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Residential developer AV Jennings, which is celebrating its 80th birthday this year, claims the current political climate following the last Federal election may be delaying purchasing decisions, as it forecasts a net annual loss after write-downs of up to $32 million.
In market guidance released ahead of the August 8 full-year results announcement, AV Jennings expects to make a post-tax profit of $5.1 million before accounting for asset write-downs of between $32 million and $37 million.
The write-downs are mainly in regional areas of Queensland and NSW with the company “reassessing its operational strategy in various projects” and revising its "bases and assumptions to determine the carrying value of its assets”.
The developer says there has been “further deteriorating residential market conditions in early 2012, especially in many regional areas and the delay in the timing and the extent of the forecast recovery in Queensland and NSW which had been expected in 2012”.
This, the developer said, had resulted in “reduced volumes and margins from those forecasted”.
NSW residential projects include Seacrest in Sandy Beach, just north of Coffs Harbour, with land priced around $160,000, and house and land packages around $450,000.
Queensland residential projects include the Glenrowan Estate in the village of Walkerston, just west of Mackay with lots priced around the $170,000 mark.
Aside from the political uncertainty, AV Jennings says negative consumer sentiment has been driven by “macro-economic” events in Europe and the US, and the impact of the slowdown in China on Australia.
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lschlesinger-FZcF9M3vE6

AV Jennings says Federal political climate hurting residential sales as it forecasts financial year loss 

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Economists are nearly all in agreement that the RBA will leave the cash rate unchanged at 3.5% at its next board meeting on August 7.
Twenty out of 24 economists polled by Bloomberg just before the weekend expect the RBA to continue to hold fire, up from 15 in the previous survey, a week prior.
Key data that may influence the RBA’s decision on the cash rate includes the release of private credit growth figures on Tuesday, building approvals data on Tuesday, capital city house price figures on Wednesday and retail trade figures on Thursday.
The prospects for a September rate cut are better, but also slim, with 17 out 24 economists expecting the RBA to hold fire again.
There are some prominent economists tipping a rate cut in August.
Shane Oliver, chief economist at AMP Capital Investors, expects the RBA to cut the cash rate by 25 basis points on August 7 as does Stephen Koukoulas from Market Economics.
Koukoulas is by far the most bullish economist on the cash rate among those surveyed by Bloomberg.
He is forecasting the cash rate to fall to 2.75% by year end and to fall another 25 basis points to 2.5% in the first quarter of 2013.
The majority of economists (13 out of 24) expect a cash rate of 3.25% in the first quarter of 2013.
Those readers thinking about refinancing their home loan should sign up for Property Observer’s free webinar: <a target="_blank" href="https://propertyobserver.us2.list-manage1.com/track/click?u=24bd0766a834290948593f5aa&amp;id=73e60d1a88&amp;e=add64da266">Refinancing and the </a><a target="_blank" href="https://propertyobserver.us2.list-manage.com/track/click?u=24bd0766a834290948593f5aa&amp;id=9814caeb06&amp;e=add64da266">interest rates riddle</a>, taking place on Tuesday, 31 July a 12:30pm AEST.
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Economist don’t foresee RBA cash rate cut in August and rate cut also unlikely in September: Bloomberg survey

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The Reserve Bank could cut the cash rate another four times in the current rate-cutting cycle, according to Macquarie Group senior economist Brian Redican.
Redican made this observation while speaking at the Real Estate Institute of Victoria’s (REIV) Commercial &amp; Industrial Economic Forecast Luncheon on Friday.
They followed a question from luncheon host, Peter Switzer, who asked if he and BIS Shrapnel chief economist Frank Gelber (also speaking at the luncheon) agreed with former Gillard government economic adviser Stephen Koukoulas and soon to be Business Spectator commentator that four more rate cuts are likely.
Koukoulas is tipping a cash rate cut of 2.75% by year end and one more in the first quarter of 2013, taking the cash rate to 2.5%.
Redican says while the mining boom is driving the economy other parts are struggling.
“Housing construction could rise a little bit in 2013, but it’s not going to be a major driver of growth.
“And the other thing we have seen is a lot of white-collar unemployment… and the reason that’s important is that they are your potential investors in the property market."
As a result, Redican says you won’t get the pick-up in growth, meaning the RBA will have keep doing what it has done over the past 12 months is “stepping in and very begrudgingly and reluctantly” cutting rates, otherwise the economy will take another turn down.
But Gelber disagreed, and expects just one more interest rate cut in the cycle – and not in August – unless things turn sour.
“Interest rates take awhile to work their magic on the housing market and the economy and we think the RBA will sit back and wait."
However, if things do turn “sour” Gelber says the RBA has the fire power to act.
Redican added that he believed we may be entering into a world where monetary policy is less effective, because the structure is so different.
In their presentations both Gelber and Redican highlighted that consumers were continuing to save and that interest rate cuts were being used to pay off more of the mortgage rather than spend the money.
“The golden age of retailing has come and gone,” said Gelber.
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 on Tuesday, 31 July a 12:30pm AEST.
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Four more cash rate cuts still possible in current cycle: Macquarie Group's Brian Redican

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Trying to work out whether the Sydney, Melbourne or Brisbane housing market is going up or down?
Or just trying to work out whether you’re buying something at or below the median price?
It all depends on which housing data provider you choose to reference  - they all use different methodologies to calculate their indexes and hence will never be in agreement.
RP Data-Rismark, Residex and Australian Property Monitors (APM) have all released their June quarter data, so direct comparisons can now be made.
(The ABS will put out its June eight capital city indexes on August 1.)
In just two markets – Brisbane houses and Melbourne units – do all three providers agree on the direction they are heading…in both cases down.
The REIV released June quarter  data for Melbourne showing house prices up 2.9% to a median of $535,000 - the strongest quarterly gain recorded by all data providers.
Rarely are the national data providers within $10,000 of each other on the median house or unit price.
For example, RP Data-Rismark has the Sydney house price at a median of $616,000.
Residex says the median is $50,000 higher at $666,500, while APM’s Sydney median house price is in between the two at $642,425.
Some of the differences are startling.
<ul>
<li>Residex says Darwin house prices rose over 7% over the June quarter to a median of $511,500, while APM and RP Data both have Darwin house prices falling. 
</li>
<li>Residex says Perth house prices fell by more than 4% of the June quarter, while APM and RP Data have the market treading water. </li>
</ul>
<ul>
<li>RP Data says Hobart unit prices fell almost 10% over the June quarter, while Residex has them as unchanged, and APM records a smaller 3.9% decline.</li>
</ul>
Here’s a breakdown of how the three commercial data providers have assessed the June quarter performance of the main capital city markets:
For markets where the price has moved by less than 0.2% either way, they have been judged for the purposes of comparison as "unchanged”:
Sydney houses
<table border="1" cellpadding="0" cellspacing="0"><tbody>
<tr>
<td valign="top" width="216">
RP Data 
</td>
<td valign="top" width="214">
Residex
</td>
<td valign="top" width="185">
APM
</td>
</tr>
<tr>
<td valign="top" width="216">
Median price: $616,000
</td>
<td valign="top" width="214">
Median price: $666,500
</td>
<td valign="top" width="185">
Median price: $642,425
</td>
</tr>
<tr>
<td valign="top" width="216">
DOWN over quarter: -1.4%
</td>
<td valign="top" width="214">
UNCHANGED
</td>
<td valign="top" width="185">
UNCHANGED
</td>
</tr>
</tbody></table>
Melbourne houses
<table border="1" cellpadding="0" cellspacing="0"><tbody>
<tr>
<td valign="top" width="216">
RP Data 
</td>
<td valign="top" width="214">
Residex
</td>
<td valign="top" width="185">
APM
</td>
</tr>
<tr>
<td valign="top" width="216">
Median price: $517,500
</td>
<td valign="top" width="214">
Median price: $555,500
</td>
<td valign="top" width="185">
Median price: $531,167
</td>
</tr>
<tr>
<td valign="top" width="216">
DOWN over quarter: -3.1%
</td>
<td valign="top" width="214">
DOWN over quarter: -1.31%
</td>
<td valign="top" width="185">
UP over quarter: +1.6%
</td>
</tr>
</tbody></table>
Brisbane houses
<table border="1" cellpadding="0" cellspacing="0"><tbody>
<tr>
<td valign="top" width="216">
RP Data 
</td>
<td valign="top" width="214">
Residex
</td>
<td valign="top" width="185">
APM
</td>
</tr>
<tr>
<td valign="top" width="216">
Median price: $415,000
</td>
<td valign="top" width="214">
Median price: $412,500
</td>
<td valign="top" width="185">
Median price: $427,963
</td>
</tr>
<tr>
<td valign="top" width="216">
DOWN over quarter: -0.6%
</td>
<td valign="top" width="214">
DOWN over quarter: -3.75%
</td>
<td valign="top" width="185">
DOWN over quarter: -1.3%
</td>
</tr>
</tbody></table>
Perth houses
<table border="1" cellpadding="0" cellspacing="0"><tbody>
<tr>
<td valign="top" width="216">
RP Data 
</td>
<td valign="top" width="214">
Residex
</td>
<td valign="top" width="185">
APM
</td>
</tr>
<tr>
<td valign="top" width="216">
Median price: $475,000
</td>
<td valign="top" width="214">
Median price: $467,000
</td>
<td valign="top" width="185">
Median price: $536,151
</td>
</tr>
<tr>
<td valign="top" width="216">
UNCHANGED
</td>
<td valign="top" width="214">
DOWN over quarter: -4.26%
</td>
<td valign="top" width="185">
UNCHANGED
</td>
</tr>
</tbody></table>
Adelaide houses
<table border="1" cellpadding="0" cellspacing="0"><tbody>
<tr>
<td valign="top" width="216">
RP Data 
</td>
<td valign="top" width="214">
Residex
</td>
<td valign="top" width="185">
APM
</td>
</tr>
<tr>
<td valign="top" width="216">
Median price: $383,250
</td>
<td valign="top" width="214">
Median price: $385,500
</td>
<td valign="top" width="185">
Median price: $436,285
</td>
</tr>
<tr>
<td valign="top" width="216">
UP over quarter: +1.7%
</td>
<td valign="top" width="214">
DOWN over quarter :-0.34%
</td>
<td valign="top" width="185">
UNCHANGED
</td>
</tr>
</tbody></table>
Canberra houses
<table border="1" cellpadding="0" cellspacing="0"><tbody>
<tr>
<td valign="top" width="216">
RP Data 
</td>
<td valign="top" width="214">
Residex*
</td>
<td valign="top" width="185">
APM
</td>
</tr>
<tr>
<td valign="top" width="216">
Median price: $520,000
</td>
<td valign="top" width="214">
Median price: $529,000
</td>
<td valign="top" width="185">
Median price: $575,825
</td>
</tr>
<tr>
<td valign="top" width="216">
UP over quarter: +0.8%
</td>
<td valign="top" width="214">
DOWN over quarter: -1.41%
</td>
<td valign="top" width="185">
UP over quarter: +1.1%
</td>
</tr>
</tbody></table>
Darwin houses
<table border="1" cellpadding="0" cellspacing="0"><tbody>
<tr>
<td valign="top" width="216">
RP Data 
</td>
<td valign="top" width="214">
Residex
</td>
<td valign="top" width="185">
APM
</td>
</tr>
<tr>
<td valign="top" width="216">
Median price: $510,000
</td>
<td valign="top" width="214">
Median price: $511,500
</td>
<td valign="top" width="185">
Median price: $608,843
</td>
</tr>
<tr>
<td valign="top" width="216">
DOWN over quarter: - 1.9%
</td>
<td valign="top" width="214">
UP over quarter: +7.13%
</td>
<td valign="top" width="185">
DOWN over quarter: -1.2%
</td>
</tr>
</tbody></table>
Hobart houses
<table border="1" cellpadding="0" cellspacing="0"><tbody>
<tr>
<td valign="top" width="216">
RP Data 
</td>
<td valign="top" width="214">
Residex
</td>
<td valign="top" width="185">
APM
</td>
</tr>
<tr>
<td valign="top" width="216">
Median price: $356,500
</td>
<td valign="top" width="214">
Median price: $357,000
</td>
<td valign="top" width="185">
Median price: $322,584
</td>
</tr>
<tr>
<td valign="top" width="216">
DOWN over quarter: -0.6%
</td>
<td valign="top" width="214">
DOWN over quarter: -4.15%
</td>
<td valign="top" width="185">
UP over quarter: +0.5%
</td>
</tr>
</tbody></table>
 
Sydney units
<table border="1" cellpadding="0" cellspacing="0"><tbody>
<tr>
<td valign="top" width="216">
RP Data 
</td>
<td valign="top" width="214">
Residex
</td>
<td valign="top" width="185">
APM
</td>
</tr>
<tr>
<td valign="top" width="216">
Median price: $477,000
</td>
<td valign="top" width="214">
Median price: $490,500
</td>
<td valign="top" width="185">
Median price: $464,124
</td>
</tr>
<tr>
<td valign="top" width="216">
UP over quarter: +3.3%
</td>
<td valign="top" width="214">
UNCHANGED
</td>
<td valign="top" width="185">
UNCHANGED
</td>
</tr>
</tbody></table>
Melbourne units
<table border="1" cellpadding="0" cellspacing="0"><tbody>
<tr>
<td valign="top" width="216">
RP Data 
</td>
<td valign="top" width="214">
Residex
</td>
<td valign="top" width="185">
APM
</td>
</tr>
<tr>
<td valign="top" width="216">
Median price: $430,000
</td>
<td valign="top" width="214">
Median price: $428,000
</td>
<td valign="top" width="185">
Median price: $392,862
</td>
</tr>
<tr>
<td valign="top" width="216">
DOWN over quarter: -5%
</td>
<td valign="top" width="214">
DOWN over quarter: -0.91%
</td>
<td valign="top" width="185">
DOWN over quarter: -1.2%
</td>
</tr>
</tbody></table>
Brisbane units
<table border="1" cellpadding="0" cellspacing="0"><tbody>
<tr>
<td valign="top" width="216">
RP Data 
</td>
<td valign="top" width="214">
Residex
</td>
<td valign="top" width="185">
APM
</td>
</tr>
<tr>
<td valign="top" width="216">
Median price: $365,000
</td>
<td valign="top" width="214">
Median price: $349,500
</td>
<td valign="top" width="185">
Median price: $356,744
</td>
</tr>
<tr>
<td valign="top" width="216">
DOWN over quarter: -0.7%
</td>
<td valign="top" width="214">
UNCHANGED
</td>
<td valign="top" width="185">
DOWN over quarter: -1.7%
</td>
</tr>
</tbody></table>
Perth units
<table border="1" cellpadding="0" cellspacing="0"><tbody>
<tr>
<td valign="top" width="216">
RP Data 
</td>
<td valign="top" width="214">
Residex
</td>
<td valign="top" width="185">
APM
</td>
</tr>
<tr>
<td valign="top" width="216">
Median price: $405,000
</td>
<td valign="top" width="214">
Median price: $421,000
</td>
<td valign="top" width="185">
Median price: $348,960
</td>
</tr>
<tr>
<td valign="top" width="216">
UP over quarter: +1.4%
</td>
<td valign="top" width="214">
UP over quarter: +7.45%
</td>
<td valign="top" width="185">
DOWN over quarter: -4.5%
</td>
</tr>
</tbody></table>
Adelaide units
<table border="1" cellpadding="0" cellspacing="0"><tbody>
<tr>
<td valign="top" width="216">
RP Data 
</td>
<td valign="top" width="214">
Residex
</td>
<td valign="top" width="185">
APM
</td>
</tr>
<tr>
<td valign="top" width="216">
Median price: $318,750
</td>
<td valign="top" width="214">
Median price: $305,000
</td>
<td valign="top" width="185">
Median price: $296,802
</td>
</tr>
<tr>
<td valign="top" width="216">
DOWN over quarter: -2.3%
</td>
<td valign="top" width="214">
UNCHANGED
</td>
<td valign="top" width="185">
UP over quarter: +1%
</td>
</tr>
</tbody></table>
Canberra units
<table border="1" cellpadding="0" cellspacing="0"><tbody>
<tr>
<td valign="top" width="216">
RP Data 
</td>
<td valign="top" width="214">
Residex*
</td>
<td valign="top" width="185">
APM
</td>
</tr>
<tr>
<td valign="top" width="216">
Median price: $408,000
</td>
<td valign="top" width="214">
Median price: $436,000
</td>
<td valign="top" width="185">
Median price: $421,339
</td>
</tr>
<tr>
<td valign="top" width="216">
DOWN over quarter: -1.7%
</td>
<td valign="top" width="214">
UP over quarter: +5.38%
</td>
<td valign="top" width="185">
UP over quarter: +2.5%
</td>
</tr>
</tbody></table>
Darwin units
<table border="1" cellpadding="0" cellspacing="0"><tbody>
<tr>
<td valign="top" width="216">
RP Data 
</td>
<td valign="top" width="214">
Residex
</td>
<td valign="top" width="185">
APM
</td>
</tr>
<tr>
<td valign="top" width="216">
Median price: $419,250
</td>
<td valign="top" width="214">
Median price: $407,000
</td>
<td valign="top" width="185">
Median price: $384,384
</td>
</tr>
<tr>
<td valign="top" width="216">
DOWN over quarter: -0.6%
</td>
<td valign="top" width="214">
UNCHANGED
</td>
<td valign="top" width="185">
DOWN over quarter: -2.9%
</td>
</tr>
</tbody></table>
Hobart units
<table border="1" cellpadding="0" cellspacing="0"><tbody>
<tr>
<td valign="top" width="216">
RP Data 
</td>
<td valign="top" width="214">
Residex
</td>
<td valign="top" width="185">
APM
</td>
</tr>
<tr>
<td valign="top" width="216">
Median price: $279,000
</td>
<td valign="top" width="214">
Median price: $265,000
</td>
<td valign="top" width="185">
Median price: $260,393
</td>
</tr>
<tr>
<td valign="top" width="216">
DOWN over quarter: -9.8%
</td>
<td valign="top" width="214">
UNCHANGED
</td>
<td valign="top" width="185">
DOWN over quarter: -3.9%
</td>
</tr>
</tbody></table>
 
*Residex Canberra figures for the ACT 
For a break down of the RP Data-Rismark Daily Home Value Index <a href="https://www.propertyobserver.com.au/trends/change-in-median-prices-dont-inform-on-housing-market-direction-rp-data-rismark/2012073055768">click here</a>.
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House prices: The latest June quarter data may not lie, but it’s rarely in agreement

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The extent of the decline of property values in places like Port Douglas, Cairns and the Gold Coast, where close to one in five properties have lost up to 10% of their value since being purchased, has been revealed in the latest RP Data Value Accumulation Report for the March quarter.



Previously called the Equity Report, it shows that nationally, the housing market remains a solid medium- and long-term investment, with only 5.4% of Australian homes currently valued at either less or the same amount as what they were purchased for – an improvement from 6.1% of homes recorded at the end of the December 2011 quarter.



Conversely, more than 41% of Australian homes are worth more than twice what their owners originally purchased them for.



However, the report reveals the struggles facing Queensland regional and coastal areas not feeling the benefits of the resources boom.



According to RP Data, nearly one in five homes (19.9%) in tropical Far North Queensland are now worth less than or the same as their previous purchase price – nearly four times higher than the national rate. 



This region includes heavily tourism-dependent places like Cairns and Port Douglas on the coast and inland, the Atherton Tablelands, which have been hit by the high Australian dollar and a spate of natural disasters.



The struggling Gold Coast market is second on the list (16.8% of homes not appreciating in value) followed by the state’s other struggling coastal market, the Sunshine Coast (14.3% of homes).



The Gold Coast and Far North also have the lowest proportion of properties worth double the initial purchase price at just 30.3% of all homes.



<img width="468" height="206" src="/images/stories/2012/greatestpercentdwelling.jpg" alt="greatestpercentdwelling">

 

Over the March quarter, the report found that the instances of negative value accumulation or stability has fallen in most regions of Queensland, but the greatest declines had been recorded in West Moreton (-2.7 percentage points), Far North (-2.0 percentage points) and Gold Coast (-1.9 percentage points). 



The list of those regions that have recorded the greatest percentage of dwellings worth less than or equal to their purchase price also includes lifestyle markets in Western Australia, Richmond-Tweed in New South Wales and Wide Bay-Burnett in Queensland. 



RP Data research analyst Cameron Kusher says this is reflective of the weaker market conditions across many lifestyle regions. 

In contrast, Victoria and Melbourne, have had the greatest level of value accumulation of any state or capital city.



This has been helped by the fact that Victorian and Melbourne properties tend to be owned for a longer length of time than homes in other parts of the country – 9.3 years in Melbourne, the highest hold period across Victoria.



In contrast, Queensland and South Australia, properties tend to have a higher turnover and subsequently, value accumulation in these states has generally been lower than in other states.
The report found that just 3.3% of Victorian homes and 3.5% of Melbourne homes are valued at the same or less than their purchase prices - better than NSW (3.9%) and Sydney (3.6%), the next best performing state and capital city markets.



This is up though from 2.8% of Sydney homes worth less than or equal to their initial purchase price recording at the same time last year - highlighting the impact on value accumulation that the fall in home values has had over the past year.



Victoria (50.3%) and Melbourne (51.6%) also have the highest proportion of homes that have doubled in value since being purchased, significantly higher than NSW (37.8%) and Sydney (37.2%).


Across Queensland, 9.6% of homes are worth less than or equal to their initial purchase price while 36.6% of homes are worth more than double their initial purchase price. 



At the end of the corresponding quarter in 2011, 3.7% of Queensland homes were worth less than or equal to their initial purchase price and 40.3% of homes were worth more than double.



Across South Australia, 6.5% of homes are worth less than or equal to their initial purchase price compared to just 2.1% of homes at the same time in 2011.



In Western Australia 6.8% of homes are worth less than or equal to their initial purchase price compared to just 3.5% of homes at the same time in 2011. 



Around 44.7% of Tasmanian homes and 44.6% of Hobart homes have doubled in value since their last purchase – the second best state and capital city housing markets on this measure.




However, the weaker Tasmanian market has been reflected in that proportion of Tasmanian homes now worth less than or equal to their initial price has nearly doubled from 3.1% to 6% since March last year. 



Over this same period, the proportion of Tasmanian homes worth more than double their initial purchase price has fallen from 48% a year ago to 44.7% in March 2012. 



The report measures the difference between the original purchase price and the current estimated value for over 8 million residential properties across the country. 

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Queensland’s tropical Far North and Gold Coast housing markets worst at accumulating value: RP Data

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<img alt="Novotel-St-Kilda-420x0" src="/images/stories/2012/Novotel-St-Kilda-420x0.gif" height="225" width="400">
Property tycoons Lindsay Fox and Max Beck are among those reported showing interest in the prized Novotel Melbourne St Kilda overlooking Port Phillip Bay, which has been marketed both locally and to international investors.
The hotel was listed for sale in June by Tourism Asset Holdings Limited (TAHL) with market observers expecting a price between $55 million and $60 million.
An international marketing campaign has been handled by Wayne Bunz and Mark Wizel of CBRE Hotels with expressions of interest closing yesterday.
The recently refurbished hotel, which has 211 rooms over six levels on a 5,791 square-metre site boasting 270-degree views of Port Phillip Bay, has reportedly caught the eye of Fox and Beck. Fox owns the nearby Luna Park.

The pair has undertaken a number of joint ventures together including Essendon airport and a retail project in the Melbourne suburbs, the Australian Financial Review reported.
Other buyers believed to be circling the Novotel, include Stewart Baron’s private development company Baron Corporation, as well as  local Asian investors and offshore Asian investors from Singapore Malaysia and Hong Kong.
Overseas investors identified as possible bidders include Singapore hotel magnate Michael Kum and Singapore-listed developer Chip Eng Seng Corporation.
The strong interest shown in the Novotel comes as a new report from hotel researchers STR Global was released this week, favouring the Brisbane and Perth hotel markets in the short term, but revealing very little new hotel stock set to be added to either the Sydney or Melbourne hotel markets in the next four years, keeping vacancy rates tight.
Th report revealed that Melbourne has a development pipelines comprising just 2% of total room stock with only Sydney having a smaller development pipeline of the major capital cities of 1.7%.
According to STR Global Melbourne had a 1.5% rise in occupancy to 76.9% and 0.5% growth in room rates to $176 over the past year.
In the Sydney CBD market, the occupancy rate fell to 84.2% while room rate growth was 2.4%.
The research compiled by STR Global indicates that there will be strong growth in Perth and Brisbane hotel room rates and occupancy levels over the next year driven by demand from the resources sector.
However, these markets could weaken in the medium term due to a strong pipeline of new hotel stock.
The hotel occupancy rate in Perth climbed 3.8% to 85.3% over the year while the average daily room rate rose 12.8% to $218, reported STR Global.
However, Perth will see an extra 881 new hotel rooms added to its existing stock over the next two to four years – around 9% of total room stock.
The Brisbane hotel daily room rate increased by 4% over the year to $185, while occupancy levels rose 1.1% to 79.1%.
Brisbane has an even bigger supply pipeline than Perth with an additional 1,300 rooms added – 11% of total room stock – over the next two to four years.
The latest Roy Morgan Research Holiday Tracking Survey for the May quarter found an increasing number of Australian plan to take a holiday over the next 12 months, but no increase in the percentage who will holiday at home.
According to Roy Morgan 68% of Australians (12.8 million) intend to take a holiday over the next year, up from 67% for the May 2011
However, only 55% will take their holiday in Australia, unchanged from last year but down from 57% in May 2007.
The percentage of Australians intending to go overseas for their next holiday is steady at 9% when compared to same period last year, although this has been slightly increasing over the past five years.
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Lindsay Fox and Max Beck circling Melbourne’s St Kilda Novotel, but Perth and Brisbane the short-term hotel sweet spots

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Aussie Home Loans chairman John Symond expects home mortgage interest rates to come down further following the low June inflation reading, “but not for a few months”.
Speaking to Channel Seven’s David Koch on Sunrise yesterday, Symond said the RBA would be happy with the low current rate of inflation (O.5% for the June quarter) as it keeps the cost of living down.
But it would want to wait and see what happens in Europe.
“The RBA is pretty happy with where Australia is at the moment. Unemployment is OK, the housing market is still tough, but all in all we are in reasonable shape – certainly better than anywhere else,” Symond said.
Symond says the RBA would want to keep “something up their sleeve” to act quickly if need be and “things start to slide”.
Symond was also questioned on demands from financial services minister Bill Shorten that banks reveal the interest rates they charge in different suburbs in order to be more transparent.
“I don’t know how you could do that,” Symond chuckled, “It would be pretty hard.”
But he said it was true that a bank may offer a rate half a percent cheaper to a low-risk first-home buyer with a big deposit wanting to borrow a $1 million than a struggling high-risk borrower in the suburbs.
And with this remark he moved swiftly into the message behind Aussie’s latest campaign “It’s smart to ask” calling on borrowers to ask their bank for a better deal and if they don’t get  one, to talk to an Aussie mortgage broker.
“The only way the banks reveal [the rates they are offering] is when you phone them up and demand a better deal.”
“That’s what people ought to be doing.”
Those readers thinking about refinancing their home loan should sign up for Property Observer’s free webinar: Refinancing and the <a href="https://propertyobserver.us2.list-manage.com/track/click?u=24bd0766a834290948593f5aa&amp;id=275fa2c69b&amp;e=add64da266" target="_blank">interest rates riddle</a> taking place on Tuesday 31 July a 12:30pm AEST.
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Rates to go down, but not for a couple of months as RBA holds fire: John Symond

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The once popular but now vacant and silent three-screen George Cinema on Fitzroy Street in St Kilda has been listed for auction next month with price hopes in excess of $2.75 million.
The cinema was leased and operated by the Melbourne film family the Zeccolas, owners of the arthouse Palace cinema chain, from 1996 to 2010.
It opened with a bang in 1994, showing Quentin Tarantino’s cult classic Pulp Fiction in sold out showings and was successful for a number of years, before falling victim to more competition from the nearby multiplexes such as the 15-screen Cinema Nova in Carlton and 15-screen Jam Factory in South Yarra.
The Zeccolas planned to refurbish the George, but changed their minds and it closed in October 2010, with The Age reporting at the time that sessions were so sparsely attended “that the complex can resemble a ghost town”.
It has been owned by local businessman and cinema-lover Ralph Taranto since 1999, who leased it to the Zeccolas before opening it himself in March last year.
But it closed less than two weeks later.
Sadly, its second closure came just a month before the centenary of the opening of the first, purpose-built cinema in St Kilda, at what is now 145 Fitzroy Street, a few metres from the Aurora.
Perhaps a portent of its failure, Cinema Aurora opened with the Ben Affleck financial crisis piece The Company Men, a film about executives that all lose their jobs. It played the Oscar-winning The Social Network and Black Swan in its last week. Now listed for sale, with also the opportunity to redevelop subject to council approval, the Aurora’s three separate cinemas can seat up to 820 popcorn-eating patrons on a site of 1,142 square metres over two levels and also has a foyer, newly fitted candy bar, two full-fitted projection rooms and recently refurbished toilet facilities.
It is being marketed by Graeme Wilson of Wilson Commercial, alongside colleague Nicole Scrofan.
It comes with a liquor licence for 750 patrons.
Wilson says the cinema has the potential to bring in annual income in excess of $400,000, which would equate to a yield above 14% at a price of $2.75 million.
It was previously leased at $410,000 per annum (plus outgoings and GST) but is now being offered as vacant possession.
The cinema sits within a six storey mixed used building comprising apartments, shops, a restaurant and public car park.
It stands next to local St Kilda landmark the George Hotel, is surrounded by St Kilda apartment dwellers and is well serviced by trams and buses.
Fitzroy Street is a popular night-time destination in Melbourne lined with fashionable cafes, restaurants and bars, which Wilson believes makes the cinema a viable venue.
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St Kilda cinema complex seeking popcorn loving investor or savvy developer with $2.75 million to spare

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Serviced apartments group Quest has agreed to lease all 131 apartments that form the residential component of the Kyren Group's $100 million new mixed-use development currently under construction in the Adelaide CBD. The project, which is now 100% leased, is being marketed by Colliers International director of office leasing Nicholas Shinnick, who describes it as a “substantial mixed-use development, one of the biggest to get underway in the city for at least a decade”.
He says the decision to include a serviced apartment component comes of the back off Adelaide’s high occupancy rates for short-term apartments.
The residential component of the 17 storey project had been marketed as Franklin Street apartments, but failed to attract any buyers.
Kyren Group managing director Theo Samaras blamed this on a soft residential market and an Adelaide City Council unwilling to "incentivise" inner-city living.
Quest is currently on an aggressive expansion drive with <a href="https://www.propertyobserver.com.au/leisure/construction-begins-on-%2425-million-quest-wodonga-serviced-apartment-project-with-seven-more-in-the-pipeline/2012071155532">seven projects to be completed over the next 12 months</a>.
Earlier this month it kicked off construction on a new apartment project in Wodonga on the NSW/Victoria border.
Quest is bullish about the Adelaide CBD market with The Adelaide Advertiser reporting that it is in negotiations with developers for more locations in Adelaide, including sites at the southern end of King William Street and the eastern end of Flinders Street. The 70 Franklin Street project has reached the halfway mark in its construction and is due to be completed in early 2013.
Aside from the serviced apartment component, the project incorporates a 20,000 square metre office space and 700 square metres of retail space.
An adjoining 700 bay car park in Young Street has already been completed.
Three office floors have been pre-committed, including the top two levels which will be taken up by law firm Piper Alderman.
Quest’s Andrew Weisz says Adelaide is fast becoming an “international hub for the corporate sector, so it's imperative that our business follows corporate travellers as they move into the city”.
"This development, along with other major projects in Adelaide, represents a great opportunity for the serviced apartment industry and Quest will continue to respond to corporate demands for quality accommodation," he says.
The Lucid Consulting Engineers and Cheesman Architects-designed building has been awarded a five star NABERS rating.
Samaras says investing in five star buildings is a way to stand out in the marketplace and to attract premium tenants.
“In the future, a five star build is likely to be the normal benchmark. With the right project team, these developments can deliver on the bottom line,” he says.
“70 Franklin Street is also ideally located to benefit directly from access to Victoria Square, Adelaide’s Central Market and Chinatown, all of which are situated only a short walk away; this type of amenity is highly regarded.”
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Quest to operate 131 serviced apartments in Kyren Group’s $100 million Adelaide CBD development

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Rain delays has prompted Australand to reduce its targeted lot sales in its Greenhills Beach residential development in the Sutherland Shire from 170 to 135 for 2012.
And sales at Clyde North, its Melbourne greenfields project, have also slowed, with south east Queensland sales still at historical lows.
But the property group's sales was quite resilient in its $89 million full year net profit after tax representing a six percent boost.

The Greenhills Beach project, two kilometres from Cronulla, has land priced from $690,000 with beach lots priced from $845,000 and lakeside lots priced from $850,000
Despite the lot sales slowdown, Greenhills Beach remains among Australand’s top 10 residential projects and is listed as one of the project contributing to the strong first-half year result from its residential division.
Australand has also downgraded lot sales expectation in it Clyde North project on the outskirts of Melbourne with 140 lots expected to be sold in 2012 financial year compared to previous forecasts of 168.
In relation to both these projects, Rod Fehring, head of residential at Australand, said strong earlier momentum in both these projects had seen the developer release lots to the market earlier, but anticipated stronger sales had not eventuated.
The Clyde project has been impacted by the overall weaker state of the Melbourne market while the Shire project had been impacted by rain delays.
Overall, Australand identified South East Queensland and Melbourne as the two most challenging residential markets as it reported a 12% rise in revenue from its residential businesses to $260 million for the six months to June 30.
Lot sales declined to 489 compared to 605 in the corresponding period last year but contracts on hand increased from 605 and 824.
The average value of lot sizes were higher than the previous period.
The strongest performing residential project were Cockburn Central (WA), Kangaroo Point (Queensland) and Parkville (Victoria) with key contributions from residential land projects in Greenhill Beach (NSW) and Greenvale (Victoria).
The residential division now holds 1,316 contracts in hand as of June 30, an increase of 40 % more than the 951 contracts held at the end of December with Australand expecting 59% of these contracts to be realised in the second half of the year.
Australand managing director Bob Johnston said solid momentum from 2011 had been carried into 2012, but “consumer clearly remained cautious and house prices have eased.
Fehring described the Melbourne market, where Australand has 54% of its projects, as one that has now ticked over into “mild oversupply” although this oversupply is not “uniformly spread” with activity impacted at the lower end of land markets and high-end discretionary markets.
He says sentiment has softened with a weaker employment outlook, while the ending of first-home buyer concessions had also pulled demand forward and is expected to impact on the market in the future.
But he says "earnings resilience" is being supported by the diversity of the projects in its pipeline with its Point Cook project among the top performers
Australand has 11 Victorian projects underway with over 500 contracts in hand, including projects in Carlton and Cranbourne West.
Australand has only a small exposure to the South East Queensland, where 9% of its residential projects are located.
It says activity levels in this market remain at historic lows with interstate migration remaining low though affordability has improved relative to other markets.
Its inner city projects at Kangaroo Point and Hamilton have been among the stronger performers which are attracting enquiries and sales.
Australand has stuck with its forecast of 48 lots sales at Kangaroo Point for the financial year with an average expected price of $980,000
Australand says WA, where it has 14% of its projects, is showing improved fundamentals.
“Perth market fundamentals have improved significantly, listing have normalised with vacancy rates tightening,” says Fehring.
Across the entire residential portfolio, Australand is targeting 15 to 20% rise in earnings before interest and tax for the second half of the year, underpinned by strong contracts that will close in this period.
It also re-affirmed full year distribution guidance of 21.5 cents, but said this was dependent on sentiment not weakening further.
For the half year to June 30, Australian reported a 5% rise in operating profit compared to the same period last year.
Johnston called this a “credible result” given the weak consumer sentiment.
“Trading conditions across the board remain challenging,” he said.
Australand reported statutory profit of $90 million for the half year compared to $85 million in the corresponding previous period.
<img width="400" height="225" src="/images/stories/2012/greenhills.gif" alt="greenhills">
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Sales slow in the Sutherland Shire as Australand identifies several residential weakspots

<a href="https://www.apartments.com.au/developments/broadbeach-qld-4218">Broadbeach</a> offers plenty of reasons to live vertically, but moving from a substantial family home into an apartment can expose the compromises of high-density living. Privacy, room for guests and usable living space tend to matter more when an apartment is intended as a permanent home rather than an occasional coastal base.

A typical residential floor at <a href="https://www.apartments.com.au/new-apartments/the-eveleigh-broadbeach-7-9-surf-parade-broadbeach-qld-4218">The Eveleigh</a>, on Surf Parade,&nbsp;contains just four apartments. The 94-residence development by <a href="https://www.apartments.com.au/developers/hirsch-faigen">Hirsch &amp; Faigen</a> is predominantly made up of expansive three-bedroom homes, with a limited collection of half-floor penthouses above.

Across the apartment floors, <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> has used the relatively limited number of residences to give each home greater access to natural light and outlook. Living spaces extend towards full-height glazing, while a series of bay windows frame selected views across the Pacific Ocean, city and hinterland rather than treating the building edge as a continuous wall of glass.

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[smartcode_project:default project_id=149670 project_image_fid=360965]

“The apartment floors deliver a collection of homes that embrace controlled outlook via a series of bay windows deliberately framing moments of view,” Rothelowman Director Kim Lowman said.

From outside, those projecting forms contribute to the tower’s faceted profile. Strong horizontal and vertical elements establish its proportions, while the changing position of the sun alters the light, shadow and reflection across the façade throughout the day.

The same attention moves inside the apartments, where the material palette combines warm timber, natural stone, metallic detailing and softer curved forms. Kitchens sit within the main living zone, with stone island benches, integrated joinery and European appliances, before the living areas extend towards the glazing and the outlook.

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[smartcode_project:default project_id=149670 project_image_fid=360981]

Three genuine bedrooms provide room to accommodate family and guests, while two secure car spaces and storage address some of the practical considerations that can become more noticeable when moving from a larger home. Feedback from the display suite has centred on the warmth and restraint of the interiors, with buyers commenting that the residences feel like homes rather than conventional coastal apartments.

A limited collection of half-floor penthouses occupies the upper levels, increasing the scale of the living spaces and adding private balconies and elevated finishes. From this position, the outlook extends between the ocean and hinterland.

Outside the private residences, The Eveleigh separates its shared spaces between the podium and rooftop. The podium is centred on wellness, with subtropical landscaping surrounding a swimming pool and pool terrace, yoga garden, private gymnasium, sauna and hot and cold plunge facilities. Landscaped retreats and pavilions provide additional places to sit away from the main recreation areas.

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[smartcode_project:default project_id=149670 project_image_fid=360966]

Higher in the building, a rooftop pavilion and private dining suite sit alongside resident lounge, barbecue and outdoor dining areas, opening towards panoramic views across the ocean, city and hinterland.

“Buyers are no longer just looking for an apartment, but a lifestyle where they can relax, reset, and enjoy a balanced way of living,” Hirsch &amp; Faigen Director of Sales Matt George said.

Interest to date has come from established owner-occupiers and interstate lifestyle purchasers, including buyers planning a future move to the Gold Coast. Many are coming from larger homes and want to reduce ongoing maintenance without giving up space for family and guests, privacy, two car spaces or the ability to entertain at home.

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[smartcode_project:default project_id=149670 project_image_fid=360969]

Much of that daily life can also take place beyond the building without requiring a drive. Kurrawa Beach and Pratten Park are an easy walk from Surf Parade, while Pacific Fair, Oracle Boulevard, The Oasis, restaurants, cafés, entertainment and public transport are also within walking distance.

The Eveleigh is Hirsch &amp; Faigen's fourth Gold Coast development since entering the market in 2021, following The Hemingway at Palm Beach, The Emerson at Kirra and Yves at Mermaid Beach. Each of the preceding projects sold out before completion.

“Broadbeach had been on our radar throughout our time operating on the Gold Coast,” the developer said. “Following our projects in Palm Beach, Kirra and Mermaid Beach, Broadbeach represented the natural next step for the business.”

The Surf Parade site brought together proximity to the beach, protected coastal outlooks and walkability to dining, shopping and recreation. Hirsch &amp; Faigen also identified the street as an emerging premium residential address, with enough separation from Broadbeach's busier destinations to retain a quieter environment at home.

The Eveleigh is now under construction by Maxcon, with completion forecast for mid-2028. Three-bedroom residences are currently available from $2.87 million.

[smartcode_project_cta:default project_id=149670]

Joel Robinson

The Eveleigh brings house-like apartments to Broadbeach

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

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

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

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

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

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Castle Hill, the longtime hub of the Hills District, has been one of the major beneficiaries of Sydney's Metro expansion, with improved connectivity helping drive continued population growth, development and buyer demand across the Hills District.

But despite that growth, the suburb has seen relatively few major new apartment projects brought to market over the past 18 months.

Hills District developer Reve Group is looking to fill that gap with <a href="https://www.apartments.com.au/new-apartments/nova-r-ve-castle-hill-2-garthowen-crescent-castle-hill-nsw-2154">Nova Rêve</a>, a major new mixed-use precinct on the corner of Garthowen Crescent and Old Castle Hill Road, a short walk from Castle Hill Metro Station and Castle Towers.

[smartcode_project:default project_id=152737 project_image_fid=377679]

The project will comprise three residential towers alongside a hotel, restaurants, cafes and a skybar, more than 1,600 sqm of ground-floor retail and almost an acre of landscaped gardens.

It represents the largest project undertaken by Reve Group, the development arm of the Kassis family, which has been building across the Hills District for more than 30 years through Kassis Homes.

[smartcode_project:default project_id=152737 project_image_fid=377675]

Nova Rêve also represents a significant step up from the family's first apartment development, Grand Rêve, which was delivered nearby on Garthowen Crescent.

Grand Rêve introduced larger, house-like apartment layouts and premium inclusions including Wolf and Sub-Zero appliances to the Castle Hill market.

Nova Rêve takes that approach to a precinct scale, combining the residential component with hospitality, retail and substantial public and resident landscaping.

[smartcode_project:default project_id=152737 project_image_fid=377685]

Reve Group Managing Director Sam Kassis said the project reflected the family's three decades of building in the Hills, which has evolved from trophy homes on quarter-acre blocks to larger-scale apartment development.

"Grand Rêve was our first apartment project here and it showed us what this pocket of Castle Hill could be. Nova Rêve is the refinement of that idea: not just apartments, but a place the whole suburb can use," Kassis said.

A key part of that approach is the hotel, which has been designed to operate as an amenity for the wider Castle Hill community rather than solely hotel guests.

It will include restaurants, cafes, skybars and all-day dining, alongside conference and event facilities catering to business functions, community groups and private events.

At ground level, more than 1,600 sqm of shops and cafes will open onto the surrounding streets and landscaped areas.

Almost an acre of gardens designed by Land and Form Studios will run through the precinct, incorporating pathways, seating, barbecue areas and children's play spaces.

[smartcode_project:default project_id=152737 project_image_fid=377680]

Reve Group's Romio Georges said creating an active ground plane had been central to the planning of Nova Rêve.

"There are gardens with pathways, barbecues, seating and play areas, shops and cafes opening onto the street, and a hotel with restaurants and a skybar that anyone in Castle Hill can walk into," Georges said.

The project's elevated position on one of Sydney's highest ridgelines will also provide apartments with outlooks toward the Sydney skyline, surrounding parkland and the Blue Mountains.

More than 80 per cent of the apartments will occupy corner positions, with Turner responsible for both the architecture and interiors.

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[smartcode_project_cta:default project_id=152737]

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Larry Schlesinger

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