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Nearly half (45%) all real estate investment into the Asia Pacific region is flowing into Australian commercial property markets.
This is double the next biggest markets of Japan (19% of investment) and China (18), according to Jones Lang LaSalle, with investors attracted to Australia by its transparent markets, efficient regulatory regimes supported by solid economic fundamentals and relatively high yields.
Offshore buyers of Australian commercial property are now around four times greater than those selling their investments, a trend that commenced in 2007 and which has grown more pronounced in the last three years.
“Australia punches well above its weight in terms of direct investment,” said Jones Lang LaSalle’s head of research and consulting David Rees at a retail outlook breakfast in Melbourne this week.
“Last year 29% of investment came from offshore – an all-time record.”
Rees says that while the big commercial markets of New York, London and Paris continue to attract offshore investors, a significant flow of investments into the Asia Pacific region is underway.
“They are investing in the region because of the long-term growth prospects with a big shift to Australia,” Rees says.
“Capital flows into Australia are expected to continue through 2013,” he says, highlighting that retail and office yields are broadly in line with long-term averages, and very appealing to offshore investors.
Regional shopping centre yields are around 6.32% compared with a 10-year average of 6.39% while sub-regional yields are above the 10-year average of 6.39% at 6.32%.
However, a scarcity of premium assets (sought by offshore investors) should see yields compress by around 25 basis points at the tight end of the market.
Rees says the shift to Australian commercial real estate is part of a global re-weighting to real estate as global investors shift their portfolio weightings from the large equity and bond markets to the much smaller real estate markets.
“A 1% downsizing in global equity portfolios towards non-residential real estate implies a 7.8% increase in global real estate portfolios. A 1% reduction in global bond markets in favour of real estate has a similar impact. A 0.1% re-weighting of global real estate portfolios towards Australia implies an increase of around $9 billion in offshore holdings of Australia real estate,” says Rees.
 
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lschlesinger-FZcF9M3vE6

Australia to continue as commercial property investment hotspot in 2013: Jones Lang LaSalle

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More evidence has emerged of the damaging impact that changes to first-home buyer grants in NSW and Queensland are having on home buyer sentiment.
First-home buyer (FHB) sentiment fell 12.8% according to the latest <a href="/news">Genworth</a> Homebuyer Confidence Index, driving a 5.1% fall in the overall index – its lowest level since 2008.
The bi-annual index, a measure of home buyer and would-be home buyer sentiment, fell from 98.4 to 93.4 over the six-month period while the first-home buyer sub-index fell from 98.5 to 85.9.
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“Changes to incentives in New South Wales and Queensland states may be affecting FHB con?dence more broadly, with New South Wales having the lowest proportion of prospective FHBs who thought now was a good time to buy a home,” the report says.
“New South Wales and Queensland both saw a large fall in the number of FHBs in the market, according to ABS data, of 56% and 66% respectively between September 2012 and January 2013.”
In addition, mortgage stress among FHBs is rising with the report finding that 41% of recent first-home buyers are expecting difficulty with mortgage repayments over the coming year – up from 18% in September 2012. 
The fall in the overall index was primarily driven by a 42% increase in the proportion of borrowers who expect to experience mortgage stress over the next 12 months rising from 18% in September 2012 to 27% in March 2013.
“The sharp rise in the proportion of surveyed FHBs experiencing and anticipating hardship follows the removal of FHB incentives on established dwellings in New SouthWales and Queensland, which went into effect in October 2012.
“Amongst FHBs in Queensland, over-commitment/borrowing was cited as the main reason for expecting mortgage stress," says the report.
Bridget Sakr, chief commercial officer of Genworth, says the changes to government grants led to a bigger drop in first-home buyer confidence compared with the overall decline in the index.
The changes to the FHB grants impacted on the ability of FHBs to purchase the properties they want, Sakr told Property Observer.
She highlighted the findings of the report that fewer than one in four FHBs wanted to buy a new home.
Despite this sharp fall in FHB confidence, time to buy a home sentiment is still higher than it was a year ago, though it too fell from 54% of FHBs to 49% as of March 2013.
“FHBs still aspire to own a home, this has increased from last year, but most want an established home in an area they want to live,” Sakr says.
“The grant removals have hindered them from being able to do that.”
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FHB grant changes drive home buyer confidence to lowest level since 2008: Genworth

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Austere Melbourne apartment blocks separated from the street and surrounding suburb by imposing podium bases and parking lots are being replaced by developments that engage with their surroundings and create “village hall” community spaces.
Such an approach has been adopted in the design of the <a href="/news">Abbotsford</a> riverfront project on the banks of the Yarra River, a three stage mixed-use residential project by Melbourne-based developer Hamton and designed by architects RotheLowman.
The project, with the first two stages Eden and Haven currently under construction, has deliberately created a public thoroughfare to the <a target="_blank" href="https://www.propertyobserver.com.au/developments/hamton-s-riverfront-homes-the-latest-in-abbotsford-living-as-melbourne-suburb-sheds-industrial-past/2012121858496">Yarra River</a>, incorporating the shops, restaurants and cafes as well as pedestrianised pathways around the site.
As explained by RotheLowman, the design seeks to magnify the experience of transitioning from “grey urban environment to the green river’s edge” and “develops the idea that the architecture and landscape can function as an emulsifier between the fast, frenetic nature of Victoria Street and the calm, tranquil environment of the Yarra River”.
One of the key features of the development is a publicly accessible “pedestrian line between Victoria Street and the Yarra River trail” with the aim of “bringing the tranquillity of the river corridor up to Victoria Street”.
The pedestrian street acts as a place for both the public and residents to meet as well as being the main point of access to each residential lobby.
“Cyclists will also be able to access the Yarra River trail via this street, using bicycle gutters to navigate stairs.”
The project dates back to 2008 and according to Chris Hayton, principle at RotheLowman, included an extensive design process lasting 16 months prior to lodgement of the plans and which sought to collaborate with the local council.
“The council said they would consider allowing the development rise to a greater height in exchange for public amenity,” Hayton tells Property Observer.
He says the idea was to create a new link between Victoria Street and the Yarra River, which included the design of a public space even though it is on private title.
The space has been naturally designed to make visitors or residents want to head down to the river or stay and make use of it during their lunch time.
 
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Hayton says the idea was to create a “spine” with different uses coming off it including restaurants, small cafes, waterfront and offices for lease and purchase with the architectural expression changing to public-use.
No residential is included above this space.
Hayton says design is based around the concept of the “village hall” – a community hub provided by the developer that can be used by the community as they wish.
“We want people from the outside to come in and for the development to interact with the street.
“We don’t want walls of car parking as you get in developments in Southbank.
“The evolution of Melbourne is demanding it. The population is more sophisticated. If they buy or invest they are looking for a place where people will want to go and live, where they are able to walk downstairs to get their milk and where they don’t have to get into their car to kick the footy around.”
He calls it the “milk bar resurgence” and adds that the lessons can be learnt from some of the well-known failings of mixed-use developments at <a target="_blank" href="/news">Docklands</a>.
“If you buy an apartment, it’s not a bad idea to live above shops and offices. It creates a sense of place.”
Hayton says it’s something that’s happening in other cities that are more mature in their development than Melbourne.
“It’s an interesting development time for cities like Melbourne.
“We can’t just expand, growth must occur in different way, without sacrificing quality of life.
“Too often, it may be good pieces of architecture but it is not integrated within the greater context of its immediate site and surroundings,” he says.
The first stage, Eden featuring 214 apartments all of which are sold, is due for completion in 2013.
The second stage, Haven featuring 194 is currently being marketed with apartments currently under construction.
The third stage, due to feature 180 apartments is at the town planning phase ahead of marketing.
The project is being developed by Melbourne developer Hamton with the first two stages being built by LU Simon.
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Abbotsford riverfront project seeks community connection

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Median house values lifted almost 1% over February with Perth and its accompanying WA country market the strongest performers, according to the latest housing data from Residex.
The February figures suggest the housing market is gathering steady momentum with Residex recording a 0.96% gain in February following a 0.61% quarterly gain.
“Things in the financial world and the Australian housing market are looking fine and I am pleased to be delivering a positive newsletter,” writes Residex chief executive John Edwards.
Edwards pointed to the recent gains in the <a target="_blank" href="/companies/westpac">Westpac</a> Melbourne Institute Index in the March reading, following a 7.7% jump in February, the fifth consecutive month that it has registered above 100.
“Much of the population is feeling positive about the current situation.
“The housing market is presenting growth on an Australia-wide basis and the trend is moving in an upward direction,” he says.
Over the past 12 months Perth house values are up 3% to a median of $493,000.
The Perth unit market has been particularly strong, up by 11.3% over the past 12 months to a median value of $425,500.
WA country house values also lifted, up 2.24% over February and 3% over the past year to a median of $344,500.
The Perth housing market also delivered a boost to property investors with an 8% rise in weekly house rents to $470 per week and a 11.4% gain in unit rents to $440 per week.
Rents are rising on the back of declining listings and a very tight vacancy rate.
The Real Estate Institute of Western Australia (REIWA) recorded a Perth metropolitan vacancy rate of 1.9% for the January 2013 quarter with an even tighter 1.3% vacancy rate for the unit market.
The REIWA noted the diminishing level of listings in metropolitan Perth in the wake of strong population growth and improving consumer confidence, which is putting “upward price pressure and increased demand for homes”.
 
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REIWA president David Airey noted that properties listed for sale slipped to just 8,429 in March, down from 14,092 at the same time last year.
“Agents are reporting an increasing shortage of properties in popular price ranges especially around the median of $500,000," said Airey.
“REIWA data suggests that listing stock is trending downwards on the back of strong sales turnover and these properties are not being replaced with enough new listings to meet demand.
“Now that the market appears to have turned in favour of sellers, many may be holding back with the expectation of a better price in the months ahead. Until more sellers list their properties and until we get more new homes onto the market from builders, then competition from buyers will put pressure on prices,” Airey said.
The Residex figures show that Adelaide was the next strongest capital city performer after Perth in February with a 0.98% gain in its median value of its houses to $392.000.
Sydney recorded a modest 0.66% rise in its median house value to $682,500 with values up 3.88% over the past month
Melbourne recorded a modest 0.28% gain with a median house value of $556,500 with house values almost unchanged on a year ago.
Brisbane house values retreated 1.42% over February to a median of $433,000 but are up 1.41% for the quarter and 2.57% over the past 12 months.
Year-on-year Darwin stands head and shoulders as the top performing market with a 9.43% rise in its median house values to $525,000 – though there was a small 0.84% correction in February.
Darwin house rents are up 11.5% to a median of $580 per week and offers capital city investors the highest rental yield of 5.78%.
Darwin units offer a yield of 6.09% also the highest across capital cities.
Spurred on by the wealth of mining and LNG projects, the wider Northern Territory housing market continues to rise with house values up 7.9% over the past 12 months and a median value of $489,000.
Overall, the unit market tread water over February as it has over the past quarter with unit values up just 1.1% over the past 12 months with a national median unit value of $398,000.
Brisbane, Melbourne and Sydney all recorded small gains in unit prices in February with Perth the standout market over the past 12 months.
Hobart unit price are down nearly 10% over the past 12 months.
<a target="_blank" href="https://blog.residex.com.au/wp-content/uploads/2013/03/Capital-City-Property-Market-Statistics-February-2013.jpg">Click here for the full Residex breakdown for capital city and country markets over February.</a>
Photo courtesy of Flickr.
 
 
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Perth leads modest house value gains in February: Residex

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Estate agents in Victoria and NSW have been warned about unsolicited emails being sent out by a company called Connection Blue Pty Ltd run by Mark William Whittingham advertising rent rolls for sale.
The public warning about the conduct of Whittingham and Connection Blue has been issued by the director of Consumer Affairs Victoria, which says that several estate agents in Victoria and New South Wales have complained that they paid Whittingham for rent rolls but did not receive the product or a refund.
Whittingham is well known in mortgage broking circles with the <a href="https://www.google.com.au/url?sa=t&amp;rct=j&amp;q=mfaa+whittingham&amp;source=web&amp;cd=2&amp;cad=rja&amp;ved=0CDgQFjAB&amp;url=http%3A%2F%2Fwww.brokernews.com.au%2Fnews%2Fbreaking-news%2Fmfaa-warns-brokers-against-whittingham-145117.aspx&amp;ei=MRdSUYfsJOyXiAfB6YHICw&amp;usg=AFQjCNFlBC5zxLxAUFoyOS6M4qY-VWXIWA&amp;bvm=bv.44342787,d.aGc" target="_blank">MFAA issuing a warning to its members</a> about his business practices in November last year.
Whittingham had previously offered to sell loan trail books to mortgage brokers through another company that has since been placed in liquidation, with brokers not being refunded their deposits as promised in information booklets.
Consumer Affairs says that in one instance, it is claimed a Victorian estate agent paid $135,000 for rent rolls but did not receive access or a refund.
Another Victorian estate agent alleges to have paid $24,200 and a New South Wales agent claims to have paid $1,000.
“Melbourne Magistrates' Court has issued an interim injunction against Mr Whittingham and anyone connected with Connection Blue Pty Ltd, from 19 March 2013 until a further hearing on 26 March 2013,” said Consumer Affairs.
In relation to any rent roll, mortgage trail book, or planning book, the court Whittingham and Connection Blue is restrained from:
<ul>
<li>requesting money or other consideration from any person as a deposit for the sale, supply or delivery of such assets</li>
<li>disbursing, transferring, dealing with, drawing on or disposing of any money held or received as a deposit (up to $161,000)</li>
<li>requesting money from any person in return for granting that person access to any such asset</li>
<li>requesting and/or disbursing or transferring, or drawing on or disposing of any payment or other consideration, received after the order was made, before actual delivery of the asset to the purchaser.</li>
</ul>
The cirector of Consumer Affairs Victoria issued a public warning in September 2012 about the conduct of Whittingham and his former company, Buy A Trail Pty Ltd, which purported to offer loan trail books for sale to brokers.
Buy A Trail was placed in liquidation in August last year.
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Victoria and NSW estate agents warned about unsolicited rent roll emails

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Hong Kong-headquartered private equity firm Barings Private Equity Asia is being mooted as a possible bidder for all or part of the Australand business.
The firm has $5 billion under management with offices in Shanghai, Singapore, Beijing and Mumbai and was once part of Dutch banking giant ING.
It is understood to be considering acquiring just the residential business of Australand or putting in a bid for the entire company, including its industrial, retail and office businesses and assets.
Barings Private Equity Asia describes its activities as running “a pan-Asian investment program, specialising in mid-market companies requiring capital for expansion, recapitalisation or acquisitions”.
The firm is said to be more interested in Australand’s residential unit, which could generate returns in excess of 15% with premium Australand commercial and industrial assets expected to generate a smaller return, according to a report in the Australian Financial Review quoting “senior sources”.
Australand’s main shareholder, Singapore-based CapitaLand, which controls 59% of Australand, <a target="_blank" href="https://www.propertyobserver.com.au/news/majority-shareholder-capitaland-to-review-its-investment-in-takeover-target-australand/2013011058723">said in January</a> it was reviewing its investment in the Australian developer as it focuses its efforts on its China and Singapore businesses.
However, it is believed to strongly favour selling the entire business rather than selling it piecemeal.
<a target="_blank" href="https://www.propertyobserver.com.au/industry-news/several-parties-seek-australand-property-group-stake/2013030559720">In March</a> Australand said in an ASX statement that “several parties have expressed an interest in either the whole or parts of the Australand business.”
A $7 billion approach <a target="_blank" href="/news">by Mirvac</a> for Australand’s residential business has also been mooted, but no formal bid has yet been acknowledged by Australand.
A $3 billion bid by the GPT Group for Australand’s commercial and industrial businesses at a $140 million premium to their book value was rejected in December.
If a suitable bidder for Australand cannot be found, CapitaLand may also consider selling its shareholding via a block trade, an off-market trade allowed for share holdings of significant size in specified contracts.
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Asian private equity firm emerges as possible Australand buyer: reports

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The Australian 108 skyscraper approved for development on Melbourne’s Southbank just over a week ago has run into trouble because its proposed height infringes on the flight path into Essendon Airport, according to a report in The Age.
Victorian planning minister Matthew Guy <a href="https://www.propertyobserver.com.au/victoria/tallest-building-in-southern-hemisphere-approved-for-melbourne/2013031759915" target="_blank">approved the 108-storey apartment and hotel tower</a>, which is due to rise 388 metres above the city and would be the tallest residential tower in the southern hemisphere.
The $600 million apartment tower (pictured below), designed by architects Fender Katsalidis, would breach the airspace of Essendon Airport, which is 13 kilometres north of the city. The airport has a 373-metre height envelope for aircraft approaching from the south.
<img alt="australia108march26one" height="831" width="400" src="/images/stories/2013/03/australia108march26one.jpg">
These limits are set according to a federal protection system known as PANS-OPS (procedures for air navigation services - aircraft operations), which is designed to allow aircraft to fly safely in and out of airports and is set by international agreement.
There are no provisions for penetrating this airspace, a Department of Infrastructure and Transport spokeswoman told The Age.
It is not the first concern to be raised about the proposed tower, with Melbourne Lord Mayor Robert Doyle suggesting in February that it could <a href="https://www.propertyobserver.com.au/victoria/shrine-of-remembrance-overshadowing-concerns-arise-from-australia-108-tower-proposal/2013022759619" target="_blank">overshadow the Shrine of Remembrance</a>.
Australia 108 is backed by private investors believed to include Nonda Katsalidis, Benni Aroni, Adrian Valmorbida, Ian Fayman, Gary Caulfield and Mark Hopkinson.
Benni Aroni, chairman and founder of construction and property development firm Stralliance, said one of the conditions for approving the tower were that arrangements were made with the Civil Aviation Safety Authority.
“I believe it is a resolvable issue," he told The Age.
The Age quotes  industry sources saying an alternative could be for Essendon Airport flight paths to be altered, which would require the support of the federal Department of Infrastructure and Transport, the Civil Aviation Safety Authority and Air Services Australia.
Planning minister Matthew Guy remains adamant the building has received all the necessary approvals.
Apartments in the building start at $425,000 for a one-bedroom unit, $575,00 for a two-bedroom unit and $775,00 for a three-bedroom unit. There will be 664 apartments.
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Airspace height problems for Australia 108 skyscraper can be resolved: Benni Aroni

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Private investors were the most active buyers of retail property in 2012, acquiring more than a third (36%) of the $3.7 billion of retail property that changed hands in Australia over the calendar year.
Institutions represented by funds, trusts and syndicates accounted for a combined 32% of purchasing activity while foreign investors were also active acquiring 24% of retail property.
<img alt="chartoftheweekmarch27one" height="838" width="400" src="/images/stories/2013/03/chartoftheweekmarch27one.gif">
“Private investors had been sidelined from purchasing retail property for a number of years due to strong demand from institutional investors. Also of particular note is the emergence of foreign investors purchasing 23% of retail property sold,” says Savills national head of research Tony Crabb.
“Evidently, the global credit crisis created a window of opportunity for private and foreign investors to re-enter the market.
“As conditions for Australian institutions continue to improve, private and foreign investors may well find themselves unable to compete again.
“Purchasers have become more confident the commercial property market has passed the bottom of the cycle,” he says.
Property trusts (26%), syndicates (21%) and private investors (21%) were the biggest sellers of property over 2012 with private trusts and syndicates also active.
Of note, 12% of retail property sales last year were mortgagee in possession sales.
<img alt="chartoftheweekmarch27two" height="816" width="400" src="/images/stories/2013/03/chartoftheweekmarch27two.gif">
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Private investors return to retail property market as trusts sell out: Chart of the week

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<img src="/images/stories/2013/02/collierslogo.jpg" width="470" height="94" alt="collierslogo">
Greg O'Meara says he would invest in a property syndicate, providing a strong income stream.
<img src="/images/stories/2013/02/omearamarch27one.png" width="200" height="200" alt="omearamarch27one" style="margin: 5px; float: left;">Agent: Greg O’Meara
Position: Executive, industrial agency
Company: Colliers International (WA)
Office location: Perth
How long have you been in the industry?
I’m into the seventh year of my second commercial property career.
What’s happening in the area you specialise in?
Plenty of activity – lots of enquiry and an encouraging amount of optimism.
Describe the most interesting property you have sold
In my first career, I sold of a lot of property in Fremantle’s West End – which, although it was a secret for a while, turned out to be the University of Notre Dame.
What are the ingredients to being successful in your job?
Being organised and focused.
What aspects of your role do you enjoy the most?
Flexibility – in many ways you are running your own business. You have the ability to seek opportunities, and I enjoy trying to solve a problem creatively, putting buyers and sellers together.
Where would invest a spare $750,000?
I like the property syndicates – I’m probably now of an age where the strong income stream is important, rather than taking on too much risk. Do you have a spare $750,000?
Which football team do you support?
The Dockers – the only bigger fans I know are my boss, and my son.
What’s your favourite app or techno gadget?
Carbon paper
How do you use social media?
By accessing my wife’s Facebook account.
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In profile: Colliers International’s industrial specialist Greg O’Meara

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The Australian housing market has entered a period of subdued stability with little prospect of "large price swings" a new report by the Housing Industry Association (HIA) argues.
The HIA bases this assertion on the ratio of mortgage repayments to earnings, which it views as having strong correlations with house price growth.
"The ratio bottomed out during the late 1990s, with brisk growth in house prices following," says the <a target="_blank" href="https://www.propertyobserver.com.au/australian-capital-territory/new-home-sales-on-the-rise-hia/2013013159051">HIA</a> in the report.
Now, it says the ratio is slightly above its long term average.
"This suggests that the relationship between earnings, interest rates and house prices is balanced and consistent with stability in the market. Accordingly, any large price swings are probably unlikely in the near future.
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The HIA says its analysis indicates that the Australian housing market is "relatively weak by historical standards in terms of transaction volumes and anaemic price growth over recent months".
"This state of affairs underlines one of the key features of housing markets generally, whereby low levels of transaction and turnover tend to accompany periods of subdued prices.
"Consequently, the return of sustainable price growth to the market would add welcome fuel to activity in the residential construction sector," it says.
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Significant house price swings unlikely: 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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