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Mortgage holders should not take their home loan for granted in 2013 after lenders passed on only 133 out of 175 basis points cut from the cash rate since November 2011 on the average variable home loan, according to mortgage comparison website<a target="_blank" href="https://www.ratecity.com.au/"> RateCity.com.au</a>.
This figure is based on RateCity.com.au’s analysis of the more than 100 mortgage lenders listed on its website.
The major banks and their subsidiaries, which dominate the home loan market, have in the last few years adopted a policy of not passing on rate cuts in full – on average they pass on between 75% and 80% of cash rate cuts.
Research by Property Observer shows that the Commonwealth Bank currently offers the lowest variable rate at 5.34%, an introductory rate for the first year of the loan, after which the loan reverts to the “relevant variable rate”.
NAB’s online offering UBank offers the lowest fixed rates (5.03% for one-year and 5.13% for three-year) and the second lowest variable rate (5.37%), but these rate only apply to borrowers who are refinancing into a UBank loan.
Bankwest currently offers an advertised variable home loan offering of 5.38% – but restricted to new borrowers only.
These are the lowest fixed and variable offerings of the major banks and their subsidiaries (where advertised rates are the same, the lender with the lower comparison rate gets preference):
Lowest variable rate offerings:
<table border="1" cellspacing="0" cellpadding="0" width="470"><tbody>
<tr>
<td width="134" valign="top">
Provider
</td>
<td width="124" valign="top">
Loan name
</td>
<td width="97" valign="top">
Rate
</td>
<td width="116" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="134" valign="top">
Commonwealth Bank
</td>
<td width="124" valign="top">
1 Year Guaranteed Rate
</td>
<td width="97" valign="top">
5.34%
</td>
<td width="116" valign="top">
6.43%
</td>
</tr>
<tr>
<td width="134" valign="top">
UBank (NAB)
</td>
<td width="124" valign="top">
UHomeLoan Refinancing
</td>
<td width="97" valign="top">
5.37%
</td>
<td width="116" valign="top">
5.30%
</td>
</tr>
<tr>
<td width="134" valign="top">
Bankwest (CBA)
</td>
<td width="124" valign="top">
Online Home Loan
</td>
<td width="97" valign="top">
5.38%
</td>
<td width="116" valign="top">
5.38%
</td>
</tr>
</tbody></table>
Lowest one-year fixed-rate offerings
<table border="1" cellspacing="0" cellpadding="0" width="470"><tbody>
<tr>
<td width="137" valign="top">
Provider
</td>
<td width="123" valign="top">
Loan name
</td>
<td width="95" valign="top">
Rate
</td>
<td width="114" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="137" valign="top">
UBank (NAB)
</td>
<td width="123" valign="top">
UHomeLoan Refinancing
</td>
<td width="95" valign="top">
5.03%
</td>
<td width="114" valign="top">
5.36%
</td>
</tr>
<tr>
<td width="137" valign="top">
NAB
</td>
<td width="123" valign="top">
Fixed rate package
</td>
<td width="95" valign="top">
5.34%
</td>
<td width="114" valign="top">
6.11%
</td>
</tr>
<tr>
<td width="137" valign="top">
Bankwest
</td>
<td width="123" valign="top">
Fixed Rate Home Loan
</td>
<td width="95" valign="top">
5.39%
</td>
<td width="114" valign="top">
6.24%
</td>
</tr>
</tbody></table>
Lowest three-year fixed-rate offerings
<table border="1" cellspacing="0" cellpadding="0" width="470"><tbody>
<tr>
<td width="132" valign="top">
Provider
</td>
<td width="131" valign="top">
Loan name
</td>
<td width="96" valign="top">
Rate
</td>
<td width="111" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="132" valign="top">
UBank (NAB)
</td>
<td width="131" valign="top">
UHomeLoan Refinancing
</td>
<td width="96" valign="top">
5.13%
</td>
<td width="111" valign="top">
5.26%
</td>
</tr>
<tr>
<td width="132" valign="top">
NAB
</td>
<td width="131" valign="top">
Fixed rate package
</td>
<td width="96" valign="top">
5.39%
</td>
<td width="111" valign="top">
6.04%
</td>
</tr>
<tr>
<td width="132" valign="top">
Commonwealth Bank
</td>
<td width="131" valign="top">
Fixed rate package
</td>
<td width="96" valign="top">
5.39%
</td>
<td width="111" valign="top">
6.12%
</td>
</tr>
</tbody></table>
 *A comparison rate includes both the interest rate and the fees and charges relating to a loan, combined into a single percentage figure.
Initially banks blamed the higher cost of raising funds on international money markets brought on by the GFC for not passing on rate cuts in full and in some instances have lifted variable mortgage rates out of cycle with the RBA.
More recently banks have blamed the need to fund a greater share of their lending from the competitive retail deposits market for their inability to pass on rate cuts in full.
This is primarily due to <a href="https://www.propertyobserver.com.au/news/banks-have-pushed-up-their-lending-margins-but-funding-costs-have-risen-rba/2012060154943" target="_blank">introduction of Basel III</a>, the new international banking guidelines, which raise the amount of capital and liquid assets banks must hold. Banks now compete aggressively for retail deposits.
However, as noted by ANZ today, the Basel Committee has agreed to change previously proposed rules over bank liquidity requirements, loosening and expanding the criteria for securities that are eligible to meet a bank’s ‘liquidity coverage ratio’.
Under the revised rules, liquid bank assets can now include corporate bonds rated as low as BBB-, certain blue-chip equities and certain mortgage-backed securities rated AA or above.
ANZ also notes that the committee delayed the implementation of the proposed rules to 2019 from 2015.
 
<hr class="system-pagebreak">
 
According to RateCity.com.au, borrowers with a $300,000 mortgage would have saved extra $80 per month if lenders matched RBA cash rate cuts.
RateCity.com.au spokesperson Michelle Hutchison says this research should be a wake-up call for borrowers.
“Even though variable home loans have been falling for more than a year, which has saved borrowers $264 in monthly repayments for a $300,000 mortgage, many borrowers missed out on further savings because most lenders didn’t pass on rate cuts in full.
Hutchison expects the trend to continue this year where lenders move rates independently of the Reserve Bank.
“While further relief may be in sight, borrowers need to concentrate on the actual rate they are paying. Keep track of your home loan, compare it online to the rest of the market and renegotiate or switch to a better deal.”
At the same time that RateCity.com.au highlights banks and other lenders inability to pass on rate cuts in full, there are rumours circulating that the major banks may be considering doing the seemingly unthinkable, cutting their mortgage rates outside of the RBA rate cycle – a sign that competition in mortgage lending is heating up.
After News Ltd paper weekend reports, Brokernews.com.au reports that Westpac is considering a six-basis-point rate cut in February, regardless of whether the RBA cuts the cash rate at its February 5 monetary policy meeting.
This is subject to the out-of-cycle rate cuts not falling foul of <a href="https://www.accc.gov.au/content/item.phtml?itemId=1056925&amp;nodeId=cdc7bcede8d5f280ca1577e18e024825&amp;fn=Anti-competitive%20price%20signalling%20and%20information%20disclosures.pdf" target="_blank">anti-competitive new price-signalling</a> and information disclosure rules, introducing by the ACCC (and only applying to the banking sector) in June last year.
Analysts are also expecting the banks to move out of cycle, with TS Lim of Bell-Potter Securities telling news.com.au that he’s expecting one of the big four banks to cut rates by March.
Another analyst, Stephen Walters from JP Morgan, said lower global funding costs would enable banks to make out-of-cycle rate cuts.
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The lowest mortgage rates from the big four banks and their subsidiaries

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Self-managed super funds (SMSF) have increased their weighting to low-risk cash and term deposits as well as listed shares, but commercial property remains a substantial part of their portfolios.
The latest report on the sector from the Australian Tax Office (ATO) for the 2010-11 tax year shows declines in residential, non-residential property and listed property trusts investments as a proportion of assets held in SMSF portfolios.
SMSFs directly invested 78% of their assets, mainly in cash and term deposits and Australian-listed shares (a total of over 60%). While smaller SMSFs tended to favour cash and term deposits, larger SMSFs had a greater tendency to invest in listed shares, notes the ATO in its report.
“This is the first time over the three years (going back to 2008-09)  in which holdings of these two asset types (cash and term deposits and shares) have shifted in the same direction,” says the ATO.
“In turn there were small shifts away from all the other assets represented with a sustained shift away from listed trusts occurring over the three years.
“The data confirms the SMSF sector responds to changing economic circumstances.”
 
Click to enlarge
<a href="/images/stories/2012/12/absdec20.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/12/absdec20thumb.gif"></a>
Despite the general shift away from property, bricks and mortar remains a substantial part of SMSF investment strategy, with commercial property representing 11% of portfolios and residential property making up 3.5%.
In dollar terms, SMSFs have invested $48 billion in commercial property, $14.7 billion in residential property, $17.8 billion in listed trusts and $37.2 billion in unlisted trusts.
Listed shares account for nearly a third of SMSF assets (32%), followed by cash and term deposits (29%).
Listed trusts make up 4% of portfolios, and unlisted property trusts 8.8%. Many of these are property-related.
Click to enlarge
<a href="/images/stories/2012/12/absdec201.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/12/absdec201thumb.gif"></a>
The latest report shows that growth in SMSFs numbers continues.
Between the years ended June 2008 to June 2012 SMSF numbers have grown from almost 376,000 to over 478,000, representing growth of over 27%.
There are 913,550 members in the SMSF sector, almost 8% of roughly 11.6 million members in Australian super funds.
Collectively they hold $439 billion in assets.
Over this four-year period, the average assets of SMSFs grew by 12% to $963,000.
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SMSFs turn to low-risk deposits and shares but commercial property still big part of portfolios: ATO report

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1. Melbourne may be problematic, but regional Victoria has good prospects: Terry Ryder

Hotspotting.com.au director Terry Ryder says that while the Melbourne market is imploding, there are “good prospects for investors <a href="https://www.propertyobserver.com.au/victoria/melbourne-property-market-grim-in-2013-but-there-s-more-to-victoria-than-melbourne-terry-ryder/2012121758531" target="_blank">beyond the capital city</a>”. Ryder picks <a href="/news">Bendigo </a>and <a href="/news">Ballarat </a>as locations that more investors should consider, describing them as strong and dependable. His other picks are in the west of the state, <a href="/news">Warrnambool</a> and <a href="/news">Mildura</a>, which offer similar qualities to the two former gold-rush towns and have “diverse economies, plenty of infrastructure spending and affordable real estate”.

2. Continue to be cautious about investing in prestige property: Louis Christopher

In SQM Research’s 2012-13 Boom and Bust report, managing director Louis Christopher urged caution about investing at the prestige end of the market, “where rental vacancy rates are higher, and transaction and holding costs are far higher”. Christopher says that from a purely investment perspective, it makes far more sense to acquire and hold three properties at $500,000 each, instead of one property at $1.5 million.

3. Modest growth in all capital city markets, with Perth and Sydney to outperform: Richard Wakelin

Richard Wakelin, director of Wakelin Property Advisory, anticipates price growth across all the major mainland capital city markets in 2013, with Sydney and Perth the best placed. He expects Sydney property prices to rise by between 4% and 5% in 2013, with its low vacancy rate and high rental costs “a signal for renters and investors to buy property”. Wakelin says Perth prices could rise 5% to 6% in 2013 despite much of WA’s booming resource-driven economy bypassing Perth.  “Nevertheless, extreme tightness in the rental market appears to be overflowing into greater demand from first-home buyers. If this continues, Perth may see reasonably strong growth in 2013,” he says.

4. Expect more competition for properties at the lower end of rental market: Margaret Lomas

Margaret Lomas expects there to be increasing competition among investors for properties at the lower end of the market that are popular with renters. “You are going to have more competition for those types of properties … in the early and mid-part of 2013,” she tells Realestatetalk.com.au.


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5. Melbourne, Adelaide, Darwin and Canberra to consolidate in 2013: Aaron Maskrey 

Aaron Maskrey, research director at PRDnationwide, says Melbourne should continue its period of consolidation after recently experiencing a peak in its market cycle. “Like all large markets, there will always be pockets of areas that will still hold value, and this should be the case with most inner-Melbourne suburbs. Due to a somewhat balance between demand and supply with Adelaide, expect its market to remain fairly consistent, with only marginal increases in value during 2013. Canberra’s market remains fairly tight and values are expected to hold firm over the next 12 months.  Darwin has experienced a sustained period of high growth in 2012, pushing the market to unaffordable levels. The coming year should see growth in prices reach a plateau, as its market consolidates,” he says.

6. Consider the outer ring of most capital cities: Louis Christopher

SQM Research’s Louis Christopher favours Sydney’s west and Sydney’s south-west to continue to perform strongly in 2013. “Indeed, we favour the outer rings of most capital cities. In its simplest terms, the reason is that these areas have been underbuilt for some time now, yet demand for affordable accommodation is growing rapidly,” says Christopher in SQM Research's latest Boom and Bust report.
7. Remain risk-averse in 2013 and reduce your debt: Pete Wargent
Property investment writer Pete Wargent says he will use debt moderately in 2013 to add to his property portfolio. Wargent writes that the loan-to-value ratio (LVR) on his UK property portfolio is under 50%, but a little higher on his Australian property portfolio, but he is steadily reducing it. “Yes, a higher debt-to-equity ratio magnifies returns, but at what cost? The cost is risk. It was common for promoters of UK 'property clubs' to talk of 'being worth £2 million' in property up until around 2007. But where they were investing in far-flung and remote properties using 100% mortgages, the only thing they are likely to be worth today is being lynched by angry investors who were duped into doing the same,” says Wargent. He will look to add two properties to his portfolio over the next few months, but “will look to use cash rather than drawing equity and will use 25-35% deposits (one in south-east England as a long-term currency play and one in Australia)”.  “Of course I could be more aggressive in order to leverage up and chase greater returns … but don’t forget that I am, after all, an accountant. After years of boring-but-safe and risk-averse investment I will remain disinclined to take on greater risk,” he says.
8. Look to the “battlefield suburbs for price growth: Angus Raine
Raine and Horne CEO Angus Raine expects 2013 to be a challenging one for the property market, with the possibility that a “smattering of suburbs across Australia could enjoy some capital growth of between 5.5% and 7%”. Raine says investors should be looking at the “battlefield suburbs’, where first home buyers are set to shape up to investors”. “In other words, St Marys in Sydney, Adelaide’s Semaphore, as well as North Melbourne, Ascot Vale, Brunswick and Footscray in Melbourne are set to benefit as investors compete with first timers for quality homes. Across the continent, it’s the ‘forgotten suburbs’ of inner Perth such as Embleton and Ashfield that will enjoy some growth as investors and first time buyers muscle up,” he says.
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Eight property pointers for buying or selling in 2013

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Perhaps signifying the level of uncertainty in the outlook for the 2013 economy and property market, a poll of 23 economists carried out by The Age profers a range in cash rate forecasts at year's end as anywhere between 2% and 3.25%.
Notably, the University of Western Sydney’s professor Steve Keen is one of three economists (the others being Richard Gibbs of Macquarie Group and Stephen Anthony of consulting firm Macroeconomics) forecasting the cash rate to fall to 2% by the end of the year.
While some readers may scoff at Keen’s forecast given his disputed views on house prices, The Age notes that Keen was the only member of the panel to correctly pick the cash rate to fall to 3% by the end of 2012 when the survey was carried out 12 months ago.
“[The RBA] had just cut the cash rate twice from 4.75% to 4.25%. The equivalent of five more cuts was unthinkable, except for Steve Keen,” writes The Age’s economic correspondent Peter Martin.
Martin also notes that Keen was also correct in tipping an inflation rate of 2% by December 2012, with other forecasts of around 2.8% – “not shabby but not keen”.
The average forecast of the 23 economists is for an end-of-year cash rate of 2.7% off the back of modest economic growth (2.7% for Australia, compared with 3.1% across the globe) with a solid 5% pick-up in housing investment following a 6% fall over 2013 – filling some of the gap left by mining.
The weaker economic conditions are expected to push up the unemployment rate to 5.7% by December – seven economists (including Keen and AMP Capital’s Shane Oliver) tip the unemployment rate to rise to 6% or higher in 2013.
The Age survey considered the sentiments of market economists from banks and financial institutions, which make up the bulk of those surveyed (12 economists) along with six university economists, three from economic consultancies and two industry commentators.
Apart from Richard Gibbs from the Macquarie Group, who is tipping the cash rate to slide to 2% over the course of the year, economists from the banks and financial institutions have modest expectations for cash rate cuts in 2013.
Six bank and financial institution economists – including Bill Evans from Westpac, Chris Caton from BT Financial and Saul Eslake from Bank of America – expect the cash rate to fall just 25 basis points over the course of the year to 2.75%.
AMP Capital chief economist Shane Oliver is tipping a cash rate of 2.5% by year-end, with Michael Workman (Commonwealth Bank),  Andrew McManus (ANZ) and Scott Haslam (UBS Australia) expecting the cash rate to be unchanged at 3% by year-end.
HSBC Australia and New Zealand chief economist Paul Bloxham is the most bearish on the cash rate (but arguably most bullish on the economy), expecting the cash rate to end the year higher at 3.25%.
Former economic adviser to the Gillard government Stephen Koukoulas from consultancy Market Economics is tipping the cash rate to fall to 2.5% by year-end, as is BIS Shrapnel chief economist Frank Gelber.
The two industry economists – Julie Toth from Australian Industry Group (AIG) and Brad Crofts from Australian Workers Union – expect further rate cuts in 2013.
Toth is forecasting one more rate cut (2.75%) and Crofts two more (2.5%).
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Steve Keen and Macquarie Group tip cash rate of 2% by year-end

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The Reserve Bank is expected to cut the cash rate a number of times in 2013 to support the non-mining sectors of the economy as the mining investment boom reaches its peak.
Currently variable rates are starting from as low as 5.17% – the rate being offered by non-bank lenders Mortgage View and Nationwide Mortgage.
Newcastle Permanent is offering a one-year fixed rate of 4.99% and Resi is offering a three-year fixed rate of 5.09%.
Fairfax finance columnist David Bassanese points out that financial futures markets have a “near certain expectation” of a rate cut when the RBA monetary policy committee meets for the first time in 2013 on February 5.
According to Bassanese, the best the Australian economy can hope from the mining sector is a zero contribution to economic growth in 2013.
“Barring a sudden slump in the dollar, interest rates will need to do most of the work in helping to rebalance the economy,” he writes in the Australian Financial Review.
<a href="https://www.propertyobserver.com.au/residential/residential-property-prices-to-rise-5-in-2013-but-shares-a-better-bet-than-property-shane-oliver/2012121258437" target="_blank">AMP Capital chief economist Shane Oliver</a> is tipping at least two rate cuts in 2013, taking the cash rate to 2.5%, “in order to push bank lending rates down closer to past cyclical lows”.
But he says the cash rate could fall as low as 2% if non-mining sectors like retailing and housing don’t recover fast enough.
“This could occur, for example, if rising unemployment triggers a desire on the part of households to more rapidly reduce their debt levels. This could see the RBA cut the cash rate to 2% or below,” writes Oliver in his outlook for 2013.
Fixed rates are likely to continue to fall as lenders seek to lock in borrowers and circumvent the government’s ban on mortgage exit fees.
These are the lowest advertised mortgage rates based on listings by <a target="_blank" href="https://www.ratecity.com.au/">ratecity.com.au</a>, <a target="_blank" href="https://mozo.com.au/">Mozo.com.au</a> and <a target="_blank" href="https://www.infochoice.com.au/">infochoice.com.au</a> as of January 7:
Lowest variable rate offerings:
<table cellpadding="0" cellspacing="0" border="1" style="width: 470px;"><tbody>
<tr>
<td valign="top" width="134">
Provider
</td>
<td valign="top" width="124">
Loan name
</td>
<td valign="top" width="97">
Rate
</td>
<td valign="top" width="116">
Comparison rate*
</td>
</tr>
<tr>
<td valign="top" width="134">
Nationwide Mortgage
</td>
<td valign="top" width="124">
True Saver Home Loan
</td>
<td valign="top" width="97">
5.17%
</td>
<td valign="top" width="116">
5.18%
</td>
</tr>
<tr>
<td valign="top" width="134">
Mortgage View
</td>
<td valign="top" width="124">
Pro Pack New Year special
</td>
<td valign="top" width="97">
5.17%
</td>
<td valign="top" width="116">
5.19%
</td>
</tr>
<tr>
<td valign="top" width="134">
Pacific Mortgage Group
</td>
<td valign="top" width="124">
PMG Standard Variable
</td>
<td valign="top" width="97">
5.32%
</td>
<td valign="top" width="116">
5.32%
</td>
</tr>
</tbody></table>
Lowest one-year fixed-rate offerings
<table width="470" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td valign="top" width="137">
Provider
</td>
<td valign="top" width="123">
Loan name
</td>
<td valign="top" width="95">
Rate
</td>
<td valign="top" width="114">
Comparison rate*
</td>
</tr>
<tr>
<td valign="top" width="137">
Newcastle Permanent
</td>
<td valign="top" width="123">
Fixed Rate Home Loan
</td>
<td valign="top" width="95">
4.99%
</td>
<td valign="top" width="114">
5.98%
</td>
</tr>
<tr>
<td valign="top" width="137">
UBank
</td>
<td valign="top" width="123">
UHome Loan for refinancing
</td>
<td valign="top" width="95">
5.03%
</td>
<td valign="top" width="114">
5.36%
</td>
</tr>
<tr>
<td valign="top" width="137">
My Mortgage Freedom.com.au
</td>
<td valign="top" width="123">
Fixed Rate (LVR 75%-90%)
</td>
<td valign="top" width="95">
5.09%
</td>
<td valign="top" width="114">
5.88%
</td>
</tr>
</tbody></table>
Lowest three-year fixed-rate offerings
<table width="470" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td valign="top" width="132">
Provider
</td>
<td valign="top" width="131">
Loan name
</td>
<td valign="top" width="96">
Rate
</td>
<td valign="top" width="111">
Comparison rate*
</td>
</tr>
<tr>
<td valign="top" width="132">
Resi
</td>
<td valign="top" width="131">
Flexi Fix Plus 75
</td>
<td valign="top" width="96">
5.09%
</td>
<td valign="top" width="111">
5.80%
</td>
</tr>
<tr>
<td valign="top" width="132">
UBank
</td>
<td valign="top" width="131">
UHome Loan for refinancing
</td>
<td valign="top" width="96">
5.13%
</td>
<td valign="top" width="111">
5.26%
</td>
</tr>
<tr>
<td valign="top" width="132">
Pacific Mortgage Group
</td>
<td valign="top" width="131">
PMG Fixed
</td>
<td valign="top" width="96">
5.19%
</td>
<td valign="top" width="111">
5.42%
</td>
</tr>
</tbody></table>
*A comparison rate includes both the interest rate and the fees and charges relating to a loan, combined into a single percentage figure.
For information on refinancing, watch our free webinar <a target="_blank" href="/news">Refinancing and the Interest Rates Riddle</a>
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More rate cuts likely in 2013: A guide to the lowest rate home loan offerings as of January 7

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The Reserve Bank needs to cut the cash rate by a large amount in one big hit to stimulate a recovery in the housing market, according to Residex chief executive John Edwards.
On the back of November Residex housing market data, which shows many markets in negative territory or treading water, Edwards says the Reserve Bank should look to cut the cash rate by 75 basis points in February.
“Should the RBA continue along the road of small reductions, there is a real risk that it will need to reduce the cash rate to 2% or less.
“However, should it move to a much more significant reduction in February (of around 0.75 percentage points), this would probably achieve its objectives and bring the cycle of small rate adjustments to an end.
“The outcome would be the removal of constant press about the likely poor outcome as the resources boom comes to an end.
“Importantly, it would be probably sufficient to stimulate consumer spending and encourage small business investment. In all probability, this outcome would lead to a much improved level of consumer sentiment,” he says.
Edwards says housing markets had done better in 2012 compared to the previous year, but had failed to keep pace with inflation.
“The majority of cities have produced negative real rates of growth (after taking inflation into account). In fact, the real growth was a -2.8% in housing while for units it was -1.23%,” says Edwards.
Speaking to Peter Switzer on Sky Business last week, he said the vast majority of capital cities in November provided negative growth.
And he expressed concern at the drop in Perth house prices in November (down 1.39%), which he said indicated that resources activity was slowing much faster in Perth.
“We can see it in the numbers,” he says.
Edwards said that in the past smaller rate cuts had made an impact because there was both better consumer sentiment and affordable housing.
He said the current small 25-basis-point rate cuts were part of a circle where the consumer heard bad press about the economy at the rate cut as well as news about the resources boom slowing and news on the international economy.
He says the effect is that the 25-basis-points cuts constantly reinforce the view of the consumer that there are problems.
“Poor consumer sentiment is having a negative impact on things,” he said.
Despite his concerns, Edwards says that “courageous” people willing to buy now will do well if they can seek out bargains.
Edwards says he himself is in the market for renovation bargains.
Despite the poor performance of the market in 2012 in real terms, Edwards says he expects all adjustments in house prices since the GFC to be “recovered in the medium term, and prices are anticipated to be equal to or better than before the GFC”.
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Big 75-basis-point RBA cash rate cut needed in February to override consumer sentiment: John Edwards

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Listed commercial property group Dexus has acquired a 25% stake in 225 George Street, the iconic 44 storey Sydney office tower, more commonly known as Grosvenor Place, for $271 million, as part of a $503.7 million portfolio investment just before Christmas.
It follows the successful sale of Dexus’s US industrial portfolio earlier this week, the proceedings used to fund the office investments.
Apart from the Harry Seidler-designed tower, Dexus also acquired a 50% interest in 2 and 4 Dawn Fraser Avenue, Sydney Olympic Park - two adjoining seven level A-Grade office towers opposite the Sydney Olympic Park for $82.7 million and made a joint (50/50) purchase of 39 Martin Place, a 20 level B-Grade property located adjacent to Martin Place railway station, Sydney with the Dexus Wholesale Property Fund (DWPF) for $149.75 million.
The portfolio was acquired in an off-market transaction from the Direct Property Investment Fund (DPIF), a wholesale office fund, managed by the property division of Colonial First State Global Asset Management.
DPIF is a closed-end fund and is currently in its wind-down phase.
Colonial First State had acquired its 25% interest in Grosvenor Place in 2003, which was valued at $273.8 million in June this year.
The primary tenants are Deloitte, which lease 26% of the building until 2023, law firms Ashurst (16% until 2015) and Norton Rose (11% until 2019) and McCann World Group.
The building was opened in 1988 and won a number of architectural awards for its unique design, including the two large crescent shaped floor plates.
“We are pleased to be able to announce the reinvestment of a significant portion of the sale proceeds from the US industrial portfolio into quality Australian office assets in one of our core office markets. The unique off-market nature of this transaction and our team’s ability to confidentially execute on an accelerated timetable concurrently with the US sale, reinforces our strength in the origination and execution of deals,” says Darren Steinberg, CEO of Dexus.
Steinberg says the new acquisitions “enhances the quality and diversification” of its office portfolio and is a key milestone in its strategy of delivering superior risk-adjusted returns from high quality Australian real estate primarily comprising CBD office buildings.
“DEXUS now holds interests in four out of seven premium office buildings in the Sydney market,” he says.
The other premium Sydney investments include 1 Bligh Street and 201-217 Elizabeth Street.
The purchase of the Sydney portfolio increases Dexus’s footprint in the Sydney office market from 365,075 square metres to 403,599 square metres giving it around 8% of the market
Grosvenor Place comprises 84,527 square metres of office accommodation (86% occupancy by income) over 44 levels together with 984 square metres of retail space (100% occupancy by income), parking for 566 cars and a three storey lobby.
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Dexus pays $271 million for 25% of Harry Seidler-designed Grosvenor Place in Sydney CBD

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With Christmas around the corner, Australian households have stopped worrying about electricity bills, and instead have turned their homes into garish beacons of light, some of them surely visible from the moon.
According to Wikipedia, Australians are among the biggest fans of the tradition of decorating homes, with hundreds and sometimes thousands of tiny lights. This miner's cottage in Wollongong is hardly visible in the darkness under the Christmas lights.
<img src="/images/stories/2012/12/miners.jpg" width="470" height="343" alt="miners">
What first began as way to light up a veranda to enjoy a cold beer has turned into something of an obsession for some home owners, with the Lobethal Valley in the Adelaide Hills claiming to have the largest Community Christmas Light Display in the southern hemisphere.
Adelaidians flock to the nearby Adelaide Hills in the run-up to Christmas for a view of the twinkling lights in the valley (pictured below) and possibly to quaff a glass of wine or two.
<img src="/images/stories/2012/12/loebel1.jpg" width="470" height="280" alt="loebel1">
<img src="/images/stories/2012/12/loebel3.jpg" width="470" height="280" alt="loebel1">
Among the most famous Christmas lights are those in New York’s Rockefeller Center with its enormous Christmas tree, a world-wide symbol of the holidays in New York City. This year’s tree was hoisted into position by a giant crane and is decorated with more than 30,000 multi-colored, energy-efficient LED lights, and crowned by a Swarovski star. The tree came to ‘light’ on November 28
<img alt="rockcentre" height="500" width="373" src="/images/stories/2012/12/rockcentre.jpg">
Another celebrated Manhattan landmark, the Empire State Building, has a new LED lighting system, which allows effects such as ripples, cross-fades, sparkles, sweeps, strobes and bursts with an range of colours.
The world’s most celebrated skyscraper is now decked out in colours of red and green for Christmas:
<img alt="estate" height="393" width="470" src="/images/stories/2012/12/estate.jpg">
A few weeks ago it was colours of blue and white to celebrate the Jewish holiday of Hanukkah:
<img alt="estatehann" height="294" width="470" src="/images/stories/2012/12/estatehann.jpg">
 
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London’s most famous department store, Harrods, turned on its Christmas lights in November, complete with fireworks, with the lights delineating the enormous shoppers’ mecca.
<img alt="harrods" height="403" width="470" src="/images/stories/2012/12/harrods.jpg">
And it would be wrong (perhaps even sinful) not to include mention of the lights of the most famous boulevard in the world, the Champs-Elysées in Paris.
<img alt="parisxmas" height="375" width="500" src="/images/stories/2012/12/parisxmas.jpg">
Closer to home, both Melbourne and Sydney are getting into the Christmas spirit.
Looking perhaps more psychedelic than Christmas, Melbourne Town Hall is wrapped in a red bow.
<img alt="townhallxmas" height="282" width="470" src="/images/stories/2012/12/townhallxmas.jpg">
Sydney has gone more high-tech with this Town Hall covered in colourful projections.
<img alt="townhall2" height="236" width="470" src="/images/stories/2012/12/townhall2.jpg">
And then there’s always the humble Australian home, lit up like, well, a Christmas tree.
There’s this home in Caramar, Perth:
<img src="/images/stories/2012/12/xmaslights.jpg" width="470" height="353" alt="xmaslights">
And this more considered display in Kew, Melbourne:
<img src="/images/stories/2012/12/xmas2.jpg" width="470" height="256" alt="xmas2">
In Sydney, you’ll be hard pressed to miss this home in Riverwoods.
<img src="/images/stories/2012/12/xmas3.jpg" width="470" height="353" alt="xmas3">
For more colourful Aussie inspirations, try this <a target="_blank" href="https://www.ozchristmaslights.com/">dedicated website.</a>
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Christmas light spectaculars: From Rockefeller Center to the suburban Australian home

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The year ended with some signs of optimism for the wine industry and vineyards with fruit prices higher, more interested buyers, some long-listed properties selling and fewer distressed sales.
There was also good news for the South Australian vineyard owners and winemakers with state government announcing that the Barossa and McLaren Vale regions would be protected from residential subdivision, following the passing of both the Character Preservation (Barossa Valley) Bill 2012 and the Character Preservation (McLaren Vale) Bill 2012.
Announcing the plans to protect wine-growing land, South Australian planning minister John Rau, said “a line in the sand has now been drawn on Adelaide's urban sprawl”.
South Australia is Australia’s wine-country heartland with nearly one-third of vineyards in the state, representing nearly half (48%) of Australia's wine production, according to ABS figures.
The state also dominates current vineyard listings with 14 of the 26 properties listed for sale on realestate.com.au being South Australian vineyards.
<img alt="vineyard3" height="353" width="470" src="/images/stories/2012/12/vineyard3.jpg">
Investors with a penchant for these trophy assets can still pick up picturesque vineyard properties under the $1 million mark including the historic Craigie Knowe Vineyard and Homestead (pictured above and below) on the Tasmanian east coast up for sale with offers sought over $800,000. It has five hectares of vineyards and a B&amp;B.
<img src="/images/stories/2012/12/vineyard4.jpg" width="470" height="353" alt="vineyard3">
Another sub-$1 million offer is this (below) vineyard estate in Victoria’s Pyrenees seeking around $750,000 and promising plenty of kangaroos, sweeping views of the Pyrenees ranges plus 13 hectares of vines.
<img alt="vineyard5" height="353" width="470" src="/images/stories/2012/12/vineyard5.jpg">
Investors with a bit more cash to spare and seeking vineyards plus a much-admired homestead may be interested in the <a target="_blank" href="https://www.propertyobserver.com.au/new-south-wales/friday-tattle-nyrang-homestead-the-much-admired-molong-property-listed-for-sale/2012112958203">1904 Nyrang Homestead</a> at Molong (pictured below) listed for sale with $1.5 million hopes in November. The homestead is regarded as one of the finest examples of Australian architecture and construction and comes with five hectares of productive vineyards with plantings of shiraz, cabernet sauvignon, ruby cabernet, sauvignon blanc, merlot, chardonnay, pinot noir and sangiovese.
<img src="/images/stories/2012/11/molong.jpg">
 
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Focusing on the top end of the market in its 2012 rural and agribusiness report, Colliers International reported that while the Australian dollar and increasing competition from overseas markets continues to add pressure, the vineyard segment "is beginning to rebound, albeit slowly”.
In their end-of-year report, valuers at Herron Todd White said that after more than five years of decline, the wine grape sector “appears to finally be on the improve, with increased demand from wineries resulting in improved prices in 2012”.
“Prices are expected to remain at similar the supply/demand equation is reaching a balance after nearly ten years of oversupply and the industry’s outlook is brighter.
“Wine grape vineyard sales throughout 2012 definitely showed a firming of values, which suggests there are buyers who wish to enter the industry while values are at historically low levels,” says Herron Todd White.
Looking ahead to 2013, Treasury Wine Estates, the former wine arm of Fosters, says it will look to acquire vineyards as they become available.
But it remains a tough, buyers market.
Colliers International vineyards specialist Tim Altschwager says conditions remain difficult with prices having fallen by around 30% to 50% over the past few years, though rising grape prices and recent sales are encouraging buyers back into the market.
Over the course of the year, some well-known wineries fell by the wayside with the decision taken by creditors to liquidate the former ASX-listed <a target="_blank" href="https://www.propertyobserver.com.au/news/tenders-to-close-for-premium-cabernet-sauvignon-and-shiraz-coonawarra-vineyards/2012072555732">Coonawarra Australian Property Trust </a>and sell 333 hectares of vineyards famous for cabernet sauvignon and Shiraz wines with similar vineyards in the Coonawarra area have recently attracted figures in excess of $20,000 per vine area. Expressions of interest closed at the end of July, but no sale has been announced.
Certainly the dominant theme for 2012 was one of improvement and better prospects for the futre.
ABS figures suggest improved productivity, noting that  while the area of grape vines in Australia has decreased by 6% since 2010, “thanks to favourable seasonal conditions there's still plenty of wine”, with wine grape production increasing by 3% to 1.6 million tonnes.
It has been a pretty consistent year for vineyard transactions with a number of noted properties selling.
A recent sale was that of boutique winery Parker Coonawarra Estate, which sold nearly a year after Nufarm CEO Doug Rathbone put the winery along with other wine assets – Yering Station and Mount Langi Ghiran in Victora and Xanadu in Western Australia – up for sale to repay debt. The winery was sold to Hesketh Wines for around $6 million to $7 million, according to the Stock and Land.
The Rathbone Wine Group, run by Darren Rathbone, will continue to bottle Parker wine and reported a 15% rise in wine sales over the calendar year.
Another recent sale was Brookhampton Estate near Donnybrook, an iconic vineyard producing mainly red wines and also operating as a concert venue in the south west of Western Australia. It sold in October through Brian Moulton of Acton South West – Dunsborough. Expressions of interest had closed in May. RP Data lists a sale price of $3 million.
In August, Property Observer reported that Western Australia's well known <a href="https://www.propertyobserver.com.au/news/john-streicker-buys-more-margaret-river-vineyards/2012080655781">Clairault Vineyard</a> (pictured below) has been sold to American entrepreneur John Streicker for a $12 million.
<img src="/images/stories/2012/08/clairault.jpg">
Earlier in the year, a number of sales were concluded by receivers.
The Pettavel winery in Geelong, which went into voluntary administration in April 2011, was sold to a group of local investors in May for $3.65 million.
Also in May, the <a href="https://www.propertyobserver.com.au/rural/cheviot-finds-potential-buyer-for-clare-valley-tullymore-vineyard/2012013153204">now de-listed Cheviot Kirribilly Vineyard Property Limited (CKP Group)</a> announced the sale of its Tullymore Vineyard for $ 2 million to reduce its debt obligations as part of plans announced in December 2011 to sell all six properties in its vineyard portfolio.
In January CKP reported that four of the properties in the portfolio had been sold, including Birchmores vineyard and Woodstock Road vineyard in Langhorne Creek and Angas Creek stage 1 and stage 2 vineyards in the Adelaide Hills for a combined price of circa $9.5 million. The last remaining vineyard, Kirrbibilly Estate 1 in the Clare Valley with 214 hectares of vineyards went to auction through Colliers in June but failed to sell. It is listed as “under contract” through Tim Altschwager.
In March, the assets of Crestview Pty Ltd, which include Step Road winery at Langhorne Creek; which produces a number of well-known brands, including Step Rd and Beresford Wines, was sold for $3.5 million.
In February, Clarendon vineyard in the McLaren Vale region sold to <a target="_blank" href="https://www.propertyobserver.com.au/rural/us-based-jackson-family-wines-buys-sas-hickinbotham-clarendon-vineyard/2012020553257">US wine company Jackson Family Wines</a>, for around $8 million. The property comprises around 184 hectares and around 80 hectares planted with vines. It was originally placed on the market in 2010.
And in January, Xingfa Ma, one of China’s richest men, bought a 72% share in WA's Franklin River district Ferngrove  Wines for $10 million. It includes two vineyards in Franklin with an area of approximately 225 hectares planted with premium vines.
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Summer dreaming: 2012 vintage property sales start bearing fruit

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Buying an apartment in the Brisbane CBD could be a cheaper option than renting one, according to the December RP Data Buy vs Rent report.
The latest edition of the theoretical report lists 494 suburbs across Australia where renters should think about doing the sums and perhaps looking at buying an equivalent property (if they can find one) rather than paying rent to a landlord.
This is up from the 388 suburbs in the previous October report and well up from just 238 locations listed in the first report released in August – RP Data updates the report whenever the RBA cuts the cash rate.
However, there are very few inner-city locations where genuine deposit savings are possible, with many of the suburbs on the list being  in remote locations, hundreds and sometimes thousands of kilometres from the nearest capital city – and requiring huge deposits.
The top 20 on the list is dominated by mining towns in WA with inflated rents, but with rental population heavily subsidised by mining companies and with little incentive to consider buying.
Click to enlarge
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With the average variable interest rate now at 5.65%, Brisbane is the capital city that potentially offers renters the best opportunity to come out financially better off by becoming property owners with 58 greater Brisbane suburbs out of a total of 185 in Queensland.
Brisbane CBD units ranks 52nd out of the 494 suburbs on the RP Data list with a potential saving of $344 a month for those buyers who can find a similar property to the one they are renting and raise a 10% deposit of $45,000.
The median unit price in the Brisbane CBD is $455,000 while median weekly rent is $625.
Recent Brisbane CBD apartment sales around the median include <a target="_blank" href="https://www.realestate.com.au/property-apartment-qld-brisbane+city-110402065">this two-bedroom unit on Albert Street</a> (pictured below), which sold for $445,000 in October.
<img alt="albertst3" height="353" width="470" src="/images/stories/2012/12/albertst3.jpg">
A look at rental listings in the Brisbane CBD show there are around 90 or so two-bedroom apartments available for rent around the $600 per week mark, including<a target="_blank" href="https://www.realestate.com.au/property-apartment-qld-brisbane+city-409249651"> this fully furnished, air-conditioned two bedroom apartment</a> (pictured below) in the CBD advertised at $580 per week.
<img alt="brisbcity" height="353" width="470" src="/images/stories/2012/12/brisbcity.jpg">
There are 48 suburbs in Sydney on the list, 40 in Adelaide, 16 in Hobart, eight in Perth, six in Melbourne and seven in Darwin.
 
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Other inner-city locations to feature on the Buy vs Rent report include Enmore units in Sydney, units in the Perth CBD, units in Carlton, Melbourne, units in Ascot Vale (Perth) and Wynnum West in Brisbane.
In total there are only 18 inner-city suburbs on the list out of nearly 500 where renters would $100 or more better if they chose to rent.
Click to enlarge
<a href="/images/stories/2012/12/rentbuy6.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/12/rentbuy6thumb.gif"></a>
The report, meant as a starting point for those considering buying rather than a definitive guide, compares the cost of monthly mortgage repayments (using the scenario of  paying back principal and interest on a variable mortgage rate) with the median rent in that suburb.
It does not consider the potential for capital gains or other costs of ownership such as transaction costs and ongoing maintenance expenses.
It also does not factor in the need to raise what could be a substantial deposit, particularly if you are considering buying nor does it consider the demographic factors within a location.
For example, the location where it theoretically makes the most sense to buy a house rather than rent is Port Hedland in the Pilbara, the epicentre of WA’s mining boom.
RP Data estimates that buyers are over $5,000 a month better off than those that rent with monthly rental costs in excess of $10,000.
However, the median price of a house in Port Hedland is almost $1.2 million, meaning renters could be required to stump up a 10% deposit of $120,000 to secure a loan – out of reach for most.
Furthermore, most renters in Port Hedland and other mining towns, which dominate the top Buy vs Rent locations, would have their rents paid by their mining employee  or might be fly-in-fly-out (FIFO) workers so they would have no incentive to buy.
Another point to bear in mind that some locations considered good options to buy rather than rent would have a scarcity of stock or virtually no stock at all, with the prime example being houses in Docklands, a suburb where apartments dominate.
Docklands houses rank 21st on the list with potential monthly savings for those who choose to buy rather than rent of $846 a month on a variable loan. However, do a search on real estate listings websites and you’ll find just a handful of houses and asking prices approaching $2 million for river-fronted properties.
According to RP Data national research director Tim Lawless, it is meant as a “good starting point for further investigations into whether or not a potential purchaser should consider purchasing within a specific suburb”.
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Brisbane CBD among 494 suburbs where you could be better off buying then renting, but very few inner-city options: RP Data

<a href="https://www.apartments.com.au/developments/broadbeach-qld-4218">Broadbeach</a> offers plenty of reasons to live vertically, but moving from a substantial family home into an apartment can expose the compromises of high-density living. Privacy, room for guests and usable living space tend to matter more when an apartment is intended as a permanent home rather than an occasional coastal base.

A typical residential floor at <a href="https://www.apartments.com.au/new-apartments/the-eveleigh-broadbeach-7-9-surf-parade-broadbeach-qld-4218">The Eveleigh</a>, on Surf Parade,&nbsp;contains just four apartments. The 94-residence development by <a href="https://www.apartments.com.au/developers/hirsch-faigen">Hirsch &amp; Faigen</a> is predominantly made up of expansive three-bedroom homes, with a limited collection of half-floor penthouses above.

Across the apartment floors, <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> has used the relatively limited number of residences to give each home greater access to natural light and outlook. Living spaces extend towards full-height glazing, while a series of bay windows frame selected views across the Pacific Ocean, city and hinterland rather than treating the building edge as a continuous wall of glass.

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[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.

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[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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[smartcode_project:default project_id=149670 project_image_fid=360966]

Higher in the building, a rooftop pavilion and private dining suite sit alongside resident lounge, barbecue and outdoor dining areas, opening towards panoramic views across the ocean, city and hinterland.

“Buyers are no longer just looking for an apartment, but a lifestyle where they can relax, reset, and enjoy a balanced way of living,” Hirsch &amp; Faigen Director of Sales Matt George said.

Interest to date has come from established owner-occupiers and interstate lifestyle purchasers, including buyers planning a future move to the Gold Coast. Many are coming from larger homes and want to reduce ongoing maintenance without giving up space for family and guests, privacy, two car spaces or the ability to entertain at home.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360969]

Much of that daily life can also take place beyond the building without requiring a drive. Kurrawa Beach and Pratten Park are an easy walk from Surf Parade, while Pacific Fair, Oracle Boulevard, The Oasis, restaurants, cafés, entertainment and public transport are also within walking distance.

The Eveleigh is Hirsch &amp; Faigen's fourth Gold Coast development since entering the market in 2021, following The Hemingway at Palm Beach, The Emerson at Kirra and Yves at Mermaid Beach. Each of the preceding projects sold out before completion.

“Broadbeach had been on our radar throughout our time operating on the Gold Coast,” the developer said. “Following our projects in Palm Beach, Kirra and Mermaid Beach, Broadbeach represented the natural next step for the business.”

The Surf Parade site brought together proximity to the beach, protected coastal outlooks and walkability to dining, shopping and recreation. Hirsch &amp; Faigen also identified the street as an emerging premium residential address, with enough separation from Broadbeach's busier destinations to retain a quieter environment at home.

The Eveleigh is now under construction by Maxcon, with completion forecast for mid-2028. Three-bedroom residences are currently available from $2.87 million.

[smartcode_project_cta:default project_id=149670]

Joel Robinson

The Eveleigh brings house-like apartments to Broadbeach

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

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

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

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

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

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

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