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The regional housing market is at its most affordable in almost a decade, according to the latest HIA-CBA Housing Affordability Index.
Overall housing affordability improved by 5.5% over the 2012 December quarter representing an 18.4% advance on the same period of 2011.
Affordability improved in all capital city and state regional housing markets with the biggest regional improvement occurring in NSW, where the affordability multiple improved from 1.43 to 1.31.
The HIA defines the affordability multiple as “the number of full time average incomes required to reach the qualifying income to service a loan on a median priced home”.
Tasmania is the most affordable regional market with a multiple of 1.13 with Hobart also the most affordable capital city market with a multiple of 1.20.
Click to enlarge
<a href="/images/stories/2013/03/hiamarch22.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2013/03/hiamarch22thumb.gif"></a>
Sydney remains the least affordable capital city housing market with an affordability multiple of 1.75.
Victoria is the least affordable regional housing market with a multiple of 1.55.
Overall, the index improved from 65.3 to 68.9 with the national affordability multiple improving from 1.53 to 1.45.
A year ago it was 1.72.
“This is the eighth consecutive quarter of increase in the index, bringing it close to levels not seen since the depths of the GFC during 2009,” says HIA senior economist, Shane Garrett.
“For regional areas, affordability is at levels last seen during the early 2000’s decade. Affordability is on the increase in every part of the country.
“This has been driven by the weakness of price developments as well as the two cash rate reductions effected by the RBA in the final quarter. Continued growth in earnings has also served to make housing more affordable”.
“It is worth noting that affordability would be even more favourable to householders had recent RBA rate cuts been passed on fully be lenders.”
Despite the continued improvement in housing affordability first-home buyer numbers remain at <a target="_blank" href="/news">near record eight year lows</a> with Garrett noting that “transactions activity on the ground is very sluggish”.
“This underlines the need for stronger interventions from the RBA in terms of interest rates and from the government with regard to the heavy taxation of home purchase,” he says.
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Regional housing affordability at its best since early 2000s: HIA

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Struggling fashion designer Bettina Liano has slammed the high rents charged in the Melbourne CBD after closing her Little Collins Street boutique and opening a new shop in New York’s SoHo district.
In a scathing attack reported in fashion industry magazine Ragtrader, Liano said her rent was over $20,000 a month for the 134-square-metre store - double what she is paying to rent at 246 Mott Street in SoHo. Liano says she also plans to open stores in San Francisco, Los Angeles and Miami.
The empty store at 269 Little Collins Street is vacant and <a href="https://www.realcommercial.com.au/property-retail-vic-melbourne-500634111" target="_blank">listed for lease by Max Cookes and Zelmain Ainsworth of CBRE</a> with a seven- to 10-year lease term.
''What I was paying for the Little Collins Street store was exorbitant,'' she told Ragtrader. "It cost me over $20,000 a month but this store in SoHo is less than $10,000 a month. And there are people here. In Little Collins Street, there's no traffic, it's tumbleweeds."
She had previously closed her store on Chapel Street, where she paid rent of <a target="_blank" href="https://www.propertyobserver.com.au/retail/bettina-liano-closing-australian-stores-and-selling-jeans-in-the-united-states/2013022159492">$25,000 per month.</a>
Her comments come as the Melbourne Fashion Week is underway.
The Age reports that Liano's Little Collins Street store was closed last month due to a breach of her lease after she failed to fulfil her rental obligations.
Melbourne ranked as the <a target="_blank" href="https://www.propertyobserver.com.au/retail/sydney-melbourne-and-brisbane-in-world-s-top-10-priciest-shopping-strips/2012121858568">sixth most expensive prime retail rent market in the world last year </a>at $850 per square foot per annum, falling short of London at $988 per square foot, according CBRE figures.
Other vacant retail spaces on Little Collins Street include a 27-square-metre café and basement space below the Causeway Hotel at <a href="https://www.realcommercial.com.au/property-retail-vic-melbourne-500513571" target="_blank">353 Little Collins Street</a>, which is being marketed for lease by Jeremy Marmur and Michael DiCarlo of Savills Melbourne.
An 80-square-metre retail space at <a href="https://www.realcommercial.com.au/property-retail-vic-melbourne-500257701" target="_blank">347 Little Collins Street</a> is also vacant and available for lease through Savills Melbourne.
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Bettina Liano slams “exorbitant” Melbourne rents as Little Collins shop sits empty

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A property bubble is building in Australia’s commercial property market due to a “wall of money” flowing into the sector from offshore institutional investors, Paul Weightman, chief executive of property trust and fund manager Cromwell, has warned.
Speaking at an RBS Morgans function in Brisbane yesterday, Weightman said the current bubble building was different to that which occurred prior to the GFC when rising rents led to compressed capitalisation rates – the amount of time it takes for a building to pay for itself.
He says the current bubble is compressing rental yields without proper regard to the fundamentals, according to his comments reported by The Australian Financial Review.
Weightman added that it was hard to see where office and retail rental growth would come from in capital city commercial property markets in the eastern states (Sydney, Melbourne, Adelaide, Canberra and Brisbane).
“We have enormous amount of capital from offshore looking to find a home in the Australian market but we have pretty poor underlying property fundamentals," he said.
A recent report from Colliers International anticipated <a href="https://www.propertyobserver.com.au/office/chart-of-the-week-why-2014-will-feature-renewed-growth-in-the-office-market/2013031859780" target="_blank">no growth in the commercial CBD office market in 2013</a>, but renewed growth from 2014.
The most recent<a href="https://www.propertyobserver.com.au/office/sydney-the-only-partial-bright-spot-as-cbd-office-vacancies-rise-with-mining-demand-down-pca/2013020659204" target="_blank"> Property Council of Australia office report</a> for the second half of 2012 said net absorption at 83,685 square metres across Australian CBD office markets was the lowest since the six months to July 2009 and less than half the 20-year historical average.
In anticipation of the bubble bursting, Cromwell will look to sell some of its assets and reduce the amount of debt it carries – as it did in 2006 prior to the market collapsing.
Cromwell was recently included in the S&amp;P/ASX 300 Index.
It reported statutory accounting profit of $29.5 million for the six months to December 2012 compared to a prior year loss of $6.8 million
Cromwell has a $1.9 billion commercial property portfolio comprising a mix of office, industrial and retail assets in east coast markets.
Prominent CBD assets include 321 Exhibition Street, a 20 level office building and the 18 level 320 LaTrobe Street both in Melbourne and the twin office tower complex on Victoria Avenue in Chatswood acquired in 2006.
Cromwell property trusts include the recently closed and oversubscribed Ipswich City Heart Trust comprising the $93 million Ipswich City Heart Building, a 9-storey commercial office/retail building to be constructed in the Ipswich CBD offering investors an 8% return.
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Cromwell to sell assets as commercial property bubble builds: Paul Weightman

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Melbourne eastern suburbs estate agents PhilipWebb have ditched "Jurassic" newspaper print advertising and will instead recommend that its clients only advertise their properties online.
It has previously advertised real estate listings via local publications including The Weekly Review, but believes that clients get the best value for money by advertising online.
It will place ads in print, but only if directed to do so by clients.
News Limited's Leader community newspapers publish a number of editions servicing the Melbourne eastern suburbs market as does Fairfax through its community newspapers joint venture with Antony Catalano's Metro Media Publishing group, publisher of the The Weekly Review.
PhilipWebb believes that print advertising is just a way for estate agents to get their brand noticed - paid for by the client.
PhilipWebb is promoting its online-only message via a slick-looking graphical <a href="https://www.youtube.com/watch?feature=player_embedded&amp;v=7AdbWYRDM2c" target="_blank">YouTube</a> video with the heading “why it’s time to abandon Jurassic advertising”.
It begins with the statement “Once upon a time dinosaurs ruled the planet…much like newspapers” and goes on to talk about the “meteoric rise of digital advertising which points to a similar fate for newspapers”.
“But newspapers are being kept alive by real estate agents who use your money to promote themselves instead of what should be the star attraction: your property.”
The video claims that a newspaper marketing campaign costs between $5,000 and $12,000 “most of it on an advertising dinosaur which is lucky to attract 0.5% of your target audience”.
The group promises a full online advertising campaign for $2,800 including GST.
The video, which is being promoted to clients via social media, also plays on the PhilipWebb name calling it the “webb revolution”.
 
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Founder and director PhilipWebb says advertising properties in newspapers is not a “great return on investment for any vendor”.
“However, we know that nine of out ten people use websites to research buying properties. Online advertising allows you to reach your exact demographic through priority placement and refined searching.”
Webb said in his experience only about 50% of <a href="https://www.propertyobserver.com.au/residential/vendor-sentiment-index-rising-sqm-research/2013022559538" target="_blank">vendors</a> understand the benefits of online marketing.
PhilipWebb will continue to promote its brand in local newspapers because clients still flick through the local paper.
“The fact is that newspapers are lucky to attract about 0.5% of your target audience,” Mr Webb said.
“That’s not great return on investment for any vendor.”
“Some clients browse the paper over the weekend and equate that with the serious searching potential buyers do online. Our experience is that it is quite rare.
“We believe in investing our clients’ money where it’s going to provide value, and a much larger percentage of people (89%) committed to purchasing property are looking solely online.
“If our clients wish to include newspaper advertising as part of their campaign, then of course we are happy to arrange this for them, but we no longer recommend they spend thousands on paper advertising. Simply put, we don’t see it working like it used to,” he says.
He believes that video will have increasing importance as the digital revolution continues.
“We strongly believe in the engaging power of video. We believe that its ability to reach buyers on an experiential level positions them to view - if not buy - a property much better than static text and images.”
PhilipWebb stopped advertising in metro dailies in 2000.
The real estate group has offices in <a target="_blank" href="/news">Doncaster</a>, <a target="_blank" href="/news">Ringwood</a> and <a target="_blank" href="/news">Mitcham</a> and promotes itself as the largest non-franchised firm in Melbourne with 110 staff.
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Melbourne estate agents PhilipWebb ditch “Jurassic” newspaper advertising

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Melbourne real estate groups Jellis Craig and Bennison Mackinnon have merged their operations to form a boutique Stonnington group servicing the upmarket inner south east suburbs of<a href="/news"> South Yarra</a>, <a href="/news">Prahran</a>, <a href="/news">Windsor</a>, <a href="/news">Toorak</a>, <a href="/news">Armadale</a>, <a href="/news">Kooyong</a>, <a href="/news">Glen Iris</a>, <a href="/news">Malvern</a> and <a href="/news">Malvern East.</a>
Jellis Craig Bennison Mackinnon is aiming to be the dominant group in the municipality of Stonnington and to have stronger representation in <a href="/news">Richmond </a>and on the <a href="/news">Mornington Peninsula</a>.
The combined group will have 350 staff operating across a 13 office network.
The co-branded component of the merger will include combined offices in Armadale, South Yarra, Richmond and Sorrento and will launch on April 15 2013.
Jellis Craig CEO Nick Dowling told Property Observer this was a "one off merger" that perfectly complimented where both agencies are geographically strong.
He added that both agencies are also well-aligned culturally.
The four co-branded offices will include new signage featuring both brands with Bennison Mackinnon colours predominent.
Dowling says this is a mark of respect for the "rich heritage" that both brands carry and to show that it is a "genuine merger".
The remaining nine offices will continue to operate under the Jellis Craig banner.
“Bennison Mackinnon and Jellis Craig each have a rich and successful heritage in residential sales and property management collectively spanning more than 50 years. Joining forces will further cement our dominant market positions across our key geographic areas,” says Dowling.
CEO of Bennison Mackinnon group Andrew McCann will join the Jellis Craig board.
McCann says the combined group will have access to a significantly increased referral network, client database and technology platform.
“Together we are creating a formidable force within the inner south eastern suburbs of Melbourne while further strengthening our operations in Richmond and Sorrento. We will be focusing on increasing our strong positions in these markets as well as ensuring we are well positioned to capitalise on new growth opportunities.”
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Jellis Craig and Bennison Mackinnon merge to form boutique Melbourne agency

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Department store giant David Jones may look to redevelop its flagship department stores in the Sydney and Melbourne CBDs as it reported a 13.5% decline in interim profits.
<a href="/companies/david-jones" target="_blank">David Jones</a> reported a company-wide profit after tax of $73.5 million for the six months to January 26 compared with $85 million in the same period in 2012.
Leasing and occupancy costs increased from $93.3 million in 2012 to $95.6 million in 2013 over the six month period.
“In 2012 independent property consultant Cushman &amp; Wakefield concluded that the potential worth of the company’s Sydney and Melbourne flagship CBD store properties (on an existing use basis) was $612 million,” said David Jones in its half-year results announcement.
The flagship stores are the two Sydney stores on Elizabeth Street and Market Street in Sydney - the former being the very first David Jones store, which opened in 1927 - and the Melbourne store on Bourke Street Mall.
“The company is continuing to explore options to unlock the development value of these assets, whilst retaining ownership of its retail trading space.
“Priority has been given to the two Sydney sites as it felt these have the greatest potential.
“CB Richard Ellis has been appointed to advise the company on maximising the value of these assets.
“This remains a significant opportunity for the company however it is complex and will take time.”
The Australian Financial Review speculated this could mean adding "airspace" above its Sydney stores with "20 storeys to its Market Street store and perhaps five stories on Elizabeth Street where development is restricted because it could overshadow Hyde Park".
The extra storeys would be turned into hotels and apartments.
As part of interim results briefing, David Jones said it would continue to focus on its omni channel retailing (OCR) strategy, which includes emphasis on online sales.
Online sales increased 288% in the second quarter of 2013 following the launch of the David Jones web store in mid-2012.
David Jones chief executive Paul Zahra also highlighted that the company would examine its store portfolio in light of its broader omni channel retailing strategy and with six store leases in “less robust demographic locations:” set to expire in the next five years.
Stores in <a target="_blank" href="/news">Bondi Junction</a> and Canberra Centre will be refurbished over the next 12 months while the company will also focus on improving the productivity of stores with a target of lifting its average proportion of selling space compared to gross lettable area from a current 76% across the store portfolio to 85%.
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David Jones considers development of flagship Sydney and Melbourne stores

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Australia’s largest customer-owned lender, CUA, has cut its three-year fixed rate from 5.25% to 5.1%, effective from Friday (March 22).
The move follows <a href="/news">Westpac lifting its two-year fixed-rate</a> from 4.99% to 5.29% today and expectations from mortgage broker Loan Market and Channel Nine's Ross Greenwood that fixed-rates would start rising again.
In his money minute segment today on Channel Nine Today Greenwood said the Westpac move was indicative of the banks changing their views on loan rates.
CUA general marketing manager Jason Murray highlighted that the move was "contrary to one of the nation’s largest banks".
Murray says the CUA’s three-year fixed rate is significantly lower than the equivalent standard rates offered by the Big Four banks, now by thirty four basis points (0.34%).
"On an average loan size of $300,000 with a 30 year term, a three-year fixed rate home loan from CUA at 5.10% could save homebuyers $63 per month, or $2,2681 over the three year duration of the loan, compared to the average rate of the big four banks on their equivalent products.
 “While one of Australia’s largest banks has moved to increase their fixed rates, CUA has chosen to make further cuts to its entire suite of fixed rate products. We are determined to offer customers the best deal we possibly can and these cuts further demonstrates that. 
“CUA aims to provide Australians with an innovative alternative based on value and service to the major banks and we are constantly looking at ways to reinforce this to our customers,” he says.
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CUA cuts three-year fixed rate to 5.1% and sticks boot into big banks

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Australia’s  biggest mall, Chadstone Shopping Centre, ranked as the top performing shopping centre in Australia in 2012 with 5% growth in sales, according the latest 'Big Gun' rankings compiled by Shopping Centre News.
Shopping Centre News defines a Big Guns centre as one with a gross lettable area of  45,000 square metres or more.
The 155,000-square-metre Chadstone mall (pictured below) in <a target="_blank" href="/news">Malvern East</a>, jointly owned by CFS Retail Property Trust and Gandel Group, generated moving annual turnover of $1.365 billion. The result was well ahead of the second best performing mall, the Westfield Bondi Junction, which recorded sales of $961 million – a decline of 1.2%.
<img alt="chadstonemarch20one1" height="310" width="470" src="/images/stories/2013/03/chadstonemarch20one1.jpg">
In early 2013 updates, shopping centre landlords CFS Retail Property Trust, Westfield, AMP Capital Shopping Centres and Stockland all reported <a target="_blank" href="https://www.propertyobserver.com.au/retail/shopping-centre-leasing-enquiries-rising-as-overall-outlook-brightens-jones-lang-lasalle-survey/2013031359856">improved retail trade conditions</a> with the ABS recording a 0.9% seasonally adjusted rise in retail sales over January to $21.6 billion.
“Despite what has been a challenging year, the underlying fundamentals remain mildly accommodative for retail expenditure,” said Michael Gorman, CFS Retail Property Trust fund manager.
Speciality sales lifted 4% across the CFS Retail Property Trust portfolio in January.
Gorman said <a href="/news">Chadstone</a> had benefited from "judicious remixing" of its retailing tenancy profile including opening a Zara store in August last year and "exiting some underperforming brands".
He told The Australian Financial Review the luxury precinct remained a strong performer, as did the Apple store.
Westfield occupied eight of the top 10 positions on the Shopping Centre News list with the performance of Westfield Sydney notable. The most recent addition to the Westfield group, the Sydney CBD mall generated $837 million in sales, growth of 11.3%.
Westfield Sydney also ranked first by speciality store sales generating $15,660 in turnover per square metre, growth of 3.4% ahead of Chadstone (up 8.6% to $14,333 square metres) and Westfield Chermside ($13,692 per square metre, no growth).
However, demonstrating what according to Shopping Centre News publisher Michael Lloyd was not the “greatest of years” for retail sale growth, annual turnover fell at Sydney eastern suburbs shopping  mecca Westfield Bondi Junction and Westfield Chermside in Brisbane.
 
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Top 10 malls by moving annual turnover
<ol>
<li>Chadstone, Melbourne - $1,365.4 million (+5%)</li>
<li>Westfield <a target="_blank" href="/news">Bondi Junction</a>, Sydney - $961 million (-1.2%)</li>
<li>Westfield <a target="_blank" href="/news">Chermside</a>, Brisbane - $876 million (-1.6%)</li>
<li>Westfield <a target="_blank" href="/news">Doncaster</a>, Melbourne - $840 million (+3.4%)</li>
<li>Westfield Sydney - $837 million (+11.3%)</li>
<li>Westfield Southland, Melbourne - $787 million (+ 1%)</li>
<li>Westfield <a target="_blank" href="/news">Marion</a>, Adelaide - $783 million (+ 1.3%)</li>
<li>Westfield <a target="_blank" href="/news">Carindale</a>, Brisbane - $762 million (0%)</li>
<li>Robina Town Centre, Gold Coast - $748 million (+0.9%)</li>
<li>Westfield Warringah Mall, NSW - $714 m (-0.2%)</li>
</ol>
Source: Shopping Centre News
Chadstone Mall is valued at $3.21 billion and returns a terminal yield of 5.5% according to CFS Retail Property Trust figures.
Around 20 milllion people shop at the mall every year.
The largest tenant in the mall is Myer which occupies 12% of the gross lettable area followed by David Jone with 9.9%, Hoyts cinemas with 5.1% and Target with 4.9%.
In addition there are over 500 speciality stores including internatinal retailers Zara and GAP.
Chadstone Mall dates back to the 1960s and is a super-regional shopping centre owned by Colonial First State Global Asset Management, with 50% owned by its listed property trust Colonial First State Retail Property Trust (CFS) since 1994.
In November last year Victorian planning minister Matthew Guy approved <a target="_blank" href="https://www.propertyobserver.com.au/retail/chadstone-mall-%24500-million-expansion-wins-victorian-government-planning-approval/2012111257765">a $500 million expansion of Chadstone Mall.</a>
The expansion plans include the building of twin 14-storey buildings comprising offices and a hotel at the southern end of the mall, two floors of international retailers, refurbishments of the cinemas and food precincts, and the addition of 1,400 new car-parking spaces.
The Shopping Centre News report found that around $40 billion was spent across 93 “big gun” malls over 2012 with 52 reporting an incerase in sales and 33 experienced a decrease in sales.
Overall 2012, retail spending across the 93 malls grew 1.7% over the year.
This was below national retail sales growth of 2.5% as recorded by the ABS.
Image courtesy of Flickr.
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Chadstone, the nation's biggest shopping mall, records 5% retail sales growth

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<img alt="macreemarch20one" height="94" width="470" src="/images/stories/2013/03/macreemarch20one.gif">
John Macree says he loves selling industrial manufacturing plants as they are "often like a time capsule back to a very different era".
<img src="/images/stories/2013/02/macreemarch20two.png" width="200" height="200" alt="macreemarch20two" style="margin: 5px; float: left;">Agent: John Macree
Position: head of NSW sales and investments
Company: Jones Lang LaSalle
Office location: Sydney

How long have you been in the industry? 
28 years. I started in property management working at Government Insurance Office GIO. I then moved into industrial sales and leasing with Hooker Corporation in the mid-1980s. I’ve been in sales with Jones Lang LaSalle for the past 13 years. 
What’s happening in the area you specialise in? 
There’s strong demand for well-leased passive investments in all price points. Current active buyer groups in the sub-$20m range include private investors and self-managed super funds. In the over-$20m range, institutional investors – both listed and wholesale – as well as offshore buyers are active. Residential development sites are in demand – particularly those within a 20km radius of the CBD. 
Describe the most interesting property you have sold. 
I love selling industrial manufacturing plants; they are often like a time capsule back to a very different era. One of the more interesting manufacturing sales was the Capral Aluminium manufacturing facility at Rose Hill. They manufactured a range of products from aluminium and ingots. 
The site had a range of sale issues including flood affectations and site contamination. It also had bomb shelters that were built during WWII – at the time it was identified as a potential target. The reason was that it manufactured aircraft propellers for the war effort. It made it an interesting protracted sale process. 
The property has now been redeveloped and is a premier Industrial business park owned by the Goodman Group. 
What are the ingredients to being successful in your job? 
Understanding the clients’ needs, and being able to manage issues. The role is more than a sales role – it involves problem solving, providing counsel as well as negotiation skills. 
What aspects of your role do you enjoy the most? 
Re-selling properties for clients – particularly those that are making a healthy profit. 
Where would you invest a spare $750,000? 
I would leverage it into property and invest a small portion into equities. 
Which football team do you support? 
Waratahs in rugby, Manly in NRL and Swans in AFL.
What’s your favourite app or techno gadget? 
My iPad. 
Follow on Twitter or LinkedIn (provide details): 
Twitter: <a target="_blank" href="https://www.twitter.com/jllaustralia">www.twitter.com/jllaustralia</a>
LinkedIn: <a target="_blank" href="https://au.linkedin.com/pub/john-macree/55/433/3b0">https://au.linkedin.com/pub/john-macree/55/433/3b0</a>
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In profile: Jones Lang LaSalle’s head of NSW sales and investments John Macree

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The premises of a brothel formerly owned by bankrupted Gold Coast entrepreneur Ken Lacey have been listed for April 3 auction.
The <a href="https://www.commercialrealestate.com.au/property/2010324947/for-sale/nsw/chinderah/industrial-warehouse" target="_blank">31-33 Morton Street, Chinderah</a>, property is near <a href="/news">Tweed Heads</a> on the far north coast of NSW.
The listing includes photos of the entertainment area complete with pole-dancing space as well as of the bedrooms, one of which has a jacuzzi and tiger print pillows.
{yoogallery src=[images/stories/2013/03/march20lacey]}
The vacant property comprises a 568-square-metre two-level building, which has current approval for a 24-hour brothel formerly known as Lacey’s Club Lace bordello.
The listing of the brothel made front page news in the <a href="https://www.goldcoast.com.au/article/2013/03/20/448963_gold-coast-news" target="_blank">Gold Coast Bulletin</a> today after one of Ken Lacey's sons  - Jade Lacey - had his current prison sentence extended by two years.  Another son - Dionne Lacey - is also serving a long jail sentence.
Sam Johnson and James Shugg of Ray White Commercial Coolangatta/Tweed Heads have the listing.
Johnson tells Property Observer, the property offers investors net yields of around 8% to 10%.
"We've received 11 serious enquiries and had a 127 hits on the website, so there's good interest in the property," he says.
Johnson says the property would appeal to investors or developers who might also be interested in running the brothel, which is currently vacant.
Development approval to expand the existing facilities with 19 industrial units expired in January, but could be easily renewed, he says.
“The approved brothel has recently undergone a complete refurbishment,” Johnson says.
“This was a high-class brothel which the former milk magnate Ken Lacey had originally purchased as an inheritance for his sons Jade and Dionne, who are presently serving prison sentences for a number of offences.
“Ken has withdrawn from the sex industry and the property will be sold vacant.
“The property certainly has a colourful history as a previous owner of the brothel Victor Elliott was gunned down there in a contract killing in 2000.”
Shugg says the total land area of the property was 4,093 sqm and there was potential gross rental income of $180,000 per annum.
“The property also includes two large 200-square-metre warehouses with an attached 85-square-metre office,” he said.
“There’s an additional 2000-square-metre of hardstand with approval for 19 industrial units.”
Last September, Property Observer reported on a brothel in the outer Melbourne suburb of Campbellfield which had $3 million price hopes but was <a href="https://www.propertyobserver.com.au/leisure/campbellfield-brothel-fails-to-perform-at-auction-and-passed-in-at-%2428-million/2012092856879" target="_blank">passed in at auction</a>.
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Former Ken Lacey Tweed Heads brothel premises with pole dancing space listed for April auction

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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