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Investor demand for prime retail property lifted valuations in BWP Trust’s portfolio by $108.5 million in the 2015 financial year as the trust reported a strong full-year result. 
BWP Trust, which owns retail properties mainly tenanted by Bunnings, reported a full-year net profit of $210.1 million, up from $149.1 million in 2014. Its income increased by 13.7% to $144.9 million.
“Our objective is to keep building on the current portfolio, and that’s from a pretty solid base,” BWP’s managing director Michael Wedgwood said in announcing the result. 
The trust bought one Bunnings Warehouse development site at Australind, Western Australia, in 2015. It completed the development there, along with six other developments. 
Wedgwood said it would be difficult for the trust to grow by acquiring additional properties in the near term as low interest rates were encouraging investors to look to property for yield, pushing capitalisation rates lower.
“It’s certainly a sellers’ market,” he said. 
The trust plans to divest a property in Cairns after Bunnings relocated to a nearby site. It sold six properties in 2015.
“We will continue to review the portfolio regularly and assess all properties. If it makes sense to over time, we will look to divest properties but it’s not top priority at the moment,” Wedgwood said. 
The portfolio has a 100% occupancy rate. Its weighted average lease expiry was 6.6 years as at June 30, 2015. 
Low inflation limited rental growth to 2.6%, compared with 4% for the previous year. Around 65% of the trust’s rental income is subject to CPI increases. 
BWP Trust was one of the strongest performing shares in the property sector during July, when the A-RIET index outperformed the broader market.
It paid a final distribution of 8.17 cents, making a total of 15.84 cents for the full year, up 7.7% on the previous year. It forecast distribution growth of about 5% for the 2016 financial year. 
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Prime retail property demand lifts BWP Trust portfolio

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Interest rates are set to stay low for some time but uncertainty remains over which way they’ll move over the medium to longer term.
Variable rates are popular with borrowers. More than four out of five loans written nationally in February through Mortgage Choice had a variable rate, the broker’s latest data shows.
“In December 2013, fixed rate demand peaked at 33.06%, while today this type of home loan accounts for just 19.56% of all loans written,” Mortgage Choice spokesperson Jessica Darnbrough says.
“While fixed rate pricing has dropped dramatically across the board in recent months, it seems borrowers are more comfortable taking out a variable rate mortgage.”
For people who want some certainty and protection from rate increases but don’t want to miss out completely if rates fall further, split rate loans offer an alternative.
Split rate home loans allow borrowers to fix the interest rate on a portion of the loan and leave the rest variable.
It’s difficult to tell exactly how many people are taking out split loans because most mortgage products offer the option lenders don’t report the figures separately. Anecdotally, split loans do seem to be gaining popularity.
Michelle Hutchison, money expert at comparison website <a href="https://finder.com.au/" target="_blank">Finder.com.au</a> says it wouldn't be surprising to see more borrowers choosing to split their home loan as there’s increasing uncertainty about the direction of interest rate movements.
“The <a href="https://finder.com.au/" target="_blank">Finder.com.au</a> Reserve Bank Survey shows mixed results with which direction the cash rate will move this year. Another indicator is that most lenders have not followed every cash rate movement throughout this downward cycle over the past three and a half years,” Hutchison says.
“Borrowers may not know which option is better so hedging your bets and splitting your loan with part fixed and part variable divides the risk.”
The benefit of splitting a home loan is that it combines the features of a fixed and variable rate loan. The variable portion offers flexibility, allowing you to participate in subsequent interest rate cuts, while typically being able to make extra repayments or redraw from the mortgage. The fixed portion is usually more restrictive but does lock in the interest rate shielding you from increases in the required repayments if rates rise.
It’s common to fix 50% of the loan but most lenders will allow you to choose whatever combination of fixed and variable rates you want.
Many lenders will allow borrowers to split rates using their existing mortgage without having to refinance. Check with your lender on their policies.
As with all types of loans, interest rates vary between lenders.
One example is from Homeloans.com.au which is offering a split rate mortgage where up to half of the loan is split with a comparison rate of 4.72% on the variable component and 4.72% on the fixed rate for a three-year term. For a one-year fixed rate component the rate is 4.74% and for five years it’s 4.84%.
Using those rates as an example, let’s say you have a $300,000 loan over 30 years. You fix half of the loan over three years using the mortgage product above and leave the other half on the variable rate.
Initially, the monthly repayment will be $1,560, comprising of $780 for the fixed component and $780 for the variable component (see table below). Since the fixed and variable rates are the same in this example, the cost is the same as for a loan with a 100% variable rate.
If the RBA cuts interest rates by 0.25 percentage points, and the lender passes on the rate cut in full to its variable rate loans, the interest rate on the variable component will drop to 4.47% but the fixed rate will remain at 4.72%. The monthly repayment will drop to $1,537. However, if you had a completely variable rate loan, the monthly repayment would be $22* less, at $1,515.
Similarly, if the RBA lifted rates by 0.25 percentage points and the lender passed on the increase, monthly repayments on the split rate loan would rise to $1,582, while monthly repayments on a loan with 100% variable rate would go up by $23* more to $1,605.
While $20-something a month doesn’t make a huge difference to most budgets, if the economy picks up over the next three years and interest rates rise more dramatically, the saving will become more significant.
Looking back three years ago to April 2012, the official cash rate was 4.25%, a full 2 percentage points above what it is today. It’s possible that over the next three years conditions will improve enough for the official rate to be lifted again back 4.25%.
Assuming lenders passed on the rate rises, the variable rate on the mortgage in the example above would increase to 6.72%, while the fixed rate would of course remain at 4.72%. Monthly repayments in this instance would rise to $1,750. In contrast, the monthly repayments on a mortgage with a 100% variable interest rate would be $1,940. That $190 a month would make a sizeable difference to most budgets.
Monthly repayments on a $300,000 loan over 30 years 
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="97">
 
</td>
<td valign="top" width="105">
Interest on fixed rate component (50%)
</td>
<td valign="top" width="105">
Interest on variable rate component (50%)
</td>
<td valign="top" width="104">
Total repayment
</td>
<td valign="top" width="105">
Repayment for 100% variable rate loan
</td>
</tr>
<tr>
<td valign="top" width="97">
Variable rate: 4.72%
</td>
<td valign="top" width="105">
$780
</td>
<td valign="top" width="105">
$780
</td>
<td valign="top" width="104">
$1560
</td>
<td valign="top" width="105">
$1560
</td>
</tr>
<tr>
<td valign="top" width="97">
Variable rate: 4.47%
</td>
<td valign="top" width="105">
$780
</td>
<td valign="top" width="105">
$757
</td>
<td valign="top" width="104">
$1537
</td>
<td valign="top" width="105">
$1515
</td>
</tr>
<tr>
<td valign="top" width="97">
Variable rate: 4.97%
</td>
<td valign="top" width="105">
$780
</td>
<td valign="top" width="105">
$802
</td>
<td valign="top" width="104">
$1582
</td>
<td valign="top" width="105">
$1605
</td>
</tr>
<tr>
<td valign="top" width="97">
Variable rate: 6.72%
</td>
<td valign="top" width="105">
$780
</td>
<td valign="top" width="105">
$970
</td>
<td valign="top" width="104">
$1750
</td>
<td valign="top" width="105">
$1940
</td>
</tr>
</tbody></table>
Source: Property Observer using Homeloans.com.au split loan and variable rate loan calculators.
*Note: the difference between these figures is due to rounding throughout the example. 
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Should you consider a split loan?

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Mortgage settlement activity increased by 20% last year as home owners took advantage of low interest rates to refinance their loans and upgrade their properties.
Key players in the home lending industry who participated in the Deloitte Australian Mortgage Report for 2015, which made that finding, unanimously expected refinancing and upgrading activity to continue be the primary driver of the market over the next three years.
The panellists forecast loan settlements would increase by a further 6 to 10% in 2015. Deloitte financial services lead Kevin Nixon said the record $33.2 billion of home finance commitments in December 2014 would boost the industry’s confidence in the prediction.
Despite the strong increase in settlements, the fact that many new loans refinanced existing mortgages meant overall credit growth was more constrained at around 7%.
“Credit growth over recent years has been lower than historical levels,” said Macquarie Bank head of intermediary banking Frank Ganis, who participated on the report’s panel. “Lending growth has been in refinances, with new lending at lower levels of around 3 to 4%. The market has also seen an increase in demand by investors.”
Local investors would be the second biggest borrowers in 2015, the panellists believed, although they commented that first home buyers who bought for investment could be concealed within that category.
“It is a worry as there is a hidden amount of first home investors that don’t get captured as first home buyers when you look at the official statistics,” ANZ’s Bill Armour said in the panel discussion. “The risk is that they classify anyone who has said they’re an investor as a non-first home buyer and as such are somewhat demonised as driving house prices up, but actually they are just savvy young people who have figured out a way to enter the market.”
The research also revealed that buyers were typically better informed about their mortgage options than they had been in the past.
click to open in new window:
<a href="/images/2015/03/27/zoe-mar-27-one.jpg" target="_blank"><img src="/images/2015/03/27/zoe-mar-27-one.jpg" alt=""></a>
While borrowers were still most concerned with interest rates when they were choosing a mortgage, product features such as repayment flexibility and switching, online access to accounts and applications, and information and customer service were also important.
“[Lenders] don’t have to be the cheapest but [they] do have to be competitive and be seen to go the extra mile for the consumer,” said Deloitte financial services partner James Hickey, who lead the research.
Mortgage brokers were expected to increase in importance, although panel participants thought the role of brokers would change as technology evolved.
“As direct online applications start to emerge you will see some customers use that channel, which is good for choice,” said panellist, ME Bank’s Angela Middleton. “But there will always be an important role for brokers to have a face to face with customers, particularly customers who wish to better understand the product and get more information about what is available and what’s best for them.”
Panellists commented that few people felt comfortable enough with mortgage borrowing that they were prepared to go through the entire process online without assistance.
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Low interest rates prompts 20% rise in mortgage settlements: Deloitte

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City of Sydney Council has refused requests for large tracts of industrial land in the city’s inner south to be rezoned for residential development.
The Council’s Central Sydney Planning Committee voted last Thursday (26 March) to preserve most of the area, called the South Sydney Employment Lands, for mainly business uses.
A report put on public exhibition mid-last year discussing proposed changes to the area’s zoning received 59 submissions. Many argued that residential development should be allowed more broadly than proposed on the 265 hectare area, which lies mainly in the suburbs of Rosebery and Alexandria in Sydney’s inner south.
“Most of these submissions come from landowners in the investigation areas … however, there are also some submissions from landowners in the proposed B6 Enterprise Corridor zone who also see a role for residential on their land,” the report that considered the submissions noted.
The latest report’s review and analysis determined that, in general, residential development should be banned on those sites.
There will be a limited number of exceptions in the so-called investigation areas around Botany Road south of Beaconsfield and between McEvoy Street and Bowden Street near Green Square station.
Council accepted the report’s recommendations to allow affordable housing and consider private residential developments on a site-by-site basis in those areas. One condition on any private residential development would be that developers would have to share half of any monetary benefit they received when rezoning increased the value of their land with Council to provide services such as infrastructure and affordable housing.
Residential development will be banned elsewhere in the South Sydney employment lands.
<img src="/images/2015/03/31/zoe-mar-31-one.jpg" alt="">
Source: City of Sydney
Noise and other environmental factors made residential uses incompatible with existing industrial operations in the area, the report said.
It argued that residential developments were more profitable for land owners, which would discourage them from keeping their land for business uses if the zoning changed.
“Where sites are being developed for residential uses there can be significant resistance to providing even a small amount of commercial or retail space in a development. This is because of markedly higher returns that developers receive from developing a residential product as opposed to a commercial product,” the report said.
“Importantly, once this land is developed for residential purposes and subdivided it can almost never be converted for commercial uses in the future. This puts the burden on government to be cautious about allowing residential uses on those lands that may be needed for productive purposes in the future.”
Many former industrial sites around the country are being redeveloped as apartments and private housing, <a href="/expert-insights/building/rezoning-from-industrial-yielding-fresh-residential-infill-housing">where local government policies are encouraging urban renewal</a>.
In neighbouring Green Square, another previously industrial area which has been rezoned to allow residential development, few sites are now wholly dedicated to business.
“In the southern employment lands, permitting residential uses would almost certainly have a similar impact that it has had in the Green Square urban renewal area … Restricting residential development is essential to ensuring employment uses can continue to locate in the area,” the report said.
It noted that the City of Sydney was ahead of its targets for housing development so there was “no clear or urgent argument for why strategically important employment lands should be immediately released in favour of residential development”.
In the greater Sydney area, 8597 new housing lots were released for development in 2014, up from 6690 in 2013, the<a href="https://www.udia.com.au/reports-and-submissions/reports-submissions-2015" target="_blank"> latest UDIA State of the Land report</a> showed.
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City of Sydney refuses inner south residential rezoning requests

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The Urban Development Institute of Australia has called on government to remove stamp duty on property and support foreign investment into residential real estate, which it says will help boost the supply of land for development and improve housing affordability.
The calls follow the release of the UDIA’s latest State of the Land Report which showed the supply of new development land jumped by 30.8% in 2014 to 50,150 new lots, up from 38,350 lots released in 2013.
UDIA National President Cameron Shephard welcomed the increase but warned governments against complacency on land supply.
“Nationally, Australia still suffers from a marked undersupply of new housing stock, caused by inadequate investment in urban infrastructure, slow planning and approvals systems, and high taxes and charges on new housing supply,” Shephard said.
“Even now, we’re still not building enough new homes to meet underlying demand.”
The UDIA has urged the federal government to:
<ul>
<li>Assist state governments with replacing stamp duty on property with other forms of taxation.</li>
<li>Provide additional funding for investment in new urban infrastructure.  </li>
<li>Link funding for state governments to their performance on key land supply measures. </li>
<li>Cease plans to shift the cost of providing the National Broadband Network to new home buyers through up front connection, network and backhaul charges.  </li>
<li>Continue to encourage foreign investment into residential real estate, by supporting Australia’s existing foreign investment policy framework.</li>
</ul>
It has also called for state and local governments to:
<ul>
<li>Reform their planning systems to increase the supply of urban land and reduce delays and uncertainty associated with zoning, planning and approvals processes.  </li>
<li>Reduce upfront charges and levies on new housing and to instead recover costs over long time frames.</li>
</ul>
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Removing stamp duty, supporting foreign investment will boost affordability: UDIA

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Commercial property in West Perth, an area dominated by resource-related businesses, is in the doldrums as the downturn in mining investment hits the market.
Vacancy rates in the suburb climbed to 10.9% in January 2015 from 9.2% in July 2014, according to the Property Council of Australia.
Colliers International estimates that vacancy rate equates to 46,117 square metres of unoccupied commercial space in West Perth at the beginning of 2015.
<img src="/images/2015/03/25/perth-mar-25-four.jpg" alt="">
<img src="/images/2015/03/25/perth-mar-25-five.jpg" alt="">
A quick search on realcommercial.com.au of for lease listings in the area reveals more than 950 offices available. Numerous listings are advertising rent cuts and attractive lease terms.
Two properties on Hay Street, one at 1141 and the other at 1133, are advertising “massive” rent reductions, asking for rents that equate to just $195/sqm. The advertisements for the 317sqm and 460sqm offices declare: “ALL OFFERS CONSIDERED. OWNERS WANT THE PROPERTY LEASED YESTERDAY. YOU WILL NOT BE DISSAPOINTED WITH THE LEASE TERMS THAT ARE ON OFFER”.
Another property at 8 Parliament Place is available now asking just $150/sqm for a fully fitted out 399sqm office on a sub-lease.
Those asking rents represent a dramatic drop compared with 2011 and 2012 levels.
Average face rents for full-floor A Grade premises in West Perth have fallen to between $400/sqm and $475/sqm from around $550/sqm in late 2011 to early 2012, according to Colliers’s analysis. Offices in B Grade buildings are leasing for $350/sqm to $400/sqm, down from almost $500/sqm three years ago.
Savills’ Spotlight on West Perth, released in February, says net effective rents – which take into account incentives such as rent-free periods and assistance with fit-out costs – are even lower.
<img src="/images/2015/03/25/perth-mar-25-two.jpg" alt="">
<img src="/images/2015/03/25/perth-mar-25-one.jpg" alt="">
Incentives in the West Perth office rental market sit at around 30%, with landlords using a range of tactics to attract tenants in the slowing market.
“Incentives [are] now at such a level that the majority of fit-out costs can be covered,” Savills notes in its report.
A 463sqm office suite in Ventnor Avenue advertised for lease on realcommercial.com.au is offering a year’s free rent.
The average net effective rent for an A Grade property was $289/sqm in December 2014, down 26% compared with December 2013, Savills’ research shows. Net effective rents in A Grade buildings range from $254/sqm to $333/sqm net, and in secondary grade buildings from $210/sqm to $245/sqm net.
<img src="/images/2015/03/25/perth-mar-25-three.jpg" alt="">
The lower rents and higher incentives are being offered in response to weakening demand. More space is being vacated in West Perth than is being filled, with net absorption, which measures this difference falling by 4310sqm in the 12 months to December 2014, Savills reported.
Leasing activity was down by 50% in the 2014 calendar year compared with the year before. Just 9479sqm of space was leased, compared with the annual five-year average for the suburb of almost 20,000sqm.
 
Those tenants who have been leasing offices have taking advantage of the soft market to upgrade their premises. As such, vacancy rates are much higher in secondary properties in the area than in A Grade premises.
The vacancy rate for secondary properties, which make up about two thirds of the stock in West Perth, was 12.9% - almost double that of A Grade premises in the area which had a 6.8% vacancy rate, Savills reports. B Grade properties have the highest vacancy rate at 13.4%. 
Almost two thirds of the space that was leased was taken up by mining and utilities industries, with finance and insurance companies taking up the balance.
Savills expects vacancy rates in West Perth to rise further as mining investment continues to slow. It notes, however, that a lack of new developments planned and under construction in the area will lower vacancy rates in the medium to longer term.
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Mining downturn hits West Perth commercial landlords

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New home buyers are paying more for less with lot sizes falling and median prices rising around the country, a report from the Urban Development Institute of Australia (UDIA) has revealed.
The median size for a new lot nationally fell by 3.6% over 2014 while the average price for a new lot in Australia’s five largest capitals rose by 4.2%, according to the latest UDIA State of the Land Report.
The seventh annual edition of the report noted an ongoing trend of falling lot sizes over recent years. It put the declines down to limited land supply, the high cost of land and affordability constraints felt by new home buyers.
At 474 square metres, the median size of a new lot is now 11.4% smaller than in 2009.
Prices for land in the five biggest cities are up by 22.5% since 2009 with the median price for a new lot now at $246,300.
Nationally, new home buyers paid an average of $527 per square metre in 2014, up 9.5% from the previous year, and up 40% since 2009.
The research, conducted in partnership with Charter Keck Cramer and Research4 using data from the National Land Survey Program, also showed a marked increase in the number of new lots released in 2014 compared with the previous year.
Melbourne saw a 60% increase in lot releases, the largest rise of the capital cities, with 4791 more new lots offered in 2014 than in 2013.
The number of new lots released in South East Queensland rose by 55% compared with 2013.
The strong lift in supply in both Melbourne and South East Queensland constrained price rises in the areas, despite strong buyer demand, the report showed.
In Sydney, prices continued to rise despite a 29% increase in the number of new lots released. The UDIA noted that new supply had consistently been unable to keep up with in demand in the city.
As demand outstripped supply, lot prices in Sydney rose by 5% in 2014. Prices have risen by 15% since 2012.
Lot sizes in Sydney have also shrunk the most. The average lot in Sydney was 450 square metres in 2014, down by 11.6% compared with the year before when the average lot was 509 square metres.
In line with rising prices and falling lot sizes, land prices per square metre in Sydney increased by the largest margin of the capital cities. Price per square metre rose by 18.7% from $636 to $755.
New lot prices in Perth rose by 9.4% spurred by demand. The report noted population growth in Perth continued to be the strongest of the states despite having slowed as mining investment recedes.
Prices were flat in Adelaide where the market remains depressed. 
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New home buyers paying more for less: UDIA

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Residential developments are popping up on former commercial and industrial sites in the states’ capital cities as governments rezone land to encourage higher density living close to urban centres.
Investec Australia <a href="https://lifemoreinteresting.com.au/vision/" target="_blank">launched a residential project</a> in Adelaide’s inner city suburb of Bowden at the weekend on the former site of manufacturer Clipsal Corporation’s production facility.
Nigel Brophy, a director of Investec’s Infrastructure Finance &amp; Investment business, said Adelaide’s property market was different from the markets in the other eastern states.
“I wouldn’t say the [Adelaide] market is slow,” Brophy said. “It’s steady and always consistent … It doesn’t have the high peaks but it also has not had the deep troughs. It has always been steadier.
“When the east coast markets look hot, Adelaide might look moderate but it doesn’t fall off those peaks. It has always had relatively balanced supply and demand.”
That more moderate pace meant developers needed to take note of what Adelaide residents want in a property, such as access to parkland and convenience to transport, Brophy added.
“We also have to have regard for the fact that the market is small so we have to make sure the project is in proportion to the size of the market,” he said.
The first release includes 20 two-bedroom apartments, called ‘B’ apartments after the New York B-Line which stretches from Brooklyn’s Brighton Beach to the Bronx. It is planned for completion in early 2016.
Investec is working with the South Australian Government’s Renewal SA on the project, which is part of a wider redevelopment of the former Clipsal site.
The six storey ‘B’ apartments building is the tallest development released in Bowden to date.
Brophy said he expected young people looking for convenience and people who wanted to downsize their homes to a property with security and good access to the city to be attracted to the apartments.
The apartments are opposite Kevin Taylor Park, overlooking the future Bowden Town Square and close to public transport.
Bowden is less than 4 kilometres from Adelaide’s CBD and close to park land, making the former industrial zone a prime candidate for renewal.
Similar trends are occurring in Melbourne and Sydney where rising land values in inner city locations are encouraging developers to convert commercial premises into residential property.
CBRE is marketing a warehouse property in Brunswick in Melbourne’s inner north as an infill residential development site.
That site, zoned for general residential, at 31-37 Stewart St and 12-24 Hardy St spans approximately 8,760 square metres of land over five titles with multiple street frontages. The existing property is multi-tenanted on short term leases.
“In recent years, Brunswick has supported dozens of significant and successfully completed, or under construction medium and high density residential projects, underpinned by the close Melbourne CBD proximity, established public transport links, vast amenity and lifestyle attractions on Lygon St and Sydney Rd retail strips,” said CBRE’s David Minty, who is marketing the site along with Scott Orchard and Julian White.
Orchard said developers in Melbourne’s inner north, including Collingwood, Fitzroy, Northcote and Brunswick, were experiencing strong site sales and record prices, and had strong confidence in the pre-sale market for high and medium density residential accommodation.
​ In August, <a href="/expert-insights/buying/r-corp-makes-west-brunswick-acquisition-with-residential-plans">R.Corp acquired a textiles factory site in West Brunswick</a> with plans to develop the site for residential.<a href="/expert-insights/buying/r-corp-makes-west-brunswick-acquisition-with-residential-plans"> </a>
In Sydney, several office buildings around the city <a href="https://www.smh.com.au/business/property/cbd-office-space-shrinks-as-resi-rises-20150221-13jqh8" target="_blank">are being redeveloped as residences</a>.
The City of Sydney council<a href="/expert-insights/building/city-of-sydney-planning-to-rezone-swathes-of-southern-industrial-areas"> is consulting on proposals</a> to rezone large tracts of land just to the south of the city to allow residential developments in areas that have traditionally been dominated by industrial property.
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Rezoning from industrial yielding fresh residential infill housing

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Unit owners in Queensland will have to wait until the second half of 2015 to learn the recommendations of a contentious review into strata by-laws, debt recovery and scheme termination.
Before the Queensland state election in January, <a href="https://www.goldcoastbulletin.com.au/news/queensland-state-election-2015/pollies-face-barrage-of-questions-on-body-corp-laws-as-angry-unit-owners-demand-answers/story-fnr8vz6s-1227200299598" target="_blank">unit owners vented their frustration that the timing of the review</a> – which closed for consultation on 30 January, the day before the election – meant its contents could not be made into an election issue.
The options paper called for comments on by-laws such as parking, pets in apartments, smoking on balconies and overcrowding, as well as how bodies corporate should be allowed to recover debt and terminate their schemes.
The Unit Owners Association of Queensland criticised the review for failing to consider 25-year management rights contracts awarded by developers.
Strata Community Australia president Simon Barnard warned against any knee-jerk reactions to proposals put forward in the options paper to ban unit owners from smoking on their balconies.
Over 300 submissions were received in response to the paper, a spokesperson for the Queensland Office of Fair Trading told Property Observer.
Queensland University of Technology’s Commercial and Property Law Research Centre, which was engaged by the Newman government in 2013 to conduct the review, is now considering the submissions.
It will release a report based on its analysis in the second half of 2015. The submissions will also be made public at that time, provided the submitter has not specifically requested confidentiality, the spokesperson said.
The review aims to cut red tape, regulation and property law duplication to help streamline the way Queenslanders buy, sell and manage property.
Two additional consultation papers into Queensland’s body corporate laws are under development and due for release later in the year.
The second paper will examine administrative and procedural issues including general meetings, the body corporate committee, and dispute resolution.
A third paper will consider the possibility of bringing community title schemes, which are now regulated separately from strata schemes, under the Body Corporate and Community Management Act 1997.
The body corporate review is part of a larger examination of Queensland’s property laws that QUT is conducting. In early 2014, the broader review investigated seller disclosures in Queensland and setting and adjusting lot entitlements for community title schemes. 
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Queensland strata law review recommendations due later this year

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Buoyant residential property markets helped Australia’s stock exchange-listed home builders deliver strong interim results in the first half of the financial year, February’s reporting season revealed.
The largest listed residential developer, Stockland Property Group, reported a 73% improvement in its home building business in the first half of 2015, which lifted group profit by 55.1% to $462 million.
Stockland chief executive Mark Steinert said the residential business was bolstered by improved market conditions and strategies the company had put in place to increase speed to market and broaden its customer target markets.
Improving market conditions and higher production levels also helped AV Jennings increase its profit. The company reported $11.9 million net profit after tax, up 42.1% compared with the same period in 2014. Chief executive Peter Summers said residential markets in Sydney, Brisbane and Melbourne were stable to strong, while South Australia’s market was more subdued.
Mirvac chief executive Susan Lloyd-Hurwitz forecast continuing growth in residential property prices with Sydney in particular supported by an “entrenched undersupply” of homes. Mirvac, which like Stockland develops and invests in both residential and commercial property, reported a 13.4% increase in profit to $279 million, with operating profit after tax rising by 15.5% to $231.2 million compared with the half to December 2013.
Analysts at Morningstar said that while surging residential prices and volumes have driven earnings for residential developers, they believe the sub-sector is operating close to peak profitability.
“The significant improvement in mortgage affordability has driven a spike in household approvals. Part of this increase will alleviate pent-up demand in some markets (mainly Sydney) but we believe a material part of the increase reflects the “bringing forward” of dwelling purchase decisions,” the analysts noted.
“The issue for developers is any rise in interest rates, which doesn’t appear likely in the near term, will result in a double hit to margins because of lower volumes and softer prices. As in past down cycles, the developers who add to their land banks late in the cycle are most at risk.”
Other listed residential developers including Peet and Villa World also boosted profits, while Cedar Woods forecast record performance for its full year despite a weaker first half.
Villa World reported a $13 million first-half profit, up from $7.6 million in the prior corresponding period and predicted its full-year before-tax profit would hit $28.5 million.
Peet Group reported a first-half profit of $13.2 million, 30% higher than the same period of 2014. Chief executive Brendan Gore forecast continued improvement in the second half.
“The Australian housing market fundamentals remain positive with a sustained period of record low interest rates, low inflation rate and continued population growth,” Gore said in a statement to the ASX. “However, the factors putting pressure on official cash rates – weaker jobs market, slow wages growth, and lower commodity prices – are also having some impact on consumer and business confidence, particularly in Western Australia.”
Another Western Australian developer, Cedar Woods Properties, reported a $9.1 million first-half profit, 55.8% lower than in the previous first-half, but it also issued profit guidance for the full-year of $41 million, which would be a record for the company.
Cedar Woods said strong pre-sales and a solid delivery program would help it achieve its forecast result, assuming markets remained sound.
Finbar, which is also based in Western Australia, reported a worse result than in the first half of 2014. Managing director Darren Pateman said the $11 million first-half profit was due to project completion timing not working in the company’s favour but said it was still expecting a solid full financial year with the completion of other projects anticipated in the second half.
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Buoyant market helps residential REITs deliver strong February 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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