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High density urban redevelopment is needed to improve housing affordability and ensure community access to amenities is fairly distributed around Sydney as the city grows, according to the chair of the Committee for Sydney and director of Turnbull and Partners, Lucy Turnbull.
But local resistance to high density development is creating barriers to urban improvement, Turnbull said at the 2014 HIA Building Better Cities Summit in Sydney last week.
“There is a fundamental break down between professional and industry understanding, and community understanding, of the benefits of smart growth,” said Turnbull, who among other board and executive positions is Chair of the Committee for Sydney and former Lord Mayor of the City of Sydney.
“Communities often have the default position that doing nothing is the best thing,” she said.
Resistance to development was often based on a fear of a loss of access to services such as healthcare, car parking, childcare, local schools and public transport.
This was exacerbated by the small size of Sydney’s local government areas which led to attitudes at a local level that managing wider national and metropolitan population and economic growth was someone else’s problem, Turnbull said.
With a population of around 4.5 million, Sydney has 38 local government areas. In contrast, Brisbane has one local government area covering a population of one million. Overseas, London has a population of 8.2 million and one city council that sits above 33 local government areas. New York City, with 8.3 million people, has one city council and five boroughs.
Turnbull said higher density developments in Sydney could deliver benefits to the community by improving the vitality of town centres and access to public transport.
She said the Central Park development near Sydney’s central station and Stockland Balgowlah on Sydney’s northern beaches should be held up as good examples of urban development done well.
She identified Parramatta, Liverpool and Penrith as areas in which higher density centres should be developed.
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Resistance to high density development creating barriers to urban improvement: Lucy Turnbull

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Developers need to challenge resistance to their planning proposals and encourage community collaboration with projects to address the housing shortage in Australia, the head of a major land development company has said.
Planning processes had moved from being administrative, objective and evidence-based to a situation where agreements were brokered between stakeholders, Investa Land chief executive Cameron Holt told delegates at the 2014 HIA Building Better Cities Summit in Sydney last week.
“The development industry and housing industry needs to push back to objective and evidence-based research,” Holt said.
He cited ANZ and Australian Bureau of Statistics data that suggested there was a looming shortage of around 350,000 dwellings a year in Australia.
In some regions the community accepted there was a need for more housing but in other areas there was strong opposition to extra development, which led to missed opportunities to ease the supply shortage.
Holt said housing developers had a tendency to give in to stakeholder pressure and make concessions with their projects because of the need to quickly deploy capital.
“The cost of capital is burning a hole in their pockets,” he said.
Rather than a combative or deal-brokering approach, greater collaboration between developers, local councils and the community was needed to deliver better development outcomes, he said.
“We can work together and work collaboratively to address the common goal of addressing the housing shortage in Australia.”
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Development company chief calls for greater community collaboration to meet housing shortfall

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Residential construction activity is expected to remain strong in the coming year following a considerable rise in new housing starts in the year to March 2014.
The value of new housing starts rose by 8.7% in seasonally adjusted terms in the March quarter compared with the previous three months, the Australian Bureau of Statistics reported. Compared with the March quarter of 2013, new housing starts were up by 22%, the ABS reported.
Housing Industry Association chief economist Harley Dale said the increase included a 12.8% surge in detached houses.
“The annual level of new dwelling commencements is at its highest since late 2010 and at 176,891 is approaching historical peaks, with further upward momentum to come,” Dale said.
Dwelling commencements increased in all of the states and territories, except South Australia, where housing starts fell by 7.8%.
The strongest increase was in the Australian Capital Territory (31.6%), followed by Victoria (15.4%), Western Australia (12.1%), the Northern Territory (5.9%), Tasmania (5.3%), New South Wales (2.5%) and Queensland (1.3%).
The value of residential building work done in the March quarter also rose, the ABS reported.
Residential building work done in the March quarter was up 7.6% compared with December quarter and up 8.5% compared with the previous March quarter, the ABS reported.
Forward sentiment indicators for the residential construction sector are also strong with the latest Property Council-ANZ Property Survey finding construction businesses expect strong activity in major metropolitan centres to continue over the next year.
Overall, expectations for the September quarter moderated, the Property Council-ANZ Survey found. That was in line with a decline in home building approvals data reported by the ABS.
The property sector remained optimistic about the outlook for the coming year, although construction activity expectations peaked in the June quarter, the Property Council-ANZ survey showed.
ANZ chief economist Warren Hogan said the industry’s optimism was driven by strong underlying housing market demand, a solid pipeline of building activity and expectations of further cyclical improvement in economic conditions.
The residential sector was still the strongest part of the industry with construction activity and price expectations buoyant even though price expectations had softened in line with lower auction clearances, he said.
“House prices now appear to be settling down to more sustainable growth rates. House prices are expected to rise over the next 12 months in every State except the ACT,” Hogan said.
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Residential construction activity going from strength to strength

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City of Sydney Council has put forward plans to rezone industrial areas in the city’s south to allow a wider range of commercial uses.
Although the areas are close to Sydney’s CBD and near suburbs that are in demand for residential development, private housing will generally not be allowed on the land.
Large areas zoned for general and light industrial purposes around <a href="/news">Alexandria</a> and <a href="/news">Rosebery </a>are earmarked to be rezoned as Business Park (see figures 3 and 4).
The only places in which residential development will be allowed are a section of Botany Road that currently permits shop-top housing and senior housing, and two areas on the edge of the Business Park that are being considered as sites where affordable housing could be developed to accommodate lower paid workers.
Attitudes towards land zoning have changed, Council notes in the introduction to its planning proposal. In the past, land use planning sought to divide uses into zones to minimise conflict between uses. Now, there is recognition that benefits could flow from locating a range of activities together, as long as they don’t have an "unreasonable impact" on one another – including raising values to such an extent that industry is priced out of the market by residential development.
The Council expects restricting the land in the areas proposed for rezoning to mainly commercial uses will keep land values down.
The conversion of other commercial and industrial sites in Sydney’s south to residential dwellings has started to have a major impact on the industrial market, and consequently jobs in the area.
Knight Frank’s research shows 71 businesses in the South Sydney commercial sector have been displaced in the past 12 months due to land rezoning with these businesses forced to consider relocating.
Knight Frank’s Industrial South Sydney Manager, Brooke Railton says <a href="/news">Marrickville</a>, in Sydney’s inner west is a popular alternative, given its close proximity to the Port Botany, Sydney Airport, main arterial roads and the CBD.
Fireplace manufacturer Jetmaster recently bought a vacant freestanding warehouse in Marrickville for $3.3 million, after selling two of its properties in redeveloped areas to enable the business to operate out of one location. Knight Frank received close to 80 enquiries on the industrial property. 
Industrial land values in Sydney's south are on average $850 per square metre, Colliers International’s first half Industrial Research &amp; Forecast Report found. That compares with values of $250 per square metre in Sydney's south west and $330 per square metre in the western suburbs.
Residential property prices in suburbs near to the South Sydney employment lands are considerably higher.
In <a href="/news">Erskineville</a>, which borders Alexandria to the west, residential land values were around $520,000 for a 4x32 metre block in 2013, according to the NSW Valuer general. That equates to $4,062.50 a square metre.
In <a href="/news">Mascot</a>, adjacent to the southern end of the employment lands, residential land values rose by 10% between 2012 and 2013 to $665,000 for a 12 x 40 metre block, according to the NSW Valuer general. That equates to $1,385.40 per square metre.
CBRE recently negotiated the sale of a 947 square metre showroom/warehouse facility at 133-141 Botany Road in Waterloo with residential development potential to Advan Properties. The residential property developer intends to lodge a development application for the site’s redevelopment.
The sale price of $4.5 million represented a land rate of $4,751 per square metre, according to CBRE.
Another freestanding commercial property with residential conversion potential, located just south of the City of Sydney employment lands sold to technology solutions firm Crosspoint Telecom for $2.31 million.
CBRE noted in its Q4, 2013 Australian Industrial MarketView report that investors were highly active in Sydney’s industrial market and were prepared to sit patiently on inner-ring assets that might be rezoned for residential use in future.
“A new breed of buyers, comprising mainly of unlisted wholesale groups and syndicators, are targeting these typically smaller assets – priced sub $30 million – due to their close proximity to the city and future redevelopment potential for higher and better use,” CBRE senior director, industrial investments, Matthew Lee says. “These buyers are happy to wait it out on an asset in order to take advantage of retail or residential redevelopment opportunities down the track.”
Click through to the next page to see graphics of City of Sydney Council's rezoning plans.
<hr class="system-pagebreak">
Employment lands in the City of Sydney Council area comprise three precincts:
(a) the southern employment lands – this area is about 265 hectares in size and stretches from the southwest corner of the Green Square Town Centre to the south west corner of the LGA. Generally the area is in the suburbs of Rosebery and Alexandria and is bordered by Gardeners Road to the south, McEvoy Street on the west and Mentmore Avenue and Botany Road on the east;
(b) the Moore Park employment lands – this area is about 3.6 hectares in size and includes a single large lot on which the Moore Park Supa Centa is currently located; and
(c) the Parramatta Road employment lands – this area is about 2.1 hectares in size and includes several small lots in Glebe. The area is bordered by Arundel Street and Parramatta Road and divided by Ross Street.
Source: City of Sydney Council
Click to open in new window:
 <a href="/images/2014/07/21/zoning-july-21-one.gif" target="_blank"><img src="/images/2014/07/21/zoning-july-21-one.gif" alt=""></a>
Source: City of Sydney
 <a href="/images/2014/07/21/zoning-july-21-two.gif" target="_blank"><img src="/images/2014/07/21/zoning-july-21-two.gif" alt=""></a>
Source: City of Sydney
Existing City of Sydney Southern Employment Lands in context
<a href="/images/2014/07/21/zoning-july-21-three.jpg" target="_blank"><img src="/images/2014/07/21/zoning-july-21-three.jpg" alt=""></a>
Source: City of Sydney Council 
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City of Sydney planning to rezone swathes of southern industrial areas

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The Australian Business Roundtable has released a report that argues better risk management and preventative actions could save up to $14.6 billion a year in recovery costs following natural disasters.
The roundtable group was formed in late 2012 following an unprecedented number of floods, storms and bushfires across Australia. Its members are the chief executive officers of Insurance Australia Group, Investa Property Group, Munich Re and Westpac, as well as the Australian Red Cross and Optus.
The Roundtable released a white paper last year estimating that the economic cost of natural disasters would rise to $23 billion a year by 2050 from about $6.3 billion now.
Property insurance costs have already risen dramatically as insurers have reassessed the risks and costs of natural disasters over the past few years. In areas of North Queensland in particular, the costs of insurance have become too high for some property owners to afford.
The claims bill for tropical cyclone Ita in Queensland in April was around $8.4 million, <a href="https://www.insurancecouncil.com.au/statistics" target="_blank">the Insurance Council of Australia estimates</a>. Bushfires in Perth in January cost $15 million and bushfires in NSW in October 2013 cost $183.4 million.
The latest Australian Business Roundtable report, Building an Open Platform for Natural Disaster Resilience Decisions, argues that well-planned investment focused on risk minimisation could save between $12.7 billion and $14.6 billion a year in disaster recovery costs.
It found natural disaster research could be difficult and costly to access and incomplete, which hampered efforts to manage and reduce risks of natural disasters. In some cases research was duplicated or was unsuitable for organisations that would find the information useful.
The report recommends:
<ol>
<li>Developing a single point of access to national information on topics such as flood elevation, the location of assets, the resilience of building materials and long-term weather patterns that could be used to protect homes and property nationally from natural disasters.</li>
<li>Removing restrictive barriers on accessing data and research by standardising research and addressing concerns such as unnecessary restrictive licensing.</li>
<li>Prioritising investment in helping communities to become resilient to natural disasters, especially in the highest risk areas.</li>
</ol>
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Natural disaster preventive action and risk management could save over $14 billion a year

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Foreign investors are paying inflated prices for commercial property in Australia as yields are still better than the low interest rates available offshore, a local fund manager says.
Australian Unity head of property, mortgages and capital markets Mark Pratt said foreign buyers were ignoring softness in Australia’s economy, weak business and consumer sentiment and high vacancy rates in commercial property to snap up buildings.
“We have an extraordinary level of cash looking to invest in Australia, domestically and offshore, driven by Australia being seen as a safe haven destination for capital but also, whilst we have historically low interest rates, they are, in a relative sense, higher than most jurisdictions,” Pratt said.
Commercial property in Australia is offering cap rates of 7% to 7.5%, which is considerably higher than the local cash rate of 2.5%, Pratt said. In Asia, where cash rates are even lower, the difference between the returns available and the risk-free rate is even greater, driving demand from offshore.
Some buyers were paying 20% more for buildings that Pratt judged their value to be.
“Private capital is coming in from overseas, it’s here as a holding purpose rather than any underlying fundamentals and that introduces some interesting dynamics into the buying market,” he said.
Pratt said the increased demand from overseas buyers made it difficult for fund managers that had a mandate to invest through varying property cycles to identify assets that offered good value. There were still opportunities in secondary office space and healthcare properties, he added.
It was also making owners who had not been planning to sell their assets consider the possibility.
“If we get a good offer we have to consider whether it’s worth selling even if it’s not in our plan,” Pratt said. “We have to balance [a sale] against the risk in the future. With demand coming in that’s happening more frequently.”
Pratt said AUI was always working to improve the income generated by the properties it owned in its funds but weak tenant demand was limiting the opportunities. 
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Foreign investors paying inflated prices for commercial property: Fund manager

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Reverse mortgages could become more popular as cash-poor home owners begin to retire and need extra money to fund major expenses such as positions in aged care facilities, according to Deloitte and the Senior Australian Equity Release Association (SEQUAL).
The take-up rate for reverse mortgages in Australia is very low, said Deloitte partner financial services James Hickey, who authored this year’s Deloitte annual Reverse Mortgages Report.
There are around 40,000 reverse mortgages outstanding in Australia now, representing only about 1% to 2% of retiree households, the report found.
“It’s interesting to think about why that may be, and in our view it’s the lack of awareness, the lack of understanding and the lack of support to discuss home equity release with retirees,” Hickey said.
Reverse mortgages were starting to gain popularity around 2005 to 2007 but the products suffered reputational damage when consumer groups came out with warnings that mortgage brokers had been pushing the elderly to take larger loans than they needed.
Several major lenders withdrew from the market when money markets froze during the financial crisis and it became difficult to source funds to back the mortgages.
Only $404 million of new reverse mortgage borrowings were approved in 2013, down from $714 million in 2006.
 <img src="/images/2014/07/14/del-july-14-one.gif" alt="">
Source: Deloitte Reverse Mortgage Report, 2014
The major providers of the loans still in the market are Commonwealth Bank of Australia, Bank West and St George. Macquarie Bank relaunched its offering to the market in March.
Last year, the products were included under the National Consumer Credit Protection Act and all of the providers in the market are members of SEQUAL and are bound by its code of conduct.
Hickey said most people have around two thirds of their wealth locked up as equity in their homes when they retire but few think to access the capital to meet their spending needs.
Deloitte estimates that about half of the people who take out a reverse mortgage use the proceeds for regular income. About one third use the money to repay debt, such as a prime mortgage if they are retiring with an outstanding debt.
“It’s a very powerful mechanism to allow the retiree to maximise their cash flow in retirement if they are going into retirement with debt,” Hickey said.
Deloitte estimates about one in seven use the money for home improvements. Other common uses include buying a new car and taking a holiday.
SEQUAL executive chairman John Thomas said most retirees were conservative with their borrowings through reverse mortgages.
“We find with seniors they take what they need not what they can borrow,” Thomas said.
The average settlement amount was $71,000.
New reverse mortgages are only available to people aged over 65 years. The maximum loan to value ratios offered to 65 year olds is between 15% and 20% of the value of the home. The maximum LVR offered increases according to the borrower’s age. An 80 year old would be able to access more than 25% of the value of their property.
Hickey said lenders used actuarial models to determine the maximum LVR they would offer to people at each age. The maximums were low because there was no requirement for borrowers to repay the debt until they sold the property or passed away.
The lenders also provide a “no negative equity guarantee”.
“The lender wears all the risk ... If the value of the house should be less than the mortgage debt they cannot ask the borrower, estate or beneficiaries for any more money than the value of the home,” Hickey said.
While there is no requirement for people who take out a reverse mortgage to repay the loan until they die or sell the property, Deloitte’s research suggests that people typically repaid the loan in full after around seven or eight years.
A larger number of people repaid the loans in 2013 compared with previous years ($504 million discharges compared with $350 million in 2012).
Hickey said anecdotal evidence suggested that retirees with reverse mortgages had taken advantage of capital growth in the property market to sell their home at a profit and repay the loan. 
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Reverse mortgages could become more popular: Deloitte

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Falling debt costs and share buy backs have supported the valuations of Australian Real Estate Investment Trusts, a top performing fund manager in the sector has said.
Smaller AREITs with exposure to residential property have also performed well over the past year, Zurich Australia senior investment specialist Patrick Noble told Property Observer.
“We still see the recovery on the east coast is supporting those with residential exposure or exposure to economic activity in this part of the world,” Noble said.
Listed residential developers Villa World and Peet were strong performers in the portfolio of the Zurich Renaissance Australian Property Securities fund, which is managed by Renaissance Property Securities. Villa World gained around 70% in the 12 months to the start of June, while Peet added 9.5% over that timeframe.
Retirement village owner/operator Ingenia Communities had also done well for the portfolio, gaining more than 160% over the past two years. Noble said the manager had started to sell its holdings in that stock to take profits.
The Zurich Renaissance fund made no gains through May, but was the top performer in its sector over three and five years, returning 15.9% and 18.6% respectively over those timeframes, according to Morningstar data.
Over three years, the S&amp;P/ASX 200 AREIT index rose 13.8% and the average fund manager gained 14.2%, Morningstar’s latest monthly sector survey showed. Over five years, the index returned 14.6% and the average fund manager returned 15.4%.
Noble said the managers at Renaissance pursued an active value style of investing, meaning they researched individual AREITs and invested in those they believed to be undervalued by the market. It aimed to outperform the benchmark by 1.5% a year over three year rolling periods.
The manager had a preference at present for AREITs like Charter Hall Group, which earned income from development and funds management.
“When markets improve they get more fee income which boosts earnings. In this market, their income is growing,” Noble said.
It was avoiding those with exposure to the office and retail markets.
The office market was challenged by strong competition for lease renewals and extra supply of office buildings that were under development.
High rent costs and low income growth made the retail sector less attractive than other parts of the market, Noble said. 
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AREITs benefitting from falling debt, share buy back schemes: Zurich Australia fund manager

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Investors have been active in the property market with many seek out properties by themselves, but some appoint a buyers’ agent to assist them with the process.
<a href="https://rebaa.com.au/">Real Estate Buyers' Agents Association of Australia</a> (REBAA) president Jacque Parker talked to Property Observer about the kinds of property investors are looking for at present and why it’s worth considering the services of a buyers’ agent.
Why should an investor consider using a buyers’ agent?
The first reason is that you are given an edge by having an advocate on your side, just like when sellers engage a sellers’ agent.
Buyers’ agents are 100% independent because their service is being paid for by the buyer.
Not everyone buys property every day whereas buyers’ agents do that. They understand the complexities of the market and the process.
It’s important to have local knowledge of the market. Not everyone has that.
[Buyers’ agents] save time by doing the research and field work. As far as investors go, it’s narrowing down the suburbs, that will fit their budget and, if they have a strategy in mind, whether it’s a property that needs renovation or is in an area that offers potential capital growth.
What are investors looking for in properties at the moment? 
Most investors that come to us are looking for properties at the low end of the budget.
[Some are] looking for low entry [price] suburbs where they can buy something and do a renovation. Because we have that market knowledge, we can suggest areas that might suit them.
Most investors are looking for something that they don’t have to do anything to. Most people who hire buyers’ agents are time poor and while we don’t manage the renovation, we can help them on that by providing names of tradespeople and builders. We can provide guidance on how to start.
Investors are looking for yield and capital gain. People say you either get one of the other, but that’s not true. I’ve bought properties in regional areas that have achieved great capital gains and delivered high rental yields.
It’s about what your budget can allow and your cash flow can afford.
What are you seeing in the residential property market? 
Sydney is a sellers’ market. It’s an active market. There’s still more demand than supply.
The market overall is not one market though. That’s the trouble with any opinion from any so-called expert in the field. You are talking about a broad market. NSW is not one market. It’s made up of one huge capital city with lots of variation in its demographics, plus regional areas.
The market in the capital city has been very robust and over the past 18 months there have been many areas that have not boomed so much since 1993. It’s not sustainable, though. Property does have a boom, followed by slower growth and then plateaus out.
We don’t make forecasts but the key drivers are still in place because we have record low interest rates, increased consumer sentiment and positivity which goes a long way to accounting for activity and we still have affordable prices within Sydney and Melbourne.
Investors can still afford to get into the market for a reasonable amount and it’s relatively easy to get credit.
The past 18 months has seen all of those factors collide and there has been a boom in activity. It probably won’t continue, however that’s not to say it will go backwards. It will settle into a more stable and consistent growth pattern when interest rates start to rise.
Where are investors looking?
In Sydney, the median house price is almost $800,000. That’s not affordable. Most investors are starting off with units or looking further out for houses: <a href="/news">Blacktown</a>, <a href="/news">Penrith</a>, <a href="/news">Campbelltown</a> and to a lesser extent <a href="/news">Parramatta</a>. Regional areas have been attracting more interest as people can’t afford the capital cities.
Certainly there’s still a lot of interest in buying as close as possible to the city and maximising land value. Investors are trying to get the biggest piece of land they can as close to the city as possible and they’re prepared to go further out to get a piece of land.
Blacktown is still affordable for houses. Most investors buy properties under the $600,000 price range. Most people go in with $400,000 to $500,000.
What does REBAA do? 
The Real Estate Buyers’ Association of Australia is the only national body for buyers’ agents. All of the members are independent and none of them sell real estate.
People are either an independent buyers’ agent or they’re a sellers’ agent that calls themself a buyers’ agent.
In the US, they have a model where the commission is split between the sellers’ agent and the buyers’ agent. Commission there for sellers is around 6%. In Australia, we don’t have that model. It presents a danger of conflicts of interest.
All the buyers’ agents who are members of REBAA are licensed and carry professional indemnity insurance, which is not mandatory throughout Australia. They have to be endorsed by two other buyers’ agents to gain membership.
How can investors tell if a buyers’ agent is independent?
You have to be careful. Check their license number with the state or territory Fair Trade website. Ask them if they sell real estate.
If they receive any form of commission from any selling agents they have to disclose that and that’s where it gets grey and murky. If they sell real estate, they are not a buyers’ agent.
A buyers’ agent is not selling you property. They are looking for property that meets your criteria and presenting those properties to you. It’s very different.
What about property spruikers selling to SMSFs?
It’s not a new problem but the fact is that some financial planners and advocates are asking for big fees from developers because they see it as an easy way to make commissions.
Buyers have to ask what else is out there that compares to the property they are being sold and realise that the recommendation is a clear conflict of interest.
Even if the fee is disclosed with the SMSF property developers the buyer ends up paying an inflated fee which covers the cost of those commissions. You are better off paying someone to look for property for you independently.
Buyers need to be a bit smarter when they go to anyone who is giving them advice and ask them why they are giving that advice. Knowledge is power. Don’t be afraid to ask questions. 
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Why investors should consider using a buyer's agent: Q&A with REBAA's Jacque Parker

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Global listed property funds delivered the highest returns of all types of managed fund in May, adding 3.3% for the month, according to the Morningstar Australian Institutional Sector Survey.
The UBS Global Investors ex Australia index rose by 3.3% over the month to 31 May in Australian dollar terms. The index delivered 11.6% over the 12 months to the end of May and 14.8% over the calendar year to date.
UBS Clarion Global Property Securities fund performed the best over the month, gaining 3.8%.
AMP Capital delivered the highest returns over the 12 months to the end of May and year-to-date, gaining 13.5% and 16.3% respectively.
AMP Capital deputy head of global listed real estate James Maydew said the fund management team looked at individual REITs and aimed to identify the best ones. The fund currently has about 60 stocks in its portfolio.
“We have a quality bias to the portfolio construction. We believe quality will outperform throughout the real estate cycle ... When we say quality, we don’t just mean quality real estate. We also look at quality management, capital management and balance sheet,” Maydew said.
Commercial property in London looked attractive at this point in the property cycle, he said.
“The market there was impacted heavily by the financial crisis. Nothing was developed there for an extended period of time. We are now experiencing economic growth and jobs growth which is translating to falling vacancy rates, occupancy gains and rental tension,” Maydew said.
The manager was also attracted to REITs that had development capabilities. “We want developers because they are the people that can make the margin on real estate in a rising market. Real estate is cyclical and we have to be able to own those managers that can access that cyclical environment.”
Aged care is another theme that AMP Capital’s team has been pursuing. While the market for listed aged care providers in Australia is quite small, it is better established globally, Maydew said.
“Ageing populations are translating to more demand for aged care facilities ... That’s going to hold for a long period of time.”
Research house Morningstar upgraded AMP Capital’s global REIT strategy from bronze to silver during its latest review of funds in the sector, but downgraded it back to bronze following the departure of two London-based team members in April.
Maydew said there were 14 people in the team before the departures, and the aim was to rebuild the team to 15 people, including three people based in Europe.
He said the manager had received a large number of applications for the roles from all over the world and expected to fill the positions within the next couple of months.
It was considering relocating one or two team members from elsewhere in the world and backfilling those positions with new local recruits to ensure the team’s culture was maintained in the London office. 
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Global listed property funds bested all other fund types with highest May returns

<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;

Zoe Fielding

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