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According to home loans database <a target="_blank" href="https://mozo.com.au/">Mozo.com.au</a>, 20 lenders have cut their interest rates since the start of 2014.
Despite <a target="_blank" href="/news">predictions that the RBA will leave rates on hold</a>, lenders including NAB and Westpac have cut their rates in the past month, perhaps signalling a new level of competition in the lending market for 2014.
Out-of-cycle rate movements have been confirmed by loan comparison website <a target="_blank" href="https://www.ratecity.com.au/">Ratecity.com.au</a>, which noted a number of rate hikes by lenders late last year. Ratecity.com.au chief executive Alex Parsons said that  since October 2013, 73 variable home loan rates have increased by as much as 0.52 percentage points, with 550 fixed rates increasing in that time.
Parsons agrees that rate cuts early this year signal aggressive competition. “Home loan lenders are competing aggressively for business and rates are at historical lows,” he said.
“Five smaller lenders have dropped some of their variable home loan rates in the past month, and 66 variable rates have been lowered since October,” said Parsons.
news@propertyobserver.com.au
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jrichardson-uRX5hFdKfN

Lenders make out of cycle rate cuts ahead of RBA announcement

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The Reserve Bank of Australia (RBA) has announced that the <a target="_blank" href="https://www.propertyobserver.com.au/news/reserve-bank-keeps-rates-on-hold-in-first-meeting-of-the-year/2014020467523?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news">cash rate will remain unchanged this month</a>.
Ahead of the first RBA board meeting of the year, we asked a team of experts to predict the RBA’s decision. They all came back with the same answer – in February, the cash rate will stay put. Citing the economy’s shift from the resources sector to housing, historically low interest rates and the weakening Australian dollar, our experts all had it right.
<a target="_blank" href="https://www.propertyobserver.com.au/news/february-statement-by-glenn-stevens-governor-monetary-policy-decision/2014020467526?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=newsplus">RBA governor Glenn Stevens said</a> that "since the Board's previous meeting, information on the global economy has been consistent with growth having been a bit below trend in 2013, but with reasonable prospects of a pick-up this year."
Shane Oliver – Head of investment strategy and chief economist, <a href="https://www.ampcapital.com.au/home" target="_blank">AMP Capital</a> <img style="float: right;" width="125" height="150" src="/images/stories/2013/10/25/shane-oliver-profile.jpg" alt="shane-oliver-profile">
<img src="/images/stories/2014/02/04/green-tick-small.jpg" width="33" height="35" alt="green-tick-small" style="float: left;">WE’VE SEEN CLEAR EVIDENCE THAT INTEREST RATE CUTS HAVE STARTED TO GAIN TRACTION
I think they’ll leave the rate on hold – and there are several reasons. Firstly, the last rate cut was now back in August – it’s been about six months with rates on hold. Given that the Reserve Bank has already cut interest rates to record lows, it’s unlikely that they’ll like to drop them further.
I think the reality is that over recent months, we’ve seen clear evidence that interest rate cuts have started to gain traction. Housing prices picked up in the last quarter of last year, and there’s now evidence that interest rate cuts have flowed through to housing construction activity.  Consumer and business confidence has also bottomed out, while retail is beginning to pick up. The strong Australian dollar was a concern, but we have seen that weaken – in fact, last week we saw the Australian dollar drop below US 88 cents, for the first time since 2010. That coupled with strong indicators in the economy will leave the Reserve Bank feeling confident.
We might see rate hikes in the December quarter, perhaps around October. Right now, the economy is still probably not strong enough for an interest rate increase. We’ll be looking at at least 12 months of rates on hold.
 
Angie Zigomanis – Senior manager, residential, <a href="https://www.bis.com.au" target="_blank">BIS Shrapnel</a> <img style="float: right;" alt="Angie-Zigomanis--porfile" height="150" width="125" src="/images/stories/2013/10/25/Angie-Zigomanis--porfile.jpg">
<img style="float: left;" alt="green-tick-small" height="35" width="33" src="/images/stories/2014/02/04/green-tick-small.jpg">UNDERLYING INFLATION IS STILL LIKELY TO BE AT A COMFORTABLE LEVEL FOR THE RESERVE BANK
We do not expect the Reserve Bank to change interest rates at its February meeting. Headwinds still face the Australian economy. Resource sector investment is estimated to have peaked and is now tapering off, while growth in other sectors of the economy is not yet picking up at a pace to sufficiently offset this decline in the short term.
Nevertheless, there are signs that the current levels of interest rates are doing their job. After declining in 2011 and 2012, house prices have stabilised and have been growing in some cities in 2013. This is encouraging new dwelling activity, with an upturn in residential construction nationally now appearing to be entrenched.
While inflation for December was a little higher than most analysts expected, there were some “one-off” factors that helped to drive the numbers, and underlying inflation is still likely to be at a comfortable level for the Reserve Bank. As a result, we expect the cash rate to be held at current levels for now.
Article continues on next page. Please click below.
 
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Cameron Kusher – Senior research analyst, <a href="https://www.rpdata.com/" target="_blank">RP Data</a> <img style="float: right;" alt="cameron_kusher_new" height="156" width="125" src="/images/stories/2014/01/28/cameron_kusher_new.jpg">
<img style="float: left;" alt="green-tick-small" height="35" width="33" src="/images/stories/2014/02/04/green-tick-small.jpg">WE COULD SEE AN INCREASE IN THE INTEREST RATE LATER THIS YEAR
Obviously [the other week] we had some pretty confronting results. I think inflation is a lot higher than people expected. But I think generally rates will be on hold for the next few months. The RBA will want further evidence that inflation is growing, and that the economy is picking up.
They’ve said all along that what they’ve wanted to see from interest rate cuts is a handover from the resources boom to the housing sector, which they’re getting. We’re seeing higher home values.
So the likelihood is that rates will stay still for the next few months. But we could see an increase in the interest rate later this year. The RBA are pretty concerned with just how quickly Melbourne and Sydney have been growing over the past year. If home values continue to accelerate, that could move them to increase rates.
At the moment we’re seeing 2.7% annual inflation. If that starts heading up to the higher end of their target band, that would also impact interest rates. And with the Australian dollar dropping, we might start importing inflation from overseas.
Any increase in the interest rate won’t happen til the second half of the year at the absolute earliest – most probably late in the year.
 
Alex Parsons – Chief executive officer of <a href="https://www.ratecity.com.au/" target="_blank">RateCity</a> <img style="float: right;" alt="alex-parsons-profiel" height="150" width="125" src="/images/stories/2013/11/15/alex-parsons-profiel.png">
<img style="float: left;" alt="green-tick-small" height="35" width="33" src="/images/stories/2014/02/04/green-tick-small.jpg">A CUT IS OFF THE CARDS
I hate to be boring, but there will be no change in February. I think based on the inflationary figures that just came out, coupled with the property market, particularly in Sydney, a cut’s off the cards.
If we do see any movement, it’ll be a rise, but it’s too early for that – that will happen towards the end of the year. But obviously a lot can happen between now and then, in Australia’s economy and internationally.
For now though, the interest rate will stay put. Especially if we see the positivity in the market continue, and now that the dollar’s back in the range they’d like to see. Interest rates are at record lows – the RBA won’t be making any cuts over the next six to eight months.
But overall, consumers shouldn’t worry about RBA changes – they aren’t always passed on by the institutions anyway. Get out there and find out what rate you’re on, and compare it with what else is out there. You can save yourself some money, both on the borrowing side and the lending side.
And if you don’t have a four in front of your home loan interest rate today – get out and get a better one.
Article continues on next page. Please click below.
 
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Andrew Wilson – Senior economist, <a href="https://apm.com.au/" target="_blank">Australian Property Monitors  <img style="max-width: 480px; float: right;" alt="AndrewWilson-profile" height="150" width="125" src="/images/stories/2013/10/04/AndrewWilson-profile.jpg"></a>
<img style="float: left;" alt="green-tick-small" height="35" width="33" src="/images/stories/2014/02/04/green-tick-small.jpg">THE IMPROVEMENT TO ECONOMIC ACTIVITY REMAINS A WORK IN PROGRESS
Interest rates settings have been a critical element driving the ongoing revival of Australian housing markets over the past year. Cuts to interest rates in May and August 2013 to the lowest levels in 60 years fuelled home buyer and investor activity with prices growth accelerating in all capital city markets over the second half of the year.
The easing of interest rates over the past two years has been a monetary policy initiative designed to stimulate economic activity in the face of the decline in the construction phase of the mining boom that has underscored economic growth in recent years.
Easier interest rate policy was also designed to reduce the relatively high value of the Australian dollar and increase the competitiveness of Australian goods and services in export markets.
Although lower interest rates are typically a catalyst for house price growth through improved affordability,  this is designed to be offset by an increase in dwelling construction to ameliorate short-term supply-demand imbalances that adds to prices growth – and also to add to economic activity.
The improvement to economic activity through lower interest rates remains very much a work in progress which leaves further scope for another easing in monetary policy through lower interest rates.
Employment in the major states of New South Wales and Victoria continues to deteriorate. Latest ABS data reports that the number of people with jobs in both those states has declined disturbingly over the past year and continues to trend downwards.
Dwelling construction as expected has improved recently although most of the increase in activity has been in planned apartment construction in Sydney and Melbourne which will not add to the stock of housing or economic activity in the short-term. The number of new houses approved remains underwhelming considering the level of stimulus in the market.
The Reserve Bank will likely wait until more data becomes available on the unfolding underlying nature of the economy in 2014 so an interest rate cut is unlikely in February. Although interest rates are likely to remain stable over the short-term the risks remain for another easing in monetary policy particularly if the New South Wales unemployment rate climbs above 6%.
There is certainly no realistic prospect in the foreseeable future of a rise in official interest rates despite the emergence of rising inflation.
<a href="mailto:news@propertyobserver.com.au" target="_blank">news@propertyobserver.com.au</a>
 
 
 
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Interest rate stays on hold: Did our experts get it right? 

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The ACT Civil and Administrative Tribunal have decided in favour of the ACT Heritage Council’s decision to not list a group of residential buildings in Turner.
Members of the Turner Residents Association launched an appeal against the ACT Heritage Council’s decision, after they sought the heritage listing of the properties in August 2012. With the support of the National Trust of Australia (ACT), residents nominated the precinct for its Garden City design values.
In 2013, the ACT Heritage Council decided against giving the properties heritage status, citing better examples of Garden City planning in Canberra. Henry Gardner and Nicola Watson, of the Turner Residents Association, lodged an application of review of the decision.
At the recent hearing, Gardner and Watson argued that the Turner precinct should be preserved as an example of Garden City planning, a form of urban design implemented by town planners in the early 1900s.
However, the council claimed that the precinct in question in Turner was not distinguishable from other examples of Garden City planning in Canberra, and in some aspects was inferior in execution, or damaged. They also noted that significant redevelopment had already occurred, damaging the integrity of the precinct’s historical significance.
The tribunal agreed with the council that the Turner precinct did not meet the Heritage Act’s criteria for a heritage listed precinct, confirming the council’s decision.
In the past, Gardner, Watson, and other members of the Turners Residents Association have voiced their concern over new property developments in Turner.
<a href="mailto:jrichardson@propertyobserver.com.au" target="_blank">jrichardson@propertyobserver.com.au</a>
 
 
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Residents’ bid to attain heritage listed status for Turner turned down

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According to the Real Estate Institute of Queensland (REIQ), vacancy rates are up across most of the state as the sales market picks up.
The vacancy rate in the Brisbane City local government area was at 3.2% at the end of December, up from September’s 2.3%, displaying “healthy levels of supply and demand”, according to the REIQ. The highest quarterly increase in the vacancy rate was recorded in inner Brisbane (suburbs within 5 kilometres of the CBD), which climbed 1.7 percentage points to 4.1%.
According to REIQ chairman Rob Honeycombe, new developments in Brisbane’s inner suburbs may have led to a slight oversupply of rental stock, while a decrease in interest from tenants is typical of the final quarter of the year.
“At end of the year we generally experience lower tenant demand as residents vacate for work transfers or the end of the university year. From mid-January, demand increases again as tenants begin their search for their new property,” he said.
The REIQ Residential Rental Survey was conducted in December across all of the state’s REIQ accredited agencies. Across the greater Brisbane area, about 40% of agents surveyed reported that investor activity had increased, but demand from tenants had remained strong, allowing vacancy rates to remain low.
The REIQ survey data shows that regional Queensland’s mining towns are experiencing substantially higher vacancy rates. Gladstone agents surveyed noted a surplus of rental property, with the Gladstone vacancy rate at 7.7% at the end of December. In September 2013, the vacancy rate in Gladstone was recorded as 5.8%, while it sat at 2.1% in December 2012.
Mackay also recorded a vacancy rate of 7.7%, due to a combination of oversupply and job losses. September’s vacancy rate for Mackay was at 5%. REIQ agents reported low application numbers for rental properties, with properties taking more than four weeks to fill.
However, conditions were favourable for landlords in Toowoomba, where a vacancy rate of 1.3% was recorded for December. Vacancy rates were also low in the Gold Coast, with a decrease of 0.4 percentage points since September, and the Sunshine Coast, where vacancy rates were down 0.3 percentage points.
Honeycombe noted that Queensland’s rental market has performed well in recent years, especially in comparison to the sales market.
“Over the past few years, it has been the rental sector which has been the better-performing segment of the market,” Honeycombe said.
“Now while the sales market returns to healthy levels of activity after a period of subdued volumes, the rental market is experiencing a slight easing of vacancy rates after a long period of tight rental conditions.”
<a href="mailto:jrichardson@propertyobserver.com.au" target="_blank">jrichardson@propertyobserver.com.au</a>
 
 
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Queensland’s rental market easing: REIQ

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The Proximity Hamilton development in Brisbane has sold $4.6 million worth of apartments in 30 days. 
Developed by Oakstead Property Investments, Proximity Hamilton will have 127 one and two bedroom apartments over 14 storeys. Many of the Cottee Parker Architects designed apartments in the Portside Wharf development will have water views. The building will also include a pool and outdoor entertaining areas.
According to Urbis associate director John Rivera, the area has traditionally enjoyed strong residential growth, while apartments in the Hamilton catchment area were priced above Brisbane’s median sales price.
“Hamilton apartments have shown largely uninterrupted price growth since the early 1990s, with capital appreciation averaging 8.8% per annum over the previous decade,” said Rivera.
Currently selling off the plan, 39 apartments have so far been sold, with total sales reaching $17.9 million. Prices begin at $330,000 for a one bedroom, 60 square metre apartment, while a two bedroom, two bathroom, 104 square metre apartment in the complex is selling for $655,000.
Buyers will have a choice of two colour schemes for their apartments, which also include floor to ceiling windows and European appliances.
<a target="_blank" href="mailto:jrichardson@propertyobserver.com.au">jrichardson@propertyobserver.com.au</a>
For the latest development listings, brought to you by Property Observer and partners, see our <a href="https://showcase.propertyobserver.com.au/" rel="nofollow">Investor Showcase</a>.
Images are artist impressions.
 
 
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Proximity Hamilton records $4.6 million in sales for January

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The first week of February looks to be a busy one for property investors. We look at the dates to keep in mind, and what the indicators might mean for you.
February 2: RPData/Rismark Home Value Index
Marking home price trends by suburb, postcode, capital city and state, the RPData/Rismark Home Value Index is released on a monthly and quarterly basis. CommSec expects that the latest release may show a price lift of 0.8% in January.
February 3: TD Securities inflation gauge (January), ABS building approvals (December), ANZ job advertisement data
The TD Securities and the Melbourne Institute have devised their inflation gauge to indicate monthly movements in the inflation rate, with a one month lag. As always, keeping an eye on inflation will allow investors to have a better idea of future interest rates.
As we’ve <a target="_blank" href="/news">noted before</a>, increasing building approval rates can indicate a possible oversupply of property in the future. It’s expected that approval rates stayed flat in December.
February 4: Reserve Bank of Australia (RBA) board meeting
The RBA cut the official cash rate last August to an <a target="_blank" href="/news">all-time record low of 2.50%</a>.
Since then rates have remained on hold and our <a target="_blank" href="/news">experts predict</a> that the cash rate will remain unchanged this month.
February 6: ABS international trade data (December) and retail trade data (December)
Thursday’s data releases will help investors gauge the state of the economy. We’ll find out the extent of the country’s trade deficit (CommSec is expecting the deficit to near $350 million), and whether retail sales have increased in the last quarter.
February 7: RBA statement on monetary policy
Investors will have a better idea of the RBA’s monetary policy stance after Friday. It remains to be seen whether the RBA is comfortable with the December quarter’s <a target="_blank" href="/news">higher than expected</a> inflation figures. 
jrichardson@propertyobserver.com.au
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For the diary: The big dates in property for the first week of February

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Metro Development’s Madison Heights project has reached $105 million in sales, after settling 246 of its 308 apartments in five weeks.
The Bowen Hills apartment complex was developed by Metro Property Development in conjunction with Pearls Australasia. The development, set over 30 storeys, also includes 760 square metres of retail and dining space in addition to outdoor entertaining areas.
Metro Property Development’s managing director Luke Hartman noted the importance of Madison Height’s location in Brisbane’s growing market.
“Although the Brisbane market is picking up, quality apartments in the inner-city are still a rare commodity,” he said.
According to Hartman, the project’s situation in Bowen Hills has also attracted retailers, with IGA, Subway and liquor retailer Cellabrations signing long term leases.
<a target="_blank" href="mailto:jrichardson@propertyobserver.com.au">jrichardson@propertyobserver.com.au</a>
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Madison Heights development sells 80% of stock

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Property buyers of Chinese descent find no shortage of coverage in the Australian press. Chinese investors are accused of inflating house prices and developing huge, tasteless properties. Wherever they go, they leave swathes of weeping would-be first home buyers in their wake, while bloggers want to make sure they don’t get their hands on <a href="/news">our heritage properties</a>.
According to Fairfax’s Paul Sheehan, the mere sight of Chinese buyers at an auction is enough to make one’s heart sink; even if one happens to be a high-income executive, with a partner on a good income.
As we’ve <a href="https://www.propertyobserver.com.au/news/letter-from-the-editor-talking-about-foreign-buyers/2013112966687" target="_blank">noted before</a>, when people write about “Chinese buyers”, they never quite seem to be sure whether they’re referring to Chinese residents, Australian born buyers of Chinese descent, Chinese expats who have Australian citizenship, or just people who show up to auctions with black hair. But whoever they are, we do know that they are “cashed up”, they “swoop” on properties and “attack”, “rock”, “take over” or “flood” the market.
Australia’s Foreign Investment Review Board (FIRB) approved $4.09 billion worth of real estate for purchase by Chinese citizens in 2010-11, placing Chinese buyers behind those from UK (non-Australian citizens), who made $4.61 billion worth of approved property acquisitions in the same period.
However, the FIRB’s figures don’t make a distinction between commercial and residential property investment, nor does it take into account the unapproved foreign investment – from China and elsewhere – that undoubtedly occurs. Despite the fever pitch commentary around Chinese buyers (whoever they may be), there are very few statistics available on the prevalence of property investment from buyers of Chinese descent. There is even less empirical evidence to support the claim that buyers of Asian descent are pricing Australian citizens out of the market.
In the face of such a dearth of evidence, media outlets are required to maintain a certain delusion in order to continue trotting out the same tired lines about Chinese investors crippling Australian buyers (who might be struggling first home buyers, or luxury investors, depending on who you ask). The fiction that all buyers of Asian descent are the same – Chinese born, non-citizens, and wealthy  – has to remain if we’re to characterise the increase in property investment by buyers of Asian descent as something that renders “real” Australians victims.
Alternative narratives – the long history of Chinese migration to Australia dating back to the gold rush, Australia’s own situation in the Asia-Pacific, or the benefits of increased activity in the property market to the national economy – are quickly forgotten.
Joseph Ngo is the branch manager of LJ Hooker Glen Waverley. His wife, Judy Thanh Truc, is the branch’s director. Their team, which is expanding with a new branch opening in Doncaster and another in Box Hill, is comprised entirely of bilingual staff. Thanh Truc and Ngo opened the Glen Waverly branch after noticing a gap in the provision of real estate services in suburbs with significant Chinese-speaking populations.
“Of the buyers we encounter, about 90% would be Chinese-language speakers,” said Ngo. But of the Chinese speaking buyers LJ Hooker Glen Waverley caters to, not all are foreign residents.
“At least 30% of those buyers would be from overseas, about 30% are Australian residents, and 40% would travel back and forth.”
Ngo says that of the Chinese speaking buyers his team has encountered, many are looking to purchase properties to rent out, or to redevelop.
His office has also seen its share of mysterious investors.
“We’ve had some foreign buyers who are here for maybe a week – then they disappear for three months. Even their lawyers can’t find them. Then, one or two days before settlement, they rock up and pay,” says Ngo.
Despite the occasional unpredictable buyer, Ngo says that foreign investment has been overwhelmingly positive for his branch.
“The good thing about these buyers is that they’re unconditional. They’ve got the cash to pay upfront, which is fantastic for us. A lot of them do know that they’re buying over market prices, but they want that particular land, or location, or house number – whatever it is. And they’re willing to pay the higher the price.”
According to Australia’s foreign direct investment laws, non-residents can purchase new dwellings directly from developers. They are also able to purchase single blocks of vacant land to build a new home, so long as they commence continuous construction within 24 months of receiving approval. The same conditions apply to buying a block for the development of multiple residences. They cannot purchase a second-hand or established property unless it is uninhabitable and they intend to redevelop.
Temporary residents are able to purchase established residences, so long as they live in the property for the duration of their ownership and don’t rent any part of it out.
Of course, there are ways around this. It’s unclear who exactly is responsible for checking a buyer’s citizenship status when a property is purchased. And with many foreign investors with family members living in Australia it isn’t difficult to park a property under a relative’s name. But according to Esther Yong, the director of ACProperty.com.au, an Australian Chinese-language property listings site, the foreign investors she’s encountered are meticulous about obeying Australia’s regulations.
“We get a lot of calls asking about regulations. They ask a lot of questions and they call the agent to double check, then us again,” said Yong.
But Yong says that there is no single type of buyer that visits the website, which was launched 12 months ago.
“Our main intention was to be a local Chinese website, and our target market is local Chinese speakers,” said Yong. She identifies three main groups in ACProperty’s audience.
“Most are parents, wanting to buy something for their children while they study. Their kid might be starting at Melbourne Uni (sic) and they want to buy around the area. Or maybe their kid is two years old and they’re looking 10 years ahead, trying to get into a good school zone.
“The second type: family migrants. They’re ready to move over, their visa is on the way, with that they’re looking for a family home, mostly in the suburbs. That’s when you hear people asking about the Chinese community in the suburb.”
While suburbs with established populations of people of Chinese descent are popular on Yong’s website, which currently lists properties in Melbourne, Sydney and Queensland, family migrants are beginning to consider neighbourhoods that haven’t been marketed to foreign buyers, like Melbourne’s northern suburbs.
“We’ve noticed that suburbs like <a href="/news">Preston</a> and <a href="/news">Reservoir</a> weren’t very attractive places for buyers - but over a while, buyers tend to notice those areas. They’re quite near the city and they’re not hard to get to,” says Yong.
“Sometimes they call and ask us, ‘but why is it that <a href="/news">Doncaster</a> is more popular? The houses look the same, and they’re the same distance from the city.’”
“The third type is pure investors. They don’t really care about what they’re buying; they just want to move their money to Australia, because it’s a safe investment. They might want two properties in Brisbane, one in Adelaide, and one in Melbourne. They’re after a variety of property.”
Pure investors, says Yong, are motivated by the perceived stability of the Australian economy and the rising price of property in big Chinese cities like Shanghai.
“Some sell their properties in Shanghai and buy here. There are a lot of rules and regulations that have been introduced in the last year that are making these people move their money out of China. But contrary to reports of reckless spending, Yong says that the buyers she encounters are considered and do their research on Australia before jumping into the market.
"Late last year, we were at an expo in China, in a second-tier [smaller] city," Yong says. "There were about a group of 10 people we were speaking to. Then one asked me if the trains were running at a new station in the Western suburbs - and I had no idea!"
It's hard to deny that demand for Australian property from Chinese speaking investors is up. But instead of  reporting on "frenzied" buyers and comparing Chinese speaking investors to "bulls in a China shop", the media should try a diffeArent story.
<a href="mailto:jrichardson@propertyobserver.com.au" target="_blank">jrichardson@propertyobserver.com.au</a>
 
 
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Demand from Chinese speaking investors is up - but that's not the whole story

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<img src="/images/stories/2014/01/30/robina-jan-30-brekaout.jpg" width="470" height="264" alt="robina-jan-30-brekaout">
Construction began earlier this month at the Robina CityVillage project in Queensland. Condev Construction has been appointed to build the first two stages of the $200 million development, comprising 65 of the total 130 terrace homes. The entire development, situated on a four-hectare lakefront site, will be built in four stages.
The second stage of terraces is currently selling, with prices beginning at $449,000. Terraces are designed with open plan interiors, with stacking doors opening to covered outdoor entertaining areas. Stage one terraces have sold out.
The first two stages of the CityVillage project expected to employ around 800 workers across 50 sub-contractors over the next eight months. According to Condev Construction director Steve Marais (pictured below), the company is working to keep pace with the momentum set by sales.
<img src="/images/stories/2014/01/30/robina-jan-30-one.jpg" width="470" height="286" alt="robina-jan-30-one">
“We have an ambitious target to complete the project’s first stage in 20 weeks,” said Maias.
Condev previously completed the Robina Group’s $40 million Paddington Terraces development.
<a href="mailto:jrichardson@propertyobserver.com.au" target="_blank">jrichardson@propertyobserver.com.au</a>
 
 
 
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Construction begins on Robina's CityVillage terrace home development

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The Australian Housing and Urban Research Institute (AHURI) has concluded that an estimated 9% of all Australians aged 50 and over had downsized their dwellings to homes with fewer bedrooms between 2006 and 2011.
Merging the results of a 2011 2,819-participant survey and ABS data, AHURI estimates that the largest proportion of downsizers in Australia (comprise over 81,000 individuals) were between aged between 55 and 64.
Of the participants who had downsized, 47% had moved into a two bedroom home, 10% moved into a one bedroom home, and 1.7% into a bedsit. Individuals who moved downsized into three bedroom homes comprised 42% of all downsizers. However, downsizers generally didn’t move far – 70% of participants moved to a home in the same suburb or region they were previously living in.
Changing lifestyle preferences were the most common factors contributing to the decision to downsize, nominated by 38% of the participants. Other reasons nominated included the inability to maintain a larger house or garden, leaving home, or retirement. Participants also raised health family circumstances, with 12% nominating relationship breakdown as a motivating factor, while 7% reported the illness of a partner or self, and the same proportion nominated their partner’s or their own disability.
The institute raised financial barriers as a disincentive for relocation for senior Australians. In 2006-2011 period, only 18% of Australians aged between 65 and 74 and 16% of those aged 75-74 moved house, while 46% of people aged between five and 54 relocated in the same period. According to AHURI, while some may expect downsizing to free up housing capital for older homeowners, the demand for two-bedroom houses, especially in New South Wales, has driven up housing prices and reduced the financial benefit of downsizing. AHURI also raises the impact of housing capital gains on aged pension eligibility.
AHURI’s full report can be seen <a href="https://www.ahuri.edu.au/publications/projects/p70687">here</a>.
<a href="mailto:jrichardson@propertyobserver.com.au" target="_blank">jrichardson@propertyobserver.com.au</a>
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Older Australians downsizing homes, but barriers still exist

The new <a href="https://www.apartments.com.au/new-apartments/yarraville-green-42-stephen-street-yarraville-vic-3013">Yarraville Green</a> development in Melbourne's inner west is showing that landscaping can be just as influential as architecture, with buyers responding strongly to the garden-first approach adopted from the outset by developer Excelon Projects and the project's design team.

Excelon appointed Six Degrees Architects and landscape architects SBLA to work collaboratively on the development, with a brief to create "a sustainable, design-led building with a focus on community."

That approach has resonated with buyers. According to Next Chapter Director Tom Hirini, who is leading the sales campaign, the landscaped communal garden has become one of the project's defining features, alongside its boutique scale and European-inspired cluster housing concept.

Local downsizers, right-sizers and established families already living in Yarraville and surrounding suburbs have accounted for the majority of purchasers.

[smartcode_project:default project_id=144913 project_image_fid=297740]

Yarraville Green will comprise 53 homes, including apartments and townhomes, arranged around the shared central garden to maximise connections to the landscaped open space. Parking has been moved underground, allowing the ground plane to be dedicated to greenery, pedestrian movement and communal spaces.

The landscape extends well beyond passive planting. Productive garden beds, a pergola, communal gathering spaces, garden sheds and a pet wash have all been integrated into the masterplan, creating spaces designed to encourage everyday interaction between residents.

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The interiors continue Excelon's focus on craftsmanship, incorporating bespoke elements by Melbourne artisans including leadlight detailing by Adadaz, hand-turned timber hardware by Auburn Woodturning and blown-glass lighting by Ruth Allen.

Sustainability has also been embedded throughout the project, with Yarraville Green targeting an average 7-star NatHERS energy rating through passive design principles, rooftop solar servicing common areas and rainwater harvesting for landscape irrigation.

[smartcode_project:default project_id=144913 project_image_fid=297735]

Construction continues to progress at Yarraville Green, with structural works well underway and framing works approaching completion under builder Balmain &amp; Co. The project remains on track for completion in mid-2027.

Apartments at Yarraville Green are currently priced from $625,000, while townhomes start from $1.4 million.

[smartcode_project_cta:default project_id=144913]

Joel Robinson

Garden-led design drives buyer demand at Yarraville Green

National diversified developer Fortis has officially launched Crest &amp; Walker, its latest Brisbane apartment development, with construction now underway on the 20-storey Newstead project.

Award-winning builder BINAH has commenced construction on the Bureau^Proberts-designed building, which will deliver a limited collection of 65 two and three-bedroom apartments on Kyabra Street.

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The project marks Fortis' fourth active residential development in Brisbane, following River House, which is nearing completion, alongside projects in New Farm and Hamilton as the national developer continues to expand its South East Queensland pipeline.

Fortis General Manager – Development Queensland Dan Boman said Crest &amp; Walker reflects the developer's long-term commitment to delivering design-led residential projects in Brisbane's established inner-city suburbs.

"We're proud to be strengthening our presence in Brisbane with Crest &amp; Walker, particularly in such a sought-after lifestyle destination as Newstead," Boman said.

"Every Fortis project is shaped by its context, and we approach each one with the respect and care it deserves.

"Our focus is always on creating places that feel connected to their neighbourhood and elevate the everyday experience for residents. Newstead continues to evolve as one of Brisbane's most sought-after urban communities, and Crest &amp; Walker reflects our ambition to contribute meaningfully to that story."

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Positioned between Gasworks Plaza and James Street, <a href="https://www.apartments.com.au/new-apartments/crest-walker-newstead-12-kyabra-street-newstead-qld-4006">Crest &amp; Walker</a> has been designed as a boutique residential address offering privacy and generous living spaces within one of Brisbane's most established lifestyle precincts.

The building features a contemporary brick podium softened by integrated landscaping, while the upper levels are characterised by restrained architecture and enduring materiality. Interiors have been designed to maximise natural light, acoustic performance and long-term liveability.

[smartcode_project:default project_id=145922 project_image_fid=373583]

Residences comprise spacious two and three-bedroom floorplans, with two-bedroom apartments priced from $1.55 million and three-bedroom, half-floor residences from $3.95 million.

Residents will have access to a wellness-focused rooftop featuring a swimming pool, sauna, steam room, landscaped dining spaces and outdoor lounge areas overlooking Newstead and the Brisbane CBD.

[smartcode_project:default project_id=145922 project_image_fid=373571]

Sales are being managed by Slaite Projects, with Fortis expecting strong demand from owner-occupiers seeking a high-quality, design-focused apartment in one of Brisbane's most tightly held inner-city suburbs.

Completion of Crest &amp; Walker is slated for late 2028.

[smartcode_project_cta:default project_id=145922]

Fortis expands Brisbane pipeline with launch of Crest & Walker in Newstead

The enormity of delivering a true skyscraper in Australia's new development market is often overlooked.

It has taken the best part of a decade since plans for Chevron One were first unveiled, but the 41-storey tower is now complete, with residents collecting their keys and moving into what has become one of the Gold Coast's most recognisable new landmarks.

Rising 127 metres above Chevron Island, Chevron One stands almost twice as high as any other building on the island. Its scale places it alongside the trio of towers at Jewel, arguably the last truly significant addition to the central Gold Coast skyline when they were completed around six years ago.

While there are several developments underway around a similar height to Chevron One, they are more concentrated within clusters of the highest towers in the city. The fact Chevron One sits within a developing precinct, looking back at the other high-rise developments in Surfers Paradise and Broadbeach, makes it a different proposition altogether. It will certainly become a reference point on the Gold Coast skyline.

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Developer Bensons Property Group is behind the 41-storey tower, which has 229 apartments, along with an exhaustive list of resident amenity spread across what is the largest development site ever assembled on Chevron Island.

The tower has been the talk of the town for years, says Ray White Projects Gold Coast agent Caitlin Rosenboom, who is selling the remaining apartments.

"People have been watching Chevron One go up for years," Rosenboom says, adding that many prospective buyers have been surprised by the scale of the views once they step inside.

"It's only when they walk through a completed apartment that they truly understand the position of the building," Rosenboom says.

"The views are jaw-dropping. Whether you're looking east over the ocean, across Surfers Paradise, along the river systems or out to the hinterland, every level offers something different but equally impressive."

[smartcode_project:default project_id=6515 project_image_fid=360215]

One of Chevron One's defining advantages is its location on the eastern side of Chevron Island on Stanhill Drive, a position which protects the views forever.

"There's only one row of houses between Chevron One and the water, and the height restrictions along the river means views from Chevron One can never be built out,"&nbsp;Rosenboom says.

While new apartment developments continue to emerge across the Gold Coast, Rosenboom says opportunities to secure a completed apartment with this level of outlook are becoming increasingly rare.

"The size of the site is something that would be incredibly difficult to replicate today," she says.

"That's allowed Chevron One to deliver the sort of amenity, open space and resident facilities that very few projects can offer. There are not many completed apartment buildings on the Gold Coast right now that can compete with the combination of scale, quality and amenity."

[smartcode_project:default project_id=6515 project_image_fid=68839]

There's around 2,000 sqm of amenity solely for the use of residents of Chevron One. Club One features a uniquely shaped swimming pool that mirrors the footprint of the building itself, set within a extensively landscaped gardens. There's also an indoor pool and spa, a fully equipped gym with a Pilates room, a yoga garden, a bookable private dining area and lounge that can host up to 30 people, and a 24-hour concierge service.

As for the buyers, Rosenboom is fielding enquiry from everywhere: Sydneysiders and Melburnians looking at the new and off-the-plan market following the changes in the Federal Budget, as well as those looking to relocate, through to South East Queenslanders seeking either a permanent home or a weekender bolthole.

"The Gold Coast lifestyle continues to resonate with people relocating from the southern states, and when they see the views and the quality of what's been delivered at Chevron One, it becomes very easy for them to understand the appeal," Rosenboom says.

A diverse mix of one, two and three-bedroom apartments remain available, with each offering "something a little different", be it the orientation and views, configuration, or level, to suit a wide variety of buyers.

The remaining apartments are ready to inspect in person, by appointment.

[smartcode_project_cta:default project_id=6515]

A decade in the making: Residents to move into Chevron One as construction wraps up

A general rule of thumb in new apartment developments is that the penthouses get the rooftop.

It's a formula that's become commonplace across Australia's apartment market. Residents might have access to a pool, gym or barbecue facilities on a dedicated lower level, but the most desirable outdoor spaces are typically reserved for the highest-priced homes at the top of the building.

<a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Property Group</a> has taken the opposite approach.

Rather than dedicating the rooftop to a handful of buyers, the Gold Coast developer has made it the centrepiece of its Flourish collection, creating expansive shared spaces from the best vantage point in the building.

The philosophy has reached its most ambitious expression at <a href="https://www.apartments.com.au/new-apartments/flourish-soleira-palm-beach-1150-1160-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a> in Palm Beach, where two rooftop precincts connected by a skybridge will deliver one of the most extensive lifestyle offerings seen in a residential apartment project on the Gold Coast.

[smartcode_project:default project_id=150017 project_image_fid=374053]

"We're seeing a clear move toward developments that offer more than just an apartment," Sherpa Group founder Christie Leet said.

"People want spaces that support how they actually live, whether that's working from home, staying active, or spending time with family and friends.

"That's where amenity becomes critical. It's not just about what's included, but how those spaces are designed to be used every day."

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The breadth of amenity has already attracted buyers across multiple demographics. Younger first home buyers have been drawn to Soleira's one-bedroom apartments, a product rarely delivered in Palm Beach, while families have responded to practical inclusions such as the shallow children's pool adjoining the main lap pool and the extensive communal recreation areas.

Instead of a single rooftop, Soleira delivers two distinct lifestyle zones.

[smartcode_project:default project_id=150017 project_image_fid=372547]

The southern rooftop has been dedicated to wellness, featuring a gym, yoga and Pilates studio, work-from-home facilities, a wellness centre, spa, and hot and cold plunge pools.

The northern rooftop focuses on recreation and entertaining, incorporating a heated resort-style pool, private dining rooms, pizza ovens, barbecues, a golf simulator, children's recreation areas, and what is expected to be the Gold Coast's first rooftop basketball court, which will also double as a squash court.

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Beyond the rooftops, Soleira will introduce 1,500 sqm of curated retail beneath the towers, creating one of Palm Beach's first genuinely mixed-use lifestyle precincts where cafés, restaurants and convenience retail become part of residents' everyday lives.

Sherpa has also retained management rights across the development, allowing it to oversee the long-term operation of the building through a 24-hour concierge model. The developer is also exploring additional revenue streams within the precinct aimed at helping offset ongoing body corporate costs for residents.

[smartcode_project:default project_id=150017 project_image_fid=370962]

While Soleira is the largest project Sherpa has delivered, the rooftop-first philosophy has been evolving for several years.

It began with <a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Flourish Amargo</a>, the first project released under the Flourish brand. Rather than competing at the ultra-luxury end of the market with oversized half-floor and full-floor residences, Sherpa focused on creating lifestyle-driven apartments supported by resort-style shared spaces.

Amargo introduced more than 800 sqm of rooftop amenity, combining wellness facilities, heated pools, entertaining areas, cabanas, pizza ovens and private dining spaces into what was designed as an extension of residents' homes rather than a facility used only occasionally.

[smartcode_project:default project_id=146527 project_image_fid=366550]

That approach continued with Flourish Oasis, where the same amenity-led philosophy was refined into a more boutique development. Strong demand from Sherpa's growing VIP database saw much of the project sold before it reached the broader market, reinforcing buyer appetite for apartment communities centred around shared lifestyle experiences.

Flourish Amargo is slated for completion mid-way-through next year, with Oasis to be delivered by late 2027. Flourish Soleira is expected to complete in 2030.

[smartcode_project_cta:default project_id=150017]

Sherpa takes amenity to the sky as Flourish Soleira captures booming Palm Beach demand

As apartment living continues to evolve across Sydney's growth corridors, the quality and distribution of shared spaces is increasingly shaping how residents experience home. Rather than functioning as add-ons, amenities are being embedded into the daily rhythm of a building, supporting everything from quiet retreat to social interaction, often within a single vertical community.

At <a href="https://www.apartments.com.au/new-apartments/aeris-melrose-park-nursery-street-melrose-park-nsw-2114">Aeris</a> in Melrose Park, this approach is resolved through a layered amenity offering that unfolds from ground level through to its upper podium. Developed by <a href="https://www.apartments.com.au/developers/sekisui-house-australia">Sekisui House Australia</a> in partnership with Hankyu Hanshin Properties, the project introduces 468 apartments across two towers and a mid-rise building, positioned at the highest point of the broader masterplan.

[smartcode_project:default project_id=426 project_image_fid=359199]

The amenity experience begins at street level, where two courtyards sit within a landscaped setting that connects residents to the wider network of parks and green spaces. These green spaces are not isolated pockets but part of a wider pedestrian network that links Aeris to the surrounding <a href="https://www.apartments.com.au/developments/melrose-park-nsw-2114">Melrose Park</a> precinct, including Central Park, future schools, and the Town Centre opening in July 2026. The result is a transition that moves from public to private without abrupt boundaries, allowing residents to pass through shaded, tree-lined environments before reaching the building itself.

Moving upward, the focus shifts to the level five podium, where the primary communal facilities are concentrated. This space brings together a 16-metre swimming pool, outdoor seating areas, and a communal BBQ zone arranged to take advantage of elevated outlooks. Seating is positioned beneath pergolas, creating pockets of shade that extend the usability of the space throughout the day. The pool edge aligns with views toward the wider district, reinforcing the sense of elevation that defines the project’s positioning.

In the adjacent building, this is complemented by quieter, more contemplative spaces, including an outdoor cinema set within the same level. Positioned to operate primarily in the evening, it introduces a different tempo to the shared environment, shifting from daytime activity to after-hours use without requiring separate zones.

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The podium also accommodates an intimate private resident gym. Located on the lower levels, it gives residents convenient access to fitness facilities without leaving the building.

Above, the elevated podium sky deck extends the amenity offering, providing additional open-air spaces with elevated outlooks across the surrounding landscape. While more restrained in program, this upper level reinforces the project’s vertical progression, from ground-level greenery to elevated outlook, allowing residents to move between distinct spatial conditions within a single address.

This distribution of amenities reflects a deliberate response to how residents use space across the day. Sekisui House Australia Sales and Marketing Director Peter Kalaf points to the role these shared areas play in shaping buyer demand. Aeris has been conceived as more than a collection of apartments, with the podium pool, gym and outdoor cinema forming part of a broader lifestyle offering that extends the home beyond each individual residence.

[smartcode_project:default project_id=426 project_image_fid=360300]

What distinguishes Aeris is not the inclusion of these elements individually, but how they are arranged in relation to one another. Active, social, and passive spaces are layered vertically rather than separated, allowing residents to choose between them without leaving the building or moving far from their apartment. This proximity supports both routine use, such as a morning swim or evening workout, and more occasional gatherings, whether around the BBQ area or within the cinema setting.

The amenity design also sits within a broader framework of connectivity across Melrose Park. The Melrose Park Town Centre, anchored by Coles and Dan Murphys, features a mix of retail, dining, health and lifestyle offerings, bringing everyday convenience closer to residents. By the end of the year, more than five hectares of parks and open space, equivalent to around seven football fields of green space on residents' doorstep, will further enhance the precinct, allowing the internal facilities at Aeris to operate as an extension of the wider neighbourhood rather than a substitute for it.

Construction at Aeris continues to gather momentum, with ground floor slabs expected to be completed in late 2026 before the first sections of the buildings begin to rise above ground.

[smartcode_project_cta:default project_id=426]

Jessie Richardson

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