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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.
 
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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

<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.

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Higher in the building, a rooftop pavilion and private dining suite sit alongside resident lounge, barbecue and outdoor dining areas, opening towards panoramic views across the ocean, city and hinterland.

“Buyers are no longer just looking for an apartment, but a lifestyle where they can relax, reset, and enjoy a balanced way of living,” Hirsch &amp; Faigen Director of Sales Matt George said.

Interest to date has come from established owner-occupiers and interstate lifestyle purchasers, including buyers planning a future move to the Gold Coast. Many are coming from larger homes and want to reduce ongoing maintenance without giving up space for family and guests, privacy, two car spaces or the ability to entertain at home.

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Much of that daily life can also take place beyond the building without requiring a drive. Kurrawa Beach and Pratten Park are an easy walk from Surf Parade, while Pacific Fair, Oracle Boulevard, The Oasis, restaurants, cafés, entertainment and public transport are also within walking distance.

The Eveleigh is Hirsch &amp; Faigen's fourth Gold Coast development since entering the market in 2021, following The Hemingway at Palm Beach, The Emerson at Kirra and Yves at Mermaid Beach. Each of the preceding projects sold out before completion.

“Broadbeach had been on our radar throughout our time operating on the Gold Coast,” the developer said. “Following our projects in Palm Beach, Kirra and Mermaid Beach, Broadbeach represented the natural next step for the business.”

The Surf Parade site brought together proximity to the beach, protected coastal outlooks and walkability to dining, shopping and recreation. Hirsch &amp; Faigen also identified the street as an emerging premium residential address, with enough separation from Broadbeach's busier destinations to retain a quieter environment at home.

The Eveleigh is now under construction by Maxcon, with completion forecast for mid-2028. Three-bedroom residences are currently available from $2.87 million.

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Joel Robinson

The Eveleigh brings house-like apartments to Broadbeach

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

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

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

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

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

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

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