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Australia’s biggest mortgage broking franchise Mortgage Choice has reported a 20% rise in interim profits with CEO Michael Russell saying the group is optimistic about the housing and home loan markets for the first time in a number of years.
“Housing prices looked to have bottomed and are gradually on their way up,” said Michael Russell at the group's results briefing today.
The group reported interim profits for the six months to December of $7.8 million compared with $6.5 million in the previous corresponding period, in line with previous guidance.
The core Mortgage Choice loan book grew 4.7% to $44.4 billion with approvals down slightly (0.4% to $5.09 billion) and settlements up 2.1% to $4.43 billion.
Mortgage Choice added six franchisees over the six month period to stand at 386 franchises, its highest number of franchisees since January 2009.
After a tough five or six years for the group, mortgage brokers and the market overall, Russell said Mortgage Choice was “optimistic for first time in number of years”.
“Early talks about green shoots were premature a few year back, but looking at the dynamics now, there are sustainable green shoots appearing.
“We are quite buoyed by this."
Russell pointed to RP Data-Rismark figures showing capital city dwelling prices, up for month of January up for the last quarter and up year-on-year.
He noted the resilience in the Melbourne market – the weakest market for Mortgage Choice settlements.
While dwelling prices were down year-on-year in Melbourne, he said it was good to see Melbourne dwelling prices up for the month of January.
“Housing prices looked to have bottomed and are gradually on their way up,” said Russell.
He also noted that consumer sentiment – a significant contributor to the housing and mortgage industry – was finally rising, having “suffered from an extremely long lag time” following 175 basis points being taken off cash rate in past 14 months.
Also supporting the housing market, Russell says, is continued population growth, a housing undersupply issue, “which will form a nice base for housing price growth” and low unemployment, which is “comfortably constrained”.
The interim results show that settlements growth was driven by WA franchisees with settlements up 19% to $469 million  and Queensland up 10% to $1.97 billion in settlements.
This helped correct a small 2% slide in settlements in Mortgage Choice’s biggest market, NSW, which makes up 35% of settlements. Settlements in NSW fell from $1.56 billion to $1.53 billion.
Victorian market hardest for Mortgage Choice, significantly down on year on year basis, with a 4% drop in settlements to $979 million.
Mortgage Choice suffered a small drop in its share of mortgage lending, which fell from 4.1% to 4%. Russell attributed to preparations for a new marketing campaign in March.
"We have held back on marketing spend to give the campaign the best opportunity to be successful,” Russell said.
The group will pay an interim dividend of 6 cents per share.
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Mortgage Choice interim profits up 20% and optimistic about housing market for first time in years

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The Perth CBD is expected to be the top performing capital city office market this year despite mining companies reducing their costs and office space requirements, says BIS Shrapnel chief economist Frank Gelber.
However, Sydney is the best bet over the next five years with very little new CBD office space coming onto the market over this time period.
“As demand recovers, vacancy rates will tighten, leasing incentives will reduce, rents and property values will rise,” he says.
Gelber expects Sydney to be the top performing office market from 2014 onwards, despite projects like Barangaroo South adding over 120,000 square metres in new office space and due for completion in 2015.
He says the impact of Barangaroo has been built into BIS Shrapnel’s forecasts and he rejects “crazy comments” about the project pushing the Sydney vacancy rate to as high as 9%.
However, he says the other capital city office markets including Melbourne are “way behind”.
BIS Shrapnel is forecasting the Melbourne vacancy rate to reach 10% over the next few years from a current vacancy rate of 6.9%.
New projects and a lack of demand for fringe office space will also keep the vacancy rate elevated in Brisbane.
“This year, we think Perth will again top the pops – despite a recent setback in demand.
“While strong in the first half, net absorption turned negative in the second half of the year,” Gelber writes in The Australian.
Negative net absorption means that more office space was vacated than leased over the second half of 2012  - as mining companies downsized their space requirements.
Gelber highlights though that while mining investment is no longer growing at the “extraordinary rate that drove growth in mining services and hence office demand over the past decade, “it is [still] growing”.
Furthermore supply will dry up once the current spate of office projects are completed.
According to the most recent Property Council of Australia office report for the second half of 2012, the Perth CBD vacancy rate eased from 4.2% to 5.7% in December, but still remains the tightest capital city CBD office market.
“The Perth office market was affected by cost-cutting in resources companies, particularly the iron ore sector, last year. This resulted in less demand for office space by firms providing professional services to the sector”, said Property Council executive director, Joe Lenzo.
Lenzo says demand for Perth office space was at its weakest since 2009, with premium office space experiencing the largest increase in vacancy rates from 1.3% to 4.5% with a negative net absorption of just over 10,000 square metres.
However, mirroring Gelber’s sentiments, he says the new office pipeline will “tighten significantly in 2013” with only 12,249 square metres of new office space coming online in the Perth CBD over the year – a fraction of 180,000 square metres in new office space added in 2012.
From 2014 onwards the new office pipeline will gradually increase again”, he says.
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Perth to be the top office performer in 2013 but Sydney to step up from 2014: Frank Gelber

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It is more expensive to rent office space in Mumbai’s financial district than in the Melbourne or Brisbane CBD, according to the latest global office report from Cushman &amp; Wakefield.
The report refers specifically to Mumbai’s Bandra Kurla Complex (BKC), a planned commercial complex in India’s financial capital.
It consists of a number of commercial buildings with tenants including Dow Chemicals, ICICI Bank and Citibank, as well as being home to the Mumbai Cricket Association's cricket ground and the United States Mumbai Consulate.
Annual rents in Mumbai are around US$80 per square foot per year, compared with around $70 per square foot per year in the Melbourne CBD.
Mumbai ranks as the eighth most expensive Asia Pacific location to rent office space with Brisbane ranking ninth and Melbourne 10th.
 <img alt="mumbai-melbourne_offices" height="470" width="642" src="/images/stories/2013/feb21/mumbai-melbourne_offices.gif">
Photo by Deepak Gupta, courtesy of Flickr
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Mumbai hits Melbourne for six on office rents: Cushman & Wakefield

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Melbourne shopaholics, get your credit cards out and brace yourselves.
Shoppping centre developer GPT will score a retailing first when it opens both a Zara and Topshop in the new wing of its $300 million redevelopment of the Highpoint Shopping Centre in Maribynong,  in less than a month.
It will be the first time in Australia that a shopping centre offers both global fashion brands under one roof.
The arrival of the two global retail brands to Melbourne's inner west comes as Colliers International forecast overseas brands to open around <a target="_blank" href="https://www.propertyobserver.com.au/retail/zara-topshop-and-uniqlo-lead-retail-property-push-into-australia/2013021859421">300 new stores in Australia's capital cities</a> over the next few years, with fashion heavyweights Uniqlo, Zara and Topshop leading the charge.
The new Zara Highpoint store wil act as a cornerstone to connect the new Highpoint wing with the existing centre.
“We’re very pleased to be welcoming Zara to Highpoint and delighted to be the first Australian shopping centre owner to offer customers convenient access to international fashion giants Zara and Topshop under the one roof,” says GPT’s head of asset management Matthew Faddy
Zara forms part of Spanish retail company INDITEX and has over 1,700 stores across 85 markets.
It currently operates a store on the Bourke Street mall in Melbourne.
The first Topshop store in Melbourne opened in the Jam Factory on Chapel Street in the space that was previously occupied by Borders books.
Topshop is UK-based and was started by retailing billionaire Sir Philip Green.
A third Topshop store is due to open in the Myer Emporium currently under construction in the Melbourne CBD.
The new wing will officially open on 14 March with Topshop opening on the same day and Zara opening either on the same day or shortly after
“The second stage of the development will deliver a 14,000 square metre, two-level David Jones store, the first to Melbourne’s West, and approximately 80 new speciality retailers including Australian and international designer fashion, homewares and lifestyle stores. Zara will make an exciting addition to this mix,”   says GPT’s head of development Anthony McNulty.
“Once completed Highpoint will be home to more than 520 retailers, feature new community spaces and accommodate 7,000 car spaces.”
The new Highpoint Fashion Mall, the final stage of the centre’s development, will complement the Fresh Food Market and Eco Mall which opened last year. The Fresh Food Market and Eco Mall opened in October last year and features a Woolworths supermarket plus a range of speciality fresh food, children’s wear, services and general merchandise retailers
Highpoint Shopping Centre is co-owned by Highpoint Property Group, GPT Wholesale Shopping Centre Fund and The GPT Group. 
It is valued at $845 million as of December 31.
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Highpoint scheduled March opening for Zara and Topshop double-act

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Bank of Melbourne has followed sister-bank St.George by cutting its two-year fixed rate to 4.99%.
It follows <a href="/news">ME Bank cutting its three-year fixed rate</a> to 4.99% and all the major banks cutting their two-year fixed rates to 4.99% in the last few weeks.
Bank of Melbourne replaced St.George as Westpac’s Victorian brand in March 2011.
The bank also cut its three, four and five year fixed-rate home loans today.
New customers as well as existing customers switching into a new fixed rate can access a 2-year fixed home loan rate of 4.99% p.a. under Bank of Melbourne’s advantage package, once the advantage discount of 0.15% per annum is applied.
The Bank of Melbourne also promise to beat any equivalent home loan rate advertised by the major banks on fixed or variable rates until March 31.
As an added incentive, customers looking to switch their home loan from another bank will also receive a $700 rebate under Bank of Melbourne’s advantage package.
Bank of Melbourne chief executive Scott Tanner said “countless Victorians” have already taken advantage of its promise to beat any advertised equivalent home loan rate being offered by the major banks.
The following fixed home loan rates under an Advantage Package are as follows, once the Advantage Package discount of 0.15% per annum is applied:
<table cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td valign="top" width="140">
Old Rate
</td>
<td valign="top" width="132">
New Rate
</td>
</tr>
<tr>
<td valign="top" width="140">
1-year 5.39% per annum
</td>
<td valign="top" width="132">
5.15% per annum
</td>
</tr>
<tr>
<td valign="top" width="140">
2-year 5.29% per annum
</td>
<td valign="top" width="132">
4.99% per annum
</td>
</tr>
<tr>
<td valign="top" width="140">
3-year 5.39% per annum
</td>
<td valign="top" width="132">
5.29% per annum
</td>
</tr>
<tr>
<td valign="top" width="140">
4-year 5.79% per annum
</td>
<td valign="top" width="132">
5.64% per annum
</td>
</tr>
<tr>
<td valign="top" width="140">
5-year 5.79% per annum
</td>
<td valign="top" width="132">
5.69% per annum
</td>
</tr>
</tbody></table>
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Bank of Melbourne cuts fixed rates with two-year offering reduced to 4.99%

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The Sydney CBD market has maintained its ninth-placed ranking among the list of the most expensive locations in the world to rent office space.
Sydney has an occupancy cost of €992 per square metre, according to Cushman &amp; Wakefield’s Office Space Across the World 2013 report


Occupancy costs include base rent, turnover rent and other outgoings and expenses.
The  top ten list is headed by London’s West End (€2,137 per square metre), which regained its crown from Hong Kong’s Central Business District (€1,505 per square metre),
The biggest upward move was made by Rio de Janeiro’s Zona Sul which went from eighth most expensive office market to third most expensive.
Managing director of Cushman &amp; Wakefield Australia David Woolford says Sydney’s ninth place ranking in terms of global office occupancy costs confirms its position as a world class financial centre.
“This ranking reflects the premium standard of office stock available in Sydney and we expect Barangaroo will raise the bar even higher.
“It is interesting to note there is only a 6-10% differential between the destinations ranked 6 to 10 in this research and Sydney is consistently ranked in the top ten in terms of occupancy costs in the world,” he says.
<table style="width: 470px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="491" colspan="6" valign="top">
Top 10 most expensive office locations by country
</td>
<td width="109" valign="top">
 
</td>
</tr>
<tr>
<td width="75" valign="top">
2012 rank
</td>
<td width="76" valign="top">
2013 rank
</td>
<td width="83" valign="top">
country
</td>
<td width="75" valign="top">
city
</td>
<td width="85" valign="top">
location
</td>
<td width="97" valign="top">
occupancy cost (€/sq.m/year)
</td>
<td width="109" valign="top">
Occupancy Cost (US$/sq.ft/year)
</td>
</tr>
<tr>
<td width="75" valign="top">
2
</td>
<td width="76" valign="top">
1
</td>
<td width="83" valign="top">
UK
</td>
<td width="75" valign="top">
London
</td>
<td width="85" valign="top">
West End
</td>
<td width="97" valign="top">
2,137
</td>
<td width="109" valign="top">
262
</td>
</tr>
<tr>
<td width="75" valign="top">
1
</td>
<td width="76" valign="top">
2
</td>
<td width="83" valign="top">
Hong Kong
</td>
<td width="75" valign="top">
Hong Kong
</td>
<td width="85" valign="top">
CBD
</td>
<td width="97" valign="top">
1,505
</td>
<td width="109" valign="top">
184
</td>
</tr>
<tr>
<td width="75" valign="top">
8
</td>
<td width="76" valign="top">
3
</td>
<td width="83" valign="top">
Brazil
</td>
<td width="75" valign="top">
Rio de Janeiro
</td>
<td width="85" valign="top">
Zona Sul
</td>
<td width="97" valign="top">
1,343
</td>
<td width="109" valign="top">
165
</td>
</tr>
<tr>
<td width="75" valign="top">
5
</td>
<td width="76" valign="top">
4
</td>
<td width="83" valign="top">
India
</td>
<td width="75" valign="top">
New Delhi
</td>
<td width="85" valign="top">
Connaught Place
</td>
<td width="97" valign="top">
1,324
</td>
<td width="109" valign="top">
162
</td>
</tr>
<tr>
<td width="75" valign="top">
3
</td>
<td width="76" valign="top">
5
</td>
<td width="83" valign="top">
Japan
</td>
<td width="75" valign="top">
Tokyo
</td>
<td width="85" valign="top">
CBD (5 Central Wards)
</td>
<td width="97" valign="top">
1,274
</td>
<td width="109" valign="top">
156
</td>
</tr>
<tr>
<td width="75" valign="top">
4
</td>
<td width="76" valign="top">
6
</td>
<td width="83" valign="top">
Russia
</td>
<td width="75" valign="top">
Moscow
</td>
<td width="85" valign="top">
CBD
</td>
<td width="97" valign="top">
1,141
</td>
<td width="109" valign="top">
140
</td>
</tr>
<tr>
<td width="75" valign="top">
6
</td>
<td width="76" valign="top">
7
</td>
<td width="83" valign="top">
China
</td>
<td width="75" valign="top">
Beijing
</td>
<td width="85" valign="top">
CBD
</td>
<td width="97" valign="top">
1,074
</td>
<td width="109" valign="top">
132
</td>
</tr>
<tr>
<td width="75" valign="top">
7
</td>
<td width="76" valign="top">
8
</td>
<td width="83" valign="top">
USA
</td>
<td width="75" valign="top">
New York
</td>
<td width="85" valign="top">
Midtown (Madison/5th Avenue)
</td>
<td width="97" valign="top">
1,052
</td>
<td width="109" valign="top">
129
</td>
</tr>
<tr>
<td width="75" valign="top">
9
</td>
<td width="76" valign="top">
9
</td>
<td width="83" valign="top">
Australia
</td>
<td width="75" valign="top">
Sydney
</td>
<td width="85" valign="top">
CBD
</td>
<td width="97" valign="top">
992
</td>
<td width="109" valign="top">
122
</td>
</tr>
<tr>
<td width="75" valign="top">
10
</td>
<td width="76" valign="top">
10
</td>
<td width="83" valign="top">
France
</td>
<td width="75" valign="top">
Paris
</td>
<td width="85" valign="top">
CBD
</td>
<td width="97" valign="top">
915
</td>
<td width="109" valign="top">
112
</td>
</tr>
</tbody></table>
 Source: Cushman &amp; Wakefield
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Sydney remains ninth most expensive office rental market in the world: Cushman & Wakefield

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ME Bank has cut its three-year fixed standard home loan rate to 4.99% p.a. on both packaged and non-packaged loans.
It is the first lender to cut its three-year fixed home loan rate below 5% - other lenders have all cut their less popular two-year fixed-rate offerings.
The new rate is 40 basis points below the lowest major bank three-year fixed rate of 5.39% offered by NAB.
The new three-year fixed rate, available to eligible super fund and union members, is currently the lowest in the market and the lowest ME Bank has offered since becoming a bank in 2001. 
The offer is available for a limited time.
“Now is an excellent time to fix rates,” said Jamie McPhee, ME Bank chief executive. 
“With rates at 30-year lows and signs global economies are improving there is limited scope for the Reserve Bank of Australia (RBA) to make further rate reductions.” 
“Therefore fixed rates – usually a good indicator of the future RBA cash rate – may not get much cheaper.”
 “It won’t get much better than this.”
 “When considering their decision to fix, borrowers should also think in terms of personal circumstances.”
“Fixing is like insurance: if your current circumstances mean higher rates put you under stress then fixing can be an important strategy - the trade off is reduced flexibility and there may be costs if you decide to exit early.” 
 
<table border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top">
 
</td>
<td width="69" valign="top">
MEB
</td>
<td width="69" valign="top">
WBC
</td>
<td width="69" valign="top">
CBA
</td>
<td width="69" valign="top">
NAB
</td>
<td width="69" valign="top">
ANZ
</td>
</tr>
<tr>
<td valign="top">
 
</td>
<td width="69" valign="top">
 
</td>
<td width="69" valign="top">
 
</td>
<td width="69" valign="top">
 
</td>
<td width="69" valign="top">
 
</td>
<td width="69" valign="top">
 
</td>
</tr>
<tr>
<td valign="top">
Three year fixed
</td>
<td width="69" valign="top">
4.99
</td>
<td width="69" valign="top">
5.49
</td>
<td width="69" valign="top">
5.44
</td>
<td width="69" valign="top">
5.39
</td>
<td width="69" valign="top">
5.44
</td>
</tr>
</tbody></table>
 
Table  – Non-packaged three year fixed home loan rates. Source: Infochoice 20/02/2013. 
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ME Bank cuts three-year fixed to 4.99%

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St George has cut its two-year fixed home loan by 30 basis points to 4.99% per annum - effective from today.
The rate is available for borrowers who sign up to St.George’s Advantage Package home loan offer and is for a limited time.
It joins the <a target="_blank" href="/news">major banks and fellow Westpac-brand RAMS</a> by offering a fixed-rate home loan under 5% as well as a number of non-bank and mutual lenders offering this rate or lower.
St George says it now offers the lowest fixed rates in the market compared with the major banks for two, three, four and five years under its Advantage Package with a three-year fixed rate of 5.29%, four-year fixed at 5.64% and five-year fixed a t 5.69%.
These new fixed home loan rates are available for a limited time for new customers, as well as for existing customers who would like to fix part, or all, of their current home loan.
Customers with fixed rate applications underway that have not yet settled are also eligible for these new lower interest rates.
St George is running a number of promotions to sign up new borrowers.
Until March 31, St George is offering to beat any advertised home loan rate offered by the four major banks, for new customers.
In addition, anyone who applies for a St George home loan receives a free Australian Property Monitors (APM) property profile report for the property they are interested in buying and its location.
St.George also offers conditional loan pre-approval that is valid for 6 months, as well as a low 5% deposit requirement to help customers get into their home sooner.
“We know that many customers like the security of having a set loan repayment each month, so fixed interest home loans are a very popular choice and can really help customers manage their personal finances more effectively. Customers also have the option to split their home loan between fixed and variable rates,” says Andy Fell, general manager for St George Retail Banking.
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St George the latest to offer a two-year fixed rate of 4.99%

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Expressions of interest close today for a development site in the east Melbourne suburb of Blackburn that was once a fruit orchard and forms part of the estate of  the late Alan Herbert ‘Bert’ Cock, who played VFL in the early 1900s.
He died in April last year.
Cock played just two games for Collingwood in 1909 scoring one goal.
His brother, Eric was a more successful VFL player and a member of the Collingwood team which contested the 1922 VFL Grand Final playing 36 games and scoring 40 goals.
Another brother, Arthur, played two games for St Kilda in 1924.
The 10,360 square metre property stands at 59-67 Surrey Road, Blackburn North with three street frontages, 12 title allotments and is a 20-minute drive to the Melbourne CBD.
The portion up for sale is the remnant of the original 8.9 hectare estate, which was originally a large orchard operated by Bob Slater through the first half of the 1900s, and which is now the children’s playground known as Slater Reserve.
Since 1919 it has been owned by Herbert and Eva Cock or their immediate descendants.
The property harks back to the days when Blackburn was a country suburb, with the investment report noting that “all five family members loved the property and spent much of their lives on it watching its evolution from quiet countryside to busy suburbia”.
Eva Phillips, one of 14 siblings in a large orcharding family in Tunstall (now Nunawading) married Bert, a VFL footballer from Clifton Hill in 1914.
When they purchased the land in 1919, Bert and Eva, built a two room cottage close to Koonung Creek (now lot 11 Kent Close) and some 20 acres of orchard was painstakingly established.
Produce was initially taken by horse and wagon to Victoria Market however, with the development of reliable trucks and refrigerated transport, produce was trucked to the Blue Moon Co-operative (rail siding to the east of Blackburn Station) then shipped from Station Pier to Europe.
By the mid-1950s and to support their retirement, around 7.7 hectares of the property was sub-divided for urban housing. All five family members loved the property and spent much of their lives on it watching its evolution from quiet countryside to busy suburbia.
<a target="_blank" href="https://www.woodards.com.au/index.cfm?pagecall=property&amp;propertyid=2234678">It is being sold by Julian Badenach and Cameron Way of Woodwards with expectations of a price in excess of $4 million</a>.
“We are expecting interest from a number of investment bodies. Aged care services,  property developers interested in land subdivision for the creation of small house blocks as well as medium and high density units, townhouses and apartments are all showing interest,” Badenach tells Property Observer.
The land is zoned Residential 1 Zone and is close to Westfield Doncaster, Centro Box Hill and Blackburn North Village retail strip.
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Blackburn orchard owned by former VFL player Bert Cock seeks $4 million from developers

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The stars have well and truly aligned for Asian buyers wanting to invest in Australian residential projects.
The most recent development has been the introduction of “golden ticket” visas aimed at fast-tracking wealthy Asian investors’ entrance into Australia with a provisional four-year visa followed by the opportunity to apply for permanent residency.
The new Significant Investor Stream Visa (as it is officially known) requires an investment of at least $5 million in state or territory bonds; an ASIC-regulated managed investment fund; or a direct investment in an Australian company, which would include investments in commercial property backing a business such as a hotel or lodge.
The visa allows immigrants to skip skilled migration requirements such as being proficient in English and requires immigrants spend a minimum of just 40 days a year in Australia over the four-year visa period.
There is also no upper age limit, and the main applicant does not have to meet the business points test.
The Foreign Investment Review Board (FIRB) requirements must still be met under the visa 188 and 888. However, most commercial enterprises have a substantial financial threshold (currently $244 million) before requiring FIRB approval.
Tony Hogarth, who is a registered migration agent, says it is significant that English language is not a requirement for these visas
“This is likely to open up the Australian market to Chinese investors in particular, where language skills may have been a prohibitive factor in the past.”
The visa complements a number of factors that make investing in Australian residential projects particularly appealing to Asian investors.
According to Savills Australia’s Victorian investment directors, Clinton Baxter and Nick Peden, Asian investors already benefit from easy access to capital, and they also have tremendous competitive advantages over local developers of residential projects, including:
• Lower costs of funds from offshore sources;
• Established project marketing avenues in south-east Asia, leading to strong and rapid pre-sales of apartments; and
• A capacity to bypass onerous pre-sale requirements of the local banks.
These factors allow Asia-based developers to respond more rapidly to market conditions and deliver projects more quickly than most local developers.
“We regularly have several offshore buyers vying for the same property, such is the depth of interest and flow of capital from Asia into the Melbourne market,” say Baxter and Peden.
CBRE associate director Mark Wizel says there can be no doubt many of the new entrants have a far greater ability to contribute their own equity to both development projects and investment assets.
Furthermore, Wizel says that a lot of mainland Chinese developers are not adverse to risk and aggressively gear their projects, especially in the development space.
“We have seen many examples of Malaysian, Singaporean and Chinese developers using local Australian banks for senior debt funding and believe this will continue.
 “One area of particular note, however, is the emergence of offshore banks (mainly Asian) wanting to undertake funding of Australian development projects and investment assets,” he says.
“2012 saw the opening in Collins Street of retail branches for ICBC (the world’s biggest bank) and China Construction Bank, both of Chinese origin and both who have already shown a strong interest in supporting Chinese developers and investors in Melbourne.
“These banks join the Bank of China in Melbourne, who have been here for some time and whose appetite towards large scale lending is no doubt increasing,” he says.
In addition, Wizel says it is understood that OCBC from Malaysia has also been very active as an offshore lender to Malaysian developers working on projects in Melbourne.
Wizel says simple things like the language barrier and the ability to understand that mentality of Asian developers given Chinese bank an advantage over local banks.
In addition to financial factors, Wizel says both Malaysian and Chinese ties with Melbourne go back many decades.
He says Malaysians have an affinity with the city dating back more than 30 years, where many prominent Malaysian property players were educated and where the investment relationship into direct property commenced in the late 1980s.
“In relation to mainland Chinese investment, it needs to be noted that Melbourne has a strong history with Chinese people, this is no better understood than the fact that our Chinatown precinct is known to be the oldest Chinatown precinct anywhere in the world with San Fransisco’s Chinatown precinct coming second,” he says.
For more on Australia’s allure for Asian residential property investment, <a target="_blank" href="http://propertyobserver.com.au/ebooks/free-ebook-australias-allure-for-asian-residential-property-investment">download our free eBook</a>. It is also<a target="_blank" href="http://propertyobserver.com.au/ebooks/australias-allure-for-asian-residential-property-investment-free-ebook"> available in Chinese.</a>
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New 'Golden Ticket' visa offers further advantages for cashed-up Asian investors keen on Australian real estate

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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