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Foreign investments by state-owned enterprises in Australia must be made on a “purely standalone commercial basis” and should not be driven by a political agenda, according to Brian Wilson,  the recently appointed new chairman of the Foreign Investment Review Board (FIRB).
The comments from Wilson, who was appointed in April, suggest where the FIRB will focus its attention when considering whether to approve future foreign investment requests by sovereign wealth funds.
In value terms, the most recent FIRB annual report revealed that about a quarter of foreign investment applications are for real estate purchases.
Wilson’s comments come as the debate over foreign investment becomes even more politicised following opposition leader Tony Abbott delivering a speech in Beijing calling for tougher rules governing foreign investment.
Abbott said it was seldom in Australia’s interest to allow a foreign governments to control an Australian business.
But Wilson stressed the test should always be commercial.
“Australian businesses, however they are owned, should be run on a purely commercial basis and not as an extension of the policy, political or economic agenda of a foreign government,” Wilson told Dow Jones Newswires.
ANZ chief executive Mike Smith has also weighed into the debate, warning that Australia needs foreign investment and calling on politicians to do a better job of explaining the role it plays in the economy.
"I understand the public opinion around [the foreign investment debate], but a lot of it is not based on fact but on shock. It is the duty of politicians to forge public opinion, to inform the public about what is good for the country, rather than pandering to it in a populist manner,” The Australian reported Smith as saying.
The FIRB's most recent commercial decision was to allow Yancoal Australia Limited, a subsidiary of Hong Kong and New York-listed Yanzhou Coal Mining Company Limited,  to merge with Gloucester Coal Limited.
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lschlesinger-FZcF9M3vE6

Foreign investments by sovereign wealth funds must have pure commercial basis: FIRB chairman

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The self-anointed "shadow RBA board", comprising a panel of academics and economists, is in favour of the cash rate remaining on hold at 3.5% today but says there is uncertainty over its direction in the next 12 months.
The shadow board gave 65% weight to the RBA keeping the interest rate unchanged at 3.5%, while an increase to 3.75% had about 15% weight.
Support for a decrease in the cash rate of 25 basis points or more received a weight of nearly 20%.
The shadow board comprises 10 members including former RBA board member Warwick McKibbin, Paul Bloxham, chief economist at HSBC Bank Australia, and former ANZ chief economist and current Bank of America Merrill Lynch Australia chief economist Saul Eslake.
The finding of the shadow board are presented every month just prior to the official RBA cash rate announcement by <a target="_blank" href="https://theconversation.edu.au/">The Conversation website</a> in conjunction with the Centre for Applied Macroeconomic Analysis (CAMA).
 
In its latest update, the shadow board warns that the risks to aggregate demand are finely balanced, with McKibbin and Macquarie University’s Jeffrey Sheen continuing to “see possible demand pressures in the domestic economy that are consistent with a higher interest rate”.
The board is almost evenly split on whether rates will rise or fall over the next 12 months.
Shadow board projections: 
<table cellpadding="0" border="0">
<thead><tr>
<td valign="top"></td>
<td valign="top">
Current
</td>
<td valign="top">
6 month
</td>
<td valign="top">
12 month
</td>
</tr></thead>
<tbody>
<tr>
<td>
Probability rates rise
</td>
<td>
15.6%
</td>
<td>
29.4%
</td>
<td>
43.9%
</td>
</tr>
<tr>
<td>
Probability rates stay put
</td>
<td>
66.1%
</td>
<td>
21.7%
</td>
<td>
16.1%
</td>
</tr>
<tr>
<td>
Probability rates fall
</td>
<td>
18.3%
</td>
<td>
48.9%
</td>
<td>
40%
</td>
</tr>
</tbody>
</table>
In his commentary HSBC’s Paul Bloxham recommends the RBA keep the cash rate on hold this month, with “evidence from the past month shows that previous cash rate cuts appear to be providing some support for the housing and retail sectors, although some part of this also reflects government payments to compensate for the carbon tax”.
“Overall, the economy appears to be tracking at close to trend. While inflation is low, which allows scope for further cuts, signs of solid demand suggest there is no urgency to provide further stimulus at this stage,” he says.
James Morley, Professor at the University of New South Wales, said that monetary policy remained in a “somewhat accommodative stance, but with little immediate cause for concern about inflationary pressures”.
“Headline inflation is low, although the less volatile measure of underlying inflation is on target, albeit at the bottom end of the 2% to 3% target range.
“This allows an increased weight on keeping the policy rate steady in the near term and slightly increases the possible need for further easing in the event that underlying inflation falls below the target range,” says Morley.
The full shadow board is:
<ul></ul>
<ul style="color: #111111; font-family: Arial, sans-serif; font-size: 14px; line-height: 20.399999618530273px;">
<li>Shaun Vahey, Professor, RSE, ANU. (non-voting chair)</li>
<li>Paul Bloxham, Chief Economist (Australia &amp; New Zealand), HSBC Bank Australia Ltd</li>
<li>Mark Crosby, Dean of the Global MBA Program, Acting Dean of the Global BBA Program, and Professor of Economics, S P Jain Center of Management in Singapore</li>
<li>Mardi Dungey, Professor, University of Tasmania, CFAP University of Cambridge, CAMA</li>
<li>Saul Eslake, Chief Economist, Bank of America Merrill Lynch Australia</li>
<li>Bob Gregory, Professor Emeritus, RSE, ANU, Professorial Fellow, Centre for Strategic Economic Studies, Victoria University, Adjunct Professor, School of Economics &amp; Finance, Queensland University of Technology</li>
<li>Warwick McKibbin, Professor, RSE, ANU, CAMA</li>
<li>James Morley, Professor, University of New South Wales, CAMA</li>
<li>Jeffrey Sheen, Professor &amp; Head, Department of Economics, Macquarie University,Editor, The Economic Record, CAMA</li>
<li>Mark Thirlwell, Director, International Economy Program, Lowy Institute for International Policy</li>
</ul>
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‘Shadow RBA board’ favours cash rate hold in August but split over future direction

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Property prices and land prices in the Queensland mining town of Gladstone are expected to begin to ease once new and more affordable housing projects are completed, according to new analysis from PRDNationwide.
This easing will occur over time, with the biggest residential development project in the region – Devine’s $1.4 billion Riverstone Rise community – being completed in stages over the next 15 to 20 years.
However, the report for the March half-year warns of a number of headwinds facing investors including an expanding  fly-in, fly-out workforce, requiring investors to revise down rental expectations to secure tenants.
Gladstone ranked third in Your Investment Property magazine’s 2012 list of Top 100 suburbs and was ranked second last year. The town is home to the world’s biggest alumina refinery, Australia’s biggest aluminium smelter and the country’s largest cement operation.
There are currently $69 billion worth of projects currently in the early stages of construction, and projects worth a further $26 billion are expected to commence in the next few years.
The PRDnationwide report says that high rental yields can still be achieved in the current market, but warns investors to be diligent to not only buy at the right price, but to buy something that has competitive tenant appeal.
“Vacancy rates have been quiet turbulent during the first half of 2012, as investor demand grossly outstrips owner occupier demand,” says the report.
“Uncertainty surrounding rental vacancy is exacerbated by an ever expanding fly-in, fly-out workforce, with many workers vacating to mining/construction campsites.
“As a result, many investors are forced to make sizeable revisions to their rental price expectations in order to secure a tenant on a reasonable lease. Given the current median prices recorded across all markets, there is no doubt that some investors, particularly those who entered the market in 2012, paid a premium on their investment with a heightened expectation of strong cash-flow.”
PRDnationwide Queensland analyst Rob Matta, who compiled the Gladstone Region Highlight Report, says Devine’s project is likely to ease the housing shortage in the Gladstone region and alleviate price growth pressures.
Construction of stage one of Devine’s $1.4 billion Riverstone Rise community in Gladstone has commenced. The project which is expected to take 15 to 20 years to complete, has been approved for 2,900 homes, two shopping centres and a new school.
It is located in Benaraby, approximately 20 kilometres south of Gladstone City, the new community aims to provide an affordable and diverse alternative to the offerings within Gladstone City.
Stage one features 120 allotments ranging in size up to 740 square metres and prices starting from $165,000.
Matta says there are several projects are several other projects in the pipeline, but the problem remains that few of these projects are delivering stock at a realistic price point.
Currently, though, PRDnationwide says house and land prices in the Gladstone region continue to go “from strength to strength”, with a median house price of $479,750 and a median land price of $250,000 for the March 2012 half-year period.
More than 87% of Gladstone houses that sold over the March 2012 half-year sold for more than $400,000, compared with 67% that sold over this price point a year ago.
Giving an indication of just how rapidly house prices have shifted upwards in Gladstone over the past two years, in the March 2010 quarter, just over a third (37%) of houses sold above this price point.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/08/prdaug7.jpg"><img src="/images/stories/2012/08/prdaug7thumb.jpg"></a>
For more, download our free eBook <a target="_blank" href="http://propertyobserver.com.au/ebooks/free-ebook-property-investing-in-queenslands-resources-boom">Residential Property Investment Amid Queensland's Resources Boom.</a>
 
<hr class="system-pagebreak">
 
However sales volumes have eased significantly due to the unaffordability of house and land over this period, with sales across the region down 27.3 % compared with the March 2011 half-year period and land sales down by 48.9 %.
PRDnationwide says there were 327 houses sold across the 12 suburbs that comprise the Gladstone City Area and 149 land transactions in the six months to March 2012.
Sales volumes also decreased in the unit market, which failed to sustain the exploding uplift in activity experienced during 2010-11, registering a total of 107 transactions in the March 2012 half-year period a decrease of 20.7% from the level of volumes recorded in the corresponding period in March 2011.
“The lack of affordable house and land is driving sales volumes back down, exacerbated by unprecedented rental growth which continues to inflate values accordingly,” says Matta.
Matta says the development of the Devine project repesents both good and bad news for the people of Gladstone City – depending on what side of the fence they sit.
“The good news is, that developments like this are likely to entice would-be investors and perhaps first-home buyers to snap up an opportunity they could not previously have afforded,” he says.
“The bad news is, for developers, investors or those who have recently paid a premium to live in the area, that rental vacancy may increase in the market, with rents and subsequent prices likely to correct as a result,” he says.
“As relenting as the fight is for the market to find equilibrium, the earmarked growth in the region’s economy and workforce is likely to ensure the fight continues for a long time to come.”
The PRDnationwide report attributes the revival of the Gladstone property market “solely to the booming resource industries in the Bowen and Surat basins”.
“Substantial projects such as the Curtis Island LNG facility have provided the catalyst for the recent flurry of investor interest, with many looking to capitalise on the opportunity for solid capital growth and attractive rental yields,” it says.
The report investigated three main areas – Agnes Water, Tannum Sands and Gladstone City – and found that demand for investment properties is rising in the Agnes Water Area.
PRDnationwide Agnes Water director Tim Lawry says the property market continues to benefit indirectly from the mining boom – with up to 80% of inquiry and purchases coming from the central Queensland region.
For more, download our free eBook <a href="http://propertyobserver.com.au/ebooks/free-ebook-property-investing-in-queenslands-resources-boom" target="_blank">Residential Property Investment Amid Queensland's Resources Boom.</a>
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Gladstone property hotspot facing headwinds, with investor demand 'grossly outstripping owner-occupier demand': PRDnationwide

<html><body>
<img src="/images/stories/2012/08/300.gif">
The advertised net rent per square metre per annum for office premises at 214 Park Street, South Melbourne, that will be taken up by Antony Catalano’s Metro Media Publishing (MMP) business.<a href="https://www.propertyobserver.com.au/industry-news/accc-approves-fairfax-weekly-review-deal/2012052454818"> Metro Media’s 50% merger with Fairfax Media </a>was approved by the ACCC in May. MMP is the publisher of Melbourne real estate advertising glossy The Weekly Review. There was 1,210 square metres of space available for lease in the two-storey free-standing building, with the lease negotiated by Paul O'Sullivan and Richard Curtain from Lemon Baxter South Melbourne.
 
<hr>
<img src="/images/stories/2012/08/700.gif">
The estimated gross face rent per square metre per annuam that Discount Vitamin Warehouse will pay to lease 93 square metres of retail space at 321a Chapel Street in Prahran, Melbourne.  The lease was negotiated by Mike Crittenden, Colliers International Executive for retail leasing. “We are noticing a shift from tenants to secure space in the Prahran/Windsor precinct, due to the type of shopper in the area and also the competitive rentals, rather than the South Yarra end, which historically has demanded higher rentals,” Crittenden says.
 
<hr>
<img src="/images/stories/2012/08/495.gif">
The initial gross rental of per square metre per annum that Rendezvous Hotels will pay to lease 287 square metres of office space at level six at 23 O'Connell Street in the Sydney CBD. The group is part of The Straits Trading Company Limited of Singapore. The leasing transaction at the former Permanent Trustee building was completed on behalf of owner Accord Pacific Resorts Pty Ltd by Ray White Commercial Office leasing directors John Skufris and Anthony Harris. Rendezvous Hotels has taken up a five-year lease. 
 
<hr>
 
<img src="/images/stories/2012/08/380.gif">
The commencing rent per square metre per annum that an unnamed international A-grade tenant will pay in a pre-commitment deal for 4,540 square metres of office space at levels 1 and 2 at Botanicca 8, within the Botanicca Corporate Park in Richmond, Melbourne. The lease was negotiated by Rob Joyes from Colliers International. The eight-year lease was negotiated on behalf of joint venture partners Pacific Group of Companies and Icon Developments. Peter Evans, Colliers International national director of corporate solutions, acted for the tenant in the negotiations. The new building will be completed by November 2013. Botanicca 8 is part of Botanicca Corporate Park at 576 Swan Street, Richmond offering more than 8,300 square metres of A-grade office space over four levels. 
 
<hr>
 
<img src="/images/stories/2012/08/100.gif">
The estimated annual rental per square metre that Melbourne Martial Arts company XFC Training will pay to lease a new facility at Bayswater in Melbourne’s eastern suburbs in a deal negotiated by Savills Australia. Located in the Bayswater Business Park, the Lot 31 Corporate Boulevard, facility comprises a 1,000 square metre building, which was specifically designed and built to suit the tenant’s requirements. Savills Adrian Smith, who brokered the deal, said the company had taken a five year lease with two, five year options.  The lessor was a local developer.
Negotiated a new lease? <a href="mailto:news@propertyobserver.com.au">Send an email to us</a> with the details and we will publish it our next edition of our commercial leasing ladder.
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Commercial leasing: Watch this space

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In the 17 months since it kicked off its “break-up” campaign on Valentine’s Day last year, NAB has steamed ahead of its big four rivals in providing home loans for owner-occupiers, APRA figures reveal.
From February 29, 2011 to June 30, 2012, APRA figures show that NAB has grown its owner-occupier loan book by $22 billion, to leap ahead of ANZ as the nation's third biggest mortgage lender, with a loan book worth $131 billion.
This translates into mortgage growth of 20% over this time period and comes as NAB revealed that it <a href="/news">would</a><a href="/news"> sign up its one millionth new customer – since the start of the break-up campaign – this week</a>.
Its closest rival over this period, ANZ, has grown its mortgage book by just over $12 billion (11% growth), with $9 billion loan book growth for Westpac 5.6% during this time period, and $7.5 billion added to the Commonwealth Bank’s loan book (4%).
The figures also reveal solid rates of growth at some of the second-tier banks over the same 17-month period, with Bendigo &amp; Adelaide Bank and Bank of Queensland growing their mortgage books by 25% each.
Top 10 fastest-growing owner-occupier loan books in volume terms
<table border="1" cellspacing="0" cellpadding="0" width="370"><tbody>
<tr>
<td width="143" nowrap valign="top"></td>
<td width="87" nowrap valign="top"></td>
<td width="76" nowrap valign="top"></td>
<td width="64" nowrap valign="top"></td>
</tr>
<tr>
<td width="143" nowrap valign="top">
Bank 
</td>
<td width="87" nowrap valign="top">
Loan book  end of June ($ millions)
</td>
<td width="76" nowrap valign="top">
End of Feb 2011
</td>
<td width="64" nowrap valign="top">
Increase in  loan book
</td>
</tr>
<tr>
<td width="143" nowrap valign="top">
NAB
</td>
<td width="87" nowrap valign="top">
$131,333
</td>
<td width="76" nowrap valign="top">
$109,296
</td>
<td width="64" nowrap valign="top">
$22,037
</td>
</tr>
<tr>
<td width="143" nowrap valign="top">
ANZ
</td>
<td width="87" nowrap valign="top">
$123,619
</td>
<td width="76" nowrap valign="top">
$111,473
</td>
<td width="64" nowrap valign="top">
$12,146
</td>
</tr>
<tr>
<td width="143" nowrap valign="top">
Westpac
</td>
<td width="87" nowrap valign="top">
$168,686
</td>
<td width="76" nowrap valign="top">
$159,737
</td>
<td width="64" nowrap valign="top">
$8,949
</td>
</tr>
<tr>
<td width="143" nowrap valign="top">
CBA
</td>
<td width="87" nowrap valign="top">
$178,931
</td>
<td width="76" nowrap valign="top">
$171,447
</td>
<td width="64" nowrap valign="top">
$7,484
</td>
</tr>
<tr>
<td width="143" nowrap valign="top">
Bankwest
</td>
<td width="87" nowrap valign="top">
$36,946
</td>
<td width="76" nowrap valign="top">
$31,426
</td>
<td width="64" nowrap valign="top">
$5,521
</td>
</tr>
<tr>
<td width="143" nowrap valign="top">
Bendigo and  Adelaide Bank
</td>
<td width="87" nowrap valign="top">
$14,858
</td>
<td width="76" nowrap valign="top">
$11,967
</td>
<td width="64" nowrap valign="top">
$2,891
</td>
</tr>
<tr>
<td width="143" nowrap valign="top">
Bank of Queensland
</td>
<td width="87" nowrap valign="top">
$12,311
</td>
<td width="76" nowrap valign="top">
$9,840
</td>
<td width="64" nowrap valign="top">
$2,470
</td>
</tr>
<tr>
<td width="143" nowrap valign="top">
Suncorp
</td>
<td width="87" nowrap valign="top">
$22,595
</td>
<td width="76" nowrap valign="top">
$20,217
</td>
<td width="64" nowrap valign="top">
$2,378
</td>
</tr>
<tr>
<td width="143" nowrap valign="top">
Macquarie Bank
</td>
<td width="87" nowrap valign="top">
$2,321
</td>
<td width="76" nowrap valign="top">
$1,273
</td>
<td width="64" nowrap valign="top">
$1,048
</td>
</tr>
<tr>
<td width="143" nowrap valign="top">
Members Equity Bank
</td>
<td width="87" nowrap valign="top">
$4,607
</td>
<td width="76" nowrap valign="top">
$3,737
</td>
<td width="64" nowrap valign="top">
$870
</td>
</tr>
<tr>
<td width="143" nowrap valign="top">
ING Bank
</td>
<td width="87" nowrap valign="top">
$27,938
</td>
<td width="76" nowrap valign="top">
$27,277
</td>
<td width="64" nowrap valign="top">
$661
</td>
</tr>
<tr>
<td width="143" nowrap valign="top">
QT Mutual Bank
</td>
<td width="87" nowrap valign="top">
$723
</td>
<td width="76" nowrap valign="top">
$191
</td>
<td width="64" nowrap valign="top">
$532
</td>
</tr>
<tr>
<td width="143" nowrap valign="top">
AMP Bank
</td>
<td width="87" nowrap valign="top">
$5,257
</td>
<td width="76" nowrap valign="top">
$4,786
</td>
<td width="64" nowrap valign="top">
$470
</td>
</tr>
<tr>
<td width="143" nowrap valign="top">
Citigroup
</td>
<td width="87" nowrap valign="top">
$5,080
</td>
<td width="76" nowrap valign="top">
$4,708
</td>
<td width="64" nowrap valign="top">
$372
</td>
</tr>
<tr>
<td width="143" nowrap valign="top">
Source: APRA
</td>
<td width="87" nowrap valign="top"></td>
<td width="76" nowrap valign="top"></td>
<td width="64" nowrap valign="top"></td>
</tr>
</tbody></table>
 As a rough guide, NAB adding $22 billion to its mortgage book over this time frame would translate into around 75,000 owner-occupier home loans (based on the average size of mortgage being just under $294,000, according to ABS housing finance figures).
This can only be a rough estimate, as the APRA figures do not reveal the value of each bank’s mortgage book that has been run off during this time period.
This week, NAB said it was expected to sign on its one millionth new customer since launching the break-up campaign.
While some people may have assume the bank has opened 1 million new accounts, NAB has confirmed to Property Observer that it has gained one million new customers since the start of the campaign.
NAB's break-up campaign coincided with the bank keeping its promise to maintain the lowest standard-variable mortgage rate of the big four banks until at least the end of 2012 – though the gap between it and ANZ and Commonwealth Bank has narrowed.
NAB has an SVR of 6.78%, marginally below that of the Commonwealth Bank and ANZ (6.80%), with Westpac at 6.89%.
For more, <a href="/news">view our free webinar Refinancing and the Interest Rates Riddle.</a>
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NAB surges ahead of big four rivals on owner-occupier mortgage lending since February 2011 ‘break-up’: APRA

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There is expected to be a rise in the number of forced sales of retail strip properties and warehouses in the second half of the year, according to Colliers International’s Matthew Meynell.
Meynell, team manager of Colliers Insolvency Property Services division in NSW, expects a rise in distressed retail strips listed for sale due to the impact of the high Australian dollar on importing costs as well as retail strip landlords struggling to compete with the “super regional centres” on rental rates per square metre.
A distressed asset is one that is put up for sale, usually at a cheaper price, because the owner is forced to sell due to bankruptcy or excessive debt.
<a target="_blank" href="https://www.propertyobserver.com.au/retail/more-than-650-australian-stores-closed-in-first-six-months-of-2012/2012071655589">According to calculations by SmartCompany last month</a>, more than 650 retail store closures have been announced since the beginning of the year, and more than 1,600 workers left without jobs. Retail businesses including Fletcher Jones, GAME, WOW Sight and Sound, Dick Smith, Speciality Fashion Group have all announced plans to scale back their retail footprints dramatically.
Last year warehouses were the most prominent distressed asset class among forced sales due to the struggling manufacturing sector, and Meynell expects industrial assets to remain prominent among distressed listings.
Colliers International figures for the first half of the year show a drop in the number of distressed commercial assets listed for sale from 378 to 329 following a drop in companies entering into external administration from a peak in September 2011.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/08/colliersaug6.gif"><img src="/images/stories/2012/08/colliersaug6thumb.gif"></a>
Queensland had the highest number of distressed assets for sale in the first six months of the year at 143, but this was well down from the 181 listed for sale for the first six months of 2011.
There was also a smaller drop in distressed assets listed for sale in NSW and WA.
Meynell says in both states there has been a lot more of “micro-managing of distressed assets” which has cleaned out a lot of the distressed assets listed for sale after the GFC.
Current listings of distressed commercial properties include the 10,000-square-metre Casula Central bulky goods centre in Sydney being sold by Brett Burridge from Knight Frank and the 6,500-square-metre Home Central Retail Centre in Coffs Harbour listed for sale by Troy Mitchell of LJ Hooker Commercial and Jon Tyson of Savills Brisbane.
High-profile distressed asset listings include the Crowne Plaza Hunter Valley, which hotelier Jerry Schwartz is finalising plans to buy for $45 million. The property was listed for sale by Meynell alongside Colliers International colleague Steam Leung on behalf of receivers Ferrier Hodgson.
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Increase in forced sales of retail strips and warehouses expected in second half of 2012: Colliers International

<html><body>
David Devine’s Metro Property Development group has increased its commitment to the inner-Brisbane apartment market, with approval granted for an $80 million project in South Brisbane.
The 12-level development, called The Plaza, has been designed by architects Deicke Richards and is due to be built at the corner of Russell and Manning streets on a 2,270-square-metre site and will feature 168 apartments.
Off-the-plan marketing of the project will begin later this month.
<img src="/images/stories/2012/08/plaza.jpg">
It will offer a mix of one- and two-bedroom apartments, ranging in price from $330,000 to $575,000.
The building will also feature a pool, gymnasium, outdoor dining area and garden reading room.
The Plaza site is situated just behind the Brisbane Convention Centre and close to the South Bank rail station and bus interchange, the Brisbane art gallery and cultural precinct, South Bank Parklands and the CBD.
<img src="/images/stories/2012/08/plaza2.jpg">
The project will take the value of Metro’s approved apartment developments in Brisbane to more than $400 million.  Metro currently has 1,337 apartments under construction or approved for development in inner Brisbane and a further 950 apartments in the pipeline. Metro is involved in <a href="https://www.propertyobserver.com.au/developments/construction-of-david-devines-madison-heights-tower-begins-with-87-of-units-sold-off-the-plan/2012071155517">three joint-venture projects with Indian-owned developer Pearls Australasia</a> in the inner north:
<ul>
<li>the 30-level <a target="_blank" href="https://www.propertyobserver.com.au/developments/construction-of-david-devines-madison-heights-tower-begins-with-87-of-units-sold-off-the-plan/2012071155517">Madison Heights</a> project in Bowen Hills in the inner-north, where construction has just commenced; </li>
<li>the 195-apartment The Chelsea also in Bowen Hills, which is sold out and</li>
<li>
<a target="_blank" href="https://www.propertyobserver.com.au/developments/buyers-snap-up-20-of-fortitude-valley-s-brooklyn-offerings/2011101351911">Brooklyn on Brookes</a> in Fortitude Valley  where construction is due to commence in August or September</li>
</ul>
In addition, Devine is also building the Riverside Hamilton Harbour project in partnership with Leightons.
Metro says it has received more than 200 registrations of interest for The Plaza project.
“We believe South Brisbane will continue to build on the reputation it has established as one of the city’s most popular lifestyle hubs,” says David Devine.
“With its proximity to schools, universities, hospitals, major entertainment venues and access to major transport, it is a great opportunity for buyers and investors.
“Apartments in the area are definitely undersupplied and there is great demand for an affordable, quality product that is sophisticated and stylish."
Metro marketing director Ken Woodley says there are more than 26,000 white-collar workers in the South Brisbane area and more than 80,000 students attend universities and colleges nearby.
“We anticipate demand for The Plaza from the local market will be very strong," he says.
Metro is expecting interest from young professionals, owner-occupiers and investors.
According to Urbis, the rental vacancy rate for apartments in Brisbane’s inner city sits at approximately 1.35% and is forecast to tighten to 1% or less by by December 2012.
South Brisbane recently ranked as top investment suburb, according to Your Investment Property magazine's Top 100 suburbs lists.
According to Resolution Research &amp; Strategists managing director Diana Howes,  the South Brisbane apartment market is chronically undersupplied.
“Taking into consideration the forecast increase in resident population in the South Brisbane/West End neighbourhood plan it is evident that this market is currently chronically undersupplied and will remain so until such a time as significant development and construction is undertaken to service demand,” she says.
Metro Property Development was created in 2010 by Devine Limited founder David Devine and business partners Ken Woodley and Luke Hartman.
To find out more about new projects in the inner Brisbane, Download Property Observer’s <a href="http://propertyobserver.com.au/ebooks/free-ebook-the-brisbane-inner-city-market" target="_blank">free eBook: Brisbane's Inner-City Urban Renewal</a>, which provides an overview and analysis of the current inner-Brisbane apartment market scene.
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David Devine’s Metro group wins approval for $80 million inner-Brisbane project The Plaza

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Property developer Mirvac has appointed Greg Dyer as its new finance director, replacing Justin Mitchell.

He will commence the role on September 4 and will also join the board of Mirvac.


Dyer was previously chief financial officer at property developer Mulpha Australia (a position he has held since 2005) and has also served on the board of FKP Property Group.


Prior to his role at Mulpha, Dyer was CFO at publisher APN News &amp; Media Limited.


Dyer is a qualified chartered accountant.


Last week <a href="https://www.propertyobserver.com.au/news/mirvac-gets-planning-go-ahead-on-harold-park-where-31-of-sales-have-been-to-first-home-buyers/2012072955756">M</a><a href="https://www.propertyobserver.com.au/news/mirvac-gets-planning-go-ahead-on-harold-park-where-31-of-sales-have-been-to-first-home-buyers/2012072955756">irvac received planning approval for its $1.1 billion residential development at Harold Park</a>, in the inner-Sydney suburb of Glebe.</body></html>

Developer Mirvac appoints Mulpha’s Greg Dyer as new finance director

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An entire undeveloped outer-west Melbourne suburb adjacent to Mt Atkinson has been listed for sale.
Mt Atkinson is a "dormant shield volcano" – a volcano made up of runny magma that forms a cone that has a flattened dome-like shape – and it together with nearby Mount Cottrell, also a dormant volcano, are the only elevated parts of otherwise flat terrain in the region.
The volcano itself sits on private land, rising just 100 metres, with the intended suburb to be developed on the contours of Mt Atkinson.
<img src="/images/stories/2012/08/wholesuburb.jpg">
The 555-hectare parcel of land at 1- 59 Greigs Road is being offered to developers as the opportunity to create a self-sustainable community incorporating residential, retail, business and industrial uses.
It is located 25 kilometres north-west of the Melbourne CBD, between the Western Freeway, the proposed outer metropolitan ring road and the Deer Park Bypass,  a few kilometres west of Caroline Springs.
It was brought inside the urban growth boundary in 2010.
The recent release of the Western Growth Corridor Plan by the Growth Areas Authority (GAA) designated the site to deliver a mixture of conventional, medium- and high-density housing, a higher-order business precinct comprising a mix of business uses (such as office parks, research and development), a specialised town centre and a dedicated industrial precinct.
The site is being marketed by CBRE’s Tom Hayes and Charlie Buxton and is being targeted at both national and offshore developers. 
It will be sold via a request for proposals campaign, closing on September 14 at 4pm.  No price indication has been given.
Hayes says the large parcel of land and flexible zoning offered developers the opportunity to create a self-sustainable community offering a multitude of housing and employment options.
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“The massive scale of this opportunity will guarantee the successful purchaser the opportunity to make their mark on Melbourne,” he says.
Buxton highlights that the site connects directly to the arterial road system, the future OMR/western highway interchange and the Melbourne-to-Ballarat rail line.
This, he says, places it in the unique position to operate as a transit-oriented white-collar employment hub and to accommodate a higher diversity of housing.
Mt Atkinson represents the highest point within the western growth corridor.
The property benefits from uninterrupted city and Port Phillip Bay views.
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Whole outer-west Melbourne suburb – adjacent to dormant volcano – listed for sale, with subdivision developer interest expected to erupt

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NAB’s red star appears to be on the rise, with its customer satisfaction rating continuing to increase.
It is also preparing to sign up its one millionth customer 18 months after launching its "break-up" campaign urging customers of the other big four banks to switch over.
In addition, banking analysts at Nomura are encouraging their clients to increase their holdings in NAB (alongside Westpac), rating the bank as a buy. The agency rates ANZ as neutral and are urges clients to reduce their Commonwealth Bank (CBA) stock holding.
Nomura banking analyst Victor German says NAB and Westpac are "best placed to deliver better margin performance over the medium term".
Nomura analysis shows NAB has the fastest growing home loan book (9.1%) over past 12 months, almost matched by ANZ (9%), with CBA (4.5%) and Westpac (4.4%) lagging.
The rebirth of the NAB brand comes as former CBA chief David Murray backs a review of the banking system.
Murray said a review should look at ways to improve the ownership structure of banks, adding that the issue of “too big to fail” would remain “very front of mind of all the regulators”.
The NAB break-up campaign kicked off on Valentine’s Day 2011, when NAB said it would pay the $700 early mortgage exit fee for CBA and Westpac customers switching to NAB as part of a campaign of eliminating mortgage and credit card fees.
NAB was the first major bank to abolish home loan early exit fees in December 2010 – ahead of the government ban from July 1 last year.
Bank customer satisfaction ratings compiled by Roy Morgan show that NAB’s satisfaction rating has been rising since the end of 2009, when the bank first began abolishing its over limit fee on credit cards and reduced credit card late payment fee from $30 down to $5.
Between 2008 and mid-2010 NAB’s satisfaction rating was the lowest of the big four banks at a time when its share price lagged the banking index. This culminated in an internal revamp of the bank, led by chief executive Cameron Clyne, who replaced John Stewart as NAB boss in January 2009.
The bank currently has the highest satisfaction rating of the major banks at 78.2% as measured by Roy Morgan, with ANZ the lowest ranked (and on a steep downward trajectory coinciding with apparent customer distaste for its independent interest rate decisions).
NAB became the top-ranked big four bank at the start of 2012 – and while it did dip in the first few months of the year, it has maintained its leads over the other banks.
Over the past 12 months to June, NAB’s customer satisfaction rating has improved by 3.6 percentage points.
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Clyne told the Australian Financial Review the expectation of signing up its one millionth new customer this week was a significant milestone and well ahead of its target.
However, Paul Dowling from banking analysts East &amp; Partners has warned that the key for the bank will be growing the amount of business they get from their new customers.
“The real test is the next 18?months, two years, to see what NAB can do with these customers. This is great, they’ve got to first base, 1?million new customers, but it’s what comes next.”
NAB’s group executive of personal banking Lisa Gray says the bank must now focus on retaining the new customers and cross-selling them other products.
For more, <a href="/news">view our free webinar Refinancing and the Interest Rates Riddle.</a>
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With millionth new customer, NAB ‘break-up’ campaign causes red star to shine

<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.

[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.

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Larry Schlesinger

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