<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

John Mcgrath

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<p>McGrath’s most difficult days are behind it, according to the listed McGrath estate agency boss Geoff Lucas.</p>
<p>But the board will not pay a final FY18 dividend saying McGrath’s dividends will be reinstated as soon as it is deemed prudent.</p>
<p>“With the new board and senior leadership team settled in, the last quarter of FY18 saw the beginning of a period of stabilisation, and we are in the midst of a business turnaround.</p>
<p>"We are already seeing good progress in culture and agent recruitment, and critically we are seeing some strong sales results within our key markets,” Lucas maintained.</p>
<p>However weak real estate industrywide conditions impacted sales volumes.</p>
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<p>And their revenue was impacted by many internal factors including lower agent numbers and a decline in offices, particularly within the franchise network.</p>
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<p>Agent numbers were down 99 to 558 with 8,065 sales from franchises during FY18 compared to 8,337 sales during FY17.</p>
<p>The number of company-owned offices declined to 26 from 28 over FY18.</p>
<p>The number of franchisee offices decreased to 69 from 74 in the prior year. </p>
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<p>There was a slowdown in the project marketing business with tightening regulatory conditions impacting investment demand.</p>
<p>There was also lower numbers of properties under management in the company owned network.</p>
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<p>Managed properties declined to 7,215, driven by challenging conditions across the East Coast residential market.</p>
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<p>The number of Oxygen Loans settled were at four year lows. </p>
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<p>At the end of FY18 there were 31 mortgage brokers supporting the network, a decline of five.</p>
<p>Even its industrywide AREC conference didn't exceed past record attendance levels.</p>
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<p>The update to shareholders unveiled snippets of the strategy to turn the business around pinpointing a desire for agency growth in Victoria, Queensland and Western Sydney.</p>
<p>"Due to the difficult market conditions, lower sales volumes, and the departure of some of McGrath’s sales agents over FY17 and FY18, group revenue was down 23 percent to $99.2 million (compared to FY17)."</p>
<p>The lower revenue reduced underlying EBITDA to $5 million (before $4 million of one-off costs and $59.4 million of goodwill impairments), achieving market guidance.</p>
<p>"The ability of the business to generate positive earnings even after a $30.2 million reduction in revenue is testament to the robustness of the McGrath brand and position in the real estate industry," Lucas said, after a tumultuous year.</p>
<p>"The current property market conditions are challenging," he said. The revenue of company owned agents was down 32 percent.</p>
<p>"We will be concentrating our growth in predominantly franchised offices along the eastern seaboard, with particular focus on Victoria and Queensland.</p>
<p>"We will also be strengthening our presence in our existing company owned offices with an additional focus on the growth precincts around Western Sydney”, he added.</p>
<p><span>''We do believe the most difficult days are behind us, notwithstanding the current challenging residential market,'' Mr Lucas said.</span></p>
<p>The press release advised the new board and management team had put in place an operational plan that is "stabilising" the business, with early signs of positive momentum repositioning the business for a return to growth.</p>
<p>The shares were trading at 38 cents, edging up to 40 cents during morning trade having been floated in late 2015 at $2.10.</p>
<p>The FY18 (vs FY17) results overview:</p>
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<p>  Revenue down 23% to $99.2 million</p>
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<p>  Reported results reflect the impact of one-off restructuring costs ($4 million) and impairment charges ($59.4 million) – EBITDA of $1.0 million, and loss after tax of $63.1 million</p>
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<p>  Underlying EBITDA of $5 million; achieved guidance</p>
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<p>  Balance sheet with no debt and $10.9 million cash</p>
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<p>  After the departure of some of McGrath’s sale agents, market share based on value was constant at 3.1% (source: CoreLogic, 30th June 2018).</p>
<p> Over $12 billion of properties were sold by McGrath in FY18 with property sales volumes decreasing 14% to 11,067, impacted by the reduction in the number of agents.</p>
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<p>During the reporting period, the board announced a number of changes to its composition which included:</p>
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<p>  the resignation of Non-Executive Directors Cass O’Connor, Elizabeth Crouch, Nigel Dews and Cath Rogers;</p>
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<p>  the appointment of independent Non-Executive Directors Peter Lewis and Andrew Robinson; and</p>
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<p>  the appointment of Non-Executive Director Wayne Mo. John McGrath is not considered independent as he is an executive director and Wayne Mo is not considered independent as he is the CEO of AL Capital, a substantial holder of the company via Aqualand.</p>
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jchancellor-FAypfDUnLy

McGrath Group revenue down 23 percent as estate agency says most difficult days are behind it

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<p>McGrath is on track to achieve its targeted $1 million in full-year earnings for 2018.</p>
<p>In a note to the ASX this afternoon, the listed real estate agency said it would achieve earnings before interest and depreciation of $5 million but would then have $4 million in one-off expenses.</p>
<p>There will also be a further $35 million write down of goodwill for the company-owned agencies, which the business acquired in 2015 ahead of its float, leading to a net loss for the full year.</p>
<p>The $35 million write-off is in addition to the $21.8 million impairment to company-owned agencies incurred at its half year.</p>
<p>There was also another $1.1 million goodwill impairment of property management rights.</p>
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<div>"The past 12 months have been very challenging for McGrath," McGrath chief executive Geoff Lucas said.</div>
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<div>"While reduced sales volumes during 2018 impacted the performance of the business, I am pleased with the recent initiatives and the positive rebuilding of the business we have seen."</div>
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<p data-gtm-vis-first-on-screen-7770372_137="10238" data-gtm-vis-total-visible-time-7770372_137="1900">More details on the conditions and outlook will be provided at the annual results presentation on August 20.</p>
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<p><a href="/news/who-is-aqualands-jin-lin-the-second-biggest-shareholder-in-the-mcgrath-estate-agency">Aqualand</a> will eventually take a 15 per cent stake in the company.</p>
<p>Shares in McGrath were trading unchanged at 38¢ at market close.</p>
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<p>"Since I returned to the company in February, we have done a lot of work looking at the coalface of the business and stabilising staff and operations," Fairfax Media reported Lucas saying.</p>
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<div>"I'm pleased that it is paying off and we are generating interest in our recruitment of new staff."</div>
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j.ballantyne1990-6AQqhLzZaK

McGrath on track to reach forecast earnings despite weakened overall property market

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<p>Entrepreneur Tony Denny has acquired a 5 per cent stake in the listed real estate agent agency, McGrath.</p>
<p>An ASX substantial holding notice was lodged yesterday after Denny acquired his 5.05 per cent stake in the agency.</p>
<p><span>The cashed-up </span><span>businessman</span><span> took a position ahead of the agency unveiling its turnaround strategy.</span></p>
<p>The 7.2 million shares were bought over the past fortnight after buying shares on March 12 and 20 costing just over $3 million.</p>
<p data-gtm-vis-first-on-screen-7770372_137="4729" data-gtm-vis-total-visible-time-7770372_137="4000" data-gtm-vis-has-fired-7770372_137="1">Some were likely acquired from McGrath's biggest institutional backer, Perpetual which sold almost 2.5 million shares on March 12 to reduce its stake from 14.2 per cent to 11.6 per cent.</p>
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<div>Denny's is a Central Coast-based property developer, whose $355 million fortune came from selling his AAA Auto dealership European network to Polish private equity firm Abris Capital Partners in 2014. <span> AAA AUTO was the largest used car dealer in Central and Eastern Europe.</span>
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<div>Denny's sold-out apartment development called Vue at Gosford used McGrath's Central Coast office in its marketing.</div>
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<p>Shares in McGrath closed Tuesday up 2.5 per cent at 41 cents, having dipped to a 39 cent record low last Friday after a series of earnings downgrades and board turmoil.</p>
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<p>A spokeswoman for Denny's development company, Central Real, told The Australian Financial Review the shareholding was a "passive long-term investment".</p>
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For $3 million, Central Coast entrepreneur Tony Denny buys 5 percent stake in McGrath

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<p>John McGrath, the McGrath Estate Agents founder, has slammed Harry Dent’s forecasts on Australian property.</p>
<p>In a column published in Switzer Daily, McGrath noted Dent was echoing Australian housing bubble predictions he made in 2014 and 2011, despite them being proved wrong.</p>
<p>McGrath criticised Dent for failing to account for the “ingenuity of Australians, not to mention our long-embedded culture”.</p>
<p>Dent admitted, in a Channel 9 interview and one to <a href="/expert-insights/investing/80453-harry-dent-repeats-bubble-forecast-for-sydney" target="_blank">the Daily Telegraph</a>, that his predictions in previous years had been off the mark but maintained Australian property was in a bubble that would inevitably burst.</p>
<p>McGrath said Dent lacked an understanding of the local housing market, typical of overseas commentators who did not understand the local housing market.</p>
<p>“I can understand why Dent would look at Sydney, in particular, and think it’s overvalued.</p>
<p>"That’s how it might look on paper to an analyst who doesn’t understand how things work here,” <a href="http://www.switzer.com.au/the-experts/john-mcgrath-property-expert" target="_blank">McGrath wrote</a>. </p>
<p><span>"Good quality Australian real estate, held over the long term, is one of the safest and most reliable asset classes you’ll find anywhere in the world.</span></p>
<p>“He fails to take into account all the unique factors that have kept our property prices growing while also protecting our market from collapse.”</p>
<p>Strong population growth was not the only reason the market weathered the GFC relatively unscathed, according to McGrath. </p>
<p>High levels of prudential oversight in the local banking system and the high concentration of Australia’s total population living in Sydney and Melbourne ensured steady demand for housing, despite high prices, he said.</p>
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<p class="wp-caption-text">Dent’s forecasts also failed to account for issues such as Sydney’s geography, which has encouraged a housing undersupply, McGrath said.</p>
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<p>“When you’re having a growing population that is very concentrated around a small group of cities — and two in particular, you’re going to have much greater stability in home values no matter how high prices go,” he said.</p>
<p>“Additionally, in major growing cities like Sydney where urban sprawl has gone about as far as it can, we now have a chronic undersupply of new housing that is also serving as a strong foundation for ongoing growth.</p>
<p>“On top of this, we have low unemployment, a strong and resilient economy, low interest rates, a tax system that rewards property investment and a growing market of international buyers.”</p>
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John McGrath says Harry Dent doesn't get it on Sydney housing

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<p><span>High-profile real estate agent John McGrath has reportedly scrapped plans to step up as executive chairman of his agency. </span></p>
<p><span><span>Peter Lewis</span><span> seems set to be announced instead as the new chairman of the agency </span><span>John McGrath</span><span> founded in 1988. </span></span></p>
<p>Lewis is Kerry Stoke's former chief financial officer, Peter Lewis.</p>
<p data-reactid="379">He left the Seven Network in 2013, then joined Southern Cross Media, but left the radio and metropolitan radio broadcaster.</p>
<p data-reactid="379">McGrath is to remain as an executive director, but not its chief executive.</p>
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<p data-reactid="392">Privatising the company ''is off the agenda,'' spokesman Tim Allerton said on the weekend.</p>
<p data-reactid="392">McGrath Estate Agents currently has 95 offices located throughout the east coast of Australia.</p>
<p data-reactid="392">McGrath listed on the ASX in December 2015 at $2.10 and closed last week at 41¢.</p>
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McGrath looks to Peter Lewis to lead agency board

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<p>Estate agent veteran John McGrath has reacted quickly to the 9.42am trading halt secured this morning by the panicked, soon-to-depart McGrath Group directors and executives.</p>
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<p><span>Rampant rumours forced McGrath to break his personal mantra of avoiding comment on adverse media.</span></p>
<p><span>He issued a 6.29 pm statement to shareholders who have watched the wealth destruction of the company escalate in recent days with dismay.</span></p>
<p><span>"The ridiculous recent press coverage seeking to link matters which are personal to me with McGrath Limited</span><span> is distracting attention from the important work of the company, to a point where I have concluded I need to make a statement to clear the air."</span></p>
<p><span>The dysfunctional McGrath board had asked the ASX to suspend shares from trading this morning after the</span> company "become privy to further information", which it wouldn't comment on, other than assuring shareholders "they had not taken the step lightly."</p>
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<p>McGrath has been in the news recently over alleged, but limply denied, $16.2 million gambling debts and its alleged funding through an alleged $100 million margin lending facility.</p>
<p>McGrath's response this evening addressed the issue with more candor than his pronouncements over the past two weeks.</p>
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<p>"Like many Australians, I enjoy a punt," he told shareholders.</p>
<p>"I have a credit account with a bookmaker for this purpose.</p>
<p>"That account is not secured by, or otherwise connected with, my shares in the company.</p>
<p>"The account is well within my means in the context of my net wealth.</p>
<p>"I am in full compliance with the terms of that account.</p>
<p>"I have never, and would never, let what I might choose to do in my personal time impact upon the company."</p>
<p><span>McGrath then advised he dedicated more than 60 hours per week to his work for the company he founded 30 years ago. </span></p>
<p><span>"I thank the great team at the company for their support at what has been a personally challenging time for me. </span></p>
<p><span>"I will continue to focus my energies on the important work of improving performance, growing the company and restoring shareholder value. </span></p>
<p><span>"I do not intend to comment further on this personal matter," he concluded, without advising whether legal action would be pursued.</span></p>
<p>Last week John McGrath advised shareholders the $16.2 million gambling debt allegation was "rubbish" and that he had never used his McGrath shares as security for any loan.</p>
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<p>Ending the day of debacle, the listed real estate agency also needed to update the ASX with a corrected financial advisory at 6.46pm, given an embarrassing nine errors when McGrath Group reported its small loss. There were n<span>o wrong numbers in the statutory accounts, rather the <span>investor pack. </span></span></p>
<p>Last week John McGrath told the McGrath Group board that he was well progressed in discussions with securing new proposed directors (two appointments are needed as a minimum) to replace those who had recently handed in their resignation to allow John McGrath to resume executive control, apparently without any privatisation.</p>
<p>It will see the departure of the McGrath chair, Cass O’Connor who has presided over a board united in obvious turmoil with the company founder.</p>
<p>The news of the deteriorating trading results in the McGrath estate agency finances first emerged last month in an internal document obtained by The Australian Financial Review.</p>
<div>Details of the McGrath board meeting on Friday, January 19 were published on the following Monday, January 22.</div>
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<div>The Fairfax newspaper also advised there had been "threats by the board to resign en masse over the Christmas holiday."</div>
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John McGrath says his punting losses are "well within his means" 

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<p>The listed real estate agency McGrath requested and secured a trading halt on Thursday morning pending an "announcement regarding recent media speculation in relation to Mr McGrath."</p>
<p>Its chief executive Cameron Judson said "it was a precautionary measure."</p>
<p>"The event that will end the trading halt is the company issuing an announcement by Mr McGrath," the company statement said.</p>
<p>"The company has become privy to further information, which I can't comment on, re this matter and is seeking urgent clarification from John McGrath," chief executive Cameron Judson said during the 11am investor call.</p>
<p>"The board has considered this trading halt a significant development and let me assure you they have not taken this step lightly." Judson is leaving the company on Friday said the board was doing everything in its power to update the market as soon as it could.</p>
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<p>"An update is though contingent upon John McGrath providing further information," he said.</p>
<p>Judson declined to advised on the unspecified further information.</p>
<p>Mr McGrath has been in the news recently over alleged debts and its funding.</p>
<p>"This matter will be dealt with in due course once all the facts are settled," Judson advised.</p>
<p>The comments came at the beginning of the briefing which was delayed two hours.</p>
<p>Last week John McGrath said he has never used his McGrath shares as security for any loan.</p>
<p>This morning McGrath reported a small loss, while some agents have been given an $850,000 allocation to keep them from departing the public listed company.</p>
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Urgent clarification being sought by McGrath board from its founder

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<div class="page" title="Page 1">The real estate agency McGrath has reported a small loss.</div>
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<div class="page" title="Page 1">But despite being hit with a sales revenue slump, some 22 estate agents have benefited from a $850,000 allocation in additional bonus commissions to keep them from departing the publicly listed estate agency.</div>
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<div class="page" title="Page 1">Revenue for the six months to December 31 was $51.6 million, down 23 percent on the same period a year ago.</div>
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<div class="page" title="Page 1">No interim dividend will be issued.</div>
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<div class="page" title="Page 1">Earnings before interest, tax and amortisation notched a $52,000 loss from EBITDA of $9.6 million a year earlier.</div>
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<div class="page" title="Page 1">But company founder John McGrath broke his silence to say he was "proud" and "excited" to again be leading the business from tomorrow when its chief executive Cameron Judson leaves the company. 
<p>Chairman Cass O’Connor and current non-executive directors Elizabeth Crouch and Cath Rogers have also announced their intention to resign on Monday.</p>
<p>Replacement directors have yet to be appointed, with suggestions a Sydney solicitor is among the likely replacements. Senior staff including Adrian Bo are set for elevated administrative roles in the new regime. Bo <span>holds two post graduate degrees in business administration, including an </span><span>MBA.</span></p>
<p><span><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/2/15/bo.jpg" alt=""></span></p>
<p>The company went into a trading halt until Monday.</p>
<p>''The reason for the trading halt is a pending announcement regarding recent media comment in relation to Mr McGrath," the company said.</p>
<p>"The event that will end the trading halt is the company issuing an announcement by Mr McGrath."</p>
<p>Meanwhile company owned sales generated $2.6 billion in sales value from 1,712 sales for 1H FY18 compared to $3.5 billion and 2,544 sales in 1H FY17.</p>
<p>Its franchise services offices exchanged 4,324 sales during 1H FY18 with a sales value of $3.9 billion compared to 4,222 sales with a sales value of $3.8 billion in 1H FY17. </p>
<p>As at 31 December 2017 the network comprised 27 company owned offices and 70 franchise offices with 583 agents. </p>
<p>Total agents decreased significantly. Agents in the franchise offices decreased 3% to 393 and agents in the company owned offices decreased 21% to 190. </p>
<p>McGrath's report advised it continued to have a "concerted focus on talent identification, to attract, develop and retain high performing agents and emerging sales agents."</p>
<p>"The company’s performance has fallen short of expectations, and is influenced by several factors including lower volumes of listings, lower agent numbers and a significant slow-down in the traditionally volatile project marketing segment," it advised.</p>
<p>The company posted a loss of $25.5 million after impairments of $22.9 million to goodwill. </p>
<p>The directors slashed the business’s goodwill which was on the balance sheet at the end of last year at $53 million.</p>
<p>Click here <a href="https://www.propertyobserver.com.au/images/2018/2/15/overview.jpg" target="_blank">to enlarge.</a></p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/2/15/overview.jpg" alt=""></p>
<p>McGrath has $3.4 million cash, no debt, and net assets of $74.4 million. </p>
<p>Founder McGrath, who has taken back direct management control of the company, said a “new approach” was needed, and thanked investors for their loyalty.</p>
<p>“I am very proud and excited to again be leading the business,” he says.</p>
<p>“Despite the challenges we have endured since listing, McGrath remains one of the best real estate businesses in Australia with outstanding talent throughout the Group. </p>
<p>“Residential real estate is one of the largest industries in Australia, as well as being the country’s largest asset class, and we remain very well positioned to leverage our scale and quality brand for future success and growth.</p>
<div id="taboola-mid-article-stream-thumbnails" class=" trc_related_container trc_spotlight_widget">“Our investors and team have exhibited great patience and loyalty during this difficult time and I intend to work very hard to repay them for their confidence in the company. </div>
<p>“I have a clear plan to rebuild momentum but I will let our results speak for themselves from here.”</p>
<p>The company floated in December 2015 at $2.10. The shares last traded at $0.425 before it halted trading.</p>
<p>Outgoing CEO Cameron Judson says earnings have been adversely impacted “by the underperformance of our company owned sales business, including project marketing”. </p>
<p>“Our annuity businesses, Property Management, Franchise and Oxygen have performed largely to expectations,” he advised shareholders.</p>
<p>The company announced a $1 million write-down of acquired property management rights. Company owned property management decreased the number of properties under management (leased) to 7,449 at 31 December 2017, from 7,498 at 31 December 2016.</p>
<p>Click here <a href="https://www.propertyobserver.com.au/images/2018/2/15/revenue.jpg" target="_blank">to enlarge.</a></p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/2/15/revenue.jpg" alt=""></p>
<p>Oxygen Home Loans settled $422 million in mortgages during the period, slightly down on last year (5%). The book value of loans under management has increased 12% year on year to $2.9bn. At 1H FY18, there were 33 brokers supporting the network, compared to 32 in 1H FY17.</p>
<p>Judson says the restructuring of the board, executive and corporate functions have delivered annualised savings of $5 million with in the leaner organisation.</p>
<p>Cost savings included space relinquished at its Edgecliff headquarters where the business gave up one of its three floors. </p>
<p>The McGrath network has 95 offices and 2,000 staff.</p>
<p>Keeping staff has seen a McGrath Future rollout which includes high performance bonus commission, recruitment trail commission and a property management equity partnership structure.</p>
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McGrath estate agents get $850,000 additional commission windfall to stop defections

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<p>Estate agent company founder, John McGrath has told the McGrath Group board that he is well progressed in discussions with securing new proposed directors.</p>
<p>The outgoing directors have accordingly given written notice that their resignations will take effect from close of business February 19 four days following the release of the company’s interim results are announced on February 15.</p>
<p>It follows the announcement on January 22 of the intention of McGrath chair, Cass O’Connor and current non-executive directors Elizabeth Crouch and Cath Rogers to resign as directors.</p>
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John McGrath well progressed in locking in new directors

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<p><span>McGrath Limited has responded to</span><span> press speculation today in relation to a purported margin lending facility by John McGrath’s investment company, Fondorru Pty Limited, which holds shares in the listed estate agency. </span></p>
<p><span>John McGrath confirmed to the board that there is no margin lending facility with respect to his shares in MEA.</span></p>
<p><span>"His shares in MEA are not and have never been used as security for any loan," the shareholders were advised. </span></p>
<p><span><span>McGrath holds</span><span> about 26 per cent of the </span><span>shares in the listed company which has a market cap of $62 million</span><span>.</span></span></p>
<p><span><span><span>The private company, Fondorru, established in 1990, reportedly controls more than half of his 26 per cent stake. The listed shares were trading at 44 cents today.</span></span></span></p>
<p><span><span><span><span>The company's securities trading policy prohibited </span><span>margin lending</span><span> on shares in </span><span>McGrath </span><span>by its directors and executives.</span></span></span></span></p>
<p><span><span><span><span>The issue arose as the real estate boss John McGrath described reports of a $16.2 million gambling debt as "ridiculous."</span></span></span></span></p>
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<p><span>On its late 2015 float, the McGrath Network comprised over 600 agents responsible for sales turnover of $11.6 billion in FY2015 from 11,000 sales. It managed 22,700 properties, which had a value of $16.6 </span>billion. McGrath’s Oxygen Home Loans business had 31 mortgage brokers with loans under management of $2 billion, as at its 2015 float date. </p>
<p>Its most recent advisory was $2.7 billion in loans under management, with 36 brokers, some 657 agents securing 12,800 sales with a $13.9 billion total, along with 24,700 properties under management. </p>
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<p><span><span><span><span> </span></span></span></span></p>
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