risen in three years.
The growth was assisted by the bank offering a 1.01 percentage point discount off the standard variable rate over the life of its home loans through its third-party distribution channels.
Macquarie’s banking and financial services group paid $86 million in fees and commission to mortgage originators and mortgage brokers to distribute its home loan offerings over the course of the year.
It also acquired a stake in listed non-bank lender Homeloans Limited in April last year.
Macquarie will pay shareholders a full-year dividend of $2 per share.
Chief executive Nicholas Moore said global market conditions had improved generally during the year and together with “strong cost-controls across the group leading to the improved result”.
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lschlesinger-FZcF9M3vE6

Branchless Macquarie grows its mortgage book by 9% through brokers 

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Nearly a quarter (24%) of Westpac customers fixed their home loan rate in the six months to March 31, the latest interim results reveal.
This was up from just 13% in the previous six month period.
The jump in fixed-rate demand came after Westpac cut its two year fixed-rate to 4.99% for a short period between February and March, the first major bank to offer a sub-5% fixed-rate since September 2009.
Lending to investors picked up to 45.6% and loans to first-home buyers fell marginally to 11.1%.
Borrowers stumped up a hefty 30% deposit on average for a Westpac mortgage.
<img alt="westpac_porfolio" height="484" width="454" src="/images/stories/april23tivoli/westpac_porfolio.jpg">
1 Represents Westfield Retail Bank brands (WRBB) and St.George (including RAMS). 2 Flow is all new mortgage originations total settled amount originated during the 6 month period ended 31 March 2013 and includes RAMS. 3. Excludes RAMS. 4. Dynamic LVR represents the loan-to-value ratio taking into account the current outstanding loan balance, changes in security value and other loan adjustments. 5 Property valuation source Australian Property Monitors. 6. Average LVR of new loans is based on rolling 12 month window for each year end period. 7. Customer loans ahead on payments exclude equity/line of credit products as there are no scheduled principal payments. 8 Mortgage insurance claims 1H13 $10m (2H12 $17m and 1H12 $13m). 9 ABA Cannex August 2012
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A quarter of new Westpac mortgages fixed as borrowers stump up 30% deposits: anatomy of its $321 billion home loan book

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Westpac has reported a 10% rise in first-half cash earnings to $3.52 billion despite what it called “challenging" conditions for the six months to March 31.
It is the second of the big four banks to release financial results in the current reporting season, following <a href="/news">ANZ beating analysts’ expectation</a> and posting a 10% rise in first-half cash profit to $3.2 billion for the six months to March 31.
Westpac mortgage lending lifted just 1% over the six month period with particurlarly strong growth through its Bank of Melbourne brand, which has aggressively promoted its discounted home loans.
The report notes that growth in new lending was “partly offset by high run-off as customers use lower rates to repay faster”.
"Including mortgage offset account balances, 70% of customers are ahead of scheduled payments, with 20% of these being more than two years ahead," says Westpac.
"Excluding mortgage offset account balances, 56% of Australian mortgage customers are ahead of scheduled payments."
The bank strengthened its balance sheet with customer deposits up 12% rising from 67.6% to 69% of loans.
The bank has a $321.9 billion housing loan book of which 48% are owner occupier mortgages, 42% are investment loans and 10% portfolio/line of credit loans.
First-home buyers make up 12% of its mortgage book.
Other mortgage results:
<ul>
<li>90+ days delinquencies remain at low levels at 0.58%, up 6 basis points on the previous six months.</li>
<li>30+ days delinquencies are 1.43%, up 24 basis points "reflecting normal seasonal trends"</li>
<li>248 property repossessed as of March 2013, down from 289 at September 2012 and 423 at March 2012</li>
<li>Portfolio losses total $52 million or 0.03% of the mortgage portfolio</li>
</ul>
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Westpac earnings rise 10% but mortgage lending slows as borrowers pay off loans faster

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Australian property investors thinking of investing in the US, but perhaps considering it too risky, can look before they buy courtesy of a series of walking tour guides provided by Dixon Advisory’s ASX-listed US Masters Residential Property Fund
The walking tour guides, complete with neighbourhood histories, landmarks and details of fund investments, provide a detailed insight into a number of markets around Manhattan including Brooklyn and Harlem.
Investors can tap into the knowledge provided by the fund’s US-based team but with an Australian investment slant.
The fund has to date spent $240 million purchasing 475 freestanding properties – mostly sub-divided houses in Downtown Jersey city, Brooklyn and Harlem – since launching in mid-2011, renovated them and rented them out as 1,063 separate apartments.
It has also acquired 15 apartment complexes.
The funds have been raised from <a target="_blank" href="https://www.propertyobserver.com.au/overseas/dixon-advisory-attracts-815-more-aussies-to-take-a-punt-on-us-housing-investment/2011112952603">Dixon Advisory’s investor client base</a> with another $50 million capital raising launched in April.
Harlem may seem an unlikely investment location, but the fund has identified it as a region with "great potential".
In January it purchased a fully renovated five-storey limestone mansion at St Nicholas Avenue &amp; West 146th Street in Harlem for US$1.82 million, which has two apartments (pictured below) bringing in estimated combined monthly rent of US$9,000 – an estimated net annual yield of 4%.
<img src="/images/stories/2013/05/dixonmay3one.jpg" width="400" height="575" alt="dixonmay3one">
The Harlem walking tour begins just one street down from this property at the 145th Street subway station and concludes at 137th Street with a zigzagging walk past fund investments and historical and cultural landmarks.
“Harlem has been home to many races and ethnic groups including the Dutch, Irish German, Italian, Latin Americans and Jewish communities,” says the walking guide, which explains that Harlem was settled in 1658 but was mainly farmland for the next 200 years until the expansion of the New York population.
 
<hr class="system-pagebreak">
Elevated railway lines were extended to Harlem in the 1880s and the first subway line completed under Lenox Avenue in 1904 resulting in the building of hundreds of tenement buildings.
The first African American migration to Harlem began in the 1890s with the guide telling the story of Phillip A. Payton, real estate agent and entrepreneur, who approached Harlem landlords with the idea of allowing African Americans to partially rent in their building  and is considered the father of “Black Harlem”.
Investors can read a short history of Harlem taking in the 1930s depression era, Harlem's slide into crime and poverty in the 1970s with the wholesale abandonment of many building, before a rapid period of gentrification and rising property values from the 1990s onwards.
The tour includes 12 stops, with the first half taking in its four property investments to date.
<img alt="dixonmay3three" height="316" width="400" src="/images/stories/2013/05/dixonmay3three.jpg">
<img alt="dixonmay3four" height="317" width="400" src="/images/stories/2013/05/dixonmay3four.jpg">
Stop 1 is the fund’s $1.8 million 722 St Nicholas Avenue investment, a five-storey mansion built in the 1920s close to Jackie Robinson park (the first African American to play in Major League Baseball, winning the World Series with the Brooklyn Dodgers in 1955), which offers two apartments (a two-bedroom and 3.5 bedroom) bringing in monthly rent of $9,000.
 
<hr class="system-pagebreak">
Second stop is an 1890s Thayer and Robinson Victorian Romanesque mansion at 719 St Nicholas Avenue (pictured below), acquired by the fund for $1.28 million. It has three apartments expected to bring in monthly rent of $13,400 on a yield of 4.9% currently being renovated by Dixon Projects. The guide notes that Nicholas Avenue is lined with “majestic historic Brownstone residences”.
<img alt="dixonmay3two" height="555" width="400" src="/images/stories/2013/05/dixonmay3two.jpg">
Next door at 721 St Nicholas Avenue (pictured below) is another historic fund purchase offering four apartments and with an expected yield of 6.3% based on monthly rent of $14,500.
<img src="/images/stories/2013/05/dixonmay3four1.jpg" width="400" height="653" alt="dixonmay3four1">
 
<hr class="system-pagebreak">
The final property investment included in the tour is a grand 1920s-built townhouse at 523 West 141st Street bought for $1.425 million and returning $9,600 per month from four apartments on a yield of 4.7%.
<img src="/images/stories/2013/05/dixonmay3six.jpg" width="400" height="571" alt="dixonmay3six">
The remainder of the tour takes in Harlem landmarks including the  Alexander Hamilton Grange National Memorial, the home of West Harlem’s founding father and an aid to George Washington during the American Revolution, who was fatally wounded in a duel in 1804, the Ivy League Columbia University dating back to 1754 with more Nobel Prize laureates than any other university in the world, the General Grant National Memorial, the Brownstone-lined  Doctors Row (Harlem’s answer to London’s Harley Street) and other noteworthy places.
The Dixon Advisory guide also includes walking tours showcasing its property acquisitions in in Downtown Jersey City (New Jersey), Hudson County (New Jersey) and Brooklyn.
The guide is available to download for free on the <a target="_blank" href="https://usmastersresidential.com.au/downloads/URF-WalkingTourPack130502.pdf">US Masters fund website.</a>
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Thinking of buying in Harlem? Dixon Advisory provides Australian investors with tourist-style walking tour guide 

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It will be a close call, but the Reserve Bank will leave the cash rate on hold at its May 7 monetary policy meeting on Tuesday, says HSBC Australia and New Zealand chief economist Paul Bloxham.
Bloxham says inflation is low enough for the RBA to consider a rate cut: but at the same time “demand is lifting, albeit modestly”.
“This month confirmed that inflation is low, which means the RBA has room to cut rates further. But interest rates are already low and are gaining some traction, so they may not feel they need to,” writes Bloxham in his latest RBA Observer report.
“This is why we expect them to leave rates on hold next week.
“But it’s a close call. Local and global data have softened in the past month. This will leave the RBA asking whether they have delivered enough stimulus, or, if more is needed?”
Bloxham notes yesterday’s <a target="_blank" href="https://www.propertyobserver.com.au/residential/dwelling-approvals-fall-55-in-march-led-by-nsw-and-victoria-abs/2013050260946?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news">disappointing March building approvals data</a>, where approvals fell 5.5% in seasonally-adjusted terms and 1.2% in less volatile trend terms, led by falls in NSW and Victoria.
“Locally, the sectors that were responding to lower interest rates took a bit of a pause in the past month.
“Building approvals fell and housing prices and consumer sentiment eased back a bit. They are still well above their troughs, but are not racing away.
“The labour market also remains loose. Despite concerns about global commodity prices, Australia’s commodity price index remains at high levels with iron ore prices holding up well.
“We think they will hold steady next week and wait for further evidence that low rates are gaining traction. But, of course, with inflation low, there is always a risk that they cut,” he says.
Bloxham expects the cash rate to remain on hold over the remainder of the year, with a hike “pencilled in for early 2014”.
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A close call as housing market pauses, but RBA likely to hold cash rate next week: HSBC’s Paul Bloxham

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Vendors should not follow the herd and wait until spring to sell their homes, according to a survey of 25 real estate professionals who will be speaking at a series of property conference organised by Ideas Exchange, which begin in Melbourne today. 
Only 10% of respondents said they would recommend that vendors wait until the spring season with 90% recommending that vendors “Sell it whenever is convenient for you.” 
And respondents did not believe that vendors earned more if a property was sold during the busiest time of the year with 90% of respondents saying they believed you earned “about the same". 
A smaller, but overwhelming majority - 70% of respondents - believe that houses sold as fast at spring as during other times of the year, with only 10% saying they sold faster during spring.
Leanne Howard, managing director of the Real Estate Project, which owns Ideas Exchange, said the results show that every month can be an “equally good” time to sell. 
“This is valuable information for any agent meeting with a vendor this winter, and for any vendor meeting with an agent,” she says.
BradfieldCleary director and auctioneer Bob Guth agrees with these sentiments, blogging that for many years “we have achieved excellent results during winter months”
He quotes an article written by Carolyn Boyd from Talking Property, who says that arrival of cold weather in southern Australia does not mean people stop looking to buy. 
Alex Schiavo, director of Kay &amp; Burton South Yarra and Albert Park in Melbourne, is another estate agent who believes winter is a great time to sell based on the dynamics of supply and demand. 
“In winter there is always a lot less property available and we are still getting great results," he says. 
Cameron Deal from Infolio Property Advisors <a href="https://www.propertyobserver.com.au/https://www.propertyobserver.com.au/news/why-selling-property-in-winter-and-buying-in-spring-makes-sense/2012080155808" target="_blank">told Melbourne Property TV last autumn</a> that a lot of property transacted through winter. 
“It’s sometimes better for a vendor to sell in winter because there’s less competition amongst other properties,” he says. 
A similar sentiment is echoed by Fletchers director Tim Fletcher, who says  if you decide to sell your most important asset over the winter period you’ll join a small number of people who are selling because most people either do it over autumn or spring.”
“So I think it’s a smart move to think about selling when there are fewer properties on the market.”
Information on the Ideas Exchange series of conferences in Melbourne, Brisbane and Sydney can be <a href="https://therealestateproject.com.au/ideas-exchange-2013/" target="_blank">found here.</a>
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Winter may be a better time than spring to sell your property: survey

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Private developers are being asked to submit proposals for ways to develop the Jolimont rail yards site known as Federation Square East on the north bank of the Yarra, where proposals date back to the 1970s.
The site is bounded by Federation Square to the west, Flinders Street to the north, Batman Avenue to the east and Birrarung Marr to the south and would require the building of a roof over the railway lines that currently take up the majority (2.3 hectares) of the 3.3 hectare site.
<img src="/images/stories/2013/05/fedsquaremay3four.jpg" width="470" height="350" alt="fedsquaremay3four">
The remaining hectare is currently used for car parking and associated uses.
“The Coalition Government is looking to harness the innovation and creativity of the private sector for proposals to develop this important site,” announced Victorian minister for major projects David Hodgett.
The state government is seeking a proposal for a “viable landmark development” that could result in a similar public-private partnership (PPP) structure that is facilitating the $2.5 billion redevelopment of the Darling Harbour convention centre with Lend Lease leading the project.
<img src="/images/stories/2013/05/fedsquaremay3three.jpg" width="470" height="247" alt="fedsquaremay3three">
The Victorian government is undertaking a world-wide search for proposals to transform what it calls a “black hole in the city landscape to a mixed-use precinct with a focus on civic functionality and improved connections with its surrounding areas”.
Hodgett acknowledges concerns expressed in the media that the project may prove too costly to ever complete.
A budget of $680 million has been suggested with $450 million coming from the state government.
“The Coalition Government acknowledges that there are challenges to developing this site in terms of cost and construction. We believe that industry is best placed to come up with innovative, value for money solutions.
“The aim is to find out what is possible and how much interest there is in developing the site. We do not have a predetermined outcome in mind.
“The responses provided will determine if there is sufficient appetite from the market and whether any project is viable enough to proceed further,” Hodgett says.
Both sides of state politics have failed to come up with a viable development proposal.
In 1979 Victorian Liberal premier Rupert Hamer announced a $100,000 competition to roof the Jolimont rail yards and bring international attention to the city. The competition committee, chaired by Ron Walker, chose 48 finalists from around 2,300 entries.
The winning designs went on public display in January 1980.
No single winner was chosen, the committee recommending a composite scheme featuring a large tower in a garden setting.
According to a 2001 document prepared by Melbourne historian Andrew Brown-May “critics lampooned the competition as an ill-conceived waste of time and resources, and each of the 48 finalists received a little over $2000 prize money.
“Judging panel member Professor Patrick McCaughey was appalled by the low standard of entries, describing the winners as demonstrations of 'a megalomania that makes the pyramids look like pimples'.”
Submissions included hanging gardens, an underwater gallery, a free-standing escalator, a series of 12 transparent arches, a solar-powered earth beam, a Freedom Bird Park, and a Time Tower.
In 2010, John Brumby’s Labor government came up with a $680 million proposal prepared by architectural firm LAB (designers of the Federation Square fractal building) including a plazas, parklands, schools and hotels built on a platform above the train lines.
The proposal (pictured below) was based on Chicago's Millennium Park on Lake Michigan.
<img src="/images/stories/2013/05/fedsquarelabarchmay3one.jpg" width="470" height="443" alt="fedsquarelabarchmay3one">
This proposal was lambasted by former premier Ted Bailleu, who, while in opposition, called it nothing more than a “tiara on top of the car park”.
Submission for the development close on July 18 with submissions to be made to <a target="_blank" href="https://www.mpv.vic.gov.au">Major Projects Victoria</a> 
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Victorian government turns to private developers to fill Federation Square East “black hole”

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The value of investment loans written in February surged to their highest level since the GFC, according to RateCity.com.au analysis of ABS housing finance data.
Investors borrowed $7.9 billion for property investment purchases in February 2013.
This is the highest value of investment loans written in one month since January 2008.
The previous highest value of investment loans written in one month was in June 2007, with over $9.1 billion, according to <a href="https://www.ratecity.com.au/" target="_blank">RateCity</a>.
According to RateCity spokesperson Michelle Hutchison, while the residential home loan market is a much bigger pool of money compared to investment loans – $13.9 billion compared to $7.9 billion – the growth rate in the former is a lot higher.
“In fact, the total value of investment loans grew three-times faster than residential loans (15.4% or $1.05 billion compared to 5.3% or $699 million),” she says.
Analysis of the RateCity.com.au database of home loan providers prepared for Property Observer shows that investors can source loans suitable for property investors starting from as low as 4.99%.
These are the cheapest advertised fixed and variable loans suitable for investment purposes currently on RateCity.com.au (May 3, 2013): 
RateCity’s top variable investment loans
<table style="width: 470px;" border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="143">
Company 
</td>
<td width="217">
Product 
</td>
<td width="151">
Rate
</td>
</tr>
<tr>
<td width="143">
loans.com.au
</td>
<td width="217">
Investment Blackboard Special (Purchase Only)
</td>
<td width="151">
4.99%
</td>
</tr>
<tr>
<td width="143">
State Custodians
</td>
<td width="217">
Investment Peak Performance Offset
</td>
<td width="151">
4.99%
</td>
</tr>
<tr>
<td width="143">
UBank
</td>
<td width="217">
Investment UHomeLoan (for refinancing)
</td>
<td width="151">
5.12%
</td>
</tr>
<tr>
<td width="143">
eMoney
</td>
<td width="217">
Investment Pro Pack 75
</td>
<td width="151">
5.20%
</td>
</tr>
<tr>
<td width="143">
iMortgage
</td>
<td width="217">
Investment Fusion ProPack Variable 75
</td>
<td width="151">
5.24%
</td>
</tr>
<tr>
<td width="143">
Pacific Mortgage Group
</td>
<td width="217">
Investment Variable
</td>
<td width="151">
5.27%
</td>
</tr>
<tr>
<td width="143">
Macquarie Bank
</td>
<td width="217">
Premium Investment Premium Variable 1000k+
</td>
<td width="151">
5.34%
</td>
</tr>
<tr>
<td width="143">
Rate Busters
</td>
<td width="217">
Investment Ultimate
</td>
<td width="151">
5.34%
</td>
</tr>
<tr>
<td width="143">
Newcastle Permanent
</td>
<td width="217">
Premium Plus Package Investment Premium Variable 250-499k
</td>
<td width="151">
5.37%
</td>
</tr>
<tr>
<td width="143">
HSBC
</td>
<td width="217">
Premier Investment Variable 1500k+
</td>
<td width="151">
5.40%
</td>
</tr>
</tbody></table>
RateCity’s top three-year fixed investment loans
<table border="0" cellspacing="0" cellpadding="0" style="width: 470px;"><tbody>
<tr>
<td width="143">
Company
</td>
<td width="217">
Product
</td>
<td width="151">
Rate
</td>
</tr>
<tr>
<td width="143">
ME Bank
</td>
<td width="217">
Investment SuperMember Fixed 3 years
</td>
<td width="151">
4.99%
</td>
</tr>
<tr>
<td width="143">
AMP Bank
</td>
<td width="217">
Affinity Package Investment Fixed 3 years 100k+
</td>
<td width="151">
5.04%
</td>
</tr>
<tr>
<td width="143">
A M O Group
</td>
<td width="217">
Investment Fixed 3 years
</td>
<td width="151">
5.09%
</td>
</tr>
<tr>
<td width="143">
iMortgage
</td>
<td width="217">
Investment Fusion Fixed 75 3 years
</td>
<td width="151">
5.09%
</td>
</tr>
<tr>
<td width="143">
ING DIRECT
</td>
<td width="217">
Investment Fixed 3 years
</td>
<td width="151">
5.09%
</td>
</tr>
<tr>
<td width="143">
CUA
</td>
<td width="217">
Investment Fixed 3 years
</td>
<td width="151">
5.10%
</td>
</tr>
<tr>
<td width="143">
RESI Mortgage Corp
</td>
<td width="217">
Investment FlexiFix Plus 75 3 years
</td>
<td width="151">
5.12%
</td>
</tr>
<tr>
<td width="143">
UBank
</td>
<td width="217">
Investment UHomeLoan Fixed (for refinancing) 3 years
</td>
<td width="151">
5.13%
</td>
</tr>
</tbody></table>
Source: RateCity.com.au, based on lowest advertised rates, available to the general public, conditions and fees apply.
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Demand for investor loans rises to highest level since GFC: RateCity.com.au

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The Gold Coast property market is expected to begin its recovery from  about 2015 in line with a seven year recovery cycle, according to Prodap Report author Bill Morris.
Morris expects a recovery in both house and unit prices as demand starts to exceed the supply of new housing stock and as significantly discounted liquidation unit stock is finally absorbed with the added boost of preparations for the 2018 Commonwealth Games boosting employment.
The lastest Prodap Report finds that the established housing market on the Gold Coast recovered strongly over the first three months of the year, but apartment prices continue to fall and are approaching their lowest average prices in a decade.
According to the report, the average Gold Coast house price rose from $515,941 to $554,263 (7.4%) in the March 2013 quarter, matching average prices in Brisbane ($550,000), despite a 27% drop in the volume of house sales. The average price was recorded from a sample of 589 sales.
The increase reversed a 4.5% fall over 2012 and an 8.4% fall over 2011 and 2012 combined.
Click to enlarge
<a rel="shadowbox" href="/images/stories/2013/05/goldcoastmay3one.gif" title="Click to enlarge"><img src="/images/stories/2013/05/goldcoastmay3onethumb.gif"></a>
“This house price movement is significant because it is the first evidence of a new uplift since the GFC related crash in 2008,” says Morris.
Morris says there is a regular cycle in the Gold Coast housing market of seven years between upturns, and the last upturn occurred in 2006-07.
“The seven-year cycle is a structural market phenomenon which occurs in most unregulated property markets in Western countries, but at different times depending on local factors,” he says.
Morris also expects preparations ahead of hosting the Commonwealth Games in 2018 will “massively boost employment opportunities on the Gold Coast, creating upward pressures on rents and therefore residential values”.
“This combined with record low interest rates that are likely to reduce even further, creates a number of catalysts, to drive a lift in residential activity and prices,” he says.
In contrast the unit market fell by 3% in the March quarter, based on 895 settlements following falls of 11.3% of the past two years.
The average unit price of $419,724 is the lowest since June 2003.
Morris says this reflects significant discounting of liquidation stock, particularly in central Surfers Paradise high rise apartments.
“In other words, all the price growth which occurred between 2003 and 2007 has been nullified by the Global Financial Crisis,” says Morris.
Click to enlarge
<a rel="shadowbox" href="/images/stories/2013/05/goldcoastmay3two.gif" title="Click to enlarge"><img src="/images/stories/2013/05/goldcoastmay3twothumb.gif"></a>
The rise in house prices is good news for the Gold Coast as a whole, where houses make up 60% of the local government area dwelling stock.
But in Surfers Paradise, apartments account for three quarters of all housing stock and the market has been in decline since about June 2008 coinciding with a big dip in sales volumes.
The most <a target="_blank" href="https://www.propertyobserver.com.au/developments/heavily-discounted-hilton-surfers-paradise-the-only-notable-gold-coast-high-rise-seller-in-november-quarter-midwood/2012121958540/Page-2">recent Midwood Report on the Queensland market</a> recorded only 19 high-rise apartment sales over the November quarter, a 70% plunge from sales figure a year ago with 705 high-rise apartments available for purchase on the Gold Coast, which at current sales rates would take close to a decade to clear.
“Oracle and Soul are only recently in receivership and the liquidators have yet to mount a solid marketing campaign and price list,” said Morris in the November quarter Midwood report.
"Apartments in Oracle, Soul and Hilton are being sold at 30% discounts," he said in an update to Property Observer.
Morris expects a price boom in the Gold Coast occurring in 2015 at the same time as sales of vacant land and house and land packages exceeding the release of new lots and house and land packages.
Prodap anticipates that in 2015/16, 3,000 residential lots and 1,500 townhouses and packaged housing will be released onto the market, more or less matched by demand.
Prodap anticipates townhouse and duplex sales exceeding supply of new stock over the course of 2013.
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Gold Coast property recovery tipped from 2015 as house prices bounce back, but unit prices slip to lowest in a decade: Prodap Report

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For once the HIA has not called for an interest rate cut in a press release, instead focusing on the more positive long-term trends in today's building approvals data.
Well it did at least in its first press release on today's data which had as it headline "Lift in Building Approvals Reflects Improved Sentiment".
A corrected press release issued a minute late took a decidely downbeat tone: "Sharp Decline in Building Approvals Underlines Delicate State Of Housing Industry," it read.
Perhaps readers can take their pick.
Both press releases began with the statement that approvals for houses and units <a href="https://www.propertyobserver.com.au/residential/dwelling-approvals-fall-55-in-march-led-by-nsw-and-victoria-abs/2013050260946?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news" target="_blank">fell 5.5% over March</a>, below expectations of a small rise.
“This is the largest monthly decline in building approvals since July of last year and represents adisappointing reversal of the growth which occurred in February,” said HIA senior economist, Shane Garrett.
“The decline in approvals for units was particularly pronounced in March with a fall of 7.7% to ccurring. This is in comparison to the 4.1% decline in detached house approvals during March,” Garrett said.
But he said (in both press releases)  that when taking a "longer view" the picture is a "little more encouraging"
"Approvals in March were 3.9% higher than twelve months previously.
For the first quarter of 2013, total approvals rose by 8.8% compared with the same period in 2012,” noted Garrett.
“The sharp decline in approvals during March underlines the delicate state of Australia’s housing market. A tentative recovery does appear to be underway but it remains delicate,” said Garrett.
“Every positive indicator on housing seems to be quickly followed by negative data in relation to other aspects of the market.
"The government must bear this in mind when prescribing policy measures. The housing industry is in a sensitive state and the need for supportive action from government at this time is great.
"There remains huge scope for policy intervention, especially with regard to inefficient taxes on housing.
"We urge the government not to ignore these opportunities in the Budget tabled for later this month,” said Garrett. 
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Longer term view on building approvals more encouraging: HIA

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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