<a href="https://www.apartments.com.au/developers/consolidated-properties">Consolidated Properties Group</a> (CPG) is approaching the launch of its latest Brisbane riverfront development, Castile, on the dress circle Skyring Terrace in Newstead.

VIP buyers are now being engaged, with a full public sales launch coming later this year.

Positioned as the final opportunity to secure a new absolute riverfront residence on the East bank of Newstead, Teneriffe or New Farm, Castile at 47 Skyring Terrace has been designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a> as a timeless addition to the Brisbane skyline.&nbsp;

[smartcode_project:default project_id=150489 project_image_fid=371113]

The name Castile draws on themes of permanence, sophistication and legacy, reflecting a broader vision centred on enduring architecture and timelessness in the rarest of riverfront positions.&nbsp;

CPG Chairman and CEO Don O’Rorke said the project had been envisioned as a future Brisbane icon.&nbsp;

“With 47 metres of direct river frontage and never to be built out views, 47 Skyring Terrace is the definitive address on the Brisbane River,” O’Rorke said.&nbsp;

[smartcode_project:default project_id=150489 project_image_fid=371114]

“Rather than following trend-based apartment design, Castile draws inspiration from Brisbane’s great heritage buildings, reinterpreting classical architecture into a contemporary riverfront landmark designed to stand proudly for the next 100 years,” he said.&nbsp;

The approved development will comprise 227 apartments across a 25-storey tower alongside a boutique six-storey riverfront building of just 12 residences.&nbsp;

Construction is scheduled to commence in September 2026.

[smartcode_project_cta:default project_id=150489]

Joel Robinson

CPG unveils Castile Newstead ahead of upcoming sales launch

Australia’s online shopping habits have shifted dramatically over the last decade. As eCommerce volumes surged, so too did the frustrations that came with traditional parcel delivery: missed deliveries, long Post Office queues, parcel theft and the challenge of being home during business hours.

Australia Post’s Parcel Lockers emerged as one of the more practical responses to that changing consumer behaviour.

What started as a relatively niche delivery option has evolved into a nationwide network of more than 1,400 self-service Parcel Lockers positioned at train stations, shopping centres, supermarkets and Post Offices across the country. The system allows Australians to send, collect and return parcels 24 hours a day, fundamentally changing how many people interact with deliveries.

The appeal is relatively straightforward: flexibility.

Instead of waiting at home for a delivery driver or rushing to a Post Office before closing time, users can direct eligible parcels to a Parcel Locker location of their choice. Once the parcel arrives, Australia Post sends a notification with a collection code or QR access through the AusPost app, allowing customers to retrieve their package at any time within the collection window.

For apartment residents in particular, the system has become increasingly valuable.

Higher-density living has created logistical challenges around deliveries, especially in buildings without concierge services or secure parcel rooms. Missed deliveries are common, while parcel theft has become an increasing concern as online shopping volumes continue to rise.

Australia Post itself has repeatedly highlighted the growing issue of “porch pirates” during peak shopping periods, encouraging customers to use Parcel Lockers as a safer alternative to unattended home deliveries.

That security aspect is one of the key reasons the Australia Post Parcel Locker network has grown so rapidly.

Parcel Lockers are positioned as secure, monitored collection points that reduce the risk of theft while also improving delivery efficiency for Australia Post. Instead of multiple redelivery attempts, parcels can be consolidated into a single secure destination.

The Parcel Lockers themselves are free to use through a MyPost account and support a range of parcel sizes up to 16 kilograms and dimensions of approximately 35 x 44 x 61 centimetres.

Beyond receiving parcels, the system has increasingly become integrated into the broader eCommerce ecosystem.

Customers can now use Parcel Lockers to return online purchases, while retailers have embraced the model as a way to improve delivery success rates and reduce friction in the shopping process. Australia Post has actively expanded partnerships with major retailers and promoted Parcel Lockers as part of a broader out-of-home strategy.

The timing of that expansion aligns with broader changes in Australian shopping behaviour.

The acceleration of online retail during and after the pandemic placed enormous pressure on delivery infrastructure. Parcel volumes reached record highs, particularly during Black Friday and Christmas periods, with Australia Post delivering more than 100 million parcels during peak festive seasons.

That growth forced logistics providers to rethink the “last mile” of delivery, widely regarded as the most expensive and operationally difficult stage of the process.

Parcel Locker systems have increasingly been viewed as part of the long-term solution.

The concept itself is not unique to Australia. Parcel Locker networks have become common globally, particularly across Europe and Asia, where dense urban environments and apartment living create similar logistical challenges. But Australia’s geography and suburban sprawl made adoption slower initially.

Now, however, the convenience factor is driving mainstream usage.

For commuters, Parcel Lockers near train stations allow parcels to be collected on the way home from work. For apartment dwellers, they remove the uncertainty around access and missed deliveries.

The rise of the AusPost app has also streamlined the experience, centralising notifications, tracking and Parcel Locker access into a single platform. Australia Post has increasingly pushed customers toward app-based delivery management, partly as a way to combat phishing scams and fake delivery notifications, which have become more sophisticated in recent years.

The Parcel Locker model is also beginning to influence property development itself.

Parcel management has become a growing consideration in apartment building design, particularly as online shopping becomes embedded in everyday life. Many new residential developments are now incorporating dedicated parcel rooms or Parcel Locker systems into foyers and communal spaces.

For developers, parcel management is increasingly viewed as part of the broader resident amenity offering, alongside gyms, wellness spaces and communal work areas.

That reflects a wider evolution in how residential buildings are designed.

Apartment buyers are placing greater emphasis on convenience, security and operational functionality, particularly in higher-density urban environments. Parcel delivery, once considered a minor operational detail, has become an increasingly important part of that equation.

Australia Post’s Parcel Locker network sits at the centre of that behavioural shift.

What began as a simple alternative delivery option has evolved into a key piece of infrastructure supporting Australia’s growing eCommerce economy and changing urban lifestyles.

And as online shopping continues to expand, the role of Parcel Lockers is likely to become even more embedded in how Australians live, shop and receive goods.

How Australia Post Parcel Lockers changed parcel delivery convenience in Australia

Perth’s new apartment market recorded its strongest quarter of sales since Q4 2021, with 412 apartments sold in Q1 2026 and a record quarterly sold value of $537 million, according to Urbis’ latest Apartment Essentials results.

Urbis said the March quarter result reflects strong, highly product‑specific demand across both ends of the market, from more attainable projects delivering at scale, through to premium stock being absorbed by equity‑rich downsizers.&nbsp;

David Cresp, Partner at Urbis, said the key story in Perth is not demand, it is the market’s ability to convert demand into delivered housing.&nbsp;

“This is the strongest sales quarter since Q4 2021, and it reinforces that demand in Perth is real and it’s local,” David Cresp said. “But the task now is delivery, turning that demand into projects that can actually be built and completed.”&nbsp;

[smartcode_project:default project_id=110291 project_image_fid=302785]

<h2>Affordable product leads, premium demand remains resilient</h2>

Sales in Q1 were led by more affordable projects, with The Boulevard (SKS Group) recording 115 sales in the quarter, the presentation noting this is only the second time a single project has surpassed 100 quarterly sales. The project was able to offer more affordable housing product right next to a train station.&nbsp;

Palmyra West (Finbar) also delivered strong results with 28 sales in Q1, following 84 sales in Q4, with an average price of under $800,000, underscoring depth of demand for well‑located, attainable new stock.&nbsp;

At the premium end, Urbis said downsizer demand is continuing, with the results highlighting Romeo (Applecross, Finbar) recording 75 sales and reaching almost 50% sold in one quarter.

Jual (Shenton Park, Celsius Property) also posted a strong quarter with 28 sales, reaching 39% sold in one quarter.

Urbis noted that Perth apartment demand is not speculative, not investor‑led, and not uniform, describing it as localised, often equity‑driven and highly product‑specific, a pattern reflected in the polarisation between strong “attainable” performers and premium downsizer product.&nbsp;

[smartcode_project:default project_id=148957 project_image_fid=364102]

<h2>Prices underpinned by costs, and the delivery risk is growing</h2>

Urbis said pricing pressure is cost not demand‑driven: construction costs and delivery risk are now a central constraint, with the results noting build costs remain elevated and volatile, and that energy, fuel and labour uncertainty weigh on feasibility.

David Cresp said a growing challenge for private Build‑to‑Sell developers is simply securing a builder in the current environment.

“Developers are really feeling the pressure from a building market that was operating at capacity and securing a builder is challenging,” David Cresp said, adding that even where a builder can be secured, “trying to get to the price that makes the development financially viable is incredibly challenging in the current market.”&nbsp;

Urbis’ broader WA commentary also notes that industry remains at or above capacity with lot and housing creation, and that many builders are limiting new sales to manage stretched workforces and fixed‑price contract pressures, conditions that flow directly into apartment feasibility and delivery timing.

[smartcode_project:default project_id=108869 project_image_fid=317905]

<h2>Supply: improving later, but still constrained, and Perth lags eastern benchmarks</h2>

While near‑term supply remains constrained, Urbis’ forecast shows completions lifting “Supply is forecast to be back above 1,500 apartments per annum for the first time since 2019”, with 1,775 completions forecast for 2026, and volumes remaining above that level over the following years.&nbsp;

Looking further ahead, completions are forecast to reach 2,500 in 2028, with the report noting 32% of that total is social/affordable, reflecting the role of government‑supported delivery in rebuilding the pipeline.&nbsp;

However, Urbis said Perth remains behind comparable markets on pipeline scale. In a national comparison of projects under construction, the report shows under construction Perth Build‑to‑Sell (BTS) at 3,446 apartments versus the Gold Coast at 7,922. Mr Cresp said “The challenge for Perth is how to we grow the delivery pipeline”.

Urbis’ conclusion is that Perth’s market is increasingly defined by product discipline and delivery certainty, with the research identifying “delivery certainty is key” and calling out builder risk and procurement models as core success factors, alongside “timing and staging”.&nbsp;

Perth apartment sales hit strongest pace since late 2021 as builder capacity tightens

<a href="https://www.apartments.com.au/developers/sammut-developments">Sammut Group</a> has secured development approval for its latest Brisbane apartment project, marking the Sydney developer’s next step in expanding its Queensland pipeline following the success of its debut Gold Coast development, Coast.

The approved project at <a href="https://www.apartments.com.au/new-apartments/44-glen-road-toowong-qld-4066">44 Glen Road, </a><a href="https://www.apartments.com.au/developments/toowong-qld-4066">Toowong</a> will deliver a 15-storey riverfront apartment building with 42 residences, significantly increasing the scale of the site’s previous approval for a smaller luxury scheme. Designed by Bureau^proberts, the development will comprise a mix of predominantly four-bedroom and two-bedroom apartments positioned to maximise Brisbane River and city views.

Sammut Director Julian Sammut said the group had been actively searching Brisbane for several years before identifying Toowong as the right fit.

“Brisbane was the right step for Sammut,” Sammut said.

“With the success of Coast we thought we should definitely look to do more in Queensland alone. We then pushed up to look at Brisbane. We've been looking for I'd say two to three years actually and it was hard to find the right location.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-23%20at%203.27.14%E2%80%AFPM.png?VersionId=dYAVIL7qdcGA8ojvkslSrLjczXFejSSx" />

Sammut said suburbs including New Farm and Teneriffe were considered before the group ultimately focused on Toowong due to its strong downsizer demographic and limited supply of developable riverfront land.

The site was acquired off-market after what Sammut described as a lengthy negotiation and planning process, with the developer pursuing an uplift to the original approval.

“We are DA approved now which is very exciting,” Sammut said.

“We've had our change approval come through and we've obviously doubled the height, 15 storeys plus rooftop. We've got 42 amazing apartments that are going to be coming to market soon.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-23%20at%203.27.26%E2%80%AFPM.png?VersionId=ohkRkY0dIZlqdfME2EZePsCQavRiBadE" />

Bureau^proberts said the design responds to Toowong’s evolving urban character, balancing contemporary apartment living with the area’s established residential identity.

“A place where traditional Queensland living has taken place for centuries; Toowong is seeing a shift of contemporary influence, commercial and retail hubs mixed with well-considered residential offerings – all the while maintaining its character and charm,” the architect noted in planning documents submitted to Brisbane City Council.

The architecture practice said the project’s form was shaped by its riverfront setting, flood considerations, neighbouring building scales, and view corridors.

“They said the mix of four and two-bedroom apartments capture the ‘fundamental qualities of Queenslander living,’ translated into the context of a contemporary subtropical building.”

The development sits just off Coronation Drive within walking distance of Toowong’s retail precinct and the upgraded Regatta ferry terminal, while also benefiting from proximity to the incoming green bridge connection to West End. Sammut said the accessibility and amenity offering were central to the site’s appeal.

The approval adds to growing residential activity along the Toowong riverfront, joining nearby projects including Consolidated Properties’ Monarch Residences and Spyre Group’s ARC Residences.

Sammut secures approval for debut Brisbane apartment development in Toowong

Developer Lanevick is heading back into Sydney’s apartment market after focusing more heavily on the luxury townhouse and terrace sector in recent years.

Lanevick, founded and directed by Steve Maroun, is expecting to receive approval in the coming months for a new apartment development in Gladesville, with the aim to launch it to the market later this year.

The 51-apartment project, designed by Studio Johnston, will comprise a mix of one-, two-, and three-bedroom apartments positioned toward the Hunters Hill downsizer market.

“Traditionally it’s been difficult for people in that market to downsize because there just hasn’t been the right product available,” Maroun said.

“We’re targeting buyers who might have 30 to 40 per cent of their house value sitting in the bank after downsizing.

“They still want good spacious entertaining areas, they still want quality design, but they also want flexibility and the ability to enjoy life a bit more after working hard for a long time.”

The project sits near Boronia Park and within close proximity to the Parramatta River foreshore, an area Maroun says offers more of a Hunters Hill lifestyle than a traditional apartment precinct.

“From a lifestyle perspective, it’s really more Hunters Hill than Gladesville,” Maroun said. “You’re close to the foreshore, close to parklands, and still connected back into the village precinct.”

From level four and above, apartments will capture water views&nbsp;toward Sydney Harbour. Communal amenity will include rooftop entertaining areas, wellness spaces, and a gym tailored toward owner-occupier buyers.

“We’ve really designed these apartments around that buyer coming from the Hunters Hill LGA and what they’re actually looking for in their next chapter.”

The proposed development has also been designed to respond to the changing character of the broader Gladesville town centre, where a growing number of mixed-use and residential proposals are expected to emerge over the coming years.

“Gladesville presented a rare opportunity to deliver a genuinely design-led residential project within an evolving lifestyle precinct, just moments from the growing Gladesville town centre, and we’ve approached the project with a strong focus on architecture, liveability and long-term community value,” Maroun said.

Maroun said Lanevick saw a first-mover advantage within the precinct as planning controls continue to evolve to accommodate greater housing density.

“We think there’s a real opportunity there that hasn’t really been serviced properly yet,” he said.

“There’s going to be a broader evolution of the whole Gladesville village precinct over time, particularly with more activation and mixed-use outcomes.”

The Venus Street proposal will include a commercial and retail component at ground level designed to contribute to that evolving streetscape activation.

“A big part of the thinking was how do you activate that area properly and create more vibrancy and amenity, which is what Hunters Hill has been looking for,” Maroun said.

Lanevick’s focus since 2020 has largely been on smaller-scale luxury townhouse and terrace developments. The developer recently completed Royale Randwick, also designed by Studio Johnston, where prices reached $3.65 million. The project was featured in the UDIA NSW 2026 Professional Development Prospectus and was also named a finalist for Development of the Year.

&nbsp;

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

Sydney

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Harry Triguboff’s Meriton has purchased a Sydney CBD western corridor office building for around $60 million with a likely serviced apartment hotel conversion in mind.
The 234 Sussex Street site (pictured below) is Meriton’s eleventh purchase since January 2013.
<img src="/images/2014/05/01/5ac4a803-c983-481f-bf1b-fe546428007b_FS.jpg" alt="">
The Australian report calculated the group spending $576 million on sites.
The 13 storey Sussex Street building last sold at $45.7 million in 2009 through Stephen Kovacs of Colliers International and Colliers International agent Vince Kernahan on behalf of Stockland Property Group to interests associated with Aneurin Bowen. 
Chase Corporation had it on its books valued at $41 million in the late 1980s.
Photo of Harry Triguboff courtesy of Wikipedia/Creative Commons. 
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jchancellor-FAypfDUnLy

Harry Triguboff buys 234 Sussex Street Sydney

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Lend Lease will begin its largest commercial tower in its $6 billion Sydney's Barangaroo South project with a pre-commitment from two cornerstone tenants -  PricewaterhouseCoopers Australia and HSBC Bank Australia. 
In a statement to the ASX, Lend Lease said it should be as an anchor tenant of Tower 1, PwC has entered into an agreement to take 26,500 square metres or  12 floors in the 49-storey building. HSBC has signed heads of term for the bank to take 8,000 square metres of space or 3.5 floors in the building.
Lend Lease will commence the development and funding of 100% of the building, known as Tower 1 of International Towers Sydney, via existing capital sources. It intends to introduce co-investors into Tower 1 at an appropriate time in the future.
Lend Lease Group chief executive, Steve McCann, said "prior to today’s announcement, we were already ahead of where we expected to be at this stage of the evolution of the Barangaroo South precinct, with two towers 77% leased and under construction, and the first two apartment buildings sold".
As part of its announcement, the listed property group said it had entered into an agreement to reduce its co- investment in Lend Lease International Towers Sydney Trust (LLITST) from 25% to 15% via a sale to international pension fund APG. 
Following completion of the sale of the 10 per cent interest, Lend Lease’s equity commitment to LLITST will reduce from $500 million to $300 million.
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kjiminez-eaYKfU7qd2

Lend Lease secure two cornerstone tenants for $6 billion Barangaroo South tower

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Ulster Developments has sold its industrial building in Sydney's Minto for $1.505 million.  
A private investor purchased the 16 Airds Road building at auction, on an initial yield of 9.57%. 
The 1,350 square metre building is underpinned with a newly secured five year lease to manufacturing and supplier company, ECH.
Terry Hassan and Alex Jaafar of Knight Frank negotiated the deal.
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Ulster Developments sells Minto, Sydney industrial building

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Global IT company Arbor Networks has secured an office suite at 151 Castlereagh Street in the Sydney CBD.
The company has agreed to lease 428 square metres in the Valad owned building for a three year term, on an initial rent of $585 per square metre gross.
CBRE’s Tim Courtnall and Tim Molchanoff negotiated the lease.
“Arbor Networks was attracted to its location in the evolving midtown precinct, as well as the contemporary design of 151 Castlereagh Street,” Mr Courtnall said.
“The ability to complete a new fit out incorporating the balcony in the suite was also a major drawcard.” Arbor Networks had recently acquired a local business and said to be looking to grow exponentially over the next three years.
In a separate lease, in the same building,  Silverstone Investments has leased a 222 sqaure metres suite on the sixth floor. The rent was struck at $625 per square metre gross on a five-year term.
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Arbor Networks secure Sydney office lease

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Robert Fiani, of the stockbroking firm Morgans, has listed his Bondi Beach sub-penthouse in The Beach House development.
More than $6 million is being ambitiously sought by the broker who bought the Investec-built three-bedroom apartment for $4.325 million in late 2012.
The 178 Campbell Parade apartment is <a href="https://www.mcgrath.com.au/buy/apartment-bondi-beach-nsw-2026/220580/?searchID=38434598" target="_blank">listed with McGrath's Steven Chen</a>. It has 242 square metre living space, which was briefly available for $3,400 a week rental earlier this year.
Fiani also owns another apartment which was bought similiarly off the plan for $3.495 million with settlement .
The block's last sale was $1.75 million for a two bedroom, 99 square metre offering which sold through Chen, but only after nine month's marketing, preceded by four months with another agent.
It's price also showed slow growth, selling off the plan at $1.6 million in 2010, with settlement in early 2012.
A one bedroom unit sold off the plan at $810,000 in 2009, resold last year at $850,000.
A three bedroom apartment, long listed at $5.25 million by Investec, sold for $3.25 million last year.
The franchise entrepreneur Sam Linz and his wife, Barbara spent $11.5 million on their off the plan late 2010 penthouse purchase in The Beach House. The Linzes bought after living in the nearby Andrew Andersons-designed Bondi complex undertaken by the developers Allen Linz and Eduard Litver.
Ranging from 65 square metre to 250 square metres, the initial mid-2009 off-the-plan sales in The Beach House started at $740,000 for one-bedders. The project was overseen by architect Brian Meyerson, with interiors by Burley Katon Halliday, after the specialist banking group secured the site from publican Cyril Maloney for $41 million in 2007.
Theere was a $23 million sale of 15 lots, mostly retail, in 2012 by the Investec Property Opportunity Fund through agents Warren Duncan and Miron Solomons at City Commercial in Sydney and Melbourne's Gross Waddell.
It was bought by interests associated with Simon Langer, reported at the time by SMH commercial property editor Carolyn Cummins as to have been completed on a yield of about 7 percent for the eclectic mix of cafes, fashionistas and providores. 
There has been some considerable turnover since the 2012 opening.
 
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Bondi Beach prestige apartment listing by Robert Fiani in slow-selling Investec block

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Chateau de Benelong, the distinctive Bellevue Hill palazzo residence, has been listed for 29 May auction through agents Michael Finger and Diane Wilson of Ray White Double Bay. Over $5 million is being advised to potential buyers.
With its multiple arches, columns, balustrades and detailed decorative exterior adornments including cherubs, lions' heads and a central courtyard fountain, the seven bedroom house has stood out from the crowd since 1977, when it was built by designer Lesley Santy.
Santy, who won a gold medal in the 1957 international furniture exhibition in Milan, designed the building for the Levy family.
It last sold at early 2012 auction at $4,995,000 sale through Michael Finger who has the listing again. It was then listed for rent at $3300 a week.
The Benelong Crescent property had been renovated after trading for $3.67 million in 2009.
The neo-classical house comes with northerly harbour views from its grand columned terraces. Its luxury living spaces include a poolside entertainer's pavilion, home theatre and gym. It comes with eight bedrooms, including a two-bedroom apartment.
The vendors Lynda Giang-Nguyen and Nhi Nguyen bought it in early 2012 from Nare Elio and Makedonka Del Ben, who run a building company called Big Dig Pty Ltd. <a href="https://www.propertyobserver.com.au/new-south-wales/columned-chateau-with-21st-century-interiors-at-bellevue-hill/2011080951100" target="_blank" style="line-height: 1.3em;">It was initially listed</a> with unrealistic $7.5 million hopes in late 2011.
<a href="https://rwdbgroup.com/nsw/bellevue-hill/1129729/" target="_blank" style="line-height: 1.3em;">Chateau de Benelong</a>, the private palazzo commands sweeping northerly harbour views from its grand columned terraces.
Chateau de Benelong featured in a series of Telstra ads starring comedian Billy Connolly in the late 1990s. 
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Chateau de Benelong, the distinctive Bellevue Hill palazzo residence, back for sale

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Demand
Some time ago I went for dinner for a friend's birthday at a restaurant in Surry Hills and when the conversation got on to real estate, as it does in Sydney all too often, the lass sitting next to me who had only recently moved to Sydney (living in the inner west) said: 
"You know, I can't see property prices falling around here - there's just so much demand for property and not enough of it".
I had to laugh inwardly to myself, as I wondered how someone who'd been looking for an apartment since moving to the harbour city for all of about three weeks had been able to grasp what plenty of economists - and for that matter property market commentators - never venture to get a handle on. 
That is, how tight Sydney's property market is in those popular suburbs where the supply is all but fixed. As it transpired, she was correct, with prices in the inner west rising relentlessly since that time and vacancy rates remaining wretchedly tight.
<blockquote>
In the right Sydney suburbs where supply is fixed, vacancy rates are as close to zero as we're ever likely to see.
</blockquote>
It just goes to show how a little bit of legwork can give you a genuine feel for what's happening in suburbs at a micro level, to add to what is being reported on a macro level.
Crash risks 
An oversupply of property is <a href="https://petewargent.blogspot.com.au/2014/04/crash-risks" target="_blank">one of the factors</a> which heightens the risk of a property crash, and in 2003 it appeared that Sydney might be a particularly risky proposition.
Not only had dwelling prices boomed, the rate of population growth was falling sharply (in part due to interstate migration) and vacancy rates jumped to 4.3% in the harbour city and some 5.3% in the outer ring suburbs according to the REIA.
As prices cooled, construction of dwellings dropped sharply as one would expect in a typical market cycle.
In fact, construction levels fell to such woeful levels by 2008/9 that the crash predictions being peddled at that time didn't appear to make much sense unless, of course, you believed that unemployment would increase very sharply, which in the event, it didn't - with some skill and a bit of luck.
Of course, demand for investment properties will ebb and flow with sentiment and the interest rate cycle, but ultimately in a city with a rapidly growing population if construction doesn't keep pace with requirements (which will likely happen where prices are easing) eventually this will come home to roost in the guise of a tightening market until upwards pressure on prices eventually returns.
<div>
<img src="https://2.bp.blogspot.com/-RmQ0LdgPD0o/U05gmU7bKOI/AAAAAAAAMl8/vFSYWuDiy7I/s400/ckusherrrr.jpg"> 
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Source: RP Data
Those who work in the industry tell me that large developers are still genuinely struggling to break even on large scale unit developments even at today's higher prices - and this is indeed being borne out in the relatively slender net profit margins being reported by residential developers on the securities exchange.
Based upon that information, it strikes me that short of grants, concessions or other incentives being made available to developers, a drawn out fall in prices would see dwelling approvals and subsequently construction dry up once again.
This is why it is so important to understand replacement cost when reading the property market cycle.
The Reserve Bank itself gave a pretty handy rundown <a href="https://www.rba.gov.au/speeches/2013/sp-so-230413" target="_blank">here</a>.
<div><img src="https://www.rba.gov.au/speeches/2013/images/sp-so-230413-graph8.gif" width="400" height="386"></div>
The above figures for infill sites relate to multistorey apartment blocks and give a useful indicator as to replacement cost of property in Sydney.
As a very general rule of thumb, when apartment prices fall below replacement cost...au revoir construction.
On the flip side, median house prices in Sydney long ago became decoupled from any kind of sensible price/income ratio, and as such are marching to their own drum and may be more prone to a correction.
Crisis looms? 
And so, here we are today.
The REINSW reported this afternoon that March 2014 vacancy rates in Sydney had fallen to near crisis levels falling by 0.3% to only 1.4%.
<div class="separator"><a href="https://2.bp.blogspot.com/-aXekV3_smeQ/U18L1yj0aUI/AAAAAAAAM0w/qe7FZlwm4sU/s1600/REINSW.jpg"><img src="https://2.bp.blogspot.com/-aXekV3_smeQ/U18L1yj0aUI/AAAAAAAAM0w/qe7FZlwm4sU/s1600/REINSW.jpg"></a></div>
Reported the REINSW: “Sydney is going backwards in regard to properties available for rent. Something must be done to ensure that there is a greater level of choice for those seeking to secure a rental property in Australia’s biggest city."
In Sydney's inner 10 kilometre ring, vacancy levels have fallen to desperately low levels of only 1.3%, which would come as no surprise whatsoever to anyone who ventures to actually look at what's happening in the market.
A vacancy rate of 1.3% across such a dense property market is described by the REINSW as"verging on crisis levels".
There are some question marks over whether the new stock which is sold offshore is being let or left empty, but to date, with humble apologies, I have no worthwhile data to present on that. 
That may be one to look into.
Elsewhere in the state, of course, demand is significantly lower since most of the speculation is taking place in Sydney's favourably located suburbs and vacancy rates are correspondingly considerably higher.
<div>
Construction picking up
As prices have picked up, so too is now construction in Sydney, and over the coming years vacancy rates will likely eventually rise again, but the rates of vacancy likely to be significantly higher in areas where large new developments are taking place (cf. what has reportedly played out in Melbourne in recent years).
Naturally anyone buying property in Sydney today needs to be extremely wary of buying in a suburb or sector of the market which will soon be inundated with a deluge of new apartments, and that's most particularly the case for persons buying expensive off-the-plan or high rise stock.
In the right suburbs where supply is fixed, it's pretty much as you were with vacancy rates as close to zero as we're ever likely to see.
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 new book '<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>' is out now.
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pwargent-M4siyDbqQY

Is the Sydney vacancy rate really verging on "crisis levels"?

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In a suburb being called an ‘up and comer’, ORE in Waterloo, Sydney has sold out, with plans for construction to complete in September.
Located at <a href="/news">Waterloo</a>’s 18-22 Amelia Street, <a href="https://oreapartments.com.au/#/home" target="_blank">ORE</a> is a luxury development with 53 one, two and three bedroom apartments spanning eight levels with lift access.
Sold at a price said to be “considerably higher than the median asking price” for local apartments, Mainland Chinese buyers are behind a number of the purchases. Back when the development was advertised, prices were recorded for one bedroom from $495,000 and two bedrooms from $599,000. Median prices have steeply risen over the past years, currently sitting at $640,500 for apartments. At the beginning of 2012, after a dip from 2011, the median sat at $513,500.
Project marketers for the development, CPM Realty, said that the sell out is due to a massive shortage of stock, particularly new, within inner Sydney. CPM Realty managing director Sam Elbanna said that a lot of land is being traded, but it’s not all being developed.
“When property is traded and not developed the shortage increases demand,” he said, noting demand is at a high not seen for some time.
“We’ve only got a sprinkling of new apartments around the CBD and we’re putting this down to a strong market but more importantly, not enough new developments to cope with demand.”
Property Observer previously <a href="/expert-insights/buying/incentives-on-offer-as-waterloo-developers-battle-government-timelines-to-entice-buyers">reported that Ore gave a hefty push to bring in first home buyers</a> who may be attracted to the incentives.
The development was designed by MBMO architexts and developed by SG Sans Group.
There is a double storey lobby, and the apartments have balconies, stackable balcony doors, security car parking and green communal spaces.
Some of the apartments were advertised with park views over Moore Park golf course, including the last three-bedroom apartment, on level seven. It was marketed with wool carpets, timber floors, stainless steel smeg appliances, a 10 metre wide balcony with floor-to-ceiling glass, a media desk and storage closets.  This three bedroom, two bathroom apartment with 99 square metres of living area and a 19 square metre terrace was advertised at $959,000.
<img src="/images/2014/04/29/waterloo-april-29-two.jpg" alt="">
The development was also offering a number of retail opportunities in the “new hip bohemian precinct”, including cafes and potential restaurants across from a planned carpark, that also suggested the sites, with alfresco areas, could be used as convenience or medical stores, as well as office opportunities.
It is noted that in the residential development there is a 70/30 owner occupier to investor split.
<img src="/images/2014/04/29/waterloo-april-29-one.jpg" alt="">
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jduke-EHk3XBmHkn

Waterloo, Sydney sees sell-out of ORE’s 53 apartments

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Initially listed in 2010 with $10 million plus hopes, the Kirribilli mansion called Fairhaven has been finally sold at an undisclosed price. There were $7.5 million plus hopes in early 2013. It was last sold at $6.05 million by the Donnelly family in 2004.
The five-bedroom house on an 1,400 square metre estate was sold by telecommunications entrepreneur turned property developer Rob Melhem who commissioned renovations by SJB Architects.
Downstairs is The Club Room, a timber panelled rumpus room with a huge open fireplace, a full sized billiards table, games area, built-in bar and climate controlled cellar for up to 800 bottles.
<a href="https://www.realestate.com.au/property-house-nsw-kirribilli-116221255" target="_blank">The 1905 Edwardian/Federation property</a> comes with a heated pool, tennis court and parking for six cars. It sold last month pre-auction through LJ Hooker agents Richard Harding and Geoff Smith with its price undisclosed.
Some time over the past four years Rob Melhem, said: ''We won't budge from this price. This is rock bottom.''
Title Tattle gathers the buyer is Caroline Grundy, the wife of David Grundy from Killara. They recently sold the family's 2,953 square metre Buckingham Road battle-axe abode for $5.7 million to Citie Centre Nominees, who also spent $2.3 million on the neighbouring site presumably for another upper north shore multi-unit residential development. 
Fairhaven has Kirribilli's only privately owned, full-size tennis court. Even Kirribilli House does not have a tennis court as our prime ministers play their tennis at The Lodge. 
Fairhaven, which borders Loreto Convent on Carabella Street, is viewed as among the best examples of the early work of the 19th-century architect James Peddle.
The owner from 1905-1913 was Commercial Banking Co banker Hugh Massie, the cricketer.
Michael Terrett bought the property in 1990 for $1,625,000 from a developer who originally wanted to turn the house into flats. The Terrett family sold in 1993 for $2.03 million.
Rob Melhem, a former sponsor of the Manly Sea Eagles, and his wife Fiona moved to Kirribilli after listing their modern Mosman residence.
It sold for $3.2 million in 2007 though Title Tattle recalls their redundant Raglan Street house had $4 million-plus expectations when first listed in mid-2004.
Title Tattle gathers the Melhem's are now Hope Island, Gold Coast based.
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Rob Melhem's Fairhaven, Kirribilli mansion finally sells

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Not all Sydney home owners have been beneficiaries of the recent price fillip.
Hunters Hill appears the laggard standout suburb with 0.9% price growth over the past year to its current $1.6 million house price median.
Sydney house prices are up 16.9% over the past year.
''It is no surprise that Hunters Hill has been flat,'' Dr Andrew Wilson, the senior economist at Australian Property Monitors, told the Fairfax Media local paper.
''A lot of prestige suburbs are still playing catch up and Hunters Hill is a classic example of that.''
Dr Wilson said the strongest growth for prestige suburbs like Hunters Hill was before the global financial crisis.
''But with the stockmarket rising they are certainly set to catch up now,'' he suggested.
But Property Observer reckons there's more systemic issues at work hampering price growth - certainly more so off the riverfront than the prestige waterfront trophy homes.
And indeed it is most evident that there are two Hunters Hills - with many of the laggard sales being on the other side of Burns Bay Road, and away from the more popular sandstone and jacaranda peninsula. So a high proportion of slow price growth happens on Bonnefin Road, Abigail Street and Avenue Road, almost Gladesville in location hanging off the Hunters Hill coat tails.
The suburb is a low demand locality historically with an unusually higher proportion of its sales being to devoted upgraders within - not naive about the pricing so therefore careful not to over pay. So not the usual high volumes coming in from elsewhere around Sydney, but they certainly do come from mostly the inner west suburbs like Strathfield.
Its village retail life is hardly vibrant and the single main road entry point must be a bother sometimes.
There have been around 120 house sales since early 2013 of the 2,200 freestanding abodes in the peninsula suburb which Property Observer put under the spotlight.
They ranged from $925,000 to $5.3 million. 
Just the three sales went backwards including the $1.8 million sale last year of the five bedroom at <a href="https://www.realestate.com.au/property-house-nsw-hunters+hill-113801467" target="_blank">3 Gladesville Road</a> which had <a href="https://www.propertyobserver.com.au/https://www.mcgrath.com.au/buy/house-hunters-hill-nsw-2110/52541" target="_blank">sold in 2007 at $1,875,000</a>.
The four bedroom <a href="https://www.propertyobserver.com.au/https://www.mcgrath.com.au/buy/house-hunters-hill-nsw-2110/170882" target="_blank">5 Ramleh Street</a> went backwards to $1.36 million last year from $1.43 million in 2007.
The priciest price reversal was <a href="https://www.realestate.com.au/property-house-nsw-hunters+hill-113106287" target="_blank">Kyarra, the 1886 sandstone mansion</a> which sold for $4.5 million at 1 Madeline Street (pictured above) last year having sold at $4.7 million in 2004.
The four bedroom <a href="https://www.realestate.com.au/property-house-nsw-hunters+hill-116045247" target="_blank">3 Martha Street</a> went up - but just $10,000 from $2.3 million in 2003 to 11 years later a $2.31 million sale earlier this year.
The <a href="https://www.domain.com.au/Property/For-Sale/House/NSW/Hunters-Hill/?adid=2009730390" target="_blank">23 Bonnefin Road</a> sold for $2.8 million last year having sold at $2,794,000 in 2007 with $500,000 works to convert it from its duplex status in the meantime.
The four bedroom <a href="https://www.realestate.com.au/property-house-nsw-hunters+hill-112893451" target="_blank">36 Abigail Street</a> sold for $1.71 million in 2013 having sold at $1.68 million a decade earlier in 2003.
The four bedroom cottage at <a href="https://www.realestate.com.au/property-house-nsw-hunters+hill-113048891" target="_blank">45 Everard Street</a> sold for $1,406,000 in April last year having sold at $1.35 million in March 2010 and $1,261,000 in June 2006 with its then contemporary addition, suggesting to Property Observer the price malaise is longer term than Dr Wilson attests.
Ditto Emsworth, the 1906 house at <a href="https://www.homesales.com.au/sold/19-the-avenue/hs569633.aspx" target="_blank" style="line-height: 1.3em;">19 The Avenue</a> sold for $1.34 million last year having sold at $1.3 million in 2007 and at $1.1 million in 2002.
The renovation opportunity at <a href="https://www.realestate.com.au/property-house-nsw-hunters+hill-113960383" target="_blank">2 Johnson Street</a> sold last year at $1.38 million having sold at $1.35 million in 2006.
The 1886 extended house at <a href="https://www.realestate.com.au/property-house-nsw-hunters+hill-114061947" target="_blank">4 Alexander Street</a> sold for $3.3 million last year having sold at $3.25 million in 2008.
The riverfront home at <a href="https://www.realestate.com.au/property-house-nsw-hunters+hill-115862427" target="_blank">37 Bonnefin Road</a> sold for $3,155,000 earlier this year having sold at $3.05 million in 2007. Not much growth between 2007 also at <a href="https://www.realestate.com.au/property-house-nsw-hunters+hill-113687311" target="_blank">21 Madeline Street</a> with its sale of $2.66 million in 2007 and $2.7 million last year.
The house at <a href="https://www.realestate.com.au/property-house-nsw-hunters+hill-113219875" target="_blank" style="line-height: 1.3em;">65 Woolwich Road</a> sold for $2 million last year having sold in 2010 for $1.91 million.
The contemporary home at <a href="https://www.realestate.com.au/property-house-nsw-hunters+hill-113574783" target="_blank">17 Augustine Street</a> sold for $1.88 million last year having sold at $1.8 million in 2011.
The four bedroom <a href="https://www.realestate.com.au/property-house-nsw-hunters+hill-107421916" target="_blank">36A Barons Crescent</a> sold for $1,505,000 last year having sold at $1.4 million in 2006.
The three bedroom renovated house at 48 Bonnfin Road sold for <a href="https://www.propertyobserver.com.au/https://www.mcgrath.com.au/buy/house-hunters-hill-nsw-2110/178504" target="_blank">$1.52 million</a> last year having sold at <a href="https://www.propertyobserver.com.au/https://www.mcgrath.com.au/buy/house-hunters-hill-nsw-2110/59334" target="_blank">$1.45 million</a> in 2008.
The sale of <a href="https://www.realestate.com.au/property-house-nsw-hunters+hill-114303163" target="_blank">80B Park Road</a> shows not even the introduction of a fresh estate agency can overcome the price lethargy with it selling at $1,328,000 last year having sold at $1.29 million in 2006.
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