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The decision by Charter Hall Retail REIT to buy three high-yield sub-regional NSW shopping centres marks a shift in its acquisition strategy. The purchase won't add value to its portfolio but will free up capital to develop other centres it holds, according Goldman Sachs senior REIT analyst Simon Wheatley.
Charter Hall Retail REIT successfully raised $100.7 million from institutional investors to fund its purchase of Dubbo Shopping Centre, Tamworth City Plaza, and the half share in Lake Macquarie Fair and Mount Hutton shopping centres the trust did not already own.
The sale price reflected an initial yield of 9.6%.
Scott Dundas, Charter Hall Retail fund manager, said the acquisitions were in line with its strategy of “acquiring supermarket anchored centres in the $20 million to $80 million asset value range that improve the quality of the REIT's already strong Australian property portfolio”.
But Wheatley does not believe the acquisitions are a value-add for the trust, with the risk that a trend of declining net tangible assets could continue.
Charter Hall Retail has a $1.72 billion retail property portfolio with a net tangible asset value of $3.38 per share compared with a current share price around $3.55.
He says the acquisition of the sub-regional shopping centres “further shifts the portfolio away from the grocery store-anchored style it has historically been known for”.
“The assets acquisition increase exposure to discount department stores and also have a higher proportion of rent being derived from specialty stores."
“Sub regional centres are anchored by at least one discount department store,“ Wheatley tells Property Observer.
“The point is – as you move further away from neighbourhood centres into sub-regional and regional assets, the proportion of income from anchor tenants becomes lower and the proportion of income from specialty stores gets higher.”
As an example, in the Dubbo Orana Mall, discount department store Big W occupies a much biggest share of the mall than Woolworths or Franklins.
“The acquisitions increase Charter Hall Retail’s exposure to NSW. However, we don't believe this has any meaningful benefit to the trust. It would seem that the benefit is merely increased diversification and unlocking the ability to fund some development works which were previously liquidity constrained,” says Wheatley.
Dubbo Shopping Centre was acquired from Centro for $30.5 million on a yield of 10.2%, while the Tamworth City Plaza was acquired from Australian Unity Investments for $35 million, on a yield of 10.1%
The acquisition of the remaining 50% stake in the Lake Macquarie Fair and Mount Hutton shopping centres for $35.2 million reflected a yield of 8.6%.
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lschlesinger-FZcF9M3vE6

Charter Hall Retail REIT shifts focus to high-yielding sub-regional shopping centres 

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The Australian commercial mortgage-backed securities (CMBS) market has completely dried up in 2012, according to Standard &amp; Poor’s latest CMBS market watch report.
There were no new tranches of commercial mortgages issued to institutional investors in the first half of the year, and S&amp;P does not expect any commercial mortgage-backed securities (CMBS) offerings to be launched for the remainder of 2012.
As the chart below shows, the CMBS market peaked at $5 billion in 2006, but has declined sharply since then in the wake of the GFC.
Click to enlarge
<a rel="shadowbox" href="/images/stories/2012/10/sandpoct23.gif" title="Click to enlarge"><img src="/images/stories/2012/10/sandpoct23thumb.gif"></a>
S&amp;P expects a quiet start to 2013 for the CMBS market.
“Approximately $1.92 billion of Australian CMBS and credit lease-backed notes remain outstanding as of June 30, 2012, compared with $2.04 billion in the six months ended December 31, 2011.
“The decline coincides with a flat period for CMBS issuance, amid persistent uncertainty in global markets,” says S&amp;P.
Issuing CMBS is an alternative way of raising funds to a traditional loan through a lender with both local and offshore investors able to participate.
In a commercial securitisation arrangement, loans secured against commercial properties are bundled together and sold as debt securities to institutional investors.
Recent issuers of CMBS (prior to the drying up of the market) include Charter Hall Retail and Colonial First State Capital Management.
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Commercial mortgage securitisation market dries up in wake of global uncertainty: Standard Poor’s

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Nearly a third (31%) of Australian households would consider re-locating to another state for financial benefit with Queensland the preferred destination, according to the latest ING Direct Financial Wellbeing Index.
Across households that would consider relocating interstate, Queensland (46%) is the most popular destination ahead of both NSW and Victoria (40%) followed by WA (31%) and South Australia (31%).
These responses tie with interstate migration forecasts from BIS Shrapnel, which anticipate a big rise in Queensland from 31,300 interstate migrants in 2011 rising to 41,900 in 2012, 49,700 in 2013, 54,300 in 2014 and 58,200 in 2015.
BIS Shrapnel also forecasts interstate migration to rise in NSW from 50,200 in 2011 to reach 71,500 by 2015 while WA numbers will rise from 30,800 to 53,600 over the same time period. More modest gains are expected in Victoria rising from 45,700 interstate migrants to 57,200 by 2015.
Interstate, along with overseas migration, is a key driver of demand for housing.
According to BIS Shrapnel, relative housing affordability and economic conditions are the main reasons people move states.
Among the smaller states and territories, the ING Direct report found that more people would consider relocating to Tasmania (22%) and the ACT (20%) than the Northern Territory (16%) – perhaps put off by surging house prices in Darwin and a lack of rental accommodation, as much by its remoteness.
The results are based on the online responses of 1,024 households between September 26 and October 3 carried out by Galaxy Research for ING Direct – households could pick multiple interstate migration options.
Digging down into the responses, they reveal that more than half of Victorians and those from NSW considering relocating would choose to move to Queensland.
Nearly two-thirds (62%) of Queenslanders pick NSW as their preferred relocation destination.
However, nearly one in two (47%) households from WA would move to Victoria for financial benefit.
The overall results of the survey were that household finances are in good shape with the Financial Wellbeing Index rising to 109.0 in the third quarter of 2012, up from 105.6 in the previous quarter and on par with the highest ever index score recorded in the second quarter of 2010, when ING Direct kicked off the index.
It also found that households are more comfortable with their mortgage than any other aspect of personal finances, with almost one in two (47%) of those households with a mortgage ahead with their loan repayments.
Median household savings across the country is $9,735.
Only 6% of households say income is insufficient to pay immediate bills.
“Australian households are continuing to adopt cautious money management with a focus on reducing household debt,” says ING Direct.
“As a result almost nine out of ten (88%) are comfortable with credit card debt, and 93% are comfortable with their home loan."
“Households are saving more and reducing debt which is leading to greater confidence,” says Vaughn Richtor, CEO of ING Direct.
“It is a good sign that confidence is on the way up with financial wellbeing reaching a 2-year high.”
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Queensland the top destination for those prepared to “pull up stumps”: ING Direct

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Forecasters BIS Shrapnel anticipate stronger housing market conditions ahead for Sydney, Perth, Brisbane and Darwin, but warn that a boom in house prices would not be good for a sustained recovery of the market.
“I am hoping that stronger conditions [in these markets] does not mean a boom in house prices,” said BIS Shrapnel managing director Robert Mellor at a housing market briefing in Melbourne today.
“People love booms. So does the media.
“For the media it’s either a boom or a bust, but the reality is that we need modest house price growth which will then stimulate more construction and more development activity.
“But if we suddenly start getting price growth shooting up 10% and 15% per annum, then the market will run out of steam pretty quickly,” said Mellor, presenting the results of the 2012 QBE LMI Australian Housing  Outlook report for 2012 to 2015.
Mellor also dismissed recent talk of a housing bubble threat in Australia, as has been highlighted by overseas commentators and some local analysts.
“When you are talking about Sydney, which we are fairly bullish about, you need to put things into context..
“The Sydney market has had one good year in the last nine years.
“In real terms prices are 10% to 12% below what they were nine years ago,” said Mellor.
Overall, he says the Australian economy is in good shape, though the benefits are not being evenly felt due to the emphasis on the mining boom, with property and retail among those sectors to have suffered.
“Underlying demand for housing is still strong,” said Mellor, pointing out that there was a strong rise in overseas migration in the last year, which was one of the key drivers of housing demand.
However, while the outlook for Sydney, Perth, Brisbane and Darwin is strong, weaknesses are expected to persist in Melbourne, Hobart and Canberra for another three years.
“There will be an exodus of investors from Victoria,” said Mellor.
He says there will be a big rise in new apartments being completed in Melbourne over the next two to three years, particularly in places like Docklands and the Melbourne CBD, exacerbating the current oversupply of housing.
“Victorian investors will be looking north.”
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Modest recovery rather than a boom bodes well for housing market recovery: BIS Shrapnel

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Reductions in fixed mortgage rates have not kept pace with variable-rate cuts since the RBA started cutting the cash rate in November last year and have further to fall, according to analysis by mortgage comparison website Mozo.com.au.
Its research reveals that the major banks have cut their standard variable rates by an average of 116 basis points between November 2011 and October 2012 but average one-year fixed rates have only fallen by 96 basis points and average three-year fixed by 94 basis points.
As the Greater Building Society announced its one-year fixed rate would fall below 5% from tomorrow (4.99%), Mozo's Peter Marshall told Property Observer fixed rates “still have some way to fall”.
“Fixed rates have fallen swiftly in the last few months in particular, but they have still not fallen as much as variable since November," says Marshall, product data manager at Mozo.
“And most analysts agree there are more cuts coming through from the RBA,” he says.
Marshall expects lenders to continue to cut fixed rates over the next week or so.
He says it currently makes “very good sense" to consider splitting your loan between fixed and variable products.
“Some lenders will do a sharper fixed rate if you only fix up to 50% of your loan."
He says currently, non-bank lender eMoney  is offering a three year fixed-rate of 5.25% but only if you fixed up to half the loan.
“It’s a really good strategy as you get some benefit if rates fall, but but no repayment shocks”
Marshall also says it pays to look around beyond the major banks.
On average the big four have cheaper fixed rates than other banks, mutuals and non-bank lenders, but when you drill down to individual lenders, the major banks don’t compete.
“There are plenty of other providers offering lower rates,” he says, providers borrowers are happy with a non-big brand lender.
“For borrowers wanting the security of a major lender, it’s worth looking at UBank, owned by NAB and the same goes for Bankwest, owned by Commonwealth Bank.
“You get the confidence of a major lender without having to pay for the privilege."
Changes in rates while the RBA has cut the cash rate by 150 basis points, from November 1, 2011 to October 18, 2012 
<table border="0" cellspacing="0" cellpadding="0" width="389"><tbody>
<tr>
<td valign="bottom" width="125" nowrap>
 
</td>
<td valign="bottom" width="264" colspan="3" nowrap>
Average SVR
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
Provider type
</td>
<td valign="bottom" width="93" nowrap>
1/11/2011
</td>
<td valign="bottom" width="104" nowrap>
18/10/2012
</td>
<td valign="bottom" width="66" nowrap>
Change
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
Big 4 banks
</td>
<td valign="bottom" width="93" nowrap>
7.78
</td>
<td valign="bottom" width="104" nowrap>
6.62
</td>
<td valign="bottom" width="66" nowrap>
-1.16
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
Other banks
</td>
<td valign="bottom" width="93" nowrap>
7.70
</td>
<td valign="bottom" width="104" nowrap>
6.63
</td>
<td valign="bottom" width="66" nowrap>
-1.07
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
Mutuals
</td>
<td valign="bottom" width="93" nowrap>
7.51
</td>
<td valign="bottom" width="104" nowrap>
6.40
</td>
<td valign="bottom" width="66" nowrap>
-1.11
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
Non-bank lenders
</td>
<td valign="bottom" width="93" nowrap>
7.01
</td>
<td valign="bottom" width="104" nowrap>
5.98
</td>
<td valign="bottom" width="66" nowrap>
-1.03
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap></td>
<td valign="bottom" width="93" nowrap></td>
<td valign="bottom" width="104" nowrap></td>
<td valign="bottom" width="66" nowrap></td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap></td>
<td valign="bottom" width="93" nowrap></td>
<td valign="bottom" width="104" nowrap></td>
<td valign="bottom" width="66" nowrap></td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
 
</td>
<td valign="bottom" width="264" colspan="3" nowrap>
Average 1 yr fixed
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
Provider type
</td>
<td valign="bottom" width="93" nowrap>
1/11/2011
</td>
<td valign="bottom" width="104" nowrap>
18/10/2012
</td>
<td valign="bottom" width="66" nowrap>
Change
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
Big 4 banks
</td>
<td valign="bottom" width="93" nowrap>
6.49
</td>
<td valign="bottom" width="104" nowrap>
5.53
</td>
<td valign="bottom" width="66" nowrap>
-0.96
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
Other banks
</td>
<td valign="bottom" width="93" nowrap>
6.65
</td>
<td valign="bottom" width="104" nowrap>
5.66
</td>
<td valign="bottom" width="66" nowrap>
-0.99
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
Mutuals
</td>
<td valign="bottom" width="93" nowrap>
6.48
</td>
<td valign="bottom" width="104" nowrap>
5.68
</td>
<td valign="bottom" width="66" nowrap>
-0.80
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
Non-bank lenders
</td>
<td valign="bottom" width="93" nowrap>
6.50
</td>
<td valign="bottom" width="104" nowrap>
5.79
</td>
<td valign="bottom" width="66" nowrap>
-0.71
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap></td>
<td valign="bottom" width="93" nowrap></td>
<td valign="bottom" width="104" nowrap></td>
<td valign="bottom" width="66" nowrap></td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
 
</td>
<td valign="bottom" width="264" colspan="3" nowrap>
Average 3 yr fixed
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
Provider type
</td>
<td valign="bottom" width="93" nowrap>
1/11/2011
</td>
<td valign="bottom" width="104" nowrap>
18/10/2012
</td>
<td valign="bottom" width="66" nowrap>
Change
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
Big 4 banks
</td>
<td valign="bottom" width="93" nowrap>
6.49
</td>
<td valign="bottom" width="104" nowrap>
5.55
</td>
<td valign="bottom" width="66" nowrap>
-0.94
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
Other banks
</td>
<td valign="bottom" width="93" nowrap>
6.61
</td>
<td valign="bottom" width="104" nowrap>
5.63
</td>
<td valign="bottom" width="66" nowrap>
-0.98
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
Mutuals
</td>
<td valign="bottom" width="93" nowrap>
6.53
</td>
<td valign="bottom" width="104" nowrap>
5.70
</td>
<td valign="bottom" width="66" nowrap>
-0.83
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
Non-bank lenders
</td>
<td valign="bottom" width="93" nowrap>
6.53
</td>
<td valign="bottom" width="104" nowrap>
5.76
</td>
<td valign="bottom" width="66" nowrap>
-0.77
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap></td>
<td valign="bottom" width="93" nowrap></td>
<td valign="bottom" width="104" nowrap></td>
<td valign="bottom" width="66" nowrap></td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap></td>
<td valign="bottom" width="93" nowrap></td>
<td valign="bottom" width="104" nowrap></td>
<td valign="bottom" width="66" nowrap></td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
 
</td>
<td valign="bottom" width="264" colspan="3" nowrap>
Average 5 yr fixed
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
Provider type
</td>
<td valign="bottom" width="93" nowrap>
1/11/2011
</td>
<td valign="bottom" width="104" nowrap>
18/10/2012
</td>
<td valign="bottom" width="66" nowrap>
Change
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
Big 4 banks
</td>
<td valign="bottom" width="93" nowrap>
7.00
</td>
<td valign="bottom" width="104" nowrap>
5.85
</td>
<td valign="bottom" width="66" nowrap>
-1.15
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
Other banks
</td>
<td valign="bottom" width="93" nowrap>
7.07
</td>
<td valign="bottom" width="104" nowrap>
6.06
</td>
<td valign="bottom" width="66" nowrap>
-1.01
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
Mutuals
</td>
<td valign="bottom" width="93" nowrap>
6.96
</td>
<td valign="bottom" width="104" nowrap>
6.15
</td>
<td valign="bottom" width="66" nowrap>
-0.81
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
Non-bank lenders
</td>
<td valign="bottom" width="93" nowrap>
7.03
</td>
<td valign="bottom" width="104" nowrap>
6.39
</td>
<td valign="bottom" width="66" nowrap>
-0.64
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap></td>
<td valign="bottom" width="93" nowrap></td>
<td valign="bottom" width="104" nowrap></td>
<td valign="bottom" width="66" nowrap></td>
</tr>
<tr>
<td valign="bottom" width="219" colspan="2" nowrap>
 
Source: mozo.com.au
</td>
<td valign="bottom" width="104" nowrap></td>
<td valign="bottom" width="66" nowrap></td>
</tr>
</tbody></table>
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More room for fixed rates to fall and better deals outside major banks: Mozo

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The threat of a bubble building in the Australian housing market has been dismissed by senior Treasury economist David Gruen.
Gruen, executive director of Treasury’s macroeconomic group, says there is no danger of a housing bubble because of Australia has an undersupply of homes unlike other major economies, which have built too many houses.
The housing bubble debate has received fresh oxygen of late with senior industry figures warning about the threat posed by rising house prices including ANZ Bank Australia CEO <a href="https://www.propertyobserver.com.au/residential/anz-boss-adds-to-growing-list-warning-of-australian-housing-bubble-risk/2012100456996">Phil Chronican</a> and Barry Brakey head of property at the Future Fund.
However, others like <a href="https://www.propertyobserver.com.au/residential/recovering-housing-market-at-630-on-the-property-clock-with-no-risk-of-a-housing-bubble-john-symond/2012101157115">John Symond</a> of Aussie Home Loans, Meriton’s Harry Triguboff and Australian Property Monitors’ Andrew Wilson have dismissed these concerns.
Gruen also expects the housing market to play a role in driving the economy forward once the mining boom has run its course.
“In a couple of years, when mining investment does not contribute to growth any more, we will need other things to contribute to growth,” Dr Gruen told a Senate budget estimates hearing in Canberra today, as reported by the Australian Financial Review.
“One of the most obvious things [to contribute to growth] is the housing market, given that we think there is undersupply.
Such a contribution, he said, would be “a natural and desirable development and we are seeing early signs of it”.
Gruen said Australia was building no more dwellings now than it was a decade ago, so “we think there is net undersupply in the housing market”.
He contrasted the Australian undersupply picture with that of Spain, Ireland, UK and the US where very large house price increases were accompanied by “truly extraordinary” increases in supply.
He also told the estimates committee he expected the federal government to deliver on its budget surplus ambitions.
“Provided we are in a world in roughly trend growth and there is room to move on monetary policy, it seems to me an appropriate strategy to be aiming for surplus.”
And he expects the mining industry, currently in a lull with commodity prices falling, to be boosted again as more mining investment projects are  finalised.
“I guess I wouldn’t call the resource prices a bubble; I would call it a natural understandable response to a big increase in demand that was unanticipated,” he said.
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No risk of housing bubble forming in Australia: Treasury economist David Gruen

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The Greater Building Society has cut its one year fixed-rate packaged home loan by 30 basis points to 4.99%.
This is the only home loan offering currently below 5% and the first time a home loan from The Greater had been under 5% since July 2009.
The mutual lender has also cut its three and five year fixed-rates by 15 points to 5.34% and 5.54% respectively.
Product manager David Bryde says this gives The Greater the lowest home loan rate in Australia.
The new rates are effective tomorrow and open to both new and existing customers.
The new fixed rates are offered as part of  The Greater’s Ultimate Home Loan home loan package which includes a fee free transaction account, discounted insurance, financial planning, and a linked credit card with waived annual fee.
Current cheapest one-year fixed rate loans
<table style="width: 470px;" border="0" cellspacing="0" cellpadding="0">
<colgroup>
<col width="173">
<col>
<col width="369">
<col>
<col width="60">
<col>
</colgroup>
<tbody>
<tr height="21">
<td height="21" width="173">1 year fixed rates</td>
<td width="369"></td>
<td width="60"></td>
</tr>
<tr height="21">
<td height="21">Provider</td>
<td>Product</td>
<td>Rate %</td>
</tr>
<tr height="21">
<td height="21">Greater Building Society</td>
<td>Fixed Rate Home Loan (Ultimate Home Loan Package)</td>
<td>4.99</td>
</tr>
<tr height="21">
<td height="21">My Mortgage Freedom</td>
<td>Fixed Rate (LVR 75%-90%)</td>
<td>5.09</td>
</tr>
<tr height="21">
<td height="21">QT Mutual Bank</td>
<td>Fixed Rate (Choices)</td>
<td>5.29</td>
</tr>
<tr height="21">
<td height="21">Greater Building Society</td>
<td>Fixed Great Rate Home Loan</td>
<td>5.34</td>
</tr>
<tr height="21">
<td height="21">Morgan Brooks Direct</td>
<td>Fixed Rate Home Loan</td>
<td>5.34</td>
</tr>
<tr height="21">
<td height="21">NAB</td>
<td>Tailored Home Loan (Choice Package)</td>
<td>5.34</td>
</tr>
</tbody>
</table>
Source: Mozo
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Greater Building Society cuts one-year fixed home loan to 4.99%

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The benchmark RBA cash rate will be at its lowest point since 1960 should the cash rate fall to 2.75% by March 2013, as is being priced by futures markets, Business Spectator columnist and economist Stephen Koukoulas has tweeted today.
<a target="_blank" href="https://twitter.com/TheKouk"><img src="/images/stories/2012/10/kouktweet4.jpg"></a>
Koukoulas, who heads up consultancy Market Economics and is a former economic adviser to the Gillard government, is tipping the cash rate to be cut by 25 basis points on Melbourne Cup Day next month and then another rate cut in the first quarter of 2013.
The RBA has only been publishing an official cash rate since August 1990 and a cash rate range since January 1990.
Prior to 1990 the Reserve Bank did not publish an official cash rate setting, so cash rate measures prior to this date are proxies of the current measure.
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 Reserve Bank previously used other measures of the short-term interest rates as its tool of monetary policy,” explains the RBA.
“However, prior to 1990 monetary policy was not targeting inflation as it does now. In that way, the rates before 1990 do not reflect the same focus of policy.”
</body></html>

Cash rate heading for 52-year low, says Stephen Koukoulas: Tweet of the day

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Borrowers should look to fix at least part of their home loan as fixed rates continue to fall, according to mortgage broker Loan Market.
“Investors and families on tight budgets should really be looking to lock in some rates as they hit near record lows,” says Loan Market corporate spokesman Paul Smith.
“Lenders are coming out with three year fixed rates as low as 5.35%. Historically, it always pays off to fix rates when they are on the way down, as opposed to what most people do in fear, which is fix on the way up.
“Many people were caught out fixing on high rates post recovery during the GFC when lenders began lifting their rates and confidence returned to the market. Right now, these fixed rates are already a quarter percentage point below variable rates, so even if variables dropped one more time this year, they would still be ahead. 
“Could rates dip below 5%? Possibly, but rates right now are pretty hard to resist the gamble and waiting game.
Smith says that borrowers with higher incomes can afford to ride the variable wave a little longer or look at fixing half of their rates and continue paying extra into their variable loans.
“Obviously, consumers should be aware that when the market recovers, these all-time low fixed rates will disappear pretty quick and borrowers will start to scramble for the lender slowest to react and pick up leftovers.”
Currently the cheapest one-year fixed rate home loan is 5.29% offered by Greater Building Socieity while the cheapest three-year fixed is 5.35% offered by loans.com.au.</body></html>

Fixed rate offerings pretty hard to resist: Loan Market

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The Mallee region in northern Victoria is the cheapest place in Australia to buy a block of residential land, according to the latest HIA-RP Data Residential Land Report
The median lot price in Mallee was $73,500 over the June quarter.
The Mallee municipality incorporates the rural towns of <a target="_blank" href="/news">Mildura </a>and <a target="_blank" href="/news">Swan Hill</a> as well as the Shire of Gannawarra and the Shire of Buloke.
Nationally, in the June 2012 quarter the weighted median residential land value in Australia eased by 0.3% to $192,828.
Sales were up 23.3% to 15,255, the highest number of sales recorded since the June quarter of 2010.
<img src="/images/stories/2012/10/hiaoct18.gif">
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Victoria’s Mallee tops list of 10 cheapest municipalities 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.

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“The apartment floors deliver a collection of homes that embrace controlled outlook via a series of bay windows deliberately framing moments of view,” Rothelowman Director Kim Lowman said.

From outside, those projecting forms contribute to the tower’s faceted profile. Strong horizontal and vertical elements establish its proportions, while the changing position of the sun alters the light, shadow and reflection across the façade throughout the day.

The same attention moves inside the apartments, where the material palette combines warm timber, natural stone, metallic detailing and softer curved forms. Kitchens sit within the main living zone, with stone island benches, integrated joinery and European appliances, before the living areas extend towards the glazing and the outlook.

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Three genuine bedrooms provide room to accommodate family and guests, while two secure car spaces and storage address some of the practical considerations that can become more noticeable when moving from a larger home. Feedback from the display suite has centred on the warmth and restraint of the interiors, with buyers commenting that the residences feel like homes rather than conventional coastal apartments.

A limited collection of half-floor penthouses occupies the upper levels, increasing the scale of the living spaces and adding private balconies and elevated finishes. From this position, the outlook extends between the ocean and hinterland.

Outside the private residences, The Eveleigh separates its shared spaces between the podium and rooftop. The podium is centred on wellness, with subtropical landscaping surrounding a swimming pool and pool terrace, yoga garden, private gymnasium, sauna and hot and cold plunge facilities. Landscaped retreats and pavilions provide additional places to sit away from the main recreation areas.

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Higher in the building, a rooftop pavilion and private dining suite sit alongside resident lounge, barbecue and outdoor dining areas, opening towards panoramic views across the ocean, city and hinterland.

“Buyers are no longer just looking for an apartment, but a lifestyle where they can relax, reset, and enjoy a balanced way of living,” Hirsch &amp; Faigen Director of Sales Matt George said.

Interest to date has come from established owner-occupiers and interstate lifestyle purchasers, including buyers planning a future move to the Gold Coast. Many are coming from larger homes and want to reduce ongoing maintenance without giving up space for family and guests, privacy, two car spaces or the ability to entertain at home.

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Much of that daily life can also take place beyond the building without requiring a drive. Kurrawa Beach and Pratten Park are an easy walk from Surf Parade, while Pacific Fair, Oracle Boulevard, The Oasis, restaurants, cafés, entertainment and public transport are also within walking distance.

The Eveleigh is Hirsch &amp; Faigen's fourth Gold Coast development since entering the market in 2021, following The Hemingway at Palm Beach, The Emerson at Kirra and Yves at Mermaid Beach. Each of the preceding projects sold out before completion.

“Broadbeach had been on our radar throughout our time operating on the Gold Coast,” the developer said. “Following our projects in Palm Beach, Kirra and Mermaid Beach, Broadbeach represented the natural next step for the business.”

The Surf Parade site brought together proximity to the beach, protected coastal outlooks and walkability to dining, shopping and recreation. Hirsch &amp; Faigen also identified the street as an emerging premium residential address, with enough separation from Broadbeach's busier destinations to retain a quieter environment at home.

The Eveleigh is now under construction by Maxcon, with completion forecast for mid-2028. Three-bedroom residences are currently available from $2.87 million.

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Joel Robinson

The Eveleigh brings house-like apartments to Broadbeach

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

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

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

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

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

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

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