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At this time of year, most people are focused more on shopping for gifts than on shopping for a home loan.
Fewer mortgages are sold during December and January than at other times of the year. The property market slows down and so does refinancing activity. Australian Bureau of Statistics data shows a regular dip each January in the value of mortgages sold for refinancing (see chart).
<img src="/images/2014/12/02/rba-graph-dec-2-two.jpg" alt="">
Many people stretch their budgets during the festive season and reviewing the home loan takes a back seat to spending.
Commonwealth Bank research released last month suggests more than half of people overspend during the holidays on gifts, travel, entertaining and shopping in the sales. While 57% set a budget for their spending between 1 December and 6 January, fewer than one in five stick to their plan, the research found.
For mortgage holders who are disciplined with their finances and prepared to set time aside to investigate their refinancing options, there are some attractive home loans available.
The official cash rate has remained steady at 2.5% for more than 18 months now and most economists expect rates to stay low throughout 2015.
Fewer than one in four economists surveyed by Finder.com.au in November expect rates to move before the middle of next year. Some 70% believe rates will change in the latter part of 2015 and a minority expect no increase until 2016. Three of the 37 economists surveyed think the next move will be down.
Borrowers have benefitted this year not only from the low interest rate environment but also from strong competition between lenders.
<a href="https://www.heritage.com.au/" target="_blank">Heritage Bank</a> cut its mortgage rate in late November and is now offering a variable mortgage with a comparison rate of 4.4% to people refinancing with a loan to value ratio of up to 80%. The bank is also waiving its $600 application fee for new loans taken out before Christmas.
Other lenders, such as loans.com.au, Australian Financial, MortgageView and Ubank, are also offering variable mortgages with comparison rates below 4.6%.
Fixed rates are available at competitive levels, such as the one and two-year fixed rate mortgage that Loans.com.au is offering at 4.57% and 4.59%, respectively.
Earlier in the year several lenders began offering non-rate incentives to lure borrowers to their products.
Many home owners have been taking advantage of the deals available. The value of mortgages refinanced rose sharply through 2014, ABS data shows. In July, the peak month for refinancing activity, almost $5.6 billion worth of mortgages were refinanced.
Mortgage holders have also been prudently paying down their debts. The Reserve Bank of Australia has noted that mortgage holders are, in aggregate, months ahead on their repayments, either as a result of paying early or holding balances in offset accounts.
Most households have manageable debt levels, with eight in 10 able to add to their savings or at least make ends meet, the St George-Melbourne Institute Household Financial Conditions Report released in late October showed. 
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Festive period can be a great time for loan shopping

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Australian mortgage providers had $1.25 trillion worth of housing loans on their books at the end of September, up 9% compared with the year before, according to the latest data from the Australian Prudential Regulation Authority.
This included $85.4 billion of new loans issued in the September quarter, which was 11.9% more than the value of new mortgages issued in the same quarter of 2013.
Major banks held just over $1 trillion of the residential loans, having lifted the size of their mortgage books by 8.7% over the year.
Other domestic banks increased their total loan books by 15% to $135.3 billion at the end of September. APRA noted that this jump in mortgages was partly due to the conversion of eight credit unions and one building society to banks during the year. However, separate research by mortgage broking network AFG, the AFG quarterly Competition Index, shows non-major banks did increase their market share of people who refinanced their mortgages.
Foreign subsidiary banks held $54.9 billion worth of residential mortgages, up 5.8% from September 30, 2013, APRA reported. 
In total, there were 5.2 million housing loans outstanding at the end of September, APRA’s data shows. The average balance was $239,000, up from $232,000 in September 2013.
Two thirds of the loans outstanding – $825 billion worth – were to owner occupiers. This was 7.6% more than at the same time in 2013. The remaining $425.3 billion worth of home loans were to investors, an increase of 11.9% compared with the year before.
Australian lenders also had $225.5 billion in commercial property loans at the end of September 2014, down by 0.4% from June 30, 2014 but 6.4% more than in September 2013, APRA figures show.
Commercial property located within Australia accounted for 83.1% of all commercial property exposures. Most of the properties were offices and retail property, which represented 30.3% and 22.4% of all exposures respectively.
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Australian lenders holding 9% more home loans than a year ago

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Reactions to the federal Parliament’s report into foreign investment in real estate have been mixed with some welcoming its recommendations and others claiming it has missed an opportunity to improve housing affordability.
The report by the House of Representatives Standing Committee on Economics <a href="/news/no-surprises-in-kelly-odwyers-12-firb-report-recommendations">made 12 recommendations</a> centred on better enforcing existing regulations, increasing the penalties for non-compliance and improving access to data on foreign investment.
The Property Council of Australia, the Housing Industry Association and The Urban Development Institute of Australia agreed the recommendations would support housing activity in Australia, boosting the economy and adding to the supply of homes.
“We welcome foreign investment in residential real estate as it provides up to 35% of a new development,” Nick Proud, executive director of the Residential Development Council at the PCA said.
HIA chief executive, industry policy and media Graham Wolfe said foreign investment through pre-sales in multi-unit developments could be crucial to ensuring projects came to market.
“[This] obviously benefits potential domestic buyers as well as renters, through more choice and competition,” he said.
But buyers’ agent Patrick Bright, director of EPS Property Search, said he was disappointed that stronger action had not been taken to curb foreign investment which he said was putting upward pressure on property prices.
“To be frank I am shocked that the government is going to continue to put the desires of wealthy foreigners ahead of its own citizens and ahead of the best long-term interests of the country. The government is also clearly putting the interests of developers ahead of every day Australians,” he said.
Bright’s concerns echo views put forward in private submissions to the inquiry. For example, Jennifer Jaeger said in a submission: “I do not believe that continued overseas investment in Australian residential real estate provides ongoing benefits to Australian residents who are finding themselves “priced out” of purchase and rental booms.”
A submission from First National Real Estate noted that property prices in suburbs that attracted Asian investors had risen more quickly than prices in neighbouring areas that were less attractive to foreign buyers. It gave the examples of Carlingford compared with North Rocks, Coogee versus Randwick and Marrickville compared with Arncliffe/Rockdale in Sydney.
Under existing legislation, foreign nationals can only buy newly constructed dwellings and are prohibited from buying established homes. Temporary residents can buy one established dwelling as their residence but they must sell within three months of leaving the country.
However, the report noted some foreign buyers may be breaking the rules. It was highly critical of the Foreign Investment Review Board’s collection of data and enforcement of existing regulations, saying there had been a “significant failure of leadership at FIRB”. It recommended a number of changes to strengthen enforcement and toughen penalties for non-compliance.
UDIA National President Cameron Shephard said foreign investors that weren’t complying with the rules gave a bad name to those that did the right thing.
“Any changes to the administration of the rules, such as the introduction of an application fee, will have to be very carefully considered, so that they do not unnecessarily deter law abiding investors,” he said.
Nyko Property estate agent Bill Nikolouzakis said the $1,500 fee that was recommended by the report, and estimated to generate revenue of $158.7 million over four years, would be too small to deter foreign buyers and could be put towards better resourcing the FIRB.
“This would continue to allow us to attract foreign investors … while giving FIRB the resources to ensure they are identifying and penalising foreign investors who contravene the law,” Nikolouzakis said.
“Putting a process in place to help identify the foreign investors doing the wrong thing and the individuals helping them is the key. Further, the penalty must be enough of a deterrent to make an effect. If no one is being caught or the deterrent is not sufficient, it will not have the desired outcome,” he said.
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Mixed reactions to federal foreign buyer inquiry recommendations

Retail rents on Sydney&rsquo;s Pitt Street Mall ranked as the fifth highest in the world in 2014, up from eighth most expensive the year before, a report from Cushman and Wakefield has found.

The report, Main Streets Across the World 2014/15,&nbsp;showed retail rents on the premier shopping strip grew by 25% over the year.

Pitt Street&#39;s increase was the second largest in the Asia-Pacific region after rents for retail space in Beijing&#39;s CBD, which rose by 26.4%.

In San Fransisco&#39;s Union Square, retail rents soared 30%, while in Istanbul&#39;s Istiklal Street, shop rents increased by 27.3%.

The report attributed the rapid growth of rents on Pitt Street Mall to international retailers signing new leases and taking up larger space through the amalgamation of smaller stores, which reduced the supply of space.

It noted there was a global trend for major retail brands to experiment with design, layout, content and services in their flagship stores. This was expected to remain a key factor influencing growth in major retail centres in the coming year.

Market activity was expected to improve in the next 12 months, despite uncertain economic outlooks for parts of the world.

&ldquo;Premier shopping locations will remain in high demand as retailers are keen to establish a presence and raise their brand profile, but supply as ever will remain tight,&rdquo; the report noted.

The world&rsquo;s most costly retail space was along New York&#39;s Upper 5th Avenue, where rents were US$3,500 per square foot per year.

Hong Kong&rsquo;s Causeway Bay shopping district, the Champs Elysees in Paris and London&#39;s New Bond Street ranked second, third and fourth, respectively.

Rents on Pitt Street Mall cost US$1,016 per square foot, the report found, making retail space along the mall more costly than prime shopping areas in Milan&#39;s Via Montenapoleone and Tokyo&#39;s Ginza district.

Retail rent rises in Australia were confined mainly to Pitt Street Mall and high performing regional shopping centres, where rents rose by 7.8% to A$2,200 per square metre per year, the report found

Landlords of premises in other prime retail strips in Australia have not shared the fortunes of Pitt Street Mall. No rental growth was reported for shops on Rundle Mall in Adelaide, Queen Street Mall in Brisbane, Bourke Street in Melbourne or in Perth&#39;s CBD.

Retail rents along Sydney&rsquo;s Oxford Street continued to lag. Cushman and Wakefield&rsquo;s report showed the cost to rent on the once-fashionable retail strip was A$1,050 per square metre per year, compared with A$12,500 per square metre per year on Pitt Street Mall.

The top 10 most expensive retail locations in each country:

Rent price is per square foot per year.&nbsp;Change in rental rates is compared to 2013 rates

<ol>
	<li>USA, New York, Upper Fifth Avenue 
	 
	Rent price: US$3,500 
	Change in rental rates: +13.3% 
	&nbsp;</li>
	<li>Hong Kong, Causeway Bay 
	 
	Rent Price: US$2,735 
	Change in rental rates: -6.8%&nbsp; 
	&nbsp;</li>
	<li>France, Paris, Avenue des Champs Elysees 
	 
	Rent price: US$1,556 
	Change in rental rates: 0.0 
	&nbsp;</li>
	<li>UK, London, New Bond Street 
	 
	Rent Price: US$1,216 
	Change in rental rates: +4.2% 
	&nbsp;</li>
	<li>Australia, Sydney, Pitt Street Mall 
	 
	Rent price: US$1,016 
	Change in rental rates: +25% 
	&nbsp;</li>
	<li>Italy, Milan,&nbsp; Via Montenapoleone 
	 
	Rent price: US$998 
	Change in rental rates: +13.3% 
	&nbsp;</li>
	<li>Japan, Tokyo, Ginza 
	 
	Rent price: US$953 
	Change in rental rates: +6.9% 
	&nbsp;</li>
	<li>South Korea, Seoul, Myeongdong 
	 
	Rent price: US$932 
	Change in rental rates: +17.6% 
	&nbsp;</li>
	<li>Switzerland, Zurich, Bahnhofstrasse 
	 
	Rent price: US$875 
	Change in rental rates: +1.1% 
	&nbsp;</li>
	<li>Russia, Moscow, Stoleshnikov 
	 
	Rental price: US$557&nbsp; 
	Change in rental rates: +20%</li>
</ol>

Source: Cushman and Wakefield.&nbsp;

Picture courtesy of &nbsp;<a href="https://commons.wikimedia.org/w/index.php?title=User:Mw12310&amp;action=edit&amp;redlink=1" title="User:Mw12310 (page does not exist)">Mw12310</a>/&nbsp;<a href="https://www.propertyobserver.com.au/https://creativecommons.org/licenses/by-sa/3.0" target="_blank">CC BY-SA 3.0</a>.

Sydney's Pitt Street Mall ranked among the world's most expensive retail rental locations

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Australian superannuation funds will increasingly look to invest in global real estate in 2015 as they are close to Asian cities that are benefiting from major demographic shifts, while there are fewer opportunities in the domestic market, a fund manager has predicted.
The forecast comes as a separate study by Australian researchers, released by the US-based Defined Contribution Real Estate Council (DCREC), shows an allocation of just 10% of a fund’s portfolio to real estate can match or beat the returns of a fund with less property exposure at a lower risk to investors.
TIAA Henderson Real Estate executive director Nick Evans, who heads the fund manager’s Australian business, said sophisticated investors such as superannuation funds were attracted to creating tailored real estate portfolios that suited their particular risk and return profiles.
Australia’s largest super fund, AustralianSuper has partnered with TIAA Henderson Real Estate to invest in emerging global real estate.
“Major investors are approaching global real estate in a very different way to pre-GFC days and we expect to see more Australian funds building a tailored approach that gives them the flexibility, exposure and returns they need,” Evans said.
He added that Australia’s superannuation funds were searching for better investment solutions for their ageing members who wanted secure income at a reasonable level of risk to support a lengthy retirement.
The study, which was released by the DCREC in the US in early November, found that allocating 10% of a portfolio to a mix of listed and unlisted real estate enhanced the risk-return profile of a defined contribution plan portfolio.
Defined contribution plans are investment vehicles where members contribute set amounts over a period of time, such as Australia’s superannuation funds where members contribute 9.25% of their salary each year.
The study, A Path to Better Retirement Outcomes: Allocating Real Estate Assets to Retirement Portfolios was conducted by researchers at Australia’s Griffith University, professor of finance Michael Drew and Adam Walk, also from Griffith University, and Jason West from Bond University.
It found a portfolio that includes property could smooth fund members' transition from accumulating savings to drawing a pension and could help investors avoid mistakes such as selling risky assets during a market downturn, which locked in losses.
The study noted that funds often used listed real estate investment trusts (REITs) for property exposure due to their liquidity, diversity and valuation cycles that mirrored stocks and bonds, but had been slower to adopt unlisted real estate.
Unlisted property could deliver returns that were closer to those of bonds with less risk than stocks, regular income, low volatility and low correlation to listed markets, the study showed. Some types of unlisted real estate could also act as a hedge against inflation.
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Australian funds looks to Asian property markets as domestic opportunities run dry

Buoyant home renovation market pushing retail sales growth

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Much of the discussion on housing affordability centres on first home buyers’ ability to enter the property market.
First home buyers accounted for only 12% of the total number of owner occupiers taking out mortgages in September, Australian Bureau of Statistics data shows. That’s down from the long-term average of almost 20% indicating new entrants to the property market are either unable or unwilling to make their first purchase.
But new research, <a href="https://www.ahuri.edu.au/publications/projects/p53021?utm_source=2&amp;utm_medium=53021&amp;utm_campaign=home#sthash.UWqrtVLY.dpuf" target="_blank">Housing affordability dynamics in Australia: new insights from the last decade</a>, reveals a more complicated picture of housing affordability that shows the challenges of paying for accommodation are not confined to those who are looking to enter the property market for the first time.
The research by Gavin Wood, Rachel Ong and Melek Cigdem for the Australian Housing and Urban Research Institute (AHURI) at RMIT University and Curtin University will be presented at Parliament House in Canberra on 4 December.
It finds housing affordability has deteriorated in Australia over recent decades for both owner occupiers and for people in the rental market.
Analysing ABS data, the researchers found the proportion of household income that owner-purchasers spent on housing increased to 18% from 12% over the 27 years from 1982 to 2009.
In line with that increase, the proportion of owner purchasers with housing costs in excess of 30% of their income – a level where people are considered to be in mortgage stress – doubled from 10% to 20% of all owner-purchaser households from 1982 to 2009, the report found.
<img src="/images/2014/11/17/zoe-nov-17-one.jpg" alt="">
<address>
Source: Housing affordability dynamics in Australia: new insights from the last decade
</address>
People in the private rental market are also spending more of their income on accommodation than in the past.
In 2009, tenants spent 24% of median gross household income on rent, while just 17% of median income was needed to cover the median rent in 1982. Nearly one in three tenants in the private rental market was spending more than 30% of their income on rent in 2009, up from 22% in 1982.
The research finds many people go through periods of being comfortable in affording their mortgage or rental payments before slipping into a situation where they struggle to meet these financial commitments.
Between a third and half of tenants in the private rental market have been devoting more than 30% of their income to rental payments for a year or more, the research found.
Around 20% of owner-occupiers had experienced one or more periods of housing affordability stress, the study found. This usually lasted only one year and it was rare for owner occupiers to remain in housing stress for more than five years.
Almost 70% of people who suffered housing stress had only one period where they were in financial difficulty, while 30% had two or more periods between 2001 and 2011 when housing ate up more than 30% of their income.
The price of housing and income levels both contribute to whether a person will find housing affordable. It’s not surprising then that affordability has fallen in some cities where properties have made huge capital gains but income levels have risen more modestly.
Debt levels have also risen significantly for people of all ages, but particularly for those aged 25 to 34 years, the research found.
On average, home owners aged 25 to 34 had mortgage debt worth 61% of the value of their property in 2009, compared with 41% in 1990, the report found. Additionally, fewer people in this age bracket owned a home (37.7% in 2009 compared with 55.5% in 1982).
This was also the case for people aged 35–44 years. In 2009, 62.1% of people in that age bracket were buying their home, compared with over 75% in 1982.
<img src="/images/2014/11/17/zoe-nov-17-two.jpg" alt="">
Source: Housing affordability dynamics in Australia: new insights from the last decade(Page 6)
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Both owner occupiers and renters suffering from deteriorating housing affordability

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The Insurance Council of Australia has warned householders to check their insurance policies before renting out part of their home to holidaymakers.
Website <a href="https://www.airbnb.com.au/" target="_blank">Airbnb </a>has become popular with property owners looking to cash in on short-term holiday rentals.
Airbnb, which was founded in 2008, has reportedly raised around $800 million from investors, including almost $500 million in April from TPG, T Rowe Price and Dragoneer Investment Group. <a href="https://www.propertyobserver.com.au/https://www.cnbc.com/id/102117120" target="_blank">Its value is estimated</a> at between $10 billion and $13 billion.
However, there has been heated debate internationally over the legality of short-term rentals through the site.
New York State Attorney General Eric T. Schneiderman found that 72% of units for rent in New York through Airbnb <a href="https://www.ag.ny.gov/pdfs/Airbnb%20report.pdf" target="_blank">appeared to be breaking local laws</a> which prevent rental terms of less than 30 days in most apartment buildings and require tax to be paid on hotel-style accommodation.
In Australia, short-term holiday letting is covered by fair trading and consumer laws. Local councils and strata agreements may also place restrictions on holiday letting. Subletting by tenants is permitted only if the landlord consents.
Home owners, tenants and holidaymakers also need to check that insurance policies cover online peer-to-peer house sharing services, ICA chief executive Rob Whelan said.
“It is essential that home owners or tenants who consider using online house-sharing services discuss this with their insurer beforehand, and check how this could impact their home and contents insurance, strata or renter’s insurance policies,” Whelan said.
“Anyone thinking about renting a room or part of their home should know that they might not be covered for property damage and other losses that could happen as a result of renting it out to holidaymakers. Importantly, they may not be covered for public liability should a paying guest be injured on the premises.”
Whelan said many insurers regarded online holiday rentals as a business activity so standard home and contents policies may not apply.
Special insurance policies are available for landlords of short-term rental properties and holiday homes. These are typically separate policies from standard landlord insurance cover.
Travel insurance policies often did not cover cancellation, or loss and damage of possessions in the rental properties and guarantees provided by some peer-to-peer accommodation providers did not cover items such as cash, or pets or personal liability in shared areas, Whelan said.
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Short-term holiday rentals warned to check insurance policies

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Rental property yields are at decade lows in some Australian cities but cheap mortgage rates, weak returns on other investments and the anticipation of capital gains are expected to further increase investor demand for residential property in the coming year.
Yields on three-bedroom rental properties fell in 2013/14 in all capital cities except Adelaide, where they were stable, according to the QBE Australian Housing Outlook 2014.
Rental yields fell below 3% in Sydney and Melbourne as prices increased strongly, while price rises also cause yields to fall in Brisbane to just above 4%, the report found. It noted that house prices rose by 17% in Sydney, 20% in Melbourne and 6% in Brisbane.
The report attributed lower yields in Perth, Darwin, Canberra and Hobart to weaker rents in those cities.
Rental growth in Perth and Darwin slowed to 2.9% and 4.8% respectively in 2013/14 following 7.5% increases in the previous year, the report found.
Accommodation supply in both cities is rising, while migration and mining investment is slowing. That was expected to put further downward pressure on rental growth in 2014-15.
Canberra has also experienced a boom in new rental supply which has pushed vacancies rates above 4%. The report noted that the ACT is estimated to be already experiencing an excess of dwelling stock.
Despite falling yields, investors have been active buyers of residential property and the trend is expected to continue.
The value of finance for residential investment has been between 45% and 50% since March 2014, up from just under 40% of total residential finance in the year to June 2011, the report found.
All states except Tasmania and the ACT reported an increase in lending for residential investment in 2013/14. NSW was the strongest state for investment lending growth, rising by 43% over the previous year to $49 billion.
"Low mortgage interest rates mean the gap between rental yields and interest rates in most capital cities remains narrow in a long term sense... This narrowed gap, together with the emergence of capital growth in many capital cities in 2013/14, is expected to remain attractive to investors and drive further increases in investor demand across most states over 2014/15," the report said.
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Rental yields falling but investor demand continues: QBE

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Major infrastructure projects planned around the country could lead to a spate of compulsory property acquisitions and affected land owners are being warned to ensure they receive their full entitlements.
In one of the latest examples, Brisbane City Council announced in early October that it would resume 38 properties on Lytton Road as part of the Wynnum Road corridor upgrade.
Slater and Gordon practice leader Vincent Butcher said owners of affected properties on Lytton Road would know about the acquisitions by now and should already be seeking advice.
The acquisitions are scheduled to take place from mid-2016 through to 2017 with construction expected to begin in early 2018, according to Brisbane City Council.
"The acquiring authority is not going to hold their hand," Butcher said. "Land holders must be vigilant in getting the right entitlements. They can vary significantly depending on the acquisition and the timing."
Governments sometimes need to acquire, or resume, land owned by private individuals and businesses to make way for projects such as road and rail expansions, new electricity, gas or oil facilities, or public buildings like hospitals.
When this happens, the first step in the process is that the acquiring authority must serve a notice of intention to resume, which is an official document. That's not necessarily a letter of offer for compensation, Butcher explained.
Compulsory land acquisitions are subject to a legal process where affected owners have statutory and common law rights. They have three years from a specified date to come to a resumption agreement with the acquiring authority.
"It's better to get advice early rather than wait to a later time," Butcher said. "The reason for that is that once that [three year] statutory period expires they are exempt from making claims."
An acquiring authority can make an offer but typically the owner must obtain their own legal and valuation advice and put forward a compensation claim. That includes the market value of the property and also claims for extensive disturbance, which depend on each individual case.
Legal and valuation advice costs form part of the disturbance claim, so it makes sense to get the best advice available, explained Butcher.
One property owner may receive a different compensation figure from their next door neighbour even if the market value of their properties is identical, he said.
Butcher said land resumptions were a niche area that involved both valuation and legal advice, and it was important that land owners approached parties that specialised in the areas and worked well together.
"They need to get the right people to do the right job because you only get one chance," he said.
In one case Butcher worked on in Queensland, which concluded about 18 months ago, the land owner received eight times more than the initial compensation offer.
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What to do when you have to give up your property for new infrastructure

<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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