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I often get asked is residential property a better or worse investment than commercial property, but the answer is neither. Both asset classes can be great investment options, but it all depends on what the investor is aiming to achieve. This is because they are different types of investments with different characteristics that will help investors achieve different objectives.
For example, commercial property is more likely to produce a strong income stream because tenants of shops and offices pay more rent than residential tenants. Also, in most cases all outgoings such as rates and insurance are covered by the tenant, further boosting cashflow.
However, on the flip side capital growth potential is relatively low. Land appreciates (increases) in value, while buildings depreciate. The higher the proportion of land relative to the property’s overall value, the higher the capital growth potential.
With commercial properties, the building often takes up the lion’s share of the value. This low land value often means capital growth is relatively low. Therefore, the key advantage of commercial property lies in its ability to attract high rental returns.
The best commercial property is usually found in high population growth areas such as the outer suburbs with increasing demand from residents for goods and services provided by petrol stations, fast-food outlets and supermarkets.
This is the reason large commercial property trusts such as Westfield invest hundreds of millions of dollars in areas such as South Morang in Melbourne’s north. Surrounding growth suburbs such as Doreen and Mernda have experienced a population explosion in the last five years, and all these people need to spend money to live. This money flows straight into the coffers of the commercial property owners, and as population grows so does their income.
The large property trusts also target the CBD because of the large daily influx of office workers and growing population.
Because commercial property doesn’t have high capital growth potential to counterbalance the interest on a loan, it’s wise to borrow as little as possible (0 to 30%) and fund the purchase with cash.
Residential property, by contrast, doesn’t produce a high income stream because residential tenants can’t pay as much rent as commercial tenants. Landlords are also required to cover rates, and building insurance on the property further diluting their cashflow.
On the flipside, residential property tends to have better capital growth potential because the land usually makes up most of the property’s value and there is a more consistent underlying demand from people who need a roof over their head.
The best residential investment property is usually found in areas with moderate but consistent population growth driven by demand from home buyers, investors and tenants alike. Consistent demand drives land values, which in turn fuel capital growth.
Land values are highest in established areas where there is no more land to build on, such as the inner and middle suburbs. Suburbs such as Richmond or Elwood are highly sought after by residential investors, who already control more than 50% of the residential property in these markets.
Because well-chosen residential property can provide enough capital growth to offset the interest on a loan, investors are more likely to borrow a higher proportion of the purchase price than if you were buying commercial property.
If an investor is looking for capital growth and doesn’t have the cash to purchase a commercial property outright, he or she should focus on residential property. If you purchase in a location where land values are high, the capital growth will be enough to balance out the interest you’re paying on the loan. And, because the property will be producing income, your interest payments will be tax deductible.
Alternatively, an investor who has accumulated a significant nest egg and is now looking to generate income would be wise to focus on commercial property. With low borrowings and higher rental yields, the investor’s money would be producing an income and the investor might not have to work.
Mark Armstrong is a director of <a href="https://www.ipropertyplan.com.au/" target="_blank">iProperty Plan</a>, which provides independent analysis and tailored advice to investors and home buyers.
 
 
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Should you invest in residential or commercial property? Mark Armstrong

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For many years Toorak has been considered Melbourne’s most highly valued suburb, but it lost its stranglehold on that title in 2012.  This year Toorak only managed one of the top five sales in Melbourne, with the balance been spread out across other blue-chip locations.
It's only a preliminary list, with some sales yet to make it onto official records.
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Top 5 - 2012
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21 Kooyongkoot Rd Hawthorn
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$12,588,000
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26 Albany Rd Toorak
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$12,000,000
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35 Hampden Rd Armadale
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$9,500,000
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78 Esplanade Brighton
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$8,700,000
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43 Seacombe Grv Brighton
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$7,770,000
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Total value
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$50,558,000
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 This result is in stark contrast to the 2011 year when four out of the five most prestigious and valuable properties were located in the leafy <a target="_blank" href="/news">Toorak</a> streets.
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Top 5 - 2011
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2 Linlithgow Rd Toorak
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$16,500,000
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20 St Georges Rd Toorak
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$14,500,000
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16 Kenley Crt Toorak
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$12,610,000
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33 Chatsworth Ave Brighton
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$12,000,000
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12 Albany Rd Toorak
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$11,500,000
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Total value
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$67,110,000
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 If you were looking to buy Melbourne’s most expensive property this year located at 21 Kooyongkoot Road, <a target="_blank" href="/news">Hawthorn</a> (pictured below), you would have needed to have just over $12.5 million  up your sleeve.
<img alt="kooy" height="247" width="420" src="/images/stories/2012/12/kooy.png">
Kooyongkoot is an Aboriginal word meaning ‘the haunt of the wild fowl’, and although the wild fowl are no where to be seen, for this price you could have snapped up almost three-quarters of an acre on top of the highly sort after Scotch Hill. The property was sold to an overseas buyer in March and consists of a renovated Victorian mansion with tennis court and swimming pool.
While this sale was impressive it still falls a long way short of the 2009 record sale of Avon Court (pictured below), located at 18-20 Shakespear Grove, Hawthorn, which was sold to Autobarn boss Garry Dumbrell for a tad over $20 million.
<img alt="avon" height="313" width="470" src="/images/stories/2012/12/avon.png">
From where I sat 2012 was a more consistent year across the broader market, with lower interest rates resulting in a small lift in buyer confidence, which is expected to continue into 2013.
However, this confidence was not as strong at the top end of the market. In 2011 the top five the top five sales accounted for over $67 million of real estate, compared with a touch over $50 million this year. Also the highest price sale of last year was $16.5 million, when 2 Linlithgow Road, Toorak (pictured below), was traded off market. In addition to the ivy-covered walls surrounding the 3,363-square-metre block of land, this property also comes with the standard mansion, swimming pool and tennis court.
<img alt="lithgow" height="708" width="470" src="/images/stories/2012/12/lithgow.jpg">
Image from Google Maps
For those of us who had tighter cashflow pressures this year it may have been better to opted for the bottom end of the top five sales this year.  For $7.7 million you could have snared 1,251-square-metre block of prime beachfront land at 43 Seacombe Grove, <a href="/news">Brighton</a> (pictured below). Although it does comes with a spectacular view of the beach, there is no tennis court or swimming pool, so you would need to dip further into your pocket get these.
<img src="/images/stories/2012/12/seacombe.jpg" width="440" height="293" alt="seacombe">
For anyone who is looking to secure the highest-priced Melbourne home for 2013, here are some sobering figures for you. The average sale price of this year’s top five was just over $10 million. So to start with you need to get your hands on the $1 million deposit, which is not far off double the current median house price.
From there if you are looking to finance 80% of the property value you need to find close to half a million dollars of after-tax income a year just to keep pace with interest payments.
Something to think about as 2012 winds down and we start to make plans for 2013.
I hope you all have a great Christmas break.
Mark Armstrong is a director of <a href="https://www.ipropertyplan.com.au/" target="_blank">iProperty Plan</a>, which provides independent analysis and tailored advice to investors and home buyers.
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Toorak loses its stranglehold on Melbourne's top-end property market in 2012

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Trying to pick property market movements in recent years has been tricky to say the least, but a recent lending report from Westpac bank into home loan approvals gives us an indication of what lies ahead in 2013.
The report shows that while lending for homes remained stagnant in October, the number of loans for investors continued to climb. Loan approvals to investors rose 5.5%, and this was off the back of a massive 8.8% jump for September. Year-to-date loans for investors have risen by 21%.
The planets are aligning for investors as the numbers begin to stack up. It is now becoming very affordable for investors to seriously consider a property purchase. But as the investors return to the market, the savvy ones will be looking to purchase properties that not only have minimal holding costs but also significant capital growth potential.
Investors will no doubt hit the traditional investment areas such as <a target="_blank" href="/news">South Yarra</a>, <a target="_blank" href="/news">Elwood </a>and <a target="_blank" href="/news">Richmond</a>. As usual, they will look for the standard requirement of good transport infrastructure, shopping, restaurants and bars because all theses things result in strong tenant demand.
However, investors should also be looking for emerging markets where properties are more likely to benefit from a big upswing in capital growth.
Take, for example, a couple of recent property sales in Melbourne’s inner west and north.
A one-bedroom apartment at<a target="_blank" href="https://www.realestate.com.au/property-apartment-vic-flemington-111304283"> 8/60 Farnham Street, Flemington</a>, sold recently for $335,000. This price is more than $100,000 less than the median price of apartments in Melbourne so represents very affordable buying. In addition to the low entry point this property has the potential to be let for around $300 per week.
<img src="/images/stories/2012/12/farnham.jpg" width="470">
 
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At a slightly higher price point but yet still very affordable is <a target="_blank" href="https://www.realestate.com.au/property-apartment-vic-northcote-112284991">20/203 Clarke Street, Northcote</a>, which sold on the weekend for $452,000. While the view of the CBD is magnificent, this property also has the potential to produce close to a 5% yield. In isolation, a yield at this level is great, but hand in hand with very competitive fixed rates these properties start to look very enticing.
<img src="/images/stories/2012/12/clarkest.jpg" width="470">
Currently an investor can lock in three-year fixed rates for less than 5.5% and taking it a step further,  five years can be locked in for just over 5.5%. This means properties such as these could be purchased and be very close to neutrally geared from day one. Investors would also have certainty over their interest payments for the next five years, and as time goes by the only variable is the rental return, which is likely to only move in one direction. Up.
Further, both of these properties are located in suburbs that are emerging investment areas. Traditionally investors have preferred to stay in the safe havens of the inner-eastern suburbs, where comparable properties could sell for an extra $100,000 or more.
Although houses in suburbs such as <a target="_blank" href="/news">Flemington </a>and <a href="/news">Northcote</a> have been highly sought for a number of years, a lot of buyers have viewed apartments as a risky option. However, as many investors are priced out of the eastern suburbs they will start to look for other opportunities. In short, properties like these have significant growth potential in the years to come.
It is important to remember that around 70% of the property market is controlled by home buyers. As a result the increase in investor demand is not going have an impact on the entire market, and overall growth may not be huge in 2013. However, investors will place increased pressure on pockets of the market, and these areas will have above average growth next year.
Mark Armstrong is a director of <a target="_blank" href="https://www.ipropertyplan.com.au/">iProperty Plan</a>, which provides independent analysis and tailored advice to investors and home buyers.
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Where Melbourne property investors should look to maximise capital growth in 2013

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Congratulations to Rainbow in Melbourne and Davidk9 in Sydney, who have taken out the title of Property Tycoon for spring 2012. A $1,000 Christmas bonus is on its way!
There’s a website, <a target="_blank" href="https://www.propertytycoon.com.au/">www.propertytycoon.com.au</a>, where punters can guess what they think properties will sell for at their weekend auctions in Melbourne and Sydney. This season <a rel="nofollow" target="_blank" href="https://www.propertytycoon.com.au/join-league/S7S123C487R8OOQF" style="font-size: 14px;">Property Observer readers had their own competition</a><a rel="nofollow" href="https://www.propertytycoon.com.au/join-league/S7S123C487R8OOQF">.</a> The winner of the overall competition won $1,000.
Carlyonc and RFM were the best-performing Tycoons in the final round and win the movie tickets.

A huge crowd crammed into the backyard of 14 Jessamine Avenue, <a target="_blank" href="/news">Prahran</a> (pictured below), on Saturday to watch a very quick auction. While there is no doubt there were more people who had an interest in the property, it was left to only two bidders to fight it out.
<img src="/images/stories/2012/12/jessamin.jpg">
The auction consisted of a flurry of $50,000 bids before a $2.4 million bid was referred to the vendor and the property was declared on the market.  After this announcement another burst of bidding took the price to $2.7 million before the property was knocked down.

You can watch the auction highlights on our <a target="_blank" href="https://propertytycoon.cmail5.com/t/r-l-uyljuud-etrwtikd-y/">Facebook</a> page.

It was a different story in Sydney where 1/64 Ocean Street, <a target="_blank" href="/news">Woollahra</a> (pictured below), failed to gain any real traction. Although there were interested parties in the crowd there was no sense of urgency as bidding was lacklustre. The property finally passed in to a legitimate bidder for $1,475,000.
<img src="/images/stories/2012/12/oceanst.jpg">
Since the conclusion of the auction agent Peter Starr has had interest slightly above $1.5 million, and the property is expected to sell in the coming days.

Thanks to everyone who played Property Tycoon this season. We will be back bigger and better in February 2013. Merry Christmas to all.

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Quick Prahran auction and lacklustre bidding in Woollahra round out 2012 auction tipping competition

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This Saturday will be the final round of Property Tycoon for 2012, and we have some belting properties going under the hammer.
There’s a website, <a target="_blank" href="https://www.propertytycoon.com.au/">www.propertytycoon.com.au</a>, where punters can guess what they think properties will sell for at their weekend auctions in Melbourne and Sydney. This season <a rel="nofollow" target="_blank" href="https://www.propertytycoon.com.au/join-league/S7S123C487R8OOQF" style="font-size: 14px;">Property Observer readers have their own competition, which you can access here</a><a rel="nofollow" href="https://www.propertytycoon.com.au/join-league/S7S123C487R8OOQF">.</a> The winner of the overall competition will win $1,000.
Dean Gilbert from Marshall White will have a big auction on his hands when he calls for bids at 14 Jessamine Avenue, <a href="/news">Prahran</a> (pictured below).
<img src="/images/stories/2012/12/jessamin.jpg">
Winton was built in 1929 and lies in one of Prahran's most tightly held heritage-listed leafy pockets, only metres from Lumley Gardens and High Street's cafes and shops. The totally captivating solid-brick English-style residence sits on almost 800 square metres of land and is surrounded by spectacular botanic garden setting.
Many buyers will want this one, but they will need more than $2 million up their sleeves to secure it.
In Sydney it will be the receivers from Ferrier Hodgson that will be calling the shots at the auction of 1/64 Ocean, <a target="_blank" href="/news">Woollahrra</a>.
The townhouse is located in one of Woollahra’s premier tree-lined streets opposite Chiswick Park. In a block of only four, the property has three bedrooms and comes with the all-important basement lock-up garage.
<img src="/images/stories/2012/12/oceanst.jpg">
Downsizing baby boomers are expected to be out in force. Peter Starr from McGrath Real Estate says the expectations of the receivers are closely aligned with where he believes the market value lies. He is confident this one will sell under the hammer in excess of $1.5 million.
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A tightly held heritage Prahran property and a Woollahra receivership sale end auction tipping competition season

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Ask anyone nowadays what the property market is doing and they will do doubt refer to the median as a justification of how the market is performing. Unfortunately focusing on the median is like trying to watch a game of footy at the MCG from the Eureka Tower Skydeck. You can see it’s a game of footy but you really have no idea what is going on.
The median is only a guide at best because although it provides a general reflection of the market it tells us very little about what is really happening at ground level.
When we look at the median the numbers can be skewed and manipulated in so many ways.  Let's take a look at the median of two suburbs in Melbourne’s west - Point Cook and Newport.
Point Cook’s median grew from $345,000 in 2006 to $450,000 in 2011. Although the annual compound growth rate was not staggering it was still a respectable 5.46%. But here is the rub.
In 2006 Point Cook had 4195 freestanding houses and in just 5 years that number more than doubled to over 9000. Point Cook has experienced an explosion in construction in recent years but building a new home does not come cheap.  This is because Australia is experiencing a skills shortage driven by an exodus of many workers to the mining states in addition to many young people not wanting to get their hands dirty and avoiding manual work.
The demand for new housing combined with the shortage of supply of people who can build them is resulting in a dramatic increase in the cost of construction of new homes. The result is when we see a lot of new home construction in one area the growth in the median is driven by capital improvements to the land not the appreciation of the land itself.
Newport on the other hand lies around 15klms closer to the CBD and while the median value of houses is significantly higher at $673,000 the annual compound growth over the last 5 years has been an impressive 9.84%.
The story in Newport is strikingly different to that of Point Cook. In 2006 the suburb had a total of 3430 freestanding houses but by 2011, according to the census data, this number had actually fallen back to 3120. Newport has a shortage of land and the decrease in freestanding houses is most likely because the only way to meet demand is to knock down some houses and replace them with units or town houses.
While there is no doubt some houses in Newport have been renovated in recent years in the main capital growth has been a result of land appreciation as apposed to capital improvements.
The property at <a href="https://www.realestate.com.au/property-house-vic-newport-110576633" target="_blank">25 Charlotte Street, Newport, </a>is typical of a house in Newport that has experienced a good level of capital growth. This property was purchased in Jan 2006 for $317,000 and sold a couple of months ago for $500,000. The property had no renovations done during this time.
As a result of these two different drivers we need to interpret the growth in median in Point Cook and Newport in different ways. Growth that is driven by capital improvements will deflate slowly as the improvements slowly depreciate over time. However because land is a finite product when the median is driven by land appreciation it will be in a much stronger position to hold its ground into the future.
 
Mark Armstrong is a director of <a href="https://www.ipropertyplan.com.au/" target="_blank">iProperty Plan</a>, which provides independent analysis and tailored advice to investors and home buyers.
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Don't rely on the median dwelling price as a measure of the market

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A Hawthorn property in auction tipping competition Property Tycoon has sold for well above its pre-auction expectations.
There’s a website, <a href="https://www.propertytycoon.com.au/" target="_blank">www.propertytycoon.com.au</a>, where punters can guess what they think properties will sell for at their weekend auctions in Melbourne and Sydney. This season <a style="font-size: 14px;" href="https://www.propertytycoon.com.au/join-league/S7S123C487R8OOQF" target="_blank" rel="nofollow">Property Observer readers have their own competition, which you can access here</a><a href="https://www.propertytycoon.com.au/join-league/S7S123C487R8OOQF" rel="nofollow">.</a> The winner of the overall competition will win $1,000.
While a small crowd of around 50 people watched the auction at 1/69 Morang Road, <a href="/news">Hawthorn</a> (pictured below), it was left to three bidders to compete for the property. When the hammer fell and the property sold for $592,500 the vendor became one of the rare investors who has outpaced the market in recent years.
<img src="/images/stories/2012/11/morangrd.jpg">
The property was purchased during the height of the 2007 market. Since then the economy has been a minefield for investors, but 1/69 Morag Road, Hawthorn, has delivered a 7.31% compounding return over the last five years. The median value of apartments has been growing by only 4.09% over the same time frame.
You can watch the <a href="https://www.facebook.com/photo.php?v=315523321893619&amp;set=vb.306138129400088&amp;type=2&amp;theater">auction highlights on our Facebook page.</a>
In Sydney it became clear as the campaign went on there was only one buyer who had an interest in purchasing 16 Chuter Street, <a target="_blank" href="/news">McMahons Point</a> (pictured below). In this situation the agents preferred option is to enter into negotiations with the buyer and avoid an auction that turns into a fizzer.
<img src="/images/stories/2012/11/chuterst.jpg">
An auction sale is usually an unconditional transaction, meaning once a contract is signed there is no way out. In this case, however, not only was there only one buyer, but this person was not in a position to buy unconditionally. In most cases it means the deal is subject to the purchaser obtaining finance.
A deal has been struck for 16 Chuter Street, but it will remain under contract until the sale is unconditional.
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Vendor outpaces the market in Hawthorn, but McMahons Point sale held up with finance

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Around $6 million is up for grabs in both Melbourne and Sydney so a good week of tipping could propel you up the leaderboard in this week’s auction tipping competition.
There’s a website, <a target="_blank" href="https://www.propertytycoon.com.au/">www.propertytycoon.com.au</a>, where punters can guess what they think properties will sell for at their weekend auctions in Melbourne and Sydney. This season <a rel="nofollow" target="_blank" href="https://www.propertytycoon.com.au/join-league/S7S123C487R8OOQF" style="font-size: 14px;">Property Observer readers have their own competition, which you can access here</a><a rel="nofollow" href="https://www.propertytycoon.com.au/join-league/S7S123C487R8OOQF">.</a> The winner of the overall competition will win $1,000.
<img src="/images/stories/2012/11/morangrd.jpg">
Elevated in a block of only six in a blue-chip location, it appears 1/69 Morang Road, <a href="/news">Hawthorn</a>, ticks a lot of boxes for investors and first-home buyers. For this reason the property has attracted good interest during the campaign, with more than 1,800 buyers checking it out online.
It has been refurbished in recent years and is just a short walk to train, tram, shops and cafés. Tim Picken from Kay &amp; Burton will auction the property on Saturday and expects bidding in the low to mid-$500,000 range.
Annika Robins from McGrath Real Estate in Neutral Bay has an 1890s workers cottage at 16 Chuter Street, <a href="/news">McMahons Point</a>, up for grabs. The four-bedroom house only sits on 271 square metres of land but is deceptively large.
<img src="/images/stories/2012/11/chuterst.jpg">
It is located in an ultra-convenient position, just a short stroll to ferries, buses, trains and cafes. The property last came onto the market 14 years ago, when it fetched $562,000. It has been renovated since this sale and is expected to sell above $1.75 milion this time around.
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Auction tipping: Blue-chip locations for Melbourne and Sydney properties

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I’ve said it time and again that the residential investment property is a long-term proposition. The property market takes around seven to 10 years to move through a full cycle, from low capital growth/high rental yield to high growth/low yield and back again. 
Despite this, many property investors choose locations and property styles with little potential to survive and thrive throughout market fluctuations. Some investors choose locations that lack the long-term underlying demand to drive capital growth, while others choose property styles that don’t reflect trends in the way people want to live. 
In other words, the property investment decisions that look good today may not prove so attractive in five, 10 or 20 years’ time. It’s essential to understand the nature of long-term economic and demographic trends, then select assets accordingly. 
Interest rates rise and fall, but in the long term, dwindling oil reserves and rising petrol prices will be a key economic trend influencing the property market. In the coming years, rising prices at the pump will make outer-suburban living and commuting less feasible and less appealing. This will curtail the urban sprawl and increase demand among home buyers for property in the middle suburbs close to public transport corridors, shops and schools. 
At the same time, rising property prices in the inner and middle suburbs will put home ownership beyond the reach of more Australians, or at the very least, delay it significantly. Figures from the Bureau of Statistics tell us that the proportion of households renting from private landlords in Melbourne has increased from 22.8% in 2001 to 27.2% in 2011. Almost 32% of Sydney’s property market is inhabited by tenants. 
The increase in tenant demand is not unique to Australian cities. Major global cities such as London and New York have 50% or more of their property tenanted. I am not suggesting we are a London or New York just yet, but we are following a similar path, and there’s every reason to expect that this trend will continue.
Because many tenants want to maintain the trappings of an urban lifestyle, the trend away from home ownership will increase demand for rental properties within walking or short driving distance from trams, trains, shops, cafes and entertainment precincts. For those who can afford to buy, these areas will also be their preferred choice. This two-pronged demand from home buyers and investors will further boost capital growth prospects in the inner and middle suburbs. 
Delaying having children is another trend set to influence the residential market well into the future. The median age for parents is 28.9 for women and 33.1 for men, and women currently have an average of 1.9 children, compared with 2.8 in 1981. 
This trend has resulted in the average number of people per house almost halving over the last 100 years from 4.5 in people to 2.6. In addition, single-person households have jumped from 22.9% to 24.4% over the last 10 years. 
The shrinking size of the family unit means that demand for low-maintenance, compact dwellings will increase, while demand for the conventional sprawling home on a quarter-acre outer-suburban block will soften. 
When you look at all these trends in their entirety, it’s clear that pockets of the middle suburbs close to public transport, shops and schools will provide feasible long-term opportunities for residential property investment, particularly for investors who have been priced out of the tightly held inner suburbs.
Mark Armstrong is a director of <a target="_blank" href="https://www.ipropertyplan.com.au/">iProperty Plan</a>, which provides independent analysis and tailored advice to investors and home buyers.
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How current trends can indicate where to invest in property for the future

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Only two rounds to go in the final season of 2012 and MC, last season’s winner, has risen to the top of the Melbourne leader board. He is less than $100,000 ahead of Rainbow and Jorgo, who are still tied in second place.
There’s a website, <a href="https://www.propertytycoon.com.au/" target="_blank">www.propertytycoon.com.au</a>, where punters can guess what they think properties will sell for at their weekend auctions in Melbourne and Sydney. This season <a style="font-size: 14px;" href="https://www.propertytycoon.com.au/join-league/S7S123C487R8OOQF" target="_blank" rel="nofollow">Property Observer readers have their own competition, which you can access here</a><a href="https://www.propertytycoon.com.au/join-league/S7S123C487R8OOQF" rel="nofollow">.</a> The winner of the overall competition will win $1,000.
Spike has almost $1 million lead in Sydney and is the box seat to take out the title, ahead of Nan63 and Davidk9. However, with around $10 million of property up for grabs in the final two rounds it is not over just yet.
At 213 Station Street, <a href="/news">Carlton North</a> (pictured below), the top end of the quote range was lifted to $900,000 in the late stages of the campaign. This sent a clear signal to the market that it was going to be a competitive auction.
<img src="/images/stories/2012/11/stationst.jpg">
When Tom Roberts from Nelson Alexander started the auction, however, it appeared as though the buyers had stayed home, as he was forced to start with a vendor bid of $800,000. Two bidders eventually came to the party and when bidding stalled at $920,000 the agents went inside to seek further instructions
When the agents returned the words “we are on the market” kicked the auction into another gear as a third bidder emerged. After a flurry of bidding, the property sold $50,000 above the reserve at $970,000.
In Sydney Kerrie Robertson from LJ Hooker sold 28 Coolaroo Road, <a href="/news">Lane Cove</a> (pictured below), under the hammer but has insisted the result in undisclosed.
<img src="/images/stories/2012/11/coolaroo.jpg">
This is the bizarre reality of the Australian property market where a property can be sold in the most public of forums yet the result kept private.
The penultimate round of properties will be revealed at 5pm today.
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Melbourne and Sydney properties sell under the hammer as tipping competition winds down

<a href="https://www.apartments.com.au/developers/consolidated-properties">Consolidated Properties Group</a> (CPG) is approaching the launch of its latest Brisbane riverfront development, Castile, on the dress circle Skyring Terrace in Newstead.

VIP buyers are now being engaged, with a full public sales launch coming later this year.

Positioned as the final opportunity to secure a new absolute riverfront residence on the East bank of Newstead, Teneriffe or New Farm, Castile at 47 Skyring Terrace has been designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a> as a timeless addition to the Brisbane skyline.&nbsp;

[smartcode_project:default project_id=150489 project_image_fid=371113]

The name Castile draws on themes of permanence, sophistication and legacy, reflecting a broader vision centred on enduring architecture and timelessness in the rarest of riverfront positions.&nbsp;

CPG Chairman and CEO Don O’Rorke said the project had been envisioned as a future Brisbane icon.&nbsp;

“With 47 metres of direct river frontage and never to be built out views, 47 Skyring Terrace is the definitive address on the Brisbane River,” O’Rorke said.&nbsp;

[smartcode_project:default project_id=150489 project_image_fid=371114]

“Rather than following trend-based apartment design, Castile draws inspiration from Brisbane’s great heritage buildings, reinterpreting classical architecture into a contemporary riverfront landmark designed to stand proudly for the next 100 years,” he said.&nbsp;

The approved development will comprise 227 apartments across a 25-storey tower alongside a boutique six-storey riverfront building of just 12 residences.&nbsp;

Construction is scheduled to commence in September 2026.

[smartcode_project_cta:default project_id=150489]

Joel Robinson

CPG unveils Castile Newstead ahead of upcoming sales launch

Australia’s online shopping habits have shifted dramatically over the last decade. As eCommerce volumes surged, so too did the frustrations that came with traditional parcel delivery: missed deliveries, long Post Office queues, parcel theft and the challenge of being home during business hours.

Australia Post’s Parcel Lockers emerged as one of the more practical responses to that changing consumer behaviour.

What started as a relatively niche delivery option has evolved into a nationwide network of more than 1,400 self-service Parcel Lockers positioned at train stations, shopping centres, supermarkets and Post Offices across the country. The system allows Australians to send, collect and return parcels 24 hours a day, fundamentally changing how many people interact with deliveries.

The appeal is relatively straightforward: flexibility.

Instead of waiting at home for a delivery driver or rushing to a Post Office before closing time, users can direct eligible parcels to a Parcel Locker location of their choice. Once the parcel arrives, Australia Post sends a notification with a collection code or QR access through the AusPost app, allowing customers to retrieve their package at any time within the collection window.

For apartment residents in particular, the system has become increasingly valuable.

Higher-density living has created logistical challenges around deliveries, especially in buildings without concierge services or secure parcel rooms. Missed deliveries are common, while parcel theft has become an increasing concern as online shopping volumes continue to rise.

Australia Post itself has repeatedly highlighted the growing issue of “porch pirates” during peak shopping periods, encouraging customers to use Parcel Lockers as a safer alternative to unattended home deliveries.

That security aspect is one of the key reasons the Australia Post Parcel Locker network has grown so rapidly.

Parcel Lockers are positioned as secure, monitored collection points that reduce the risk of theft while also improving delivery efficiency for Australia Post. Instead of multiple redelivery attempts, parcels can be consolidated into a single secure destination.

The Parcel Lockers themselves are free to use through a MyPost account and support a range of parcel sizes up to 16 kilograms and dimensions of approximately 35 x 44 x 61 centimetres.

Beyond receiving parcels, the system has increasingly become integrated into the broader eCommerce ecosystem.

Customers can now use Parcel Lockers to return online purchases, while retailers have embraced the model as a way to improve delivery success rates and reduce friction in the shopping process. Australia Post has actively expanded partnerships with major retailers and promoted Parcel Lockers as part of a broader out-of-home strategy.

The timing of that expansion aligns with broader changes in Australian shopping behaviour.

The acceleration of online retail during and after the pandemic placed enormous pressure on delivery infrastructure. Parcel volumes reached record highs, particularly during Black Friday and Christmas periods, with Australia Post delivering more than 100 million parcels during peak festive seasons.

That growth forced logistics providers to rethink the “last mile” of delivery, widely regarded as the most expensive and operationally difficult stage of the process.

Parcel Locker systems have increasingly been viewed as part of the long-term solution.

The concept itself is not unique to Australia. Parcel Locker networks have become common globally, particularly across Europe and Asia, where dense urban environments and apartment living create similar logistical challenges. But Australia’s geography and suburban sprawl made adoption slower initially.

Now, however, the convenience factor is driving mainstream usage.

For commuters, Parcel Lockers near train stations allow parcels to be collected on the way home from work. For apartment dwellers, they remove the uncertainty around access and missed deliveries.

The rise of the AusPost app has also streamlined the experience, centralising notifications, tracking and Parcel Locker access into a single platform. Australia Post has increasingly pushed customers toward app-based delivery management, partly as a way to combat phishing scams and fake delivery notifications, which have become more sophisticated in recent years.

The Parcel Locker model is also beginning to influence property development itself.

Parcel management has become a growing consideration in apartment building design, particularly as online shopping becomes embedded in everyday life. Many new residential developments are now incorporating dedicated parcel rooms or Parcel Locker systems into foyers and communal spaces.

For developers, parcel management is increasingly viewed as part of the broader resident amenity offering, alongside gyms, wellness spaces and communal work areas.

That reflects a wider evolution in how residential buildings are designed.

Apartment buyers are placing greater emphasis on convenience, security and operational functionality, particularly in higher-density urban environments. Parcel delivery, once considered a minor operational detail, has become an increasingly important part of that equation.

Australia Post’s Parcel Locker network sits at the centre of that behavioural shift.

What began as a simple alternative delivery option has evolved into a key piece of infrastructure supporting Australia’s growing eCommerce economy and changing urban lifestyles.

And as online shopping continues to expand, the role of Parcel Lockers is likely to become even more embedded in how Australians live, shop and receive goods.

How Australia Post Parcel Lockers changed parcel delivery convenience in Australia

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;

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;

Mark Armstrong

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