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

Sydney Property

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The outgoing RBA Governor Glenn Stevens says the entry hurdles for first home buyers "may be getting worse."
He suggests it was likely parental assistance was "almost the only way" for some to enter Sydney market, in an exclusive interview with The Australian and The Wall Street Journal.
"I think that a lot of people of my generation are actually going to find themselves, if they haven't already, helping their children into the housing market because that may be almost the only way that their children can enter the Sydney market anyway," he said. 
"That, of course, means that for people of my age, that the wealth we think we have in our house, actually, we don't have quite as much as we thought because we're going to have to give some of it to the next generation."
The 58-year old suggests that there are a lot of generational issues in the housing area that need resolving.
"I think that's actually a bigger question than questions like is there a bubble or not, that sort of thing that people tend spend a lot of time be debating.
"That said its hard to be that cohort about trying to enter the market, there's always been a hurdle.
"It may be getting worse, but there's a lot of things happening here, about where we want to live and how far out we want to live," he said.
"There are decision about zoning, transportation, infrastructure, and all those sorts of things that go to make up what's I think a pretty complex problem." 
Stevens suggested that you need to own a home to pass the equity.
"Of course if we come from a rental household ourselves then we're not going to have that equity to pass to the next generation and certain types of disadvantaged therefore are going to be perpetuated into that next generation," he said.
"A bit of food for thought, but I don't have the answers to all these problems," he advised.
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jchancellor-FAypfDUnLy

Glenn Stevens says FHB hurdles maybe getting worse - parents help likely only way to enter Sydney property market

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GUEST OBSERVER
Office metro markets, like CBD markets, are driven by factors which differ from state to state and region to region, so any discussion of a ‘national’ metro market only serves to mask the various drivers of each of these markets. 
There’s no question that long-overdue Infrastructure investment along the eastern seaboard will be the primary driver of growth in metro markets in the coming decade.
According to Colliers Metro Office Research and Forecast Report- first half 2016, over 33 buildings in Sydney’s metro markets will be compulsorily acquired for the Metro Rail, putting downward pressure on vacancies and upward pressure on rents. In fact, many metro markets are now at a tipping point, with the first real opportunity since the GFC to experience significant growth.
But where will the positive effects be most strongly felt?
NSW is where the strength is
At the moment, the NSW state economy is the strongest in the nation, with robust employment growth and a healthy surplus. It is also the hub for infrastructure development, with projects like the Sydney Metro, WestConnex and the Parramatta Light Rail set to come online in the next 10 years.
The most recent state budget revealed a total spend of $68.6 billion over the next four years alone, a very positive scenario for those metro markets in line to receive infrastructure upgrades.
This is because efficient transport links allow for greater connectivity across all metro markets, and in turn, increase the attractiveness of metro accommodation to a broader tenant base.
In further good news, the stock withdrawal story we are seeing in the Sydney CBD market holds true in a number of other NSW metro markets. Colliers reports that between January 2015 and January 2016, metro office stock decreased Australia-wide from 7.34 million sqm to 7.29 million sqm as a result of withdrawal for residential conversion or infrastructure development.
As the same time, we have not seen the same influx of offshore money into these markets as we have in the major CBD office markets. With offshore investors continuing to favour CBDs, investors in metro markets are still predominately domestic. The proportion of domestic investors, compared with international investors is continuing to grow with Colliers reporting that domestic investors made up 55 percent of the acquisitions in 2013, 60 percent in 2014 and 65 percent in 2015.
Centuria’s ASX-listed Metropolitan REIT invests purely in metropolitan office and industrial assets across Sydney, Brisbane, Canberra and Adelaide. These assets have been valued at $396.7 million. Decreasing vacancies and increasing values have seen this fund trading well amongst both institutional and retail investors, highlighting the investor appetite for metro investment.   
Sydney’s north shore metro markets set to shine
In our view, some of the strongest metro markets are to be found on Sydney’s north shore, where the positive combination of residential conversion with acquisitions made for Metro stations will translate into improved vacancy and rental levels in the next few years.  
For example, fifteen commercial properties will be demolished along the north shore, in to make way for the Sydney Metro. At the same time, all new development is focused on residential accommodation, and with no new commercial development slated we expect a further tightening of supply and upward pressure on commercial rents.
As a result of the positive fundamentals, Centuria recently completed the purchase of part of the Zenith office tower in Chatswood, an area which we see as a major beneficiary of the Sydney Metro. Stage 1 from the northwest to Chatswood is scheduled for completion in 2019, and the second stage from Chatswood to the southwest via the CBD will put Chatswood right at the heart of Sydney’s transport network.
The most recent PCA figures show vacancy rates have dropped back to 6.6 percent in Chatswood which is the lowest vacancy rate for many years. We also expect demand to increase further due to the strong transport links already in place in Chatswood and the absence of any significant increase in supply. 
Looking forward, we are confident that Chatswood status as a major commercial and residential hub will be cemented by the benefits of the major infrastructure spend by the NSW State Government. 
Positive fundamentals in the CBD fringe, particularly in the south
Vacancies continue to fall in the city fringe as a result of leasing growth on the back of demand from tenants displaced by withdrawals for infrastructure and residential projects in both the CBD and locally.
The Southern CBD and fringe areas are undergoing a renaissance on the back of proximity to the rapidly growing residential area of South Sydney as well as demand from tenants displaced by the metro line. This area is particularly popular with advertising and media companies, resulting in over 10,000 sqm of demand in the six months to January 2016, according to Colliers. 
In late 2015, in conjunction with Mirvac, we acquired commercial property within the Australian Technology Park south of Sydney. The site is 14 hectares, three kilometres south of the Sydney CBD on the site of a $1 billion development for CBA, which we believe will have wide-ranging positive impacts on the broader Central to Eveleigh corridor.
So what’s the bottom line?  Our house view is that tenant demand for metro locations will continue to strengthen as CBD vacancy rates fall. Withdrawal of A and B grade stock for residential conversion and/or infrastructure development will leave many tenants in this market seeking cost effective solutions in those suburbs with good (and improving) transport links.
This means markets such as Chatswood, and the southern fringe of the CBD are likely to benefit. We have already taken advantage of a number of opportunities with compelling value, such as our purchase, in conjunction with global investment manager BlackRock, of The Zenith in Chatswood.
Ultimately, we remain convinced that the fundamentals of these metro markets in NSW make them ideally suited to providing stable, high yields and potential for capital growth that our investors have come to expect.
 Jason Huljich is chief executive officer, Unlisted Property Funds for <a href="https://centuria.com.au" target="_blank">Centuria</a>.
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NSW office metro markets set to shine

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What can you get for $500,000 in Sydney when the median dwelling price is at $782,000 (CoreLogic, May 2016) with a 13.1 percent positive increase in year on year values?
According to property valuation firm Herron Todd White’s residential market report for July, if you have an open mind and are willing to compromise on at least one of the factors of floor space, distance to CBD or age of improvements, there are options throughout the greater metropolitan area. 
North Sydney 
In the northern suburbs of Sydney, $500,000 doesn’t buy you much at all. With that threshold limit, compared with the CoreLogic unit median price of $662,000, you have the options of a semi-modern one-bedroom unit with one car space in Waitara, a 1970s one-bedroom unit with one car space in Lane Cove, or if there is some stretch available, a smaller semi modern studio in St Leonards without a car space. Further up towards the beaches you can still only just get a 1-bedroom unit but the closer you get to the city, the more likely you’ll have to contend with an older complex, dated inclusions, main road frontage and no car parking. 
This price bracket is generally made up of investors and first home buyers, both of which are sensitive to price and interest rate movements. The current cash rate as at June on hold at 1.75% may impact the market but we believe current regulations on investment loans will play a larger role in how this market performs overall.
As an illustration, Property Observer found a one-bedroom unit at <a href="https://www.realestate.com.au/property-apartment-nsw-waitara-121952018" target="_blank">2402/32 Orara Street Waitara NSW 2077</a> that sold for $490,000.
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prateek24-ezbwHMbNAk

For $500,000, you can still buy a one-bedroom unit in northern Sydney: HTW 

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Aqualand has emerged as the buyer of a heritage site at Sydney’s Millers Point near the $6 billion Barangaroo redevelopment.
Backed by Shanghai-based Shenglong Group, Aqualand is taking a long-term view on the Australian market after acquisitions over the past two years that takes its pipeline to well over $1 billion, The Australian noted.
Aqualand paid $40 million for the 1-3 Munn Street site, a boutique five-storey commercial office building, sold by Primary Health Care.
The Chinese residential developer has also snapped up a 13,215sq m office and warehouse property in Macquarie Park in Sydney's north shore for $54 million.
With plans to hold the property for rental income, the B7 Business Park property will net Aqualand $3.1 million annually.
Real estate investment house Altis Property Partners sold the property through Colliers International's Roger Miller, Gavin Bishop and Jon Chomley.
<div>
On another front Aqualand has been given the nod to convert the office tower at 168 Walker Street, North Sydney into 415 luxury apartments.
The 7435sq m site at the corner of McLaren and Walker streets will be developed into four residential towers ranging from 22 to 28 storeys to a design by architect Woods Bagot.
Aqualand is currently completing the REVY apartment project in Pyrmont.
It also settled on a residential development site in the upper northern Sydney suburb of Turramurra for $15 million.
</div>
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Aqualand expands Sydney property projects again 

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Bell Potter have retained its buy recommendation on its recent sponsored float, McGrath Estate Agents, but now suggest $1.50 is the 12 month price target for the stock that was trading at sub $1 in trade for almost of Tuesday. In Wednesday trade it has been bought at between 99 cents and $1.02.
The prior stock price target suggested only mid-last week by Bell Potter was $2.25, which would have seen it trade at above its December 2015 IPO price at $2.10.
<a href="/images/2016/04/19/Screen%20Shot%202016-04-19%20at%203.31.25%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/04/19/Screen%20Shot%202016-04-19%20at%203.31.25%20PM.png" alt="">
However yesterday McGrath (MEA) downgraded its forecasts on the back of weaker than expected market conditions and now expects EBITDA to be $4-5m lower than the prospectus forecast.
"The downgrade is disappointing given the company was tracking to budget for the first nine months of FY16 and more so given it was largely attributed to the recently acquired Smollen Group," Bell Potter noted.
Bell Potter have downgraded its EPS forecasts in FY16, FY17 and FY18 by 15 percent, 25 percent and 24 percent respectively.
"Our revised FY16 EBITDA forecast of $26.5m is within the guidance range of $26-27m.
"Given the severity of the 4Q slowdown our earnings downgrades are higher in FY17 and FY18.
<a href="/images/2016/04/19/Screen%20Shot%202016-04-19%20at%203.31.33%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/04/19/Screen%20Shot%202016-04-19%20at%203.31.33%20PM.png" alt="">
 
"We now expect FY16 revenue of $137m compared to the revised guidance range of $136-140m, and EBITDA of $26.5m compare to revised guidance of $26-27m.
"We have updated each valuation we use in the determination of our price target for the earnings changes as well as market movements and the time creep.
"We have also increased the discount we apply in the relative valuations from 7.5% to 20% and the beta we apply in the WACC calculation used in the DCF from 1.35 to 1.60.
"The net result is a 33% reduction in our price target from $2.25 to $1.50.
"We retain our BUY recommendation given a 12 month total return of greater than 15%," the stockbroker told clients today.
<div>
JP Morgan has also slashed its year-end McGrath share price expectations from $2.20 to $1.60.
The investment bank and broking house Bell Potter were joint lead managers and underwriters on the December McGrath float. 
JP Morgan's new target price revalues the company at $215 million, 24 per cent lower than its $282 million December prospectus, which priced shares at $2.10. 
</div>
<div>Shares in McGrath rallied on Tuesday, closing up 9.4 per cent at 99¢.</div>
<div> </div>
<div>The JP Morgan note was sub-headlined "Smollen Group sales drag down prospectus" a reference to McGrath agreeing to pay to acquire the 10 Smollen Sydney franchise offices, though some of the cash component – about $2.63 million in 2016 – can be clawed back due to under-performance.</div>
 
<a href="/images/2016/04/19/Screen%20Shot%202016-04-19%20at%203.35.12%20PM.png" target="_blank">Click to enlarge</a>
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McGrath Estate Agents is still a buy: Bell Potter

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The listed real estate group McGrath has lowered its targeted dividend from 4.5 cents per share to 3 to 3.5 cents per share following a revision to forecast volumes and sales especially in the Sydney residential real estate market.
The agency resumed trading on the ASX at 88 cents Monday morning after pointing out increased property market volatility. The shares have traded at between 85 and 99 cents in morning trade.
Some 2.1 million shares were traded in morning trade, representing the busiest trading since the opening two days last December.
The drop-off has led to a downward revision in revenue forecasts of between $4-5 million, and the profit downgrade.
Postponed project launches by its project division was one of the reason for the revenue decline, with $500,000 coming off its revenues.
McGrath is now expecting north and north-west Sydney listings to be 25-30 per cent lower than prospectus forecasts, largely due to a drop off in the number of Chinese buyers in north-west Sydney.
There was also lost revenue because of delays implementing new IT software, would hit earnings by $500,000.
It  said there would be a continued reduction in Chinese buyer activity in the north western Sydney region.
It expected a 25 per cent to 30 per cent decline in listings in western Sydney compared to what its prospectus forecasts were.
These north western and western factors would hit earnings in the order of $3 million to $4 million.
The shares last traded at $1.30 before entering the trading halt.
"As flagged at the end of the half year, current conditions remain challenging in certain market segments and with listings and sales volumes not expected to materially change in the near term, McGrath has accordingly adjusted its expectations for sales volumes and values for the last quarter of 2016 financial year," the statement said.
"On the basis of the current quarter's listings trend (assuming there is no improvement in listings volumes) and current market conditions, McGrath expects to generate 2016 revenue in the range of $136 million to $140 million, and pro forma EBITDA in the range of $26 million to $27 million," the company said in a statement to the ASX.
The company, whose major shareholders include John McGrath and Perpetual, floated at $2.10 but has never exceeded that price. It last traded at $1.30 on Thursday.  
McGrath's board has determined that it will increase the target payout ratio to 75 per cent of net profit after tax for the fiscal 2016 year.
"This will decrease the target dividend from approximately 4.5 cents per share to 3‐3.5 cents per share for the period."
The main area of concern is revenue from company owned offices acquired before the float from the Smollen Group with its revenue 10 per cent below budget.
However the McGrath update noted that in its prospectus, the acquisition of the Smollen Group was structured so that some of the deferred consideration would not be paid if the business did not meet growth targets set at the time of acquisition. 
"Given the performance of this business as outlined above, the at risk component for 2016 of $2.625 million is therefore unlikely to be paid."
McGrath was floated by Bell Potter and JP Morgan. 
“While current industry volatility makes it challenging to forecast FY17, the long term fundamentals of the real estate industry remain attractive, underpinned by historically low interest rates and population growth,” McGrath says. 
McGrath floated in December raising $129.6 million with no debt.
The prospectus, issued in November, did warned house price growth could slow due to an expected plateau in house sales.
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Slowing apartment project sales to blame as McGrath resumes trading at 88 cents

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Property prices in Sydney are reaching their peak and sales activity in the city will drop by around 15% over the next year or two, Mirvac Group’s chief executive Susan Lloyd-Hurwitz has forecast.
Lloyd-Hurwitz made the predictions in announcing the group’s 2015 financial results, which included a record $2 billion worth of residential pre-sales, up 67% on the previous fiscal year.
“It does seem that the Sydney market is close to the point at which the strong upwards trajectory will end … We expect price growth to moderate away from the high double digit growth rate that it has been experiencing,” Lloyd-Hurwitz said.
Strong underlying demand for homes in Sydney was expected to prevent price falls. 
Lloyd-Hurwitz said the mix of buyers would more likely shift in favour of owner occupiers, away from investors who have recently been dominating the market.
Investors now account for about 40% of Mirvac’s residential sales, while owner occupiers and first home buyers made up 30% each. In the 2014 financial year, only 20% of the group’s sales were to first home buyers.
The group – which owns retail, office and industrial assets in addition to its residential development business – reported a statutory profit after tax of $609.9 million, up 36%.
Its financial results were at the top end of its guidance range, with an after-tax operating profit of $454.8 million, representing 12.3 cents per stapled security. It paid out distributions of 9.4 cents per stapled security.
Mirvac is in discussions to buy the $9 billion Investa office operation from Morgan Stanley Real Estate Investing. Lloyd-Hurwitz could not comment further on the deal aside from to say it was “a highly strategic opportunity” that was “uncertain and incomplete”.
The group forecast earnings per share for fiscal 2016 would be between 12.7 and 13 cents per stapled security and distributions would be from 9.7 to 9.9 cents per stapled security.
What Mirvac Group chief executive Susan Lloyd-Hurwitz said about other markets around the country:
<ul>
<li>“Conditions in the residential market are quite variable across the country.”</li>
<li>“In Melbourne, strong population growth will continue to support the demand with the deepest demand in the middle and outer rings.”</li>
<li>“In Brisbane, demand is steady with relatively attractive investment yields which is seeing Sydney-based investors investing into Brisbane. There hasn’t been a lot of supply in the land business so we’re seeing moderate price growth there.”</li>
<li>“In Perth, subdued economic conditions are certainly impacting the market. The affordable end of the market is supported by policy incentives.”</li>
</ul>
 
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