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Buildings with high Green Star ratings are in demand in the commercial sector, but residential buyers have traditionally failed to see the value in properties with strong sustainability credentials. That’s something Investa Land general manager Victoria Paul O’Brien would like to change.
“Sustainability is a nice word but we are saying let’s get information out to people so they understand what it really is,” O’Brien told Property Observer.
O’Brien believes the residential property development industry has done a poor job of communicating the benefits of sustainable development to consumers.
Investa Land is part of the Investa Property Group, which also has office and funds management divisions.
In the office part of its business, Investa takes office buildings with low Green Star ratings and upgrades them to six star ratings by modifying various characteristics of the building such as design features and energy usage. O’Brien says similar principles can be applied in residential property sector.
Investa Land is working with Simonds Homes at Diggers Rest in Melbourne’s western suburbs to produce a 7-star rated house. The home will be used to demonstrate how sustainable principles can be applied to benefit home buyers through energy savings and minimising water usage.
Consumers will be able to see how much the additions would cost and what the payback periods would be for these features and initiatives.
O’Brien says the cost of adding sustainable features to one of the homes is typically between $5,000 and $9,000, depending on factors such as the orientation of the house.
He admits that first home buyers with tight budgets are unlikely to buy sustainable homes, but adds that second home buyers will be interested, especially when they learn about the payback periods.
O’Brien expects home owners to be able to recoup the upfront costs within around five or six years.
The costs of solar power installations have halved over the past few years, making it a more viable option, he says. The high price of electricity makes it more attractive for consumers to minimise or avoid power bills where possible.
“We are making sure that we get the costs out to people and that the payback makes sense. I think we have the ability to say you should take this up as an extra cost if you can afford it ... After five years you’re not going to get [an electricity] bill,” O’Brien says.
After the 7-star home has been launched later this year, Investa Land plans to work with a builder to develop an 8-star Green Star rated house. Work is expected to start on the 8-star home in 2015. The aim is that the sustainable features would add little more than $10,000 to the cost of the basic house.
Building products supplier CSR opened 8-star home at Schofields in Western Sydney in November 2012. That property is used as research and development facility by universities, the CSIRO, as well as CSR.
It includes a weather station on the roof and has more than 140 sensors that monitor heat flow, internal temperature and humidity conditions, ground temperature and moisture levels, and energy usage of lighting, heating and cooling equipment.
When selling properties to consumers, O’Brien says it’s not enough for sustainable housing to be efficient, environmentally friendly and cost effective. The homes and estates need to be desirable places to live.
“We are selling [home buyers] the dream that this is a really good place to live. For us, making the land visually attractive upfront helps you sell the estate,” O’Brien says.
Access to transport, jobs, parkland and amenities like schools, football fields, tennis courts and shops all feed into the appeal of an estate. Community factors, decided at a master planning level, also make a big difference to the sustainability of the estate.
Investa Land is partnering with local nurseries near its development at Diggers Rest and has negotiated for residents to get wholesale prices on plants. O’Brien aims to have a community garden up and running at the site in future.
Diggers Rest already receives Class B recycled water from the Sunbury Recycled Water Plant, which can be used to irrigate public and agricultural land, although not in residential homes.
Utility provider, Western Water, is installing infrastructure in preparation for delivering Class A recycled water for purposes such as flushing toilets, watering the garden and washing cars in future.
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Residential buyers failing to see the benefits of going green

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Land developers in Sydney have been producing large numbers of new lots and charging more for land, but data from a specialist residential property researcher shows sales are now declining and could fall rapidly if pricing is not reduced.
Sales activity volumes in Sydney fell by 7% in the March quarter compared with the December quarter, Research4’s National Land Survey Program found. It was the first fall in activity levels since December 2012.
“We think the Sydney [land] market is going to moderate ... Where it goes from here will depend on how [developers] manage pricing,” Research4 director of strategic research Colin Keane told Property Observer.
“It’s either going to stabilise and fall away quietly, or drop quickly if they keep pushing prices up.”
On average across the Sydney market median lot pricing rose by 1.8% in the March quarter, Research4’s data shows.
In the city’s west and south west, median prices rose by 17% during the quarter.
Keane said the sizable jump in prices in those regions was mainly due to price rises at a development by Landcom and Greenfields Development Company at Oran Park, and at Stockland’s Willowdale.
Research4’s figures show median lot prices in Sydney’s North West rose by 7% in the March quarter, while median lot prices in the Lower Hunter fell by around 4%.
The median price for land across the Sydney region was $283,000 for a 516 square metre block, Keane said.
“We think the pricing is problematic in the Sydney market now,” he said. “I don’t think developers can push prices any further. The might have to take a hit and reduce their prices over the coming months.”
Land prices last fell in Sydney in September 2013, according to Research4’s data.
While prices have been rising, lot sizes have been falling so cost per square metre is at a record high, Keane said. In 2010, the median lot size was 600 square metres. In 2012 it was 550 square metres and now is it around 510 square metres.
Keane said land developers may not be aware that a problem was emerging, as the market was still good and customer cancellation rates were still very low.
“The market is still really good but I think now is a good time to start thinking about the next 12 months and the next 12 months is going to be tighter in terms of demand and [customers] are going to be looking at saving in pricing,” he said.
The Sydney land market has historically suffered from significant supply shortages, but Keane said since June 2013 the land market had been fully meeting underlying demand and exceeding demand in some locations.
“It used to be an issue five years ago but with the South West market coming online we have seen lots of land coming on the market,” he said.
Demand would also fall as net overseas migration into NSW and visa applications had moderated, while the number of loans issued to second home buyers was falling, Keane said.
Australian Bureau of Statistics housing finance figures for the month of March will be released on Tuesday May 13, but the February result showed the number of finance commitments for the purchase of new dwellings around Australia fell by 5% in seasonally adjusted terms compared with January.
On approvals for new dwellings, Housing Industry Association chief economist, Harley Dale said: “Building approvals for the month of March 2014 were consistent with healthy growth in new home building activity this year, although the approvals cycle itself may well have peaked.”
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Sydney land sales could rapidly decline if prices not reduced warns researcher

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Property and facilities management teams need to work collaboratively with information technology and human resources departments to create the most effective workplaces, according to a supplier of workplace technology.
Each department played a role in understanding how employees who work in a building use the space, in changing the environment to improve utilisation and in measuring responses to modifications, POMT director of strategy and development Jeremy Pollak said.
“It’s about finding what the right solution is for the different place-types in the organisation,” Pollak said.
He said there was no one-size-fits-all solution for every organisation as people with different jobs required different features in their workplace.
People who work as software engineers, for example, spend a lot of time at a desk, while business managers might spend most of their time in meetings.
Software development company Atlassian has been working with POMT on its designing and managing its offices.
Atlassian global head of real estate Brent Harman said the company had been reviewing its workplace design, taking cues from the way it develops software through iterative, regular, small updates.
“We are getting comfortable in our workplace and experience team that we are not going to be able to design an end state [for the offices]. We have to be comfortable in an environment of constant change,” Harman said.
Support from information technology departments was needed to ensure systems were implemented correctly, while human resources teams had to be involved in helping staff members adapt to change, Pollak said.
“In all projects we are trying to get people to feel comfortable with the technology. That starts with it being integrated within the design. It needs to be easy to use,” he said.
Demand is growing for room booking and management systems and space utilisation data as companies become increasingly interested in pursuing efficiency and reducing property costs.
Devices such as sensors that indicate when a desk is occupied are being installed in some corporate offices to monitor space usage.
Some companies were requiring staff to swipe a security card when they used a meeting room to indicate how many people attended meetings that had been booked into particular rooms.
These technologies supported new work methods such as activity based working and agile work practices, although they could also be used in more traditional work environments, Pollak said. 
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Property and facilities management require collaboration for workplace efficiency

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Mortgage rates below 5% are widely available given the cash rate has remained constant at a record low 2.5%.
Loans.com.au, for example, is offering a mortgage with a comparison rate of just 4.58%, according to RateCity.com.au. BankMecu is offering home loans at 4.7% and State Custodians has a mortgage with a comparison rate of 4.74%.
Such low interest rates, along with slowing property price appreciation, have made housing more affordable at a national level than it has been for more than a decade, according to the March 2014 quarter HIA-CBA Housing Affordability Index, released last week.
The index showed that across the country affordability was at its most favourable level since March 2002.
Affordability improved during the quarter in Sydney, Perth and the Australian Capital Territory, while it remained unchanged in Melbourne. Affordability also improved in regional markets in Western Australia, New South Wales and South Australia.
Properties in Adelaide, Hobart and Brisbane, as well as regional areas of Tasmania, Queensland and Victoria became less affordable, the index showed.
In its affordability calculations, the index uses the Reserve Bank of Australia’s indicator lending rate for the discounted variable rate of all bank loans available to homeowners.
The interest rate used in the March quarter was 5.1%. At that interest rate, monthly repayments on a $350,000 mortgage taken over 25 years are just $2,067, according to RateCity.com.au’s home loan calculator.
While most economists agree there’s little chance of an interest rate rise in the near term, many expect rates to be lifted at some point within the next 18 months.
Variable rate loans are still the most popular type, despite the increasing take up of fixed rate mortgages. This means most people who take out a home loan are fully exposed to fluctuations in lenders’ mortgage rates.
The probability that rates will rise means it is important for borrowers to consider higher interest rates in future when taking out a mortgage.
In the March quarter of 2013, the indicator lending rate was 5.67% and the year before that it was 6.67%.
The same $350,000 mortgage, over 25 years at a 5.67% interest rate would cost $2,185 a month – $118 more than the indicator rate in March 2014.
If rates go back up to 6.67%, as they were two years ago when the official cash rate was 4.25%, monthly repayments would rise to $2401 – $334 a month above current levels.
Over a 25 year period, interest rates will change dramatically. Between mid-1989 and early 1990, banks were charging an average of 17% on standard variable owner-occupied mortgages, according to the Australian Bureau of Statistics. Some commentators say there has been a structural shift in interest rate movements that would prevent rates from reaching those levels again, but higher rates than the existing levels are considered more normal.
As recently as mid-2008, the indicator lending rate for bank discounted variable rates was at 8.95%. Repayments on the $350,000 loan back then would have been $2,925 a month. That’s $858 a month more than the cost at current prevailing interest rates, which could cause significant affordability problems for borrowers who have not planned ahead.
Housing affordability index
<img src="/images/2014/06/02/zoe-june-2-one.jpg" alt="">
* Annualised
Source: HIA-Commonwealth Bank Housing Affordability Index* Annualised
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Thanks to low interest rates, affordability at highest level for over a decade: HIA-CBA index

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One quarter of Australian home owners either over or underestimate the value of their property by more than 20%, a study conducted recently by the Reserve Bank of Australia has found.
On average, home owners appeared to have a good idea of the value of their properties, with half of people estimating the price of their home to within 11% of the actual average market value for their area, the study, <a href="https://www.rba.gov.au/publications/rdp/2014/pdf/rdp2014-04.pdf" target="_blank">Home Price Beliefs in Australia</a>, conducted by Callan Windsor, Gianni La Cava and James Hansen in the RBA’s economic research department, found.
However, the study noted the average results were partly due to offsetting numbers of home owners who overvalued and undervalued their properties.
“At any point in time, some postcodes have self-assessed valuations that appear high relative to market-inferred prices while some postcodes have valuations that appear low relative to market-inferred prices, on average,” the report noted.
Home owners in Sydney and Brisbane tended to overvalue their properties on average, while Melbourne home owners on average undervalued their properties.
Factors such as the owners’ age, the length of time they had lived in their home, and local area characteristics such as regional unemployment rates had the potential to bias the owners’ views on the value of their property, the study showed.
In general, older home owners were more prone to overvaluing their property.
People who had lived in their home for longer were less likely to be overly optimistic about the value of their property, which the study put down to the owners’ knowledge of the market and experience.
People who lived in areas of high unemployment tended to undervalue their homes.
The study also found that home owners who overvalued their property spent more and were more highly leveraged than people who had a more realistic view of their home’s value. Home owners who undervalued their properties spent less and carried lower levels of debt.
The authors said the findings showed beliefs about home values affected household financial decisions.
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Think you know how much your home is worth? Research suggests a lot of Aussies are well off the mark

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The regulator that oversees Australian banks and other deposit-taking institutions has released for consultation a draft guide to sound risk management practices for residential mortgage lending.
The paper comes amid warnings that banks’ bad debts are at “unsustainably low levels” and are likely to rise when interest rates are lifted.
The Australian Prudential Regulation Authority’s (APRA) draft prudential practice guide notes that while Australian lenders have experienced low default and loss rates on home mortgages, the strong economy, low interest rates and rising house prices could lead to complacency among lenders.
Residential mortgages account for about half of the assets of the four major banks, the Reserve Bank of Australia estimated in its submission to the Financial Services Inquiry in March.
Each of the major banks reported low levels of bad debts during the recent reporting season.
Morningstar head of Australian banking research David Ellis said the big four banks had been performing strongly and could continue to do so through to the 2015-16 financial year. However, he warned the banks’ bad debts were at “unsustainably low levels”.
“I can’t see that bad debt level declining much further ... it can only go up from here,” he told Property Observer.
Rising interest rates would be the catalyst for increasing default levels in lenders’ mortgage books, Ellis said.
APRA’s draft guide suggests residential mortgage lenders should have policies in place that address their risk appetite and risk management strategies for loans.
It says they should ensure they can identify and control risks in their residential mortgage lending portfolios. It also sets out suggestions for managing loan origination, including assessing the borrower’s capacity to service the debt, verifying income, living expenses and other debt commitments.
The paper outlines good practices for remunerating mortgage brokers that would allow the lender to end or claw back commissions where there were high levels of delinquency. It also suggested lenders should set up systems to prevent brokers from pursuing loans with inadequate or false verification, marginal serviceability, excessive leverage or unsuitable terms for the borrower.
Ellis said that while rising mortgage rates would increase bad debts to banks, it was unlikely that their businesses would harmed overall.
“Higher interest rates mean a stronger economy and a stronger economy means more banking activity which means more profit [for the banks],” Ellis said. “While bad debts will increase, headline profits will also improve.”
Many borrowers are ahead on their mortgage repayments at present. Commonwealth Bank reported recently that 78% of its loan customers had paid in advance by an average of seven months, while Westpac reported around 70% of its loan customers were ahead of their required payment schedules.
APRA has called for comment on its draft guide by July 21, 2014. 
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Banking regulator suggests mortgage lenders must address risk management strategies

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Developers are putting little effort into building more sustainable residential properties due to a lack of consumer demand, industry leaders have said.
People buying houses in new residential developments typically planned to live in the property for only up to five years, which limited the payback period for environmentally friendly features, CSR managing director Rob Sindel said.
“They say ‘I’ll worry about the environmental stuff when I can afford it’,” he said at a Green Building Council of Australia breakfast meeting last week.
Consumers were more interested in features such as granite bench tops, high-end appliances and automatic garage doors than in energy or water saving measures. Marketing companies that sold newly developed residences promoted lifestyle benefits rather than sustainability, Sindel said.
Developers of multi-unit residences also faced challenges to building more sustainable dwellings, Leighton Properties managing director Mark Gray said.
Like buyers of freestanding homes, people who bought into multi-unit developments were attracted to the precinct’s amenities and community.
Gray said there were opportunities for precinct-based initiatives, where measures were installed to improve the sustainability of the entire multi-residential development, but these could be hampered by service authorities.
“Service authorities are sources of great frustration for developers as they [the service authorities] don’t like change whatsoever. They don’t like individual precincts, they want control over everything,” he said.
Gray said to overcome the barriers to increased adoption of sustainable principles in residential construction, there was a need for further awareness and education in the community to boost demand.
“Unless we get people a lot younger and educate people at a much earlier age, we won’t get the outcomes that we all desire,” Gray said.
Dexus Property Group executive general manager, property services and chief operating officer Tanya Cox said the frequency of changes to public policy surrounding green building initiatives was a challenge to all sustainable development.
“Property is a long-term investment and long term investment businesses need policy stability,” she said.
She added that the politics of the climate change debate had made it more difficult for green building to gain traction.
“The conversation has changed from reducing excesses and pollution – we know that pollution is bad for the environment. Whether climate change is man-made has made the conversation much more difficult for us,” Cox said.
In addition to their roles as business leaders, Sindel, Gray and Cox are board members of the Green Building Council of Australia. 
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Lack of consumer demand for sustainable residential property

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Many economists are tipping the official cash interest rate will stay on hold for several months to come.
Financial market indicators also suggest there are strong expectations of interest rate stability, with a small chance of further cuts.
As late as Thursday 1 May, just days before the latest RBA cash rate announcement, the ASX 30 Day Interbank Cash Rate Futures May 2014 contract (which shows market expectations of an RBA interest rate change) was trading at 97.505. That indicates financial market participants thought there was a 98% chance that interest rates would be left on hold and a 2% chance of a cut to 2.25% at today’s RBA Board meeting.
For mortgage holders, low interest rates are providing opportunities to save considerable sums on their home loans.
Several lenders have cut mortgage rates since the start of this year, while the RBA has left the cash rate untouched at 2.5% since August 2013.
At least seven lenders have cut mortgage rates on their variable loans, according to Finder.com.au. The comparison website found Yellow Brick Road, ANZ, Bank of Queensland, Citibank, Homeloans, HSBC and Westpac had all cut their variable rates since January 1. At the end of April, <a href="https://loans.com.au/">Loans.com.au</a> was advertising an ongoing variable rate of just 4.49% on its Dream Home Loan, Finder.com.au reported.
However, <a href="https://finder.com.au/" target="_blank">Finder.com.au</a> money expert Michelle Hutchison says three-year fixed rates are still lower on average than variable rate home loans.
The RBA’s indicator rate for a three-year fixed rate mortgage dropped to 5.2% in March from 5.25% in February, the latest RBA statistics show. The average three-year rate available to consumers is a little lower, at 5.11%, according to Finder.com.au.
History shows lenders typically pre-empt movements in the official cash rate with their fixed rate home loans, so by the time the RBA starts lifting rates, the fixed mortgage rates available to borrowers have already reached their bottom and started to trend higher (See chart).
<img src="/images/2014/05/02/zoe-may-2-one.jpg" alt=""> 
Source: RBA
“If you're worried about interest rates rising in the next few years it might be time to consider locking in a fixed rate,” Hutchison says.
Property Observer asked Finder.com.au to crunch the numbers on the cost over the next four years of taking out a fixed rate home loan now, compared with taking out a variable rate loan.
"The average three-year fixed rate is 5.11% while the average variable rate is 5.39%,” Hutchison says. “If variable interest rates increased back to normal levels of around 7% in four years, borrowers could be better off fixing.”
For this example, we assumed that the average variable interest rate available to consumers of 5.39% would remain in place for 12 months. After that time frame, we assumed interest rates would rise by 0.25 basis points every six months for remaining three years.
We compared that variable rate loan to a mortgage with the average three-year fixed rate of 5.11%. At the end of the three years, we assumed the interest rate for the fixed rate mortgage would revert to the same variable rate as the variable loan in the example: so 6.64% after three years, and then lifting to 6.89% for the last six months of the four year period.
Both sets of figures were calculated based on a loan with an initial size of $300,000.
Results
According to Finder.com.au’s sums, the total cost over four years of the variable loan above was $93,246.
The total cost for the three-year fixed loan, reverting to the average variable loan rate at the end of the fixed period, was $88,732.
In this example, the three-year fixed rate loan would cost $4,514 less than the variable rate loan.
Of course, the results will vary if these assumptions on interest rate movements are off the mark.
Plus, there are other considerations when deciding between a fixed and variable rate mortgage, such as the flexibility to make additional repayments with the view of paying off the loan more quickly, which is usually only possible with a variable rate loan.
We’ve also excluded the affect of fees, and have ignored any other features that might be available with one loan but not the other.
In general, if it’s cost alone that you’re looking at, fixing the rate might still make sense. 
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Analysis: Is it worth fixing your home loan?

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Australians earned more than $33.5 billion in rental income on investment properties and claimed more than $41.5 billion in tax deductions against those properties in the 2011-12 tax year, according to the latest Australian Taxation Office figures.
The total of $8 billion in net losses claimed in the 2011-12 financial year was a slight increase on the $7.9 billion claimed in 2010-11, ATO figures taken from rental property schedules show.
Investment property owners in NSW earned the largest total rental income, bringing in almost $11.6 billion in rent combined, followed by investors in Queensland property, who earned more than $7.9 billion in total rent.
After deductions, however, NSW investors claimed an average loss of just $1,484 on average, while Queensland investors claimed average investment losses of $4,860.
The data is based on rental property schedules so it does not reflect the total number of properties or individuals with a rental property as the same property can have more than one owners and an individual can own more than one rental property.
Interest on loans accounted for the biggest value of deductions by far, with a total of over $24.1 billion in interest expenses claimed in the 2011-12 tax year. That was up from $22.3 billion in the previous tax year.
Council rates were the next biggest ticket item for deductions, although the total claimed in 2011-12 was only $2.36 billion.
Capital works deductions, repairs and maintenance, plant depreciation, and property agent fees and commissions were other major categories of tax deduction.
The figures have fuelled further debate about the costs of negative gearing and the merits of allowing investors to claim sizeable deductions against their rental properties.
The National Commission of Audit report, released last week, did not recommend negative gearing be removed and the government is not expected to tamper with negative gearing in next week’s Federal Budget.
However, Federal Treasurer Joe Hockey has previously indicated that negative gearing would be addressed in a white paper on taxation, which would also consider changes to income tax and the GST.
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Australians claimed $8 billion in net losses on investment properties in 2011-12 financial year

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Confidence in the outlook for the construction industry has hit its highest level since March 2008, although it will take time for improving conditions to translate into new jobs in the sector, a national survey has revealed.
Confidence improved in the March quarter across all measures of business activity and expected profitability, the Master Builders National Survey of Building and Construction, released last week, found.
Builders surveyed reported improvements in sales contracts, display centre enquiries and work on books compared with the previous quarter.
The index for builders’ own business activity rose in March for the third consecutive quarter, reaching 62.8, well above the neutral 50 point mark. This indicated builders expected business activity to pick up over the next six months, Peter Jones Master Builders chief economist said.
“This is particularly reflective of the residential building sector’s response to low [interest] rates and is an encouraging trend,” Jones said.
The Master Builders Association expects improvements in the outlook for work to increase margins and profitability, allowing builders to consider hiring employees and sub-contractors.
However, the index for hiring intentions in the sector rose to only a neutral level of 50.2, indicating most employers surveyed would keep headcounts level in the next six months. Demand for apprentices increased slightly, with 22.2% saying they planned to hire new apprentices.
The survey showed the availability of labour in the sector has increased, with builders having little difficulty in finding staff across all categories of worker. There were particularly high levels of availability of electricians, painters and building consultants.
The Master Builders Association noted that as the business cycle turned and conditions improved, it was likely that builders would once again experience some difficulty in finding certain types of sub-contractors and employees.
A separate study by the Department of Employment, also released last week, showed the number of job advertisements for construction trade workers increased by 2% in March compared with the previous month.
Over the year to March 2014, job ads for construction workers were up by 33.7%, according to the Internet Vacancy Index, which counts online job ads newly lodged on SEEK, MyCareer, CareerOne and Australian JobSearch during the month, although the increase came from a low base.
National availability of labour (index)
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="154">
Role
</td>
<td valign="top" width="154">
Sep-13
</td>
<td valign="top" width="154">
Dec-13
</td>
<td valign="top" width="154">
Mar-14
</td>
</tr>
<tr>
<td valign="top" width="154">
Site Manager
</td>
<td valign="top" width="154">
23.7
</td>
<td valign="top" width="154">
34.8
</td>
<td valign="top" width="154">
29.3
</td>
</tr>
<tr>
<td valign="top" width="154">
Project Manager
</td>
<td valign="top" width="154">
33.7
</td>
<td valign="top" width="154">
33.9
</td>
<td valign="top" width="154">
26.0
</td>
</tr>
<tr>
<td valign="top" width="154">
Foreman/Supervisor
</td>
<td valign="top" width="154">
32.7
</td>
<td valign="top" width="154">
34.1
</td>
<td valign="top" width="154">
23.9
</td>
</tr>
<tr>
<td valign="top" width="154">
Concretors
</td>
<td valign="top" width="154">
16.3
</td>
<td valign="top" width="154">
22.9
</td>
<td valign="top" width="154">
19.0
</td>
</tr>
<tr>
<td valign="top" width="154">
Bricklayers
</td>
<td valign="top" width="154">
18.3
</td>
<td valign="top" width="154">
31.6
</td>
<td valign="top" width="154">
18.5
</td>
</tr>
<tr>
<td valign="top" width="154">
Steel Fixers
</td>
<td valign="top" width="154">
17.4
</td>
<td valign="top" width="154">
26.8
</td>
<td valign="top" width="154">
15.3
</td>
</tr>
<tr>
<td valign="top" width="154">
Office Staff
</td>
<td valign="top" width="154">
16.3
</td>
<td valign="top" width="154">
18.4
</td>
<td valign="top" width="154">
15.3
</td>
</tr>
<tr>
<td valign="top" width="154">
Tilers – Wall and Floor
</td>
<td valign="top" width="154">
15.6
</td>
<td valign="top" width="154">
26.6
</td>
<td valign="top" width="154">
14.7
</td>
</tr>
<tr>
<td valign="top" width="154">
Plaster Fixers
</td>
<td valign="top" width="154">
14.8
</td>
<td valign="top" width="154">
17.1
</td>
<td valign="top" width="154">
13.8
</td>
</tr>
<tr>
<td valign="top" width="154">
Carpenters
</td>
<td valign="top" width="154">
20.3
</td>
<td valign="top" width="154">
22.2
</td>
<td valign="top" width="154">
13.7
</td>
</tr>
<tr>
<td valign="top" width="154">
Scaffolders
</td>
<td valign="top" width="154">
11.1
</td>
<td valign="top" width="154">
15.9
</td>
<td valign="top" width="154">
11.3
</td>
</tr>
<tr>
<td valign="top" width="154">
Labourers
</td>
<td valign="top" width="154">
12.5
</td>
<td valign="top" width="154">
21.0
</td>
<td valign="top" width="154">
10.3
</td>
</tr>
<tr>
<td valign="top" width="154">
Tilers – Roof
</td>
<td valign="top" width="154">
12.3
</td>
<td valign="top" width="154">
14.1
</td>
<td valign="top" width="154">
9.8
</td>
</tr>
<tr>
<td valign="top" width="154">
Building Consultants
</td>
<td valign="top" width="154">
14.3
</td>
<td valign="top" width="154">
16.5
</td>
<td valign="top" width="154">
9.2
</td>
</tr>
<tr>
<td valign="top" width="154">
Painters
</td>
<td valign="top" width="154">
9.6
</td>
<td valign="top" width="154">
17.1
</td>
<td valign="top" width="154">
8.2
</td>
</tr>
<tr>
<td valign="top" width="154">
Electricians
</td>
<td valign="top" width="154">
15.1
</td>
<td valign="top" width="154">
15.3
</td>
<td valign="top" width="154">
7.1
</td>
</tr>
</tbody></table>
Note: Respondents are asked about the degree of difficulty in finding a range of subcontractors/employees. The higher the index, the more builders are experiencing large difficulty in finding employees or sub-contractors. A low index reading indicates slight or no difficulty in finding subcontractors/employees.
Source: Master Builders Association 'National Survey of Building and Construction' (March 2014).
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Confidence in construction industry at highest point since GFC

<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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