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The percentage of Australian borrowers more than a month behind on their mortgage repayments fell for the second consecutive month in July following the RBA cash rate cuts in May and June, with the proportion of Australian borrowers at risk of defaulting on their mortgages well below that of other first-world economies, according to global credit rating agency Moody's.
Moody’s expects the arrears rate to hold steady for the remainder of the year following Tuesday’s rate cut.
The delinquency rate for mortgages more than 30 days in arrears in the Australian prime residential mortgage market was 1.61% in July, down from 1.66% in June and 1.67% in May.
A year ago the 30-day-plus arrears rate was 1.64%.
The biggest fall was the in the 30 to 60 days in arrears basket, which dropped from 0.74% to 0.66%, a month-on-month decline of 10%.
However, those borrowers more than three months behind in their mortgage payments increased from 0.63% to 0.66% – a rise of nearly 5%. 
<table border="1" cellspacing="0" cellpadding="0" width="403"><tbody>
<tr>
<td valign="bottom" width="65" nowrap>
Australian Prime RMBS
</td>
<td valign="bottom" width="70" nowrap>
 
</td>
<td valign="bottom" width="70" nowrap>
 
</td>
<td valign="bottom" width="65" nowrap>
 
</td>
<td valign="bottom" width="70" nowrap>
 
</td>
<td valign="bottom" width="65" nowrap>
 
</td>
</tr>
<tr>
<td valign="bottom" width="65" nowrap></td>
<td valign="bottom" width="70" nowrap>
 
</td>
<td valign="bottom" width="70" nowrap>
 
</td>
<td valign="bottom" width="65" nowrap>
MTM
</td>
<td valign="bottom" width="70" nowrap>
 
</td>
<td valign="bottom" width="65" nowrap>
YOY
</td>
</tr>
<tr>
<td valign="bottom" width="65" nowrap></td>
<td valign="bottom" width="70" nowrap>
Jul-12
</td>
<td valign="bottom" width="70" nowrap>
Jun-12
</td>
<td valign="bottom" width="65" nowrap>
% Change
</td>
<td valign="bottom" width="70" nowrap>
Jul-11
</td>
<td valign="bottom" width="65" nowrap>
% Change
</td>
</tr>
<tr>
<td valign="bottom" width="65" nowrap>
30-60 days
</td>
<td valign="bottom" width="70" nowrap>
0.66%
</td>
<td valign="bottom" width="70" nowrap>
0.74%
</td>
<td valign="bottom" width="65" nowrap>
-10.2%
</td>
<td valign="bottom" width="70" nowrap>
0.71%
</td>
<td valign="bottom" width="65" nowrap>
-5.8%
</td>
</tr>
<tr>
<td valign="bottom" width="65" nowrap>
60-90
</td>
<td valign="bottom" width="70" nowrap>
0.29%
</td>
<td valign="bottom" width="70" nowrap>
0.29%
</td>
<td valign="bottom" width="65" nowrap>
0.2%
</td>
<td valign="bottom" width="70" nowrap>
0.30%
</td>
<td valign="bottom" width="65" nowrap>
-1.9%
</td>
</tr>
<tr>
<td valign="bottom" width="65" nowrap>
90+ days
</td>
<td valign="bottom" width="70" nowrap>
0.66%
</td>
<td valign="bottom" width="70" nowrap>
0.63%
</td>
<td valign="bottom" width="65" nowrap>
4.9%
</td>
<td valign="bottom" width="70" nowrap>
0.63%
</td>
<td valign="bottom" width="65" nowrap>
3.9%
</td>
</tr>
</tbody></table>
Source: Moody’s
Putting this into an international context, the US has a 60 days or more arrears rate of 6.57% – six times higher than Australia (0.95%)
One of the worst-performing housing markets is Ireland, which has a 60 days or more arrears rate of 17.22% – meaning nearly one in five borrowers are at risk of default.
Another basket case economy, Greece, has more than doubled its 60-day-plus arrears rate from 2.38% in August 2010 to 5.37% in August 2012.
Japan has a 60-day-plus arrears rate of 0.21%.
 
<hr class="system-pagebreak">
 
"We believe the rate of arrears will hold steady in 2012 because of the recent cuts in interest rates and our expectation that GDP growth will remain robust at 3.8% in 2012," says Jennifer Wu from Moody’s.
"Given that the benefits of economic growth and low interest rates will not be felt equally across all sectors, certain regions, such as those dependent on tourism and retail, which are under pressure due to the strong Australian dollar, will see a rise in arrears.
“But, Moody's expects this trend to be offset by the decline in arrears in other regions," she adds.
The arrears rates are calculated based on the performance of loans packaged and sold to investors as residential mortgage-backed securities – also known as securitisation.
There was also an improvement in low-doc arrears rates (30 days or more), which improved from 5.72% to 5.52%.
The performance of non-confroming loans provided to credit-impaired borrowers at higher interest rates also improved from 12.47% to 11.33%. 
<table border="1" cellspacing="0" cellpadding="0" width="391"><tbody>
<tr>
<td valign="bottom" width="68" nowrap>
Australian Non-Conforming RMBS
</td>
<td valign="bottom" width="65" nowrap></td>
<td valign="bottom" width="65" nowrap></td>
<td valign="bottom" width="65" nowrap></td>
<td valign="bottom" width="65" nowrap></td>
<td valign="bottom" width="65" nowrap></td>
</tr>
<tr>
<td valign="bottom" width="68" nowrap></td>
<td valign="bottom" width="65" nowrap>
 
</td>
<td valign="bottom" width="65" nowrap>
 
</td>
<td valign="bottom" width="65" nowrap>
MTM
</td>
<td valign="bottom" width="65" nowrap>
 
</td>
<td valign="bottom" width="65" nowrap>
YOY
</td>
</tr>
<tr>
<td valign="bottom" width="68" nowrap></td>
<td valign="bottom" width="65" nowrap>
Jul-12
</td>
<td valign="bottom" width="65" nowrap>
Jun-12
</td>
<td valign="bottom" width="65" nowrap>
% Change
</td>
<td valign="bottom" width="65" nowrap>
Jul-11
</td>
<td valign="bottom" width="65" nowrap>
% Change
</td>
</tr>
<tr>
<td valign="bottom" width="68" nowrap>
30-60 Days
</td>
<td valign="bottom" width="65" nowrap>
3.85%
</td>
<td valign="bottom" width="65" nowrap>
4.72%
</td>
<td valign="bottom" width="65" nowrap>
-18.4%
</td>
<td valign="bottom" width="65" nowrap>
4.22%
</td>
<td valign="bottom" width="65" nowrap>
-8.8%
</td>
</tr>
<tr>
<td valign="bottom" width="68" nowrap>
60-90 Days
</td>
<td valign="bottom" width="65" nowrap>
2.57%
</td>
<td valign="bottom" width="65" nowrap>
2.18%
</td>
<td valign="bottom" width="65" nowrap>
17.9%
</td>
<td valign="bottom" width="65" nowrap>
2.79%
</td>
<td valign="bottom" width="65" nowrap>
-8.1%
</td>
</tr>
<tr>
<td valign="bottom" width="68" nowrap>
90+Days
</td>
<td valign="bottom" width="65" nowrap>
4.91%
</td>
<td valign="bottom" width="65" nowrap>
5.58%
</td>
<td valign="bottom" width="65" nowrap>
-12.0%
</td>
<td valign="bottom" width="65" nowrap>
5.39%
</td>
<td valign="bottom" width="65" nowrap>
-8.9%
</td>
</tr>
</tbody></table>
Source: Moody's
Non-conforming mortgage arrears rates peaked at 17.44% in January 2009.
The Moody’s research shows the extent of the decline of this source of funding since the GFC.
In 2007, just before the GFC froze securitization markets, Moody’s rated 75 tranches of residential mortgage-backed security deals sold to institutional investors. There were 20 tranches rated by Moody’s in 2008 and just eight in 2009.
For the first seven months of 2012 Moody’s has rated just 12 tranches.
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lschlesinger-FZcF9M3vE6

Australian borrowers remain world beaters on mortgage management as arrears fall further in July: Moody’s

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Creditors of failed builder St Hilliers Construction will be asked to vote for a deed of company arrangement (DOCA) rescue package rather than push the company into liquidation.
Administrators will send out documents to creditors this week proposing the DOCA and asking for a meeting to vote on the proposal.
Creditors include staff, who are owed around $3.6 million, and sub-contractors, who are owed around $10 million.
According to ASIC, a deed of company arrangement (DOCA) is a “binding arrangement between a company and its creditors governing how the company’s affairs will be dealt with and aims to maximise the chances of the company, or as much as possible of its business, continuing, or to provide a better return for creditors than an immediate winding up of the company, or both”.
St Hilliers Construction was placed in administration on May 16 ,with Trent Hancock and Michael Hird of Moore Stephens Sydney Corporate Recovery Group appointed as voluntary administrators.
The collapse was sparked due to funding issues relating to the expansion of the Ararat prison in Central Victoria
An associated company, St Hilliers Ararat Pty Ltd, part of a consortium contracted to undertake the $350 million expansion of the prison, was placed in liquidation at the same time that St Hilliers Construction was placed in administration.
The construction arm of St Hilliers had about 360 people employees at the time of its collapse, with group annual turnover of around $700 million.
Should St Hilliers be placed in liquidation, insurance bond providers would have a $45 million exposure, reported The Australian.
Insurance bond providers provide protection to the contract principal (in this case St Hillers) against default by the contractor. The provider undertakes the credit risk of being unable to recover funds paid out by them under the bond from the contractor.
As St Hilliers has continued to trade and many of the projects are operational again, insurance providers have been largely protected from making payments.
St Hilliers projects have resumed in the ACT, Queensland, Victoria and NSW.
These include the <a target="_blank" href="https://www.propertyobserver.com.au/news/st-hilliers-resumes-act-and-queensland-projects-with-brookfield-multiplex-named-as-possible-buyer/2012060154941">$30 million Bonner Primary School project in Canberra</a>, housing projects for the Department of Defence in Queensland and a $10 million contract to build modular mining housing for Xstrata in Glenden in the Bowen Basin.
Work has also resumed on a public housing project on Harbour Drive in Coffs Harbour– one of 13 NSW public housing projects that the NSW government has taken over following St Hilliers being placed in administration.
The company has its headquarters in Sydney as well as offices in Melbourne, Canberra, and Brisbane.
The collapse of St Hillers followed a spate of high-profile building collapses including Kell &amp; Rigby and Reed Construction.
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Administrators seek rescue deal for St Hilliers Construction rather than liquidation

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Banks' dominance of the mortgage market – now above 90%  of all home loan approvals – means they have been able to take 10.6 days to pass on RBA cash rate cuts.
By contrast, they take 6.8 days to lift mortgage rates when the RBA lifts the cash rate.
In addition, research suggests banks have passed on 116% of cash rate rises (above official rate increases), while only passing on 84% of the benefit of RBA cash rate cuts.
These figures are contained in the latest edition of the Economic Record, published the Economic Society of Australia, which calculated the time banks take based on the last two years of RBA cash rate decisions.
Westpac is the worst offender when it comes to passing on rate cuts – taking 13 days, while the Commonwealth Bank is the quickest to pass on rate rises – taking just three days.
How long banks take to pass on RBA rate rises and rate cuts (decisons from May 2010 to June 2012)
<table border="1" cellspacing="0" cellpadding="0" style="width: 470px;"><tbody>
<tr>
<td valign="top" width="205">
 
</td>
<td valign="top" width="205">
When rates rise
</td>
<td valign="top" width="205">
When rates fall
</td>
</tr>
<tr>
<td valign="top" width="205">
Westpac
</td>
<td valign="top" width="205">
8.5
</td>
<td valign="top" width="205">
13
</td>
</tr>
<tr>
<td valign="top" width="205">
Commonwealth Bank
</td>
<td valign="top" width="205">
3
</td>
<td valign="top" width="205">
9.75
</td>
</tr>
<tr>
<td valign="top" width="205">
ANZ
</td>
<td valign="top" width="205">
8
</td>
<td valign="top" width="205">
12.5
</td>
</tr>
<tr>
<td valign="top" width="205">
NAB
</td>
<td valign="top" width="205">
8
</td>
<td valign="top" width="205">
7.25
</td>
</tr>
<tr>
<td valign="top" width="205">
Big Four Average
</td>
<td valign="top" width="205">
6.8
</td>
<td valign="top" width="205">
10.6
</td>
</tr>
</tbody></table>
Source: Economic Record/Sydney Morning Herald
Westpac is also the worst offender when it comes to the margin between the standard variable rate and the cash rate.
Westpac's margin is 352 basis points, followed by ANZ (339 basis points), Commonwealth Bank (326 basis points) and NAB (315 basis points).
However, borrowers will have themselves partly to blame if the major banks – as expected – do not pass on the full 25-basis-point October RBA rate cut this week.
The following chart prepared by investment firm Nomura shows that Australian banks' share of total mortgage approvals has risen well above 90% as borrowers choose to secure their home loans through well-known brands.
This is despite non-bank lenders, building societies and credit unions offering competitive and in many cases lower fixed and variable-rate offerings.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/09/nomura.gif"><img src="/images/stories/2012/09/nomurathumb.gif"></a>
 
<hr class="system-pagebreak">
 
Banks' share of the mortgage market surged in the wake of the GFC from 80% of the market to more than 90% as non-bank lenders and mutuals were forced to ration their credit or in some cases stop lending all together.
Before this, the  major banks lost market share in the mid to late-1990s following the rise of the non-bank sector led by battler mortgage brands, including John Symond’s Aussie Home Loans, John Kinghorn’s Rams Home Loans and Mark Bouris’s Wizard Home Loans.
Aussie Home Loans is now a third owned by the Commonwealth Bank and is predominantly a mortgage broker.
Rams Home Loans had a disastrous float on the ASX, coinciding with the start of the GFC. Its brand and stores were snapped up by Westpac in October 2007 for a paltry $140 million – Rams had raised $695 million when it listed on the ASX in July 2007 at $2.50 a share. The former Rams mortgage book, now called RHG Limited, is now in run-off. Shares are trading at around 39¢.
Mark Bouris sold Wizard Home Loans to GE Money in 2004. GE Money quit mortgage lending in 2008, as wholesale funding costs soared, leaving some borrowers high and dry, with some of the highest variable mortgage rates in the market as it refused to pass on big RBA cash rate cuts.
Aussie acquired the Wizard Home Loans brand and franchise network in December 2008.
All Wizard Home Loans stores are now branded Aussie.
Let us know what you think will happen with interest rates and the property market in spring. <a target="_blank" href="http://propertyobserver.com.au/ebooks/the-spring-property-outlook-survey">Complete our five-minute survey for your chance to win an iPhone 5.</a>
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Borrowers left waiting 10.6 days for a partial rate cuts as banks assert market dominance

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Property investors should be wary of buying house-and-land packages or newly built homes in mining hotspots because they’re often overpriced, according to hotspotting.com.au’s Terry Ryder.
“I strongly tend towards buying second-hand houses than a new product,” said Ryder during a Property Observer webinar.
“One reason is the new product is so much more expensive
“For example if you buying a new house and land package in a place like Gladstone, where there are a lot of new developments, you are paying for the developers’ product and their profit margin."
Ryder says one of the traps investors fall in is buying a new house because of the greater tax deprecation benefits.
“It’s a bit of a trap in places like Gladstone, where there are lot of house-and-land packages being developed and where there are some very big marketing pushes telling people this is the way to invest in Gladstone.
“They push the depreciation benefits, but I think it’s a bit of a trap.
“People need to be wary of that.”
Ryder says investors can buy more affordably by choosing an established property.
“The record shows you get better capital growth from established properties because new properties start from behind the eight ball because you are starting at a very high buy-in base.”
In addition, Ryder says ABS data shows that on average a new houses cost $70,000 more than an equivalent house in the same area – and in some areas the difference is much higher.
“You won’t get the same capital appreciation benefits, but tax benefits should never be the primary reason for what you buy and when."
And the capital return can be poor, especially if someone is forced to sell soon after buying a new home.
In these instance, he says investors seldom got their money back.
“That’s because the true price of that product in the market is less than what the developer is asking and that’s the biggest problem.”
To get more tips and insights on investing in mining hotspots watch the free Property Observer webinar: <a href="/news">Why the mining boom is far from over - and how you can benefit</a>
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Investors should be wary of buying house-and-land packages in mining hotspots: Terry Ryder

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AFG recorded a fall in mortgage sales in September, but an increase in borrowers that chose to fix their home loan, according to the mortgage broker’s latest monthly mortgage index.
Fixed-rate mortgage sales accounted for 21.5% of all new home loan sales over September up from 19.9% in August and 16.8% in July with three-year fixed rate home loans particularly popular.
One of the lenders on AFG’s panel, ME Bank recorded a surge in fixed-rate mortgage applications, which now account for 45% by value of all new applications, up from 14% earlier in the year.
ME Bank offers a three-year fixed home loan at 5.39% - one of the lowest in the market.
A procession of lenders have cut their fixed rates over the past few weeks including the major banks and regional banks.
While fixed rate demand increased, overall demand for housing finance fell in September.
AFG processed $2.7 billion of loans last month compared with $2.6 billion in September 2011.
Mortgage sales were down more than 10% from the $3 billion recorded in August reflecting the latest RBA figures to August, which has mortgage growth at an annualised rate of just 4.8% - the lowest for records going back to 1991.
The number of home loans arranged by AFG brokers fell by nearly 850 over the month with brokers arranging 6,882 loans in September compared with 7,730 in August.
“We welcome the RBA decision. Both the figures and our brokers are saying that while there are some areas of confidence, things are generally very patchy,” said Mark Hewitt, general manager of sales and operations at AFG.
 “The property market has been slow to emerge from winter and whilst no one is expecting any dramatic rebounds, the interest rate cut will help.”
AFG also recorded that loan-to-value ratios increased from 66.9% in June to 69% in September.
First-home buyers accounted for just 13.2% of all AFG home loans arranged over September, down from 15.9% in August
Non-major banks gained market share to 24% of all new home loans last month – up from 22.2% in August. 
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AFG fixed-rate demand increasing as ME Bank locks in 45% of all new borrowers

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Inner-Brisbane new apartment sales almost doubled over the August 2012 quarter, with projects associated with developer David Devine proving far and away the most popular, according to the latest Midwood Report.
The Midwood Report recorded 363 apartment sales over the three months to August, compared with 192 recorded over the corresponding period last year.
The majority were high-rise sales, which increased from 133 to 316 quarter-on-quarter, with the August 2012 quarter recording the largest number of high-rise sales since May 2005
Click to enlarge
<a href="/images/stories/2012/09/midwoodoct3.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/09/midwoodoct3thumb.gif"></a>
Source: Midwood Report
According to report author Bill Morris, sales were mostly to overseas investors, “indicating that prices have finally reached the point which neutralises the effect of the high Australian dollar”.
The report also notes that Brisbane rents have been rising at 8.1% per annum over the past five years to August 2011, outpacing median household income, which has risen by only 4.5% per annum over the same period.
“These rent increases are unprecedented in Australia and indicate a critical shortage of investment properties. This reflects both the limitations on lending for property development and the statutory processes and costs of development, which now virtually eliminate small developers from the market,” says Morris.
<img src="/images/stories/2012/09/plaza3.jpg">
The top-selling project over the quarter was Metro Property Development’s Plaza project (pictured above) in South Brisbane, which recorded 113 sales over the quarter, with apartments priced from $413,000 for a one-bedroom unit rising to $562,000 for a two-bedroom, two-bathroom unit.
Metro was co-founded by David Devine and Ken Woodley.
The Plaza project was designed by architects Deicke Richards and includes 168 apartments over 12 levels with a total end value of $80 million.
Jon Rivera, associate director at property consultants Urbis, says South Brisbane appealed to both owner-occupiers and investors due to its solid infrastructure, “high rental yield for landlords and a great lifestyle for those who live there”.
“On average the rentals in South Brisbane are achieving a rental premium of approximately between 20% to 30% above inner-city Brisbane rentals. This indicates the strong demand for accommodation in the suburb and more specifically the shortage of residential supply, which may be pushing rental rates,” he says.
Off-the-plan marketing of the Plaza project began in August, with construction due to begin next month.
 
<hr class="system-pagebreak">
The second and third-best selling projects were also Metro projects.
Brooklyn on Brookes in Fortitude Valley, which is now under construction at the corner of Ann and Brookes streets, managed 84 sales, with 216 out of the 260 apartments available now sold.
One-bedroom units in the project sold starting from $418,000 rising to $588,500 for a two-bedroom, two bathroom unit measuring 75 square metres.
<img src="/images/stories/2012/07/madison-heights.jpg">
Metro’s Madison Heights project (pictured above) on Campbell Street in Bowen Hills recorded 55 sales over the quarter, with prices starting from $346,000 for a one-bedroom unit rising to $556,000 for a two-bedroom, two-bathroom unit
Morris says the price point is around $7,000 per square metre for small units sized between 55 to 70 square metres. The mix comprises one-bedroom, one-bathroom units or two-bedders.
Metro sold 84% (165 out of 195 apartments) of apartments in its New York-style Chelsea development in Bowen Hills to investors, with 90% of these apartments having secured tenants.
The project was developed in conjunction with Indian-based Pearls Australasia.
“Rental vacancies in Brisbane’s inner city are currently very limited,” notes David Devine. 
</body></html>

Inner-Brisbane apartment sales surge as rents rise and investors seize opportunity: Midwood

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While borrowers wait to hear how much of the 25 basis points the major banks will pass on following yesterday’s cash rate cut – ANZ borrowers must wait until Friday 12 October – Property Observer has compiled a list of the lowest fixed and variable rate offerings currently in the market.
Non-bank lender eMoney is offering a three-year fixed home loan at 5.2% – the lowest advertised rate on offer.
eMoney operates as an online lender, based in Homebush, Sydney. Customers can also call to arrange their mortgages. The lender says it can offer such cheap rates by “cutting out the middleman”.
ME Bank, which offers a three-year fixed home loan at 5.39%, says fixed rates continue to be in high demand and now account for 45% by value of all new applications, up from 14% earlier in the year.
Even when the major banks do make their announcements, rate changes are unlikely to take effect immediately.
<a target="_blank" href="/news">Bank of Queensland yesterday trimmed 20 basis points from its standard variable-rate home loan to 6.71%</a> per annum, but only effective from Friday,  October 19, 2012.
The following results are based on advertised mortgage rates listed by <a target="_blank" href="https://www.ratecity.com.au/">ratecity.com.au</a>, <a target="_blank" href="https://mozo.com.au/">Mozo.com.au</a> and <a target="_blank" href="https://www.infochoice.com.au/">infochoice.com.au</a> as of October 3:
Lowest variable rate offerings:
<table width="470" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td width="134" valign="top">
Provider
</td>
<td width="124" valign="top">
Loan name
</td>
<td width="97" valign="top">
Rate
</td>
<td width="116" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="134" valign="top">
eMoney
</td>
<td width="124" valign="top">
Pro Pack 75
</td>
<td width="97" valign="top">
5.6%
</td>
<td width="116" valign="top">
5.94%
</td>
</tr>
<tr>
<td width="134" valign="top">
UBank
</td>
<td width="124" valign="top">
uHome Loan for refinancing
</td>
<td width="97" valign="top">
5.62%
</td>
<td width="116" valign="top">
5.62%
</td>
</tr>
<tr>
<td width="134" valign="top">
Loans.com.au
</td>
<td width="124" valign="top">
Dream Catcher
</td>
<td width="97" valign="top">
5.65%
</td>
<td width="116" valign="top">
6.01%
</td>
</tr>
</tbody></table>
Lowest one-year fixed-rate offerings
<table width="470" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td width="137" valign="top">
Provider
</td>
<td width="123" valign="top">
Loan name
</td>
<td width="95" valign="top">
Rate
</td>
<td width="114" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="137" valign="top">
My Mortgage Freedom
</td>
<td width="123" valign="top">
Fixed Rate loan
</td>
<td width="95" valign="top">
5.34%
</td>
<td width="114" valign="top">
5.98%
</td>
</tr>
<tr>
<td width="137" valign="top">
QT Mutual Bank
</td>
<td width="123" valign="top">
Choice Residential One Year Fixed
</td>
<td width="95" valign="top">
5.39%
</td>
<td width="114" valign="top">
6.05%
</td>
</tr>
<tr>
<td width="137" valign="top">
ME Bank
</td>
<td width="123" valign="top">
Super Member Home Loan Ultimate Offset
</td>
<td width="95" valign="top">
5.39%
</td>
<td width="114" valign="top">
6.57%
</td>
</tr>
</tbody></table>
Lowest three-year fixed-rate offerings
<table width="470" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td width="133" valign="top">
Provider
</td>
<td width="133" valign="top">
Loan name
</td>
<td width="97" valign="top">
Rate
</td>
<td width="108" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="133" valign="top">
eMoney
</td>
<td width="133" valign="top">
Pro Pack 75
</td>
<td width="97" valign="top">
5.20%
</td>
<td width="108" valign="top">
5.87%
</td>
</tr>
<tr>
<td width="133" valign="top">
ME Bank
</td>
<td width="133" valign="top">
Super Member Fixed Three years
</td>
<td width="97" valign="top">
5.39%
</td>
<td width="108" valign="top">
6.05%
</td>
</tr>
<tr>
<td width="133" valign="top">
UBank
</td>
<td width="133" valign="top">
UHomeloan for refinancing
</td>
<td width="97" valign="top">
5.48%
</td>
<td width="108" valign="top">
5.68%
</td>
</tr>
</tbody></table>
Have your say on mortgages and other aspects of the property market. <a target="_blank" href="http://propertyobserver.com.au/ebooks/the-spring-property-outlook-survey">Complete our five-minute spring 2012 property outlook survey</a> for your chance to win an iPhone 5.
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Non-bank lender eMoney offering 5.2% three-year fixed rate: the lowest mortgage rate offerings

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The RBA has cut the cash rate by 25 basis points to 3.25% – the lowest the cash rate has been in three years – but borrowers are unlikely to receive the full benefit of the reduction.
A 25-basis-point rate cut would reduce monthly mortgage repayments on a $300,000 variable rate mortgage by around $50 a month.
Passing on 20 out 25 of the basis points on offer, as the Bank of Queensland announced within two minutes of the 2.30pm RBA announcement, equates to only a few dollars fewer a month, although the banks will face a public backlash if they don’t pass on the full rate cut.
Media attention will focus on the deep pockets of the banks and their recent multibillion-dollar profit announcements in the recent reporting season.
The banks will argue that they have to balance the need of shareholders against those of customers and that aspects of their funding mix remain expensive, including funding from household deposits.
The Reserve Bank indicated today the banks are well positioned to secure additional funding.
“Well-rated banks, and Australian banks have had no difficulty accessing funding, including on an unsecured basis,” said RBA governor Glenn Stevens in the monetary policy decision statement.
It followed comments in the bank's September Financial Stability Review, which noted that “the Australian banking system has remained in a relatively strong position”.
“Pressures in wholesale funding markets have eased since late last year, allowing the large banks to maintain good access to international bond markets during the past six months,” the RBA said.
However, the RBA also noted that banks have reduced their dependence on wholesale funding with a greater reliance on retail deposits to fund mortgage lending.
In his latest banking report, Nomura analyst Victor German said household deposit growth remained strong in August among the major banks, a positive for their overall funding profile, but warned that Nomura’s latest survey of deposit spreads “highlighted that competition for deposits continued to be intense”.
The Australian Bankers’ Association explained in August that banks source their funds from equity investors, depositors and from the short and long-term wholesale markets.
“Deposits and long-term wholesale are the two sources of funds which are now structurally more expensive than they were pre-crisis. Short-term funding and equity are almost back to pre-crisis prices,” it said.
“Banks need to maintain an adequate level of profitability to maintain solid credit ratings which bear directly on the price and availability of funding. Sustainable profitability also provides broader benefits to the community, including employment, salaries and wages, and downstream benefits to partners and suppliers,” said Steven Münchenberg, CEO of the ABA.
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Cash rate cut, but borrowers unlikely to enjoy the full benefit

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The next upswing in the commercial and industrial property market is expected to commence this financial year led by a new wave of office and hotel construction, according to BIS Shrapnel.
While retail construction is expected to  remain weak, investment in bulky good stores spurred on by the competition between DIY store expansions (Wesfarmers’ Bunnings and Woolworths' Masters) will continue, while suburban malls with a strong supermarket presence will also be the focus of new investment.
BIS Shrapnel forecasts – non-residential commencements by sector
<table style="width: 470px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="205">
 
</td>
<td valign="top" width="205">
$ value
</td>
<td valign="top" width="205">
% growth 2012/13
</td>
</tr>
<tr>
<td valign="top" width="205">
Retail
</td>
<td valign="top" width="205">
$4.1 billion
</td>
<td valign="top" width="205">
-10%
</td>
</tr>
<tr>
<td valign="top" width="205">
Offices
</td>
<td valign="top" width="205">
$5.2 billion
</td>
<td valign="top" width="205">
+13%
</td>
</tr>
<tr>
<td valign="top" width="205">
Accommodation
</td>
<td valign="top" width="205">
$1.4 billion
</td>
<td valign="top" width="205">
+43%
</td>
</tr>
<tr>
<td valign="top" width="205">
Transport
</td>
<td valign="top" width="205">
$857 million
</td>
<td valign="top" width="205">
+26%
</td>
</tr>
<tr>
<td valign="top" width="205">
Warehouse
</td>
<td valign="top" width="205">
$2.3 billion
</td>
<td valign="top" width="205">
+12%
</td>
</tr>
<tr>
<td valign="top" width="205">
Other commercial + industrial
</td>
<td valign="top" width="205">
$792 million
</td>
<td valign="top" width="205">
6%
</td>
</tr>
<tr>
<td valign="top" width="205">
Total for sector
</td>
<td valign="top" width="205">
$15.5 billion
</td>
<td valign="top" width="205">
6%
</td>
</tr>
</tbody></table>
 
Across commercial property, the research firm is forecasting a 6% rise in building commencements in the next financial year after no growth 2011-12 as part of a “prolonged upswing” for the sector.
However, in its Spring 2012 Forecasts, BIS Shrapnel warns that businesses will remain wary about committing to new developments “even as undersupplies in some markets become increasingly evident”.
BIS Shrapnel is forecasting office starts to lift by 13% to $5.17 billion in 2012-13 as the national office market tightens over the next few years. This follows an estimated 4% rise in office commencements to $4.39 billion in 2011-12.
“While the current economic climate is volatile gradual growth is expected which will flow through positively to employment.
“At the same time, the rate of completions will persist at a low level, limiting additional supply. As this occurs effective rents and prices will rise and supply will react in most markets," says BIS Shrapnel.
New building construction in the accommodation sector is estimated to have risen by 21% over 2011-12 to just under $1 billion, and BIS Shrapnel is tipping a 43% surge to $1.35 billion in 2012-13.
 
<hr class="system-pagebreak">
 
“A gradually strengthening global economy will provide support for accommodation demand from both tourists and business, while the addition to room supply will remain constrained given weaken construction volumes over recent years – pushing up room rates and occupancy levels further, encouraging development," says BIS Shrapnel.
“It is noted that while the more business focused CBD markets look relatively healthy, conditions for tourism-focused operators remain tougher, especially in markets like the Gold Coat and borth Queensland,” says BIS Shrapnel.
Retail building is expected to remain weak in 2012-13, with BIS Shrapnel saying that the weaker economy and competition from online retailers has resulted in weaker trading results, meaning that the expansion plans of many retailers and shopping centres developers are on hold.
Despite an expected improvement in economic conditions, the flow-through effect on new shopping centre construction will take time.
Investors wanting to take a punt in the retail space should consider bulky good centres and neighbouring shopping centres, says BIS Shrapnel.
“Bulky goods centres and neighbourhood shopping centres building has outperformed and this is anticipated to continue for the near future.
“This reflects the relatively aggressive expansion plans including ALDI, Woolworths (especially with their new Masters hardware chain), Wesfarmers and Costco."
A sustained commercial property recovery is also tipped by ANZ in its September property outlook update following the sector "plateauing" in 2012.
“Market fundamentals still suggest the broader ex-retail commercial property market is at the early stages of a multi-year cyclical upswing.
“Low vacancy and restricted supply present considerable upside to effective rents, particularly in the office and industrial sectors. Moreover, current yields belie the positive fundamentals and will firm as investor sentiment rebounds,” says ANZ in its report, authored by its head of property research Paul Braddick and other ANZ economists.
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Offices, business hotels and bulky goods stores to lead next commercial property investment upswing: BIS Shrapnel

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<img src="/images/stories/2012/09/centurialogo.jpg">
Jason Huljich, CEO of Centuria Property Funds, talks about investments, the industry and his love for the iPad 2
How long have you been in the industry?
<ol></ol>
I have been in the property industry for 16 years. I moved over from New Zealand in 1996 when I finished university in Auckland and worked for a Sydney-based developer. I then worked for a property consultancy specialising in work outs of problem property for banks. This was invaluable experience and really taught me how to work through problems by being creative to come up with solutions. I then formed Century Funds Management with my business partner in 1999. We bought two other unlisted property fund managers over the next 10 years and grew it into what is now the ASX-listed Centuria Capital with over $2 billion in funds under management.
<img src="/images/stories/2012/09/jasonh1.png" style="margin: 5px; float: left;">
What’s happening in the area you specialise in? <ol></ol>
We are seeing a strong pick-up in demand for our unlisted property funds from high-net-worth investors and the wealth management platforms. Low-term deposit rates and stock market volatility means investors are looking at other investment sectors. There are currently some fantastic investment opportunities in CBD locations showing strong yields and excellent potential for capital gains.
Describe the most interesting property development or transaction you have been involved in. <ol></ol>
We have been involved in many interesting investments, however the ones I most enjoy are the investments that evolve over time. We have had a number of investments where we purchased as fully leased commercial office buildings that returned strong distributions to investors. Over time we were then able to change the use of these properties to residential development sites and worked up development applications for medium/high-density housing. These have been some of our best-performing investments.
What are the ingredients to being successful in your job? <ol></ol>
The key ingredients are patience, being able to problem solve, taking calculated risks where necessary and building strong industry relationships. Your integrity and reputation are extremely important and if you treat someone badly the whole market will find out.
What aspects of your role do you enjoy the most?
I enjoy working with our motivated staff. We have a great team of hard-working, ambitious employees, and we work well together. We are large enough to attract some fantastic people but small enough to be dynamic and not to have to endure any petty politics.
Where would invest a spare $750,000? <ol></ol>
I would invest this in our next property fund. The opportunities we are seeing in the market are the best I have seen for 15 years.
Which football team do you support? <ol></ol>
Being from NZ, I support the All Blacks and this has been very enjoyable over the last few years. In the NRL I support the Warriors, which hasn’t been so enjoyable.
What’s your favourite app or techno gadget? <ol></ol>
My favourite gadget us my iPad 2. It is fantastic for travelling and in my role I travel a lot.
How do you use social media? <ol></ol>
This is a work in progress for us. As a business we have struggled to find ways to utilise social media effectively. Our core investor base are high-net-worth investors who are usually 50 years plus. To date we haven’t found a way to use Twitter or Facebook that helps our clients and brings us in business. We do have a terrific online portal that we have developed from scratch that allows our clients to manage all of their investments, distributions and communications however integrating this with social media has been challenging.
Jason Huljich: <a href="https://www.linkedin.com/pub/jason-huljich/8/744/20b" target="_blank">LinkedIn profile</a>
</body></html>

In profile: Jason Huljich, CEO of Centuria Property Funds

<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

<main data-perf-region="main">
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>
</main>

Larry Schlesinger

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