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The debate between positive and negative cash flow property rages, yet there’s no definitive answer. From a purely financial perspective, the majority of people would opt to have a property that pays its own way, doesn’t require them opening their own wallet each week and is growing in value at the same time.
However, not every investment property will fit into this desirable category. Many high capital growth areas offer poor rental yields that are indicative of poor cash flow levels. Similarly, many high cash flow areas have poor growth. It is wise to seek a balance between the two.
Firstly, you will want to consider your level of disposable income.
If you have spare cash and can cover the difference between the holding cost and the rental income, then you may be able to buy negatively geared property.
If you do not, then it may be better to consider positively geared property.
The second factor you should consider is how long you’ll be earning a good income for. This is often determined by age and career security. If you are close to retirement or expecting to see a drop in income, then a negatively geared strategy may not suit.
In a situation like this, you’d be looking more for positive investment options.
However, those far from retirement may have enough income to cover the shortfall by supplementing funds from a wage or salary.
Do not allow a negatively geared property to drain you financially and push you to the wall. But be wary not to be overly tempted by a strong rental income that may not be backed by capital growth – particularly if your strategy is for overall gains.
<h3>Your portfolio</h3>
It’s all about how much it costs you to hold and your overall strategy. Many investors plan to have a negative cash flow property offset by a positive cash flow one.
Over time, it’s also likely that negatively geared properties will move closer to being positive as rent increases and the mortgage is paid down. This will shift those properties from being taxing to generating an income.
Remember, it’s less about being on either end of the polarity, and more about how it balances with your personal level of affordability and overall goals for your portfolio. The first property is usually a launch pad into investing, which means that many use it for its strong capital growth over the medium term to then refinance into another investment. The cash flow at the point is merely circumstantial and, provided it is not problematic, for some it will be the best approach to focus on growth assets.
Those who have not factored cash flow in may find unexpected expenses, such as interest rate changes, maintenance costs and repairs, quickly causing their cash flow to be thrown out – this can be particularly devastating if you’re already paying out more than is comfortable each week. 
Investors should consider the impact of property vacancies and repairs regardless of their cash flow projections.
Remember, negatively geared properties can still be cash flow positive after tax. While those on higher incomes often look to negative gearing benefits to offset their own tax, it's worth remembering that your overall cash position is important, and even properties that are negatively geared can have positive cash flow.

For help getting started in property investment, speak with a RAMS home loan specialist and pick up your free <a href="https://crtl.aimatch.com/pm/adclick/FCID=2759/size=1x1/viewid=1/random=1/relocate=https://www.rams.com.au/investor-pack/" target="_blank">RAMS Investor Pack.</a>

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Disclaimer: Information in this material in general and does not take into account your objectives, financial situation or needs and you should consider whether it is appropriate for you. You should also obtain independent professional advice relevant to your financial circumstances.

The taxation positions described are general statements and should only be used as a guide. It does not constitute tax advice and is based on current tax laws and their interpretation.

<a href="https://www.rams.com.au/home-loans/" rel="nofollow">RAMS Financial Group</a> Pty Limited does not endorse or assume any responsibility for the advice, content or services provided by Property Observer or any other third party referred to in this material.

RAMS Financial Group Pty Limited ABN 30 105 207 538 AR 405465 Australian credit licence 388065. Credit provider and issuer of RAMS deposit products: Westpac Banking Corporation ABN 33 007 457 141 AFSL and Australian credit licence 233714.
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Should I choose a positive or negative cash flow property?

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Many people save up to renovate their properties, but this isn’t necessarily going to suit everyone and some will look for financing options through lenders.
If you’re looking to renovate a property and you need financing, you firstly need to understand how extensive that renovation is going to be.
If your investment property purchase requires a significant renovation, including major structural changes, then some form of a construction loan may still be applicable. These loans are often offered as features onto your mortgage.
While many include different features, lenders often allow the loans to be interest-only during the construction phase.
However, if it’s a smaller, less costly renovation you’re considering, there are a few other financing options. If you are willing to hold the property for a period of time while you build equity, then you may be able to refinance and access the equity, or you may be able to take the extra repayments out of an associated redraw with the loan. If you do decide to redraw, your mortgage repayments and interest will increase in line with the amount you take out, so it's worth figuring out what your extra costs will be and chose the option that best suits your situation.
A line of credit may also be an option, allowing you to only pay interest on the funds you use and offering a revolving door of funds. You should also see your expenses itemised. This suits those that will be gradually renovating over the long term or who are undertaking smaller cosmetic renovations.
Other finance options include personal loans and credit cards. Getting a personal loan can help you budget repayments, however once the loan is paid off you will need to reapply, so it makes sense to get the loan right in the first place. If costs blow out, it could be a problem.
Credit cards can be easy to lose track of and often come with substantially higher interest rates.
Ensure you do your sums before committing.

For help getting started in property investment, speak with a RAMS home loan specialist and pick up your free <a href="https://crtl.aimatch.com/pm/adclick/FCID=2761/size=1x1/viewid=1/random=1/relocate=https://www.rams.com.au/investor-pack/" target="_blank">RAMS Investor Pack.</a>

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Disclaimer: Information in this material in general and does not take into account your objectives, financial situation or needs and you should consider whether it is appropriate for you. You should also obtain independent professional advice relevant to your financial circumstances.

The taxation positions described are general statements and should only be used as a guide. It does not constitute tax advice and is based on current tax laws and their interpretation.

<a href="https://www.rams.com.au/home-loans/" rel="nofollow">RAMS Financial Group</a> Pty Limited does not endorse or assume any responsibility for the advice, content or services provided by Property Observer or any other third party referred to in this material.

RAMS Financial Group Pty Limited ABN 30 105 207 538 AR 405465 Australian credit licence 388065. Credit provider and issuer of RAMS deposit products: Westpac Banking Corporation ABN 33 007 457 141 AFSL and Australian credit licence 233714.
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If I want to renovate the property, what are my finance options?

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For the best results in picking your house and land estate, you’re going to need to do your research and find out what your motivation and needs are from a land point of view. Coming back to your motivation can be useful for perspective, alongside getting out there to the site and standing on the land to understand the landscape for yourself.
Industry-run property portal realestateVIEW.com.au, partnered with houseandland.com.au, has simplified the search process on their site with a house and land section as a reference point to find the block of land that’s right for you.
Property Observer spoke with the director of houseandland.com.au, Mark Shearer, to discuss buying a house and land package in relation to amenities in the area and other points of research.
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Don't get burnt: the investment traps to look out for

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When choosing a home loan, there are a number of factors to take into consideration. One of the main decisions is whether to opt for a fixed, split or variable rate home loan.
While bank loan approvals usually factor in a buffer in case interest rates increase, to ensure you can afford to repay them, the system isn’t foolproof and comes down to the individuals capacity to repay.
In the current interest rate environment, purchasers are increasingly opting for fixed loans. Home loan approval figures regularly put fixed interest rate demand at 25% of the market.
Variable interest rate loans, however, remain Australian borrowers’ favourite option.
But what should you consider?
<h3>Fixed</h3>
Fixed rates provide some peace of mind by ensuring that your repayments remain consistent over time. With rates low, it’s nice to lock in a lower repayment for a long period of time, particularly if you know you’ll struggle should rates increase.
If you’re leaning towards a fixed rate home loan, the biggest decision to consider is the length of time you’d like to lock yourself into the rate for. If interest rates drop over this time, then you could find yourself paying more than you’d have to. Similarly, if you lock in for a short period of time and it ends in the middle of a higher interest rate environment, you may not be able to get the same deal again.
Fixed rates could help you sleep a little easier, knowing that repayments and cash flow will be predictable and consistent over the term of the loan. This will allow you to budget specifically, and not be taken by surprise if rates change.
Paying the loan ahead of the term could see you paying hefty fees, and it may be worth considering a variable rate if your plan is to sell the property after some quickly realised gains. If you’re expecting a windfall and want to pay down your property quicker, or if you want to redraw or increase your loan there may be exit fees which apply.
Some fixed rate loans include redraw facilities, and some have more flexible terms around repayments allowing you to pay extra up to a certain amount.
As of 15th January 2015, the range of three year fixed rate products is around 4.45% p.a. to 5.09% p.a., while one year fixed rates range from around 3.99% p.a. to 4.94% p.a., according to Finder.com.au. Two year fixed rates range from 4.39% p.a. to 4.94% p.a., while five year fixed rates span 4.93% p.a. to 5.65% p.a.
<h3>Variable</h3>
Variable interest rate home loans, however, offer more flexibility. Paying lump sums is easier with fewer associated costs than fixed rate loans.
If you don’t have much capacity to increase your repayments, and bearing in mind what could happen if you end up with a sudden vacancy in an investment property, then you need to be wary of the impact of a rate increase. However, if rates decrease, then you could find yourself with a bit of extra cash on hand or paying off your mortgage sooner than expected.
Variable interest rates do tend to be lower than fixed offerings, and many have more features than fixed rate loans. However, they do have an added volatility level to be aware of.
If you’re borrowing less than you can handle, then you may decide that a variable rate is a good option in the immediate term – you can always fix later if necessary.
As of 15th January 2015, variable rates currently vary from around 4.48% p.a. to 5.26% p.a., according to Finder. Special low or introductory rates can be available for these loans.
<h3>Split</h3>
A split rate home loan is, obviously, the middle ground. Fixing a portion of the loan for that peace of mind, while keeping a separate part variable, can be a good option. This provides you partial protection from future interest rate changes.
This may be a good option if you’re keen to pay down your loan more quickly. In a situation where you’re making extra repayments, you can do so solely on the variable component of your loan.
However, you may also be required to pay the costs should you wish to break the fixed portion of the loan. It still acts very much like a fixed mortgage for that portion of the loan.
Remember, it doesn’t need to be a 50/50 split either. For instance, you may decide to fix $200,000 of a $250,000 loan.
It’s worth speaking to a home loan professional to get a clear understanding of how this may affect your repayments and security overall.
For help getting started in property investment, speak with a RAMS home loan specialist and pick up your free <a href="https://crtl.aimatch.com/pm/adclick/FCID=2754/size=1x1/viewid=1/random=1/relocate=https://www.rams.com.au/investor-pack/" target="_blank">RAMS Investor Pack.</a>
Follow RAMS on <a href="https://crtl.aimatch.com/pm/adclick/FCID=2766/size=1x1/viewid=1/random=1/relocate=https://www.facebook.com/raymondaram" target="_blank">Facebook</a>, <a href="https://crtl.aimatch.com/pm/adclick/FCID=2767/size=1x1/viewid=1/random=1/relocate=https://www.twitter.com/RAMS_AU" target="_blank">Twitter</a> and <a href="https://crtl.aimatch.com/pm/adclick/FCID=2772/size=1x1/viewid=1/random=1/relocate=https://www.linkedin.com/company/rams" target="_blank">LinkedIn</a>
Disclaimer: Information in this material in general and does not take into account your objectives, financial situation or needs and you should consider whether it is appropriate for you. You should also obtain independent professional advice relevant to your financial circumstances.
The taxation positions described are general statements and should only be used as a guide. It does not constitute tax advice and is based on current tax laws and their interpretation.
<a href="https://www.rams.com.au/home-loans/" rel="nofollow">RAMS Financial Group</a> Pty Limited does not endorse or assume any responsibility for the advice, content or services provided by Property Observer or any other third party referred to in this material.
RAMS Financial Group Pty Limited ABN 30 105 207 538 AR 405465 Australian credit licence 388065. Credit provider and issuer of RAMS deposit products: Westpac Banking Corporation ABN 33 007 457 141 AFSL and Australian credit licence 233714.
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Fixed, split or variable interest home loans: How can I decide?

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Expert investors know where, how much, and the likely returns on a property – but there’s no reason why you can’t have that advantage
Finding a great property investment takes a lot more effort than simply showing up on auction day and buying a stunning house.
The expert investors aren’t necessarily looking for the most beautiful property – they’re looking for the one which will deliver an income and capital growth for years to come.
Mark Bouris, executive chairman of wealth management company Yellow Brick Road, says this means not only paying a good price for now, “but a good price for the 10 to 20 years you want to generate income from this property”.
“If you pay too much, you'll lose on capital appreciation and it will take longer to generate clear funds from the rent,” he says.
Bouris says the key is to do your homework and find the best area to purchase in at the best price.
“With an investment property, you are interested in a good location and access to infrastructure such as schools, shops, railway stations and playing parks,” says Bouris. He says that calculating average rents and yields in an area is also useful.
As the old property adage says, ‘location, location, location’.
To get the best return on an investment, it pays to watch local market and identify which way prices are moving and where they are likely to head next.
Steve Jovcevski, a property investment expert and home loan negotiator with comparison service Mozo.com.au, says that once you’ve identified a suburb, looking at the market on a regular basis can help determine whether you’re getting value for money.
“Look at what a property has sold for and make comparisons to another property in the same street or nearby area, seeing if it’s a similar size, or in the same condition, so that you find whether the market is trending upwards or saying static and you know what to expect price-wise,” says Jovcevski.
“If you’re getting a property at a similar price to what is selling up the road, at least you know you’re getting something that someone else is willing to pay for at that price.”
Websites such as Domain and realestate.com.au offer information on what properties have sold and for how much, while companies such as Australian Property Monitors and CoreLogic RP Data provide data on suburbs all across Australia that shows how prices, rents and yields in the area are trending.
Jovcevski says that keeping in touch with local agents can help you discover inside information on properties that may have sold privately.
Australian Bureau of Statistics data, including dwellings types, the percentage of properties owned by landlords, and employment stats, can help paint a portrait of how a suburb’s demographics are changing.
Once you’ve found a property, home loan comparison websites, such as <a href="https://pubads.g.doubleclick.net/gampad/clk?id=136264977&amp;iu=/109628257/click_tracker" target="_blank">Mozo.com.au</a>, can help you find the best rate on the market. But Jovcevski warns that it’s important to get the best deal, but when you’re doing that look at your circumstances.
“It has to be the best rate to suit your circumstances because rates vary depending on your intentions with the loan – there’s all sorts of factors that come into it,” he says.
For information on property loans, rates and more, visit Mozo.com.au or <a href="http://propertyobserver.com.au/forward-planning/tools/ebooks-and-webinars/42368-get-loan-savvy-expert-tips-for-a-first-time-investment-or-refinancing-loan-in-a-free-ebook" target="_blank">click here</a> for the free Property Observer eBook, Get loan-savvy – tips for a first time, investment or refinancing loan, which helps you decide on a home loan that meets your requirements.
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How to watch the market like a pro: Mozo

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Failing to consider changing rates or personal circumstances could lead to repayment challenges down the track
With the official cash rate at an all-time low, many people are looking to take advantage and jump into the property market.
According to independently owned comparison service <a href="https://pubads.g.doubleclick.net/gampad/clk?id=136265217&amp;iu=/109628257/click_tracker" target="_blank">Mozo.com.au</a>, the average variable home loan rate has dropped below 5% - the lowest it’s been since the 1950s. Fixed rates are at record lows with the best one and two year rates now under 4%.
But do the low rates mean that it’s a great time to buy a property? Is it a risk free zone?
In a competitive market, low rates don’t necessarily mean low risk, says Steve Jovcevski, a property investment expert and home loan negotiator with Mozo.
Jovcevski says that with interest rates so low, many buyers are neglecting to do all the necessary research.
“They’re not doing the property building inspections, or seeing if there’s a power line running close by, or checking if they have their finances sorted,” he says.
“There’s all sorts of factors where you could potentially lose your deposit because you may not fit the criteria, so sort out your finances.”
Patrick Bright, founder of Sydney-based buyer’s agency EPS Property Search, says that often prospective buyers get so excited about the idea of purchasing a new home that they forget about evaluating their finances.
“They base their home loan on their current financial circumstances and don’t take into account their future plans, like starting a family, or allowing for the fact that rates will rise at some time in the future,” Bright says.
Bright says that it is important to remember that interest rates won’t stay this low forever. History shows that once interest rates do begin to rise again they can shoot up very fast. For instance, in just 13 months from October 2009 to November 2010 rates increased by almost 2%.
One of the keys to avoid the trap of rising interest rates is to ensure you can afford repayments on a higher amount.
“There’s no downside to making repayments above your required level as it gives you a safety net in case of difficult financial times or allows you to pay off your mortgage sooner,” says Bright.
While low rates are not a reason for borrowers to go overboard, they still represent a great opportunity for a buyer who does research. The Mozo home loan comparison tables show there is still a big difference between the best and worst rates on the market, with variable rates ranging from approximately 4.23% to 6.13% (at the time of writing). This difference can add up to thousands of extra dollars in interest each year, so borrowers still need to do their homework to find a competitive loan.
“A lot of people now think because they can afford the home loan the rates are going to be low forever. Obviously they are not, they change, and when they do go up, people need to make sure today they can afford that home loan 2 or 3% higher,” says Mozo’s Jovcevski.
With record low interest rates it still pays to remain patient and do your homework.
For information on property loans, rates and more, visit Mozo.com.au or <a href="http://propertyobserver.com.au/forward-planning/tools/ebooks-and-webinars/42368-get-loan-savvy-expert-tips-for-a-first-time-investment-or-refinancing-loan-in-a-free-ebook" target="_blank">click here</a> for the free Property Observer eBook, Get loan-savvy – tips for a first time, investment or refinancing loan, which helps you decide on a home loan that meets your requirements.
 
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Why low rates don't mean low risk: Mozo warns on investor traps to avoid

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It’s a big commitment, so it’s best to go in eyes wide open with all the facts
A home loan is one of the most serious investments a person can make.
While online rate comparison tools have made looking for a loan easier than ever, it still takes time to work out what the best option is for you. Here are five expert tips to ensure you are on track.
<h3>1. Know what you can afford</h3>
Interest rates may be low at the moment, but will you still be able to afford the repayments once they begin to rise?
The interest rate is by far the biggest cost of a home loan. As a rule of thumb, an interest rate difference of 1% will increase the annual cost of servicing a typical $300,000 loan by around $2,000.
Kirsty Lamont, a director at mortgage comparison website <a href="https://pubads.g.doubleclick.net/gampad/clk?id=136265697&amp;iu=/109628257/click_tracker" target="_blank">Mozo.com.au</a>, says that when you’re calculating how much to borrow, don’t use current interest rates.
“Consider what will happen down the track when interest rates go up 1% or 2% percentage points or more,” says Lamont.
“Do your calculations by including a buffer to make sure you can still afford to maintain your repayments if rates do rise a couple of percentage points.”
<h3>2. Do your research</h3>
Finding the best home loan can often come down to making sure you do your research on the options available and choosing wisely, says Lamont.
Picking the wrong home loan could cost you tens of thousands of dollars in extra interest and fee charges. The home loan experts at Mozo have crunched the numbers and found that on a typical $300,000 home loan, the difference between the cheapest and most expensive home loans on the market adds up to over $4,000 each year in extra costs. Over 10 years that totals a whopping $40,000.
“These days it’s easy to research home loans online and with comparison sites like Mozo you can literally compare the market at the click of a button so use technology to your advantage,” she says.
<h3>3. Consider your individual circumstances</h3>
While you’re conducting research, make sure you consider your individual circumstances, says Steve Jovcevski, a property investment expert and home loan negotiator with Mozo.com.au.
Consider whether you would like an interest only loan, or a principal and interest loan.
“If you want an interest only loan where you make interest only payments at a low rate, make sure the loan-to-value ratio covers off that rate,” says Jovcevski.
<h3>4. Understand comparison rates</h3>
Borrowers need to check their loan is competitive on the fee front. The average upfront fee you will pay is $500, but some of the best value loans on the market have no application fees at all.
It’s also becoming more common for lenders to waive the application fee if you put pressure on them.
The comparison rate is a government-mandated calculation that includes the interest as well as the loan’s main fees and charges in the one rate and hence more accurately reflects the true cost of a mortgage.
“If you’re searching for something as important as a mortgage, and a comparison rate gives you a chance to level the playing field, you really must pay attention,” says Mark Bouris, executive chairman of wealth management company Yellow Brick Road.
“Because all lenders have to use the same formula, the result gives a borrower the means to compare the true cost of a loan before they commit to it, and it gives some reality to the headline interest rate.”
<h3>5. There’s a lot more than the Big Four</h3>
The big banks and other major lenders commonly charge annual ‘package’ fees of between $200 and $400 a year for a discounted home loan package.
These sorts of packages can offer substantial discounts on the lender’s standard interest rates, particularly if you’re borrowing a large amount, but it always pays to compare package deals against the top low-rate loans from smaller lenders like loans.com.au and uBank to see if you can get a comparable rate without the hefty annual package fees.
For information on property loans, rates and more, visit Mozo.com.au or <a href="http://propertyobserver.com.au/forward-planning/tools/ebooks-and-webinars/42368-get-loan-savvy-expert-tips-for-a-first-time-investment-or-refinancing-loan-in-a-free-ebook" target="_blank">click here</a> for the free Property Observer eBook, Get loan-savvy – tips for a first time, investment or refinancing loan, which helps you decide on a home loan that meets your requirements.
 
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Five expert tips on getting the best loan

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Be prepared, present well and be ready to bargain to make the most of your investment opportunity
Many investors want the biggest loan they can reasonably afford, and there are some clever ways to maximise this opportunity.
By doing your research and knowing what the best rate on the market is, you put yourself in the best bargaining position when you deal with your lender.
“The more research you do, the better informed you will be,” said Marie Mortimer, managing director of loans.com.au.
“Watch what different parts of the mortgage market are doing; for example, what are non-bank lenders offering compared to the big banks?
“Online lenders are experts at keeping costs down that are passed on to customers as low interest rates and low fees. Do the sums and don’t be afraid to look outside the conventional bricks and mortar lending model for a better deal.”
There are certain aspects of your finances that banks look at to determine how much they will let you borrow.
“A strong repayment history, substantial property equity, a co-borrower or guarantor, and demonstrated capacity to meet repayments will help you maximise the amount you can borrow,” says Mortimer.
Once you’ve identified the right loan and made sure that your finances are in order, the next step is to maximise the opportunity.
“Investors often want to be able to borrow the most that they possibly can,” says Kirsty Lamont, a director at mortgage comparison website <a href="https://pubads.g.doubleclick.net/gampad/clk?id=136265937&amp;iu=/109628257/click_tracker" target="_blank">Mozo.com.au</a>. But it’s also important to ensure that you can meet future repayments.
“There are ways to go about maximising how much you can borrow. For instance if you take out a fixed rate loan, banks will calculate your borrowing capacity on the fixed term, e.g. 4 per cent for five years, whereas if you get a variable loan they will add a serviceability buffer of around 2 per cent to the current rate to determine your borrowing capacity.
When you’re looking at maximising your loan, it’s still very important to make sure you’ve done your own affordability calculations and are comfortable that you will still be able to afford those repayments down the track if interest rates rise.”
Many people don’t know that you can negotiate with a lender and by doing so you can often get a much better deal.
“A lot of us are used to the idea of walking into an electrical store and haggling a better deal for a TV, but we don’t feel comfortable haggling on an interest rate when it comes to a home loan,” says Lamont.
“But the banks are very willing to negotiate and it’s not uncommon to save yourself up to 1.2 percentage points by haggling.”
In a Mozo Mystery Shopper experiment, an expert negotiator was sent into ANZ, Commonwealth Bank, NAB and Westpac, posing as a refinancer, a first home buyer and an investor. The results showed that even first home buyers borrowing relatively small amounts could negotiate up to 1 per cent off their interest rates. The experiment also showed that the banks have different levels of discounts and tend to reserve their biggest discounts for people that bargain the hardest.
“Don’t accept the first rate that they offer you, bargain again because they have a range of discount tiers they can access and they won’t necessarily offer you their best discount straight up,” advises Lamont.
“Tell them to try again and say they are going to have to do better to win your business and often times they come in with an even bigger discount.”
Lamont says that many Australians feel uncomfortable negotiating over a complicated issue like a home loan, or assume that the lenders have all the power.
“But in the current competitive home loans climate they want your business and will bargain with you,” said Lamont.
For information on property loans, rates and more, visit Mozo.com.au or <a href="http://propertyobserver.com.au/forward-planning/tools/ebooks-and-webinars/42368-get-loan-savvy-expert-tips-for-a-first-time-investment-or-refinancing-loan-in-a-free-ebook" target="_blank">click here</a> for the free Property Observer eBook, Get loan-savvy – tips for a first time, investment or refinancing loan, which helps you decide on a home loan that meets your requirements.
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Think big – Mozo advise how to maximise your loan

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When the impulse and excitement of buying a new property strikes, it can be easy to be swayed into a loan by a smooth talking lender or a major banking institution.
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Free eBook: Future-proof your finances – why it matters to get your home loan right

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]

Lucy Eldred

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