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Consumers expect property prices to keep rising although fewer believe now is a good time to buy, a sentiment survey has found.
The Westpac–Melbourne Institute House Price Expectations Index rose by 1.9% in September, indicating more consumers think property prices will increase. The rise follows a 7.6% gain in the index in August.
Expectations of house price growth are now 25.5% above where they were in July 2012 and 7.4% higher than in July 2013, the survey showed.
Separate research by RP Data shows <a href="/expert-insights/investor-demand-for-housing-reaches-an-historic-high">dwelling values have risen by 10.9% in the past year</a>, with values having increase by 27.2% in Sydney and by 19.5% in Melbourne during that period.
Since the start of 2009, values in Sydney have risen by a total of 50.1% while Melbourne property values have increased by 46.1%, according to RP Data.
The median house price nationally increased by 2% in the June quarter to $617,232, a report released last week by Bendigo Bank and the Real Estate Institute of Australia found.
Melbourne property gained 3.3% to hit a median price of $658,000, while Sydney’s median house price rose by 3.1% to $811,837, the Bendigo Bank/REIA report showed.
The rapid gains in property prices have started to take their toll on consumer attitudes towards buying.
The Westpac Melbourne Institute Index of Consumer Sentiment revealed an 8.2% fall in the index tracking whether consumers thought now was a good time to buy property. That followed a 9.7% lift in that index in August.
Westpac chief economist Bill Evans noted the ‘time to buy a dwelling’ index was now 23.2% below its peak a year ago.
“Clearly, households are unnerved by rising prices, surmising that affordability issues are constraining the attractiveness of buying a house,” Evans noted.
“As we saw in the recent housing finance statistics, the momentum in the housing markets is clearly moving towards investors who are motivated by prospective price gains and rental yields and less affected by affordability considerations.”
Investor loans accounted for almost half of all mortgages in July, the highest proportion on record, according to the latest Australian Bureau of Statistics figures.
The Westpac–Melbourne Institute survey showed more than one quarter of people thought bricks and mortar was the wisest place for savings.  Just over one third favoured bank deposits, while only 8.5% thought it was best to invest savings in shares and 4% opted for superannuation.
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Fewer people believe that now is a good time to buy

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Australia is becoming less globally competitive but that doesn’t mean the local property market will slow, according to a leading economist.
Australia ranked at 22nd in the Global Competitiveness Index 2014–2015 released last week by the World Economic Forum. That was down one place compared with the previous year and seven places lower than in 2009-10 when Australia ranked 15th, according to Australian Industry Group, the local research partner for the report.
AI Group chief economist Judith Toth said competitiveness, productivity and efficiency were measures that indicated a country’s ability to increase its income.
The latest figures from the Australian Bureau of Statistics, released last week, show that in the June quarter, seasonally adjusted real net national disposable income fell by 0.2%. Meanwhile, gross domestic product, the measure of the country’s output, rose by 0.5%.
Toth said the drop in net national income was bad for Australians. “That means the ability to buy goods and services we want is declining,” she said.
“The problem is that the income that we got has declined and in global terms we are earning less as a country. For individuals that means, depending on what your career looks like, there could be reducing employment opportunities in Australia.”
Australia’s unemployment rate rose in July and Reserve Bank of Australia governor <a href="/expert-insights/finance/further-inflating-housing-market-unwise-rbas-glenn-stevens">Glenn Stevens said in a speech in Adelaide</a> last week that the labour market still had spare capacity and it would be a while before unemployment rates declined consistently.
Toth said one of the problems Australia has had in recent years is a case of ‘Dutch disease’, where industries that previously earned a lot of export income such as tourism, education and agriculture have suffered declines because our dollar is too high. “Those declines reduce employment opportunities outside mining for everyone else and reduces income,” she said.
Economic forecaster BIS Shrapnel recently predicted Australia’s economy will struggle over the next four years as the mining boom tapers off but the Australian dollar stays high.
It predicted in its Long Term Forecast 2014-2029 report that local consumption and investment would experience its weakest period since the early-1990s recession, averaging only 2% a year to 2017-18.
Despite the challenges the economy faces, the local property market has been booming. The Australian Bureau of Statistics reported in its Residential Property Price Indexes: Eight Capital Cities for June 2014 that prices in the capital cities rose by 10.1% in the year to June, with increases in each of the cities considered.
Toth said Australia’s falling global competitiveness was not likely to stifle the local property market.
“The local housing market is affected by global trends but not global competitiveness,” she said. “Competitiveness is about our ability to produce goods and services not our assets. What’s going on in the property market is tied with perceptions of risk in global financial markets where foreign investors see Australia as a safe place to invest.”
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Economist says local market will not slow despite global competition

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Managed funds that invest in Australian listed property trusts have performed strongly over the past five years, but investment researcher Lonsec warns they face risks due to the limited number of stocks in the sector.
Recent corporate transactions such as the acquisition of Commonwealth Property Office Fund by DEXUS Property Group and Canada Pension Plan Investment Board, and Frasers Amethyst’s takeover of Australand Property Group have exacerbated the problem for investors, Lonsec senior investment analyst Peter Green said.
“It’s not a new problem. It’s been around since after the GFC when Centro and others dropped out but if anything, it has got worse because we’ve had a lot of corporate transactions,” Green told Property Observer.
The 10 largest property stocks account for about 90% of the market capitalisation of the S&amp;P/ASX200 property index. That means funds take a large amount of stock risk when investing in the sector, said Green, who was the principal author of Lonsec’s 2014 A-REIT Sector Review.
The recent split of Westfield into Scentre Group and Westfield Corporation has improved the situation. Westfield used to account for 26% of the index, but Scentre makes up around 18-19% of the index, Green said.
Passively managed property funds that track the index, as well as actively managed funds that invested only in larger listed property trusts were most constrained by a lack of choice, Green said.
“For those managers that can go outside the top 15 and go to the smaller cap spectrum or utilities companies or even international [listed property], they do potentially have an advantage in this market,” Green said.
Despite the risks, fund managers that actively invested in listed property companies and Australian real estate investment trusts performed strongly in the year to June 30, 2014, Lonsec’s sector review found. The managers that the researcher examined achieved returns of 12.7% over the year to June and 15.4% annually over five years. The funds reviewed also distributed more than 5% a year in income to investors.
Green said while investors should be aware of the risks the managed funds were taking, it did not appear that there were structural issues with the property companies that the funds invested in.
“At this stage a lot have done balance sheet repair, board regeneration and exited offshore markets,” he said. 
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AREITs face greater risks with limited stock on the market: Lonsec

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Natural disasters strike Australia more often in the summer months and the Insurance Council of Australia has urged home owners to begin to prepare their properties now.
Storms occur more frequently between September and March, while cyclone season runs from November to April and affects the coastal regions of most of northern Australia.
In the southern states, bushfires are more common in summer (although the northern states face that hazard more often during the winter dry season).
This year, the bushfire threat could be worse than usual, according to the Bushfire and Natural Hazards Cooperative Research Centre which released its Southern Australia Seasonal Bushfire Outlook for 2014-15 last week.
The report shows there is a greater-than-normal chance of bushfire across eastern Australia. Southern Queensland, New South Wales, central Victoria, and parts of South Australia and Western Australia were most at risk, the report found.
We’ve reviewed the advice from various bodies and compiled some checklists to follow if you live in an area that is prone to natural disasters. Early preparation could help save your property.  
Action plans
Emergency services organisations always advocate early planning for what you would do in an emergency, regardless of whether it’s fire, flood or storm that you’re facing.
<ul>
<li>Involve every member of the household in formulating the plan</li>
<li>Assess how the threat could affect your property</li>
<li>Decide what to do in the case of emergency – will you stay or evacuate? If you’ll leave, how will you exit the property? Where will you go? If you stay, where’s the safest place on your property to shelter? How will you keep in contact if you get separated? What will you do with pets?</li>
<li>Put together an emergency kit that includes items such as emergency contact numbers, a first aid kit, a torch with batteries, essential medications, important documents, cash and valuables. Keep this in an easily accessible location</li>
<li>Check your home and contents insurance is up to date and adequate</li>
</ul>
Preparing your property
Bushfire
Bushfires have caused billions of dollars of damage across Australia over the past decade.
Last October’s Blue Mountains bushfires destroyed 200 homes, with $183.4 million in claims paid to policy holders.
The NSW Rural Fire Service says your home is more likely to survive a bush fire or ember attack if you have prepared.
In particularly high risk areas, rebuilding an old home to new standards would be the best course of action, but that might not be financially viable. Basic maintenance can help. This is what the NSW RFS recommends:
<ul>
<li>Clean gutters of leaves and twigs</li>
<li>Install metal gutter guards</li>
<li>Repair damaged or missing tiles on the roof</li>
<li>Install fine metal mesh screens on windows and doors</li>
<li>Fit seals around doors and windows to eliminate gaps</li>
<li>Enclose the areas under the house</li>
<li>Repair or cover gaps in external walls</li>
<li>Attach a fire sprinkler system to gutters</li>
<li>Keep lawns short and gardens well maintained</li>
<li>Cut back trees and shrubs overhanging buildings</li>
<li>Clean up fallen leaves, twigs and debris around the property</li>
<li>Have hoses long enough to reach around your house</li>
<li>If you have a pool, tank or dam, put a Static Water Supply (SWS) sign on your property entrance, so firefighters know where they can get water</li>
</ul>
Source: <a href="https://www.rfs.nsw.gov.au/" target="_blank">NSW Rural Fire Service</a>.
Storms and cyclones
Maintenance can also help your home to survive a storm or cyclone.
<a href="https://www.hpw.qld.gov.au/sitecollectiondocuments/newsflash-406-homeowners-guide.pdf" target="_blank">Queensland Government’s Department of Housing and Public Works suggests</a> taking steps such as replacing rusted battens, fixings, screws and nails, as well as rotten or termite damaged timber.
Pay special attention to potential points of weakness on the building such as the roof, gable ends and doors and windows including garage doors. Also, check freestanding carports and out buildings, and outdoor equipment and loose items that could move around during a storm or cyclone and cause damage.
Shutters or metal screens fitted to windows can help to protect the property.
<a href="https://www.stormwise.com.au/step/prepare-your-home" target="_blank">Stormwise</a>, an initiative of the Queensland State Emergency Service (SES) and NRMA Insurance, says home owners should also keep gutters, downpipes and drains clear and remove tree branches that are close to the house.
Also, learn how to safely turn off the power, water and gas, Stormwise advises. If you have portable generators, only use them outside because they produce carbon monoxide, which can be deadly.
Flood
The local council of state emergency services for your area should be able to tell you whether your property is in a flood prone or flood risk area. According to the Insurance Council of Australia, about 7% of Australian addresses have some flood <a href="https://understandinsurance.com.au/types-of-disasters/floods" target="_blank">risk</a>, and about 2.8% have moderate to extreme risk.
Floods can develop quickly. Even when there has been little rain locally, rivers can swell with storm waters further upstream. <a href="https://www.bom.gov.au/australia/flood/" target="_blank">The Bureau of Meteorology</a>, as well as local councils and emergency service organisations can provide information on where and when flooding is expected.
How often flooding occurs in an area is usually described by the number of years between floods. The Bureau of Meteorology says a “five year flood” means there is a one in five chance that such a flood will occur during any one year. It doesn’t mean that if an area flooded in one year, it is safe for the next four. Similarly, a much bigger flood such as a 100 year flood has a one in a 100 chance of occurring in any one year.
In flood prone areas, Stormwise recommends moving selected indoor items to a higher level, if possible. Poisons and garden chemicals should be kept well above ground level to minimise contamination of floodwater.
South East Queensland-based <a href="/news">electricity company Energex recommends </a>people in areas that are subject to flooding consider installing a surge protector to help protect sensitive electronic equipment, and relocating switchboards and wiring that sits below previous flood levels.
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How to: Prepare your house for a natural disaster

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Major superannuation funds will boost their holdings of direct property as the population ages, according to predictions by actuaries Rice Warner.
“With the consolidation of the market, there will be a shift to more illiquid investments as the very large funds will have significant, stable and predictable cash flows. Investments in infrastructure and property will grow,” the actuaries said in their report, Ageing and Capital Flows prepared for the Financial System Inquiry.
Investment may be directed towards Australian assets over the next decade, due to past under-investment and new opportunities, the report noted, but as domestic demand was satisfied superannuation funds would have to look offshore.
Rice Warner said fund managers and asset consultants on average expected direct property to return 7.9% over the next decade.
Listed property was expected to gain 8.2% over that time frame, while Australian shares and international shares were forecast to return 8.8% and 8.5% respectively.
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Superannuation funds to boost direct property holdings: Rice Warner

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Interest rates have been on hold at record low levels for more than a year now and experts predict there will be no increases for several more months to come.
But when rates turn, they can move quickly and borrowers should be prepared.
The Reserve Bank of Australia cut rates from 7.25% in August 2008 to 3% in April 2009 in a rapid response to the financial crisis. At the start of the recovery, official interest rate rose from 3% up to 4.5% in the eight months to May 2010.
Interest rate movements can still be volatile but the highs and lows have smoothed out over the past 20 years. Rates are now generally lower than they were. In the early 1990s and before the official cash rate was 17%. Fortunately for mortgage holders, economists agree it’s unlikely the RBA will need to lift interest rates as high as that again.
“The key driver of that story is that inflation is now much lower than it was in that earlier period,” says HSBC chief economist Paul Bloxham.
In the 1970s and 1980s, inflation was running at around 7 to 8%. Now it is between 2 and 3% and Bloxham says these lower inflation rates are expected to persist.
“That’s four to five percentage points that have come off interest rates because inflation is much lower than it was,” Bloxham says.
The RBA uses the short-term interest rate to try to control growth in the economy and keep demand increasing in line with supply. When the economy is weak, the RBA lowers the official interest rate to try to boost demand and when it is too strong, it lifts the interest rate to slow things down.
“They only have the interest rate to do that. They use the cash rate and yes, they have been successful,” Bloxham says.
BetaShares chief economist David Bassanese agrees.
“[The RBA] can achieve an increase in the real interest rate – that is the nominal interest rate less inflation - with a lower nominal rate,” he says.
Expectations of inflation have lowered since the 1990s which in itself slows the inflation rate, Bassanese says.
Labour and product markets are more open to trade and more competitive than they used to be. Competition and deregulation helps keep prices down and reduces demand for wage rises.
“You can get a situation where pockets of strength like in the mining sector don’t flow through to other sectors as easily as they did in the past because it’s much more deregulated,” Bassanese says.
The outlook for energy prices is more benign now than it was in the past, which will also help to keep inflation under control, Bassanese says.
In the 1970s and 1980s, world economies faced oil price shocks, which hit inflation rates. The price of oil for energy skyrocketed in the 1970s due to shortages sparked by tensions in the Middle East. That led to a slowdown in world economic growth in the 1980s, which in turn resulted in a glut of oil that caused oil prices to plunge.
“The other issue is that households now have a lot more debt,” Bassanese says. “Household debt to income has gone from 50% to 150% over the past couple of decades so now interest rate changes have a much bigger impact.”
Households are much more sensitive to interest rate changes, so the RBA doesn’t have to move them around as much as in the past to influence consumer behaviour.
Global factors are also having an effect on Australia’s interest rates, Bloxham says.
Interest rates in the rest of the world are much lower than they have been in the past, particularly since the global financial crisis. They are expected to stay lower, which will also help the RBA to keep Australia’s cash rate down.
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Borrowers need to prepare for interest rate movements

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Australians have greater trust and confidence in the superannuation system than they did a year ago but less than half expect to rely solely on superannuation savings in retirement, turning to cash and property to make up the anticipated shortfall, research has found.
The Financial Services Council/ING Direct Superannuation Sentiment Index, released last week, showed that attitudes had improved over the past year towards the performance of superannuation, as well as the stability and certainty that the compulsory savings system provided.
FSC chief executive John Brodgen said superannuation funds had achieved double digit returns for the second year in a row, which had helped to boost confidence. The index measure of sentiment towards fund performance improved by seven points to 121 in 2014.
However, 52% of those surveyed said superannuation savings alone would be insufficient to provide for their retirement and 55% had investments outside of superannuation.
One in five people with assets outside of superannuation had investment property, the research showed. One third had cash savings.
“What’s important is to understand that if you have got money in superannuation it’s not liquid. You do need some liquid savings,” Brodgen said.
Actuarial firm Rice Warner recently reported that Australians held more than $1.6 trillion in superannuation at June 2013. The actuaries projected that figure would increase in real terms to more than $5 trillion in 30 years.
In comparison, Australians hold around $2.3 trillion in assets outside of superannuation and that is predicted to grow to $4.6 trillion by mid-2028, according to Rice Warner’s report, Ageing and Capital Flows prepared for the Financial System Inquiry.
In dollar terms, investment property accounted for almost half of personal investments held now, at $1.1 trillion, Rice Warner’s report found. Cash and term deposits accounted for 33.8% of the value of personal investments, while directly held shares accounted for 11.1%.
Self-managed super funds have been boosting their allocations to direct property and Rice Warner predicts they will continue to be interested in the asset class.
However, the Rice Warner report suggests the proportion of overall personal investments held in direct property will fall by 4% by 2028.
“Growth will occur due to superannuation becoming relatively less attractive for high income earners and lower interest rates in the short to medium term. However, this will be somewhat offset by investors gearing property less and yields being under pressure due to property prices and costs rising faster than rents,” the report says.
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Majority believe super not enough to fund retirement: FSG/ING survey

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Second-round submissions to an inquiry into the banking system have challenged findings that the system is competitive and called for a review of mortgage broking practices to ensure consumers are getting quality advice on home loans.
The Financial System Inquiry released its interim report in July, calling for further input on a range of questions, including whether bank ownership of mortgage brokers was restricting competition.
Second round submissions were published on Friday.
The Mortgage and Finance Association of Australia challenged the report’s finding that the banking sector was “competitive, albeit concentrated”, noting that the financial crisis and government intervention had restricted competition.
However, the MFAA said there was no evidence that bank ownership of mortgage broking groups was limiting competition or discouraging brokers from acting in the consumers’ interest.
The MFAA argued that the National Consumer Credit Protection Act, 2009 required brokers to disclose commissions and lender panels and ensure clients were not disadvantaged by any conflicts of interest.
Suncorp disagreed, arguing that bank ownership of mortgage brokers was distorting the way in which mortgage brokers directed borrowers to lenders.
“Of great concern is the fact that customers view brokers as independent but the major banks have growing influence over these channels which they now predominantly own, and coupled with generous incentive schemes, are able to direct business to their products,” Suncorp said in its submission.
Consumer group Choice called for a review of how mortgage broking regulations were working for consumers including an assessment of the impact of mortgage brokers’ remuneration and institutional arrangements on the services they offered. It also called for an investigation into whether more extensive rules about the quality of mortgage broker recommendations and disclosures were required.
Choice said conflicts of interest reduced the quality of mortgage brokers’ recommendations and service for consumers. 
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Banking system uncompetitive and mortgage broking review needed: Senate inquiry submissions

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Capital values for office property in Australia’s major cities will rise as tenant demand increases and investors becoming more willing to accept lower yields, experts have forecast.
Competition for commercial properties in Australia is already strong with institutions such as sovereign wealth funds from Europe and Asia, real estate investment trusts and foreign private investors drawn to the markets by higher yields than available elsewhere.
“That influx [of investors] is really chasing high sustainable yields particularly in the office market,” Australian Unity head of property funds Mark Lumby said.
Office assets in Australia’s capital cities are producing yields of 6.5% to 7.5%, whereas similar assets in cities such as London, England yield only 3.5%, Lumby said at the manager’s quarterly outlook presentation to financial planners last week.
When global property market recover following economic downturns, yields on properties in gateway cities such as New York and London fall, and capital values rise, before that happens with similar properties in Australia and Asia, he said.
“Australian cities are late recovery markets and they will follow the gateway markets ... There’s still a lot of room for Sydney and Melbourne [office property yields] to tighten and as they tighten property prices will increase.”
Factors such as increasing supply and low tenant demand due to the weaker economy over the past few years had limited capital values in Australia’s cities, Lumby said.
However, foreign owners such as <a href="/news/the-ngs-singapores-richest-family-spend-425-million-on-sydney-trophy-property">Singapore-based Far East Organization have been buying office buildings in Sydney and Melbourne</a> and converting them into residential apartments. 
“By converting office space to residential they are effectively taking some stock out of the market and that’s keeping a lid on vacancy rates,” he said.
Vacancy rates nationally for office buildings are 10.7% on average, ranging from 8.4% in Sydney to 14.7% in Brisbane.
“As we see tenant demand come back from office tenants we should see some good growth in capital values from office,” Lumby said.
His views are echoed by forecasts made by Colliers International in its second half Research and Forecast Report for CBD office, released last week.
Colliers International predicts that based on new supply, withdrawals, pre-commitments, backfill and demand, the Sydney CBD office market is experiencing a prolonged recovery in vacancy rates.
Vacancy rates in Melbourne’s CBD office market fell in the first half of 2014, but Colliers believes this is only temporary as 67,000 square metres of new office space will be completed in the second half of the year which will push vacancy rates higher.
Despite the forecast increase in vacancy rates, Colliers International predicts strong rental growth for offices in Melbourne’s CBDs, or around 3.7%.
Sydney's market is expected to have the strongest rental growth with of 7.7%, driven by growing demand from information technology and telecommunication companies.
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Foreign investors chasing high yields set to drive office capital values higher

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Managing your own investment property has its advantages. You get to maintain control of the process and it can save on agent costs but there are traps that investors need to watch out for.
Property Observer talked to NSW Department of Fair Trading senior customer service officer Hollie McPherson about the common mistakes that self-managing landlords make.
<ol>
<li>
Access One of the most common complaints the NSW Department of Fair Trading receives about self-managing landlords relates to accessing the property without permission. “Because it’s a significant investment that people make when they buy and investment property, sometimes the landlord will not let go of the property and turn up without providing sufficient notice,” McPherson says. Retaining control over management does not mean you can ignore the rules about access. Landlords need to remember that tenants have rights and must obtain permission to access the property, except in some special cases. Landlords often face problems with tenants failing to grant access for the landlord or others to come to the property to carry out repairs, for example. If the tenant fails to provide access after the landlord has given the proper notice, the next step for the landlord would be to go to the dispute service offered by the Department of Fair Trading. 
</li>
<li>
Bonds Another common mistake that self-managing landlords make is not lodging rental bonds with the Department of Fair Trading, McPherson says. Landlords in NSW must lodge bond money with Fair Trading. Some landlords keep rental bonds in their own personal bank accounts, which can make it difficult for tenants who are leaving a property to recoup their bond. That’s not allowed. Landlords sometimes request more than four weeks’ worth of rent to be held as a bond but that’s also against the rules. 
</li>
<li>
Documentation “Sometimes landlords forget [a rental property is] like a business,” McPherson says. “You do need to have things in writing. It’s a protection for the tenant and for the landlord.” There’s no requirement in NSW to have a written tenancy agreement in place when renting out a property. When there’s no rent agreement, the lease reverts to a six month agreement that applies to both landlord and tenant. The landlord can’t increase the rent during that period and the tenant can’t stop paying the rent. While it’s not a requirement to provide a written tenancy agreement, it’s a good idea to have one. It’s difficult to prove that someone is a tenant and not a guest if there’s no tenancy agreement in place, McPherson warns.  A tenancy agreement should show what’s included under the lease agreement. It should also include a condition report that documents any damage or flaws in the property when the tenant moves in and out. “It’s an investment property so you want to keep track of what condition the property was in at the start of the lease,” McPherson says. Take photos for evidence. When the tenant moves out agree a time to inspect the property. If there’s damage the landlord can get works done and show receipts to the tribunal to have the repairs paid for out of the bond money. “Without that it’s really hard for the landlord to prove who caused the damage,” McPherson says. With rental payments, McPherson says it’s wise to provide rent receipts to the tenant or keep a tenant ledger, although some landlords fail to do this. “Keeping a tenant ledger is good for the landlord because it shows if the tenant is up to date also it’s good for the tenant because they can use it for future rental applications,” McPherson says. As a landlord, you’ll probably need to keep track of rental payments for your own tax records anyway. 
</li>
<li>
Charging for utilities Landlords sometimes make the mistake of trying to charge for utilities when they are not allowed to. “There are clear rules for when you can and can’t charge for water usage,” McPherson says. If there’s only one water meter for multiple residences, such as in an apartment building, you can’t charge utility bills, for example. 
</li>
<li>
Staying in touch Another common mistake is that landlords will only provide a mobile number to their tenants which can make it difficult for the tenant to get in touch with them. “It’s important for the landlord to give [the tenant] their full name, address to write to, telephone number or email address,” McPherson says. If something goes wrong, it’s important to try to contact the tenant to try to have a discussion about the problem. Keep a written record of what was discussed, including a diary of conversations and communication with the tenant. Record details such as when repair works will be completed, or why modifications won’t be made if the landlord chooses not to do work that the tenant requests. “It doesn’t matter how good the relationship was at the start things can go sour,” McPherson says. 
</li>
<li>
Seeking help If landlords are not sure of what to do, they can contact the Department of Fair Trading for advice, McPherson says. There are also fact sheets on the website that can assist. Fair trading can negotiate with the tenant on the landlord’s behalf, free of charge. Mediation is mostly conducted by telephone but if required Fair Trading can facilitate to face-to-face meetings. “If [landlords] make an effort to resolve issues, keep records in writing, then the service we offer is quite effective in negotiating the outcome,” McPherson says. If the problem can’t be solved through mediation, the next step is to go to the NSW Civil and Administrative Tribunal for a binding decision. It costs $47 to lodge a case with the tribunal.
</li>
</ol>
Note that this story refers to processes and rules in NSW only. The details will be different in other states and territories but the basic principles are still the same.
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The six most common mistakes self-managing landlords make

<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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