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Retail property giants, Westfield Corporation and Scentre Group, were among the last companies to report their results in August, along with Lend Lease, Charter Hall Group and several smaller property companies. 
Westfield Corporation and Scentre Group, which each reported half-year results to June 30, 2015, hit their funds from operations forecasts and said they were in line to meet their full-year targets. 
Development works are expected to drive profits for Westfield Corporation, which owns and operates Westfield shopping centres in Europe and the USA. It plans to start $2.5bn worth of projects in the coming year with $1.6bn of redevelopments already started in the first half of 2015. 
Scentre Group, owner-operator of the Australian Westfield shopping centre assets, is also spending up on redevelopment with $825 million of works announced. Some of the costs will be covered using proceeds from the sale of four smaller shopping centres that did not fit with the group’s long-term strategy. 
Several listed property companies have noted the high prices that quality commercial assets are commanding.
“We expect quality Australian property to remain attractive to both domestic and off shore investors given the high Australian property yield spread to bond yields and that the cost of debt remains near record lows,” Charter Hall Group joint chief executive David Harrison said in announcing the fund manager’s results. 
Charter Hall Group delivered a statutory after-tax profit of $117.9 million, up 43.6%. Its operating earnings were $98.8 million, up 21.7%. 
Cromwell Property Group, which owns offices and operates property funds, said market conditions had lead it to be a net seller of assets.
“We believe some of the current sales activity represents peak of the cycle pricing for prime office assets, notably in Sydney and Melbourne,” Cromwell chief executive Paul Weightman said.
Cromwell reported statutory profit of $148.8 million, down from $182.5 million in 2014. It delivered operating earnings per security of 8.35 cents per share and distributions per security of 7.86 cents, up 3% on the previous year and in line with guidance. 
While asset prices were up, trading conditions in commercial property have been mixed.
National Storage REIT, which owns and operates self-storage centres, said weak business and consumer confidence and high levels of discounting among its competitors had created variable trading conditions for its business. 
The REIT, which listed at the end of 2013 and was admitted into the S&amp;P/ASX 200 in June 2015, reported an after-tax profit of $48.7 million and underlying earnings of 8.2 cents per security in line with guidance. 
Residential property markets are also variable across the country. 
Lend Lease, like other major residential developers, reported revenue from its residential division was up dramatically. The group reported $5.2 billion in pre-sales revenue for the year, more than double the prior year’s result. 
Sunland Group reported improving consumer sentiment in Sydney, Melbourne and south-east Queensland drove development margins higher and helped it deliver an after-tax profit of $30.1 million, 111% up on its 2014 result. 
Peet Limited reported a statutory profit of $38.5 million, up 27% on the previous year’s result as lower sales at its developments in Western Australia and the Northern Territory were partly offset by the strong performance of its projects in Victoria.
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Big property companies reporting strongly: Zoe Fielding

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Improving consumer confidence and market conditions in Melbourne, Sydney and south-east Queensland have helped residential developer Sunland Group boost profits for the 2015 financial year. 
The group reported an after-tax profit of $30.1 million, 111% up on its 2014 result. 
It said higher development margins and an increase in settlement values were partly responsible for the profit uplift, but most of the increase came from the sale of $90.1 million worth of assets in Sydney and Melbourne. 
Some of the sale proceeds were earmarked for reinvestment in south-east Queensland, including the acquisition of a 42 hectare site on the Gold Coast and the group’s first residential housing development site in Brisbane.
“Sunland has maintained a counter-cyclical approach to site acquisition and divestments, positioning the group’s development portfolio to capitalise on the improving south-east Queensland residential markets,” managing director Sahba Abedian said.
The group also used the proceeds to pay out a special 6 cent per share dividend, bringing dividends for the year to 10 cents, fully-franked. 
Sunland, which has developments along Australia’s eastern seaboard, reported sales were up 20% on the previous year to 754 lots, however settlements were down by 13% to 389.
“Whilst settlement volumes decreased as a result of [the] strategic asset sales, settlement values still increased by 7% across the balance of the portfolio,” Abedian said.
Multi-storey apartment buildings account for $2.3 billion worth of the group’s $3.7 billion portfolio, with residential housing and urban developments making up the balance. 
It has 10 projects scheduled to launch in 2016 and aims to increasingly focus on multi-storey developments over the medium-term. 
The group intends to issue profit guidance at its annual general meeting on November 20.
 
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Sunland Group boost profits for FY2015

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Caps on lending to investors and other recently introduced bank credit restrictions will temper the strength of the Australian residential property market, the head of property and construction giant Lend Lease has predicted. 
Lend Lease chief executive Steve McCann said the balance between demand and supply of new dwellings in Australia was coming into balance following a historic shortage of homes in many capital cities and this would also cool the market. 
“The Australian market remains strong although it is easy to see that we’re somewhere near the peak of the cycle,” McCann said as he announced the group’s 2015 financial results. 
“There have been a combination of factors that have fuelled this cycle including strong population growth, monetary easing driving strong investor demand, [Foreign Investment Review Board] restrictions directing increased foreign demand to apartments sold off the plan and a historic undersupply of new dwellings in many of our capital cities.”
While lending restrictions and greater supply would slow the market, Lend Lease had not yet seen any impact from those factors, McCann added. 
The group’s residential business reported a record 4262 settlements, up 24% compared with 2014. 
Residential pre-sales revenue was up 109% on the previous year to a record $5.2 billion. Some $4.7 billion of this amount was in pre-sales for apartments, which are the main focus for the group’s residential division. 
McCann said the business was looking for indicators, such as a slowing rate of pre-sales for new launches, to help it identify a turn in the market cycle. 
It has already introduced higher pre-sales thresholds for new projects, which have been lifted to 70% on some apartment developments, as well as flexible apartment designs and a mix of product pricing. 
Lend Lease, which also has significant construction and investment management businesses, reported an after-tax profit of $618.6 million. This was down considerably on the $822.9 million result the previous financial year, which had been boosted by a $485 million contribution from the sale of the Bluewater Shopping Centre in the UK.
The result represented earnings per stapled security of 106.8 cents. It paid a distribution of 27 cents per stapled security, 25% franked. 
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Credit restrictions temper property market: Lend Lease

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Retail and residential property took the headlines last week with several of the big participants in those sectors reporting their results for 2015.
Major shopping centre owners said sales conditions for their malls were improving, but still challenging, while property values were rising due to investor demand for income-producing assets.
Charter Hall Retail REIT, which owns small and neighbourhood shopping centres, lifted its statutory profit by more than 90% to $162.5 million driven by increases in the value of its shopping centre properties.
“Ongoing investor interest in this asset class has resulted in yields for high quality assets tightening sharply over the past 12 months and as such we are expecting to see growth in the value of the REIT’s portfolio over the 2016 financial year,” chief executive Scott Dundas said.
The REIT’s operating profit was up 5.2% to $110.8 million.
Federation Centres, which merged with Novion Property Group in June to form a $22 billion REIT, reported a $675.1 million statutory profit for the 2015 financial year, and underlying earnings of $683.1 million, up 6.2%.
Comparable specialty store sales were up 3.3%, an improvement on the 2.4% sales growth the previous year. Comparable net property income growth was 2.5%, up from 1.2%.
However, the REIT’s leasing results were weaker with negative 2.2% leasing spreads across the combined portfolio, worse than the negative 1.5% spreads achieved in 2014.
The relatively mature Novion Property Group assets dragged on that result, with negative 4.7% spreads. Managers of the Federation Centres properties were able to improve leasing spreads by 3.2% by changing tenant mixes.
The group recently replaced Federation’s chief executive Steven Sewell, who had been set to head the combined group, with Novion’s head Angus McNaughton.
McNaughton said the sector was slowly improving but expected consumer sentiment to fluctuate.
Shopping Centres Australiasia Property Group worked hard on its specialty store leasing through 2015, with a project targeted at improving occupancy rates. It spent $9.6 million on incentives such as assistance with fitouts for tenants.
“During FY15 we had 50 specialty tenant renewals, and an average rental uplift of 7.3% was achieved,” chief executive Anthony Mellowes said. “This is a positive start to our first rent renewal cycle which will continue through FY16 to FY20.”
Specialty stores in SCA’s centres lifted sales by 5.6%.
Stockland Property Group, which derives about 60% of its earnings from retail property, reported earnings in that division were up 4.2%.
Its shopping centres achieved their strongest specialty store growth in four years, rising 7%. Food catering and fast casual dining, communication technology, services, homewares and apparel were the best performing categories.
Residential
Many investors were more interested in Stockland’s residential division, with the group being one of Australia’s largest home builders.
Profits in that area were up 73.5% to $166 million.
Residential developers have used reporting season as a platform to call for discussion on topics such as the undersupply of homes in Australia and stamp duty. They have cautioned regulators not to go too far with moves to slow the housing market, which they say is varied across the country.
AV Jennings chief executive Peter Summers said stamp duty was holding up construction and adding to housing costs. That group reported before-tax profits were up 78.3% to $48.2 million, with improving housing markets lifting revenue by 26.9% to $317.9 million.
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Fluctuating consumer sentiment prompts erratic REIT retail leasing results

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Home builder AV Jennings has hit out at stamp duty, which it said was holding up construction and adding to housing costs. 
Chief executive Peter Summers made the comments in announcing the company’s $48.2 million before-tax profit for the 2015 financial year, which was up 78.3% on 2014.
The profit increase was driven by improving residential markets, which lifted revenue by 26.9% to $317.9 million. But Summers said recent activity in new housing markets followed a sustained downturn in sales and a lack of supply in many markets. 
He blamed stamp duty for contributing to housing costs and called for debate on the tax.
“The company has for many years talked about the impact of government charges and taxes and the cost of red tape causing delays that are impacting affordability,” Summers said. 
While price growth has been strong in some markets such as Sydney and Melbourne, AV Jennings noted in its annual report that price growth had been “more muted” in the markets in which it operates.
“It has been disappointing to see that much of the commentary on the housing market has focussed on extreme examples or specific micro-markets, such as parts of inner Sydney, which are then extrapolated into the rest of the Australian market,” Summers said. 
Residential markets in South Australia and Western Australia were subdued. Demand and supply were balanced in the mid-to-outer areas of Melbourne where the company has developments, and prices were firming in Brisbane, Noosa, Caloundra and Coomera in Queensland the company noted. 
AV Jennings sells most of the homes it develops to domestic buyers and owner occupiers. It settled 1538 lots in the 2015 financial year, up 22.6% on the previous year. It said it expected to end the 2016 financial year with contracts signed for 1800 to 2100 lots.
It paid dividends of 4 cents per share, fully franked, for the full year and said in future it would pay out 40-50% of after-tax net profit. 
The picture above is taken from the AV Jennings The Mill Apartments development at Eastwood, Lot 404/8 Avondale Way.
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AV Jennings hits out at stamp duty

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Australia’s biggest residential developer, Stockland Property Group, expects the property cycle to continue for several years as it believes all of Australia’s metropolitan markets are suffering from an undersupply of homes.
Stockland chief executive Mark Steinert made the prediction in announcing the group’s $903 million statutory profit for the 2015 financial year. The result was up 71.4% on the previous year, due to revaluations of its commercial property assets and an $80 million gross profit from the sale of its stake in Australand.
“The typical cycle, without a severe economic disruption, normally lasts seven to eight years. This one started in January 2013 so I think it’s very premature to be calling the top,” Steinert said. 
He moderated his forecast by adding strong growth in inner Sydney and Melbourne was likely to slow given affordability challenges and recently introduced constraints to investor lending.
Sales activity was lower in Western Australia, and moderate price falls were possible during the 2016 financial year.
Queensland’s market was improving driven by a strengthening labour market and affordability relative to Sydney and Melbourne, which was expected to boost interstate migration. 
Stockland focuses on the affordable end of the residential market. It sells 75% its homes to owner occupiers, with 42% of total sales to first home buyers.
The group reported a 73.5% increase in profit in its residential business to $166 million and said it had a record 3742 contracts for home sales on hand.
Operating profits in each of its commercial divisions were also up: by 6.4% in its office business; 4.2% in its retail division; and 3.1% in logistics and business parks. The retirement living business lifted its operating profit by 19.9%.
The group’s underlying profit increased 9.4% to $608 million. 
Underlying earnings per security was 25.9 cents, up 7.8%. Funds from operations was $657 million, up 14.7%.
The group paid a 24 cent distribution. 
For the 2016 financial year, it forecast earnings per share of 6-7.5% and funds from operations per security of 8.5-10%.
It lifted its target payout range for distributions for the 2016 financial year to 80-90% of underlying profit, up from 75-85%, and forecast distributions of 24.5 cents per security. 
 
The writer is a shareholder in Stockland Property Group
 
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Stockland deliver $903 million statutory profit for FY2015

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The big players in the property sector started delivering their results to the market last week, with the themes of rising valuations for prime property, tightening capitalisation rates and strengthening markets in Sydney and Melbourne offset by slower conditions in Perth and Brisbane.
The residential market was in the spotlight with diversified property company, Mirvac Group, reporting an operating profit of $454.8 million, up 4%, and a record $2 billion in pre-sales from its residential division. 
The group, which has a significant residential development business focused largely on the apartment market, said it had already secured 67% of its expected 2016 development earnings before interest and tax and 57% of its 2017 budget amid strong demand. 
However, chief executive Susan Lloyd Hurwitz said conditions in the buoyant Sydney market were reaching their peak and conditions were mixed across the country. She warned government measures to slow investor spending on property could have a detrimental effect on the housing market. 
Industrial property specialist, Goodman Group reported it had benefited from strong residential markets by selling $1.1 billion worth of non-core industrial land to residential developers for urban renewal projects.
Chief executive Greg Goodman said the group held land across Sydney that was in high demand for rezoning for residential uses. He expected urban renewal activities to become a significant source of capital for the group to invest in industrial developments and selective acquisitions. 
Goodman Group reported a full-year operating profit of $653 million, up 9% on the 2014 financial year. 
“This equates to over 7% growth in earnings per security, largely driven by growing development volumes, which has seen our work book increase to over $3 billion, and robust activity across our stabilised portfolio, with net property income growth of 2.5% and occupancy maintained at 96%,” Goodman said in a statement to the Australian Securities Exchange.
The group, which owns and develops industrial and logistics properties in several countries, forecast operating earnings per security would increase in fiscal 2016 by 6% to 39.4 cents. It forecast it would pay out distributions of 23.8 cents per security. 
Dexus Property Group agreed the outlook for industrial property was solid. It reported one-year returns of 11.3% in its industrial portfolio, up from 9% in 2014, although it noted that performance across sub-sectors was varied. 
Dexus, which is concentrates on the prime office property market, reported an increase of 9.3% in Funds from Operations on a per security basis in 2015 compared with the 2014 financial year. 
The group was upbeat about the outlook for the Brisbane office market, and reported Sydney and Melbourne’s markets had come back into balance. 
Vacancy levels in Sydney were expected to rise in 2016 to peak around 9.7% as new supply at Barangaroo came to market, but then fall sharply in 2017 and 2018 to around 6.5% due to a lack of new supply, significant withdrawals, and continuing improvement in demand. 
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Big property players deliver financial results

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Demand for high quality office space and improvements in occupancy levels helped Dexus Property Group lift its Funds from Operations and distributions in the 2015 financial year. 
The group, which has Australia’s largest prime office portfolio and a $9.6 billion funds management business, reported FFO increased to $544.5 million from $446.6 million a year earlier. This represented a per security increase of 9.3% to 59.5 cents. 
Distribution per security also increased 9.3% to 41.04 cents, in line with the group’s upgraded guidance provided in February. 
Chief executive Darren Steinberg said the business was in “great shape”. 
“Income from our property portfolio is underpinned by high occupancy and fixed rental increases and we expect to see strong valuation uplift across our portfolio with tightening of a further 25 to 50 basis points of [capitalisation] rates over the next 12 months as a result of recent transactional activity,” Steinberg said.
Occupancy rates across the portfolio rose to 95.3% and leasing incentives fell. 
Dexus reported stabilising markets in Sydney, where half of the office buildings it owns are located, and in Melbourne. However, vacancy rates remained well above historical averages in Brisbane and Perth. 
Despite the high vacancy rates, the group was attracted to the long-term growth prospects of Brisbane and Queensland more broadly. 
Executive general manager Ross Du Vernet said the group was excited about its acquisition of Waterfront Place in Brisbane, which it bought for $635 million, representing a 6.9% capitalisation rate. The sale settles in October 2015. 
“Brisbane office represents good relative value when we compare it to office markets nationally. Foreign capital is less active and we do think the 100 basis point discount applied to prime average capitalisation rates does overstate the risk in that market,” Du Vernet said.
Dexus issued guidance for FFO per security growth of 5.5 to 6% for the 2016 financial year with FFO from the underlying business expected to grow by 3 to 3.5%. 
It forecast distribution per security growth of 5.5 to 6%. 
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Office space demand drives Dexus Property Group results

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Property prices in Sydney are reaching their peak and sales activity in the city will drop by around 15% over the next year or two, Mirvac Group’s chief executive Susan Lloyd-Hurwitz has forecast.
Lloyd-Hurwitz made the predictions in announcing the group’s 2015 financial results, which included a record $2 billion worth of residential pre-sales, up 67% on the previous fiscal year.
“It does seem that the Sydney market is close to the point at which the strong upwards trajectory will end … We expect price growth to moderate away from the high double digit growth rate that it has been experiencing,” Lloyd-Hurwitz said.
Strong underlying demand for homes in Sydney was expected to prevent price falls. 
Lloyd-Hurwitz said the mix of buyers would more likely shift in favour of owner occupiers, away from investors who have recently been dominating the market.
Investors now account for about 40% of Mirvac’s residential sales, while owner occupiers and first home buyers made up 30% each. In the 2014 financial year, only 20% of the group’s sales were to first home buyers.
The group – which owns retail, office and industrial assets in addition to its residential development business – reported a statutory profit after tax of $609.9 million, up 36%.
Its financial results were at the top end of its guidance range, with an after-tax operating profit of $454.8 million, representing 12.3 cents per stapled security. It paid out distributions of 9.4 cents per stapled security.
Mirvac is in discussions to buy the $9 billion Investa office operation from Morgan Stanley Real Estate Investing. Lloyd-Hurwitz could not comment further on the deal aside from to say it was “a highly strategic opportunity” that was “uncertain and incomplete”.
The group forecast earnings per share for fiscal 2016 would be between 12.7 and 13 cents per stapled security and distributions would be from 9.7 to 9.9 cents per stapled security.
What Mirvac Group chief executive Susan Lloyd-Hurwitz said about other markets around the country:
<ul>
<li>“Conditions in the residential market are quite variable across the country.”</li>
<li>“In Melbourne, strong population growth will continue to support the demand with the deepest demand in the middle and outer rings.”</li>
<li>“In Brisbane, demand is steady with relatively attractive investment yields which is seeing Sydney-based investors investing into Brisbane. There hasn’t been a lot of supply in the land business so we’re seeing moderate price growth there.”</li>
<li>“In Perth, subdued economic conditions are certainly impacting the market. The affordable end of the market is supported by policy incentives.”</li>
</ul>
 
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Sydney property activity to drop by 15%: Mirvac

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Reporting season is off to a strong start for property companies listed on the Australian Securities Exchange with BWP Trust and ALE Property Trust delivering solid results and home builder AV Jennings, which reports later in the month, upgrading its profit guidance through the week. 
Listed companies included in the Australian-Real Estate Investment Trust index outperformed those in the broader market in 2015. In the year to July 31, 2015, the S&amp;P/ASX 200 A-REIT gained 21.08% while the S&amp;P/ASX 200 added 5.68%. 
BWP Trust, which owns retail properties mainly tenanted by Bunnings, was one of the first property companies to report its results this August. It reported a 13.7% increase in income, a $108.5 million increase in the valuation of its portfolio and a 9.5% increase in distributable profit. 
The trust’s managing director Michael Wedgwood said the trust was comfortable with its portfolio although admitted that competition for quality retail properties would be difficult to grow through acquisitions while the low inflation rate was keeping a lid on rental growth. 
Morningstar analysts were concerned about the outlook for BWP and said the trust looked overvalued at its recent share price of around $3.30. 
“While BWP Trust is a good-quality Australian REIT with secure earnings and a strong balance sheet, we believe the market is underestimating the drag to earnings from lower CPI, lower growth from market rent reviews and rising vacancies,” Morningstar analysts said in a note. 
Pub-owner ALE Property Trust, which also reported through the week, surprised the market by increasing its forecast distribution for 2016 to at least 20 cents. It paid out 16.85 cents a security in the 2015 financial year. 
ALE’s net profit after tax jumped to $99.4 million, from $37.2 million in 2014, due to increases in property valuations. Distributable profit fell slightly to $29.1 million from $31.2 million.
In further good news from the sector, home builder AV Jennings upgraded its guidance, alerting the market that its full-year profit before tax was likely to be “$47 million or higher”, up from its previous forecast of above $40 million. 
AV Jennings was able to complete a number of stages of projects in June, which were not previously expected to complete before the year end when adverse weather in NSW was disrupting development. 
The directors said they “remain confident of strong residential market conditions continuing”. The company expects to issue its full year results around August 20 and the directors will give further commentary on their expectations for the market then. 
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Listed property companies delivering strong results 

<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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