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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

<a href="https://www.apartments.com.au/developments/broadbeach-qld-4218">Broadbeach</a> offers plenty of reasons to live vertically, but moving from a substantial family home into an apartment can expose the compromises of high-density living. Privacy, room for guests and usable living space tend to matter more when an apartment is intended as a permanent home rather than an occasional coastal base.

A typical residential floor at <a href="https://www.apartments.com.au/new-apartments/the-eveleigh-broadbeach-7-9-surf-parade-broadbeach-qld-4218">The Eveleigh</a>, on Surf Parade,&nbsp;contains just four apartments. The 94-residence development by <a href="https://www.apartments.com.au/developers/hirsch-faigen">Hirsch &amp; Faigen</a> is predominantly made up of expansive three-bedroom homes, with a limited collection of half-floor penthouses above.

Across the apartment floors, <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> has used the relatively limited number of residences to give each home greater access to natural light and outlook. Living spaces extend towards full-height glazing, while a series of bay windows frame selected views across the Pacific Ocean, city and hinterland rather than treating the building edge as a continuous wall of glass.

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“The apartment floors deliver a collection of homes that embrace controlled outlook via a series of bay windows deliberately framing moments of view,” Rothelowman Director Kim Lowman said.

From outside, those projecting forms contribute to the tower’s faceted profile. Strong horizontal and vertical elements establish its proportions, while the changing position of the sun alters the light, shadow and reflection across the façade throughout the day.

The same attention moves inside the apartments, where the material palette combines warm timber, natural stone, metallic detailing and softer curved forms. Kitchens sit within the main living zone, with stone island benches, integrated joinery and European appliances, before the living areas extend towards the glazing and the outlook.

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Three genuine bedrooms provide room to accommodate family and guests, while two secure car spaces and storage address some of the practical considerations that can become more noticeable when moving from a larger home. Feedback from the display suite has centred on the warmth and restraint of the interiors, with buyers commenting that the residences feel like homes rather than conventional coastal apartments.

A limited collection of half-floor penthouses occupies the upper levels, increasing the scale of the living spaces and adding private balconies and elevated finishes. From this position, the outlook extends between the ocean and hinterland.

Outside the private residences, The Eveleigh separates its shared spaces between the podium and rooftop. The podium is centred on wellness, with subtropical landscaping surrounding a swimming pool and pool terrace, yoga garden, private gymnasium, sauna and hot and cold plunge facilities. Landscaped retreats and pavilions provide additional places to sit away from the main recreation areas.

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Higher in the building, a rooftop pavilion and private dining suite sit alongside resident lounge, barbecue and outdoor dining areas, opening towards panoramic views across the ocean, city and hinterland.

“Buyers are no longer just looking for an apartment, but a lifestyle where they can relax, reset, and enjoy a balanced way of living,” Hirsch &amp; Faigen Director of Sales Matt George said.

Interest to date has come from established owner-occupiers and interstate lifestyle purchasers, including buyers planning a future move to the Gold Coast. Many are coming from larger homes and want to reduce ongoing maintenance without giving up space for family and guests, privacy, two car spaces or the ability to entertain at home.

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Much of that daily life can also take place beyond the building without requiring a drive. Kurrawa Beach and Pratten Park are an easy walk from Surf Parade, while Pacific Fair, Oracle Boulevard, The Oasis, restaurants, cafés, entertainment and public transport are also within walking distance.

The Eveleigh is Hirsch &amp; Faigen's fourth Gold Coast development since entering the market in 2021, following The Hemingway at Palm Beach, The Emerson at Kirra and Yves at Mermaid Beach. Each of the preceding projects sold out before completion.

“Broadbeach had been on our radar throughout our time operating on the Gold Coast,” the developer said. “Following our projects in Palm Beach, Kirra and Mermaid Beach, Broadbeach represented the natural next step for the business.”

The Surf Parade site brought together proximity to the beach, protected coastal outlooks and walkability to dining, shopping and recreation. Hirsch &amp; Faigen also identified the street as an emerging premium residential address, with enough separation from Broadbeach's busier destinations to retain a quieter environment at home.

The Eveleigh is now under construction by Maxcon, with completion forecast for mid-2028. Three-bedroom residences are currently available from $2.87 million.

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Joel Robinson

The Eveleigh brings house-like apartments to Broadbeach

A long-stalled Campbelltown development site is back in play, with new plans for 139 apartments set to supersede a mixed-use scheme approved almost a decade ago but never built.

The new proposal for 28 Cordeaux Street would deliver 116 market and 23 affordable apartments in a part 14-storey building, bringing a substantial new project into a Campbelltown market where new apartment supply remains limited.

Plans have been filed over the 3,092 sqm corner site at Moore-Oxley Street, around 600 metres from Campbelltown Railway Station and the city-centre retail core.

The site already carries a mixed-use residential approval dating to 2016. Doroch Architects has now been engaged on a larger replacement scheme, which is progressing as a State Significant Development Application following a Housing Delivery Authority determination in August 2025.

The apartment mix comprises 39 one-bedroom, 72 two-bedroom and 28 three-bedroom residences. Two-bedroom apartments make up just over half of the project, while three-bedroom homes account for 20 per cent.

<img alt="First look: New 139-apartment plans revive long-stalled Campbelltown city centre site" data-entity-type="file" data-entity-uuid="136dd5b9-3791-4da6-9e31-76f533f5b4de" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Campbelltown%20da2.png?VersionId=LgOSy9nwf5u.MGswBBwaGGxuX8QpHSl_" />

Of the 139 apartments, 23 will be delivered as affordable housing under the in-fill affordable housing provisions of the Housing SEPP. The affordable component represents 15 per cent of the residential gross floor area and will be managed by a registered Community Housing Provider.

Doroch has sought to break the scale of the building into two distinct elements, with a masonry podium of around four storeys establishing the street edge before the residential tower steps back above.

The corner position has shaped that approach. Cordeaux Street faces toward the commercial and civic centre, while Moore-Oxley Street leads into the lower-scale residential neighbourhood to the south, and the design verification report describes the site as "bridging the commercial core to the north and established residential areas to the south."

The podium will be expressed predominantly in face brick, while the upper levels shift to brushed and grooved concrete cladding with darker metal detailing. Recessed sections, deep balcony edges and landscaping break down the upper form, with an approximately 11.8-metre setback to the northern boundary addressing the adjoining St Peters Anglican School.

<img alt="First look: New 139-apartment plans revive long-stalled Campbelltown city centre site" data-entity-type="file" data-entity-uuid="c8b3d2d3-c561-4bfc-a5d9-a68c0c10dac1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Campbelltown%20da1.png?VersionId=AeAEyJU02Gk2k5noUj2StziCvdQ7fW4B" />

Campbelltown has been starved of new residential developments in the last decade.

The only other notable development set to come to market this year is ALAND's Queen Square, a mixed-use precinct on over two hectares that will comprise apartments above a vibrant ground-level retail and hospitality dining precinct.

First look: New 139-apartment plans revive long-stalled Campbelltown city centre site

First Look: Sherlock Construction pitches apartments for low-rise Deception Bay

Queensland builder-developer MAYD has revealed the first look at its major North Kirra beachfront development, lodging amended plans that reduce the number of apartments and increase the proportion of larger residences.

The project is planned across a substantial 4,742 sqm amalgamated site spanning seven lots at <a href="https://www.apartments.com.au/new-apartments/2-6-pacific-parade-bilinga-qld-4225">2-6 Pacific Parade</a> and 27-33 Golden Four Drive in Bilin​ga, directly opposite Nor​th Kirra Beach.

<a href="https://www.apartments.com.au/developers/mayd-group">MAYD</a> secured the site for $32.5 million in 2025, in what was one of the Gold Coast's largest property transactions of the year.

The development will be delivered across two stages, with the first stage carrying an estimated gross realisation value of around $360 million.

The latest amendments seek to reduce the overall apartment count and shift the project further toward the owner-occupier market, with larger residences designed for buyers wanting considerably more space than traditionally offered in a beachfront apartment.

The residential mix will include townhomes, oversized two-bedroom apartments, substantial three-bedroom residences and four-bedroom homes.

MAYD has appointed Cera Stribley to lead the architecture and interiors, with the Melbourne-based design practice drawing on the beachfront setting through a series of ocean-facing terraces and heavily landscaped balconies.

Strong horizontal forms and curved balconies will define the exterior, with subtropical landscaping integrated throughout the building to soften the built form and increase the connection between the residences and the beachfront.

The project will also include an extensive collection of resident wellness and lifestyle facilities, continuing the broader shift across the Gold Coast's luxury apartment market toward larger homes supported by resort-style amenity.

<img alt="MAYD" data-entity-type="file" data-entity-uuid="d1bcbb05-e659-4b47-8bd4-1e595315e2ad" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%202.05.03%E2%80%AFPM.png?VersionId=jj0XEud1X1DuLt7_KyElhjMdZGOXmLHP" />

MAYD Founder Todd Mould said North Kirra was increasingly appealing to buyers attracted to the more established, lower-density character of the southern Gold Coast.

"North Kirra presents one of the most compelling luxury residential opportunities currently emerging in Australia, combining absolute beachfront with the character and authenticity that buyers are increasingly seeking, and the same sense of tight-knit community that defined Burleigh and Currumbin perhaps 10 or 15 years ago," Mould said.

"With Gold Coast Airport on its doorstep, it also offers a level of accessibility that broadens its appeal across almost every market demographic."

The project comes as the southern Gold Coast continues to attract an increasing share of high-end apartment development and buyer activity.

Kirra in particular has emerged as one of the region's more tightly held beachfront markets, with its relatively low-density character, established surf and hospitality scene and proximity to Gold Coast Airport differentiating it from the higher-density markets further north.

Mould said those characteristics had informed the approach MAYD and Cera Stribley had taken to the project.

"We've worked closely with Cera Stribley to create a vision that is deeply connected to its surroundings," he said.

"Inspired by the coastline itself, the architecture has been shaped around space, privacy and resort-style living, creating a collection of homes that reflects the next generation of luxury on the southern Gold Coast."

MOTIV Managing Director Carly Cottam, who has been appointed to market the project, said buyer attention had continued to move south along the Gold Coast.

"Purchasers who may once have defaulted to Broadbeach, Main Beach or Surfers Paradise are increasingly recognising the value of a genuine beachfront location that offers lower density, strong amenity and a more established sense of community," Cottam said.

"Kirra has a powerful combination of growing demand and genuine scarcity. Beachfront supply is inherently constrained, the area remains relatively low density, and buyers are increasingly placing a premium on locations that feel established, uncrowded and authentic rather than heavily developed."

Cottam said the proximity to Gold Coast Airport was also proving increasingly important for interstate and second-home buyers.

"Being minutes from Gold Coast Airport makes it particularly compelling for interstate buyers, frequent travellers and second-home purchasers who can access an authentic coastal lifestyle almost immediately after stepping off a flight."

The acquisition takes MAYD's active development portfolio to more than $500 million, with the North Kirra project representing one of its largest undertakings to date.

MAYD is targeting an early 2027 launch.

First look at MAYD's North Kirra mixed-use precinct

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Castle Hill, the longtime hub of the Hills District, has been one of the major beneficiaries of Sydney's Metro expansion, with improved connectivity helping drive continued population growth, development and buyer demand across the Hills District.

But despite that growth, the suburb has seen relatively few major new apartment projects brought to market over the past 18 months.

Hills District developer Reve Group is looking to fill that gap with <a href="https://www.apartments.com.au/new-apartments/nova-r-ve-castle-hill-2-garthowen-crescent-castle-hill-nsw-2154">Nova Rêve</a>, a major new mixed-use precinct on the corner of Garthowen Crescent and Old Castle Hill Road, a short walk from Castle Hill Metro Station and Castle Towers.

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The project will comprise three residential towers alongside a hotel, restaurants, cafes and a skybar, more than 1,600 sqm of ground-floor retail and almost an acre of landscaped gardens.

It represents the largest project undertaken by Reve Group, the development arm of the Kassis family, which has been building across the Hills District for more than 30 years through Kassis Homes.

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Nova Rêve also represents a significant step up from the family's first apartment development, Grand Rêve, which was delivered nearby on Garthowen Crescent.

Grand Rêve introduced larger, house-like apartment layouts and premium inclusions including Wolf and Sub-Zero appliances to the Castle Hill market.

Nova Rêve takes that approach to a precinct scale, combining the residential component with hospitality, retail and substantial public and resident landscaping.

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Reve Group Managing Director Sam Kassis said the project reflected the family's three decades of building in the Hills, which has evolved from trophy homes on quarter-acre blocks to larger-scale apartment development.

"Grand Rêve was our first apartment project here and it showed us what this pocket of Castle Hill could be. Nova Rêve is the refinement of that idea: not just apartments, but a place the whole suburb can use," Kassis said.

A key part of that approach is the hotel, which has been designed to operate as an amenity for the wider Castle Hill community rather than solely hotel guests.

It will include restaurants, cafes, skybars and all-day dining, alongside conference and event facilities catering to business functions, community groups and private events.

At ground level, more than 1,600 sqm of shops and cafes will open onto the surrounding streets and landscaped areas.

Almost an acre of gardens designed by Land and Form Studios will run through the precinct, incorporating pathways, seating, barbecue areas and children's play spaces.

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Reve Group's Romio Georges said creating an active ground plane had been central to the planning of Nova Rêve.

"There are gardens with pathways, barbecues, seating and play areas, shops and cafes opening onto the street, and a hotel with restaurants and a skybar that anyone in Castle Hill can walk into," Georges said.

The project's elevated position on one of Sydney's highest ridgelines will also provide apartments with outlooks toward the Sydney skyline, surrounding parkland and the Blue Mountains.

More than 80 per cent of the apartments will occupy corner positions, with Turner responsible for both the architecture and interiors.

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Jessie Richardson

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