<p>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.</p>

<p>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;</p>

<p>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;</p>

<p>“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;</p>

<p>[smartcode_project:default project_id=110291 project_image_fid=302785]</p>

<h2>Affordable product leads, premium demand remains resilient</h2>

<p>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;</p>

<p>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;</p>

<p>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.</p>

<p>Jual (Shenton Park, Celsius Property) also posted a strong quarter with 28 sales, reaching 39% sold in one quarter.</p>

<p>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;</p>

<p>[smartcode_project:default project_id=148957 project_image_fid=364102]</p>

<h2>Prices underpinned by costs, and the delivery risk is growing</h2>

<p>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.</p>

<p>David Cresp said a growing challenge for private Build‑to‑Sell developers is simply securing a builder in the current environment.</p>

<p>“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;</p>

<p>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.</p>

<p>[smartcode_project:default project_id=108869 project_image_fid=317905]</p>

<h2>Supply: improving later, but still constrained, and Perth lags eastern benchmarks</h2>

<p>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;</p>

<p>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;</p>

<p>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”.</p>

<p>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;</p>


Joel Robinson

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

<p><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.</p>

<p>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.</p>

<p>Sammut Director Julian Sammut said the group had been actively searching Brisbane for several years before identifying Toowong as the right fit.</p>

<p>“Brisbane was the right step for Sammut,” Sammut said.</p>

<p>“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.”</p>

<p><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" /></p>

<p>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.</p>

<p>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.</p>

<p>“We are DA approved now which is very exciting,” Sammut said.</p>

<p>“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.”</p>

<p><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" /></p>

<p>Bureau^proberts said the design responds to Toowong’s evolving urban character, balancing contemporary apartment living with the area’s established residential identity.</p>

<p>“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.</p>

<p>The architecture practice said the project’s form was shaped by its riverfront setting, flood considerations, neighbouring building scales, and view corridors.</p>

<p>“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.”</p>

<p>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.</p>

<p>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.</p>


Sammut secures approval for debut Brisbane apartment development in Toowong

<p>Developer Lanevick is heading back into Sydney’s apartment market after focusing more heavily on the luxury townhouse and terrace sector in recent years.</p>

<p>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.</p>

<p>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.</p>

<p>“Traditionally it’s been difficult for people in that market to downsize because there just hasn’t been the right product available,” Maroun said.</p>

<p>“We’re targeting buyers who might have 30 to 40 per cent of their house value sitting in the bank after downsizing.</p>

<p>“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.”</p>

<p>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.</p>

<p>“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.”</p>

<p>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.</p>

<p>“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.”</p>

<p>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.</p>

<p>“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.</p>

<p>Maroun said Lanevick saw a first-mover advantage within the precinct as planning controls continue to evolve to accommodate greater housing density.</p>

<p>“We think there’s a real opportunity there that hasn’t really been serviced properly yet,” he said.</p>

<p>“There’s going to be a broader evolution of the whole Gladesville village precinct over time, particularly with more activation and mixed-use outcomes.”</p>

<p>The Venus Street proposal will include a commercial and retail component at ground level designed to contribute to that evolving streetscape activation.</p>

<p>“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.</p>

<p>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.</p>

<p>&nbsp;</p>


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

<p>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.</p>

<p>The New York-based investor has focused his firm, GreenPoint Partners, on addressing the supply shortage hitting middle market housing in Australia.</p>

<p>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.</p>

<p>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.</p>

<p>“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.</p>

<p>“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.”</p>

<p><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" /></p>

<p>GreenPoint Partners brings years of experience assembling and scaling real estate operating businesses across major markets. And Green sees a big opportunity in Australia.</p>

<p>“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.”</p>

<p>Green said being a builder-developer would give the company the capacity and flexibility it required to deliver reasonably-priced homes.</p>

<p>“We want it to be at that attainable level; not super high end luxury but at that attainable level,” he said.</p>

<p><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" /></p>

<p>&nbsp;</p>

<p>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.</p>

<p>Green praised local policy settings.</p>

<p>“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.”</p>

<p>One Living is also&nbsp;looking at high-density projects and could take on more institutional funding in the future.</p>

<p>“The way we will be able to achieve economies of scale is through size,” Green added.</p>


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

<p>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.</p>

<p>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.</p>

<p>Projects by Buxton Director Heath Thompson, who is selling WM Residences, says the townhouses x that perfect middle ground be</p>

<p data-end="683" data-start="511">"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.</p>

<p data-end="882" data-start="690">"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."</p>

<p data-end="882" data-start="690">[smartcode_project:default project_id=134646 project_image_fid=6109]</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>[smartcode_project:default project_id=134646 project_image_fid=6110]</p>

<p>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.</p>

<p>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.</p>

<p>[smartcode_project:default project_id=134646 project_image_fid=6116]</p>

<p data-end="247" data-is-last-node="" data-is-only-node="" data-start="0">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.</p>

<p>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.</p>

<p>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.</p>

<p>[smartcode_project_cta:default project_id=134646]</p>


WM Residences fills gap in Mordialloc townhouse market

Domain

<html><body>
<div>
<p>Melbourne apartment price growth leaped ahead of house price growth in the first three months of the year, as unit values surged 4.6 per cent in the country's second-largest city.</p>
<p>House prices in the Victorian capital jumped 4 per cent in the March quarter, Domain Group chief economist Dr Andrew Wilson's latest State of the Market Report showed.</p>
<p>Melbourne's growth outdid Sydney, where house prices gained 2.8 per cent and units just 1.3 per cent.</p>
<p>"Melbourne is the clear top performer and will continue to stay there," Dr Wilson told Domain. </p>
</div>
<div>
<p>Melbourne houses will rise 10 per cent this calendar year and units 7 per cent, while Sydney houses will gain 7 per cent and units 3 per cent, Dr Wilson said.</p>
</div>
<div>
<p>He said the strength of Melbourne apartment prices was surprising and indicated that despite some falling in off the plan value, the largely overseas investors who had purchased them were holding on to them, Dr Wilson said</p>
</div>
<div>"We're not seeing any volume of sales in the CBD market," he said.</div>
<div> </div>
<div class="cq-article-content-media section">"That market is in a holding pattern, particularly from international investors who've purchased. They're not putting them onto the market for rental or sale and the growth is coming from suburban units."</div>
<div class="cq-article-content-media section"> </div>
<div class="cq-article-content-media section">Part of Melbourne's rise was due to the July elimination of stamp duty for first home buyers.</div>
<div class="cq-article-content-media section"> </div>
<div class="cq-article-content-media section">
<div class="cq-article-content-media section">The latest report puts Sydney's median house price at a record $1,151,000. Melbourne sits at $843,000.</div>
<div class="cq-article-content-media section"> </div>
<div class="cq-article-content-media section">
<span>Melbourne’s unit median sits at a record $494,000. Sydney's </span>unit median sits at $717,000.</div>
<div class="cq-article-content-media section"> </div>
<div class="cq-article-content-media section">In Brisbane the unit prices are going backwards and have seen a fall of 3.8 per cent to $376,000, the biggest drop since 2000.</div>
<div class="cq-article-content-media section"> </div>
<div class="cq-article-content-media section">AMP Capital chief economist Shane Oliver said higher prices meant people had to borrow more, which added to worries about the level of household debt.</div>
<div class="cq-article-content-media section">
<p>“They’re certainly not welcome numbers,” Oliver said.</p>
<p>“The only people who this is good news for are those who are looking to sell … and move out of Melbourne into regional areas or to cities and states which haven’t seen the gains in recent times.”<span style="font-size: 12.16px; line-height: 1.3em;"> </span></p>
<p><span style="font-size: 12.16px; line-height: 1.3em;"> </span></p>
<p> </p>
<p><span style="font-size: 12.16px; line-height: 1.3em;"> </span></p>
</div>
</div>
</body></html>

j.ballantyne1990-6AQqhLzZaK

Melbourne apartment prices rising faster than houses in March 2017 quarter: Domain

<html><body>
<p>The decision to proceed with the Domain separation from Fairfax Media will be subject to a number of conditions including satisfactory outcome of discussions with the Australian Taxation Office.</p>
<p>Macquarie Capital has been confirmed as appointed to advise on the proposed transaction.</p>
<p>Fairfax Media Limited today announced a strategic review of the Domain Group in preparation for Domain’s potential separation into a new Fairfax controlled Australian Securities Exchange-listed entity.</p>
<p>The separation would result in Fairfax continuing to own a controlling majority of Domain (between 60% and 70%), while issuing shares in Domain to Fairfax shareholders at the time the separation is implemented.</p>
<p>Fairfax Media has reported operating earnings of $145 million for the six months ended December 31 – down 9.9% on the final six months of 2015 – with Domain responsible for a majority of the publishing company’s earnings.</p>
<p>The potential separation would be expected to complete this calendar year.</p>
<p>Fairfax Media Chairman Nick Falloon noted that a separation would result in:</p>
<ul>
<li>A separately ASX-listed entity establishing direct valuation for Domain;</li>
<li>Boards and management teams that will be better able to develop distinct strategies, manage capital structures and conduct investment decisions for their respective businesses; and</li>
<li>The opportunity for Domain to attract new shareholders with different investment criteria.</li>
<li>The current intention is that no new capital will be raised.</li>
</ul>
<p>Post separation, Domain will incur a number of costs and adjustments not currently reflected in its segment financials.</p>
<p>Based on preliminary estimates, these are expected to be approximately $8 million to $10 million per annum, consisting of:</p>
<p>Incremental $4 million Board, listing and other costs associated with Domain becoming a standalone entity;</p>
<p>$4 million to $6 million reflecting the transfer of corporate costs currently borne by Fairfax but attributable to Domain, and commercial agreements with Fairfax for certain services.</p>
<p><span>Antony Catalano, </span>Domain Group chief executive officer will continue to lead the management team.</p>
<p>The complicating tax matter is reportedly "taking up a lot of time inside Macquarie Capital and other advisers," the Fairfax Media Street Talk column has revealed.</p>
<p>"Usually, companies have to spin off or distribute at least 80 per cent of a portfolio company to its shareholders in order to qualify for capital gains tax rollover relief.</p>
<p>"Anything less than 80 per cent can trigger a capital gain (or maybe loss in Fairfax's case) for shareholders at the time of the spin-off, because the ownership is deemed to have substantially changed. It means a potential tax bill, along with a few shares in the new Domain."</p>
<p><em>Street Talk</em> noted Foster's Group, Tabcorp, Brambles and Orica Ltd have pursued full-scale demergers of business units in recent years, rather than retaining stakes in their respective spin-offs.</p>
<p>Fairfax could apply for an individual ruling from the Australian Tax Office to skirt the laws, although dealmakers said they were rare.</p>
</body></html>

jchancellor-FAypfDUnLy

Domain's future depends on helpful ATO ruling

<html><body>
<p class="p1"><span class="s1">Fairfax shares were placed in a trading halt on Tuesday morning <span class="s2">after The Australian Financial Review's Street Talk column revealed spin off plans on Monday. </span></span></p>
<p class="p2"><span class="s3">The media group seems set to retain between 60 per cent and 70 per cent of Domain under the separation plan.</span></p>
<p>Fairfax Media is considering a proposal to "spin off" its real estate business Domain. Analysts expect Domain to be worth about $2 billion as a separately listed entity.</p>
<p>The Australian Financial Review's Street Talk advised no formal decision has yet been made.</p>
<p>It wrote Fairfax is "seriously considering spinning off Domain into a separately listed vehicle to be run by current Domain boss Antony Catalano."</p>
<p>Macquarie Capital is advising Fairfax, it revealed.</p>
<p>The article comes as Fairfax prepares to hand down its financial results for the six months to December 31 on Wednesday.</p>
<p>Domain is expected to be a key feature at the results announcement despite recent reports of a constipated listings market.</p>
<p>A Fairfax spokesperson declined to comment to the AFR columnists.</p>
<p>Sources told Street Talk key Fairfax decision makers thought that "the time was right" to enact the long-speculated spin off plans before the end of the year.</p>
<p>The business column described Domain as the shining light within Fairfax earning about $130 million a year for the publishing company.</p>
<p>Goldman Sachs analysts expect Fairfax to report $139 million in earnings before interest, tax, depreciation and amortisation for the six-months to December 31, with Domain accounting for $65 million.</p>
<p>Goldman Sachs told its clients on Monday that it was "all eyes on Domain" with particular focus on any pushback from agents on January price rises.</p>
<p>Last November the billionaire small cap investor Alex Waislitz urged Fairfax Media to consider changing its name to Domain to reflect its growing real estate listings business is now worth more than the entire company’s market value.</p>
<p>Waislitz, whose listed fund Thorney Opportunities (TOP) and private fund Thorney Investment Group own more than 50 million Fairfax shares, suggested the Fairfax name was “anachronistic” and urged the media company to consider rebranding itself.</p>
<p>“We think Domain alone is worth in excess of the entire market capitalisation of Fairfax," The Australian reported.</p>
<p>Last December when speaking to Mumbrella, Antony Catalano said there was “no need” for the real estate business to float separately.</p>
<p>“When you have a business that is growing as quickly as Domain is growing then we have an obligation to our shareholders to realise the value of this business,” he said.</p>
<p>“Fairfax is never going to float this business when so much of the value still hasn’t been realised.</p>
<p>"We’ve said publicly this is a business we expect to grow from $120m EBITDA to somewhere in excess of $200m EBITDA over the next two to three years."</p>
</body></html>

Fairfax reports Catalano's Domain spinoff being worked on by Macquarie Capital

<html><body>
<p>Revenue at real estate arm of Fairfax Media, the Domain Group increased by one third to $296 million, it announced this morning. </p>
<div>
<p>Domain, the key pillar of Fairfax's publishing future, boosted revenue 33 per cent, with its annual EBITDA lifting 39.7 per cent to $120 million.</p>
<p>Digital advertising revenue at Domain rose 26.8 per cent and EBITDA was up 50.3 per cent. </p>
<p>Fairfax has invested more than $175 million in Domain over the past three years. It recently advised its separated prior annual results.</p>
</div>
<div>
<p>The Fairfax announcement advised, like News Corp, that July 2016 residential listings were severely impacted by sentiment surrounding the July federal election, with listings down 25 per cent in Sydney and 11 per cent in Melbourne for the month.</p>
</div>
<p>Fairfax chief executive Greg Hywood said Domain performed strongly, despite the uncertainty of the long federal election campaign.</p>
<p>"Domain delivered strong double-digit growth in the second half, despite the dampening effect on June of the longest federal election in modern history," he said.</p>
<p>Fairfax Media has made a nearly $1 billion loss - $893.5m - for the 2016 financial year because of write-downs and redundancies.</p>
<p><a href="/images/2016/08/10/Screen%20Shot%202016-08-10%20at%2012.08.17%20pm.png" target="_blank">Click here to enlarge</a></p>
<p><img src="/images/2016/08/10/Screen%20Shot%202016-08-10%20at%2012.08.17%20pm.png" alt="" width="488" height="157"></p>
<p>The pioneering media company, whose mastheads including The Sydney Morning Herald and The Age, made an $893.5 million loss.</p>
<p>The loss was mainly due to net charges of $1.02 billion for write-downs including plant and equipment, which also includes nearly $63 million in redundancy costs for the year.</p>
<p>Its total revenue fell 2 percent to $1.8 billion.</p>
<p>Fairfax had made an $87 million profit in 2015.</p>
<p><a href="/images/2016/08/10/Screen%20Shot%202016-08-10%20at%2012.08.34%20pm.png" target="_blank">Click here to enlarge</a></p>
<p><img src="/images/2016/08/10/Screen%20Shot%202016-08-10%20at%2012.08.34%20pm.png" alt="" width="443" height="147"></p>
<p><span>"We are confident in the underlying strength of Domain and its ability to continue to benefit from improvements in yield, depth penetration, geographic expansion, and revenue diversification," Hywood suggested.</span></p>
</body></html>

jonathanchancellor-7SQnKwU6yx

Domain revenues rise by 33 percent at Fairfax Media

<html><body>
<div>
<p>Fairfax Media will write down the value of its publishing assets by close to $1 billion and will separate its Domain Group into a new reporting unit.</p>
<p>Domain has been recently housed with Fairfax's Australian Metro Media business.</p>
<p>Fairfax said that accounting standards have not allowed Fairfax to recognise the value of Domain, so its new reporting segment "made sense."</p>
<p>"Domain makes a significant earnings contribution and remains an integral and growing part of Fairfax. We have no plans for that to change," Fairfax chief executive Greg Hywood said.</p>
</div>
<div>Fairfax made the announcement ahead of its financial results which will come August 10.</div>
<div> </div>
<div><span>More than 50 percent of Fairfax Media’s first-half earnings came from the online real estate business, the biggest contributor to the media group’s total six-month earnings of $98.6 million.</span></div>
<div><span> </span></div>
<div><span> </span></div>
<div><a href="/images/2016/08/02/Screen%20Shot%202016-08-02%20at%2012.27.27%20PM.png" target="_blank"><span>Click here to enlarge</span></a></div>
<div><span> </span></div>
<div><img src="/images/2016/08/02/Screen%20Shot%202016-08-02%20at%2012.27.27%20PM.png" alt=""></div>
<div> </div>
<div><a href="/images/2016/08/02/Screen%20Shot%202016-08-02%20at%2012.27.32%20PM.png" target="_blank">Click here to enlarge</a></div>
<div><img src="/images/2016/08/02/Screen%20Shot%202016-08-02%20at%2012.27.32%20PM.png" alt=""></div>
<div><span> </span></div>
<div><span> </span></div>
<div><span> </span></div>
<div><span> </span></div>
<div><span> </span></div>
<div> </div>
<div>Click here to enlarge</div>
<div> </div>
<div> </div>
</body></html>

Domain gets new status within Fairfax Media

<html><body>
<p>GUEST OBSERVER</p>
<p>When Australian media company Fairfax reported its recent results, the improved performance of its online real estate business, domain.com, appeared to violate a widely held “law” of the digital economy - that digital creates a winner which takes all markets.</p>
<p>After a number of years trailing behind News Corp Australia owned realestate.com.au (REA), domain.com appears to have narrowed the gap with its major rival and its aggressive strategy of growing its user base is translating into improved revenue.</p>
<p>Closer examination however suggests this result might just be a temporary pause in a much more profound transformation taking place for digital in the residential real estate industry. One that is likely to see the emergence of a new set of players.</p>
<h2>Can there only be one?</h2>
<p>It’s become commonplace for observers of the digital economy to claim that digital creates “winner takes all” markets. The classic example is Google’s dominance in the search market. Estimates suggest Google accounts for more than 75% of search, and almost 90% of organic search traffic, with its major rivals, Microsoft’s Bing and Yahoo struggling to get out of single digits. This effectively places Google in a monopoly position and allows it to create enormous revenues through products like paid search and adwords.</p>
<p>Using this example it would be tempting to conclude that REA, having established a healthy lead over domain.com in terms of unique visits and exclusive listings, would pull away from its Fairfax rival and come to dominate the Australian residential real estate market.</p>
<p>Instead, Domain is closing the gap on its rival. In part this reflects domain.com’s aggressive strategy of driving traffic to its site, one that ironically parallels the approach taken by News-owned carsguide.com.au in its battle with caresales.com.au. It also suggests that domain.com’s focus on the user experience is beginning to pay off.</p>
<p>Unlike REA, which has made a virtue out of outsourcing all its development, Domain has retained inhouse development expertise and this has given it the ability to more rapidly add new features that enhance the user experience, such as its mapping functionality.</p>
<p>While there are important lessons here for business about not giving up and continuing to focus on the customer, viewed in longer perspective, it’s hard not to conclude that domain.com’s improved performance might just be a temporary reversal of a much more significant transformation taking place in the domestic real estate market.</p>
<p>There can hardly be a market more ripe for disruption than residential real estate. Australian residential housing stock is worth an estimated A$5 trillion and the market is riddled with the type of information asymmetries and inefficiencies that emerging technologies are ideally suited to address. While REA and domain.com have displaced the listing of properties in newspapers, they have hardly transformed the industry. Rather they seem to offer a digital version of traditional real estate listings with a few additional bells and whistles. Both are underpinned by largely similar revenue models.</p>
<h2>Reinventing the market</h2>
<p>It’s worth remembering that before Google, search was dominated by Yahoo, Alta Vista and Netscape. Google transformed search by developing an algorithm based on relevancy that improved the results users gained from searching the web and by rethinking how it monetised search. Rather than try to keep users on its page and bombarding them with advertising, Google directed users away from its page and towards the pages they were looking for. It’s reasonable to expect that the residential real estate market is likely to undergo a similar transformation over the next few years.</p>
<p>It’s interesting to compare the very traditional approach of realestate.com and domain.com with the radically different business models that are emerging in startups looking to disrupt the residential real estate market.</p>
<p>A good example is openagent.com.au, an Australian-based startup founded by two young women who started their careers in consulting. Recognising the highly localised nature of real estate markets and the importance of agents, openagent.com.au takes advantage of publicly available data sets and user reviews to provide sellers and buyers with reviews and metrics on agents in their local areas.</p>
<p>Rather than attempt to charge users for accessing the information, or agents for better listings, openagent’s revenue comes from the referral fees payable by agents who get listings as a result of the reviews on the site. This is a much purer digital play than either REA or domain.com. By providing them access to data in a usable form openagent.com.au seeks to empower buyers and sellers and increase transparency in this very opaque market.</p>
<p>Perhaps the most important lesson Fairfax could draw from the performance of domain.com is not that the winner takes all logic of digital markets is reversible, but that they should have the courage of their convictions and go all in on digital, in the residential real estate market. Rather than just try to close the gap on REA it should be seeking to build a business that will do away with the need for businesses like domain.com at all. It might just find that if the solution it develops is good enough, the law of winner takes all will reassert itself.</p>
<p><em><span class="fn author-name">Nick Wailes is a</span><span style="line-height: 1.3em;">ssociate dean Digital and Innovation, UNSW Business School, UNSW Australia and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/nick-wailes-108369" target="_blank">here</a>.</span></em></p>
</body></html>

Domain versus REA shows it’s time Fairfax went all in on digital

<html><body>
<p>National rental figures held at peak levels through June with the exception of Darwin and Perth, with rents falling 4.4% in Perth and 7.7% in Darwin compared to the last quarter, according to new research released by Domain Group.</p>
<p>The Domain Group Rental Market Report found a house surge in Sydney by 1.9% to a high of $530 per week<span>, with Melbourne rent rising </span><span>2.6% year-on-year.</span><span style="line-height: 1.3em;"> </span></p>
<p><span>Domain Senior Economist, Dr Andrew Wilson, said there has been a steady increase in rental rates across most capital cities; the exceptions being Perth and Darwin, where property supply is outstripping demand. Sydney tenants, according to Dr Wilson, are hardest hit with rents increasing to record highs, reflective of the highly competitive property market.</span></p>
<p><span>“Unprecedented residential investor activity in Sydney over the past year and a surge in new dwelling construction have failed to provide rental relief for tenants with house rents increasing by 3.9 per cent over the year and unit rents up by 1%," Dr Wilson said.</span></p>
<p><span>“Although increasing rent is likely to continue in most capitals for the remainder of 2015, early signs of relief are emerging for tenants with vacancy rates easing over June. That said, investors are set to remain active – particularly in the Sydney market – given the high yields, low interest rates and the likelihood of continued solid capital growth.</span></p>
<p><span>“The data indicates that increased investor activity and construction may be offsetting the rising demand for rental properties. The demand is driven by solid migration levels and low first home buyer numbers."</span></p>
<p><a href="/images/2015/07/10/Screen%20Shot%202015-07-10%20at%203.14.28%20PM.png" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2015/07/10/Screen%20Shot%202015-07-10%20at%203.14.28%20PM.png" alt="" width="742" height="527"><br></span></p>
<p><a href="/images/2015/07/10/Screen%20Shot%202015-07-10%20at%203.16.09%20PM.png" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2015/07/10/Screen%20Shot%202015-07-10%20at%203.16.09%20PM.png" alt=""></span></p>
</body></html>

Domain

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

Domain

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

Developments

New apartments

New townhouses

News