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Shopping centre landlord GPT is backing its portfolio of regional shopping centres to continue to perform strongly, despite the threat posed to vacancies and rental revenue from online retailing, according to a report by credit rating agency Moody’s
<a href="https://www.propertyobserver.com.au/news/westfield-gpt-best-placed-to-deal-with-online-threat-but-still-facing-concerns-over-vacancies-and-rental-growth-moodys/2012073055780">The Moody’s report warned that online shopping and the high Australian dollar</a> could impact on vacancy rates and inflation-adjusted rental increases for retail REITS including GPT and Westfield.
Responding to the Moody’s report, Mark Fookes, GPT’s head of investment management, says the company “believes in the future of retail as a strong investment class”.
“We are confident our retail portfolio will continue to deliver solid income growth as GPT continues to actively evolve the tenant mix, invest in complimentary technology, and focus on enhancing the customer experience,” he says.
“GPT believes quality regional shopping centres which dominate their trade area will continue to outperform other retail asset classes.
“Quality regional centres provide the benefits of strong tenant demand; tenant diversification; a broader retail offer including entertainment and leisure; and flexibility to evolve the retail offer and enhance the customer experience.
GPT has a 60% of its property investments in the retail space, including the Highpoint shopping centre in Melbourne’s west, the 10th biggest mall in Australia and currently being expanding.
Fookes also highlighted that 95% of GPT’s retail portfolio is made up of regional shopping centres, one of the highest proportions of its peers.
Moody’s expects regional centres to show greater resilience than sub-regional and neighbourhood centres, particularly those that “provide a broad range of offerings, including entertainment, restaurants and services, are more likely to be able to continue to attract tenants than smaller and more narrowly defined centres”.
“In addition [to our high exposure to regional shopping centres], 86% of our retail portfolio income is underpinned by structured rental increases of 4.5% in 2012,” Fookes says.
Westfield declined to comment on the Moody's report, deferring to its interim results, which will be released on August 16.
GPT will release its full results on August 27.
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GPT confident retail property portfolio will continue to deliver strong returns and rental growth

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Interest rate cuts in May and June have failed to translate into a rise in mortgage lending, according to private credit data released by the RBA today, with mortgage growth still at record lows.
Housing credit increased by 0.3% over June, following an increase of 0.3% over May – despite 75 basis points being cut from the cash rate over the two months (50 basis points in May and 25 basis points in June) taking the cash rate from 4.25% to 3.5%.
Loans to owner occupiers grew by just 0.2% over June - the smallest increase in lending to this sector for RBA records going back to 1990 while investor mortgage growth was higher at 0.5% for the month.
Over the year to June, housing credit rose by 5.1% - the lowest annualised rate of growth dating back to 1977.
Total credit provided to the private sector by financial intermediaries rose by 0.3% over June 2012, after rising by 0.5% over May. Over the year to June, total credit rose by 4.4%.
The June reading was below the median of 0.4% growth forecast by economists polled by Bloomberg last week.
Other personal credit decreased by 0.2% over June, after increasing by 0.1% over May. Over the year to June, other personal credit decreased by 1.5%.
Business credit increased by 0.5% over June, after growing by 0.8% over May. Over the year to June, business credit increased by 4.4%.
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No interest rate bounce as mortgage lending up just 0.3% in June

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The number of dwellings approved for construction fell 2.5% in June in seasonally adjusted terms, according to latest ABS estimates, following a rise of 27% in the previous month.
Economists polled by Bloomberg last week had forecast a much bigger 15% month-on-month fall in building approvals in June.
Nevertheless, the results will disappoint the residential construction sector.
The biggest monthly fall in dwelling approvals in June was recorded in Victoria (-14.6%).
There were, however, strong gains in the mining states with Western Australian approvals up 28.9% followed by Queensland (18.0%)
Smaller gains were also recorded in Tasmania (9.2%), New South Wales (7.7%) and South Australia (4.1%) in seasonally adjusted terms.
The detached housing sector remained weak.
Approvals for private sector houses fell 1.1% in June and are down 9.1% year-on-year with the monthly fall led by  New South Wales (-4.5%) and Victoria (-3.3%) but rose in Queensland (5.3%), Western Australia (4.4%) and South Australia (0.4%).
The value of total building approved fell 9.8% in June, in seasonally adjusted terms, after rising for 2 months. The value of residential building rose 0.2% while non-residential building fell 22.3%.
The Housing Industry Association noted the approvals update was a "reasonable result at face value."
The HIA chief economist, Harley Dale said the decline of 2.5% in total seasonally adjusted building approvals in June 2012 looked "modest" in the context of the 27% jump which occurred the previous month."
"Furthermore, the headline result reflects the sharp decline now underway in Victoria, with building approvals increasing in June in every other state and territory," said Harley Dale.
"Building approvals increased in the June 2012 quarter and this improvement is driven by a relatively healthy rebound in ‘other dwellings’," said Harley Dale. "The concerning factor is that this recovery masks on-going deterioration in the core detached house segment of the new home building market."
"Housing starts are back at recessionary levels in 2012 and the pain of that situation for tens of thousands of businesses around the country is unfortunately plain to see," Harley Dale said.
"It is vital to see evidence of a broad-based recovery in building approvals and that is simply not the case at present," said Harley Dale. "Detached house approvals fell by 6.2% in the June 2012 quarter and by 10.2% last financial year to reach their lowest level in over a decade. The trend decline in detached house approvals now extends to 30 consecutive months."
"That situation makes the case for government investment in new housing and reform of the excessive and inefficient levels of taxation on the sector all the more compelling," added Harley Dale.
 
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Building approvals fall 2.5% in June led by big drop in Victoria: ABS

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The growth in online shopping as well as the high Australian dollar is likely to put pressure on shopping centre landlords, with GPT and Westfield sustaining low vacancy rates and above inflation rental growth, according to a new report by Moody’s.
The report says GPT is the more heavily exposed of the two shopping centre landlords, with 61% of its property assets in the retail space, while Westfield is less exposed with 40% of its property assets in retail.
Westfield most recent project was its flagship Westfield Sydney project in the Sydney CBD, while GPT Group is currently expanding the Highpoint Shopping Centre in the western Melbourne suburb of Maribyrnong in a $300 million project that will be completed next year.
Moody’s rates Westfield Group as A2 with a negative outlook, still a high investment grade rating signifying high quality and very low credit risk.
GPT Group is rated A3 with a stable outlook – an upper-medium grade rating with low credit risk.
Westfield will release its interim results on August 16 while GPT will put out full year results on August 27.
Despite the online concerns, Moody's also says that GPT and Westfield are better positioned than other landlords and A-REITs by virtue of the quality of their portfolios and their heavy weighting to regional centres.
Moody’s expects regional centres to show greater resilience than sub-regional and neighbourhood centres.
“Retail centres that provide a broad range of offerings, including entertainment, restaurants and services, are more likely to be able to continue to attract tenants than smaller and more narrowly defined centres."
“Ninety-five percent of GPT’s centres are classified as regional and Westfield has a similar profile."
“This contrasts favourably with, for example, Charter Hall Retail REIT (unrated), all of whose properties are classified as sub-regional, neighbourhood, freestanding or household.”
Moody’s’ concerns about the threat of online retailing on bricks and mortar follow recent research by PwC/Frost &amp; Sullivan showing that more than half of all Australians now shop online, with total online spend growing annually at 14.1%, and amounting to 5.5% of total retail sales in 2011, up from 4.9% in 2010.
PwC is forecasting online spending of $26.9 billion annually by 2016, up from $13.6 billion in 2011.
According to Moody’s "this growth in online shopping has negative credit implications for A-REITs with retail exposure”.
“One consequence of the structural change underway is that the long-standing environment of both minimal vacancies and above consumer price index (CPI) rent increases is becoming increasingly unsustainable,” says Maurice O’Connell, Moody’s analyst and author of the report.
O’Connell says retail tenants are operating within a “poor retail environment where sales growth, excluding food, over the past few years has been below 1% per annum”.
As a consequence it is becoming harder for stores to absorb structured rent increases “typically based around the CPI as overall specialty rent as a percentage of specialty store revenue is at historic highs”.
BIS Shrapnel chief economist Frank Gelber also noted the challenges faced by retail landlords as part of a presentation to the REIV Commercial &amp; Industrial Economic Forecast Luncheon in Melbourne last week.
Gelber said the “golden age” of retailing in the late 1990s and early 2000s would not return, but reassured retail landlords that “people would still be shopping in stores in five years’ time”.
He notes that over the last few years, consumers have increasingly directed their spending overseas (in-store when on holiday overseas and online, at overseas-based websites) as well as towards non-retail goods and services, such as travel and health.
“They also increased their rate of saving, although this has now levelled off – albeit at a fairly high level,” he says.
Gelber says gaps between retail turnover (which is a measure of spending in Australia only, and therefore does not include Australians spending overseas) and total household spending widened through 2010 and 2011.
While it now appears to be closing, BIS Shrapnel does not expect it to close entirely for a few years at least due to the likelihood of a sustained high Australian dollar, together with shifts in the ways consumers allocate their spending.
“Retail building is subdued at present, with new projects held in check by funding difficulties as well as the challenges of leasing shops in the current environment of weak business confidence.
“Commencements peaked at over $6 billion in the year to September 2008 and are currently running at a little over $4 billion."
“The rollout of hardware superstores by Bunnings and Masters has helped to prevent a greater collapse in activity."
“However, within a couple of years we are likely to see substantially higher levels of building. Over the next five years as a whole, retail commencements are predicted to average $4.9 billion per annum, marginally higher than over the last five years,” he says.
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Westfield, GPT best placed to deal with online threat but still facing concerns over vacancies and rental growth: Moody’s

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Property Observer has scoured mortgage comparison websites to determine the lowest variable rate home loan and one- and three-year fixed home loans currently available.
Lowest variable rate offerings:
<table cellspacing="0" cellpadding="0" border="1"><tbody>
<tr>
<td width="152" valign="top">
Provider 
</td>
<td width="158" valign="top">
Loan name
</td>
<td width="123" valign="top">
Rate
</td>
<td width="132" valign="top">
Comparison rate**
</td>
</tr>
<tr>
<td width="152" valign="top">
UBank
</td>
<td width="158" valign="top">
UHomeloan Refinance
</td>
<td width="123" valign="top">
5.62%
</td>
<td width="132" valign="top">
5.62%
</td>
</tr>
<tr>
<td width="152" valign="top">
Nationwide Mortgage
</td>
<td width="158" valign="top">
True Saver Home Loan
</td>
<td width="123" valign="top">
5.65%
</td>
<td width="132" valign="top">
5.65%
</td>
</tr>
<tr>
<td width="152" valign="top">
Loans.com.au
</td>
<td width="158" valign="top">
Dream Catcher
</td>
<td width="123" valign="top">
5.65%
</td>
<td width="132" valign="top">
6.00%
</td>
</tr>
</tbody></table>
Lowest one-year fixed-rate offerings
<table cellspacing="0" cellpadding="0" border="1"><tbody>
<tr>
<td width="152" valign="top">
Provider
</td>
<td width="157" valign="top">
Loan name
</td>
<td width="124" valign="top">
Rate
</td>
<td width="132" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="152" valign="top">
UBank
</td>
<td width="157" valign="top">
UHomeloan Refinance
</td>
<td width="124" valign="top">
5.58%
</td>
<td width="132" valign="top">
5.80%
</td>
</tr>
<tr>
<td width="152" valign="top">
Bank of Melbourne*
</td>
<td width="157" valign="top">
Fixed loan (Advantage Package)
</td>
<td width="124" valign="top">
5.59%
</td>
<td width="132" valign="top">
6.83%
</td>
</tr>
<tr>
<td width="152" valign="top">
CUA
</td>
<td width="157" valign="top">
Fixed rate home loan
</td>
<td width="124" valign="top">
5.65%
</td>
<td width="132" valign="top">
6.25%
</td>
</tr>
<tr>
<td width="152" valign="top">
Illawarra Credit Union
</td>
<td width="157" valign="top">
Fixed rate loan
</td>
<td width="124" valign="top">
5.65%
</td>
<td width="132" valign="top">
6.01%
</td>
</tr>
</tbody></table>
* Rate also available through other Westpac bank brands – BankSA, St.George
Lowest three-year fixed-rate offerings
<table cellspacing="0" cellpadding="0" border="1"><tbody>
<tr>
<td width="152" valign="top">
Provider 
</td>
<td width="158" valign="top">
Loan name
</td>
<td width="132" valign="top">
Rate
</td>
<td width="123" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="152" valign="top">
Bank of Queensland
</td>
<td width="158" valign="top">
Fixed loan
</td>
<td width="132" valign="top">
5.55%
</td>
<td width="123" valign="top">
6.67%
</td>
</tr>
<tr>
<td width="152" valign="top">
RAMS
</td>
<td width="158" valign="top">
RAMS Fixed rate
</td>
<td width="132" valign="top">
5.59%
</td>
<td width="123" valign="top">
6.80%
</td>
</tr>
<tr>
<td width="152" valign="top">
Bank of Melbourne*
</td>
<td width="158" valign="top">
Fixed loan (Advantage Package)
</td>
<td width="132" valign="top">
5.59%
</td>
<td width="123" valign="top">
6.49%
</td>
</tr>
</tbody></table>
*Rate also available through other Westpac bank brands – BankSA, St.George
Those readers thinking about refinancing their home loan should sign up for Property Observer’s free webinar: <a href="https://propertyobserver.us2.list-manage1.com/track/click?u=24bd0766a834290948593f5aa&amp;id=73e60d1a88&amp;e=add64da266" target="_blank">Refinancing and the </a><a href="https://propertyobserver.us2.list-manage.com/track/click?u=24bd0766a834290948593f5aa&amp;id=9814caeb06&amp;e=add64da266" target="_blank">interest rates riddle</a>, taking place today (31 July) a 12:30pm AEST.
 **A comparison rate includes both the interest rate and the fees and charges relating to a loan, combined into a single percentage figure.
***The following results are based on advertised mortgage rates listed by <a href="https://www.ratecity.com.au">ratecity.com.au</a>, <a href="https://www.infochoice.com.au">Mozo.com.au</a> and <a href="https://www.infochoice.com.au">infochoice.com.au</a> as of July 30.
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Lowest home loan rate offerings: Fixed and variable

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Property investors are becoming more active in Australia’s two mining states – Western Australia and Queensland, according to a recent report by Knight Frank.
Declining numbers of properties available for sale in the Perth metro area combined with a strong rental market are bringing “high numbers” of investors back to Perth, says Neil Kay, Knight Frank’s director of residential project marketing.
He notes Real Estate Institute of Western Australia (REIWA) figures that show the number of properties in the Perth metro area available for sale has been steadily dropping over the last 10 months.
“It reached a high of circa 18,000 properties [including house, unit and land] early last year in 2011."
“However, according REIWA we are sitting at around 13,400 properties on the market, and this is decreasing every week, due to a combination of factors over the last year, such as WA has the fastest-growing population rate and lowest unemployment, highest wages, and so on,” says Kay.
He says WA now has one of the strongest rental markets, “with huge numbers of people flocking to the area for work”.
“Inner-city rents have jumped about 30%. For example a two-bedroom unit fully furnished was $600 per week 12 months ago. Over the last two weeks, we have been renting the same unit for $850 per week.”
“Supply of property for sale is dropping as owners decide to rent out their property instead of selling."
“Major oil and gas companies and all the supporting businesses and companies are opening up offices and bringing people over to work. So the rate of sales in off-the-plan apartments is increasing as the supply in established apartments tightens.”
Kay says it’s only a matter of time when all these factors combine to start putting increasing pressure on property prices to start rising.
In Queensland, investors are opting for low-rise (or “horizontal”) off-the-plan development as opposed to high-rise (or “vertical”) off-the-plan development, says Mathew Cassidy, Knight Frank’s residential property manager for project marketing.
“The reason seems to be surety around delivery of the property, meaning that the villa or house will be delivered in a time frame that suits their specific situation,” he says.
Cassidy also expects a recovery in sales volumes on the more predictable Gold Coast and Brisbane – barring any unforeseen world crisis – with rentals in both areas still strong.
“Regional mining areas have seen strong capital growth and new construction. Our regional offices note that this looks set to continue for several years at least. Occupancy rates and rental returns are flourishing due to a lack of quality accommodation and dwellings,” he says.
The strong performance of Perth’s rental market in particular – and Brisbane’s to a lesser extent – was revealed in the March quarter figures put out by the Real Estate Institute of Australia (REIA).
Perth rents for three-bedroom houses have risen 9% over the previous 12 months to a median of $425 while two-bedroom units are up 8.1% over this period to $400, according to the REIA.
Brisbane three-bedroom house rents are up 2.9% to a median of $360 for the 12 months to March while two-bedroom units are up 4.3% to $365.
Click to enlarge
<a rel="shadowbox" href="/images/stories/2012/06/reiajune18.gif" title="Click to enlarge"><img src="/images/stories/2012/06/reiajune18thumb.gif"></a>
Source: REIA
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Property investor activity on the rise in mining states WA and Queensland: Knight Frank

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<img alt="Port-Hedlandv2" src="/images/stories/2012/Port-Hedlandv2.gif" height="225" width="400">
High-flying WA residential property developer Finbar has been selected as the preferred developer to turn the former Port Hedland Hospital site in the iron-ore rich Pilbara region into 367 serviced apartments.
The $300 million project will overlook the state government’s $152 million Spoilbank Marina Precinct in Port Hedland and is part of its "Pilbara Cities" initiative, which aims to turn Karratha and Port Hedland into sustainable and attractive cities of 50,000 people each by 2035 as well as grow the population of Newman to 15,000 by 2035.
Finbar’s shares on the ASX were placed in a trading halt today $1 per share ahead of the announcement.
Trading has since re-opened with the share price rising to $1.06 following the announcement.
In choosing Finbar, the WA government would have taken account of Finbar’s successes in the Pilbara to date.
The developer recently completed <a href="https://www.propertyobserver.com.au/developments/developer-finbar-making-an-impact-in-wa/2011102051937">stage one of its $225 million Pelago project</a> in Karratha and has since commenced work on stage two.
The project features 292 residential apartments and 22 commercial lots.
The completed Pelago West component comprises 114 apartments while Pelago East will comprise 184 apartments, upon completion.
Following the Port Hedland appointment, Finbar will now enter into an exclusive working period with WA’s land and property development agency Landcorp.
Finbar will firm up design concepts for consideration by the relevant authorities followed by the intended purchase of the site from the state government for redevelopment.
Subject to approvals, Finbar plans to proceed to market and commence construction on the Port Hedland site early in 2013.
The former Port Hedland Regional Hospital site is a 3.15 hectare parcel of land located on Sutherland and Morgans Streets in Port Hedland, situated directly opposite the Port Hedland Yacht Club.
Aside from the 367 short stay serviced apartments along, the project will also feature ground floor commercial office and retail units, which will reflect the requirements for the State Government funded $152 million marina and tourism precinct.
The former hospital site is next door to Mirvac's $125 million hotel and residential project which will consist of 178 hotel rooms and 116 residential dwellings. “Port Hedland represents a significant opportunity for Finbar and allows us to demonstrate further innovative housing in the Pilbara area,” said Finbar managing director, Darren Pateman following the announcement.
“The Spoilbank Marina project itself will be a milestone for the Port Hedland area and will provide real relief to local residents and businesses that are crying out for alternative recreation and accommodation options.” “Accommodation in the North West is certainly in strong demand and Finbar’s agility will enable us to respond quickly for the benefit of the town, its businesses and our shareholders."
“Ideally, the Spoilbank Marina precinct will enliven the Port Hedland community and become a destination which workers would prefer to call home.”
“From what we have witnessed, there is a pent up demand for cosmopolitan living and we believe that Spoilbank Marina will become the prime Port Hedland location.”
In its most recent Pilbara Cities Newsletter update for Port Hedland, LandCorp said will release development sites this year will have the potential to accommodate an additional 1,200 dwellings.
The Pilbara – the epicentre of WA’s iron ore boom – has a total of $175 billion committed to new resource and resource related infrastructure projects.
According to the WA state government, the total value of minerals and petroleum production in the Pilbara by 2018 will be approximately $211 billion.
The WA government identifies the key challenges for the Pilbara due to growth in recent years are:
<ul>
<li>Housing is less affordable due to unmet demand.</li>
<li>Infrastructure upgrades/expansion are not keeping pace with growth.</li>
<li>Small business numbers have declined partly due to rising costs.</li>
<li>Education and health services are below expectations.</li>
<li>Community services facilities are aging and inadequate.</li>
<li>Sense of community is in decline, adversely impacted by workforce fly-in, fly-out rosters and 12 hour shifts.</li>
</ul>
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Finbar wins tender to build $300m serviced apartment project in Port Hedland 

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Changes in median house and unit prices don’t "inform" on whether the housing market is rising or falling, says Rismark, joint compiler of the RP Data-Rismark Daily Home Value Index.
Responding to a number of articles in the media, <a href="https://www.propertyobserver.com.au/residential/house-prices-the-latest-june-quarter-data-may-not-lie-but-its-rarely-in-agreement/2012072955754">including one on Property Observer</a>, commenting on the divergent nature of June quarter housing market data, Rismark says median prices are good for asking questions like: “Can the average wage earner afford to buy up to the 50th percentile (ie. the median) of the houses that happen to be selling in the last quarter?"
“Equally, the 25th or 75th percentiles are just as useful as the 50th for these types of questions."
Rismark says it cannot imagine anyone advocating that an index of the 25th or 75th percentile of house prices (stratified or otherwise) being representative of changes in the value of the housing market.
“However, when it comes to the word 'median' (ie. the 50th percentile) a lot of people seem to become spellbound."
According to Rismark “repeat sales indices” – where the sample of properties included in an index is limited to that sell more than once is a “poor reflection of changes in the market”.
“Repeat sale indices have very low coverage of the dwelling stock which is trading and massively revise, though time as new trade pairs (ie. houses selling more than once) become observable.
The RP Data-Rismark Daily Home Value Index is a hedonic model.
“This index utilises comprehensive information on the attributes and characteristics of residential properties (such as location, land size, and bedrooms) to measure “quality-adjusted” changes in property value over time and to also impute the value of dwellings having a certain set of characteristics (but no current sales price) by observing the sales prices and characteristics of other dwellings which have recently been observed as selling," RP Data explains on its website. 
<a href="https://www.rpdata.com/research/types_of_indices">Click here for RP Data's full explanation of its methodology.</a>
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Change in median prices don’t inform on housing market direction: RP Data-Rismark

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Detached new home sales increased by 23.5% in Western Australia over June, leading a 2.8% national gain across all new dwelling types, according the Housing Industry Association's (HIA) monthly survey of Australia's largest volume builders.
June was the third straight month of improving new home sales as recorded by the HIA, though they still remain at very low levels.
The national gain over June was driven by 15.7% jump in the sales of multi-units with the detached housing market flat, recording only a 0.7% gain.
"It is encouraging to see a second consecutive jump in the sale of multi-units," says HIA chief economist, Dr Harley Dale. “Sales were up by 30.8% over the June 2012 quarter.”
"It is, however, a stark reminder of how much catching up is left in the multi-unit sector when a lift of this magnitude still leaves sales volumes 36% below their 10 year average,” says Dale.
Over the June 2012 quarter detached house sales fell by 1.1% to be a sharp 24.5% lower than the volume for the June 2011 quarter.
<img alt="newdwellings" src="/images/stories/2012/newdwellings.jpg" height="286" width="461">
“That’s a concerning update which sees detached house sales running at an annualised level 35% lower than the 10 year average and 44% below the long-term history of the series."
“Lower interest rates will assist new housing in 2012/13, but the large gap between the cash rate and variable mortgage rates will blunt their positive impact."
“Investment and reform from governments is the key ingredient to lifting the new housing sector substantially above the recessionary levels of 2012. State governments have a crucial role to play, as do local governments, but it is the Federal Government that needs to act first and lead by example.”
WA detached house sales are up 9.3% over the June quarter, but the HIA says “problems with the building act means this improvement will not translate into construction activity any time soon”.
Detached house sales increased by 2% in NSW, 4.4% in South Australia, but fell by 9.6% in Victoria and by 11% in Queensland.
Over the June 2012 quarter detached house sales fell in New South Wales (-6.2%), Queensland (-21.1%) and South Australia (-8.3%).
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WA detached new home sales up 23.5% in June as unit sales help drive 2.8% national improvement: HIA

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Shares in Perth-based residential developer Finbar has been placed in a trading halt ahead of an announcement later today about a new project.
In a statement to the ASX, Finbar said it requested the trading halt ahead of an announcement about a “substantial new project opportunity”.
The announcement is expected to be made before close of business today.
Aside from its Perth residential projects, Finbar is also  building apartments in Karratha, in the mining-rich Pilbara region.
In <a href="https://www.propertyobserver.com.au/industry-news/finbar-upgrades-profit-guidance-following-strong-east-perth-apartment-sales/2012062055202">June Finbar upgraded its profit forecast for the 2012 financial year ending June 30</a> following strong apartment sales in two of its Perth projects.
The developer is anticipating full-year profit after tax of approximately $28 million, an increase of $4 million from previous guidance.
Finbar will pay a final dividend of 5.5¢, fully franked, to take the full-year payout up 6% to 9¢.
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Finbar shares in trading halt ahead of new project announcement

<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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“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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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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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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Much of that daily life can also take place beyond the building without requiring a drive. Kurrawa Beach and Pratten Park are an easy walk from Surf Parade, while Pacific Fair, Oracle Boulevard, The Oasis, restaurants, cafés, entertainment and public transport are also within walking distance.

The Eveleigh is Hirsch &amp; Faigen's fourth Gold Coast development since entering the market in 2021, following The Hemingway at Palm Beach, The Emerson at Kirra and Yves at Mermaid Beach. Each of the preceding projects sold out before completion.

“Broadbeach had been on our radar throughout our time operating on the Gold Coast,” the developer said. “Following our projects in Palm Beach, Kirra and Mermaid Beach, Broadbeach represented the natural next step for the business.”

The Surf Parade site brought together proximity to the beach, protected coastal outlooks and walkability to dining, shopping and recreation. Hirsch &amp; Faigen also identified the street as an emerging premium residential address, with enough separation from Broadbeach's busier destinations to retain a quieter environment at home.

The Eveleigh is now under construction by Maxcon, with completion forecast for mid-2028. Three-bedroom residences are currently available from $2.87 million.

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Joel Robinson

The Eveleigh brings house-like apartments to Broadbeach

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

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

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

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

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

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