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;

Joel Robinson

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;

Lanevick to cater for Hunters Hill downsizers with new Gladesville apartment development

Property developer One Living, backed by former Macquarie banker turned investment manager Chris Green’s investment firm, has unveiled plans to bring more institutional capital into housing to help address the national supply crisis.

The New York-based investor has focused his firm, GreenPoint Partners, on addressing the supply shortage hitting middle market housing in Australia.

It is backing the new One Living business to develop more than 1000 units along the eastern seaboard. The new firm is starting with a development on Mona Vale Road, on the border of Mona Vale and Pymble, in Sydney’s Northern Beaches, with around 140 apartments planned. They are eyeing off more sites across the city.

With cost pressures rising in the industry, One Living’s model is to be a vertically integrated developer-builder, so it can respond directly to the housing gap by removing the cost inefficiencies embedded in traditional residential delivery.

“We are building a platform designed to operate at scale and starting in a market where there’s a clear need for quality, attainable housing,” One Living joint managing director Joseph Scuderi said.

“It’s that missing middle – it’s that attainable end of housing… that’s what most Australians invest into and what Australians can actually afford.”

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="798dfa93-4941-4db6-a696-31e9dc18e81c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.31.50%E2%80%AFPM.png?VersionId=mKBqi5C_DmeiXS.AtJkcR8LQIxqCqmFi" />

GreenPoint Partners brings years of experience assembling and scaling real estate operating businesses across major markets. And Green sees a big opportunity in Australia.

“For its size, sophistication and importance to the community, Australia’s living sector has remained largely under-institutionalised, which represents significant opportunity,” Green said. “GreenPoint identified that gap, assembled the right team, and is backing One Living to build a platform that is aligned to market needs.”

Green said being a builder-developer would give the company the capacity and flexibility it required to deliver reasonably-priced homes.

“We want it to be at that attainable level; not super high end luxury but at that attainable level,” he said.

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="74a5344a-4b26-4d4a-ada3-056b1220be77" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.32.15%E2%80%AFPM.png?VersionId=vY8hXHO4reBMdO8ZXMWCNtGZJofUPQ3j" />

&nbsp;

One Living will undertake a component of affordable housing in its schemes, which it will own and operate, and it could also run build-to-rent on some sites.

Green praised local policy settings.

“The NSW government is being very supportive, strategic and pragmatic in terms of how do we generate more supply of housing,” he said. “We think it’s actually positive for development and the bit that’s been lacking at that attainable level is that it’s lots of relatively small private developers, whereas we want to create an institutional platform.”

One Living is also&nbsp;looking at high-density projects and could take on more institutional funding in the future.

“The way we will be able to achieve economies of scale is through size,” Green added.

One Living enters Sydney's new apartment market with Northern Beaches site acquisition

It's been several years since there's been an opportunity to buy a brand new townhome in Melbourne's coastal suburb of Mordialloc. Even apartment developments in recent times have been few and far between in the area.

Local developer LDS Property identified the gap in new housing, securing a site on White Street, directly opposite&nbsp;Woodlands Golf Club Mordialloc. They've recently launched&nbsp;<a href="https://www.apartments.com.au/new-townhouses/wm-residences-mordialloc-102-white-street-mordialloc-vic-3195">WM Residences</a>, just 13 townhouses which they have already started building.

Projects by Buxton Director Heath Thompson, who is selling WM Residences, says the townhouses x that perfect middle ground be

"Mordialloc residents have had limited options to downsize within the suburb, often forcing them to look elsewhere despite long-standing ties to the area," Thompson says.

"With very little comparable new supply coming to market, projects like WM Residences are well placed, particularly as buyers look to capitalise on current conditions amid constrained supply."

[smartcode_project:default project_id=134646 project_image_fid=6109]

The development, designed by regarded architecture firm&nbsp;<a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a>,&nbsp;adopts a deliberately restrained architectural approach, focusing on simplicity, durability and liveability rather than overt design gestures.

The boutique scale is central to the offering. With only 13 three-bedroom residences, each home is configured to prioritise functional layouts and everyday use, supported by private terraces and secure two-car garages.

Ewert Leaf’s design response leans into a calm, neutral material palette. Interiors are defined by oak flooring, white walls and soft finishes, creating a consistent and understated backdrop. The approach avoids trend-driven detailing in favour of longevity, with an emphasis on natural light and spatial clarity.

[smartcode_project:default project_id=134646 project_image_fid=6110]

Beyond aesthetics, the homes are designed to meet contemporary performance expectations. Each residence targets a minimum 6-star energy rating, incorporating double glazing, comprehensive insulation and all-electric Bosch appliances.

The project’s location supports a walkable coastal lifestyle, sitting within close proximity to Mordialloc’s foreshore, Main Street retail strip and the train station. Local cafés and dining venues, including Suburbia Deli and Hendriks Café, are within a short walk, reinforcing the area’s established neighbourhood character.

[smartcode_project:default project_id=134646 project_image_fid=6116]

While <a href="https://www.apartments.com.au/developments/mordialloc-vic-3195">Mordialloc</a> is often defined by its beach and pier, the project taps into other areas of day to day living, offering easy access to local food, casual dining and transport, rather than positioning itself purely as a lifestyle retreat.

WM Residences reflects a continued trend across Melbourne’s coastal suburbs towards smaller-scale, design-led townhouse developments, particularly on infill sites where proximity to amenity is already established.

With construction commenced prior to its market entry, the project aligns with a growing preference among buyers for developments with visible progress and defined delivery timeframes.

[smartcode_project_cta:default project_id=134646]

WM Residences fills gap in Mordialloc townhouse market

Mortgages

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Mortgage Choice announced the appointment of John Flavell as its chief executive officer, set to join the company in April 2015.
He comes from National Australia Bank’s MLC where he is the executive general manager, wealth advice, with more than 20 years experience in executive leadership positions and 15 years in financial services.
Flavell has held senior roles at Aussie Home Loans where he was part of the executive team responsible for the successful transition of the business into mortgage broking.
Mortgage Choice’s current chief executive officer Michael Russell will work alongside Flavell in a transition phase and then depart the business at the end of the 2014/15 Financial Year.
“While I cannot wait to start in my new role, I am going to take a break for a little while to spend some time with my three daughters," Flavell said on his Christmas Eve appointment announcement.
"I will then come back fresh in April and ready to work closely with Michael and the executive team on accelerating the business for further success in 2015 and beyond.”
Russell joined Mortgage Choice as CEO in 2009, developing two three-year plans to expand the company.
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jchancellor-FAypfDUnLy

John Flavell appointed to succeed Michael Russell at Mortgage Choice

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The latest Australian Bureau of Statistics residential building approval figures present a positive outlook, with Master Builders translating them into a strong forecast for the rest of 2015.
Master Builders Australia’s chief economist Peter Jones pointed to the strong increase in the statistics, which actually brings November 2014 to a record high.
“The 7.5% seasonally adjusted increase in total building approvals for November 2014 reflects confidence in the market with the strength of the result slightly above industry expectations reflecting positive momentum,” said Jones.
“The November result was built on strong approvals growth in higher density dwellings in the major cities. The 17.2% seasonally adjusted rise for other dwellings (units and apartments) confirms the changing face of dwelling demand as higher density living becomes increasingly accepted,” he said.
He said that the results point to a sustained pipeline of work over the next 18 months. Effectively, this translates into an increased number of jobs in the residential home building sector. Private sector apartments rose 16.7% and private sector houses dipped 0.3%.
Meanwhile, chief economist for CommSec, Craig James, noted that the year has started with “plenty of promise”, particularly with the Aussie dollar falling, a drop in the petrol prices and a record number of council approvals to build new homes.
“Clearly there is no need for official interest rates to be cut. But with inflation low and numerous uncertainties across the global economy, there is also no need for higher interest rates,” his analysis of the data explained.
“The strength of new building will boost housing supply over 2015 and, in turn, lead to softer growth of home prices. The more balanced housing conditions will remove another problem for Reserve Bank policymakers,” he said.
They expect no interest rate change this year, which will assist the construction industry.
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jduke-EHk3XBmHkn

Record high building approvals promising a strong 2015

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The proportion of borrowers refinancing has jumped to 37.3% of all new mortgages written in December, according to the AFG Mortgage Index.
The Index shows the proportion of home loan borrowers refinancing over the month was the highest level since that recorded in March 2012.
The last quarter of 2014 saw an increase from 33.5% refinanced in September by 3.8%.
Those opting for fixed rates fell to 14.5%, down from 17.1% in November.
The proportion of introductory loans jumped from 4.9% in November by 0.9% to the December month. These are incentivising products offered by lenders.
AFG’s general manager of sales and operations, Mark Hewitt, said that in March 2012, when we last saw refinancing at these highs, borrowers were looking to fix, with fixed interest loans at a four year high.
“This time round with speculation that interest rates are more likely to go down than up, borrowers are shopping around for the variable rate deal and avoiding fixed for the time being,” he said.
Victoria, South Australia and Queensland saw refinancing most popular at 42.2%, 41.7% and 39.9% respectively. Western Australia and New South Wales achieved 36.7% and 31.8%.
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Refinancing surges in December: AFG

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At the close of 2014, the big topic was whether the Reserve Bank (RBA) would actually cut rates this year, with an increasing number of experts forecasting the board would do just this.
It seems consumers may be responding to the speculation, according to Mortgage Choice spokesperson Jessica Darnbrough, who said their statistics show more borrowers choosing variable rates.
“At the beginning of December last year, speculation was rife that the Reserve Bank of Australia could cut the cash rate throughout 2015,” Darnbrough said.
“Ongoing weakness in the Australian and global economy has encouraged some analysts to change their cash rate forecasts to include up to two further rate cuts,” she said.
“While future cash rate cuts are purely speculation at the moment, it would seem the chatter has been enough to encourage more home buyers to take out a variable rate mortgage.”
Victorians are those most keen on variable rates, totalling 85.79% of all home loans written in December. South Australia and Western Australia totalled 82.81% and 82.11% respectively for variable rate loans.
New South Wales borrowers, at the bottom of the pile for variable rates, saw fixed rate demand strong at 30%.
“Australia’s lenders are offering some very sharply priced products at the moment, so regardless of what type of home loan product you eventually decide upon, now is a good time to be a home buyer,” said Darnbrough.
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RBA speculation sees borrowers turn to variable: Mortgage Choice

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Mortgage stress is one of those difficult situations that no one wants to face. For new buyers, and even experienced property owners, the thought of being in a scramble to afford your repayments understandably evokes a significant amount of fear.
If you are facing mortgage stress, the harbinger of a potential foreclosure, there are certain things you can do to manage the situation.
Smartline Personal Mortgage Advisers’ executive director Joe Sirianni suggests that, clearly, the first thing to bear in mind is how to reduce the possibility of ending up experiencing mortgage stress in the first place.
Anecdotal experience leads Sirianni to believe that those in financial stress have held onto their asset for too long as the stress starts to build.   “Eventually their debt repayments put them in a position where they go very close to bankruptcy and, in hindsight, will express their wish that they’d sold their home sooner in order to get rid of their debt earlier and give themselves time to get back on track,” he said.   “That’s not to say that making the decision to sell your home in order to clear debt isn’t a stressful and deeply emotional choice to make. Rather, leaving the decision-making process for too long can make an already stressful situation even more difficult – it’s best to talk about the situation and discuss options right from the beginning.”
So, firstly, if you think mortgage stress is going to become a possibility or you’re starting to feel the pinch then consider to yourself whether selling early is the best option for you.
Similarly, if you can predict what the worst case scenarios may be then you are often better placed to handle them should they arise.
Redundancy, illness or injury can be possible outcomes for every individual and it is worth putting in place insurances ahead of time to mitigate these risks.
Personal insurance products, such as income protection insurance, trauma insurance and possibly life insurance can be worthwhile considerations.
If this is something you haven’t managed to do – be upfront with your lender and tell them quickly what the problem is.
“It’s always best to be upfront with your lending institution to let them know about your situation – particularly if you predict that you’ll experience financial difficulties in the near future if you don’t secure another income,” Sirianni advises.
For lenders, it’s in their interest to assist you during these times. You may find that a lender can assist by helping you change your loan to interest only for a period until you find another job, or give you a “repayment holiday” until you’re on your feet.
While you do have an obligation to repay your loan, lenders are not out to work against you and there’s often a solution you can work with them towards.
“Not only are many people surprised by how readily lenders will work with them, they find that any misconceptions around how they might manage the debt on their own are incorrect,” he suggests. This may include borrowers who believe they can use the equity in their home to assist during tough times – without realising that they need an income to have lending approved to pull out these funds.
Other situations that are seen by Sirianni as causing mortgage stress can include credit card and personal loan debt.
Now is the time to stop accruing more debt. Cut up your cards, speak to your lender and look to put yourself on a repayment plan, he suggests.
“If you find yourself in a distressing financial position as a result of an unforeseeable event that, in turn, sees you falling behind on your mortgage repayments and incurring significant credit card debt as a result, there are options available – highlighting the need to get on top of out-of-control debt from the very beginning,” he said.
In summary:
<ul>
<li>Consider selling earlier rather than later 
</li>
<li>Attempt to predict your difficulties ahead of time and prepare with insurances 
</li>
<li>Speak to your lender quickly 
</li>
<li>Cut up your credit cards, and put yourself on repayment plans</li>
</ul>
Here are some <a href="/expert-insights/finance/what-to-do-if-you-are-in-mortgage-stress">more suggestions from the Consumer Credit Legal Centre (NSW)</a>.
ALSO READ: <a href="/expert-insights/finance/what-is-negative-equity-and-what-can-you-do-about-it">What is negative equity and what can you do about it </a>
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How to: Manage mortgage stress

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A trusted Melbourne lawyer who swindled clients out of more than $12 million received a 12-year jail sentence for his crimes last week.
The Supreme Court of Victoria heard Philip Linacre operated a 12-year-long <a href="https://www.smartcompany.com.au/legal/19226-how-graham-hoy-created-australia-s-worst-ponzi-scheme-and-got-13-years-jail">Ponzi scheme</a>, a fraudulent investment where returns are paid to investors are paid by new investors, rather than from profit earned from the investment itself.
Linacre told clients, including his own family and friends, their investments would be given to a third party as a mortgage loan, promising them between returns of 12% and 24% on the investments. He was instead using their money to pay out the interest on other clients' investments.
Linacre, who said he started the scheme because of his own bad financial position, operated the arrangement from 2000 until 2012, when he turned himself in to police. He pleaded guilty to 21 counts of dishonesty and five counts of having a deficiency in a trust account.
Chief Justice Warren called Linacre’s actions “calculated and complex” and said many of the victims were already in difficult financial circumstances when Linacre convinced them to invest.
“You have committed a number of serious offences in the trusted position of a lawyer,” said Warren in her ruling.
“Importantly, these victims came to you in their time of need. Many sought information about investing their life savings, superannuation or inheritance. They placed complete trust in you. You did not only steal money from your victims, you robbed them of their future.”
Warren also found many of Linacre’s victims suffered ill health because of his criminality.
Linacre will serve a minimum of eight years’ jail.
Brett Warfield chief executive of forensic accounting firm Warfield &amp; Associates, said Ponzi schemes have been around for a long time and there were two major red flags for investors to watch out for.
“The first, and most glaring, is the rate of return you are promised,” says Warfield.
“As soon as you are promised above the market rate, so in this instance the mortgage lending rate, when you get someone offering double, triple or four times that, straight away that should be a sign.”
Warfield says the greater the return on investment, the greater the risk for investors.
“The other thing with Ponzi schemes is asking questions about the actual investment,” he says. “Asking what type of information will be provided about my investments?”
Warfield says investors should expect detailed reports and correspondences on their investment, such as what one might expect from superannuation funds. He says although some people may feel uncomfortable asking for this information, investors have to be proactive to protect themselves.
“You have to be in charge of your money,” he says. “The good thing is vulnerable people who would have invested may see and may think twice.”
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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Melbourne lawyer jailed for 12 years over “calculated and complex” Ponzi mortgage scheme

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The Reserve Bank has stated on more than one occasion that mortgage repayments are on average some 15% ahead of schedule, the equivalent of some two years worth of monthly payments. If this is true then despite endless talk of stretched household budgets, then we should actually see mortgage arrears declining to levels not seen in years.
The latest Fitch Ratings Dinkum Index, which records 30 and 90 day mortgage arrears, showed that arrears have declined to seven year lows (30 day) and fiveyear lows (90 day) respectively.
From <a href="https://www.bankingday.com/nl06_news_selected.php?act=2&amp;nav=13&amp;selkey=17947" target="_blank">Banking Day</a>:
"The strong housing market is suppressing home loan arrears. 
"Fitch Ratings, in its latest Dinkum Index analysing the September 2014 quarter, put loans 30 days or more past due at their lowest level since late 2007. 
"Fitch said delinquencies dropped by 14 basis point to 1.08%.
"Serious arrears also benefited, with loans 90 days or more in arrears sitting at 0.47%, the lowest level since December 2009.
"Arrears are expected to remain largely stable in fourth quarter 2014, Fitch said, due to low, stable interest rates, a strong housing market and lending, and relatively low (albeit rising) levels of unemployment."
Great to hear. While other developed countries have seen serious 90+ day arrears on up to 10 to 15 or more in every 200 mortgages in the period following the financial crisis, the equivalent figure for Australia is incredibly now below 1, which is wonderful news. The reasons are clear enough, being a combination of very low interest rates and the unique structuring of so many loans in Australia which <a href="https://petewargent.blogspot.co.uk/2014/04/stress" target="_blank">maintain repayments at the same level</a> when interest rates fall, thus allowing borrowers to build up sizeable repayment buffers when variable mortgage rates have been declining over a period of years.
This mirrors what has been <a href="https://petewargent.blogspot.co.uk/2014/11/genworth-q3" target="_blank">reported by Genworth (ASX: GMA) in Q3</a>, that delinquency rates have been cascading lower by book year since FY2008.
<img src="https://4.bp.blogspot.com/-iMv-Wc5yns0/VGaYJx9iI_I/AAAAAAAAROg/lbdTaLoqO7w/s640/GMA1.jpg">
That's great to see, with foreclosures in Australia now considered to be "<a href="https://petewargent.blogspot.co.uk/2014/04/stress" target="_blank">vanishingly rare</a>".
Arrears to Rise from Exceptionally Low Levels? 
One would think almost certainly, yes. There is realistically only one direction in which mortgage arrears can head over the medium term from such a pleasingly low base. Relatively low interest rates are more or less a 'shoo-in' for most of the remainder of this decade, but the other major factor which can cause mortgage arrears - unemployment - is rising in eminence across many regions of Australia.
<img src="https://1.bp.blogspot.com/-rebYUuOgS_E/VI3XQNQk8UI/AAAAAAAAR5g/9PSOV1YkK7Q/s1600/b2.jpg">
Where are the Risk Areas?
We will take an updated look at the latest unemployment rates by region data on Thursday of this week, but here are a few of the regions where unemployment rates have increased concerningly.
<img src="https://2.bp.blogspot.com/-E86GaqEpdTw/VI2Xh26I1-I/AAAAAAAAR4w/WXLYkm7KToU/s1600/LOGAN.jpg">
<a href="https://petewargent.blogspot.co.uk/2014/11/abc-cuts-10-percent-of-staff-and-sa" target="_blank">Recent reports have also highlighted</a> the elevated risk of credit default in a number of Queensland regions as the unemployment rate rises.
We'd add to this list of potential risk areas parts of South Australia where a weak labour market and consumer confidence have contributed to 5 year declines in median house prices in a number of outer suburbs such as Davoren Park, Elizabeth North,  Elizabeth East, Craigmore, and so on.
Fair Warning - Industry Closure Risk
Some on the chat forums have chosen to highlight that withdrawal of Holden may only directly result in a relatively small number of jobs and they have therefore dismissed the risk as insignificant.
That's one way to look at it, but a market is made up by the full range of views, and in this case we'll take the sell side of the equation.
As pointed out here previously, when one considers the total number of jobs which are likely to be lost from the shuttering of the car manufacture industry over the next few years - including from suppliers and support industries - in concert with flow-through impacts of rescinded business investment, consumer spending and so on - the potential impact on economic output of some $29 billion and up to 200,000 jobs nationwide could be <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2014-04-14/study-warns-carmakers-exit-could-see-200000-jobs-lost/5389682" target="_blank">prodigious</a>.
It's easy to dismiss the closure of the Holden plant as overblown, and to state that those who do lose their jobs can be redeployed.
Indeed so, but whether or not they can be redeployed within South Australia is another matter entirely.
If the forecast 24,000 jobs are lost in the state, note that the economy has taken fully seven years to add 24,000 jobs, and has added a net total of zero over the last four.
<img src="https://2.bp.blogspot.com/-qF47FgelF4g/VI3jrxoShBI/AAAAAAAAR5w/ceSC1asejvE/s1600/SOuth%2BAustralia.jpg">
A similar point stands for Geelong (and I own property in Geelong, so this is not merely the viewpoint of vested interest).
Article continues on the next page. Please click below.
<hr class="system-pagebreak">
Positive Investment Decisions
Buying a home to live in is one thing, of course, but the primary advantage that a property investor has is that they are not compelled to buy property anywhere or at any time, so the shuttering of an entire industry should act as an automatic red flag.
"It might not be that bad" is not a compelling case for an investment decision.
Anyway, that's our view - that you should look for thriving economies, not those about to be sideswiped by a king-hit - so fair warning.
We'll provide an updated report on trends in elevated unemployment rates by region on Thursday of this week, so stay tuned for that.
In the meantime if there is one phrase to look out for which should always make property investors wince it is that "prices can't fall further in this region", which is another alarm bell which has so often foreshadowed financial loss.
MYEFO Impacts - The "Shock Absorber"
In the forthcoming MYEFO Treasurer Hockey will announce that the budget will be used as a "shock absorber" to shield the downside to the Australian economy from its declining terms of trade, driven by falls in key commodity prices, in particular that of iron ore.
<img src="https://3.bp.blogspot.com/-cXcsJ4JwoNs/VI3Ln628PBI/AAAAAAAAR5M/VdpOpY9Q8U8/s1600/IO%2Bprice.jpg">
What will this "shock absorber" mean? We will have to wait for the details, but one might expect to hear announcements concerning the following:
<ul>
<li>heavy government expenditure of infrastructure projects; and </li>
<li>thousands of jobs to be cut from the merger of closure of scores of government agencies, particularly in Canberra.</li>
</ul>
Potentially thousands of job cuts does not bode at all well for Canberra or the ACT housing markets in 2015, with rents already declining and now dwelling prices looking set to follow suit. Pass.
"Busting Labour Market Myths" 
Our chart packs have consistently revealed a worrying trend in Australia in recent years, that with the honourable exception of Queensland, <a href="https://petewargent.blogspot.co.uk/2014/10/city-versus-country-widening-jobs-gulf" target="_blank">regional Australia is not creating jobs</a> in aggregate and unemployment is therefore rising worryingly in many regional centres and net population growth must in turn slow.
One of Australia's leading economic journalists Peter Martin takes aim at another of the great labour market myths in his piece 'Busting Labour Market Myths' in <a href="https://www.theage.com.au/federal-politics/political-opinion/busting-labour-market-myths-why-your-job-is-far-more-secure-than-you-think-20141213-125ggs" target="_blank">The Age</a>: "Of course we'll tell our children that they'll be doing more telework – working from home, cafes, etc. 
"Everyone knows that's true. The last government said it enough while spruiking the NBN. 
"It isn't true - at least not so far.
"Only 5% of us describe home as our main place of work, and nearly all of them are self-employed. 
 "Only around 1.5% of workers for employers describe home as their main place of work, and if anything the proportion has slipped in the past decade.
 "All up, the labour market is changing (fewer of us are employed in manufacturing for instance) but it isn't changing in many of the ways that we think.".
Quite so.
Working from Home has Declined
The short report which Peter Martin is referencing here is the enlightening <a href="https://onlinelibrary.wiley.com/enhanced/doi/10.1111/1467-8462.12085/" target="_blank">Two Decades of Change</a> document, which is well worth a read.
The report reveals some interesting trends, highlighting for example how the southern states have fallen way behind in terms of their economies and labour market growth, with employment growth in Tasmania and now South Australia in particular having tanked and unemployment now rising, trends which have been highlighted here previously.
<img src="https://1.bp.blogspot.com/-hbgxMa94YRQ/VI2aCWTYmkI/AAAAAAAAR48/X1J9YlRNRzw/s1600/sa.jpg">
The Working from Home 'Phenomenon'? On the working from home phenomenon, the Two Decades of Change report is quite conclusive:
"Yet another often-heard claim is that, facilitated by changes and advances in information and communication technology, work is increasingly being undertaken away from conventional workplaces, and more specifically in the homes of workers. 
"However, the available survey evidence provides little support for such a claim. Analysis of data from the HILDA Survey by Wooden and Fok (<a href="https://onlinelibrary.wiley.com/enhanced/doi/10.1111/1467-8462.12085/#aere12085-bib-0022" title="Link to bibliographic citation">2013</a>), for example, shows:
"While taking work home is relatively common (with almost 23% of Australian workers reporting doing at least some paid work at home each week), for relatively few workers (just 5%) could home be described as their main location of work.
"The majority of this small group of home workers is self-employed—only a little over 1% of employees spend the majority of their work hours at home.
"If anything, the incidence of working at home fell over the course of the last decade.
"Such conclusions are broadly consistent with survey data periodically collected by the ABS as part of its Locations of Work Survey (ABS Cat. no. 6275.0). 
"Notably, the incidence of employed persons who report that their home is their main place of employment fell slightly between 2000 and 2008 (from 7.1% to 6.4%)."
This is indeed commensurate with what was concluded by the ABS Locations of Work survey as reported here previously.
In fact, the principal reason given by survey respondents for working from home was that they had become "snowed under" and fallen way behind on their workloads in the their main workplace.
All available <a href="https://petewargent.blogspot.co.uk/2014/07/x" target="_blank">studies</a> and <a href="https://petewargent.blogspot.co.uk/2014/05/rba-on-housing" target="_blank">reports</a> have shown that, quite apart from undertaking a sea-change and heading en masse for the regions, Australia's capital cities are in fact becoming increasingly centrally focused in terms of population growth, dwelling price growth, economic growth and employment growth.
You can visit <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) or Pete's <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blog</a>.
His latest book is '<a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>' .
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pwargent-M4siyDbqQY

Mortgage arrears decline to seven year lows... so where are the risks?

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Reserve Bank (RBA) governor Glenn Stevens has “hosed down speculation” of a rate cut, according to an ANZ Research analysis of his latest media comments.
Stevens told The AFR that the problem with the economy is a lack of "animal spirits", rather than an issue with the price of money, and emphasized the importance of providing a steady and predictable monetary policy.
He pointed to the swinging expectation of economists and experts as to where rates would move to and when.
"We have had, a few times over the period of stability that we have already had, at various times some commentators saying they still think rates might go down a bit. That swung to “They will go up”. It swung around a few times," Stevens said.
ANZ Research’s latest bulletin notes that Stevens’ comments have reinforced their view that the "RBA clearly would prefer a substantially lower exchange rate to lower interest rates, and while it hasn’t closed off the possibility of a rate cut, at the moment it seems less than convinced that a lower cash rate would assist the recovery".
They pointed specifically to his comments that a cut in the cash rate “has to remain an open question” and that if the RBA believes it will assist confidence then it may be on the table for consideration in 2015.
Stevens noted that the position of the RBA is to foster confidence by giving people the sense that they can plan ahead. While he noted that not everything is predictable, their aim is to make it as stable as possible.
"If you think that confidence is the thing that is kind of the missing ingredient, then what can we do for confidence? The answer that I came up with is we could be steady and predictable and be clear about that. So that’s what we have sought to do," he said.
The main factor ANZ Research is watching will be the Australian dollar.
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RBA hoses down rate cut speculation: ANZ

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Yesterday, APRA stated that they had sent letters to all authorised deposit taking institutions (ADIs) outlining the steps they intend to take to enforce residential lending practices.
APRA noted that they would be increasing supervisory oversight onto lending.
Here are five comments to note:
<ol>
<li>“Interest rates remain at historically low levels, household leverage remains high, and housing loans represent a large and increasing concentration on many ADI balance sheets. Strong competition in the housing market is also evident, which is accentuating pressure on lending standards. Against this backdrop, housing credit growth has accelerated, with lending to property investors particularly strong; the Reserve Bank of Australia (RBA) has noted that this could be funding additional speculative activity in the market.” </li>
<li>“There are a number of additional regulatory and supervisory tools that APRA can apply to address emerging risks, building on the enhanced monitoring and review of recent years. These include additional supervisory monitoring and oversight, supervisory actions involving Pillar 2 capital requirements for individual ADIs, and higher regulatory capital requirements at a system-wide level. Beyond this, there are also more direct controls such as regulatory limits on lending activities, as introduced in other jurisdictions to manage risks emerging in the housing market.” They do note that they do not propose increases in system-wide capital or to introduce new regulatory limits, but does say they will keep them “under active review”. </li>
<li>Higher risk lending includes, for example, a high proportion of lending at high loan to income ratios (LTI), lending at high loan to valuation ratios (LVRs), lending on an interest-only basis to owner-occupiers for lengthy periods and lending at very long terms. In the current environment, where an ADI is undertaking large volumes of lending in these categories, or increasing this higher risk lending as a proportion of new lending, this will be a trigger for the consideration of supervisory action.” </li>
<li>“Given the currently very strong growth in investor lending, supervisors will be particularly alert to plans for rapid growth in this part of the portfolio. For example, annual investor credit growth materially above a benchmark of 10 per cent will be an important risk indicator that supervisors will take into account when reviewing ADIs’ residential mortgage risk profile and considering supervisory actions. The benchmark is not intended as a hard limit, but ADIs should be mindful that investor loan growth materially above this rate will likely result in a supervisory response.” </li>
<li>“The serviceability buffer assumed by ADIs as part of this assessment accommodates not only future changes in interest rates but also unexpected changes in borrower income and expenses. Practice in setting the serviceability buffer varies across the industry, with some assessments allowing borrowers to take on debt at very high multiples of their income.”</li>
</ol>
APRA notes that a prudent serviceability buffer is at least 2% above the loan product rate, with a minimum floor assessment rate of 7%.
They do suggest that “good practice” is the maintain a buffer and floor rate above these levels rather than operating at the minimum expectation, and that those who do keep to the minimum will more likely face further supervision.
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Five comments from APRA about lending standards

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ASIC will probe into the interest-only loans market as part of a broader review by regulators into home-lending standards.
It will look at the conduct of banks, including the Big Four and non-bank lenders, on compliance with consumer protection laws, including their responsible lending obligations.
The review follows concerns by regulators about higher-risk lending, following strong house price growth in Sydney and Melbourne.
ASIC, APRA, the Reserve Bank of Australia (RBA) and the Treasury are all working together to monitor, assess and respond to risks in the housing market.
Interest-only loans as a percentage of new housing loan approvals by banks reached a new high of 42.5% in the September 2014 quarter.
The ASIC Deputy Chairman Peter Kell said it was critical that lenders are not putting consumers into unsuitable loans that could see them end up with unsustainable levels of debt.
"Compliance with responsible lending laws is a key focus for ASIC," said Kell.
"If our review identifies lenders’ conduct has fallen short, we will take appropriate enforcement action.".
The Australian Prudential Regulation Authority (APRA) also announced it has written to all authorised deposit-taking institutions (ADIs) to set out plans for a heightened level of supervisory oversight on mortgage lending in the period ahead. 
Under interest-only loans, a borrower’s repayment amount will only cover the interest on the loan.
The principal amount borrowed will not reduce unless the borrower chooses to make extra repayments.
Paying interest-only means that a borrower will pay more interest over the term of the loan.
Some borrowers choose interest-only loans to maximise the amount they can borrow, especially if it is for investment purposes.
Loans are usually only interest-only for a set period of time, after which the borrower will either need to increase their repayments to start reducing the principal, or repay the loan in full.
Although interest-only loans can be appropriate in the right circumstances, interest-only loans can raise a number of risks, such as:
<ul>
<li>Whether the borrower can only afford a loan because it is interest-only</li>
<li>Whether the borrower can afford principal and interest repayments at the end of the interest-only period, and</li>
<li>Whether the borrower understands the impact of not making principal and interest repayments.</li>
</ul>
In August 2014, the Federal Court handed down its first decision on the responsible lending obligations: ASIC v The Cash Store (in liquidation).
 The Federal Court’s decision made it clear credit licensees must, at a minimum, inquire about the consumer’s current income and living expenses to comply with the responsible lending obligations. 
In response, in November 2014 ASIC updated Regulatory Guide 209Credit licensing: Responsible lending conduct to incorporate the general findings of the Federal Court on the responsible lending obligations for credit licensees.
ASIC also updated its advisory to make it clear that credit licensees cannot rely solely on benchmark living expense figures rather than taking separate steps to inquire into borrowers’ actual living expenses.
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