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Myer has set up a new corporate entity as a mechanism for a possible network of free-standing stores, a Myer spokesperson confirmed to SmartCompany.
The new business, FSS Retail, which is understood to stand for Free Standing Stores, was recently set up by the department store giant, as reported by Fairfax.
Fairfax obtained documents showing the new entity was set up 12 days ago.
It is understood that this could see Myer acquire more retail businesses and operate stores outside of its department store network.
FSS Retail has three directors, Myer chief executive Bernie Brookes, Myer chief financial officer Mark Ashby and Myer head of strategic planning Greg Travers, <a target="_blank" href="https://www.smh.com.au/business/myer-move-to-extend-its-retail-options-with-fss-retail-20140302-33tyb#ixzz2ur1YFavy">Fairfax reports</a>.
A Myer spokesperson told SmartCompany that it was “created as a formal mechanism” in case the business wished to pursue free-standing stores, but no further details of potential acquisitions could be revealed at this stage.
Myer currently owns the fashion business Sass &amp; Bide, and operates the womenswear brand’s 25 retail stores in Australia and internationally.
The new entity comes amid reported further talks between Myer and David Jones regarding the merger proposal Myer put to its rival in November last year.
It also comes as Myer reappointed <a target="_blank" href="https://www.smartcompany.com.au/marketing/sales/35746-david-jones-and-myer-merger-talks-simmer-as-accc-keeps-close-eye"> Bernie Brookes for another year</a> as chief executive and managing director, and suggested he would be a good chief executive for a combined business with David Jones.
Retail Doctor Group director Brian Walker toldSmartCompany that a move by Myer to create a network of free-standing retail stores was smart.
He says the department store concept is maturing and the business needs to find new ways to best represent its shareholders.
“Its core business is as a mass-merchandise retailer… it is the house of many brands,” he says. “This is what Myer can do to continue to drive its shareholder’s returns.”
He thought it made sense for the business to develop an equity funding arm, and to have a stake in individual retail brands.
Walker says the move also reflects the impact of international retailers coming to Australia, which is shaking up ownership models as local businesses scale up to achieve profits.
“The way to achieve scale is to consolidate and to acquire,” he says.
“Myer can make more money from its existing operations… or make more acquisitions.”
This article first appeared on <a target="_blank" href="https://www.SmartCompany.com.au">SmartCompany</a>.
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Myer could be on acquisition strategy as it sets up new business for free-standing stores

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Retailers seeking tenancy in Australian Westfield shopping complexes are getting reduced rates compared to existing tenants, The Age reports.
The issue of slashing rents to attract new retailers into the group’s shopping centres was first flagged in the retail giant’s 2013 mid-year report, amid rocky times for the retail economy.
The full-year results released yesterday showed that new tenants could be paying around 6% to 7% less than existing tenants seeking to renew their contracts in the malls.
Westfield Group reported a full-year after-tax profit of $1.6 billion for 2013, which was down 6.7% from the 2012 financial year. Its revenue was up 7.4% to $2.385 billion.
In August 2013 when Westfield released its mid-year results, it reported its new tenancy contracts could be lowered by up to 10% in its retail malls.
At the time, Leasing Information Services managing director Simon Fonteyn toldSmartCompany Westfield’s negative leasing spreads were “falling into line” with trends from other major retail centres across Australia.
“In June 2012, The GTP Group took at 10% reduction on new leases, while in December 2011, Stockland reported a 6% reduction,” he said.
Fonteyn said there are “so many reasons” why its retail leases are under strain.
“The malaise in retail is well understood by industry… the drop is a sign of them having to meet the market,” he said.
He said overall renewal rates are down due to the tough retail conditions, so he thinks the move by Westfield is a sign that the retail giant is becoming “more pragmatic”.
Fonteyn said Westfield and other big malls are becoming like “de facto department stores” as major international brands start to make a deeper impact on the Australian market. He said they can take up 15-20 single store fronts within a centre to make mega-stores.
Partner at Lowe Lippmann Chartered Accountants and Business Advisors, Brian Gordon, told SmartCompany at the time he was surprised Westfield would negotiate rents to that degree, but figured the retail giant had “no choice”.
“It is extremely well known that Australian shopping centre rentals are massively higher than everywhere else internationally,” he said.
The news from Westfield comes as two of its core tenants, Myer and David Jones, are <a target="_blank" href="https://www.smartcompany.com.au/marketing/sales/35746-david-jones-and-myer-merger-talks-simmer-as-accc-keeps-close-eye">reportedly in merger talks</a>. After knocking back an approach from Myer in October 2013, David Jones is reportedly set to start talking to its core rival to investigate the details of a potential $3 billion merger.
This article first appeared on <a target="_parent" href="https://www.SmartCompany.com.au">SmartCompany</a>.
            
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New tenants could get sweeter deal as retail troubles hit Westfield

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Australia could fall behind in the Asian Century if it does not <a href="https://www.smartcompany.com.au/growth/economy/33793-infrastructure-woes-as-sydney-cross-city-tunnel-placed-in-receivership" target="_blank">improve its infrastructure</a>, innovation and creativity, experts have warned.
Ken Henry, a former Treasury secretary and current director of the National Australia Bank and the Australian Securities Exchange told <a href="https://www.theaustralian.com.au/business/economics/former-treasury-secretary-ken-henry-warns-of-infrastructure-shortfall/story-e6frg926-1226821994365#mm-premium">The Australian</a> he thought Australia could be lacking in sufficient port, road and rail links to be an effective exporter during the Asian development boom.
"We do not have the infrastructure requirements for an economy and a society that is well connected with Asia," Henry said.
Henry was at the forefront of the Gillard government’s white paper into the Asian century and said there is “enormous potential” for Australia during Asia’s boom phase.
However he said “we simply don't have the infrastructure assets, the infrastructure services, to ensure that in the commercial space – but also the social space – we make the most of those connections”.
Henry is involved in a green paper by the SMART research group which is calling for “clearer decision-making to inform a national market for Australia’s infrastructure”.
He thinks lots of questions regarding our infrastructure should have been asked 10 or 20 years ago, not now, The Australian reports.
CPA Australian chief executive Alex Malley echoed Henry’s concerns in the accountancy body’s pre-budget submission to the federal government.
“With tentative signs of economic recovery in key global markets and a continued focus on Asia, Australia is uniquely positioned to take advantage of what has now become the Asian Century,” Malley said.
“However, despite our ‘open for business’ mantra, we are not the sole trader in our region. Across Asia, new and existing competitors are increasingly moving into areas Australia once regarded as areas of traditional advantage.
“This is not a time for complacency. It is the time to boldly step up.”
Malley said that as a nation, Australia must now make “brave choices” to secure our success in the Asian century.
“We must make sure that we do everything possible to support Australian businesses to be globally competitive.”
He said Australia is poised to take centre stage on a global level as we host the G20 Summit.
“Just as the strength of our economy made us an international example in weathering the worst excesses of the global financial crisis, this is a time when we should again demonstrate global leadership by making the tough decisions that will strengthen the global competitiveness of Australian business.”
The CPA Australia submission reiterates that Australia’s ability to compete will be “put at risk” unless action is taken to address the infrastructure deficit when it comes to road, rail, air and sea transport.
“Without the ability to safely, efficiently and effectively transport goods, data and people within Australia, our businesses face a significant disadvantage,” it said.
The group said funding of infrastructure should include user-pays principals, along with selling suitable public assets and investing the proceeds into new projects.
“CPA Australia calls on the government to consider providing a 40% or 50% discount on income earned from investment in infrastructure projects to attract more private capital to these major projects which will drive the future of Australian business.”
This article first appeared on <a href="https://www.SmartCompany.com.au" target="_blank">SmartCompany.</a>
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Australia could luck out in Asian Century due to poor infrastructure

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Auction clearances in Sydney and Melbourne continued to ride high on the weekend following a solid start to the selling year last week.
The news comes amid expert warnings of a <a target="_blank" href="https://www.smartcompany.com.au/finance/investment/35505-will-there-be-a-property-apocalypse-economists-warn-house-prices-will-plummet-if-interest-rate-stays-low">potential property bust</a>, if banks keep loaning increasing sums of money at low interest rates.
In Sydney 84.4% of properties that went to auction were sold, while in Melbourne the clearance rate was 75.6%.
The average price for houses sold by auction in Sydney was $970,000, up from $835,000 for the same weekend last year. For Sydney units, the average median price was $672,500, up from $622,000 last year.
The most expensive auction sale in Sydney was a four bedroom home in Strathfield at $2.28 million, while the most affordable was a two bedroom unit in Auburn, selling at auction for $400,000.
Australian Property Monitors senior economist Andrew Wilson told SmartCompany that in Sydney, it was the second week in a row of solid clearance rates, however last week there were small numbers of properties on the market.
“We need some more auction results to get a true sense of what is to happen…it is no surprise that the energy from last year is continuing into this year, at a higher level than where the market ended (in 2013),” he says.
He says as the property year warms up, the higher priced properties in the more exclusive areas will start to appear on the market, giving a better indication of the sorts of average median sales figures likely to dominate this year.
“We have anecdotal evidence to say that the sales in Sydney were above the reserves set,” he says.
In Melbourne, the average median house price was $695,000, up from $576,250 for the same weekend in 2013, while the average price for units sold at auctions was $430,000, up from $456,000 last year.
The most expensive auction in Melbourne was a three bedroom house in Elsternwick, selling for $1.22 million. The cheapest was a one bedroom apartment in Richmond, at $282,200.
Wilson says while the figures look solid for Melbourne, more time is needed to get a reliable indication of the trends. He says Melbourne’s outer east belt is proving a hot spot, with a strong clearance rate on the weekend, while the inner east was also performing well.
He expects to see a greater flood of properties on the Melbourne auction market throughout February as people try to get in before the Labour Day long weekend.
“With bank mortgage rates heading downwards and banks getting more competitive, there is more incentive for buyers,” he says.
However he warns with more job losses at factories in Victoria, confidence to borrow may wane as people become more concerned about their job security.
In Brisbane, where there are fewer auctions, the clearance rate was 57.7%, with the median house price at $626,000, up from $446,000 for the same weekend in 2013.
This article first appeared on <a target="_blank" href="https://www.SmartCompany.com.au">SmartCompany.</a>
 
 
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Property sales take off over the weekend, but expert warns time will tell

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The ANZ bank’s fee for late credit card payments has been found to be "extravagant, exorbitant and unconscionable" by a Federal Court of Australia judge.
<a target="_blank" href="https://www.smartcompany.com.au/growth/economy/35473-ten-and-fairfax-look-for-happy-marriage-with-talk-of-dating-sites-merger-jp-morgan-to-pay-1-45m-to-settle-sexual-harassment-case-midday-roundup">Justice Michelle Gordon ruled yesterday</a> on a class action brought against ANZ by law firm Maurice Blackburn and funded by Bentham IMF (Australia) on behalf of over 43,000 ANZ customers.
It was ruled that the fee of $20 to $35 was much more than late payments cost the bank, which was around 50 cents to $5.50 per late payment.
Consumer group CHOICE chief executive Alan Kirkland said the decision should send a message to businesses that late fees must reflect actual costs.
"We welcome the Federal Court decision today, which should make it very clear that the days of charging excessive fees to bolster profits are over,” he said.
“It’s not the role of a business to punish customers,” he said. “We expect to see late payment fees to come down in other sectors, such as telecommunications, as a result of this decision.”
Justice Gordon found late payment fees charged more than six years ago could be claimed by customers in compensation, as they were not barred by the statute of limitations. This could lead to millions in back payments to customers.
The late credit payment fee was one of five fees in question, with the judge ruling in favour of the bank on the other four fees. The other disputed fees were over-limit fees on credit cards, as well as honour, dishonour and non-payment fees on deposit accounts for Australian customers. Justice Gordon said these fees were not illegal.
ANZ chief executive Australia Philip Chronican said in a statement he was pleased these four fees were not deemed penalties. In regard to the late payment fee ruling, Chronican said the implications were “still far from clear and it is likely to be some time until this matter is finally resolved”.
Law firm Maurice Blackburn said in a statement the ruling on the late credit card payment fine means that thousands of customers should be compensated.
It said the judgment will set the precedent for seven other Australian banks that have similar class actions awaiting them. These include the Commonwealth Bank, Westpac, NAB, BankSA, Bankwest, Citibank and St George.
Maurice Blackburn head of national class action Andrew Watson said it had been a “long tough fight”.
"What has been decided by the court will mean a better deal for bank customers from now on, and potentially a better deal for consumers more broadly where these same principles apply.”
This article first appeared on <a target="_parent" href="https://www.SmartCompany.com.au">SmartCompany.</a>
 
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Federal Court rules ANZ's late credit payment fees "extravagant, exorbitant and unconscionable"

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Serviced apartment franchise <a target="_blank" href="https://www.smartcompany.com.au/smart50-2007/7559-quest-serviced-apartments">Quest</a> is facing a number of exits from its network following settlement negotiations in a class-action lawsuit, according to the <a target="_blank" href="https://m.afr.com/p/business/property/quest_loses_franchisees_after_lawsuit_B2fY0EQOkuDEE9Xsh0IMdI">Australian Financial Review</a>.

Nine Quest apartment block locations are reportedly set to “debrand” after a claim against Quest in the Federal Court saw 29 franchisees take issue with proposed changes.
These changes include a proposal to lift the group’s gross sales fee on franchisee agreements from six to 8%, as well as the inclusion of a “brand fee” of 1%.
The AFR reports Quest apartments that have debranded as part of the class action include one in Flinders Lane, Melbourne, and one in Darling Harbour, Sydney.
The report says it is understood 12 franchisees have sold their business back to Quest. Reportedly two franchisees that have five properties are still pursuing the case.
Quest was contacted to confirm the details, but a spokesperson declined to comment.
Franchise Council of Australia deputy chairman Jason Gehrke told SmartCompany that in any scenario, the challenge for franchisees that “debrand” and go on to operate their business under their own steam is a possible restraint of trade agreement.
This could be in place to ensure they are not competing directly with the franchisor, or other franchisees in the area for a period of time.
Gehrke advises any franchisee wanting to break from the franchisor to “try to negotiate terms of mutual consent”.
“If not, you risk a full and robust response from the franchisor,” he says.
Gehrke says franchisees that do go out on their own often find it easier if they are in a fixed location rather than being a mobile business, as it is more obvious when in a fixed location that the business is now trading under a new name.
In 2013, <a target="_blank" href="https://www.smartcompany.com.au/growth/franchising/31016-royalty-holidays-a-no-go-after-legal-battle-over-gym-franchise">a High Court case in New Zealand</a> saw a franchisee ordered to sell back the business to its franchisor after it rebranded three gyms without permission.
Owner of franchise Club Physical, Paul Richards, received an email “totally out of the blue” from a franchisee saying three of his ten franchised gyms were being renamed.
The franchisee, Stuart Holder, pulled out of the Club Physical franchise after the end of an initial two-year franchise royalty holiday and re-branded the three gyms as “Jolt Fitness”, putting in place new signs, classes and staff uniforms.
Justice Helen Winkelmann granted an injunction requiring Holder to close the gyms immediately but then allowed Jolt Fitness to keep trading while the two parties negotiated an amicable handover.
The Quest franchise was founded in 1988 and last figures on its website show that it has around 150 properties across Australia and New Zealand.
This article first appeared on <a target="_blank" href="https://www.SmartCompany.com.au">SmartCompany.</a>
 
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Quest serviced apartment franchisees look to "rebrand" in wake of lawsuit

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The chief executive of construction company Grocon, Daniel Grollo, is handing over the baton to deputy chief executive Carolyn Viney – the first non-family member to take the top job in the company’s history.

Grollo, who has been CEO for 14 years, will take the role of executive chairman and retain oversight and full ownership of the company.
Viney has been the deputy chief executive since 2012, focusing on the company’s property development arm among other responsibilities.
Grocon began as a family business in the 1950s. It was established as a concreting company by Luigi Grollo and in the 1980s his son Bruno took charge. In 1999, Daniel, Bruno’s son, stepped into the top job.
Grollo said Viney had been intimately involved in the strategic direction of the business and also responsible for the day-to-day running of the business.
“Carolyn has had a strong hand in Grocon’s recent success, including growing the company’s portfolio of projects and overseeing successful project delivery,” he said.
“This is a succession which has long been anticipated by and has been welcomed by our people and will see us continue to grow our business toward an exciting sustainable future.”
Grollo said he will now focus on diversifying the company into new markets, including offshore.
The Australian Financial Review reported that he would be spending more time in New York, with his first big project the acquisition of an $800 million tower in Manhattan.
The Practice director Jason Cunningham, an advisor to small business, told Smart Company he was not surprised that this succession was planned long in advance.
“I assume Carolyn was groomed in the role for a long time…this is not a knee-jerk reaction,” he says.
Cunningham explains there are two types of family succession planning – voluntary and involuntary. Involuntary usually occurs when there is an unexpected death in the family and other members are forced to step in and run the business.
“This highlights the importance of having a good succession plan in place. You don’t have to do what everyone else is doing; you can think outside the square and have a plan that is right for you.”
He says the last thing you want to do is think, “She’ll be right, I got the business from my dad and I’ll just pass it on to my kids.”
Children may not be interested in the business, or they may not be the right age or in a position to take it on when the owner wants to leave, so keeping an eye outside the family is important, Cunningham advises.
“Sadly, what we see is when things aren’t planned right, and it (handing down the business) doesn’t work.”
This article first appeared on <a target="_blank" href="https://www.SmartCompany.com.au">SmartCompany.</a>
 
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Daniel Grollo hands over CEO role at Grocon to the first non-family member

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Over 50% of the industries that advertise jobs on SEEK in 2013 offered job seekers a higher wage than in 2012, the employment site reports.
In New South Wales, 63% of employers offered job seekers higher salaries than in 2012 and in Victoria 60% offered higher salaries. In Western Australia, 58% offered <a target="_blank" href="https://www.smartcompany.com.au/people/34654-abc-staff-wages-revealed-what-to-do-if-your-team-learn-what-everyone-earns">higher salaries</a>, in Queensland it was 53% and in South Australia 52%.
The report found 40.7% of all industries listed on SEEK offered salary increases above the wage price index of 2.6%.
However, it found the average salary offered on the site was $81,055, slightly down from the 2012 average of $84,458.
SEEK human resources manager Rebecca Supierz said this national decrease in salary reflects a drop in salaries for candidates in high paying sectors, such as mining and construction which have softened in demand.
“Construction and engineering job seekers would have been disappointed to find salary decreases of up to 21% for some roles,” she said.
“However, these roles are coming off a high salary base and when we look nationally, the best paying jobs were still found in the mining resources and engineering sectors.”
The top role for salary growth in 2013 was for local government, up 20% from an average of $57,672 to $69,381.
The highest paying roles on average were for oil and gas geoscientists at $158,671, mining managers at $145,401, mining geoscientists at $139,616, oil and gas drillers at $138,951 and mining engineers at $137,800.
The five lowest paying roles were packers at $42,423, beauty therapists at $42,605, receptionists at $42,611, retail assistants at $44,519 and bakers at $45,162.
The report found wages in the insurance and superannuation sector, and sports and recreation sector were the highest for salary growth last year, up 6% nationally.
In sectors where there were fewer candidates, including healthcare and medicine, the salaries for experienced candidates were up 5%.
In retail, consumer products, community services and development, wages went up by 4%.
Only 9% of industries across Australia experienced no change in salaries, this included IT, financial services and property industries.
The report also found that wages for young people aged 18 to 24 years old were not meeting candidate expectations. 46% of employers think that young people want too much money due to their high standard of living expectations.
“With employers and younger employees divided on the salary debate it is clear the financial and generational chasm in the workplace is widening,” Supierz said.
SEEK spokesperson Sarah Macartney said that this could reflect that many young people who begin full-time work were leaving home for the first time, and realising that their wage did not stretch as far as they anticipated to cover rent and bills.
This article first appeared on <a target="_blank" href="https://www.SmartCompany.com.au">SmartCompany.</a>
 
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Average wage down, but big money still in mining: SEEK salary review 2013

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Chief executives across various sectors are expecting weak <a target="_blank" href="https://www.smartcompany.com.au/growth/economy/35342-nab-survey-shows-business-conditions-up-jb-hi-fi-signals-sales-lift-midday-roundup">business conditions</a> for 2014, according to the latest annual Business Prospects report from the Australian Industry Group.

37%t of CEOs expect business conditions to improve in 2014, 35% expect them to deteriorate and 28% expect conditions to remain unchanged.
In manufacturing, the report found 40% of CEOs are expecting another year of contraction and around one third are anticipating an improvement. Around 32% intend to invest more, while 31% will cut expenses.
In the mining sector, 46% of CEOs were expecting business conditions to deteriorate, with 46% looking to increase expenditure and 38% planning to cut it.
CEOs in the services sector were most optimistic about business conditions, with 44% expecting them to improve and around 75% expecting sales revenue to rise.
Construction sector CEOs are moderately optimistic, with 30% expecting a lift in business conditions and 57% a higher sales revenue.
Across the board, the report found 21% of CEOs think lack of customer demand is the most common growth problem for the year.
Wage pressures were nominated by 15% of respondents as a prime area of concern, followed by business regulation at 11% and the exchange rate at 10%.
A key growth strategy for 20% of CEOs in mining, manufacturing, services and construction sectors was to improve sales for their current range of products.
Reaching out to new customers was a strategy for 21% of construction firms, 16% of services firms, 15% of mining services firms and 14% of manufacturers.
Ai Group chief executive Innes Willox said 2014 will continue to see modest growth in production, sales and employment, as the economy struggles to rebalance against low investment in resource projects and lower commodity prices.
“While low interest rates have begun to have an impact in some sectors and while competitiveness has improved with the lower Australian dollar, we are still some way from the required rebound in the non-mining sectors of the economy,” he said.
“In particular, business investment in the non-mining sectors is set to improve only marginally in 2014 from very low levels.”
This article first appeared on <a target="_blank" href="https://www.SmartCompany.com.au">SmartCompany.</a>
 
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CEOs tip weak year ahead for businesses

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The Australian Industry Group Australian Performance of Manufacturing Index contracted for the third month in a row in January, down 0.9 points to 46.7 points.
Seasonally adjusted, it remained in negative territory across all the major activity sub-indexes.
Some improvement was found in new orders and employment, with those sub-indexes contracting at a slower rate compared with December, at -48.8 and 48.3 respectively.
Some sub-sectors, however, recorded growth, including food, beverages and tobacco at 54.0, wood and paper products at 61.9, petroleum, coal, chemical and rubber products at 52.7 and non-metallic mineral products at 57.6.
Australian Industry Group chief executive Innes Willox said the year is looking challenging for manufacturers; however, some areas have positive signs of growth.
“Non-metallic minerals – which includes key building materials such as glass, bricks and cement – has improved in response to the beginnings of a lift in residential construction,” he said.
“Some encouraging signs are also evident in food and beverages manufacturing and in petroleum and chemicals manufacturing, possibly due to the lower Australian dollar over recent months.”
This article first appeared on <a target="_blank" href="https://www.SmartCompany.com.au">SmartCompany.</a>
 
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Manufacturing slips for third consecutive month

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]

Melinda Oliver

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