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<p>All eyes are fixed on Rio de Janeiro, thanks to the World Cup.</p>
<p>But it’s the city’s real estate market which has caught the eye of Savills, which added the Brazilian capital to its World Cities index this year.</p>
<p>This year, the index expanded from 10 “global cities” to 12 with the addition of Rio de Janeiro and Dubai. The London stock exchange listed real estate agency counts Rio among the world’s “new world cities”, along with Dubai, Moscow, Mumbai, Singapore, Hong Kong and Shanghai. London, New York, Paris, Tokyo and Sydney make up the old guard.</p>
<p>In its Live/Work Index, Savills ranks the 12 cities according to their cost of renting residential and commercial space per employee, per year. Rio de Janeiro has the second cheapest Live/Work value on the list, more expensive than only Mumbai.</p>
<p><strong>The Live/Work Index:</strong></p>
<ol>
<li>
<strong>Hong Kong<br></strong>Live/Work cost per worker, per year: $123,000<br><br>
</li>
<li>
<strong>London<br></strong>Live/Work cost per worker, per year: $115,000<br><br>
</li>
<li>
<strong>New York<br></strong>Live/Work cost per worker, per year: $112,000<br><br>
</li>
<li>
<strong>Paris<br></strong>Live/Work cost per worker, per year: $107,000<br><br>
</li>
<li>
<strong>Singapore<br></strong>Live/Work cost per worker, per year: $76,000<br><br>
</li>
<li>
<strong>Tokyo<br></strong>Live/Work cost per worker, per year: $74,000<br><br>
</li>
<li>
<strong>Dubai<br></strong>Live/Work cost per worker, per year: $72,000<br><br>
</li>
<li>
<strong>Moscow<br></strong>Live/Work cost per worker, per year: $70,000<br><br>
</li>
<li>
<strong>Sydney<br></strong>Live/Work cost per worker, per year: $60,000<br><br>
</li>
<li>
<strong>Shanghai<br></strong>Live/Work cost per worker, per year: $44,000<br><br>
</li>
<li>
<strong>Rio De Janeiro<br></strong>Live/Work cost per worker, per year: $30,000<br><br>
</li>
<li>
<strong>Mumbai<br></strong>Live/Work cost per worker, per year: $28,000</li>
</ol>
<p><em>Source: Savills</em></p>
<p>According to Savills, Brazil was “one of the big global success stories” of the decade from 2000, with 40 million Brazilians joining the country’s middle class between 2005 and 2011.</p>
<p>The report claims that “tougher policing” in Rio de Janeiro has “helped to pacify the drug controlled favelas”.</p>
<p>With this year’s World Cup and the Olympics in 2016, there have been significant infrastructure investments in the country. </p>
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jrichardson-uRX5hFdKfN

Rio de Janeiro “the real success story of Brazil’s economic emergence”: Savills

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<p>The Reserve Bank of Australia (RBA) has again chosen to keep the overnight cash rate at its record low level of 2.5%. The cash rate has not moved since August 2013.</p>
<p>The decision was widely anticipated by property industry commentators, with 18 surveyed industry experts recently <a href="/expert-insights/finance/experts-predict-rba-will-keep-rates-on-hold-for-july-finder">predicting the cash rate would stay on hold</a>.</p>
<p>RP Data’s research director Tim Lawless says that the cash rate is likely to stay on hold for the rest of the year.</p>
<p>“The RBA interest rate decision came at a time when value growth across the housing market continues to trend higher, albeit at a lower rate than in the recent past and the Australian dollar has remained stubbornly high around the ninety four cent mark,” said Lawless.<span style="line-height: 1.3em;">      </span></p>
<p><span style="line-height: 1.3em;">“RP Data recently reported that dwelling values were down 0.2% over the June quarter, dragged down by a very weak May result and a partial recovery of values in June.  Policy makers, including the RBA, are likely to be reassured by the slowdown in housing market conditions, where the rate of growth earlier in the year was increasingly viewed as unsustainable.</span></p>
<p>“It is looking increasingly like the official cash rate will remain at its low setting, at least for the remainder of this year, which should continue to support housing demand.  Capital gains over the past financial year were recorded at 10.1% across the combined capital cities, however we are expecting growth rates to wind down over the coming financial year as natural affordability constraints and low rental yields in the largest capital cities work to slow the rate of capital gains.</p>
<p>LJ Hooker chief executive Grant Harrod said that a future increase is expected.</p>
<p>“The continued stability of rates will give buyers extra confidence, even with speculation an increase will eventually come,’’ said Harrod.</p>
<p>“We have seen property price growth soften as the market heads into winter but, even still, demand is strong as seen in the volume of sales and auction clearance rates around Australia’s various markets.’’</p>
<p>LJ Hooker national research manager Mathew Tiller said unemployment levels remain at a stable 5.8%, in spite of concerns over the retail and mining sectors, while inflation is within the RBA’s target band.</p>
<p>However, he said that international markets could affect local interest rates offered by banks.</p>
<p>“In the US and EU, rates are set at close to zero and are not expected to move till mid-2015, while the risk of deflation in Europe has seen the European Central Bank introduce negative interest rates for bank deposits,” said Tiller.</p>
<p>“Major lenders here may look to tap into this cheap source of debt.”</p>
<p><em>Photo courtesy of Newtown grafitti/<a href="https://creativecommons.org/licenses/by/2.0/" target="_blank">Creative Commons</a>.</em></p>
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RBA keeps interest rates on hold for July

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<p>New South Wales has topped the dominated the prestige market again this week, taking out with seven of the top 10 sales located in Sydney according to <a href="https://www.myrpdata.com/" target="_blank">RP Data</a>. </p>
<ol>
<li>
<strong><a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/71_bay_street_double_bay_nsw_2028/2116749">71 Bay Street, Double Bay, NSW</a></strong><br><p><img src="/images/2014/07/01/a.jpg" alt=""><br><br>Judit Korner, of the Madame Korner beauty empire, <a href="/news/madame-korner-sells-longtime-double-bay-home">sold her five bedroom house</a> (pictured above) opposite Steyne Park for $7.2 million at auction through Richardson &amp; Wrench Double Bay. </p>
<p>The home is set on a 765 square metre block with dual street entrance, through a private road. Her late husband, George Korner, bought the home for £22,000.</p>
</li>
<li>
<p><strong><a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/3/18-20_coast_avenue_cronulla_nsw_2230/2011079">3/18 Coast Avenue, Cronulla, NSW</a></strong></p>
<p><img src="/images/2014/07/01/b.jpg" alt=""><br><br>A whole floor, four-bedroom apartment sold prior to auction through Highland Property Agents Cronulla for $5.202 million. Located in the four-apartment COAST development, the apartment has an ocean front balcony and ocean views from several rooms.</p>
</li>
<li>
<p><strong><a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/34_kennedy_street_glen_waverley_vic_3150/11086112">34 Kennedy Street, Glen Waverley, VIC</a></strong></p>
<p><span style="line-height: 1.3em;"><img src="/images/2014/07/01/c.jpg" alt=""><br><br>This house in Melbourne’s eastern suburbs sold at auction through JRW Property International Glen Waverley for $3.2 million. Set on a 755 square metre plot, the home has six large bedrooms, five bathroom, with a tiered theatre room and home office. The vendors purchased the home for $909,800 in March last year. In March 2011, it was advertised to rent for $425 per week.</span></p>
</li>
<li>
<p><strong><a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/7_kywong_avenue_pymble_nsw_2073/5641743">7 Kywong Avenue, Pymble, NSW</a></strong></p>
<p><img src="/images/2014/07/01/d.jpg" alt=""><br><br>A double storey, six-bedroom house secured $3.0 million when sold through Burns &amp; Burns Real Estate after 25 days on the market. It was purchased by the vendors for $2.3 million in September 2003. The home has substantial al fresco dining space and a pool with spa.</p>
</li>
<li>
<p><strong><a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/71_henley_marine_drive_rodd_point_nsw_2046/5901661">71 Henley Marine Drive, Rodd Point, NSW</a></strong></p>
<p><img src="/images/2014/07/01/e.jpg" alt=""><br><br>This four-bedroom contemporary house sold through Raine &amp; Horne Five Dock for $3.0 million. The house, with uninterrupted views of Iron Cove Bay, has European Oak flooring throughout. It was purchased by the vendor in March 2011, for $1.35 million.  </p>
</li>
<li>
<p><strong><a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/21_dock_road_birchgrove_nsw_2041/1445052">21 Dock Road, Birchgrove, NSW</a></strong></p>
<p><span><img src="/images/2014/07/01/f.jpg" alt=""><br><br>A three-bedroom terrace house sold through Belle Property Balmain for $2.735 million. The Victorian era house, with views over Mort Bay to the city and Harbour Bridge has a contemporary renovated interior. The sellers bought the house for $2.38 million in September 2010.</span></p>
</li>
<li>
<p><strong><a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/16_abbott_street_balgowlah_heights_nsw_2093/1228594">16 Abbott Street, Balgowlah Heights, NSW</a></strong></p>
<p><img src="/images/2014/07/01/g.jpg" alt=""></p>
<p>McGrath Estate Agents sold this home for $2.58 million this week. The art deco inspired home was built four years ago. Outside, there is a solar heated pool, cabana, lawn and covered entertaining area. There is also a rooftop entertaining area, with panoramic views from Middle Harbour to Manly. The land and former house was purchased for $1.2 million in 2007.</p>
</li>
<li>
<p><strong><a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/145_ryan_street_west_end_qld_4101/8214696">145 Ryan Street, West End, QLD</a></strong></p>
<p> <img src="/images/2014/07/01/h.jpg" alt=""></p>
<p>The only Queensland home on the top 10 list is a four-bedroom house, sold through Place Bulimba for $2.475 million. The three level house, designed by John Mainwaring, is set on 582 square metres of riverfront land. The land was originally purchased in 1985 for just $95,000, and was transferred to the couple’s daughter for $600,000 in 2011.</p>
</li>
<li>
<p><strong><a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/9_vista_avenue_kew_vic_3101/11357589">9 Vista Avenue, Kew, VIC</a></strong></p>
<p> <img src="/images/2014/07/01/j.jpg" alt=""></p>
<p>A 1930s era, English inspired home on a cul de sac sold at auction by Kay &amp; Burton Hawthorn for $2.431 million. The agents advertised the house in Melbourne’s private school heartland as “just moments from Genazzano College”. The four bedroom, two bathroom house was purchased for $785,000 in 2006, with the vendors more than tripling their purchase price in eight years.</p>
</li>
<li>
<p><strong><a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/61b_shadforth_street_mosman_nsw_2088/4504813">61B Shadforth Street, Mosman, NSW</a></strong></p>
<p><a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property/61b_shadforth_street_mosman_nsw_2088/4504813"><img src="/images/2014/07/01/k.jpg" alt=""></a></p>
<p>This four-bedroom house was auctioned by Vernon Partners Mosman, securing $2.39 million. The 1930s era home was purchased is within walking distance of the ferry, Mosman Prep and Queenwood Junior School. The vendors purchased it in 1997 for $665,000.</p>
</li>
</ol>
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The 10 most expensive sales this week: RP Data

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<p>Victoria's auction clearance rate decreased to 74.6% for June, down from 75.4% in May.</p>
<p>For June, the strongest region was Melbourne's Outer East. Data from the Real Estate Institute of Victoria (REIV) shows that the area had a June clearance rate of 82.7%, up from May's result of 80.5%.</p>
<p>The weakest auction results were recorded in the West, where only 65.1% of homes auctioned in June sold at auction. The previous month's result was slightly better, with a clearance rate of 65.3%.</p>
<p>The biggest monthly improvement (on a percentage point basis) was recorded in North. There, the May clearance rate was 67.5%. In June, 73.6% of homes auctioned sold at auction. Victoria's North East region saw the largest drop, with the clearance rate falling from 78.4% to 72.5%. </p>
<p>This weekend saw strong clearance rates in Victoria, with all regions except the North and West recording a higher proportion of auction sales than were recorded at the same time last year. The total clearance rate for this weekend (29 June) was 75.0%. </p>
<table style="width: 460px;" border="0"><tbody>
<tr>
<td>
<h6>Region</h6>
</td>
<td>
<h6>June clearance rate</h6>
</td>
<td>
<h6>May clearance rate</h6>
</td>
</tr>
<tr>
<td>
<h6>Inner Urban</h6>
</td>
<td>
<h6>73.2%</h6>
</td>
<td>
<h6>77.5%</h6>
</td>
</tr>
<tr>
<td>
<h6>Inner East</h6>
</td>
<td>
<h6>78.1%</h6>
</td>
<td>
<h6>78.8%</h6>
</td>
</tr>
<tr>
<td>
<h6>Inner South</h6>
</td>
<td>
<h6>75.0%</h6>
</td>
<td>
<h6>78.5%</h6>
</td>
</tr>
<tr>
<td>
<h6>South East</h6>
</td>
<td>
<h6>72.3%</h6>
</td>
<td>
<h6>72.2%</h6>
</td>
</tr>
<tr>
<td>
<h6>Outer East</h6>
</td>
<td>
<h6>81.8%</h6>
</td>
<td>
<h6>80.5%</h6>
</td>
</tr>
<tr>
<td>
<h6>North East</h6>
</td>
<td>
<h6>72.5%</h6>
</td>
<td>
<h6>78.4%</h6>
</td>
</tr>
<tr>
<td>
<h6>North</h6>
</td>
<td>
<h6>71.3%</h6>
</td>
<td>
<h6>67.5%</h6>
</td>
</tr>
<tr>
<td>
<h6>West</h6>
</td>
<td>
<h6>65.8%</h6>
</td>
<td>
<h6>65.3%</h6>
</td>
</tr>
</tbody></table>
<p>This weekend's clearance rates by region, from <a href="https://www.reiv.com.au/" target="_blank">REIV</a>:</p>
<table style="width: 460px; height: 218px;" border="0"><tbody>
<tr>
<td>
<h6>Region</h6>
</td>
<td colspan="3">
<h6>29 June 2014</h6>
</td>
<td colspan="3">
<h6>30 June 2013</h6>
</td>
</tr>
<tr>
<td>
<h6> </h6>
</td>
<td>
<h6>Weekend Total</h6>
</td>
<td>
<h6>Sold</h6>
</td>
<td>
<h6>%Sold</h6>
</td>
<td>
<h6>Weekend Total</h6>
</td>
<td>
<h6>Sold</h6>
</td>
<td>
<h6>%Sold</h6>
</td>
</tr>
<tr>
<td>
<h6>Inner Urban</h6>
</td>
<td>
<h6>28</h6>
</td>
<td>
<h6>22</h6>
</td>
<td>
<h6>79.0% </h6>
</td>
<td>
<h6>24</h6>
</td>
<td>
<h6>18</h6>
</td>
<td>
<h6>75.0%</h6>
</td>
</tr>
<tr>
<td>
<h6>Inner East</h6>
</td>
<td>
<h6>17</h6>
</td>
<td>
<h6>14 </h6>
</td>
<td>
<h6>82.0%</h6>
</td>
<td>
<h6>31</h6>
</td>
<td>
<h6>22 </h6>
</td>
<td>
<h6>71.0% </h6>
</td>
</tr>
<tr>
<td>
<h6>Inner South</h6>
</td>
<td>
<h6>10</h6>
</td>
<td>
<h6> 9</h6>
</td>
<td>
<h6>90.0%</h6>
</td>
<td>
<h6>4 </h6>
</td>
<td>
<h6>2 </h6>
</td>
<td>
<h6>50.0%</h6>
</td>
</tr>
<tr>
<td>
<h6>South East</h6>
</td>
<td>
<h6>78 </h6>
</td>
<td>
<h6>55 </h6>
</td>
<td>
<h6>71.0% </h6>
</td>
<td>
<h6>80</h6>
</td>
<td>
<h6>54</h6>
</td>
<td>
<h6>68.0% </h6>
</td>
</tr>
<tr>
<td>
<h6>Outer East</h6>
</td>
<td>
<h6>118</h6>
</td>
<td>
<h6>102</h6>
</td>
<td>
<h6>86.0% </h6>
</td>
<td>
<h6>97</h6>
</td>
<td>
<h6>77 </h6>
</td>
<td>
<h6>79.0% </h6>
</td>
</tr>
<tr>
<td>
<h6>North East </h6>
</td>
<td>
<h6>34</h6>
</td>
<td>
<h6>29 </h6>
</td>
<td>
<h6>85.0% </h6>
</td>
<td>
<h6>39 </h6>
</td>
<td>
<h6>29 </h6>
</td>
<td>
<h6>74.0% </h6>
</td>
</tr>
<tr>
<td>
<h6>North</h6>
</td>
<td>
<h6>48</h6>
</td>
<td>
<h6>38 </h6>
</td>
<td>
<h6>79.0%</h6>
</td>
<td>
<h6>37</h6>
</td>
<td>
<h6>32 </h6>
</td>
<td>
<h6>86.0% </h6>
</td>
</tr>
<tr>
<td>
<h6>West </h6>
</td>
<td>
<h6>74 </h6>
</td>
<td>
<h6>46 </h6>
</td>
<td>
<h6>62.0% </h6>
</td>
<td>
<h6>63</h6>
</td>
<td>
<h6>44 </h6>
</td>
<td>
<h6>70.0% </h6>
</td>
</tr>
</tbody></table>
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Victoria's auction clearance rates down for June: REIV

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<p>Eight contracts were issued in the past four weeks at Ramada Couran Cove Island Resort on South Stradbroke Island.</p>
<p>Located off the Gold Coast, Stradbroke Island is a sand island split in two by the Jumpinin Channel.</p>
<p>According to Ramada Couran Cove Island Resort chief executive John Muntz, the resort’s owners, Couran Cove Holdings Pty Ltd, had spent millions of dollars on upgrades and improvements. <span style="line-height: 1.3em;">In January, the company took the resort’s apartments off the market to complete refurbishments and re-adjust pricing.</span></p>
<p><span style="line-height: 1.3em;"><img src="/images/2014/06/30/Ramada%20Couran%20Cove%20Island%20Resort%20-%20studio%20apartment%20interior.jpg" alt=""></span></p>
<p>“The response we have had since we released the apartments again has been very encouraging,” said Muntz.</p>
<p>Muntz said that the unseasonably warm autumn and winter months have resulted in high occupancy levels, with 100% capacity at the resort over Easter and the Queen’s Birthday long weekend.</p>
<p>A new departure terminal at Hope Harbour has allowed guests to take a 40 minute ferry trip from the mainland to the island.</p>
<p><span style="line-height: 1.3em;">“The new terminal has been a hit with a lot of people telling us that they feel their holiday starts the minute they step aboard the ferry as the ride over is spectacular,” said Muntz.</span></p>
<p>“Our future is very exciting and our current purchasers are recognising this opportunity presents itself only so often,” he said. According to Muntz, the resort’s marina was also popular with local boaties, who return on a regular basis to use the resort’s facilities.</p>
<p>“They like the fact that they can moor up, access power and water and then use the facilities like the swimming pool, the restaurant and Spa Island, and, if they choose, to the walk over to the beach,” he said.</p>
<p>“We have our regulars and have even started to serve some of them onboard their vessels when they order from the restaurant.”</p>
<p><img src="/images/2014/07/01/Ramada%20Couran%20Cove%20Island%20Resort.jpeg" alt=""></p>
<p>The eight contracts secured in the last month involve local, Brisbane and interstate purchasers.</p>
<p>Refurbished studio apartments are marketed from $220,000, with a lease back of 7% net return over two years, with potential to extend the lease back period. The Ramada Couran Cove Island Resort properties have waterfront or rainforest views. </p>
<p>“The one bedroom apartments start at $250,000 and we will be releasing the two and four bedroom apartments in the near future," said Muntz.</p>
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South Stradbroke Island resort apartments on the market 

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<p class="Default">New home sales fell 4.3% in May, according to the Housing Industry Association (HIA).</p>
<p class="Default">The decline, recorded in HIA’s New Home Sales Report, which surveys Australia’s largest volume builders, is the first recorded this year.</p>
<p class="Default"><img src="/images/2014/06/30/hia-juune-30-one.gif" alt=""></p>
<p class="Default">According to Harley Dale, HIA’s chief economist, new home sales may have reached their peak for the current cycle.</p>
<p class="Default">“The overall profile for new home sales is a healthy one, given that May marks the first decline in new home sales this year,” said Dale.</p>
<p class="Default">“Sales grew by 3.8% over the three months to May 2014 to be up by 21.0% compared to the same period in 2013.</p>
<p class="Default">“Further upward momentum may be a challenge and it is a distinct possibility that new home sales have peaked for the cycle,” he said.</p>
<p class="Default">“The volume of new home sales nevertheless remains consistent with further growth in detached house building and the continuation of historically elevated levels of multi-unit construction in 2014/15.</p>
<p class="Default">“Detached house construction has the potential to grow faster in 2014/15 than in 2013/14, but land supply constraints are again being exposed in this current upcycle, including a shortage of titled land in Sydney and Perth,” noted Dale.</p>
<p class="Default">“Inadequate land supply is one prominent example of supply side constraints preventing new home construction reaching its full potential, highlighting the need for a focus on housing policy reform.”</p>
<p class="Default">Sales for detached new houses decreased by 2.2% nationally over May, but were up by 5.7% for the quarter to May. Multi-unit sales also fell for the month, by 16.1%. For the three months to May, multi-unit sales were down 6.2%.</p>
<p class="Default"><span style="line-height: 1.3em;">In Victoria, detached house sales were up by 3.3%, and 0.5% in Queensland for May. On a monthly basis, detached house sales were down 6.7% in Western Australia, 5.8% in South Australia and 5.4% in New South Wales.</span></p>
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Current cycle peak concerns as new home sales down for first time in 2014: HIA

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<p><span style="line-height: 1.3em;">All experts surveyed by a rates comparison website have predicted that interest rates will stay on hold tomorrow.</span></p>
<p>In a survey conducted by <a href="https://www.finder.com.au/" target="_blank">Finder.com.au</a>, 18 expert respondents believed the Reserve Bank of Australia (RBA) will keep the overnight cash rate at its record low of 2.50 for July.</p>
<p>Of the respondents, 11 predicted that rates will rise in the next 12 months. Six experts – from Commonwealth Bank, Commsec, AMP, HSBC, St George Bank and Urbis – stated that interest rates could begin picking up before the end of the year.</p>
<p>The cash rate will stay on hold for this year, rising in the second half of next year, according to experts from Heritage Bank, RAMS, AAP and Westpac.</p>
<p>With almost all predicting an eventual rise, treasurer of ING Direct Michael Wills was the only respondent who argued that the cash rate could either increase or decrease at its next move, believing there were convincing cases for each scenario.</p>
<p class="Normal1">Analysis and research firm BIS Shrapnel, who did not participate in the survey, expect rates to stay on hold until an increase in 2015, anticipating a subsequent decrease in demand for off the plan properties.</p>
<p>“The expected tightening in interest rate policy is forecast to have an impact on off-the-plan purchasers,” wrote BIS Shrapnel in a statement last month.</p>
<p>“The first rises in interest rates are anticipated around the middle of 2015, with interest rates expected to reach their peak towards the end of 2016, thereby dampening demand over the subsequent years, and causing both new apartment approvals to decline and prices to weaken.”</p>
<p>According to Michelle Hutchison, Money Expert at Finder, borrowers must begin planning for a future rate rise.</p>
<p class="Normal1">“It looks like we have well and truly hit the bottom of the cash rate cycle and interest rates are set to climb within the next 12 months, with only one of the 18 experts in our survey (ING Direct) was unsure of which direction the next rate move will be,” said Hutchison.</p>
<p class="Normal1">“According to the Australian Bureau of Statistics, over 70% of households have some form of debt such as a home loan, credit card, personal or business loans or unpaid bills. So regardless of whether the next cash rate rise will be this year or next, it’s likely that most households across Australia will be hit hard and need to start planning ahead before it’s too late.”</p>
<p class="Normal1">Using ABS Housing Finance data, the comparison website has found Australians are increasing their debt levels in the housing market. The average home loan size has increased by 64% since 2004 to $314,000. The average size of fixed home loans has increased by 97% over the last decade, to $327,000.</p>
<p class="Normal1">For first home buyers, the average loan size has risen by 50% to $301,000.</p>
<p class="Normal1"><span>“With average home loan sizes among the highest we’ve ever seen, it’s a real concern that many borrowers will struggle with bigger interest rates," said Hutchison.</span></p>
<p class="Normal1"><span>“If the cash rate reaches average levels of the past decade of about 5 percent and home loan interest rates follow to an average of about 7 percent, that would cost the average home loan of $318,000 an extra $345 per month or over $4,000 in a year."</span></p>
<p class="Normal1"><span>“Everything you can do now to pay down your debts as much as possible will reduce the impact of rising interest rates in the near future,” she said.</span></p>
<p class="Normal1"><em>For the experts' predictions and commentary, go to the next page.</em></p>
<hr class="system-pagebreak">
<p>The experts surveyed by Finder made the following predictions:</p>
<p><strong style="line-height: 1.3em;"><strong style="line-height: 1.3em;">Garry Shilson-Josling, AAP<br><br></strong></strong><span style="line-height: 1.3em;">"...The recovery will be slow so there's no need to put the brakes on with a rate rise just yet. The outlook is highly uncertain, but in the absence of a major global shock the RBA should start lifting rates again after a fairly long wait as the economy slowly gathers pace..." <br><br></span><span style="line-height: 1.3em;">Predicts rates will change: Late 2015</span></p>
<p><strong>Shane Oliver, </strong><strong>AMP </strong><em style="line-height: 1.3em;">   <br><br></em>"...The Reserve Bank has cut interest rates to record lows...to boost the rest of the economy, and there's spectative evidence that it's working, but it's still tentative... The most recent budget has had a negative impact on confidence, and that's thrown a bit of a spanner in the works..."<br><br><span style="line-height: 1.3em;">Predicts rates will change:  Late this year or early next year</span></p>
<p style="line-height: 1.3em;"><strong>Warren Hogan, ANZ</strong><em style="line-height: 1.3em;"> <br></em><br>"The economy is playing out as expected ... essentially monetary policy is set to remain on hold for an extended period of time."</p>
<p style="line-height: 1.3em;">Predicts rates will change: Next year, possibly first half of 2015.</p>
<p style="line-height: 1.3em;"><strong>Steven Pambris, </strong><span style="line-height: 1.3em;"><strong>Bank of Sydney</strong> <br><br>"...The measures announced in the budget were as per our expectations with contractionary impact already reflected in the drop of consumer confidence in the latest surveys. We see that the current record low interest rates will have to continue for some time and in line with our previous position do not expect any movement in rates in 2014, if any more likely in March 2015" <br><br>Predicts rates will change: March 2015</span></p>
<p style="line-height: 1.3em;"><strong>Michael Blythe, </strong><span style="line-height: 1.3em;"><strong>CBA <br><br></strong>"The economy appears to be improving, but there's still a lot of uncertainty of course so it's the RBA's preference to wait and see what happens..." <br><br>Predicts rates will change: November 2014</span></p>
<p style="line-height: 1.3em;"><strong>Craig James, </strong><strong>Commsec<br><br></strong>"...At the end of the day, the Reserve Bank wants to keep inflation between 2.03%... As each month passes it does appear clear the Reserve Bank wants interest rates to remain where they are for a long period of time..." <br><br>Predicts rates will change: November/December 2014, maybe early 2015</p>
<p style="line-height: 1.3em;"><strong>Don Magin, </strong><span style="line-height: 1.3em;"><strong>Greater Building Society<br><br></strong>"...There is no sign of inflation. The RBA will be particularly concerned about pressure on capital expenditure. The good GDP growth we saw in 2012, based on investment by the mining sector, has subsided..." <br><br>Predicts rates will change: Mid-2015</span></p>
<p style="line-height: 1.3em;"><strong>Paul Williams, </strong><span style="line-height: 1.3em;"><strong>Heritage Bank<br><br></strong>"The RBA appears happy with current rate settings while the domestic economy tries to build some momentum. The RBA will be keeping an eye on the trends in unemployment, the strength of the Australian dollar, inflation levels, developments in key offshore economies, as well as rising tensions in the Middle East..."  <br><br>Predicts rates will change: Well into 2015</span></p>
<p style="line-height: 1.3em;"><strong>Paul Bloxham, </strong><span style="line-height: 1.3em;"><strong>HSBC</strong><br><br>"...Economic growth is still underway and interest rates will remain at record lows – which is where they are now."<br><br>Predicts rates will change: Around the end of the year, around Q4</span></p>
<p style="line-height: 1.3em;"><strong>Michael Wills, </strong><span style="line-height: 1.3em;"><strong>ING Direct<br><br></strong>"...It is difficult to see a scenario in which the RBA would change the cash rate... Equally compelling scenarios can be constructed to support both an increase and a decrease in the cash rate... Rates are on hold for an extended period that could extend into the first quarter of 2015."<br><br>Predicts rates will change: Could extend into the first quarter of 2015</span></p>
<p style="line-height: 1.3em;"><strong>John Caelli, ME Bank<br><br></strong>"...Growth remains moderate and consumer confidence has taken a hit following the Federal Budget. The uncertainty over the Budget process will cloud the outlook for a period of time. The next likely rate change will be in the first half of 2015 and is likely to be up." <br><br>Predicts rates will change: First half of 2015</p>
<p><strong style="line-height: 1.3em;">Glenn Levine, Moody’s Analytics</strong><br style="line-height: 1.3em;"><br style="line-height: 1.3em;"><span style="line-height: 1.3em;"> "...Inflation is within target and the economy is expanding slightly below potential... Tepid wage growth and a slightly looser labour market will help to keep inflation within target... The next move will likely be an interest rate increase around the middle of 2015 as we expect certain parts of the economy to be bumping up against capacity constraints by this time." </span><br style="line-height: 1.3em;"><br style="line-height: 1.3em;"><span style="line-height: 1.3em;">Predicts rates will change: Mid-2015</span></p>
<p style="line-height: 1.3em;"><strong>Jonathan Chancellor, </strong><span style="line-height: 1.3em;"><strong>Property Observer<br><br></strong>"...I still think the next rate change won't be until 2015, although the RBA historically likes to surprise. Let's see how the federal budget aftermath works it way through the economy after the new Senate in July takes effect. Consumer sentiment is still at its lowest level in almost three years..."</span></p>
<p style="line-height: 1.3em;">Predicts rates will change: 2015</p>
<p style="line-height: 1.3em;"><strong>Nathan McMullen, RAMS </strong><em style="line-height: 1.3em;"><strong>  </strong><br><br></em> "...Monetary policy settings remain mildly expansionary relative to long run averages and are appropriate given the current outlook for inflation... We continue to expect the RBA to keep interest rates on hold through the remainder of 2014 and much of 2015."<br><br>Predicts rates will change: Q4 2015</p>
<p style="line-height: 1.3em;"><strong>Janu Chan, </strong><span style="line-height: 1.3em;"><strong>St. George Bank<br><br></strong>"...On the one hand interest rates are quite low, and they are helping to support the economy, but at the same time there are some risks on the horizon... The strong growth that we saw in Q1... We'll not be sustaining that momentum in Q2..." <br><br>Predicts rates will change: November of this year, but this could be delayed until early 2015.</span></p>
<p style="line-height: 1.3em;"><strong>Scott Haslem, UBS<br><br></strong>"...We're seeing signs of improvement within the non-mining economy. The overall outlook for the economy is contained... The economy is not showing enough improvement for concerns of inflation..."<br><br>Predicts rates will change: Not until 2015</p>
<p style="line-height: 1.3em;"><strong>Nicki Hutley, Urbis</strong><br><br>"...A solid first quarter economic performance is likely to be followed by a bit of a stumble in the second quarter of 2014, on the back of weaker consumer confidence and demand following the Federal Budget... The RBA will want maintain its watch and wait stance for at least another quarter..." <br><br>Predicts rates will change: Q4 2014</p>
<p style="line-height: 1.3em;"><strong>Bill Evans, </strong><span style="line-height: 1.3em;"><strong>Westpac <br><br></strong>"...The terms of trade will have fallen in Q1 while the AUD has remained stubbornly high. We retain our forecast for an improvement in the condition of non mining equipment investment from a contraction of 11.5% in 2013 to a modest lift in 2014 of 3.4%..."     <br><br>Predicts rates will change: Third quarter of 2015, with a 25 basis point hike in both the September and December quarters</span></p>
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Experts predict RBA will keep rates on hold for July: Finder

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<p><span style="line-height: 1.3em;">While Channel Seven’s <em>House Rules</em> would have us believe that the contestants are the typical Aussie battlers, some argue that their property portfolios say otherwise.</span></p>
<p>Doubts over the accuracy of the contestants’ portrayal on the show began after <em>Woman’s Day </em>reported that five of the six couples owned at least one other investment property.</p>
<p>Western Australian couple Russell and Carole have attracted the lion’s share of the criticism, with reports that the have a $2.3 million property portfolio. Among their assets is <a href="https://mandurah.harcourts.com.au/Property/560898/WMU22784/14-Leisure-Way" target="_blank">this three bedroom Halls Head home</a>, selling through Harcourts Mandurah.</p>
<p>The canal front home is currently listed for $1.17 million, and is described as without doubt one of Mandurah's iconic waterfront homes,” by selling agent Clare Seamer, who notes that the “sellers are keen to sell as is with all of the furnishings included.”</p>
<p><img src="/images/2014/06/27/3.jpg" alt=""></p>
<p>The house has an outdoor woodfire pizza oven in its al fresco dining area, its own private jetty and a spa bath.</p>
<p><img src="/images/2014/06/27/3.jpg" alt=""></p>
<p>Russell and Carole, whose names both appear on the title documents, purchased the home in June 2012 for $1,100,000. It’s been on the market since early April, just before the couple made their television debut. The property was advertised to rent for $750 per week in August 2012, with a yield of 3.55%</p>
<p>According to <em>Woman’s Day</em>, the couple are also part-owners of a $650,000 “luxury apartment”, while <em>The Daily Mail </em>reports that Russell is also listed as the owner of properties in Western Australia’s Boya, Ascot and Woodvale.</p>
<p>But <em>House Rules</em> host Joanna Griggs has called comments that the contestants aren’t battlers “utter bollocks”.</p>
<p>The host took to radio station WSFM 107.1 to defend the teams, saying apartment identified by <em>Woman’s Day </em>was “the apartment Channel Seven put them in during the course of the filming when they’re not allowed in their homes”.</p>
<p><em>Woman’s Day </em>also reports that Candy and Ryan don’t actually live in the house that was renovated for House Rules, according to neighbours. The show’s rules don’t require contestants to only own one property, but the property that is renovated must be their primary residence. Ryan, who has split from Candy since filming the show, also reportedly owns another house in the same Western Sydney suburb.</p>
<p>Townsville team Maddi and Lloyd also own two homes, according to the magazine, with their property portfolio valued at $940,000. South Australians Mel and Bomber reportedly have three homes between them. The magazine estimates that Bomber’s other home is worth around $400,000, while Mel also has a home in Adelaide.</p>
<p><em>Woman’s Day </em>claims that Melbourne couple Lisa and Adam have a $520,000 four bedroom house outside Melbourne’s CBD, bringing their property holdings to $1.2 million. Griggs says that house was purchased by Adam with his father, but that Adam sold his share of the property when he purchased the house seen on the show.</p>
<p>Meanwhile, it seems that eliminated contestants Brooke and Grant, at times portrayed as the villains of the series, are the only couple without other property holdings. The farmstead that houses their seven children appears to be the couple’s only residence. </p>
<p>While Channel Seven has released <a href="/expert-insights/building/channel-7-s-house-rules-the-contestants-and-their-mortgages">the mortgages associated</a> with the homes renovated on the show, it is unclear how much debt is attached to the contestant's other properties. </p>
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House Rules contestants hardly on struggle street, say critics

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<p>With the end of the financial year on our doorstep, tax deductions are on everyone’s mind.</p>
<p>If you own an investment property, depreciation is one of the major tax deductions available to you. As your property wears out, you can claim that loss against your taxable income.</p>
<p>Depreciation claims change the amount of tax property investors need to pay on their income. So if your income tax rate is 37 cents to the dollar, and you make a $10,000 deduction on your investment property, you can get $3,700 cash back at the end of the financial year.</p>
<p>Although all property investors hope that their property will increase in value over time, depreciation refers to the physical condition of the materials on that property.</p>
<p>Brad Beer, managing director of BMT Tax Depreciation, explains that depreciation can be applied to any investment property that’s being used for income producing purposes.</p>
<p>“The only thing that’s excluded really is your principal place of residence, because it’s not an investment property,” he says. According to Beer, around 80% of investors are not maximising their depreciation deductions.</p>
<p>Some people believe that depreciation can only be claimed on new properties, where the materials may degrade more quickly. However, Beer explains that this isn’t the case.</p>
<p>“Old property definitely still gets depreciation,” he says.  “It doesn’t get as much, it doesn’t last as long. But there is still depreciation there. We should be able to look at it, and ask a few questions about your property, to see if there are any deductions there and it’s worth going through the exercise.</p>
<p>“The age of the property does matter, for certain reasons, for what you’re going to be able to claim. But it’s not a ‘you get it or don’t get it’, it’s a ‘you get a bit more, or you get a bit less’ sort of situation.”</p>
<p>When owners renovate their investment property, there are two opportunities to claim depreciation – before the renovations, and after. Beer says that while many people recognise the need to claim depreciation on new items that they’ve installed – the new kitchen unit, or floorboards, they often forget the materials they’ve scrapped as part of their renovations.</p>
<p>“When you bought this property, if you were using it for rent, or for income producing purposes, you had some items in there that were helping to get that income,” says Beer.</p>
<p>“But if you throw them away before their life runs out, the rest of the value that’s left is potentially an instant deduction, all at once, rather than continuing to depreciate.”</p>
<p>The depreciation deductions available are estimated by a quantity surveyor, who prepares a depreciation schedule.</p>
<p>“A quantity surveyor estimates construction costs, traditionally,” says Beer.</p>
<p>“A tax office will accept the cost estimates of a quantity surveyor for the purpose of depreciation. We work alongside the accountant. The accountant doesn’t estimate construction costs, and therefore uses our numbers as part of the overall tax return, and we help to make sure it’s ATO compliant, and get the maximum deduction for the client.”</p>
<p>A quantity surveyor will visit your property and identify everything that is claimable, to maximise your deduction. As experts in depreciation, specialist quantity surveyors, are able to look the condition of a property and its items, with their costs, and assess the available deductions.</p>
<p>According to Beer, once a depreciation schedule is completed, another report is only necessary if  changes are made to the building.</p>
<p>“If you change what’s there, even if you throw away one dishwasher, and put a new dishwasher in, you’re kind of changing the depreciation a little bit,” he says.</p>
<p>“We don’t need to come and visit and look at one new dishwasher. But we may need to adjust the report and we can adjust your tax return.”</p>
<p>For investors who are unsure whether the cost of engaging a quantity surveyor is worth the available depreciation deduction, especially on older properties, Beer recommends getting an estimate from a quantity surveyor before they visit the site, using photographs, estimates of the cost of items, and previous depreciation claims.</p>
<p>“A quantity surveyor should be able to give you a rule of thumb pretty easily on what sort of deductions should be there,” says Beer.</p>
<p>“And normally they should back their work after that, and go ‘If I can’t get some deductions, you shouldn’t have to pay for the report.’”</p>
<p>As accountants use depreciation reports when they’re preparing your taxes, it’s important to consult them about your quantity surveyor.</p>
<p>“By all means, have a discussion with your accountant before you ever engage with a quantity surveyor to do your depreciation schedule,” says Beer. Your accountant may be able to recommend a quantity surveyor to you, or show you examples of reports they’ve worked with before.</p>
<p>For those who have forgotten to claim depreciation in the past, or who have guessed the level of claimable depreciation rather than engaging a quantity surveyor, it is possible to back date your depreciation claims – to an extent. Amendments can be made to tax returns for the past two years, if you haven’t been maximising your depreciation claims. For more information on tax claims related to your investment property, see the <a href="https://www.ato.gov.au/uploadedFiles/Content/MEI/downloads/ind00342353n17290613.pdf" target="_blank">Australian Tax Office's website</a>. </p>
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Your guide to property depreciation

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<p>A 27 year old woman allegedly robbed a real estate agent at an open house in Surfers Paradise this weekend.</p>
<p>According to <em>The Courier Mail,</em> police allege Amy Lee Niwa, 27, of Carrara, attended an open home and pretended to be a buyer. After the real estate agent turned away to note her details, Niwa allegedly pulled out a handgun, making demands for his car keys and phone.</p>
<p>After taking the agent’s keys, the unlicensed driver allegedly went on a shopping spree. A police prosecutor reportedly said Niwa can be seen on CCTV footage from various stores driving into carparks in the stolen car and making purchases using a stolen credit card.</p>
<p>She allegedly spent almost $1000 over that afternoon at Billabong and Hot Brands stores, a bottleshop and a supermarket. Niwa was arrested two days later, after being reported by a member of the public.</p>
<p><em>The Courier Mail </em>reports that Niwa allegedly admitted to being armed with a 20 centimetre kitchen knife in a jacket sleeve, with a syringe and some methamphetamine, with the gun not yet found.</p>
<p>She is accused of committing 21 offences and was refused bail. She was reportedly remanded in custody and will return to court in August.</p>
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Woman allegedly commits armed robbery at open home

<p>The residential transformation of St Kilda Road is set to continue into with more new apartment plans for the sought-after boulevard.</p>

<p>Wing Tai Asia has lodged plans for a major residential tower at 464-466 St Kilda Road, replacing the former VACC House with an 18-storey mixed-use development designed around a retained heritage podium and a sculpted contemporary tower.</p>

<p>The proposal, prepared under Victoria’s Significant Residential Development with Affordable Housing pathway, would deliver 325 apartments and ground-floor retail across the prominent 4,653 sqm boulevard site in Melbourne’s St Kilda Road North Precinct.</p>

<p>The project centres on the adaptive reuse of the site’s heritage-listed VACC Building, an eight-storey office designed by Bernard Evans that has occupied the address for decades. Planning documents state the development would involve “carefully dismantling and conserving off-site the original metal fabric of the podium visible from St Kilda Road,” before reinstating it as the defining frontage of the new scheme.</p>

<p>Above the restored podium, Wing Tai is proposing a curvilinear residential tower. The scheme includes 172 one-bedroom apartments, 63 two-bedroom apartments, 66 three-bedroom apartments, and 24 four-bedroom apartments, alongside two ground-floor food and beverage tenancies fronting St Kilda Road.</p>

<p>The tower has been designed with substantial articulation and variable setbacks to minimise perceived bulk and maintain view corridors along the boulevard. Urbis, which prepared the planning report, said the design “has been significantly articulated through a curvilinear design” with “an interplay with materials, façade expression and depth” to create visual separation and visual interest.</p>

<p>The proposal also includes 254 basement car spaces, landscaped pedestrian links connecting St Kilda Road and Queens Lane, and a biophilic landscape strategy featuring canopy trees, raised planters, cascading greenery and a glass oculus pool overlooking the eastern frontage.</p>

<p>Planning documents confirm the $270.1 million development will contribute 3 per cent of project costs to the Social Housing Growth Fund as part of the application process.</p>

<p>Wing Tai acquired the St Kilda Road property in 2018 alongside Abacus Property Group for $95.38 million, before later consolidating ownership of the site. The property previously served as the Victorian Automobile Chamber of Commerce headquarters for around 60 years.</p>

<p data-end="345" data-start="110">The transformation of the St Kilda Rd boulevard is already beginning to materialise, with a number of high-profile projects recently completed, launched, or approaching launch as developers continue to back the long-term appeal of the precinct.</p>

<p data-end="689" data-start="347">Among the most notable recent completions is Louise by Samuel Property Group, just off the strip on Queens Lane, the same pocket Hirsch &amp; Faigen recently launched The Queensbury. Mirvac is too on the same street with The Albertine, which is approaching completion.</p>

<p data-end="689" data-start="347">Dexus recently secured approval for its slice of St Kilda Road, while Gurner also has approved plans for the precinct.</p>


Joel Robinson

Wing Tai unveils 325-apartment St Kilda Road tower on former VACC House site

<p>Malaysian developer <a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> is the latest to jump into St Leonards booming Transport Oriented Development precinct.</p>

<p>The developer, which has previously delivered Sapphire by the Gardens apartment development in Melbourne, identified the Atchison Street site in 2023. It filed a Scoping Report around 12 months ago, and now has revealed the designs for the new&nbsp;40-storey mixed-use tower.</p>

<p>The State Significant Development Application covers <a href="https://next-portal.urban.com.au/projects/14650/summary">20-22 Atchison Street</a>, a 1,374 sqm site positioned between St Leonards Station and the new Crows Nest Metro station.</p>

<p>Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the project would deliver 181 apartments, above a four-storey commercial podium, five basement levels, and new public domain works along Mitchell Street. The apartment mix comprises 35 one-bedroom apartments, 39 one-bedroom-plus-study apartments, 85 two-bedroom apartments, and 22 three-bedroom residences.</p>

<p>The proposal has been lodged as a shop-top housing development under the NSW Government’s TOD planning pathway, which allows increased density around key transport infrastructure. The site sits within the recently rezoned Crows Nest Accelerated TOD Precinct.</p>

<p><img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b799673d-48e2-46b0-801a-0e33a9330100" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20site.png?VersionId=dPh0UfwfaHpbFL1R7H1cbZNbIW0CHbCC" /></p>

<p>SP Setia acquired the Atchison Street site as part of its continued expansion into the Australian apartment market. In comments made to City &amp; Country (The Edge Malaysia) in 2023, SP Setia President and CEO Datuk Choong Kai Wai described the acquisition as “a strategic move” aligned with the group’s post-pandemic market recovery strategy.</p>

<p>“Our target for this exceptional development is local and overseas buyers, including first-home buyers, downsizers and investors,” Choong said.</p>

<p>The tower has been designed as a slender vertical form rising from a mixed-use podium, with COX Architecture positioning the development as a response to the evolving St Leonards and Crows Nest skyline.</p>

<p>“The purpose of the project is to facilitate the delivery of high-quality housing at a strategically located site and deliver a built tower outcome that is consistent with the desired future character of St Leonards and aligns with the TOD controls,” the design report stated.</p>

<p><img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b1a85eee-76f7-436c-a6da-73ba827b9b13" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20entry.png?VersionId=dA9jHGPMcm.dDbwk4QfxqWiY5bfh3UVt" /></p>

<p>The podium would incorporate retail uses fronting Atchison Street, commercial tenancies, landscaped communal areas, and pedestrian improvements along Mitchell Street. Vehicle access and loading would be consolidated via Atchison Lane.</p>

<p>Residents would have access to more than 665 sqm of communal indoor and outdoor spaces, while the development proposes 96 parking spaces across five basement levels.</p>

<p>The proposal also includes a commitment for 10 per cent of residential floor space to be allocated toward affordable housing through a monetary contribution.</p>

<p>COX said the tower form responds directly to the emerging high-density character of the precinct while seeking to maximise solar access, cross ventilation, and outlook from apartments.</p>

<p><img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="2163f85c-f63b-4be3-aafa-f8763976cec5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29_5.png?VersionId=WiAmtIKJ6.ZQ41EtYEQ1fol7AeorKBlL" /></p>

<p>“The building is orientated towards north,” the Apartment Design Guide compliance report noted, adding that the tower’s slim form was driven by the constrained inner-urban site dimensions.</p>

<p>The design also incorporates landscaped setbacks and communal open space at podium level, intended to soften the interface with surrounding streets and improve pedestrian amenity.</p>

<p>The project adds to a growing wave of redevelopment proposals reshaping St Leonards and Crows Nest following the opening of the Sydney Metro City line and the NSW Government’s push for higher-density housing around major transport nodes.</p>

<p>Last week Stockland filed plans just down the road. They want to build a <a href="https://www.apartments.com.au/new-apartments/601-pacific-highway-st-leonards-nsw-2065">52-storey tower on Pacific Highway</a>.</p>

<p><em>Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">First look: Stockland plans 52-storey, 538-apartment St Leonards tower&nbsp;</a></em></p>


First look: SP Setia targets St Leonards skyline with 40-storey TOD tower

<p><a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> has revealed plans for a new mixed-use tower at 10 Dangar Street, Wickham, advancing a proposal that would reshape the southern gateway to Newcastle’s city centre with one of the city’s tallest residential buildings.</p>

<p>The State Significant Development proposal, now on exhibition, seeks approval for a <a href="https://www.apartments.com.au/new-apartments/bowline-10-dangar-street-wickham-nsw-2293">43-storey tower</a> immediately adjacent to the Newcastle Interchange. The project would deliver around 200 apartments, including 42 affordable housing dwellings, alongside 99 co-living units, a 171-room hotel, retail space, and new public domain integrated through the site.</p>

<p>The scheme marks a significant escalation of plans previously approved for the site. Urban Property Group took over the prominent 2,904 sqm parcel, where excavation and demolition had already commenced under an earlier consent for a 14-storey mixed-use development.</p>

<p><img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="58a96dd9-407f-4d20-86b4-94e4bfeef74b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20podium.png?VersionId=LGlf08pdFGAZDzvx_CXC4XakHNZRuEE0" /></p>

<p>Designed by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, the tower has been conceived as a landmark transit-oriented development anchored to the Newcastle Interchange precinct. The proposal includes 245 build-to-sell apartments across a mix of one, two, and three-bedroom residences, as well as two penthouses. Fifteen apartments and one operational unit are earmarked for NDIS housing. The co-living component would add a further 99 units, while the podium would accommodate retail uses and hotel facilities.</p>

<p>SJB said the site presents “a valuable opportunity to anchor the precinct by setting the standard for design, active ground planes and character at the key southern gateway.”</p>

<p>The architecture responds directly to the site’s position beside major transport infrastructure and within one of Newcastle’s fastest-evolving urban renewal precincts. The tower form sits above a sculpted podium designed to frame new public spaces, including a through-site pedestrian link connecting Station Street to Hannell Street, landscaped plazas, and activated retail edges.</p>

<p><img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="a7bd6ff0-f7db-4ce8-a6dc-ea56e72c6149" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20lanne.png?VersionId=xzf39VADyhj7zBQY2I9fx9vI62u2tuSb" /></p>

<p>The design report describes the project as part of the broader transition of Wickham into “a vibrant, high-quality mixed-use urban precinct” that leverages proximity to the station, open space, and regional connectivity.</p>

<p>A detailed public art strategy has also been prepared for the development. The strategy positions the project as “a transit-oriented development of state significance at the gateway to Newcastle’s city centre” and outlines a series of integrated artworks responding to Newcastle’s industrial and transport heritage.</p>

<p>Creative Road’s curatorial framework for the project, titled Unveil, draws on “stratified surfaces, carved volumes, and light-filled apertures” while referencing Newcastle’s transformation from an industrial city into a contemporary education and technology hub.</p>

<p><img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="77a882bb-14b1-4d28-99ff-9438e39508c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20site.png?VersionId=cevgo_vN0eKPK78P8YcEu3mKPLkpFqE7" /></p>

<p>The proposal is being advanced through the NSW Housing Delivery Authority pathway after being declared State Significant Development in June 2025. The accompanying scoping report states the development aims to “maximise the site’s proximity to the Newcastle Interchange by delivering transit-oriented development” while increasing housing supply and affordable housing provision within the Newcastle LGA.</p>

<p>Urban Property Group’s plans align with the long-term strategic vision established under the Wickham Master Plan, which identified the interchange precinct as suitable for substantial uplift in height and density. The current proposal would significantly intensify that vision, positioning the tower among the tallest developments proposed for Newcastle.</p>

<p>The site sits immediately north of the Newcastle Interchange, bounded by Dangar Street, Hannell Street, and Charles Street. It is surrounded by a rapidly growing cluster of residential towers and mixed-use projects that have emerged following the completion of the light rail and transport interchange.</p>


First look: Urban Property Group unveils Newcastle’s latest tower at Wickham interchange

<p>Bottega House has completed settlement of a landmark riverfront site in Macquarie Street, St Lucia, representing its first major Brisbane development.&nbsp;</p>

<p>Positioned on the banks of the Brisbane River, the <a href="https://www.apartments.com.au/new-apartments/180-macquarie-street-st-lucia-qld-4067">premium site at 180 Macquarie Street</a> features uninterrupted river frontage in one of Brisbane’s most tightly held residential precincts.&nbsp;</p>

<p>The proposed development, currently under assessment with Brisbane City Council, has been designed by <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/mim-design">Mim Design</a> and will deliver a boutique collection of premium residences positioned specifically for owner occupiers and downsizers.&nbsp;</p>

<p>The residences are set to redefine luxury apartment living in the area, with a focus on architectural quality, refined finishes, landscape integration and elevated amenities including curated wellness facilities, resort-style pools and recreation spaces rarely seen in the local market.&nbsp;</p>

<p>Exclusive sales for the project will be led by Keenan &amp; Byrne, ahead of an anticipated launch later this year.&nbsp;</p>

<p>Bottega House Managing Director Nick Malloch said the project reflects the group’s ambition to deliver a highly curated residential offering within one of Brisbane’s most tightly held precincts.&nbsp;</p>

<p>“This is an incredibly rare riverfront opportunity and one we have approached with a long-term perspective,” Malloch said.&nbsp;</p>

<p>“Our vision from the outset was to create a boutique collection of residences that feel more like private homes than traditional apartments, with generous proportions, refined finishes and exceptional amenity throughout."</p>

<p>Malloch says there is a&nbsp;lack of premium owner-occupier stock of this quality in the market, particularly for downsizers wanting space, privacy and a true lifestyle offering without compromise.&nbsp;</p>

<p>"Demand is expected to be strong given the scarcity of premium riverfront opportunities of this nature within Brisbane’s inner-west."&nbsp;</p>


Bottega House secures landmark riverfront site in St Lucia 

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<p data-end="157" data-start="0">The arrival of the first piling rig officially marks the commencement of construction at SIERA’s new beachside apartment development, Exhale, in Northcliffe.</p>

<p data-end="459" data-start="159"><a href="https://www.apartments.com.au/new-apartments/exhale-surfers-paradise-8-enderley-avenue-surfers-paradise-qld-4217">Exhale</a>, a glass-encased tower featuring 54 large-scale apartments at 8 Enderley Avenue, is SIERA’s third Gold Coast development. It follows the recently completed PIPIS Bilinga beachfront project, which achieved suburb-record prices, and the soon-to-be-completed Chevron Island development, Tapestry.</p>

<p data-end="459" data-start="159">[smartcode_project:default project_id=112661 project_image_fid=359603]</p>

<p data-end="651" data-start="461"><a href="https://www.apartments.com.au/developers/siera">SIERA</a> Founder and Managing Director Brent Thompson said the arrival of the piling rig represented a significant milestone for the development, which is scheduled for completion in late 2028.</p>

<p data-end="950" data-start="653">Over the next month, around 260 piles are expected to be installed as work progresses on the basement structure. The building is anticipated to rise above ground level early next year, before unveiling its sculptural glass curtain wall, developed in collaboration with specialist façade engineers.</p>

<p data-end="1081" data-start="952">“The façade was designed to maximise panoramic coastal views while creating a distinctive architectural identity,” Thompson said.</p>

<p data-end="1081" data-start="952">[smartcode_project:default project_id=112661 project_image_fid=355935]</p>

<p data-end="1307" data-start="1083">Designed by BDA Architecture, Exhale will comprise just 54 two- and three-bedroom residences across 26 levels, a level of low-density living rarely delivered in this beachside pocket between Surfers Paradise and Broadbeach.</p>

<p data-end="1522" data-start="1309">The project has been conceived as a resident-only building, with no short-stay accommodation permitted. SIERA says the model is intended to appeal to long-term owner-occupiers rather than transient holiday demand.</p>

<p data-end="1522" data-start="1309">[smartcode_project:default project_id=112661 project_image_fid=361052]</p>

<p data-end="1714" data-start="1524">Residences have been designed with large-format layouts and expansive glazing, with most apartments featuring more than 30 metres of glass frontage to maximise natural light and ocean views.</p>

<p data-end="1945" data-start="1716">The amenity offering spans two levels and centres on wellness and lifestyle, including a heated magnesium pool, sauna, yoga and Pilates studio, gymnasium, private dining facilities, cinema lounge, and dedicated surfcraft storage.</p>

<p data-end="1945" data-start="1716">[smartcode_project:default project_id=112661 project_image_fid=359607]</p>

<p data-end="2220" data-is-last-node="" data-is-only-node="" data-start="1947">More than half of the apartments have already sold. SIERA has also opened a sales gallery for Exhale at its Chevron Island commercial premises, near its Tapestry tower and the site of its second Chevron Island apartment development, which is slated to launch in early 2027.</p>
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<p>[smartcode_project_cta:default project_id=112661]</p>


Jessie Richardson

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