<html><body>
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. 
</body></html>

lschlesinger-FZcF9M3vE6

Institutional investors pressure embattled Mirvac chairman James MacKenzie and board over decision to replace CEO

<html><body>
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.
</body></html>

Brisbane entrepreneur Vaughan Bullivant lists extravagant Scarborough house next door

<html><body>
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.
</body></html>

'Short fuse, big bang' digital change coming to real estate sector: Deloitte

<html><body>
<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.
 
<hr>
 
<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.
 
<hr>
 
<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.
 
<hr>
 
<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.
 
<hr>
 
<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.
 
<hr>
 
<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.
</body></html>

Commercial leasing: Gelato operator Gelatissimo leases in Toowoomba

<html><body>
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.
</body></html>

Logan City estate agent fined $10,000 for rental trust account breaches

<html><body>
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.”
</body></html>

Stephen Koukoulas suggests urgent rate cut needed as mining jobs go: Tweet of the day

<html><body>
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.
</body></html>

Home loan approvals fall 1% in July: ABS

<html><body>
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.”
</body></html>

Queensland set to follow NSW by scrapping $7,000 first-home owners' grant in favour of $15,000 handout for new home buyers

<html><body>
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.
</body></html>

Abigroup executives stood down as Lend Lease investigates accounting 'discrepancies' on two road projects

<html><body>
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.
</body></html>

Fixed versus variable mortgage conundrum for borrowers as major banks differ on 2013 cash rate outlook

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

Joel Robinson

The Eveleigh brings house-like apartments to Broadbeach

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

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

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

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

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

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

Larry Schlesinger

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News