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The Australian arm of Parragon Publishing, the world’s largest illustrated non-fiction book publisher, has relocated across the Yarra renting office space in Richmond at a net rent of $320 per square metre.
It will rent half of the top floor (460 square metres) of building 2 in the <a href="https://www.realcommercial.com.au/property-offices-vic-richmond-5542594" target="_blank">Richmond business park at 658 Church Street, with CBD views.</a>
Other tenants in the business park include Just Jeans, Mattel, Country Road and advertising agency DDB.
The publisher had previously rented office space in the Como Centre on Chapel Street, just on the other side of the Yarra River.
Current leasing listings suggest Parragon was paying more to lease space on Chapel Street, with space in the Como Centre currently being advertised at $340 per square metre excluding GST and outgoings.
The new three-year lease was negotiated by Michael Darvell, senior executive for office leasing at Colliers International.
“The rental rate reflects a quality asset right in the heart of Richmond’s commercial hub,” says Darvell. 
 
The lessor is PodCo Property, a property development company, headed by well-known former commercial agent Anthony "Pod" Wilson. 
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lschlesinger-FZcF9M3vE6

Non-fiction book publisher Parragon moves from South Yarra to Richmond at $320 per square metre

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A Centuria fund holding a non-CBD Brisbane office building has been named as the unlisted property fund of the year at the 18th Annual Property Funds Industry Forum this week.
The closed-end unlisted property fund comprises a two-storey office building at 19 Corporate Drive, <a target="_blank" href="/news">Cannon Hill</a>, six kilometres from the Brisbane CBD within the Southgate Corporate Park and was constructed in 2008.
Centuria was commended for its high level of income return and forecast capital gain the fund will provide investors.
The fund will deliver a return of 9.75% to investors in its first year, rising to 10% in its second year, with distributions paid quarterly.
Centuria expects capital growth from the asset from actively managing it as well as a wider recovery in the property market over the long term.
Centuria purchased the two-storey office building for $23.3 million in September (excluding stamp duty) at 4.9% discount to the independent valuation and a 19% discount to the previous sale in May 2008.
The building features over 6,000 square metres of net lettable area and is fully occupied, tenanted by Honeywell, Canon, Westpac, NAB, Optus, GM Holden, Orica, Rivercity Motorway QBuild and a number of state and federal government departments such as the National Archives of Australia (federal government) and the National Broadband Network Co, with a weighted average lease expiry term of just under five years and fixed annual rent increases of 3.8% per annum.
Retail tenants include McDonald's, Coffee Club and First Choice Liquor. There is also a childcare centre and a medical centre.
Investors were required to make a minimum investment of $100,000 held for six years with the aim of raising $15.8 million in equity.
Centuria notes that the only at-risk tenant is Rivercity Motorway (operator of the CLEM7 tunnel in Brisbane), which is currently in administration, though it is not currently in arrears on its lease.
Jason Huljich, chief executive of Centuria Property Funds, says the company is experiencing strong demand from individual investors and wealth management groups and has “great expectations” for the 19 Corporate Drive Fund.
“Investors are seeking opportunities that provide strong income returns backed by ‘hard assets’. Property as an asset class, with its high proportion of total return generated by income yields, is well positioned to meet this demand," he says.
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Centuria Brisbane office fund generated 10% returns and named unlisted fund of the year 

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<img src="/images/stories/2012/10/kflogo.jpg">
Eugene Evgenikos is Knight Frank’s national director of industrial property.  He tells Property Observer he is seeing a lot more interest from offshore investors. He would invest a spare $750,000 in the south Sydney industrial market.
How long have you been in the industry?
<img style="margin: 5px; float: left;" src="/images/stories/2012/10/eugene.png">
Twelve years.
What’s happening in the area you specialise in?
We are seeing increased levels offshore investor activity coupled with further concentration of ownership of industrial property with landowners.
Describe the most interesting property you have sold.
A 27,000-square-metre property that was the last holding of the<a target="_blank" href="https://properties.knightfrank.com.au/wp-content/plugins/Realty/display/elements/brochure.php?property_id=81995"> original ACI Glass Factory in Waterloo</a> (ACI merged with Corning Glass Works of USA to form Crown Corning Limited in 1972, now called Crown Commercial). It was always an exciting facility to inspect. Unfortunately the facility was demolished to make way for a bulky goods warehouse.
What are the ingredients to being successful in your job?
Passion, commitment, enjoyment, dedication.
What aspects of your role do you enjoy the most?
Firstly the people. Meeting successful and self-made individuals has been amazing. Many of these people have influenced me, and I would like to think I have been able to influence (reciprocate) or add to their success.   There is no rule book or manual in property, but you do need the ability and scope to think laterally and creatively.
Where would you invest a spare $750,000?
In the south Sydney industrial market. This is one of the most "bulletproof markets", but like any market, you need to understand what the drivers are.
Which football team do you support?
Sydney FC, Parramatta Eels, Waratahs, Sydney Swans.
What’s your favourite app or techno gadget?
I am a devoted Blackberry user going against the convention of using iPhones. I am lost without it.
How do you use social media?
More so to keep in contact with overseas friends and relatives, but I’m starting to use social media professionally.
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In profile, Knight Frank’s head of industrial Eugene Evgenikos 

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The historic Lygon Street premises of Donati’s Fine Meats in Carlton has sold for $2.89 million at auction, with a private investor paying nearly $1.4 million above pre-auction expectations for the trophy inner-Melbourne retail asset.
<img src="/images/stories/2012/10/donatis.jpg" width="470">
The price equates to $38,533 per square metre for the 75-square-metre two-level <a href="/news">Carlton</a> premises, a yield of just 2.31%.
The 402 Lygon Street building was up for sale for the <a target="_blank" href="https://www.propertyobserver.com.au/retail/historic-lygon-street-butcher-prepares-to-meat-the-market-at-auction-with-%2415-million-plus-hopes/2012101657212">first time in 100 years</a>, having operated as a butchery since the early 1900s, with Donati's based there since 1972. 
Colliers International agent Jeremy Gruzewski, who led the campaign alongside colleague Tom Noonan, admitted the price paid made little financial sense, with emotion driving the bidding.
“People have been ringing me and asking if it was a misprint,” he told Property Observer soon after the October 30 auction.
<img src="/images/stories/2012/10/donatisflicker.jpg" width="470">
The two most recent sales on Lygon Street were the 84-square-metre premises of Intrepid Travel at 231 Lygon Street, which sold for $1.9 million in July last year equating to $22,619 per square metre and a passing initial yield of 3.62%, and 163-165 Lygon Street, the premises of Casa Del Gelato, which sold for $2.8 million ($10,294 per square metre) in June 2010 on a yield of 3.48%.
In absolute terms, the highest price paid since August 2008 was $3.71 million paid for 350 Lygon Street, a two-level corner site in November 2009 measuring 173 square metres, equating to $21,445 per square metre. The shop is leased to national hamburger chain Grill’d.
The sale of the butchery premises is only the eighth sale of retail premises on Lygon Street in the last four years, reflecting just how tightly held the retail strip is, with the low yields reflecting the attraction of owning property on one of Melbourne’s most famous suburban retail strip, which is lined with Italian restaurants, ice-cream shops and cafes.
Gruzewski says emotions were the overriding factor driving the record price per paid per square metre for the butchery, which attracted a lively, 60-strong crowd and an opening bid of $1.4 million.
In total there were almost 80 bids, with three parties pushing the price upwards, before finally selling to the unnamed high-net-worth investor.
“The property generated in excess of 70 enquiries from owner-occupiers and investors looking for a well-located retail investment,” says Noonan.
“There is an enormous level of demand for retail properties of this size and within close proximity to the CBD."
Gruzewski says the purchaser plans to own it as an investment in the medium term.
“This sale re-enforces the strength of the Melbourne retail investment market, which has been driven by investors wanting to secure well-located retail properties under $3 million.
“402 Lygon Street was further evidence that there is a continued strong demand from investors to secure city fringe freehold assets with genuine value add potential.
“A sale of this magnitude begs a couple of questions. Firstly, is the confidence of Melbourne investors on the rise, and secondly, is the imminent interest rate reduction making investors look to old fashioned ‘bricks and mortar’ to place their cash? We certainly think so, on both fronts.”
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Lygon Street premises of Donati's Fine Meats smashes records with emotion-driven $2.89 million sale at auction

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A speech last night by RBA deputy governor Philip Lowe has reduced what seemed like a sure bet cash rate cut on Melbourne Cup Day to only a "50-50 call", according to Commonwealth Bank chief economist Michael Blythe.
Blythe says the overall impression of the speech is that “lower interest rates may be required at some point but there was no strong signal that the Bank was preparing to cut rates at next week’s board meeting”.


“We still favour a Melbourne Cup Day rate cut but it is increasingly looking like another 50?50 call,” he added.
Speaking at the Australasian Fixed Income Conference, where he gave an overall positive assessment of Australia’s stronger position relative to Asia and other advanced economies, Lowe said “lower-than-average interest rates” were providing “some support to demand in the economy”.
He said there was also “some sign that they have led to a slight improvement in the property market, although there has been little change in the appetite for debt”.
Blythe highlighted the remarks made by Lowe comparing Australia’s high interest rate settings relative to other countries.
Lowe says the main reason for these higher settings is that “the rate of return on new investment in Australia is higher than in many other countries, as evidenced by the high level of investment”.
“The very low interest rates in many other economies should not be seen as a good thing or something to aspire to. They reflect those countries' difficult economic circumstances, and particularly the low risk-adjusted returns available on new investment,” Lowe says.
Blythe says the case for lower rates at some point revolves around “weak global growth, the global uncertainties impacting on household and business decisions and the asset allocation decisions triggered by quantitative easing (QE) measures that are putting upward pressure on exchange rates in non?QE economies.
“The deputy governor explicitly noted that high exchange rates in some countries “should not come as a surprise” but could be “uncomfortable” for those involved.”
In his speech Lowe noted that “uncertainty stemming from problems in the advanced economies" was having an impact on confidence in Australia.
“It has adversely affected confidence and has led to the deferral of some decisions and more cautious behaviour.
But he also says that subdued confidence levels have “domestic roots”
“Employment growth, the rate of asset price increases and consumption growth are all lower than they were over the decade to the mid-2000s," said Lowe.
“During this earlier period the outcomes in these areas were very strong as the economy adjusted to low inflation and the increased availability of credit.
"But this adjustment is now complete, and the return to more normal patterns has come as a disappointing surprise to many who thought that the previous outcomes were the norm.
"This gradual realisation that the future is likely to be different from the past is an important factor weighing on sentiment in Australia,” Lowe says.
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Melbourne Cup Day rate cut now only a '50-50 call' following deputy RBA governor speech: Michael Blythe

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Commonwealth Bank chief executive Ian Narev has defended the bank’s decision not to pass on full rate cuts to borrowers, who he says are using lower mortgage rates to pay off their mortgages faster rather than take on more debt.
As a consequence, the bank does not expect interest rate cuts to stimulate a recovery in the housing market in the short term.
The Commonwealth Bank passed on 20 out of 25 basis points of the October RBA cash rate cut and has passed on 131 out of 150 basis points cut from the cash rate since November last year. The average for the major banks is 116 basis points.
Speaking at the bank’s AGM yesterday and on the back of full year profits in excess of $7 billion, Narev said it did not make a difference if the bank passed on 25 basis points, 20 or 18, as the reductions were being used to “accelerate repayment of debt”.
Also speaking at the AGM, Commonwealth Bank chairman David Turner said rate cuts should not be expected to stimulate the housing market in the near term.
"The rule of thumb is in an economy that's buoyant, an interest rate cut doesn't feed through to house-buying activity for about 18 months," he said.
In its annual report, the Commonwealth Bank describes the 2012 financial year as “another challenging one for financial institutions in general, and for the Group in particular”.
“The macroeconomic environment has again been dominated by uncertainty and volatility in global financial markets.
“While the fundamentals of the Australian economy appear sound, a lack of corporate and consumer confidence has dampened demand for credit and seen our customers move to strengthen their balance sheet as they remain cautious about the immediate outlook," says the annual report.
However Narev said the bank not passing on rate cuts in full has not been a factor in the current consumer caution and unwillingness to take on more debt.
He says he expects demand for credit to remain subdued in the current financial year with higher savings rates and more nervousness regarding investments.
Overall, Narev said the Commonwealth Bank was pleased with the performance of the group “by our financial performance and our performance for our customers and our dividend stream for shareholders.”
“Particularly in the environment we are operating in at the moment, confidence for a financial institution is critical," he said.
Narev said while short-term performance was important, customers and shareholders relied on the bank to prosper for the long term.
He said the bank remaining customer-focused was key to building long-term value
In this regard, Narev pointed to the September Roy Morgan survey, which has customer satisfaction with the Commonwealth Bank at the highest it has been for the history of the survey.
The annual report notes that customer deposits make up 62% of total funding and says that funding costs were “elevated” in the past financial year.
“Customer deposits increased to $379 billion as at 30 June 2012, up $30 billion over the prior year. Customer deposits represented 62% of the Group’s total funding source at 30 June 2012, up from 61% in the prior year,” says the annual report.
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Rate cuts won’t stimulate housing market whether passed on in full or not: CBA chief executive Ian Narev

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The sale of detached homes hit a 18-year low in September, according to the latest HIA survey of Australia's 100 largest volume builders.
New home sales of around 5,200 in September were 17.3% lower than a year ago and have fallen at a double-digit annual rate for the past 10 months, notes CommSec chief economist Craig James.
Sales fell 3.7% in September, reflecting a fall of 3.5% in the persistently weak detached housing segment and a 4.2% decline in the more volatile multi-unit market.
<img src="/images/stories/2012/10/hiaoct30.gif">
The number of seasonally adjusted new detached house sales fell by 1.6% in New South Wales, 6.7% in Victoria, and 3.5% in Queensland, but increased by 2.8% in South Australia and were up by 3.1% in Western Australia.
The drop in NSW new home sales may partly reflect first-home buyers waiting for the new $15,000 grant available for those building or buying a new home that only kicked-in on October 1.
A similar $15,000 grant was available for Queenslanders first-home buyers mid-way through September.
Commenting on the latest figures, James says interest rates have fallen sharply over the past year but there has been a “decidedly muted response by the new home market”.
“Australia’s population is growing, driven by migration, while housing affordability is the best in a decade and the rental market continues to tighten.
“But despite an apparent increase in the underlying demand for homes, new home construction is mired at 15-year lows.
 “So what gives? Well, in large part it is the worldwide trend for “Emerging adults” (largely Generation Y) to stay home with their parents for a longer period rather than moving out with friends or getting married.
“It is estimated that 70% of 18- to 30-year-olds in Italy still live at home, and while the trend is happening also in Australia, there are no formal estimates.
James says state governments are “actively attempting to lift construction via grants and stamp duty concessions directed to new home purchase or construction.
“But to date, the attempts aren’t showing up in the data.”
James says building-dependent companies will continue to experience challenging conditions over the next six months and expects the RBA to cut the cash rate on November 6, Melbourne Cup Day.
HIA chief economist Dr Harley Dale says the persistent weakness in new home sales in 2012 “reflects another factor conspicuous in its persistence this year – a dire lack of confidence towards housing”.
“Interest rates have come down since November 2011 and there is a recognition that the home-buying environment has improved in 2012. However, households remain reticent to actually make a decision to buy. This situation is especially evident in the new home building sector where excessive taxation instills a bias against new housing relative to existing property,” says Dale.
“Interest rate cuts should help foster a recovery in new home sales in the December 2012 quarter, along with new home incentives for first time buyers in three states and a nascent recovery gathering legs in Western Australia.
“The Reserve Bank of Australia needs to play its part by cutting rates again next Tuesday – a renewed easing of rates in October that is not followed up could add to household uncertainty and, perversely, further damage confidence.”
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New house sales slump to 18-year low in September: HIA

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Receivers have taken charge of the Campbelltown Square shopping complex in Sydney’s outer west, owned by a subsidiary of ASX-listed commercial property group Metroland Australia, which recently exited administration.
The shopping centre at 218-240 Queens Street near the Campbelltown train station was acquired by Metroland in August 2006 for $14.8 million and transferred to its wholly owned subsidiary Global Real Estate Assets Corporation in May 2007 with a loan provided by Colonial First State.
It covers 5,380 square metres of lettable area and was earning gross income of $1.2 million when acquired in 2006. Current real estate listing show<a href="https://www.realcommercial.com.au/property-retail-nsw-campbelltown-500093686" target="_blank"> two retail shops </a>available for lease covering up to 1,065 square metres with no prices given.
It has been placed in the hands of receivers Michael Jones of Jones Partners by Perpetual Nominees Limited acting as custodian for Colonial First State Wholesale Pooled Mortgage Fund (CFS), the mortgagee for the shopping complex.
Metroland was placed in the hands of administrator David Levi at the end of August.
A creditors’ reported issued by Levi on September 26 shows that Metroland had a $10.4 million liability to Perpetual Nominees as custodians of CFS.
Conditional contracts of sale for the shopping centre were exchanged in August at a price of $9.025 million.
The sale of the complex, which is conditional on a subdivision currently in progress, will not satisfy in full the estimated claim of CFS, resulting in a short fall of $1.4 million should the sale proceed to settlement.
In its June 2012 full-year results, Metroland reported an impairment expense of $3.8 million in relation to the condition sale of the shopping centre.
This was to reflect the conditional exchange of contracts at less than the book value to meet the “property financiers repayment demand on the bank loan which is secured over the Campbell town property”.
Metroland reported a net loss of $10.8 million for the financial year ending June 30 and noted with regret that the property market “especially in the retail sector has further deteriorated thus reducing further the values of the assets of the company".
Metroland exited administration on October 8 when it entered into a deed of company arrangement (DOCA) with the company placed back under the control of its directors.
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Campbelltown Square shopping complex placed in hands of receivers over loan shortfall

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Penrith, on the western outskirts of Sydney, is emerging as an investor hotspot offering rental yields in excess of 6% with local council plans to encourage more high-density residential construction, according to a new report by PRDnationwide research analyst Oded Reuveni-Etzioni.
The report finds that rents have been rising strongly over the past five years with the median rent for a three bedroom house up 44% in the suburbs comprising post code 2750 (Emu Heights, Emu Plains, Jamisontown, Leonay, Penrith, Penrith Plaza and Penrith South) and up 40% in the suburbs in postcode 2747 (Cambridge Gardens, Cambridge Park, Claremont Meadows, Kingswood, Llandilo, Shanes Park, Werrington, Werrington County and Werrington Downs).
Rents for apartments, which make up a smaller but rising share of the market (about 25% of dwellings) have risen even more strongly over this period up by 62% and 59% increase in the 2750 and 2747 postcodes respectively.
Current property listings show yields of 6% and more are achievable.
A <a href="https://www.realestate.com.au/property-townhouse-nsw-kingswood-111759339">three-bedroom townhouse</a> in Kingswood, currently under contract from Greg Robertson of Property Central is priced between $259,000 and $289,000.
Robertson says the property will rent for around $330 per week, equating to yield of between 6.63% and 5.94% at these two price points.
According to PRDnationwide data, units in post code 2047 rent for around $270 per week and for $308 per week in post code 2750.
Houses rent for around $375 per week.
The report finds that capital values have risen moderately over the past year to July 2012, with unit price up 1.9% to $263,000, while the median house price has increased by 3.3% to $377,000.
The results of the 2011 census shows that the Penrith LGA had a median rent of $300 per week, median weekly income of $1,398 and median monthly mortgage repayments of $1,983.
Just over a quarter (26.7%) of Penrith residents rent.
The development of Penrith as a potential investor hotspot is being supported by efforts of the Penrith City Council, which aim to increase Penrith population by allowing higher density construction around transportation hubs.
Penrith is about 50 kilometres west of the Sydney CBD and connected by two CityRail lines. A journey from Penrith to Sydney’s Town Hall station takes just over an hour.
“Ultimately, the local government aims to create 10,000 new jobs in the CBD. Penrith urgently requires an urban consolidation policy to streamline the development of large residential projects around the CBD to support the increase in employment,” says the report.
“Buyer activity has been steadily increasing as investors take advantage of rent returns which in many cases exceed 6%. The last time we had returns this strong was back in the late 1980s. At the peak of the market in 2003 the returns were as low as 3%,” says PRDnationwide Penrith principal Darren Latty.
However, he warns that Penrith "urgently requires an urban consolidation policy to streamline the development of large residential projects around the CBD to support the increase in employment"
Overall, he says the outlook for the region is positive.
“Increased activity, above average rent returns, affordable housing, record low unemployment and low interest rates are all great indicators. These conditions are coupled with nearly nonexistent building activity within the CBD areas. Investors should be getting as excited as we are,” he says.
The report notes that developers often find the area inhibitive for investment, due to low selling prices, the high cost of construction and extended approval periods eroding profit margins.
However, developers now expect firm demand for centrally-located units expected due to an improvement in buyers’ confidence and the recently introduced $!15,000 state government grant for first-home owners building their first homes.
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Penrith offering yields of 6% and strong demographics to tempt investors

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Lenders continue to cut their fixed-rate home loans as anticipation builds that the RBA may cut the cash rate to 3% on Melbourne Cup Day on Tuesday.
Yesterday Credit Union Australia (CUA), the nation’s biggest customer-owned lender, dropped its one, two and three-year fixed rate home loans to 5.3% following moves by other lenders throughout the month.
Mozo product data manager Peter Marshall told Property Observer earlier this month that fixed rates <a href="/news">“still have some way to fall”</a> and have not matched the falls in variable rates since the RBA starting cutting the cash rate in November last year.
This follows Community First Credit Union and Greater Building Society both offering one-year fixed rate home loans at 4.99%.
The following results are based on advertised mortgage rates listed by <a target="_blank" href="https://www.ratecity.com.au/">ratecity.com.au</a>, <a target="_blank" href="https://mozo.com.au/">Mozo.com.au</a> and <a target="_blank" href="https://www.infochoice.com.au/">infochoice.com.au</a> as of October 30:
Lowest variable rate offerings:
<table border="1" cellpadding="0" cellspacing="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">
Dream Catcher
</td>
<td valign="top" width="97">
5.42%
</td>
<td valign="top" width="116">
5.45%
</td>
</tr>
<tr>
<td valign="top" width="134">
UBank
</td>
<td valign="top" width="124">
UHome Loan (for refinancing)
</td>
<td valign="top" width="97">
5.47%
</td>
<td valign="top" width="116">
5.47%
</td>
</tr>
<tr>
<td valign="top" width="134">
Nationwide Mortgage
</td>
<td valign="top" width="124">
True Save Home Loan
</td>
<td valign="top" width="97">
5.47%
</td>
<td valign="top" width="116">
5.47%
</td>
</tr>
<tr>
<td valign="top" width="134">
Mortgage View
</td>
<td valign="top" width="124">
Pro Pack
</td>
<td valign="top" width="97">
5.47%
</td>
<td valign="top" width="116">
5.49%
</td>
</tr>
</tbody></table>
Lowest one-year fixed-rate offerings
<table border="1" cellpadding="0" cellspacing="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">
Greater Building Society
</td>
<td valign="top" width="123">
Ultimate home loan
</td>
<td valign="top" width="95">
4.99%
</td>
<td valign="top" width="114">
6.02%
</td>
</tr>
<tr>
<td valign="top" width="137">
Community First Credit Union
</td>
<td valign="top" width="123">
12 month fixed
</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
</td>
<td valign="top" width="123">
Fixed rate &gt;75 LVR
</td>
<td valign="top" width="95">
4.99%
</td>
<td valign="top" width="114">
5.98%
</td>
</tr>
<tr>
<td valign="top" width="137">
UBank
</td>
<td valign="top" width="123">
UHome Loan (for refinancing)
</td>
<td valign="top" width="95">
5.03%
</td>
<td valign="top" width="114">
5.4%
</td>
</tr>
</tbody></table>
Lowest three-year fixed-rate offerings
<table border="1" cellpadding="0" cellspacing="0" width="470"><tbody>
<tr>
<td valign="top" width="133">
Provider
</td>
<td valign="top" width="133">
Loan name
</td>
<td valign="top" width="97">
Rate
</td>
<td valign="top" width="108">
Comparison rate*
</td>
</tr>
<tr>
<td valign="top" width="133">
UBank
</td>
<td valign="top" width="133">
Three year fixed
</td>
<td valign="top" width="97">
5.13%
</td>
<td valign="top" width="108">
5.40%
</td>
</tr>
<tr>
<td valign="top" width="133">
Pacific Mortgage Group
</td>
<td valign="top" width="133">
Three year fixed
</td>
<td valign="top" width="97">
5.19%
</td>
<td valign="top" width="108">
5.43%
</td>
</tr>
<tr>
<td valign="top" width="133">
HSBC
</td>
<td valign="top" width="133">
Three year fixed
</td>
<td valign="top" width="97">
5.29%
</td>
<td valign="top" width="108">
6.15%
</td>
</tr>
<tr>
<td valign="top" width="133">
CUA
</td>
<td valign="top" width="133">
Residential Fixed Three years
</td>
<td valign="top" width="97">
5.30%
</td>
<td valign="top" width="108">
5.9%
</td>
</tr>
</tbody></table>
*A comparison rate includes both the interest rate and the fees and charges relating to a loan, combined into a single percentage figure.
For information on refinancing, watch our free webinar <a target="_blank" href="/news">Refinancing and the Interest Rates Riddle</a>
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Lenders cut fixed rates: guide to the lowest rate home loan offerings fixed and variable as of October 30

An entity directed by HSN's Rafi Assouline and Rebel Property's Allen Linz has filed plans for an impressive new precinct in Woolloomooloo.

The major mixed-use development would transform a prominent William Street site into a new residential village anchored by affordable housing and a large public park.

The proposal, submitted as a State Significant Development Application, covers 164-172 and 174-194 William Street, a 6,398 sqm site between Forbes Street and Dowling Street on the southern edge of Woolloomooloo.

Designed by fjcstudio in collaboration with Bangawarra, Studio Bright and Tribe Studio Architects, the scheme would deliver 227 apartments across four residential buildings ranging in height up to 18 storeys, alongside retail space, public domain improvements and a new publicly accessible park.

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It's another design scheme for Rebel, who took <a href="https://www.apartments.com.au/news/nsw/first-look-rebel-property-group-takes-woolloomooloo-precinct-to-nsw-government">concept plans to the NSW Gov late last year</a>.

The latest plans will be a mix of 167 build-to-sell apartments and 60 affordable apartments, with the affordable housing component representing 15 per cent of the project's gross floor area. The apartment mix includes 12 one-bedroom, 53 two-bedroom, 89 three-bedroom apartments and 13 penthouses, while the affordable housing component would comprise 42 one-bedroom and 18 two-bedroom apartments.

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Rebel Property is seeking to take advantage of the NSW Government's infill affordable housing bonus provisions under the Housing SEPP, which provide additional floor space and height in exchange for the delivery of affordable housing for a minimum of 15 years. The planning pathway allows a 30 per cent increase in floor space ratio and building height where 15 per cent of the development is dedicated to affordable housing.

&nbsp;

At the centre of the development is a 1,356 sqm sunlit public park designed to become a new community gathering space at the gateway to Woolloomooloo. The park would be complemented by a network of pedestrian laneways connecting William Street with the surrounding streets, improving permeability through what is currently a largely impermeable block.

<img alt="Rebel" data-entity-type="file" data-entity-uuid="257af931-a393-4007-8c6d-7219796df58d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-12%20at%2011.20.51%E2%80%AFAM.png?VersionId=KAHy94GrhaReFsWTGDKfy39EDJ8gEEv4" />

The design team says the public domain has been heavily influenced by the site's topography and Aboriginal cultural heritage, drawing on the escarpments, gullies and landscape characteristics that historically defined the area before urbanisation. The landscape design has been developed in partnership with First Nations consultancy Bangawarra.

The project would be delivered across four separate buildings. The William Street East and William Street West buildings, designed by fjcstudio, would contain the majority of the apartments. Melbourne-based Studio Bright has designed the Forbes Street building, while Tribe Studio Architects is responsible for the Dowling Street building.

Rebel had secured approval for the concept plans late last year.

Joel Robinson

First look: HSN, Rebel, advances Woolloomooloo precinct plans

A locally heritage-listed furniture showroom on Water Street is set to become the centrepiece of a new mixed-use residential development as local developer&nbsp;<a href="https://www.apartments.com.au/developers/keylin-group">Keylin</a> seeks approval for <a href="https://www.apartments.com.au/new-apartments/lotus-on-water-street-290-water-street-fortitude-valley-qld-4006">Lotus on Water Street</a>, a 15-storey project on the Fortitude Valley side of Spring Hill.

The proposal spans 290 Water Street and 137-141 Warry Street, combining several properties into a 2,869 sqm site that sits between Fortitude Valley, Spring Hill and the rapidly evolving Victoria Park precinct. Keylin's plans would deliver 132 apartments alongside new retail, hospitality and commercial space, while retaining and repurposing the historic Brunswick Home Furnishers Showroom that fronts Water Street.

Designed by <a href="https://www.apartments.com.au/architects/jackson-teece">Jackson Teece</a>, Lotus on Water Street comprises a 12-storey residential tower rising above a three-storey podium and communal rooftop terrace. The development includes 76 apartments classified as multiple dwellings and a further 56 units proposed as short-term accommodation, designed to be flexibly used as either accommodation or permanent residences. The apartment mix comprises six one-bedroom, 54 two-bedroom and 16 three-bedroom homes.

<img alt="First look: Keylin unveils heritage-led Lotus on Water Street tower in Fortitude Valley" data-entity-type="file" data-entity-uuid="9822bb79-6c49-49c9-95ba-319e8c8d81c3" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/fortitude%20valley%20front.png?VersionId=ioW8zbN4UVebbLetTFuv92t.HkdgfR5e" />

Residents would have access to an extensive rooftop recreation level spanning more than 1,200 sqm of communal open space. Plans include a pool, gym, sauna, infrared sauna, yoga area, library, private dining room, barbecue facilities and landscaped entertainment spaces, making the rooftop the project's largest shared amenity offering.

At street level, the proposal focuses on the adaptive reuse of the heritage buildings along Water Street, where 518 sqm of retail and commercial space is planned across shop, office and food and drink outlet uses. A permeable residential lobby would be positioned between the retained heritage buildings, creating a pedestrian connection between the historic streetscape and the new tower behind.

<img alt="First look: Keylin unveils heritage-led Lotus on Water Street tower in Fortitude Valley" data-entity-type="file" data-entity-uuid="269cf3e0-7d13-48bf-a318-05a00deb5c10" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/fortitude%20valley%20podium.png?VersionId=DLXmTCLsp6GOcLpQ0h.0z7wKCw59EhN_" />

The heritage retention strategy is central to the scheme. The development application notes that the Brunswick Home Furnishers Showroom and adjoining heritage buildings will remain, with only non-significant structures on the site earmarked for removal under a previously issued Heritage Exemption Certificate. Levels one and two of the new podium are recessed behind the heritage façades to maintain their prominence within the streetscape.

Jackson Teece has drawn inspiration from the site's manufacturing history when designing the podium. The planning documents state that the façade incorporates perforated metal screening that references the woven and rattan furniture historically produced on the site. Cascading and climbing plants are integrated throughout the podium to soften the building's presentation and screen parking levels behind. The landscape strategy also informs the project's name, Lotus on Water Street, drawing on the historic Spring Hollow waterholes that once ran through Spring Hill and the blue water lilies associated with Meeanjin, Brisbane's traditional name.

The proposal also incorporates the neighbouring property at 141 Warry Street, currently occupied by a healthcare service. The existing building would remain, with nine dedicated parking spaces allocated within the new development to support its ongoing operation. In total, Lotus on Water Street proposes 117 car spaces, including 110 resident spaces and seven visitor bays, alongside 100 bicycle spaces.

<img alt="First look: Keylin unveils heritage-led Lotus on Water Street tower in Fortitude Valley" data-entity-type="file" data-entity-uuid="70cf07bc-4fd8-4e70-92dd-be8b21c4e4f0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/fortitude%20valley%20site.png?VersionId=txlxrJImM0Sm_vTzHVKh5DDUkyL_CiiA" />

The site sits within the Spring Hill East Precinct of the Spring Hill Neighbourhood Plan and is positioned around 650 metres from both Fortitude Valley Station and Exhibition Station. It is also within walking distance of the King Street precinct, Royal Brisbane and Women's Hospital, Herston Quarter and Victoria Park, which is earmarked to become a major venue precinct ahead of the Brisbane 2032 Olympic and Paralympic Games.

Planning documents describe the location as a key gateway between Spring Hill and Fortitude Valley and highlight the area's increasing importance as new transport infrastructure and Olympic-related investment reshape Brisbane's inner north. The development team argues the project will contribute additional housing supply while activating a section of Water Street that has historically received less investment than other parts of the Valley.

Keylin has become increasingly active across Brisbane and southeast Queensland, assembling sites in strategic inner-city locations. They are currently selling and delivering <a href="https://www.apartments.com.au/new-apartments/oria-spring-hill-447-gregory-terrace-spring-hill-qld-4000">Oria Spring Hill</a>, just over 140 apartments due for completion in 2027.

Keylin plans heritage-led Lotus on Water Street apartment development in Fortitude Valley

Roseville is poised for a wave of new apartment development following the NSW Government's rezoning of land around Roseville Station under its Transport Oriented Development program.

The new planning controls have unlocked significant development potential within walking distance of the station, with a number of sites expected to be amalgamated and redeveloped in the coming years as developers seek to take advantage of the increased density allowances.

One of the more restrained developments in the precinct, and set among the first to be delivered having commenced well before the recent changes, is Hyecorp's Juliet. The boutique apartment project is already well under construction and remains on track to welcome residents by the end of the year, offering a markedly different proposition to many of the larger-scale developments now likely to emerge across the suburb.

[smartcode_project:default project_id=7395 project_image_fid=278194]

<a href="https://www.apartments.com.au/new-apartments/juliet-roseville-64-pacific-highway-roseville-nsw-2069">Juliet</a> will comprise just&nbsp;34 one-, two-, and three-bedroom apartments opposite Roseville Station. For Hyecorp, which has delivered projects across Sydney's Lower North Shore for more than three decades, Roseville presented a rare opportunity to address a growing gap in the market.

"<a href="https://www.apartments.com.au/developments/roseville-nsw-2069">Roseville</a> has long been one of the North Shore's most tightly held and desirable suburbs, offering a unique combination of village charm, established greenery, excellent transport connections, and proximity to some of Sydney's best schools and lifestyle amenities," Hyecorp said.

"We recognised a growing demand from local homeowners seeking to downsize without leaving the community they have built their lives around. The location presented a rare opportunity to create homes that cater specifically to that buyer profile."

[smartcode_project:default project_id=7395 project_image_fid=278196]

The six-level development has been designed by <a href="https://www.apartments.com.au/architects/pbd-architects">PBD Architects</a> as a collection of residences that feel more like homes than apartments. The brief centred generous floorplans, abundant natural light, quality finishes, and strong connections to outdoor space.

PBD Architects drew inspiration from Roseville's established garden suburb character, creating a building that sits comfortably within its surroundings rather than dominating them. The architecture incorporates natural materials, soft forms, layered landscaping, expansive balconies, and generous setbacks to strengthen the connection between residents and the suburb's leafy environment.

"The focus was on designing spacious, house-like residences for discerning owner-occupiers and downsizers who wanted to remain on the North Shore without compromising on comfort, privacy, or design," PBD said.&nbsp;

"Every apartment was to feel considered, timeless, and highly functional."

[smartcode_project:default project_id=7395 project_image_fid=278195]

Inside, residences feature engineered timber flooring, stone kitchen benchtops and splashbacks, integrated Fisher &amp; Paykel appliances, ducted air conditioning, and large outdoor entertaining areas designed to take advantage of district and treetop views.

Residents will also have access to a rooftop barbecue and lounge area, alongside practical amenities including parcel lockers, EV charging capability, bicycle storage, a dog wash bay, and a basement car wash facility.

The majority of purchasers so far have been local owner-occupiers from Roseville, Lindfield, Chatswood, Killara, and the broader Upper North Shore, many of whom are transitioning from larger family homes.

"Buyers are looking for spacious, house-like apartments that allow them to downsize without feeling like they are sacrificing comfort or functionality," Hyecorp noted.

"They value large kitchens, generous living areas, ample storage, quality finishes, secure parking, lift access, and low-maintenance living."

[smartcode_project:default project_id=7395 project_image_fid=278204]

Juliet sits directly opposite Roseville Train Station and within walking distance of Roseville Village, while Chatswood's retail and dining precinct is only minutes away. The development is also surrounded by some of Sydney's most established schools, including Roseville College, Ravenswood, Pymble Ladies' College, and Knox Grammar, as well as nearby parklands and golf courses.

Juliet is currently more than 75 per cent sold ahead of its anticipated completion in late 2026.

[smartcode_project_cta:default project_id=7395]

Juliet to sit quietly amid Roseville apartment boom

Sherpa Property Group has unveiled the third instalment of its Flourish series, securing full approval for the two-tower, $500 million Flourish Soleira development in Palm Beach.

<a href="https://www.apartments.com.au/new-apartments/flourish-soleira-1150-1154-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a> will rise from a prominent site in the commercial heart of Palm Beach, the long-time home of Cash Converters and a range of local retailers.

The project will introduce a new retail and dining precinct at ground level, beneath 286 apartments.

[smartcode_project:default project_id=150017 project_image_fid=370959]

“We’re very committed to not only providing affordable residential offerings that are much needed in Palm Beach, but also delivering a vibrant new commercial heart that complements the extraordinary growth of the southern Gold Coast,” Sherpa Property Group founder Christie Leet said.

The development will sit under Sherpa's Flourish brand, which is aimed at providing a pathway into the beachside suburb for locals, first-home buyers and downsizers. In a move designed to assist first-home buyers entering the market, Sherpa has reserved all one and two-bedroom, one-bathroom apartments exclusively for eligible first-home buyers.

[smartcode_project:default project_id=150017 project_image_fid=370964]

“Our vision through Flourish is to create a vibrant retail and lifestyle focal point within the Palm Beach centre zone, delivering thriving communities underpinned by lifestyle-rich locations,” Leet said.

“So far, Flourish has been an incredible success, and we hope to carry this momentum as we progress the next two Flourish projects in Palm Beach.”

[smartcode_project:default project_id=150017 project_image_fid=371430]

Located across 1150-1164 Gold Coast Highway and 3 Sixth Avenue, the development will comprise two towers. The northern tower will deliver 154 apartments, while the southern tower will add a further 132 residences, helping address ongoing demand for new apartments in the tightly held coastal suburb.

Flourish Soleira will also feature the most extensive rooftop amenity offering ever delivered in Palm Beach.

The two towers will be connected by a skybridge, with residents gaining access to a rooftop recreation deck featuring a full-width swimming pool, hot and cold plunge pools, wellness spaces, a gymnasium, private dining facilities, massage treatment rooms, barbecue areas, a basketball court, golf simulator, indoor and outdoor dining spaces, sun lounges and extensive landscaping.

LPS Group is expected to start construction later this year.

Sherpa is already well advanced on construction of its debut Flourish project, Flourish Amargo, located just around the corner from Soleira. Meanwhile, Flourish Oasis, positioned opposite Amargo, recently commenced construction and has nearly sold out its collection of 47 apartments.

[smartcode_project_cta:default project_id=150017]

Sherpa unveils $500m mixed-use Palm Beach precinct, Flourish Soleira

Are mortgage holders set to get a reprieve from the RBA in 2026?

Big Four bank NAB believes so. They are now expecting the next move from the RBA to be a cut, rather than a hike, which they had pencilled in for August. They are unsure of the timing of the cut however, they note in their latest&nbsp;NAB Economics RBA Watch.

NAB Chief Economist, Dr Sally Auld, said recent data suggests the economy has lost momentum and the outlook for rates has shifted, noting that the broader economic backdrop has changed since earlier in the year.

“The next move in the cash rate is likely to be down, but the timing is uncertain," Dr Auld said.

"In February, growth was above trend, the economy was operating above capacity and there was uncertainty over the restrictiveness of rates. None of these conditions exist today,” she outlined.

Dr Auld said recent data pointed to softer momentum across the economy while acknowledging that at the same time, uncertainty remains a key feature of the outlook.

“Both Q1 GDP data and the NAB business survey suggest momentum in the economy has slowed, meaning that growth has likely peaked for the cycle. That said, we are cognisant there is still considerable uncertainty around the outlook, both with respect to activity and inflation.”

Dr Auld said inflation risks and labour market outcomes would be important to watch.

“On the prices side, we are still forecasting above target core inflation through to mid-2027. Margins will compress and weaker labour market outcomes are a risk.”

She said tighter financial conditions are expected to weigh on housing and activity.

“Tighter financial conditions will be reflected in a slowing in house price growth and housing credit growth. In summary, we have greater conviction that the next move in rates is down, but less conviction on the timing.”

Larry Schlesinger

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