<html><body>
The Reserve Bank is likely to leave interest rates on hold at its October monetary policy meeting next week, though it will be a close call, says HSBC Australia chief economist Paul Bloxham.
Bloxham says with inflation low, the RBA has scope to cut rates if it needs to.
“But we don’t think the hurdle has been met for a cut next week.
“We still favour a cut in November, assuming China’s economy does not show definite signs of recovery, and think that the 100 basis points of loosening priced in over the next year is too much," he says.
In his last RBA bulletin before Tuesday’s monetary policy meeting, Bloxham notes that housing prices are lifting, with a “solid rise in prices in September; home auctions in Sydney and Melbourne in recent weeks have seen rising clearance rates, a signal of improving turnover.
“Building approvals for housing are past their trough. Business credit has been growing in recent months, after falling in recent years.”
He has also not been swayed by the<a href="/news"> likes of Westpac’s Bill Evans</a>, who shifted his view last week from a November rate cut to an October rate cut.
Other economists tipping a rate cut next week include AMP Capital’s Shane Oliver, Stephen Koukoulas from Market Economics, Dominic Bryant from BNP Paribas Asia and ANZ Research.
Bloxham says there are two narratives the RBA board is following that will dictate its decision-making – where the global economy is heading and how previous rate cuts are impacting locally - and says other economists and commentators are over-analysing speeches and statements made by the central bank.
“Reading more into the RBA’s recent individual word choices, or phrasing, is false precision,” says Bloxham.
On the global front, Bloxham says the mid-year rate cuts of 75 basis points in May and June were made to get the RBA “ahead of the game” and that the “more subdued global outlook was needed to justify the current policy stance”.
Further deterioration globally would be necessary for the RBA to contemplate a rate cut.
“Globally, we think things are about the same as they were last month, on balance, from Australia’s perspective. China’s PMI (manufacturing index) was stable, commodity prices bounced back a little and QE3 (the US government bond-buying program) has removed some of the downside risk of a sharper US slowing. European conditions have weakened, but probably no more than expected,” says Bloxham.
Domestically, Bloxham says the RBA narrative has been that “the full effect of the previous cuts is yet to flow through, though they noted tentative signs that monetary policy is supporting the housing market and lifting business credit”.
“Domestic indicators suggest growth has been modest into the third quarter of 2012. Retail sales fell in July, but the RBA told us their liaison suggested sales rose in August.
“Business conditions and confidence tracked broadly sideways into August, and consumer sentiment has been steady. Employment and hours worked eased in August, but the unemployment rate remains low at 5.1%, despite RBA forecasts that it would head towards 5.5% in the second half of 2012.
</body></html>

lschlesinger-FZcF9M3vE6

Stronger housing market among factors that will cause the RBA to keep the cash rate on hold next week: HSBC’s Paul Bloxham

<html><body>
Conditions are improving for first-home buyers making their initial property acquisition, according to Genworth’s September Homebuyer Confidence Index.
While the index measuring first-home buyer confidence dipped slightly by 0.5 points to 98.5 it remains above the national average for all home buyers of 98.4.
It also found that half (54%) of surveyed first-home buyers believe it is a good time to buy a home, a figure that has more than doubled in the last two years.
Genworth also recorded a drop in potential first-home buyers who were deterred from buying because they were unable to save for a deposit (down from 30% in March to 11% in September 2012) or unable to afford repayments (down from 14% in March to 5% in September 2012).
First-home buyers also appear more comfortable with saving a smaller deposit and taking on a bigger mortgage debt.
Among first-home buyer respondents to the survey, 39% say they are saving less than a 10% deposit, compared with 34% who said so in the March survey.
First-home buyer affordability expectations by state
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/09/genworthsept28.gif"><img src="/images/stories/2012/09/genworthsept28thumb.gif"></a>
Source: Genworth
However, the results show wide disparities in deposit comfort levels across states, reflecting different levels of affordability and sensitivity to interest rate cuts.
First-home buyers in Western Australia are most comfortable with a smaller deposit, with nearly-two thirds (64%) saving less than 10%, compared with just over a third of WA first-home buyers in the March survey.
Victorian first-home buyers are also more comfortable with a smaller deposit, with 44% saying they are comfortable with a 10% deposit.
The opposite trend was reported in NSW and Queensland. 
The report also found that the proportion of surveyed recent first-home buyers who had experienced mortgage stress in the last 12 months fell from 16% in March 2012 to 13% in September 2012.
However, the proportion expecting difficulty in the coming year rose from 16% to 18%. 
The Genworth reports also notes that changes to first-home buyer incentives offered in each state will mean this group will face different amounts of pressure in different areas in the future.
“Despite a slight fall in first-home buyer confidence, this segment of the market remains more optimistic that now is a good time to buy a home," says Genworth CEO Ellie Comerford.
“What is more heartening is that first-home buyers are increasingly confident they can save the deposit necessary to buy their first home.”
What do you think the spring 2012 property market holds for first-home buyers and others? <a target="_blank" href="http://propertyobserver.com.au/ebooks/the-spring-property-outlook-survey">Complete our five-minute survey</a> for your chance to win an iPhone 5.
 
</body></html>

First-home buyers facing fewer hurdles to getting onto the property ladder: Genworth

<html><body>
NRL fans will have one eye on the grand final and the other browsing new home listings this grand final weekend as the NSW government’s more generous first-home buyer scheme kicks in Monday.
From October 1 first-home buyers in NSW will be eligible for a $15,000 grant from the NSW government to build or buy a new home under the first home owner grant (new homes) scheme.
The maximum total value of the new home cannot exceed $650,000. 
An application for the grant can be made through a lender or through the NSW Office of State Revenue (OSR).
Applications made through a lender will result in the grant paid on settlement if you are buying a new house or, if you are building a new house, on the first draw down on contracts to build.
You can apply through the OSR after your new house is built or upon settlement once you are registered on title.
The eight-page application form can be downloaded from the OSR website and includes a document checklist and lodgement guide.
In addition, first-home buyers of new homes are also eligible for stamp duty concessions under the first home-new home scheme, with no duty paid on a new home with a dutiable value of $550,000 or residential land valued at $350,000. These concessions have been in place since July 1.
First-home buyers looking for a new apartment in the Sydney inner-city hotspot of <a href="/news">Waterloo</a> might consider <a target="_blank" href="https://www.divercitywaterloo.com.au/">Becton’s Divercity project</a>.
When finished, the development will have a total of 646 apartments and town homes.
Prices start from $445,000 for a one-bedroom and one-bathroom apartment, meaning potential savings on this purchase for first-home buyers of $30,515:  $15,000 (grant) + $15,515 (stamp duty saving).
Those in the market for detached home could consider <a target="_blank" href="https://www.thehermitagesydney.com.au/">Sekisui House’s the Hermitage in Gledswood Hills in Sydney’s south-west</a>. This is a master-planned community development covering 120 hectares and featuring a central three-kilometre green corridor and more than 10 kilometres of bicycle and pedestrian walkways. There is also a proposed 27-hole golf course, cafes and community facilities.
Land starts from $260,000 for a 500-square-metre lot, meaning a potential savings of $22,590:  $15,000 (grant) + $7,590 (stamp duty saving).
<hr class="system-pagebreak">
Those buyers looking for a lifestyle block outside of the Sydney metropolis might consider a house-and-land package at <a target="_blank" href="https://www.stockland.com.au/residential/nsw/brooks-reach-living-at-brooks-reach.aspx">Stockland's Brooks Reach residential community</a> in Horsley, set against the backdrop of Illawarra Escarpment,
Land starts from $146,050 for a 308-square-metre lot, meaning potential savings of $18,603.50, while a house-and-land packages start from $299,000 for a three-bedroom, one-bathroom house with garage – potential savings of $23,955
The existing $7,000 first-home owner grant, available to all first-home purchases, ceases to apply where the eligible transaction is dated on or after October 1.
The new $15,000 applies to transactions dated after October 1 and is available up until December 31, 2013.  From January 1 2014 the grant will reduce to $10,000.
According to the NSW Office of State Revenue (OSR), which will administer the scheme, “a new home is a home that has not been previously occupied or sold as a place of residence, and includes a home that is a substantially renovated home and a home built to replace demolished premises”.
Substantial renovations of a building are defined as "renovations in which all, or substantially all, of a building is removed or replaced".
“The renovations may, but need not, involve the removal or replacement of foundations, external walls, interior supporting walls, floors, roof or staircases," says the OSR.
It warns that “substantial renovations do not include cosmetic work such as painting, sanding floors, replacing light fittings, or replacing curtains and carpets”.
Where applications are made for the grant new residential premises that have been created through substantial renovations of a building, the OSR will consider the application on a case-by-case basis.
 
<hr class="system-pagebreak">
There are a number of requirements that must be met by applicants, including that at least one applicant must be permanent resident or Australian citizen and each must be at least 18 years old.
Applicants may also be ineligible if they or their spouses (including de facto) have owned property in the past.
They must not have owned a residential property, jointly, separately or with some other person, in any state or territory of Australia before 1 July 2000.
In addition, on or after July 1, 2000, they must not have owned a residential property and occupied that property jointly, separately or with some other person in any state or territory of Australia for a continuous period of at least six months.
You will also be ineligible if you have received a first-home owner grant before in any state or territory.
Lastly, at least one applicant must occupy the home as their principal place of residence for a continuous period of at least six months, commencing within 12 months from the date they are registered on title if they are purchasing a new home or within 12 months of the construction completion date if they are building a home.
The total value of a new home will be calculated using the following methods:
For a contract of sale of a home, the total value is based on the greater of the following:
<ul>
<li>the consideration for the eligible transaction</li>
<li>the unencumbered value, as at the commencement date of the eligible transaction.</li>
</ul>
For a comprehensive home building contract, the total value is calculated by adding together:
<ul>
<li>the consideration for the eligible transaction, and</li>
<li>the value, at the commencement date, of the relevant interest of the land on which the home is to be built.</li>
</ul>
For a building of a home by an owner builder, the total value is calculated by adding together:
<ul>
<li>the unencumbered value of the home, at the date the transaction is completed and the value, at the date the transaction is completed, of the relevant interest in the land on which the home is built.</li>
</ul>
The value of the relevant interest in the land on which the home is to be built is the greater of the following:
<ul>
<li>the consideration paid or payable for the interest</li>
<li>the unencumbered value of the interest.</li>
</ul>
There are also restrictions around whether applicants and/or their spouses (including de facto spouses) have owned property before.
All applicants and/or their spouse/de facto have not owned a residential property, jointly, separately or with some other person, in any state or territory of Australia before July 1, 2000.
All applicants and/or their spouse/de facto have not owned on or after July 1, 2000 a residential property and occupied that property jointly, separately or with some other person in any state or territory of Australia for a continuous period of at least six months.
</body></html>

Everything you need to know about the new NSW first-home buyer $15,000 grant

<html><body>
Headlines suggesting large numbers of Melbourne apartment projects have stalled or been abandoned over the last 18 months create a misleading picture, says property consulting group Charter Keck Cramer, as most of these projects had not even gotten off the planning drawing board, let alone to the off-the-plan marketing sales stage.
According to Charter Keck Cramer, the headlines miss the point because many of the projects that are said to have been abandoned or shelved were projects only on paper, which may have had planning approval but had not been exposed to the market via an off-the-plan sales process.
The Australian Financial Review quoted figures which claimed an average of 11 Melbourne apartment projects a month had stalled or been abandoned since the start of 2011 resulting in 213 failed projects worth a total of $1.2 billion.
Property Observer requested to see the published research but the was told it was not available "at this stage" by the real estate agency, which offers project marketing services to clients.
In the recent past, Melbourne has typically had around 300 medium and high-density projects either planned, under construction or completed, according to the research report Metropolitan Melbourne Apartment Market by Oliver Hume.
The report does not discuss abandoned or stalled projects, but has previously noted that around half were at the construction stage.
"When fully developed, they will deliver about 40,600 apartments. Of these 40,600 apartments, around 22,000 are in buildings already under construction or completed," Oliver Hume's June report says.
The report noted that a total of 27 new metropolitan Melbourne projects were released during the June quarter, containing around 2,150 units – "the lowest number of projects since records commenced".
In the corresponding quarter last year there were 38 projects released comprising 3,800 units.
<hr class="system-pagebreak">
According to research by Charter Keck Cramer less than one in 10 Melbourne apartment projects have been withdrawn from the market since 2008, with the vast majority of projects now either completed, under construction or committed to be built.
Charter Keck Cramer calculates that of the 48,400 apartment releases since 2008 nearly two-thirds are either completed or under construction, with a further 6% committed and about to commence construction.
“Only 7% have been withdrawn – with a large proportion of these re-released and now proceeding to construction – with a further  14% less likely to proceed,” Charter Keck Cramer director Robert Papaleo tells Property Observer.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/09/cksept28.gif"><img src="/images/stories/2012/09/cksept28thumb.gif"></a>
Source: Charter Keck Cramer
“This analysis only considers projects that have been exposed to prospective purchasers via an off-the-plan marketing phase for  individual apartments and does not include projects simply with an approved permit for apartments that have not been subject to a marketing campaign,” he adds.
The Oliver Hume research quoted by the AFR says the average size of an unsuccessful project is $5.6 million, “reflecting a large proportion of small to mid-density projects in the middle and outer suburbs which failed”.
Oliver Hume reported the highest proportion of abandoned projects in Moreland, Boroondara, Darebin, Greater Dandenong and Glen Eira.
“I suspect, as has been the case in the past, that these 'abandoned' projects include a large number of sites with historic planning approval that have not proceeded to development notwithstanding if they have been offered to the market or not.  Whilst withdrawal of projects at the planning stage is an indicator of market conditions, its importance is too often misunderstood and overstated” says Papaleo.
“The act of getting a permit is not ,of itself, a true indicator of developer intent.
“In many instances permits are sought to add value to sites, where there is no intention of them being developed.”
He added that there was also the issue around the suitability of some previous development approvals for some of sites “with respect to prevailing market conditions”
“A permit in 2010 for an ambitious scheme may have worked at that time, but if it’s put up for sale now, buyers may not wish to commit to the scheme, so it might have to be revised."
 
<hr class="system-pagebreak">
 
He says there have been some projects that have been marketed off the plan and shelved, but most of these have been re-marketed and developed after changes have been made to the design and have ended up in the hands of a more experienced developer.
Papaleo says he is aware of several projects that were first marketed in 2007 to 2009, then pulled from the market, redesigned and relaunched and have now commenced construction following “fresh injection of equity”.
Current development sites up for sale with apartment development approval include a 5,400 square metre site at 1 Grosvenor Street, in Doncaster, with approval for 185 apartments; a 3,300-square-metre site on Albert Street in Hawthorn East with a permit for 116 apartments over seven levels and a 1,200-square-metre site on High Street Preston with approval for 85 apartments plus ground floor retail.
Recent development site sales include a $20 million purchase of a South Yarra site with a permit for 236 apartments, bought by a Shanghai-based investor, and a 197-apartment project in the CBD that sold to a Chinese developer.
Both were sold by CBRE’s Mark Wizel, who told the Australian Financial Review Asian developers were recognising that projects that did not get off the ground the first time could be bought at a discount.
Looking at the question of whether Melbourne is building too many new apartments, Papaleo says the rental market will be the key determinant with most apartments sold to investors.
He says it’s important to differentiate between purchaser-demand (mostly from investors) for off-the-plan projects versus occupancy-demand when they are completed.
“We’re in process of historical high level of supply, but have come off peak market conditions – there appears to be a looming has mistiming with respect to occupancy demand from renters .
“Where supply has been made to the market by an off-the-plan sales process it has by and largely been met by purchasers although sales activity has been deteriorating significant since early 2011.
“The bigger issue the one of occupancy demand when the current supply cycle is completed.”
</body></html>

Many shelved Melbourne apartment projects only at planning stage: Charter Keck Cramer

<html><body>
Construction projects at mining sites accounted for the largest portion of contracts won by Australia’s biggest construction firms in 2011-12, according to the latest Housing Industry Association-Cordell Construction 100 report.
The report, which profiles the largest 100 companies operating in engineering construction and non-residential building sectors, found that the total value of construction work done increased by 18.1% in 2011-12 to $155.4 billion.
Mining represented 28.3% of all contracts won over the year ($20 billion) – ahead of civil engineering contracts (25.6%, or $18 billion) and community building contracts (22%, or $15.7 billion).
Despite being the biggest supplier of contracts to construction firms, mining contracts are off their 2009-10 peak, when they accounted for more than 30% of all non-residential contracts.
The report also found that the benefits of the mining boom are not being uniformly felt across the industry, with only 29 of the 100 companies on the HIA list recorded having been awarded mining construction projects.
Unit and apartment made up 11.3% of contracts, worth just under $8 billion, and this segment and community building were the only industry sectors to record a decline in the value of work done over the year, posting a 3.5% fall, which detracted 0.4 percentage points from aggregate growth in work done.
Civil engineering construction work increased 14.6% over the year, adding 6 percentage points to overall aggregate value of work done over the year.
The value of community construction work done fell by 36.3% over the year and detracted 4.6 percentage points from aggregate growth, “partially reflecting government stimulus spending having worked its way through the system”.
“Mining and civil engineering construction posted strong results. However, other sectors were less impressive and work fell over the year in the multi-unit and community sectors. Overall, the positive influence of the mining sector outweighed the negatives,” says HIA chief economist Dr Harley Dale.
<img src="/images/stories/2012/09/hiasept281.gif">
Source: HIA
To find out what the mining boom will mean for property investors and where the investment hotspots are likely to be, sign up for <a style="font-size: 14.545454025268555px;" target="_blank" href="/news">Property Observer’s free webinar with hotspotting.com.au’s Terry Ryder on Tuesday, October 2 at 12.30pm</a> 
 
<hr class="system-pagebreak">
 
 
There was only one company in the top 10 that achieved its position through involvement in only one sector. Inpex Browse only operated in mining construction and was awarded contracts for construction work valued in excess of $3.5 billion related to the development of the Ichthys Liquefied Natural Gas (LNG) Project.
This was the largest value of mining construction contracts won by any company on the list.
Downer EDI was awarded the second largest value of mining contracts, with $3.37 billion, followed by Thiess, with $3.13 billion awarded.
The report classifies mining contracts as those relating to construction undertaken on a mining site and excludes core mining activities such as drilling.
John Holland Group topped the Construction 100 with contracts for construction work worth $7.09 billion being awarded during the year, though only 15 (just over $1 billion) was mining-related work.
Click to enlarge
<a href="/images/stories/2012/09/hiasept282.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/09/hiasept282thumb.gif"></a>
Source: HIA
To find out what the mining boom will mean for property investors and where the investment hotspots are likely to be, sign up for <a style="font-size: 14.545454025268555px;" target="_blank" href="/news">Property Observer’s free webinar with hotspotting.com.au’s Terry Ryder on Tuesday, October 2 at 12.30pm</a> 
</body></html>

Mining contracts keep large construction firms busy as apartment building falls: HIA

<html><body>
Unlisted property trusts have delivered stronger and more stable returns than REITs over the last 25 years, according to a new report published by the Property Funds Association of Australian (PFA), the peak body representing the unlisted wholesale and retail property funds sector.
The strong income performance and low volatility are factors which should encourage investors to add direct property to their portfolios, the report argues. 
It also explains why unlisted property investments have exceeded those made in the listed space over the past 12 months, with the PFA estimated the cumulative value of the direct property sector to be around $55 billion.
The report, compiled by Atchison Consultants, compares the returns generated by the Property Council of Australia/IPD Composite index (covering 1,629 direct property investments) with those generated by the benchmark S&amp;P ASX A-REIT 200 Accumulation Index (commonly called the A-REIT Index).
Apart from the three years to March 2012, direct property returns has exceeded listed property returns over all periods over the last 25 years. 
Click to enlarge
<a rel="shadowbox" href="/images/stories/2012/09/reits.gif" title="Click to enlarge"><img src="/images/stories/2012/09/reitsthumb.gif"></a>
In addition, the unlisted property sector has been a more stable investment vehicle than listed property, which boomed before the GFC before crashing soon after.
According to the report, throughout the GFC, volatility of returns had been at extreme highs in the listed property market peaking at an annualised 34% in December 2009.
And while volatility of returns has stabilised in the REITs sector to around 17% as confidence in the listed property market returns, annual volatility of direct property returns have been constantly below 5%.
Click to enlarge
<a rel="shadowbox" href="/images/stories/2012/09/reitoct2.gif" title="Click to enlarge"><img src="/images/stories/2012/09/reitoct2thumb.gif"></a>
 
<hr class="system-pagebreak">
 
The report notes that direct property returned positive annualised performance over all periods to March 2012.
“By comparison, listed property experienced a negative return of 13.3% per annum over five years to March 31 2012, mainly attributable to the large fall in the listed property during 2007 to 2009 in the GFC.
“All listed equities fell significantly during this time. The fall in listed property was exacerbated by substantial increase in debt finance used by A-REITs in expanding property portfolios.
“Subsequently as the GFC emerged the banks required reduced levels of debt. Investments in riskier activities such as property development and the uncertainty and poor performance associated with the increased exposure to offshore property at high gearing levels also contributed to the negative performance,” says the report.
PFA president Robert Olde says investors should take note of the low volatility figures for direct property investments revealed in the report.
“They are low compared to those of both equities and listed property vehicles such as A-REITs. In our view this is another signal of the opportunities offered by direct wholesale and retail property funds, trusts and syndicates.
“The findings in this report are a strong validation for the inclusion of direct property in a diversified portfolio – and even more so when times are tough and turbulent.
“Since the GFC, for example, direct property has continued to demonstrate the kind of resilience and positive total returns that other asset classes simply have not. And judging from inflows in the past 12 months, investors are beginning to understand the hard facts.”
PFA vice president Jason Huljich says the research constitutes a valuable update for investors seeking to strengthen their portfolios in the face of a continuing uncertainty. 
</body></html>

Less volatile unlisted property investments have outperformed REITS over last 25 years: PFA report

<html><body>
Suburban shopping centres remain on the radars of offshore investors with a large mall in Sydney's Macquarie Park and five Centro shopping centres attracting interest.
The Abu Dhabi Investment Authority (ADIA) and Canada Pension Plan Investment Board (CPPIB) are considering acquiring a 50% stake in the Macquarie Centre shopping mall in north-west Sydney, according to reports in the Australian Financial Review.
Westfield holds a 27.5% stake in the centre, which is valued at $249.6 million with Westfield Retail Trust holding a 22.5% stake.
The other 50% interest is held by AMP Capital.
According to the AFR, the two offshore institutional investors will each acquire one of the Westfield stakes.
CPPIB has already committed to investing $1 billion in Lend Lease’s $6 billion Barangaroo project on Sydney harbour.
Centro Retail Australia is selling its half-shares in five malls said to be worth around $400 million.
According to Centro boss Steven Sewell the assets have “attracted quite a bit of investor appetite” both domestically and offshore.
Sewell is looking to raise cash to repay loans made to Singapore’s sovereign wealth arm, GIC, which owns a portion of debt on each of the shopping centres.
The five centres up for sale are Centro Cranbourne in Melbourne’s south east fringe, the nearby Star Zone Karingal, Centro Warriewood in Sydney’s northern beaches, Centro Mandurah south of Perth and neighbouring Centro Halls Head
</body></html>

Offshore investors to take stakes in Macquarie mall and mulling Centro investments

<html><body>
Harry Triguboff's Meriton group plans to begin borrowing for the first time in 12 years as the apartment developer expands its construction pipeline next year.
Meriton plans to build around 2,000 apartments next year up from about 1,700 in 2012.
“I haven’t borrowed yet, but I will,” billionaire Harry Triguboff, the company’s 79-year-old founder and managing director, said in an interview with Bloomberg.
“The RBA has cut rates and there’s pressure brought on our money market by foreign banks bringing money here.”
Meriton has been debt-free since 2000, funding its projects through sales of apartments and rental income, Triguboff said. The timing and amount of debt funding depends on sales and approvals of new projects, he added.
Australia’s long-term borrowing costs are the cheapest in the developed world relative to short-term rates, as bond investors expect the RBA will cut its 3.5% benchmark rate by another 101 basis points in the next year.
Four of the seven foreign bank licenses the central bank has granted since 2010 have been to Asian lenders, the RBA recently noted, a key apartment-buying market for Meriton.
Triguboff added that he has no plans to extend Meriton's geographic reach beyond Sydney, Brisbane and the Gold Coast - in the 2012 financial year Meriton will build 1,167 apartments in Sydney, a 57% jump from the previous year.
Meriton's biggest project is the 81-story Infinity, Brisbane’s tallest residential tower which is due for completion in late 2013.
Meriton has sold 150 of the 550 units at Infinity, with plans to keep 250 as serviced apartments - a growing component of the Meriton business.
Earlier this year Meriton completed the 74-floor Soleil, also in the Brisbane CBD of which only 5% of the 464 apartments remain unsold.
</body></html>

Harry Triguboff's Meriton Group to borrow to fund new apartment expansion plans

<html><body>
<img src="/images/stories/2012/09/1point52m.gif">
The price paid for a freestanding industrial building at Yatala on the northern Gold Coast. The property at 28 Gassman Drive, Yatala, was sold by Karen Seeto of Ray White Commercial Burleigh on behalf of Caledor Pty Ltd. The 2,952-square-metre property was purchased by Rentgrove Pty Ltd and Eurtepe Pty Ltd prior to being listed. The building is located within the Yatala Enterprise Area (YEA) and is surrounded by commercial and industrial strata developments as well as a number of freestanding businesses. Yatala is 37.5 kilometres north-west of Southport’s CBD and 35 kilometres south-west of Brisbane City. 
 
<hr>
 
<img src="/images/stories/2012/09/675k.gif">
The price construction company Solutions Three Pty Ltd has paid for a warehouse/office complex at Hendra in Brisbane’s north.  The property at 4/5 Navigator Place, Hendra, was marketed and sold on behalf of A &amp; M Papoutsis Pty Ltd by Ray White Industrial Milton’s Paul Anderson and Cameron Massie. The 300-square-metre building will be used by Solutions Three as its Queensland headquarters. The two-storey complex was offered for sale as a vacant possession and attracted solid interest. The property is within close proximity to the Brisbane CBD, the Gateway Motorway and Brisbane’s domestic and international airports.
 
<hr>
 
<img src="/images/stories/2012/09/3point98m.gif">
The price paid after auction for industrial land in Croydon. The sale of the 12,814-square-metre freehold site at 13-19 Research Drive to DENSO Automotive Systems Australia was negotiated by David Kalb, Geoff Fookes of Colliers International. The sale price equates to $310 per square metre of land. Both developers and owner-occupiers showed strong interest in both blocks, with the eventual purchaser  a local Croydon owner-occupier, say Kalb and Fookes.
</body></html>

Commercial hammer prices: Freehold land in Croydon, Melbourne snapped up for $3.98 million

<html><body>
The “renaissance” in demand for rental accommodation in Perth from workers servicing the mining industry in the state is expected to trigger a recovery in the housing market, according to ANZ’s latest property outlook report.
Mining investment is also expected to boost the already strong Darwin housing market, while the report expresses concerns about the impact of failed mining projects in South Australia on confidence in the state’s housing market.
In the other mining state, Queensland, ANZ expects only those regional property markets directly linked to the mining boom - such as Gladstone - to feel the benefits.
The report, compiled by ANZ economists led by head of property research Paul Braddick, says that the WA housing market has yet to reap the benefits of the mining investment boom, with the weakness in house prices “only recently looked to be easing”.
“In contrast, the Perth rental market is experiencing a renaissance, with strong demand for labour driving an increase in transitory population (including fly-in-fly-out workers) and adding pressure to the existing rental stock.
“Rental vacancy rates have tightened to three-year lows, adding sharp upward pressure to rents.
<img src="/images/stories/2012/09/mininganz.gif">
“The resultant improvement in rental yields should trigger a recovery in the Perth housing market, particularly from first-home buyers and investors, and drive house prices higher in the second half of 2012,” says ANZ.
Its property outlook report also looks favourably on the Northern Territory, calling Darwin the “bright spot in an otherwise sluggish market nationally”, boosted by the initial construction phase of the $34 billion Ichthys LNG project, which it says has driven an “extremely sharp 230% increase in business investment in year-ended terms”
“The ramping up of the Ichthys project will generate significant demand for labour, leading to a pick-up in net overseas and net interstate migration over the next couple of years.”
Despite both South Australia and Queensland having mining exposure, the outlook is less certain for these two states.
“Cancellations and delays of a number of large uncommitted mining and energy projects [in South Australia], including the proposed Olympic Dam expansion and the Clinton project, have weighed on general business confidence and housing market confidence,” says ANZ.
In Queensland, ANZ says conditions in the housing market remain "highly variable across regions, reflecting the diverse economic conditions in the state. Gladstone house prices, for example, have risen a sharp 18% over the past year due to strong population growth as a result of a number of mega-LNG projects that are being constructed in the area.”
"In contrast, the Gold Coast and Sunshine Coast have witnessed further falls in house prices, as a result of sluggish conditions in their local economies. Brisbane house prices have fallen by 5.4% over the past year and remain 12% below their peak."
ANZ expects mining investment to expand to a record $60 billion in 2011 and is projected to more than double in the fiscal year ahead.
“Nonetheless, the fruits of the boom will be spread unevenly across states and sectors, with Western Australia, the Northern Territory and Queensland the major beneficiaries.
“The two-speed nature of the Australian economy will be exacerbated by tightening fiscal policy and continued strength in the Australian dollar, which will maintain competitive pressures on the manufacturing and tourism industries and weigh on retail and financial services.
“Without receiving a direct boost from resource investment, economic activity in south eastern states is expected to slow markedly.”
To find out what the mining boom will mean for property investors and where the investment hotspots are likely to be, sign up for <a href="/news">Property Observer’s free webinar with hotspotting.com.au’s Terry Ryder on Tuesday, October 2 at 12.30pm</a>
</body></html>

Rental demand 'renaissance' from mine workers to push up Perth property prices: ANZ

<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

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News