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Mirvac has won the right to redevelop Brisbane Racing Club's $750 million Eagle Farm Residential Precinct.
The 10-year Ascot project forms part of the Eagle Farm Master Plan which will provide more than 1200 trackside apartments, along with retail and commercial buildings.
Mirvac's Group executive for residential John Carfi said the business was thrilled to have been selected as the Brisbane Racing Club's development partner at such an iconic Brisbane location.
It is expected the BRC will maintain ownership of the land.
BRC Chairman Neville Bell said Mirvac had been selected after intense interest in the joint venture opportunity that will deliver more than 1200 apartments on land around Queensland’s most famous racecourse.
“The Eagle Farm Residential Precinct is the centre piece of a $1.2 billion Master Plan that will transform this historic area of land around Eagle Farm and Doomben racecourses,” Mr Bell said.
The eight residential towers will be on the southeastern corner of the Eagle Farm.
He said construction was expected to start in 2016 as BRC has already gained full planning approval for the project.
“We spent five years gaining planning approval so we have already made significant progress towards this residential precinct,” Mr Bell said.
On behalf of the BRC, Knight Frank commenced an international expression of interest campaign in September 2014, generating more than 100 enquiries from interested parties.
The BRC created a shortlist featuring Mirvac, Leighton Properties and Walker Corporation. Their final bids were submitted on April 10. 
The project is north-facing and looks out over 50 hectares of land that will never be built out. It provides exceptional views to the city and over the Hamilton reach of the Brisbane River and out to the airport and Moreton Bay.
The BRC engaged property specialist Jeff Kahler 18 months ago as General Manager – Property to deliver the Master Plan. 
The BRC has awarded Mirvac Preferred Developer status until June 30 at which time the two groups are expected to sign binding documentation and proceed with the development.
Mirvac’s Group Executive Residential, John Carfi, said Mirvac was "thrilled" to be selected as the development partner.
“Mirvac will draw on its expertise and strong track record of delivering major residential developments and we look forward to working closely with the Brisbane Racing Club on the next phase of this exciting project,” he said.
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jchancellor-FAypfDUnLy

Mirvac's track record secures Brisbane Racing Club redevelopment rights

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South Melbourne's Emerald Hill Terrace – a row of 15 adjoining buildings – has been offered selling on a low 4.2% yield.
Developed in 1887, it is a distinctive row of double-storey retail terraces with an estimated net income of $1,146,555 p.a.
The property offers 15 ground-floor retail tenancies, 10 dwellings and two offices. Offering subdivision potential as currently single title.
It covers the street addresses known as 328-362 Clarendon Street, 48-69 Emerald Hill Place and 244-246 Park Street.
<a href="https://www.realcommercial.com.au/property-retail-vic-south+melbourne-501496007">Emerald Hill Terrace</a> last sold to the Cannon family in 1997 for $5.6 million having being previously owned by the state government.
It was saved from demolition by then Liberal premier Dick Hamer.
The Victorian terrace shops sold to a syndicate of private investors for $27.5 million through Dixon Kestles agent John Pratt and Ian Price, with Knight Frank's Ken Smirk and Marcus Quinn.
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Emerald Hill, South Melbourne retail terraces fetch $27.5 million

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One of the bayside Melbourne's finest homes has been sold by the agriculturalist Ken Jarrett and his wife, Carolyn.
It is the captivating boomstyle Victorian residence at 140 Beaconsfield Parade, Albert Park which sold at around $7.5 million.
Behind its elaborate original facade, it showcases interior designer David Hick's luxury style located directly opposite Albert Park beach.
<a href="https://www.realestateview.com.au/Real-Estate/140-beaconsfield-parade-albert-park/Property-Details-buy-residential-8456412" target="_blank">Marshall White </a>agent Lisa Jarrett had the listing, set between Kerford Road and Mills Street.
Title Tattle recalls it last sold 15 years ago at $1,115,000.
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Albert Park's Beaconsfield Parade boomstyle gem sold in 2015 boom

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The Bronte Wave House, a Walter Barda designed beach house completed in early 2014, has been sold reportedly pre-auction for around $15.75 million.
<a href="https://www.domain.com.au/for-sale/138-bronte-wave-house-138-hewlett-street-bronte-nsw-2024-2011918584" target="_blank">More than $13 million</a> had been tipped for its 18 May auction. There is extensive use of New Guinea rosewood throughout the home including its wave-like ceilings.
Feaures include the lap pool which is indoor-outdoor complete with portholes that allow the swimmer to see into the ground floor living area.
There are limestone floors from the open-plan living areas to the wide terraces overlooking the ocean.
The property was listed with D’Leanne Lewis of Laing &amp; Simmons, Double Bay for vendor, ski resort developer, Simon Harvey.
It is the second high price for the beachside Sydney suburb,<a href="/news/a-cut-above-the-rest-the-era-of-sydney-mega-mansions-far-from-over-title-tattle"> topped only by a $16.5 million sale in 2013</a>.
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Walter Barda-designed Bronte Wave House sells pre-auction

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Credit Losses at Australian Banks: 1980–2013 is the latest Reserve Bank of Australia research discussion paper, written by David Rodgers.
<a href="https://www.rba.gov.au/publications/rdp/2015/2015-06" target="_blank">The paper</a> explores the historical credit loss experience of the Australian banking system.
The paper provides the narrative of banking system credit losses in Australia that includes both the early 1990s and global financial crisis episodes.
During both episodes, banks’ credit losses appear to have had a close relationship with changes in business sector conditions (such as commercial property prices and the business sector’s interest burden). 
Losses during the earlier period totalled around 8.5% of lending; losses during and after the global financial crisis were around 2.5% of lending. 
The earlier episode was a more severe downturn – business sector conditions declined to a greater extent – but anecdotal evidence indicates that differences in lending standards also played a role in the different levels of credit losses across these two episodes.
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As well as macroeconomic conditions and lending standards, portfolio composition turns out to be important for credit losses. The very limited portfolio-level data available for the early 1990s indicate losses during this episode were incurred mainly on business lending.
The better data available for the global financial crisis episode make it clear that the elevated losses during this episode were almost entirely incurred on business lending.
 Credit losses on housing loans during the global financial crisis episode were minimal.
It noted the Australian bank credit loss experience since 1980 is dominated by the very high rate of losses before, during, and after the early 1990s recession, as well as the smaller losses during and after the global financial crisis.
Losses around the early 1980s recession were much lower. Relative to lending, credit losses during the early 1990s far exceeded those incurred by banks during and after the global financial crisis. 
Current losses between September 1989 and September 1994 totalled around 8.5% of the average value of banks’ lending during this period. In comparison, current losses during September 2007 to September 2012 were equivalent to around 2.5% of average lending over this period.
The partial portfolio-level data that are available for the early 1990s episode indicate that the bulk of credit losses were incurred on lending to businesses rather than households.
Two major banks published usable portfolio breakdowns of their net write-offs in their annual reports for some or all of the early 1990s, but the categories used in this data were not well defined (Figure 5).
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They show losses on non-construction housing loans were minimal (these fall within the ‘Real estate – mortgage’ category).
Loans to individuals for construction of housing probably fell within the ‘Real estate – construction’ category, but this category also contains lending for commercial property. Losses on this category were significant, but only make up around 13% of reported losses for these two banks. 
The key point is that most of the losses reported by these two banks fall in the ‘Other business’ category. 
Losses on personal lending, such as credit cards and non-housing term loans, were non-negligible, but appear to be less cyclical than losses on business lending.
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These two banks, CBA and NAB, accounted for 33% of bank lending at September 1991. 
CBA’s write-offs include those made within the State Bank of Victoria’s loan book after its acquisition in November 1990.
Portfolio-level data are available on all banks’ non-performing assets from mid 1990 to mid 1994, and these support the conclusion that losses were incurred mainly on business lending.
It shows that the share of banks’ lending to businesses that was non-performing far exceeded the share of their lending to households (including non-mortgage personal lending) that was non-performing.
It noted contemporary accounts of the period also indicate that credit losses were primarily on lending to businesses. 
Trevor Sykes’ (1994) classic account of corporate and banking collapses during this period, The Bold Riders, is one example. 
Edna Carew’s (1997) account of Westpac’s experience during the period indicates its losses were concentrated in business lending, and more specifically, in property development lending. The dominant role of business lending is also suggested by contemporary accounts from industry participants (Phelps 1989; Lee 1991).
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Various authors have set out potential reasons why credit losses were so large in the early 1990s (Battellino and McMillan 1989; Fraser 1994; Sykes 1994; Carew 1997; Conroy 1997; Ullmer 1997; Gizycki and Lowe 2000). 
There was a recession during 1990–91, and downturns in financial and property markets, but losses were many times greater than those seen in earlier (and later) downturns, suggesting other factors at play. 
A short version is that deregulation of the banking sector in the 1980s was accompanied by very fast business lending growth and declining lending standards, all during a period of strong economic and financial conditions.
Macroeconomic and financial conditions facilitated these developments. 
Real GDP grew at an average rate of about 41⁄4 per cent over the five years to September 1989. 
Equity prices rose by almost 50 per cent per annum from late 1984 until the crash in October 1987. 
Commercial property price growth rose above 10 per cent per annum at the start of 1986, and accelerated in subsequent years. 
This price growth was accompanied by an exceptional amount of non- residential construction, particularly of offices (Figure 8; Kent and Scott 1991).
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Commercial property was a key form of collateral for the business loans that were secured.
By early 1990, large highly geared companies across a range of industries were unable to meet their increased loan repayments and defaulted on their debts (Sykes 1994). 
This, together with a weakening in the commercial property market, exposed banks to a first round of credit losses (Gizycki and Lowe 2000). 
These losses broadened as business profits began to fall and Australia entered a recession around the end of the year. 
By September 1991, large additions to the supply of office property had combined with flat or falling demand to sharply raise vacancy rates and drive prices down by over 20% on an Australia-wide basis; some banks were forced to recognize significant credit losses on commercial property lending (Carew 1997).
Even during a period in which system-wide lending standards loosened, there are indications lending standards at state government-owned banks, particularly SBSA and SBV, were below average.
These banks grew their lending very quickly over the late 1980s. SBSA and SBV grew their lending at rates of 43 and 27% per year between 1985 and 1990, versus growth in total credit of around 18% per year over this period. 
This fast growth was driven by business lending – the share of these banks’ portfolios made up by business lending increased by over 20 percentage points over the same period. State government owners encouraged fast lending growth, both to support state economies and to provide a new source of revenue for state coffers, and installed aggressive managers (Sykes 1994).
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The historical experience of credit losses at Australian banks the paper describes should help to guide overall understanding of the credit risk they currently face. 
It supports a continued focus on the analysis of the financial health of the business sector as part the Reserve Bank’s semiannual Financial Stability Review, David Rodgers. 
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Commercial property credit losses at Australian banks: RBA research discussion paper chart 

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The Queensland State Government has vetoed a $7 billion casino resort and cruise ship terminal project planned for Wavebreak Island on the Gold Coast.
Industry data reveals up to 75 ships a year would be docking at a Gold Coast cruise ship terminal had it proceeded.
The concept design for ASF’s rejected cruise ship terminal at Wave Break Island was seen as the most viable option for the Gold Coast from a list of possibilities which included man-made harbours at The Spit and Bilinga.
However, the project did not have the backing of the new Labor Government.
Las Vegas-based casino and resort group Global Gaming Asset Management was set to be be the operator of the Chinese-backed ASF Consortium’s $7.5 billion project on the Gold Coast.
GGAM, founded by Bill Weidner, was set to team up with architect Paul Steelman’s Steelman Partners as the designer for ASF’s planned casino
GGAM has been involved with ­opening and managing more than 20 properties worldwide since 1999.
At a Property Council of Australia event, ASF's Alan Fife had indicated that five international hotels were proposed on Wavebreak Island
ASF Group is a Sino-Australian investment and trading house which focuses principally on the identification, incubation and realisation of opportunities in areas of synergy between China and Australia including resources, commodities trading and property sectors, alongside travel and financial services.
The overall project was not approved by the Newman government, following numerous knockbacks and resistance from community groups.
ASF envisaged to dredge The Spit and use the sand to build up Wavebreak Island.
Hong Kong-listed China Communications Construction Company and one of its subsidiaries, as well as the state-owned China State Construction Engineering Corporation, have provided a financial guarantee for the project.
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ASF Wavebreak Island project veteod by Queensland Government

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Victorian treasurer Tim Pallas has advised locally-based, but foreign-controlled developers, such as Mirvac and Australand, may be exempted from the government's new foreign buyer taxes.
The 3% stamp duty on foreigner buyers of especially residential off-the-plan purchases also applies to the purchase of residential land for development itself.
This catches major developers when they acquire land for residential projects. 
Mr Pallas confirm it would apply to companies with majority foreign ownership, when questioned by The Australian Financial Review.
"Appropriate exemptions will apply to ensure relevant Australian based corporations and trusts are not unintentionally caught," Mr Pallas said.
Queensland has been prompt to take advantage, ruling out any similar surcharges on foreign buyers in the sunshine state.
New South Wales is yet to makes its strategy clear.
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Mirvac, Australand want out of Victorian foreign buyers tax

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If the 2014-15 Federal Budget was considered ‘aggressive’, this year’s Federal Budget could be considered ‘boring’ by comparison.
According to Treasurer Joe Hockey, this year’s Federal Budget engaged integrity measures in the name of fairness.
Small business owners were the big winners to come out of the Federal Budget, winning tax breaks and other incentives, while homeowners and the housing sector remained relatively unscathed.
Small business owners to receive tax breaks to allow for future investment
From 1 July this year, small companies with annual turnover of less than $2 million will have their tax rate lowered, from 30% to 28.5%. In addition, small businesses will be able to claim up to a $20,000 tax deduction for every item they purchase. Further, employees in start-ups will get access to tax breaks on shares they receive as part of their pay. This stream of tax breaks and incentives will help small businesses to grow and flourish. It will give small business owners the opportunity to reinvest in their businesses and take their companies to the next level. And considering small businesses are the engine room of Australia, these tax breaks should spell good news for the broader economy and employment. Foreign investment framework to see o/s investors pay fees to buy property
As part of the 2015-16 Federal Budget, Treasurer Joe Hockey said changes would be made to strengthen Australia’s foreign investment framework. Under the proposed changes, a new fee regime will be introduced which will require foreign investors to pay an application fee of up to $5,000 to purchase residential properties valued under $1 million. Those purchasing a property equal to or greater than $1 million would be subject to a fee of up to $10,000. This would then increase in increments of up to $10,000 for each additional $1 million in property value.                                                       While this application fee may be high enough to deter some foreign investors, we do not believe it is high enough to significantly impact the current level of foreign investment activity within Australia. Childcare rebates introduced to encourage mothers back into the workforce
The Federal Government has committed to providing $327.7 million extra over the next four years to help vulnerable and disadvantaged families access childcare. According to the Treasurer, investing this money in childcare should help approximately 165,000 parents who are currently unable to work due to high cost of childcare re-enter the workforce. But while some parents will be given extra help to pay for childcare, new mothers who are given Paid Parental Leave by their employer will no longer be able to access the government’s Paid Parental Leave scheme. This move will more than likely encourage new mothers to re-enter the workforce sooner than they may have planned. Mr Hockey said mothers who access the government’s Paid Parental Leave scheme and are paid parental leave by their employer are ‘double dipping’ and stopping them from doing this was ‘only fair’. Superannuation to avoid further tax
The Federal government has revealed that there will be no new taxes on superannuation under their watch. Furthermore, the Age Pension will continue to increase, twice a year, this year, and every year — at the highest available indexation rate. The Age Pension is the budget’s biggest expenditure item, costing $44 billion a year. This equates to more than 10% of all government spending. Moving forward, Treasurer Joe Hockey said the pension would be increased so that it remains sustainable and affordable. But while many pensioners will benefit from the announcement, wealthy pensioners with more assets outside of the family home will miss out on any increases to the Age pension as the Government plans to tighten eligibility for those pensioners with higher levels of assets from 1 January 2017. Conclusion
While it is too early to tell how consumers will react to this year’s budget, it is widely expected that initial reaction will be more positive than it was last year. In the month following the 2014-15 Federal Budget, consumer sentiment plummeted 6.8% and failed to recover for the rest of the year. This year’s Budget would suggest the Government is looking to avoid such a strong negative reaction. Many financial commentators believe this year’s budget acts as an apology for last year’s aggressive Budget. In fact, many believe this could be an election Budget. While the theme of last year’s budget was to pay down debt, it would seem the Government is now trying to encourage Australians to spend. It is still too early to tell what impact this year’s Budget will have on buyer and seller activity in the immediate future. Auction attendance and clearance rates will come into sharp focus over the coming months to demonstrate stronger indications of consumer confidence. However, with interest rates set to remain at historically low levels throughout 2015, the housing sector remains positive for both current mortgage holders and those looking to enter the property market.
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Small business the big winners: Mortgage Choice's John Flavell

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The Athelstone Shopping Centre in Adelaide’s north-east suburbs has been sold for a $12 million reflecting a 7.9% yield.
The property, prominently located on a 1.328 hectare land holding at 312-328 Gorge Road at Athelstone, was sold by Peter Isaksson and Rino Carpinelli of Savills South Australia,
It was sold to a private Adelaide-based investor with a total retail floor space of 4,611 square metres, anchored by Romeo’s Foodland Supermarket.
It also includes 200 car park spaces.
Romeo’s Foodland Supermarket, comprises 42.8% of the centre’s total income and is secured on a long-term lease until 2022.
Savills recorded $460 million worth of retail property transactions in South Australia in the year to December 2014, up from $209 million in the previous year, and up on the five year average of $323 million. 
In the year to December 2014, Savills recorded 51 retail property sales in South Australia, up from the previous year of 31, and up on the five year average of 43.
 
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Savills South Australia sells Athelstone Shopping Centre

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The Mortgage &amp; Finance Association of Australia has leased Sydney office property on Pitt Street. 
The ninth floor 130 Pitt Street space is 381 square metres.  
CBRE’s Jamie King negotiated the five-year term on behalf of Investa Funds Management.
The annual rental is $760 per sqm gross. 
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Mortgage & Finance Association of Australia take Pitt Street lease

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

Joel Robinson

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

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

The inflation result the property market was waiting for

Commercial property group FiveX is doubling down on its move into the residential space.

The group, founded by Joshua and Marko Berger more than five decades ago, has followed up its plans for a 39-storey tower on North Sydney's Alfred Street with a proposed 61-storey tower in Chatswood.

The new tower at <a href="https://www.apartments.com.au/new-apartments/815-pacific-highway-chatswood-nsw-2067">815 Pacific Highway</a>, which would be one of the tallest proposed in Chatswood in recent years, will comprise 490 apartments, 76 of which will be dedicated affordable housing and managed by Evolve Housing for a minimum of 15 years.

The project will replace the long-standing Panorama Building, originally known as the BMA Tower, a 14-storey office building completed in 1972 and designed by Hungarian-born architect Hugo Stossel. At the time of its completion, the building was the tallest structure in Chatswood and became a local landmark due to its distinctive curved form and external glass lift.

<img alt="FiveX" data-entity-type="file" data-entity-uuid="956bd299-3864-47a0-8ea6-162b5524c5d8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-24%20at%201.02.03%E2%80%AFPM.png?VersionId=EWx7teUr7RcYrI9mgRytwppwt5AdUDtb" />

fjcstudio is behind the designs. Its Architectural Design Report argues the ageing commercial building no longer reflects Chatswood's role as one of Sydney's key strategic centres and that the site is ideally positioned to support significantly higher residential density.

"The site is located at the heart of Chatswood, within the TOD accelerated rezoning area that supports higher density development around the new Metro station," the report states.

"The site's role within a walkable 400-metre radius catchment is where housing, employment, retail and community uses are encouraged to cluster in support of transit-oriented living."

<img alt="fjc" data-entity-type="file" data-entity-uuid="8d198f5e-cc71-4175-9357-be6ec7207473" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-24%20at%201.18.27%E2%80%AFPM.png?VersionId=5WUFc3IYBPvhQMBUYLCsjJhzdcVeYodE" />

The proposal has undergone two rounds of review by the NSW State Design Review Panel, with the design evolving through an extensive assessment process focused on design excellence, public realm outcomes, residential amenity and the integration of affordable housing.

fjcstudio says the residential component provides a diverse mix of apartment typologies, supporting a broad demographic and contributing to housing supply in a highly accessible location close to major transport, employment and retail infrastructure.

The application follows FiveX's plans for a 39-storey tower at <a href="https://www.apartments.com.au/new-apartments/275-alfred-street-north-north-sydney-nsw-2060">275 Alfred Street</a>, which it <a href="https://www.apartments.com.au/new-apartments/275-alfred-street-north-north-sydney-nsw-2060">submitted through the same NSW Government pathway</a> in December. That's for 184 apartments.

Recent activity in Chatswood includes Hyecorp launching its Archer Street project, Celine, and Develotek securing approval for a 34-storey tower.

First look: FiveX targets Chatswood skyline with 61-storey tower after North Sydney plans

Bridgewell Capital and SLD Development seem to be bullish on the Killara apartment market, filing plans for a second new development next to the Killara Golf Club.

The new plans are for 79 apartments across an amalgamated 4,989 sqm site on Buckingham Road.&nbsp;The project has been designed by BKA Architecture and is being assessed under the NSW Government's Low and Mid-Rise Housing and Infill Affordable Housing reforms. It is just 300 metres from&nbsp;Killara train station.

The majority of the apartments are three-bedrooms (46), with 23 two-bedroom apartments, seven one-beds, and three four-bedroom apartments. 17 of the apartments&nbsp;are proposed as affordable housing, representing 15 per cent of the project's gross floor area, allowing the development to access additional floor space and height incentives available under the NSW Housing SEPP.

There will be 131 resident and visitor car spaces, and more than&nbsp;1,450 sqm of communal open space. Landscaped areas would account for approximately 45 per cent of the site.

<img alt="Killara" data-entity-type="file" data-entity-uuid="75ef5ef7-a53b-4932-a8f1-38f63169eec9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-24%20at%2011.04.00%E2%80%AFAM.png?VersionId=d_lG1A1StDaMQilljy25Fr8SF1BnAmKE" />

The site currently contains three detached dwellings and occupies a prominent position on the eastern side of Buckingham Road, with frontage to an area that has already begun transitioning towards higher-density housing. Existing apartment buildings of up to six storeys surround the site, while the Killara Golf Club forms its southern boundary.

The application has been lodged as a State Significant Development due to the affordable housing component and the scale of the project.

According to the design report, the proposal has been shaped by the area's evolving planning framework, which is encouraging greater housing density around transport infrastructure.

"The site sits along a growth area anticipated to undergo transformation in line with broader trends across New South Wales, driven by the implementation of the Low and Mid-Rise and Transport-Oriented Development State Housing Policies," the report states.

"Being within 800 metres walking distance to Killara Train Station, the project seeks to provide high-quality apartments designed for various family sizes, located in a vibrant landscaped setting."

The Upper North Shore suburb has become one of the most closely watched testing grounds for the NSW Government's housing reforms. A number of developers have moved quickly to consolidate sites around railway stations across suburbs including Killara, Lindfield, Gordon and Roseville, where the new planning settings are creating opportunities for apartment developments that would previously have been difficult to achieve.

The likes of Aqualand, Hyecorp, Holdmark and Vermont Property Group have projects in the region.

Bridgewell has several developments in the pipeline. Last September they submitted plans for <a href="https://www.apartments.com.au/news/nsw/bridgewell-capital-seeks-55-apartment-project-in-killara">55 new apartments</a> at&nbsp;23-25 Lorne Avenue in Killara, just the other side of Regimental Park from their new project. In May they filed for <a href="https://www.apartments.com.au/news/nsw/first-look-bridgewell-plots-120-apartments-and-childcare-centre-in-maroubra-town-centre">120 apartments in Maroubra</a>.

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First look: Bridgewell, SLD Development double down on Killara Golf Club

Sydney developer&nbsp;<a href="https://www.apartments.com.au/developers/central-element">Central Element</a>&nbsp;is doubling down in Drummoyne, lodging plans for a boutique apartment development on St Georges Crescent, only one-kilometre down the road from its first Drummoyne development, Bianca.

The new project at 15A-21 St Georges Crescent,&nbsp;a&nbsp;1,701sqm north-facing site overlooking Iron Cove, will have 45 apartmnts across 10 levels. Eight of the units will be dedicated to affordable housing.

The site sits within walking distance of Drummoyne Village, Birkenhead Point, ferry services and the Bay Run, and offers harbour views towards the Sydney Harbour Bridge and CBD skyline.

Designed by MHN Design Union, the development will deliver a mix of one, two and three-bedroom apartments, alongside resident amenity including a gym, landscaped communal open space and three levels of basement parking.

The project has been lodged under the NSW Government's Low and Mid-Rise Housing reforms, with Drummoyne Village identified as a town centre capable of accommodating additional housing supply.

Central Element acquired the site earlier this year as part of its continued expansion across Sydney's eastern suburbs, lower north shore and inner west.

The developer's current pipeline includes luxury apartment projects Pearl Bondi and a separate development on Lamrock Avenue in Bondi, a residential project in Barry Street, Neutral Bay, and a mixed-use seniors living community in Greenwich.

Central Element Managing Director Nathan Chivas said the project would address a shortage of new owner-occupier housing opportunities in Drummoyne.

"While we're seeing a significant shift across Canada Bay as major infrastructure investment, population growth and planning reform drive a new chapter for the region, in suburbs like Drummoyne there remains a genuine shortage of new boutique luxury housing opportunities for owner occupiers," Chivas said.

"Sites of this nature are increasingly difficult to secure, particularly those that combine a north-facing aspect with direct water outlook. Our St Georges Crescent project responds directly to the market demand, offering a level of exclusivity, outlook and lifestyle in the highly sought after suburb."

The development application has been lodged with the City of Canada Bay Council, with the project expected to launch to market in early 2027.

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Jonathan Chancellor

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