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<img alt="collierslogo" height="94" width="470" src="/images/stories/2013/02/collierslogo.jpg">
Tim Mutton will have a first-hand view of what will happen to the Canberra office market as the federal election campaign gets into full swing.
He tells Property Observer about the forces shaping the market and that he would invest a spare $750,000 in an office property in Fyshwick that offers double-digit yield potential. 
<img src="/images/stories/2013/02/timmutton.png" width="232" height="177" alt="timmutton" style="margin: 5px; float: left;">
Agent: Tim Mutton
Position: Director, investment services and office leasing
Company: Colliers International
Office Location: Canberra 
How long have you been in the industry? Joined Colliers International as a graduate in 2003.
What’s happening in the area you specialise in? Investment sales activity over the first half of 2012 has been strong, with four major transactions completed. Total sales volumes have already surpassed the total sales of the past two years, with $377.8 million having been transacted. Offshore investors have been particularly attracted to the Canberra market, dominating total sales volumes for the first half of the year as they seek the relative safety of government leased investments.
Describe the most interesting property you have sold. The most interesting property I have been involved with the sale of was a farm on the outskirts of Canberra where we were involved in finding a joint venture partner for the development of a 6,000-lot community called Googong. Over time this property will turn into its own township with shops, schools, community facilities in addition to a variety of housing options. 
What are the ingredients to being successful in your job? I strongly believe that to be a good agent you need an enquiring mind. You need to be able to think laterally and not be afraid to spend time understanding your clients and their properties. I also think you have to be patient. A lot of people get into real estate for rapid results, but you need to spend time learning your market, understanding the personalities operating in it and then turning this information into winning investment ideas for your clients. 
What aspects of your role do you enjoy the most? Uncovering value for my clients in areas overlooked by the majority. The number of times we have had good investment and development properties available but people have overlooked them to follow the herd into substandard assets baffles me. 
Where would you invest a spare $750,000? With interest rates falling I would invest in well-located light commercial in the Canberra suburb of <a target="_blank" href="/news">Fyshwick</a> with double-digit yield.
Which football team do you support? ACT Brumbies 
What’s your favourite app or techno gadget? I would be lost without my Sharp EL 735 calculator. Very old fashioned but faster than any app I have found to calculate values. 
How do you use social media? I use social media to keep track of colleagues and friends but also to better understand my clients and customers. The amount of information available in social networks is growing exponentially and to be able to have this information at my fingertips is amazing.</body></html>

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In profile: Tim Mutton, Colliers International’s Canberra office specialist

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Australia’s biggest mortgage lender, the Commonwealth Bank, has signalled a brighter outlook for 2013 as it reported a 6% rise in interim profits to December 2012 of $3.78 billion.
The bank has 25.1% of the mortgage market – one in four borrowers in Australian has a Commonwealth Bank home loan – and its earlier reporting of interim results ahead of its big four rivals is considered a bellwether for the health of the banking and mortgage industry.
The bank wrote $1.54 billion in new mortgages in the half-year period an increase of 15% on the previous corresponding period, with mortgage brokers responsible for 38% of new lending over this period.
Importantly for borrowers, it reported a steep decline in long-term wholesale funding costs, giving the bank the capacity to use the $13 billion raised from investors offshore to fund cheaper mortgage lending in 2013.
Long-term wholesale funding margins decline from 169 basis points (margin to BBSW) six months ago to 109 basis points as of December 2012.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2013/02/cbafeb13.gif"><img src="/images/stories/2013/02/cbafeb13thumb.gif"></a>
Earnings from the bank’s retail banking division, which includes mortgage lending, rose 7% to $2.93 billion.
Commonwealth Bank chief executive Ian Narev called it a “strong result” in “subdued market conditions”.
He says the bank maintains a “cautious outlook” for 2013 with modest expectations for mortgage lending growth in 2013.
The bank expects mortgage growth of between 4% and 6% in 2013 rising to 5.5% to 7.5% in 2014.
Narev acknowledged that conditions remained challenging for borrowers, but that credit quality has not deteriorated.
“As a result we have experienced a period of relative stability, which has had a positive impact on global equity and debt markets
“Of course risks remain in the economy as a major financial institution we must remain cautious.”
But he said if the current stability continues, slow but steady rebuilding of consumer and business confidence in 2013
“And that is our base case for 2013.”
The Commonwealth Bank is the second biggest listed Australian company on the ASX by market capitalisation and fourth biggest taxpayer.
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Commonwealth Bank reports lower funding costs and brighter outlook as interim profits rise 6% to $3.78 billion

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They may be unglamorous warehouses on the outskirts of Melbourne, but private investors are returning to the Melbourne south-east industrial market, accounting for more than a third of all transactions over $2 million in 2012, according to Savills.
The pie chart below shows that private investors were the biggest buying group of industrial properties in south east Melbourne  in 2012, accounting for 36% of all transactions.
According to Savills' Victorian head of research Glenn Lampard, investment yields for prime industrial property remained in a range of 7.5% to 8.75% while land values ranged from $115 to $200 a square metre for land between one and five hectares.
Lampard said private investors had been quicker out of the blocks to recognise an opportunity in the growing region.
The south-east Melbourne industrial market includes suburbs like Clayton, Moorabbin and Huntingdale.
<img alt="savillsfeb13" height="311" width="470" src="/images/stories/2013/02/savillsfeb13.gif">
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Private investors return to south-east Melbourne industrial market in droves

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Stockland has delivered a horror set of interim results, reporting a 148% drop in statutory interim profits and a loss of $147 million to December 31.
A slump in the outer-Melbourne land market was largely to blame, with Victorian residential lot sales falling 46% from 850 to just 463.
In the space of six months, Victoria has gone from being Stockland's biggest selling region to third biggest, behind a surging WA and a declining Queensland,with NSW the fastest growing region, albeit from a low base.
Australia’s biggest new housing builder with 70 residential communities also reported a $306 million write-down across 13 residential community projects, which have now been listed for wholesale disposal.
Today’s release of results were something of a baptism of fire for new Stockland managing director and chief executive Mark Steinert – the first results briefing he has presided over since taking being appointed to the role  in November and replacing  the long-serving Matthew Quinn.
Ahead of delivering his market briefing on the results today, Steinert called the results “disappointing".
Speaking to the media and analysts, he downgraded this assessment to “very disappointing, driven primarily by weakness in housing market” though he says the outlook is better for the 2014 financial year (from July onwards).
<img alt="stocklandfeb13" height="580" width="470" src="/images/stories/2013/02/stocklandfeb13.gif">
Five of the impaired residential projects are in NSW, six in Queensland, one in Victoria and one in WA.
In total there are 4,700 lots across the 13 projects – about 5.5% of the 86,000 lots currently in the Stockland development pipeline.
They include long-held residential sites such as Pinny and Mawson (englobo land) and West Dapto in NSW and Birtinya, Bokarina Beach and Lake Kawana projects, all on the Sunshine Coast.
The residential business was weakest in Victoria over the six-month period, with Stockland reporting a 46% decline in Victorian settlements to 463, compared with 850 in the first half of the 2012 financial year.
This contributed to an overall 6% decline in residential settlement over the first half of 2,085 compared with 2,209 in the previous corresponding period.
There was also a 13% decline in Queensland settlements (686 to 594) – Stockland has a third of the south-east Queensland new housing market – with these declines offset by rises in lot settlements in NSW (up 101% from 210 to 422 lots sold) and WA (up 31% to 606 lots due to growth in new community launches).
Stockland will look to bring its East Leppington and Marsden Park projects on the outskirts of Sydney to market more quickly.
East Leppington in Sydney’s south-west will comprise 3,000 residential lots as well as retirement living and retail facilities with the first settlements expected in the second half of the 2014 financial year. House-and-land packages will start from $350,000.
Stockland acquired the 163-hectare residential site at Marsden Park in Sydney’s north-west from the private Winten Property Group for $165 million in January this year with the potential to deliver about 2,300 new homes. Stockland also secured the first right of refusal from Winten Property Group over an adjacent parcel of land, which has the potential for a further 2,200 homes.
Commenting on the state of the Melbourne market, Steinert said the market had been impacted by the state government efficiently delivering new land supply to the market and by the withdrawal of previous state housing grants.
“We don’t see a collapse, but this has put some downward pressure on price increases,” he said.
“The pull forward effect from early incentives effected prior levels of volume. Those incentives are no longer there, which has created recent slowing in settlements.
“Those things combined – increase in supply and withdrawal of incentives  - means we have a cautious view for Victoria and Melbourne, but it is still an important part of our business and a key profit generator.
Steinert said Stockland’s south-east Queensland business – Sunshine Coast, Gold Coast and Brisbane – had been impacted by the higher Australian dollar on tourism as well as weaker employment growth.
Countering that, he said the increasing use of fly-in-fly-out workers was having a “positive impact”.
Steinert also warned that “election cycle” could also increase buyer caution while there are also concerns over the impact of the recent floods.
He highlighted that business is in a transition phase with everything up for review and he said their had already been signficant job cuts.
"Market conditions, however, are expected to remain challenging with ongoing weakness in Victoria and uncertainty in Queensland where we will watch closely to monitor any impact on already weak consumer sentiment following the recent floods," Steinert said in an earlier statement today.
Stockland expects earnings from its retail and retirement living businesses but returns from its office and industrial portfolios were expected to drop.
"We remain confident earnings will begin to improve from the 2014 financial year as we see the benefit of major new retail and residential projects coming on line,” he said.
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Stockland pins hopes on western Sydney and WA residential projects as interim profits slump 148% 

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Non-bank lender Resimac has made a bid to acquire the loan book of RHG Limited that previously traded as RAMS Mortgage Corp.
The RAMS franchise business was acquired by Westpac in January 2008 and is a separate mortgage lending business to RHG Limited.
RHG Limited informed the ASX yesterday that it had received an approach for a possible “asset-level sale of its loan book”.
“Discussions are not concluded and there are complex transactional and commercial issues involved,” RHG said.
“Our primary objective is to maximise the net worth of the company whilst at the same time ensuring the needs of all of our stakeholders, being our home loan customers, shareholders, staff, service providers and funders are considered and addressed.”
A successful transaction would be in the order of around $150 million, the Australian Financial Review suggested.
RHG has a market value of $143 million.
Sydney-based Resimac, a prominent wholesale non-bank lender, has declined to comment on the mooted bid.
It dates back to 1985 when it was originally created to service and securitise residential loans for HomeFund, a New South Wales State government housing programme under the name of FANMAC.
It was the first Australian lender to issue Australian Residential Mortgage Backed Securities (RMBS in 1988 and since then has issued nearly $12 billion through 18 domestic and international RMBS issues.
RHG continues to operate the loans it originated under the old RAMS brand as a closed, amortising book with its business remaining in wind-down.
It reported net profit of $40.7?million in the year ended June?30, down 45%on the previous 12-month period.
Shares in RHG Limited were placed in a trading halt when the announcement of the approach was first made, but climbed 7.5% higher to 50 cents following a resumption of trading.
They remain at 50 cents this morning ahead of trading.
The loan book acquisition proposal by Resimac was
Any final asset-level proposal would require shareholder approval, and may require third party consents.
The original RAMS business was founded by John Kinghorn, who pocketed $650 million for the sharemarket listing of his mortgage lending vehicle in July 2007, before its dramatic implosion as the GFC pulled the rug from under securitised home loan providers. 
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Resimac makes bid for RHG Limited loan book, formerly called RAMS

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Plummeting first-home buyer numbers have raised fresh questions about recently introduced first-home buyer grant schemes on offer in NSW as well as raise issues about current housing affordability. 
The number of loans to first-home buyers in December 2012 fell to 14.9% according to ABS figures, the fourth consecutive month that this segment of the market has declined.
This a 37% decline on figures from a year ago when first-home buyers accounted for more than one in five new home loans (21.1%).
This was the weakest proportion of first-home buyers in the housing market since June 2004 and just two percentage points off the record low of 12.8% in March 2004 for ABS figures going back to July 1991.
The decline suggests that the new first-home owner grants in Queensland and NSW, which provide generous handouts of $15,000 – but only for those who buy or build new homes – have missed the mark and are as claimed by the likes of Ray White chairman Brian White nothing more than a builder or developer incentive.
In addition they suggest housing remains unaffordable or undesirable for most prospective first-home buyers with low mortgage rates and a decline in capital city house prices over the last few years failing to spur this segment of the market in a meaningful way.
The fall was sharpest in NSW, where there was a 3.2% decline as well as a smaller 0.8% drop in Queensland and a 1.9% decline in WA. 
“The state detail was something of a surprise,” notes Westpac, who called the December figures “another weak reading” for first-home buyer activity. 
“We had expected unwinding first-home buyer demand in NSW (from an earlier bring-forward relating to state government changes) to have run its course by December with weakness to instead centre on Victoria where stamp duty concessions coming in from January 1 would have encouraged many FHBs to delay purchases. 
“Instead, the sharp slide in NSW continued (–3.2%) with Victoria posting a slight rise (+0.3% for the month). 
Westpac estimates that approvals in this segment were down another 5.7% in December on a seasonally- adjusted basis.  
First-home buyer numbers peaked in May 2009 following of the doubling of the first-home owners grant to $14,000 for those buying existing homes and trebling it to $21,000 for those buy newly built homes in October 2008. 
First home buyers as percentage of home lending dating back to 1991 (ABS)
 
<table border="0" cellpadding="0" cellspacing="0" width="415"><tbody>
<tr>
<td nowrap valign="bottom" width="104">
Month
</td>
<td nowrap valign="bottom" width="104">
Number of FHB loans
</td>
<td nowrap valign="bottom" width="104">
% of new loans
</td>
<td nowrap valign="bottom" width="104">
Size of loan ($)
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-1991
</td>
<td nowrap valign="bottom" width="104">
5654
</td>
<td nowrap valign="bottom" width="104">
20.7
</td>
<td nowrap valign="bottom" width="104">
71.5
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-1992
</td>
<td nowrap valign="bottom" width="104">
7733
</td>
<td nowrap valign="bottom" width="104">
22.2
</td>
<td nowrap valign="bottom" width="104">
76.9
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-1993
</td>
<td nowrap valign="bottom" width="104">
10139
</td>
<td nowrap valign="bottom" width="104">
22.4
</td>
<td nowrap valign="bottom" width="104">
83.0
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-1994
</td>
<td nowrap valign="bottom" width="104">
7789
</td>
<td nowrap valign="bottom" width="104">
21.5
</td>
<td nowrap valign="bottom" width="104">
90.3
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-1995
</td>
<td nowrap valign="bottom" width="104">
7218
</td>
<td nowrap valign="bottom" width="104">
21.9
</td>
<td nowrap valign="bottom" width="104">
89.8
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-1996
</td>
<td nowrap valign="bottom" width="104">
8427
</td>
<td nowrap valign="bottom" width="104">
23.0
</td>
<td nowrap valign="bottom" width="104">
99.2
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-1997
</td>
<td nowrap valign="bottom" width="104">
8047
</td>
<td nowrap valign="bottom" width="104">
21.0
</td>
<td nowrap valign="bottom" width="104">
104.0
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-1998
</td>
<td nowrap valign="bottom" width="104">
8651
</td>
<td nowrap valign="bottom" width="104">
22.6
</td>
<td nowrap valign="bottom" width="104">
120.7
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-1999
</td>
<td nowrap valign="bottom" width="104">
10264
</td>
<td nowrap valign="bottom" width="104">
22.0
</td>
<td nowrap valign="bottom" width="104">
134.7
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-2000
</td>
<td nowrap valign="bottom" width="104">
9654
</td>
<td nowrap valign="bottom" width="104">
22.3
</td>
<td nowrap valign="bottom" width="104">
123.0
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-2001
</td>
<td nowrap valign="bottom" width="104">
12745
</td>
<td nowrap valign="bottom" width="104">
25.8
</td>
<td nowrap valign="bottom" width="104">
146.5
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-2002
</td>
<td nowrap valign="bottom" width="104">
7998
</td>
<td nowrap valign="bottom" width="104">
15.9
</td>
<td nowrap valign="bottom" width="104">
160.2
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-2003
</td>
<td nowrap valign="bottom" width="104">
7618
</td>
<td nowrap valign="bottom" width="104">
13.3
</td>
<td nowrap valign="bottom" width="104">
185.2
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Mar-2004*
</td>
<td nowrap valign="bottom" width="104">
7083
</td>
<td nowrap valign="bottom" width="104">
12.8
</td>
<td nowrap valign="bottom" width="104">
191.5
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Jun-2004**
</td>
<td nowrap valign="bottom" width="104">
7428
</td>
<td nowrap valign="bottom" width="104">
14.3
</td>
<td nowrap valign="bottom" width="104">
204.5
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-2004
</td>
<td nowrap valign="bottom" width="104">
8845
</td>
<td nowrap valign="bottom" width="104">
16.6
</td>
<td nowrap valign="bottom" width="104">
210.3
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-2005
</td>
<td nowrap valign="bottom" width="104">
10811
</td>
<td nowrap valign="bottom" width="104">
18.8
</td>
<td nowrap valign="bottom" width="104">
217.1
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-2006
</td>
<td nowrap valign="bottom" width="104">
10241
</td>
<td nowrap valign="bottom" width="104">
18.0
</td>
<td nowrap valign="bottom" width="104">
228.5
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-2007
</td>
<td nowrap valign="bottom" width="104">
11282
</td>
<td nowrap valign="bottom" width="104">
19.4
</td>
<td nowrap valign="bottom" width="104">
230.9
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-2008
</td>
<td nowrap valign="bottom" width="104">
14142
</td>
<td nowrap valign="bottom" width="104">
27.2
</td>
<td nowrap valign="bottom" width="104">
271.3
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
May 2009***
</td>
<td nowrap valign="bottom" width="104">
18744
</td>
<td nowrap valign="bottom" width="104">
31.4
</td>
<td nowrap valign="bottom" width="104">
279.4
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-2009
</td>
<td nowrap valign="bottom" width="104">
11793
</td>
<td nowrap valign="bottom" width="104">
23.5
</td>
<td nowrap valign="bottom" width="104">
293.3
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-2010
</td>
<td nowrap valign="bottom" width="104">
8199
</td>
<td nowrap valign="bottom" width="104">
17.3
</td>
<td nowrap valign="bottom" width="104">
289.2
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-2011
</td>
<td nowrap valign="bottom" width="104">
10264
</td>
<td nowrap valign="bottom" width="104">
21.1
</td>
<td nowrap valign="bottom" width="104">
285.1
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Jan-2012
</td>
<td nowrap valign="bottom" width="104">
8043
</td>
<td nowrap valign="bottom" width="104">
20.6
</td>
<td nowrap valign="bottom" width="104">
282.8
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Feb-2012
</td>
<td nowrap valign="bottom" width="104">
7360
</td>
<td nowrap valign="bottom" width="104">
17.4
</td>
<td nowrap valign="bottom" width="104">
279.8
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Mar-2012
</td>
<td nowrap valign="bottom" width="104">
7902
</td>
<td nowrap valign="bottom" width="104">
16.6
</td>
<td nowrap valign="bottom" width="104">
281.8
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Apr-2012
</td>
<td nowrap valign="bottom" width="104">
7077
</td>
<td nowrap valign="bottom" width="104">
17.0
</td>
<td nowrap valign="bottom" width="104">
282.5
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
May-2012
</td>
<td nowrap valign="bottom" width="104">
9110
</td>
<td nowrap valign="bottom" width="104">
18.1
</td>
<td nowrap valign="bottom" width="104">
288.3
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Jun-2012
</td>
<td nowrap valign="bottom" width="104">
8415
</td>
<td nowrap valign="bottom" width="104">
18.5
</td>
<td nowrap valign="bottom" width="104">
292.0
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Jul-2012
</td>
<td nowrap valign="bottom" width="104">
8760
</td>
<td nowrap valign="bottom" width="104">
19.2
</td>
<td nowrap valign="bottom" width="104">
291.2
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Aug-2012
</td>
<td nowrap valign="bottom" width="104">
8921
</td>
<td nowrap valign="bottom" width="104">
18.6
</td>
<td nowrap valign="bottom" width="104">
288.9
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Sep-2012
</td>
<td nowrap valign="bottom" width="104">
8391
</td>
<td nowrap valign="bottom" width="104">
19.3
</td>
<td nowrap valign="bottom" width="104">
289.2
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Oct-2012
</td>
<td nowrap valign="bottom" width="104">
9215
</td>
<td nowrap valign="bottom" width="104">
18.7
</td>
<td nowrap valign="bottom" width="104">
288.0
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Nov-2012
</td>
<td nowrap valign="bottom" width="104">
7921
</td>
<td nowrap valign="bottom" width="104">
15.8
</td>
<td nowrap valign="bottom" width="104">
287.8
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-2012
</td>
<td nowrap valign="bottom" width="104">
6557
</td>
<td nowrap valign="bottom" width="104">
14.9
</td>
<td nowrap valign="bottom" width="104">
293.9
</td>
</tr>
</tbody></table>
Source: ABS
*Record lowest proportion of first-home buyers
**Previous lowest proportion of first homebuyers after December 2012
***Highest proportion of first-home buyers
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First-home buyers at lowest share of new home loans in more than eight years: historical data to 1991

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Sydney-based non-bank lender BMC Mortgage Corporation has become the first lender to cut its variable rates outside of an official RBA rate cut.
The lender dropped its variable home loan rates by 10 basis points yesterday, despite the RBA leaving the cash rate unchanged last week.
According to mortgage comparison website Ratecity.com.au, it is the first lender to cut variable home loan rates out-of-cycle with the RBA
BMC Mortgage, based in Clarence Street in the Sydney CBD, offers<a target="_blank" href="https://www.bmcloans.com.au/bmc_rates_and_products"> homeowner and investment loans at 5.53% and a construction loan at 5.75%.</a>
The rate cuts follows RAMS and Westpac both offering fixed-rate home loans below 5%.
Michelle Hutchison, spokesperson for RateCity, said the slow lending market is changing the way lenders compete for customers.
“We’ve never seen lenders cut variable rates while the Reserve Bank cash rate is on hold.
Lenders are obviously feeling the pressure of the slow mortgage market and are doing whatever it takes to attract new customers, including cutting their interest rates out-of-cycle.
The latest rate cuts follow poor lending market results in December, released yesterday by the Australian Bureau of statistics (ABS).
There were 43,885 home loans financed across Australia in December 2012, which was 10% down on December 2011 according to RateCity analysis (original figures).
NSW saw the biggest hit with 24% fewer home loans written in December 2012 (12,135) compared with December 2011 (16,054). Western Australia was the only state to see an increase, of 3% more in December 2012 (6536) than December 2011 (6318), according to RateCity.
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Non-bank lender BMC Mortgage the first to move independently of the RBA with variable rate cut

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As demand from Chinese and other Asian buyers rises for Australian real estate a number of Melbourne agents have signed up to a new translation service which transforms their listing into audio-visual presentations that can be heard in Mandarin, Cantonese and six other languages.
Around 45 offices belonging to the Barry Plant and Stockdale and Leggo franchise networks have signed up to the service, which is provided by US-based technology firm DMI (Digital Motorworks).
Other agencies signed up to use the technology include Noel Jones, LJ Hooker, PRDnationwide and Greg Hocking.
Currently used in the US by around 25,000 car dealers, the technology has been adapted for real estate listings with the project in Australia spearheaded by business development manager Peter Daicos.
The automated service takes the images and editorial provided by the agent and creates a virtual video presentation overlayed with audio in a choice of eight languages - Mandarin, Cantonese, Japanese, Italian, Greek, Korean, Turkish and English.
Stockdale &amp; Leggo are currently selling this <a target="_blank" href="https://www.stockdaleleggo.com.au/glenwaverley/details.asp?internetid=273328&amp;OFFICE_ID=62&amp;order=&amp;suburb=&amp;surround=&amp;price1=0&amp;price2=9999999&amp;category=&amp;bedrooms=&amp;bathrooms=&amp;garages=2&amp;propertyType=&amp;OFFICE_GROUP_ID=&amp;offset=10&amp;st=">three bedroom house in Wheelers Hill</a>, in Melbourne’s south east, with a virtual video and audio commentary offered in eight languages.
According to the 2011 census, more than one in 10 residents (12%) in Wheelers Hill were born in China, the third highest demographic group behind English-born and Australians. The suburb also has a high proportion of Greek and Italian-born residents.
Daicos says new languages to be added to the service will include Vietnamese and Sudanese while DMI is also developing a seperate portal to include listings accesible in the eight languages and due to launch in about a month.
The technology is charged at a flat fee of between $200 and $250 + GST per month, depending on how many listings are to be translated, and is available both for properties for sale and those listed for rent.
If there are 100 properties to be translated, this works out to around $2.50 per week – a fraction of the cost a conventional expensive full production video.
There are also no start-up costs for agent.
“It’s about enhancement and communication,” says Daicos.
“Agents do not have to do anything as we use the existing data feed and images that are used to display their properties statically,” he explains.
The technology is compatible with properties listed on real estate portals such as realestate.com.au, domain.com.au and other listings sites.
It also comes with full reporting to assist agents with understanding consumer trends/ behaviors based on the number and average time the video is played. 

Properties can also be syndicated to YouTube.
Readers can download free Property Observer eBook <a href="https://propertyobserver.us2.list-manage.com/track/click?u=24bd0766a834290948593f5aa&amp;id=f29409991c&amp;e=7a53fc6dd9">Australia’s allure for Asian residential property investment</a>, detailing key insights into Asian buying trends and their influence in the Australian market in the Year of the Snake.
Agents interested in the service can send an email to <a href="mailto:pdaicos@dmotorworks.com.au">Peter Daicos</a>. 
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Estate agents offered multi-lingual audio translations to tap into Asian market

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Australian household net worth started rising in 2012 alongside a recovery in house prices in the later part of the year, graphs prepared by the RBA in its February monetary policy statement reveal.
<img width="470" height="419" alt="rbafeb11" src="/images/stories/2013/02/rbafeb11.gif">
<img width="470" height="362" alt="rbafeb111" src="/images/stories/2013/02/rbafeb111.gif">
The RBA also notes that residential vacancy rates remain relatively low at around 2%, contributing to rents growing faster than inflation and rising rental yields.
<img width="470" height="581" alt="rbafeb112" src="/images/stories/2013/02/rbafeb112.gif">
“Nationwide, rents are growing at an annual rate of around 4%. With rents growing faster than dwelling prices over the past year, nationwide gross rental yields have increased to 4.75% (and as high as 5.5% in Perth)."
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Australian household wealth rising as house prices and yields lift: RBA 

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Self-managed super fund investors are showing an increasing appetite for adding commercial real estate and residential property into their portfolios.
Figures compiled by the Australian Tax Office (ATO) show that from 2008 to 2012, commercial property investments by SMSFs increased by 77% while residential investments increased by 56%.
In total, real estate assets make about around 15% of SMSF portfolios, compared with 8% for the rest of superannuation industry.
SMSF investment in direct property 2008 – 2-12
<table style="width: 470px;" border="1" cellpadding="0" cellspacing="0"><tbody>
<tr>
<td valign="top" width="154">
 
</td>
<td valign="top" width="154">
Dec 2008
</td>
<td valign="top" width="154">
Dec 2012
</td>
</tr>
<tr>
<td valign="top" width="154">
Commercial property
</td>
<td valign="top" width="154">
$30.7 billion
</td>
<td valign="top" width="154">
$54.3 billion
</td>
</tr>
<tr>
<td valign="top" width="154">
Residential property
</td>
<td valign="top" width="154">
$10.6 billion
</td>
<td valign="top" width="154">
$16.7 billion
</td>
</tr>
</tbody></table>
Source: ATO
This appetite for property comes with its risks, not all of which relate to the unpredictability of the property market.
According to superannuation expert Peter Nicol, there are three issues relating to high exposure to direct property: yield, liquidity and the indivisibility of property.
Nicol, a principal with the Perth superannuation division of accountants RSM Bird Cameron, says the issue of yield relates to the minimum pensions required to be drawn from the fund.
If an investment property fails to deliver the yield required and the SMSF members are in their pension phase (65 or older) they face the problem of “addressing the liquidity issue of the fund for pension payments and meeting compliance requirements”.
This, Nicol says, may require the fund to liquidate assets.
“Property is not noted as being an easily liquidated asset: in some cases it can take months to sell a property and realise the cash for payments,” says Nicol in an article written for the Australian Financial Review.
“Where a pension member is reliant on that regular monthly income for lifestyle, the illiquid nature of the asset can create serious issues and could result in a property being sold on less than optimal terms,” he says.
And the issue of liquidity is a problem because of the indivisibility of property compared with other more liquid investments such as cash, shares or bonds.
“In most cases direct property can’t be sold in pieces to provide the needed liquidity to meet pension payments. This means where cash is short in the fund to meet pension payments of the pension member who is in need of a lump sum to meet medical bills, holidays or for special occasions, there isn’t the ability to partially redeem a direct property,” he says.
However, he says there are options to address these issues including that SMSF members keep the property, if it is being used for some specific purpose such as it is used in the family business or it is to be handed to the next generation
“The SMSF can keep the property effectively until the last member’s death,” says Nicol.
Readers can find more <a target="_blank" href="https://www.rsmi.com.au/services_/business_solutions/self_managed_superannuation_funds/superannuation_financial_review">SMSF advice and tips from Peter Nicol</a> via the RSM Bird Cameron website.
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SMSFs' ever-growing desire for property investments creating potential liquidity headaches

<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.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360965]

“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.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360981]

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.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360966]

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.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360969]

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.

[smartcode_project_cta:default project_id=149670]

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.

[smartcode_project:default project_id=152737 project_image_fid=377679]

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.

[smartcode_project:default project_id=152737 project_image_fid=377675]

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.

[smartcode_project:default project_id=152737 project_image_fid=377685]

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.

[smartcode_project:default project_id=152737 project_image_fid=377680]

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.

&nbsp;

[smartcode_project_cta:default project_id=152737]

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Larry Schlesinger

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