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

lschlesinger-FZcF9M3vE6

GPT confident retail property portfolio will continue to deliver strong returns and rental growth

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

No interest rate bounce as mortgage lending up just 0.3% in June

<html><body>
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.
 
</body></html>

Building approvals fall 2.5% in June led by big drop in Victoria: ABS

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

Westfield, GPT best placed to deal with online threat but still facing concerns over vacancies and rental growth: Moody’s

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

Lowest home loan rate offerings: Fixed and variable

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

Property investor activity on the rise in mining states WA and Queensland: Knight Frank

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

Finbar wins tender to build $300m serviced apartment project in Port Hedland 

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

Change in median prices don’t inform on housing market direction: RP Data-Rismark

<html><body>
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%).
</body></html>

WA detached new home sales up 23.5% in June as unit sales help drive 2.8% national improvement: HIA

<html><body>
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¢.
</body></html>

Finbar shares in trading halt ahead of new project announcement

Ron Bakir's Homecorp has sold more than 75 per cent of the apartments in its wellness-driven Florence Residences in Surfers Paradise following its first weekend release.

The <a href="https://www.apartments.com.au/new-apartments/florence-residences-24-monte-carlo-avenue-surfers-paradise-qld-4217">26-storey project on Monte Carlo Avenue</a>, which commenced construction earlier this year, has seen a flurry of buyers secure their slice of the Gold Coast's latest wellbeing-focused offering in one of the nation's most competitive property markets.

Since the pandemic, the Gold Coast's population has grown by more than 11 per cent, a rate approximately four times faster than Sydney's, driven largely by lifestyle changes and interstate migration. While buyer activity has moderated in some markets nationally, demand for newly built dwellings on the Gold Coast continues to gain momentum as purchasers increasingly prioritise lifestyle, amenity, wellbeing, liveability and long-term investment potential.

&nbsp;

[smartcode_project:default project_id=150414 project_image_fid=372743]

Homecorp CEO Ron Bakir says buyers today are looking for more than just a home.

"What we are seeing is a shift in how people define value in property," Bakir says.

"What attracts residents to new developments is a desire for more than just a residence. They are looking for a place that complements their lifestyle, supports their wellbeing and reflects the way they want to live into the future.

"Lifestyle, longevity, proactive health, wellbeing, connection and a sense of community are increasingly shaping purchasing decisions, particularly on the Gold Coast, where these factors continue to be a major drawcard."

[smartcode_project:default project_id=150414 project_image_fid=372744]

Bakir says Homecorp is responding to this shift through an approach that places greater emphasis on design, amenity and experience working together to create places that feel considered, connected and enduring in value.

Inspired by Eastern European design, Florence Residences will comprise 120 apartments alongside a private residents-only wellness club featuring a resort-style rooftop pool, hot and cold plunge pools, a spa retreat, contemporary gymnasium, and a spacious yoga and Pilates studio.

The development will also feature a residents-only lounge with private dining facilities and a rooftop bar, premium outdoor entertaining areas, a hotel-style lobby lounge, generous bike parking, and pet-friendly amenities including a heated dog wash.

[smartcode_project:default project_id=150414 project_image_fid=372742]

A limited number of apartments remain available, with an exclusive collection of four-bedroom sub-penthouses set to be released in the coming months.

Florence is one of the latest additions to Homecorp's expanding multi-billion-dollar property portfolio, which also includes plans for a <a href="https://www.apartments.com.au/news/qld/homecorp-lodges-plans-for-260-million-moroccan-bathhouse-inspired-tower-in-budds-beach">$260 million development in Budds Beach</a> tailored to the growing wellness market.

A development application has been lodged for a 27-storey, 156-residence tower at 8–10 Acacia Avenue and 25–27 Oak Avenue, featuring a residents-only Moroccan spa-inspired sanctuary.

Apartments at Florence Residences are priced from $1,249,000, with construction expected to be completed by late 2027.

[smartcode_project_cta:default project_id=150414]

Joel Robinson

Buyers rush to Homecorp's Florence Residences as Gold Coast wellness trend gains momentum

The NSW Government has expanded its $1 billion Pre-sale Finance Guarantee program, broadening access for affordable housing providers and smaller residential developments as it seeks to accelerate housing delivery across the state.

The Minns Government says the program has already helped bring forward more than 600 homes across Sydney and regional NSW since launching in September 2025, with similar models now adopted in South Australia and Western Australia.

The latest changes, announced by Treasurer Daniel Mookhey and Minister for Planning and Public Spaces Paul Scully, are designed to improve access to finance for projects that have planning approval but are struggling to secure funding.

Among the key changes is an expansion of support for community housing providers. The program will now support up to 100 per cent affordable housing projects valued at up to $30 million when delivered by not-for-profit providers, while support for larger affordable housing developments will increase for projects worth up to $80 million.

The government says the changes will help accelerate the delivery of housing for low-income workers, older people, people living with disability, and those at risk of homelessness, while reducing reliance on direct grants or subsidised loans to bridge funding gaps.

The eligibility criteria for smaller residential developments have also been broadened. The previous $5 million minimum project value threshold has been removed and replaced with a requirement that projects deliver at least four homes.

Support has also increased for projects delivering fewer than 20 homes, with the guarantee now able to cover up to 75 per cent of dwellings in a development, capped at $30 million per project.

The changes are expected to particularly benefit smaller-scale and regional developments, which often face greater challenges meeting pre-sale requirements imposed by lenders.

Treasurer Daniel Mookhey said the scheme demonstrates how government can use its balance sheet to stimulate housing supply without relying solely on taxpayer-funded grants.

"The Pre-sale Finance Guarantee shows how this Government is using its balance sheet to reduce risk and unlock private investment, enabling new homes to move from design to construction faster," Mookhey said.

"This landmark reform allows us to deliver homes for working families at a lower cost to taxpayers, while also maintaining strong financial discipline."

Planning Minister Paul Scully said the program had already proven effective in bringing stalled projects to market.

"The Pre-sale Finance Guarantee has already proven it can unlock stalled projects and accelerate housing delivery by giving lenders the confidence they need to back good developments," Scully said.

"These changes will allow more affordable housing and smaller developments to access support so more homes can be built faster where communities need them most."

Housing Minister Rose Jackson said the expansion would help community housing providers overcome financing barriers that often delay projects.

"We know community housing providers are ready to build more homes, too often they're held back by barriers to finance," Jackson said.

"Expanding the Pre-sale Finance Guarantee helps remove those barriers so more affordable homes can get off the ground sooner."

The announcement was welcomed by the Property Council of Australia, which has long advocated for measures aimed at improving project feasibility and access to finance.

Property Council NSW Executive Director Katie Stevenson described the expansion as a practical intervention that addresses one of the most immediate constraints on housing delivery.

"This is exactly the kind of practical intervention we need right now, focused on getting projects out of the ground, not just approved," Stevenson said.

"It builds on a model the Property Council has worked closely with government to develop following calls for such a scheme ahead of last year's NSW Budget, so it's great to see it being expanded."

Stevenson said the reforms would help unlock projects that are ready to proceed but have been delayed by financing challenges. However, she noted that broader feasibility issues remain a significant barrier to increasing housing supply.

"The biggest challenge in NSW housing today is delivery. Too many projects have planning approval but are simply not financially viable to proceed under current settings," she said.

Speaking at the Property Council's NSW Housing Summit, Housing Minister Rose Jackson acknowledged that feasibility and financing pressures continue to constrain housing delivery, while reaffirming the government's commitment to work with industry on solutions.

Stevenson said the government's recognition of those challenges was encouraging ahead of next week's state budget.

"It's positive to see the government clearly recognising that feasibility pressures are now a binding constraint on supply," she said.

"With the Budget just days away, the focus must be on backing delivery, making sure projects stack up, finance can flow, and more homes can move from approval to construction."

The expanded Pre-sale Finance Guarantee forms part of the NSW Government's broader housing agenda, which also includes planning reforms, the NSW Housing Pattern Book, and a series of rezonings intended to increase housing capacity across the state.

NSW expands Pre-sale Finance Guarantee to unlock more affordable and regional housing

Design-led developer-builder Lowe Living has unveiled its latest residential development, Jardin House, marking its first foray into Melbourne's blue-chip City of Boroondara.

Located a short walk from Camberwell Junction, <a href="https://www.apartments.com.au/new-apartments/jardin-house-by-lowe-living-camberwell-335-camberwell-road-camberwell-vic-3124">Jardin House</a> has been designed to appeal to affluent local downsizers and established families seeking a low-maintenance alternative to the large homes that have long defined Camberwell and surrounding suburbs.

The project will comprise a collection of two and three-bedroom apartments ranging from 92 sqm to 280 sqm, alongside a limited number of penthouse residences featuring rooftop terraces spanning more than 100 sqm, with optional private pools.

&nbsp;

[smartcode_project:default project_id=146717 project_image_fid=372212]

Lowe Living Co-Founder and Managing Director Tim Lowe said Camberwell represented a natural next step for the developer as it expands into some of Melbourne's most tightly held residential markets.

"Jardin House is an important project for our team as it marks the next evolution of our portfolio into different well-established blue-chip pockets of Melbourne," Lowe said.

"Camberwell, with its incredible walkability, family-led neighbourhood feel and superb access to education and transport, makes it a natural choice for us."

[smartcode_project:default project_id=146717 project_image_fid=372227]

Designed by Tristan Wong Architects, with interiors by Hecker Guthrie and landscaping by Acre, the development takes inspiration from the Art Deco architecture that remains a defining feature of many of Camberwell's established streets.

A curved facade, arched openings, textured brickwork and sculpted forms reference the suburb's architectural heritage, while extensive landscaping softens the building's presence and creates a strong connection to the surrounding tree-lined streetscape.

The project will be set behind a secure gated entrance, with residents arriving through landscaped gardens designed to create a transition between the public realm and private residences.

Inside, the residences feature natural stone and timber finishes, full-height glazing, Miele appliances and generous open-plan living areas designed for long-term owner occupation.

[smartcode_project:default project_id=146717 project_image_fid=372225]

While the apartments themselves have been designed to attract discerning owner-occupiers, it is the amenity offering that sets Jardin House apart from many other boutique projects currently launching across Melbourne.

The centrepiece is a 350 sqm private bathhouse curated in partnership with Aurora Spa &amp; Bathhouse founder Lyndall Mitchell.

The wellness precinct includes mineral pools, hydrotherapy experiences, a Himalayan salt room, sauna, steam room, cold plunge pools and dedicated relaxation spaces, creating what Lowe Living describes as a private wellness retreat exclusively for residents.

[smartcode_project:default project_id=146717 project_image_fid=372222]

The collaboration follows Lowe Living's recent partnership with Aurora at Maison Savoy in Brighton, although Jardin House is the first project to incorporate both indoor and outdoor wellness experiences.

Emma Lowe, Co-Founder and Managing Director of Lowe Living, said wellness was becoming an increasingly important consideration for apartment buyers.

"Collaborating with Lyndall Mitchell from Aurora Spa &amp; Bathhouse for a second time is an intentional nod to creating residences that are more than just homes, but a way to enrich the lives of our residents through wellness and longevity," Lowe said.

The amenity offering is complemented by a Technogym fitness studio, residents' lounge, private dining spaces and concierge services.

The launch comes as developers increasingly target Melbourne's established eastern suburbs, where rising land values, ageing housing stock and growing downsizer demand are creating opportunities for boutique apartment projects.

Lowe said the company expects significant generational wealth transfer across suburbs such as Camberwell in coming years, creating further demand for luxury apartment living.

"Camberwell is a blue-chip suburb where homes regularly transact for multiple millions of dollars," he said.

"The generational change of wealth in these locations expected in the coming years is significant, so we see an opportunity to create exclusive residences that appeal to older families and downsizers in order to meet this demand."

Apartments at Jardin house start from $1,195,000. The project forms part of Lowe Living's near-$1 billion portfolio of new developments across Melbourne.

[smartcode_project_cta:default project_id=146717]

Lowe Living launches Jardin House in Camberwell

As <a href="https://www.apartments.com.au/developments/north-sydney-nsw-2060">North Sydney</a> continues its transition from a commercial centre into a more layered residential and lifestyle precinct, a new generation of apartment developments is reshaping expectations around scale, amenity, and long-term liveability.

Improved transport connections through the Victoria Cross Metro, continued investment in dining and public spaces, and a constrained supply of new luxury apartments have sharpened demand for homes that combine proximity to the CBD with the privacy and outlook traditionally associated with harbourside houses.

At 177 Walker Street, <a href="https://www.apartments.com.au/developers/aland">ALAND</a>’s new apartment development <a href="https://www.apartments.com.au/new-apartments/the-walden-north-sydney-177-walker-street-north-sydney-nsw-2060">The Walden</a> enters the market with a distinctly residential approach to high-rise living. The 30-level tower will deliver 161 residences, ranging from one-bedroom apartments through to sub-penthouses and a full-floor penthouse, all oriented to capture uninterrupted views across Sydney Harbour, the Opera House, and out toward the Pacific Ocean.

[smartcode_project:default project_id=134323 project_image_fid=6395]

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, the project takes advantage of the site’s natural topography and elevated position above the harbour. Rather than relying on density alone, the architecture focuses on outlook, orientation, and spatial flow, with every apartment occupying a corner position to maximise natural light and cross ventilation.

Rothelowman says the site itself shaped much of the architectural response.

“The site has a long history in terms of its inevitable transformation and when we came in, we took inspiration from the idea of reestablishing a sense of the site’s natural terrain and fall. Our scheme aims to integrate with the terrain and the landscape, using the undulating site to slowly reveal glimpses and views of the harbour. The rotation of the tower off grid means every apartment has a view and is naturally cross ventilated. The building's colour palette is quintessentially Sydney, with bronze and sandstone and a luminescent green colour in the glass, making it very earthy and grounded in its location.”

[smartcode_project:default project_id=134323 project_image_fid=6399]

Inside the residences, the emphasis moves toward larger-format living typically associated with standalone homes. Kitchens sit at the centre of the apartments, connecting directly to open-plan dining and living areas before extending outward into expansive winter gardens and balconies. Calacatta marble, bespoke joinery, integrated appliances, and custom metal detailing are used throughout, while three distinct interior palettes, Terrace, Opera, and Harbour, allow buyers to personalise the spaces without compromising the architectural consistency of the project.

The larger residences place particular attention on separation between entertaining and private zones. In many apartments, master suites occupy the outer corners of the floorplates, allowing bedrooms to benefit from floor-to-ceiling glazing and harbour outlooks independent of the living spaces. Dressing rooms and ensuites continue the material palette through fluted detailing, freestanding baths, and layered stone finishes.

Rothelowman says the design intent centred on creating homes that feel enduring rather than transient.

“Our philosophy is all about the way people live in these spaces, and we wanted to create homes that reflect the quality of life in this unique Sydney location. The apartments showcase expansive living spaces that are generous, sophisticated, and bold, with the ability to connect with views throughout each apartment.”

[smartcode_project:default project_id=134323 project_image_fid=353235]

A separate four-storey amenity building known as The Pavilion expands the residential offering beyond the apartments themselves. Positioned alongside the tower, the building consolidates wellness, recreation, and social spaces into a dedicated resident retreat. Facilities include a 20-metre rooftop pool and sundeck, sauna, spa, ice bath, wellness studio, gymnasium, concierge service, wine cellar, residents’ lounge, private dining spaces, and dedicated co-working areas with meeting rooms and boardroom facilities.

The amenity mix reflects the buyer profile emerging in North Sydney, where owner-occupiers and downsizers are increasingly prioritising convenience, apartment scale, and long-term usability over purely investment-driven decisions.

The Walden also represents a significant milestone for ALAND, marking the company’s first major move into Sydney’s inner-city luxury apartment market after more than two decades delivering large-scale residential communities across Greater Sydney. Founder Andrew Hrsto says the Walker Street site stood apart because of both its positioning and its rarity.

[smartcode_project:default project_id=134323 project_image_fid=6390]

“As a company, we had been searching for a site in one of Sydney’s blue-chip locations, spanning the Eastern Suburbs, the Sydney CBD and the North Shore, and when we had the opportunity to purchase this site, we immediately recognised that it could be something iconic.”

At launch, The Walden recorded more than $103 million in sales, with buyers drawn to the project’s harbour positioning, apartment scale, and proximity to the Metro, which now connects North Sydney to Barangaroo in three minutes and Martin Place in five.

ALAND has commenced construction, and is expecting a completion date in 2028.

[smartcode_project_cta:default project_id=134323]

The Walden pairs house-scale living with North Sydney connectivity

The ACT will become the first jurisdiction in Australia to abolish stamp duty for all first home buyers, with no income caps and no property price thresholds from 1 July.

The move, announced as part of the ACT Budget, completes a key election commitment from the Barr Government and removes what Chief Minister Andrew Barr described as one of the biggest barriers to entering the housing market. The reform forms part of the ACT's long-running transition away from transaction taxes and towards a broader-based property tax system.

"This budget marks a major milestone in our long-term tax reform program," Barr said, adding that the government had maintained a sustained focus on removing barriers to home ownership. He said stamp duty had long been one of the largest upfront hurdles facing buyers and that from July, "that barrier is gone" for first home buyers in the Territory.

[smartcode_project:default project_id=139989 project_image_fid=350986]

The changes come alongside a range of measures designed to encourage new housing supply, including support for the delivery of so-called "missing middle" housing such as terraces, townhouses and low-rise multi-unit developments.

The announcement has renewed debate around whether the ACT's approach could provide a blueprint for improving housing affordability nationally.

New research from OurTop10.com.au, conducted by Primara Research, suggests the Territory's decade-long reform agenda has produced outcomes unmatched elsewhere in Australia.

While stamp duty costs have increased by an average 67 per cent nationally over the past decade, the ACT has recorded growth of just 15 per cent, the lowest increase of any jurisdiction.

The Territory has also emerged as one of the strongest performers on housing delivery. Based on population-weighted housing targets, the ACT is sitting less than one per cent behind its target. Victoria is the next closest at seven per cent behind, while the national average sits 25 per cent below target. New South Wales is tracking 39 per cent behind.

The latest reform removes one of the final barriers facing first home buyers in Canberra.

[smartcode_project:default project_id=139989 project_image_fid=359152]

The average Australian home buyer currently pays $61,714 in stamp duty. In the ACT, that figure is $38,399 despite the Territory having the third-highest median house price in the country.

Until now, the ACT's first home buyer concession scheme only applied to purchases up to $1.02 million, around $51,000 below Canberra's median house price of $1.071 million. In practical terms, many first home buyers were unable to access the median-priced home without losing the concession.

From July, those restrictions disappear.

Every first home buyer in the ACT will pay no stamp duty, regardless of income or purchase price.

Canberra remains one of Australia's most expensive housing markets, with dwelling values increasing 82 per cent over the past decade. However, that growth ranks only 11th among Australia's 15 major housing markets, suggesting affordability pressures have been less severe than in many other parts of the country.

Simon Ma, CEO of OurTop10.com.au, said the latest reforms recognise that many first home buyers have simply outgrown thresholds set years ago.

"Many first home buyers aren't just looking for a way onto the ladder, they want a home their family can actually live in," Ma said.

"In a market where the median house price is over a million dollars, a concession scheme that cuts out at $1.02 million was never going to get them there.

"Removing the ceiling entirely means ACT first home buyers can now pursue the home they actually want, rather than limiting themselves to a price point designed for a very different market."

Whether other states follow remains to be seen. But at a time when most jurisdictions are struggling to improve affordability while also increasing housing supply, the ACT has quietly become the national test case for both.

15% stamp duty growth. Just 1% off the national housing target. Zero stamp duty for FHBs. Is the ACT the blueprint for the great Australian dream?

Larry Schlesinger

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News