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The effects of the mining boom continue to flow through to Perth’s hotel sector, which has now surpassed Sydney in terms of occupancy rates and revenue growth, according to the latest Dransfield report.
Perth hotel occupancy rates improved by 5.8 percentage points to reach 87.5% over the first three months of the year, while Sydney recorded a 1.8 percentage point decline in occupancy to 81.8% and Melbourne edged up 1.5 percentage points to 80.1%.
There was some improvement for the tourism-dependent Cairns market, with the occupancy rate increasing by 8.3 percentage points, but to a still low 51.7%. Occupancy rates on the Gold Coast increased by 6.1 percentage points to 71%.
Hotels in the west coast capital city also significantly outperformed Sydney and Melbourne on the key metric of revenue per available room (revPAR), which rose 22.1% over the quarter.
Sydney hotels' revPAR was flat (-0.1%) over the March quarter while there was modest gain in Melbourne (up 2%).
In its previous outlook report, Dransfield noted that Perth had rebounded to again be the "outperforming hotel market, with demand growth rebuilding confidence following the fall in 2009".
Dransfield forecasts revPAR growth at around 7.5% for the medium term to 2013 and 2.6% for the full forecast period to 2019 as new hotel supply comes on board.
“The Western Australian government is actively trying to encourage development, through financial incentives to promote new hotel development,” noted Dransfield in its 2011 Hotel Futures report.
Dransfield attributed the relatively poor performance of Sydney hotels to a “combination of a softer conference and government market and lack of large-scale events”.
The Brisbane hotel sector also performed strongly over the March quarter with revPAR up 17% over the quarter. However the Brisbane hotel occupancy rate fell from 82.5% in the December quarter to 77.6%.
Adelaide was also a strong performer, recording 12% revPAR growth over the quarter.
Click to enlarge
<a href="/images/stories/2012/09/dransfield.jpg" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/09/dransfieldthumb.jpg"></a>
Nationally, Australian hotels recorded revPAR growth of 5.3% compared with 4.8% for the prior corresponding period and 4.6% for the full year in 2011. This compares to full year expectations of 6.1%, with the results dragged down by Sydney and Melbourne.
Rate and occupancy both grew by 2.6%, evenly contributing to the March quarter results.
RevPAR growth was ahead of the 3.4% recorded in the December quarter.
National occupancy remains high at almost 77%, however this is still below the pre GFC level of 78.5% in 2007.
Room rates have continued to increase and at $167.11, have now moved well beyond the previous high of $162.31 in March 2008, says the Dransfield report.
Looking ahead, Dransfield expects Australia’s city hotel markets to continue to perform well in the short term, despite scope for volatility.
“Some uncertainty remains related to the recovery of leisure markets and the ongoing impact of the European financial woes.”
“Supply under construction and new proposals remain limited. The three year outlook sees a mixed performance in revenue growth, with some cities in the 7-10% range and others with little growth or even declining."
Dransfield Hotels &amp; Resorts are a specialist professional services organisation advising tourism and hospitality enterprises and has advised on hotel projects involving over 40,000 hotel rooms.
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Perth surpasses Sydney as best-performing hotel market: Dransfield

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Western Sydney, parts of the New South Wales coast, south-east Queensland and parts of Melbourne are the areas of highest mortgage vulnerability and also where a “higher-than-average share of borrowers are experiencing some degree of financial stress,” says the RBA in its September Financial Stability Review.
It also warns of a rise in arrears in Melbourne due to an oversupply of inner-city apartments.
“According to the 2011 census, the geographic regions that had the highest incidence of potential mortgage vulnerability, as measured by the share of households that had high debt- servicing ratios (DSRs) and were in the lowest 40 per cent of the income distribution, were western Sydney, parts of the New South Wales coast, south-east Queensland and parts of Melbourne,” notes the RBA.
<img src="/images/stories/2012/09/rbasept25.gif">
The RBA says that arrears on securitised loans suggest that some of the same regions have a “higher-than-average share of borrowers experiencing some degree of financial stress, although even in these regions, arrears rates have generally declined over the past year “
“They include parts of Sydney’s western suburbs, where arrears rates have been high for some time, as well as regions that rely on tourism, a sector that has been under pressure more recently from the high exchange rate.
“This second group of regions includes areas of Queensland, particularly around the Gold Coast and Sunshine Coast, and some coastal areas of New South Wales and Western Australia.
“Many of the loans in arrears in these regions were originated in the few years leading up to the crisis, when housing prices in these areas were still growing quickly and construction was relatively strong."
The report also warns that arrears rates on housing loans in Victoria, which are currently “quite low” could rise, due to a “potential oversupply of property in some segments, particularly inner-city Melbourne apartments and houses at the south-eastern fringe”.
“Overall, the Melbourne residential property market has been experiencing below-average auction clearance rates and a run-up in the stock of land for sale at the same time as actual sales fell; these factors could weigh on prices in the future.”
However, the report also notes that the risk profile of new housing loans has been lower in recent years compared with the earlier period of strong growth in household borrowing.
“Lending standards are tighter now than prior to the financial crisis, and liaison with the major banks indicates that they have been broadly unchanged over the past six months.
“The share of bank lending that is low-doc remains low, at less than 2% of banks’ loan approvals and around 5% of outstanding housing credit."
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South-west Sydney mortgage borrowers lead RBA's 15 most vulnerable localities

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“Ongoing consolidation of household balance sheets would be desirable from a financial stability perspective, as it would make indebted households better able to cope with any future income shock or fall in housing prices,” the RBA says in its September Financial Stability Review.
<a target="_blank" href="https://twitter.com/RBAInfo"><img src="/images/stories/2012/09/rbatweet1.jpg"></a>
The review notes that households continue to save around 9.5% of their disposable income “well above its level of five to 10 years ago … partly been motivated by a desire to rebuild wealth following the falls in asset prices over recent years”.
The RBA says household and business sectors have continued to display a “relatively prudent approach towards their finances in recent quarters”.
“Many households continue to prefer saving and paying down their existing debt more quickly than required, which has contributed to household credit growth being more in line with income growth in recent years.
“Although there are some isolated pockets of weakness, aggregate measures of financial stress remain low,” says <a href="https://www.rba.gov.au/publications/fsr/2012/sep/pdf/house-bus-bal-sheet.pdf">the RBA</a>.
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RBA says eschewing debt helps handle house price falls: Tweet of the day

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Westpac subsidiary St George Bank has cut its three-year fixed home loan rate by 10 basis points to 5.49% per annum following last week’s cut to its fixed rates for one and two-year home loans.
The new three-year fixed home loan rate is available under its St George's Advantage Package offering and is effective from today.
St George offers its one- and two-year fixed rates at 5.49% per annum and offers a rate of 5.89% per annum for four- and five-year fixed home loans under the Advantage Package.
The bank now offers the lowest fixed rates in the market, when compared with the big four banks for fixed home loans from one to five years' duration.
<a href="/news">Yesterday Westpac announced cuts to its fixed-rate home loan offerings</a> under its Premier Advantage Package, with its three-year fixed loan reducing 0.1 percentage points to 5.54%.
 
<ul style="font-size: 14.545454025268555px;"></ul>
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St George Bank cuts three-year fixed-rate mortgage to 5.49% per annum

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The central western NSW town of Mudgee, a hotspot for mining, agriculture and tourism, has been the top-performing NSW housing market over the past year, according to the latest Residex regional market update.
Mudgee district house prices are up 7.44% for the year to August, with a median house price of $272,500 following a gain of less than 1% in the previous 12-month period.
Residex reported a 16% jump in sales in Mudgee over this period, with 548 properties selling.
The median Mudgee rent is up 30% for the year to $410 per week, equating to an average yield of around 7.8%.
Mudgee ranked just above the Hunter Valley, where houses appreciated 7.18% over the year to August with a median price of $324,000.
Other strong performers were Riverina houses (4.27%), Penrith Windsor houses (3.95%) in Sydney’s West, Bathurst Orange Houses (3.43%) and south-west Sydney units (3.47%).
The worst-performing markets was upmarket Neutral Bay/Spit houses (-8.16%  to a median of $2.02 million) followed by north coast houses (Port Macquarie, Coffs Harbour, Foster), with prices down 5.53% to a median of $348,000.
<table border="1" cellspacing="0" cellpadding="0" style="width: 470px;"><tbody>
<tr>
<td valign="top" width="123">
Area
</td>
<td valign="top" width="123">
Median price
</td>
<td valign="top" width="123">
Annual capital growth to August 2012
</td>
<td valign="top" width="123">
Median rent
</td>
<td valign="top" width="123">
Yield
</td>
</tr>
<tr>
<td valign="top" width="123">
Mudgee District houses
</td>
<td valign="top" width="123">
$272,500
</td>
<td valign="top" width="123">
7.44%
</td>
<td valign="top" width="123">
$410
</td>
<td valign="top" width="123">
7.8%
</td>
</tr>
<tr>
<td valign="top" width="123">
Hunter Valley houses
</td>
<td valign="top" width="123">
$324,000
</td>
<td valign="top" width="123">
7.18%
</td>
<td valign="top" width="123">
$405
</td>
<td valign="top" width="123">
6.5%
</td>
</tr>
<tr>
<td valign="top" width="123">
Riverina houses
</td>
<td valign="top" width="123">
$236,000
</td>
<td valign="top" width="123">
4.27%
</td>
<td valign="top" width="123">
$270
</td>
<td valign="top" width="123">
6%
</td>
</tr>
<tr>
<td valign="top" width="123">
Penrith Windsor houses
</td>
<td valign="top" width="123">
$391,500
</td>
<td valign="top" width="123">
3.95%
</td>
<td valign="top" width="123">
$420
</td>
<td valign="top" width="123">
5.6%
</td>
</tr>
<tr>
<td valign="top" width="123">
South West units
</td>
<td valign="top" width="123">
$411,500
</td>
<td valign="top" width="123">
3.47%
</td>
<td valign="top" width="123">
$445
</td>
<td valign="top" width="123">
5.6%
</td>
</tr>
<tr>
<td valign="top" width="123">
Bathurst Orange Houses
</td>
<td valign="top" width="123">
$280,000
</td>
<td valign="top" width="123">
3.43%
</td>
<td valign="top" width="123">
$320
</td>
<td valign="top" width="123">
6%
</td>
</tr>
<tr>
<td valign="top" width="123">
South units
</td>
<td valign="top" width="123">
$611,000
</td>
<td valign="top" width="123">
3.24%
</td>
<td valign="top" width="123">
$645
</td>
<td valign="top" width="123">
5.5%
</td>
</tr>
<tr>
<td valign="top" width="123">
Campbelltown houses
</td>
<td valign="top" width="123">
$363,000
</td>
<td valign="top" width="123">
3.13%
</td>
<td valign="top" width="123">
$420
</td>
<td valign="top" width="123">
6%
</td>
</tr>
<tr>
<td valign="top" width="123">
Newcastle houses
</td>
<td valign="top" width="123">
$403,500
</td>
<td valign="top" width="123">
3.08%
</td>
<td valign="top" width="123">
$415
</td>
<td valign="top" width="123">
5.4%
</td>
</tr>
<tr>
<td valign="top" width="123">
North West units
</td>
<td valign="top" width="123">
$444,000
</td>
<td valign="top" width="123">
2.89%
</td>
<td valign="top" width="123">
$475
</td>
<td valign="top" width="123">
5.7%
</td>
</tr>
</tbody></table>
 The historic country town of Mudgee lies 270 kilometres north-west of Sydney in the fertile Cudgegong River valley and benefits from both agriculture, tourism and nearby mining activity.


<hr class="system-pagebreak">
It was included on Smart Property Investment magazine’s Fast 50 report due to nearby mining activity and expectations of strong population growth.
Luke Berry of property investment advisory firm nexthotspot.com.au says there are a possible six resources projects opening up in the next three to five years in the Mid-Western Shire, which will create an additional 2,000 new jobs.
Berry expects the Mudgee population to grow by 25%, or 6,000 people, over the next five years.
Mudgee also benefits from a very tight rental market, with realestate.com.au reporting just 56 properties available for rent.
Recent property sales in Mudgee include <a href="https://www.realestate.com.au/property-house-nsw-mudgee-110637257" target="_blank">this five-bedroom Victorian-era home (pictured below) – Kia-Ora – on Gladstone Street</a>, which sold through Damian Kearns of The Property Shop – Mudgee for $665,000. It dates back to 1898 and has previously operated as a bed and breakfast. It had a land value of $33,300 in 1995, according to RP Data records.
<img width="470" src="/images/stories/2012/09/kiaora.jpg">
Mudgee's first property boom occured around 1851, when gold was discovered nearby by Edward Hargreaves leading to prospectors flocking to the town, with the population soaring from just 200 to reach around 20,000. Following the petering out of the gold rush towards the end of the 19th century, Mudgee was sustained by the wool and wine industries as well as the opening of a railway extension in 1884.
<img width="470" src="/images/stories/2012/09/mudge.jpg">
Closer to the Mudgee median price, <a target="_blank" href="https://www.realestate.com.au/property-house-nsw-mudgee-111330771">this renovated three-bedroom house</a> (pictured above) on a 1,110-square-metre block on Lewis Street sold through Lucas Sheppard, also of the Property Shop, for $350,000 in August. The unrenovated property sold for $295,000 in February last year, having sold for $110,000 in 2000.
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Mudgee leads list of 10 top-performing NSW housing markets with prices up 7.44%: Residex

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Former rugby league star and once high-flying Queensland property developer Jarrod McCracken, who appeared on the BRW Young Rich List in 2009 worth an estimated $34 million, is considering appealing a federal magistrate decision to place him in bankruptcy.
McCracken was officially declared bankrupt on September 17, according to the Insolvency and Trustee Services of Australia, the government department that oversees bankruptcies.
“As far as I am concerned I can’t see how anyone could go bankrupt with an unquantifiable order against them,” McCracken told The Australian Financial Review.
McCracken has until Friday next week to make his appeal.
The bankruptcy ruling followed just three days after a Federal Magistrates Court ruled he was liable for a $2 million debt to a Townsville construction company, Phoenix Constructions Pty Ltd, following a six-year legal battle.
In June 2011 the Brisbane Supreme Court awarded damages in favour of Phoenix Constructions in the amount of $1.9 million.
The Townsville Bulletin reported on September 15 that McCracken’s assets had been seized to pay costs in the long-running case over the construction of the Watermark complex on the Townsville waterfront.
McCracken told the paper the judgment would be suspended as soon as an appeal was lodged.
"I'm seeking advice next week," he said.
His financial problems reportedly stemmed from a $6.25 million “handshake” loan made to fellow property developer Harry Kakavas, who says he lost the money gambling in Las Vegas and on bets for the AFL and NRL grand finals.
McCracken told a court hearing that he had borrowed the money from "some people in Sydney who are very heavy" and on-loaned it to Kakavas, the Daily Telegraph reported.
McCracken, who hails from New Zealand and is the son of  former New Zealand rugby league international Ken McCracken, played for the Canterbury Bulldogs, the Parramatta Eels and Wests Tigers before a spear tackle ended his career 12 years ago.
He turned his attention property development in 2001, starting off on the Gold Coast before undertaking a number of redevelopment projects in the Townsville CBD.
He first made the BRW Young Rich List in 2005 with a personal fortune of $15 million. He was aged 35 at the time and made his last appearance in 2009.
BRW reported that McCracken had made a string of “canny property purchases” including the local shopping centre, a hotel and the $30 million Waterside Apartments.
In 2009, when BRW estimated his fortune at $42 million the magazine reported that it had been a rough year for McCracken, after he pleaded guilty to “assaulting an ex-business partner on the Gold Coast on his wedding day after a multimillion-dollar deal went sour”.
McCracken and his wife also faced courts after they directed contractors to clear 13 hectares of waterfront rainforest for a house and horse paddock at their large property holding on the Whitsundays just north of Airlie Beach.
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Former NRL star and rich lister Jarrod McCracken considers appealing his bankruptcy

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The Reserve Bank will cut interest rates to spur on economic growth as the federal government remains committed to achieving a budget surplus in 2012-13, according to Alan Mitchell, economics editor at the Australian Financial Review.
Yesterday Federal Treasurer Swan released the budget outcome for the 2011-12 financial year showing a slightly better deficit outcome of $43.7 billion and restated the government's commitment to return the budget to surplus in 2012-13
Swan also acknowledged that the decline in commodity prices would inevitably make the task more difficult as it targets a very small underlying cash surplus of $1.5 billion for 2012-13.
Mitchell says the RBA’s concern will be the “impact of fiscal policy on economic output and inflation over the next two years”.
“The savings needed to balance the budget in the next two financial years are now more manageable, but they will be in addition to all the other sand that is being thrown into the economy’s wheels from the truncation of the mining investment boom, the global economic uncertainty and the strong dollar,” he says.
“With inflation already low, the RBA will cut rates to support economic growth. That will help exchange rate- and interest rate-sensitive activities including housing, manufacturing and tourism.”
A similar sentiment is echoed by HSBC Australia chief economist Paul Bloxham in a commentary piece examining how the current mining boom differs from past mining boom.
Bloxham says the financial system is “not overly leveraged into the mining story, as it has been on some occasions in the past".
“Having escaped the global financial crisis reasonably unscathed, Australia's banking system is also in pretty good shape such that conventional monetary policy still works.
“When the mining story fades, which is not yet, there will be room for other sectors to pick up and growth to rebalance. Rebalancing will be assisted by the steady Australian dollar and below-average RBA rates, though some further adjustment to RBA rates will probably be necessary.
"We continue to expect another RBA cut before year-end.”
Bloxham also warns that achieving the “political imperative” of achieving a surplus will be even harder given the recent falls in commodity prices. “Discretionary fiscal tightening in the face of weakening conditions, if it occurs, does not seem like the right move, in our view, but it is a risk. 
The chief risk he says is China.
“Our central case holds that China's growth cycle is currently bottoming out, with growth forecast to pick up to 8.4% next year. This is expected to support demand for commodities and prevent prices from falling too much further.” 
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RBA to cut rates to ensure economic growth as government commits to budget surplus: AFR’s Alan Mitchell

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<img src="/images/stories/2012/09/130.gif">
Roughly how much Best (Biological Environmental Sustainable Technologies) will pay per square metre annually to lease an industrial property in Burleigh Heads on the southern Gold Coast. The company, which provides water-based products and services, will use the 7 Dover Drive property as its distribution centre. Best has signed a three-year lease with two three-year options brokered by Craig George of Colliers International. The 950-square-metre warehouse, owned by Waterview Nominees, consists of around 300 square metres of showroom space, 150 square metres of office space and 500 square metres of warehouse space with 18 carparks. “There is a real lack of large industrial stock on the southern end of the Gold Coast, with only two industrial buildings available in the 2,000-square-metre to 4,000-square-metre range in Burleigh and Currumbin Waters combined, and one facility currently available above 4000 square metres” says George.  The property runs virtually adjacent to Bermuda Street, which feeds into the Pacific Motorway leading north to Brisbane or south to the Tweed.
 
<hr>
 
<img src="/images/stories/2012/09/700k.gif">
The estimated annual rent that national luggage, leather goods and travel accessories retailer Victoria Station will pay annually to lease a new $9 million office and warehouse facility at Keysborough in Melbourne’s south-east. Due for completion by owner/developer BFD Constructions in mid-November, the 1 Atlantic Drive building will comprise a 7,396-square-metre warehouse with a 560-square-metre office component on a 14,850-square-metre site with full drive around capability.  The deal was brokered by Savills Australia divisional director for industrial, Joseph Catanese, who says the tenant agreed terms on a nine-year lease with further options. BFD Constructions purchased the property last month for $3.2 million.
 
<hr>
<img src="/images/stories/2012/09/250to350.gif">
The estimated annual rent per square metre that industry sources say vacuum and cleaning specialists Godfreys will pay to lease a 429-square-metre showroom at Shop 2/5-9 Parkland Street in Toombul, Brisbane. The deal was negotiated by Kyle Rae of Colliers International. Godfreys has relocated from a large regional-sized northside shopping centre while still remaining in the same geographic market. Toombul is situated less than 10 kilometres north of the Brisbane CBD. The two other tenants in the group of three shops on Parkland Street are Bob Jane T-Marts and Cash Converters, both of which have been situated there for more than a decade. Now that the property is fully leased, it will be marketed for sale by Stephen Kidd and Trevor Weinert of Colliers International on behalf of receivers BDO via an expressions of interest campaign kicking off in a few weeks.
For more commercial leasing deals go to our dedicated leasing page: 
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Commercial leasing: Godfreys takes warehouse space in Toombul, Brisbane

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The federal government’s Australian Office of Financial Management (AOFM) has defended itself against claims that it bought fraudulent, high-risk low-doc loans with taxpayers’ money.
Since November 2008 the AOFM has invested in residential mortgage-backed securities worth $11 billion under a government program to maintain competition in mortgage lending.
The program was set up in the wake of the GFC, when non-bank lenders and other smaller lenders could no longer sell their packages of home loans to offshore investors – a process known as securitisation.
The claims against the AOFM were levelled as part of submissions made to the Senate Inquiry into the post-GFC banking sector, where public hearings resuming on Friday in Canberra.
Giving testimony to the inquiry on Friday, AOFM chief executive Rob Nicholl said there were “no 'sub-prime' loans amongst the mortgages underpinning the RMBS in which the AOFM has invested”.
Nicholl said the AOFM had taken a conservative approach to mortgage investments and had only participated in one transaction where the share of low-doc loans was greater than 10% of the underlying pool of mortgages.
In this case, the AOFM only invested $10 million, “of which over half has been repaid without incident”.
In total, Nicholl says low-doc loans account for less than 2% of all the loans it has invested in through the government scheme, with lenders required to insure themselves against the risk of borrowers defaulting.
In a worse-case scenario, only 0.5% of the AOFM’s investments would be at risk, Nicholl says.
The AOFM’s $11 billion worth of mortgage investments are part of a total pool of mortgages worth $25 billion (the AOFM acted as cornerstone investor) – of  which $400 million are sub-prime loans, reported Fairfax Media journalist Clancy Yeates.
 
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Government mortgage financier not exposed to low-doc risk: AOFM chief executive

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While the RBA held firm on the cash rate in August and September, eight lenders on the RateCity.com.au database have reduced interest rates on a total of 12 variable rate mortgage products.
The rate cuts have been introduced on a range of variable-rate products, including standard variable, basic variable, introductory variable and special variable rate offerings.
Non-bank lenders Hemisphere Financial (backed by Resimac) and Resi Mortgage Corporation have reduced rates on three of their variable-rate products.
Other lenders to reduce variable-rate offerings include Bankwest, credit union ECU Australia and non-bank lender State Custodians.
The rate cuts range from 2 basis points to 25 basis points:
<table cellpadding="0" cellspacing="0" border="1" style="width: 470px;"><tbody>
<tr>
<td width="93">
Company
</td>
<td width="123">
Product
</td>
<td valign="bottom" width="123">
Type
</td>
<td width="94">
Current Rate
</td>
<td valign="bottom" width="76">
Rate at Aug RBA meeting 
</td>
</tr>
<tr>
<td width="93">
Hemisphere Financial
</td>
<td width="123">
Alt Doc Loan
</td>
<td valign="bottom" nowrap width="123">
Standard Variable
</td>
<td width="94">
6.49%
</td>
<td valign="bottom" nowrap width="76">
6.74%
</td>
</tr>
<tr>
<td width="93">
Hemisphere Financial
</td>
<td width="123">
Quickstart Loan
</td>
<td valign="bottom" nowrap width="123">
Standard Variable
</td>
<td width="94">
6.39%
</td>
<td valign="bottom" nowrap width="76">
6.64%
</td>
</tr>
<tr>
<td width="93">
ECU Australia
</td>
<td width="123">
Introductory Home Loan 1 yr
</td>
<td valign="bottom" nowrap width="123">
Intro Variable
</td>
<td width="94">
5.94%
</td>
<td valign="bottom" nowrap width="76">
6.19%
</td>
</tr>
<tr>
<td width="93">
Hemisphere Financial
</td>
<td width="123">
Home Loan
</td>
<td valign="bottom" nowrap width="123">
Standard Variable
</td>
<td width="94">
6.09%
</td>
<td valign="bottom" nowrap width="76">
6.34%
</td>
</tr>
<tr>
<td width="93">
RESI Mortgage Corp
</td>
<td width="123">
FlexiFix Pro Revert
</td>
<td valign="bottom" nowrap width="123">
Special/Other Variable
</td>
<td width="94">
6.06%
</td>
<td valign="bottom" nowrap width="76">
6.27%
</td>
</tr>
<tr>
<td width="93">
Bankwest
</td>
<td width="123">
Mortgage Shredder Intro Variable 1 yr
</td>
<td valign="bottom" nowrap width="123">
Intro Variable
</td>
<td width="94">
5.78%
</td>
<td valign="bottom" nowrap width="76">
5.98%
</td>
</tr>
<tr>
<td width="93">
Rate Busters
</td>
<td width="123">
Ultimate
</td>
<td valign="bottom" nowrap width="123">
Standard Variable
</td>
<td width="94">
5.82%
</td>
<td valign="bottom" nowrap width="76">
6.01%
</td>
</tr>
<tr>
<td width="93">
RESI Mortgage Corp
</td>
<td width="123">
FlexiFix Revert
</td>
<td valign="bottom" nowrap width="123">
Special/Other Variable
</td>
<td width="94">
6.06%
</td>
<td valign="bottom" nowrap width="76">
6.16%
</td>
</tr>
<tr>
<td width="93">
RESI Mortgage Corp
</td>
<td width="123">
FlexiFix 75 Revert
</td>
<td valign="bottom" nowrap width="123">
Special/Other Variable
</td>
<td width="94">
5.96%
</td>
<td valign="bottom" nowrap width="76">
6.06%
</td>
</tr>
<tr>
<td width="93">
State Custodians
</td>
<td width="123">
Breathe Easy Offset
</td>
<td valign="bottom" nowrap width="123">
Basic Variable
</td>
<td width="94">
5.97%
</td>
<td valign="bottom" nowrap width="76">
6.07%
</td>
</tr>
<tr>
<td width="93">
Homestar Finance
</td>
<td width="123">
No Fee Offset
</td>
<td valign="bottom" nowrap width="123">
Standard Variable
</td>
<td width="94">
6.05%
</td>
<td valign="bottom" nowrap width="76">
6.10%
</td>
</tr>
<tr>
<td width="93">
IMB
</td>
<td width="123">
Essentials
</td>
<td valign="bottom" nowrap width="123">
Basic Variable
</td>
<td width="94">
5.99%
</td>
<td valign="bottom" nowrap width="76">
6.01%
</td>
</tr>
</tbody></table>
 
Source: RateCity.com.au
</body></html>

The eight lenders that have cut variable mortgage rates since the RBA's August meeting

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

Joel Robinson

The Eveleigh brings house-like apartments to Broadbeach

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

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

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

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

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

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

Larry Schlesinger

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