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House prices could rise by as much as 15% between now and late 2013 as rate cuts improve affordability, according to Australian Financial Review economic writer David Bassanese.
According to Bassanese, there is a “broad inverse relationship” between current mortgage repayment levels and subsequent house price gains.
“That should be no surprise, because if the required home loan repayment is relatively low, house prices (all else constant) will tend to be bid up," he says.
Bassanese, a 20-year economics veteran, expects interest rates to fall by 100 basis points over the next 12 months – taking the cash rate to 2.5%.
This, he says, will result in further reductions in mortgage rates, which are already at below-average rates, reducing monthly mortgage repayments.
And if per capita household incomes grow by around 4% at the same time as mortgage rates drop, he estimates that repayment levels would drop to 20% below their long-run average by next year – around lows last seen in mid-2009.
Bassanese has compiled his own housing affordability index dating back to 1986 based on the eight capital city established house price produced quarterly by the ABS, quarterly disposable income per capital (also compiled by the ABS) and the discounted bank variable mortgage rate compiled by the RBA.
The Bassanese index measures the mortgage repayment required as a percentage of household disposable income per capita – assuming house prices track changes in the ABS house price index
“The results suggest that as at the June quarter, the mortgage repayment as a percentage of disposable income was around 6% below the average since mid-1986.
According to Bassanese below-average mortgage rates more than offset the house prices to disposable income ratio, which is currently running at 16% above its long-run average.
He says declining mortgage rates and high affordability were the factors behind the mid-1990s property boom.
And he argues that the fact that house prices to income have remained at this high level since mid-2003 suggests this was a “sustainable one-off adjustment due to the structural drop in mortgage rates”.
“As Reserve Bank governor Glenn Stevens once remarked, if house prices are in a bubble then they been that way for an extraordinarily long time,” says Bassanese.
Bassanese's predictions of a 100-basis-point reduction in the cash rate over the next 12 months is broadly in line with the forecasts of some noted economists.
Last week Westpac chief economist Bill Evans changed his rates forecast to two consecutive 25-basis-point rate cuts in October and November and a further 25-basis-point rate cut in the March quarter.
ANZ Research is also forecasting two rate cuts in October and November with an easing bias thereafter.
A quarter of the 20 economists polled by Bloomberg on Friday expect a 25-basis-point rate cut in October.
The five are: ANZ, Westpac (Bill Evans), AMP (Shane Oliver), BT Financial (Chris Caton) and Market Economics (Stephen Koukoulas).
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House prices to surge 15% by late 2013 as rates fall 100 basis points: Australian Financial Review’s David Bassanese

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Mirvac chairman James MacKenzie is seeking to win the approval of shareholders by volunteering to stand for re-election at the developer’s next AGM on November 15.
A spokesperson for Mirvac said MacKenzie had decided to stand for re-election "as he believes it is the right thing to do".
MacKenzie will stand for re-election alongside non-executive directors John Peters and Marina Darling and recently appointed finance director Gregory Dyer.
ASX rules require that one-third of an existing board must be re-elected at each annual general meeting, with MacKenzie agreeing to fill the one remaining spot.
The Australian reported that if MacKenzie had not volunteered either James Millar or former Suncorp CEO John Mulcahy would have stood for re-election based on a rotation system.
MacKenzie has been under pressure from institutional minority shareholders following his decision to replace current managing director Nick Collishaw with Europe-based Sue Lloyd-Hurwitz.
Collishaw will step down as managing director and CEO on October 31, with Lloyd-Hurwitz taking on the mantle on November 5.
His move to seek re-election has been welcomed by <a target="_blank" href="https://www.propertyobserver.com.au/industry-news/institutional-investors-pressure-embattled-mirvac-chairman-james-mackenzie-and-board-over-decision-to-replace-ceo/2012091056495">fund manager Winston Sammut of</a><a target="_blank" href="https://www.propertyobserver.com.au/industry-news/institutional-investors-pressure-embattled-mirvac-chairman-james-mackenzie-and-board-over-decision-to-replace-ceo/2012091056495"> Maxim Asset Management</a>, who represented shareholders with a cumulative holding of 13% of Mirvac calling for MacKenzie to step down.
"It is now going to be decided by all shareholders," Sammut said.
Australian Shareholders Association chief executive Vas Kolesnikoff says it will be closely scrutinising the re-election of MacKenzie.
Mirvac’s substantial shareholders include the Barclays Group (4.91%), Commonwealth Bank (6.33%), BlackRock Investment Management Australia (5.16%) and Vanguard Group (6.21%)
Ahead of the November 15, MacKenzie will meet with shareholder proxy groups to shore up support.
MacKenzie already has the backing of the Mirvac board.
The Mirvac board comprises MacKenzie plus Marina Darling (only appointed in January 2012), Peter Hawkins (a banker with previous senior roles at ANZ), James Millar (former CEO of Ernst &amp; Young Oceania), former Suncorp CEO John Mulcahy, John Peters (formerly with Lend Lease) and Elana Rubin.
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Mirvac chairman James MacKenzie volunteers for board re-election to take on doubters

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Westpac has become the latest mortgage lender to cut its fixed-rate mortgage rates as the battle continues to attract and lock in cautious borrowers in low-priced fixed mortgage deals.
When including the discounts of 0.2 percentage points in Westpac's Premier Advantage Package (PAP) are included in the latest reductions, the new offers will see the following rates apply:
<ul>
<li>Two-year fixed-loan – down 0.15 percentage points to 5.54%</li>
<li>Three-year fixed-loan – down 0.1 percentage points to 5.54%</li>
<li>Four-year fixed-loan – down 0.1 percentage points to 5.89%</li>
<li>Five-year fixed-loan – down 0.1 percentage points to 5.89%</li>
<li>The existing discounted one-year offer remains unchanged at 5.69%.</li>
</ul>
The bank now offers the cheapest three-year fixed home loan rate, compared with 5.59% offered by the Commonwealth Bank and 5.64% on offer from NAB.
It takes the popular three-year fixed-rate loan to its lowest level since April 2009.
It also offers the lowest big four bank two-year fixed of 5.54%, four-year fixed at 5.89% and five-year fixed at 5.89%.
"We have experienced an increasing demand for fixed-rate loans, particularly for extended periods of time as a growing number of our customers look for certainty, security and peace of mind over their mortgage repayments,” says Jason Yetton, group executive of Westpac's retail and business banking division.
"As a result, we are pleased to be able to offer these very attractive rates that put us in a market leading position amongst our major peers in what is a very competitive market."
Westpac’s move to slash fixed-rates follows <a target="_blank" href="/news">Citibank repricing its one-, two- and three-year fixed-rate home loans to 5.55% per annum</a>, a reduction of 44 basis points over the past month.
ME Bank is currently offering the lowest three-year fixed rate at 5.39% for its super and union members, according to ratecity.com.au – 23 basis points below the lowest variable home loan rate on the RateCity database (5.62% from UBank)
The push to offer lower fixed rates comes as demand for the products rises with RateCity.com.au reporting that close to one in five home loan enquiries (18%) in August were fixed-rate inquiries, compared with just 5% in July.
Mortgage Choice also recorded a 33% increase in fixed-rate borrowers in August – rising from 15% of all loans arranged to 20%.
Three-year fixed rates are starting from as low as 5.39% – that’s 23 basis points below the lowest variable home loan rate in the RateCity database (5.62%).
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Westpac undercuts major rivals with fixed rate cut

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Darwin is the only capital city residential property market already into its upswing, according to property valuers at Herron Todd White.
The nationwide valuation firm says Darwin is already in the upward phase of its property cycle due to a “severe shortage of available property relative to demand”, a tightening rental vacancy rate and strong demand for new houses.
Furthermore the volume of house sales is increasing as new housing is built to meet demand.
Hotspotting.com.au’s Terry Ryder picks Darwin as the<a href="https://www.propertyobserver.com.au/nothern-territory/darwin-a-standout-market-for-property-investors-terry-ryder/2012092056694" target="_blank"> standout property market for property investors</a> due to its “compelling statistics on vacancies, rents and prices”
“The Northern Territory is evolving into a gas hub of international significance… at the same time, the territory government has sought companies to build and operate a marine supply base in Darwin,” says Ryder.
In its September building industry outlook report BIS Shrapnel forecast a solid improvement in residential building activity in the NT, with a 39% jump in building commencements forecast for 2012-13.
“The strength of the local economy will see migration pick up again, with work on the Ichthys gas project expected to ramp up in 2012-13 and beyond," says BIS Shrapnel.
“Hence despite an improvement in residential building the dwelling stock deficiency is expected to persist over the forecast period.”
Herron Todd White is also bullish about the Perth and Brisbane house and unit markets, with Sydney and Melbourne considered to have bottomed out.
Perth edges Brisbane in terms of the factors required for a recovery in property prices with a tightening rental market due to a shortage of available property relative to demand and a declining trend in the construction of new houses and units.
State of the property cycle for houses
<img src="/images/stories/2012/09/htwsept24.gif">
Source: HTW
 HTW assesses the Brisbane rental market as being balanced with a steady vacancy trend, “soft” demand for new houses and units and a steady volume of sales.
Both Sydney houses and units are at the bottom of the property cycle, according to HTW.
State of the property cycle for units
<img src="/images/stories/2012/09/htwsept241.gif">
Source: HTW
The Sydney detached house market appears to have moved quickly through the property cycle, with HTW assessing this market to be at its peak at the same time last year.
In comparison, the Sydney unit market was assessed as declining in the August 2011 monthly review and has taken a year to bottom out.
All the factors favour a recovery for the Sydney property market, with a balanced rental market for houses and a shortage of units to rent, says HTW.
In addition demand for houses and units is “fair”, with the trend in new construction and volume of home sales “steady”.
HTW assesses Melbourne houses to be at the bottom of the market or just beginning their recovery, with steady rental vacancy rate favouring landlords and steady demand for new houses and existing houses.
Despite the Melbourne unit market bottoming out, HTW says the unit market is drifting towards oversupply with soft demand for new units due at the same time as supply increases.
HTW assesses Hobart, Canberra and Adelaide’s property markets to be in a downswing.
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Darwin the only housing market currently in upswing, but Brisbane and Perth recovering: HTW

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Australia is performing better than most “advanced economies” but risks to its financial stability remain due to a concentrated banking sector heavily reliant on residential mortgages and "elevated" house prices, says the International Monetary Fund (IMF).
As part of its regular (every five years) assessment of the Australian economy, the IMF says the current macroeconomic policy stance is “appropriate” and should remain “accommodative” as the first line of defence against “near-term adverse shocks”.
While it says that risks to stability are primarily external (European debt crisis, a hard landing in China, a sharp fall in commodity prices), it warns that the banking system remains “highly concentrated and interconnected”.
“The four major banks are systemic, with broadly similar business models, and their use of wholesale and offshore funding, even at reduced levels, remains a risk.
“Residential mortgages are the banks’ single largest asset but household debt is high and house prices are elevated.
“However, these are long-standing structural issues that will remain sources of risk over the medium-term, and several factors, including relatively low household leverage, mitigate this risk.”
While the IMF says stress testing indicates that the major banks are adequately capitalised and are likely to withstand large macroeconomic shocks, it says they would require “RBA liquidity support to withstand an extreme funding shock”.
“The sector faces the prospect of slower credit growth as businesses and households continue to deleverage, and could take on riskier strategies in an effort to return to pre-crisis credit growth rates and maintain profitability.
“To further bolster financial system stability against these risks, we recommend that the authorities continue to emphasize intensive bank supervision and introduce higher loss absorbency for systemically important banks.”
The IMF warns of the potential impact of a “hard landing in China” being reduce demand for Australian mineral exports, worsening terms of trade, reduced household income, which it says could trigger a fall in house prices.
“This could in turn weaken consumer demand and growth, and negatively affect banks’ balance sheets. However, we consider this type of risk escalation to be a relatively low probability event.”
The IMF reassures that Australian authorities have the monetary and fiscal policy space to respond to near-term shocks, “with monetary policy serving as the first line of defence”
“The Reserve Bank of Australia (RBA) has the scope to lower interest rates and loosen monetary conditions to help buffer against a downside scenario.”
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Big four banks reliance on mortgages and 'elevated; house prices a risk: IMF

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Grocon has reportedly launched a $10.5 million claim against the Victorian construction division of the Construction Forestry Mining and Energy Union (CFMEU) over its blockade at four Melbourne construction sites in August and September.
The figure is higher than the $5 million to $7 million Grocon boss Daniel Grollo said the strikes would cost the property development and construction group.
A spokesperson for the  Victorian Supreme Court said the statement of claim had not yet been filed. 
Mr M McDonald SC with MrR P WheelaHAN appeared on behalf of the Plaintiffs, Grocon.
Mr P Morrissey SC with Ms R Shann appeared on behalf of the union.
Mr S Wood SC with Mr J Snaden and Mr B Jellis appeared on behalf of the Attorney General.
A two-day hearing of Grocon contempt of court action against the CFMEU was due to begin today in the Victorian Supreme Court today alleging the union breached two injunctions ordering the blockade to stop.
This morning the Victorian Supreme Court tweeted: "CFMEU now has counsel, sought adjournment late yesterday, granted, plan to plead not guilty, Grocon matter will now be heard next Wednesday".
The epicentre of the dispute was the $1.2 billion Myer Emporium development in the Melbourne CBD.
The blockade lasted for 16 days and was lifted on September 7 when both parties agreed to enter into private negotiations through Fair Work Australia.
A report in the Australian Financial Review cited industry and union sources as saying rumours were rife that the negotiations might have broken down but a spokesperson for Grocon said it was "still very open to the talks continuing”.
A 139-page statement of claim has been filed against the union and alleges that a number of contractors were pressured not to continue working on four Grocon sites.
Dave Noonan, national secretary of the CFMEU’s construction division, said the union would “vigorously defend” itself against the claim.
The statement of claim notes the Victorian CFMEU’s construction division had net assets of $46 million at the end of the 2011.
According to the AFR, union accounts show about $4.7 million is tied up in investment properties and $25.4 million in property, plant and equipment.
National accounts show the union’s primary property asset is its 276 Pitt Street in Sydney, which was valued at $3.35 million as of February 2009.
The Pitt Street property is the headquarters for the union’s construction and general division.
National accounts show the union made a loss of $62,878 in the 2011 financial year following a loss of $587,607 in the 2010 financial year.
Nationally, the CFMEU has just under 71,000 members and earned revenue of $3.94 million in 2011, with most of this earned from union fees.
 
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Grocon to sue union over blockade of Melbourne building projects

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The man who first tipped the RBA would start cutting rates in November last year now expects the central bank to resume cutting the cash rate by 25 basis points at its October 2 meeting, having previously favoured a November start.
Westpac chief economist Bill Evans is forecasting another 25 basis points rate cut in November and third rate cut in the 2013 March quarter taking the cash rate to an all time low of 2.75%
This represents a slight change from his Tuesday forecast, following the release of minutes of the RBA's September Board, which Evans said included “some significant signals that the Reserve Bank is close to cutting rates”
On balance, Evans said on Tuesday he expected the rate cutting cycle to resume in November, but that "the ground work has been laid for a move as soon as October".
He now joins three other economists – Shane Oliver from AMP Capital Investors, Stephen Koukoulas from Market Economics and Dominic Bryant from BNP Paribas Asia – who are also tipping a rate cut in October.
Also this week, ANZ Research shifted its view on the cash rate cut timings, and is forecasting rate cuts in October and November with an easing bias thereafter.
In today’s RBA bulletin, Evans explained how Westpac’s reasoning had shifted since the release of the September minutes on Tuesday (September 18)
“Our snap first take on the minutes of the September board meeting indicated that the board was close to a rate cut but probably not sufficiently close to bring the first move forward to October.
“In the analysis of the minutes I noted, “today’s minutes of the RBA’s September board meeting show some significant signals that the Reserve Bank is close to cutting rates ... the ground work has been laid for a move as soon as October... We assess that the bank is close to moving on rates but, in a close call, do not assess that there is sufficient evidence from these minutes to revise our view that the cuts are likely in November and December”.
But with time to further analyse the minutes Evans says the odds “now slightly favour an October move rather than waiting until November”.
“The aspect of the minutes which merits most scrutiny is the statement, 'The current assessment of the inflation outlook continued to provide SCOPE to adjust policy in response to any significant deterioration in the outlook for growth'," Evans says.
Evans says use of the word “scope” is significant.
“That word rang a few bells with us. It has been used sparsely but significantly in the past during easing cycles," he says.
“Since August 2008 there have been two easing cycles – August 2008 to April 2009 and October 2011-present. During those cycles there have been 20 board meetings – eight in the August – April period and 12 in the October-present period.
 
<hr class="system-pagebreak">
 
In the minutes the word “scope” has been used on six occasions in the key paragraphs on Considerations for Monetary Policy.
“Three coincided with the meeting where the decision had been made to cut.
“Arguably, the use of the word at that time emphasises its appropriateness for an easing cycle.” Some commentators have suggested the RBA will wait until the release of September quarter inflation data due out on October 24, but Evans says the CPI report tends to be more significant in a tightening cycle than in an easing cycle.
“There is less urgency to await the CPI when rates are being cut than when they are being increased. That makes the choice between October and November more complex than if the cycle was likely to be a tightening cycle.”
Evans also accepted that much of its analysis of monetary policy statements and minutes could be described as "pedantic", adding that Westpac Economics “certainly sees its primary contribution to assess the medium term outlook for the cash rate. 
“However, some of our customers are interested in the specific month to month timing of these moves and hence the attempt to put some analysis behind reasons for choosing particular months”.
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RBA to resume cash rate cuts in October, followed by November and one in March quarter: Westpac’s Bill Evans

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Mortgage comparison website Mozo has ended its mystery home loan deal, which promised those who signed up a discount of up to 1% off the standard variable rate of a big four bank.
The offer, which was launched on September 6, is no longer on the Mozo home page or in the home loan section of the website.
Mozo spokesperson Kirsty Lamont posted on Property Observer that having received “such a strong level of enquiries from borrowers that our first mystery deal has now closed, as the lender involved has already met their loans quota”.
“We’re working on bringing some new deals to the market again soon,” Lamont added.
The <a target="_blank" href="/news">big four bank involved in the mystery deal</a> was not revealed.
In an earlier email to Property Observer Lamont said Mozo had already handled refinancing and new loan enquiries for over $80 million worth of borrowings.
“Half of this has already progressed through the approval process,” she said.
Assuming an average mortgage size of $300,000, this would equate to around 270 loan deals provided by the mystery bank.
Lamont later confirmed that $80 milion worth of loans were being negotiated with170 borrowers, with an average loan size of around $500,000.
Anyone who did not get a phone call back from Mozo  might conclude that they did not request a large enough loan to entice the interest of Mozo or the mystery lender.
The Mozo offer placed no obligation on the borrower to take up the loan.
Once one of the 170 selected borrowers found out who the bank was behind the offer, it was up to them to decide whether they wished to progress to submitting a mortgage application.
Mozo claimed borrowers could save over $100,000 by taking up the offer based on the current Mozo mystery bank variable rate of 5.93% for a $500,000 loan, versus the current average big four bank standard variable rate of 6.82%, assuming a loan term of 25 years.
The dedicated url <a href="https://mozo.com.au/mystery-bank-deal">www.mozo.com.au/myster-bank-deal</a> was still functioning when we last checked.
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Mystery big four bank Mozo home loan deal no longer available: Spokesperson

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An increasing percentage of recent Gold and Sunshine Coast home buyers would get less than what they paid for homes if they were to sell them now, according to the latest RP Data Value Accumulation report.
The quarterly report compares the original purchase prices with the current estimated value of property as at June 2012 to provide a measure of value accumulation.
Around 18.3% of Gold Coast properties are now worth the same or less than their original purchase price, compared with 16.8% in the March quarter.
On the Sunshine Coast the proportion of properties worth the same or less than their original purchase price increased from 14.3% to 16.7% from the March quarter to the June quarter.
Nationally, the percentage of homes worth less than or the same as their purchase price increased from 5.4% of homes in the March quarter to 5.9% in the June quarter 2012.
“Of course many homes purchased over the past year would be worth less, with values having fallen by 3.6% across the combined capitals over the 12 months to June 2012,” noted RP Data.
The Gold Coast and Sunshine Coast maintained their second and third place rankings respectively on the list of locations with greatest proportion of homes worth the same or less than their purchase price, but both have worsened on this metric since the March quarter report.
Properties currently listed for sale on the Gold Coast below their previous purchase price include this three-bedroom townhouse (pictured below) on Central Street in Labrador, being marketed by Peter Jarmer of Smart Real Estate and seeking offers above $279,000. The property last sold for $295,000 in January 2008.
<img src="/images/stories/2012/09/centralst.jpg">
Another property listed for close to its previous sale price is this four-bedroom house  on Hobwee Street, Veresdale, in the Gold Coast hinterland near Beaudesert, which is seeking offers above $299,000. It last sold for $295,000 in May 2008. The property is being marketed by Andrew Patrick from Elders Jimboomba.
<img src="/images/stories/2012/09/veresdale.jpg">
 
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The top position on the RP Data list of locations with greatest proportion of homes worth the same or less than their purchase price was retained by the far north Queensland market, which includes heavily tourism-dependent Cairns, Palm Cove, Port Douglas, Innisfail, Weipa and Atherton, with just under one in five homes (19.9%) worth less than their purchase price as of June 2012.
<img src="/images/stories/2012/09/rpsept21.gif">
Source: <a target="_blank" href="https://www.myrp.com.au/">RP Data</a>
However, while a greater proportion Gold Coast and Sunshine Coast properties slipped into the red, the far north Queensland valuation position remained unchanged since the March quarter.
RP Data notes in the report that "coastal and lifestyle markets, which had previously been supported by a strong tourism sector and the ‘sea-change’ phenomenon, have tended to be the weakest performers”.
“Nine of the 10 regions with the greatest proportion of value declines adjoin the coast, with these regions accounting for 9.6% of the national population. Noticeably, none of the capital city housing markets appear on this list,” RP Data says.
RP Data says the housing market in north Queensland has been “noticeably weak and has felt the full brunt of the economic downturn”.
“Prior to the onset of the financial crisis, this region was benefitting from surging demand due to a high level of population growth, with property values subsequently rising strongly.
“As a result, the majority of home owners that have purchased since 2008 are likely to have a current value that is lower than the purchase price.”
 
<hr class="system-pagebreak">
 
Another market that weakened noticeably was West Moreton, which recorded the greatest quarterly increase of 4.2 percentage points, with 11.8% of homes now worth less or equal to their original purchase price.
West Moreton occupies the entire rural western portion of south-east Queensland and includes the electorates of Lockyer, Beaudesert, Ipswich West and Nanango.
At the other end of the spectrum, Canberra retained its position as having the lowest proportion of homes worth less than their purchase price, with just 2.2% fitting into this category.
Outside of Canberra, no other capital city housing markets feature on the list.
“Most of the regions detailed are characterised as being regional and linked either to the mining and resources sector or agriculture,” says RP Data 
<img src="/images/stories/2012/09/rpsept211.gif">
Source: <a target="_blank" href="https://www.myrp.com.au/">RP Data</a>
On a state-by-state basis, Queensland has the greatest percentage of properties that have recorded a decline or no change in value since their purchase at 9.6%, but down from 11% at the end of 2012.
Western Australia also has a relatively high instance of homes worth less than or the same as their purchase price at 6.8%, down from 7.9% of homes last quarter.
On the other hand, the Australian Capital Territory (2.1% down from 2.5%) and Victoria (3.3% down from 4%) have relatively few properties worth less than or the same as their initial purchase price.
According to RP Data, Australia’s residential housing market was worth an estimated $4.83 trillion at the end of June 2012. This is more than three-and-a-half times the value of the Australian equities market, which has a market capitalisation of $1.2 trillion.
“The amount of equity in one’s home is often a key factor that a bank will assess when deciding whether or not to lend money. Australians have increasingly relied on equity, which is simply the value of the home less the amount of debt held against the property, as a vehicle to leverage into other investments,” notes RP Data.
Over the 10 years to June 2012, capital city home values have increased by about 73%.
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Gold Coast and Sunshine Coast show no signs of turnaround as more homes worth less than purchase price: RP Data 

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BWP Trust has added the Gladstone Home Centre to its bulky goods property portfolio, paying $27 million for the 21,791-square-metre retail centre just outside the business centre of Queensland mining hotspot, Gladstone.
The centre is anchor tenanted by Bunnings and Harvey Norman. It was previously called the Centro Gladstone Home and formed part of Centro’s MCS 37 property trust.
BWP Trust primarily invests in Bunnings bulky goods stores.
The Gladstone acquisition increases the number of Bunnings Warehouses owned by the trust to 67 and brings the total number of properties in the portfolio to 73.
The purchase price of $27 million (plus acquisition costs of approximately $1.6 million) reflects an initial yield of 8.84%.
The property is fully leased with a passing net annual rental income of approximately $2.38 million and has a weighted average lease expiry (by income) of approximately 4.4 years.
Bulky good stores remain a sought after retail asset, with BIS Shrapnel noting in its September 2012 Building Industry Prospects report that bulky goods centres and neighbourhood shopping centre buildings have outperformed the retail sector “and this is anticipated to continue in the near future".
The Gladstone home centre sale comes as the Australian Financial Review reports that ASX-listed property trust Charter Hall Group is in negotiations to acquire a $230 million portfolio of Bunnings Warehouse properties across Australia from Wesfarmers.
Competition in the bulky goods DIY sector has heated up with Woolworths looking to expand its DIY Masters chain.
Burgess Rawson’s Darren Beehag and Dean Venturato are currently seeking buyers for an 8,300-square-metre Bunnings warehouse in Bathurst with an asking price of $8 million – reflecting a yield of around 8.7%. The centre has a net income of $693,000.
Bunnings plans to open 18 warehouses in 2013 with plans to open between 10 and 14 annually in subsequent years. In total there are more than 80 warehouses in the pipeline.
The Gladstone home centre stands at 20 Dawson Highway in Clinton, about eight kilometres south west of Gladstone’s CBD.
The statement accompanying the acquisition of the bulky goods centre notes that Gladstone’s economy "is supported by a variety of refining, chemical and mining industries and it has one of the world's top five coal export ports, handling in excess of 50 million tonnes of coal per annum".
"The estimated current trade area population is approximately 70,000 residents, including over 55,000 residents in the primary catchment." 
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BWP Trust adds to bulky goods property portfolio with $27 million Gladstone home centre acquisition

Design-led developer-builder Lowe Living has unveiled its latest residential development, Jardin House, marking its first foray into Melbourne's blue-chip City of Boroondara.

Located a short walk from Camberwell Junction, <a href="https://www.apartments.com.au/new-apartments/jardin-house-by-lowe-living-camberwell-335-camberwell-road-camberwell-vic-3124">Jardin House</a> has been designed to appeal to affluent local downsizers and established families seeking a low-maintenance alternative to the large homes that have long defined Camberwell and surrounding suburbs.

The project will comprise a collection of two and three-bedroom apartments ranging from 92 sqm to 280 sqm, alongside a limited number of penthouse residences featuring rooftop terraces spanning more than 100 sqm, with optional private pools.

&nbsp;

[smartcode_project:default project_id=146717 project_image_fid=372212]

Lowe Living Co-Founder and Managing Director Tim Lowe said Camberwell represented a natural next step for the developer as it expands into some of Melbourne's most tightly held residential markets.

"Jardin House is an important project for our team as it marks the next evolution of our portfolio into different well-established blue-chip pockets of Melbourne," Lowe said.

"Camberwell, with its incredible walkability, family-led neighbourhood feel and superb access to education and transport, makes it a natural choice for us."

[smartcode_project:default project_id=146717 project_image_fid=372227]

Designed by Tristan Wong Architects, with interiors by Hecker Guthrie and landscaping by Acre, the development takes inspiration from the Art Deco architecture that remains a defining feature of many of Camberwell's established streets.

A curved facade, arched openings, textured brickwork and sculpted forms reference the suburb's architectural heritage, while extensive landscaping softens the building's presence and creates a strong connection to the surrounding tree-lined streetscape.

The project will be set behind a secure gated entrance, with residents arriving through landscaped gardens designed to create a transition between the public realm and private residences.

Inside, the residences feature natural stone and timber finishes, full-height glazing, Miele appliances and generous open-plan living areas designed for long-term owner occupation.

[smartcode_project:default project_id=146717 project_image_fid=372225]

While the apartments themselves have been designed to attract discerning owner-occupiers, it is the amenity offering that sets Jardin House apart from many other boutique projects currently launching across Melbourne.

The centrepiece is a 350 sqm private bathhouse curated in partnership with Aurora Spa &amp; Bathhouse founder Lyndall Mitchell.

The wellness precinct includes mineral pools, hydrotherapy experiences, a Himalayan salt room, sauna, steam room, cold plunge pools and dedicated relaxation spaces, creating what Lowe Living describes as a private wellness retreat exclusively for residents.

[smartcode_project:default project_id=146717 project_image_fid=372222]

The collaboration follows Lowe Living's recent partnership with Aurora at Maison Savoy in Brighton, although Jardin House is the first project to incorporate both indoor and outdoor wellness experiences.

Emma Lowe, Co-Founder and Managing Director of Lowe Living, said wellness was becoming an increasingly important consideration for apartment buyers.

"Collaborating with Lyndall Mitchell from Aurora Spa &amp; Bathhouse for a second time is an intentional nod to creating residences that are more than just homes, but a way to enrich the lives of our residents through wellness and longevity," Lowe said.

The amenity offering is complemented by a Technogym fitness studio, residents' lounge, private dining spaces and concierge services.

The launch comes as developers increasingly target Melbourne's established eastern suburbs, where rising land values, ageing housing stock and growing downsizer demand are creating opportunities for boutique apartment projects.

Lowe said the company expects significant generational wealth transfer across suburbs such as Camberwell in coming years, creating further demand for luxury apartment living.

"Camberwell is a blue-chip suburb where homes regularly transact for multiple millions of dollars," he said.

"The generational change of wealth in these locations expected in the coming years is significant, so we see an opportunity to create exclusive residences that appeal to older families and downsizers in order to meet this demand."

Apartments at Jardin house start from $1,195,000. The project forms part of Lowe Living's near-$1 billion portfolio of new developments across Melbourne.

[smartcode_project_cta:default project_id=146717]

Joel Robinson

Lowe Living launches Jardin House in Camberwell

As <a href="https://www.apartments.com.au/developments/north-sydney-nsw-2060">North Sydney</a> continues its transition from a commercial centre into a more layered residential and lifestyle precinct, a new generation of apartment developments is reshaping expectations around scale, amenity, and long-term liveability.

Improved transport connections through the Victoria Cross Metro, continued investment in dining and public spaces, and a constrained supply of new luxury apartments have sharpened demand for homes that combine proximity to the CBD with the privacy and outlook traditionally associated with harbourside houses.

At 177 Walker Street, <a href="https://www.apartments.com.au/developers/aland">ALAND</a>’s new apartment development <a href="https://www.apartments.com.au/new-apartments/the-walden-north-sydney-177-walker-street-north-sydney-nsw-2060">The Walden</a> enters the market with a distinctly residential approach to high-rise living. The 30-level tower will deliver 161 residences, ranging from one-bedroom apartments through to sub-penthouses and a full-floor penthouse, all oriented to capture uninterrupted views across Sydney Harbour, the Opera House, and out toward the Pacific Ocean.

[smartcode_project:default project_id=134323 project_image_fid=6395]

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, the project takes advantage of the site’s natural topography and elevated position above the harbour. Rather than relying on density alone, the architecture focuses on outlook, orientation, and spatial flow, with every apartment occupying a corner position to maximise natural light and cross ventilation.

Rothelowman says the site itself shaped much of the architectural response.

“The site has a long history in terms of its inevitable transformation and when we came in, we took inspiration from the idea of reestablishing a sense of the site’s natural terrain and fall. Our scheme aims to integrate with the terrain and the landscape, using the undulating site to slowly reveal glimpses and views of the harbour. The rotation of the tower off grid means every apartment has a view and is naturally cross ventilated. The building's colour palette is quintessentially Sydney, with bronze and sandstone and a luminescent green colour in the glass, making it very earthy and grounded in its location.”

[smartcode_project:default project_id=134323 project_image_fid=6399]

Inside the residences, the emphasis moves toward larger-format living typically associated with standalone homes. Kitchens sit at the centre of the apartments, connecting directly to open-plan dining and living areas before extending outward into expansive winter gardens and balconies. Calacatta marble, bespoke joinery, integrated appliances, and custom metal detailing are used throughout, while three distinct interior palettes, Terrace, Opera, and Harbour, allow buyers to personalise the spaces without compromising the architectural consistency of the project.

The larger residences place particular attention on separation between entertaining and private zones. In many apartments, master suites occupy the outer corners of the floorplates, allowing bedrooms to benefit from floor-to-ceiling glazing and harbour outlooks independent of the living spaces. Dressing rooms and ensuites continue the material palette through fluted detailing, freestanding baths, and layered stone finishes.

Rothelowman says the design intent centred on creating homes that feel enduring rather than transient.

“Our philosophy is all about the way people live in these spaces, and we wanted to create homes that reflect the quality of life in this unique Sydney location. The apartments showcase expansive living spaces that are generous, sophisticated, and bold, with the ability to connect with views throughout each apartment.”

[smartcode_project:default project_id=134323 project_image_fid=353235]

A separate four-storey amenity building known as The Pavilion expands the residential offering beyond the apartments themselves. Positioned alongside the tower, the building consolidates wellness, recreation, and social spaces into a dedicated resident retreat. Facilities include a 20-metre rooftop pool and sundeck, sauna, spa, ice bath, wellness studio, gymnasium, concierge service, wine cellar, residents’ lounge, private dining spaces, and dedicated co-working areas with meeting rooms and boardroom facilities.

The amenity mix reflects the buyer profile emerging in North Sydney, where owner-occupiers and downsizers are increasingly prioritising convenience, apartment scale, and long-term usability over purely investment-driven decisions.

The Walden also represents a significant milestone for ALAND, marking the company’s first major move into Sydney’s inner-city luxury apartment market after more than two decades delivering large-scale residential communities across Greater Sydney. Founder Andrew Hrsto says the Walker Street site stood apart because of both its positioning and its rarity.

[smartcode_project:default project_id=134323 project_image_fid=6390]

“As a company, we had been searching for a site in one of Sydney’s blue-chip locations, spanning the Eastern Suburbs, the Sydney CBD and the North Shore, and when we had the opportunity to purchase this site, we immediately recognised that it could be something iconic.”

At launch, The Walden recorded more than $103 million in sales, with buyers drawn to the project’s harbour positioning, apartment scale, and proximity to the Metro, which now connects North Sydney to Barangaroo in three minutes and Martin Place in five.

ALAND has commenced construction, and is expecting a completion date in 2028.

[smartcode_project_cta:default project_id=134323]

The Walden pairs house-scale living with North Sydney connectivity

The ACT will become the first jurisdiction in Australia to abolish stamp duty for all first home buyers, with no income caps and no property price thresholds from 1 July.

The move, announced as part of the ACT Budget, completes a key election commitment from the Barr Government and removes what Chief Minister Andrew Barr described as one of the biggest barriers to entering the housing market. The reform forms part of the ACT's long-running transition away from transaction taxes and towards a broader-based property tax system.

"This budget marks a major milestone in our long-term tax reform program," Barr said, adding that the government had maintained a sustained focus on removing barriers to home ownership. He said stamp duty had long been one of the largest upfront hurdles facing buyers and that from July, "that barrier is gone" for first home buyers in the Territory.

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The changes come alongside a range of measures designed to encourage new housing supply, including support for the delivery of so-called "missing middle" housing such as terraces, townhouses and low-rise multi-unit developments.

The announcement has renewed debate around whether the ACT's approach could provide a blueprint for improving housing affordability nationally.

New research from OurTop10.com.au, conducted by Primara Research, suggests the Territory's decade-long reform agenda has produced outcomes unmatched elsewhere in Australia.

While stamp duty costs have increased by an average 67 per cent nationally over the past decade, the ACT has recorded growth of just 15 per cent, the lowest increase of any jurisdiction.

The Territory has also emerged as one of the strongest performers on housing delivery. Based on population-weighted housing targets, the ACT is sitting less than one per cent behind its target. Victoria is the next closest at seven per cent behind, while the national average sits 25 per cent below target. New South Wales is tracking 39 per cent behind.

The latest reform removes one of the final barriers facing first home buyers in Canberra.

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The average Australian home buyer currently pays $61,714 in stamp duty. In the ACT, that figure is $38,399 despite the Territory having the third-highest median house price in the country.

Until now, the ACT's first home buyer concession scheme only applied to purchases up to $1.02 million, around $51,000 below Canberra's median house price of $1.071 million. In practical terms, many first home buyers were unable to access the median-priced home without losing the concession.

From July, those restrictions disappear.

Every first home buyer in the ACT will pay no stamp duty, regardless of income or purchase price.

Canberra remains one of Australia's most expensive housing markets, with dwelling values increasing 82 per cent over the past decade. However, that growth ranks only 11th among Australia's 15 major housing markets, suggesting affordability pressures have been less severe than in many other parts of the country.

Simon Ma, CEO of OurTop10.com.au, said the latest reforms recognise that many first home buyers have simply outgrown thresholds set years ago.

"Many first home buyers aren't just looking for a way onto the ladder, they want a home their family can actually live in," Ma said.

"In a market where the median house price is over a million dollars, a concession scheme that cuts out at $1.02 million was never going to get them there.

"Removing the ceiling entirely means ACT first home buyers can now pursue the home they actually want, rather than limiting themselves to a price point designed for a very different market."

Whether other states follow remains to be seen. But at a time when most jurisdictions are struggling to improve affordability while also increasing housing supply, the ACT has quietly become the national test case for both.

15% stamp duty growth. Just 1% off the national housing target. Zero stamp duty for FHBs. Is the ACT the blueprint for the great Australian dream?

ACT abolishes stamp duty for first home buyers

A rooftop pool and spa overlooking the Brisbane CBD, private dining spaces, expansive landscaped gardens and a residents' lounge are set to crown <a href="https://www.apartments.com.au/new-apartments/callista-on-park-west-end-49-mollison-street-west-end-qld-4101">Callista on Park</a>, the final residential building within Brisbane's West Village precinct.

The rooftop amenity collection has been designed as an extension of the lifestyle already established throughout West Village, providing residents with a series of indoor and outdoor spaces that capitalise on the building's elevated position above West End.

A swimming pool and heated spa form the centrepiece of the rooftop offering, surrounded by landscaped gardens developed through a collaboration between developer Sekisui House and ASPECT Studios. The design incorporates expansive lawn areas surrounded by English garden-inspired planting.

[smartcode_project:default project_id=134800 project_image_fid=370648]

Residents will also have access to two barbecue and outdoor dining areas positioned to take advantage of views across Brisbane's skyline, neighbouring Mollison Park, and the surrounding inner-city landscape.

For larger gatherings, the rooftop includes a private dining room centred around a substantial stone island bench, complete with a full kitchen and a 10-seat dining table set beneath four-metre-high ceilings. The space has been designed to overlook both the rooftop gardens and the Brisbane CBD skyline.

A separate residents' lounge provides an additional indoor retreat connected to the broader rooftop amenity offering, creating another space for residents to work, relax or entertain guests.

[smartcode_project:default project_id=134800 project_image_fid=370647]

The attention to detail extends beyond the rooftop.

Upon arrival, residents will enter through a lobby featuring a bespoke ceiling light installation developed in collaboration between Sekisui House and Alcorn Middleton Architecture. The arrival experience is complemented by private resident mailboxes and carefully considered interior finishes designed to reflect the premium positioning of the building.

[smartcode_project:default project_id=134800 project_image_fid=372541]

The amenity offering forms part of Callista on Park, the final residential release within the decade-long transformation of the former Peters Ice Cream Factory site into West Village, one of Brisbane's most established mixed-use communities.

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> and being delivered by <a href="https://www.apartments.com.au/builders/hutchinson-builders">Hutchinson Builders</a>, Callista represents the most premium residential offering within the masterplanned precinct.

Construction is now entering its final stages, with scaffolding beginning to come down and completion expected in the first quarter of 2027.

Prices for the three-bedroom plus MPR apartments start from just over $2.6 million.

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Callista will mark the final opportunity to purchase within West Village, where residents have direct access to more than 35 retail, dining, wellness and medical operators including Harris Farm Markets, Woolworths, Function Well and Goodlife Health Clubs, Metro Arts, and a growing collection of restaurants and cafés.

Located just 800 metres from the Brisbane CBD, the precinct also places residents within walking distance of South Bank, West End's dining scene, riverfront parklands and major public transport connections.

For Sekisui House, which has delivered more than two million homes globally, Callista serves as the concluding piece of the West Village masterplan, bringing together the precinct's heritage character, parkland setting and emphasis on walkability in a final collection of larger-format residences.

[smartcode_project_cta:default project_id=134800]

Rooftop pool, private dining and skyline gardens to crown West Village's final apartment release, Callista on Park

<a href="https://www.apartments.com.au/developments/wahroonga-nsw-2076">Wahroonga</a>’s enduring appeal has long been tied to its balance of bushland, established amenity, and access to some of Sydney’s most respected education and healthcare institutions.

Along Fox Valley Road, that combination is becoming increasingly sought after by buyers looking to remain connected to the Upper North Shore lifestyle while prioritising walkability, wellbeing, and convenience.

Developer Capital Corporation's initial vision of a 62-hectare site on Fox Valley Road was that they could create their own walkable community, bordered by&nbsp;more than 25 hectares of bushland and adjoining Coups Creek.

<img alt="Wahroonga" data-entity-type="file" data-entity-uuid="b84917a1-0d75-49b9-888c-ddf7ebfd6692" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/NEW2026_Wahroonga_Walkway.gif?VersionId=Gk3_xi5ssYfalmwuQQ5umQakddceC31j" />

<a href="https://www.apartments.com.au/new-apartments/the-residences-at-wahroonga-estate-169-fox-valley-road-wahroonga-nsw-2076">The Residences at Wahroonga Estate</a> draws directly on the area’s natural landscape, with walking trails and green corridors linking into sections of Lane Cove National Park. The surrounding network of bushwalks, cycling tracks, and reserves reinforces the suburb’s long-standing reputation as one of Sydney’s most nature-oriented residential pockets, while still maintaining close ties to village retail and transport infrastructure.

The address places residents within minutes of Wahroonga and Turramurra villages, where cafés, local grocers, boutiques, and everyday services support a highly localised lifestyle. Popular nearby venues including The Fox Café and Breeze Valley Café provide easy options for morning coffee or casual dining, while longstanding retailers such as IGA Wahroonga Fresh and Novella Fine Books continue to anchor the area’s village character.

&nbsp;

<img alt="Wahroonga" data-entity-type="file" data-entity-uuid="c4a950f7-4f05-4370-b360-b106359788e5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/2026_Wahroonga_Entry_Gates.gif?VersionId=7n5kh9ymu.azYEYDemJkPgiIAfSw44oj" />

Healthcare access remains one of the defining locational advantages of the estate. Sydney Adventist Hospital, known locally as The San, sits directly adjacent and is one of the largest and most respected private hospitals in New South Wales. The hospital precinct incorporates specialist medical services, radiology, physiotherapy, and outpatient care, contributing to growing buyer demand from downsizers and owner-occupiers seeking long-term convenience and peace of mind.

Research commissioned by Capital Corporation found that health and wellbeing considerations are increasingly influencing downsizing decisions, particularly among buyers wanting to remain within familiar neighbourhoods while accessing medical infrastructure more easily.

Education has also historically underpinned demand across Wahroonga and the broader Upper North Shore. The estate sits close to several of Sydney’s leading private and independent schools, including Knox Grammar, Abbotsleigh, Barker College, Pymble Ladies’ College, Ravenswood School for Girls, and Loreto Normanhurst. Co-educational options including Wahroonga Adventist School and Sydney Adventist School further strengthen the area’s appeal to established families looking for long-term schooling pathways within a tightly held catchment.

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Transport connectivity supports the suburb’s liveability without compromising its quieter residential character. Wahroonga and Turramurra train stations provide direct rail access into the Sydney CBD, while the nearby Pacific Highway and M1 motorway strengthen links across the North Shore and broader metropolitan area. At the same time, the heavily treed streetscape and low-density character continue to distinguish the precinct from more urbanised parts of Sydney.

The Residences at Wahroonga Estate forms the first stage of <a href="https://www.apartments.com.au/developers/capital-corporation">Capital Corporation</a>’s broader masterplanned vision for the precinct, delivered alongside the Seventh-day Adventist Church.

[smartcode_project:default project_id=135247 project_image_fid=364995]

Designed by <a href="https://www.apartments.com.au/architects/group-gsa">GroupGSA</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/coco-republic-interior-design">Coco Republic</a>, the development integrates landscaped communal spaces including a pet-friendly Green Spine, resident lounge, BBQ pavilion, and direct bushland access, reinforcing the project’s focus on outdoor connection and community-based living.

Now under construction by Gold Star iCIRT-rated builder <a href="https://www.apartments.com.au/builders/dasco-australia">DASCO</a>, The Residences at Wahroonga Estate will deliver a collection of one, two, and three-bedroom apartments priced from $990,000, with completion anticipated in 2027.

[smartcode_project_cta:default project_id=135247]

Larry Schlesinger

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