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A lack of leasing transparency in Victoria, WA and South Australia is hurting smaller retailers and discouraging international retailers from setting up in these states, according to leasing information provider Leasing Information Services (LIS).
Simon Fonteyn, director of LIS, says he is aware of at least one overseas retailer who is reconsidering entry into the Australian market due to a lack of information about leasing costs in these three states.
There is no requirement for leases to be registered in Victoria, WA or South Australia.
In NSW and Queensland retail leases must be registered with the Land Titles Office and then become a public document, which anyone can access to learn more about the market.
Fonteyn told the Australian Financial Review this lack of transparency “was creating a lost opportunity for these states” when it comes to attracting global retailers.
He says there evidence suggest that there leases are being mispriced in markets and particularly hurting smaller retailers who often ended up paying too much rent.
Smaller retailers, Fonteyn says, lack the informal networks needed to operate in states where data was not readily available.
The recent Productivity Commission inquiry into retailing found evidence that smaller retailers were paying higher rents in shopping malls compared to larger tenants.
In its submission to the inquiry, Westfield admitted that major tenants such as supermarkets and department stores had a strong negotiating position and pay lower rents per square metre than smaller retailers, but said they contributed more capital to the construction of the store, “take longer-term leases, up to 30 years in some cases, and take much larger stores”.
The government’s response to the Productivity Commission inquiry supported the states and territories examining whether to introduce a one-page summary of key lease terms and conditions to address the imbalance between landlords and retailers.
Russell Zimmerman, executive director of the Australian Retailers Association agreed with Fonteyn that retailers, who are unable to find out how much rent their competitors are paying were at a disadvantage when negotiating with landlords.
According to Zimmerman, NSW has the best model of lease registration but it could be more transparent by disclose incentives such as assistance with marketing and rent-free periods.
Western Australia is currently consulting with the industry on ways to improve access to retail lease information and is seeking submissions by July 25.
 However, there is resistance to the idea of lease registration in Victoria over concerns that it will cause delays and make leasing transactions more expensive.
South Australia has no plans to consider requiring lease registration.
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Lack of leasing transparency in Victoria, WA and SA hurting overseas investment and smaller retailers

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As debate swirls as to the longevity of the mining boom, Westpac's decision to remove the remote NSW town of Broken Hill from a list of risky single-industry towns is certain to fuel debate about whether the bank has made the right call.
All the other towns on Westpac's list of single-industry towns - including Moranbah, Blackwater, Port Hedland and parts of Karratha - are heavily reliant on the mining industry, with Westpac effectively concluding that double-digit annual house price growth and double digit rental yields are not sustainable in the long-run.
According to Westpac, Broken Hill and the other mining town taken off the list - Kalgoorlie- Boulder in WA - have house price growth that has pulled back and rental yields in a more sustainable range.


“Broken Hill is still reliant on mining, but it has diversified into tourism. There are now lower mortgage delinquency rates, while house prices have slipped back and rental yields are between 5% and 6%," says Westpac spokesperson Danny John.
The bank's decision to update its list comes as a new report from Deloitte Access Economics says the mining boom may be over in just two years.
"The strong bit of Australia's two-speed economy won't stay strong for more than another two years or so'," says the report, authored by Chris Richardson.
"Mining companies are making it clear the current spike in investment is due to decisions taken a while back, whereas we are getting few new mining mega-projects across the line," says Richardson, who adds that the peak in mining projects may not be far off.
The Deloitte report does provide some vindication for Westpac ruling Broken Hill to be more than just a mining town, noting that energy giant AGL is currently constructing a new solar farm at Broken Hill.
But Westpac's decision to exclude Broken Hill from a list of “single-industry” towns has bemused LJ Hooker Broken Hill principle Jim Hickey.
“It seems very strange that Westpac would do that for Broken Hill under the current climate as I can’t remember it even being this bad in the housing/investment industry in my 27 years in the property industry and previous to that as a lending officer with the Rural Bank,” Hickey tells Property Observer.
“Broken Hill is very much a one industry town. If the mines fail, we will all fail,” he says.
Hickey says he has not sold a property to an investor since the GFC.
“I actually advertised a block of three units last year returning $19,500 per annum at $195,000 in Adelaide, Melbourne and Sydney and never got a phone call where previously my phone would have gone mad,” he says.
Hickey say the market has gone quiet again after enjoying five reasonable months of sales over the past six months.
Despite Hickey's concerns, figures compiled by SQM Research show that rents and median family income in Broken Hill has not risen at the kinds of unsustainable rates seen in places like Port Hedland (where houses rent for as much as $3,000 per week).
According to SQM, rents in Broken Hill have risen from $120 per week to $135 per week between 2006 and 2011 while family income has risen from $827 to $876 per week.
Realestate.com.au lists 323 properties for sale in post code 2880 (Broken Hill), among those a number of properties showing high rental yield potential, but below the 16% returns on offer in some mining towns.
Among those listed for sale aimed at investors is a <a href="https://www.realestate.com.au/property-house-nsw-broken+hill-110323293">two-bedroom cottage on a 532 square metre lot </a>listed by Zeta Bennett from First National Real Estate.
The property is listed for sale at $105,000 and Bennett says investors can expect rent of $200 per week for a property in this price range, equating to a yield of 9.9%
Bennett also has<a href="https://www.realestate.com.au/property-house-nsw-broken+hill-107563493"> a three bedroom house on O'Farrell Street on a 1,000 square metre block</a> asking $159,000 with rental expectations of $185 per week. This gives an indicative rental yield Saveof 6.05%
Despite disagreeing with Westpac's assessment of Broken Hill, Hickey says there are some “very good things on the horizon” such as the Wind Farm at Silverton purchased by energy group AGL, which is due to proceed.
AGL have also received approval for a large solar farm to be split between Broken Hill and Nyngan with energy provider purchasing 200 acres of land close to town.
“Hawsons (Carpentaria) Iron Ore project looks on track and they are completing their second-phase feasibility study at present.
"A cobalt mine project looks like it will go ahead approximately 28 kilometres from Broken Hill,” he adds, following the discovery of cobalt deposits several kilometres in length and up to 300 metres wide by Broken Hill Prospecting.
“[So] mostly still mining related and therefore still a one industry town.
Westpac took Broken Hill off its single-industry list in mid-June with a spokesperson saying the town had diversified into tourism while house price growth and yields were now back at sustainable levels.
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Tourism helps Broken Hill shed its one-horse mining town investment status - as Deloitte's questions mining boom longevity

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The slow rate of new home building in Australia – much lamented by industry bodies – could actually insulate the housing market from collapse should there be a sharp slowdown in the Chinese economy, according to banking analysts.
<a href="https://www.propertyobserver.com.au/residential/value-of-new-home-building-declines-for-fourth-consecutive-quarter-in-march-abs/2012071955661" target="_blank">March quarter figures released on Wednesday by the ABS</a> show that the new housing construction sector declined for the fourth straight quarter, with the value of new residential building work done falling 1.2% to $9.29 billion on a seasonally adjusted basis, following a 1.7% decline in the December 2011 quarter.
Concerns have been raised that a drop in Chinese demand for Australian coal and other raw commodities as result of the Chinese economy slowing further could have far-reaching consequences for the wider Australian economy and demand for housing.
In March this year, credit rating agency Standard &amp; Poor’s warned that Australian house prices could fall 20% this year if Chinese growth stalls to 5%.
But in a recent report, Citigroup strategist Tony Brennan said that major housing corrections, defaults and foreclosures often came after periods of excessive home building, leaving an excess supply of housing that put downward pressure on prices.
However, he says Australia does not show indications of over-building of homes.
Merrill Lynch equity strategist Josh Kirkwood expects no change in Australian house prices over the next three years due to the level of deleveraging and changing attitudes of investors.
He disagrees with people who believe the Australian housing market is bulletproof, but says there won’t be a house price crash as occurred in the US, the Australian Financial Review reported.
The latest figures released by the Chinese government’s National Bureau of Statistics and reported by Savills show that while China's real estate investment growth slowed sharply in the first half of the year, “dragging down the broad economy”, property sales swung into positive growth in June for the first time in eight months.
Savills says this “bodes well for a recovery in the sector, which could ease concerns about a hard landing of the world's second biggest economy”.
Real estate investment, which affects more than 40 other sectors from cement, steel to furniture, grew 16.6% from January to June versus an annual rise of 32.9% in the same period last year, the National Bureau of Statistics.
Fears of a flow-on effect for Australian prices have been expressed not just in relation to China, but also as evidence shows significant house price falls in the United States and Europe, most notably Spain.
Fund managers have suggested Australian investors look offshore due to the high dollar and discounted real estate.
“If you have an Australian dollar above parity and housing prices in America which are down 50% [since the GFC], it is a far easier decision to invest your money overseas than here,” says Ashley Pittard, portfolio manager at PM Capital.
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Australian housing market insulated from Chinese slowdown risk by slow rate of new home building: Analysts

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Investors are surging back into the housing market, according to Australian Property Monitors’ Dr Andrew Wilson.
He points to May ABS housing finance figures showing that the value of investor housing rose 26% over the month to the highest monthly total recorded since June 2010.
Wilson says the value of investor loans over the first five months of the year is now 7.2% higher than for the same period in 2011.
The value of investor loans approved over the first five months of the year rose 31% in Queensland and increased by 16% in WA and 6% in NSW, compared with the same period in 2011.
“Investors have surged back into the housing market,” says Wilson.
“These figures indicate increasing confidence by investors in the Sydney, Perth and Brisbane housing markets.”
However, the value of Victorian investor loans fell 3.6% over the first five months of the year, bucking the trend.
Wilson says NSW is the shining star of the investor market as it is the only state where the value of investor loans is higher than the same period in 2010, when housing markets were very active due to various government stimulus packages.
“This data certainly provides more positive data for housing markets with the realistic prospect of increased buyer activity and some house price growth in most centres over the coming months,” he adds.
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Investors surging back in Brisbane, Perth and Sydney but Melbourne left out:  APM

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John Symond’s Aussie Home Loans has cut its one-, two- and three-year fixed rate home loans by 20 basis points.
The new fixed rate being offered by Aussie is 5.79%
“The rate cut comes after reductions in the variable home loan rate across the industry and a number of consecutive RBA rate moves since late 2011,” says Aussie.
Aussie operates primarily as a mortgage broker but also provides home loans under its own brand.
The Aussie fixed rate cuts follow credit union CUA and the Commonwealth Bank reducing their fixed rates recently.
The CUA is offering a one-year fixed-rate home loan at 5.65% and two- and three-year fixed-rate home loan at 5.73%.
Last week the Commonwealth Bank cut its one- and three-year fixed mortgages by 20 basis points to a rate of 5.79% per annum for both products.
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Aussie cuts fixed rates to 5.79% following cuts by CUA and CBA

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The historic Burrawang Cafe and Bower Cottage in the Southern Highlands will go to auction on August 26, using a controversial selling method known as the “reverse auction” or “Dutch auction”.
The property, at 11 Hoddle Street in Burrawang, has a starting auction price of $1.68 million and last traded for $690,000 in June 2002, according to RP Data records.
The café has been listed for sale since July last year with an original asking price in excess of $2 million.
It will be reverse auctioned by well-known auctioneer Damien Cooley.
Under a reverse auction, the price starts at market value (set by the vendor) – above the reserve price – and decreases until a bid is placed that is the winning bid. The winning bid is the first bidder to put their hand up.
"As a visual aid there will be a red and green light used at the auction and if a buyer has not put up their card before the price reaches the vendor’s bottom line then a red light will be displayed and the auction will be stopped. While ever the green light is on the property can be bought, " explains Cooley.
The reserve price is not disclosed beforehand and only becomes known once the red light appears.
Cooley says he believes this to be a "really different, exciting and inventive way of marketing a property" and says he is thrilled to join  Mooney and property owner Garry Harding in "performing this unique auction method".
To encourage more people to take part in the auction, Harding, has placed a $10,000 reward payable to anyone who finds the final official buyer.
If no one introduces the buyer then the buyer receives the $10,000 as a rebate off the selling price.
Burrawang Cafe is located in the main street of Burrawang, about 12 minutes to Bowral.
It dates back to the 1860s and has been fully restored.
The café and Bower Cottage (also of 1860s vintage) stand on a half-acre (0.2-hectare) block, and both are currently leased on rolling monthly leases.
Burrawang General Store Cafe is a fully operational 100-seat timber restaurant featuring floodlit barrel ceilings. It is fully licensed and includes a 3,000-bottle cellar, a landscaped and manicured English garden and a separate office.
Bower Cottage is a fully renovated three-bedroom weatherboard home on the same title complete with a promenade balcony and polished floors. It features a living and dining area with garden views, a fireplace with access to an alfresco entertaining area. It also includes a seperate studio.
The property is being sold by Raine &amp; Horne agent Rick Mooney.
Mooney tells Property Observer the vendor has requested a reverse auction, as he believes it will attract more buyers.
“We are confident we will get a lot of enquires and that it’s a good idea."
Mooney says letters have been sent to the NSW Department of Fair Trading and Real Estate Institute of NSW to ensure they are the “front foot” regarding the legalities of this controversial auction technique.
“We want this to be a positive story,” he says.
Christian Payne, president of the REINSW, says that officially the institute has not discussed the auction or taken a view on the methodology.
“It’s certainly been used to sell fish and tulips,” he says, in reference to its use at the Sydney fish markets and the origins of the technique – selling tulips in Holland for over 100 years.
Payne says the current legislation was not written with reverse auctions in mind and says regulatory issues could arise as a result of the Southern Highlands auction.
Speaking in his capacity as a real estate agent and general manager of Payne Pacific Real Estate in Cronulla, Payne says the reverse auction has “question marks all over it”.
His primary concern is that estate agents should be working for the vendor to get the maximum price.
In a traditional auction, Payne says people attending have the opportunity to increase their bid by say a $1,000 before the hammer falls, something that’s not possible under a reverse auction, where the first bid is final.
“Are we getting the maximum price for the vendor?” he asks.
The Burrawang Café is by no means the first reverse auction in Australia.
Alex Bartolo, from Raine &amp; Horne Narre Warren South, tells Property Observer he used reverse auctions successfully up till 2004 for about 12 properties and recalls that about seven or eight of them sold using this technique.
He recalls they attracted a lot of media attention at the time.
Not all of it was positive.
Bartolo was involved with a stoush with REIV chief executive Enzo Raimondo, who was then strongly opposed to what had become commonly known as the “Bartolo auction method”.
Raimondo told the Sunday Age in June 2004 that a reverse auction was “a gimmick and a fad” that Bartolo was using to differentiate himself in a tight market.
“I don't think a reverse auction is in anyone's best interests,” Raimondo says.
He added that Dutch auctions do not contravene the real estate act but only because reverse auctions weren't considered when the legislation was written. It was for conventional auctions.
“But it's not in the spirit of the legislation."
Raimondo declined to comment further on this issue when Property Observer contacted the REIV.
A spokesperson for the institute said it was best left to the REINSW to comment.
Bartolo, though, remains defiant and believes a reverse auction is fairer system than the traditional method because it does not hassle the vendor or purchaser.
He says the REIV view is “old fashioned” and says there are many in the industry who don’t like it when anyone changing the rules.
Bartolo says he has contacted the selling agent and suggested that the auctioneer announce when the reserve price has been met.
“Then bidding can continue and the winner bidder has the first right of refusal,” he says.
Cooley says its the first time he is undertaking a reverse auction.
"We only know of a similar method used many years ago in Victoria so it’s terrific to be apart of it. This method is an effective way of communicating to buyers the owner’s genuine commitment to selling the property so we’re looking forward to receiving a lot of interest on auction day”, he says.
Reverse auctions have been used at the Sydney fish markets since 1989.
At the fish market, the auctioneers set the target price of the fish each morning, based on quality, demand and the previous day's prices. They then add on $3. Prices are displayed on two huge electronic dials that hang from the ceiling; when the selling starts, the clocks count down at a rate of $1 per revolution, the cents racing by like milliseconds on a stopwatch, until the first buyer bids.
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Southern Highlands Burrawang café ‘reverse auction’ not the first, but still stirring up debate

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Townsville is forecast to be the strongest-performing regional location in Queensland between now and 2015, according to researchers BIS Shrapnel.
Property values in Townsville are forecast to rise by 6% per year over the next three years, with the regional city benefiting from rising investment in the resources sector over 2012-13, says BIS Shrapnel in its latest Residential Property Prospects, 2012 to 2015 report.
Townsville’s projected growth is just below the cumulative 20% forecast for Brisbane over the three-year period.
Further north, Cairns will also benefit from resources investment, with 5% annual dwelling growth to 2015.
The weakest growth prospects are on the Gold Coast and Sunshine Coast, with BIS Shrapnel forecasting capital growth of 4.2% per annum to 2015 due to a drop in interstate migration.
March quarter sales figures released by the Real Estate Institute of Queensland showed that Townsville has been one the strongest-performing Queensland municipalities, with just a 2% decline in house prices and no change in unit prices over the prior 12 months.
 In comparison Gold Coast house and unit prices are down 5.1% over this period.
<table style="width: 470px;" border="0" cellpadding="0" cellspacing="0">
<colgroup>
<col width="357">
<col width="64" span="4">
</colgroup>
<tbody>
<tr height="65">
<td height="65" width="357">Region</td>
<td width="64">Median Sale Mar12</td>
<td width="64">Qtrly change</td>
<td width="64">Median Sale 12mths Mar12</td>
<td width="64">1yr change</td>
</tr>
<tr height="20">
<td height="20">SOUTHEAST QUEENSLAND</td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr height="33">
<td height="33" width="357">BRISBANE (SD)</td>
<td>$  425,000</td>
<td>0.0%</td>
<td>$  430,000</td>
<td>-5.5%</td>
</tr>
<tr height="20">
<td height="20">BRISBANE CITY (LGA)</td>
<td>$  505,000</td>
<td>1.2%</td>
<td>$  510,000</td>
<td>-4.7%</td>
</tr>
<tr height="20">
<td height="20">GOLD COAST CITY (LGA) +</td>
<td>$  454,375</td>
<td>0.7%</td>
<td>$  470,000</td>
<td>-5.1%</td>
</tr>
<tr height="20">
<td height="20">SUNSHINE COAST (LGA) +</td>
<td>$  430,000</td>
<td>0.6%</td>
<td>$  437,000</td>
<td>-6.0%</td>
</tr>
<tr height="20">
<td height="20">TOWNSVILLE CITY (LGA)</td>
<td>$  360,000</td>
<td>0.0%</td>
<td>$  365,000</td>
<td>-2.0%</td>
</tr>
<tr height="20">
<td height="20">CAIRNS (LGA) ~</td>
<td>$  350,000</td>
<td>4.5%</td>
<td>$  350,000</td>
<td>-4.1%</td>
</tr>
</tbody>
</table>
 
“With both Townsville and Cairns offering services to these mining projects, as well as a base for employees in and out of the projects, population growth should benefit with a rising shortage of dwellings emerging until new supply catches up,” says BIS Shrapnel.
“Moreover, the improvement in local economic conditions should also see confidence improve after a period of weakness. Townsville should expect a greater upside to its recovery due to its more diversified economy, although both markets should experience moderate price growth.”
The report notes that house prices on the Gold Coast and Sunshine Coast have generally moved in tandem with Brisbane due primarily to population growth driven by interstate migration.
However, due to interstate migration into Queensland now at long-term lows, BIS Shrapnel says the residential markets on the Gold Coast and Sunshine Coast have weakened considerably.
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Townsville has best regional Queensland prospects with smaller Gold Coast recovery by 2015: BIS Shrapnel

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They may be remote, dusty places steeped in more than a century of mining history, but Broken Hill and Kalgoorlie-Boulder are no longer risky places to lend money to property investors, Westpac has decided.
The bank has removed both regional locations from a list of “single-industry” towns where property investors will struggle to get a Westpac loan, ruling that house prices and rental yields are now at sustainable levels in these two postcodes.
However, it has added a host of regional mining hotspots to its “single-industry” policy, including Moranbah in Queensland and Port Hedland in WA as it pulls back from lending in what it deems unsustainable housing markets, according to an internal memorandum issued by Westpac to mortgage brokers obtained by Property Observer.
The post codes that have been added to the list are in Queensland:
<ul>
<li>Blackwater (4714)</li>
<li>Moranbah (4744)</li>
<li>Dysart (4745) </li>
<li>Middlemount and May Downs in the Isaac region (4746)</li>
</ul>
And in Western Australia:
<ul>
<li>Roebourne (including Karratha, Baynton, Bulgarra and Pegs Creek in post code 6714)</li>
<li>Port Hedland (including South Hedland in post code 6721)</li>
<li>East Pilbara (post code 6753)</li>
</ul>
For investors in these postcodes the bank says it will now discount rental income listed as security on mortgage applications by 40%, taking into account the risk of vacancies.
“An application with security in a single-industry town will have all rental income assessed at 60%,” says the bank in a note to mortgage brokers.
The new requirement is in addition to the rule that a 30% deposit is required in these postcodes for property to avoid the added burden of lenders mortgage insurance (LMI) – well above the usual 20% deposit requirement.
The policy changes apply to two investment loans – Westpac’s variable rate Equity Access Loan (EAL) and its fixed-rate investment property loan (IPL).
The decision to exempt Broken Hill is particularly surprising in light of its history.
The town of 23,000, situated 1,160 kilometres from Sydney, is the birthplace of what is now the world’s biggest mining company BHP Billiton and has a rich mining history dating back to the discovery of silver ore in 1883.
But Westpac spokesperson Danny John says in both Broken Hill and Boulder house price growth has pulled back while rental yields are in a more sustainable range.
“Broken Hill is still reliant on mining, but it has diversified into tourism. There are now lower mortgage delinquency rates, while house prices have slipped back and rental yields are between 5% and 6%.
“Boulder is still reliant on mining, but has stable house prices and rental yields of about 7% with the housing market in pretty good shape,” John says.
In November last year Hotspotting.com.au’s Terry Ryder – who is generally wary of recommending traditional mining hotspots – wrote that Broken Hill should no longer be seen as just a one-horse mining town.
“Traditionally reliant on mining and agriculture, Broken Hill is developing new economic drivers, including tourism and the arts,” Ryder said.
Ryder quoted Broken Hill mayor Wincen Cuy as saying that visitors find it to be “bigger, greener and cleaner” than they expect.
As to the decision to add the WA and Queensland mining towns to the list, John says Westpac is concerned that in these locations the mining boom is driving house prices and rental yields to relatively unsustainable levels.
As an example, he says house prices have jumped 44% in Moranbah with yields at 13.5%, with property valuers telling Westpac that these figures are not sustainable.
Real Estate Institute of WA president David Airey says the changes probably reflects a view from within the bank that “housing prices and rental returns in particular, in places like Karratha, Port Hedland, South Hedland and Newman are unsustainable”.
“The state government is anxious to address affordability in the Pilbara, and while this won’t happen overnight it’s clear that housing demands will be better met over the next few years.
“In contrast, the steady growth and more affordable market of Kalgoorlie-Boulder perhaps offers greater confidence to lenders,” he says.
Airey says Westpac has the right to “calibrate its business model as it sees fit”.
“But it would be a pity if the result meant that investors were less inclined to supply much needed housing in the state’s northwest. In some ways it’s a Catch-22 situation,” he adds.
Real Estate Institute of Queensland (REIQA) CEO Anton Kardash says lending criteria for remote areas has been restricted for some time given these areas are often reliant on single industries for employment.
“Investors in these areas need to be aware that lenders will require a larger deposit dependent on the element of risk lenders attribute to buying property in a specific region.”
Jane Slack-Smith, director at Investors Choice Mortgages, says the change in policies indicate that Westpac is less keen to lend in mining locations.
“The bank is discounting rental income to allow for vacancies,” she tells Property Observer.
Slack-Smith says Westpac is implementing these changes in places like Karratha despite her clients being able to ask rent of $2,000 per week over a five year lease.
“Some lenders will take 100% of rental income, but Westpac only takes 60% of income.
“Some lenders don’t have postcode restrictions,” she says.
Broken Hill and Kalgoorlie images courtesy of <a href="https://www.flickr.com/" target="_blank">Flickr</a>.
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Broken Hill and Kalgoorlie no longer as risky for property investors but some mining towns unsustainable: Westpac 

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Sydney apartment rents have risen almost 10% over the past year, compensating investors to a degree for a lack of capital growth, according to the June property update from Residex.
Figures compiled by Residex show that nationally unit prices increased modestly by 1.24% over the quarter to a median of just under $400,000.
Sydney unit prices were virtually unchanged over the quarter at $490,000 – up just 0.18% – and have risen only 1% over the past year.
In comparison, rents are up 9.78% over the past 12 months to a median of $505, making it one of the strongest-performing capital city apartment markets over this period.
The strongest rental growth was recorded for Perth units, where the median rent rose 12.2% over the past year to a median of $415.
In comparison with a more than 4% drop in Perth house prices over the June quarter, Perth unit prices increased by 7.45% over the three-month period to a median of $421,000.
Melbourne unit prices dropped nearly 1% over the quarter to be down 4.43% for the year with a median price of $428,000.
<img src="/images/stories/2012/07/residexjuly19.gif">
The June results will disappoint Brisbane apartment investors – the inner-city Brisbane market is awash with more than 40 new apartment projects, with capital growth stalling over the quarter (down 0.18%) curtailing annual growth to 2.92% and a median price of $349,000.
<img src="/images/stories/2012/07/residexjuly193.gif">
In addition, rents have gone backwards over the past year, falling 2.78% to a median weekly rent of $350.
Figures compiled by Residex suggest the Brisbane unit market is one of the most affordable in Australia, with 28% of median household income required to meet median loan repayments, compared with 37% in Sydney and 34% in Sydney.
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Sydney unit rents up 10% in flat market as capital growth stalls: Residex

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The new housing construction sector declined for the fourth straight quarter, according to March 2012 figures released by the ABS.
They show that for the March 2012 quarter, the value of new residential building work done fell 1.2% to $9.29 billion on a seasonally adjusted basis, following a 1.7% decline in the December 2011 quarter.
Over the past year to March new residential building work is down 8.7%.
Work done on new houses rose 0.2% to $6.14 billion while work done on new units fell 3.9% to $3.15 billion.
The value of alterations and additions to residential building fell by 5.5% over the quarter to be down 5.5% over the year to March.
“New residential building work done has now fallen for four consecutive quarters, while renovations work done has fallen for three consecutive quarters. Combined with leading indicators which show further weakness ahead, there is no doubt that the Australian home building industry is in recession,” says HIA senior economist Andrew Harvey. 
“As the residential building industry continues to contract, we are seeing real consequences for jobs, small business, the supply of new housing and rental costs. Governments can no longer ignore the negative impacts on employment, housing stress and Australia’s economy.” 
On a state-by-state basis when comparing the March 2012 quarter with the March 2011 quarter, the total seasonally adjusted value of residential work done fell by 14.8%in NSW, 0.8% in Victoria, 3.2% in Queensland, 8.5% in South Australia, 17.7% in Western Australia, 11% in Tasmania, and 2.8% in the ACT. 
In trend terms, the value of residential work done rose by 0.7% in the Northern Territory. 
Master Builders Australia was equally glum on the latest figures, with CEO Wilhelm Harnisch saying the statistics back up the findings of other surveys that show there is considerable uncertainty and reluctance amongst new home buyers.
“While today’s data is a look into the ‘rear mirror,’ forward housing indicators do not provide much optimism for a sustainable housing recovery taking place this year.
“The industry is anxiously awaiting the cumulative effect of four Reserve Bank rate cuts totalling 1.25% over recent months to kick in.
“The March ABS figures indicate the rate cuts from November and December 2011 haven’t had the effect they typically would have. The industry is relying on the effect from last year’s cuts, and the rate cuts in May and June this year begin to take hold.
“The March quarter statistics confirm the state of Australia’s two speed economy and the need for the Reserve Bank not to discount additional rate cuts,” he says. 
Non-residential building work slumped 4.1% in the quarter following a fall of 3.7% in the December 2011 quarter.
Overall, the seasonally adjusted estimate of the value of total building work done fell 2.8% to $18.7 billion in the March quarter, following a fall of 2.1% in the December 2011 quarter.
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Value of new home building declines for fourth consecutive quarter in March: ABS

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

Joel Robinson

The Eveleigh brings house-like apartments to Broadbeach

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

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

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

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

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

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

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