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The US Masters Residential Property Fund, which invests directly in residential property in New Jersey and New York, has joined the S&amp;P/ASX All Ordinaries Index.
The index comprises the 500 largest companies listed on the Australian Stock Exchange.
Since December, the fund's share price has risen strongly from around $1.60 in December to currently trade close to $1.90.
It has a market value in excess of $315 million, placing it comfortably in the top 500.
The fund, which is managed by Dixon Advisory, has gone <a target="_blank" href="https://www.propertyobserver.com.au/overseas/us-masters-fund-moves-upmarket-with-historic-hells-kitchen-and-harlem-acquisitions/2013011758752">distinctly upmarket in recent months</a>, paying US$3 million for a historic four-storey apartment building in trendy Hell’s Kitchen in the heart of Manhattan and spending US$1.8 million on a “limestone mansion” in Harlem.
It has to date raised US$264 million from Australian investors and purchased 463 freestanding homes and apartment blocks in New Jersey, Manhattan and Brooklyn (some of which are pictured below).
<img src="/images/stories/2013/03/usmastersmarch14one.jpg" width="400" height="585" alt="usmastersmarch14one">
Fund managing director Alan Dixon said strong growth and investor support had helped put the fund among the 500 largest companies listed on Australian Stock Exchange. 
“Two years ago, when we launched the US Masters Residential Property Fund, we saw an historic opportunity to acquire high quality US residential property at attractive valuations using the strong Australian dollar,” Dixon said.
Since then, the Fund has secured over 400 freestanding houses and 15 apartment blocks for a total acquisition cost of approximately US$200 million across our target market, the New York metropolitan area.
<img src="/images/stories/2013/03/usmastersmarch14two.jpg" width="400" height="580" alt="usmastersmarch14two">
“Calendar 2012 was a year of many achievements for the Fund, including successfully raising US$165 million, expanding our purchasing activity into Manhattan and Brooklyn, New York, and recording a maiden upward revaluation on our existing investment portfolio of US$5.7 million. 
“It is particularly pleasing to be able to begin 2013 with another significant milestone, as a member of the All Ordinaries Index," says Dixon.
<img src="/images/stories/2013/03/usmastersmarch14three.jpg" width="400" height="533" alt="usmastersmarch14three">
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US Masters Residential Fund joins S&P All Ordinaries

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The Reserve Bank is not expected to cut the cash rate again in 2013, according to Australia’s biggest mortgage lender the Commonwealth Bank.
Following the release yesterday of weak <a target="_blank" href="/news">January housing finance data </a>– owner-occupier home loan commitments down 1.5% - Commonwealth Bank economist Diana Mousina noted there were some encouraging signs with construction lending to owner occupiers and investors rising 4.7% over the month.
“An improvement in the housing market underpins the RBA’s expectation that the non?mining economy will lift as mining investment slows down over the next two years. 
“While yesterday's data was weak overall, it was encouraging to see construction lending rise moderately,” says Mousina.
“History tells us that residential construction activity can make a significant contribution to GDP growth.
“The typical residential upturn adds around two to three percentage points to GDP growth over the average two- to three-year cycle.
“While we will need to see stronger growth in the non?mining economy over the near term, mining capex plans indicate that the slowdown in mining investment will occur gradually.
“So, the medium?term outlook for domestic growth remains quite positive. In this environment, the RBA is unlikely to cut the cash rate again. We expect the cash rate to be maintained at 3% throughout 2013,” she says.
 
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We expect the cash rate to be maintained at 3% throughout 2013: Commonwealth Bank

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The shopping centre rental outlook is improving with the number of shopping centre managers reporting an improvement in tenant enquiry outnumbering those reporting weak tenant enquiry for the first time in over 18 months. 
The last time this occured was in September 2011 quarter.
This was the headline result of the latest Jones Lang LaSalle Shopping Centre managers’ survey carried out in February, which also found that customer foot traffic increased and passing specialty rents showed improved growth.
Customer numbers grew by an average 2.8% over 2012, according to the survey, which is based on the views of 96 shopping centre managers in Jones Lang LaSalle’s managed portfolio.
 
<img src="/images/stories/2013/tenant_enquiry.gif" width="600" height="445" alt="tenant_enquiry">
“Leasing enquiry levels strengthened in the December quarter, with 27% of centre managers reporting stronger enquiry compared with just 18% in the September quarter,” says Richard Fennell, Australian head of property Management at Jones Lang LaSalle. 
The improved rental sentiment comes as department store retailer Myer – an anchor tenant in many shopping centres - reported better-than-expected interim net profits of $88 million in the first six months of its financial year to January 26 and total sales up 2% to $1.73 billion. 
Analysts had tipped interim net profits of around $85 million. 
The outlook for retail sales is also more bullish with 53% of centre managers expecting some growth in sales over the next 12 months. 
Only one in five expected a decline in sales, which is the lowest level in the six surveys conducted to date. 
Less than half of respondents (43%) expect to see rental growth in the next 12 months, but this is up slightly from 39% in the November survey. 
Face specialty store rental growth is also slowly accelerating. 
The average passing specialty rent for sub-regional centres rose to 3.8% over the year to December 2012 up from 3.0% in the year to September 2012, while neighbourhood centre rents rose marginally from 3.5% per annum to 3.6% per annum 
On a state-by-state basis, shopping centre managers in WA were the most positive  about the year ahead, "due to continued strong economic conditions and the relaxation of Sunday trading laws in August 2012". 
Supermarkets and food retailers are the most active retailers looking to expand their operations, although enquiry in all categories remains subdued.
“Retailers are still facing very competitive market conditions and we expect national tenants will continue to take a cautious approach to new store commitments, but encouragingly, the survey found leasing enquiry levels are improving,” says Fennell. 
“The outlook for sales growth and rental growth is still fairly subdued, and centre managers believe the two will be very closely linked over the next 12 months.” 
Jones Lang LaSalle director of research and consulting, David Snowsell said the latest results show that a “level of cautious optimism” coming through but with the view “still very different across individual centres.” 
“The results are consistent with our view that the recovery for retail will be gradual and patchy. 
“Nevertheless, there are some supportive factors which will be positive for the broader retail sector in the short term. Consumer sentiment has improved the last couple of months, and spending within some discretionary retail categories is growing, albeit at a relatively slow rate.” 
“We expect these trends to begin to stimulate shopping centre performance over the short to medium term as the recovery persists,” says Snoswell.
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Shopping centre leasing enquiries rising as overall outlook brightens: Jones Lang LaSalle survey

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The Sydney rental market swung even further in favour of landlords in February with the overall metropolitan vacancy rate tightening from 2.2% to 1.9%.
The rental market tightened noticeably in the outer suburbs (more than 25km from CBD) and the middle suburbs (10-25km from CBD), which both recorded a 0.4% reduction in their vacancy rates to 1.8% and 2% respectively, according to the 2013 Real Estate Institute of NSW (REINSW) Vacancy Rate Survey.
The vacancy rate in the inner suburbs (0-10km from CBD) was unchanged at 2%.
“The residential rental market has contracted during February, in line with our expectations,” said REINSW president Christian Payne.
“The market will continue to tighten due to the lack of supply caused by the Government’s failure to provide appropriate incentives to invest in the property market.
Since July 1, the NSW government has provided investors and other non-first home buyers with a $5,000 grant under its  <a href="https://www.osr.nsw.gov.au/benefits/grant_scheme/" target="_blank">NSW New Home Grant Scheme</a> available to homes bought off the plan or newly built, with a value up to $650,000 and to buyers of vacant land that is intended to be the site of a new home valued up to $450,000.
This replaced the far more generous <a href="https://www.propertyobserver.com.au/residential/nsw-treasurer-mike-baird-defends-timing-of-changes-to-home-buyer-handouts/2012061755150" target="_blank">NSW home builder bonus, </a>which offered potential savings of $22,490 under stamp duty exemptions for new homes not exceeding $600,000 and vacant land not exceeding $400,000. 
The scrapping of this scheme was announced on June 12 last year given investors and owner-occupiers just 18 days to finalise their off the plan purchases.
“This dire situation will not resolve itself. We need action today from the government to address the inadequate, expensive and complex planning system, and an inequitable property tax regime, " says Payne.
“If not remedied, the crisis will continue to have significant negative impacts on the future prospects of NSW both economically and socially,” Payne said.
 
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Sydney rental market tightens to 1.9% vacancy rate with warning of "dire" economic consequences

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The prospect of securing high-yielding investments in a mature, transparent and liquid real estate market is drawing foreign investors to the Australian commercial property market. 
According to CBRE head of research for Australia Stephen McNabb, foreign investor interest in Australian is now stronger than it was pre-GFC, underpinned by property yields which remain globally competitive.
At a commercial property market outlook breakfast today in Melbourne, McNabb presented the following slide in his presentation showing regional retail yields (6.1%), prime office yields (7.4%) as well as industrial grade property yields (8.3%) as well as capital growth prospects for these three asset classes - all of which are attractive to foreign investors.
Click to enlarge
<a href="/images/stories/2013/03/cbremarch13one.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2013/03/cbremarch13onethumb.gif"></a>
McNabb says industrial property is a category in which yields had started to "re-rate for higher growth above long term averages amid increasing logistics demand". 
“This may reflect a structural shift in the growth in internet retailing and its transformation of parts of the delivery chain which is driving demand in the industrial sector. 
“While traditional retailers are gradually losing out to online sales, this is shifting activity between the retail and industrial sectors, with logistics the key driver.  That said, at a national level we are also seeing a modest recovery in ‘traditional’ retail volumes, albeit at a lower rate of growth than historically and this is also driving the flow of goods around markets,” he said.
McNabb was joined at the breakfast by Dr. Nick Axford, CBRE’s head of Asia Pacific research, who said that despite the relatively high cost of finance and the perceived currency risk, “Australia remains attractive to investors – largely because it is a mature, transparent, liquid real estate market where pricing looks attractive relative to the very low yields prevailing elsewhere in the world”. 
He noted that investors continue to target the real estate sector with investment activity across Asia Pacific continuing to rise and with Australia just one of the markets that has seen increased levels of demand. 
And while investors based outside Asia Pacific had generally been selling more property in the region than they had been buying, he says there is a clear distinction between Asia Pacific as a whole, and the Pacific region, where there has been "a steady rise in investment from outside the region – and a significant uptick over the past six to nine months". 
"Over the year to December 2012, Australia was the most active investment market in Asia Pacific, and was the most popular port of call for investors outside the region," he said.
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Foreign investor interest in Australian commercial property at pre-GFC highs: CBRE

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Consumer confidence continued to rise above two-year highs in March - despite no rate cut.
The Westpac-Melbourne Institute Index of consumer sentiment rose 2%  in March to 110.5, its highest level since December 2010.
This follows a 7<a href="/news">.7% increase in February</a> – the biggest monthly gain since September 2011 – when the index rose from 100.6 in January to 108.3.
It is the fifth month in a row that the index has been above 100 with sentiment now 15% higher than its year ago level.
A reading of 100 or more indicates that optimists outnumber pessimists.
Confidence about buying a house or unit remains high with ‘time to buy a dwelling’ index up 1.6% and is now up almost 20% over the past 12 months.
The latest survey was carried out just after the RBA left the cash rate on hold at 3% on March 5, indicating a more broader improvement in confidence beyond the cost of borrowing money.
Westpac chief economist Bill Evans called it a " strong result" 
“Consumers would have been buoyed by the positive run on markets," Evan said.
Commonwealth Bank economist Gareth Aird says consumer sentiment was "buoyed by increased optimism over family finances and the economic outlook".
"The increase in the attractiveness of dwelling investment stems from lower interest rates, rising rental yields and a stabilisation in house prices," says Aird.
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Consumer confidence continues to rise with home-buyer confidence also high: Westpac index

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The weighted average median house price for Australia’s eight capital cities increased by 3.8% over the December quarter to a median of $533,099, according to figures compiled by the Real Estate Institute of Australia.
Capital city unit prices rose 2.4% over the quarter to a weighted average median of $436,305, according to the REIA.
On the back of these results, REIA president Peter Bushby said first signs were emerging of a “long awaited recovery for the residential property market”.
“It is well known that for the last year and a half, the housing market in Australia has been performing below the trend.
“To those who have been predicting a housing market crash, I would strongly recommend to take a deep breath and have a look at the results recorded for the last quarter of 2012,” he says.
While Bushby's sentiments reflect those of many property analysts, the extend of price rises recorded in the December quarter by the REIA will raise eyebrows.
REIA figures contrast strongly though with those compiled by RP Data over the same period.
RP Data recorded a 1.2% decline in dwelling prices over the December quarter with houses down 1.1% and units down 1.6% over the quarter.
Australian Property Monitors (APM) had house prices up 1.9% over the December quarter and the ABS recorded a 1.6% rise in capital city house prices.
Eyebrows will also be raised at the REIA reporting the largest increases in house prices in Melbourne over the December quarter - up by 7.8% to a median $555,000.
RP Data records Melbourne house prices down 1.5% over the quarter, though with a similar median of $550,000.
The Real Estate Institute of Victoria (REIV) recorded a 2.4% rise in Melbourne house prices over the December quarter on a seasonally-adjusted basis.
Australian Property Monitors (APM) also recorded a 2.4% rise in Melbourne house prices over the December quarter  with a median value of $525,000.
The REIA records a modest 2% rise in Sydney house prices over the quarter to a median of $656,000 while RP Data records a 2% decline and a median of $665,000.
Figures compiled by the REIA int is quarterly report are not seasonally-adjusted.
Sydney, Melbourne, Adelaide and Perth medians are revised once in the next quarterly release. Hobart, Brisbane and Darwin prices are not revised.
The current quarter estimates are based on a high (75% -90%) sample of final sales, current quarter estimates are compared with the revised estimates in previous quarters. Sydney median prices are adjusted for compositional changes.
The REIA report also notes that rental markets in resource-rich states remained tight.
“Underpinned by low vacancy rates, rents in Western Australia and the Northern Territory increased dramatically.
“Compared to the December quarter of 2011, median rents in Darwin increased 22% for houses and 14.3% for other dwellings.
“In Perth, increases were 9.5% for houses and 10.5% for other dwellings. Such conditions, together with lower interest rates and rising yields attract more and more investors back to the housing market.
“As we have said before, property is a long-run strategy. Remaining optimistic about the future of the Australian housing market, I am pleased to see that at the end of 2012, it finally turned.
“This augurs well for 2013,” says Bushby.
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First signs of residential property market recovery: REIA president Peter Bushby

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Nick Collishaw, the former boss of Mirvac until his sudden dismissal in August last year, has been appointed to head up a new listed property funds business at Centuria Property Funds.
Centuria Property Funds is the property funds management subsidiary of ASX-listed Centuria Capital.
Collishaw, as CEO of Centuria Listed Property Funds, will work alongside existing senior property executive Jason Huljich, CEO of Direct Property Funds, who continues to manage the division’s $1 billion direct property funds management business.
He will begin his new role on May 1.
Collishaw was CEO of Mirvac from August 2008, replacing Mirvac co-founder Greg Paramour, now the CEO of property fund manager and developer Folkestone.
<a target="_blank" href="https://www.propertyobserver.com.au/australian-capital-territory/ex-mirvac-boss-nick-collishaw-still-waiting-for-answers-on-sudden-departure/2012110757685">His last day at Mirvac was on October 31</a> with Susan Lloyd-Hurwitz replacing him as Mirvac CEO.
Collishaw will assume responsibility for Centuria’s listed property fund strategy with details of the Groups’ specific intentions in the listed property fund space to be made in the near future.
Centuria Property Funds currently manage 50 properties across 29 unlisted funds with a combined value of over $1.1 billion.
“The board and senior management warmly welcome Nicholas to the Group. On a personal level, we know Nicholas well and we have enormous respect for his experience and his property and capital markets expertise and integrity. It will be a great pleasure working alongside him,” said John McBain, Centuria Capital’s CEO.
Huljich will continue to grow the division’s direct property business.
“Centuria is now able to finalise implementation of its three level property strategy encompassing retail funds, wholesale funds and listed funds which will allow the Group to utilize its fully integrated business platform, offering investors access to a variety of investment options matched to their mandate and risk profile,” says McBain.
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Former Mirvac boss Nick Collishaw to establish listed property funds business at Centuria

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The construction industry is forecast to contract 4% over the three months to May 2013, according to short-term forecasts from the BCI Media Group.
BCI is forecasting $15.6 billion in total construction starts over the three-month period compared with $16.2 billion in the previous three-month period from December to February.
Total building construction is expected to fall 10% over this period with a 20% decline in the value of residential construction (including aged care accommodation).
The longer-term trend shows an 11% pick-up in residential construction for the May quarter of 2013 compared with the May quarter 0f 2012.
<img alt="constructionmarch13chart" height="306" width="470" src="/images/stories/2013/03/constructionmarch13chart.gif">
Commercial construction activity is expected to pick-up by 80% over the May 2013 quarter in line with longer-term growth, up 27% year-on-year.
The fall in total construction starts is being driven by a sharper fall in the infrastructure sector as the government cuts back on spending.
The long-term trend shows total construction starts in Australia at negative 3% when contrasting the value of 12 months’ construction starts against the corresponding 12- month period a year earlier.
BCI says there is unlikely to be any major improvement in the construction sector over the next twelve months as the high Australian Dollar, tight company budgets, and tough bank lending criteria continue to squeeze the market.
Whilst there are some signs of activity in the commercial and residential sectors, the overall building construction market continues to track sideways. On a state level, growth is showing through in New South Wales and Queensland; although in Queensland’s case any optimism needs to be tempered as the market remains nearly twenty per cent below where it was three years ago.
The fall in civil construction starts continued to gather speed.
"While there is anecdotal evidence of a drop in pricing on new jobs in the market, it remains to be seen if this will lead to a pick up in jobs going forward," says Damian Eastman, COO of BCI Media Group.
The Australian Industry Group/HIA Australian Performance of Construction Index for February recorded an expansion in house building and engineering construction with the overall index increasing by 9.4 points to 45.6  in the month, to still remain in contractionary mode, but at a slower rate of decline.
A reading of below 50 indicate a contraction in the industry with the distance from 50 indicative of the strength of the decline.
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Construction industry to contract 4% over next three months and no improvement long-term: BCI

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The demand for accommodation in the resource-rich Pilbara region of Western Australia has helped drive earnings at Perth-based developer Finbar.
Finbar reported net profits of $14.07 million for the half-year to December 31 off revenue of $62.2 million with its multi-stage Pelago project (pictured below) in Karratha the largest generator of earnings over this period.
<img alt="pelagomarch13one" height="353" width="470" src="/images/stories/2013/03/pelagomarch13one.jpg">
This compares with revenue of just $2 million in the previous corresponding period and a loss of $650,000.
The developer completed 85 settlements at Pelago West in August last year with nine additional lots already sold and anticipated to settle in the second half of  the financial year.
Pelago West, rising eight stories, is the first stage of the $225 million project, which will eventually comprise 292 residential apartments and 22 commercial lots with mining projects in close proximity and offering some residents sweeping views of red desert, the nearby Karratha Hills and Nickol Bay.
<img src="/images/stories/2013/03/pelagomarch13two.jpg" width="470" height="353" alt="pelagomarch13two">
One bedroom apartments were priced from above $600,000 when marketing began in 2011.
There are 20 lots still available to purchase, 14 of which are leased to government and large corporate tenants “generating strong rental returns”.
These apartments are now being sold off to individual apartment investors in the open market with prices starting from around $583,000 for a one-bedroom apartment and two-bedroom units priced at $854,000.
<img src="/images/stories/2013/03/pelagomarch13three.jpg" width="470" height="353" alt="pelagomarch13three">
Agents promoting these investments quote a "fair and reasonable rent return" of $1,000 per week for a one-bedroom unit, $1,400 per week for a two-bedroom unit and $1,700 per week for a three-bedder – rental yields of around 9%.
<a href="https://www.propertyobserver.com.au/developments/developer-finbar-making-an-impact-in-wa/2011102051937" target="_blank">Corporate tenants include CHC</a>, one of the world’s largest helicopter transport companies, which agreed a five-year lease on nine one-bedroom apartments at average rent of $1,100 with 4% or CPI increases annually.
Finbar has since begun marketing apartments in Pelago East priced at $604,300 for a one bedroom, one bathroom unit.
Finbar says rental yields are close to 11%.
Pelago East features eight floors of residential and a mixed-use ground floor.
Finbar has also leased 698 square metres of 1,067 square metres of commercial space in Pelago West designated for offices, shops and eateries.
Karratha is within the Shire of Roebourne, which has a gross regional product of $7 billion and representing around 25% of Australia’s exports – iron ore and LNG projects.
Among its Perth apartment projects currently under construction, Finbar reported strong sales in the latter half of the 2012 at ‘Au’ at 208 Adelaide Terrace in East Perth with 176 sales achieved in the 194 lot project.
Ecco at 262 Lord Street has secured 79 sales in the 98 lot project.
Among the other projects the contributed to interim earnings was Lime, featuring residential and office suites in East Victoria Park, Perth, reached practical completion in November with revenues for 20 lots being recognised and contributed to earnings in the six months to December 2012.
A further 68 settlements have occurred in Lime since December 31. All residential lots have now sold out and only 10 commercial lots remain to be sold in the 111 lot project.
Finbar says it is on track to exceed last year’s record profit of $28.3 million after tax.
In July last year, Finbar was selected by the WA state government as the preferred developer of the former Port Hedland Hospital Site, also in Pilbara.
The 3.5 hectare site on Sutherland Street is earmarked to become a major apartment development, overlooking the Spoilbank Marina and directly opposite the Port Hedland Yacht Club. 
The proposed Finbar development will comprise 367 short stay serviced apartments along with a considerable element of ground floor commercial office and retail units, which will reflect the requirements for the State Government funded $152 million marina and tourism precinct.
Managing director Darren Pateman said Finbar was “excited” about its interim results and prospects for the company “in what appears to be an improving market”.
“This company is very well positioned to benefit immediately from increased demand as we have continued our development activity unabated so that we will not be captured by the void that can exist in this industry between increased market demand and the long lag time for bringing on new supply."
Finbar will pay investors an interim dividend of 3.5 cents fully franked on April 19.
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Pilbara apartment project helps drive earnings and profits for WA developer Finbar 

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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