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GUEST OBSERVATION
As we enter the traditionally busy spring season of real estate, it’s a good time to discuss a few themes that have been the point of much discussion around Australia’s coffee tables, in dining rooms and in waiting rooms.
Some of these topics have preoccupied the industry for many years and are only just now being exposed to discussion in the mainstream media, others have been born out of controversial moves by some players in the industry.
<img src="/images/2014/07/04/yellow-one.jpg" alt="" style="float: left;">NEGATIVE GEARING
There has been some recent discussion around grandfathering negative gearing out by limiting it to newly-constructed properties. While this might have the effect of stimulating the construction industry, I believe it could very heavily impact people who already own investment properties.
By removing the tax breaks which negative gearing provides to investors on their existing properties, the ability of investors to sell these properties may be affected, as investors preference switches to new developments. Aside from the obvious implications for these investors who own established properties, it could also reduce the supply of rental properties on the market and increase rents.  
<img src="/images/2014/07/04/yellow-two.jpg" alt="" style="float: left;">THE ROLE OF AN AGENT IN A DIGITAL WORLD
The ease-of-access to online property listing portals has led some commentators to suggest that the era of the real estate agent may soon draw to a close, replaced by vendors personally listing their properties.
Though listings portals are an essential tool for vendors wishing to access a large pool of potential buyers, I believe there will always be a need for human interaction in the sales process. Someone will always need to physically show the property to the buyer, negotiate a selling price and deal with the myriad of minor details that accompany the process.
One reason that transacting property can be a challenge is due to the emotion vendors often bring to the process. The use of a third party helps to overcome this challenge, by placing an individual with experience in these transactions to act as a go-between without being emotionally invested in the process.
In addition to managing advertising and preparing your home for sale, a knowledgeable and experienced real estate agent will screen potential buyers to ensure they are in a good position to buy, take care of open for inspections, and ensure they negotiate a fair price for your property.
In many situations, vendors meeting the buyer can jeopardise the negotiation process as they may be emotionally manipulated into offering a lower (or higher) price due to this new relationship.
As a real estate agent with over four decades of experience in the industry, even I will always rely on the services of another real estate practitioner to market, negotiate and handle the sale of my properties. This is an approach that is commonplace throughout our industry.
I encourage vendors who are considering listing their home without the assistance of a real estate agent to consider whether they will feel truly comfortable dealing directly with buyers.
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<img src="/images/2014/07/04/yellow-three.jpg" alt="" style="float: left;">VENDOR BIDS
The use of vendor bids has traditionally served to encourage increased bidding in a sluggish auction where bidding has not yet surpassed the reserve. Vendor bids can be placed at the beginning, middle or end of an auction, with the auctioneer normally announcing the vendor bid on behalf of the vendor.
While this might be one strategy which adds some energy to an otherwise lacklustre auction, I believe that if you invest in a strong marketing campaign and an experienced agent, there should be enough interest in the property that you shouldn’t have to use this strategy.
A vendor’s bid can also send a mixed message to sellers, especially if it is placed after other competitive bidders have placed bids. In these situations, it may be more effective to consider letting the property pass in at auction and negotiating after the auction has concluded.
<img src="/images/2014/07/04/yellow-four.jpg" alt="" style="float: left;">AN EXPERIENCE GAME
When the property market enjoys a period of uninterrupted growth, there tends to be an increased level of interest in property as a career path. This has been evident recently, with 50 new real estate agents being licensed in New South Wales weekly.
I encourage those looking to list this spring to ensure that they’re choosing an experienced agent, or an agent who is able to draw upon the wisdom of other experienced real estate practitioners for advice. One other simple but effective way to distinguish between agents is by asking them a simple question – what do they think of a property boom?
Inexperienced agents, who entered the market during a period of heightened activity will likely profess to love a boom, as it makes their job easier. More experienced agents will inform you that a boom is counter-productive, as the best state for the market to be in is a period of uninterrupted, sustainable growth.
The past few years have seen interest rates at unprecedented lows, a surge of interest in property as an asset class and property values increasing steadily. For those Australians seeking to enter the market this spring, I encourage you to take the time to build your own market intelligence and spend time with property professionals who will be able to assist you in making the right purchase.
For those selling property this spring, I wish you all the best. I also recommend you ensure to have adequate time to invest in selecting the right agent, presenting your property in the best light possible and working closely with your agent to ensure you get the best result possible. 
Charles Tarbey is chairman and owner of <a href="https://www.century21.com.au/" target="_blank">Century 21 Australasia</a>.
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Four hot topics in the real estate industry

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There’s been a significant amount of discussion recently about the pros and cons of purchasing small, one bedroom apartments as an investment.
This discussion is interesting, because a long time ago, you wouldn’t even consider buying a one bedroom apartment – they just weren’t appropriate properties for most people.
Now, as the market suffers from a shortage of medium density development, banks have changed their rules a little and will lend for these types of purchases. Banks still hesitate to lend for some of these smaller properties, which is a similar issue that buyers of discretionary lifestyle properties can run into.
Banks are cautious about these types of dwellings as there will almost always be a minimal number of purchasers interested in purchasing them.
It’s for this reason that I believe you should buy at the top end of the first home buyers market and the bottom end of the second home buyers market.
This is because by purchasing a mid-range property, you’ve got multiple layers of buyers who could buy the property when you choose to sell.
Another ongoing discussion which I’ve been observing and participating in is that of the decision to buy a holiday home – whether as a lifestyle property or as a dual-purpose lifestyle and investment purchase.
When considering purchasing a holiday home, it’s important to remember that holiday homes are a discretionary spending area that is hardest hit following instability in the economy and a drop in property values. This is because when faced with the choice of selling their holiday house or selling the family home most people will try to sell the holiday house.
When they do list, they’ll then find themselves in a highly competitive market, competing against many similar properties that have been listed by owners with similar reasons for selling.
This is why I caution holiday home investors carefully budget for their purchase – especially if its viability is going to rely on expected rental income from leasing the property. Any expected rental returns in this instance can be diminished by many factors you can’t control such as the weather, a general down turn in the economy or a natural disaster striking the surrounding area.
It is for this reason that I believe people relying on a rental income stream from their holiday home should maintain a sizeable cash buffer to protect against unforseen events.
 
 
 
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Choosing the right investment property

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GUEST OBSERVATION
Infrastructure has an incredible impact on property prices.
Take for example, the M7 motorway in Sydney.
There are now some fantastic areas that you can get to quickly on the M7, meaning people can buy a brand new or high quality home in an area with very easy access to all the necessary amenities.
As a result of this infrastructure being built, many people who would have previously described these areas as too remote or hard to get to are now considering them to be desirable locations to live.
It’s important not to forget that both new and established infrastructure has an impact upon property prices.
While there’s been a lot of speculation in the media about the impact of major infrastructure projects in capital cities such as Melbourne and Sydney, many other regions in Australia already have infrastructure in place to rival that planned by these respective state governments.
In my experience, many speculators miss out on capital growth as they’re effectively placing a bet that planned infrastructure will cause a short-term price movement.
The reality is that infrastructure is often the first step in the gentrification of an area and the resulting price movement in the suburb may take months or even years to be fully felt.
Regardless of your intentions when entering the property market, I believe every buyer should be focused on the long-term capital growth they’re able to achieve from their property purchase.
Too often I see short-term speculators abandoning a purchase which is likely to experience strong growth over the next ten years, because the price dropped slightly over the past two months.
Charles Tarbey is chairman and owner of <a href="https://www.century21.com.au/" target="_blank">Century 21 Australasia</a>.
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The impact of infrastructure: Property investing isn't a short-term bet

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GUEST OBSERVATION
In its September meeting, the Reserve Bank decided to leave interest rates on hold at 2.5%. I believe this is positive news for Australians seeking to purchase their first home, as a low interest rate environment lowers the cost of financing this purchase.
In other good news for first home buyers, recently the HIA-CBA Housing Affordability Index posted its most favourable result in 12 years. 
In combination, these factors are likely to motivate any first home buyers who may have been sitting on the fence to enter the market and start looking for a suitable property to purchase.
I also encourage all property owners to take advantage of the borrowing environment at present, as any loan containing an interest rate with the number four or five in front of it should help a buyer over the next five to six years. It's also wise for property owners to <a href="/expert-insights/finance/unprecedented-low-interest-rates-wont-last-forever">budget for the possibility of any future rate movements in advance</a>, so that they’re adequately prepared for movements if and when they occur.
Additionally, recent price movement is also a positive indicator for the Australian property market, as value growth has started to slow after a period which saw rapid and sustained value growth across many of our capital cities.
Importantly, conditions have shifted from a sellers' market, where buyers have been willing to meet the high expectations of sellers, to a negotiators' market wherein real estate agents may need to seek to negotiate a lower price with vendors in order to close sales.
Banks and valuers are also starting to become more conservative after last year's strong house price growth, acting as two more mechanisms which will help to ensure future price growth in the property market is steady and sustainable.
Overall, I believe that the outlook for the property market continues to be positive and should present many opportunities for buyers and sellers in the Australian property market.
Charles Tarbey is chairman and owner of <a href="https://www.century21.com.au/" target="_blank">Century 21 Australasia</a>.
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Low interest rates are good news for first home buyers

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GUEST OBSERVATION
Over the past year, the Reserve Bank has elected to hold interest rates at an unprecedented low level a level which I’ve never seen during my 42 years practicing real estate.
This has had a marked impact in the property market as historically, continuous periods of low interest rates tend to drive interest in property as an asset class. This is an effect we’ve observed over the past two and a bit years and a contributing factor to the property markets sustained recovery, with the market achieving 15.5% growth since the trough in May 2012.
The Australian property is now entering a very steady adjustment and growth mode driven by the shift to a market where buyers and sellers negotiate a fair price for a property – not one driven by vendor’s expectations.
Despite this, <a href="/expert-insights/buying/moody-s-says-property-market-may-be-overheating-and-could-face-a-correction">Moody’s recently warned of a growing risk</a> of an overheated Australian property market developing into a real estate bubble, driven by low interest rates and growing interest from offshore investors.
My reaction to this is simple: If the Reserve Bank suddenly raises interest rates suddenly and steeply, it will almost certainly look like we’re in a ‘bubble’.
Similarly, if the world was to experience another global financial crisis, it’s likely that many property markets across the world will look overvalued.
At times such as this, it’s important to remember that in the right situation, almost anything could be deemed in a bubble, but it’s currently unlikely that either of these scenarios will eventuate and push the Australian property market in to bubble territory.
However, I would caution investors, home owners and prospective buyers to budget for the effect any interest rate movements could have on their finance. This is because while interest rates are currently steady at 2.5%, it’s unlikely they’ll stay this low forever.
Buyers who fail to budget for the impact of any potential interest rate increases may find themselves in financial difficulty should the Reserve Bank’s next interest rate movement be upwards.
Charles Tarbey is chairman and owner of <a href="https://www.century21.com.au/" target="_blank">Century 21 Australasia</a>.
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Unprecedented low interest rates won't last forever

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GUEST OBSERVATION
The last few years have seen a move away from an Australian property market determined by seasonality, to one driven by consistently high levels of demand from buyers. To most observers, the seasons of real estate all but disappeared.
However the market has recently demonstrated a return to seasonal buying behaviour, with activity dropping off over the winter months and listing activity starting to pick up before spring. This is good news for the Australian property market as we enter into the traditionally busy spring selling season, with national clearance rates now holding steady at 68%.
The Reserve Bank has also kept rates on hold at 2.5% for the twelfth consecutive month leading into spring, making it the longest period without a rate movement since 2006. This has led to some commentators expressing concern that property owners will be adversely affected should the Reserve Bank decide to lift rates upwards.
However, the buying public has been hearing a variety of messages for quite some time now which suggest that they should prepare themselves for an interest rate rise in the not too distant future. 
As a result, buyers are aware that interest rates have been held at low levels for an unprecedented period and have likely responded by budgeting against any adverse effects from future interest rate fluctuations. For those who haven’t, I would suggest speaking with a professional about budgeting for such a possibility.
Finally, the jobless rate recently reached 6.4%, sparking concern for the state of the economy as a whole. However, while many people may be understandably concerned, the unemployment rate across the country is low in comparison to other world marketplaces which are still in growth mode.
I don’t believe the Australian property market will be affected by the unemployment rate at this stage, which is likely to continue to experience modest growth through to the end of the year. However, it is worth noting that a rising unemployment rate may influence the Reserve Bank’s thinking on future interest rate decisions.
All things considered, I believe we can look forward to a busy and productive spring selling season.
Charles Tarbey is the chairman and owner of <a href="https://www.century21.com.au/" target="_blank">Century 21 Australasia</a>, one of Australasia’s largest and most diverse property groups.  
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Despite some economic uncertainty, we can look forward to a busy spring

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When you are thinking about selling a property, securing the best real estate agent is a vital consideration – agent choice is often the key difference between a great or mediocre result. So how can you ensure that you not only pick the right agent, but also get the most out of their services?  
Here are my top tips for selecting, and maximising the value of, a real estate agent.    
<ul>
<li>Don’t go with the cheapest agent</li>
</ul>
It is critical that you don’t make finding the cheapest agent, or the agent that offers you the least amount of advertising, your first priority. Why? Because if an agent can’t negotiate an effective fee for service with you, it’s unlikely they’ll be able to negotiate an effective sale price for your property.  
<ul>
<li>Find a performance-based agent</li>
</ul>
There is a tendency to believe that agents with many ‘for sale’ signs are the most effective and capable of selling property. However, in this particular context, when perception meets reality, reality often comes off second best. 
The reason for this is that ‘for sale’ signs are predominantly an indicator of an agent’s activity, not their results – an agent may have a large amount of listings, but they might not actually be selling anything.  
Try to keep in mind that a ‘for sale’ sign is initially a sign of success, but after four weeks, it becomes a sign of an agent’s failure to get the job done.  
I would recommend searching for agents that have the most ‘sold’ signs in your area, as these agents will most likely be performance-based as opposed to activity-based.  
Once you’ve identified an agent with a large number of ‘sold’ signs, you may want to consider knocking on the front doors of some their sold properties to ask the owner-occupiers how the selling process went. Doing so will allow you to gain some first-hand insights into the agent’s previous performance, which may help you to decide whether or not the agent is right for you.    
<ul>
<li>
Find an agent that treats you like their only client  
</li>
</ul>
It is reasonable to expect that your agent will meet with you on a weekly basis to give updates on all developments relating to your property’s sale – not just in person, but in writing as well.  
Remember – if it’s not in writing, it didn’t happen, so make sure that your agent commits up-front to giving you regular written updates.  
If your agent is prepared to document updates, it will not only show that they are serious about the transaction, it will also give you a tangible reference point to make them accountable should they fail to deliver on their undertakings.  
As an extension of this point, I would advise to look for an agent that speaks to you only about your property, and not about how busy they are with everybody else’s. It is relatively safe to assume that if an agent doesn’t give your property adequate attention in your presence, they’ll struggle to do so when you’re not around – so aim to find an agent that treats you like their only client.  
This article continues on the next page. Please click below.
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<li>Build an open and honest relationship with your agent</li>
</ul>
Building an open and honest relationship with your agent is one of the best things you can do in terms of ensuring that the agent’s advice is aligned with your best interests.  
Real estate practitioners are generally very sociable people who want to achieve the best possible outcomes for their clients. The best agents, however, are the ones that give honest and open advice – even when their clients don’t necessarily want to hear it.  
Of course, as a vendor, you want to achieve the best sale price for your property with the minimum outlay possible. However, the worst thing you can do is make your agent feel uncomfortable about managing your price expectations or giving you bad news.  
Your agent needs to feel at liberty to give you honest and accurate information on buyer feedback, market conditions and the like so that you can make a fully informed decision about when to sell, and at what price.    
<ul>
<li>Be flexible with your marketing</li>
</ul>
There are usually two reasons as to why a property doesn’t sell – either the vendor’s price expectations are too high or the marketing of the property is poor. If you agree to and sign off on a marketing strategy with your selling agent, it is important to hold the agent to delivering that strategy in full.  
In saying that, it is also important to be flexible with your marketing and to adjust your strategy if need be.  
In order to know when flexibility is required, you will need to be able to properly assess whether or not your existing strategy is working. As such, you should aim to meet with your agent during the first one to two weeks of open for inspections to discuss buyer feedback and interest in the property.  
If buyer feedback is poor and interest is low, the agent may recommend that you increase your marketing budget. Though this may not be what you originally agreed upon, I would suggest being open to increasing your marketing spend if your original strategy has proven ineffective. Doing so will likely increase your chances of not only selling, but achieving a strong sale price.  
Charles Tarbey is the chairman and owner of <a href="https://www.century21.com.au/" target="_blank">Century 21 Australasia</a>, one of Australasia’s largest and most diverse property groups.  
Charles has been actively involved in the property industry since 1972, and has trained and given advice to thousands of real estate agents, vendors and purchasers. He is also the author of two real estate books, Profit Driven Real Estate and Listing Rich.
This article first appeared on Property Observer in September 2013.
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Five tips to get the most out of your real estate agent

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GUEST OBSERVATION
These days everyone has an opinion on the state of the Australian property market – and the louder and more panic-inducing, the more attention their comments are likely to receive.
In early 2012, those already invested in the Australian property market may have been made to feel slightly uneasy by commentary predicting prices would fall by up to 60% in 2013. Individuals focusing on other investment markets may have breathed a sigh of relief, happy to now wait until the decline had passed before entering the market at a better time.
As we now know, 2013 actually saw a strong recovery in the Australian property market, with values finishing the calendar year 9.8% higher and property values in Australia currently sitting 16.1% higher than the start of the current growth cycle which started in June 2012.
The important thing to remember is that if you predict a market collapse every single year, one year you are bound to be right. This can encourage people to continually try to predict movements in markets they may not have relevant insight into; to one day be able to say ‘I told you so’.
Another thing to consider is the context and timing of when data appears and to remember that data is often historical and doesn’t necessarily represent a picture of where the market will go.
This is not at all to say that informative websites such as the Australian Bureau of Statistics or RP Data are providing incorrect statistics. These sites are hugely useful and credible resources for looking at pricing information and property trends, which might then be used in guiding more informed purchasing and selling decisions.
Another limitation of the data is that it is affected by a range of operational factors in addition to the movement of the market. For example, Christmas is a period of downtime for many Australian businesses – and the analytics industry is not immune to this. This is why traditionally the January/February periods often records low levels of activity, while March can appear to experience a slight uptick. Such fluctuations are not necessarily caused by what’s happening in the market but are rather impacted by the low levels of data provided during quieter periods.
Instead of paying too close attention to these often conflicting opinions and data points, it’s best to focus on doing your own research, talking to agents and listening to reliable commentators and forming your own thoughts about events in the property market.
Charles Tarbey is chairman and owner of <a href="https://www.century21.com.au/" target="_blank">Century 21 Australasia</a>.
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Take property market doomsday predictions with a grain of salt, do your own research

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I think it is fair to assume that for many borrowers, gone are the days when a 20-year mortgage is kept for the full term without some kind of alternation or refinancing taking place. 
A lot can happen over the life of a loan – in the last 20 years for instance changes have occurred including market reform, fluctuating interest rates, changing regulations, the emergence of new lenders and both the tightening and weakening of lending criteria, to name just a few. 
Thus, for many borrowers, the environment in which their mortgage was first acquired no longer exists or is vastly different, and it is likely that the original loan product obtained may not be appropriate nor the most cost-effective option for current conditions and personal circumstances. 
It is for this reason that it can be incredibly valuable for borrowers to establish an ongoing, working relationship with a mortgage broker, similar to that which may be enjoyed with a financial advisor or other professional consultant. 
By keeping in touch with a trusted mortgage expert borrowers can position themselves to ensure that they remain abreast of developments in the home loans market, and can act on fortuitous opportunities, such as to refinance or expand a portfolio, as they arise. 
I have seen many borrowers discount or even disregard the value that working to maintain such a relationship with a broker can achieve for them.  As a result these people will only have contact with their mortgage consultant periodically when their broker contacts them to make sure all is well. 
It is true that most professional brokers, if they are doing their job properly, will certainly be keeping an eye on their clients’ situations and those who are proactive will let their clients know about new opportunities to refinance or add value. 
However, if these interactions were not being initiated on the part of the broker, I am inclined to suspect that many borrowers would sit on their current mortgage without periodically investigating the newly available options – and potentially miss out on valuable cost savings as a result. 
In my experience, borrowers who maintain a working relationship with their mortgage brokers are at a big advantage, particularly as to do so doesn’t necessarily require a great deal of time.  While yes, it is reasonable to expect that your broker contacts you when attractive opportunities arise, don’t discount the value in taking steps to keep yourself front of mind for the broker so that you are the first client contacted when, for example, lenders release new packages, regulations change, or lending criteria alters in your favour. 
Often this requires only a coffee or lunch every now and then to catch up with your mortgage broker and have a chat about general market conditions and happenings, as well as your personal objectives and plans. 
The information that can be gained from such meetings is often invaluable, as you might find yourself privy to your broker’s concerns and insights into the current mortgage market – which could lead to further opportunities to invest or expand your portfolio. 
In addition, with more of an idea as to your property intentions and what you are comfortable with, your broker will be better placed to evaluate new mortgage options on your behalf. 
As a natural by-product of your effort and hospitality, you may just find that a working relationship with your broker is formed, whereby he or she is naturally more inclined to look out for your interests and alert you to valuable new opportunities as (or even before) they arise – putting you well ahead of other players and potentially saving you precious funds that can be directed to paying off your mortgage more quickly. 
There is no doubt that the home loans market can be a complex place to navigate, particularly for those property buyers who have not had a great deal of experience.  Dedicating some time to developing a relationship with a trusted mortgage broker can help you to make sure that you have an experienced professional watching out for your best interests – ensuring you make valuable savings where possible and have the most effective mortgage package available.
Charles Tarbey is chairman and owner of <a href="https://www.century21.com.au/" target="_blank">Century 21.</a> 
 
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Maximise your relationship with your mortgage broker

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As we move into a new year, it is my feeling that interesting times are ahead for both the Australian residential property and mortgage markets. 
There is no doubt that as uncertainty continues in global economies many Australian home owners will continue to hurt financially. 
However, the prevailing economic conditions are also heavily influenced by decisions made by the Reserve Bank of Australia, which moved to cut the official cash rate by 50 basis points over November and December – decisions that will no doubt help stimulate the property and mortgage markets. 
Recent labour force data released by the Australian Bureau of Statistics has certainly fuelled speculation that the Reserve Bank will move in February (at least), with many pundits predicting a potential cut of 25 basis points – bringing the official cash rate down to 4%. 
Such downwards movement in rates is helping to improve purchase conditions and levels of confidence for many of those Australians who are in a position to buy yet spent 2011 sitting on the fence. And with the rental market continuing to tighten across the country, many buyers, including both previous renters and investors, are moving to take advantage of fortuitous purchase opportunities and lending conditions. 
Therefore, circumstances that are highly concerning for many are also helping to improve prospects for others.  Interesting times ahead. 
So how can borrowers best approach mortgage management in 2012?
When to fix? 
Understandably, many of those people looking to obtain finance to purchase a property will be waiting for the possibility of further rate cuts so as to secure the lowest fixed-rate home loan package. 
While there is certainly the potential for fixed rates to come down with further rate cuts, it is my suspicion that the rates offered by lenders across the board will eventually bounce back up at some stage over the course of the year. 
If this happens, it will occur with little warning and could be quite substantial – with prospective borrowers missing out on good mortgage packages, resulting in larger monthly repayments. 
As such, I would advise that those borrowers who wish to fix do so, as rates are coming down – a mortgage professional will be able to provide guidance as to the best product and associated rate for your personal situation. 
Choose your lender wisely 
I would encourage those borrowers who may usually prefer to do their banking with the big four to contemplate the mortgage offerings of second-tier lenders. As the major banks ponder whether or not to pass on rate cuts in full, the mortgage products of many second-tier lenders generally present good propositions, and are certainly worthy of consideration if suitable for your personal situation. 
This goes for current mortgage holders as well – don’t discount the value that refinancing with a second-tier lender could have if your current lender declines to pass on any future rate cuts (be it one of the big four banks or another second-tier company). 
Take care with valuations when refinancing 
With some property values declining in various areas of the country across 2011, investors may find that when refinancing in order to expand a property portfolio, a valuation shows their position is not as strong as they had thought.  As such, it is essential that investors ensure they have adequate equity prior to making further purchases, and ideally should consult with a mortgage professional to ascertain their true financial position. 
Despite concerning conditions in global financial markets, the year to come should certainly present some attractive mortgage opportunities to those Australians who are financially positioned to make a property purchase.  I would urge buyers to seek the advice of a mortgage professional so as to be able to take advantage of attractive interest rates and to ensure that you end up with the best home loan for your circumstances.
Charles Tarbey is chairman and owner of <a href="https://www.century21.com.au/" target="_blank">Century 21.</a>
 
 
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What's in store for borrowers in 2012

One of Brisbane's last major riverfront redevelopment opportunities has taken a significant step forward, with Lendlease selected as the Queensland Government's preferred development partner for the former Visy site in South Brisbane.

The seven-hectare industrial site, positioned between South Bank and West End and 1.3 kilometres from the Brisbane CBD, will be transformed into a mixed-use precinct expected to deliver more than 4,000 new homes alongside extensive public open space and riverfront parkland.

The project is one of the largest urban renewal opportunities currently planned in Brisbane and is expected to play a key role in accommodating the city's growing population ahead of the 2032 Olympic and Paralympic Games.

Plans for the precinct include a network of riverfront promenades and boardwalks, new public plazas, parkland, amphitheatre-style gathering spaces and shared pedestrian and cycling links designed to reconnect the long-isolated site with the Brisbane River.

The Queensland Government is targeting delivery of the first homes and key public spaces before the 2032 Games, allowing the precinct to begin contributing new housing and public amenity well before the broader masterplan is complete.

The redevelopment is also expected to support more than 3,000 jobs across planning, construction and ongoing operations.

For Lendlease, the appointment adds another major urban regeneration project to its Queensland portfolio. The developer has operated in the state for more than 70 years and has delivered a number of large-scale mixed-use precincts in partnership with government.

Lendlease Development CEO Claire Johnston said the project represented one of Brisbane's most significant redevelopment opportunities.

"The transformation of the former Visy site represents a rare opportunity to reimagine one of Brisbane's most significant riverfront locations, deliver thousands of much-needed homes, and create long-term legacy," Johnston said.

"In partnership with the Queensland Government, we have the opportunity to create a new riverside destination that will help shape Brisbane's growth and how people experience the city for decades to come.

"This is exactly the type of large-scale, city-shaping development that will provide lasting benefits for Queensland, bringing together housing, jobs and world-class public spaces."

Deputy Premier and Minister for State Development, Infrastructure and Planning Jarrod Bleijie said the riverfront transformation would deliver a thriving new community precinct.

“The Crisafulli Government is delivering this golden opportunity to unlock a riverfront jewel for all Queenslanders,” Deputy Premier Bleijie said.

“This is a once-in-a-generation moment to reshape a significant slice of Brisbane and deliver lasting benefits – thousands of new homes, and public spaces for all Queenslanders to enjoy well beyond the 2032 Olympic and Paralympic Games – unlike Labor’s plan which would have delivered zero benefits and zero new homes.

“Queensland is well and truly open for business and through partnership with the private sector, we are accelerating delivery while ensuring strong housing, community and economic outcomes."

Early works on the precinct are expected to commence in April 2027.

Joel Robinson

Lendlease selected to deliver transformative South Brisbane riverfront precinct

Eddy Haddad's <a href="https://www.apartments.com.au/developers/level-33">Level 33</a> is levelling up its approved Wollongong development, as the coastal city south of Sydney continues to prove popular in the high-density development space.

Level 33, a longtime developer in the Wollongong area, has gone through the NSW Government's Housing Delivery Authority to upsize its approved two-tower development on the corner of Crown Street and Gladstone Avenue, just 100 metres from Wollongong Station.

The developer currently has approval for 252 apartments across two buildings rising to 19 storeys. It is now seeking approval for 33 and 38-storey towers that would deliver 467 apartments, including 67 affordable homes.

Designed by <a href="https://www.apartments.com.au/architects/bka-architecture">BKA Architecture</a>, the development would comprise apartments above a three-level podium with around 1,100 sqm of retail space, along with basement parking for 448 vehicles.

According to the Urban Design Report by BKA, the proposal has the capacity to "reinforce the precinct's identity by strengthening links between health, education, and transport services, while also contributing to Wollongong's ongoing evolution as a key regional centre."

Wollongong is somewhat in vogue. Between Level 33 and Urban Property Group, the two developers have several thousand apartments planned across the city.

Level 33 is currently delivering Easterly Wollongong, one of its most boutique projects to date with just 21 high-end apartments, as well as Atchison &amp; Kenny, a 329-apartment development due for completion later this year.

The developer plans to redevelop the 13,088 sqm WIN Grand megasite into <a href="https://www.apartments.com.au/new-apartments/crown-square-216-238-keira-street-wollongong-nsw-2500">Crown Square</a>, a new $500 million precinct with nearly 600 apartments. It also has more than 900 apartments planned for the former Bunnings Warehouse site at the intersection of Gipps and Flinders streets.

Urban Property Group is also playing a major role in the city's transformation. Its five-tower Keira Place precinct will deliver more than 800 homes, and it has recently lodged plans for a further 300 apartments near Wollongong Station.

First look: Level 33 upsizes Wollongong apartment towers

Just a week after filing plans for the final stage of its major Keira Place masterplan, <a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> has unveiled another significant housing proposal in Wollongong, this time targeting a prominent site opposite North Wollongong Station.

The developer has lodged a State Significant Development Application for a 38-storey mixed-use tower at <a href="https://www.apartments.com.au/new-apartments/4-4a-flinders-street-north-wollongong-nsw-2500">4-4A Flinders Street</a>, around one kilometre north of the <a href="https://www.apartments.com.au/new-apartments/keira-place-wollongong-120-122-smith-street-wollongong-nsw-2500">Keira Place precinct</a> currently taking shape on the edge of the CBD.

<img alt="First look: Urban Property Group plans 38-storey North Wollongong tower as Keira Place expansion gathers pace" data-entity-type="file" data-entity-uuid="2b6428f1-6405-4038-8476-897de440e90d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/flinders%20podium.png?VersionId=QLqEvK0OuCEwRC47oHNftrw2B1YqaHF8" />

Designed by Studio.SC, the proposal comprises a 38-storey mixed-use development containing 303 apartments, including 45 affordable housing units, alongside 174 co-living residences. The scheme also includes ground-floor retail space, extensive landscaping and public domain improvements.

Studio.SC noted in the proposal it "outlines a vision for a landmark transit-oriented mixed-use development centred around North Wollongong Station, designed to support the city’s future growth while responding to the NSW Government’s housing and planning reforms."

The architecture firm said the proposal responds to the opportunities and constraints shaping future growth within the 400-metre catchment of the station and represents "a coordinated and future-focused approach to urban intensification, contributing to the long-term evolution of North Wollongong as a connected, walkable and high-density station precinct."

The site occupies a strategic corner bounded by Flinders Street, Station Street, Stafford Street and the Princes Highway, directly opposite North Wollongong Station.

<img alt="First look: Urban Property Group plans 38-storey North Wollongong tower as Keira Place expansion gathers pace" data-entity-type="file" data-entity-uuid="7863adad-1f71-4022-b850-f44b252738fd" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/flinders%20podium%20a.png?VersionId=WsU7av0g8_8R2tGHWxgHeFSlhu7yeY1V" />

The proposal follows Urban Property Group's recent submission for the second and final stage of Keira Place, which would deliver a further three buildings comprising 657 homes opposite Beaton Park. It builds on the first stage, which features 150 apartments across two towers and recently commenced construction.

Urban Property Group CEO Patrick Elias said breaking ground on the first stage marked a significant milestone for Wollongong and reflected the developer's long-term commitment to regional cities.

"Today's groundbreaking is about turning approvals into homes and moving quickly to deliver much-needed housing in Wollongong's city centre," Elias said.

"Keira Place will provide a diverse mix of homes close to jobs, transport and services, while setting a high benchmark for quality, durability and consumer protection."

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/urban-property-group-unveils-trio-of-towers-for-next-stage-of-new-wollongong-precinct-keira-place">Urban Property Group unveils trio of towers for next stage of new Wollongong precinct, Keira Place</a>

First look: Urban Property Group plans next major Wollongong tower

<a href="https://www.apartments.com.au/developers/arada">Arada Australia</a> has wasted little time expanding its ambitions in Campsie, lodging plans for a second major project in the rapidly transforming town centre just months after unveiling its three-tower One Campsie proposal on Beamish Street.

The UAE-backed developer has now taken aim at one of the suburb’s most strategically positioned sites, filing a State Significant Development Application for a <a href="https://www.apartments.com.au/new-apartments/10-north-parade-campsie-nsw-2194">33-storey mixed-use tower</a> at 10 London Street and 43 North Parade, directly opposite the future Campsie Metro Station. The proposal is currently on public exhibition and represents another significant vote of confidence in Campsie's emergence as one of Sydney’s key transit-oriented growth centres.

Designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a>, the development would deliver 156 apartments above a podium containing retail and commercial space, creating a new residential and commercial gateway to the town centre. The scheme also includes a four-level above-ground parking podium and a dedicated residential amenity floor featuring wellness and recreation facilities. At least 10 per cent of the apartments would be allocated as affordable housing for a period of 10 years.

The proposal occupies a 1,631 sqm site bounded by London Street, North Parade and Dispensary Lane, immediately adjoining the future Metro station precinct and just metres from Beamish Street’s retail and dining strip. According to the Urban Design Report, the project seeks to deliver "a great place that prioritises human-scaled experience and provides spatial improvements to the area."

<img alt="First look: Arada doubles down in Campsie with 33-storey Metro-front tower plans" data-entity-type="file" data-entity-uuid="175a8324-015b-4856-abe3-ce6f23199fa7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/podium%20campsie.png?VersionId=742UGwXFhFBX4GEl6wX4PYIWREAgn6il" />

Woods Bagot describes the tower as a key marker within Campsie's next phase of growth.

"Located directly opposite the new Campsie Metro Station on North Parade, 10 London Street is a thoughtfully composed 33-storey mixed-use tower that contributes to the ongoing transformation of the town centre," the Architectural Design Report states. The report says the project is intended to provide "high-quality homes within a vibrant, connected urban environment, while helping define Campsie's future skyline."

A strong emphasis has been placed on the public realm. The ground floor incorporates over 500 sqm of retail space and active frontages along both London Street and North Parade, while the podium is wrapped by extensive landscaped planting intended to soften the building's scale and strengthen the pedestrian experience. The development would also widen surrounding footpaths and improve connections between the Metro station and the broader town centre.

Above the podium, residents would have access to more than 1,400 sqm of communal amenities, including a pool, gym and landscaped recreation spaces. A distinctive green-wall treatment extending across four podium levels forms a major architectural feature, helping differentiate the project within the emerging high-density precinct.

The tower's design is closely tied to the broader Campsie Town Centre Master Plan and the arrival of Sydney Metro. The Urban Design Report notes the proposal "directly supports the Campsie Town Centre Master Plan by delivering new homes in a location explicitly identified for growth, improved accessibility, and high-quality urban renewal." It adds that the project contributes to the master plan's vision for a strengthened town centre supported by thousands of new homes around the future Metro station.

<img alt="First look: Arada doubles down in Campsie with 33-storey Metro-front tower plans" data-entity-type="file" data-entity-uuid="bfd17654-253e-489a-bade-6278d63db412" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/base%20campsie.png?VersionId=3roJPMQGs36dazpkhvpvbDDP73Ld.Ica" />

The application follows Arada Australia's recently lodged One Campsie project at 124–142 Beamish Street and 16–18 Ninth Avenue, where the developer is seeking approval for 346 apartments across three towers rising 24, 32 and 39 storeys. Together, the two proposals would cement Arada Australia as one of the most influential developers shaping Campsie's future urban form.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-arada-files-for-trio-of-apartment-towers-in-campsie-town-centre">First Look: Arada Australia files for trio of apartment towers in Campsie town centre</a>

Arada Australia entered the Australian market in 2024 and has rapidly assembled a significant development pipeline across Sydney. Alongside its Campsie holdings, the developer is soon to launch <a href="https://www.apartments.com.au/new-apartments/wattle-green-2-fishburn-crescent-castle-hill-nsw-2154">Wattle Green</a> in Castle Hill, and has expanded its local operations following its acquisition of construction firm Roberts &amp; Co.

Located around 14 kilometres south-west of the Sydney CBD, the site sits at the centre of one of Sydney's fastest-changing middle-ring precincts. The Metro conversion of Campsie Station, combined with Canterbury-Bankstown Council's master planning framework, is driving significant residential intensification around Beamish Street and North Parade, with thousands of new homes expected over coming decades.

First look: Arada Australia doubles down in Campsie with 33-storey Metro-front tower plans

For the first time in a long time, Australia's inflation story is starting to look more like a landing than a fight.

The latest Consumer Price Index figures from the Australian Bureau of Statistics showed annual inflation eased to four per cent in May, down from 4.2 per cent in April. On the surface, that might not seem like a major move. Inflation remains above the Reserve Bank's target range and some categories continue to record stubborn price growth.

But the significance of this result lies less in where inflation sits today and more in what it means for where interest rates are likely heading next.

The biggest takeaway is that inflation continues to move in the right direction.

Markets had been bracing for another sticky result after a period where progress appeared to stall. Instead, headline inflation came in softer than expected, helped by falling fuel prices and easing transport costs. Annual transport inflation halved from 6.6 per cent in April to 3.3 per cent in May, while automotive fuel prices fell 11.9 per cent during the month following lower oil prices and the impact of reduced fuel excise measures.

While petrol prices don't solve Australia's affordability challenges, they are one of the most visible and immediate costs for consumers. Falling fuel costs feed through the economy quickly, helping ease pressure on household budgets and business operating expenses.

The ABS data also showed headline inflation is now sitting at its lowest annual level in several months, reinforcing the broader trend that price growth is gradually moderating.

That trend is important because it aligns with what many economists and lenders have been saying for the last month.

Prior to this week's inflation data, ANZ, NAB and Commonwealth Bank had all shifted their forecasts, now believing the Reserve Bank had likely reached the peak of the interest rate cycle. Following the May inflation release, ANZ reaffirmed that view.

In its latest economic update, ANZ said it expects quarterly trimmed mean inflation to come in at 3.7 per cent for the June quarter, slightly below the Reserve Bank's forecast of 3.8 per cent. Importantly, the bank said that outcome, when combined with slowing economic activity, "supports our view that the cash rate has peaked".

The Reserve Bank has spent the better part of three years attempting to bring inflation under control through higher interest rates. If Australia's major banks are correct and rates have now peaked, the conversation shifts from how much higher rates could go to when they might begin coming down.

Westpac's caution comes from underlying inflation. The trimmed mean, the measure most closely watched by the Reserve Bank, increased from 3.4 per cent to 3.6 per cent annually. Housing inflation remains elevated at 6.5 per cent, reflecting ongoing increases in rents, electricity costs and new dwelling construction.

Electricity prices remain particularly problematic, rising 21.1 per cent over the past year following the removal of government rebates.

Housing construction costs are also showing signs of renewed pressure. ANZ noted new dwelling costs rose 0.9 per cent in May and are now running at an annualised pace of 8.6 per cent over the past three months. Builders continue to face higher labour, fuel and material costs, a reminder that inflationary pressures have not completely disappeared.

Housing affordability has deteriorated largely because of higher interest rates rather than higher property prices alone. Even modest reductions in mortgage rates would improve borrowing capacity, increase buyer confidence and reduce repayment pressure on existing homeowners.

While August is far from a certainty, the latest inflation result has strengthened the view that the next move in rates is more likely to be down than up. For borrowers, buyers and the development sector, that alone represents a significant shift from the conversation that dominated much of the past two years.

Charles Tarbey

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