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Beneath the smoke-stacks and giant mining pits, a Mount Isa retail complex in the centre of the mining town featuring a Blockbuster, Subway and Pizza Hut is expected to fetch around $3 million when it goes to auction on December 12.
A sale at this price would represent a yield to investors of around 10%
Mount Isa is a remote north-west investment hotspot with rents having risen 22% over the past two years driven by demand for temporary accommodation from mining employees, according to a <a target="_blank" href="https://www.propertyobserver.com.au/queensland/rents-and-house-prices-rise-in-mount-isa-due-to-demand-from-mining-employees/2012110557629">recent report by PRDnationwide.</a>
There are five properties up for sale in one line on a site measuring 2,250 square metres at 17-19 Simpson Street in the centre of Mount Isa.
The other two premises are tenanted by lunch and juice bar Something Zesty and four-wheel drive accessory business, TJM.
The retail complex is being marketed by Raoul Holderhead and Pat Kelly of Burgess Rawson alongside Nellie Smithurst from Jays Real Estate and will be auctioned at Crown Casino Melbourne on December 12.
Holderhead tells Property Observer likely buyers include Melbourne investors, local Mount Isa investors and far North Queensland investors.
All five properties are leased for five years with fixed 3% annual rent increases plus renewal options.
Combined the five leases bring in annual net rent of $328,000.
Mount Isa is around 900 kilometres inland from Townsville and 1,800 north west of Brisbane. The main mine operator and the town’s biggest employer is Xstrata which operates an underground copper mine and underground zinc-lead-silver mine – among the biggest underground mines in the world.
The population of Mount Isa is 33,000.
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lschlesinger-FZcF9M3vE6

Mount Isa retail complex expected to sell on 10% yield at auction

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Confession time: I'm a big fan of Jessica Irvine.
I've read her stuff for years in the SMH and Fairfax and have almost always found myself nodding furiously in agreement. I love her brand of accessible, econo-political insight. It's rare for an economist to effectively deconstruct big issues for the masses, and rarer still to offer common sense solutions. That she regularly does both, is a real testament to her talent and value as a writer.
Recently she moved to News Ltd and now commands a much larger audience. Her column is syndicated out through the Sunday dailies such as the Sunday Herald Sun, The Sunday Telegraph, and Sunday Brisbane Courier Mail.
It's a pity then, that so many people would have read <a target="_blank" href="https://www.news.com.au/national/brokers-advice-costly-for-buyers/story-fndo4bst-1226523336091" title="Jessica Irvine Mortgage Brokers">her howler of a column today. </a>It’s a real shocker.
Her attack on mortgage brokers might make for a nice headline, but it’s riddled with factual inaccuracies and omissions. It’s not even a real story – everyone knows that brokers are paid commissions by the lenders and that this is how it’s (mostly) kept as a free service to consumers. Borrowers themselves use brokers for convenience, product knowledge, and access to many lenders so they can more easily get a better rate and save on interest. Several iconic household brands such as <a target="_blank" href="https://www.aussie.com.au/" title="Aussie">Aussie</a> and <a target="_blank" href="https://www.mortgagechoice.com.au/" title="Mortgage Choice">Mortgage Choice</a> have been built on this premise. It’s not news.
But most damning of all, is her total failure to understand the crucial role brokers play in keeping some semblance of competition in our bank-dominated mortgage market. More on this in a moment.
First, the errors. Early in her piece she claims that:
"Brokers are failing to adequately disclose the commissions they receive from lenders when they sign up borrowers for a loan.”
Really? What’s the basis for this assertion? Because I can’t find one in her column. It also ignores the reality of <a target="_blank" href="https://www.comlaw.gov.au/Details/C2012C00083" title="NCCP">the government’s recent efforts to legislate against this concern (among others).</a> In 2009, they introduced the National Consumer Credit Protection (NCCP) act, and substantially lifted requirements for broker disclosure on commissions. If, as she claims, brokers are not disclosing, then the bigger story would be the failure of government policy. Strange then, that we do not hear about this.
In fact, it’s impossible for any authorised credit representative (broker) not to disclose exactly how much they’re getting paid (unless they’re deliberately breaking the law). The main document for this is the “Credit Proposal Disclosure” form, but there’s also the “Credit Guide” and the commissions are disclosed again the lender’s loan offer contract.
That’s lot of disclosure in any one’s book.
Jessica makes the point that brokers aren’t required to disclose the commission rates of every-single-lender, only a short list, so there is potential for brokers to recommend lenders that pay a higher commission. Technically this is true. And no doubt, some brokers (a very, very small minority I would say) might abuse this. However, the law again requires that brokers offer borrowers a choice of lenders and rates, and the practicality of the process is that most brokers have software that compares hundreds of mortgage products right in front of the client.
 
<hr class="system-pagebreak">
 
Now, her omissions.
Jessica proclaims the laudable information and convenience of online comparison sites such as<a target="_blank" href="https://www.iselect.com.au/" title="iSelect"> iSelect</a> and <a target="_blank" href="https://www.ratecity.com.au/" title="Rate City">Rate City</a>, in stark contrast to mortgage brokers who are apparently compromised by commissions and “conflict of interest”. It’s true, these sites have many great qualities and pose a real threat to brokers –<a target="_blank" href="https://www.theadviser.com.au/breaking-news/7957-online-labelled-the-next-big-threat" title="Online threat to mortgage brokers">something I’ve been banging on about for a while now</a>. But she’s left out a crucial detail here: these sites also receive income from banks and lenders for introductions to potential borrowers. Here are the terms from the RateCity site:
“We make money by generating qualified leads for financial institutions. A lead is generated when our users visit a financial institution's website via a link from the RateCity website. If you visit a bank's website via RateCity, we may get paid either for that click itself, or more likely, for you "doing something" with the institution - for example, opening an account, or completing an application form on the bank's website.”
How is this different from what mortgage brokers do? In the case of iSelect, they're actually an online broker!
Here’s a quote from their site:
“iSelect receives payment of commissions from participating lenders (via our aggregation partner, Australian Finance Group Limited, ABN 86 148 217 181 ('AFG') for mortgage products sold via the services referred to on this website. You are not required to pay iSelect for the use of the website.”
This is not to knock either organisation, simply to highlight the sloppy journalism in Jessica’s article. These are very serious omissions that in my view, serve her readers poorly. One can only hope they were the result of a zealous sub-editor, not lazy research.
Finally, brokers are not just commission-earning machines.
Mortgage brokers have been called many things over the years, but <a target="_blank" href="https://www.news.com.au/opinion/borrowers-beware-you-must-shop-around-for-the-best-value-home-loan/story-fnfhswl8-1226523426843" title="Washing machine mortgage brokers">Jessica’s comparison to “washing machine sales people” is a new low.</a> I know many brokers, who, with 30 years plus banking experience, a Certificate IV, a Diploma of Mortgage Broking, and hundreds of very satisfied clients would be insulted at the analogy, but this is beside the point.
The real point is that the comparison is erroneous. In trying to illustrate that a mortgage is a commodity item sold just like a washing machine, she has seriously erred. For a start, a mortgage is a much more complex product, with deep financial and emotional implications for the consumer. This is a comparison only an economist could love. But most importantly, her analysis ignores the fundamental issue of mortgage market dynamics.
In the fragile eco-system that is the Australian mortgage market, brokers play a vital role in keeping the flame of competition alive. Yes, they originate nearly half of all mortgages, but for non-bank lenders the figure would be closer to 95%. They are the main (sometimes only) distribution channel for non-bank lenders and regional banks,  who over the last twenty years have helped cut the interest margins big banks charge their customers from 4% to well under 2%. This competition from non-banks lenders has been an immeasurable win for consumers, but it simply would not have been possible without a mortgage broker distribution channel.
In fact, brokers were so good at delivering consumers a better deal from lenders outside the big four banks that by 2007 non-bank lender had 20 per cent of the mortgage market. Thanks to the GFC, and <a target="_blank" href="https://www.openforum.com.au/content/mortgage-exit-fees-why-abolishing-them-will-hurt-industry-kill-competition-and-enrage-consum" title="Mortgage exit fees">some cack-handed government policy</a>, just five short years later the big four banks now once again control around 90 per cent market share. Is this good for consumers?
Some journalists complain when the banks jack up their rates. But banks are only able to do this because competition has diminished. What would happen if commissions, and therefore, brokers disappeared entirely? Would banks pass on the cost saving to consumers in the form of lower rates? We know the answer. Brokers are a bulwark for consumers against complete bank dominance. If, or when, broker market share declines as a result of rising volumes to bank proprietary online channels, it's likely we'll see their rate margins return to the higher levels of the bad old days.
Like any industry, mortgage brokers are not perfect. And yes there are some genuine issues with commission-based incentives; Jessica rightly highlights bonus volumes as an area of concern. However, the industry has come a long way, is now fully-regulated with a high degree of compliance, and continues to serve the interest of consumers well. One day the online channel may take over and brokers might become extinct. But in the meantime, busy, stressed Aussies will continue to enjoy the convenience, choice, and interest savings that mortgage brokers provide, regardless of the twaddle good journalists even sometimes publish.
Darren Moffatt is owner and director of the mortgage broker business <a target="_blank" href="https://www.seniorsfirst.com.au/" title="Seniors First">Seniors First</a>. He is also CEO of <a href="https://www.housenet.com.au" target="_blank">Housenet.com.au </a>
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Mortgage brokers are not washing machine salesmen: Darren Moffatt

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The former ANZ Banking Group deputy chief executive Bob Edgar has called for tougher laws governing the non-bank lending sector following the collapse of Banksia and Provident Capital.
Edgar said it was “surely no accident” that Banksia chose to include the word “bank” in its name.
“Anything that has the word ‘bank’ in it or uses the word ‘bank’ in a prominent fashion is effectively purporting something about itself,” said Edgar in an interview with the Australian Financial Review.
Edgar says it is the responsibility of prudential regulator APRA to get the laws changed to prevent Banksia using such a name.
Banksia collapsed in October owing 3,000 small investors a combined $650 million while Provident Capital collapsed in July owing investors over $100 million.
Both Banksia and Provident Capital’s debenture funds come with no government guarantees.
ASIC announced on October 31 the setting up of an internal taskforce to look at the failure of Banksia and regulation of the wider Australian unlisted debenture sector.
Edgar, who is now the chairman of Centro Retail Australia after a 25 year career at ANZ, also had a go at federal treasurer Wayne Swan for urging borrowers to seek an alternative to their bank following interest rate decisions.
“The political process has to accept some of the blame that it has encouraged people to believe they are not getting a fair and reasonable risk- adjusted return from the banking sector and they should look elsewhere," he said.
Edgar also called on the major banks to take a “higher profile on corporate matters through leadership and much more engagement with politicians”.
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Rules governing non-banks need to be tightened: Bob Edgar

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The popularity of home renovation reality shows like The Block and The Renovators has encouraged more Australians to undertake their own renovations putting them at risk of deadly diseases caused by exposure to asbestos fibres, according to Asbestos Diseases Foundation of Australia (ADFA).
The ADFA is warning of a third wave of victims and their families as part of  Asbestos Awareness Week, which is running with the slogan:  “Don’t play Renovation Roulette!”
The first wave was those working in mining and manufacturing exposed to raw fibres followed by workers who used asbestos products in the workplace (the second wave).
According to the ADFA, the case of women suffering from mesothelioma (an incurable asbestos-related cancer), are rising with the ADFA expecting these to spike over the next 40 years unless “Australians start taking seriously the dangers of asbestos when renovating or maintaining their homes”.
“With DIY renovations increasing partly due to the popularity of home renovation and lifestyle television programs and magazines, those thinking about renovating or home maintenance must visit asbestosawareness.com.au to learn where asbestos can be found in the home and how best to manage it,” says professor Nico van Zandwijk, director of ADFA.
The ADFA believes reality renovation shows have a moral obligation to include "substantial warnings” about asbestos for viewers and claims they have let viewers down by not having warnings.
Viewers of hit series The Block were warned by presenter Scott Cam of the dangers of asbestos in <a target="_blank" href="https://homes.ninemsn.com.au/theblock/updates/8457681/scott-cam-asbestos-and-the-block">this video</a>.
“Asbestos is an absolute killer and if you're thinking of renovating, make sure you get your place checked out by professionals," Cam said "If you do find something, make sure those professionals remove it."
Channel 10’s <a target="_blank" href="https://therenovatorstv.com.au/start-renovating.htm">The Renovators</a> did not appear to have any prominent asbestos warnings on its website.
The ADFA’s asbestos concerns have been echoed by Archicentre, the building design, inspection and advice service of The Australian Institute of Architects, which is also warning of the deadly dangers of lead paint
David Hallett, from Archicentre said the real risk of exposure to asbestos fibres and dust occurs with the demolition, drilling or cutting of products containing asbestos and in the case of lead paint the burning, sanding or stripping of paint can produce dangerous toxins.
"Tens of thousands of renovations take place every year often with families living in the home during the renovation placing people at danger unless the renovation is carried out safely,” says Hallett.
"It is vital for everyone to understand that once you disturb asbestos there are extreme health risks involved for home owners and their families in relation to the diseases which can be caused by asbestos fibres."
"Anyone undertaking renovations and living in their home at the same time with their children needs to be well informed about the dangers and extremely careful about how asbestos and lead paint is managed by contractors who may be carrying out the renovation works."
Inhalation of asbestos fibres can cause serious illnessesincluding malignant lung cancer, mesothelioma, and asbestosis
Most homes built in Australian between 1945 and 1987 would have been constructed using asbestos as insulation in the roof.
A complete ban on asbestos-containing material in Australia was introduced in 1991.
According to the ADFA, if asbestos is left undisturbed, it generally does not pose a health risk.
However a study of mesothelioma cases carried out by Western Australian Mesothelioma Register (from 1960 to 2008) showed that over a four year period (2005 and 2008), 8.4% of all men and 35.7% of all women diagnosed with mesothelioma were home renovators with renovations and maintenance being the main cause of the disease in women.
The study also noted that the most prevalent non-occupational exposure of people occurred during simple home renovations, with mesothelioma patients reporting having drilled or sanded asbestos cement walls, lifted linoleum floors and used asbestos cement sheeting to build sheds and fences, laundries and simple extensions, often with exposure limited to a single activity.
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Popularity of home renovation reality television shows creating deadly asbestos health risk: ADFA

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After a “period of protracted weakness” a strong recovery in demand for residential land on the fringes of Sydney and Perth is being tipped by forecasters at BIS Shrapnel.
To meet this rising demand, BIS Shrapnel expects annual residential lot production in outer Sydney to more than double over the next five years from an average of 2,809 lots produced annually from 2007 to 2012 to 5,870 lots annually from 2012 to 2017.
Last week developer Devine announced its first return to the Sydney market in nine years, with plans for an apartment development in Turramurra.
A strong recovery is also anticipated for the outskirts of Perth, with residential lot production expected to rise from an average of 7,633 lots produced annually from 2007 to 2012 to 11,280 lots produced annually between 2012 and 2017.
A strong recovery is also tipped for the Gold Coast with smaller improvements on the Sunshine Coast and outer Brisbane.
Recent and Forecast Lot Production
<table border="1" cellspacing="0" cellpadding="0" width="370"><tbody>
<tr>
<td valign="top" width="139" nowrap>
City/region
</td>
<td valign="top" width="230" colspan="2" nowrap>
Average lots produced annually
</td>
</tr>
<tr>
<td valign="top" width="139" nowrap></td>
<td valign="top" width="125" nowrap>
2007-2012
</td>
<td valign="top" width="105" nowrap>
2012-2017  forecast
</td>
</tr>
<tr>
<td valign="top" width="139" nowrap>
Outer Sydney
</td>
<td valign="top" width="125" nowrap>
2,809
</td>
<td valign="top" width="105" nowrap>
5,870
</td>
</tr>
<tr>
<td valign="top" width="139" nowrap>
Outer Melbourne
</td>
<td valign="top" width="125" nowrap>
16,917
</td>
<td valign="top" width="105" nowrap>
12,340
</td>
</tr>
<tr>
<td valign="top" width="139" nowrap>
Outer Brisbane
</td>
<td valign="top" width="125" nowrap>
5,372
</td>
<td valign="top" width="105" nowrap>
5,560
</td>
</tr>
<tr>
<td valign="top" width="139" nowrap>
Gold Coast
</td>
<td valign="top" width="125" nowrap>
1,494
</td>
<td valign="top" width="105" nowrap>
2,280
</td>
</tr>
<tr>
<td valign="top" width="139" nowrap>
Sunshine Coast
</td>
<td valign="top" width="125" nowrap>
1,652
</td>
<td valign="top" width="105" nowrap>
1,820
</td>
</tr>
<tr>
<td valign="top" width="139" nowrap>
Outer Adelaide
</td>
<td valign="top" width="125" nowrap>
2,962
</td>
<td valign="top" width="105" nowrap>
2,320
</td>
</tr>
<tr>
<td valign="top" width="139" nowrap>
Outer Perth  (includes Mandurah)
</td>
<td valign="top" width="125" nowrap>
7,633
</td>
<td valign="top" width="105" nowrap>
11,280
</td>
</tr>
</tbody></table>
 Source: BIS Shrapnel
“The recent protracted weakness in the Sydney, Perth and Brisbane markets – and to a lesser extent the Gold Coast and Sunshine Coast markets – has created the conditions for an upturn,” says report series author and senior manager Angie Zigomanis.
“Low new dwelling construction has resulted in a rising underlying dwelling deficiency, while affordability has improved considerably due to the combination of the weakness in house and land prices and lower interest rates.”
In its third-quarter update released earlier this month, residential developer Australand notes that conditions remaining challenging in south-east Queensland but says activity is more positive in Sydney and Perth with it making good progress on sales targets.
While Australand says the market softened in the third quarter resulting in weaker sales “particularly for land in Melbourne’s growth corridors” it says the Sydney market continues to display “resilience supported by an ongoing structural undersupply of median-priced product”. 
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Strong recovery in demand for residential land anticipated in Sydney and Perth fringes: BIS Shrapnel

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The production of residential lots on the outskirts of Melbourne is forecast to fall 27% annually over the next few years as demand remains subdued, according to a new report by BIS Shrapnel.
The research firm is forecasting annual lot production to fall from an average of 16,917 lots annually from 2007 to 2012 to just 12,340 between 2012 and 2017.
A 22% decline is anticipated for outer Adelaide, with average lot production of 2,962 lots between 2007 and 2012 falling to 2,320 over the next five years.
Recent and Forecast Lot Production
<table width="370" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td valign="top" nowrap width="139">
City/region
</td>
<td valign="top" colspan="2" nowrap width="230">
Average lots produced annually
</td>
</tr>
<tr>
<td valign="top" nowrap width="139"></td>
<td valign="top" nowrap width="125">
2007-2012
</td>
<td valign="top" nowrap width="105">
2012-2017 forecast
</td>
</tr>
<tr>
<td valign="top" nowrap width="139">
Outer Sydney
</td>
<td valign="top" nowrap width="125">
2,809
</td>
<td valign="top" nowrap width="105">
5,870
</td>
</tr>
<tr>
<td valign="top" nowrap width="139">
Outer Melbourne
</td>
<td valign="top" nowrap width="125">
16,917
</td>
<td valign="top" nowrap width="105">
12,340
</td>
</tr>
<tr>
<td valign="top" nowrap width="139">
Outer Brisbane
</td>
<td valign="top" nowrap width="125">
5,372
</td>
<td valign="top" nowrap width="105">
5,560
</td>
</tr>
<tr>
<td valign="top" nowrap width="139">
Gold Coast
</td>
<td valign="top" nowrap width="125">
1,494
</td>
<td valign="top" nowrap width="105">
2,280
</td>
</tr>
<tr>
<td valign="top" nowrap width="139">
Sunshine Coast
</td>
<td valign="top" nowrap width="125">
1,652
</td>
<td valign="top" nowrap width="105">
1,820
</td>
</tr>
<tr>
<td valign="top" nowrap width="139">
Outer Adelaide
</td>
<td valign="top" nowrap width="125">
2,962
</td>
<td valign="top" nowrap width="105">
2,320
</td>
</tr>
<tr>
<td valign="top" nowrap width="139">
Outer Perth  (includes Mandurah)
</td>
<td valign="top" nowrap width="125">
7,633
</td>
<td valign="top" nowrap width="105">
11,280
</td>
</tr>
</tbody></table>
 Source: BIS Shrapnel
The forecast comes as Melbourne house-and-land developers continue to offer incentives in an effort to encourage buyers, despite <a target="_blank" href="https://www.propertyobserver.com.au/land/price-melbourne-land-at-its-true-value-and-buyers-will-come-australand/2012102357384">warnings from the likes of Australand's Rob Pradolin </a>that these only distort the market and can create financing problems for buyers.
“These two markets experienced the strongest residential rebound after the global financial crisis (GFC), and the consequent combination of high levels of land production and solid land price growth has meant that there is little pressure on the demand for new houses and land,” says report series author and senior manager Angie Zigomanis.
Victorian residential developers have also lost the added sweetener of the $13,000 new home bonus, which was available to first-home buyers and ended in June. According to BIS Shrapnel, the bonus has pulled forward demand.
In its annual report, developer Peet– which has 19% of its land bank in Victoria – notes that the Victorian residential market “weakened sharply” during the year, with the result that it has “restrained capital expenditure on some key Victorian projects”.
Peet has deferred development in two large, company-owned projects in Victoria until there are signs of improvement and also notes that Victorian buyers have had difficulty securing finance with the market having reached “the top of its cycle”.
“The declines in lot production in the Melbourne and Adelaide markets reflect activity falling from unsustainable record levels, while the weakness in the other cities were the result of excess supply, weak underlying demand, and constrained affordability after land prices had peaked in earlier years,” says Zigomanis.
“These issues are now starting to wash through, with the recent declines in interest rates expected to be the trigger for a pick-up in demand into 2013.
“Conversely, the factors that drove the downturns in the other cities now exist in Melbourne and Adelaide and it will be their turn for demand for land to experience a period of weakness,” he says.
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Demand for residential land to remain subdued on Melbourne and Adelaide fringes till 2017: BIS Shrapnel

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There are occasion when buying an apartment without a car parking space would make good sense, says David Poppleton, head of residential projects in NSW for Savills.
Poppleton says it’s very much a “case by case” issue depending on where the apartment is located relative to public transport and the city and the type of alternative property the investor is considering.
"I'd rather by an apartment (one bed or studio) in Potts Point, Surry Hills, Ultimo, etc, without a car than the same  apartment with a car space anywhere outside a five-kilometre radius of the city," he says.
He tells Property Observer it is perhaps “misguided or even slightly negligent to suggest” that investors dismiss the right property without a car space for one that does have a car space if it does not stack up as a better investment.
His comments follow property investment advisor <a href="https://www.propertyobserver.com.au/landlords/dont-invest-in-apartments-without-a-car-park-monique-sasson-wakelin/2012112258047" target="_blank">Monique Sasson Wakelin</a> writing that a car space is “a must” and that investors should not handicap themselves by buying a property “restricting the pool of potential tenants and future owners”.
Sasson Wakelin based her comments on census 2011 data, which shows that more than four-fifth (81%) of households own one or more cars.
Poppleton agrees that it would be “flawed advice at best” if an agent suggested buying a two-bedroom apartment away from transport and five kilometres from the city that did not have a car space.
But he says suggesting that investors avoid all apartments without car spaces “ignores the statistics, affordability, and the government’s growing obsession to reduce the number of cars in every residential project in prime areas”.
Poppleton also points to other statistics unearthed by Wakelin that show that in the <a target="_blank" href="/news">Sydney </a>CBD and inner suburb of <a target="_blank" href="/news">Haymarket  </a>67% and 62% respectively of apartment households do not own cars, which suggest that there are locations where a car space would not be  priority.
He says if it came to the choice of buying a studio in the Sydney CBD versus a period unit in a prime urban area of Brisbane, he would put his money on the Sydney studio being a better investment.
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Investing in an apartment without a car park can make good sense: Savills’ David Poppleton

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All 26 economists surveyed by Bloomberg expect the RBA to cut the cash rate further by mid-2013, with sentiment shifting somewhat towards a RBA cash rate cut on December 4.
In the latest poll carried out on Friday, 15 out 26 economists are tipping the cash rate to fall to 3% on December 4.
<a href="/news">In last week’s poll </a>12 out of 25 economists tipped the RBA to cut the cash rate.
The major banks have not shifted their positions, with the Commonwealth Bank and NAB tipping the RBA to hold firm at 3.25% and ANZ and Westpac expecting one more rate cut before Christmas.
ANZ was the only one of the major banks to correctly tip the RBA to leave the cash rate on hold on Melbourne Cup Day.
If the RBA does decide to leave the cash rate on hold, the next meeting is in February – the RBA does not meet in January.
Data out this week includes October new home sales figures from HIA and third-quarter construction figures, which may give clues to any recovery in the new residential building sector, and RBA private sector credit data, including data on mortgage lending.
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Majority of economists tipping a December RBA cash rate cut, but all say there's one more cut left: Bloomberg

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ASX-listed residential developer Devine will return to the NSW market after an absence of nine years with plans for an apartment development in Turramurra.
At Devine’s AGM on Friday, managing director and CEO David Keir announced Devine had secured an option over a 5,900 square metre site at Turramurra on Sydney’s upper north shore, which has been earmarked for an 86-apartment development.

In his address, Keir also said “lead indicators present a strong case that the Australian residential housing market is and will continue to recover over the next 12 months".
Keir said lower interest rates had contributed to improved housing affordability while other positive factors pointing towards a recovery include “low vacancy rates in most capital cities, steady unemployment figures, rising rental costs, increased immigration levels and wage growth”.
The Sydney development is expected to commence in about 12 months’ time, pending achievement of appropriate planning approvals.
A spokesperson for Devine tells Property Observer, the last time Devine had a presence in NSW was under the Devine Pioneer Homes brand, developing house and land packages.
"The operation was shut down due to the lack of available developable land at the time. It was an industry-wide problem with the NSW government restricting the release of land.. after we closed it down Devine started focusing on the Queensland market and then we it wanted to expand again we went to Victoria because it was a much better environment at the time."
“It is the first time in nine years that Devine will again have operations in Australia’s most populated State,” Keir told shareholders.
In his address, Devine chairman Peter Dransfield said one of the company’s growth priorities for the year ahead would be to re-entering the Sydney market.
Keir also announced a number of milestones including the settlement of 425 apartments at Devine’s signature Hamilton Harbour project and deliver of the first two residential towers at the same project by Devine Constructions, ahead of time and under budget.
Devine has also began marketing three master planned communities including in the Queensland mining town of Gladstone, Queensland; Bacchus Marsh in Victoria and Evanston Gardens in Adelaide, which will deliver over 5,000 new residential allotments over the years ahead.
“Strategically, we will continue to focus on diversifying our operations by entering new markets and developing new products while leveraging our strengths in core markets to grow market share,” said Keir.
He also announced that Devine had sold a Brisbane CBD development site at 111 Margaret Street “above the current book value of the asset” with the price not disclosed.
Devine recorded an underlying operating profit after tax and before impairments of $11.1 million for the year to June 30.
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Devine to develop first NSW project for nearly a decade with brighter residential outlook

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Residential developers continue to offer incentives and rebates to encourage buyers of house and land packages and off-the-plan apartments.
These include offers from developers to pay mortgage repayments for a period of time, offers to pay the 5% builder deposit, discounts off the retail price of packages and cash rebates.
Developers increasing reliance on these incentives comes as the outlook for new detached housing remains weak with the latest building approval figures – forward indicators from the ABS show that approvals for detached houses rose just 1.2% from August to September and are down 1.8% year-on-year.
In contrast, apartment approvals rose 17.9% over September to be up 41.6% year-on-year.
Prospective buyers of house and land packages and off-the-plan apartments that come with rebates and incentives could face the possibility of having to raise additional financing due to lenders discounting the rebates from their valuations.
Here’s what’s currently being offered by developers across the country
$24,000 +from Devine
Devine is offering to <a href="https://www.devinemortgagebreak.com.au/" target="_blank">cover mortgage repayments</a> for up to 12 months for buyers of some of its home and land packages. The offer expires on November 30. The fine print says the repayments must be the minimum required repayments on a 30-year loan and interest only during construction. Devine's contribution will not continue for longer than 6 months after house settlement or 12 months after land settlement, whichever occurs first.  Repayments on a $360,000 loan with a 10% deposit over a 30 year term equates to monthly repayments of around $2,000. 
Up to $25,000 from Carlisle Homes at Aston
Carlisle Homes are offering house and land buyers a $15,000 discount for selected house and land packages at its <a href="https://www.carlislehomes.com.au/files/specialOffers/Aston_32k_Flyer.pdf" target="_blank">Aston development in Craigieburn</a> on Melbourne’s northern fringe. There is an extra $10,000 offered for buyers who purchase the Seville 29 or Pavillion 44 on display.
Up to $25,000 from Villawood
Villawood will pay the <a href="https://www.villawoodproperties.com/" target="_blank">5% builders deposit on new homes</a> in communities in Geelong and Melbourne up to a value of $25,000. The offer is for a limited time, but no expiration date is given.
 
Up to $50,000 off retail price from Porter Davis
As part of its <a href="https://www.porterdavis.com.au/content/pdfs/SpringStimulus_lifestyle.pdf" target="_blank">spring stimulus campaign</a>, Porter Davis is offering a $32,000 discount off the retail price of selected single-storey lifestyle homes and $50,000 off selected double-storey lifestyle homes.
 
From around $13,000 - Meriton to pay stamp duty on apartments
<a href="https://www.meriton.com.au/our-services/finance-services/stamp-duty-concessions-and-grants/" target="_blank">Apartment builder Meriton</a> is offering to pay the stamp duty on all apartments less any applicable government grants. The offer excludes apartments at Oceanvale (Warriewood) and Cascada (Sylvania). Prices for Meriton apartments start from around $400,000 which equates to stamp duty of $13,500 in NSW and $16,300 in Queensland
Double deposit up to $10,000 from Devine
Devine is offering to <a href="https://www.devine.com.au/contact-us.aspx?double=true" target="_blank">double a buyer’s deposit</a> on house and land packages up to a maximum of $10,000.The purchaser will still need to provide funds or obtain finance for the full balance purchase price in order to settle. 
Up to $10,000 in rebates from Satterley
<a href="https://www.satterley.com.au/www.satterley.com.au/go/special-rebate-offer/special-rebate-offer" target="_blank">WA developer Satterley</a> is offering rebates – cash and stamp duty – on house and land packages in a selection of its residential communities from $5,000 to $10,000.
If you are offering an incentive to buyers, send an email to <a href="mailto:news@propertyobserver.com.au">news@propertyobserver.com.au</a> and we will include it on this list.
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From $10,000 to $50,000: Residential developers tempt buyers with incentives

<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.

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Joel Robinson

The Eveleigh brings house-like apartments to Broadbeach

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

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

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

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

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

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

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