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Murarrie, a semi-industrial suburb on the southern banks of the Brisbane River about eight kilometres east of the city, has been Brisbane’s best-performing detached suburban housing market over the past year, according to the latest figures compiled by the Real Estate Institute of Queensland (REIQ).
House prices in Murarrie, where News Limited prints the Courier Mail and Sunday Mail, have risen 9.6% over the year to September to a median of $509,500.
In comparison, Brisbane house prices, while gaining 1.6% over the September quarter rising to $508,000 are still down 1.9% year-on-year to a median just below $510,000.
According to murarrie.com, the suburb has until recently consisted of light industrial development, but its proximity to the city has made it more attractive to office and residential developments.
The suburb is serviced by buses and trains into the city, while it takes about 15 minutes by car to get to the city.
The stock of houses is a mix of post-war weatherboard and chamferboard cottages, tin roof houses and new estates being "typically low set and high set brick and tile homes".
According to a Belle Property suburb profile, Murarrie has had an "interesting past", playing host to a variety of industries over the years including sugar cane, cotton, meatworks and boatbuilding.
As a residential suburb it is situated close to the GatewayMotorway and the main thoroughfares of Wynnum and Creek Roads with Cannon Hill and Carindale shopping centres close by and local shops on Queensport Road.
The suburb is popular with families and offers "stunning views of the Gateway Bridge and the Brisbane River" as well as the large Murarrie Recreation Area with bike tracks, barbecue areas, skate parks and canoe ramps.
Recent sales have included this 1940s-built three-bedroom weatherboard home on a 1,200-square-metre block (pictured bel0w) sold by the Queensland Public Trustee for $480,000, according to RP Data records.
<img src="/images/stories/2012/11/billungah.jpg">
 
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Current listings include this modern three-bedroom Queenslander on Queensport Road (pictured below), which last sold for $379,000 in 2006 and is listed through Glenn Bool of Re/Max-Morningside.
<img src="/images/stories/2012/11/queensport.jpg">
An older-style propery up for sale is this "cavity" brick home with two bedrooms, high ceilings and large backyard (pictured below), which is listed at $349,000. RP Data records show it last sold for $92,000 in 1994 and for $44,500 in 1985.
<img src="/images/stories/2012/11/railway.jpg">
Aspley, about 13 kilometres north of the city, is the next best performing suburb over the past 12 months with median house prices up 8.7% to $500,000
The best-performing inner-city detached housing markets are Taringa, a few kilometres south-west of the city, and West End, just outside the CBD, where prices are up 8.2% and 7.5% respectively.
<table border="1" cellspacing="0" cellpadding="0" width="411"><tbody>
<tr>
<td width="187" valign="top">
Region
</td>
<td width="95" valign="top">
Median Sale 12mths Sep12
</td>
<td width="66" valign="top">
1yr change
</td>
<td width="64" valign="top">
5yr change
</td>
</tr>
<tr>
<td width="187" nowrap valign="top">
<a href="/news">MURARRIE</a>
</td>
<td width="95" nowrap valign="top">
$509,500
</td>
<td width="66" nowrap valign="top">
9.6%
</td>
<td width="64" nowrap valign="top">
22.8%
</td>
</tr>
<tr>
<td width="187" nowrap valign="top">
<a href="/news">ASPLEY</a>
</td>
<td width="95" nowrap valign="top">
$500,000
</td>
<td width="66" nowrap valign="top">
8.7%
</td>
<td width="64" nowrap valign="top">
20.9%
</td>
</tr>
<tr>
<td width="187" nowrap valign="top">
<a href="/news">TARINGA</a>
</td>
<td width="95" nowrap valign="top">
$700,000
</td>
<td width="66" nowrap valign="top">
8.2%
</td>
<td width="64" nowrap valign="top">
14.3%
</td>
</tr>
<tr>
<td width="187" nowrap valign="top">
<a href="/news">WEST END</a>
</td>
<td width="95" nowrap valign="top">
$747,000
</td>
<td width="66" nowrap valign="top">
7.5%
</td>
<td width="64" nowrap valign="top">
22.0%
</td>
</tr>
<tr>
<td width="187" nowrap valign="top">
<a href="/news">SEVENTEEN MILE ROCKS</a>
</td>
<td width="95" nowrap valign="top">
$630,000
</td>
<td width="66" nowrap valign="top">
7.4%
</td>
<td width="64" nowrap valign="top">
23.0%
</td>
</tr>
<tr>
<td width="187" nowrap valign="top">
<a href="/news">NUDGEE</a>
</td>
<td width="95" nowrap valign="top">
$515,000
</td>
<td width="66" nowrap valign="top">
6.5%
</td>
<td width="64" nowrap valign="top">
45.8%
</td>
</tr>
<tr>
<td width="187" nowrap valign="top">
<a href="/news">CALAMVALE</a>
</td>
<td width="95" nowrap valign="top">
$500,000
</td>
<td width="66" nowrap valign="top">
4.2%
</td>
<td width="64" nowrap valign="top">
16.3%
</td>
</tr>
<tr>
<td width="187" nowrap valign="top">
 
<a href="/news">MORNINGSIDE</a>
</td>
<td width="95" nowrap valign="top">
$580,000
</td>
<td width="66" nowrap valign="top">
3.6%
</td>
<td width="64" nowrap valign="top">
21.0%
</td>
</tr>
<tr>
<td width="187" nowrap valign="top">
 
<a href="/news">FERNY GROVE</a>
</td>
<td width="95" nowrap valign="top">
$490,000
</td>
<td width="66" nowrap valign="top">
3.2%
</td>
<td width="64" nowrap valign="top">
19.8%
</td>
</tr>
<tr>
<td width="187" nowrap valign="top">
<a href="/news">GREENSLOPES</a>
</td>
<td width="95" nowrap valign="top">
$574,450
</td>
<td width="66" nowrap valign="top">
2.5%
</td>
<td width="64" nowrap valign="top">
18.4%
</td>
</tr>
<tr>
<td width="187" nowrap valign="top">
<a href="/news">GEEBUNG</a>
</td>
<td width="95" nowrap valign="top">
$407,629
</td>
<td width="66" nowrap valign="top">
2.0%
</td>
<td width="64" nowrap valign="top">
16.5%
</td>
</tr>
<tr>
<td width="187" nowrap valign="top">
<a href="/news">AUCHENFLOWER</a>
</td>
<td width="95" nowrap valign="top">
$835,000
</td>
<td width="66" nowrap valign="top">
1.8%
</td>
<td width="64" nowrap valign="top">
14.4%
</td>
</tr>
<tr>
<td width="187" nowrap valign="top">
 
<a href="/news">BARDON</a>
</td>
<td width="95" nowrap valign="top">
$737,500
</td>
<td width="66" nowrap valign="top">
1.7%
</td>
<td width="64" nowrap valign="top">
20.6%
</td>
</tr>
<tr>
<td width="187" nowrap valign="top">
<a href="/news">JAMBOREE HEIGHTS</a>
</td>
<td width="95" nowrap valign="top">
$403,000
</td>
<td width="66" nowrap valign="top">
1.4%
</td>
<td width="64" nowrap valign="top">
15.1%
</td>
</tr>
<tr>
<td width="187" nowrap valign="top">
<a href="/news">BRIGHTON</a>
</td>
<td width="95" nowrap valign="top">
$402,000
</td>
<td width="66" nowrap valign="top">
1.3%
</td>
<td width="64" nowrap valign="top">
23.7%
</td>
</tr>
<tr>
<td width="187" nowrap valign="top"></td>
<td width="95" nowrap valign="top"></td>
<td width="66" nowrap valign="top"></td>
<td width="64" nowrap valign="top"></td>
</tr>
</tbody></table>
 Source: REIQ
The REIQ notes that Brisbane house sales activity picked up notably over the quarter, with a 35% increase recorded compared with the June quarter.
“Brisbane’s market continues to improve as buyers turn their attention to our affordable capital city property prices, as well as the continued strong demand for rental properties which is attracting investors,” says REIQ chief executive Anton Kardash.
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lschlesinger-FZcF9M3vE6

Little-known Murarrie the top-performing Brisbane suburb for house prices over past 12 months: REIQ

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<img src="/images/stories/2012/11/raywhite2.gif">
John Skufris tells Property Observer companies seeking office space in Sydney hail from all over the world, including Singapore and South Africa. He would invest a spare $750,000 in a commercial property with dual zoning and parking close to the CBD.
How long have you been in the industry?
Twelve years.
<img style="margin: 5px; float: left;" src="/images/stories/2012/11/johnskulfis.png">
What’s happening in the area you specialise in?
We are seeing an increase in overseas businesses seeking more office space in Sydney's CBD from countries including, but not limited to, Singapore, South Africa and Holland recently.
Describe the most interesting property you have leased.
We leased a property that was vacant for years to a dance studio with stunning views over Hyde Park. They funded their own fit-out and paid a year's rent in advance to secure the premises.
What are the ingredients to being successful in your job?
The ingredients include being able to help people and understanding their requirements.
What aspects of your role do you enjoy the most?
Working in the CBD is great. I also enjoy meeting people and helping them with their property needs.
Where would invest a spare $750,000?
I would consider purchasing a property with dual zoning and parking, close to Sydney's CBD.
Which football team do you support?
The St George Illawarra Dragons.
What’s your favourite app or techno gadget?
It is the new Samsung S3.
How do you use social media?
We use <a href="https://www.raywhitesydneyleasing.com.au" target="_blank">https://www.raywhitesydneyleasing.com.au</a> and <a href="https://www.raywhitecommercial.com.au" target="_blank">https://www.raywhitecommercial.com.au</a> to advertise available properties.
These websites also offer details of our personnel with a media centre, leased properties and tools including an office space calculator.
My Twitter account is <a target="_blank" href="https://twitter.com/SydneyOffices">@SydneyOffices</a>, and we also use other networking sites including LinkedIn.
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In profile: Sydney CBD office leasing specialist John Skufris

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US private equity firm the Blackstone Group has become a major retail mall player in Australia after acquiring the in-debted Top Ryde City shopping centre in Sydney for $341 million from receivers McGrathNicol.
The mall on the corner of Devlin Street and Blaxland Road in Ryde has been in the hands of receivers since February 2011 after a syndicate of four banks foreclosed on retail development tycoon John Beville’s Bevillesta Pty Limited, after it was unable to meet the repayments on loans that financed its $800 million re-development.
It collapsed just six months after its grand re-launch attended by the prime minister. The shopping centre was valued at $840 million four years ago.
It covers 78,000 square metres of retail space and ranks among the 40 biggest shopping centres in Australia.
According to a report in the Australian Financial Review, Blackstone fought off competition from both local and overseas institutional investors to acquire the shopping centre.
Bidders for the mall included Lend Lease fund’s management unit and investment bank, Goldman Sachs, Melbourne businessman and shopping centre manager Sam Alter, super fund ISPT and listed property trust, CFS Retail Property Trust.
The mall was marketed by Simon Rooney of Jones Lang LaSalle via an expressions of interest sales campaign.
 
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New York-based Blackstone Group buys Top Ryde mall for $341 million

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Federal Treasurer Wayne Swan has once again waded into the debate over whether the Reserve Bank should cut the cash rate on December 4.
In a Treasury note over the weekend, Swan says the government’s forecast of a return to a budget surplus in the current financial year “gives the Reserve Bank more room to move on interest rates”.
“That’s the equivalent of six cuts to the official cash rate. For a family with a $300,000 standard variable mortgage, our responsible budget management has helped deliver a saving of around $4,500 a year in repayments compared to when the Government came to office,” says Swan.
By a majority of one, <a href="/news">economists polled by Bloomberg on Friday</a> tip the RBA to leave the cash rate on hold on December 4.
Tomorrow’s release of the minutes of the November monetary policy meeting and a speech by RBA governor Glenn Stevens will give clues as to the thinking of the RBA about a possible rate cut in December.
These are the lowest advertised mortgage rates based on listings by <a href="https://www.ratecity.com.au/" target="_blank">ratecity.com.au</a>, <a href="https://mozo.com.au/" target="_blank">Mozo.com.au</a> and <a href="https://www.infochoice.com.au/" target="_blank">infochoice.com.au</a> as of November 19:
Lowest variable rate offerings:
<table border="1" cellspacing="0" cellpadding="0" width="470"><tbody>
<tr>
<td valign="top" width="134">
Provider
</td>
<td valign="top" width="124">
Loan name
</td>
<td valign="top" width="97">
Rate
</td>
<td valign="top" width="116">
Comparison rate*
</td>
</tr>
<tr>
<td valign="top" width="134">
Loans.com.au
</td>
<td valign="top" width="124">
Blackboard special
</td>
<td valign="top" width="97">
5.42%
</td>
<td valign="top" width="116">
5.45%
</td>
</tr>
<tr>
<td valign="top" width="134">
My mortgage freedom.com.au
</td>
<td valign="top" width="124">
Low rate -LVR up to 75%
</td>
<td valign="top" width="97">
5.43%
</td>
<td valign="top" width="116">
5.74%
</td>
</tr>
<tr>
<td valign="top" width="134">
UBank
</td>
<td valign="top" width="124">
UHomeloan – refinance only
</td>
<td valign="top" width="97">
5.47%
</td>
<td valign="top" width="116">
5.47%
</td>
</tr>
</tbody></table>
Lowest one-year fixed-rate offerings
<table border="1" cellspacing="0" cellpadding="0" width="470"><tbody>
<tr>
<td valign="top" width="137">
Provider
</td>
<td valign="top" width="123">
Loan name
</td>
<td valign="top" width="95">
Rate
</td>
<td valign="top" width="114">
Comparison rate*
</td>
</tr>
<tr>
<td valign="top" width="137">
UBank
</td>
<td valign="top" width="123">
UHomeloan – refinance only
</td>
<td valign="top" width="95">
4.79%
</td>
<td valign="top" width="114">
5.40%
</td>
</tr>
<tr>
<td valign="top" width="137">
Community First
</td>
<td valign="top" width="123">
Honeymoon
</td>
<td valign="top" width="95">
4.99%
</td>
<td valign="top" width="114">
6.46%
</td>
</tr>
<tr>
<td valign="top" width="137">
My mortgage freedom.com.au
</td>
<td valign="top" width="123">
Low rate -LVR up to 75%
</td>
<td valign="top" width="95">
4.99%
</td>
<td valign="top" width="114">
5.78%
</td>
</tr>
</tbody></table>
Lowest three-year fixed-rate offerings
<table border="1" cellspacing="0" cellpadding="0" width="470"><tbody>
<tr>
<td valign="top" width="132">
Provider
</td>
<td valign="top" width="131">
Loan name
</td>
<td valign="top" width="96">
Rate
</td>
<td valign="top" width="111">
Comparison rate*
</td>
</tr>
<tr>
<td valign="top" width="132">
UBank
</td>
<td valign="top" width="131">
UHomeloan – refinance only
</td>
<td valign="top" width="96">
5.13%
</td>
<td valign="top" width="111">
5.40%
</td>
</tr>
<tr>
<td valign="top" width="132">
Pacific Mortgage Group
</td>
<td valign="top" width="131">
Three year fixed
</td>
<td valign="top" width="96">
5.19%
</td>
<td valign="top" width="111">
5.43%
</td>
</tr>
<tr>
<td valign="top" width="132">
CUA
</td>
<td valign="top" width="131">
Fixed rate home loan
</td>
<td valign="top" width="96">
5.30%
</td>
<td valign="top" width="111">
5.90%
</td>
</tr>
</tbody></table>
*A comparison rate includes both the interest rate and the fees and charges relating to a loan, combined into a single percentage figure.
For information on refinancing, watch our free webinar <a href="/news">Refinancing and the Interest Rates Riddle</a>
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Room for RBA to move on rates, says Wayne Swan: Guide to the lowest rate mortgages, fixed and variable as of November 19

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Property analyst Michael Yardney says there are four fundamental reasons why the Australian housing market is unlikely to crash with Australia’s high rate of mortgage-free property ownership another factor protecting the market.
Michael Yardney, director of Metropole Property Strategists,  says people who blog in hope or expectation of a housing crash are probably “jealous of those who have worked hard and built up some assets”.
Speaking as part of a realestatetalk.com.au podcast, Yardney says that while a housing crash cannot be ruled out entirely – it could possible happen one day – the four things that would need to happen for this to occur are unlikely to eventuate.
These four things are: a recession, extremely high interest rates, a high rate of unemployment and an oversupply of housing.
Before going on to explain how none of these four factors apply to Australia, Yardney highlighted that the “main reason” house prices won’t crash is that currently the housing market is underpinned by the fact that 50% of home owners have no mortgage against their home.
“Therefore high interest rates and recessions aren’t going to make them sell.
“It’s the only investment market controlled by non-investors,” says Yardney, in comparison with overseas markets where there are a lot more tenants, where people move from state to state and from country to country and where the banking rules are different.
“In Australia the things that could make a difference are [firstly] a recession
“People suddenly lose their jobs, unemployment is high and people can’t afford to keep their mortgages.
“But nothing suggests Australia is going to have a recession in the immediate future.”
Extremely high interest rates are another thing that could cause a crash, but Yardney says no one is suggesting that is going to happen in the forseeable future.
A high rate of unemployment would create a situation where people have to “give away their homes – sell them at “silly prices” and could cause a crash.
But, Yardney contends “everybody who wants a job can get a job at the moment” though it may not be the job they want”.
And the fourth factor is “significant oversupply” as was the case in the US housing crash.
“No doubt it is happening in some markets such as the Gold Coast and some of the off-the-plan markets, but overall there is not a huge oversupply.
“[So] I can’t see the Australian property market crashing in the foreseeable future.
Yardney says the housing market has corrected by between 5% and 7%, but says such a fall is not a crash, but part of a cyclical downturn.
“For a crash you need a 15% to 20% fall."
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No housing bubble and no housing crash likely: Michael Yardney

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The Reserve Bank is falsely pinning its hopes that lower interest rates will stimulate a recovery in housing construction, according to Bank of America Merrill Lynch Australia economists Saul Eslake and Alex Joiner.
They point to the muted impact that six rate cuts since November last year have had to date on both house prices and building approval figures – the weakest response to monetary policy stimulus in a decade – and anticipate only a "relatively moderate" recovery in residential construction" compared with previous cycles.
The RBA is hoping that when the mining and liquid natural gas (LNG) investment boom tails off in the next few years, the slack will be taken up by a boom in housing construction and a broader recovery in the housing market.


Last week, Jonathan Kearns,head of economic analysis at the RBA, said in a speech on the outlook for dwelling investment that there were “tentative signs” that investment in housing “will pick up which would, in part, offset the smaller contribution to growth that we expect from resource investment in the coming years”. 
But in a research report, Eslake and Joiner say that despite the RBA being over a year into the current monetary policy easing cycle, "the response from both house prices and residential construction has so far been measured at best".
Click to enlarge
<a href="/images/stories/2012/11/rbanov19.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/11/rbanov19thumb.gif"></a>
"We argue that due to structural and cyclical factors that any upswing in dwelling prices and investment over the coming year will remain relatively modest compared with previous cycles," they say.
The cash rate has fallen 150 basis points between November 2011 and October 2012, and banks’ standard variable mortgage rates have dropped 120 basis points in response, but Eslake and Joiner calculate that median house prices are still 1.2% lower than they were in October 2011 and have climbed just 2% since bottoming out in May.

In comparison, house prices increased by nearly 37% after the Reserve Bank cut interest rates by 200 basis points (from a cash rate of 6.25% to 4.25%) between January 2001 and December that year, and by a further 16% after the GFC, when the RBA cut the cash rate by 425 basis points from September 2008 to April 2009 (7.25% to 3%).

Building approval figures for detached houses – a forward indicator of future construction activity – have also not responded to the current rate-cutting cycle and are down 1.8% for the year to September in comparison with the units and apartment approval, which are up 41.6% year-on-year.
"This underperformance of detached housing approvals in particular is likely to result in the overall recovery in approvals and subsequently residential construction in the coming year being significantly less pronounced than in previous cycles," say Eslake and Joiner.
"This is especially true when we note that at least part of the strength in ‘other’ approvals was prompted by regulatory changes and alterations to state governments’ first home buyer grants (which will nonetheless boost dwelling investment growth in the short term).
"Our rationale for this is that despite easier monetary policy and Commonwealth and state government initiatives designed to boost the supply of housing (first home buyer grants, negative gearing etc) several factors are conspiring against any significant and sustained addition to housing supply."
 
<hr class="system-pagebreak">
These include macroeconomic headwinds (slowing activity and higher unemployment), regulatory processes becoming "ever more burdensome, drawn out and costly", high infrastructure and developer costs and softer sale prices.
Other reasons noted by Eslake and Joiner include a winding back of some government housing grants and slower income growth as seen in last week quarterly wage price index which eased back to 0.7% quarter-on-quarter growth below 0.9% to 1% growth in the last three quarters.
They also note that housing finance approval levels are "gradually rising spurred by lower mortgage interest rates and improved sentiment towards the housing market" which should continue in coming months.
"However, with approvals levels only 10% higher than lows experienced in early 2011 the recovery been less than convincing thus far (levels remain 10% below average levels since 2000)."
"With uncertainty in the labour market high, household caution will likely keep the recovery in approvals levels more modest than we have seen in previous monetary policy easing cycles. This will cap any recovery in housing credit growth going forward from what is currently historically low on an annual basis."
“With the debt to income ratio now having ‘plateaued’ at around 150%, households have seemingly recognised a limit to their borrowing capacity.

“As such, a more modest expansion of incomes will result not only in lower house price growth but also significantly slower growth in housing credit,” they say.
Looking ahead to the December 4 RBA meeting, Eslake and Joiner say the RBA minutes from the November board meeting (out tomorrow) "are not likely to say too much that last week’s statement on monetary policy hasn’t already".
"The sentiment from the RBA is that rates are at an appropriate level for the time being.
"We are still marginally biased towards a cut in December and will assess the data flow leading into the meeting (including building approvals, retail sales and some partial third quarter GDP data) to ascertain whether there is likely a need for a further easing of policy in the short term."
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RBA rate cuts stimulating 'relatively moderate' housing market recovery: Bank of America Merrill Lynch

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There were 365 unconditional inner-Brisbane apartment sales in the September quarter, with more than four out of five sales below the $650,000 mark, according to a new report by Place Advisory.
Affordability appears to be a key consideration for buyers, with more than a third of sales (35%) price between $350,000 and $450,000 – the most popular price band.
However, there appears to be little appetite (or little product) at the more expensive end of the market, with just 3% of sales for apartments prices from $900,000 and above.
Click to enlarge
<a href="/images/stories/2012/11/placenov19.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/11/placenov19thumb.gif"></a>
Source: Place Advisory
The weighted average price over the quarter was $548,493 – 3% below the previous June quarter price. 
The 365 transaction were 15% lower than the previous quarter but above the long-term 10-year average of 311 transactions, which Place Advisory says indicates stability in the market.
At the current sales rate there is more than a year’s worth of apartments available for purchase, with Place Advisory counting a total of 1,808 new residential apartments remaining for sale across the inner-<a target="_blank" href="/news">Brisbane </a>market.
It was a very good quarter for developer David Devine,who notched up two of the top-selling projects over the three months to September via his Metro Property development businesses.
The highest-selling project over the quarter was Metro Property’s newly released Plaza Apartments, which recorded 54 unconditional sales, followed by another Metro Property project, Brooklyn on Brookes, with 44 sales.
Double One 3 (39 sales) – being developed by Devine Limited in <a href="/news">Teneriffe </a>– ranked third. The business is no longer associated with David Devine, but still bears his name.
“From discussions with agents and developers across the marketplace, consistency month to month remains the biggest challenge,” says Place Advisory, a project marketing agency.
“Enquiry appears to fluctuate in quality and quantity with no reasoning associated.
“The reality is when you look at the overall picture, we must be prepared and understand that we are in what could be regarded as a normal market.
“Most feedback suggests that if Brisbane’s residential supply pipeline continues as a constant, where close to an average of 1,000 new apartments have been released annually over the past five years, and stock remains price pointed and affordable these trends are unlikely to change in the coming two years.
“Importantly, the impact of the first-home owners' construction grant (FHOCG) will be one to watch in coming quarters.”
 
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Brisbane apartment market stabilises in September quarter with sub-$650,000 the sweet spot: Place Advisory

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Industrial assets offers the potential for far better returns than risk-free government bonds, according to investment bank Morgan Stanley’s latest Australian property report.
As the chart below shows, while capitalisation rates (yields) are well off their mid-1990s peaks, industrial assets offer an average return of 8.3% compared with a yield of 3.05% for 10-year government bonds.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/11/morganstan.gif"><img src="/images/stories/2012/11/morganstanthumb.gif"></a>
“Yield is the name of the game,” says Morgan Stanley in its latest report authored by analysts Lou Pirenc, Todd McFarlane and John Meredith.
 
“In a typical environment where demand fundamentals in property are weakening, we would normally expect a softening in asset prices.
“As the graph shows, however, industrial, office and retail all offer attractive spreads to the risk-free rate and increasingly to the marginal cost of debt for many REITs.
“Whereas assets in recent years were primarily sought by sovereign wealth funds and selected domestic unlisted funds, we are now seeing buyer demand from listed REITs, unlisted funds, sovereign wealth and pension funds, and offshore corporates/investors," says Morgan Stanley
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Industrial property offers strongest returns of commercial property classes: Morgan Stanley

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Mutual lender bankmecu has leased 123 square metres of retail space on Little Collins Street.
The new branch at 104 Little Collins and Southern Cross Lane will add to the more than 25 branches that bankmecu has across Australia, but is its first retail presence in the Melbourne CBD.
Bankmecu has its headquarters in <a target="_blank" href="/news">Kew</a>.
The lease agreement for the vacant premises was negotiated by Fitzroys agent Mitchell Humphreys on behalf of landlord Brookfield.
Humphreys says rents in the location are still being negotiated well in excess of $1,000 per square metre.
The space was fitted out by bankmecu and opened for business on November 19.
Humphreys says Brookfield was pleased to secure a strong tenant to anchor the Southern Cross food and retail laneway.
“It is critical to be proactive and sensitive to the ongoing tenancy mix in these establishing precincts when securing new tenants,” he says.
“The vibrant precinct taking in the Southern Cross food laneway and the top end of Little Collins Street continues to attract strong tenant demand, with no retail vacancies.”
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Bankmecu takes retail space on Little Collins Street at around $1,000 per square metre 

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Western Australia’s remote Pilbara region, the state’s iron ore mining heartland, has topped the list of regions with the lowest proportion of annual sales under $400,000.
According to research by RP Data, just 5.8% of sales in the Pilbara region were under $400,000 over the year to August.
There were nearly four times as many sales below $400,000 in the second-ranked Kimberley (22.1%) region, which lies just above the Pilbara geographically, and benefits from mining as well as tourism.
Third was Canberra (22.1% of annual sales) and fourth Sydney (30.3% of all sales).
The Pilbara is a vast region covering an area of 502,000 square kilometres in northern WA running west from the coast. Its main mining towns are <a href="/news">Karratha</a>, <a href="/news">Dampier</a>, <a href="/news">Port Hedland</a>, <a href="/news">South Hedland</a> on the coastal edge and <a href="/news">Newman </a>and <a href="/news">Tom Price</a> in the hinterland.
Property Observer has scoured real estate listings in these mining towns and found only four properties currently listed for sale under $400,000, three of them in the Karratha suburb of <a href="/news">Bulgarra </a>and one in the Karratha suburb of <a href="/news">Pegs Creek</a>. All of them are one-bedroom apartments. None of the other mining towns had properties listed for sale under $400,000.
Property Observer only considered existing properties with a listing price advertised under $400,000 and excluded vacant land and house-and-land package listings.
$182,000
A <a href="https://www.realestate.com.au/property-house-wa-pegs+creek-111445311" target="_blank">one bedroom unit being sold by Ray White Karratha on Warambie Road in Pegs Creek (pictured below).</a>
<img width="470" src="/images/stories/2012/11/warnambie.jpg">
$299,000
A <a target="_blank" href="https://www.realestate.com.au/property-apartment-wa-bulgarra-110436629">one-bedroom ground-floor apartment on Ridley Street, Bulgarra</a> (pictured below), being sold by Jackie McVee of First National Karratha.
<img width="470" src="/images/stories/2012/11/ridleyst.jpg">
$350,000
A<a href="https://www.realestate.com.au/property-house-wa-bulgarra-112164847" target="_blank"> one-bedroom bedsit with separate bathroom and toilet on Ridley Street</a> in Bulgarra (pictured below) being marketed by Richard Naulls of Ray White Karratha.
<img width="470" src="/images/stories/2012/11/ridleyst2.jpg">
$375,000
A <a target="_blank" href="https://www.realestate.com.au/property-house-wa-bulgarra-110467185">furnished one-bedroom bedsit with separate bathroom and toilet on Ridley Street</a> in Bulgarra (pictured below) being marketed by Richard Naulls of Ray White Karratha.
<img width="470" src="/images/stories/2012/11/ridleyst3.jpg">
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Pilbara offers only rarest of property investment nuggets under $400,000

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

Joel Robinson

The Eveleigh brings house-like apartments to Broadbeach

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

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

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

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

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

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

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