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Institutional investors are pressuring Mirvac chairman James MacKenzie and the Mirvac board over their decision to part ways with chief executive and managing director Nick Collishaw and MacKenzie’s unwillingness to discuss the reasons behind this decision at the recent results briefing.
Concerns have also been expressed over the leadership of the company, with doubts aired as to who is actually running the business.
In mid-August it was announced that Collishaw would step down on October 31 <a href="https://www.propertyobserver.com.au/industry-news/mirvac-s-susan-lloyd-hurwitz-the-face-of-women-in-property/2012081656067" target="_blank">with his role taken over by Susan Lloyd-Hurwitz</a>, now the London-based managing director of LaSalle Investment Management Europe.
The surprise announcement gave no date for Lloyd-Hurwitz to officially take over the reins, only to say that she would take on the chief executive role of the business before the end of the year.
Two weeks ago – after the announcement of his departure – it was reported in the Sydney Morning Herald’s CBD gossip column that Collishaw was asked to leave the room at a Macquarie luncheon also attended by MacKenzie.
CBD speculated that Collishaw left to allow some attendees to ask some potentially sensitive questions regarding the decision to replace him.
In the wake of the decision and subsequent investor dissatisfaction, shareholder Maxim Asset Management is calling for a meeting of at least seven investors, which collectively hold about 13% of the stock, and is pressing for a partial board spill including replacing MacKenzie.
In an email obtained by The Australian, Maxim managing director Winston Sammut highlights MacKenzie’s “reluctance not only to not engage in discussion about the change of CEO and MD but also to effectively shut down discussion on any question directed at him at the results presentation".
Sammut points out in the letter that it is unusual for a chairman to be at a results presentation and even stranger, that being there, he was unwilling to answer questions put to him.
“Accordingly the event was not well received, from an investor point of view and I believe did a lot of damage to the company.”
Having spoken with his peers, Sammut concludes that the level of dissatisfaction with Mackenzie is “very high”.
The press statement accompanying the Collishaw announcement suggested a change in direction for the Mirvac brand, highlighting Collishaw's role in introducing a “renewed conservatism to Mirvac’s business model” in an “important chapter” for Mirvac in the wake of the GFC. Collishaw was appointed managing director of Mirvac in 2008 and guided the developer through the aftermath of the GFC.
But MacKenzie says Mirvac now faces a different set of challenges, including the need to “accelerate cultural change in the business” and place “greater focus on the group’s communication with stakeholders”.
Since the appointment,  the Mirvac board, while not willing to discuss the change of leadership with institutional investors, has provided some clarity around its decisions to sack Collishaw.
Since the announcement, Collishaw’s duties have been under the direction of the board, with a spokesperson telling the Australian Financial Review that Collishaw had “presided over a series of highly unsatisfactory results, specifically in relation to the performance of the chief executive”.
These comments follow a recent newspaper interview in which MacKenzie highlighted Collishaw’s inability to communicate with shareholders as key issue.
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.
Collishaw has maintained his silence over the nature of his departure from Mirvac.
He is entitled to a $1.5 million redundancy payement in lieu of working out his notice. 
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Institutional investors pressure embattled Mirvac chairman James MacKenzie and board over decision to replace CEO

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Former vitamin king Vaughan Bullivant, the maverick Queensland millionaire and owner of the Daydream Island Resort &amp; Spa, has listed the Georgian-style mansion he built for his former wife in the Brisbane bayside suburb of Scarborough.
The opulent three-level, six-bedroom residence at 118 Prince Edward Parade features palm trees and a salt-water swimming pool with views over Moreton Bay from the master bedroom.
It is one of two neighbouring mansions constructed by Bullivant in 2000 following the sale of his Nature's Own vitamin business for $137 million to FH Faulding in 1999.
Bullivant started the business in an old tin shed on the Redcliffe Peninsula in 1995, transforming it into a major packager and wholesaler with a turnover of several million dollars a year.
The two properties came to be known as the "His and Hers" mansions – one occupied by Bullivant and the other by his former wife, Carmel.
The couple divorced in 2004.
The house is being offered for sale via tender by Ray White Ascot principal Dwight Ferguson, with the Australian Financial Review reporting that it has a replacement value of $10 million.
The Georgian-style property is located on more than 4,000 square metres of beachfront land with 70 metres of beach frontage enjoying panoramic views over Moreton Bay.
“I will be continuing to live in my home next door, but as most of my children have grown up and moved on I think it’s a waste for it to be largely unused,” says Bullivant.
“As I look forward to retirement I hope the next person enjoys it to the full.”
The property includes a large resort-style heated salt water lagoon pool, a full-sized tennis court with night lighting and a tennis pavilion, polished feature timber floors, a large study/library and a media room.
The master bedroom takes in the entire width of the home, including a large private balcony with unrestricted views of Moreton Bay and Moreton Island.
“There’s also a private sunken parents’ lounge, bar, large marble spa with floor to ceiling bay windows,” says Ferguson.
The tender campaign closes on October 18.
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Brisbane entrepreneur Vaughan Bullivant lists extravagant Scarborough house next door

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The real estate industry is one of six sectors of the economy set for “short fuse, big bang” changes as a result of the digital revolution over the next few years, according to a new report by Deloitte.
The results, contained in Deloitte’s Digital Disruption white paper, will surprise many in the industry given the dominance of digital media already.
Deloitte estimates that the rental, hiring and real estate services sector is only using 52% of its digital potential and is set for another 22% of “digital disruption” over the next two to three years.
While the time frame for this change is relatively short, the disruption is relatively small compared to other "short fuse, big bang" sectors dealing with challenges from the online sphere – notably retailing and media.
Deloitte estimates that the biggest disruptions will occur in information, media and telecommunications (40%) followed by the retail trade (37%) and finance and insurance services (37%).
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/09/deloitte1.gif"><img src="/images/stories/2012/09/deloitte1thumb.gif"></a>
Source: Deloitte
Other sectors included in the “short fuse, big bang” that flow into the real estate sector are retailing and the finance sector, with retailing set to undergo a dramatic change in the next 12 months, as can be seen on Deloitte’s Digital Disruption Map, which plots the impact of the digital revolution against the time taken for it to occur.
Companies that stand to experience significant digital disruption within the next three years are said to be on a "short fuse", while companies that can expect to record a 15% to 50% change in their metrics, such as mix of revenue channels or cost structures, will experience a "big bang".
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/09/deloitte2.gif"><img src="/images/stories/2012/09/deloitte2thumb.gif"></a>
According to Deloitte, real estate, human resources, IT and finance are industries with significant administrative overheads.
But these and other administrative operations are being transformed by digital changes.
“Administration is one instance in which digital disruption moves beyond business-unit costs and offers opportunities for enterprise-level cost savings,” says Deloitte.
While Deloitte points out that in the retailing space, assets that should be reviewed are "bricks and mortar" facilities like bookstores, department stores, travel agents and DVD rental outlets, it says the impact on real estate extends well beyond retail.
“The ability to relocate labour nationally and internationally is reshaping the office market, the improved ability to telework is affecting residential markets, and changes to supply chains are driving major changes for providers of logistics and warehousing facilities.
“While some business categories will remain fairly protected – such as food court operators or health care providers, which retain a strong link to physical locations – there will be many others that find digital disruption radically changes their real estate needs and investment strategies.
“For instance, document storage companies are likely to be divesting physical space but investing in electronic storage capabilities and processes,” says Deloitte.
In the white paper, Deloitte identifies three broad strategies real estate firms and others can implement to respond to the “short fuse, big bang” disruption.  These are:
<ul>
<li>Recalibrating cost structures – making changes in terms of people, supply chain and overheads to better control costs and compete with digitally-powered, low-cost newcomers</li>
<li>Replenishing revenue streams– building new sources of revenue across segments,  geographies and business models as legacy streams dry up in the wake of digital disruption</li>
<li>Reshaping corporate strategies – reconsidering assets, risk and corporate agility to position the organisation for success in the increasingly digital world.</li>
</ul>
The report was compiled using official data sources say and what Deloitte believes will happen down the track based on its in-depth experience, judgement and market knowledge.
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'Short fuse, big bang' digital change coming to real estate sector: Deloitte

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<img src="/images/stories/2012/09/57k.gif">
The estimated annual rent hat Italian gelato operators Gelatissimo will pay to lease 89 square metres of premium retail space in Toowoomba’s central business district on a five-year deal. Gelatissimo has leased the former ‘Amazing Loans’ site on the prominent city corner of  Ruthven and Margaret streets in a deal negotiated by Ray White Commercial Toowoomba’s Mark Wynhoven and John Smith. Gelatissimo is spending $400,000 on renovating the site to cater for its new business. Gelatissimo dates back to the 1980s in Sydney, where the franchise began, and has it since then has grown to be one of the largest gelato franchises in the world, with established operators in south-east Asia, the Middle East and Italy.
 
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<img src="/images/stories/2012/09/450.gif">
The initial gross rentals per square metre per annum that two tenants will pay to lease space a National Trust-classified, boutique building at the northern end of the Sydney CBD. The remaining whole floors at 1 Barrack Street have now been fully leased in deals negotiated by Ray White Commercial office leasing directors John Skufris and Anthony Harris. Online advertising business Tribal Fusion has secured a 196-square-metre tenancy, and recruitment specialist Vantage Recruitment will occupy 200 square metres at level two. Both leases are on three-year terms. The three-storey building previously had media relations project group Cannings Corporate Communications as its major tenant.
 
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<img src="/images/stories/2012/09/415k.gif">
The annual net annual rental plus outgoings that products and services supplier to utility and energy organisations Utility Asset Management will pay on a sub-lease on Pellicano’s M2 Estate at Dandenong in Melbourne’s south-east. The 2 National Drive property comprises a 5,850-square-metre, office and warehouse building that had been purpose built for lessor Irwin Industrial Tools, which had decided to outsource its warehousing requirement. The leasing deal was negotiated by Savills director Lynton Williams.
 
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<img src="/images/stories/2012/09/100.gif">
The annual rent per square metre industry sources estimate Gold Coast business Wear Parts Australia will pay to lease 1,961-square-metre standalone industrial building at 20 Barnett Place in Molendinar on the Gold Coast. The five-year lease deal with a five-year option was negotiated by Pat Cavanagh of Colliers International. Wear Parts Australia has links to the mining industry, supplying component parts for large earthmoving equipment around Australia.
 
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<img src="/images/stories/2012/09/78k.gif">
The annual rent that Melbourne-based All Vehicle Accessories will pay to lease an 820-square-metre warehouse at 20a Lathe Street, Virginia, north of Brisbane The space has been leased for three years, with the deal negotiated by Steve Black from Ray White Commercial Pine Rivers.
 
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<img src="/images/stories/2012/09/69520.gif">
The gross annual rent that Micron Mining Components will pay to lease 1/33 Industry Court, Eagle Farm, Brisbane. The three-year lease was negotiated by Daniel Wilson of Ray White Industrial Milton.
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Commercial leasing: Gelato operator Gelatissimo leases in Toowoomba

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Logan City property agent Billie-Jean Wilson has been fined $10,000 and has had her resident letting agent licence suspended for five years after pleading guilty to making six unauthorised withdrawals from a trust account and on six occasions, failing to bank trust account money within the required timeframe, Queensland's Office of Fair Trading has reported.
Wilson's company, Symes Wilson Pty Ltd, was fined $5,000.
The fines were handed down by the Beenleigh Magistrates Court on September 7 for 24 breaches relating to a trust account.   
Wilson pleaded guilty on behalf of herself and Symes Wilson Pty Ltd after each was charged with 12 breaches of the Property Agents and Motor Dealers Act 2000 concerning the on-site management of Country Meadows estate in Loganholme.  
The court heard that between January 2010 and July 2011 Wilson made six unauthorised withdrawals from a trust account and on another six occasions failed to bank trust account money within the required timeframe.  
The court took into account that Wilson repaid the money taken and cooperated with the Office of Fair Trading’s investigation. Wilson was fined $10,000 and her resident letting agent licence was suspended for five years.  
No convictions were recorded.
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Logan City estate agent fined $10,000 for rental trust account breaches

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Were the RBA holding its monthly monetary policy meeting today rather than last week, it would have cut the cash rate, Business Spectator columnist and former Gillard government economist Stephen “The Kouk” Koukoulas has tweeted today.
<a href="https://twitter.com/thekouk" target="_blank"><img src="/images/stories/2012/09/kouktweet2.jpg"></a>
This tweet was preceded by:
<a href="https://twitter.com/thekouk" target="_blank"><img src="/images/stories/2012/09/kouktweet3.jpg"></a>
His contention that a more monetary stimulus is needed follows mining giants BHP Billiton and Xstrata announcing around 900 employees will lose their jobs, with BHP saying it will close its Gregory coking coal mine in Queensland on October 10, coming soon after its decision not to proceed with its Olympic Dam expansion project near Roxby Downs in South Australia.
Apart from the loss of mining, jobs, housing finance data for July released today shows that mortgage lending slumped 1% despite rate cuts in May and June – though economists still expect some bounce.
Koukoulas, along with the other 23 economics polled by Bloomberg a week before the September cash rate decision, were unanimous (and correct) in tipping rates to remain on hold – but he was one of only three economists to tip a rate cut in October in the same poll.
The other economists raising their heads above the parapet were AMP Capital Investors chief economist Shane Oliver and the Australian arm of French bank BNP Paribas’s senior Asia economist Dominic Bryant.
Shane Oliver himself tweeted today about the need for a rate cut:
<a href="https://twitter.com/ShaneOliverAMP" target="_blank"><img src="/images/stories/2012/09/olivertweet.jpg"></a>
The same three are again swimming against the tide in the latest September 7 Bloomberg survey – with the other 21 out of 24 economists polled tipping a rate hold when the Reserve Bank next meets on October 2.
In his September 6 “Insights” update Oliver said that in order to boost growth and guard against a slump, the RBA was likely to cut rates to 2.75% in the next six months.
“The bottom line is that interest rates are still too high and will need to fall further.
“The standard variable mortgage rate at 6.8% is just below its long-term average of 7.25%, but normally rates need to fall well below their long-term average to be con?dent of stronger growth.
“In an environment of household and business caution since the global ?nancial crisis, the neutral rate has likely fallen, probably to around 6.75% which would suggest that current mortgage rate levels are not stimulatory at all.”
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Stephen Koukoulas suggests urgent rate cut needed as mining jobs go: Tweet of the day

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The number of home loans approved for owner-occupiers fell 1% in July to 44,804 loans from 45,278 in June., according to the latest housing finance data released by the ABS today.
The monthly drop indicates that the RBA cash rate cuts of May and June have failed to stimulate the demand for new mortgages.
The fall in July home loan approvals was below the expectations of economists polled by Bloomberg last week, who expected no growth in mortgage approvals over July.
Total housing finance by value fell by 1.8%, seasonally adjusted, to $20.05 billion.
Westpac says the detail in the ABS figures reveal a "broadly flat result", with new lending (excluding refinancing) slipping 0.3% lower while refinancing fell by 2.4%.
"Lending for the purchase of new dwellings was down 6.8%, partially reversing an 8.9% rise last month. This segment (just 5% of the total) is volatile," writes Westpac.
"Finance for established dwellings rose 0.2% while finance for the construction of new dwellings continued to trend higher, pointing to an improvement in dwelling approvals. Finance to this segment rose 0.3% in the month, to be 10% higher than a year ago," says Westpac.
"Looking through the volatile seasonally adjusted growth since early 2011, this month’s data confirms housing market activity remains weighed down by weak home buyer sentiment and soft economic conditions in some parts of the economy," commented David Cannington and Dylan Eades from <personname>ANZ Research.</personname>
<personname></personname>"Countering weak housing sales activity, housing finance should be moderately supported in the coming months by the May and June RBA rate cuts," they added.
On a state-by-state basis, the number of owner-occupier housing finance approvals fell in New South Wales (down 346, or 2.7%), Queensland (down 165, or 2%), Victoria (down 159, or 1.3%), South Australia (down 31, or 1%),Tasmania (down 23, or 3.1%) and the Australian Capital Territory (down 20, or 2.7%), while rises were recorded in Western Australia (up 118, or 1.8%) and the Northern Territory (up 27, or 8%).
Westpac says the Queensland result is disappointing and the falls in NSW and Victoria  reflect changes to state government stamp duty and bonus payments, which points to the likelihood of a "July let-down effect". In original terms, the number of first-home buyer commitments as a percentage of total owner-occupied housing finance commitments rose to 19.2% in July 2012, from 18.5% in June 2012.
"First-home buyers are coming back to the market – although the profile has been distorted by changes to incentives. For the month, finance to FHBs rose 2.4%, to be up 19% on a year ago. Further gains are to be expected, as FHBs respond to improved housing affordability," says Westpac.
Between July 2012 and June 2012, the average loan size for first home buyers fell $600 to $291,400.
The average loan size for all owner-occupied housing commitments fell $1,100 to $300,500 for the same period.
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Home loan approvals fall 1% in July: ABS

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The Queensland government will tomorrow announce plans to scrap the $7,000 first-home owners' grant and replace it with a $15,000 handout only available for those first-home owners buying a new home.
The details of the changes to first-home owner handouts, leaked to the Courier Mail, will be announced by Queensland Treasurer Tim Nicholls tomorrow when he delivers the 2012-13 state budget at 2.30pm.
It is less than the $17,000 available to first-home owners buying or building a new home under the previous Bligh government, who were eligible for the $7,000 first-home owners'grant and the $10,000 Building Boost.
The Building Boost ended on April 30 (applications could be lodged up until August 30) and was available to all classes of buyers.
The Queensland changes mirror a similar move by the NSW state government in its June budget, which will mean the end of the $7,000 first-home owners’ grant on October 1, replaced by a $15,000 handout for those buying a new home, including homes bought off the plan.
The changes to Queensland first-home owner grants follows the decision by Queensland Premier Campbell Newman to <a target="_blank" href="https://www.propertyobserver.com.au/tax/queensland-to-introduce-owner-occupier-stamp-duty-cuts-from-july-1-as-other-state-schemes-come-to-an-end/2012062655289">reinstate the transfer duty home concession scheme from July 1.</a>
It provides a concessional stamp duty rate of 1% up to a value of $350,000, with stamp duty charged at normal rates for the remaining value of the home purchase.
The Real Estate Institute of Queensland (REIQ) expressed disappointment at the decision and warned that thousands of Queensland first-time property buyers might delay purchasing their first homes following the scrapping of the long-standing handout.
“REIQ analysis of Office of State Revenue (OSR) figures show only 24% of first home buyers opted to buy a new home when the First Home Owners Boost, which featured up to $21,000 for new-builds, was in play during the GFC,” says REIQ chief executive Anton Kardash
The REIQ expects the decision to remove the $7,000 grant in favour of a $15,000 grant for new homes will impact the majority of prospective first-home buyers.
‘‘The main reason for this is that new homes are usually too expensive for first-time buyers and are often located in outlying suburbs where young people do not necessarily want to live.
“New units and townhouses can also be more expensive than established and often have higher body corporate fees than older apartments.”
Kardash says the removal of the grant failed to take into consideration the complexity of the real estate market and comes as OSR figures show that over the June quarter more than 5,400 first-home owner grants were paid in Queensland, compared with 4,000 over the same period in 2011.
‘‘The first-home buyer segment of the market has been one of the few positives over recent times, so we are likely to see their level of activity decrease significantly once the grant is removed next month,’’ says Kardash.
Not surprisingly, the announcement was welcomed by residential developer Stockland, which described it as a “massive shot in the arm for the state economy” and one that would “underpin the future of the state’s housing industry” and provide thousands of jobs.
“We fully support the Newman government’s critical boost to the Queensland housing market – it is good news for the entire state because it will increase confidence, generate thousands of construction jobs, and bring home ownership within reach of more young Australians,” says Stockland Queensland general manager Kingsley Andrew.
“An extra $15,000 is a significant saving for first home buyers and coupled with no stamp duty, today’s announcement creates an unprecedented incentive from the Queensland government.”
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Queensland set to follow NSW by scrapping $7,000 first-home owners' grant in favour of $15,000 handout for new home buyers

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Developer Lend Lease has stood down executives at its construction and engineering subsidiary Abigroup after identifying “certain discrepancies and issues in relation to the reporting and recognition of profits and losses on two projects”.
Lend Lease says the discrepancies involve the “potential under-reporting of the anticipated profit on one project and the potential under-reporting of the anticipated loss on another project” and relate to annual results to June 30.
A number of executives responsible for oversight and management of Abigroup have been stood aside while Lend Lease conducts a full investigation.
Responsibility for the operational and financial oversight of its construction business, including Abigroup, has been assumed by David Saxelby (chief operating officer) and Andrew Muller (chief financial officer), who will respectively report to Lend Lease Australia chief executive Mark Menhinnitt and Frank Krile, Lend Lease Australia CFO.
“We take seriously any potential reporting and compliance issues, and are committed to resolving this matter fully and as quickly as possible,” says Lend Lease Group CEO Steve McCann.
The discrepancies are being reviewed by the Lend Lease board and senior management but are not expected to have a net material impact on the group's full-year 2012 financial position or results or its outlook.
Lend Lease says it is conducting “an immediate and thorough investigation of these matters and all the surrounding circumstances in conjunction with the group’s external auditors".
The two projects where reporting discrepancies have been reported are the D2G joint venture in Queensland and the Peninsula Link Project in Victoria.
D2G is a $1.95 billion for the Queensland department of roads to upgrade eight kilometres of the Ipswich Motorway between Dinmore and Goodna, and the$759 million Peninsula Link Project is the construction of a 27 kilometre road link between EastLink at Carrum Downs and the Mornington Peninsula Freeway at Mount Martha with the aim of reducing travel times by up to 40 minutes.
According to Lend Lease, the group's full share of available profits  on the D2G project was not disclosed to senior group management, the board or the external auditors.
As a consequence, the extent of the anticipated profit on that project may not have been adequately recognised within the group's results.
In the case of the Peninsula Link Project, Lend Lease says “certain costs may not have been appropriately accounted for in determining the financial results of that project, and key information was not disclosed to senior group management, the board or the external auditors”.
“As a consequence, the extent of the anticipated loss on that project may not have been adequately recognised within the group's results."
Lend Lease reported an operating profit after tax of $507.2 million for the full year, a 4.5% increase on the prior year and a final distribution of 22¢ per security.
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Abigroup executives stood down as Lend Lease investigates accounting 'discrepancies' on two road projects

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Divergent cash rate forecasts from the major banks are providing new or refinancing borrowers with little guidance in deciding whether to opt for a fixed-rate mortgage and insulate themselves against future rate rises or choose a variable-rate offering and benefit from lower monthly repayments if rates fall.
A third option – splitting the loan into part-fixed and part variable – is also something for borrowers to contemplate.
According to the latest Bloomberg survey of economists, the most bullish of the major banks is Westpac, led by chief economist Bill Evans, which expects another 75 basis points trimmed from the cash rate between now and March 2013 to a record low of 2.75% and then expects the cash rate to remain at that setting over the course of 2013.
“We retain our view that there will be two rate cuts in the December quarter followed by a further cut early in 2013,” said Evans last week following the RBA’s decision to leave the cash rate unchanged at 3.5% on September 4.
Most bearish is NAB, led by chief economists Alan Oster, which does not expect any more cash rate cuts in the current cycle, with the cash rate remaining at 3.5% for the first six months of 2013 and then rising to 4% by year-end.
ANZ, led by chief economist Warren Hogan, expects 50 basis points to be cut over the same period, taking the cash rate to 3%, and Hogan also expects it to remain unchanged over 2013.
“Overall, our views on the Australian policy outlook and economy are largely unchanged. We continue to expect the RBA to end up changing its mind about interest rates, probably by November,” said ANZ economists Ivan Colhoun and Justin Fabo last week.
The Commonwealth Bank, led by chief economist Michael Blythe, expects one more rate cut in the final quarter of 2012 based on downside risks “emanating from Europe and the global economy generally” taking the cash rate to 3.25%, where it is expected to remain over 2013.
The confused picture comes as lenders continue to cut their fixed-rate mortgages in an effort to entice cautious borrowers, with the <a href="/news">Commonwealth Bank the latest to trim its suite of fixed-rate offerings.</a>
In August Mortgage Choice reported <a target="_blank" href="/news">a marked jump in the proportion of borrowers who took out fixed-rate loans to nearly one in five</a> in the month and attributed this to attractive reduced rate offerings and a penchant for borrowers to be conservative in their choice of home loans.
A survey of Sunday Herald Sun financial commentators found them divided over which strategy – fixed or variable – borrowers should adopt, with the majority in favour of a split loan option.
According to Lisa Montgomery, CEO of mortgage lender Resi, while low fixed-rate mortgage offerings can seem attractive, borrowers should be aware of the hidden traps including huge costs if they break the contract – the government ban on exit fees only applies to variable-rate mortgages taken out after July 1, 2011.
Other traps in fixed-rate home loans – besides the obvious one of not benefiting from lower interest rates  should the cash rate fall – include not being able to pay down additional amounts and pay off the mortgage earlier.
But the benefits of a fixed-rate loan, says Montgomery, include peace of mind for budgeting, protection from rate fluctuations and rates now at five-year lows.
Aussie Home loans founder John Symonds, a long-time supporter of variable rates, says currently low fixed-rates would be very tempting to borrowers at the moment.
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Fixed versus variable mortgage conundrum for borrowers as major banks differ on 2013 cash rate outlook

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.

[smartcode_project:default project_id=139989 project_image_fid=359152]

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.

[smartcode_project:default project_id=134800 project_image_fid=351535]

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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