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The Gold Coast house-and-land market has sunk to its lowest level in over 30 years.
Residential land and house-and-land packages sales totalled just 980 for the full calendar 2012 year, compared with a long-term average sales of 4,200 per year since 1995, according to the latest quarterly Prodap Report.
This is particularly bad news for developer Stockland, which is selling residential lots and house-and-land packages in six residential communities on the Gold Coast and has 35% of the market.
According to the Prodap Report, the three biggest residential development projects on the Gold Coast are all Stockland projects.
Stockland’s biggest is its Riverstone Crossing project in Upper Coomera, which accounts for 10% of the vacant land market on the Gold Coast. Land in the project is priced between $205,000 and $480,000.
Prodap reports just 22 sales over the December quarter in this project, though up from 15 in the September quarter.
Stockland acquired the 14-hectare site along the Coomera River in 2007 for $15.7 million with plans for 652 lots. To date 337 lots have been sold, with 15 still available and another 75 due to be released over the next 12 months.
Stockland’s two other major projects on the Gold Coast are Highland Reserve also in Upper Coomera, with 19 sales over the quarter (25 in September quarter), and Ormeau Ridge in Ormeau, with 18 sales over the quarter (down from 35 in the September quarter).
In its most recent market update in December, Stockland reported that the new housing market remained “poor” with a “negligible impact” from recent interest rate reductions. The introduction of the $15,000 construction grant available to first-home buyers in Queensland who buy or build a new home since September has also not had an impact on demand.
Stockland's head of residential communities, Mark Hunter, said market uncertainty and a lack of confidence were the biggest problems facing the market.
The Prodap report says there are over 2,800 lots that developers plan to produce over the next 12 months – not all of which will go ahead in the current market – adding that Stockland, Mirvac, Lend Lease and QM Properties have combined sufficient land banked to satisfy total market demand.
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<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2013/02/prodapfeb7.gif"><img src="/images/stories/2013/02/prodapfeb7thumb.gif"></a>
Along with the drop in demand, the report quotes Department of Natural Resources figures showing that Gold Coast house prices fell by 4.5% and units by 7.3% during 2012.
Prodap Report author Bill Morris says such a “grim picture” of the new housing production market has not been witnessed since the 1981-82 recession.
Over the December quarter Prodap records 166 residential lots sales and 64 house-and-land packages sales – a total of 230 compared with 239 sales in the September quarter.
There are 1,117 vacant lots and house-and-land packages for sale on the Gold Coast, with Stockland the most heavily exposed, with 35% of the market.
“The sad news is that not even record low interest rates seem to have had any effect on the volume of sales. Sad but true,” says Morris, who adds that a reduction in council infrastructure charges had no effect on new production.
Morris says the problem is that established houses are cheaper and in many cases better located than new houses.
“In other words, replacement costs are higher than the price of older homes.
“Why is this so? Land prices are still too high, representing more than 50% of the price of the average home. This was not case 10 years ago, when the average serviced block cost $60,000. In 10 years that has risen to $220,000, almost 300% or 30% per annum” says Morris.
Morris says land prices have escalated out of all proportion to house prices over the past 10 years.
“There needs to be a new era of thinking about what level of services constitutes an 'acceptable' house lot. Do we need 'fully serviced' lots? Can we use septic tanks or package sewage treatment for individual lots?
“Should we continue to treat stormwater to very high standards, or should we 'dose' creeks with nitrates to neutralise phosphorous and nitrogen build up?” says Morris.
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Stockland exposed as Gold Coast house-and-land activity falls to worst level in 30 years: Prodap

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REA Group, publisher of Australia's biggest property listings website realestate.com.au, has reported a 25% rise in interim net profits after tax for the half year to December 31 of $51.6 million.
It's Australian division, which generates 90% of group revenue, increased revenue by 21% to $144.7 million.
Paying agent numbers fell by 4% from 9,324 to 8,982 compared with the previous comparable period, but average revenue per agent rose 27% to $1,924 on the back of them taking pricier premium advertising packages.
Site visits lifted by 2% to 19.4  million across its three Australian websites realestate.com.au, realcommercial.com.au and property.com.au.
Australian real estate listings on realestate.com.au declined 2% year-on-year to 749,634.
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REA Group profits up 25% but paying agent numbers fall

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Absentee landlords have been placed on fresh alert against overseas criminals selling their properties after a plot to sell two investment properties in late January was foiled by vigilant Perth estate agents.
Both properties are owned by investors who live in South Africa, and the case follows the foiling of similar scams in <a href="https://www.propertyobserver.com.au/residential/another-nigerian-perth-scam-house-sale-averted/2012101557180" target="_blank">October</a> and <a href="https://www.propertyobserver.com.au/residential/vigilant-applecross-perth-estate-agency-prevents-another-fraudulent-house-sale-nigerian-scam/2012060454969" target="_blank">June</a> last year.
In the last few years scammers have managed to sell two properties they didn't own – one in Karrinyup in 2010 and another in Ballajura in August 2011.
WA Today.com.au reports that scam artists attempted to sell a property worth $700,000 in the northern suburbs of Perth and another in the southern Perth suburbs worth $800,000.
In one case, the agent became suspicious after receiving a phone call from the scammer, who had an African accent, wanting an urgent sale for the property that had just sold two months earlier, said Consumer Protection and WA Police in a joint statement.
“In the second case, the agency had received a request to sell the property supported by copies of fake passports, forged signatures and a letter of verification purportedly from the Australian High Commission in Pretoria, South Africa."
Documents obtained by WA Today.com.au show a date on the letter to the high commission of January 31.
“The alarm was raised when the agency’s sales manager identified warning signs of property fraud he had learned in presentations and educational material provided by Consumer Protection, WA Police and REIWA. In this case, scammers requested an urgent sale and promised the agency future sales – similar tactics used in previous scam attempts.”
The latest attempts are being investigated by the WA Police Major Fraud Squad with a view to identifying the offenders.
“The investigation will analyse similarities between these incidents and past successful and attempted property frauds, such as the links to Africa and the methods of contact. It’s clear that the criminals are again active and could be targeting other agencies now and in the future, so everyone in the property industry needs to be extra vigilant,” said Detective Senior Sergeant Dom Blackshaw.
While the frauds were detected fairly quickly, Commissioner for Consumer Protection Anne Driscoll expressed concern and disappointment that these attempts were not detected much earlier by property management staff.
“It’s vital, where possible, that these fraud attempts are picked up by real estate agents before the scammers even get to first base and certainly well before any documents and personal details of the real owner are sent to these criminals,” Driscoll said.
“It’s important that real estate agents and their employees independently confirm any change in contact details for the properties they manage. It is clearly stated in the scam prevention guidelines issued to agents that confirmation of changes should first be sent to original contact addresses, both physical and email, that are on file. This will alert the real owners should there be an attempt to steal their identity and ultimately their home.
“Agents should be particularly vigilant when a request for change in details comes from an absentee owner, but all transactions should be thoroughly scrutinised to ensure they are only dealing with the true owner. Agents must rely on good procedures to detect these fraud attempts early."
Two weeks ago <a href="https://www.propertyobserver.com.au/residential/how-to-stop-property-scammers-selling-homes-they-don-t-own-david-airey/2013012358923" target="_blank">REIWA president David Airey wrote </a>that the state government has implemented a system "whereby the seller of a property must produce evidence of identity in much the same way as you do when you open a bank account or sign a mobile phone contract".
"This means a 100-point check in most cases, through which the seller has to produce a series of different identity documents such as a passport, driver’s license, rates notice, bank statement and birth certificate. It is almost impossible for such multi-layered counterfeit to occur and hugely reduces the risk of property fraud," wrote Airey.
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Absentee landlords on alert as Perth estate agents foil fresh scammers

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Melbourne office landlords with better quality floor space are best positioned to weather what is expected to be a softer office rental market over the next two years. 
Consultants Charter Keck Cramer (CKC) are anticipating weaker demand for office rentals in the Melbourne CBD and Docklands markets over 2013 and 2014, with not yet fully committed new supply adding to the pool of available space. 
“Melbourne’s central city office market (CBD and Docklands primarily) have been holding up well in the context of the numerous headwinds that have buffeted the economy and global property markets,” writes CKC director Robert Papaleo in a new commentary piece. 
“Although central city office rents are not growing and vacancy rates are trending up, new supply has continued and investors have keenly sought prime assets at lower yields. 
“The softening demand environment and other indicators clearly signal however that conditions in 2013 and 2014 will shift in favour of tenants in an increasingly competitive marketplace where better quality floor space will become more cost-effective,” he says. 
Papaleo says there now a “clear window of opportunity” for both landlords and tenants to respond proactively to the reality of this emerging situation. 
“Owners that act early and decisively will cap their exposure to the downside risk of further weakening in the rental market. 
“Tenants that properly understand their own requirements (and lease obligations) relating to their accommodation will be best placed to take advantage of changing market conditions and the inevitable opportunities as they arise,” he says. 
A further indication of weaker demand conditions going forward is a rise rental incentives being offered by landlords. 
These can include such things as a certain number of rent free months or contributions made by the landlord to the cost of office fit-outs. 
Papaleo says rent incentives have been a “notable feature of office lease negotiations since 2009 in response to GFC induced fears”. 
These incentives eased through 2011 due to a brighter outlook, but rose again through the second half of 2012. 
“The market is implicitly recognising, through higher incentives, that the impending new supply is expected to have a detrimental effect on vacancies. 
“Firstly, there is a relatively high level of uncommitted floor space in some new buildings under construction which will be compounded by vacant floor space being left behind by those tenants moving into the new buildings. 
“This situation is in contrast to what happened in the last supply cycle (2002 – 2008). 
“In the last cycle, demand from anchor tenants was so strong that it was able to (almost completely) underwrite new floor space prior to its completion whilst other tenants were expanding to absorb much of the space being left behind which prevented extended vacancy. 
“Strong market conditions also implied that it was viable for owners to withdraw vacant backfill floor space for upgrading and refurbishment. 
“The weakening rental scenario this time around however will not afford owners the luxury of withdrawing space through 2013 and 2014 which will leave owners fully exposed to vacant floor space,” he says.
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Melbourne landlords with poor-quality office space placed on notice: Charter Keck Cramer

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All immigration signs are pointing to a continued rise in the number of houses and apartments being bought by Chinese immigrants on Australia’s east coast.
According to the ABS, around 17,580 Chinese people settled permanently in Australia in 2012, up from 15,780 in 2011 and 14,720 in 2010.
Short term Chinese visitor arrival numbers - a forward indicator of demand for Australian residential property – are rising at even faster rate.
The ABS reports that Chinese short-stay visits to Australia have more then trebled over the past decade from 190,000 in 2002 to 630,000 in 2012.
Similarly, Indian short stay visits have jumped almost four fold from 45,000 to 160,000 over the same period.
Its not suprising as at the same time Australia's close proximity to Asia, the resilience of its economy driven by the mining boom, a transparent real estate market, and new apartment developments being actively marketed in China and other Asian markets are all enticing factors.
Last year alone there were an extra 85,000 visits from Chinese nationals - an increase of 16% over 2011 – with Chinese tourists now the second biggest visitor group behind New Zealanders, accounting for around one in 10 of the 6.1 million tourists who arrived for holiday or business purposes last year.
The ABS figures cover stays of up to 12 months, more than enough time for Chinese visitors that arrive in Australian on holiday or business to have a look at what’s on offer, in many cases decide they like what the country has to offer them and perhaps buy an apartment close to the Melbourne or Sydney CBD where their children will attend university or a family homes in suburbs in desirable school zones.
Evidence of this trend can be seen in Census 2011 figures, which show the number of Chinese-born people living in Australia has increased by 54% over the five year period since the last census from 207,000 to 319,000 while Indian-born resident numbers increased by 100% from 147,000 to 295,000 and now rank as the third and fourth biggest expat populations in Australia after British and New Zealanders.
Meriton’s Harry Triguboff says that most buyers of his new apartment blocks in Sydney, Brisbane and on the Gold Coast are from Asia while <a target="_blank" href="https://www.propertyobserver.com.au/residential/asian-buyers-vital-to-australian-property-market-morry-schwartz/2011121552862">Morry Schwartz, who heads up Melbourne developer Pan Urban</a>, says they are vital to the success of future residential developments.
Making the permanent move even easier now for high-net worth Chinese and other foreign nationals is the recent launch of the <a target="_blank" href="/news">“Golden ticket” significant investor stream visa </a>that provides non-English speaking immigrants with a four-year visa to live in Australia if they invest $5 million.
Apart from Chinese and Indian tourists, visitor numbers from other Asian countries are also rising with Japan, Singapore, Malaysia, South Korea and Hong Kong all in the top 10 visiting nationality groups.
"New Zealand remains our biggest source of overseas short-term visitor arrivals with 1.2 million trips in 2012 or one in five visitors coming from there, but China is now in second place with one in ten, followed by the UK, the USA and Japan,” says Neil Scott, assistant director of demography at the ABS.
"The top five countries alone provided more than half of last year’s overseas visitors, and there were an extra 85,000 visits from China - an increase of 16%. The next largest increase in visitor numbers came from Malaysia, with a 9% increase.
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Chinese signal property buying intentions in Australia as permanent arrivals numbers rise and visitor numbers jump dramatically

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Christmas failed to spur a pick-up in retail trade in shopping centres and retail strips with sales falling 0.2% in December on a seasonally-adjusted basis despite, following a fall of 0.2% in November and a drop of 0.1% in October.
Expectations were for a 0.3% rise over December.
The figures will be noted by the RBA, which is expecting a recovery in non-mining sectors of the economy such as retailing and manufacturing to take up the slack from a fast-approaching mining investment peak. The largest contributor to the fall was other retailing (-2.8%) followed by cafes, restaurants and takeaway food services (-1.1%) and food retailing (-0.1%).
These falls were partially offset by rises in clothing, footwear and personal accessory retailing (2.1%), household goods retailing (0.8%), and department stores (0.8%).
Over the longer term, the weakest performing industries were household goods retailing (down 0.4% in trend terms) and other retailing (down 0.5%).  The largest contributor to the fall was New South Wales (-0.7 per cent), followed by Victoria (-0.2 per cent), Western Australia (-0.3 per cent) and the Australian Capital Territory (-0.8%). These falls were partially offset by rises in Tasmania (2.0 per cent), the Northern Territory (0.7 per cent) and South Australia (0.1 per cent). Queensland (0.0 per cent) was relatively unchanged. Over the longer term, South Australia was the weakest performing state (down 0.4 per cent in trend terms) whilst Tasmania has fallen in trend terms for 14 consecutive months.  The trend estimate for Australian retail turnover fell 0.1% in December 2012. This follows a relatively unchanged November 2012 (0.0%) and a relatively unchanged October 2012 (0.0%).
In volume terms, turnover rose 0.1 per cent in the December quarter 2012, seasonally adjusted, following a fall of 0.3 per cent in the September quarter 2012.
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Retail sales fall 0.2% in December despite Christmas cheer: ABS

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Construction of Lend Lease’s $1 billion Waterbank urban regeneration project featuring 600 apartments on the shores of the Swan River adjacent to the Perth CBD is set to commence in 2014 following a deal inked with the Perth’s Metropolitan Redevelopment Authority. 
The formal signing of the Project Development Agreement (PDA) follows Lend Lease’s selection in November 2011 as the preferred developer of the project, which dates back to 2008.
<img src="/images/stories/2013/02/riverside1.jpg" width="470" height="336" alt="riverside1">
The Riverside project, designed by architects Hassell, is situated on a six-hectare site on the banks of the Swan River and is one of the city’s key urban regeneration projects. 
Upon completion in 2021 the staged development is proposed to include over 600 residential apartments, commercial office space, a hotel, a variety of retail uses and substantial public spaces. 
<img src="/images/stories/2013/02/riverside2.jpg" width="470" height="335" alt="riverside2"> 
Concept sketches show two high-rise buildings and a host of smaller buildings featuring a row of retail and restaurants on the ground floor in a curve around a beach and gardens, with a dining pier jutting out into the river.
According Hassell, the site will also feature a town square area and a wetlands area. 
“We are delighted to have finalised an agreement with the MRA to deliver this project,” says Lend Lease group chief executive officer and managing director Steve McCann. 
“Lend Lease has significant experience in major waterfront and urban regeneration projects, both within Australia and overseas and we will leverage this expertise to deliver a world-class solution for the people of Perth.”
Lend Lease’s other major waterfront project is the <a href="https://www.propertyobserver.com.au/developments/every-apartments-has-harbour-views-as-lend-lease-unveils-two-barangaroo-apartment-blocks/2012112057997" target="_blank">$2 billion development of Barangaroo</a> in Sydney Harbour. 
Lend Lease will now work closely with the MRA in the design and planning for the project ahead of the expected commencement of construction in 2014.
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Lend Lease signs deal for $1 billion Perth riverside project to feature 600 apartments

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After your spot of shopping on Collins Street, why not pop into the Bank of Melbourne branch at the Paris end for a free valuation of your investment property or a quick read of the latest investment tips from Alan Kohler or Robert Gottliebsen? Or even just sit back and watch Sky Business for a while?
Just don’t expect either of these two economic gurus to be standing around answering personal investment questions when you step into the recently opened 'Investore' at the Bank of Melbourne branch at 233 Collins Street.
<img src="/images/stories/2013/02/investore1.jpg" width="470" height="583" alt="investore1">
Despite the store beckoning you to enter with a collage poster featuring a slice of Alan Kohler's face alongside that of Robert Gottliebsen's, they won't actually be there. 
They will seemingly limit their involvement in the venture to providing half of their faces to the promotional material and allowing visitors to read their investment tips for free.
It’s a rather unusual venture with a Fairfax brand, Domain, sitting alongside a News Limited one, The Eureka Report.
The Investore, as explained by an onsite Bank of Melbourne employee, is not a pop-up shop but a permanent investment lounge with computers and rows of iPads where visitors can obtain free property reports provided by Domain's Australian Property Monitors and read unlocked stories and reports on the Eureka website from Kohler, Gottliebsen and other investment writers.
<img src="/images/stories/2013/02/investore2.jpg" width="470" height="283" alt="investore2">
It’s all part of efforts by the Bank of Melbourne to add extra value to its customers and build the brand and, one imagines, take on the likes of Bankwest, which was the first to pioneer the idea of a funky bank branch offering free coffee, the chance to buy property investment books and this writer's personal favourite, the coin counter.
Certainly, Bank of Melbourne been trying to separate itself (in the minds of customers) from its big four bank parent Westpac, with signs in Bank of Melbourne windows promising lower mortgage rates than the big four banks.
In addition to the free property reports and a browse of the Eureka website, there’s also the chance to sign up for free property and investment seminars presented by Business Spectator editor James Kirby and Consumer Affairs Victoria.
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Bank of Melbourne offers free property reports and investment tips but don’t expect a chat with Alan Kohler

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Mooted changes to superannuation tax rules have come under fire from former federal Labor superannuation minister Nick Sherry. 
The mooted unconfirmed changes, which would affect those with superannuation balances in excess of $800,000 to $1 million, comes as property continues to grow as an investment class for those with a self-managed super fund and with big industry super funds looking to offer members more flexibility to re-weight their portfolios more heavily in favour of property.
At the same time industry super funds are looking to invest more heavily in income-generating commercial property assets as flagged by <a target="_blank" href="https://www.propertyobserver.com.au/commercial/australiansuper-to-double-commercial-property-investments-as-part-of-diversification-play/2012102457425">AustralianSuper chairwoman Elana Rubin in October last year.</a> 
SMSF income is currently generally taxed at a concessional rate of 15% with around a third of SMSFs have assets in their portfolios worth more than $1 million, according to ATO figures.
Commercial property comprising more than 11% and residential assets about 4% of the portfolios of SMSF funds with assets worth more than $1 million. 
It has been speculated Labor plans to use the next federal budget to target the wealthier families who get disproportionate tax advantages in super as part of its strategy to appeal to its traditional supporters, lower and middle-class earners.
The unconfirmed speculation suggest Labor is proposing to pare back around $30 billion in annual tax concession on super, which are set to rise to $45 billion by 2015/16.
It is also considering a tax on withdrawals made by individuals with super account balances of at least $800,000.
In last year’s budget it signalled its intention to target super tax concessions when it increased the tax on super contributions from 15% to 30% for those earning over $300,000, and has reduced the general tax-free contributions cap to $25,000 from $50,000 a year. 
Nick Sherry, who was federal superannuation minister from 2007 to 2009, is urging the government not to change the way it taxes super and consider other ways to raise revenue, including cuts to contributions to generous public service super. 
Sherry told today's The Australian Financial Review, the current tax treatment for super was “appropriate” though he did add that there were areas within the super system that require attention. 
He said the current retirement access age for super of 60 should be raised to 67, which is what the pension access age will climb to over the next decade. 
The retirement access age allows people to work part-time and draw down their super at the same time.
“The indirect policy response of those two policy changes would be to constrain to some degree the growth of super tax expenditures, and that’s the area I think governments need to focus on,” he said.
He also called for the government’s contribution to military super should be cut from about 28% and public sector super from 15.4% and said there was “no justification” for such a level of contribution “above the community standards”.
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Mooted super tax changes a concern for SMSF property investors: Nick Sherry

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The Gold Coast has replaced the outer south-west Sydney regions of Fairfield and Liverpool as having the highest proportion of home owners more than a month behind on their mortgage repayments.
The Gold Coast east market (including <a href="/news">Surfers Paradise</a> and <a href="/news">Broadbeach</a>) ranks as the worst-performing region, with a delinquency rate of 2.44%. The Gold Coast west (suburbs including <a href="/news">Nerang </a>and <a href="/news">Carrara</a>) ranked second, with a delinquency rate of 2.08%, according to the latest Fitch Ratings Australian Mortgage Delinquency report for the six months to September 2012.
The two markets ranked fifth and sixth in the March 2012 Fitch report have improved in line with the national trend, but not at the same pace as other regions.
At its current delinquency rate, the Gold Coast east region would have ranked as the eighth worst performing region in Australia six months ago (March 2012 report).
But demonstrating that tourism-dependent regions have not benefited to the same degree as other parts of the country from interest rate reductions and improved affordability, the Sunshine Coast ranked fourth most delinquent region with a 30 days-plus arrears rate of 1.89%. The NSW central coast market ranked sixth, with a delinquency rate of 1.81%.
All are well above the national delinquency rate, which improved from 1.6% at the end of March 2012 to 1.4% at the end of September, to be currently significantly below the five-year average of 1.56%.
“Tourist areas are less affected by monetary policy and more by the high Australian dollar, housing prices, occupancy rates and rental yields,” says Fitch.
“This is evident in popular tourist destinations being among the worst-performing postcodes. “
On a postcode basis, the well-known tourist destination of <a href="/news">Nelson Bay</a> in the NSW Hunter region remains the worst-performing postcode by value of mortgages in arrears, with a 30+ day delinquency rate of 6.6%.
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In the previous March survey, Fairfield and Liverpool ranked as the worst-performing region in Australia, but in line with an improving outlook for the western Sydney market and parts of it being considered investment hotspots –<a target="_blank" href="https://www.propertyobserver.com.au/landlords/investors-returning-in-droves-to-outer-western-sydney-with-granny-flat-appeal-htw/2012121158164"> granny flat conversions are growing increasingly prevalent </a>– its delinquency rate improved from 2.82% to 1.82% and its ranking has fallen from first to fifth most delinquent market.
Similarly, the delinquency rate improved noticeably in the outer south-west Sydney region from 2.78% to 1.99% between March and September.
Another region on the western outskirts of Sydney, <a target="_blank" href="/news">Blacktown</a>, which was among the 10 worst-performing regions by value until September 2011, “continues to perform remarkably”, says Fitch, with a delinquency rate of 1.55% at the end of September 2012.
Fitch notes that most of the 10 worst-performing regions were in Queensland, not NSW, as was the case in March 2012.
“House price stagnation in Queensland particularly affected Gold Coast east ? which has been among the worst performing regions since September 2008 ? and the Sunshine Coast. Other regions in Queensland, which have been historically characterised by serviceability constraints, remained among the worst performing regions despite their remarkable improvement following cash-rate cuts.
“For example, delinquencies in Ipswich and Logan City, which started to increase at the beginning of 2011, have improved significantly (100bp and 91bp, respectively) in the six months end-September 2012,” says Fitch.
 
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Melbourne dominates the best-performing regions, with five of the top six locations led by northern middle Melbourne (suburbs like <a target="_blank" href="/news">North Melbourne</a>, <a target="_blank" href="/news">Kensington</a>, <a target="_blank" href="/news">Ascot Vale</a>) with an arrears rate of just 0.55% compared with a rate of 0.7% six months ago.
The affluent lower northern Sydney market (including million dollar suburbs like <a target="_blank" href="/news">Cremorne</a>, <a target="_blank" href="/news">Kirribilli </a>and <a target="_blank" href="/news">Neutral Bay</a>) ranks second with a 30 days plus arrears rate of 0.56%, up from 0.63%. 
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Commenting on the national improvement in the delinquency rate, Nomura banking analyst Victor German says the sharp but consistent improvements seen in delinquency rates coincide with the 50-basis-point and 25-basis-point interest rate cuts announced by the RBA in May and June 2012, respectively.
“With further 25-basis-point interest rate cuts put through in Oct and Dec 2012, we will be looking for signs of further improvement in delinquency rates during the upcoming reporting season,” German says.
On a state-by-state basis, Queensland has the highest arrears rate (1.41%), followed by NSW (1.25%), WA and Tasmania (1.2%) and South Australia (1.19%). The remaining states are all below 1%.
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Gold Coast replaces Sydney south-west fringe as most mortgage delinquent region in Australia: Fitch Ratings

<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.

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Higher in the building, a rooftop pavilion and private dining suite sit alongside resident lounge, barbecue and outdoor dining areas, opening towards panoramic views across the ocean, city and hinterland.

“Buyers are no longer just looking for an apartment, but a lifestyle where they can relax, reset, and enjoy a balanced way of living,” Hirsch &amp; Faigen Director of Sales Matt George said.

Interest to date has come from established owner-occupiers and interstate lifestyle purchasers, including buyers planning a future move to the Gold Coast. Many are coming from larger homes and want to reduce ongoing maintenance without giving up space for family and guests, privacy, two car spaces or the ability to entertain at home.

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Much of that daily life can also take place beyond the building without requiring a drive. Kurrawa Beach and Pratten Park are an easy walk from Surf Parade, while Pacific Fair, Oracle Boulevard, The Oasis, restaurants, cafés, entertainment and public transport are also within walking distance.

The Eveleigh is Hirsch &amp; Faigen's fourth Gold Coast development since entering the market in 2021, following The Hemingway at Palm Beach, The Emerson at Kirra and Yves at Mermaid Beach. Each of the preceding projects sold out before completion.

“Broadbeach had been on our radar throughout our time operating on the Gold Coast,” the developer said. “Following our projects in Palm Beach, Kirra and Mermaid Beach, Broadbeach represented the natural next step for the business.”

The Surf Parade site brought together proximity to the beach, protected coastal outlooks and walkability to dining, shopping and recreation. Hirsch &amp; Faigen also identified the street as an emerging premium residential address, with enough separation from Broadbeach's busier destinations to retain a quieter environment at home.

The Eveleigh is now under construction by Maxcon, with completion forecast for mid-2028. Three-bedroom residences are currently available from $2.87 million.

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Joel Robinson

The Eveleigh brings house-like apartments to Broadbeach

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

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

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

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

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

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

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