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Perth house prices fell 4.26% in the June quarter to a median of $467,000 – the lowest median price since March 2009, according to the latest figures from Residex.
The WA capital was the worst-performing detached housing market over the past three months, just ahead of Hobart, where prices fell 4.15% to a median of $357,000.
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Source: Residex
Residex CEO John Edwards says the Perth result was a “surprise” as there was nothing dramatic to point to quarterly drop of more than 4%.
He tells Property Observer the interest rate cuts in May and June may have played a role in undermining confidence in Perth, where borrowers are less sensitive (in a positive way) to interest rate cuts.
According to Residex, Perth home owners have the second highest amount of after-tax income ($1,025), behind Canberra ($1,262) and thus are less concerned about adjustments to interest rates.
Perth house prices picked up in March but fell by 1.8% in May and by 1.8% in June, when the RBA cut rates by 50 basis points and 25 basis points.
Edwards says the two rate cuts may have “spooked” a market where affordability is not as much of an issue as in the other markets.
“In markets where house prices are overly unaffordable, rate cuts impact in positive ways, but the ABS census 2011 numbers showed that affordability is nowhere near as bad as we thought it was it – and Perth is one of the most affordable market,” he says.
Sydney house prices were virtually flat (down 0.18%) to a median of $666,500, with Australia’s largest housing market outperforming the national market, which recorded a modest 0.7% fall over the quarter to a median of $423,000.
The strongest-performing capital city housing market by far over the quarter was Darwin, with house prices up 7.13% to a median of $511,500.
Darwin also registered a 2.19% gain in house prices for the year to June – the only capital city to record a price gain over the 12 month period.
Melbourne house prices fell 1.31% to a median of $555,500 while the Brisbane median house price fell 3.75% to a median of $412,500.
Over the past 12 months to the end of June Hobart is the weakest-performing capital city housing market, with a fall of 7.48%, followed by Brisbane (- 6.49%) and Melbourne (- 6.41%).
Perth house prices have fallen 1.72% over the year to June, but any decline in capital value has been more than offset by rental returns, which Residex says are up more than 15% in Perth.
Melbourne and Brisbane recorded rental growth of 6.58% for the year to June, with Sydney managing rental growth of 3.7% to a median weekly rent of $560.
Edwards says the outlook for Melbourne is for very limited house price growth and rental growth.
“Perth will pick up in the medium term, and we expect quite good rates of growth with moderate rental increases,” he says.
Edwards describes Sydney, alongside Perth, as a “fragile” market in terms of confidence.
However it is a balanced market in terms of stock levels, and a lack of building activity will see it head into a situation of having a housing shortage.
Melbourne, on the other hand, “is massively oversupplied,” Edwards says.
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lschlesinger-FZcF9M3vE6

Perth house prices at three-year low after ‘surprise’ 4.26% fall in June quarter: Residex

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Western Australia is the only housing market where optimists outweigh pessimists, according to a survey of members of the First National Real Estate network.

A third of the more than 400 First National estate agents expect WA house prices to rise over the next six months, compared with 17% who expect them to fall.

Half expect WA prices to be flat over the next six months.

Queensland has the next highest number of optimists – 26% of agents – but they are just shaded by pessimists (27%), with 47% expecting no change in prices.

Just under a quarter (22%) of agents are optimistic that prices will rise in NSW/ACT, compared with 23% of agents who are pessimistic. The majority (55%) expect no price change.

Tellingly, no agents expect house prices to rise in Victoria, Tasmania and South Australia.

Nationally, pessimists (16%) outweigh the optimists (28%), with the majority expecting house prices to remain flat.
House price expectations
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<a href="/images/stories/2012/07/prdjuly18.jpg" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/07/prdjuly18thumb.jpg"></a>
The picture is similar for units, although a small percentage of agents (6%) expect Melbourne unit prices to rise.

The outlook is strongest for Perth (33% of agents optimistic), followed by NSW/ACT (20%) and Queensland (16%).

Unit price expectations
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Commenting on the findings of the survey, Ray Ellis, chief executive of First National Real Estate, says there is an “overall sense of optimism among our members that the current prime buying conditions will stimulate activity in the property market in the coming six months”. 

“There are many positive signs already that the market has turned a corner in some areas, however, any recovery will be slow and gradual.”

According to Ellis, NSW prices fell during the GFC, but are now in an ideal position to bounce back quite quickly.

“However, interest rates, buyer confidence levels, the global economy and lower levels of new listings will be the key influencing factors for the state over the next six months.

An improvement is also expected in Queensland, with this market driven by interest rates, confidence, the wider economy and job security.

“As will the Western Australia property market, which will also benefit from the onset of planned infrastructure projects and better buying conditions,” says Ellis.

“In South Australia, the market should begin to rise, after steadying in the first half of the year and sales activity is already strengthening.

“Tasmania and Victoria are the states where recovery could take a little longer. Tasmania's market is still suffering with low levels of confidence in the state's economy. Rising unemployment levels is leading to a higher number of properties coming onto the market,” says Ellis.

“Victoria's property market held up quite well during the GFC, so it has to experience some decline as the market plays catch up with the rest of the country, although some parts of Victoria are already stabilising and are primed to turn at any moment.”

According to the survey, the strongest growth will come from the upgrader and investor sectors, for all states except Western Australia, where first-home buyers are expected to be in the best position to capitalise on bargain properties.

However, Ellis says weak consumer sentiment and nervousness around job security may keep the housing market soft and any recovery slow and gradual.

“Healthy supply rates run at about 200,000 homes for sale at any given time and Australia currently has 301,414 homes for sale,” Ellis says. 

“Even a 1% or 2% drop in interest rates is unlikely to make an impact on their saleability unless it is combined with sharp market pricing and aggressive marketing.”
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WA best placed for housing market recovery, Victoria the worst: First National survey

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The next rate cuts are now likely to be delayed until the December quarter, says Westpac chief economist Bill Evans, following the release of  July RBA minutes.
Evans had previously forecast the cash rate to be cut by 25 basis points in August and September with a final rate cut in the December quarter. 
However, he remains of the view that rates will come down by a further 75 basis points to a low of 2.75% by February/March next year "These minutes have provided a more detailed picture of the current attitude of the Reserve Bank Board than we saw in the Governor's statement on July 3. However the message is the same. That is that the Board is in a 'wait and see' mode which seems likely to be sustained for some months," Evan says. "Our view is that with interest rates, as described by the Governor as "a little below medium term averages" the case is already there that policy needs to be more stimulatory.
"However that relies upon our forward view of likely deteriorating prospects in the labour market (unemployment rate up to 5.75% by year's end); underlying inflation dipping slightly below the 2% to 3% target range; and the international outlook remaining fragile.
"Apart from interest rates other determinants of financial conditions are contractionary with fiscal policy tightening and the Australian dollar appreciating despite weakness in commodity prices. Funding pressures on the Australian banks due to strong competition in the domestic deposit market and wide spreads in the wholesale markets continue to pressure the banks. "As a result of all these factors we remain of the view that the overnight cash rate will eventually come down by 75bps to a low of 2.75%. However, due to the Board's current policy disposition it is necessary to push out the timing of the first cut from August until the fourth quarter of 2012 where we expect two cuts in October/November and December. Even lower rates are likely to be needed in the first quarter of 2013 with the final cut of 25bps coming in February/March."
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Next rate cut likely delayed until December quarter: Westpac's Bill Evans

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The Reserve Bank reverted to referring to the Australian housing market as “subdued” in its July 3 monetary policy meeting – a slightly less gloomy view of the market than in June, when it described the market as “having recently declined again”.
In May the RBA suggested the housing market was “subdued” and in April the RBA said it was “soft”.
The July 3 monetary policy minutes also acknowledge that retailing and housing are weak spots in the economy, which have contributed to keeping inflationary pressures contained despite evidence of stronger economic growth.
The RBA notes a stronger domestic economy, with positives being that the “pace of business credit had picked up noticeably”, that “household consumption grew strongly over the year to the March quarter, across both goods and service”, and that the “unemployment rate remained a little above 5% in May”.
But, in contrast, it said “indicators suggested that the housing market remained subdued”.
“Dwelling activity was likely to have fallen further in recent months, and indicators generally suggested that activity would remain relatively weak in the near term.
“Notwithstanding an apparent tick-up in June, dwelling prices were around 6% lower than in early 2011, with the largest falls in Melbourne and Brisbane.
“Household credit continued to grow at around the pace of the past year (broadly in line with incomes). Interest rates on housing loans were around 50 basis points below their 15-year average,” says the RBA.
The minute also say that some of the recent tensions in global financial markets have eased and that locally there had been no sign of dislocation in Australian financial markets.
“Following the June cash rate announcement, most lenders reduced their standard variable housing rates by around 20 basis points.
“As a result, the average interest rate on outstanding housing loans was about 60 basis points below the post-1996 average, while rates on small and large business loans were 50 and 75 basis points lower,” says the RBA.
The RBA concludes by saying: "Members continued to view it as appropriate for interest rates to be a little below average given evidence of slower global growth and the low rate of inflation in Australia.
"But with a material easing in monetary policy having occurred over the preceding six months or so, and with recent signs that the domestic economy had a little more momentum than had earlier been indicated, members saw no need for any further adjustment to the cash rate at this meeting."
<a href="https://www.propertyobserver.com.au/https://www.rba.gov.au/monetary-policy/rba-board-minutes/2012/03072012">Click here for the full minutes.</a>
Following the release of the minutes, Westpac chief economist Bill Evans says the next rate cuts are now likely to be delayed until the December quarter.  
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Domestic economy stronger but housing market returns to “subdued” status: RBA minutes

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CUA, Australia’s biggest credit union, has cut its fixed-rate products below that of the big four banks on the back of an advertising campaign urging customers to ditch the major banks. 
The CUA has 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.
 
The CUA says its one-year fixed rate is 35 basis points lower than the average of the big fours’ and its two- and three-year fixed rate is 27 basis points lower. 
CUA’s rate cuts are effective from July 18. 
“CUA is committed to offering customers the best deal we possibly can. Because our customer-owned model enables us to focus entirely on our customers, not on shareholders, we have more flexibility to make rate decisions that are in their best interests,” says Jason Murray, CUA’s acting general manager for products and marketing. 
According to Ratecity.com.au, Greater Building Society offers a one-year fixed-rate home loan at 5.64% as well as three-year rate fixed home loan at 5.79%.
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CUA cuts three-year fixed rate to 5.73%, undercutting big four banks

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Another estate agent has been caught using money held in trust for clients for its own business purposes.
The Queensland Office of Fair Trading fined Brisbane-based Christopher Midas Pty Ltd, trading as Julies Realty, $18,000, while director Phuc Ngoc Huynh (aka Julie Huynh) has been ordered to carry out 120 hours of community service over the next 12 months.
The fine and community service order were imposed for failing to comply with the Property Agents and Motor Dealers Act 2000.
The maximum penalty for breaching the act is $54,000 or five years’ imprisonment for an individual and $220,000 for a corporation.
Huynh and Julies Realty each pleaded guilty to 18 charges related to unauthorised withdrawals from the agency’s trust account.
The court heard Huynh made 18 unauthorised transfers totalling $144,000 from the agency’s trust account to its general business account between July 22, 2011 and January 27, 2012.
Huynh told Office of Fair Trading officers she had used the money to pay business costs such as staff wages and rent.
The court took into account that Huynh had co-operated with the OFT and repaid all monies to the trust account.
No convictions were recorded.
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Queensland estate agency Julies Realty fined $18,000 for $144,000 trust account breaches

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The conditional sale of property management group RUN Property and its Agent Plus outsourcing business to Rental Express has moved a step closer, with an agreement reached on payment of a $3.8 million deposit. 
The deposit was due on July 16, with the full sale price in excess of $65 million. 
RUN has confirmed that it received $1.8 million from Rental Express before July 16. 
In consideration of this payment, it has agreed that the balance of $2 million will be payable on or before July 27, with around $1 million due by July 18. 
The sales agreement between RUN and Rental Express is subject to a number of conditions precedent, including that shareholder approve the sale of shares in RUN Property Pty Ltd and Agent Plus Pty Ltd to Rental Express and Heritage Acquisitions Limited. 
RUN expects to convene a general meeting of shareholders for late August 2012 to vote on this sale.
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RUN Property sale to Rent Express moves closer with payment agreement

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A Coalition victory at the next federal election could result in demand for office space in Canberra falling even further than the current gloomy projections by BIS Shrapnel.
In anew forecast report, BIS Shrapnel expects the Canberra office vacancy rate to remain above 10% over the next three years – compared with a low vacancy rate in the single digits in the previous decade – while supply increases by 7%.
Report author and senior project manager Christian Schilling warns that austerity measures by the Commonwealth government are now depressing demand for office space, while more construction will add 140,000 square metres of new supply over the coming two years.
Canberra has the second highest pipeline of new office projects – behind Melbourne (about 240,000 square metres).
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Source: Jones Lang LaSalle 
Under its “base case scenario” BIS Shrapnel does not expect to see much improvement until two to three years from now, with the outlook worse for non-civic office space.
However, Schilling warns that there is a “significant ‘other’ scenario”:
“A change of government late next year could bring the toe-cutters back.
“Demand for office space could turn negative if the new government cuts a swathe through the public service.”
“That could cause a further setback to a market already reeling from the excesses of last decade.
“We are not in the business of forecasting election outcomes,” says Schilling. “But anyone in the market would do well to run this outlook as an alternative scenario in their forward planning.”
“It’s the 500-pound gorilla in the room,” he says.
Canberra is currently undergoing its second major office downturn since the late 1990s, in what was previously a “paradigm for stable progress, the perfect place for counter-cyclical investment”.
“Since then, the market has seen large cyclical fluctuations in demand for and supply of office space. They were brought about by changes in government, reforms and efficiency drives, periodic under-investment and sudden surges in employment,” Schilling says.
“Add a dose of commitment to sustainability that leaves non-complying buildings out in the cold, plus private over-building and you have a recipe for instability that (almost) mimics the cyclicality in the other capital city markets,” Schilling adds.
According to BIS Shrapnel, a massive construction boom from 2002 to 2012 resulted in Canberra being highly oversupplied, with vacancies reaching record levels across both civic (15.6%) and non-civic (13.4%) sectors by 2010.
Strong leasing demand subsequently made solid inroads into that surplus, underpinned by Commonwealth employment growth as a result of GFC-induced stimulus spending, but demand has cooled since then.
The Commonwealth government has introduced austerity measures in order to return the budget to the black.
“The federal government has literally turned off the (money) tap,” says Schilling. “There simply isn’t any money in the till to fund the cost of fitting out new premises, with the powerful PwC (PricewaterhouseCoopers) keeping a watchful eye on capital expenditure.”
Figures compiled recently by Jones Lang LaSalle show that Canberra recorded a fourth successive quarter of positive net absorption in the second quarter of 2012 (7,800 square metres) taking the total to 47,600 square metres for the 2011-12 financial year, with the vacancy rate tightened to 9.9% – the first time vacancy has been below 10% since the fourth quarter of 2009.
<a href="https://www.propertyobserver.com.au/office/canberras-very-green-nishi-office-block-80-leased-as-demand-for-premium-office-space-rises-colliers/2012062655274" target="_blank">New office buildings include Nishi Commercial</a> – part of developer the Molonglo Group’s mixed-use NewActon project, which has recorded strong leasing activity – helped by its status as one of Canberra’s greenest office building projects.
Nishi is now 80% leased as demand grows for premium-grade office stock with high environmental ratings, according to Colliers.
Just two floors out of the 10 remain available for lease, with office tenants set to move across in November.
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Coalition victory could mean 'toe cutting' and spell bad news for investors in Canberra office market: BIS Shrapnel

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The Housing Industry Association (HIA) has downgraded already modest expectations for new home construction over the next two financial years, but expects a strong pick-up in the Queensland, which appears to have bottomed out.
There are also more modest growth expectations for NSW and WA, albeit off historically low bases, but new home building in Victoria – Australia’s new home building capital – is set to fall sharply over the next two years, though it remains the top state for new home construction.
In a year where prominent building companies like <a href="https://www.propertyobserver.com.au/news/kell-rigby-one-of-australia-s-oldest-most-respected-building-companies-set-for-voluntary-administration/2012020853012" target="_blank">Kell &amp; Rigby</a>, <a href="https://www.propertyobserver.com.au/industry-news/liquidator-appointed-for-collapsed-nsw-builder-reed-construction/2012071155520" target="_blank">Reed Construction</a> and <a href="https://www.propertyobserver.com.au/industry-news/st-hilliers-construction-arm-placed-in-voluntary-administration/2012051554713" target="_blank">St Hilliers Construction</a> have collapsed, not to mention numerous smaller builders, the HIA expects new housing starts to fall by 14.1% to a level of 135,284 for the 2011-12 financial year.
This will be the seventh time in nine years that Australia has experienced a decline in new housing starts, with the 2011-12 figure just above figures recorded at the peak of the GFC.
The low point in new housing construction occurred around the December 2008 quarter – at the height of the GFC – when the HIA recorded new houses being built at an annualised rate of 130,548.
The HIA expects new housing starts before to pick up modestly in 2012-13 with growth of 4.9% to 146,600 starts, followed by a further increase of 4.4% in 2013-14, which would take starts to a level of 148,064.
These figures have been revised down from previous HIA forecasts of 137,820 starts in 2011-12, and a recovery reaching 151,200 starts by 2013-14.
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The modest recovery forecast over the next two financial years is primarily focused around NSW, Queensland and Western Australia – states that are experiencing periods of historically low housing starts.
The outlook is strongest for Queensland, with the HIA optimistic of a recovery from 2012013 with new forecasts expected to rise by 13.3% from 25,370 to 28,745.
The forecast is even brighter for 2013-14, with the HIA expecting a 15.8% improvement to 33,286 starts.
The HIA says that NSW has “endured a synchronised trend decline in new home building and renovations activity of a duration unrivalled in Australia's post-war history”, which continues in 2012, with the industry group forecasting a 7.9% decline to 28,524.
However, the HIA forecasts growth of 18.2% in 2012-13 and 5.3% in 2013-14, taking starts to a level of 35,503, higher than a previous forecast level for 2013-14 of 33,830.
“Given the awful base we are forecasting a recovery from, 35,503 starts is not a bullish forecast,” says the HIA.
 
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The HIA says Western Australia “continues to provide that rather quintessential example of how if you live in Australia but don't directly benefit from the resources boom, then times are challenging”.
“The economy is on fire, but new housing is extremely weak. Indicators like housing finance point to improved times ahead, but current planning problems will prove a huge set-back to a short-term recovery. The renovations sector, meanwhile, is slowing from a record high.”
The HIA is forecasting a 15.8% decline in WA housing starts in 2011-12 to come in at 17,510.
Victoria keeps its crown as the new home building capital of Australia, but the HIA is forecasting a 19.4% fall to a level of 47,690 in 2011-12 followed by a decline of 12.6% in 2012-13 and a further 3.5% fall in 2013-14 to 40,240 starts.
The HIA adds that the risk to this outlook remains on the downside.
Looking at the national outlook, HIA chief economist Dr Harley Dale says it now appears unavoidable that new housing will revisit levels experienced as a result of the GFC.
This, he says will be to the “detriment of thousands of businesses and households, not to mention the overall domestic economy”.
“We are experiencing a combination of softer housing demand and high-cost housing supply, which together mean that the nation is under-building by a significant amount. Put simply, Australian consumers are nervous about the global and domestic economies, and meanwhile around $200,000 of the price of a new home is due to taxation. It’s an unsustainable situation,” he says. 
“To improve the conditions facing new home building not only requires further interest rate cuts, but also Commonwealth and state government action to boost confidence and lift a substantial portion of the tax burden from new housing,” he says.
The HIA notes that the renovations sector has also showed signs of weakness in recent quarters, notwithstanding that total renovation investment hit a new record in 2010-11.
It expects renovation investment to fall by 1.5% to $29.5 billion in 2011-12, but to grow by 1.3% to $29.9 billion in 2012-13.
According to the federal government’s National Housing Supply Council 2012 report Australia accumulated a dwelling shortfall of 228,000 homes between 2001 and 2011 with the most acute shortage in NSW, with an estimated gap of 89,000 dwellings, followed by 83,000 in Queensland.
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New housing construction outlook gloomy, but Queensland a bright spot: HIA 

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Urban renewal has changed the character of the inner-south Sydney suburb of Waterloo.
The suburb has shaken off a reputation for crime and its low socio-economic profile to become a sought-after location for inner-city apartment living, with a number of major apartment projects currently underway.
Census 2011 figures analysed the Australian Financial Review show that <a target="_blank" href="/news">Waterloo </a>is Australia’s second most upwardly mobile suburb, with weekly household income rising 167% between 2001 and 2011.
<img src="/images/stories/2012/07/waterloomap.jpg">
The suburb ranks someway behind <a target="_parent" href="/news">Madeley</a>, a north Perth suburb, where median income has risen nearly 300% from $435 per week to $1,846. However, Madeley was farmland 10 years ago before the land was turned over to property developers.
Waterloo is the only inner-city Sydney suburb in the top 20, a list dominated by Perth suburbs benefiting from the flow-on effects of the mining boom that noticeably includes the Queensland mining towns of Chinchilla and Emerald.
The top five upwardly mobile suburbs are:
 
<div align="center">
<table style="width: 450px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="123" valign="top">
 
</td>
<td width="123" valign="top">
 
</td>
<td width="123" valign="top">
Median weekly income 2001
</td>
<td width="123" valign="top">
Median weekly income 2011
</td>
</tr>
<tr>
<td width="123" valign="top">
Madeley
</td>
<td width="123" valign="top">
WA
</td>
<td width="123" valign="top">
$435
</td>
<td width="123" valign="top">
$1846
</td>
</tr>
<tr>
<td width="123" valign="top">
Waterloo
</td>
<td width="123" valign="top">
NSW
</td>
<td width="123" valign="top">
$299
</td>
<td width="123" valign="top">
$900
</td>
</tr>
<tr>
<td width="123" valign="top">
<a target="_blank" href="/news">East Perth</a>
</td>
<td width="123" valign="top">
WA
</td>
<td width="123" valign="top">
$678
</td>
<td width="123" valign="top">
$1820
</td>
</tr>
<tr>
<td width="123" valign="top">
<a target="_blank" href="/news">Perth</a>
</td>
<td width="123" valign="top">
WA
</td>
<td width="123" valign="top">
$682
</td>
<td width="123" valign="top">
$1,755
</td>
</tr>
<tr>
<td width="123" valign="top">
<a target="_blank" href="/news">Chinchilla</a>
</td>
<td width="123" valign="top">
Queensland
</td>
<td width="123" valign="top">
$534
</td>
<td width="123" valign="top">
$1,357
</td>
</tr>
</tbody></table>
</div>
Source: Australian Financial Review, Census 2011
 
Census data shows that the Waterloo population increased by 2,000 from 8,500 in the 2006 census to 10,600 according to 2011 census. 
The vast majority of dwellings in Waterloo – 81% – are apartments, catering for singles or couples, with 23% of all dwellings being one-bedroom units and 53% two-bedroom units. 
Waterloo alongside Redfern and Alexandria is heading towards a 70% single-person occupancy rate, according Whiterock Residential Projects, which is developing two projects in Waterloo. 
According to RP Data, the median unit price in Waterloo is $513,000, down 5.7% on the same time last year, but prices are up 20% over the past five years.
The median rent is $550 per week, equating to a relatively high yield of 5.6%.
The revitalisation of Waterloo was kicked off around 2004 with NSW government creating the Redfern Waterloo Authority (RWA) with the objective of revitalising the suburb.
Since then there has been a marked drop in crime along the more recent establishment of popular eating destinations such as the Dank Street Bakery and Fratelli Fresh and Fountain Street in neighbouring Alexandria.
Waterloo is also within walking distance of the largest urban renewal project in Australia – the $8 billion Green Square project, which is developing 20,000 new homes and infrastructure between now and 2030, with the hub being 14 hectares of land to be developed as the Green Square Town Centre – a new major centre around the Green Square railway station.
<img src="/images/stories/2012/07/waterloo2.jpg">
According to Andrew Donnelly, CEO of Whiterock Residential Projects, which has recently started building boutique development Madison (pictured above) near Dank Street, the urban renewal in Waterloo is just beginning.
Donnelly tells Property Observer the shift in  demographic in Waterloo has been “palpable” over the last few years, with young professionals earning combined incomes of $200,000 plus choosing to live in the suburb.
He says it has shaken its reputation as an industrial, crime-ridden area, with empty-nesters from the suburbs choosing to buy in Waterloo.
“One father told me there are streets in Waterloo they would not walk down 20 years ago, but will now happily let their kids play there,” he says.
“Dank Street is a real destination for high-end eateries, and people from the eastern suburbs come to eat here over the weekend.”
According to Donnelly, there are two distinct markets in the Waterloo area – the high-rise market being targeted by Harry Triguboff’s Meriton Group (Eon Zetland priced from $660,000 for two-bedders) at Asian buyers and the student market and the low-rise boutique projects such as Madison and 141 McEvoy Street.
He says the market is 75% owner-occupier in boutiques projects, while in the high rise, 75% of the apartments are being bought by investors.
“Two-bedroom units are selling for around $700,000 and three beds for over $1 million,” Donnelly says.
Most of the buyers are locals, with overseas investors comprising just 5% to 10% of new residents, according to Donnelly’s estimation.
He says the Madison project – which features 47 one-, two- and three-bedroom apartments – is now almost sold out, with just 10 remaining and prices over $10,000 per square metre.
“That would have been unheard of 10 years ago,” he says.
Whiterock will launch a new project at 141 McEvoy Street in Alexandria, with prices starting from around $450,000 for a one-bedder.
<img src="/images/stories/2012/07/waterlooflicker.jpg">
Another major project is Becton’s Divercity project (pictured above and below), which launched in December 2009 and as of March this year had sold 400 apartments, with 122 settling in May and June.
Becton attributes its success to date to proximity to the Sydney CBD and easy access to Sydney Airport, eastern suburb beaches, Centennial Park, Moore Park golf course and the three major universities, UNSW, UTS and Sydney University. It is also just 800 metres from Green Square train station.
The development includes a café and restaurant strip, tepanyaki bar, rooftop cinema and 20 metre heated outdoor pool with cabana lounges and landscaped park grounds.
{yoogallery src=[images/stories/2012/07/july17divercity]}
The project will be completed in August 2014.
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Upwardly mobile Waterloo, Sydney, shows impact of urban regeneration

<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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