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The Reserve Bank plans to introduce new reporting requirements for lenders that issue residential mortgage-backed securities (RMBS) to investors as the Australian securitisation market show more positive signs of a gradual recovery.
In his address to Australian Securitisation Forum in Sydney yesterday RBA assistant governor Guy Debelle said RMBS issuance in the year to date had totalled $10 billion.
“By way of comparison, in the second quarter of 2007, at its peak, issuance amounted to $25 billion,” he said.
The RMBS market was heavily used by non-bank lenders and other smaller lenders before the GFC to access cheap mortgage funding, with tranches of mortgages securitised and sold to both local and offshore investors.
But the RMBS market froze following the GFC as offshore investors demanded higher returns to compensate for the perceived higher risk, spooked by sub-prime crisis in the US.
Since then the Australian market has been recovering gradually with the help of the Australian Office of Financial Management, which has acted as a cornerstone investor on many transactions to reassure investors.
The graph below, presented by Debelle, shows how the market slumped from annual RMBS issuance of around $40 billion in 2007 to just over $10 billion in 2008, but has risen since then.
<img src="/images/stories/2012/10/rbaoct231.gif">


<hr class="system-pagebreak">
Under the new draft quarterly reporting requirements, the RBA will require that “issuers provide the Reserve Bank and the broader public with more comprehensive and up-to-date information on the securities”.
The new information requirements cover both transaction-related data as well as information on the underlying assets, such as anonymised loan-level data.
Industry comment on the new requirements is been sought by the RBA until December 28, with a <a href="https://www.rba.gov.au/media-releases/2012/mr-12-31">full breakdown of the draft proposal provided on the RBA website</a>.
“When the templates are finalised, an implementation period will apply for RMBS to give issuers the time to develop the reporting systems necessary to comply with the new reporting requirements,” says the RBA.
Commenting on the initiative and the improvement in the market, Debelle said that in Australia, RMBS issuance in 2012 had recovered to the point “where new issues are replacing maturing issues so the stock outstanding is no longer declining”.
“This year we have seen positive signs in the Australian securitised market, particularly over the past several months," he added.
“First, despite the periodic bouts of turmoil in offshore markets, there has been a steady flow of new issues. Primary spreads have gradually tightened this year and a number of deals have been fully placed with external investors (that is, no tranche has been retained by the issuer), including junior tranches.
“More recently, several issues have been completed with little or no support from the AOFM due to strong private investor demand. And, of course, the collateral underlying Australian asset-backed securities (ABS) continues to be of high quality, with arrears rates on Australian mortgages remaining low,” he said.
Debelle said the new information requirements “should not only benefit the Reserve Bank in assessing the quality of the securities provided to it as collateral, but also be of benefit to the market as a whole”.
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lschlesinger-FZcF9M3vE6

RBA to introduce new reporting requirements for residential mortgage-backed securities 

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The Brisbane residential market slipped further into undersupply in the September quarter as the vacancy rate tightened from 2.1% to 1.7%. according to the latest data from Real Estate Institute of Queensland (REIQ).
A balanced market between landlords and renters is said to exist at a vacancy rate of 3%.
In the Brisbane suburbs, the rental vacancy rate tightened noticeably from 2.4% to 1.9% while in the already tightly held inner Brisbane market (within five kilometres of the CBD), the vacancy rate fell from 1.6% to 1.5%.
<img src="/images/stories/2012/10/reiqoct23.gif">
Property managers attributed the further tightening in the inner-Brisbane market to slower market activity over the three-month period, with tenant interest highest for new properties.
In the suburbs, estate agents attributed the fall in vacancy rates mostly to do with a lack of buying activity from investors as well as some investors opting to sell their properties instead of renting them out.
The tightening of the rental market extended into the outer reaches of the Brisbane market, with the Brisbane surrounds, which includes <a target="_blank" href="/news">Ipswich</a>, <a target="_blank" href="/news">Logan</a>, Moreton Bay and Redland City, posting a vacancy rate of 2.2%  – down from 2.7% at the end of June.
REIQ chief executive Anton Kardash says vacancy rates are continuing to trend into undersupply territory as investor activity slowly swings back into life.
REIQ analysis of ABS data shows there were about 3,900 dwellings financed to Queensland investors in August – up 19% on the same period last year – but still well below the historical figure of 5,000 dwellings financed per month.
‘‘The rental market across Queensland has been constricted for more than two years now,’’ Kardash says.
‘‘The reasons for this have been the low numbers of investors in the marketplace as well as the generally slow property sales market over the period.
‘‘With the reduction in the numbers of properties being added to the rental pool, we are seeing more demand for a much smaller supply of properties.’’
The Gold Coast posted a vacancy rate of 3.5% – an improvement on 4% in June, while on the Sunshine Coast the vacancy rate tightened from 3%to 2.5%.
On the Gold Coast, the REIQ says demand is predominantly for houses over units, while higher-end properties are also doing well.
“The majority of rental properties [on the Sunshine Coast] are taking one to two weeks to relet and are attracting between two and five applicants,” says the REIQ.
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Brisbane vacancy rate tightens to 1.7% as investors hold back or sell: REIQ

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Households in Dutton Park, just south of the Brisbane CBD, are spending more than half (54%) of their income on repaying their mortgage, according to analysis of census 2011 data by Brisbane-based firm Resolution Research.
Borrowers are said to be in mortgage stress and at higher risk of defaulting on their mortgage if they spend more than a third of their household income on making monthly mortgage repayments.
Households in <a target="_blank" href="/news">Dutton Park</a>, about four kilometres south of the Brisbane CBD, earn around $4,500 per month and spend nearly $2,200 of this on servicing their mortgages, according to 2011 census data.
This is a 38% increase on the $1,600 they spent on mortgage repayments, according to the 2006 census.
Over the same period, household income has not kept pace with increasing mortgage repayments – five years ago monthly income was just under $3,950, meaning household income has risen only 14% between 2006 and 2011.
Diana Howes, managing director at Resolution Research, says Dutton Park is an example of residents being willing to make sacrifices on big ticket items to be able to afford to live in the suburb.
"Dutton Park is very unique suburb being just a five minute drive to CBD with both city and river views and full of character housing that can't be redeveloped.
"There have been very few changes in its dwelling typology landscape.
"It's a very constrained supply environment – and one of the most desirable suburbs to live in the city."
Howes says Leighton Properties' development of the master-planned Boggo Road Urban Village alongside the heritage-listed Boggo Road Gaol has stimulated price growth.
The median house price in Dutton Park is $745,000 compared with $548,000 in 2007, an increase of 36%, according to RP Data.
Using the same census data, renters pay around $240 per week ($1,080 per month), suggesting renting in Dutton Park is far less of a burden on household finances.
However,  more recent rental data compiled by RP Data suggests rents have risen rapidly in Dutton Park since the census and have almost doubled to $475 per week.
Across Brisbane, Resolution Research found that nearly one in two (49.2%) Brisbane households under or on the verge of household stress spending between 30 and 39% of their median household incomes on mortgage repayments.
This ratio is matched in the sought-after inner-Brisbane market, currently the focus of dozens of new apartment projects.
Mortgage stress is high in <a target="_blank" href="/news">Woolloongabba </a>(44% of household income goes to repaying the mortgage) followed by <a target="_blank" href="/news">St Lucia</a> (41%).
Other mortgage-stressed inner-city suburbs include <a target="_blank" href="/news">South Brisbane</a>, <a target="_blank" href="/news">Hamilton</a>, <a target="_blank" href="/news">Fortitude Valley</a> and <a target="_blank" href="/news">New Farm</a>.
Howes believes that the current definition of housing stress needs to be adjusted.
"Forty percent of income to service a mortgage would be a better guide," she says.
<table cellpadding="0" cellspacing="0" border="0" style="width: 470px;"><tbody>
<tr>
<td width="18%" valign="bottom">
Name
</td>
<td width="10%" valign="bottom">
Household income (w)
</td>
<td width="12%" valign="bottom">
Mortgage repayment (m)
</td>
<td nowrap width="11%" valign="bottom">
Mortgage/
Income
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Dutton  Park
</td>
<td nowrap width="10%" valign="bottom">
$1,004
</td>
<td nowrap width="12%" valign="bottom">
$2,167
</td>
<td nowrap width="11%" valign="bottom">
54%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
West End
</td>
<td nowrap width="10%" valign="bottom">
$1,485
</td>
<td nowrap width="12%" valign="bottom">
$2,597
</td>
<td nowrap width="11%" valign="bottom">
44%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Woolloongabba
</td>
<td nowrap width="10%" valign="bottom">
$1,330
</td>
<td nowrap width="12%" valign="bottom">
$2,200
</td>
<td nowrap width="11%" valign="bottom">
41%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
St Lucia
</td>
<td nowrap width="10%" valign="bottom">
$1,315
</td>
<td nowrap width="12%" valign="bottom">
$2,167
</td>
<td nowrap width="11%" valign="bottom">
41%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Kelvin Grove
</td>
<td nowrap width="10%" valign="bottom">
$1,360
</td>
<td nowrap width="12%" valign="bottom">
$2,123
</td>
<td nowrap width="11%" valign="bottom">
39%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
East Brisbane
</td>
<td nowrap width="10%" valign="bottom">
$1,494
</td>
<td nowrap width="12%" valign="bottom">
$2,167
</td>
<td nowrap width="11%" valign="bottom">
36%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Windsor
</td>
<td nowrap width="10%" valign="bottom">
$1,644
</td>
<td nowrap width="12%" valign="bottom">
$2,383
</td>
<td nowrap width="11%" valign="bottom">
36%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Highgate Hill
</td>
<td nowrap width="10%" valign="bottom">
$1,380
</td>
<td nowrap width="12%" valign="bottom">
$2,000
</td>
<td nowrap width="11%" valign="bottom">
36%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Everton Park
</td>
<td nowrap width="10%" valign="bottom">
$1,346
</td>
<td nowrap width="12%" valign="bottom">
$1,950
</td>
<td nowrap width="11%" valign="bottom">
36%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Annerly
</td>
<td nowrap width="10%" valign="bottom">
$1,385
</td>
<td nowrap width="12%" valign="bottom">
$2,000
</td>
<td nowrap width="11%" valign="bottom">
36%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Bowen Hills
</td>
<td nowrap width="10%" valign="bottom">
$1,458
</td>
<td nowrap width="12%" valign="bottom">
$2,100
</td>
<td nowrap width="11%" valign="bottom">
36%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Coorparoo
</td>
<td nowrap width="10%" valign="bottom">
$1,522
</td>
<td nowrap width="12%" valign="bottom">
$2,151
</td>
<td nowrap width="11%" valign="bottom">
35%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Albion
</td>
<td nowrap width="10%" valign="bottom">
$1,493
</td>
<td nowrap width="12%" valign="bottom">
$2,104
</td>
<td nowrap width="11%" valign="bottom">
35%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Newmarket
</td>
<td nowrap width="10%" valign="bottom">
$1,565
</td>
<td nowrap width="12%" valign="bottom">
$2,200
</td>
<td nowrap width="11%" valign="bottom">
35%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
South Brisbane
</td>
<td nowrap width="10%" valign="bottom">
$1,588
</td>
<td nowrap width="12%" valign="bottom">
$2,210
</td>
<td nowrap width="11%" valign="bottom">
35%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Hamilton
</td>
<td nowrap width="10%" valign="bottom">
$1,894
</td>
<td nowrap width="12%" valign="bottom">
$2,600
</td>
<td nowrap width="11%" valign="bottom">
34%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Fortitude Valley
</td>
<td nowrap width="10%" valign="bottom">
$1,590
</td>
<td nowrap width="12%" valign="bottom">
$2,179
</td>
<td nowrap width="11%" valign="bottom">
34%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
New Farm
</td>
<td nowrap width="10%" valign="bottom">
$1,620
</td>
<td nowrap width="12%" valign="bottom">
$2,200
</td>
<td nowrap width="11%" valign="bottom">
34%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Toowong
</td>
<td nowrap width="10%" valign="bottom">
$1,601
</td>
<td nowrap width="12%" valign="bottom">
$2,167
</td>
<td nowrap width="11%" valign="bottom">
34%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Milton
</td>
<td nowrap width="10%" valign="bottom">
$1,798
</td>
<td nowrap width="12%" valign="bottom">
$2,400
</td>
<td nowrap width="11%" valign="bottom">
33%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Red Hill
</td>
<td nowrap width="10%" valign="bottom">
$1,909
</td>
<td nowrap width="12%" valign="bottom">
$2,500
</td>
<td nowrap width="11%" valign="bottom">
33%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Kangaroo Point
</td>
<td nowrap width="10%" valign="bottom">
$1,679
</td>
<td nowrap width="12%" valign="bottom">
$2,167
</td>
<td nowrap width="11%" valign="bottom">
32%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Morningside
</td>
<td nowrap width="10%" valign="bottom">
$1,696
</td>
<td nowrap width="12%" valign="bottom">
$2,167
</td>
<td nowrap width="11%" valign="bottom">
32%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Herston
</td>
<td nowrap width="10%" valign="bottom">
$1,698
</td>
<td nowrap width="12%" valign="bottom">
$2,167
</td>
<td nowrap width="11%" valign="bottom">
32%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Spring Hill
</td>
<td nowrap width="10%" valign="bottom">
$1,613
</td>
<td nowrap width="12%" valign="bottom">
$2,058
</td>
<td nowrap width="11%" valign="bottom">
32%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Paddington
</td>
<td nowrap width="10%" valign="bottom">
$2,074
</td>
<td nowrap width="12%" valign="bottom">
$2,557
</td>
<td nowrap width="11%" valign="bottom">
31%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Balmoral
</td>
<td nowrap width="10%" valign="bottom">
$2,044
</td>
<td nowrap width="12%" valign="bottom">
$2,500
</td>
<td nowrap width="11%" valign="bottom">
31%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Fairfield
</td>
<td nowrap width="10%" valign="bottom">
$1,525
</td>
<td nowrap width="12%" valign="bottom">
$1,863
</td>
<td nowrap width="11%" valign="bottom">
31%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Auchenflower
</td>
<td nowrap width="10%" valign="bottom">
$1,795
</td>
<td nowrap width="12%" valign="bottom">
$2,167
</td>
<td nowrap width="11%" valign="bottom">
30%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Hawthorne
</td>
<td nowrap width="10%" valign="bottom">
$2,101
</td>
<td nowrap width="12%" valign="bottom">
$2,500
</td>
<td nowrap width="11%" valign="bottom">
30%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Grange
</td>
<td nowrap width="10%" valign="bottom">
$2,097
</td>
<td nowrap width="12%" valign="bottom">
$2,375
</td>
<td nowrap width="11%" valign="bottom">
28%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Norman Park
</td>
<td nowrap width="10%" valign="bottom">
$2,110
</td>
<td nowrap width="12%" valign="bottom">
$2,383
</td>
<td nowrap width="11%" valign="bottom">
28%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Ashgrove
</td>
<td nowrap width="10%" valign="bottom">
$2,083
</td>
<td nowrap width="12%" valign="bottom">
$2,340
</td>
<td nowrap width="11%" valign="bottom">
28%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Newstead
</td>
<td nowrap width="10%" valign="bottom">
$2,480
</td>
<td nowrap width="12%" valign="bottom">
$2,766
</td>
<td nowrap width="11%" valign="bottom">
28%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Bardon
</td>
<td nowrap width="10%" valign="bottom">
$2,287
</td>
<td nowrap width="12%" valign="bottom">
$2,492
</td>
<td nowrap width="11%" valign="bottom">
27%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
The Gap
</td>
<td nowrap width="10%" valign="bottom">
$1,937
</td>
<td nowrap width="12%" valign="bottom">
$2,100
</td>
<td nowrap width="11%" valign="bottom">
27%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Bulimba
</td>
<td nowrap width="10%" valign="bottom">
$2,410
</td>
<td nowrap width="12%" valign="bottom">
$2,600
</td>
<td nowrap width="11%" valign="bottom">
27%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Wilston
</td>
<td nowrap width="10%" valign="bottom">
$2,049
</td>
<td nowrap width="12%" valign="bottom">
$2,167
</td>
<td nowrap width="11%" valign="bottom">
26%
</td>
</tr>
</tbody></table>
Source: Resolution Research
Dutton Park photograph courtesy of <a target="_blank" href="https://www.flickr.com/">Flickr</a>.
This article is under dispute, <a target="_blank" href="https://www.propertyobserver.com.au/queensland/dutton-park-mortgage-stress-debate-continues-as-resolution-research-stands-by-figures/2012112157971">as property analyst Michael Matusik has disagreed with its findings.</a>
 
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Aspirational Dutton Park tops list of 19 mortgage-stressed inner-Brisbane suburbs 

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The Perth median house price was unchanged over the September quarter at $482,000, following revisions to the June median house price, with sales volumes falling marginally, according to the Real Estate Institute of Western Australia (REIWA).
The institute had previously reported an unrevised June quarter median of $475,000.
The number of properties listed for sale fell 14% during the quarter to just 10,400 listings, well below normal levels of around 12,000 properties and down by 30% over the last year.
Rents remained unchanged at a median of $450 per week, but are up more than 10% over the past 12 months.
The combination of higher rents, a low rental vacancy rate of 1.8% (and unlikely to return to a balanced market level of 3%) as well as a “surging” population continues to build pressure on prices, according to REIWA president David Airey.
Airey said that while house prices were stable, turnover had been declining with the sales volume dipping by around 4% in the September quarter.
“Turnover is still around 25% higher than the same time last year, but the trend over the last few months shows this to be slowing. It might be a seasonal dip given that the winter months are sluggish, or it might be part a longer pattern we need to monitor.
“Interestingly, sales turnover for units, apartments and villas grew by around 3% in the September quarter, but with no movement in the median price in the multi-residential segment of the market.”
According to Airey, growth in the market for units valued under $350,000 is probably a reflection of the very strong first-home buyer activity.
“First-home buyer grants for the September quarter were at their highest level since 2009, before the first-home owner grant boost ended, and now account for around 30% sales,” he says.
“These listings include some 2,100 blocks of land, many of which are in the regions of Rockingham-Kwinana, Armadale-Serpentine, Gosnells, Swan and Cockburn,” says Airey.
Land in Rockingham starts from around $180,000 for a 442-square-metre block, while a 420-square-metre block in Armadale can be picked up under $100,000.
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Perth house prices unchanged in September quarter with first-home buyer numbers rising: REIWA

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The federal government remains on track to deliver a budget surplus this financial year, giving the Reserve Bank “maximum flexibility to cut interest rates” says Federal Treasurer Wayne Swan following the release of the 2012-13 Mid-Year Economic and Fiscal Outlook (MYEFO).
He also pointed out that mortgage holders are $4,500 a year better off due to cash rate cuts by the RBA while the current Labor government has been in power.
The cash rate was at 6.75% when Kevin Rudd was sworn in as prime minister in December 2007 and is now 350 basis points lower at 3.25%.
However, the MYEFO forecasts dwelling  investment  to be flat in 2012-13, before  growing 4% in 2013-14.
“Dwelling investment declined 3.3% in 2011-12 on the back of continued weakness in the detached housing market.
“Conditions across the sector are expected to improve gradually over the remainder of 2012, consistent with the solid growth in dwelling approvals and commencements seen in the June quarter.
“The recovery is expected to gather momentum into 2013-14, driven by a pickup in homebuyer demand, improved affordability following declines in house prices over the past two years and the assumption that interest rates will remain below average across the forecast period," says the MYEFO.
Announcing the release of the MYEFO, Swan emphasised the government’s efforts to return the budget to surplus “despite worsening global conditions cutting almost $22 billion from tax receipts”.
“Returning the budget to surplus also gives the Reserve Bank maximum flexibility to cut interest rates, as it has several times in the past year.
“Interest rate cuts since the government was elected in 2007 are saving a household with a $300,000 mortgage around $4,500 every year,” said Swan.
The government is forecasting real GDP growth at around trend of 3% in 2012-13 and 2013-14, a downgrade of 0.25 percentage point in 2012-13 compared with what was in the federal budget, but follows stronger than expected growth in 2011-12.
“While global headwinds, a high dollar and changing consumer behaviour are weighing on some sectors, the Australian economy is expected to outperform every major advanced economy this year and next, with growth underpinned by strong investment, strong growth in export volumes and solid growth in consumption.
“The unemployment rate is forecast to remain low at 5.5 per cent in 2012-13 and 2013-14, in stark contrast to the stubbornly high rates of unemployment seen across the developed world.
“Both headline and underlying inflation are expected to remain well contained over the forecast period, sitting within the RBA's target band,” says Swan.
Swan also pointed out Australia remains on track to return the budget to surplus “ahead of all major advanced economies”.
“The average net debt position of the major advanced economies (G7) is projected to peak at 95%t of GDP in 2016, almost 10 times higher than the peak in Australia's net debt of 10% of GDP in 2011-12.”
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Budget surplus gives RBA 'maximum flexibility' to cut rates but dwelling investment recovery a year off

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Australian households are at their highest levels of financial confidence since May 2011, with more than three-quarters (75.8%) expecting that house prices will grow or remain stable to the end of the year, according to the latest Commonwealth Bank/Mortgage &amp; Finance Association of Australia Home Finance Index.
This is up from 67.3% in March and 53.6% in the third quarter of 2011.
The number of respondents who believe that house prices will fall in the next quarter has dropped to just one-quarter (24.2%), from 32.7% in March and 46.4% in the third quarter of 2011.
Property market sentiment is highest in Western Australia, with 42.7% of WA respondents expecting prices to be higher over the next 12 months, followed by NSW, with 31.1% expecting higher prices over this time frame, although some 22.4% of NSW respondents expect lower prices.
<img src="/images/stories/2012/10/cba.gif">Victoria is polarised, with a fairly similar proportion expecting an increase (26.8%) and a decrease (29.0%).
The weakest expectations are in South Australia, where 18.9% of South Australian respondents expect property prices to  rise in the next 12 months and nearly a third (32.9%) expecting them to fall.
The overall sentiment index increased to 90.6, up from 84.0 in March 2012 and well above a September 2011 low of 73.5 suggesting continued growth in property prices in the coming quarter.
According to the survey, the uptick in home buyers' optimism is being driven by flat property prices and continuing falls in interest rates, creating a "buyer's market".
The results are based on a survey of 1,423 people carried out by CoreData between August 9 and August 31.
“All of the signs are for a recovery of the property market, with Western Australians the most optimistic of the states, followed by people in NSW. The property market is all about confidence and the survey confirms that good times are ahead, especially as interest rates continue to fall,” says MFAA chief executive officer Phil Naylor.
The survey also found that the proportion of first-time buyer respondents who believe it is a good time to buy a new home fell from 51.7% in March to 42.4% in September, with anxiety regarding servicing a large debt if a property were purchased the primary concern of first-time buyer respondents rising to 71%, up from 69.2% in the last quarter.
Slightly more first-time buyers are placing buying a home on hold due to the payments and level of borrowing required (56.2% vs. 54%), and delaying their first-home purchase due to economic uncertainty (43.4% vs. 40.0%).
Of those first-time buyers who say it is a good time to buy, they are encouraged because prices are low and rates are down.
WA first-time buyers are the most convinced it is a good time to buy (54.3%), followed by those in Queensland (50.0%). This is a reversal on March, when WA respondents were least convinced it was a good time to buy, suggesting that they may perceive that affordability has improved.
Only around 40% of first-time buyers in NSW, Victoria and South Australia believe it is a good time to buy their first home.
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Home buyer confidence at 18-month high but first-home buyers retreat: CBA/MFAA 

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South Australian first-home buyers have the chance to secure $23,500 from the state government, provided they build a new home.
The $23,500 handout comprises a doubled first-home owner grant of $15,000 for contracts entered into on or after October 15 and up to a value of $575,000, plus a further $8,500 housing construction grant (HCG). The housing construction grant replaces the $8,000 first-home bonus grant.
The HCG is available to all builders of new homes for properties valued up to $400,000, phasing out for properties valued up to $450,000 where contracts are entered into between October 15, 2012, and June 30, 2013, inclusive.
Concessions could rise by $21, 330 if first-home buyers buy an apartment off the plan in the Adelaide CBD. This part of a new stamp duty concession scheme available on the transfer of a new CBD apartment or a "substantially refurbished apartment" for a contract entered into from May 31, 2012, to June 30, 2014, capped at stamp duty payable on a $500,000 apartment.
The reforms were announced by South Australian Premier Jay Weatherill and Treasurer Jack Snelling, who said they were “unashamedly about trying to kick start investment in new-built homes”.
In the last financial year, 8545 new homes were approved in SA, down from 12,560 in 2009-10.
Here’s a run-down of what’s available in each state:
NSW
A first-home buyer who purchases a $550,000 new home will get $35,240 in assistance.
This comprises a $15,000 grant for first-home owners who purchase or build a new home valued at up to $650,000. The grant is available until December 31, 2013, reducing to $10,000 from January 1, 2014.
Non-first-home buyers who buy a new home are eligible for $5,000 whether the new home is off the plan or newly built with a value up to $650,000, The $5,000 grant is also available to buyers of vacant land that is intended to be the site of a new home valued up to $450,000.
First-home owners are also eligible for a maximum stamp duty saving of $20,240 for homes up to a value of $550,000 with duty concessions for new homes valued between $550,000 and $650,000. The transfer duty exemption cap on vacant land is $350,000, with duty concessions for vacant land valued between $350,000 and $450,000.
 
<hr class="system-pagebreak">
 
Queensland
A $15,000 first-home owner construction grant (FHOCG) is available. The FHOCG applies to new property bought or built at a value under $750,000.
First-home buyers also pay no duty on purchases up to $500,000, with a phasing-out rebate applicable for values up to $600,000. 
For non-first-home buyers, the Queensland government offers a concessional stamp duty rate of 1% up to a value of $350,000, with stamp duty charged at normal rates for the remaining value of the home purchase. The buyer must occupy the home for a period of 12 months – an applicant may lose the concession if he sells or leases part or all of the home before moving in or within a year of moving in.
Victoria
A $7,000 first-home owner grant remains in place for both existing and new homes where the price of the property or construction of the home does not exceed $750,000.
From January 1, 2013 the <a href="https://www.sro.vic.gov.au/sro/sronav.nsf/LinkView/C88211C9E07486F0CA2578B70001025018E490D796850F8ECA2575C1008187C7">existing 20% stamp duty discount first-home buyers spending less than $600,000 on a house purchase will be increased to 30%.</a>
The stamp duty discount will rise to 40% on January 1 2014 and to 50% on September 1, 2014.
To qualify for the stamp duty discount, first-home buyers must also qualify for the federal $7,000 first-home owners’ grant.
WA
A $7,000 first-home owner grant remains in place for a newly constructed or established home. It does not apply to vacant land purchased to build a new home. The total value of the home must not exceed $750,000 if the property is located south of the 26th parallel of South Latitude, or $1 million if located north of the 26th parallel of South Latitude. First-home buyers eligible for the $7,000 grant pay no stamp duty on homes valued up to $500,000 and up to $300,000 for vacant land.
ACT
A $7,000 first-home owner grant remains in place for both existing and new homes where the price of the property or construction of the home does not exceed $750,000.
Tasmania
A $7,000 first-home owner grant remains in place for both existing and new homes, with no cap on the value.
Northern Territory
A $12,000 first home owner grant is available up to a maximum of $600,000 if the home is an established home in the urban area.
An urban area means all land located wholly within the boundaries of:
<ul>
<li>the Darwin, Palmerston or Litchfield municipalities;</li>
<li>Wagait Shire;</li>
<li>the Darwin Waterfront Precinct;</li>
<li>the “prescribed area” for the Darwin Rates Act.</li>
</ul>
Outside of urban areas, the grant amount is $25,000.
South Australia
South Australian first-home buy­ers buying off the plan have the chance to secure up to $23,500 from the state govern­ment, provided they buy or build a new home.
The $23,500 handout comprises a doubled first-home owner grant of $15,000 for contracts entered into up to a value of $575,000, plus a further $8,500 housing construction grant (HCG) available until June 30 2013.  
The HCG is available to all builders of new homes for properties valued up to $400,000, phasing out for properties val­ued up to $450,000 where contracts are entered into between October 15, 2012, and June 30, 2013, inclusive.
If you are purchasing a new or substantially refurbished apartment:
<ul>
<li>within the area of the Corporation of the City of Adelaide;</li>
<li>on any land within the area where the Bowden Redevelopment project (Bowden Village); or</li>
<li>on any land located within the area known as 45 Park, Gilberton;</li>
</ul>
you may be eligible for an off the plan stamp duty concession of up to $21 330 (capped at stamp duty payable on a $500 000 apartment), if your contract to purchase was entered into between 31 May 2012 and 30 June 2014. This concession is in addition to the first home owners grant.
If eligible, no stamp duty will be payable where the apartment has a market value of $500 000 or less. Where an apartment purchased has a market value greater than $500 000, you will be entitled to a stamp duty concession of $21 330. A calculator is available on the RevenueSA.sa.gov.ua website to determine the stamp duty payable and concession that could be applicable.
A partial concession will be available for contracts entered into between 1 July 2014 and 30 June 2016.
South Australian first-home buyers of established homes are entitled to a $5,000 first home owner grant expiring on June 30 2014.
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State-by-state guide to first-home buyer grants as SA offers $23,500 new home carrot

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Nine out of 27 economists polled by Bloomberg expect the cash rate to fall to 2.75% in the first three months of 2012, the lowest it would be for RBA data going back to June 1959.
The RBA does not meet in January, so this would mean a further RBA cash rate cut in either February or March, assuming the RBA, as expected, cuts the cash rate on Melbourne Cup Day to 3%.
For data going back to January 1990, the lowest the cash rate has been 3%, from April 2009 to October 2009, following big cuts by the RBA to temper the emergency effects of the GFC.
Prior to 1990 the Reserve Bank did not publish an official cash rate setting,  but historical proxy data going back to June 1959 shows the cash rate fell to its previous lowest point of 2.89% in January 1960.
The expectation of the cash rate reaching a 52-year low was pointed out by <a href="/news">Business Spectator columnist and economist Stephen Koukoulas last week</a>.
Among the economists tipping the cash rate to fall to 2.75% in the first quarter of 2013 is Westpac chief economist Bill Evans, who is the first economist to correctly tip the RBA to begin cutting the cash rate in November last year.
In an economic update published last week following the release of the October RBA minutes, Evans indicated there was still scope for at least another 50 basis points of rate cuts, starting with one in November.
He said Westpac assesses that "the current policy stance while clearly in the stimulatory zone is still only around 70 basis points below neutral.
"Previous easing cycles have bottomed out in the 125-150 basis point range below neutral," said Evans.
Aside from Evans and Koukoulas,  the seven other economist tipping the cash rate to fall to 2.75% in either February or March are economists from London-based research consultancy 4Cast Ltd, French bank BNP Paribas, Citi, investment banks J.P. Morgan, Merrill Lynch and RBC Capital Markets and RBS  Equities (Royal Bank of Scotland).
Photograph courtesy of <a target="_blank" href="https://www.flickr.com/">Flickr</a>.
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With 50-basis-point cut expectations, nine economists expect lowest cash rate since late 1950s

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Boutique fund manager Ausbil Dexia has fallen into line and is now among 23 out of 27 economists tipping the RBA to cut the cash rate to 3% on Melbourne Cup Day, November 6.
In Bloomberg's October 12 survey of econ0mists, Ausbil Dexia was the only Australian-based financial institution tipping the RBA to leave the cash rate on hold at 3.25% in November, along with overseas-based institutions Capital Economics, Goldman Sachs, J.P. Morgan and Moody's Economy.com.
In the latest survey (October 19) Moody's has joined Ausbil Dexia in changing its expectation from a rate hold to a rate cut on Melbourne Cup Day, with Capital Economics, Goldman Sachs, J.P. Morgan and now also Deutsche Bank tipping the RBA to leave the cash rate unchanged on November 6.
According to its website Ausbil Dexia is an "Australian equities specialist with approximately $11 billion in funds under management".
The firm was established in April 1997.
It's core business is the management of "Australian equities and emerging leader investment portfolios for major superannuation funds, institutional investors and master trust clients".
The firm is headed by chief executive Paul Xiradis, who has 30 years of experience in funds management including roles at Westpac, Delfin and Mercantile &amp; General Reinsurance Group.
Ausbil's chief economist is John Honan who has worked for the Federal Treasury in Canberra and also held the position of chief economist for the NSW Treasury Corp.
Attempts to contact the fund were not successful, however in its most recent October Economic Observer, the firm remarks that the recent fall in commodity prices will continue to result in a deterioration in the terms of trade and "translate into an income shock to Australia, the expected impact of which we have already seen manifest in the October RBA rate cut".  
"In addition to this reduction, futures markets are pricing in another 0.75% worth of cuts over the next six months," Ausbil Dexia notes.
"The benefits of a lower official rate and Australian dollar should however be felt across the non-resources sectors of the economy; in particular the likes of tourism, housing and retail spending.  
"This signals the beginning of an inflection point where we expect the two-speed economy to converge into a more balanced one speed economy – resources contracting from high levels of growth whilst non-resources to improve from moderate levels of growth."
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Odd one out, fund manager Ausbil Dexia joins Australian economists tipping Melbourne Cup Day rate cut: Bloomberg

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The Sunshine Coast is the most expensive regional market to buy residential land, according to the latest HIA-RP Data Residential Land Report.
The median lot price on the Sunshine Coast is just under $250,000, around $25,000 more expensive than buying it on the Gold Coast.
Overall, sales of residential land picked over the June Quarter.
“The June 2012 quarter saw residential land sales rise by 23.3% to be up by 29.7% when compared to the same period in 2011,” said HIA chief economist, Harley Dale.
“Growth is from a low base and the result is exaggerated by a policy-induced pull-forward in land sales in New South Wales and Victoria. Nevertheless, land sales did rise in all six state capitals and in a majority of regional areas and that is an encouraging result.”
<img src="/images/stories/2012/10/exxyland.gif">
 
 
 
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Sunshine Coast most expensive regional market to buy land: HIA-RP Data

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

Joel Robinson

The Eveleigh brings house-like apartments to Broadbeach

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

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

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

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

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

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Castle Hill, the longtime hub of the Hills District, has been one of the major beneficiaries of Sydney's Metro expansion, with improved connectivity helping drive continued population growth, development and buyer demand across the Hills District.

But despite that growth, the suburb has seen relatively few major new apartment projects brought to market over the past 18 months.

Hills District developer Reve Group is looking to fill that gap with <a href="https://www.apartments.com.au/new-apartments/nova-r-ve-castle-hill-2-garthowen-crescent-castle-hill-nsw-2154">Nova Rêve</a>, a major new mixed-use precinct on the corner of Garthowen Crescent and Old Castle Hill Road, a short walk from Castle Hill Metro Station and Castle Towers.

[smartcode_project:default project_id=152737 project_image_fid=377679]

The project will comprise three residential towers alongside a hotel, restaurants, cafes and a skybar, more than 1,600 sqm of ground-floor retail and almost an acre of landscaped gardens.

It represents the largest project undertaken by Reve Group, the development arm of the Kassis family, which has been building across the Hills District for more than 30 years through Kassis Homes.

[smartcode_project:default project_id=152737 project_image_fid=377675]

Nova Rêve also represents a significant step up from the family's first apartment development, Grand Rêve, which was delivered nearby on Garthowen Crescent.

Grand Rêve introduced larger, house-like apartment layouts and premium inclusions including Wolf and Sub-Zero appliances to the Castle Hill market.

Nova Rêve takes that approach to a precinct scale, combining the residential component with hospitality, retail and substantial public and resident landscaping.

[smartcode_project:default project_id=152737 project_image_fid=377685]

Reve Group Managing Director Sam Kassis said the project reflected the family's three decades of building in the Hills, which has evolved from trophy homes on quarter-acre blocks to larger-scale apartment development.

"Grand Rêve was our first apartment project here and it showed us what this pocket of Castle Hill could be. Nova Rêve is the refinement of that idea: not just apartments, but a place the whole suburb can use," Kassis said.

A key part of that approach is the hotel, which has been designed to operate as an amenity for the wider Castle Hill community rather than solely hotel guests.

It will include restaurants, cafes, skybars and all-day dining, alongside conference and event facilities catering to business functions, community groups and private events.

At ground level, more than 1,600 sqm of shops and cafes will open onto the surrounding streets and landscaped areas.

Almost an acre of gardens designed by Land and Form Studios will run through the precinct, incorporating pathways, seating, barbecue areas and children's play spaces.

[smartcode_project:default project_id=152737 project_image_fid=377680]

Reve Group's Romio Georges said creating an active ground plane had been central to the planning of Nova Rêve.

"There are gardens with pathways, barbecues, seating and play areas, shops and cafes opening onto the street, and a hotel with restaurants and a skybar that anyone in Castle Hill can walk into," Georges said.

The project's elevated position on one of Sydney's highest ridgelines will also provide apartments with outlooks toward the Sydney skyline, surrounding parkland and the Blue Mountains.

More than 80 per cent of the apartments will occupy corner positions, with Turner responsible for both the architecture and interiors.

&nbsp;

[smartcode_project_cta:default project_id=152737]

<h3 data-end="3697" data-section-id="q3n5ak" data-start="3672">&nbsp;</h3>
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Larry Schlesinger

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