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A two-tier unit and townhouse market is set to emerge in the NSW Riverina town of Wagga Wagga, with a number of new developments under construction aimed at the upwardly mobile and retiree end of the market, as the region benefits from economic growth and resource-related activity.
Located 450 kilometres from both Sydney and Melbourne, <a target="_blank" href="/news">Wagga Wagga </a>is NSW’s largest inland city, with a population of 63,500 people.
A recent Sydney Morning Herald report notes the development of a strong restaurant culture in Wagga Wagga, the launch of the National Art Glass Gallery and the city becoming a conferences hosting hub, with accommodation offerings such as Carlyle Suites featuring 21 upmarket suites and apartments.
In his column on Property Observer today, <a href="https://www.propertyobserver.com.au/new-south-wales/regional-property-markets-outperformed-capital-cities-in-2012-terry-ryder/2012121258440" target="_blank">Terry Ryder </a>names Wagga Wagga alongside <a target="_blank" href="/news">Dubbo</a>, <a target="_blank" href="/news">Tamworth</a>, <a target="_blank" href="/news">Gunnedah</a>, <a target="_blank" href="/news">Mudgee</a>, <a target="_blank" href="/news">Orange</a>, <a target="_blank" href="/news">Goulburn </a>and <a target="_blank" href="/news">Albury </a>as regional locations in NSW that he expects to outperform capital city markets.
"NSW is blessed with many strong regional centres that are a lot more affordable than Sydney and have provided much better capital growth over recent years," says Ryder.
Two of the biggest developments under construction in Wagga Wagga are the Mill Residence and The Grange Village, which will add 282 units and townhouses to the Wagga market by 2014- 2015.
<img src="/images/stories/2012/12/waggamill2.jpg">
The Mill Residence is being built on the historic Murrumbidgee Flour Mill site (pictured above), with the first stage consisting of 52 apartments ranging from modern two-bedroom apartments through to luxury penthouse apartments.
Two-bedroom units in The Mill Residences, being developed by Interlink Wagga Central, are priced from $360,000, with a three bedroom selling from $470,000.
“The higher prices asked by the developer of this project are a show of confidence in the Wagga market. Sales levels in this unique development will determine the strength of demand for luxury strata-titled product in this regional market," says PRDnationwide NSW analyst Oded Reuveni-Etzioni.
The Grange Village (pictured below) is being developed by Nash Bros Constructions and set within 22 hectares of landscaped gardens and is aimed at over-55 retirees featuring two- and three-bedroom villas.
<img src="/images/stories/2012/12/grangewagga.jpg">


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Another retiree community, Estella's Settlers Village, is expected to expand with new townhouse to be built with serviced apartments selling from $139,000 and self-contained villas from $259,000.
Both retiree developments come as the healthcare and retirement sector expands in the region, led by the Wagga Wagga Base Hospital redevelopment and an increase in the number of retirement units across the city.
The new developments are set to create a dichotomy between high- and low-end products, says Reuveni-Etzioni, with older villas remaining an affordable option to first-home buyers, investors and retirees.
In the past six months to September 2012, 45% of medium-density dwellings have sold for less than $200,000, while 47% of villas and units have sold in the $200,000 to $300,000 price range.
Sales in the $300,000-plus bracket averaged 12% of sales.
Reuveni-Etzioni says there is evidence of the region's economic growth across all major property sectors.
"The expansion of the [Bomen] Business Park is underpinned by a new oil refinery and an integrated oil-seed processing plant, while on the retail front a new Masters Warehouse has entered construction phase," he says.
“This stable and diversified economy provides employment for locals and attracts new residents from other parts of the state.”
In RP Data’s Rent vs Buy report, three Wagga Wagga locations are included where buying could be cheaper than renting.
These include <a href="/news">Lake Albert</a>, where the median unit rent is $275 per week and the median unit value is $196,000, <a href="/news">Ashmont </a>(median rent of $164, median value of $146,000) and <a href="/news">Tolland</a> (median rent of $162, median value of $137,000).
About 250 properties were flooded when the Murrumbidgee River burst its banks in early March this year.
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Luxury unit and retiree communities emerging in Wagga Wagga as local economic grows

AMP Capital chief economist Shane Oliver predicts property prices will rise by between 4% and 5% in 2013&nbsp;spurred on by lower mortgage rates, but expects only modest returns for property investors compared with other asset classes.

Oliver says property investors can expect returns of around 6% from their investment properties over 2013, compared with returns of 2% in 2012 and a loss of 4% in 2011, but well below expected returns for both listed property (12%) and unlisted property trusts (9%).

Oliver expects the cash rate to fall what would be a record low of 2.5% next year as a result of initially subdued economic growth as “mining slows and mining slows and non-mining is slow to pick up”, with unemployment set to rise to 6%.

“Against this backdrop the RBA is likely to cut rates further to 2.5% in order to push bank lending rates down closer to past cyclical lows. However, as the impact of rate cuts starts to feed through with normal lags, growth should start to improve by year end.

“Overall we see growth around 2.5%, but this is masking a second half upswing; inflation remaining benign; and the cash rate falling to around 2.5% in the first half."

He says the main risk to the Australian economy is that the non-mining sectors –&nbsp;housing, retailing, tourism, etc&nbsp;–&nbsp;take longer than expected to pick up pace, leading to a sharper slowdown in growth beyond the 2.5% we are expecting.

“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,” he says.

But Oliver says he remains cautiously optimistic about 2013, with historical recession patterns suggesting a continuation of the global recovery for the next three years.

His outlook on the property market also appears more bullish when compared with comments he made in July, when he said Australian property prices were still overvalued by around 10% to 15%, though down from earlier AMP estimates of a 30% overvaluation.

Click to enlarge

<img alt="" data-entity-type="" data-entity-uuid="" src="/images/stories/2012/12/ampdec13thumb.gif" />

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For investors, the strongest growth is expected to come from the share market, with gains of 15% from global, Asian and emerging market shares.

“Shares are likely to provide another solid year of returns. Shares are very cheap against bonds as bond yields have fallen further and should benefit from ultra-easy monetary conditions globally and the anticipation of stronger profit growth in 2013-14," says Oliver.

“What’s more, while sentiment towards shares is not as bearish as it was in late 2011 it is still very cautious at a time when share weightings have collapsed. This suggests there is plenty of money to come into shares once confidence starts to pick up."

Investors looking for strong returns from the property sector with a lower cash outlay should consider invested in listed property trusts –&nbsp;REITs, either in Australia or globally, with Oliver forecasting returns of 12% for this sector.

“Property securities are likely to continue to benefit from investors seeking yield, however returns are likely to slow after the 20 to 30% returns of 2012."

Unlisted commercial property and infrastructure are likely to benefit from relatively attractive returns and strong investor demand given their relatively attractive yields, e.g. around 7% for commercial property, he says.

Oliver advocates investors having a balanced portfolio that includes both shares and property investments and says that historically returns have been similar for both asset classes.

At the bottom end of the risk-spectrum, Oliver says cash and hence term deposits are likely to become even less attractive as cash rates slide to 2.5%, further pulling down term deposit rates well below 4%.

&nbsp;Bonds are also likely to offer little upside either for investors.

“Historically low starting point bond yields suggest low returns from sovereign bonds, unless global growth takes a renewed leg down. Australian bonds are a bit more attractive than global bonds given higher yields.

“Corporate debt is a better bet for those after income,” he says.

To learn more about where property should sit within your wealth-creation portfolio, <a href="/news" target="_blank">watch our free webinar.</a>

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Residential property prices to rise 5% in 2013 but shares a better bet than property: Shane Oliver

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China’s sovereign wealth fund CIC has reduced its stake in industrial property developer and manager Goodman Australia by 6.9%.
Goodman Australia is part of Goodman Group, an international integrated property group that owns, develops and manages logistics and business space across continental Europe, the United Kingdom and the Asia-Pacific region.
CIC has sold $519.2 million worth of shares (116.7 million shares at $4.45 a share) to leave it with a 9.9% holding in Goodman Australia.
The shares were purchased by local and foreign institutions at 3% discount to the last trading price, reported the Australian Financial Review.
The downsizing of CIC's stake follows a day after the Goodman Australia Industrial Fund announced an equity raising of $624 million and an extension of the fund term by four years to 2019.
CIC benefited from a 66% surge in the Goodman share price over 2012, with the listed property trust outperforming Australia’s biggest A-REIT, Westfield, by a significant margin.
The money is being returned to China rather than being invested in Goodman’s unlisted funds as had been expected.
CIC is expected to retain its remaining stake for at least another 12 months due to their being a tax advantage.
CIC is expected to hold onto its remaining stake for at least another year as there is a tax advantage to doing so. Contrary to expectations, it is thought to be repatriating the cash back to Beijing rather than reinvesting the money in some of Goodman’s unlisted funds.
CIC bought a 17.8% stake in Goodman in the wake of the GFC, which rescued the group from the risk of collapse.
Goodman's current portfolio consists of 191 properties located in Sydney, Melbourne, Brisbane, Adelaide, Canberra and Perth.
Blue-chip tenants include Toll, Linfox, DHL, Coles, Coca-Cola, TNT and Brambles.
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Chinese sovereign fund cashes in on share price surge to reduce holding in Goodman Australia

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Consumer sentiment fell 4.1% in December in the week the Reserve Bank cut the cash rate to an emergency level setting of 3%, according to the latest Westpac Melbourne Institute Index of Consumer Sentiment.
This nearly reverses the 5.2% increase in the index in November with the index now 3.2% below its November 2011 level meaning there has been no overall improvement in consumer sentiment despite the cash rate falling 175 basis points over the past 13 months.
It follows the release of the NAB business survey yesterday, which found that business conditions were unchanged in November, but remain well below their long term average and at their lowest level since May 2009.
The only Westpac respondents to react positively to the rate cut were  - not surprisingly - mortgage holders, where sentiment rose 4.4%.
The survey of 1,200 Australians was conducted from December 3 to December 9 December, with the RBA cutting the cash rate on December 4 and all the major banks and their subsidiaries (apart from ANZ) announcing they would pass on 20 basis points within roughly 24 hours of the decision.
Overall, the index fell from 104.3 in November to 100.0 in December.
The December result indicates a drop in confidence about the future with a 4.3% slump in confidence about economic conditions over the next 12 months and an 8.9% slump in confidence about economic conditions over the next five years.
In the home ownership categories, those that own their homes outrights were the most pessimistic with a 10.9% slump in this sub-index while renter sentiment fell by 9.1%.
Westpac chief economist Bill Evans called the December findings of the survey "a very surprising result”.
“When we saw the 5.2% increase in the Index in November, which came despite the Reserve Bank surprising by holding rates steady, it appeared that sentiment was finally starting to respond to the accumulated series of rate cuts since November last year.
“With that in mind it was therefore reasonable to expect that the Index would respond quite positively to the rate cut the Reserve Bank delivered last week.
“Instead the Index fell back to near its October level and is now 3.2% below its November 2011 level," he said.
Evans attributed the slump in confidence to consumers being influenced by reports in the media about economic conditions.
“In this survey we also receive a measure of the major news categories which influenced respondents and how each category was assessed.
“The news items which had the largest impact were around economic conditions. An impressive 60% of respondents recalled news items on the economy.
“Next most prominent were interest rates (28.9% of respondents); budget and taxation (20.7%); international economic conditions (20.6%); inflation (13.9%); and employment (11.9%),” he says.
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Rate cuts keep mortgage holders upbeat but overall consumer sentiment slumps in December: Westpac index

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A striking three-level multi-purpose building featuring a rectangular prism rising above spectator seating has been unveiled as the new headquarters for Football NSW (FNSW) in Glenwood, western Sydney.
<img src="/images/stories/2012/12/football2.jpg">
The building, which is subject to development approval from Blacktown Council, will be built at NSW Football’s current home base, the 11-hectare Valentine Sports Park (VSP), ahead of Australia hosting the Asian Cup in 2015.
It has been designed by architectural firm HBO+EMTB, whose other projects include the refurbishment of the Westend precinct of Crown Casino Melbourne and the design of the new multi-storey headquarters for the National Rugby League (NRL) at Moore Park in Sydney.
The proposed building includes integrated spectator and playing facilities that could be used as by national teams as a training base or base camp for teams for the Asian Cup in 2015.
The tournament will be hosted by Australia from January 8 to 31 in 2015.
In addition to the new building, the project includes the upgrade of five playing surfaces, with two fields converted to international standard synthetic surfaces.
The new building is the centrepiece of the project, with the ground level comprising player and officials change rooms, the concourse level made up of spectator facilities and a learning centre and the upper level offering 1,100 square metres of administrative and related space.
Around half of this upper level space will be devoted to accommodation for FNSW’s staff, and the balance for training and tribunal uses associated with the running of the sport from junior to elite level, according to FNSW chief executive Eddie Moore
HBO+EMTB managing director Kevin Fitzgerald says the firm worked closely with FNSW to create a highly functional yet memorable structure.
“A striking rectangular prism supported by broad angular columns floats above the raked stands.
“The structure is anchored by a bold off-form triple height concrete cube which also forms the entrance to the facility
“It’s an attractive, highly efficient building that will serve FNSW for many decades to come,” he says.
An existing gymnasium building will be extended to create an additional 365 square metres and will include an international standard Futsal stadium (indoor football) with tiered seating for 400 spectators.
Both the NSW state government and the federal government have contributed funds for the project.
Valentine Sports Park has been operational since the late 1960s.
Earlier this year London based industry publication Building Design rated HBO+EMTB the world’s 38th largest architectural practice in the annual BD World Architecture Top 100 Survey.
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Design unveiled for Football NSW headquarters in western Sydney ahead of Asian Cup in 2015

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Small investors returned to the Sydney property market in "droves" in 2012, with their focus being the previously unfashionable but fast-expanding outer-western suburbs, according to Herron Todd White.
In its 2012 year-in-review wrap, valuers at Herron Todd White say their predictions about the north-west Sydney market made in February were “mostly on the money.
“The small investor returned to the market in droves in 2012, especially in the west. This helped prop up the 'old' first-home buyer’s market.
“There was a continued 'granny flat' trend in the Penrith and Blacktown council areas. Investors are increasingly looking for higher returns and the dual income stream offered by purchasing a basic three-bedroom dwelling and building a granny flat to the rear has proved most popular," says HTW in its December wrap.
Recent sales of houses with granny flats in the outer west include <a href="https://www.realestate.com.au/property-house-nsw-cranebrook-108968621" target="_blank">this five-bedroom house with a self-contained brick granny flat</a> plus 1 ½-car garage on Farmview Drive in Cranebrook near Penrith, which sold for $455,000 through Ali Khanchedar of Southlands Estate Agents Penrith.
 
<a href="https://www.realestate.com.au/property-house-nsw-cranebrook-108968621" target="_blank">
<img src="/images/stories/2012/12/farmview.jpg">
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The house last sold for just $69,000 in 1987.
Khanchedar estimates it could earn weekly rent of $700 equating to a healthy yield of 8%.
In October, Mina Khanchedar Julie Stinson also from Southlands Estate Agents Penrith, sold <a href="https://www.realestate.com.au/property-house-nsw-jamisontown-111242887" target="_blank">this four-bedroom house</a> for $393,000 on Henderson Crescent, Jamisontown, noting that it has “plumbing for potential granny flat as well as a carport”.
<a href="https://www.realestate.com.au/property-house-nsw-cranebrook-108968621" target="_blank"> </a>
<img width="470" src="/images/stories/2012/12/jamion.jpg">
The 1980s-built house last sold for $265,000 in 2001.
 
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In its July market wrap looking at <a target="_blank" href="https://www.propertyobserver.com.au/hotspots/from-western-sydney-granny-flats-to-east-brisbane-workers-cottages-15-eclectic-investment-opportunities-under-%24500000-htw/2012071855637">sub-$500,000 investment options</a>, Herron Todd White said buying a a house with a granny flat in the western suburbs was the “best investment from a rental return basis in the western suburbs”.
HTW suggested investors consider purchasing a circa 1960s to 1970s dwelling on 650- to 700-square-metre allotments and erect a granny flat on the rear of the allotment, thus creating two separate tenancies.
Typically, HTW says investors are paying somewhere between $280,000 to $330,000 for the existing dwelling and between $60,000 to $80,000 for the granny flat, plus spending an extra $25,000 on sprucing up the original dwelling.
According to HTW the dual tenancies can generate monthly rent of $600 ($350 for the main house and $250 for the granny flat), with vacancy rates at practically 0%. 
Property developer and regular Property Observer writer Jo Chivers suggested back in February that investors consider adding a granny flat to their investment property and then rent it out separately, “resulting in an increased yield and good depreciation benefits”.
Chivers points out that such endeavours are supported by the NSW government’s Affordable Rental Housing State Environmental Planning Policy (SEPP), which can fast-track the approval of granny flats in 10 days provided it meets <a target="_blank" href="https://www.planning.nsw.gov.au/plansforaction/pdf/Affordable%20Housing_Fact_Granny%20Flats.pdf">a number of regulations</a>.
Apart from a rise in investor buying properties with granny flats in the outer west, HTW notes an increase in the uptake of house-and-land packages by first-home buyers in this market following the new $15,000 state government hand out for those building or buying a new home, which began on October 1.
“Many first home buyers are paying a bit extra for a base level house-and-land package,” says HTW.
The improvement in the outer west was not matched in other parts of Sydney, with HTW describing the rest of the market as “volatile”.
“Despite strong sales in the first half of 2011, properties on the northern beaches and north shore have underperformed over 2012.
“This is especially true above the $1.5 million price point, where we have seen evidence of re-sales that have declined in value from the peak of the market in 2007. This trend was expected to continue as 2012 began, however many predicted the spring season may have brought people back into the market.
“This has not been the case however, with deep-seated uncertainty when it comes to purchasing high-end property.
“This sentiment appears to be across the board with the eastern suburbs, southern suburbs and inner-west all experiencing similar market conditions throughout 2012.
“It is fairly safe to say that the $750,000 to $1.5 million range has been steady, with no significant capital growth experienced. Properties with a price point below $750,000 have generally had minor capital growth overall, but far less than that experienced in previous years,” says HTW.
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Investors returning ‘in droves’ to outer-western Sydney, with granny flat appeal: HTW

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The struggling far north Queensland Cairns office market is expected to improve in 2013, with a brighter economic outlook for the state economy.
The tourism-dependent Cairns economy and property market took a battering in the wake of the GFC, with employment figures falling, and has not benefited from mining investment in other regional Queensland areas.
Cairns is the gateway to the Great Barrier Reef and a short drive from places like the Daintree Rainforest.
As a result the local office market, which serviced local industries in Cairns, slumped as well – the market covers offices in the town centre, a smaller selection of office buildings in Cairns North, which is that part of the town north of Upward Street, following Sheridan Street towards the airport.
According to property valuers Propell, the Cairns market did not decline further as a result of the two-tier economy in Queensland is expected to benefit from an increase in Asian tourist visits with Jetstar added further Cairns flights from September, while China Eastern commenced 3 flights a week from Shanghai to Cairns since the end of October.
A Propell survey of 100 office buildings on the market found that there is a “considerable surplus of space on the market, and in most cases rents are negotiable for a prospective tenant”.
“There are no vacancy figures available for Cairns. However currently there is some 33,000 square metres of commercial space advertised for lease, which is down from a figure of 42,000 square metres surveyed in July 2012,” says Propell.
A typical rent for a Cairns office is around $200 per square metre gross, inclusive of outgoings.
Incentives are in the region of around 30% plus.
"The outlook for office values in the Cairns region is improving, and lower interest rates and improved economic conditions will make office space here more attractive, with values likely to increase in the coming year,” according to the report prepared by Propell analysts Linda Phillips and James Spencer.
According to Propell, the office market has been steady, though there have been just two commercial office sales, compared with six in 2011 with a total sales value of $6 million.
Propell expects the number of sales to increase as the year draws to a close.
“In terms of numbers, most demand is for smaller properties of less than $1 million, easily affordable for purchase by small business, and this accounts for some seven sales a year, rising to 14 in years of high demand.
“Smaller offices are most popular, in the price bracket of $250,000 to $1 million where owner occupiers can purchase their own property, or they can be purchased as a small investment.
“In this bracket, sales average around four a year, with a median price that has been oscillating. With few recent sales it is estimated that the median price is around $400,000 and steady.
 
 
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Cairns office market still quiet but outlook brighter for 2013: Propell

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There will be no swift recovery in the outer-Melbourne residential new housing market, with a confluence of factors contributing to the unprecedented high rate of lots being returned to residential developers, according to Charter Keck Cramer.
The most recent update of the National Land Survey – a project undertaken by consultants Charter Keck Cramer (CKC) in conjunction with Research4, which tracks the performance of capital city residential land markets – <a href="https://www.propertyobserver.com.au/land/one-in-three-melbourne-residential-lots-being-returned-to-developers-by-building-firms-report/2012112958179">found that 30% of Melbourne greenfield</a> land had been returned by building companies to developers in the September quarter.
This compared with an already high average cancellation rate of 23% over the past 12 months and a cancellation rate of only 4% during the property boom from June 2009 to December 2010.
CKC director Robert Papaleo tells Property Observer there may have been a degree of artificiality in the September quarter cancellation rate, but there is likely to be a “long, slow recovery” for the Melbourne land market, with the current downturn exaggerated by the swift nature of the upswing over the 2009-10 period as prices rose by an “unsustainable” 15% to 20% ever quarter.
Papaleo says the jump in cancellations recorded in the September quarter to one in three may be partly due to the fact that listed developers – the main players in the Melbourne land market – have used incentives and other selling strategies to lift their contracts on hand and present healthier-looking numbers in their financial results.
Most developers reported annual financial results to the end of June.
Papaleo says some developers relaxed their selling terms to secure sales, including requiring in some cases that buyers pay only a $500 holding deposit, rather than the traditional 10% deposit.
“These are the lots that are being returned – they are also the smallest lots and the lowest price products,” says Papaleo.
He says such selling practices have been common in the south east Queensland and Brisbane market for at least two years, but are now being used to some degree in Melbourne.


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In addition, the $13,000 state government handout for those buying or building a new home ended on June 30, which also may have contributed to a drop in demand.
The December quarter update to the land survey – out in early 2013 – will provide further evidence if the spike in the cancellation rate was exacerbated by these factors or is a longer-term trend.
What does remain though is a current a peak residential lot “overhang” of around 5,000 lots – land held mainly by listed developers – with is likely put further pressure on pricing.
“We are in for a lot of pain, and there is no clear sign of a turnaround either," says Papaleo.
Papaleo says the current incentives being offered by residential developers – <a href="https://www.propertyobserver.com.au/land/from-%2410000-to-%2450000-residential-developers-tempt-buyers-with-incentives/2012112358053" target="_blank">ranging from $10,000 to $50,000</a> – are being dissolved into the pricing, causing a “re-benchmarking to remove the distortion”.
“This will result in the need for a reduction in the price.” he says.
The market has also not been helped by a rise in supply following plans announced in June to extend Melbourne’s urban growth boundary outwards over the next 20 years to incorporate six new fringe suburbs and provide new homes for up to 100,000 people.
There are currently 24 precinct structure plans (PSPs) in various stages of planning, according to Melbourne’s Growth Area Authority, with each PSP catering for master-planned residential communities of between 10,000 to 30,000 people.
“Supply has been forced up at the worst possible time,” says Papaleo.
According to Papaleo, a pick-up in overseas migration will have flow-on effects for the Melbourne property market and help spur a recovery in the fringe residential new housing market.
“Net overseas migration has come off the bottom of its cycle, but there is usually a 12 to 18 month lag before it feeds into the housing market,” he says.
A pick-up in overseas migration could result in a rise in demand for fringe housing from these new arrivals but could also see them acquiring established housing and those displaced residents choosing, in some cases, to buy a lifestyle property on the outskirts of the city.
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Long, slow road to recovery for Melbourne residential land market, with prices to fall further: Charter Keck Cramer

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A private Melbourne investor has paid $2.38 million to acquire an Art Deco-inspired former bank building on Oakleigh’s Eaton Mall in south-east Melbourne.
The solid brick building sold under the hammer on December 7 with a large crowd in attendance and exceeded Crabtrees selling agent Mathew Marenko’s expectation of offers in the region of $2 million.
The sale price represents an indicative return of only 3.8% – reflecting the ‘landmark’ status of the building on the trendy eating strip – earlier the year a <a target="_blank" href="https://www.propertyobserver.com.au/retail/lygon-street-premises-of-donatis-fine-meats-slices-records-with-emotion-driven-%24289-million-auction-sale/2012103057521">Lygon butcher shop premises sold for $2.89 million</a> on a yield of just 2.3% and well above pre-auction price expectations.
“This is a building of substance reflected in its original construction for a leading Australian bank and it sits on one of the best and most highly exposed corners in the Oakleigh shopping precinct," says Marenko.
Eaton Mall is open both day and night, with a mix of retailers including cafes and restaurants.
The two-level building  on a 172-square-metre site on the corner of Chester Street and the pedestrianised mall was built about 50 years ago as a banking chamber and branch premises and still bears the logo “CBC”.
It now houses Steve’s Wine Bar on the ground floor and an accounting practice on the first floor, bringing in total annual rental income for the property is $83,500 plus GST and building outgoings.
Steve’s Wine Bar has occupied the ground for the last 17 years and is on a current lease which expires at the end of June 2013 with an option for a further two years.
The restaurant pays an annual rental of $52,000 plus GST plus the building outgoings.
The rental increases are 4% each year with a review to market at the expiry of the current lease in June 2013.
The upper level tenant with its own access from Chester Street is OST Accounting, paying $31,500 per annum on similar terms.
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Private investor buys former Oakleigh bank building for $2.38 million

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For investors looking for strong rental returns in 2013, Perth and Darwin are the markets to be in, if recent performance is anything to go by.
Both cities – beneficiaries of the mining investment influence – recorded double-digit rental growth over the year to September, while rents hardly moved in the other capital cities and went backwards in Hobart and Adelaide, according to the latest Market Facts update from the Real Estate Institute of Australia (REIA).
The top-performing rental market over the year to September has been Perth three-bedroom houses, with rents rising 15.4% annually to a median of $450 per week.
This growth was almost matched by Perth two-bedroom units, where rents increased by 14.9% to $425 per week.
Not far behind was Darwin’s two-bedroom unit market, with rents rising 13.5% to a median of $463 per week, making the Northern Territory capital city the most expensive unit market in Australia – just ahead of Sydney, where two-bedroom units rent for $460 per week.
Darwin also registered near double-digit growth (9.5%) in three-bedroom house rents to a median $597 per week – the most expensive capital city to rent a three-bedroom house, far ahead of second-placed Canberra ($460).
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/12/reiadec12.gif"><img src="/images/stories/2012/12/reiadec12thumb.gif"></a>
Source: REIA
Weekly rents for three bedroom Sydney houses have risen 5% over the past year while Sydney unit rents are up a modest 2.2%.
Melbourne rents hardly moved, while Brisbane registered 2.9% annual gains for both houses and units.
In last week’s Property Observer webinar looking at investor opportunities in 2013, hotspotting.com.au’s Terry Ryder tipped Perth and Darwin to be the standout capital city markets next year having led the recovery in 2012.
Ryder is tipping annual capital growth in excess of 10% in Perth and Darwin in 2013.
He notes that apart from strong house price, Darwin has recorded an “outstanding” 28% rise in building approvals for the year to September (compared with a 9% national decline)
“Every other state and territory has shown a decline in building approvals,” he says.
In addition, Darwin has recorded 17% growth in loans to owner-occupiers (second best nationally) and 22% growth in loans to property investors (the highest growth nationally).
Darwin, Ryder says, is being boosted by its evolution as a liquefied natural gas (LNG) hub with the $34 billion Inpex gas project now under construction as well as being a military hub with a growing influx of US military personnel.
Ryder suggests investors focus on Palmerston City, which is the satellite city to the south of Darwin and the most affordable market relative to the very unaffordable main Darwin market.
On Perth, Ryder says the market is finally showing signs of strong growth having last peaked back in 2007 and has been going backwards since then.
“There has been huge rental growth, but not much price growth, which is just starting to come through now.
“2013 is the year of price growth for Perth,” he says, with the city underpinned by having the best economic indicators in Australia.
Ryder hotspot picks in Perth are the Midland precinct to the north, Murdoch to the south and Rockingham – a very affordable coastal enclave to the south.
For more on Terry Ryder’s investment outlook for 2013 and where to consider investing view the full webinar: <a href="/news">Regions versus capital cities - where to invest in 2013?</a>
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Perth and Darwin register double-digit annual rental growth defying flat market: REIA 

<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.

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[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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Larry Schlesinger

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