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The cash rate could fall as low as 1.5% because other sectors of the economy won’t pick up the slack from the declining mining sector, says former Reserve Bank board member professor Bob Gregory.
Gregory’s dark prediction is at the far end of the spectrum, the very far end in fact.
Bank economists reacting to today’s monetary policy statement put out by the Reserve Bank says it maintains an easing bias, but are circumspect on whether the cash rate will be cut much beyond one or two more times.
The Reserve Bank downgraded its economic forecasts today from a range of 2.25% - 3.25% to 2% - 3% with concerns about the pick-up in non-mining investment given the high Australian dollar and the labour market, though it did note a recover in dwelling investment and the housing market on the back of previous rate cuts.
Speaking at a recent economic conference, Gregory said interest rates could fall as low as 1.5% because the RBA will try to stimulate the economy to compensate for the end of the resources investment boom and a substantial decline in the prices of raw materials.
“Interest rates will fall. But I don’t think it’s going to work that much,” said Professor Gregory in comments reported on Wednesday by the Australian Financial Review.
Gregory’s conviction of a massive drop in the cash rate will be duly noted by many: aside from his former role as RBA board member from 1985 to 1990, he was also the first to diagnose the phenomenon of Dutch disease, where a mining boom drives up exchange rates and hurts the rest of the economy.
Along with the mining investment slide, Gregory predicts that real income in Australia could fall by 15% in the next few years with resulting lower living standards.
Commenting on the monetary policy statement, Westpac chief economist Bill Evans says the bank is encouraged that RBA governor Glenn Stevens “pointed out that there was scope to further cut rates should demand conditions require it”.
Evans points out that Stevens uses the word “scope” and “for the time being” in his comments on the cash rate.
“It is our experience that the use of [these terms] both indicate that the bank remains quite open to further easing policy.
Evans expects one further rate cut in the current easing cycle to take the cash rate to 2.75%.
ANZ’s head of Australian economics and property research, Ivan Colhoun, says the risks section of the report “details concerns the bank has about each of residential construction, mining investment, non-mining investment and public spending.
“These risks and the forecast for growth at or below trend over the next two years with low inflation suggests a strong bias to ease (as does the use of the term policy remained appropriate for the time being)”.
But, Colhoun says the RBA is still “clearly in assessment phase and will watch incoming data to decide whether the economy needs more stimulus.
“The continuing slow growth of employment and forecast rise in unemployment suggests clearly to us that the economy could afford to grow more quickly than at the present time and further gradual easing should be expected over 2013,” he says.
ANZ has moderated its forecast of a cash rate of 2% by year-end, but says there could be up to two rate cuts.
CommSec senior economist Savanth Sebastian says the RBA is "clearly in wait and see mode" after providing the domestic economy with 1.25 percentage point worth of rate cuts in a nine month period. “Overall, the average interest rate on outstanding housing loans is now about 25 basis points above its 2009 low” … “The cumulative reduction in interest rates is affecting interest-sensitive parts of the economy, though the full effects will, of course, take more time to become apparent”.
Responding to the monetary policy statement, Sebastian says that while the Reserve Bank may have downgraded growth forecasts over the next year, “the accompanying commentary certainly suggests that board members are more comfortable than even just three months ago”.
“The risks to the ‘global economy appear to be more balanced’ while domestically the ‘significant monetary stimulus already in place, and signs of lower interest rates are having some of the expected effects’.
“In addition the Reserve Bank was at pains to point out that the average interest rate on outstanding housing loans is only ‘25 basis points above its 2009 low’,” he says.
CommSec expects the RBA to leave the cash rate on hold over the next couple of months though it “remains watchful”.
“There are few signs that the RBA is preparing to cut rates again in the short term, but arguably there are more events likely to result in lower rates than higher rates in the period ahead,” says Sebastian.
Commonwealth Bank economist John Peters says the monetary policy statement confirms the RBA’s “clear easing bias”.
“The financial markets have another two rate cuts priced in over the next few quarters, with the first next month.
“The capex data later this month is likely to confirm the RBA’s view that mining investment looks set to peak late this year.
“It may be sufficient to convince them, along with a benign fourth quarter (of 2012) wages report, that more insurance, via another rate cut, is required,” he says
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Gloomy former RBA board member Bob Gregory predicts cash rate to fall to 1.5% but other bank economists more circumspect

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ANZ has announced that variable interest rates for Australian retail mortgages will remain unchanged after its February interest rate review.
ANZ’s standard variable mortgage rate remains at 6.40% per annum (6.50% p.a. comparison rate).
Variable interest rates for small business lending also remain unchanged.
ANZ conducts its own review of interest rate setting on the second Friday of every month.
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ANZ leaves variable mortgage rates unchanged at independent review

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The housing market is responding to cash rate cuts which began in November 20011 says the RBA in its February statement on monetary policy released today.
While warning that near-term prospects for business investment outside the mining sector continue to be subdued, the RBA said there are “signs that the housing market is responding to the series of interest rate cuts over the past 15 months”.
“Since the middle of 2012, residential building approvals have increased, rental yields have moved higher and prices in the established housing market have picked up,” added the RBA.
The RBA notes other positive developments in the housing market.
“Overall, improving conditions in the housing market are expected to continue to provide support to dwelling investment, while non-mining business investment is forecast to pick up gradually over time.”
And it provides commentary on the improvement in capital city house and unit prices.
“Australian capital city dwelling prices have risen by 4% since their trough in mid-2012.
“Recent price rises have been relatively broad based, with all state capitals recording higher prices over the three months to January.
“Some other indicators also point to a strengthening in the established housing market. Auction clearance rates in Sydney and Melbourne have continued to rise from their lows in late 2011 and early 2012.
“Private sector surveys indicate that, on balance, households expect house prices to rise further over the year ahead. Housing loan approvals increased moderately over the second half of 2012, underpinned by loans to investors and repeat buyers, although they were little changed relative to the outstanding stock of housing credit," says the RBA.
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Housing market is responding to rate cuts with many other positive signs: RBA

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Mortgage insurer Genworth has reported both a drop in the number of lenders mortgage insurance (LMI) claims paid out and the average size of claims in its latest quarterly update.
Genworth paid 878 claims over the December 2012 quarter, compared with 963 in the September quarter – a decline of 9.6%.
The average value of claims declined from $84,000 to $81,000.
Across Australia, the overall delinquency rate on LMI mortgages improved by 6 basis points to 0.41% quarter-on-quarter.
Lenders Mortgage Insurance (LMI) is generally required for borrowers that don’t have a 20% deposit and insures the lender against any shortfall if the borrower defaults on their home loan and the lender is required to sell the property as mortgagee in possession.
<img alt="genworthfeb11" height="598" width="470" src="/images/stories/2013/02/genworthfeb11.gif">
The highest number of claims by region were for loans over properties in the tourism-dependent and struggling Coastal Queensland market, with 112 claims paid, but this was down from 113 and 128 in the two previous quarters.
Claims for loans to small businesses and self-employed borrowers declined from 116 to 103 over the quarter.
Globally, Genworth reported a strong rise in net income from US$34 million to US$166 million with earnings per share of 34 cents..
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Size and number of mortgage insurance claims fall in December quarter: Genworth

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Self-funded retirees who invested their savings in failed debenture issuer and mortgage lender Wickham securities should expect to be reimbursed at best around a quarter of their capital.
Investors in Wickham Securities $1 notes are owed around $30 million.
Based on the information currently available, Grant Sparks, joint liquidator from PPB Advisory, says a return of between six cents and 22 cents for every dollar owed should be expected.
Creditors voted this week to place <a target="_blank" href="https://www.propertyobserver.com.au/industry-news/administrators-find-%24108-million-black-hole-in-wickham-securities/2013013059033">Queensland-based Wickham Securities</a> in liquidation.
“We will continue our investigations and seek to realise the loan book,” Sparks tells Property Observer.
Wickham Securities provided 21 loans totalling $28 million at high interest rates to borrowers to fund or refinance commercial property developments.
Of this amount, $5 million was lent to borrowers who are now in liquidation while a further $9.5 million was lent to borrowers where receivers or administrators have been appointed.
PPB Advisory will also examine third party security to see if that can be recovered to pay back investors.
PPB Advisory were also appointed administrators of seven companies related to Wickham, including Sherwin Financial Planners, a business run by Wickham chairman Bradley Sherwin, whose clients included self-funded retirees and some high-net worth individuals advised to invest in the mortgage lender's fund programs.
“We will also continue to provide reports to ASIC,” says Sparks.
Investigations by PPB Advisory found what appears to be a<a target="_blank" href="https://www.propertyobserver.com.au/industry-news/administrators-find-%24108-million-black-hole-in-wickham-securities/2013013059033"> $10.8 million hole in Wickham’s cash flow position</a>.
Sparks says he should next be able to provide a meaningful update to creditors in around eight weeks’ time.
No date has yet been set for an update.
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Wickham Securities creditors to get between 6 and 22 cents back for every dollar: liquidator

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Australia's seasonally adjusted unemployment rate remained steady at 5.4% in January, says the ABS.
This was better than economists’ expectations of a small rise to 5.5%, a result which will be noted by the Reserve Bank as it starts thinking ahead to its March 5 monetary policy meeting.
The economy added a further 10,400 jobs over the month with total employment at 11,549,100.
The increase in employment was driven by increased part-time employment, up 20,200 people to 3,450,700 and was offset by decreased full-time employment, down 9,800 to 8,098,400 people.
The increase in total employment was mainly driven by an increase in female part-time employment. The number of people unemployed increased by 2,000 people to 659,600 in January. The ABS reported a seasonally adjusted labour force participation rate decrease of 0.1 percentage points to 65% in January.
CommSec economist Savanth Sebastian says there is "something for everyone in the latest jobs data". 
"The optimists could focus on the rise in overall employment and conclude all is fine. The pessimists would look at the third consecutive fall in full-time jobs coupled with the fall in hours worked and conclude something more concerning," he says.
"What is clear is the job market isn’t shooting the lights out but by no means is unemployment soaring. In a big picture sense the job market is in a holding pattern with a modest degree of softening.
"Yes, it was encouraging that employment grew but more forward looking indicators like job advertisements have suggested that further labour market gains may be more circumspect. In fact internet and newspaper job advertisements have fallen for 11 consecutive months, suggesting job growth is likely to flat line in coming months," he says.
"In a perverse way the unemployment rate is holding steady because more people gave up the search for work.
"Over the past year the missing ingredient in the domestic economy has been confidence, however there are anecdotal signs that there is an improvement in confidence. Rate cuts, healthy house prices and rising share markets should provide some level of encouragement to policymakers, households and businesses.
"The rate cuts in recent times will help to support activity in coming months and continue to provide businesses with a more breathing space – especially given that trading conditions are difficult," he says.
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Unemployment unchanged at 5.4% in January but full-time employment falls: ABS

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Westpac has announced a two-year fixed rate of 4.99%. The home loan rate is a 40 basis point reduction, and is effective from today.
It's the bank's lowest two-year fixed rate offering since September 2009 and it is currently the only major bank to offer a fixed-rate home loan below 5%, though coming at a time when demand for fixed-rate products is falling.
Westpac will hope customers will consider the lower fixed-rate offering as an alternative to a variable rate mortgage (where mortgage exit fees are banned and customers can refinance relatively easily), locking them in for two-years.
NAB’s lowest fixed-rate home loan rate is 5.34% for its one-year home loan, the Commonwealth Bank offers a one-year fixed rate of 5.19% while ANZ offers a two-year fixed rate at 5.49%.
<a target="_blank" href="/news">A number of smaller lenders </a>offer fixed rate of 4.99% including ME Bank, Resi and Newcastle Permanent.
Non-bank lender Easy Street, owned and operated by Sydney-based Community First Credit Union, is offering a variable rate honeymoon home loan special rate at 4.99%
The Westpac fixed-rate cut follows its <a href="/news">subsidiary bank St. George</a> announced cuts to its fixed rate offerings today.
Another lender, CUA today cuts three-year fixed home loan to 5.30%, which it says is one of the lowest in the current market.
Over January, mortgage broker Mortgage Choice reported that demand for variable rate loans reached a six-month high accounting for 83.65% of the company’s new home loan approvals.
Consequently, demand for fixed rate loans slipped, for the second consecutive month, to 16.35% of newly approved loans.
Mortgage broker AFG also reported a drop in demand for fixed-rate home loans over January.
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Westpac lead the big banks below 5% on fixed home loans

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St George has cut its fixed home loan rates by between 10 and 15 basis points.
For those who take out an advantage package loan, the bank cut its one-year fixed rate to 5.15% per annum, its three-year fixed-rate to 5.29%, four-year fixed rate to 5.64% and five-year fixed rate to 5.69%.
The new rates are available for a limited time for new and existing customers.
Customers with fixed rate applications underway that have not yet settled, are also eligible for these new lower interest rates.

It has also cut its fixed rates for non-package customers with a one-year fixed rate to 5.30% pa, its three-year fixed-rate to 5.44%, four-year fixed rate to 5.79% and five-year fixed rate to 5.84%.
“Fixed loans are a popular option, as they provide customers with the security of having a set loan repayment each month. This is a good way for customers to manage their household finances more effectively and St George’s current fixed rate offer for 1, 3, 4 and 5 years puts us in a leading position against the four major banks,” says Andy Fell, general manager at St George Retail Banking.

In addition, anyone who applies for a St George home loan receives a free Australian Property Monitors (APM) property profile report for the property they are interested in buying and its location.  St George also offers conditional loan pre-approval that is valid for six months, as well as a 5% deposit requirement.
Also announcing a cut today was <a target="_blank" href="https://www.propertyobserver.com.au/news/westpac-lead-the-big-banks-below-5-on-nfixed-home-loans/2013020659208?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news">Westpac, with its packaged two-year fixed-rate mortgage now at 4.99%.</a> Since the RBA left the cash rate steady on Tuesday several lenders, including most of the major banks, have trimmed up to 40 basis points off certain fixed rate products, says leading mortgage broker Loan Market.
Loan Market corporate spokesperson Paul Smith says the latest shift in fixed interest rates indicates lenders are all anticipating further rate cuts this year.
“We haven’t seen fixed rate this low in several years and the spread between them and variable remains in the unique position where variable are nearly a full per cent higher,” Smith says.

Smith says that although the RBA cash rate is at 3% the chances of it falling more than a full percentage point in the year next were slim, considering the RBA’s conservative response to the soft areas of the economy over the past year.
“Fixed-rate products are currently priced at a level that variable rates may not reach for several months; even with the help of RBA rate cuts."
Smith says all borrowers had varying considerations and that one’s personal circumstances, aversion for risk and financial goals were the key fundamental to bear in mind when looking at fixed interest rates.

“Fixed-rate borrowers should have the mindset to accept that variable rates could fall to a place lower than their fixed rates.”
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St George cuts fixed rates, with three-year fixed at 5.29% 

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Property developer Australand has reported a 5% rise in full-year operating profits to $142.1 million, with strong sales in its residential communities in NSW and a more resilient performance in some of its Melbourne apartment projects due to growth in demand for medium-density housing.

Australand reported 97 sales <a href="https://www.propertyobserver.com.au/developments/australand-s-carlton-development-local-more-than-half-sold-as-first-home-buyer-deadline-draws-nearer/2012062455235" target="_blank">at its Local project</a> in <a href="/news">Carlton </a>in Melbourne (pictured below), with an average price of $500,000, making it the top-selling medium-density project for the year, now 72% sold out. The project is in partnership with <a href="https://www.citta.com.au/pages/projects/living_carlton.php" target="_blank">Citta Property Proup</a>.
{yoogallery src=[images/stories/december13local]}
This was followed by its 333 Burwood apartment project near Camberwell junction, which recorded 93 sales with an average price of $720,000.

Sales of residential land on the outskirts of Melbourne remain “fairly subdued” due to softer trading conditions at the lower end of the market.

<img alt="australandfeb7" src="/images/stories/2013/02/australandfeb7.gif" width="470" height="301"> Overall, the developer is “cautiously optimistic” about 2013 with the resurgence in Sydney “very pleasing”

The top selling land project was Greenhills Beach in Cronulla in Sydney’s Sutherland Shire with 136 sales and an average price of $830,000 per lot.

Australand also reported strong sales at Cockburn Central in Perth (94 sales with average price of $440,000) as well as Kangaroo Point in Brisbane.

There were also strong levels of pre-sales at the NSW projects of Watervue at Wolli Creek (73% pre-sold), Air at Clemton Park (97% pre-sold) along with Melbourne apartment projects Hyde (98%).

At today’s full-year results presentation, anaging director Bob Johnston said it was “interesting times” for Australand given the recent GPT offer for the business and majority shareholder CapitaLand currently conducting a strategic review of its investment.

He said 2012 was a challenging year, but that there had been a “marked” pick-up in the fourth quarter of the year, particurlarly in residential sector.

Johnston noted the 16% rise in residential earnings from $587 million to $606 million driven by a stronger Sydney offsetting a weaker Melbourne market with an increase in margins and higher average sales prices.

This was a strong performance than its commercial property investment portfolio, where earnings rose 8% over the year, but with high occupancies and driven by government or ASX-listed tenants.

He said this portfolio remained in “good shape”.

There were also strong sales across its Greenhills Beach residential community project in <a href="/news">Cronulla</a>, with 136 sales at an average price of $840,000, and Greenvale residential community, 20 kilometres north of Melbourne.

Australand holds 1,169 contracts on hand for the full financial year with 64% expected to settle in 2013.

“While the consumer remains cautious, our residential division delivered strong growth in earnings and is well positioned with contracts on hand up 24% on last year,” says Australand managing director Bob Johnston.

Australand Executive general manager for residential, Rod Fehring reported that there had been 1,788 gross lot sales over 2012, which though down on 2011, had brought with it forward momentum.

Of these 1,788 sales, 1,202 were in the resurging Sydney market with the top 10 projects contributed 84% of residential earnings in 2012.

Fehring says demand is being supported by ongoing interest from offshore investors as well as “excellent presales”.

“Sales activity lifted by 41% in NSW and 33% in WA.

Fehring says Perth benefits from favourable population growth and a very tight rental market resulting in increased overall sales activity.

“Sentiment from mining sector will drive the market, but it is a balanced market. We don’t expect rises in prices, just an improvement in activity.”

Looking at the south-eat Queensland market, Fehring said that at the start of the year things seemed to be improving, with Brisbane holding a median price advantage over the other capital cities.

“But sentiment is weak, and the recent floods may impact further,” he said.

Considering the overall market, Fehring said Australand is “cautiously optimistic about 2013” with lower interest rates, new project commencements that will make substantial contributions and fundamentals in key markets looking “reasonably sound”.

Shareholders will receive distributions of 21.5¢ per share with a similar forecast for 2013 financial year.</body></html>

Australand profits up 5% in 'interesting times', with strong demand for Melbourne apartments 

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The office vacancy rate in the Sydney CBD, Australia’s biggest capital city office market, fell from 8.1% to 7.2% over the six months to January 2013, moving against the national trend of a rising office vacancy rate, according to the latest Property Council’s Australian Office Market Report.
Nationally, Australian office vacancies now stand at 8.4%, up from 7.8% in July 2012, driven by a “dramatic” fall in demand for office space.
Vacancy rates eased in Perth and Brisbane as demand for office space from mining companies and other businesses that service the resources sector “moved down a gear”.
Perth remains the tightest CBD office market, though its vacancy rate eased from 4.2% to 5.7%, with demand for office accommodation in Perth in the last six months the weakest since 2009.
“The Perth office market was affected by cost-cutting in resources companies, particularly the iron ore sector, last year. This resulted in less demand for office space by firms providing professional services to the sector”, says Property Council executive director,Joe Lenzo.
The Melbourne vacancy rate fell 5.6% to 6.9% over the period with and only premium and A grade stock experiencing substantial positive demand.
<a href="https://www.propertyobserver.com.au/office/melbourne-landlords-with-poor-quality-office-space-placed-on-notice-charter-keck-cramer/2013020659190?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news" target="_blank">Consultants at Charter Keck Cramer</a> anticipate a fall in demand for office space in the Melbourne CBD and Docklands over the next two years, with better quality office space best placed to attract tenants.
In Brisbane, the vacancy rate spiked from 8.0% to 9.1% bringing to an end “a sustained two-year run of strong demand and exceptional take-up levels in the market”.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2013/02/pcafeb7.gif"><img src="/images/stories/2013/02/pcafeb7thumb.gif"></a>
 
PCA Queensland executive director Kathy MacDermott says the slowing resources sector has triggered a fall in demand to a four-year low with net absorption during the six-month period totalling a mere 2,406 square metres.
The against-trend fall in Sydney’s vacancy rate was masked to an extent by a high rate of withdrawals, but also from demand across the top end of the market.
 
<hr class="system-pagebreak">
 
Net absorption of office space in the Sydney CBD – the amount of space leased minus the amount of space vacated over a given time frame – totalled 8,466 square metres, but withdrawals were at a five-year high, with 87,903 square metres taken off the market.
Withdrawal of stock was strongest in the B- and C-grade markets – with 35,095 square metres and 36,257 square metres taken off ine respectively – as owners looked to refresh their offerings.
These were offset by 48,637 square metres of additions to the total commercial office stock.
“The premium market continues to enjoy strong demand – with 9,957 square metres of net absorption in the past six months – and its vacancy rate falling from 7.8 % to 6.3% in the past six months,” says Property Council NSW executive director Glenn Byres.
The A-grade office vacancy rate fell from 7.5% to 7.4% with net absorption totalling 10,166 square metres.
Commenting on the Sydney performance, Knight Frank managing director for NSW Richard Horne says there has been a marked improvement in sentiment and activity in the Sydney office market in the last four months.
“A large number of new mandates – both onshore superfund money and Asian-based offshore funds – are circling the market.
“These groups are mainly focused on the CBD, although selective suburban markets are starting to be considered. The sharp drop in borrowing costs have made our market very attractive on a world scale," he says.
“Knight Frank recently marketed 9 Hunter Street where interest was stronger than we've seen for many years, with 8 serious bidders. This bodes well for a strong year ahead,” he says.
The PCA report showed that demand for Australian office space in the six months to January dropped to less than half the 20-year average and was just one third of that recorded in the first six months of 2012.
On a more positive note, PCA chief executive, Peter Verwer, points out that overall vacancies sit below the historical average and the GFC peak with only four major markets recorded vacancies of more than 10%.
The four markets with vacancy rates above 10% are the Gold Coast, where the vacancy rate fell marginally from 21.5% to 20.3%; Canberra, which rose from 9.8% to 11.9% (and could rise higher in an election year), the Sunshine Coast, up from 13.6% to 14.1% and Crow’s Nest/St Leonards on the Sydney north shore, which rose from 10.7% to 12%.
“The capital cities of mining states went off the boil in the second half of 2012 and vacancy rates rose in two out of three markets across the country,” says Verwer.
“These vacancy numbers reflect the impact of insipid service sector growth and a resources industry engine that has moved down a gear”.
“Sluggish economic growth and weak demand for commercial space reinforce the need for a better targeted fiscal stimulus and further interest rate cuts,” Verwer says.
 
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Sydney the only partial bright spot as CBD office vacancies rise, with mining demand down: PCA

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

The Eveleigh brings house-like apartments to Broadbeach

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

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

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

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

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

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Castle Hill, the longtime hub of the Hills District, has been one of the major beneficiaries of Sydney's Metro expansion, with improved connectivity helping drive continued population growth, development and buyer demand across the Hills District.

But despite that growth, the suburb has seen relatively few major new apartment projects brought to market over the past 18 months.

Hills District developer Reve Group is looking to fill that gap with <a href="https://www.apartments.com.au/new-apartments/nova-r-ve-castle-hill-2-garthowen-crescent-castle-hill-nsw-2154">Nova Rêve</a>, a major new mixed-use precinct on the corner of Garthowen Crescent and Old Castle Hill Road, a short walk from Castle Hill Metro Station and Castle Towers.

[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.

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[smartcode_project_cta:default project_id=152737]

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Larry Schlesinger

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