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

Joel Robinson

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

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

Sammut secures approval for debut Brisbane apartment development in Toowong

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

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

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

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

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

WM Residences fills gap in Mordialloc townhouse market

John Mcgrath

<html><body>
The besieged real estate boss John McGrath has described reports of a $16.2 million gambling debt as "ridiculous."
His response came in a 5.55am Saturday morning email to staff.
"This rubbish will not distract me and should not distract us," he suggested.
"Having just enjoyed a productive week, I was hoping perhaps I might get some respite from the barrage of negative media, only to find yet another article clearly designed to damage me.
"The information in the article is ridiculous but as Mark Twain once said “A lie can travel halfway around the world before the truth has got its boots on."
"I will deal with it and its authors," he told his staff who awoke to read a Fairfax Media article alleging his gambling debt to the Tom Waterhouse-run betting company William Hill was the biggest personal debt in Australian gambling history.
McGrath, who founded the estate agency in the late 1980s, resumed control last month after the current board decided to depart amid gloomy trading figures.
The share price hit a new intraday low of 43 cents, down three cents, in Monday morning trade on the ASX, better than the overall market decline.
A McGrath spokeswoman said John McGrath was not available for comment as he worked to execute his 2018 growth plans.
His agency sold 16 of 26 auction offerings at auction yesterday with prices between $430,000 for a two bedroom East Ballina villa to a four bedroom $1.7 million Merewether house.
His email noted the past few weeks had been among "the most challenging ever in my life.
"I’m sorry that I have been targeted – but I am more concerned about you guys than about me." 
McGrath has previously denied having any gambling debts. 
"I can assure you that I am neither a large punter...nor do I owe any funds to anyone," he said in a text message to Fairfax Media when they sought insights in 2017.
McGrath did not reply to written questions put to him on Friday by Fairfax Media.
This article was first published in the Sunday Telegraph.
</body></html>

jchancellor-FAypfDUnLy

John McGrath says claims of $16.2 million gambling debt is "rubbish" that will not distract him

<html><body>
Olivia Wokes - who bills herself as a results-focused consumer marketing professional - has quit the McGrath estate agency.
She was the head of marketing for the veteran agent John McGrath for the past year and seven months.
Her departure to Deloitte, the global management consultancy, was announced today by John McGrath's older brother, Matt McGrath, who has been Deloitte's chief marketing officer since last May.
Wokes joined the McGrath agency in July 2016 from Channel 10 where she worked with Matt McGrath, who was also a marketing adviser for his brother's business for 27 years until late 2016.
Her appointment to McGrath came a month prior to McGrath's current chief executive Cameron Judson, who is soon to depart.
Judson came onboard at McGrath in August 2016 to replace the seven year chief operating officer Geoff Lucas who was off to become the chief operating office at the artisan bread maker and café group Sonoma, which he lead for one year and one month.
<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/2018/1/24/Olivia.jpg" alt="">
 
Wokes, with experience in television, print and digital brands, bills herself has having an intrinsic understanding of advertising strategy and consumer marketing.
Her two year time at the Network Ten saw Wokes "spearhead" a strategy that resulted in market share growth for the television company which is freshly out of its days in administration.
For the prior two years, Wokes had been the marketing manager at the now axed FAMOUS, the weekly magazine published by Pacific Magazines.
 
</body></html>

j.ballantyne1990-6AQqhLzZaK

John McGrath's senior marketing executive hired by McGrath's brother 

<html><body>
<div class="cq-article-content-paras section">
Stockbroker Shaw Partners expects another McGrath Estate Agents downgrade after it has already missed its targets for the first half of the year.
"We have never liked the stock, disputed the "stickiness" and "defensive" nature of rent rolls," its savage note said.
Its analysts have downgraded the share price of McGrath to as low as 22 to 25 cents, Fairfax Media reported.
It said McGrath management had "zero credibility."
Its note to clients was titled Titanic. McGrath shares rose in morning trade to 54 cents today, up 3 cents. 
"When you have mass exodus of agents something stinks internally and of course there are the external structural challenges," its note says.
"The 'corporate' angle is likely to keep the stock at higher levels than it should be, use this as a chance to sell.
"Company looks set to do $4 million to 4.5 million in EBITDA, being generous and implying a 40 to 60 per cent improvement on the first half," its note said.
"The cost cuts have gone as far as they can while leaving the company with the resources to benefit from market improvement," Shaw said.
Bell Potter which underwrote the McGrath float at an earning multiple of 8.8 (to enterprise value) in the $2.10 IPO price has moved to a "sell" recommendation.
"In our view the lack of a leadership team and also options for the company (outside of privatising) support this recommendation," Bell Potter said.
Without spending a cent, John McGrath resumed defacto leadership of the company this week amid board and company tumult.
Key sales staff and a big private shareholder have backed him to turnaround the company he founded 30 years ago, perhaps by taking it private.
</div>
<div class="cq-article-content-paras section">
 
</div>
</body></html>

McGrath Group share price could fall by half again: stockbroker

<html><body>
The stockbroker Bell Potter has moved to recommend its clients sell shares in the McGrath Estate Agent group.
The publicly listed estate agency jumped 1 cent in trade today to 51 cents.
The all time low was yesterday's 50 cents which followed board level turmoil which saw founder John McGrath take back the reins at the agency.
<div class="cq-article-content-paras section">
But Bell Potter now expect it to fall to 45 cents. Fellow stockbroker Shaw Partners suggests the share price could fall by half, again.
Bell Potter advised clients that it had lost its confidence in McGrath's ability to "forecast earnings."
It has downgraded its earnings forecasts for the next three years, predicting a loss in the 2018 fiscal year.
</div>
Meanwhile John McGrath has described the tumultuous start to the new year as the "best few days" of his life as he steps in to steer the business.
McGrath was fronting around 1000 agents and team members at the agency's annual "kickstart" event at Royal Randwick Racecourse in Sydney.
<div id="plista_widget_outstream_5a66e8427e93280" class="plista_widget_outstream" data-widget="">"We will be moving forward at a pace not seen before. This business has incredible greatness and resilience," Mr McGrath said, according to a copy of remarks provided to Fairfax Media by the company which now has a $72 million market capitalisation.</div>
"We will be laser-focused, customer-centric, fast, agile and our innovative heritage will once again come to the fore.
''I have more passion and determination than I have ever had.”
“It’s the best few days of my life rather than what could’ve been the worst,” he said, thanking the team for their support.
Bell Potter, along with investment bank JP Morgan, underwrote the sharemarket listing of property agent McGrath in December 2015 at $2.10 a share.
Last January Bell Potter told its clients that McGrath shares were a "hold" with an 86 cent a share 12 month price target, having previously had the shares as a buy.
Broker Bell Potter upgraded its recommendation from a 'hold' to 'buy' at 61¢ a share in February last year. Analyst Chris Savage titled his February 2017 report on the stock "Calling the Bottom".
The much anticipated return of John McGrath to lead the McGrath Group was announced yesterday morning after a shock leak of its fall from profitability emerged in a Stockmarket update.
The stock market was told that McGrath was headed back to running the company he founded in 1988 in Paddington.
The statement read:
"As noted in November, part of Stage Two of the Company’s structural review examined costs in noncustomer facing roles, including among the Company’s board and executive management level and roles where key expertise was unlikely to be required in the medium to long term. That expertise includes material expansion of Company owned offices and growth-oriented M&amp;A initiatives.
Pending interim executive chairman, Mr McGrath said “Like all shareholders I am very disappointed with the performance of the Company over the last two years.
"Now is the time for a new approach. Despite the challenges we have endured since listing, McGrath remains one of the best real estate businesses in Australia with outstanding talent throughout the Company.
"I am very excited and proud to once again be leading the team in the future.”
“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.
"I have a clear plan to rebuild momentum but I will let our results speak for themselves from here.” 
Chairman Cass O’Connor, who has resigned alonged with non-executive directors Elizabeth Crouch and Cath Rogers, said John McGrath was well placed to take back the reins.
The former McGrath franchisee Shane Smollen has also backed John McGrath to turn around the company he founded 30 years ago.
"There's no reason why John with the right management team can't turn around McGrath," Smollen, its third biggest shareholder, told The Australian Financial Review.
But The Australian reported Smollen has rebuffed suggestions that he is part of a plan to ­return embattled McGrath Real Estate to private hands.
He was McGrath's largest franchisee before selling his network of 10 Sydney offices back to McGrath ahead of the November 2015 IPO for $31.5 million in cash and $21 million in shares, reportedly the highest price paid for a residential real estate business in Australian history.
 
</body></html>

McGrath Group is a "sell" says float stockbroker Bell Potter

<html><body>
The much anticipated return of John McGrath to lead the McGrath Group has been announced this morning after a shock leak of its profitability emerged overnight.
The stock market was told at 9am this morning that McGrath was headed back to running the company he founded in 1988 in Paddington.
The statement read:
"As noted in November, part of Stage Two of the Company’s structural review examined costs in noncustomer facing roles, including among the Company’s board and executive management level and roles where key expertise was unlikely to be required in the medium to long term. That expertise includes material expansion of Company owned offices and growth-oriented M&amp;A initiatives.
Pending interim executive chairman, Mr McGrath said “Like all shareholders I am very disappointed with the performance of the Company over the last two years.
"Now is the time for a new approach. Despite the challenges we have endured since listing, McGrath remains one of the best real estate businesses in Australia with outstanding talent throughout the Company.
"I am very excited and proud to once again be leading the team in the future.”
“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.
"I have a clear plan to rebuild momentum but I will let our results speak for themselves from here.” 
Chairman Cass O’Connor, who has resigned alonged with non-executive directors Elizabeth Crouch and Cath Rogers, said McGrath is well placed to take back the reigns.
“As Executive Director, founder and major shareholder, John is well placed to transition to interim executive chairman role. John, the Board and the CEO will work closely to effect a smooth transition.”
Nigel Dews has resigned from the board, due to work commitments and as part of the stage two review.
During 2017, Dews was appointed CEO of Message Media, which necessitated his move interstate.
The transition period will allow for the recruitment of additional non-executive directors to fulfil the company’s legal and strategic requirements. 
Earlier today it was reported that the McGrath Group Report November 2017 showed McGrath Limited had sunk to a $1.3 million loss as it suffered from falling commission income from residential sales, against the targeted $3.3 million net profit after tax between July and November 30.
The chief executive is set to step down.
Founder John McGrath previously stood down as chief executive in August 2016. 
As a result of McGrath's stage two structural review, McGrath CEO Cameron Judson and head of corporate services and company secretary, Morgan Sloper, will leave the company.
Judson, a turnaround specialist and former CEO at recruitment firm Chandler Macleod, resigned after just 18 months in the role. He will remain CEO until at least the publication of full-year results in February.
 
</body></html>

jrobinson-rf4aSBido9

John McGrath returns to helm at McGrath

<html><body>
Deteriorating trading results in the McGrath estate agency finances have emerged in an internal document obtained by The Australian Financial Review.
The Fairfax newspaper advised it had obtained a document, McGrath Group Report November 2017, that showed McGrath Limited had sunk to a $1.3 million loss as it suffered from falling commission income from residential sales, against the targeted $3.3 million net profit after tax between July and November 30.
<div>
A leak also advised there had been infighting within the publicly listed company board, and even "threats by the board to resign en masse over the Christmas holiday."
</div>
<div>There was a McGrath board meeting on Friday but no announcements made to the stockmarket. It comes just hours before John McGrath was taking back the reigns of the McGrath Group.</div>
<div> </div>
<div>"It is understood the majority of the board clashed with Mr McGrath over the wording of the next trading upgrade to the ASX," The Australian Financial Review reported.</div>
<div>
The loss for the first five months of the financial year compared to a $2.7 million net profit in the six months to December 2016.
Since listing in December 2015 McGrath has delivered several profit warnings prompting McGrath shares to be trading at around 57¢, well below its IPO price of $2.10. It has previously traded as low as 52 cents and fell back to 52 cents this morning.
</div>
<div>
<div>
The emerging financial position could ignite more privatisation expectation of the agency which has a $76 million market capitalisation ahead of trade this morning.
John McGrath, who holds 26 per cent of the company, is now in a better position to lodge any bid, following his resignation last week from the board of the REA Group after 18 years. He holds $10.8 million REA Group shares which could be more readily sold given he was no longer a director the realestate website publishing group.
The internal documents show McGrath missed its internal forecast for earnings before interest, tax, depreciation and amortisation (EBITDA) by more than 80 per cent in the five months to November to generate $1.3 million instead of $7.8 million it had earlier expected. 
</div>
<div>
The documents reportedly show the McGrath balance sheet has been hit by a large depreciation of its rent roll asset (or property management operations).
Operational expenses met budget expectations.
But there was a blowout in doubtful debts and legal fees due to an increase in legal action.
McGrath's earnings are substantially below forecasts by equities analyst Bell Potter, which estimated the group earnings of $16.6 million in 2018.
</div>
<div>The board indicated in an update to the market last November that the agency might miss analyst targets.</div>
<div>
"FY18 earnings could be 20 per cent to 25 per cent lower than the current analyst estimate, due to high restructuring charges and a partial year of cost savings," the company said.
When approached by the Financial Review, McGrath declined to comment over the weekend.
</div>
<div>
"McGrath declined to comment other than to say the company is well aware of its continuous disclosure obligations which we take very seriously," a spokeswoman said.
The board, chaired by Cass O'Connor, has just five members including John McGrath. The other there directors are Elizabeth Crouch, Nigel Dews and Cath Rogers. Cameron Judson is the chief executive officer, Glynn Wright, the chief financial officer and Morgan Sloper, its head of corporate services/company secretary.
Several former Mcgrath executives have run a clandestine campaign of denigration against the group over the past year.
</div>
</div>
</body></html>

Extraordinary McGrath Group leak suggests board in turmoil

<html><body>
Estate agent John McGrath is departing the board of the REA Group.
He has been on the board since its 1999 float. He was its chairman for four years until 2007.
McGrath was an early adopter of new technology, instrumental in seeing the digital real estate website eventually succeeding in what had been a sales industry slow to embrace change. In 2000 McGrath convinced Lachlan Murdoch to take equity, in a deal that saved the small internet start-up from a dotcom implosion. Pamela Williams' book, Killing Fairfax noted the two young men had met on the board of the Museum of Contemporary Art Young Patrons group.
<div class="page" title="Page 1">
<div class="layoutArea">
<div class="column">
REA Group announced that McGrath will step down from the board on 16 January 2018.
Chairman Hamish McLennan acknowledged McGrath’s service to the Board.
“Mr McGrath’s lengthy contribution to the REA Group has been highly regarded by the board.
"I am particularly grateful for his invaluable industry knowledge.
"He leaves the group with a multi-billion dollar market capitalisation and we wish him the best of luck”. 
<div class="page" title="Page 1">
<div class="layoutArea">
<div class="column">
A search for a new independent director is now being undertaken. 
McGrath has been the only board member directly connected to the Australian real estate industry since the 2012 departure of Sam White.
McGrath's final director's interest statement advised he had 146,000 shares which were trading at $74 a share.
McGrath, who began his now listed estate agency in 1988, remains an executive director at the McGrath group.
The REA Group's humble beginnings in 1995 was a garage in Doncaster, in the Eastern suburbs of Melbourne, as noted in Killing Fairfax: Packer, Murdoch and the Ultimate Revenge by Pamela Williams, published by HarperCollins in 2013.
Martin Howell and Karl Sabljak, who had been working at the Royal Melbourne Institute of Technology (RMIT) as computer systems administrators, registered the realestate.com.au URL in August 1995.
In August 1999 Andrew Barnes oversaw negotiations for Macquarie Bank to to buy a controlling stake of 51 per cent for just under $1 million.
With Andrew Barnes as chairman, and 15 million shares issued at 50¢, realestate.com.au was admitted to the Australian Stock Exchange in December 1999.  
While it opened at $1.50 a share in December, 1999, it was trading between 15¢ and 20¢ in 2000.
On November 30, 2000, News Limited announced it had invested cash of $2.25 million in realestate.com.au, plus advertising, marketing and other contra for a total investment worth $10.75 million in the deal negotiated by Lachlan Murdoch.
In 2013, Rupert Murdoch expressed his delight at having its REA investment.
"And I don’t remember Lachlan even asking me about it,” he added.
News Limited took an initial 44 per cent stake with an option to acquire a further 10 million shares over the next five years.
Macquarie Bank would remain a shareholder but News would acquire the outstanding amount of Macquarie’s loan facilities. 
The digital website company now has a $9.75 billion market capitalisation. News Limited holds 61 percent.
The Domain website at John Fairfax &amp; Sons was launched in October 1999, four years behind realestate.com.au.
In May 2001 Red Sheriff, a company which audited website traffic statistics, revealed realestate.com.au had shot past Fairfax’s domain.com.au with more visitors to its site. 
"Horrifyingly for Fairfax, domain.com.au had fallen to second place," Pam Williams wrote.
"It was a moment in time when the advertising world that had been comprehensively dominated by Fairfax showed its first cracks," she wrote.
Now listed separately, Domain's market cap is $1.9 billion.
 
</div>
</div>
</div>
</div>
</div>
</div>
</body></html>

John McGrath exits REA Group board after 18 year stint

<html><body>
House prices growth in Canberra is expected to top other capital cities between now and 2020, according to property expert John McGrath’s recent article in Switzer.
This growth will be drive by a 16% rise in population growth, continuing high incomes and a shortage of detached housing stock, said McGrath, citing data from economic forecaster BIS Oxford Economics.
Canberra also recorded its highest Winter auction clearance rate since 2009 and the fourth highest clearance on record at 69.2%, according to Domain.  
It was the best performing capital last weekend.
However, the capital’s two-tier marketplace: a rise in detached home prices and stagnation in apartment prices, is highlighted by the recent McGrath Report 2018 which says the national oversupply of apartments will see Canberra become one of only two capital cities with any apartment price growth by 2020.
<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/2017/12/15/capitals.jpg" alt="">
Median house prices in Canberra grew a solid 6.6% to $650,000 over the year to June 2017, according to CoreLogic, meanwhile apartment price growth was sluggish at just 2.9% to a median $442,500.  
 “Restricted house stock is attributable to a decline in new construction and the ongoing impact of more than 1,000 asbestos affected ‘Mr Fluffy’ blocks being removed from the market under compulsory acquisition by the ACT Government in 2014,” says McGrath in Switzer.
So far, only 400 remediated blocks have been released back into the market.
“Lack of stock is also contributing to a projected pick up in the renovations sector after a contraction of 6.1% in FY17. A lack of choice in the marketplace is driving some home buyers to stay put and renovate instead, with the Housing Industry Association forecasting renovations activity to increase by 5.1% during 2017-18.”   
Apartments and other non-detached housing make up 80% of dwelling approvals in Canberra, according to the HIA, while real estate firm JLL estimates a pipeline of 7,000 new apartments for the city by 2021.  
The apartment market is already in oversupply but a low vacancy rate of 1.7%, coupled with strong yields, is keeping apartment prices in slightly positive growth territory, he adds. 
Canberra’s median rent of $420 per week and median yield of 4.9% is expected to continue rising in the short term due to population growth, low numbers of first home buyers and an underlying shortage of rental accommodation.  
Population grew 11% in the ACT between 2011-2016, the largest of all states and territories and equivalent to more than 40,000 new residents, according to the Australian Bureau of Statistics (ABS).
 The ACT government expects further strong population growth of 6% in Canberra by 2020. About 60% of this growth will be driven by natural increase (births minus deaths) and around 40% through net overseas and interstate migration.    This growth is being supported by major new public projects like the $700 million citywide light rail network, with the first stage connecting the CBD and Gungahlin next year; and a revitalisation of the city precinct.
A big ticket housing project for 2017-18 will be the replacement of the Red Hill public housing units in the prized inner south. The new residential development will include 108 single dwelling sites, four multi-unit sites and six green spaces. Another 92 townhouses and apartments are planned for three blocks in Holder, Chapman and Wright.  
 With its selection of art galleries and vibrant restaurant scene, Canberra is shedding its stuffy reputation and becoming an attractive lifestyle and cultural destination, says McGrath, predicting better times ahead for the capital city.
 
</body></html>

jonathanchancellor-7SQnKwU6yx

Undersupply of houses, population growth to drive Canberra prices: John McGrath  

<html><body>
Guest Observer
Sydney and Melbourne have recorded phenomenal price growth over the past five years, with house prices rising 66.9 percent and 39.8 percent respectively since the growth cycle commenced in mid-2012.
The median house price in Sydney is now $960,000, representing a capital gain of $385,000 in just five years. The median house price in Melbourne is $675,000, with the boom putting on average about $192,500 of new equity into the pockets of home owners.
A strong economy, population growth, new infrastructure, a chronic shortage of housing, a spike in investor activity and interest rates falling to record lows have all contributed to this surge in property values.
Some suburbs have fared better than others, with local factors substantially propelling prices forward in parallel with citywide trends that caused a frenzy of buying in our two big capitals.
Figures compiled by CoreLogic have identified the Sydney and Melbourne suburbs with the strongest house price growth in the five years to June 2017. 
The biggest boom winners in Sydney were Bringelly (170.1% growth) and Kemps Creek (166%) in the west and Clareville (125%) on the northern beaches. 
Melbourne’s biggest boom winners were Huntingdale (103% growth), Ashwood (91.2%) and Ashburton (90.6%) in the south east.
In Bringelly and Kemps Creek, land sales have been the key drivers of house price growth. While the two precincts are still largely farming areas, rezoning is expected to change the face of these neighbourhoods in the years to come. Zoning for Bringelly is currently mixed while the majority of Kemps Creek will be industrial to service the new Western Sydney Airport.
The airport is already bringing jobs and businesses to the area, with initial roadworks underway generating about 4,000 jobs. The Federal Government plans to have the airport operational by 2026 with close to 9,000 jobs in place by the early 2030s.
Over on Sydney’s Northern Beaches, the affluent beachside suburb of Clareville has seen prices surge over the past five years, with an increase in the number of $4M+ sales over the past 12 months largely behind its incredible growth.
While the precinct has always been desirable to buyers, its recovery post-GFC was slower than other prestige areas. Buyers have since come to recognise the disparity in value between Clareville and the premium suburbs of the lower north shore, upper north shore and eastern suburbs, which has also been a significant factor fuelling increased demand in recent years.
The Clareville market has been driven by downsizers, local families upgrading and buyers seeking a holiday home. The appeal of a relaxed beachside lifestyle within an hour of the CBD has made it a sought-after seachange destination.
The suburb has also benefited from new restaurants, the new Avalon Beach Surf Club and the promise of better transportation to the city with the new B-Line bus service.
In Melbourne’s south east, the ripple e ect has sent prices soaring in our top three suburbs.
In Huntingdale, the small yet attractive enclave is tightly held with just 19 house sales in FY17 out of only 469 houses in total. Home to just 1,900 residents, its collection of about 20 streets is attracting buyers priced out of nearby Oakleigh, Carnegie, Murrumbeena and Hughesdale.
Among its amenities is Huntingdale Primary School – one of just 12 bilingual schools in Victoria, and the internationally recognised ‘Home of the Australian Masters’, Huntingdale Golf Club, both located just across the border in Oakleigh South. Huntingdale also has its own train station.
<div class="page" title="Page 7">
<div class="layoutArea">
<div class="column">
<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/2017/10/30/Winners.jpg" alt="">
<div class="page" title="Page 8">
<div class="section">
<div class="layoutArea">
<div class="column">
Just 5km away, neighbouring Ashwood and Ashburton were once considered hidden gems but are now in high demand from buyers priced out of Camberwell, Malvern and Mount Waverley. These two leafy suburbs offer an abundance of green space and their large blocks are popular with families. Ashburton has seen an increase in new builds as home owners knock down existing properties to create modern family homes.
 Both suburbs offer good public transport links and easy access to the Monash Freeway, with nearby Chadstone shopping centre and Monash and Deakin universities also major drawcards.
</div>
</div>
<div class="layoutArea">
<div class="column">
After a five year upwards trajectory, we are now seeing affordability constraints and tighter lending conditions softening demand in both the Sydney and Melbourne markets.
 Affordability is always a factor at the end of booms. The market cycle eventually reaches a critical price point where buyers begin to exit the marketplace. Some owner occupier buyers renovate instead of trading up while others leave the city altogether. Investor buyers begin to lose interest as capital growth prospects wane and yields become too small to service the loan. New restrictions on lending to investors have been a major factor reducing demand as well. Typical post-boom market trends we expect to see over the next year include an increase in stock, as more vendors come to market with hopes of achieving a final boom price and thousands of new apartments are completed following the construction boom. 
Apart from first home buyers, we will see a gradual reduction in demand as investors exit and owner occupiers struggle with affordability. The buyers remaining in the market will be choosier given improved supply, leading to an increase in average days on market.
 Auction clearance rates will fall back to the more normal rate of sale around 60%. After several months of post-boom activity, vendor discounting will increase as sellers finally adjust their expectations and accept that boom level prices are no longer achievable. Price growth will continue – albeit at a slower pace, particularly in Sydney and Melbourne’s best suburbs. The citywide medians will rise and fall over many months as the market rebalances. Overall, there is a possibility of a minor price correction and this would be healthy for the long term sustainability of our major city markets following such a prolonged period of rapid growth. 
</div>
</div>
</div>
</div>
John McGrath is the founder of the national agency, McGrath Estate Agents <a href="https://www.mcgrath.com.au/mcgrath-report" target="_blank">with the full report here</a>.
</div>
</div>
</div>
</body></html>

Biggest boom winners and what's the next cycle? John McGrath

<html><body>
McGrath founder and real estate veteran John McGrath has said he was misquoted in a report that the Sydney market was 40% overvalued.
“The Sydney market is most of the way thought its sales cycle and very near the top of its cycle.
"My view is there is no bubble, and no chance of a 40% correction,” clarified McGrath. 
He had been misquoted saying he thought the Sydney market was 40 per cent overvalued, comments first published by Mortgage Business website, repeated on the Smart Property Investment site and then picked up by Business Insider, prompting a denial by John McGrath.
At the same time - and in the same article - he'd advised he thought there might be a  “small correction while the market catches its breath.”
The real estate expert had been attending the mortgage broker AussieThink conference on Monday on the Gold Coast where he sat on a panel with Aussie John Symond and banker Ian Narev, hosted by 2GB's Ross Greenwood.
He noted that there are “two housing markets” in Australia, and according to him the one that incorporated the two major cities of Sydney and Melbourne was at the end of its cycle.
“There are two markets in Australia, the Sydney/Melbourne market being one and the rest of Australia, and that could be broken into regionals and other capitals. If you look at the last 10 years, we have seen Sydney/Melbourne [prices] have doubled and we’ve seen most of the other capital cities increase by 10–20 per cent, so it really is a big separation of the two markets,” McGrath was quoted as saying by the Mortgage Business.
The report quoted him as saying that the two cities were “at least 95 per cent through their current cycle”, adding that “it could be 100 per cent in Sydney”.
“I don’t see any material capital growth in the next few years and, equally confidently, I don’t see any material drop either. I’ve been through five cycles and each time the market does see significant growth over a two- to three-year period."
“Yes Sydney is overvalued compared to other areas of Australia, however it is a world class international city and a major financial centre. I’ve long said that South East Queensland is undervalued and shows great growth potential,” said McGrath in a media release clarifying his remarks. 
He said the market had strong drivers including deep demand, population growth, overseas investment and low interest rates but there was a possibility of a small and short correction of a few percent, and “I believe that is healthy for the sustainability of the market”.
His firm's profit fell 42 percent for the year ended June 30 and the company announced a share buyback to support its sliding share price.
The Australian Financial Review's Street Talk column has written private equity firms are "circling" the company.
<div>
It advised Anchorage Capital, Adamantem Capital, Advent Partners and Crescent Capital Partners are among firms reputedly having run the numbers on McGrath.
Street Talk was not suggesting any approach has been made to the board, or that talks are under way ahead of a formal end to an escrow period - for about 46.3 per cent of total issued capital - on September 8. 
</div>
<div>More than half of these shares are held by founder John McGrath, who retains the biggest shareholding with a 27 per cent stake.</div>
<div> </div>
<div>"Once the escrow period ends as much as 20 per cent of the register could change hands, should founding agents and others opt to sell," the AFR suggested.</div>
<div>
McGrath is speculated as potentially proceeding with a privatisation of the the nation's third-largest real estate sale business.
</div>
</body></html>

John Mcgrath

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

John Mcgrath

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

Developments

New apartments

New townhouses

News