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The upbeat assessment of the Australian economy by RBA governor Glenn Stevens in his <a href="https://www.rba.gov.au/speeches/2012/sp-gov-240712">“Lucky Country” speech in Sydney yesterday</a> has further dimmed chances of rates being cut in August, according to both Commsec and ANZ.
Commsec chief economist Craig James says the governor’s speech was designed to “outline the facts rather than fallacies about Australia’s economic performance and the potential to handle future shocks”.
“The Reserve Bank governor reportedly noted that policy settings are about right. While that doesn’t preclude a rate cut in August, the factors would need to present, such as further instability in Europe and a low domestic inflation result."
“CommSec is still pencilling in a rate cut over the next few months,” James says.
A similar assessment of the tone of the speech was made by ANZ Research in its latest economic update.
“RBA governor Glenn Stevens today delivered a fairly upbeat assessment of the Australian economy in his speech entitled ‘The Lucky Country’,” says Craig Michaels and Dylan Eades of ANZ Research.
Michaels and Eades note Stevens' argument that Australia has made its own luck in delivering a “remarkably good” performance against a very turbulent international background, Stevens' contention that concerns underlying weaknesses in the Australian economy are overstated; and that even if downside risks do materialise, Australia is well placed to manage them.
“Importantly, the tone of the speech suggests that the hurdle for significant interest rate cuts is much higher than markets are currently pricing,” they say.
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August rate cut hopes dim further following upbeat Glenn Stevens "Lucky Country" speech: Commsec, ANZ

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Twitter was unusually abuzz with positivity following Glenn Stevens' speech today about Australia’s status as “The Lucky Country”.
Clearly delighted with the tone and content of Steven’s address, Rismark and Yellow Brick Road’s Christopher Joye (<a href="https://twitter.com/cjoye">@cjoye</a>) tweeted:
<img src="/images/stories/2012/chrisjoye.jpg" alt="chrisjoye" height="77" width="487">
Joye was joined in his praise of the RBA governor by his frequent Twitter sparring partner, Stephen "The Kouk" Koukoulas (<a href="https://twitter.com/TheKouk">@TheKouk</a>) – former Gillard economic adviser and soon-to-be economic scribe for Alan Kohler’s Business Spectator website, who used an unusual adjective (perhaps tongue-in-cheek) to describe his appreciation of the speech:
<img src="/images/stories/2012/stephenkouk.jpg" alt="stephenkouk" height="79" width="495"><a target="_blank" href="https://t.co/BQNKcxsk"></a>
Self-interested Federal Treasurer Wayne Swan (<a href="https://twitter.com/SwannyDPM">@SwannyDPM</a>) was so excited about the Stevens' speech, he tweeted not once, but twice to his 20,687 followers, beginning with an attack on the “doomsayers":
<img src="/images/stories/2012/wayneswan1.jpg" alt="wayneswan1" height="111" width="497">
Followed by:
<img src="/images/stories/2012/wayneswan2.jpg" alt="wayneswan2" height="96" width="501">
It was left to The Age’s Chris Zappone (<a href="https://twitter.com/chrizap">@chrizap</a>) to restore some bearish balance to the debate. Not surprisingly perhaps, given Melbourne has been the last (and most recent) city to experience the house price downturn, he tweeted:
<img src="/images/stories/2012/chriszappone.jpg" alt="chriszappone" height="93" width="491"><a href="https://twitter.com/search/%23in"></a>
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Tweet of the day: Glenn Stevens' “lovely” speech gets thumbs up

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The US housing market is now an “outlier” when it comes to making international comparisons, says RBA governor Glenn Stevens, who appears to be questioning whether we should compare ourselves with the US when considering the likelihood of possible future housing corrections.
Stevens says that simply comparing the two markets – Australian and the US – it would be “hard to avoid the impression that gravity will inevitably exert its influence on Australian dwelling prices”
But when you compare Australia with other international housing markets, Stevens says, “the picture is much less clear”.
“To the extent that we can make any meaningful statements about international relativities, the main conclusion would be that Australian dwelling prices, relative to income, are in the pack of comparable countries. In this comparison, the United States seems the outlier,” <a href="https://www.rba.gov.au/speeches/2012/sp-gov-240712#f">he said in a speech to the Anika Foundation Luncheon in Sydney today</a>. 
Stevens presented two charts to show how Australian housing affordability has diverged from the US since 1986, but performed in line with many other comparable countries.
The first of these charts just compares Australia to the US on the basis of dwelling prices to income ratios and shows that the two countries were last on a comparable footing in 1986 – but since then have diverged marketedly.
<img alt="dwelling1" height="380" width="470" src="/images/stories/2012/dwelling1.gif">
Between now and 2011 Australian house prices have trended up from a ratio of 2:1 to 4.1 – with slight correction around the GFC while US house prices relative to income have remained below a ratio of 2:1, having accelerated towards a ratio of 3:1 from around 1996 until the GFC brought about a dramatic fall in prices.
Comparing Australia with a host of other international housing markets on the same ratio measure, Stevens presented a difficult to read spaghetti-like chart (below).
It does however show that countries like New Zealand, the Netherlands and the UK have housing markets performing in the realm of the Australian market, while Japan is now more closely linked to the US.
<img alt="dwelling2" height="400" width="470" src="/images/stories/2012/dwelling2.gif">
Explaining the international shifts in housing affordability, Steven said that as everyone knows, “dwelling prices rose a great deal over the decade or more from 1995, and not just in Australia”.
“This occurred globally. The fact that it was a widespread phenomenon is a hint that we should be wary of explanations that are solely domestic in their focus. It suggests that the global dwelling price dynamic had a lot to do with financial factors – and there is little doubt that finance for housing became more readily available.
“In various countries prices have subsequently fallen. In the United States, for example, prices are down by about 30% from their peak, though they look like they have now reached bottom.
“In the United Kingdom the fall was smaller – at about 15%–20%.
“In Australia, the decline since the peak has been about 5% to 10%, depending on the region. There are of course prominent examples of particular localities or even individual dwellings where price falls have been much larger,” he says.
Explaining the international shifts in housing affordability, Steven said that as everyone knows, “dwelling prices rose a great deal over the decade or more from 1995, and not just in Australia”.
“This occurred globally. The fact that it was a widespread phenomenon is a hint that we should be wary of explanations that are solely domestic in their focus. It suggests that the global dwelling price dynamic had a lot to do with financial factors – and there is little doubt that finance for housing became more readily available."
“In various countries prices have subsequently fallen. In the United States, for example, prices are down by about 30% from their peak, though they look like they have now reached bottom."
“In the United Kingdom the fall was smaller – at about 15%–20%. In Australia, the decline since the peak has been about 5% to 10%, depending on the region. There are of course prominent examples of particular localities or even individual dwellings where price falls have been much larger,” he says.
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Australia has its own place in the world when it comes to housing affordablility: RBA’s Glenn Stevens

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The prospect of the mooted Australian housing bubble bursting is less likely than what it was five years ago, according to Glenn Stevens, governor of the Reserve Bank.
Speaking at a Sydney luncheon today, Stevens said that the housing market bubble, “if that's what it is, seems to be taking quite a long time to pop – if that's what it is going to do”.
“The ingredients we would look for as signalling an imminent crash seem, if anything, less in evidence now than five years ago.”
“Even if the pessimists turn out to be right on one or more counts," Stevens said, “it doesn't follow that we would be unable to cope”.
“Acting sensibly, with a long-term focus, has as good a chance as ever of seeing us through whatever comes our way.
“Most Australians I encounter who return from overseas remark how good it is to be living and working here. We are indeed ‘lucky’ in so many ways, relative economic stability being only one of them,” he said in as part of an a<a target="_blank" href="https://www.rba.gov.au/speeches/2012/sp-gov-240712#f">ddress entitled “The Lucky Country” to The Anika Foundation Luncheon in Sydney today, supported by Australian Business Economists and Macquarie Bank</a>.
"We should never say a crash couldn't happen here, and the Reserve Bank continues to monitor property markets and the performance of mortgages quite closely, as we have for many years.
"But it has to be said that the housing market bubble, if that's what it is, seems to be taking quite a long time to pop – if that's what it is going to do.
"The ingredients we would look for as signalling an imminent crash seem, if anything, less in evidence now than five years ago." He envisaged that if dwelling prices in Australia did slump, then there would be obvious questions about how that dynamic could play out.
“In such circumstances people typically worry about two consequences. The first is a long period of very weak construction activity, usually because an excess of stock resulting from previous over-construction needs to be worked off.
“But we have already had a fairly protracted period of weak residential construction; it's hard to believe it will get much weaker, actually, at a national level. The second potential concern is the balance sheets of lenders.
“This scenario is among those routinely envisaged by APRA's stress tests over recent years. The results of such exercises always show that even with substantial falls in dwelling prices, much higher unemployment and associated higher levels of defaults, key financial institutions remain well and truly solvent
“Of course, it can be argued that the full extent of real-life stresses cannot be anticipated in such exercises. That's a reasonable point. But we actually had a real life stress event in 2008 and 2009. The financial system shows a few bruises from that period, but its fundamental stability was maintained."
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Fewer ingredients now for mooted Australian house bubble pop than five years ago: RBA's Glenn Stevens

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<img src="/images/stories/2012/carramar.gif" width="470" height="300" alt="carramar">
An offshore private investor has paid $22.75 million to acquire the Carramar Village Shopping Centre north of Perth sold by property developer Peet.
The sale of the neighbourhood shopping centre was negotiated by CBRE’s Andrew Woodley-Page and Peter Agostino with the sale price reflecting an initial yield of 8.06%.
The shopping centre is located on the corne of Joondalup Drive &amp; Cheriton Drive in Carramar, 27km north of Perth in the City of Wanneroo – one of Australia’s fastest growing municipalities.
Completed in 2009, Carramar Village comprises a gross lettable area of 5,429 square metres and parking for around 300 vehicles.
It was sold with a long term lease to Woolworths, expiring in 2024, and includes 14 specialty stores among them Bakers Delight, Priceline Pharmacy and Jetts Fitness.
It is located within Peet’s Carramar Golf Course Estate – a community of around 3,000 households that has been created over the past decade and is now almost completely sold out.
Overseas buyers have tended to focus on buying up Australian hotels and offices in CBD locations, but high yields are on offer for retail assets.
Last week, Darwin-based private investor Cenfurn Investments, associated with the Koch Family, paid $14 million to acquire The Zone Retail Centre and an adjoining retail development site in Darwin on a yield of around 11%.
The buyer of the Carramar centre was advised by Perth based property investment advisors, API Hughes.
API Hughes managing director Peter Hughes says Carramar Village presented itself as a sound investment opportunity for their client “as it has a strong trading Woolworths together with the right mix of convenience service orientated specialty tenant”.
“Retail centres are very much on our buying radar as higher yields and lower interest rates make this an ideal time for acquiring strong performing centres,” Hughes adds.
CBRE Perth managing director, Peter Agostino says the sale confirms there is strong investor appetite for retail property.
CBRE negotiated the sale of the WA centres Wanneroo Central and Stirling Central with further shopping centre transactions in the final stages of negotiation.
“We received strong interest in the campaign, particularly from local private investors and syndicators seeking a secure investment, with the centre’s attractive rent review structures providing assured income growth,” Agostino says.
In May <a href="https://www.propertyobserver.com.au/retail/perron-group-to-acquire-half-stake-in-three-centro-centres-for-%24690-million-setting-post-gfc-commercial-retail-record/2012051754740">the privately owned Perron Group</a> agreed to pay a post-GFC record of $690.4 million to acquire a 50% share in a portfolio of three Centro flagship regional shopping centres.
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Overseas buyer pays $22.75 million for Peet's Perth neighbourhood shopping centre on yield of 8%

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Inner city infill residential property developments have the advantage of being close to the CBD and benefiting from nearby established infrastructure, but the returns can be mixed, Monique Sasson Wakelin has warned.
She says investors should tread carefully when considering these investments.
“Done well – built in a good inner suburban location, with quality design and construction – a new estate can perform reasonably well, eventually,” says Wakelin, director at Melbourne-based Wakelin Property Advisory.
“But they do tend to struggle capital growth-wise for the first few years. Moreover, they never seem to quite match the performance of top grade, established investment property."
“When the property market is booming, it is understandable that some budget-constrained investors who struggle to outbid others for established property resort to buying in new estates."
“But in a slow property market where competition is light, and it is possible to buy into the established inner suburban market, there’s really no need to settle for second best.”
As an example, house prices in an established suburb like Albert Park have risen 321% over the past 15 years, while a suburb like Port Melbourne, where Mirvac built its Beacon Cove project on former industrial land in 1996, have only recorded 249% growth.
Over the last three years, houses prices have risen by 51% in Albert Park compared to 26% in Port Melbourne.
In a column penned for the Eureka Report, Wakelin writes that while much of the new housing construction will take place in fringe suburbs, there is a drive among governments and developers to reassign large tracts of former industrial and other redundant land within inner and middle suburbs for residential use.
Wakelin says there are a number of positives about infill development closer to the city compared to new greenfill housing in the fringe suburb counterpart.
“The most obvious is location. Many of these new residential estates are only a few kilometres from the CBD, as opposed to 40 or 50 kilometres,” says Wakelin, writing for the Eureka Report.
Aside from shorter commutes to the city, she says the other positive factors in favour of infill developments are the existing hard infrastructure in the surrounding area (roads, schools, childcare facilities, medical facilities) as well as closer proximity “to the things that give an area a 'soul’,” – shops, cafes and restaurants.
But she warns investors to keep in mind the experience of Beacon Cove in Port Melbourne, which shows that there is a lifecycle for infill developments.
She quotes Biggin &amp; Scott Port Melbourne agent David Lack, who says there were long queues and people camped overnight when the project first came on the market in 1996.
But according to Lack, the Beacon Cove properties struggled at first on the resale market in the early years and it was only from around 2001 that they started to show a good profit on resale.
Lack also says Beacon Cove properties may have been overpriced at their first offering, asking $305,000 for a three bedroom house.
“The lesson from Beacon Cove for investors considering buying into infill developments is to tread carefully,” she says.
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Investors need to be aware of cyclical ebbs and flows of inner city new housing projects like Beacon Cove: Monique Sasson Wakelin

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<img alt="dixonflicker" src="/images/stories/2012/dixonflicker.jpg" height="225" width="400">
Yields ranging from 4.7% to 12.2% are being achieved on properties acquired to date by the US Masters Residential Property Fund, which has listed on the Australian Stock Exchange (ASX) last Friday.
The pioneering Australian fund – the first to invest directly in US residential property – is managed by financial planning firm Dixon Advisory.
It has steamed ahead with its New York metropolitan area property acquisitions since launching mid-last year, acquiring 167 properties to date with a total value of US$38.3 million.
It also has conditional acceptances on a further 114 properties worth a further US$29.5 million, which would take its total portfolio to 281 properties should all these conditional purchases proceed to settlement.
In addition, the fund is in a good position to add substantially to its portfolio with a net asset position of $95.6 million, no borrowings and $77 million in cash at its disposal.
Since launching, the fund has targeted residential property in the New York metropolitan area, with a specific focus on multi-family properties in Hudson County, New Jersey – a short commute from Manhattan across the Hudson River.
In its most recent update prior to its ASX listing issued on July 15, the fund said it acquired a further 21 properties in May at a cost of $7 million, including buying a number of subdivided brick terraces in downtown Jersey City – a departure from the more common purchases of wood-panel sub-divided houses.
The most expensive recent purchase was US$936,000 spent on a four-level, two-apartment block in downtown Jersey City, acquired on June 22 with a modest net annual yield of 4.7%.
In March, Dixon Advisory managing director, Alan Dixon told Property Observer that while the US market “remains hugely regional” with “significant differences in the performance of each region and the sub regions within them” the fund’s target areas “have now either reached neutral or are showing signs of recovery”.
“Buying is still very attractive, with most housing well below the replacement cost for the buildings, hence you are getting the land for free,” he says.
“There is still a significant shadow inventory in relation to housing heavily under water with the banks yet to act. We see this as a significant opportunity for the fund as we are the best placed investor in the Hudson County area to deal with a large number of home purchases in a short period.
“We think that housing in our target areas is likely to enter a very long, slow increase in value over coming years. This cycle is potentially poised to be very long compared to historical averages but there is significant room for capital gains and strong income returns given the very low starting level of valuations,” he said at the time.
At the same time as it listed on the ASX, the fund released annual results for the period from April 15 to December 31.
The results show earned rental income of $323,980 of an investment property portfolio worth $18.74 million.
The fund earned an after-tax profit for the eight and a half month period of $366,049.
The fund initially listed on the small-cap National Stock Exchange (NSX) on June 29 at a price of $1.60.
It closed unchanged at $1.57 yesterday on the ASX, giving it a market capitalisation of $161.7 million.
Since its IPO on the NSX the fund has raised $160 million from mainly small investors, including self managed super funds.
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Wide ranging residential yields in Dixon Advisory’s US housing fund as shares debut on ASX

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A second influential economic think tank believes the mining boom will start to fade in the medium-term, replaced by growth in other parts of the economy. including investment in new residential property.
Coming on the back of the <a href="https://www.propertyobserver.com.au/hotspots/tourism-helps-broken-hill-shed-its-one-horse-mining-town-investment-status-as-deloitte-s-questions-mining-boom-longevity/2012072255635">Deloitte Access Economics business outlook report</a>, which says the mining boom may be over in just two years, BIS Shrapnel expects mining investment to continue to grow over the next two years, but at a moderate pace.
In its Long Term Forecasts 2012-2027 report BIS Shrapnel expects the mining investment slack to be taken up by non-mining sectors of the economy, including a pick-up in investment in the residential property sector.
“Residential investment, triggered by recent interest rate falls, should start growing from late this year, driven by the dwellings shortage that has developed,” says Tim Hampton, senior economist at BIS Shrapnel.
“And non-mining business investment, currently below levels required to underwrite even moderate demand, will recover as interest rate reductions over the past year support demand and capacity constraints emerge." 
According to BIS Shrapnel, solid population growth underwritten by a rebound in immigration, combined with around average employment and wages growth, will continue to support growth in household expenditure.
However, due to persistently high household debt, BIS Shrapnel believes that expenditure growth will “not approach the giddy heights that it did during the debt-fuelled spending spree of the early-to-mid-2000s”.
BIS Shrapnel expects GDP growth to remain around its current rate of just above 3% for the next five years.
It warns that the biggest risks to the Australian economy – and a likley rebound for housing and non-mining sectors – remains the potential for the European economic crisis to have a larger-than-forecast negative impact on Australia
“We expect the European situation will get worse before it gets better, and will drag on for many years,” says Hampton.
“Irrespective of how their significant issues are resolved (eg. Euro break-up, further debt write-offs), the main channels of influence for Australia will be through reduced consumer and business confidence, lower commodity prices and tighter funding conditions."
“This would likely further delay the recovery in dwelling and non-mining business investment.”
The report identifies a marked slowdown in mining investment over the next two years.
It says that new private engineering construction, which after increasing by 50% over the past year, is expected to grow by 16% over the next year and just 8% the following year.
“At the same time, public sector investment – having been boosted by post-GFC stimulus packages – is now falling sharply as those packages wind down and all levels of government try to get their finances in order,” says BIS Shrapnel.
Hampton expects the recovery in residential property, combined with a revival in the non-mining sectors of the economy, to be strong enough to prevent the economy from stalling as it transitions to a more broadly-stronger footing.
Currently, Hampton says the economic picture is one “out of balance, undergoing significant structural change, with offsetting cycles averaging to a moderate outcome” driven by the high Australian dollar, which is impacting on competitiveness, thereby creating enormous pressure and resulting in job losses in trade-exposed industries like manufacturing, tourism, education and business services.
“Meanwhile, around 60% to 75% of the economy is sheltered from the impact of the high dollar. Those with economic power are doing well – the banks, the major supermarkets, utilities,” says Hampton.
“But SME businesses with little economic power and those that rely on servicing non-mining investment are largely languishing, with weak growth and profitability, particularly those whose gearing makes them vulnerable. Hence the continuing threat of insolvencies.”
These sheltered industries are the ones that will benefit most from lower interest rates and the forecast increase in non-mining private investment.
However, the outlook for non-mining trade-exposed industries remains poor, which BIS Shrapnel says will continue to suffer under the weight of the high Australian dollar and an uncertain global economy.
A more enduring risk, Hampton warns, is that the significant under-investment in the non-mining industries and infrastructure gradually erodes the medium-term growth potential of the economy, and leaves the Australian economy increasingly sensitive to large fluctuations in world commodity prices. Businesses will also need to make further gains in terms of energy efficiency, with energy prices expected to continue to rise strongly for the foreseeable future.
Finally, there is a risk of a collapse in minerals prices and investment as the cycle turns down. In that regard, BIS Shrapnel believes that increased supply, rather than lack of demand, poses the greatest downside risk to world commodity prices. However, a fall in world demand would initiate a much larger shock.
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New housing investment to pick up this year as mining influence expected to fade over next two years: BIS Shrapnel 

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Economists appear to be coming to the conclusion that the Reserve Bank may leave the cash rate on hold at its next meeting on August 7.
Fifteen out of 25 economists polled by Bloomberg on July 20 – following the release of a more bullish July 3 monetary policy statement on July 19 – now expect the Reserve Bank to leave the cash rate unchanged at 3.5% in August.
This is up from 13 out of 24 economists who said the RBA would leave the cash rate unchanged when polled by Bloomberg on July 13.
Of the major banks, only the Commonwealth Bank is tipping the RBA to cut rates on August 7.
Noticeably, Westpac has pushed back its forecasting timetable of rate cuts by three months, with chief economist Bill Evans anticipating the next rate cut in October, having earlier forecast one in August.
Looking ahead to the end of the year, 12 out of 25 economists expect the cash rate to fall by 25 basis points to 3.25% with other forecasts ranging from 2.5% (Credit Suisse) to 3.5% (Barclays Capital).
In ANZ’s latest economics weekly wrap, ANZ’s head of Australian economics and property research, Ivan Colhoun, says the RBA Board’s July Minutes showed that the Bank saw growth momentum in the Australian economy to have been a little stronger than it had previously thought.
“This primarily reflected the surprisingly strong first quarter GDP data, which was released a day after its June policy meeting.
“The Minutes showed that the RBA felt that growth had slowed to around trend in the second quarter, while inflation pressures were said to remain contained."
“In light of a 'material' easing in monetary policy since late 2011, which has led to a lowering in lending rates to 50 to 75 basis points below their medium-term average, the RBA appears to want to see how the economy responds to this loosening in monetary conditions.
“Hence, the RBA appears likely to sit on the sidelines for at least the next couple of months, assuming that the situation in Europe doesn’t deteriorate markedly in the meantime," he says.
On Wednesday the second quarter CPI data (to June 2012) will be released by the ABS, and Colhoun says this will be “closely watched”.
“But we think even a low underlying inflation result, by itself, will probably not be enough to spur the RBA to lower the cash rate in August."
“That said, it would increase the probability of further rate cuts down the track, and we still consider that further modest easing of 50 basis points will be forthcoming by the end of the year,” he says.
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Economists more confident of RBA keeping rates on hold in August: Bloomberg	

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The realestate.com.au brand will be integrated into the mastheads and property sections of News Limited metropolitan, community and regional newspapers as part of a new cross-media marketing alliance between News Limited and the REA Group.
News Limited has a 61.6% shareholding in REA Group Limited.
The alliance will see property sections of 88 News Limited publications rebranded as “Realestate”.
The two publishers have also entered into a reciprocal content syndication agreement, commencing in August, bringing together the realestate.com.au and realcommercial.com.au websites and News Limited’s national and state news websites.
The 88 newspapers have a combined weekly circulation of 7.15 million.
There will also be “greater content synergies” between <a href="https://www.news.com.au/realestate">news.com.au/realestate</a> and realestate.com.au.
Realestate.com.au’s main rival, the Fairfax-owned Domain is used as the major branding across the property sections of all Fairfax newspapers. But Fairfax now has more than Domain amidst its property brands following <a href="https://www.propertyobserver.com.au/industry-news/accc-approves-fairfax-weekly-review-deal/2012052454818">Fairfax Media’s 50% merger with Antony Catalano’s Metro Media Publishing business</a>, publisher of Melbourne real estate advertising glossy The Weekly Review.
The Weekly Review provides Fairfax with another avenue for especially for boutique property listings.
Its to replaced the Melbourne Weekly, which ran for nearly 20 years, with two titles - the Stonnington Review and Boroondara Review, going out to 750,000 homes in the expensive bayside suburbs of Melbourne.
As part of the REA Group-News Limited alliance a new digital and print advertising offer known as the 'Prestige Plus Package' has been introduced allowing estate agents to provide vendors with an advertising offer that includes a listing in the Sydney eastern suburbs Wentworth Courier as well as a listing on realestate.com.au.
Other markets are being assessed for suitability of similar offers.
The products comprising the Prestige Plus Package are still able to be purchased independently from each company should customers decide not to take advantage of the offer.
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News Limited papers to integrate print property sections with realestate.com.au brand

<a href="https://www.apartments.com.au/developments/broadbeach-qld-4218">Broadbeach</a> offers plenty of reasons to live vertically, but moving from a substantial family home into an apartment can expose the compromises of high-density living. Privacy, room for guests and usable living space tend to matter more when an apartment is intended as a permanent home rather than an occasional coastal base.

A typical residential floor at <a href="https://www.apartments.com.au/new-apartments/the-eveleigh-broadbeach-7-9-surf-parade-broadbeach-qld-4218">The Eveleigh</a>, on Surf Parade,&nbsp;contains just four apartments. The 94-residence development by <a href="https://www.apartments.com.au/developers/hirsch-faigen">Hirsch &amp; Faigen</a> is predominantly made up of expansive three-bedroom homes, with a limited collection of half-floor penthouses above.

Across the apartment floors, <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> has used the relatively limited number of residences to give each home greater access to natural light and outlook. Living spaces extend towards full-height glazing, while a series of bay windows frame selected views across the Pacific Ocean, city and hinterland rather than treating the building edge as a continuous wall of glass.

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“The apartment floors deliver a collection of homes that embrace controlled outlook via a series of bay windows deliberately framing moments of view,” Rothelowman Director Kim Lowman said.

From outside, those projecting forms contribute to the tower’s faceted profile. Strong horizontal and vertical elements establish its proportions, while the changing position of the sun alters the light, shadow and reflection across the façade throughout the day.

The same attention moves inside the apartments, where the material palette combines warm timber, natural stone, metallic detailing and softer curved forms. Kitchens sit within the main living zone, with stone island benches, integrated joinery and European appliances, before the living areas extend towards the glazing and the outlook.

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[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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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.

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Joel Robinson

The Eveleigh brings house-like apartments to Broadbeach

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

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

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

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

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

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

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