<html><body>
Australian housing affordability has improved markedly over the last few years, but it still remains the least affordable housing market in the world, according to credit rating agency Fitch.
Fitch measures housing affordability using two measures: percentage of disposable household income required to make mortgage repayments and house prices relative to average income per person.
On the first measure, "market debt-to-income ratio” (which measures mortgage payment on average-priced dwellings as a proportion of an average-sized household‘s average gross disposable income), Australia ranks as the least affordable of 12 global markets
This is despite a great improvement in this ratio, with Australians home owners now spending about 32% of their household income on mortgage payments, compared with around 38% of income in 2011 and around 44% of income in 2008,  just before the GFC.
In comparison, American households spend only around 16% of their income on mortgage repayments and those in the UK about 17%.
“This ratio aggregates various key drivers of mortgage performance in a single figure and can therefore be used as a high-level indicator to assess, forecast, and stress borrowers‘ ability to make payments on a new loan,” says Fitch.
On the second measure of affordability, house price to GDP per capita ratio, Australia ranks second only to Greece with a ratio of 8, compared with a ratio of 5 in the US and under 7 in the UK. Greece's ratio is 8.5.
In 2010 the Australian house price to GDP per capita ratio was nearly 9.
“Outside Europe, the HP-to-GDP ratio for Australia remains on high levels despite having corrected downwards over the past two years.
“In contrast, the average ratio in the US now is among the lowest in a cross-country comparison,” says Fitch.
</body></html>

lschlesinger-FZcF9M3vE6

Australian housing still least affordable in the world despite recent improvements: Fitch

<html><body>
Centuria Property Funds has added to its commercial property portfolio after entering into a conditional contract to purchase the 175 Castlereagh Street office tower in the Sydney CBD from Stockland for $56 million.
Centuria Property Funds is a wholly owned subsidiary of the ASX-listed Centuria Capital Limited, headed by CEO Jason Huljich, and has a commercial property portfolio valued in excess of $1 billion.
<img width="470" src="/images/stories/2013/01/175castlereagh.jpg">
The property will be held in The Centuria 175 Castlereagh Street Fund, a single-asset, unlisted property fund and is expected to generate a return of 9% in its first year.
The 17-level building, located in the midtown precinct of the Sydney CBD, has 13 levels of commercial office accommodation and four levels of basement parking and has recently undergone a substantial refurbishment of the lobby, lift cars, some office floors and bathrooms.
It features around 12,000 square metres of net lettable area.
Stockland acquired the office tower in 1982 and is valued at $53 million.
The property at 175 Castlereagh Street is located immediately adjacent to the  new  50-storey office tower at 161 Castlereagh Street being built by Grocon, scheduled for completion in 2013. It is set to be Sydney’s newest premium-grade office tower, anchor-tenanted by ANZ.
Recent acquisitions by Centuria Property Funds include the purchase of the $23.3 million Canon Hill, Queensland property.
 
</body></html>

Centuria buys Sydney CBD tower from Stockland for $56 million

<html><body>
The Australian housing market is expected to be among the more stable global markets in 2013 but house prices won’t rise, according to forecasts from credit rating agency Fitch.
Fitch‘s most favourable house price outlooks are for Germany, Australia and the US, which is “finally expected to turn a corner in 2013".
“Fitch expects stable house prices [in Australia] in 2013, although some areas may still continue to decline," says the credit rating agency in its latest Residential Mortgage Briefing.
“Despite the RBA recently cutting the policy rate, home buyers remain cautious and have been deleveraging.
“On a relative scale, the Australian housing market appears expensive, however the combination of house prices falling 4.1% from the peak in quarter 2, 2010 and the RBA cutting the policy rate over 12 months to October 2012 has eased pressure on affordability levels,”  says Fitch.
Fitch has an overall "neutral" outlook on the Australian housing and mortgage market and rates Australia alongside Germany as “more stable” compared with peripheral eurozone markets (Spain, Portugal, Greece, Ireland and Italy) where it holds “substantial concerns”.
Australia’s mortgage lending market is also given a favourable mention, described alongside the US prime market as “characterised by relatively low default probability assumptions”.
“In Australia, arrears are likely to remain low, in line with low unemployment and recent policy rate reductions,” says Fitch.
“Australia benefits from a low and relatively stable recent history of unemployment, due to strong global demand in commodities. The recent cut in policy rates aims at stimulating the non-mining sectors of the economy.”
The report notes “relatively high affordability indicators for Australia” which are “largely driven by high average house prices”
It also notes that Australian household debt to income levels have risen significantly over the past decade, but says that a combination of flat house prices and policy rate cuts has eased affordability pressures.
</body></html>

Stable outlook for Australian housing market but no price gains in 2013: Fitch

<html><body>
This year’s federal election is likely to have positive impact on the property market, provided it delivers a decisive result, according to industry experts.
The next federal election must be held by November 30.
Brett Draffen, chief executive of development at Mirvac, says he is “personally quite confident that we will see a positive out of the election".
“It really goes to that question of consumer confidence and sentiment.
"And I think the opportunity is that we start to see a clearer leadership profile coming from that federal election and that will then flow through to confidence and then have a flow-on impact on transactions and therefore prices,” Draffen said in an interviewer on Australian Financial Review TV.
But property market activity could slow in the months leading up to the election.
“Prior to the election people get a bit more nervous,” says Rod Cornish, real estate strategist Macquarie Capital.
“A month or two prior to the election things do tend to slow down,” he says.
“And then if it is reinforced, if there is a distinct change in power, then people could become more confident."
</body></html>

Decisive federal election result will help Australian property markets: Analysts

<html><body>
A special investigation finds the Tax Office is aggressively pushing aggrieved taxpayers into settlements to protect its own people, with one property investor saying he’s been ruined by fighting big firms hired by the ATO.
<a target="_blank" href="https://www.abc.net.au/7.30/content/2012/s3623899.htm">Sydney architect Gary Kurzer</a> and his partner sold two investment properties in 2006 under direct instructions from their bank. They had cash losses from the sales, and were told by the ATO that GST did not apply to their circumstances. But the ATO then launched an audit and handed them a tax bill of $207,000 in “GST and penalties” plus tax on “profits of $655,000” never earned.

After a five-year battle that Kurzer says ruined his health, relationship and finances, the ATO finally agreed to determine liability based on the information he had previously provided. This was communicated to Kurzer at the 11th hour at the doorstep of the Administrative Appeals Tribunal hearing room prior to a hearing before a senior member of the AAT.

Despite the matter settling, the ATO issued another incorrect revised assessment of $120,000. Angered by the continued mistakes and mistreatment, Kurzer pursued the ATO for compensation under the <a target="_blank" href="https://www.finance.gov.au/financial-framework/discretionary-compensation/cdda-scheme">Scheme for Compensation for Detriment caused by Defective Administration</a> —?established to help Commonwealth agencies compensate persons who have suffered detriment as a result of an agency’s “defective” actions or inaction, and who have no other avenues of redress?—? including the latest revised incorrect assessment.

The ATO has power to engage legal counsel under the Legal Services Directions, which is administered by the Attorney-General, when there is a legal claim. The Finance Circular 2009-09 is clear that the Legal Services Directions do not apply to a CDDA claim?—?it’s more a moral obligation to assist those who have suffered. Despite this, the ATO hired big law firm Minter Ellison to handle the CDDA claim. The ATO said in a statement: “It is not unusual for us to obtain legal advice where there is no legal claim or litigation on foot. Our views on CDDA claims comply with the Department of Finance’s guidelines.”

The ATO advised Kurzer of its decision after receiving advice from Minter Ellison, that no defective administration arose and no compensation was payable. Kurzer continued to owe $120,000. Minter Ellison charged the ATO $128,000 for this advice, as <a target="_blank" href="https://media.crikey.com.au/wp-content/uploads/2013/01/crikey1minterbill.pdf">documents obtained by Crikey</a> under freedom of information laws show.

Kurzer was relentless, eventually pushing the ATO to review the CDDA claim for the second time, where it was uncovered the Tax Office made major mistakes in the revised assessment?—?Kurzer only owed $8,554. The ATO continued to deny any liability for mistreatment during the audit and objection stages but now admitted it made mistakes in the revised assessment. Despite Minter Ellison being engaged to review Kurzer’s tax liability, it found no mistakes.

At a mediation meeting chaired by former royal commissioner Tony Fitzgerald and attended by Kurzer, ATO officers and Kurzer’s lawyers (appointed by the Tax Office), the <a target="_blank" href="https://media.crikey.com.au/wp-content/uploads/2013/01/Crikey2atodeed.pdf">deed of release shows</a> the ATO offered $70,000 in compensation contingent on Kurzer releasing the ATO and every officer, employee and agent from any liability beyond the scope of the major calculation errors, and equally for all future claims, whether related or unrelated to the dispute.

The ATO also sought a confidentiality clause. Kurzer accepted the $70,000 and agreed to release the ATO from any future liability on the basis the ATO does not stop him from pursuing his rights in relation to his mistreatment during the audit and objection processes and to delete a blanket ban on all future claims unrelated to the dispute. The ATO then refused to pay the $70,000 compensation.

In direct contradiction to this, the ATO told Crikey: “There is no compulsion for taxpayers to settle matters they do not want to settle. Settlements made in relation to a particular dispute do not affect future claims arising in relation to a completely unrelated dispute.”


<hr class="system-pagebreak">
In addition to Minter Ellison’s fee of $128,000, Fitzgerald’s fee for conferences, preparation and the mediation was $12,650?—?according to <a target="_blank" href="https://media.crikey.com.au/wp-content/uploads/2013/01/CRIKEY3fitzgeraldbill.jpg">a tax invoice</a> released under FOI?—? while ATO appointed lawyers for Kurzer, LAC Lawyers, were <a target="_blank" href="https://media.crikey.com.au/wp-content/uploads/2013/01/Crikey4LACbill.pdf">paid $19,992 for legal advice</a> and attendance at the mediation. The ATO refused to pay LAC Lawyers for any assistance to Kurzer after the mediation. In addition, the ATO expended $47,599 in relation to the CDDA claim. In total, $208,241 was spent on a case with an offer of $70,000 in compensation that was ultimately rejected by Kurzer.

Kurzer is highly distressed. In five years of attempting to gain justice he says he has lost everything he has worked for over 40 years, and faces imminent foreclosure. “Each day is a battle to stay afloat,” he told Crikey.

“Minter Ellison was hired to check the ATO view and they came up with zero errors and zero compensation, and I was intimidated by them in denying my rights. The ATO then attempted to silence me via an oppressive deed with a patronising offer of $70,000 to me as compensation for my losses and expenses over five years. Although that was a tiny fraction of my losses, to even accept this, they insisted on a massive legal gag on my rights.

“I will continue to fight, not just because of my circumstances but also because the ATO are doing this to innocent people across the country every day, decimating families and small businesses. In tough times it is heinous that the ATO can expend huge amounts of public money to bankrupt people. What is the net advantage? People are forced onto welfare, instead of being active taxpayers. I will now be seeking a realistic monetary claim that reflects my losses in the Federal Court for negligence, breach of statutory duty and misfeasance against the tax office.”

A senior Sydney tax lawyer who is involved in negotiating settlements with the ATO on a regular basis but did not want to be identified said: “Settlements are sometimes instituted by the ATO because they know they have done the wrong thing. Unfortunately, in these cases the wrong thing ends up being hidden from the public by the use of a confidentiality clause. They won’t talk about what they did wrong.”

Allegations about the ATO’s use of legal services coincide with the <a target="_blank" href="https://www.ag.gov.au/Publications/Documents/Commonwealth%20Legal%20Services%20Expenditure/OLSC%20-%20Legal%20Services%20Expenditure%20Report%202011-2012.PDF">announcement last month</a> by the Attorney-General’s Department that the ATO was the biggest user of legal services in the Commonwealth, spending $101 million dollars in 2012. The report shows a 30% increase in the provision of external legal services (such as Minter Ellison and Clayton Utz) in just the last two years. At the same time the average rise in external legal costs across all government agencies was just 7%. External legal services accounted for $64.9 million of the total figure, while $46.1 million was spent internally.

<a target="_blank" href="https://www.crikey.com.au/2012/09/20/ato-whistleblower-in-court-they-sabotaged-my-complaints/">Crikey reported in September</a> the ATO had offered Serene Teffaha a $250,000 settlement to walk away from litigation she launched for bullying as a result of a whistleblower complaint. She was prepared to accept the offer and release the ATO commissioner from vicarious liability as long as she was not barred from pursuing the senior public officials personally for their misconduct against her. The ATO refused to settle on that basis.

“My motivation is not money??—??just accountability,” she said. “It is perplexing the lengths the Commonwealth will go to, to protect the wrongdoers. Unfortunately for the Commonwealth they are now risking a whole lot more than just money.” Teffaha says she has been told the Commonwealth will back the personal defences of the officials involved by funding Clayton Utz’s services.

The Attorney-General’s Department is the guardian of how Commonwealth agencies pursue litigation. Crikey put a list of questions to the department and was told: “Questions regarding the ATO’s reasons for settling claims, legislative authority for engaging counsel, and its conduct in the handling of claims and litigation, should be directed to the ATO.”
“The difficulty with releases and confidentiality provisions is that they are exclusively for the benefit of the [ATO] commissioner,” David Hughes, a tax partner in law firm SMH Tax Lawyers, told Crikey. “Aggrieved taxpayers are silenced and ATO errors … are not brought into the public domain. This allows ATO officers the latitude to continue working without accountability to the public.

“Confidentiality clauses in settlement deeds have their place in commercial settlements, but the Commissioner is at pains to emphasise that he negotiates on a ‘principled’ basis, not a commercial one. If that is so, then the principle by which they reach settlements must be transparent. He cannot have it both ways.”

But some lawyers see the benefit of commercial settlements. Andrew Robinson from Robinson Legal, who gained notoriety as the outspoken lawyer for Paul Hogan and John Cornell in their very public dispute with the Tax Office, believes early settlements are good.

“Whether it’s right or wrong, making sure settlement discussions and settlement agreements don’t see the light of day probably means that all parties can be more open in their discussions which can lead to earlier settlements. While discussions take place they can’t be disclosed because they are without prejudice and if a settlement deed happens it’s bound by confidentiality so all parties know that nothing they say should hit the public record.”

 

This article first appeared on <a href="https://www.crikey.com.au/" target="_blank">Crikey.com.au</a>

</body></html>

Sydney property investor battles ATO for five years over tax bill on property sold at a loss

<html><body>
Property prices in the Queensland mining boom town of Gladstone are starting to cool, with prices for older houses and units falling by as much as 20% in some cases, according to property valuers at Herron Todd White (HTW).
HTW describes the Gladstone market – driven by a number of liquefied natural gas (LNG) and coal projects – as “volatile”, with a stabilisation in rents flowing through to softer capital values.
HTW reports of a “new phase in the Gladstone residential market” noting that that vacancy rate has increased from just 0.5%  at the start of 2012 (with minimal vacancies particularly noticeable in three- and four-bedroom dwellings and two- and three-bedroom units and townhouses) rising to between 1% and 2% by the end of the year and “trending upwards”.
“We are now seeing declines in values from what was being achieved approximately 12 months ago," HTW says.
“For the first six months of 2012 we saw evidence that the market was stabilising or softening with some values creeping back 5%.
“In the last four months, transactions have shown values have declined further. New housing and unit stock has come back by up to 5%, whereas older housing and unit stock has come back by as much as 20% in some cases," says HTW in its December report.
“We are seeing an ever increasing number of current contracts that are far below a value that could have been achieved at the beginning of 2012,” says HTW.
These observations follow property market analyst Michael Matusik declaring the <a target="_blank" href="https://www.propertyobserver.com.au/queensland/gladstone-s-mining-related-property-boom-over-michael-matusik/2012081556036">Gladstone mining-related property boom over in August last year</a>, with hotspotting.com.au's Terry Ryder saying around the same time that the savviest of investors were in the market 12 to 18 months prior.
However Matusik refined his view on Gladstone towards the end of last year, suggesting it remained a<a href="https://matusikmissive.com.au/2012/11/27/g-10/" target="_blank"> "healthy real estate market"</a> with reference to the success of a recommended new off-the-plan development, <a href="https://www.stoneapartments.com.au/" target="_blank">Stone Apartments</a> near the Gladstone city centre, now 70% sold out.
According to HTW, local selling agents are reporting a loss of confidence in the market with recent research indicates that the volume of unit and dwelling accommodation available in Gladstone has increased significantly.
 
<hr class="system-pagebreak">
 
Recent sales show a number of older properties failing to sell at auction and then selling at reduced prices following long listing campaigns lasting many months.
These include this three-bedroom house on <a target="_blank" href="https://www.realestate.com.au/property-house-qld-telina-110971499">Finchley Street in Telina</a>, which sold through Kerry Connor of Go Gecko Gladstone in mid-December for $398,500 – an 11% discount to its July 2012 listing price of $449,000.
Another recent sale was<a target="_blank" href="https://www.realestate.com.au/property-house-qld-south+gladstone-109519076"> this 1950s four-bedroom house</a> on Martin Street in South Gladstone, which sold through Margie Richards of PRDnationwide Gladstone for $445,000 in November.
RP Data records indicate that it failed to sell at auction in February and April and was then listed for sale in May at $478,000. The asking price was reduced to $469,000 in August and then reduced further to $449,000 in May before finally selling for $445,000.
In a recent <a href="/news">Property Observer webinar</a> looking at the prospects for regions versus cities in 2013, Terry Ryder highlighted rising rents as being a leading indicator of rising prices, but with a lag period of about a year.
In the case of Gladstone, Ryder says the first big rent rises started happening in 2011, but property prices only really lifted in 2012 – rising about 16%.
The stabilisation in Gladstone rents, as reported by HTW, suggests that the prospects for price growth are weaker in 2013.
In its assessment of the Gladstone market, HTW says that at the start of 2012, it predicted that activity would remain high and demand would stay very strong across all residential property types.
“We also stated that values were already at record high levels and we were unsure just how much higher prices would go.
“Over the course of this year, confidence in the market has dropped slightly, activity remains strong however not at the levels we were experiencing during 2011 and the record high prices have started to soften.
“We are now seeing declines in values from what was being achieved approximately 12 months ago."
HTW says it is aware of extensive land and unit projects being developed in the area with demand for these products being “moderate to high”.
“However, as more and more stock is produced and made available to the market, it is effectively increasing the competition in the area and giving potential purchasers a greater degree of product selection.
“The demand for newer stock with high rental returns now outweighs the demand for older existing stock. This has forced prices down and we are now seeing a greater differentiation in values,” says HTW.
HTW says it is difficult to gauge the actual level of demand and whether prices are “at market” due to a high percentage of available vacant land marketed and sold by specialist project marketers off the plan to “out of town investors” with none of these pre sales settling until construction of the estate is complete.
</body></html>

Gladstone property market cooling, with some 20% price corrections: HTW

<html><body>
Better affordability in Sydney and Perth should result in property price growth of between 4% and 6% in these key capital city markets, says Rod Cornish, real estate strategist at Macquarie Capital.
But Cornish says Melbourne, where property is relatively less affordable, is likely to record lower housing price growth.
According to Cornish, if the RBA cuts the cash rate twice more this year Sydney's housing affordability will fall to levels last seen in 2001, with a similar scenario for Perth.
“Normally when you see affordability gets to these levels you see a double-digit jump in prices, but given people’s lower propensity to spend, I think it will be single-digit growth.
“Instead of 10% to 12% growth there will be 4% to 6% growth in Sydney and Perth,” Cornish said in an interview with Australian Financial Review TV.
But in places like Melbourne, which Cornish says is still going through an over-extended cycle, price growth will be lower.
Cornish pointed out that there had been five rate-cutting cycles since 1990, but that the latest one (which began in November 2011) was by far the slowest, meaning a patchy impact on affordability.
“The RBA cut rates twice in 2011 (25 basis points rate cuts in November and December) but then there was a five-month gap [until the May 2012 50-basis-point rate cut].
“In that time the banks raised their mortgage rates, we have never seen that big gap before – this has an impact on affordability."
As a result he said affordability remained “patchy” across different property markets.
 
 
</body></html>

Sydney and Perth set for property price growth of between 4% and 6% in 2013, with increased housing affordability: Macquarie Capital

<html><body>
Demand for fixed-rate home loans tapered off in December following four consecutive months of gains, according to new home loan approval data from Mortgage Choice.
Fixed-rate home loans accounted for 20.14% of all new home loan approvals in December, down from 22.37% in November.
The reduced appetite for these more conservative lending products follows the 25-basis-point RBA cash rate cut on December 5, taking the cash rate to 3% and expectations of further rate cuts in 2013.
Furthermore, the latest mortgage rates <a href="https://www.propertyobserver.com.au/news/more-rate-cuts-likely-in-2013-a-guide-to-the-lowest-rate-home-loan-offerings-as-of-january-7/2013010658623" target="_blank">published on mortgage comparison websites</a> suggests that borrowers can source variable mortgage rates that are only a few basis points off fixed-rate offerings, with the added benefit of greater flexibility and not being locked into a rate should rates fall further.
Demand for fixed-rates has now fallen below the 12-month average of 21%, with the popularity of fixed-rate loans decreasing in the majority of states, by an average of 4.26 percentage points.
Demand for fixed-rate home loans rose by 4.12 percentage points in Queensland.
Over the same period the percentage of variable-rate loans rose to 79.86% from 77.63% in November, with increased appetite for no-frills basic variable home loans rising by 1.75 percentage points to 17.71%, and ongoing discount home loans remaining the most popular at 41.16% of all new home loan approvals in December.
Demand for standard variable rates was relatively steady, dipping by only 0.12 percentage points to 16.78%. Demand for line-of-credit loans, popular with investors, rose slightly to 3.26%, while introductory rates dropped marginally to 0.95%.
“Our data shows that fixed rates have fallen out of favour in December for the first time in five months as recent variable rate cuts gain the attention of the majority of new borrowers,” says Mortgage Choice spokesperson Belinda Williamson.
“While fixed rate home loans continue to offer piece of mind with a steady repayment level, a variable rate home loan that has the potential to shift down in price is proving more attractive. In fact, four in every five new borrowers say they would opt for this type of loan,” says Williamson.
“Borrowers may also be heeding the advice that there may be more cuts to come, particularly as recent media reports suggests some lenders may cut their home loan rates out of cycle with the Reserve Bank of Australia’s cash rate setting and as soon as next month.”
</body></html>

Appetite for fixed-rate home loans falls in December following rate cut: Mortgage Choice

<html><body>
The north shore is shaping up to be the top-performing Gold Coast market as buyers take advantage of reduced prices on a number of projects in the hands of receivers.
There were a total of 54 sales recorded across nine medium- and low-rise projects on the north shore, making it the top-performing precinct for the third consecutive quarter, with a total of 156 sales for the first nine month of the year, according to September 2012 quarter figures from Colliers International, which were released just before Christmas.
The north shore precinct includes suburbs from <a href="/news">Hope Island</a> to <a href="/news">Biggera Waters</a>, about 15 minutes from <a href="/news">Surfers Paradise</a>.
The report provides an overall favourable impression of the Gold Coast apartment market, reporting 140 sales across high-, medium- and low-rise sectors over the three months to September – an increase of 5% on the previous quarter and 43% up on the same period last year.
Click to enlarge
<a title="Click to enlarge" href="/images/stories/2012/12/colliersdec20.gif" rel="shadowbox"><img src="/images/stories/2012/12/colliersdec20thumb.gif"></a>
Tony Holland, Colliers International residential project marketing director, says price growth in the new apartment market is yet to be seen, but an “impending supply shortage would likely lead to strengthening prices at some point down the track”.
“Based on the current quarterly selling rate, the supply of new apartments could be taken up within 1.9 years, which is the lowest expected absorption period in two years, and if the sales rate increases this time frame will be reduced.
In contrast, the more up-to-date <a href="https://www.propertyobserver.com.au/developments/heavily-discounted-hilton-surfers-paradise-the-only-notable-gold-coast-high-rise-seller-in-november-quarter-midwood/2012121958540" target="_blank">Midwood Report</a> for the November quarter shows just 45 sales (19 in high-rise projects), a 50% drop on a year ago, and has more than 700 high-rise apartments available for purchase, indicating a much longer supply pipeline.
Colliers International reports 26 high-rise sales over the September quarter.
“The [north shore] figures exceed annual sales for 2011, 2010, 2009 and 2008. With one more quarter still to be reported, 2012 is shaping up to be a standout for this precinct,” says Colliers International research manager Lynda Campbell, who compiled the report.
“The increased sales rate during 2012 has been as a result of several projects falling into the control of receivers or financiers who have reduced prices and made concerted efforts to sell down remaining apartment stock.
“This has been an ongoing process and has resulted in stock levels reducing significantly, particularly at Hope Island where only 28 new apartments remain on the market, the majority of which we would expect to see sold over the next six months, if not sooner,” she saids.
<img src="/images/stories/2013/01/mistral.jpg">
Mistral at Harbour Quays (pictured above) was the best-performing project, recording 17 sales during the September quarter, followed by the now sold-out Ilanah Aqua development at Hope Island (pictured below), with 12 sales.
<img src="/images/stories/2013/01/ilanah2.jpg">
Mistral, currently under construction, features 60 one- and two-bedroom apartments being developed by the Emandar Group. There have been 33 sales recorded to date, with 27 apartments still available for purchase.
One-bedroom apartments start from $309,000.
The Emandar Group has told Colliers International that the remaining apartments are under contract, with the project expected to sell out during the December quarter.
If sales continue at the current rate and no new projects are marketed off the plan, overall supply could be taken up in just over 14 months.
Supply will dry up in just three months in the low-rise sector at the current sales rate.
Analysis by Colliers International shows there are around 1,400 apartments in various stages of planning and gaining approvals.
All planned apartments are in the low- and medium-rise sectors, with around 45% mooted for Hope Island.
</body></html>

North shore the standout Gold Coast new unit market in 2012, helped by receivership sales: Colliers

<html><body>
House building activity declined at its steepest rate in three months to December amid weaker new orders as the overall construction sector continued to contract – albeit at a slower rate – for the 31st consecutive month.
The seasonally adjusted Australian Industry Group/ Housing Industry Association Australian (AIG/HIA) Performance of Construction Index (PCI) increased by 1.8 points in December to 38.8, still well below the 50 points level that separates expansion from contraction.
The December index update shows that house building conditions weakened, with the sector’s activity sub-index falling by 6.1 points to 34.7 to signal a sharper rate of contraction in December.
<img src="/images/stories/2013/01/hiajan8.gif">
New orders in the house building sector declined by four points in December to 33.9, compared with new orders index increasing by 8.3 points to 42.6 across all sectors of the construction industry.
The increased rate of contraction reflected a steeper decline in new orders, “which is of concern for the sector’s outlook”, noted the AIG and HIA.
Apartment building activity was also more subdued in December, with the sub-index declining by 2.4 points in December to 40.1.
In contrast, commercial construction activity contracted at its slowest pace in just over two years, while the rate of decline in engineering construction again eased during the month.
AIG director of public policy Peter Burn says construction activity ended the year largely as it began it, “deeply entrenched in negative territory”.
While he says there are some signs of more positive conditions for 2013, he describes as “worrying” the steeper decline in new orders within the house building sector, with “low consumer confidence continuing to weigh heavily on demand”.
HIA chief economist Harley Dale says the December update for housing is disappointing.
“Detached house building represents well over 60% of all residential construction activity in Australia, and the December 2012 Australian PCI points to a steeper decline in activity and new orders, not to mention employment,” he says.
“That is a concerning update, which aligns with other indicators suggesting a deterioration in pre-existing weak conditions for detached house building in the latter part of last year.
“Activity in the apartments sector only lost a modest amount of the ground gained in November while new orders contracted at a slower pace, but monthly iterations still revolve around clear contractionary conditions.
“All up, if policy makers were hoping the first housing update out in 2013 would deliver a signal of current policy settings boosting the chance of a new home building recovery, they’re going to have to keep hoping," says Dale.
</body></html>

Dwelling construction activity continues to slump in December quarter: AIG/HIA

<a href="https://www.apartments.com.au/developments/broadbeach-qld-4218">Broadbeach</a> offers plenty of reasons to live vertically, but moving from a substantial family home into an apartment can expose the compromises of high-density living. Privacy, room for guests and usable living space tend to matter more when an apartment is intended as a permanent home rather than an occasional coastal base.

A typical residential floor at <a href="https://www.apartments.com.au/new-apartments/the-eveleigh-broadbeach-7-9-surf-parade-broadbeach-qld-4218">The Eveleigh</a>, on Surf Parade,&nbsp;contains just four apartments. The 94-residence development by <a href="https://www.apartments.com.au/developers/hirsch-faigen">Hirsch &amp; Faigen</a> is predominantly made up of expansive three-bedroom homes, with a limited collection of half-floor penthouses above.

Across the apartment floors, <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> has used the relatively limited number of residences to give each home greater access to natural light and outlook. Living spaces extend towards full-height glazing, while a series of bay windows frame selected views across the Pacific Ocean, city and hinterland rather than treating the building edge as a continuous wall of glass.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360965]

“The apartment floors deliver a collection of homes that embrace controlled outlook via a series of bay windows deliberately framing moments of view,” Rothelowman Director Kim Lowman said.

From outside, those projecting forms contribute to the tower’s faceted profile. Strong horizontal and vertical elements establish its proportions, while the changing position of the sun alters the light, shadow and reflection across the façade throughout the day.

The same attention moves inside the apartments, where the material palette combines warm timber, natural stone, metallic detailing and softer curved forms. Kitchens sit within the main living zone, with stone island benches, integrated joinery and European appliances, before the living areas extend towards the glazing and the outlook.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360981]

Three genuine bedrooms provide room to accommodate family and guests, while two secure car spaces and storage address some of the practical considerations that can become more noticeable when moving from a larger home. Feedback from the display suite has centred on the warmth and restraint of the interiors, with buyers commenting that the residences feel like homes rather than conventional coastal apartments.

A limited collection of half-floor penthouses occupies the upper levels, increasing the scale of the living spaces and adding private balconies and elevated finishes. From this position, the outlook extends between the ocean and hinterland.

Outside the private residences, The Eveleigh separates its shared spaces between the podium and rooftop. The podium is centred on wellness, with subtropical landscaping surrounding a swimming pool and pool terrace, yoga garden, private gymnasium, sauna and hot and cold plunge facilities. Landscaped retreats and pavilions provide additional places to sit away from the main recreation areas.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360966]

Higher in the building, a rooftop pavilion and private dining suite sit alongside resident lounge, barbecue and outdoor dining areas, opening towards panoramic views across the ocean, city and hinterland.

“Buyers are no longer just looking for an apartment, but a lifestyle where they can relax, reset, and enjoy a balanced way of living,” Hirsch &amp; Faigen Director of Sales Matt George said.

Interest to date has come from established owner-occupiers and interstate lifestyle purchasers, including buyers planning a future move to the Gold Coast. Many are coming from larger homes and want to reduce ongoing maintenance without giving up space for family and guests, privacy, two car spaces or the ability to entertain at home.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360969]

Much of that daily life can also take place beyond the building without requiring a drive. Kurrawa Beach and Pratten Park are an easy walk from Surf Parade, while Pacific Fair, Oracle Boulevard, The Oasis, restaurants, cafés, entertainment and public transport are also within walking distance.

The Eveleigh is Hirsch &amp; Faigen's fourth Gold Coast development since entering the market in 2021, following The Hemingway at Palm Beach, The Emerson at Kirra and Yves at Mermaid Beach. Each of the preceding projects sold out before completion.

“Broadbeach had been on our radar throughout our time operating on the Gold Coast,” the developer said. “Following our projects in Palm Beach, Kirra and Mermaid Beach, Broadbeach represented the natural next step for the business.”

The Surf Parade site brought together proximity to the beach, protected coastal outlooks and walkability to dining, shopping and recreation. Hirsch &amp; Faigen also identified the street as an emerging premium residential address, with enough separation from Broadbeach's busier destinations to retain a quieter environment at home.

The Eveleigh is now under construction by Maxcon, with completion forecast for mid-2028. Three-bedroom residences are currently available from $2.87 million.

[smartcode_project_cta:default project_id=149670]

Joel Robinson

The Eveleigh brings house-like apartments to Broadbeach

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

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

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

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

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

<main data-perf-region="main">
Castle Hill, the longtime hub of the Hills District, has been one of the major beneficiaries of Sydney's Metro expansion, with improved connectivity helping drive continued population growth, development and buyer demand across the Hills District.

But despite that growth, the suburb has seen relatively few major new apartment projects brought to market over the past 18 months.

Hills District developer Reve Group is looking to fill that gap with <a href="https://www.apartments.com.au/new-apartments/nova-r-ve-castle-hill-2-garthowen-crescent-castle-hill-nsw-2154">Nova Rêve</a>, a major new mixed-use precinct on the corner of Garthowen Crescent and Old Castle Hill Road, a short walk from Castle Hill Metro Station and Castle Towers.

[smartcode_project:default project_id=152737 project_image_fid=377679]

The project will comprise three residential towers alongside a hotel, restaurants, cafes and a skybar, more than 1,600 sqm of ground-floor retail and almost an acre of landscaped gardens.

It represents the largest project undertaken by Reve Group, the development arm of the Kassis family, which has been building across the Hills District for more than 30 years through Kassis Homes.

[smartcode_project:default project_id=152737 project_image_fid=377675]

Nova Rêve also represents a significant step up from the family's first apartment development, Grand Rêve, which was delivered nearby on Garthowen Crescent.

Grand Rêve introduced larger, house-like apartment layouts and premium inclusions including Wolf and Sub-Zero appliances to the Castle Hill market.

Nova Rêve takes that approach to a precinct scale, combining the residential component with hospitality, retail and substantial public and resident landscaping.

[smartcode_project:default project_id=152737 project_image_fid=377685]

Reve Group Managing Director Sam Kassis said the project reflected the family's three decades of building in the Hills, which has evolved from trophy homes on quarter-acre blocks to larger-scale apartment development.

"Grand Rêve was our first apartment project here and it showed us what this pocket of Castle Hill could be. Nova Rêve is the refinement of that idea: not just apartments, but a place the whole suburb can use," Kassis said.

A key part of that approach is the hotel, which has been designed to operate as an amenity for the wider Castle Hill community rather than solely hotel guests.

It will include restaurants, cafes, skybars and all-day dining, alongside conference and event facilities catering to business functions, community groups and private events.

At ground level, more than 1,600 sqm of shops and cafes will open onto the surrounding streets and landscaped areas.

Almost an acre of gardens designed by Land and Form Studios will run through the precinct, incorporating pathways, seating, barbecue areas and children's play spaces.

[smartcode_project:default project_id=152737 project_image_fid=377680]

Reve Group's Romio Georges said creating an active ground plane had been central to the planning of Nova Rêve.

"There are gardens with pathways, barbecues, seating and play areas, shops and cafes opening onto the street, and a hotel with restaurants and a skybar that anyone in Castle Hill can walk into," Georges said.

The project's elevated position on one of Sydney's highest ridgelines will also provide apartments with outlooks toward the Sydney skyline, surrounding parkland and the Blue Mountains.

More than 80 per cent of the apartments will occupy corner positions, with Turner responsible for both the architecture and interiors.

&nbsp;

[smartcode_project_cta:default project_id=152737]

<h3 data-end="3697" data-section-id="q3n5ak" data-start="3672">&nbsp;</h3>
</main>

Larry Schlesinger

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News