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The NSW government has fast-tracked the release of revised strata laws after agreeing in February to delay the process to allow more time for the sweeping changes proposed to be considered. 
NSW Fair Trading Minister Stuart Ayres said the government had managed to draft the bills more quickly than expected and would next week release them for limited consultation for a period of four weeks.
“The timelines are tight but we are aiming to be in a position to introduce these bills into Parliament this financial year,” Ayres said. 
In February, stakeholders demanded a delay to the process of at least six months to give the state government more time to get new legislation right.
More than 70 reforms have been put forward as part of the proposed changes, which Owners Corporation Network chair Stephen Goddard previously described as “the most significant social reforms in strata since 1961”. 
The proposed reforms aim to ensure defects in new strata buildings are quickly identified and fixed, and provide a way to terminate strata plans to make it easier to redevelop existing strata buildings.
They are also intended to improve decision making and dispute resolution in strata communities; protect individuals from unfair practices; and improve transparency and accountability in strata management, including the use of proxies and disclosing potential conflicts of interest. 
Subject to the passage of the bills, regulations will now be drafted over the second half of 2014.
“It is important the legislation is presented to Parliament as soon as possible, to provide industry and community stakeholders with sufficient time to prepare for its commencement,” Ayres said. 
“Although the date for introducing the bills to Parliament has been brought forward, the consultation period provided to stakeholders remains unchanged.”
Discussions with stakeholders have been under way for several months. NSW Fair Trading released a <a href="https://www.fairtrading.nsw.gov.au/biz_res/ftweb/pdfs/About_us/Have_your_say/Strata_title_law_reform_position_paper.pdf" target="_blank">position paper</a> on strata title law reform<a href="https://www.propertyobserver.com.au/trends/strata-law-changes-will-have-a-big-impact-on-the-residential-market-in-2014/2013121666961" target="_blank"> in November 2013</a>. 
There are more than 72,000 strata schemes in NSW and more than one quarter of the NSW population lives in a strata scheme. There are more than 1,500 licensed strata managing agents.
“Within 20 years, 50% of the State’s population will be living or working in strata.  It is therefore critical we modernise the legislation to make NSW number one again,” Ayres said.
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NSW government fast-track revised strata laws

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There have been few Google searches for the term “first home buyer” over the past few years with that segment of buyers increasingly dropping out of the market.
<img width="470" height="196" src="/images/stories/2014/02/28/fhb-analysis-chart-feb-28.gif" alt="fhb-analysis-chart-feb-28"> 
Plotting Google searches on the term “first home buyer” compared with Australian Bureau of Statistics data on the proportion of home mortgages taken out by first-time buyers shows a fall in interest in the search term corresponding to the drop in buyers. Related phrases such as first home owner grant yield similar results.
The peak in first home buyer activity in 2009 was preceded by a clear spike in internet searches on the subject.
There was a minor lift in the number of searches on first home buyers around mid-2012, in line with a slight lift in buyer numbers, but aside from that blip, the term has been as absent from Google searches as the buyers have been from the market.
<a target="_blank" href="mailto:news@propertyobserver.com.au">news@propertyobserver.com.au</a>
                                     
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Amount of first home buyers searches dropping in more ways than one

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South African-listed Investec Australia Property Fund has bought an A-grade office building at Eight Mile Plains south of Brisbane in an off-market transaction.
The fully tenanted property was purchased on an 8.25 per cent yield for $20.9 million from Office Park Developers.
IAPF chief executive Graeme Katz told Property Observer the building fit within the original mandate set for the fund when it listed on the Johannesburg Stock Exchange late last year.
“We were looking for assets with good lease tenure, new or near new assets, in good areas without necessarily buying in Eagle Street. This ticks all of those boxes. It’s well-built, with good quality tenants, near the motorways and with plenty of parking,” Katz said.
Tenants in the 3,568 square metre property at Garden City Office Park include health care provider Healthscope and Uniting Church-funded health and community service provider Bluecare. The leases have medium- to long-terms with contracted rental growth of about 3%.
The fund also includes six high quality logistics properties and two A-grade office buildings in the metropolitan areas of Melbourne, Canberra, Brisbane and Adelaide.
Katz said the fund was not looking for trophy assets and did not want to compete for prime CBD properties with major Australian institutional investors. The fund managers preferred to use their relationships to source transactions.
There was strong demand from South African investors in Australia’s commercial property market and the fund, which is currently ungeared, had capacity to expand, Katz said.
“We’re not bulking up for the sake of bulking up. We’re not chasing fees. We are going to maintain our discipline but there’s appetite for investment and our first target is to invest our capital to reach targeted gearing levels of 30-35% gearing,” he said.
There was no set date for the target to be met and further acquisitions would be made opportunistically, he added.
The purchase comes as foreign investors continue to eye the Australian office market.
A recently released Colliers International report into CBD office markets found that offshore investors were the second most active group of buyers of Australian CBD office property, although their involvement in the market has fallen markedly since 2012. Colliers put the drop in offshore buying down to increased competition from Australian institutions.
In total, $8.1 billion worth of Australian CBD office buildings transacted in 2013, up 16% on the previous year. Australian institutional investors bought $4.2 billion of prime office stock compared with $1.6 billion purchased by foreign investors.  Offshore buyers were more active in the secondary property market.
The Colliers report forecast rental rates in Brisbane CBD offices would fall by around 3% in 2013-2014, following a contraction of around 13% in 2012-2013, due to higher levels of supply and a shrinking public sector workforce.
However, the report noted that leasing fundamentals indicated the Brisbane CBD office market was approaching the bottom of the cycle and vacancy rates were not expected to rise substantially in 2014.
The research backs an <a href="https://www.propertyobserver.com.au/queensland/brisbane-office-market-caught-in-a-perfect-storm/2013101565717" target="_blank">earlier report into the sector, published in late September by Knight Frank</a>, which found that the Brisbane market was suffering from softening tenant demand, a shrinking state government workforce and private sector contraction.
<a href="mailto:news@propertyobserver.com.au" target="_blank">news@propertyobserver.com.au</a>
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Off-market A-grade office building purchased by South African-listed fund

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Listed residential property developers have delivered solid results in the latest reporting season with improving housing markets and low interest rates benefiting the sector.
Peet Limited, AV Jennings, Finbar Group and Cedar Woods Properties last week reported substantial lifts in profit for the first half of the 2014 financial year.
Australand Property Group, Stockland Property Group and Villa World, which reported earlier in the month, also achieved higher profits and more residential sales for the first half of 2014, while Mirvac Group’s residential division had a record $1.5 billion in pre-sales at December 31.
“They’re all in a purple patch as it stands,” Morningstar head of property research Tony Sherlock told Property Observer. “They’re getting volume growth, getting price growth, and at the same time their carrying costs for land, with low interest rates, are low.”
Sherlock said he expected conditions to remain strong for the residential developers throughout 2014 and into 2015.
“What I’m most concerned about is those [developers] that are buying to add to their land banks now. I think prices have run a bit harder than they should and when interest rates have normalised the holding costs will go up and returns will go down,” Sherlock said.
The official cash rate is at a record low of 2.5%, while the Reserve Bank’s mortgage indicator rate for a standard variable home loan is 5.95%.
“When [interest rates] return to more normal settings – which from my perspective is 7 to 7.5% - the sector will struggle to hold the gains that have occurred in the last six to 12 months,” Sherlock said.
The residential developers are upbeat but cautious about the outlook for their businesses.
Peet, whose main developments are in Perth and Melbourne, reported statutory profit of $13.2 million for the first half, up from just $1 million in the previous corresponding period. The company’s managing director Brendan Gore said the group’s performance reflected a broadening market improvement after challenging conditions in the first half of FY13.
He said the foundations of the residential sector looked sound, although he expected market conditions to be mixed through FY14.
“Conditions across the Perth market are anticipated to remain robust with the price growth anticipated to moderate. Victorian sales volumes are expected to remain steady but price sensitive while activity in the Queensland market is improving,” Gore said in a statement to the Australian Securities Exchange.
“However, affordability, softening labour market conditions and consumer caution is likely to make for a subdued lift.”
<a target="_blank" href="mailto:news@propertyobserver.com.au">news@propertyobserver.com.au</a>
 
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Listed residential developers report strong growth 

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The Reserve Bank’s official cash rate is expected to remain at, or near, record lows for most of the year. That’s great news for mortgage holders but investors may be wondering what it means for capital values.
Interest rates are a key determinant of Australian property prices as the cash rate affects funding costs, with most people taking out a mortgage to buy, says ANZ chief economist Warren Hogan.
“When interest rates go down it will clearly support property prices and typically result in rising prices. When interest rates go up it will act as a headwind to property prices and will relate to property prices coming down,” Hogan says.
But it’s not a simple relationship, he says. “It depends on the situation in the market and the economy ... If you are cutting rates because the economy is in a hole you will not see prices rise.”
A range of other factors also drives property prices, diluting the effect of interest rate movements, says BIS Shrapnel senior manager – residential property, Angie Zigomanis.
“One of them is the general demand-supply situation in the city; affordability and economic conditions within the market as well,” Zigomanis says.
Population expansion and employment growth also influence prices, says Atchison Consulting managing director Ken Atchison.
“In Australia, migration has been a huge driver of demand due to the strong growth in the working population,” he says.
Atchison Consulting’s analysis shows only a weak relationship between changes in the RBA cash rate and changes in residential property prices in Australia.
<img width="470" height="318" src="/images/stories/2014/03/03/zoe-march-3-four.gif" alt="zoe-march-3-four">
Source: Atchison Consultants
From mid-1995 to mid-1996, cash rates were falling as property prices rose. The same occurred between 2000 and 2001. But at other times, such as around 1991, 2008 and 2011-2012, property prices fell as cash rates were cut.
Atchison’s analysis shows that US interest rates set by the Federal Reserve and the US dollar-Australian dollar exchange rate have as much of an impact on Australian residential property prices as local exchange rates.
<img alt="zoe-march-4" height="322" width="470" src="/images/stories/2014/03/04/zoe-march-4.gif">
<img width="470" height="335" src="/images/stories/2014/03/03/zoe-march-3-three.gif" alt="zoe-march-3-three">
Source: Atchison Consultants
Atchison says that’s because foreign investors are attracted to Australian property when interest rates elsewhere are low and the exchange rate is in their favour.
Additionally, Atchison says when interest rates overseas are lower, Australian banks find it easier to raise capital offshore for lending to Australian borrowers. With the banks more willing to lend, Australians find it easier to buy.
Local interest rate changes come into play in driving property prices indirectly through their impact on the broader economy, Atchison says.
The RBA lifts rates to reduce spending in the economy and control inflation. Higher interest rates force people and businesses to spend more on loan repayments, reducing their disposable incomes.
Conversely, cutting rates reduces mortgage holders’ interest costs, giving them more money to spend on goods and services.
Lower interest rates also make it more viable for businesses to invest and property developers to commence housing construction, which creates jobs and drives the economy.
Zigomanis says low cash rates improve the affordability of housing loans, which provides a trigger for price growth to occur. “Interest rates keep falling until the housing market stabilises and in a rising market, interest rates rise to stop the growth,” he says.
Despite the recent surge in property prices, most commentators expect the official cash rate to stay low for most of 2014. RBA governor Glenn Stevens noted in February, when rates were left on hold at 2.5%, that: “On present indications, the most prudent course is likely to be a period of stability in interest rates.”
Zigomanis says that with interest rates as low as they are, incremental changes will have less of an effect on the residential property market than they would have at times when rates were higher.
“People factor in a certain level of interest rates when they purchase. People look at what their interest repayments are now and where they could be,” Zigomanis says.
Less than six years ago the official cash rate was 7%. Less than two-and-a-half years ago it was 4.75%. “That’s probably in the back of minds for a lot of purchasers now potentially it could go back up to that level,” he says.
<a href="mailto:news@propertyobserver.com.au" target="_blank">news@propertyobserver.com.au</a>
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What the cash rate means for capital home values

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There has been a lot of talk of a property bubble over the past few weeks with US economist and commentator Harry Dent in Australia speaking at conferences and promoting his latest book, predicting a crash in housing markets around the country.
If Google searches are anything to go by, the media that Dent’s visit generated has fuelled concerns about the idea.
There has been a fivefold increase in searches on the phrase “property bubble” in Australia since the start of the year, according to Google Trends data. So far in February, there have been 35% more searches on that term than there were in November 2010, the previous peak in interest in that search from Australia.
Most of the searches conducted related to NSW, Victoria and Western Australia. Queenslanders also did some internet investigations the topic.
Before November 2009, Google recorded no searches on the term “property bubble” in Australia.
<a target="_blank" href="https://www.google.com.au/trends/explore#q=property+bubble&amp;cmpt=q&amp;geo=AU"><img alt="bubble-searched-march-3" height="170" width="470" src="/images/stories/2014/03/03/bubble-searched-march-3.jpg"></a>
Source: Google Trends
Similar terms, “real estate bubble” and “housing bubble” have also been attracting more attention in Australia since late 2009 and early 2010. People in Victoria and NSW searched for real estate bubble with interest in that term growing since early 2013, although searches on that term peaked in April 2010.
Those living in Western Australia searched for “housing bubble” the most, with people in Victoria, NSW, Queensland and South Australia also searching on that term.
Even by global comparisons, Australians have been conducting a lot of housing bubble-related Google searches.
Since 2004, Singaporeans searched Google for news of a property bubble the most, conducting more than double the searches than people in the second most concerned country, Malaysia. Australia ranked third, slightly ahead of Ireland.
Since the start of the year, searches on the term property bubble world-wide have more than doubled to their highest level, according to the Google trends data.
Canadians and people in the United States searched most for real estate bubble and housing bubble. Again, Australians ranked third in using those terms over the past decade.
But if those search results show there’s widespread concern in Australia about a property bubble, other common property-related searches tell a different story.
On average over the past five years, there have been 73 searches on the term “investment property” for every three search on the term “property bubble”.
Even over the past 12 months there have been 82 searches for investment property for every five searches for property bubble.
The term “property for sale” has also been searched in Australia over forty times more often than the term property bubble.
Other indicators such as recent auction clearance rates and housing finance figures also suggest that any concerns are yet to translate into action.
<a target="_blank" href="mailto:news@propertyobserver.com.au">news@propertyobserver.com.au</a>
                
 
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Analysis - Property bubble chatter has gone through the roof since the start of 2014

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Self-managed superannuation funds allocated almost twice as much of their assets to residential property in 2013 compared with the year before, a report into the funds has found.
The fourth annual Intimate with Self-Managed Superannuation report found that 9.9% of SMSF assets were held in residential property last year, up from 5.6% in 2012. The increase came as fund members reduced their cash allocations to 31% of total assets, down from 33.9% of assets held in cash in 2012.
The report, released at the SMSF Professionals’ Association of Australia (SPAA) conference in Brisbane recently, revealed that one third of SMSF trustees plan to consider investing in residential property through their super fund.
More than two thirds of SMSF trustees who invest in property are self-directed in their decision to do so, however many people do seek advice from financial planners or accountants, particularly regarding the loan structures that super funds can use to borrow for investing, known as limited recourse borrowing arrangements.
However the report, which was commissioned by fund manager Russell Investments and SPAA, and produced by research house CoreData, found that fewer financial advisers intend to offer assistance in on limited recourse borrowing arrangements in future.
While almost half of financial advisers surveyed had previously advised SMSF trustees on the rules on borrowing through SMSFs, only 7.7% planned to provide advice in that area in future. Almost 30% of advisers surveyed had never given advice on limited recourse borrowing arrangements.
The report’s findings on property investment were at odds with the latest Australian Taxation Office statistics, which showed that in September 2013, only $18.6 billion or 3.5% of the total $531.5 billion held in SMSF assets were held in residential property.
<a href="mailto:news@propertyobserver.com.au" target="_blank">news@propertyobserver.com.au</a>
           
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SMSF residential property allocation nearly doubles over 2013

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Property spruikers have been warned they must be licensed to offer financial advice if they are targeting people with self-managed superannuation funds or suggesting people should establish their own funds to buy real estate.
People who advise on direct property do not need to have an Australian Financial Services Licence, but people who make recommendations that involve SMSFs do need a licence as superannuation funds are considered financial products, Australian Securities and Investments Commission commissioner Greg Tanzer said.
“We regard [recommendations to buy property through SMSFs] as investment advice and you need to be licensed and if you are not licensed we will come after you,” Tanzer said.
Tanzer warned investors to be wary of property spruikers and ensure any advice they took was right for their circumstances.
“Our message for investors is superannuation is a far too important investment in the future to be taken in by a glitzy promotion,” he said.
The Australian Taxation Office, which regulates SMSFs, was also monitoring property transactions through the funds.
Acting second commissioner Alison Lendon said the ATO was checking that the investment decisions SMSF trustees were making were aligned with their fund’s trust deeds and investment strategies.
The ATO was also checking that property purchases met the sole purpose test, which requires superannuation assets to be acquired by the funds for the single intention of providing an income in retirement. It was also monitoring whether transactions were conducted at arms’ length to ensure properties were not being purchased from parties that were related to the trustees.
<a target="_blank" href="mailto:news@propertyobserver.com.au">news@propertyobserver.com.au</a>
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SMSF property spruikers receive ASIC warning

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The federal government is keeping a close watch on property acquisitions through self-managed superannuation, although a separate review of limited recourse borrowing arrangements that the financial services industry had expected will not go ahead.
Assistant Treasurer Arthur Sinodinos told delegates at the Self-Managed Superannuation Professionals’ Association of Australia conference this week in Brisbane, that there would be no specific review into the limited recourse borrowing arrangements which SMSFs use when taking out a loan to buy property.
Instead, these arrangements will be considered as part of a broader review into the financial services sector.
Sinodinos said the government was monitoring issues such as property spruikers promoting real estate through SMSFs to investors but did not want to introduce “heavy-handed regulation” to deal with any problems.
“We want to make sure that everybody understands that with people who provide you with advice, including on property, they have to be appropriately licensed and appropriately accredited so that the client is getting the best possible advice in their interest,” he said.
“Where possible, it’s about light-touch regulation and we like that sort of regime.”
He added that the government expected investors with SMSFs to take responsibility for their own investments and not expect to receive compensation if investments they made went bad.
<a href="mailto:news@propertyobserver.com.au" target="_blank">news@propertyobserver.com.au</a>
 
  
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Property in SMSFs watched closely, but no review of limited recourse borrowing

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Radical changes proposed to strata schemes in NSW have been delayed by at least six months after stakeholders demanded the state government take more time to get new legislation right.
NSW Fair Trading released a <a href="https://www.fairtrading.nsw.gov.au/biz_res/ftweb/pdfs/About_us/Have_your_say/Strata_title_law_reform_position_paper.pdf" target="_blank">position paper</a> on strata title law reform<a href="https://www.propertyobserver.com.au/trends/strata-law-changes-will-have-a-big-impact-on-the-residential-market-in-2014/2013121666961" target="_blank"> in November 2013</a>. A final bill was expected to be introduced to Parliament in early 2014 but that has been extended until August following a recent meeting between NSW Minister for Fair Trading Stuart Ayres and key stakeholders.
“There was concern among the stakeholders that the most significant social reforms in strata since 1961 could be placed in jeopardy by legislation that was prepared as part of an unrealistic timeframe,” Owners Corporation Network chair Stephen Goddard told Property Observer.
More than 70 reforms have been put forward. Goddard said four separate pieces of legislation would need to be amended to enact the planned reforms and each fell into a different area of state government.
“The policy changes that are coming into play are therefore in need of a whole of government solution, not just one ministry,” he said.
One of the reforms’ aims is to ensure defects in new strata buildings are identified and fixed sooner.
Goddard said around 85% of new strata residential buildings have defects, with owners’ corporations often having to fight for problems to be rectified.
The proposed reforms will also provide a way to terminate strata plans to make it easier to redevelop existing strata buildings.
They aim to facilitate decision making and dispute resolution in strata communities; protect individuals from unfair practices; and improve transparency and accountability in strata management, the use of proxies and disclosing potential conflicts of interest. The proposed changes are also intended to reduce red tape.
“This legislation will be ground-breaking. It will roll out into all the other jurisdictions I’m confident about that because the issues recur in Victoria, Queensland and Western Australia,” Goddard said.
Former NSW Fair Trading minister Anthony Roberts started an extensive consultation process on the reforms in September 2012, leading up to the release of the position paper in November 2013. The consultation received submissions from more than 70 organisations including the Housing Industry Association, the Master Builders Association, the Property Council of Australia, the Real Estate Institute of NSW, Owners Corporation Network and local councils, as well as from hundreds of individuals.
Ayres took over from Roberts as NSW Fair Trading Minister on December 9, 2013 and has continued with the reforms. A spokeswoman for the Minister confirmed the timetable had been delayed until August.
“It’s really significant legislative reform and we did not want to rush it,” the spokeswoman said.
Industry sources suggested legislative changes could be pushed out again to October.
There are more than 72,000 strata schemes in NSW with $350 billion in assets.
One in four Australians now live in strata accommodation and according to government 20 years, half of the NSW population is expected to be living or working in a strata or community scheme.
<a href="mailto:news@propertyobserver.com.au" target="_blank">news@propertyobserver.com.au</a> 
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Changes to NSW strata laws delayed after stakeholders demand more time

<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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