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The last of the big four banks, Westpac, has reported its 2012 annual results, with the country’s second-biggest mortgage lender recording record cash earnings of $6.6 billion for the year ending September 30.
However, it managed just 4% growth in mortgage lending over the group (3% within the Westpac brand) over the course of the financial year with funding costs rising as it shifts its funding mix towards a greater reliance on customer deposits.
For their respective financial years <a href="/news">NAB</a> reported 9.9% annual growth in mortgage lending, <a href="/news">ANZ</a> managed mortgage growth of 7% and <a href="/news">Commonwealth Bank</a>, mortgage growth of 4%.
System growth in mortgage lending for the year to September has been 4.7%, according to RBA financial aggregate figures.
The $6.6 billion cash profit figure was Westpac’s third consecutive record result – cash profit excludes one-off financial items.
Statutory net profit, which does include one-off financial items, fell 15% to $5.97 billion, reflecting a previous year benefit of a one-off St.George tax consolidation.
Westpac maintained its 26% share of the national home loan market growing its total mortgage book by $11.7 billion from $304.6 billion to $316.3 billion.
However, line-of-credit lending (used primarily by investors) declined from $35 billion to $32.6 billion.
Westpac Group CEO Gail Kelly called the bank’s performance a “strong result in a lower growth economic environment”.
The bank reported its net interest margin down five basis points for the year at 2.17%, attributing this decline to higher funding costs, mostly from the increased benefit customers received from higher deposit interest rates relative to market rates.
“Strengthening our balance sheet and improving our funding profile has been a key area of focus in recent years," says Kelly. 
"At our half year results, I stressed that a priority was growing deposits so I am pleased that our total customer deposits grew 12% or $38 billion this year, more than funding our growth in loans. Combined with a reduction in short-term wholesale debt, this has materially improved our funding mix."
 Kelly says a highlight of the result was the strong performance of the new Australian Financial Services division (AFS), which includes the Australian retail banking, business banking and wealth operations, where cash earnings increased by 14% to $2.1 billion as deposits and loans grew.
Among the subsidiary businesses, St George’s earnings flat compared to the previous year, at $1.2 billion.
Westpac says all its brands (the others being BankSA; Bank of Melbourne; and franchised mortgage lender RAMS) “contributed to the good momentum”.
The bank declared a record fully franked final dividend of 84 cents per share, up 2 cents, or 2% over first half 2012.
Total dividends for the year were 166 cents, up 6% over the prior year, and reflected a pay-out ratio of 77%.
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lschlesinger-FZcF9M3vE6

Westpac records record cash profits of $6.6 billion but sluggish mortgage lending amid higher funding costs

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NIMBYism (not in my backyard) and "save our suburbs" campaigns by local residents and councils are one of a number of factors that will inhibit a strong residential building recovery despite rising pent-up demand for new housing, according to Paul Braddick, head of property research at ANZ.
In his latest update, Braddick lists the difficulty in obtaining dwelling construction approval due to both red and green tape (environmental concerns) as a key factor that will result in a subdued recovery, rather than a stronger one.
The other factors that will impinge on the recovery, he says, are soft house price expectations, rising building costs, a squeeze on developer profit margins, substantial infrastructure charges and developer contributions, problems with land availability, affordability and accessibility, insufficient infrastructure (especially transport) and tight credit conditions.
According to Braddick, there is strong pent-up demand for new housing with many conditions favouring a solid recovery including falling interest rates, improved market sentiment and house prices appearing to have bottomed out in most capital cities.
Braddick says total dwelling approvals have risen by almost 12% in trend terms since their low point in January this year, but says the upswing has been almost exclusively driven by a one-third jump in apartment approvals, while detached house approvals remain "near cyclical lows equal to the lows of the past 30 years, excluding the post-GST introduction".
 
Click to enlarge
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ANZ doubts the boom in apartment building’s share of new building activity (now above 40%) is sustainable given that detached housing makes up 75% of the existing housing stock
 
“While we continue to expect a affordability-driven structural shift away from traditional landed property towards higher-density living, we believe this will be a gradual, longer-term adjustment, rather than as dramatic as suggested in recent data," says Braddick.
ANZ forecasts real dwelling investment (seasonally adjusted) growth to have turned positive in the September quarter 2012 and for 138,000 and 146,000 dwellings to be completed in 2012-13 and 2013-14, respectively, compared with 142,000 in 2011-12.
However, the recovery will not be uniform with ANZ predicting “solid cyclical residential building recoveries for New South Wales, Queensland, Western Australia and the Northern Territory, but weak activity in Victoria, South Australia, Tasmania and the Australian Capital Territory in the near term.
This is due to a “marked de-synchronisation of home building cycles across the states” with Melbourne, Adelaide, Perth, Hobart and Canberra bucking the national trend in recent years and having “actually significantly out-performed relative to their long-run average home building activity levels”.
Overall though, Braddick warns that the recovery will “disappoint despite the urgent need for additional housing stock".
“The total decline in interest rates in the current cycle is small compared with earlier cyclical upturns.
 “Moreover, economic uncertainty and heightened debt aversion mean the responsiveness of households and home buyers to lower interest rates is likely to be significantly lower in this cycle than before, though strong population growth means there is more pent-up demand.
“For all of the above-mentioned reasons, we suspect the current upswing in new dwelling approvals and building activity will disappoint relative to previous recoveries and existing market expectations.
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NIMBYism to impact on subdued two-speed recovery in new home building: ANZ

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First-home buyers in Victoria who sign contracts to purchase their first homes with a 60-day settlement now stand to benefit from increased stamp duty concessions that formally begin on January 1, 2013.
Savings will range from around $2,000 to just over $3,000 depending on the value of the home they purchase.
In addition, the first-home buyers' grant of $7,000 remains in place in Victoria for both new and established first-home purchases.
Real Estate Institute of Victoria chief executive Enzo Raimondo says many first-home buyers may not realise that homes bought as of last weekend (November 3) with 60-day settlements will be eligible to benefit from the lower stamp duty because they pay stamp duty when settlement of their purchase occurs, not when they sign a contract.
“Settlement occurs on the day the balance of the purchase price is paid and the property’s title document is handed over to the buyer.
“This means that if you are buying your first home right now, you meet the eligibility criteria and your settlement date is 1 January or later, you will be eligible for the 30% discount on stamp duty.
“This is unlike the first-home buyer grant, which applies from the date the contract is signed."
From January 1 the Victorian government will increase the current 20% discount is to 30% up to a total purchase price of $600,000.
Currently a home bought by a first-home buyer price at just under $600,000 is eligible to pay stamp duty of $24,808.
This decreases to $21,701 from January 1 – a savings of $3,101.
The stamp duty cut increases to 40% on January 1, 2014 and then to 50% on September 1, 2014. 
<a target="_blank" href="https://www.sro.vic.gov.au/SRO/SROCalcs.nsf/transfer?OpenForm#calc">This calculato</a>r provided by the Victorian State Revenue Office will help first-home buyers calculate their stamp duty bill.
The first-home buyers’ grant of $7,000 remains available for all those buying their first home for $750,000 or less. The grant is paid by the state government and has no scheduled end date. 
Raimondo says other key criteria for the stamp duty cut are that the total purchase price must not be over $600,000, it must be a first home and the buyers must live in it as their primary place of residence.
 “If you are looking to purchase at the moment, it is sensible to establish your eligibility with the State Revenue Office before you commit to a purchase. The first step is to look at the information at the SRO website.
 “Overall, the cut is good news for those buying their first home and it will be worth an additional $2,377 on a home valued at $530,000. This will bring the total stamp duty cut on the median priced home from $4,754 to $7,131,” Raimondo says.
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Victorian first-home buyers increased stamp duty benefits take effect with savings of up to $3,100

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With a total year-on-year returns of 16.6% for houses and 9.6% for units and yields of 6% in the year to October, Darwin has solidified its reputation as very desirable location for property investors.
RP Data senior research analyst Cameron Kusher says much of this growth is being driven by the mining and resources sector as well as spending from the public sector.
<table cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td width="99" valign="top"> </td>
<td width="78" valign="top">
MEDIAN HOUSE PRICE
</td>
<td width="99" valign="top">
QUARTERLY CHANGE
</td>
<td width="79" valign="top">
RENTAL YIELD
</td>
</tr>
<tr>
<td width="99" valign="top">
OCTOBER
</td>
<td width="78" valign="top">
$525,000
</td>
<td width="99" valign="top">
1.2%
</td>
<td width="79" valign="top">
5.9%
</td>
</tr>
<tr>
<td width="99" valign="top">
SEPTEMBER
</td>
<td width="78" valign="top">
$534,000
</td>
<td width="99" valign="top">
3.6%
</td>
<td width="79" valign="top">
6%
</td>
</tr>
<tr>
<td width="99" valign="top">
AUGUST
</td>
<td width="78" valign="top">
$545,000
</td>
<td width="99" valign="top">
4.8%
</td>
<td width="79" valign="top">
5.7%
</td>
</tr>
<tr>
<td width="99" valign="top">
JULY
</td>
<td width="78" valign="top">
$543,500
</td>
<td width="99" valign="top">
4%
</td>
<td width="79" valign="top">
5.7%
</td>
</tr>
</tbody></table>
 
<table cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td width="86" valign="top">
 
</td>
<td width="86" valign="top">
MEDIAN UNIT PRICE
</td>
<td width="99" valign="top">
QUARTERLY CHANGE
</td>
<td width="75" valign="top">
RENTAL YIELD
</td>
</tr>
<tr>
<td width="86" valign="top">
OCTOBER
</td>
<td width="86" valign="top">
$427,000
</td>
<td width="99" valign="top">
2.7%
</td>
<td width="75" valign="top">
6%
</td>
</tr>
<tr>
<td width="86" valign="top">
SEPTEMBER
</td>
<td width="86" valign="top">
$423,000
</td>
<td width="99" valign="top">
5.5%
</td>
<td width="75" valign="top">
6%
</td>
</tr>
<tr>
<td width="86" valign="top">
AUGUST
</td>
<td width="86" valign="top">
$420,000
</td>
<td width="99" valign="top">
7.1%
</td>
<td width="75" valign="top">
5.8%
</td>
</tr>
<tr>
<td width="86" valign="top">
JULY
</td>
<td width="86" valign="top">
$410,000
</td>
<td width="99" valign="top">
-0.2%
</td>
<td width="75" valign="top">
5.9%
</td>
</tr>
</tbody></table>
 Source:<a target="_blank" href="https://www.myrp.com.au/"> RP Data</a>. Note the median price is the middle price of all settled sales over the three months to the end of the final month.
However, Kusher also notes that the recent rise in Darwin house values – up 10.6% for the year to date for houses and up 8.9% for units – has come following a “fairly significant correction in values through most of last year”.
“At one point last year Darwin values were down 15% on an annualised basis.
“Values have increased, but they can be volatile," Kusher says, pointing out that because Darwin is tied to the mining boom it is very dependent on demand from China.
Apart from the mining and resources sector boost and public sector investment, Kusher says there are also “significant incentives” from the Northern Territory government to encourage property purchases.
Currently the NT government continues to offer a $7,000 first-home owner grant for both existing and new homes (in contrast to NSW and Queensland, which offer $15,000 for first-home buyers buying a new home but nothing for existing homes) as well as a $10,000 'BuildBonus' for home buyers building or purchasing a new home until the end of 2012. In addition the NT government also offers a first-home owners stamp duty concession of up to $26,730 (the duty owned on the first $540,000 value of a property).
Kusher says the Darwin market is also appealing to investors because many people won’t live there long term.
“There are a lot of renters and people who don’t stay long. This means more opportunities for investors to negotiate the rent upwards when new tenants move in,” he says.
Kusher expects the Darwin property market to trend higher in the long term, but “perhaps not at same rate it is currently trending upwards”. 
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Darwin well-positioned as investor hotspot but dependent on mining and public sector: RP Data

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The vast majority of economists still expect the RBA to cut the cash rate by 25 basis points to 3% on Melbourne Cup Day.
Some 20 out of the 27 economists polled by Bloomberg today expect the cash rate to be lowered on November 6 – just one fewer than the 21 who expected a rate cut when polled last week.
However, ANZ remains notably among those expecting rates to stay on hold.
“Following the slightly higher-than-expected third-quarter CPI inflation data last week we pushed back our call for a 25-basis-point cut in the cash rate from November to December," says ANZ.
“We did this not because we don’t think there are good reasons to lower rates now – we certainly do – but because the CPI outcome and somewhat better data flow from overseas complicates the picture.
“The RBA may choose to wait another month by which time they will have further labour market information and a better read on third-quarter GDP growth (from partial indicators).
“Market pricing suggests around a 50% probability of a rate cut next Tuesday,” says ANZ.
The other institutions not tipping a rate cut next week are Barclays Capital, Citi, Goldman Sachs JP Morgan, Merrill Lynch and TD Securities.
Westpac chief economist Bill Evans expects the Reserve Bank to cut the cash rate but highlights that there is considerable uncertainty about the Tuesday decision.
However, he says recent comments by deputy governor Philip Lowe, that the “very low interest rates in many other economies should not be seen as a good thing or something to aspire to” should not be interpreted to mean rates can’t go any lower.
Evans says if there is no move next week and there is no indication in the RBA’s monetary policy statement to the contrary, “then we can only conclude that the [September quarter] inflation report has (in our view unjustifiably) prompted the bank to delay any easing decision until there is more information available including the inflation profile".
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RBA still likely to cut the cash rate on Melbourne Cup Day: Bloomberg survey

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The Queensland government's well-documented cost-cutting drive has impacted on the performance of the Westlawn Property Trust, an unlisted property fund managed by Clarence Property.
In its latest newsletter to investors, Clarence Property, based in Ballina, writes that the vacancy rate at its 29 level office building at 307 Queen Street in the Brisbane CBD has increased from 4.91% to 19.56% following Queensland government staff cutbacks.
The building, which offers 20,000 square metres of lettable office space, currently has four floors vacant.
This compares to a vacancy rate across the whole portfolio of just 3.89% as of June 2012 an 19.1% improvement on the June 2011 vacancy rate of 4.81%.
“The government cutbacks, combined with a slowing in the mining industry are likely to create difficulty leasing this space in the near-term.
“This vacancy has an obvious detrimental impact on rental income,” says Clarence Property.
The trust paid investors a distribution rate of 4c per unit per annum for the year to June 2012, unchanged from the previous year, after reporting a 7.1% improvement in net operating profit of $5.46 million.
In its newsletter, Clarence Property notes that it has continued to monitor the trust’s cash flow position with a view to being able to increase the distribution rate, but due to the increased vacancy at 307 Queen Street it remains “unable to announce a distribution rate increase”.
A further update will be provided to investors in December.
Clarence Property managing director Peter Fahey described the 2012 financial year performance of the trust as “acceptable” in what transpired to be a “difficult leasing year”.
Looking ahead, Fahey says the trust expects “moderate returns from direct commercial property (office) over the next 12 months".
“Performance will be largely dependent on tenant demand. Vacancy levels in Australian office markets are expected to rise slightly as white collar employment growth continues to be modest at best.
“Vacancy rates in the Brisbane office market, where the trust has its largest exposure, are expected to increase over the next year or so as a result of government staffing cutbacks and a pause in the mining industry," he says.
Fahey says the trust’s primary short-term focus is to fill the vacant space at 307 Queen Street.
Clarence Property paid $76.5 million when it acquired the Queen Street office tower in September 2002.
In currently has a book valuation of $127 million and comprises 46% of the value of all the properties in the trust, which stands at $274 million.
Other properties in the trust include a five-storey office building at 29 Molesworth Street in Lismore leased to the NSW government and Family Law Court of Australia, the Byron West Shopping Fair in Byron Bay, the Easy T Centre in Robina and the Yamba Shopping Fair.
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Queensland government cutbacks hurt Westlawn Property Trust

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The number of residential properties listed for sale in Melbourne fell by 1.4% over the busy month of October, lending some support to what is considered an oversupplied housing market currently favouring buyers.
Melbourne online listings fell from 51,564 to 50,861 from September to October with year-on-year figures now down 0.8%.
This was the steepest monthly fall recorded of all the major capital city markets in contrast with the nation result which was virtually unchanged (up 0.3%) at 374,445 a mere difference of 1,071 listings compared with September.
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SQM Research managing director Louis Christopher called the October data a surprise result.
“We were expecting listings to rise in October following the steady result in September and to be fair some capital cities have recorded a rise, but overall it is becoming clear to us that this is an abnormal result for this time of year and suggests to us that stock is being absorbed by buyers and/or vendors have been withdrawing their listings.
“We are starting to believe that it is the former rather than the latter,” he says. Matching strong recent price gains, Darwin registered the strongest decline in residential listings of all capital cities falling 2.7% to just 1,166 properties for sale – down 26.3% year-on-year.
In contrast, Sydney recorded a 4.5% increase in listings over October to 31,773 while Perth gained 1% to 17,689.
This was a reversal of what happened in September, the first month of the spring selling season, when Melbourne recording a 0.7% rise in online residential property listings while both Sydney (-2.9%) and Perth (-3%) both recorded noticeable declines.
However, both Perth and Sydney listings are more than 10% down on a year ago while Brisbane listings are down 5.5% (28,585) on a year ago, following a 0.9% fall over October.
RP Data-Rismark figures show a 0.8% rise in the Melbourne house price to the October quarter to a median of $508,000 while unit prices are down 1.3% to a median of $420,000.
RP Data senior research analyst Cameron Kusher says he expects Melbourne property prices to bounce along near the bottom for the next 12 to 18 months.
In October BIS Shrapnel managing director Robert Mellor predicted an exodus of Melbourne investors with a big rise in new apartments being completed in Melbourne over the next two to three years exacerbating the current oversupply of housing.
According to property market analyst Michael Matusik ,since 2009, Victoria has created 69,000 too many new dwellings, representing “about a two-year oversupply based on the current annual underlying demand for 34,000 new dwellings across the state”.
SQM Research notes that Canberra (6%) and Sydney (4.5%) have experienced the most noteworthy month-on month increases.
“As the spring selling season is well under way, the increases in these capital cities do not come as a surprise; what is surprising however, is that stock levels have not swollen dramatically during spring as is usually seasonally expected,” says the firm.
“This is perhaps a potential indicator that the market has begun to recover – albeit modestly."
 
 
 
 
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Declining October Melbourne residential listings bring some balance to market

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A guitar shop on trendy Dank Street in Waterloo in Sydney’s inner south is being marketed at small investors and those with self-managed super funds offering an attractive gross yield of 8%.
The guitar shop occupies shop 6 at 9-15 Dank Street, a mixed-use building developed and built by family-owned property development and investment company Manicaland five years ago.
The 69-square-metre shop has an asking price of $474,000 plus GST and is currently leased to Playa Playa on a five-year lease, which commenced in August this year with a five-year renewal option.
Playa Playa is paying a starting rent of $38,000 per annum gross plus  GST with annual rent increases of 3%.
The property is being marketed by Anthony Tripodi and Steve Hawksley from City Alliance Property – Waterloo.
Alex Zylberberg from Manicaland tells Property Observer that looking at the profile of buyers of similar properties sold in the same building in the last couple of years suggests it will appeal to “small mum and dad investors who might already have a residential portfolio and are looking to diversify into commercial property”.
He says it would also appeal to small self-managed super funds.
“We are currently working with a couple of enquiries,” says Zylberberg.
Dank Street is the retail heart of urban regeneration in Waterloo, featuring cafes, boutique stores, galleries and studios, and is especially popular on weekends.
Well-known establishments in Dank Street include the Dank Street Bakery and supermarket Fratelli Fresh.
According to census 2011 figures <a href="/news">Waterloo </a>is Australia’s second most upwardly mobile suburb, with weekly household income rising 167% between 2001 and 2011.
Just around the corner from Dank Street, the Amelia Street Café premises measuring 70 square metres are also up for sale with an asking price of $485,000 plus GST.
The property is being sold by Michael Gould of Deans Property Broadway.
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Gross yield of 8% on offer for Dank Street guitar shop in Sydney's Waterloo

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Aussie Home Loans founder John Symond says the Reserve Bank must cut the cash rate on Melbourne Cup Day (November 6).
“Australia continues to be susceptible to economic shocks from overseas and small retailers and businesses are doing it tough as we head into the crucial Christmas retail season," Symond told Fairfax.
According to Symond, a rate drop would boost retail sales and the rest of the economy – especially employment – “providing much needed confidence to consumers”.
His calls for a rate cut come as the certainty of a Melbourne Cup rate cut shrinks from a sure bet a few weeks ago to now only a "50-50 call", according to Commonwealth Bank chief economist Michael Blythe.
Symond has been critical of the Reserve Bank for being too slow to move on rates in the past, accusing governor Glenn Stevens  and the RBA board of being<a href="https://www.propertyobserver.com.au/residential/recovering-housing-market-at-630-on-the-property-clock-with-no-risk-of-a-housing-bubble-john-symond/2012101157115"> “asleep at the wheel”.</a>
He has also dismissed arguments that lower interest rates could fuel a housing bubble.
“I am confident, notwithstanding a lot of hype from offshore analysts about a housing bubble, of Australia’s fundamentals,” Symond said in a speech in October.
Among those who disagrees with Symond on the need for a November rate cut is Annette Beacher, head of Asia-Pacific research at investment bank TD Securities.
Beacher says an expansion in Chinese manufacturing (as seen in an improvement in the Chinese manufacturing index from 49.8 to 50.2 in October) as well as a stronger than expected rise in inflation in the September quarter are two reason why the RBA should pause in November.
“The RBA can afford to pause at 3.25%t and 'wait and see' for the next round of monthly data, as well as assess the impact to date of previous easing," she said in a note to clients.
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RBA must cut the cash rate on Melbourne Cup day: John Symond 

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Dixon Advisory, the manager of the US Masters Residential Property Fund, does not expect storm damage from Hurricane Sandy to materially impact on the value of its portfolio of 249 rental properties in New Jersey and Brooklyn.
Yesterday, fund managing director Alan Dixon said low-lying properties in Jersey City, Bayonne and Hoboken had suffered damage as a result of Hurricane Sandy following inspections made by himself and other members of the fund's management team.
In an ASX statement, the fund said net asset value calculations on October 26 – prior to Hurricane Sandy making landfall in the New York Metropolitan area – was at $1.44 per share.
“An assessment of the impact of the storm on the portfolio is currently being undertaken," says the fund.
“While it is too early to precisely estimate the storm’s impact on the value of the portfolio, given the limited nature of the damage and the insurances carried by the fund, the responsible entity currently estimates there will be no material effect on the NTA.”
<a target="_blank" href="https://www.propertyobserver.com.au/international/dixon-advisory-to-undertake-significant-clean-up-of-new-jersey-properties-damaged-by-hurricane-sandy/2012103157557">An announcement yesterday</a> about damage to some properties in the portfolio did not impact on its share price, which is currently trading at $1.55, having traded in a range between $1.53 and $1.61 over October.
The ASX-listed fund bills itself as the first Australian fund to invest directly in US residential real estate with many of the investors being self-managed super funds.
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Dixon Advisory expects “no material impact” on the value of US residential portfolio following Hurricane Sandy

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

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