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A private investor has paid $800,000 at auction for a two-storey shopfront and residence on Puckle Street, the popular retail strip in Moonee Ponds in Melbourne’s north-west.
It also features a courtyard and two rear car spaces.
<img src="/images/stories/2012/09/margaretstshop.jpg">
<a href="https://www.realcommercial.com.au/property-retail-vic-moonee+ponds-500392031" target="_blank">The property </a>(pictured above) was marketed by Campbell Dickinson of Rendina Real Estate Kensington, who tells Property Observer he received “good interest” from around 20 parties over the four weeks leading into the auction.
The ground floor is leased to Yim Yam Thai Laos Restaurant on a three-year lease with a three-year renewal option started this year in January.
Yim Yam Thai Laos is paying $24,500 per annum plus GST and outgoings.
The three-bedroom apartment above is currently leased on a month to month, equating to $16,000 per annum.
Combined, the two spaces provide monthly income of around $3,375 per month, a gross yield of around 5% when fully leased.
Dickinson says the investor might look to develop the property down the track.
According to research by Knight Frank, <a target="_blank" href="https://www.propertyobserver.com.au/retail/melbourne-shopping-strip-bridge-road-richmond-has-highest-vacancy-rate-in-five-years/2012091656593">Puckle Street has one of the lowest vacancy rates of the suburban retail strips</a>, with vacancies rising just 0.5% to 4.2% over the past two years.
Realcommercial.com.au lists five shops available for rent on Puckle Street.
For more commercial property sales, visit our dedicated Commercial hammer prices section on the website
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Commercial hammer prices: Puckle Street restaurant plus upstairs apartment sells for $800,000 on 5% yield

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Hair salon Clash City Cuts has taken up space in the heritage-listed Capitol Arcade, which runs through what was once the auditorium of the Capitol Theatre, between Swanston and Little Collins streets in the Melbourne CBD.
The arcade is next door to the iconic, neo-gothic Manchester Unity Building and across the road from the Melbourne Town Hall.
Clash City Cuts (pictured below) has agreed to lease shop five at 109-117 Swanston Street for four years with renewal options at a rate of $1,600 per square metre net.
<img src="/images/stories/2012/09/clashcity.jpg">
The lease was negotiated by Andrew Hewett of Fitzroys on behalf of a private investor who has interests in other CBD properties.
Hewett says there was keen interest in the space from a range of tenants given its central location in the heart of Melbourne and the strong tenancy mix surrounding the property.
Immediate neighbours include Phillipa’s Bakery, Alannah Hill, 7 Angels and Jeans West.
The arcade is named after the Capitol Theatre, which was designed by Walter Burley Griffin and his wife Marion Mahony Griffin.
Burley Griffin trained with the famed American architect, Frank Lloyd Wright.
The theatre opened in 1924 and converted to a single-level cinema and shopping arcade in 1965.
The theatre was acquired by RMIT University in 1999.
For more commercial leasing deals visit our dedicated leasing page.
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Leasing ladder: Hair salon takes up historic arcade space in Melbourne CBD at $1,600 per square metre

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Outside of Perth and Brisbane, the nascent office market recovery has plateaued in the first half of 2012 due to investor uncertainty, says ANZ in its September Property Outlook report.
The chart below shows how Perth average rents have climbed since 2010 from around $500 per square metre to around $700 per square metre, with other capital city markets unable to match this growth.
In the case of Sydney, Melbourne, Canberra and Adelaide, rental growth has stalled.
Click to enlarge
<a title="Click to enlarge" href="/images/stories/2012/09/anzsept28.gif" rel="shadowbox"><img src="/images/stories/2012/09/anzsept28thumb.gif"></a>
"The weakening in Sydney,Melbourne and Adelaide has been particularly sharp as labour markets in those states have lost momentum," notes ANZ.
"Looking ahead, cost pressures will continue to weigh on the financial services and public sectors and will restrain the demand for office space, particularly in the south eastern states. Moreover, ongoing economic and financial market uncertainty will further delay any yield compression."
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Outside of Perth, office rents have stalled; Commercial Property chart of the week

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The housing industry has welcomed the RBA cutting the cash rate by 25 basis points today to 3.25% and expects a follow-up rate cut when the bank next meets on Melbourne Cup Day on November 6.
The rate cut came despite capital city <a target="_blank" href="https://www.propertyobserver.com.au/residential/surprise-14-rise-in-capital-city-dwelling-values-highest-in-30-months-but-moderate-growth-ahead-rp-data-rismark/2012100256920">dwelling prices surging 1.4% in September</a>, according to RP Data-Rismark.
Praise for the rate cut came from the Housing Industry Association (HIA), which represents the struggling residential building sector.
The HIA says the rate cut was appropriate “given current economic conditions, which are highlighted by the parlous state of the residential construction industry”.
HIA chief economist Dr Harley Dale called on lenders to “deliver today's interest rate cut in full, without delay, to provide the appropriate relief to businesses and mortgage holders".
"There is no funding cost wall to justifiably hide behind," says Dale, who adds that there is also a need for a follow-up interest rate cut on Melbourne Cup Day, with “widespread expectation for that outcome”.
The HIA prepared the following chart, which show that while margins banks earn on mortgage lending fell in August (the grey bars), they still remain at historical highs.
Click to enlarge
<a href="/images/stories/2012/09/hiaoct2.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/09/hiaoct2thumb.gif"></a>
Real Estate Institute of Australia (REIA) president Pamela Bennett said today’s decision “is a great relief for home owners and potential buyers”.
“Home owners always like to see interest rates go down.  This cut means the average loan repayment is reduced from $2,155 to $2,105 or by $50 per month.”
Mark Courtney, Colliers International research director, says the collective 75-basis-point drop in the cash rate over May and June has gone some way to improving confidence in the housing sector, but the latest rate cut was necessary in order for the real estate industry to see a sustained improvement in conditions.
“This year’s rate cuts have contributed to a significant improvement in housing affordability and allowed households additional capacity to repair their balance sheets, and today’s 25 basis point cut will only help the situation further,” he says.
“These drops have gone some way to improving confidence amongst consumers, who have been exercising caution particularly due to the financial situation in the eurozone.”
But he said more cuts were needed this year because from a "property perspective" one rate cut was not enough.
 
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Economists were more circumspect in their responses.
CommSec chief economist Craig James says the RBA “acted to insulate the Australian economy from weakness abroad”.
But he says that while rate cuts have in the past acted to stimulate activity, "the impact on the economy today is more ambiguous".
“While rate cuts help borrowers, they hurt savers," says James.
“The number of savers has soared and currently deposits are creeping up to be almost neck and neck with loans. Deposits represent around 90% of loans outstanding, well up from 75% just five years ago.
“Further only a third of households benefit from a rate cut with a third of families renting while a third of families fully own their homes. The non-home buying public tend to be savers rather than borrowers. So a rate cut will hurt all the families living off interest income.”
James says confidence remains the pertinent question.
“If people don’t have the confidence to spend and instead continue to save and pay off home loans at a faster rate, then the rate cut will have no impact on activity.
“It is also important to note that it is the level of interest rates that does the hard lifting work in the economy, not the change in rates. Interest rates are already below longer-term averages. And judging by what has happened in previous months, home borrowers are more likely to respond to a rate cut by paying off their home loan at a faster rate, rather than going on a spending spree.”
Rismark economist and Australian Financial Review columnist Christopher Joye tweeted that home variable home loan rates would “fall to around 5.4% and 5.5% (near GFC lows); 3yr fixed rates as low as 5.3%”.
“Near GFC lows in home loan rates will galvanize recovery in house prices - great news for home owners,” he added in a follow-up tweet.
Australian Property Monitors senior economist Dr Andrew Wilson called the rate cut good news for home buyers and housing affordability but questioned in a tweet that it “seemed a speculative move as economic drivers have improved recently”.
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Housing industry welcomes RBA cash rate cut and expects another on Melbourne Cup Day 

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Capital city property markets have recorded their strongest gain in more than 2 ½ years, rising 1.4% over September led by a 2.4% gain in Adelaide, with strong support from Perth, Sydney and Melbourne.
The result was the largest month-on-month rise recorded since March 2010 and means that capital city dwelling values are now 0.8% higher over the first nine months of 2012, with a median dwelling price of $450,500.
Five of the eight capital cities are now in the black for the first nine months of the year, led by Darwin, up 6.3%, with Sydney dwelling prices up 3.4%.  Melbourne dwelling prices are down 1.2% for the year.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/09/rpoct21.gif"><img src="/images/stories/2012/09/rpoct21thumb.gif"></a>
Source: <a href="https://www.myrp.com.au/" target="_blank">RP Data</a>
The September gain followed capital city property markets recording no gain in traditionally quiet August, following a 1% gain in June and 0.6% rise in July.
RP Data research director Tim Lawless told Property Observer he expected a continued recovery in prices over the next few months, but not at the magnitude of the September gain.
“It’s a pretty big number (1.4%) and it was quite a surprise – but we are tipping more moderate growth in capital values with the market remaining in the black.”
Lawless highlighted the fact that there had now been four straight months where the property market has avoided a decline.
 
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He said the property market was also showing more appeal for investors, with rents rising faster than capital values, while renters were also starting to "do the sums" and considering buying.
Lawless says Perth has the best property market fundamentals going forward, with rents growing at double-digit rates and a “burgeoning level of confidence, despite tremors in the resources sector”.
Lawless said the Sydney market also had strong fundamentals, while Melbourne “continues to surprise”, with prices up 4% since bottoming out in May.
“Melbourne is looking like a pretty reasonable market.”
Lawless labelled the Adelaide results also something of a surprise given the recent announcement regarding BHP’s decision not to go ahead with the Olympic Dam mining expansion project suggesting a more resilient than expected housing market.
He said the improving market conditions could mostly be tied back to the low interest rates currently in place.
“It’s no coincidence that housing market conditions bottomed out at the end of May, after the Reserve Bank cut the official cash rate by 50 basis points.
“A further cut of 25 basis points in June and the anticipation of further rate cuts in the pipeline appear to have instilled renewed confidence in the housing market which has driven the growth in home values,” Lawless said.
However, he said he expected the RBA to leave rates on hold at its October meeting, though it would be a close call.
“This renewed strength in the housing market is likely to be one of the key deliberation points when the Reserve Bank meets today.
“The Bank will want to keep a lid on housing prices from a financial stability perspective, while at the same time ensure interest rates are low enough considering the decline in commodity prices and Australia’s terms of trade.”
Lawless said other factors supportive of a housing market recovery are auction clearance rates tracking about 10 percentage points higher than what they were last year, capital city listings now lower than at the same time last year and vendors discounting their asking prices by a lesser amount.
 
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Adelaide recorded a gain in both its detached house and unit prices over September.
House prices rose 2.4% to a median of $385,000 while unit prices were up 1.9% to a median of $315,000.
The second best performer over September was Perth, with capital values up 1.6% to a median of $450,000.
This gain was mainly the result of Perth units, which was the est performing market in September across both houses and units was the Perth unit, with median prices up 4% to a median of $380,000.
Perth house prices were up by a more subdued 1.4% to a median of $467,000.
Sydney dwelling prices gained 1.5% in September to a median of $522,000 with Melbourne just behind with a 1.4% gain to a median of $470,000.
Sydney gained ground on the back of 1.9% rise in house prices ($587,000) with unit prices treading water, down 0.1% to a median of $470,000.
It was a similar story in Melbourne, with stronger gains in house prices (up 1.5% to median of $507,750) and smaller rise in unit prices (up 0.6%) to median of $417,500).
Brisbane managed dwelling price capital growth of 1.1% over September ($427,500).
The smaller capital city markets of Darwin (-2%), Canberra (-0.6%) and Hobart (-0.2%) all lost ground in September.
Darwin remains an investor hotspot returning the highest rental yields of all the capital cities for both houses (gross rental yield of 6%) units (6%).
Melbourne is delivering the weakest returns to investors with houses yielding a 3.6% and units, 4.3%.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/09/rpoct22.gif"><img src="/images/stories/2012/09/rpoct22thumb.gif"></a>
Source: <a target="_blank" href="https://www.myrp.com.au/">RP Data</a>
On a quarterly basis, capital city dwelling values recorded a 2.0% capital gain, which is the highest quarterly result since the three-month period ending May 2010.
Rismark International CEO Ben Skilbeck noted that the recovery in the housing market “is broad based and not simply attributable to a seasonal spring uptick”.
“Over the four months from end May to end September actual Australian capital city house values have increased by 3.4%.
“If we adjust this to take into account seasonality, the increase is still a strong 2.9% which represents an annualised pace of 9% per annum.”
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‘Surprise’ 1.4% rise in capital city dwelling values highest in 30 months but moderate growth ahead: RP Data-Rismark

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Woolworths is continuing with its preparations to offload up to 70 shopping centres its own worth around $1.5 billion.
The group is believed to be favouring setting up an independent listed property fund (A-REIT) that would hold the assets, according to a report in the Australian Financial Review.
Woolworths is being advised by Citi with plans to raise more than $400 million for the fund, which would also allow Woolworths to make strategic property acquisitions into the fund in the future.
The proposal has the backing of analysts and fund managers.
Commonwealth Bank analyst Andrew McLennan said that the “rising amount of property on Woolworths’ balance sheet was constraining cashflows that could otherwise go to capital management”.
McLennan added that he expected Woolworths to come up with structures that ensure the spin-off went smoothly.
Brett McNeill, investment manager at Antares Equities, said if the fund had good governance practices and was structured well, there was no reason why it couldn’t trade well.
According to the AFR, there is excitement among some fund managers about the idea of a Woolworths property fund, which would be seen as one of the “first high-quality offers for some years after some smaller industrial and office plays”.
Woolworths has already sold off some of its shopping centres in recent times.
In July last year, eight neighbourhood and sub-regional retail shopping centres were sold to  a 50/50 joint venture entity owned by Charter Hall Retail REIT and Telstra Super for $266 million.
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Woolworths considering spinning off property holdings into A-REIT

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Residential property developer Peet expects “conditions” in the residential property market to remain “volatile and challenging" into 2013 with business and consumer confidence remaining low despite the series of rate cuts in the previous financial year.
However, Peet managing director and CEO Brendan Gore did note in the company’s annual report that “positive signs” have emerged in the Western Australian property market in the first months of the year.
And he said there are also plans to accelerate development of Peet's Vantage master-planned residential community in Gladstone, the mining hotspot 550 kilometres north of Brisbane.
However, the overall tone of the annual report was one of a challenging year ahead for Peet and others operating in the residential development sector.
“The 2012 financial year delivered some of the most challenging conditions experienced in almost 20 years and there is little expectation that markets will improve significantly in the 2013 financial year,” said Gore.
“The series of interest rate cuts in 2012 has not had the desired effect to date and consumer and business confidence remains low."
He did add that the long-term fundamentals of the Australian property market – including population growth, an under-supply of housing and a tight rental market – “remain conducive to an improving market.
“However, the catalyst for household confidence, which will underpin improved demand in the residential property market activity, is yet to be found.”
Gore says Peet would be well prepared to "respond quickly and effectively to any improvement in consumer sentiment and the residential market".
“However, given the ongoing uncertainty in Australia, and until the timing and strength of the expected recovery is confirmed, the directors are unable to provide guidance on 2013 operating earnings with any degree of certainty."
Peet recorded a net operating profit after tax of $20.3 million for the year to June 30 and statutory net profit after tax for the full year of $5.4 million, representing a decrease of 76% compared to the previous corresponding period.
Shareholders did not receive dividend payment.
Peet chairman Tony Lennon said he appreciated this would be disappointing for investors, but said he trusted investors “have confidence in our ongoing dividend payment policy and the validity of the reasoning behind the decision taken”
Lennon said the year ahead would be a period of consolidation for Peet.
“We are operating in exceptional times where, despite the relative wealth of our own nation, we are heavily impacted by the global economy and consumer and business confidence has been low over a sustained period of time.
“This time last year, it was the crisis befalling some European economies and concern about the United States’ debt ceiling issue. This year, the slowing of the Chinese economy and falling commodity prices are also having significant flow-on effects in Australia and consumer and business sentiment remains cautious.
But he said the company was well positioned with “quality assets in good locations around Australia”.
“We have managed through a number of cycles and will continue to maintain the rigour required during the current market conditions, while positioning the company to capitalise on any upturn in consumer sentiment.”
Peet’s biggest residential project is Flagstone City, 45 minutes south-west of Brisbane in Jimboomba, which has a gross development value of $1.87 billion and is due to begin in 2013. It features 1,500 lots and is proceeding as scheduled.
In total Peet has a lot pipeline of 34,600 worth $6.2 billion.
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No property market recovery in 2013, but some early positive signs in WA: Peet

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The self-appointed "shadow" RBA board favours the Reserve Bank leaving the cash rate on hold today at 3.5% but expects a rate cut in the medium term.
The board is comprised of economists and academics that meet under the banner of the Centre for Applied Macroeconomic Analysis (CAMA) at Australia National University.
Keeping the interest rate unchanged at 3.5% received nearly 60% weight, considerably above the next most popular setting — a decrease to 3.25% — which received a 30% weight.
For the RBA's September decision, keeping the interest rate unchanged at 3.5% received around a 65% weight from the shadow board.
In October, the shadow board saw evidence of weakening inflationary pressures and a risk that the current cash rate should be lower.
"The corresponding figures for September suggested both more upside risk and less downside risk to inflation. With some evidence that inflationary pressures will continue to abate in the coming months, there is greater scope for lower rates in the medium term. Support for a decrease in the cash rate over the next six months was just over 50%.
“Support for a decrease in the cash rate over the next six months was just over 50%," said the shadow board.
Shadow board member Saul Eslake, chief economist at Bank of America Merrill Lynch Australia and formerly chief economist at ANZ for 14 years, says the argument for a rate cut is “getting stronger — given the ongoing slowdown in China, and the impact that’s having on commodity prices — but not, so far, on the Australian dollar”.
“However, it’s not yet clear to me that, overall, the negative effects of persistent Australian dollar strength have started to overwhelm the other factors that have kept the unemployment rate steady in a 5% to 5.25% range and growth close to or even slightly above its trend pace so far this year. I expect rates eventually will need to fall, but I’m not ‘over the line’ for October.”


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Another shadow board member, Jeffrey Sheen, professor and head of economics at Macquarie University, says that Australian foreign interest rate differentials are “probably appropriate to this stage of the mining boom, delivering expected future depreciation”
“The expected weakening in the terms of trade — down a little from a 50-year high — will assist this depreciation in due course.”
He also pointed out that there have been no significant changes to global macro risks in the last month.
Shadow board member Paul Bloxham, chief economist at HSBC Bank Australia, says he favours holding rates steady this month, although he says he would be willing to consider cutting rates by 25 basis points.
“Conditions locally and in China look fairly similar to last month. Western growth is still slowing, but it is not clear how much further downward pressure that will put on growth in Asia. Commodity markets have generally stabilised. The local unemployment rate remains low.”
“While there are some signs that employment is easing, timely indicators do not decisively point to weaker conditions. Monetary policy is starting to lift the housing market. Inflation was low in the second quarter, but there is no new price data this month to confirm that this has continued to be the case in the third quarter.
“Given limited urgency to cut rates further, and signs that lower rates are providing some support for the economy, I would prefer to wait for the third quarter CPI for confirmation that inflation remains low before cutting rates further if needed,” said Bloxham
The full shadow board is:
Shaun Vahey, Professor, RSE, ANU. (non-voting chair)
Paul Bloxham, Chief Economist (Australia &amp; New Zealand), HSBC Bank Australia Ltd
Mark Crosby, Dean of the Global MBA Program, Acting Dean of the Global BBA Program, and Professor of Economics, S P Jain Center of Management in Singapore
Mardi Dungey, Professor, University of Tasmania, CFAP University of Cambridge, CAMA
Saul Eslake, Chief Economist, Bank of America Merrill Lynch Australia
Bob Gregory, Professor Emeritus, RSE, ANU, Professorial Fellow, Centre for Strategic Economic Studies, Victoria University, Adjunct Professor, School of Economics &amp; Finance, Queensland University of Technology
Warwick McKibbin, Professor, RSE, ANU, CAMA
James Morley, Professor, University of New South Wales, CAMA
Jeffrey Sheen, Professor &amp; Head, Department of Economics, Macquarie University,Editor, The Economic Record, CAMA
Mark Thirlwell, Director, International Economy Program, Lowy Institute for International Policy
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RBA should keep cash rate on hold at 3.5%: Shadow board

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Were he alive today, bush poet Henry Lawson might have penned a few lines about soaring property values in the central NSW country town of Grenfell, the place of his birth, which ranks 22nd on RP Data’s list of top 100 capital growth suburbs and regions.
Grenfell, about 370 kilometres west of Sydney in Weddin Shire, is also the cheapest entry on the top 100, with median property values sitting at just under $150,000 – up from $125,000 in June 2011, a gain of 20%.
There have been very few established houses sold in Grenfell over the past year, according to RP Data records, with most sales being rural blocks and farm land.
Properties that have sold in the 12 months to June include a single-story three-bedroom house on Wood Street with a swimming pool, which sold for $170,000 in October last year.
There are currently just 34 property listings for Grenfell on realestate.com.au – most of them vacant land or farm land.
Currently listings<a target="_blank" href="https://www.realestate.com.au/property-lifestyle-nsw-grenfell-7318050"> include this three-bedroom wood cottage</a> (pictured below) on 5.5 hectares, asking $199,000 through Marie Jamieson of Jamieson Real Estate – Young.
<img src="/images/stories/2012/09/starst.jpg">
The property has been listed for sale for nearly four years. It was originally listed at an asking price of $235,000.
For those with bigger budgets, and a desire for something historic and grand, <a target="_blank" href="https://www.realestate.com.au/property-mixed+farming-nsw-grenfell-7442013">currently listed for sale is "Pinnacle Homestead" on Pinnacle Road</a> (pictured below), a fully renovated Victorian homestead on 517 hectares, which has an asking price of $1.457 million and dates back to 1882. It is being sold by Ainslie Toole of Landmark NSW, who describes it as one of just a few historic homesteads "offered at such a high standard".
<img src="/images/stories/2012/09/pinnacle.jpg">
 
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Grenfell is one of only two suburbs on the list with a median price under $200,000 – the other being Stawell in the Wimmera region of Victoria, 237 kilometres north-west of Melbourne, which ranked 29th out of 100 with house prices up 18.4% over the year to June, from $149,000 to $176,000.
The third cheapest location is Cobar, a remote outback town in central western NSW towns with ties to copper mining and other mining projects, where median values rose 12.9% over the year to June, rising from $184,000 to $208,000.
According the 2011 census, Grenfell has a population of just under 3,000 people ,with 1,400 dwellings, more than 90% detached housing.
There is a high degree of home ownership, with more than half of dwellings (51.7%) owned outright and a quarter (23.2%) owned with a mortgage. Fewer than a quarter (21.5%) of Grenfell’s residents rent.
Mortgage stress is low in Grenfell, with only 4.8% of households spending more than 30% of their household income on mortgage payment, less than half the state average of 10.5%.
Median weekly rent is $119, meaning an indicative rent of just over 4% based on the current median price.
Amenities in Grenfell include a plethora of churches, a number of schools (including Henry Lawson High School), a pharmacy, Grenfell Hospital, local newspaper the Grenfell Record and an art gallery on main street.
Lawson was born among the goldfields of Grenfell in 1867 “just metres from mineshafts”, according to grenfell.org.au, and penned a number of poems about the town, including Said Grenfell to My Spirit, written in 191, which includes the lines:
“Though you sing of dear old Mudgee and the home on Pipeclay Flat, You were born on Grenfell goldfield – and you can’t get over that."
His died in 1922, with his place of birth marked in 1924 by an obelisk, which now stands under a large sugar gum tree planted by his daughter Berth Jago.
A Henry Lawson festival is held every year in Grenfell.
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Cheapest of RP Data’s 100 growth suburbs, Grenfell rising property values would have inspired native son Henry Lawson

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Bank of Queensland has passed on only 20 out of the 25 basis point rate cut announced by the RBA today, an indication that other banks won't pass on the full rate cut.
The 20-basis-point rate cut brings BOQ's standard variable rate home loan to 6.71% p.a. effective from Friday, October 19, 2012.
"Given the continuing pressure on the cost of funding a 20 bps reduction is the best balance between our customers and shareholders,” CEO Stuart Grimshaw says.



“We are also conscious of pressure facing all of our customers, including those with home loans and those with deposits, and believe the 20 bps cut also strikes a fair balance between the two.”
Ken Raiss, director at national accounting, property and wealth advisory group Chan &amp; Naylor, anticipated the issue of whether or not the banks would pass on the full rate cut pre-announcement.
"The rate cut is to stimulate demand and confidence, something which is unlikely to happen unless it is passed on," he says.
“Bank rates need to reflect the true economics of the economy,” says Raiss.
“Banks must align their rates official cash rates and increase availability to loans.”
Meanwhile, Suncorp and NAB have been the standout lenders in terms of funding new mortgages over the past three months to August, according to analysis of the latest APRA banking figures by Nomura.
Queensland-based bank Suncorp has grown its mortgage book by 11.1% between July and August to $32 billion (more than double the <a target="_blank" href="/news">current annualised mortgage growth rate of 4.8%</a>), while NAB has achieved impressive growth of 8.3% off a much larger book, which has grown to $186 billion.
ANZ has pulled back on mortgage lending recording growth of 5.4% over the August quarter – compared with annualised growth of 8.6%.
The Commonwealth Bank and Westpac remain the laggards in terms of new mortgage lending, with growth of just 4.2% each over the August quarter – below system growth of 4.8%.
The Commonwealth Bank’s mortgage book stands at $260 billion.
APRA counts Commonwealth Bank subsidiary Bankwest as a separate entity, with a $48 billion loan book, giving the Commonwealth Bank group a $308 billion combined mortgage book.
Westpac (including its subsidiary banks) has a loan book worth $293 billion.
According to Nomura analyst Victor German, the August APRA figures show that ANZ’s mortgage growth rate continues to converge with the average of the major banks.
However, he says NAB is continuing to gain market share, growing at one-and-a-half times the majors’ growth rate over the past three months.
“We believe this is positive for NAB’s longer-term profitability as long as funding is available.
“Both the Commonwealth Bank and Westpac continue to lose market share in mortgages as they defend their back book profitability,” he says.
NAB’s ability to grow its share of mortgage lending has been funded, in part, by its expanding deposits base.
The total value of deposits held by NAB are up by an impressive 16.5% over the past three months to $235 billion, ahead of the Commonwealth Bank (quarterly growth of 15.6%), Westpac (11.2%) and ANZ (4.7%).
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Banks reluctant to pass on full 25-basis-point rate cut

<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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