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Australia dropped from third to fourth most popular commercial property investment destination in the second quarter of 2012, according to the latest Asia Pacific Capital Markets report from CBRE.
Investors snapped up close to $2.5 billion in Australian commercial assets, slightly higher than the first quarter of the year, but offshore investor sentiment dampened due to concerns over the doubling of the withholding tax from 7.5% to 15%.
The tax rate – charged on returns paid to overseas investors of managed investment trusts, many of which hold commercial property assets – increased from 7.5% to 15% on July 1.
Trusts that exclusively hold property built after July 1, 2012 and that meet high energy rating standards (five-star green star or 5.5 star NABERS) are taxed at 10%.
According to CBRE, China was the top investment destination in the Asia-Pacific region in the second quarter of 2012, attracting $4.5 billion of the $17.9 billion in commercial property assets snapped up by investors (both local and offshore) over the quarter – a 54% increase on the first quarter for the Asia-Pacific region.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/08/cbreaug131.gif"><img src="/images/stories/2012/08/cbreaug131thumb.gif"></a>
According to the report, authored by CBRE’s head of Asia-Pacific research director Nick Axford, investor sentiment towards Australian commercial property deteriorated in the June quarter as offshore investors were forced to take into account the higher tax rate in their pricing to achieve the same returns.
But he expects the market to be more active in the second half of the year “given the volume of foreign money on the sidelines”.
Axford says most foreign groups are still attracted to the Australian markets given the high yields that are still available.
The report shows that Australia’s prime office markets have higher office yields relative to other parts of Asia-Pacific.
Sydney’s prime office yield is 6.43%, with Melbourne offering a return of 6.85%, Brisbane 7.56% and Perth 7.88%. This compares with smaller returns in Beijing (4.75%), Shanghai (4.25%), Tokyo (3.5%), Singapore (3.92%) and Hong Kong (2.5%).
Sydney, Melbourne, Perth and Brisbane are all offering retail yields in excess of 8%, compared to 4.6% in Hong Kong, 7.2% in Shanghai, 5.5% in Tokyo and 4.8% in Singapore.
For the year to June, Australia has been the third most popular commercial property investment destination, behind Japan and China, but ahead of Hong Kong and Singapore.
Australia has also been the most popular destination for investor outside of the Asia-Pacific region with the chart below showing that local investors were the biggest buyers of commercial property in all major investment markets.
CBRE’s figures taken into account office, retail, industrial and mixed-use property priced at US$10 billion and above.
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<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/08/cbreaug132.gif"><img src="/images/stories/2012/08/cbreaug132thumb.gif"></a>
CBRE says the 54% regional increase was underpinned by a rebound in cross-border investment activity as well as due to a rise in transactions worth US$250 million and above, most of which had been under prolonged negotiation.
“Sentiment in Asia-Pacific was mixed in the second quarter, with many investors mindful of the eurozone debt crisis, however private investors remained in buying mode and there was a significant increase in cross border investment activity,” says Axford.
“Western property funds were particularly active and Asia Pacific investors continued to be net buyers in the cross-border arena.”
The CBRE data shows that investment activity picked up in most markets, with the largest increases recorded in China, Taiwan, Singapore and New Zealand.
“Barring any dramatic negative developments in the United States and eurozone, we expect real estate investment activity to remain steady in the second half of 2012,” Axford says.
“Domestic investors will continue to dominate in their home markets although overseas core investors are likely to step up their activity, with Australia and Japan being the major focus.
“That being said, the availability of prime assets will remain tight across the region and investors are expected to take longer to reach decisions given the sizable gap in price expectations between buyers and sellers.”
The CBRE report highlights that office property remained the subject of strong interest in the second quarter, particularly in Australia and Japan, and comprised 47% of total investment turnover.
“The past 12 months has seen a rise in investment demand for retail assets in China and Hong Kong, whilst the high yields currently available in the industrial sector continue to attract investors.”
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Higher commercial yields to encourage offshore investment in Australia in second half of year despite withholding tax fears: CBRE

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Prudential regulator APRA has written to lenders warning them they must accurately report overdue loans to borrowers who have been granted hardship concessions.
The regulator is concerned that lenders have been relaxing their reporting standards in relation to these loans, which can paint a distorted picture of the performance of a lender's loan book.
APRA executive general managers Keith Chapman and Brandon Khoo wrote to banks on August 8 saying there had been instances where lenders were “re-ageing arrears on loans granted such concessions in order to prevent the triggering of collections processes”.
Re-aging refers a to a lender increasing the term of a loan agreement when the borrower has missed one or more payments and changes the account from “delinquent" to “current”.
If a significant number of loans are re-aged, it can make a lender’s loan portfolio appear of higher quality than it actually is.
The letter, seen by the Australian Financial Review, adds that while this practice may be “reasonable from an operational perspective, it can obscure prudent internal and regulatory reporting of past-due and impaired loans”.
The strict approach adopted by APRA comes as banks are required to hold higher reserves of cash under global banking rules, which conflict with consumer rules designed to help borrowers who fall into arrears due loss of a job, illness or other hardship.
In Australia, banks can accommodate these hardships by reducing the interest rate, providing a “holiday” from loan repayments, lengthening the loan maturity, or offering full or partial deferral of interest for a temporary period.
APRA rules require that lenders have a full understanding of its the risk profile of the loans that are re-aged, with the risks appropriately reflected in internal management reporting, provisioning and capital adequacy calculations.
A loan is considered “past due” when at least 90 calendar days have elapsed since the due date of the last required payment.
“These loans may be restored to performing status for APRA reporting purposes once sufficient payments have been made such that the amount owed is less than 90 days’ worth of payments; and past-due loans that are not well secured must be reported as impaired,” APRA said in its letter to lenders.
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Lenders must more accurately report mortgage delinquency data: APRA

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ANZ forecasts mining projects to peak at around $37 billion in 2014 in its August Major Projects report.
Mining sector investment
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<a href="/images/stories/2012/08/anzaug131.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/08/anzaug131thumb.gif"></a>
Source: ANZ
Overall the bank expects infrastructure project investment to peak earlier in 2013 under revised projections, but to a higher peak.
"This largely reflects improved estimates of the timing of expected capital expenditure across years for the major LNG [liquefied natural gas] and coal projects," says ANZ.
Click to enlarge
<a href="/images/stories/2012/08/anzaug132.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/08/anzaug132thumb.gif"></a>
Source: ANZ
ANZ says the majority of infrastructure investment will be concentrated in the mining and energy sectors, with the investment pipeline across these two sectors totalling $380 billion between 2012 and 2016.
Given the concentration of investment in the mining and resource sectors and related infrastructure (i.e. ports,railways and harbours), the resource-rich states of Western Australia, Queensland and Northern Territory will receive the lion’s share – around 75%, or $450 billion – of the total investment expected over this time frame.
Click to enlarge
<a href="/images/stories/2012/08/anzaug133.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/08/anzaug133thumb.gif"></a>
Source: ANZ
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Australian mining project investment to peak in 2014: ANZ

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ANZ has left its standard variable mortgage rate unchanged today at 6.8% following its monthly independent interest rate review.
The decision follows the Reserve Bank leaving the cash rate unchanged on Tuesday at 3.5% at its August monetary policy meeting.
ANZ has also left small business lending rates unchanged.
The RBA's monetary policy statement indicated the central bank was comfortable with its current cash rate setting as it upgraded GDP forecasts for 2012 to 3.5% and also noted recent improvements in the housing market.
ANZ’s head of Australian economics and property research Ivan Colhoun said RBA communications week (the August 7 cash rate statement and Friday's monetary policy statement) indicated the central bank is “quite comfortable at present with the pace of growth in the domestic economy, while noting that the global outlook is subdued”.
 
“We continue to expect that the RBA will eventually come to the view that the economy can grow a little more quickly, given that employment growth is likely to remain below-trend and inflation well behaved.
“We currently have 25 basis points rate cuts pencilled in for October and November but the tone of recent RBA communications suggests that the risk to this call is that the RBA doesn’t reduce the cash rate as early as we currently expect.”
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ANZ leaves mortgage rates unchanged at August monthly independent meeting

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The housing market is becoming more attractive to property investors, says the RBA in its August monetary policy statement.
The central bank includes this chart (below) showing that national residential vacancy rates have fallen below 2% while rents are trending up above 2%.
<img src="/images/stories/2012/08/rbaaug10.gif">
“Falls in mortgage interest rates and higher rental yields have increased the attractiveness of new housing investment, although falls in dwelling prices appear to have been weighing on demand for new housing,” notes the RBA.
The RBA also notes the recent improvements in dwelling prices in Sydney and Melbourne in this chart (below):
<img src="/images/stories/2012/08/rbaaug102.gif">
But it also says that changes to state government housing initiatives are likely to have a “mixed effect on national demand for new housing in coming quarters” due to initiatives such as the first-home bonus scheme in Victoria having recently expired and other new policies taking effect, including the first-home owner grant (new homes) scheme in New South Wales, which will increase the allowance to first-home buyers from $7,000 to $15,000, but only for new homes.
It includes another chart showing how the different data providers it follows (ABS, RP-Data-Rismark and Australian Property Monitors) have reported on recent changes in the housing market.
While the results are divergent, the chart shows that all three providers recorded better results in the three months to June than in the three months to March.
<img src="/images/stories/2012/08/rbaaug104.gif">
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Rising rents and lower vacancy rates encouraging property investment: RBA charts

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The Reserve Bank has backed up its August 7 cash rate statement that the housing market is showing signs of firming with expectations that residential construction activity could pick up in the second half of the year.
“There are tentative signs that housing market conditions and residential building activity may be starting to improve,” says the RBA in its August statement on monetary policy.
“Dwelling prices have increased modestly in recent months in most capital cities, but remain down a little over the year.
“Demand for housing finance is broadly unchanged from a year ago.
“With building approvals rising from low levels in recent months, there are signs that residential activity may start to pick up some time in the second half of 2012; lower interest rates, rising rental yields and population growth are likely to provide support for new housing construction," says the RBA.
In the RBA’s August 7 monetary policy decision statement put out after it announced that the cash rate would remain unchanged at 3.5%, the central bank said that while it was too soon to see the full impact of interest rate changes, "dwelling prices have firmed a little over the past couple of months, and business credit has over the past six months recorded its strongest growth for several years.”
The RBA also provided an economic update in today's August monetary policy statement, saying the  outlook for the Australian economy is largely unchanged from the May statement, though it has boosted the outlook for GDP growth over 2012 to 3.5%.
"Real GDP growth is forecast to slow somewhat over the second half of 2012 as the strong growth of domestic demand in the first half of the year moderates. While the forecast for growth in the second half of 2012 is similar to that in the May Statement, the stronger than-expected growth in the first half of 2012 has boosted the forecast for GDP growth over 2012 to 3.5%.
"The economy is then expected to grow at around 3% over 2013 and 2014," says the RBA.
It added that while an "adverse shock to global demand would be expected to reduce commodity prices, and hence Australia’s terms of trade, by more than is currently forecast" the country remains "relatively well placed to respond to such shocks given the scope to adjust macroeconomic policies and a robust financial system; movements in the exchange rate would also be expected to play an important role in adjusting to such shocks".
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New home building could pick up in second half of 2012: RBA 

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Legendary Melbourne CBD watering hole the English-style Mitre Tavern failed to sell at auction today despite a large crowd gathering outside on Bank Place in the damp and cold.

The mediaeval-looking tavern was passed in at $6.05 million with just three bids received, including one from the vendor for $6 million.
Bidding started at $4 million – or four pints, as the bidder called out initially.
The auction was conducted by David Combes, managing director of Alexander Robertson, which also had the listing.
It was listed with $6.5 million-plus hopes.
<img src="/images/stories/2012/08/mitreauc.jpg">
Most who attended appeared to be interested observers, intent on enjoying a pint after the swiftly concluded auction, plus a few industry players
Kristian Peatling who alongside colleague Warwick Bramich from Alexander Robertson marketed the tavern, told Property Observer he was confident of negotiating a sale post-auction.
The pub, which has claims to hold one of the oldest continuous pub licences, granted in 1868 when a two-storey private dwelling was converted to a drinking house, was listed for auction with $6.5 million-plus hopes.
<img src="/images/stories/2012/08/mitreauc2.jpg">
The pub has current net annual income is $430,000 plus GST with a long-term lease with three renewal options of 10 years each.
Set on Bank Place between Collins and Little Collins streets, it last traded at $6.3 million in 2008 when bought by the Toorak investor Ian Hicks from the hotelier Robertson family. There was a $4.6 million transfer in 2006 and a $5.75 million transfer in 2004.
The two-storey pub has 480 square metres of retail space as well as one of the city's largest outdoor beer spaces.
 
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Pints on offer but few punters as Melbourne watering hole the Mitre Tavern passed in at $6.05 million

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Property investors have patience and hold off buying in a brand-new apartment project until the last few units are listed for sale at discounted prices, according to Residex’s John Edwards.
Edwards says developers will often discount the last few units that they are struggling to sell and investors can secure discounts of tens of thousands of dollars.
He made these observations in an interview with Peter Switzer on Switzer's Sky Business investment program this week.
Edwards says the unit market is the one being targeted by investors but is also the one most likely to “correct” should the economy turn downwards.
Asked by Switzer if he would advise his family members to invest in a brand new apartment, Edwards was adamant.
“I would not be steering them into a brand-new unit.
“Have you ever tried to negotiate a price with a developer?… It’s almost impossible.”
But, he says “colossal discounts” are possible if you hold off and approach a developer when the project is almost finished.
Edwards says he's aware of savings as much as $70,000 discounts by waiting.
According to Edwards, the Australian unit investor market was being driven by miners.
“Now that’s a bit of a risk because the miners  have a greater tendency to overpay as they have a higher income then the others.”
This means anyone bidding against them at auction could end up paying too much.
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While miners rush, savvy investors show patience when buying new apartments: Residex’s John Edwards

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Yellow Brick Road's Mark Bouris looking suave in a smoking jacket holding a martini glass.
<img style="margin: 5px; float: left;" src="/images/stories/2012/08/toonbouris.jpg" width="100">
A terrified RP Data’s Tim Lawless in roller coaster heading down the property market curve.
<img style="margin: 5px; float: right;" src="/images/stories/2012/08/toonlawless.jpg" width="100">
Westpac strategist and housing bubble denier Rory Robertson sweating inside a bubble floating above a sharpened nail.
<img style="margin: 5px; float: left;" src="/images/stories/2012/08/toonrobertson.jpg" width="100">
Rismark’s Christopher Joye as Rodin’s The Thinker.
<img style="margin: 5px; float: right;" src="/images/stories/2012/08/toonjoye.jpg" width="100">
Big four bank economists Westpac’s Bill Evans, NAB’s Alan Oster, Commonwealth Bank’s Michael Blythe and ANZ’s Warren Hogan atop four Roman pillars.
 
John McGrath as the king with a crown, coat and sceptre.
<img style="margin: 5px; float: left;" src="/images/stories/2012/08/toonmcgrath.jpg" width="100">
These are just some of the 25 “star” home loan and property market gurus selected and depicted in cleverly observed cartoon format by mortgage comparison website homeloanfinder.com.au.
Homeloanfinder.com.au is part of the finder.com.au group of financial comparison websites, which operate under umbrella company Hive Empire, set up by entrepeneurs and business partners Frank Restuccia and Fred Schebesta in 2006.
<img style="margin: 5px; float: right;" src="/images/stories/2012/08/toonpillars.jpg" width="100">
Schebesta tells Property Observer the cartoons were selected and produced in-house.
“We initially brainstormed the categories of where we saw the majority of value and commentary happening in the home loan and property market.
“After picking the categories, it was much easier to isolate our research and identify some key commentators within each category. “After a huge amount of research, we chose to restrict our list to the commentators featured in the article but are wanting to expand the list down the track. There is so much amazing work being produced each day here in Australia, and we'd love to put in an effort to highlight more amazing property commentators.”
 
<hr class="system-pagebreak">
 <a href="https://homeloanfinder.com.au/">HomeLoanFinder.com.au</a> was setup in March, 2010 following the success of another comparison website in the group, <a href="https://creditcardfinder.com.au/">CreditCardFinder.com.au</a>.
 
Schebesta says what sets HomeLoanFinder.com.au apart from other comparison websites is that comparisons are “contextual and supported with guides”.
In all 25 people are depicted, with caricaturea that cleverly play on the gurus' characteristics, achievements and reputations accompanied by details of their and former roles and some tongue-in-cheek insights into their successes and what has made them who they are.
Each profile includes links to the guru's Twitter feed and blog so property buyers and investors can follow their observations.
As all but a handful are regulars on Property Observer, we've tip-toed around pointing out one or two inaccuracies in their depictions.
Property market bear and University of Western Sydney’s  professor Steve Keen is depicted as lonely jogger in the desert running towards a chart showing rising prices with a note on the back of his shirt with the words: “I was wrong about housing prices” in reference to his prediction that housing prices would fall by as much as 40%.
<img src="/images/stories/2012/08/toonkeen.jpg" width="470">
However, homeloanfinder.com.au does say that Keen is a good one to keep an eye on for advanced predictions about housing prices and he has some interesting views about the nature of economy and debt.
Aussie Home Loans founder John Symond, famous for his “We’ll save you” mantra and for taking on the banks, is depicted grabbing out for a battler dangling over a fiery lava pit with four ghouls (the big four banks) reaching out for him.
<img src="/images/stories/2012/08/toonsymond.jpg" width="470">
Weekly Property Observer commentators Michael Yardney and Catherine Cashmore are also included in cartoon format, the former as a school teacher and the latter – a play on her name - surrounded by money.
<img src="/images/stories/2012/08/toonyardney.jpg" width="470">
<img src="/images/stories/2012/08/tooncashmore.jpg" width="470">
<a href="https://www.homeloanfinder.com.au/australian-property-market/star-commentators-of-the-home-loan-and-housing-industry" target="_blank">You can view all 25 cartoon depictions here.</a>
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From Mark Bouris to John Symond: Property market gurus glorified in website marketing gimmick

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More than 150 submissions have been received as part of a Senate inquiry into changes in bank lending practices since the GFC and the relationship between banks, receivers and valuers.
The inquiry is being led by Nationals Senator John Williams, who <a target="_blank" href="https://www.propertyobserver.com.au/news/bankwest-class-action-gathers-steam-as-120-business-owners-and-property-developers-sign-on/2012041154216">raised the alarm at reports that banks were pulling loans to small business clients, including farmers, leading to assets being sold at rock-bottom levels.</a>
Its purpose is to examine recent developments in the banking sector arising out of the impact of the GFC and subsequent events, including “the impact on borrowing and lending practices in the banking sector both during and since the global financial crisis”.
Many of the personal submissions relate to the conduct of Bankwest following its acquisition by the Commonwealth Bank in December 2008.
Law firm Slater &amp; Gordon in conjunction with litigation funder IMF Australia is currently conducting due diligence with respect to a potential class action for aggrieved borrowers/mortgagors against BankWest and the Commonwealth Bank, with more than 120 businesses having signed up.
“As part of its purchase arrangements for Bankwest, CBA extracted from the seller a warranty which enabled CBA to claw back part of the purchase price depending upon whether the assets of Bankwest had been accurately disclosed to CBA in the accounts of Bankwest. Little is known about that warranty,” says Slater &amp; Gordon.
The Commonwealth Bank acquired Bankwest in late 2008 for the bargain price of $2.1 billion following the near collapse of UK parent HBOS.
The committee will issue its report and recommendations at the end of October.
Property Observer has five telling charts that have been included in submissions:
Abacus, which represents building societies and credit unions, presented this chart to show the dominant positions of CBA and Westpac reflecting their respective acquisitions of Bankwest and St George. 
Click to enlarge
<a href="/images/stories/2012/08/abacus.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/08/abacusthumb.gif"></a>
Source: Abacus
The Commonwealth Bank includes this chart which its ays shows that while Australia’s banking system ranks well by international standards for profitability, it falls far short of the top performing international systems
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<a href="/images/stories/2012/08/cbaaug9.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/08/cbaaug9thumb.gif"></a>
The Mortgage and Finance Association of Australia (MFAA), which principally represents mortgage brokers and non-bank lenders (NBLs), presents this chart to show how interest rates on mortgages increased at the same time as non-bank lenders almost disappeared from mortgage lending.
Click to enlarge
<a href="/images/stories/2012/08/mfaa.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/08/mfaathumb.gif"></a>
Source: MFAA
Bankwest, which in its submissions says CBA’s acquisition “did not cause any change to existing contractual arrangements between Bankwest and its customers” presented this chart to show that its customer satisfaction rating has improved relative to the big four banks since being acquired by the CBA.
Click to enlarge
<a href="/images/stories/2012/08/bw.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/08/bwthumb.gif"></a>
Source: Bankwest
NAB in its submission presented this chart to show that it has only recovered 124 out of the 137 basis point increase in funding costs since June 2007:
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/08/nabaug9.gif"><img src="/images/stories/2012/08/nabaug9thumb.gif"></a>
Source: NAB
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Senate banking inquiry submissions: Five telling charts

<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

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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.

&nbsp;

[smartcode_project_cta:default project_id=152737]

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Larry Schlesinger

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