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

Stockland

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Stockland has placed first on the Dow Jones Sustainability Index (DJSI) for the fifth time.
The index looks at the financial performance of sustainability-driven companies across the world and seeks to provide asset managers with objective benchmarks to manage sustainability portfolios.
Categories assessed include corporate governance, risk management, climate change strategy, environmental management, human capital development and stakeholder engagement.
Mark Steinert, Managing Director and CEO at Stockland, said the company was proud to be recognised for its sustainability practices.
"Having been a member of the DJSI World for the past 12 years, this accolade truly demonstrates our commitment to sustainability leadership,” he said. 
"At Stockland we have taken a proactive and holistic approach to sustainability, developing policies and implementing initiatives that have cemented our industry leadership for more than a decade.”
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j.ballantyne1990-6AQqhLzZaK

Stockland tops Dow Jones sustainability index

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<a href="/developers/stockland">Stockland</a> is making good on a plan to realise a major mixed-use development in suburban <a href="/new-apartments/epping-nsw-2121">Sydney's Epping</a>, lodging plans last week that will pave the way for a substantial tower.

At the heart of the $181.5 million build is a new 29 storey building that would be dedicated to a residential aged care and independent seniors living units. The size and sophistication of aged care developments across the nation has advanced markedly in recent years, although Stockland's bid for <a href="/developments/epping-nsw-2121">29-33 Oxford Street</a> and 6-14 Cambridge Street is by far and away the nation's tallest.

Already a leading retirement living provider, Stockland in league with the Catholic Diocese of Broken Bay intend to deliver the project which would stand on the grounds of Our Lady Help of Christians Church.

As such the project is multi-faceted in that offices, retail, a primary school and ancillary church uses are also included.

<h2>29-33 Oxford Street application summary</h2>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public//pictures/article-images/image41_13.jpg" rel="gallery-all" title="Street level perspective. Image: Architectus"><img alt="" class="image-article-full-width-580px" height="255" src="/sites/urban.melbourne/files//styles/article_full_width_580px/public/pictures/article-images/image41_13.jpg?itok=l4eHlKNK" title="Street level perspective. Image: Architectus" width="580"></a>

<figcaption>Street level perspective. Image: <a href="/architects/architectus">Architectus</a></figcaption></figure><ul>
<li>Tower to stand 95.9 metres</li>
	<li>Included is a 132 bed residential care facility and 205 independent seniors living units</li>
	<li>2-3 storey primary school for 210 students with a second stream school planned, boosts student numbers to 420</li>
	<li>200 seat parish hall</li>
	<li>Landscaped public areas</li>
	<li>Basement provisions for 372 vehicles</li>
</ul>
<a href="/architects/architectus">Architectus</a> conceived the precinct design, and in their Urban Design report outlined the opportunity the sizeable site provides:

<blockquote>
This is an extraordinary proposal for an extraordinary site. Unlike adjacent developments, the proposal will provide great public benefit to the locality, including parish, education, cultural, residential and retail facilities.

The proposal has been designed for the long term and intends to consolidate the Parish’s contribution to the community for the next 100 years. The proposed housing in the vicinity of the Town Centre and Epping Station, will keep elderly residents engaged and connected to the community for a longer period of time.

Similarly, the proximity of the elderly to young children creates the potential for mutual benefit, while prolonging the health and happiness of our oldest citizens.
</blockquote>

Stockland first flagged its intentions for the site during May after announcing the tie up with the Catholic Church. At the time Stockland’s CEO of Retirement Living Stephen Bull noted:

<blockquote>
The site for the proposed new community is within walking distance to rail, which will soon be upgraded to Metro, and the Epping town centre.

We know seniors want to be part of a vibrant, thriving community close to public transport, shops, clubs, cafés and restaurants, and we want to provide options for people to remain living in the communities they know and love as they age, close to families, friends and services.
</blockquote>

The existing heritage-listed church will be preserved enhanced externally.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public//pictures/article-images/image37_10.jpg" rel="gallery-all" title="Aged care among many purely residential towers. Image: Architectus"><img alt="" class="image-article-full-width-580px" height="356" src="/sites/urban.melbourne/files//styles/article_full_width_580px/public/pictures/article-images/image37_10.jpg?itok=CLVIUjkW" title="Aged care among many purely residential towers. Image: Architectus" width="580"></a>

<figcaption>Aged care among many purely residential towers. Image: Architectus</figcaption></figure>Stockland is already heavily vested in the national aged care sector with over 12,000 residents calling a Stockland retirement village their home.

Whilst the Epping application is noteworthy for its sheer height, it is not the only substantial development Stockland has on its agenda. The developer continues to push for a <a href="/news/stockland-pushes-for-the-pines-to-include-retirement-apartments">mass redevelopment of its Stockland the Pines shopping centre</a> in <a href="/new-apartments/doncaster-east-vic-3109">Melbourne's Doncaster East</a>; included there were 283 retirement living apartments although Manningham City Council stymied the application mid year.

Birtinya Vertical Village also counts itself in the Stockland stable. South of Sunshine Coast, the project is all but complete and features a string of multi-level retirement villages with supporting services.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public//pictures/article-images/image91_4_0.jpg" rel="gallery-all" title="Stockland's Doncaster East bid. Image: Plus Architecture"><img alt="" class="image-article-full-width-580px" height="273" src="/sites/urban.melbourne/files//styles/article_full_width_580px/public/pictures/article-images/image91_4_0.jpg?itok=82tZnH32" title="Stockland's Doncaster East bid. Image: Plus Architecture" width="580"></a>

<figcaption>Stockland's Doncaster East bid. Image: Plus Architecture</figcaption></figure>
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silvermb

Stockland moves on the nation's tallest integrated aged care development

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Construction has started on the first townhouses at Stockland’s masterplanned Orion at Braybrook community in Melbourne’s inner-west .
Some 30% of the project already sold.
Located 12.2 kilometres from Melbourne’s CBD, the new 11.5-hectare townhouse community is the largest standalone infill townhouse development in Melbourne’s inner-west.
Work has commenced on the first stage with Stockland engaging townhouse construction specialists, Glenvill Projects, to deliver stage 1. 
Ben Cantwell, General Manager of Retirement Living and Medium Density at Stockland, said Stockland has made a commitment to the City of Maribyrnong to ensure the development meets the council’s 5% Affordable Housing Target.
Townhouses are currently available for sale in Stage 2 of the project after the first stages sold out late last year.
Orion at Braybrook will comprise up to 422 contemporary townhouses on completion, with a range of two, three and four-bedroom designs available to homebuyers looking for low-maintenance living adjacent to 10 hectares of parkland with two train stations nearby.
The two and three-storey townhouses will feature flexible floor plans, quality fixtures and fittings, intelligent open-plan interiors and private courtyards and balconies.
Every townhouse is design to achieve a minimum energy rating of 6 stars with natural light and airflow, solar-boosted hot water systems and energy efficient LED lighting to reduce energy bills.
With Footscray’s café culture on their doorstep, townhouses are currently available from $699,000 for a three-bedroom, two-bathroom design with a single garage. 
 
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Construction starts on Stockland's flagship townhouse development at Braybrook

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Stockland has sold the Wallsend Shopping Centre in Newcastle to Sydney-based Haben Property Group for $81 million – reflecting a yield of 6.6%.
The 12,000 square metre shopping centre, anchored by Coles and Aldi supermarkets, is set on a 42,114 square metre site, some 11 kilometres west of the CBD.
The sale was in line with Stockland's book value.
The 1988 centre includes 37 specialty stores, including three kiosks, one office, five ATMs and a McDonald’s.  
CBRE, who sold the property, noted a lower supply pipeline of new shopping centres was being offered to the market across NSW. 
According to CBRE Research, just over 12,000 square metres of new space is forecast for delivery in 2018 – well below the long-term average of 47,500 square metres.
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Stockland sells Wallsend Shopping Centre for $81 million

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Several factors are changing the Australian retail landscape and increasing the importance of shopping mall location and quality for mall owners, according to Moody's.
These factors are changes in consumers' shopping habits, including the growing popularity of online shopping, sluggish consumer spending growth, and increasing urbanization that is widening the wealth gap between metro areas and the rest of the country suggests that latest report from Australian real estate trusts (A-REITs).
"These factors will have varying effects on the five single-A-rated (A-REITs) with retail exposure over the next three to five years," the Moody's report said.
"Scentre Group, GPT Group and Mirvac Group are better equipped to face these challenges and will maintain their portfolio quality because of their malls' favorable tenant mixes and locations in wealthy and densely populated catchment areas."
The report notes that it "expects year-on-year retail comparable net operating income (NOI) growth to be 3.0%-3.5% for Mirvac during the coming 12-18 months, and 2.5%-3.0% for GPT and Scentre."
Without recycling initiatives, portfolio quality will weaken for Vicinity Centres (A2 stable) and Stockland Group (A3 stable), whichhave higher exposure to underperforming, midsize shopping malls.
It is expected their retail comparable NOI growth will remain below the others in the peer group, with Stockland at 2.2%-2.4% and Vicinity at 1.4%-1.6% during the coming 12-18 months.
The three A-REITs' exposure to the retail sector varies, it is around 20% of group EBIT for Mirvac, 30%-35% for Stockland, and 40%-50% for GPT according to the report.
Of the three, Moody's suggests Stockland's portfolio is the most exposed to the changes in the retail sector because of its lower asset quality and higher exposure to midsize assets located in areas with weaker economic fundamentals.
"Vicinity and Stockland are working to improve asset quality, their plan's are to sell weaker performing assets and to develop residential, hotel and office space at existing malls are likely to improve their portfolio quality. However, we believe that they are unlikely to make step changes in their portfolio quality as it will take time to market assets and find appropriate buyers at this point in the property cycle," noted the investment analysers.
<img src="https://www.urban.com.au/images/2018/6/22/Moody%20Graph%201.JPG" alt="">
The retail environment is challenging and shopping mall owners have been facing slowing retail sales growth in Australia for the past four years, driven by low wage growth, rising household costs and, more recently, moderating house price growth, especially in Sydney and Melbourne.
These factors will continue to challenge retail A-REITs and their tenants, because they will constrain consumer spending and retail sales over the next 12-18 months.
<img src="https://www.urban.com.au/images/2018/6/22/Moody%20Graph%202.JPG" alt="">
Additionally, the increasing popularity of online shopping will slow sales for traditional brick-and-mortar retailers and increase competition among shopping malls.
Despite what was only a soft launch of Amazon.com, in 2017, the percentage of retail sales made online in Australia (by dollar value) was 7.5%, the report noted.
With online sales in more established markets like the US and the UK at 12.5% and 15.5%, respectively, the Australian online market has room to grow over the next several years.
In move to capture a greater share of this growth, Amazon launched its subscription-based free delivery service, Amazon Prime, on 19 June at half the price of membership in the US.
Shopping mall owners are adapting to the increasing popularity of online shopping by expanding digital, social media, and mobile retail offerings as well as increasing their weighting to service-based tenants.
The report expects, "A-REITs to maintain this focus as they look to maintain their relevance in the face of changing consumer habits".
"As sales growth slows, expect retailers to focus more on store productivity across their existing networks."
<img src="https://www.urban.com.au/images/2018/6/22/Moody%20Graph%203.JPG" alt="">
The recent acceleration of store closures, particularly from large department stores such as Myer, Target and Big W that are actively looking to scale back their sizable footprints, will alter shopping malls’ tenant mixes and weaken their ability to re-lease space now occupied by specialty stores at values above previous leasing arrangements.
The report forecasts that, struggling retailers will continue reducing floor space and closing stores but that despite these challenges, solid economic conditions are expected, which combined with stringent planning and zoning restrictions that limit new shopping mall development, will continue to support A-REITs' shopping mall portfolios and credit quality.
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Stockland's retail portfolio most exposed as Australian retail landscape changes: Moody's

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Two months after planning manoeuvres came to light facilitating the <a href="/news/crows-nest-earmarked-for-sydneys-next-major-skyscrapers">delivery of two major skyscrapers</a> in Crows Nest, adjacent St Leonards is potentially up for a similar scaled development.

Stockland has identified 601 Pacific Highway as ripe for renewal, enlisting Architectus to create a planning proposal for two hulking towers. Spanning 63 levels and 45 levels, the taller of the duo would stand in excess of 200 metres above ground, whilst the shorter tower reaches approximately 145 metres.

The real estate company's push to realise the site's rezoning and subsequent redevelopment in light of the NSW Department of Planning and Environment's strategic review of the St Leonards and Crows Nest Station Precinct which effectively encourages intensified development in the area.

Standing as a 13 storey A-grade office tower approximately 200 metres east of St Leonards railway station, the asset was acquired by Stockland during 2003 with an eye toward a future renewal opportunity.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public//pictures/article-images/image19_21.jpg" rel="gallery-all" title="Podium space envisaged for 601 Pacific Highway. Planning image: Architectus"><img alt="" class="image-article-full-width-580px" height="388" src="/sites/urban.melbourne/files//styles/article_full_width_580px/public/pictures/article-images/image19_21.jpg?itok=oI3RgCZe" title="Podium space envisaged for 601 Pacific Highway. Planning image: Architectus" width="580"></a>

<figcaption>Podium space envisaged for 601 Pacific Highway. Planning image: Architectus</figcaption></figure>That opportunity will under preliminary plans see Stockland chase a predominantly residential outcome across the site, with 500 plus apartments expected. 5 basement levels for 255 vehicles are included, as is a mixed-use 7 level podium.

Office space is slated for the podium above ground floor retail uses, with community uses such as a childcare facility spanning almost 2,000 square metres.

In Architectus' words "601 Pacific Highway will be a place where people shop, live, work and gather to enjoy the public domain. The indicative concept design results in a design outcome which will strengthen the town centre with active and engaging ground floors and provide an iconic tower appropriate to its strategic location."

Stockland's bid is comfortably the largest proposal for the suburb north of Sydney's CBD. St Leonard's rapidly evolving skyline sees existing towers reaching 35 levels, whilst 617-621 Pacific Highway has approval in place for a 180 metre residential tower.

617-621 Pacific Highway abuts the Stockland site.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public//pictures/article-images/image20_14.jpg" rel="gallery-all" title="601 Pacific Highway and within an emerging built form context. Planning image: Architectus"><img alt="" class="image-article-full-width-580px" height="231" src="/sites/urban.melbourne/files//styles/article_full_width_580px/public/pictures/article-images/image20_14.jpg?itok=yJ6Vu9wG" title="601 Pacific Highway and within an emerging built form context. Planning image: Architectus" width="580"></a>

<figcaption>601 Pacific Highway and within an emerging built form context. Planning image: Architectus</figcaption></figure>Urbis compiled the Economic Impact Assessment for the rezoning of 601 Pacific Highway, making note that "North Sydney, Macquarie Park and Chatswood are now deemed more attractive for traditional office occupiers. The following market evidence indicates that this trend will continue for the foreseeable future:"

Although 7,500 square metres of office space is included within the planning proposal, it falls short of the existing building's 12,600 square metres.

Architectus' design for 601 Pacific Highway would potentially accommodate as many as 1,187 new residents, whilst an additional full-time, part-time and casual retail job rate of 109 is envisaged.

For Stockland, the bid to rezone the Pacific highway site reaffirms its re-emergence as an apartment developer in Sydney. The St Leonards site aside, Stockland has in its keep a 6237 square metre Rosebery development site and a <a href="https://www.propertycouncil.com.au/Web/Content/News/National/2018/McDonald_s_moves_into_apartments_with_Stockland.aspx">Parramatta opportunity</a> on the corner of Church Street and Victoria Road with plans approximately 350 apartments.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public//pictures/article-images/image22_17.jpg" rel="gallery-all" title="A childcare centre with a view. Planning image: Architectus"><img alt="" class="image-article-full-width-580px" height="317" src="/sites/urban.melbourne/files//styles/article_full_width_580px/public/pictures/article-images/image22_17.jpg?itok=HaJtuM15" title="A childcare centre with a view. Planning image: Architectus" width="580"></a>

<figcaption>A childcare centre with a view. Planning image: Architectus</figcaption></figure>
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Stockland plans to supersize its St Leonards renewal opportunity

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Former Stockland boss Matthew Quinn and wife Julie have scored quick buyers for their Berry weekender, with intentions of upgrading in the NSW South Coast town.
The Berry property, once known as Gladys, spent just 22 days on the market, well down on the town's 86 average.
The Quinn's paid $710,000 for the 1880s country weatherboard.
It has since been restored the heritage home.
The four bedroom quintessential cottage sits in 1070 square metres of gardens.
Carrie Bond at South Coast Properties agent secured the quick sale, though without revealing its sale price.
She described the home as one of the historic village's finest residences, having once accomodated Australian nun Mary McKillop.
Up in Sydney the couple's renovated two bedroom Kirribilli home has been quickly sold too, fetching $3.45 million, just over a year after they paid $2.6 million.
McGrath Neutral Bay agents Nigel Mukhi sold the home.
Quinn was managing director of Stockland for 13 years and is currently a non-executive director of Regis Aged Care, CSR Limited and Landcom, and chairman of Class Limited and Carbonxt Group Limited.
This article first appeared in The Sunday Telegraph. 
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Former Stockland boss scores quick Berry sale

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Australia’s largest residential developer, Stockland HAS announced the acquisition of a new development site 4.5 kilometres north of the Perth CBD, adding 100 terrace homes to its Perth pipeline.
The 2.84 hectare site at Glendalough is Stockland’s first standalone acquisition for medium density development in Perth.
Subject to approvals, IT will create 100 architecturally-designed terrace homes in a high quality, liveable and walkable community setting, featuring 2,500 square metres of parklands, including large mature trees, just 600 metres from Glendalough train station. 
Ben Cantwell, General Manager, Medium Density and Retirement Living at Stockland, said the location just north of the Perth CBD, within walking distance to a rail station which is only two stops to the city, and in close proximity to Lake Monger, local schools, shops and the vibrant Subiaco and Leederville entertainment precincts. 
Col Dutton, General Manager of Stockland WA, said the latest purchase follows its $91 million acquisition of more than 4,600 residential land lots over three sites last year.
"This site is an important opportunity to help deliver on the ‘missing middle’ in Perth’s inner suburbs, increasing choice for home-buyers through well-designed terrace homes, close to everything the city has to offer," Dutton said.
Stockland purchased the Glendalough site from a private vendor for $17.9 million, subject to a leaseback agreement with the current aged care operators on site until completion of their new aged care facility on land immediately to the north.
Located adjacent the Mitchell Freeway, the site is in close proximity to Lake Monger Primary School.
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Stockland announce new development in Perth’s north

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ASX listed property player Stockland is intent on adding to its <a href="https://www.stockland.com.au/retirement-living">already extensive portfolio</a> of Melbourne retirement living villages by seeking to hive off a part of The Pines Shopping Centre in Doncaster East for hundreds of new retirement living apartments.

Although keen to diversify uses across the centre, Stockland may find it more difficult to realise the outer suburban project in its submitted form. Last week Manningham City Council released a planning report for the proposed 283 retirement living apartments, waving away any intentions of approval.

At 181 Reynolds Road the Doncaster East development sits on the perimeter of Stockland's The Pines Shopping Centre which accounts for a considerable 77,633 square metre footprint.

Stockland and Plus Architecture have positioned the new development on the Reynolds Road and Blackburn Road intersection, replacing an open air car park south and west of the existing shopping centre.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/image91_4.jpg" rel="gallery-all" title="Street level perspective. Planning image: Plus Architecture"><img alt="" class="image-article-full-width-580px" height="273" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/image91_4.jpg?itok=EH_ddIQO" title="Street level perspective. Planning image: Plus Architecture" width="580"></a>

<figcaption>Street level perspective. Planning image: Plus Architecture</figcaption></figure>Four multi-storey buildings constitute the development and are supplemented by communal facilities and 835 car spaces (with a portion dedicated to shoppers). Owing to the gradient of the site the tallest building spans approximately 35 metres above the street level.

Manningham City Council's response has been less than ideal from Stockland's perspective.

Council has listed a raft of issues with the Doncaster East application, ranging from non compliance with aspects of The Pines Activity Centre Structure Plan, insufficient community benefit and architectural excellence relative to height and scale, inadequate protection of internal amenity and concerns relating to any future expansion of the shopping centre and bus interchange.

Consequently, Manningham City Council's internal planners have recommended that the proposal be rejected outright.

Accounting for 21,478 square metres of the existing site, the buildings would also include 7 retail spaces amounting to 1,003 square metres, and a medical centre for 10 practitioners over a 500 square metre foorrprint.

Of the 835 car spaces included in the project, 342 are dedicated to residents, 28 to visitors and a hefty 465 would add to the already 1,000 plus which are rolled into the centre.

Manningham City Council last week ruled against the proposal. Having been at planning since mid 2017 and based upon Council's decision, Stockland likely now faces a stint at VCAT or a substantial redesign in order to add the Doncaster East site to its retirement living portfolio.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/image147_0.jpg" rel="gallery-all" title="Render from inside the centre. Planning image: Plus Architecture"><img alt="" class="image-article-full-width-580px" height="368" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/image147_0.jpg?itok=0Bga6sgv" title="Render from inside the centre. Planning image: Plus Architecture" width="580"></a>

<figcaption>Render from inside the centre. Planning image: Plus Architecture</figcaption></figure>Aged care and retirement living in the area has been boosted of late by two other significant projects. Cockram during 2017 completed the first stage of a significant CHT Architects-designed independent living centre in Templestowe; it includes 150 bedrooms over four levels plus associated amenites and admin offices.

Urban.com.au during March highlighted <a href="/news/benetas-goes-bigger-on-doncaster-hill">Benetas' bid to upscale their Doncaster Road development</a> to include 74 independent living units and a 128 room residential aged care wing.
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Stockland pushes for The Pines to include retirement apartments

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The former Stockland boss Matthew Quinn and wife Julie have snappily sold their renovated Kirribilli terrace for $3.45 million.
It's a <a href="https://www.realestate.com.au/sold/property-house-nsw-kirribilli-127738714" target="_blank">quick flip for the couple</a>, who only paid $2.6 million in late 2016.
McGrath Neutral Bay agent Nigel Mukhi had a guide of $2.9 million. After 90 groups went through and it sold to downsizers from Pymble.
The Quinn's are also selling their Berry weekender, an 1880s country weatherboard, which has been restored by the couple who paid $710,000 four years ago.
They're set to upgrade and base themselves in the South Coast village.
Quinn stepped down from Stockland Group in 2012.
This article was first published in the Saturday Daily Telegraph.
 
 
 
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