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<p>Consumers are increasingly looking online for bathroom products for renovations, but little is available that offers high quality at a low price, according to a supplier that hopes to fill the gap in the market.</p>
<p>The sanitary wear and bathroom fixtures market in Australia is worth about $1.4 billion a year but major competitors in the sector do not have a significant online presence, said Calvin Ng, director of Disruptive Investments Group which recently bought a 50% stake in <a href="https://www.allurebathrooms.com.au/" target="_blank">Allure Bathrooms</a>.</p>
<p>“The internet has become where consumers are starting their researching journey particularly in the home renovation market,” Ng said.</p>
<p>Studies show that 51% of consumers research prospective purchases online before visiting a store to buy; 44% research and buy online; 32% research online, visit a store to view the product and then return online to buy; and 17% visit a store first before buying online.</p>
<p>“The line between physical and online is blurring and that’s one of our big strategies,” Ng said. “We intend to have showrooms and distribution centres in every state but we think the bulk of [customers’] research will start on the internet.”</p>
<p>Television programs like <em>The Block</em> and <em>House Rules</em> were helping to fuel a mini boom in the renovation market, while declining housing affordability was encouraging people to renovate rather than buying new homes, Ng said.</p>
<p>Allure Bathrooms started in 2010 designing and selling high-end bathroom fittings, vanities and accessories via eBay, and subsequently through a dedicated online store.</p>
<p>The first physical store opened about 12 months ago in Collingwood, Victoria. Although the supplier has only one store, Ng said it was already receiving orders from all over the country from both wholesale and retail customers.</p>
<p>“There isn’t too much in this space that is well-priced and high quality and that’s a huge gap in Australia,” Ng said.</p>
<p>He added that some of Allure’s products cost half to a third of comparable products from larger suppliers such as Harvey Norman and Reece.</p>
<p>“That’s typical of a market that is ripe for disruption,” Ng said.</p>
<p>Similar trends had already occurred in the markets for home electronics and white goods, with businesses such as electronics supplier Kogan, furniture retailer Milan Direct and white goods retailer Appliances Online, taking market share.</p>
<p>Allure plans to open more stores and franchise the business to develop a wider reach across Australia.</p>
<p>The business is already cash-flow positive and profitable. Disruptive Investments Group reported Allure’s revenue in the six months to January 2014 grew by about 65% compared with the previous six months. </p>
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zfielding-GvX3Uq9KTa

DIY-renovators heading online to snap up home improvement products

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<p>Property investors feel the effects of interest rate changes just as much as home owners do, although that impact may be disguised in the short-term by negative gearing.</p>
<p>Investors receive a tax deduction on mortgage interest expenses, so paying more interest on an investment property loan may not seem as bad as when rates rise on the loan that funds the family home. A bigger interest bill means a bigger tax deduction, after all.</p>
<p>But interest rate increases do hit the bottom line of investment returns. Higher costs, without accompanying rent increases, reduce the income the investor receives each year. This means the investment must achieve a higher capital gain to produce the same total return.</p>
<p>Accounting firm, HLB Mann Judd has crunched some numbers for <em>Property Observer</em> that demonstrate the effect of interest rate rises on a fairly typical property investment.</p>
<p>The property in the example is worth $465,000 and achieves a weekly rent of $400. An investor buys the property with a loan of $418,500 (having paid for 10% of the property in cash). The mortgage is taken over 25 years with monthly repayments. In the example, the investor has decided to repay the principal as well as interest.</p>
<table style="width: 460px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" nowrap width="217">
<h5>Loan details</h5>
</td>
<td valign="top" nowrap width="130">
<h5> </h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Property Value</h5>
</td>
<td valign="top" nowrap width="130">
<h5 style="text-align: right;">$465,000</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5> </h5>
</td>
<td valign="top" nowrap width="130">
<h5> </h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Loan Amount</h5>
</td>
<td valign="top" nowrap width="130">
<h5 style="text-align: right;">$418,500</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Annual Interest Rate</h5>
</td>
<td valign="top" nowrap width="130">
<h5 align="right">5.1%</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Term of Loan (years)</h5>
</td>
<td valign="top" nowrap width="130">
<h5 align="right">25</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5> </h5>
</td>
<td valign="top" nowrap width="130">
<h5> </h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Repayment Frequency</h5>
</td>
<td valign="top" nowrap width="130">
<h5 align="right">Monthly</h5>
</td>
</tr>
</tbody></table>
<p><span style="line-height: 1.3em;">The property generates an annual rental income of $20,800 and there are no periods of vacancy throughout the year.</span></p>
<p>Annual expenses total $6,306.</p>
<table style="width: 460px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" nowrap width="177">
<h5>Estimated Annual Income</h5>
</td>
<td valign="top" nowrap width="94">
<h5> </h5>
</td>
<td valign="top" nowrap width="208">
<h5>Estimated Annual Expenses</h5>
</td>
<td valign="top" nowrap width="151">
<h5> </h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="177">
<h5> </h5>
</td>
<td valign="top" nowrap width="94">
<h5> </h5>
</td>
<td valign="top" nowrap width="208">
<h5> </h5>
</td>
<td valign="top" nowrap width="151">
<h5> </h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="177">
<h5>Rental income (at $400/wk)</h5>
</td>
<td valign="top" nowrap width="94">
<h5>$20,800</h5>
</td>
<td valign="top" nowrap width="208">
<h5>Strata Levies ($470/qtr)</h5>
</td>
<td valign="top" nowrap width="151">
<h5>$1,880</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="177">
<h5> </h5>
</td>
<td valign="top" nowrap width="94">
<h5> </h5>
</td>
<td valign="top" nowrap width="208">
<h5>Council Rates ($270/qtr)</h5>
</td>
<td valign="top" nowrap width="151">
<h5>$1,080</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="177">
<h5> </h5>
</td>
<td valign="top" nowrap width="94">
<h5> </h5>
</td>
<td valign="top" nowrap width="208">
<h5>Water Rates ($160/qtr)</h5>
</td>
<td valign="top" nowrap width="151">
<h5>$640</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="177">
<h5> </h5>
</td>
<td valign="top" nowrap width="94">
<h5> </h5>
</td>
<td valign="top" nowrap width="208">
<h5>Management Fees (5.8%)</h5>
</td>
<td valign="top" nowrap width="151">
<h5>$1,206</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="177">
<h5> </h5>
</td>
<td valign="top" nowrap width="94">
<h5> </h5>
</td>
<td valign="top" nowrap width="208">
<h5>Repairs &amp; Maintenance</h5>
</td>
<td valign="top" nowrap width="151">
<h5>$1,000</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="177">
<h5> </h5>
</td>
<td valign="top" nowrap width="94">
<h5> </h5>
</td>
<td valign="top" nowrap width="208">
<h5>Landlord Insurance Premium</h5>
</td>
<td valign="top" nowrap width="151">
<h5>$500</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="177">
<h5> </h5>
</td>
<td valign="top" nowrap width="94">
<h5> </h5>
</td>
<td valign="top" nowrap width="208">
<h5> </h5>
</td>
<td valign="top" nowrap width="151">
<h5> </h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="177">
<h5>Total Income</h5>
</td>
<td valign="top" nowrap width="94">
<h5>$20,800</h5>
</td>
<td valign="top" nowrap width="208">
<h5>Total Expenses</h5>
</td>
<td valign="top" nowrap width="151">
<h5>$6,306</h5>
</td>
</tr>
</tbody></table>
<p><strong style="line-height: 1.3em;">Case study – mortgage rate 5.1%</strong></p>
<p>In the first case, the interest rate on the loan is the Reserve Bank of Australia’s indicator rate for a discount variable mortgage, current as of May 2014, of 5.1%.</p>
<p>At that rate, the investor pays $2,471 a month for the mortgage, or $29,651 over the year. This comprises of $21,147 in interest and $8,505 in principal repayments.</p>
<table style="width: 460px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" nowrap width="217">
<h5>Mortgage Repayments (at 5.1%)</h5>
</td>
<td valign="top" nowrap width="95">
<h5> </h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Monthly Repayments</h5>
</td>
<td valign="top" nowrap width="95">
<h5>$2,471</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Yearly Repayments*</h5>
</td>
<td valign="top" nowrap width="95">
<h5>$29,651</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5> </h5>
</td>
<td valign="top" nowrap width="95">
<h5> </h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>*Comprised of :</h5>
</td>
<td valign="top" nowrap width="95">
<h5> </h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Annual interest repayments</h5>
</td>
<td valign="top" nowrap width="95">
<h5>$21,147</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Annual principal repayments</h5>
</td>
<td valign="top" nowrap width="95">
<h5>$8,505</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5> </h5>
</td>
<td valign="top" nowrap width="95">
<h5> </h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Total cost of loan</h5>
</td>
<td valign="top" nowrap width="95">
<h5>$741,286</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Total interest paid</h5>
</td>
<td valign="top" nowrap width="95">
<h5>$322,786</h5>
</td>
</tr>
</tbody></table>
<p><span style="line-height: 1.3em;">That means the property generates a taxable loss of $6,653 for the year. Taking into account the principal repayments, the property has generated an annual cash loss of $15,158.</span></p>
<p>The principal has reduced by $8,505 so there is $409,995 outstanding on the mortgage.</p>
<table style="width: 460px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" nowrap width="217">
<h5>Taxable profit/loss</h5>
</td>
<td valign="top" nowrap width="101">
<h5> </h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Estimated Annual Income</h5>
</td>
<td valign="top" nowrap width="101">
<h5 align="right">$20,800</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Estimated Annual Expenses</h5>
</td>
<td valign="top" nowrap width="101">
<h5 align="right">-$6,306</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Annual Interest Repayments</h5>
</td>
<td valign="top" nowrap width="101">
<h5 align="right">-$21,147</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Annual Taxable Loss</h5>
</td>
<td valign="top" nowrap width="101">
<h5 align="right">-$6,653</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5> </h5>
</td>
<td valign="top" nowrap width="101">
<h5> </h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Annual Principal Repayments</h5>
</td>
<td valign="top" nowrap width="101">
<h5 align="right">-$8,505</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Annual Cash Loss</h5>
</td>
<td valign="top" nowrap width="101">
<h5 align="right">-$15,158</h5>
</td>
</tr>
</tbody></table>
<p><strong style="line-height: 1.3em;">Case study – mortgage rate 5.6%</strong></p>
<p>Say the interest rate was 0.5 percentage points higher at 5.6%, while rent and other expenses on the property remain the same.</p>
<p>Repayments on the loan are $2,595 a month, or $31,140 over the year. The amount of interest paid increases to $23,235 for the year. However, the amount that is repaid off the principal reduces to $7,905.</p>
<table style="width: 460px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" nowrap width="217">
<h5>Mortgage Repayments</h5>
</td>
<td valign="top" nowrap width="95">
<h5> </h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Monthly Repayments</h5>
</td>
<td valign="top" nowrap width="95">
<h5>$2,595</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Yearly Repayments*</h5>
</td>
<td valign="top" nowrap width="95">
<h5>$31,140</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5> </h5>
</td>
<td valign="top" nowrap width="95">
<h5> </h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>*Comprised of :</h5>
</td>
<td valign="top" nowrap width="95">
<h5> </h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Annual interest repayments</h5>
</td>
<td valign="top" nowrap width="95">
<h5>$23,235</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Annual principal repayments</h5>
</td>
<td valign="top" nowrap width="95">
<h5>$7,905</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5> </h5>
</td>
<td valign="top" nowrap width="95">
<h5> </h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Total cost of loan</h5>
</td>
<td valign="top" nowrap width="95">
<h5>$778,503</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Total interest paid</h5>
</td>
<td valign="top" nowrap width="95">
<h5>$360,003</h5>
</td>
</tr>
</tbody></table>
<p><span style="line-height: 1.3em;">The annual taxable loss on the property increases to $8,742. The total cash loss is $16,647 and there is still $410,595 outstanding on the mortgage.</span></p>
<table style="width: 460px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" nowrap width="217">
<h5>Taxable profit/loss</h5>
</td>
<td valign="top" nowrap width="101">
<h5> </h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Estimated Annual Income</h5>
</td>
<td valign="top" nowrap width="101">
<h5 align="right">$20,800</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Estimated Annual Expenses</h5>
</td>
<td valign="top" nowrap width="101">
<h5 align="right">-$6,306</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Annual Interest Repayments</h5>
</td>
<td valign="top" nowrap width="101">
<h5 align="right">-$23,235</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Annual Taxable Loss</h5>
</td>
<td valign="top" nowrap width="101">
<h5 align="right">-$8,742</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5> </h5>
</td>
<td valign="top" nowrap width="101">
<h5> </h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Annual Principal Repayments</h5>
</td>
<td valign="top" nowrap width="101">
<h5 align="right">-$7,905</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Annual Cash Loss</h5>
</td>
<td valign="top" nowrap width="101">
<h5 align="right">-$16,647</h5>
</td>
</tr>
</tbody></table>
<p><strong style="line-height: 1.3em;">Case study – mortgage rate 6.1%</strong></p>
<p>If the mortgage interest rate was higher again, at 6.1%, repayments on the loan would go up to $32,664 for the year.</p>
<table style="width: 460px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" nowrap width="217">
<h5>Mortgage Repayments</h5>
</td>
<td valign="top" nowrap width="95">
<h5> </h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Monthly Repayments</h5>
</td>
<td valign="top" nowrap width="95">
<h5>$2,722</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Yearly Repayments*</h5>
</td>
<td valign="top" nowrap width="95">
<h5>$32,664</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5> </h5>
</td>
<td valign="top" nowrap width="95">
<h5> </h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>*Comprised of :</h5>
</td>
<td valign="top" nowrap width="95">
<h5> </h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Annual interest repayments</h5>
</td>
<td valign="top" nowrap width="95">
<h5>$25,326</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Annual principal repayments</h5>
</td>
<td valign="top" nowrap width="95">
<h5>$7,339</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5> </h5>
</td>
<td valign="top" nowrap width="95">
<h5> </h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Total cost of loan</h5>
</td>
<td valign="top" nowrap width="95">
<h5>$816,612</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Total interest paid</h5>
</td>
<td valign="top" nowrap width="95">
<h5>$398,112</h5>
</td>
</tr>
</tbody></table>
<p><span style="line-height: 1.3em;">The taxable loss for the year would be $10,832 and the cash loss, after principal repayments would be $18,171. Just $7,339 would have been paid off the principal, leaving a $411,161 outstanding on the mortgage.</span></p>
<table style="width: 460px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" nowrap width="217">
<h5>Taxable profit/loss</h5>
</td>
<td valign="top" nowrap width="101">
<h5> </h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Estimated Annual Income</h5>
</td>
<td valign="top" nowrap width="101">
<h5 align="right">$20,800</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Estimated Annual Expenses</h5>
</td>
<td valign="top" nowrap width="101">
<h5 align="right">-$6,306</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Annual Interest Repayments</h5>
</td>
<td valign="top" nowrap width="101">
<h5 align="right">-$25,326</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Annual Taxable Loss</h5>
</td>
<td valign="top" nowrap width="101">
<h5 align="right">-$10,832</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5> </h5>
</td>
<td valign="top" nowrap width="101">
<h5> </h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Annual Principal Repayments</h5>
</td>
<td valign="top" nowrap width="101">
<h5 align="right">-$7,339</h5>
</td>
</tr>
<tr>
<td valign="top" nowrap width="217">
<h5>Annual Cash Loss</h5>
</td>
<td valign="top" nowrap width="101">
<h5 align="right">-$18,171</h5>
</td>
</tr>
</tbody></table>
<p><strong style="line-height: 1.3em;">After tax comparison</strong></p>
<p>In the first example, the investor made a taxable loss of $6,653 and ended the year with $409,995 outstanding on the mortgage.</p>
<p>Let’s assume the investor’s annual taxable income (from employment and other sources) is $100,000. In the example where interest rates were 5.1%, the taxable loss on the property reduces the investor’s taxable income to $93,347 for the year, cutting the investor’s tax liability for the year by $2,462 and leaving them with an after-tax income of $70,862.</p>
<p>That means the after-tax cost of the investment (not including the principal repaid) is $4,191 and the total after-tax cash loss including the principal repaid is $12,696.</p>
<p>In the second example, the investment’s after-tax cost is $5,507 and the total after-tax cash loss is $13,412. The investor is $1,316 worse off at the end of the year in this case than if the interest rate was 0.5 percentage points lower.</p>
<p>In the third example, the after-tax cost is $6,824 and the cash loss after tax is $14,163. The investor is $2,633 worse off at the end of the year than when the interest rate was 5.1%.</p>
<p>Interest rate changes have a real impact on the returns from investment properties. To recoup higher interest charges, investors have a choice to increase rent, cut costs elsewhere (which might not be practical or possible), or cross their fingers for greater capital gains to compensate.</p>
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Negative gearing disguises short-term impact of rate changes on investors

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<p>Australians millionaires hold over 40% of their wealth in property, more than double the global average, the <em>18th annual World Wealth Report</em> has found.</p>
<p>The report by Cap Gemini revealed there were 218,700 people in Australia who had US$1 million or more to invest (excluding their family home). That was up by 5.8% from 206,600 people a year earlier.</p>
<p>Cap Gemini wealth management specialist Dorus van den Bizenbos told <em>Property Observer </em>that Australian millionaires had always held around 35 to 40% of their wealth in real estate over the time since the first survey was conducted.</p>
<p>“The Australian dream is to own your home and people invest a lot in real estate because the market has been going up for years. It’s understandable and tangible and people want to own property,” van den Bizenbos said.</p>
<p>Real estate values across Australia rose 6.5% from 2013 to 2014, Cap Gemini’s analysis found. Van den Bizenbos said rising property prices were one of three contributors to the increase in the number of Australian millionaires during the year.</p>
<p>A strong economy, with GDP growth of 2.4% in Australia compared with the global average of 2.2%, and Australian share market gains of 15% also helped boost the ranks of Australian millionaires.</p>
<p>Rich people around the world held an average of 18.7% of their wealth in real estate, the 2014 <em>World Wealth Report</em> found. That was down from 20% in the 2013 report, with the shift going towards fixed income and alternative assets such as hedge funds, structured products and private equity funds.</p>
<p>“What we’ve seen is that people have started to spread out their wealth more,” van den Bizenbos said. “They retreated to cash in times of uncertainty and now they have got more confidence they are starting to invest more in alternatives.”</p>
<p>The report found there were 13.73 million high net worth individuals (people who had more than US$1 million to invest) in the 2014 report, almost two million more than in the previous year. That represented a 15% growth rate, the second largest increase since 2000.</p>
<p>North America had the largest number of high net worth individuals, while the Asia Pacific region was second and quickly catching up. </p>
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Aussie millionaires hold twice as much property as their global counterparts

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<p>The NSW real estate industry is in conflict over proposals to deregulate the state’s commercial property services sector.</p>
<p>The proposals form part of draft regulations put forward to replace the Property, Stock and Business Agents Regulation 2003, which will lapse on 1 September, 2014.</p>
<p>The Shopping Centre Council of Australia is calling for the removal of licensing requirements for agents dealing with large commercial properties.</p>
<p>“From our point of view it’s classic red tape. It’s dumb, counterproductive regulation,” SCCA deputy director Angus Nardi told <em>Property Observer</em>.</p>
<p>The SCCA argued in its response to consultation on the proposals that the regulations aimed to protect consumers in residential property transactions and were largely irrelevant to major commercial property owners that were big enough to protect their own interests without regulatory assistance.</p>
<p>Nardi said ‘consumers’ in the case of large commercial property transactions were professional organisations such as Westfield Group, AMP Capital Shopping Centres, and Real Estate Investment Trusts rather than individual consumers or small businesses.</p>
<p>But Real Estate Institute of NSW president Malcolm Gunning said removing the licensing requirements would hurt tenants in major shopping centres.</p>
<p>“It’s taking away that level of accountability and responsibility. The Shopping Centre Council’s argument is that it’s not required because [the consumers] are sophisticated but we question that level of sophistication ... Tenants will be more exposed to the dealings of major shopping centres,” Gunning said.</p>
<p>He added it would be difficult to determine where the line should be drawn on which agents needed to be licensed and which did not.</p>
<p>The SCCA proposed that agents should not have to have a license if they were dealing with commercial property worth more than $10 million or that was more than 10,000 square metres in floor space. Agents that were related to the property owner should also not have to be licensed, it argued.</p>
<p>Such exemptions would save an estimated $4 million a year in compliance costs, but affect only 629 commercial buildings in NSW, the SCCA said.</p>
<p>Nardi argued that if licensing requirements for commercial agents were cut, tenants would still be protected by the Retail Leases Act, while owners of small commercial properties would be covered by the new Property, Stock and Business Agents Regulation as they would not be considered sophisticated investors.</p>
<p>But Gunning said some areas fell outside the remit of the Retail Tenancies Act, such as holding deposits, and tenancies that applied to offices within retail shopping centre.</p>
<p>“The deregulation of commercial property agency work would be going further in the wrong direction and would be counterproductive for consumer protection in the commercial space,” the REINSW said in its submission to the consultation.</p>
<p>REINSW said existing licensing requirements were “grossly inadequate” and should be remodelled based on the stricter regimes that applied in the Northern Territory, South Australia and Tasmania.</p>
<p>The SCCA said Queensland’s regulations already exempted large commercial properties and Victoria’s government has agreed in principle to a similar system, and that NSW should follow the lead of those states.</p>
<p>NSW Fair Trading plans for the updated regulation to commence on 1 September, 2014. Consultation on the Regulatory Impact Statement closed in mid June.</p>
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Industry conflicted over NSW's proposed commercial property services deregulation

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<p>Banks earned $1.226 billion in fees on home mortgages in 2013, up slightly from the year before, a survey by the Reserve Bank of Australia has found.</p>
<p>Fee income from home lending increased by 0.4% over the year, despite a drop in exception fees (such as fees for late payment), charges for breaking fixed-rate loans, and service fees from securitised loans.</p>
<p>The Reserve Bank’s annual bank fee survey for 2013, released last week, included 16 financial institutions, which together accounted for about 90% of total Australian banking sector assets.</p>
<p>The study found that between 2007 and 2012, fees on home loans increased by an average of 2.5% a year, the fastest growth rate for fees on any category of bank product sold to households.</p>
<p>Account-servicing fee income from housing loans increased during 2013 due mainly to a rise in housing loan approvals.</p>
<p>Housing finance approvals for owner occupation rose by 1% from November 2013 to December 2013 in trend terms, according to Australian Bureau of Statistics data. Seasonally adjusted, the number of home loan approvals rose by an average of 1.44% a month over 2013, ABS data shows.</p>
<p>The RBA study noted that growth in housing loan approvals was usually associated with higher establishment fee income, but some banks had been waiving those fees for some customers.</p>
<p>Exception fee income from housing loans to households fell by 16.6% to $30 million in 2013. The RBA noted that exception fee income had declined by more than 50% since 2009.</p>
<p>The major banks reported low levels of bad debts during the recent reporting season and many customers were ahead on their repayments.</p>
<p>Overall, banks earned $4.136 billion in fees from households, an increase of 2.3%, following three years of declining fee growth. Most of the increase was driven by higher fee income from credit cards and personal loans.</p>
<p>From businesses and households combined, banks earned around $11.6 billion in fees in 2013. </p>
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Banks earned more than $1.2 billion from home mortgage fees last year

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<p>Larry Kestelman (pictured right), a property developer with more than 20 years experience, heads LK Property Group, among other real estate businesses.<img src="/images/2014/06/24/Larry-BW.jpg" alt="" style="float: right;"></p>
<p>Kestelman founded telecommunications company Dodo, which was sold to M2 Telecommunications Group for $203.9 million in 2013. He remains a major shareholder.</p>
<p>He is also director of Oxygen Ventures, which invests in and develops up-and-coming businesses.</p>
<p>Kestelman talked to <em>Property Observer</em> about the outlook for the Melbourne residential property market, an upcoming product launch and the way he runs his businesses.</p>
<p><strong>What are your views on the outlook for the Melbourne property market?</strong></p>
<p>The market is very good. We’re doing well with sales. We produce quality product and there’s demand for that.</p>
<p>We are reasonably bullish about the Melbourne property market.</p>
<p>We don’t concentrate on only one suburb. [Our properties] are selling well and getting interest from local and overseas buyers.</p>
<p>The overseas market is still strong. Australia is an attractive place to live, work and study.</p>
<p>Locally, we’re definitely in a good moment in time with low interest rates. We’ve got a lack of supply and there is a shortage of quality development sites. I look at what’s in the pipeline and it’s hard to find quality sites.</p>
<p><strong>Tell me about your upcoming launch.</strong></p>
<p>It’s a joint event between LK Property Group and Qantas Frequent Flyer on June 24. We first initiated our affiliation with Qantas in 2013.</p>
<p>We are the exclusive partner for Qantas for property in Melbourne and we develop a number of properties around town and market them to Frequent Flyer members.</p>
<p>About 600 members of the Frequent Flyers program have been invited to attend the invitation-only launch event in Melbourne’s Docklands.</p>
<p>I’ve been in property for 20 years and over the last four to five years there have been different gimmicks but the only true loyalty program that works is the Qantas Frequent Flyer program. It’s a way to reward clients and keep them coming back.</p>
<p><strong>LK Property Group uses mainly in-house design, trade, marketing and sales staff. What is the advantage of this strategy?</strong></p>
<p>To achieve a consistent result over a long period of time it’s hard to get different contractors to do the work: as their interest wanes, you get a different result. If you build the processes and people internally, you get a consistent result.</p>
<p>The property industry in the past has been used to using external people but I intend to be here still for a while. We intend to do the hard yards now to get consistent results in the long term.</p>
<p>We invest in all the people we work with, both inside and out of the business. A happy customer is one who will come back. We have a concierge service for all of our purchasers. We hold their hands through the entire process.</p>
<p><strong>How do you choose the external business partners that you do work with?</strong></p>
<p>First of all I have to meet the people and get comfortable with them. For that, history speaks a lot. I would want to talk to other clients they have, understand what experience they have and make sure they are of the right calibre. To me, company name is irrelevant.</p>
<p><strong>You run other ventures. Tell me about them.</strong></p>
<p>I’m a business person. I’m in the business of setting up businesses, processes and people to make businesses operate. That’s what I do. Property is the same thing.</p>
<p>The Big Pitch is [one current project through Oxygen Ventures that aims] to find the brightest people with the best ideas and then helping them succeed. We are hoping to attract the best of the best with the form of people and ideas and we can help them with funding and services they need.</p>
<p>In the [LK Group of companies] we have legal, financial, call centres, we have a complete incubator service to help [start-up businesses] grow quickly.</p>
<p>The Big Pitch received more than 400 responses. I encourage online retail and technology companies mainly. Those are my areas of expertise. I love businesses that use underutilised resources where we can match supply with demand.</p>
<p><strong>How do you apply technology in your property businesses?</strong></p>
<p>From a technology point of view, for property it’s more about the data and the way we market to customers. [Working with] Qantas is an example of working in a scientific way, analysing what kind of people will be interested in the properties and marketing to them.</p>
<p id="yui_3_11_0_3_1403573221096_820"><em><span class="character-name-holder">Picture courtesy of Vincent Q/Flickr/<a href="https://creativecommons.org/licenses/by/2.0/" target="_blank">Creative Commons</a>.</span></em></p>
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Q&A: Property developer Larry Kestelman on the outlook for the Melbourne property market

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<p>The Australian Taxation Office has raised concerns that self-managed superannuation funds have been incorrectly reporting the details of limited recourse borrowing arrangements used to buy property.</p>
<p>The warning comes as the ATO prepares to take up new and more flexible powers to deal with SMSF trustees who fail to follow the rules.</p>
<p>From 1 July, the ATO will be able to impose a wider range of penalties on funds that breach superannuation law. Under the new penalty regime, trustees may be personally liable for penalties of up to $10,200 per breach. They may be forced to rectify the problem and complete an SMSF education course.</p>
<p>SMSF trustees are required to lodge accurate annual returns each year to the ATO detailing their fund’s assets, liabilities and income. Penalties can be applied to those that fail to lodge their annual returns on time, or incorrectly report the details of their fund.</p>
<p>The ATO said it had noticed some trustees had misreported details of limited recourse borrowing arrangements, which are used to borrow to buy property through an SMSF, in their funds’ annual returns for 2013.</p>
<p>To help trustees understand the requirements, the ATO has released a detailed guide describing how to complete each section of the annual return.</p>
<p>The ATO has recently released the 2014 version of the annual return for SMSFs. It has also clarified some of the rules that apply to the borrowing arrangements and assets they are used to acquire.</p>
<p>Strict conditions apply to borrowing money through limited recourse borrowing arrangements. There can be civil or criminal consequences for fund trustees that fail to follow the rules.</p>
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ATO concerned that SMSFs are incorrectly reporting borrowing details relating to property purchases

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<p>A key indicator of expectations for the housing market has revealed consumer attitudes towards buying a property improved from May to June, reversing a six-month trend of declining sentiment.</p>
<p>The ‘Time to buy a dwelling’ component of the Westpac-Melbourne Institute Consumer Sentiment Index rose by 11.4% from May to June, indicating more people thought it was a good time to get into the market.</p>
<p>The rise was the first time the index had improved since November 2013.</p>
<p>Westpac senior economist Matthew Hassan said the rebound was a positive sign but the improvement was tempered by a significant drop in expectations for house prices.</p>
<p>House price expectations fell 11.1% in June, compounding a 9.8% drop in May.</p>
<p>“While those expecting house prices to rise over the next 12 months still outnumbered those expecting declines, nearly a third of respondents now expect prices to be unchanged,” Hassan said.</p>
<p>The ‘Time to buy a dwelling’ index, with a reading of 121.2 in June, is still lower than the long-term average of 123.4. The index dipped below the long term average value in February 2014 for the first time since August 2012.</p>
<p>Broader sentiment stabilised after a sharp fall following the federal budget in May, with about three quarters of people surveyed recalling bad news on the budget and taxation, the highest proportion since the survey was started in the mid-1970s.</p>
<p>At 93.2, the general consumer sentiment index was down 8.8% compared with the same time last year, and well below the neutral 100 point level.</p>
<p>Across all measures of sentiment, including those concerning current and future family finances and the economy, the index was lower than a year previously.</p>
<p>Hassan said based on the weakness of the index, Westpac’s view was that the case for higher interest rates would not be strong enough until the middle of 2015 at the earliest. </p>
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Consumer sentiment reverses towards buying property: Westpac-Melbourne Institute index

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<p>Owners of strata properties in North Queensland have been hit by insurance premium increases of up to 200% over the past five years and the industry is calling for action to alleviate the strain.</p>
<p>Strata Community Australia Queensland branch president Simon Barnard, who is also a principal of Hartley's Body Corporate Management, said skyrocketing strata insurance premiums were affecting owners’ corporations across North Queensland.</p>
<p>Barnard said under state laws, strata buildings must be insured to full replacement value.</p>
<p>“There’s no option to not insure or to self-insure and that put enormous pressure on owners and property values. In some cases the debts became worth more than the properties,” he said.</p>
<p>Between 2007 and 2012, strata premiums in North Queensland rose by around 200% as strata insurance underwriters realised they had previously under-priced their policies in the wake of Cyclone Yasi.</p>
<p>Barnard said there was currently no mechanism for insurers to use to differentiate risk between individual properties.</p>
<p>“If you’ve got a brand new building that’s cyclone rated next to an old one that’s not, they are currently paying the same insurance,” he said.</p>
<p>North Queensland presents a greater risk to insurers than other regions as it is more prone to severe weather events. An Australian Government Actuary study in 2012 found that strata insurers in the region spent $130 on claims, commissions and operating expenses for every $100 of premium they earned.</p>
<p>At present only two insurers – IAG and Suncorp – offer cover to new strata buildings in North Queensland. Other strata insurers have exited the North Queensland market, or limited their exposure by only offering renewals.</p>
<p>Barnard said more competition would help to lower premiums, as would measures to allow insurers to better assess the risks of individual strata properties.</p>
<p>The federal government released a discussion paper examining the high cost of home and strata title insurance in North Queensland on 9 May and is calling for submissions by 2 June.</p>
<p>Minister for Finance Mathias Cormann noted in the discussion paper that homeowners in North Queensland were paying premiums around two and a half times higher than Queenslanders who live in the state’s south.</p>
<p>The paper also noted that home contents insurance prices across Australia had risen at twice the rate of the consumer price index since 2009, while home buildings insurance prices had risen at six times CPI.</p>
<p>Properties in North Queensland were worst affected with average premiums for combined home and contents policies in that region around two and a half times those in Queensland’s southern cities.</p>
<p>Average premiums for home and contents insurance for a property with no or little flood risk for a sum insured of about $300,000 for building and $80,000 for contents could range from $3,000 to $6,000 a year.</p>
<p>Adding to the costs for owners’ corporations, the Queensland state government has recently lifted stamp duty on strata insurance products to 9% from 7.5%.</p>
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North Queensland strata property owners slugged with massive insurance premium increases

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<p>The number of people running businesses in the construction industry rose slightly in the year to February 2014, following a dramatic drop in the previous year.</p>
<p>Around the country, 242,500 people ran construction industry businesses in February 2014, 0.5% more than at the same time last year, according to the Bankwest Business Trends Report, which analysed Australian Bureau of Statistics labour force data.</p>
<p>The increase coincided with a rise in dwelling approvals, with the Australian Bureau of Statistics reporting a 23.2% increase in dwelling approvals over the year to February 2014. However, approval rates have slowed since then with the latest ABS data revealing a 5.6% drop in approvals from March to April, following a 3.5% decline between February and March.</p>
<p>The increase in the number of construction sector businesses came as a result of growth in Victoria and Queensland, the Bankwest Report found.</p>
<p>There was a 9.8% increase in the number of workers running construction industry businesses in Victoria over the year.</p>
<p>“Victoria is a much sought-after place to live, with trends showing that more Australians are moving into the state every year. That has huge implications for development which has helped deliver significant growth in the construction industry,” said Bankwest executive general manager of business banking Sinead Taylor.</p>
<p>In Queensland, 49,600 people ran their own construction industry business in February 2014, up 1.5% compared with the same time in 2013. This was still 23.5% lower than five years ago.</p>
<p>The establishment of 1200 new construction businesses in the year to February 2014, did little to make up for the 21,250 drop in the number of construction sector businesses over the previous year.</p>
<p>While the construction industry still accounts for the largest number of business owners around the country, with 23.9% of workers who run their own businesses engaged in that sector, numbers are down by 12.4% over the past five years and 2.8% over the past decade.</p>
<p>The number of construction industry business owners in Western Australia fell by 4% in the year to February 2014. In NSW, there were 2.8% fewer business owners in the sector, while in South Australia there was a 1.4% decline in construction sector businesses.</p>
<p>More young people established construction sector businesses in the year to February 2014 with an additional 2,280 workers aged 15-24 running their own construction businesses. That represented an increase of 18.1% compared with the year before.</p>
<p>Across all sectors, 1,160,300 people ran their own business in February 2014, either as an own account worker or an employer. That was down by 6% compared with five years earlier, the Bankwest Report showed.</p>
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Construction businesses starting to multiply after dramatic drops in 2013

<p><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.</p>

<p>VIP buyers are now being engaged, with a full public sales launch coming later this year.</p>

<p>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;</p>

<p>[smartcode_project:default project_id=150489 project_image_fid=371113]</p>

<p>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;</p>

<p>CPG Chairman and CEO Don O’Rorke said the project had been envisioned as a future Brisbane icon.&nbsp;</p>

<p>“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;</p>

<p>[smartcode_project:default project_id=150489 project_image_fid=371114]</p>

<p>“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;</p>

<p>The approved development will comprise 227 apartments across a 25-storey tower alongside a boutique six-storey riverfront building of just 12 residences.&nbsp;</p>

<p>Construction is scheduled to commence in September 2026.</p>

<p>[smartcode_project_cta:default project_id=150489]</p>


Joel Robinson

CPG unveils Castile Newstead ahead of upcoming sales launch

<p>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.</p>

<p>Australia Post’s Parcel Lockers emerged as one of the more practical responses to that changing consumer behaviour.</p>

<p>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.</p>

<p>The appeal is relatively straightforward: flexibility.</p>

<p>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.</p>

<p>For apartment residents in particular, the system has become increasingly valuable.</p>

<p>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.</p>

<p>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.</p>

<p>That security aspect is one of the key reasons the Australia Post Parcel Locker network has grown so rapidly.</p>

<p>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.</p>

<p>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.</p>

<p>Beyond receiving parcels, the system has increasingly become integrated into the broader eCommerce ecosystem.</p>

<p>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.</p>

<p>The timing of that expansion aligns with broader changes in Australian shopping behaviour.</p>

<p>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.</p>

<p>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.</p>

<p>Parcel Locker systems have increasingly been viewed as part of the long-term solution.</p>

<p>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.</p>

<p>Now, however, the convenience factor is driving mainstream usage.</p>

<p>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.</p>

<p>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.</p>

<p>The Parcel Locker model is also beginning to influence property development itself.</p>

<p>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.</p>

<p>For developers, parcel management is increasingly viewed as part of the broader resident amenity offering, alongside gyms, wellness spaces and communal work areas.</p>

<p>That reflects a wider evolution in how residential buildings are designed.</p>

<p>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.</p>

<p>Australia Post’s Parcel Locker network sits at the centre of that behavioural shift.</p>

<p>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.</p>

<p>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.</p>


How Australia Post Parcel Lockers changed parcel delivery convenience in Australia

<p>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.</p>

<p>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;</p>

<p>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;</p>

<p>“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;</p>

<p>[smartcode_project:default project_id=110291 project_image_fid=302785]</p>

<h2>Affordable product leads, premium demand remains resilient</h2>

<p>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;</p>

<p>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;</p>

<p>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.</p>

<p>Jual (Shenton Park, Celsius Property) also posted a strong quarter with 28 sales, reaching 39% sold in one quarter.</p>

<p>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;</p>

<p>[smartcode_project:default project_id=148957 project_image_fid=364102]</p>

<h2>Prices underpinned by costs, and the delivery risk is growing</h2>

<p>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.</p>

<p>David Cresp said a growing challenge for private Build‑to‑Sell developers is simply securing a builder in the current environment.</p>

<p>“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;</p>

<p>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.</p>

<p>[smartcode_project:default project_id=108869 project_image_fid=317905]</p>

<h2>Supply: improving later, but still constrained, and Perth lags eastern benchmarks</h2>

<p>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;</p>

<p>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;</p>

<p>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”.</p>

<p>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;</p>


Perth apartment sales hit strongest pace since late 2021 as builder capacity tightens

<p><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.</p>

<p>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.</p>

<p>Sammut Director Julian Sammut said the group had been actively searching Brisbane for several years before identifying Toowong as the right fit.</p>

<p>“Brisbane was the right step for Sammut,” Sammut said.</p>

<p>“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.”</p>

<p><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" /></p>

<p>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.</p>

<p>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.</p>

<p>“We are DA approved now which is very exciting,” Sammut said.</p>

<p>“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.”</p>

<p><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" /></p>

<p>Bureau^proberts said the design responds to Toowong’s evolving urban character, balancing contemporary apartment living with the area’s established residential identity.</p>

<p>“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.</p>

<p>The architecture practice said the project’s form was shaped by its riverfront setting, flood considerations, neighbouring building scales, and view corridors.</p>

<p>“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.”</p>

<p>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.</p>

<p>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.</p>


Sammut secures approval for debut Brisbane apartment development in Toowong

<p>Developer Lanevick is heading back into Sydney’s apartment market after focusing more heavily on the luxury townhouse and terrace sector in recent years.</p>

<p>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.</p>

<p>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.</p>

<p>“Traditionally it’s been difficult for people in that market to downsize because there just hasn’t been the right product available,” Maroun said.</p>

<p>“We’re targeting buyers who might have 30 to 40 per cent of their house value sitting in the bank after downsizing.</p>

<p>“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.”</p>

<p>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.</p>

<p>“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.”</p>

<p>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.</p>

<p>“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.”</p>

<p>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.</p>

<p>“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.</p>

<p>Maroun said Lanevick saw a first-mover advantage within the precinct as planning controls continue to evolve to accommodate greater housing density.</p>

<p>“We think there’s a real opportunity there that hasn’t really been serviced properly yet,” he said.</p>

<p>“There’s going to be a broader evolution of the whole Gladesville village precinct over time, particularly with more activation and mixed-use outcomes.”</p>

<p>The Venus Street proposal will include a commercial and retail component at ground level designed to contribute to that evolving streetscape activation.</p>

<p>“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.</p>

<p>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.</p>

<p>&nbsp;</p>


Zoe Fielding

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