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The Property Council of Australia has called on the government to better explain proposals to reduce property depreciation allowances used by property investors to reduce their tax bills.
A discussion paper prepared by the Treasury’s Business Tax Working Group (BTWG) recommends a minor reduction in the corporate tax rate paid for by eliminating or scaling back interest deductions under thin capitalisation rules and amortisation deductions.
A thinly capitalised entity is one whose assets are funded by a high level of debt and relatively little equity – as would be the case with the portfolios of many property investors.
The Australian Taxation Office (ATO) currently allows property investors to claim a tax deduction for depreciation of their investments- the general wear and tear that occurs over time.
Peter Verwer, chief executive of the Property Council, says the government discussion paper “is short on hard evidence and analysis.”
“The Business Tax Working Group proposal for changes to thin capitalisation needs to be backed up immediately with a proper briefing to industry, as the paper raises more questions than it answers,” he says.
“While the Property Council believes there is value in exploring options for modernising Australia’s business tax framework, it cannot support any changes that force taxpayers to breach existing contracts and covenants or renegotiate financial arrangements.”
The Property Council previously opposed the doubling of the withholding tax from 7.5% to 15% charged on foreign investors who invest into management investment schemes
Verwer says Australia’s capacity to invest in new capital stock has already been weakened by changes to withholding tax rates.
As a result he says it is critical there are no “competitiveness externalities” arising from a trade-off between “rational tax incentives and a lower headline rate of corporate tax”.
Verwer also wants the Treasury’s modelling of the proposed tax changes to be made available to third parties for independent review.
“In addition, far more work needs to be done on proposed changes to depreciation allowances,” Mr Verwer says.
“Building structures wear out in generating income. It is critical that capital allowance deductions directly reflect the economic life of assets.”
“The BTWG discussion paper offers no persuasive arguments that depreciation changes in the UK and NZ have improved the economic competitiveness of those countries.”
“The Property Council is keen to discuss practical options with the Business Tax Working Group.”
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Property Council seeks more details on proposals to scale-back tax depreciation allowances

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Michelle Hutchison, spokesperson for mortgage comparison website RateCity.com.au, warns consumers to be wary of "questionable" mortgage offers:
<a target="_blank" href="https://twitter.com/#!/search/%20%E2%80%8F%40shellRateCity"><img src="/images/stories/2012/08/michelletweet.jpg"></a>
 
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RateCity.com.au’s Michelle Hutchison delivers home loan warning: Tweet of the Day

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The number of NAB mortgages with off-set accounts has almost doubled in the last two years, the bank has revealed as it reported a strong performance from its personal banking division, but an overall disappointing profit result in its third-quarter update.
NAB reported profit in the three months to June 30 of $1.4 billion, unchanged from what it reported for the same period a year ago and below analysts’ expectations of $1.5 billion. NAB currently also has the lowest standard variable mortgage rate of its big four rivals and has pledged to keep it the lowest over 2012.
Money held in an off-set account is deducted from the principal owed, allowing borrowers to reduce their interest payments and the length of their loan repayment period.
Property Observer reported last week that in the 17 months since it kicked off its “break-up” campaign on Valentine’s Day last year, <a href="/news">NAB had steamed ahead </a>of its big four rivals in providing home loans for owner-occupiers based on the APRA figures.
Fairfax Media banking writer Eric Johnston noted that NAB's growth in its mortgage book faster than its rivals had been  “helped by its strategy of discounting loans”, with expansion of its mortgage book is currently running at 1.3 times growth in the broader market. While the overall profit result was disappointing, personal banking, which includes mortgage lending, produced a strong result, “benefiting from good growth in revenue and seasonally lower charges for bad and doubtful debts (B&amp;DDs)".
NAB delivered a stable result for the quarter and made further ground against its strategic agenda to strengthen the Australian franchise, which has been the Group’s unwavering focus since 2009”, National Australia Bank Group chief executive Cameron Clyne said today.
“This quarter’s result is set against a backdrop of ongoing challenges in the global economy with continued uncertainty in the Euro-zone and the United States, volatility in global financial markets, and slowing growth in the big emerging economies. Although subdued business and consumer confidence continue to affect the Australian economy, we remain positive about the outlook," Clyne said.
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Mortgage off-set accounts double at NAB but profits disappoint in third-quarter update

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The receivers and managers of Provident Capital have told debenture holders they are hopeful of restarting the flow of payments in the next few months, but they should not expect a full refund of their investments.
An information session for debenture holders was held by receivers and managers of Provident, PPB Advisory, yesterday in Sydney - telecast to Melbourne, Brisbane, Adelaide and Perth.
It was attended by around 120 mainly small investors in Sydney – many of them pensioners who rely on small interest payments of around $300 per month to supplement their pensions.
They have not received a payment in over two months.
Joint receiver and manager Phil Carter from PPB Advisory told Property Observer loans in the fixed-term interest portfolio have a face value of $108 million while Bendigo Bank also lent $70 million to Provident to fund lending.
Bendigo Bank is the first-ranking creditor and must be repaid its $70 million first before the receivers can start paying money back to debenture holders.
Under current projection, based on the best-case scenario of loans being repaid as they fall due, PBB Advisory would begin to restart payments to debenture holders around Christmas time.
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However, Carter says PPB Advisory will be looking to speed up the process as much as possible to start payments earlier.
PPB Advisory has also delayed taking any fees until such time as debenture holders start receiving payments, while Bendigo Bank has agreed to allowing PPB Advisory to act as "de facto" on itsloan portfolio, thereby avoiding a duplication of receivers' fees.
Carter says when PPB Advisory was appointed on July 3 it found the fixed-term interest account in a “mess”.
The Bendigo Bank portfolio is a lot healthier because Provident loaned under the prudential oversight of the bank, which among other things placed limits on loan sizes (a maximum of $2.5 million).
However, Carter says Provident acted as lender of last resort when it came to using funds from debenture holder funding 42 loans, which have a principal balance outstanding of $108 million.
Of this $108 million, $100 million of loans are in arrears.
“Of the 42 loans funded from the fixed-term interest fund, 19 were already in mortgage in possession when we walked in 3 July,” Carter says.
Seven of the largest loans ($5 million or more) account for nearly 60% of the portfolio, and all are mortgagee-in-possession.
“They are in a variety of states, some are holes in the grounds, some have development applications that have expired,” says Carter.
The biggest loan of $22.4 million is for a Queensland development, for which Provident has been mortgagee-in-possession for four years.
Provident was also mortgagee-in-possession for at least 18 months or more on all the $5 million-plus loans.
Analysis by PPB Advisory suggests properties securing three of the five largest loans in the fixed-term interest porfolio likely to be downgraded further.
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At the information session, PPB Advisory said it would start preparing a monthly dashboard style report on its website to keep individual debenture holders informed of updated information, "including forecast distributions in the next three months, distributions to date, a snapshot of the outstanding portfolio, and other relevant matters".
It expects to hold a further update meeting with debenture holders later this year.
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Provident receivers hopeful of restarting debenture payment by Christmas

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<img src="/images/stories/2012/08/360to380.gif">
The estimated net rent per square metre per year that two tenants will pay for more than 2,000 square metres of office space at the Riverside Quay precinct on Melbourne’s Southbank. The two leases were negotiated by Ben Christie, Colliers International director of office leasing, in Buildings 1 and 2 at Riverside Quay. The whole of level four, Building 2 at Riverside Quay has been leased to global property and project consulting firm WT Partnership Australia. The lessor was Mirvac Asset Management. WT Partnership Australia will occupy 1,360 square metres on a six-year lease. Japara Holdings has signed a six-and-a-half year deal to sub-lease level four (1,026 square metres) in Building 1 at, Riverside Quay. Japara took on the sub-lease opportunity offered by Adecco Australia.
<img src="/images/stories/2012/08/330k.gif">
The net rent per annum that Rip Curl Group parent company RC Waves Pty Ltd is believed to be paying on a new six-year lease over an office and warehouse facility at Keysborough in Melbourne’s south-east in a deal negotiated by Savills Australia. The 134-148 Atlantic Drive property comprises a 3,855-square-metre building including a 479-square-metre office component over two levels, a 100-square-metre mezzanine space, and a 3,276-square-metre warehouse on a 6,750-square-metre site. The deal was brokered by Savills Australia divisional director of industrial Joseph Catanese. The lessor was a private investor.
<img src="/images/stories/2012/08/100kplus.gif">
The estimated gross annual rent that Indian restaurant operator Masala Art will pay to lease new premises in Toowoomba. Masala Art has leased the site of the former Weis Backdoor café in the Clifford Gardens Shopping Centre in a deal negotiated by Ray White Commercial Toowoomba’s Mark Wynhoven and John Smith. Masala Art has subleased the site, taking up the remaining four years of the Weis lease. The shop measures 120 square metres.
<img src="/images/stories/2012/08/110.gif">
The estimated annual rent that church group the Harvest Centre will pay to lease a Burleigh Heads industrial property on the Gold Coast. The property at 1/62 Township Drive has existing approval to be used as a church and was recently vacated by a church group.  The new lease deal was negotiated by Craig George of Colliers International.  The Harvest Centre has taken on a three-year lease with renewal options. It will occupy the 343-square-metre building, which consists of a 280-square-metre fully carpeted warehouse and 63 square metres of mezzanine office. The property is owned by Dawnlite Nominees at Township Drive and is one of two units in the complex and is situated alongside the M1.
<img src="/images/stories/2012/08/295650.gif">
The gross face rent per annum that Precision Mail will pay to lease 5,913 square metres of industrial space at 223-225 Barry Road, Campbellfield, in Melbourne’s outer north. The five-year lease was negotiated by Tim Homes and Marco Sandrin from Colliers International. The property is part of the investment portfolio of 360 Capital Property Group. The office-warehouse property is located just off the Hume Highway within close proximity to the Metropolitan and Western Ring Roads.
<img src="/images/stories/2012/08/75k.gif">
Roughly how much truck repair firm Bronco Truck Repairs will pay to lease an office/warehouse facility at Laverton North in Melbourne’s western industrial precinct in a deal  negotiated by Savills Australia. The property at 41B Little Boundary Rd comprises a 400-square-metre office/warehouse facility on a 2,600-square-metre site. The three-year deal was negotiated by Savills industrial executive Luke Jesson. The property is situated on the corner of Leslie Road, offering immediate access to the Western Ring Road and West Gate Freeway.
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Commercial leasing: Indian restaurant operator Masala Art leasing premises in Toowoomba

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Self-managed super funds and smaller commercial investors punting on a recovery in the Noosa property market could have an opportunity, with a number of shops on the Noosa retail strip listed for sale around the $2 million mark and under in a market that has been dormant for the past two years.
Currently tenanted, the retail properties are offering yields of around 7% and 8% with the potential for capital gains should the market start improving.
The heavily tourism-dependent Sunshine Coast and Gold Coast markets have struggled in the last few years, having not received the flow-on benefits of the mining boom and have been hurt by the high Australian dollar.
However, Paul Butler, director of Ray White Commercial Noosa, says he is seeing an increase in confidence from buyers for properties with good lease covenants.
“Super funds are becoming particularly active as buyers look for stable returns outside of the stock market,” Butler tells Property Observer.
“Retail leasing is gaining some momentum again after a prolonged period of limited activity,” he adds.
Butler says food outlets and coffee shops have been the strong achievers in the current market.
Last month, Colliers International agents Nick Dowling and Brad Moore marketed 27/40 Hastings Street, with 65 square metres of retail space with an additional exclusive-use outdoor area of 51 square metres, currently occupied by fashion store Venetian Laundry. RP Data records show it sold for $1.57 million.
Dowling says that while there are a number of assets on the market in Hastings Street at present, retail sales activity on the strip had been non-existent for at least the past two years.
“Hastings Street is the epicentre of the world renowned Noosa Heads and comprises a mix-use environment primarily made up of three-storey resorts with ground floor retail tenancies,” he says.
Other recent sales on Hastings Street include a mixed-use development at 11 Hastings Street measuring 949 square metres, incorporating La Vida restaurant on the ground floor and guest accommodation and office spaces on the second floor, which sold for $10.8 million in July. Office space from 66 square metres to 167 square metres is available for lease at 11 Hastings Street at $450 per square metre.
Further down Hastings Street at number 18, a medical suite measuring 58 square metres changed hands for $370,000. It las sold for $561,000 in January 2005.
 
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In April last year a 50-square-metre shop at 14 Sunshine Beach Road at Noosa Heads sold for $270,000 on a yield of around 8%.
On the high-end shopping strip of Hastings Street at Noosa Heads shop five in the French Quarter mixed-used precinct at 62 Hastings Street (pictured below) is up for sale by private treaty with an asking price of $1.65 million.
<img src="/images/stories/2012/08/hastingsshop.jpg">
The shop generates rental income of around $115,900 per annum – a yield of around 7%.
It is currently tenanted by retailer Poeta – incorporating the businesses of Gordon Herford master jeweller and the artistic works of Belinda Herford – on a new five-year lease until 2016.
Other retailers in the “The French Quarter” include Quicksilver Surfwear and Tom Offermann Real Estate.
The property is being sold by Tracey Ryan and Paul Forrest from Ray White Commercial Noosa.
A cheaper investment with exposure to Noosa shoppers is three-level strata building on Thomas Street in Noosaville (pictured below), including the premises of take-away joint Burger Bar, which is listed for sale with a price tag of $775,000.
<img src="/images/stories/2012/08/hastingsshop2.jpg">
The two-storey unit is situated within the “The Islander Resort” a low-rise holiday unit complex comprising 51 residential apartments and 15 retail shops with two street frontages to Gympie Terrace and Thomas Street at Noosaville.
According to the investor memorandum, Thomas Street is regarded as one of the prime “eat streets” locations in Noosaville and services the surrounding residential and tourist resorts.
The shop measures 39 square metres, with the property currently bringing in gross income of around $55,000, translating into a yield of around 7%.
Above the shop is a two-level, two-bedroom apartment.
The owner has the opportunity to receive dual incomes form both the residential and commercial aspects of the property.
The shop is up for sale by private treaty and is being sold by David Brinkley, a commercial property consultant  from Ray White Commercial Noosa.
Also in Noosaville, Paul Butler and Paul Forrest from Ray Commercial Noosa are selling a 340-square-metre first-floor medical/ professional suite with lift access on Gibson Road by private treaty (pictured below).
<img src="/images/stories/2012/08/hastingsshop3.jpg">
The property adjoins 24-hour gym Jetts Fitness and has an asking price of $1.16 million.
It is currently tenanted until April 2013 with a five-year renewal option returning rent of $93,500 per annum and representing a net yield of around 8%.
According to the investment report, the strata office is in an area that “has in the past experienced strong capital growth”.
The strata office is opposite the Noosa Village Shopping Centre and within the Gibson Road retail precinct, which is home to Harvey Norman and various homeware and electrical retailers.
Other retail assets for sale nearby include a bar/bistro and three shops on one title include this property on Duke Street, with strong leasing already in place.
<img src="/images/stories/2012/08/noosashop.jpg" width="470">
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Opportunities for smaller investors with Noosa shops and suites from $800,000 to $2 million

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A record 35% of all housing loans written in the last financial year – the 12 months since Treasurer Wayne Swan introduced the ban on mortgage exit fees – were for borrowers refinancing their existing mortgages, rather than buying or building new property, according to ABS housing finance data going back to 1975.
The figures also show that over this period the value of refinanced home loans rose 17% and accounted for all growth in mortgage lending over the 12 months period.
The exit fee ban, which was introduced on July 1 last year and applies to variable interest home loans taken up from this date, has made it easier for borrowers to switch lenders without copping mortgage exit fees in some cases as high as $7,000.
A spokesman for the Swan’s office told The Age's Tim Colebatch, who crunched the data, that the figures indicated there was now increased competition in the banking sector, with people “taking advantage of our ban on mortgage exit fees”.
''This has put more power in the hands of Australian families; they can walk down the street to another lender if their current bank isn't looking after them.''
In contrast to the rise in refinancing, loans to buy established properties fell by almost $1 billion, while loans for new construction were up just $24 million compared with the previous 12-month period.
While APRA figures show that the major banks are still the dominant force in mortgage lending, with 86% of the market over the past year, their market share has contracted, with smaller Australian banks and wholesale lenders increasing their share.
Four years ago the major banks had 75% of the market but dramatically increased their share, with the Commonwealth Bank taking over Bankwest and Westpac buying St George.
July figures compiled by mortgage aggregator AFG, which writes one in 10 home loans in Australia, show that 37% of loans arranged by its brokers were refinanced mortgages, with a sharp rise in loans refinanced through non-major bank lenders from 22.9% to 26.7% of all loans – the highest proportion in seven months.
Over July major banks’ market share of refinanced mortgages arranged by AFG brokers fell from 77.1% to 73.3%
The major banks overall share of total loans arranged by AFG has fallen from 82% to 77.6% over the past 12 months to July.
{module What do you intend to do given the current interest rate fluctuations?}
{module Have you changed lenders in the last six years?}
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Refinancing reaches record level in year since exit fees ban: ABS

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Mortgage broker Loan Market has recorded a six-percentage-point (0r 19%) fall in enquiries from first-home buyers in July compared with June.
This decline may confirm what some market commentators have suggested: that the ending of generous first-home buyer schemes in four states and territories artificially pulled forward demand and could result in a  decline in first-home buyer numbers in the months that follow.
Official ABS figures show that first-home buyers accounted for 18.3% of total owner-occupier housing finance commitments in June, the highest level in five months and up from 17.8% in May.
First-home buyers made up 29% of Loan Market enquiries in July – down from 35% in June, a 19% drop.
The drop in first-home buyer inquiries was replaced by interest from upgraders, with Loan Market recording a 13% increase in mortgage inquiries from those looking to move up the property ladder.
Owner-occupier property purchasers or upgraders in July accounted for 50% of Loan Market’s total enquiries nationwide, compared with 44% in June.
Investors accounted for 8% of enquiries, followed by refinancers on 6% and business loan enquiries on 3%.
Victoria, South Australia and the ACT all ended first-home buyer incentive schemes at the end of June, while NSW first-home-buyers must wait until October 1 for a more generous first-home buyers scheme to kick-in.
NSW first-home buyer activity could pick up again from October 1 – but only in new or off-the-plan purchases, with a <a target="_blank" href="https://www.propertyobserver.com.au/developments/incentives-on-offer-as-waterloo-developers-battle-government-timelines-to-entice-buyers/2012080955910">number of  NSW developers trying to encourage more first-home buyers with incentives of their own.</a>
“It’s no surprise that this drop off in first home buyer activity has coincided with a number of incentive schemes for this segment of the market being wound up by some state and territory governments at the end of the 2011-12 financial year,” says Loan Market spokesperson Paul Smith.
 “But although we have seen a modest drop off in enquiries from first-time buyers, there has been an increase in people looking to upgrade in the current market.
“This is no doubt a reaction to the RBA lowering official interest rates in May and June this year to bring the cash rate down to 3.5%.”
Despite the ending of the state and territory incentives, Smith says the federal government’s $7,000 first-home buyers’ grant, which has been in place for more than a decade, continues to be offered nationwide.
It ends in NSW on October 1, replaced with the first-home owner grant (new home) scheme – only available to first-home buyers purchasing a new home.
Smith says the Queensland government’s decision to reinstate its transfer duty home concession scheme from July 1 also helped attract more upgraders.
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'No surprise' as first-home buyer enquiries down 19% in July: Loan Market

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Auctioneer Damien Cooley had a busy and very successful weekend.
He achieved a 100% clearance rate on 10 auctions on Saturday.
<a href="https://twitter.com/damiencooley" target="_blank"><img src="/images/stories/2012/08/cooleytweets.jpg"></a>
On Sunday, he completed the Sydney City to Surf  in just over an hour
Cooley’s next big challenge will be the <a href="https://www.propertyobserver.com.au/auctions/southern-highlands-burrawang-cafe-reverse-auction-not-the-first-but-still-stirring-up-debate/2012072055673" target="_parent">reverse auction of the historic Burrawang Cafe and Bower Cottage in the Southern Highlands on August 26</a>.
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Tweet of the weekend: Sydney auctioneer Damien Cooley has a run of good fortune

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The decision by the RBA to start reducing interest rates in November last year has added “ballast” to a housing market that was “starting to list quite badly”, according to Westpac senior economist Matthew Hassan.
Writing in Westpac’s August Market Insights report, Hassan points to a number of signs that “after a shaky start, Australia’s housing markets are now showing more convincing signs of stabilising”.
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He says the 125-basis-point cut from the cash rate since November last year has eased the pressure on those servicing existing mortgages, while affordability is near decade-best levels for prospective buyers.
“With rates now on the ‘easy’ side of neutral, the pressure is easing on the mortgage belt – mortgage arrears appear to have peaked and, on the basis of interest rates and incomes at least, should start to track lower from here.
“Housing affordability is also greatly improved with would-be buyers enjoying the most conducive mix of prices, interest rates and incomes since 2003 (excluding the ‘ultra-low’ rate settings in 2009),” says Hassan.
Consumer attitudes are also changing, with Hassan pointing to the results of the Westpac-Melbourne Institute Consumer Sentiment survey “showing consumers starting to warm to real estate again”, setting the scene for a housing market recovery.
“Views on whether now is a good time to buy a dwelling (a sub-index of the Westpac-Melbourne Institute Consumer Sentiment survey) are now at relatively upbeat levels that have led upturns in the past.
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“Fears of house price declines are also subsiding with a notable uptick in the proportion nominating ‘real estate’ as the wisest place for savings, a tentative sign of renewed investor interest," he says.
“Sentiment is an important catalyst for generating a sustained upturn.”
However, Hassan warns of “significant headwinds to a housing recovery in Australia”.
He says the most powerful headwind to a housing recovery is household deleveraging.
“Despite five years of restraint, household debt levels remain near historic highs. Housing upturns usually go hand in hand with rising household leverage.
“This does not preclude a recovery – the rebound in 2009-10 showed housing can still have an up-cycle – but it does mean any recovery that does eventuate will be harder to sustain.
Hassan expects that when the market recovers, "trend price growth" will be below 5% per annum.
He also warns that while sentiment is positive on housing, “sentiment remains much weaker on other aspects crucial to the home buying decision: job loss fears remain very high and consumers’ financial attitudes are still firmly fixed on conservative/defensive risk-averse and debt-averse behaviour”.
“With labour markets and the global financial system likely to remain unsettled in 2012, these factors will continue to deter many potential buyers – both owner-occupiers and investors,” he adds.
As a result, Hassan expects the current housing cycle to show a “much bumpier, more gradual transition from stabilisation to a recovery that is likely to be relatively lacklustre by historical standards”.
But the overall picture is of markets “clearly stabilising” with all price measures recording a moderation in declines with most up slightly for the year to date, says Hassan.
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Other positive indicators, he says are:
<ul>
<li> “Annual price inflation across ‘all dwelling’ measures ranges from –2.7% to –1.1% with annualised six month growth rates of between –1.2% and +1.9%. </li>
</ul>
<ul>
<li>“Auction markets are telling a similar story with clearance rates up about 7 percentage points from their February lows. </li>
</ul>
<ul>
<li>“Housing loan approvals have also moved off recent lows for both owner-occupiers and investors and dwelling approvals have snapped out of what was looking like a disturbing drop-off between August and April.</li>
</ul>
Hassan notes that some of these readings may be being skewed by state government policy changes.
“The NSW, Victoria, Queensland and South Australia state governments all made significant changes to bonus and concession schemes for first home buyers and/or those building new dwellings.
“Several of these were introduced around June/July and would have encouraged buyers and builders to bring forward activity into the first half of the year.
“As such recent finance and dwelling approvals may be overstating strength a little and price measures may also have been impacted (skewed lower during ‘pull forward’ periods with a statistical ‘bounce’ as this effect drops out)."
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RBA cash rate cuts provide “ballast” to "badly listing" housing market: Westpac’s Matthew Hassan

<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.

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[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.

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[smartcode_project:default project_id=149670 project_image_fid=360981]

Three genuine bedrooms provide room to accommodate family and guests, while two secure car spaces and storage address some of the practical considerations that can become more noticeable when moving from a larger home. Feedback from the display suite has centred on the warmth and restraint of the interiors, with buyers commenting that the residences feel like homes rather than conventional coastal apartments.

A limited collection of half-floor penthouses occupies the upper levels, increasing the scale of the living spaces and adding private balconies and elevated finishes. From this position, the outlook extends between the ocean and hinterland.

Outside the private residences, The Eveleigh separates its shared spaces between the podium and rooftop. The podium is centred on wellness, with subtropical landscaping surrounding a swimming pool and pool terrace, yoga garden, private gymnasium, sauna and hot and cold plunge facilities. Landscaped retreats and pavilions provide additional places to sit away from the main recreation areas.

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[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.

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[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.

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Joel Robinson

The Eveleigh brings house-like apartments to Broadbeach

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

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

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

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

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

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Castle Hill, the longtime hub of the Hills District, has been one of the major beneficiaries of Sydney's Metro expansion, with improved connectivity helping drive continued population growth, development and buyer demand across the Hills District.

But despite that growth, the suburb has seen relatively few major new apartment projects brought to market over the past 18 months.

Hills District developer Reve Group is looking to fill that gap with <a href="https://www.apartments.com.au/new-apartments/nova-r-ve-castle-hill-2-garthowen-crescent-castle-hill-nsw-2154">Nova Rêve</a>, a major new mixed-use precinct on the corner of Garthowen Crescent and Old Castle Hill Road, a short walk from Castle Hill Metro Station and Castle Towers.

[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.

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Larry Schlesinger

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