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The Australian housing market is showing signs of stabilisation after a period of softness and barring a global economic calamity, house prices should rise by around 4% to 5% per annum over the next two and a half years, according to ANZ. 
The report also expects a pick-up in currently weak levels of sales activity in 2013 due to low interest rates and the possibility of further rate cuts, encouraging first-home buyers back into the market.
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“In the absence of a sharp global economic downturn and escalating domestic unemployment, improving housing affordability, solid household financial positions and strong housing market fundamentals should support modest house price growth into 2013,” says ANZ in its July Australian Property Housing Chartbook compiled by economists David Cannington, Paul Braddick and Ivan Colhoun. 
“While previous structural and policy drivers have now been capitalised into house price growth, we expect prices to increase at a moderate 4% to 5% in annual terms by the end of 2014,” they say. 
The report notes the slowdown in sales activity, with home sales levels running at around 100,000 per month, well below the pre-GFC peak of 140,000 per month and tracking below the 120,000 per month recorded in 2009. 
“While auction clearance rates and days on market have shown some improvement more recently, they also remain well below recent peak levels, suggesting continued divergence between the expectations of home buyers and vendors,” says ANZ. 
“With ongoing softness in house prices and escalating uncertainty around the prospects for the global economy, the outlook for housing market sales continues to look weak over the second half of the year. 
“However, recent interest rate cuts and the potential for further rate cuts should drive improvements in housing affordability, eventually rousing market sales activity from the current lows, especially for first home buyers,” says ANZ. 
The report notes that with the exception of the smaller markets of Darwin and Canberra, house prices have weakened across all other capital cities in the year to June 2012. 
However, ANZ notes the extreme volatility in house prices in 2012 to date, particularly at the high end of the market. 
“House price falls from peak to May 2012 for the most expensive 20% of suburbs have been more than double price falls for remaining 80% of suburbs. This has most likely reflected the negative impact on house prices of increased volatility in equity markets and weak consumer sentiment,” says ANZ. 
An aggregation of housing data from the ABS, RP Data-Rismark and Residex shows that from their peak, house prices for the most expensive houses (the top 20%) have fallen 7.8% while those in the middle 60% have fallen 4.4% and the cheapest hoses (the lowest 20%) have fallen 4.5%.
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Despite weakening in recent months, the report notes that the Sydney dwelling prices (both houses and units) market has outperformed the other capital cities since the peak of the current price cycle in late 2010.
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ANZ attributes this strength to “the increasing pressure of stronger population growth on weak housing construction and a degree of resilience after an extended period of prior price underperformance in houses and especially units”. 
Sydney’s housing market has been assisted by having the biggest housing deficiency of all the other states – a shortage of four houses for every one built.
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Despite experiencing the largest falls over the past year, ANZ says Melbourne housing remains the least affordable across Australian capital cities. 
ANZ says that strong growth in WA household income and weak house price growth has aided Perth’s housing affordability, with the city now ranked sixth least affordable across Australian capital cities compared with equal first least affordable before the GFC.
 
The report also notes an improvement in housing affordability driven by softening house prices, rising household incomes and lower mortgage rates, which ANZ says has been reflected in improved consumer expectations of the best time to buy a house and lower mortgage delinquency rates through 2012. 
“Previous episodes of improving housing affordability (in the early and mid-’90s) were largely driven by significant reductions in interest rates (and steady growth in household incomes). 
“With interest rates at relatively low levels and expectations of moderate growth in household income, improvements in housing affordability through 2012-13 are expected to be driven more by household income gains and weaker house prices than in the past,” says ANZ. 
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Australian housing market stabilising, with 5% capital growth expected to 2014: ANZ

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Melburnians may have double the reason to either love or loathe the city skyline in a few years’ time, with the site for a proposed sister skyscraper to the post-modern Eureka Tower listed for sale.
<img src="/images/stories/2012/07/skyscraper2.jpg">
Source: <a href="https://skyscrapercity.com/" target="_blank">Skyscrapercity.com</a>
The 2,642-square-metre site at 70 Southbank Boulevard is directly across the road from the Eureka Tower and has been listed with a $25 million price tag.
It is being sold via an international public expressions of interest campaign managed by CBRE’s Mark Wizel and Joshua Rutman closing on August 8.
The proposed 226-metre, 72-storey tower is designed by Nonda Katsalidis of <a href="https://www.google.com.au/search?rlz=1C1CHKB_en-GBAU429AU429&amp;sugexp=chrome,mod=2&amp;sourceid=chrome&amp;ie=UTF-8&amp;q=2011101351927" target="_blank">Fender Katsalidis</a> architects, who also designed <a href="https://www.propertyobserver.com.au/developments/onwards-and-upwards-in-kuala-lumpur-for-fender-katsalidis-after-eureka-moment/2011101651945" target="_blank">the controversial Eureka Tower.</a>
It will be quite a bit shorter than the Eureka Tower, which has 92 floors and is 300 metres high.
The $400 million design incorporates a gold strip rising up above to the very top, complementing the shiny gold cap on top of the Eureka Tower.
<img src="/images/stories/2012/07/skyscraper3.jpg">
The site is owned by Katsalidis and Adrian Valmorbida from the Valmorbida family, who have put it up for sale almost a year after receiving a planning permit for the tower.
They had to battle with the City of Melbourne to gain approval for the building, which is set to feature 532 apartments, six levels of office space, a fresh food market and ground-floor retail.
“Eureka Tower, which 70 Southbank Boulevard, has been replicated on from an architectural perspective is well known as part of the fabric of life in central Melbourne,” says Katsalidis.
“We wanted to re-create elements of what we had achieved at Eureka and apply it to 70 Southbank Boulevard. It’s a brilliantly located site with a huge variety of optional uses and tremendous potential for a developer to shape Melbourne’s skyline with their own brush."
The site is the former head office of international explosives and fertilising giant Incitec Pivot and is currently in use as office accommodation.
Wizel says significant interest is expected from both local andoff shore developers “that recognise the difficulty in obtaining large corner sites that provided potential for apartment projects with substantial vistas in all directions”.
The site is bounded by City Road, Southbank Boulevard and Fawkner Street and has 150 metres of street frontage.
“Early developer interest has centred around this site housing the next major residential project on the edge of the Melbourne CBD,” says Wizel.
“Sites of this size in the luxury precinct of Southbank are not readily available for acquisition and, as a result, we are anticipating strong interest from local and overseas buyers, with a particularly high level of enquiry expected from Singaporean, Malaysian and mainland Chinese developers, all of whom will be attracted by the site’s proximity to the Crown Casino complex, Melbourne’s arts and cultural precinct as well as Southgate and the sporting precinct of the MCG, Rod Laver Arena and AAMI Stadium.”
Wizel says Asian developers have invested $450 million in Melbourne development opportunities over the past 18 months “in order to diversify into a proven residential market that is sought after by owner occupiers, investors and tenants”.
Rutman says it is rare for a site that has the potential for Nonda Katsalidis-designed, permit-approved residential tower to come to the market for public competition.
Katsalidis says the partners are putting the property up for sale to allow them to “go in different directions”.
“I know that both our firm Fender Katsalidis and the project managers Stralliance would be happy to remain involved in some capacity in the project moving forward, as we believe it will be Melbourne’s next iconic residential tower,” says Katsalidis.
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Site for Eureka’s more golden sister tower in Melbourne’s Southbank listed with $25 million price tag

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Construction of two commercial towers at Barangaroo will now commence after Lend Lease received commitments totalling $2 billion from cornerstone investors on the Sydney Harbour project.
The funding forms part of a new commercial wholesale open-ended property trust, which Lend Lease will manage.
Each tower will take about three years to build, and Lend Lease anticipates net facing rents of about $1,000 per square metre on average with a 20% incentive.
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Actual rents will vary dependent on factors such as location in the building and lease term, and there will be no rental guarantees.
Construction of the perimeter wall has now been completed.
The developer has raised $1 billion from Canada Pension Plan Investment Board (CPPIB) and a combined $500 million from the Lend Lease-managed Australian Prime Property Fund Commercial (APPF Commercial) and two existing APPF Commercial investors, First State Super and Telstra Super.
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Alongside these investments, Lend Lease will invest up to 25% or $500 million in the first two towers to be progressively drawn down over the development period.
The announcement of the funding follows soon <a target="_blank" href="https://www.propertyobserver.com.au/office/westpac-and-kpmg-to-take-up-more-than-70-in-two-of-lend-leases-barangaroo-south-towers/2012062255233">after Lend Lease announced on June 22 that it had secured tenants for the first two commercial towers</a>, with Westpac agreeing to lease around 70% of the commercial floor space in the first tower to be commenced and KPMG and Lend Lease to occupy 75% of the second tower.
Discussions with other tenants on the third proposed tower will progress over next 12 months, and depending on the outcome of these discussions, it could be launched over this time frame.
Speaking to investors today Lend Lease CEO Steve McCann described the funding as a “very significant milestone”.
“The original assessment was for one tower in first phase. We are very pleased to have funding and leasing agreements for two towers.
“Now all we have to do is build it,” says McCann.
“Investors should have complete confidence in us, since we have built 30% of the Sydney skyline,” he says. 
McCann says investors have also expressed interest in investing in the third commercial tower proposed for the site. 
<img src="/images/stories/2012/07/barangaroo1.jpg">
McCann says that having raised the funding and secured tenants, the developer can now turn to the residential component of Barangaroo South.
“We anticipate there will be probably be residential pre-sales in the next two years,” he says.
Hotel discussions with the NSW government are expected to be finalised in the next quarter.
“We are not in a hurry on the hotel development. We first have finalise where it will be located,” McCann says. 
“We are in discussion with a number of commercial operators about the hotel.”
Lend Lease has about $20 billion in urban regeneration projects on its books including Barangaroo , the RNA showgrounds in Brisbane, the Waterbank project in Perth and projects in London.
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Barangaroo South construction set to begin as Lend Lease raises $2 billion 

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The outer south-east Melbourne suburb of Clyde is not the epicentre of a so-called oversupply of houses in the city’s outer suburbs, but instead the result of new housing projects coming to market at the same time in what was farmland just two years ago.
Figures compiled by SQM Research show that the number of residential listings in postcode 3978 (Clyde, Clyde North and Cardinia) have risen a whopping 316% to 1,270 over the year to June, the biggest increase of any postcode as pin-pointed by The Sunday Age, which taken at face value would suggest a major problem.
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The new house and land package suburb is about 50 minutes south east of Melbourne and was one of a number of market gardens localities rezoned in 2010.
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Local estate agents operating in the area are not concerned.
Paul Rogers from O'Brien Real Estate Narre Warren is selling blocks of land in Villawood’s Pasadena community in Clyde and says agents are looking for new stock all the time to satisfy demand.
Pasadena is a 338-lot residential community near Casey Fields, which launched in July last year. The project offers blocks from 388 square metres up to 668 square metres, priced from around $220,000 to $245,000.
Other local projects include Simonds Homes Cascades on Clyde Estate and Stockland's Selandra Rise in Clyde North.
Rogers says he clocked up 35 residential sales over the past month – “a pretty good figure”.
He says house sales have been around the $330,000 mark but he has recently sold a house-and-land package on a 1.2-hectare block for $1.1 million.
“There are a lot of vacant land and house and land packages not yet build, which is probably where the big rise in listings comes from,” says Rogers.
Another issue, he says, could be that developers are advertising blocks of land as house-and-land packages due to confusion around stamp duty rules, which he says is a grey area.
SQM Research managing director Louis Christopher says the listing figures do not include vacant land, but do include house and land packages.
"We look at them pretty closely," he says. "These are listing that are advertised for sale."
Rogers says he is selling to a broad cross-section of people, including those who are downsizing, older buyers, young couples and upgraders.
He says the suburb has a developing business hub of its own and is also well-serviced by trains into the CBD.
In April a new train station opened at Cardinia on the Pakenham line, which Rogers says is a “one-hour relaxed” commute into the city.
Mark Leonard from First National Real Estate Neilson Partners Narre Warren, who is selling new four-bedroom houses in Clyde around the $370,000 mark, says things have slowed down in winter, but he expects a pick-up in summer.
He says because Clyde is a new estate, the SQM figures could be “statistical abnormalities” because there has been a lot of land developed over the past six to 12 months.
Most buyer interest, he says, comes from second- and third-home buyers, with a little bit of first-home buyer interest ahead of the Victorian government $13,000 first-home bonus ending on June 30.
In addition to train and bus services, the suburb has a nearby shopping centre and primary and secondary schools.
“It could do with some more bus services,” says Leonard.
He says a price of betwen $400,000 to $450,000 would secure a three- or four-bedroom house with a small garden.
These comments are given weight by a March quarter 2012 report by Oliver Hume, which shows that Cardinia only has about six months of land supply compared, with more than a year and a half of supply in Mitchell - Wallan / Beveridge area to the north of Melbourne and more than 10 months’ supply in Melton to the west.
According to Oliver Hume, there are 10 new residential projects underway in Cardinia, comprising 10% of all projects in Melbourne, with an effective median land price of $177,000.
The UDIA and HIA have also rejected claims of a glut in residential listings in outer suburbs.
Clyde’s status was highlighted in SQM Research figures which show a 6.1% monthly jump in Melbourne residential listings to over 55,000 in June with 35,000 of these listings on the outer fringe.
After Clyde, the suburb with the second biggest rise in listings in the year to June 30 was Epping to the North, with a 168% rise to 1,260 followed by Taylors Hill, Sydenham and Hillside (post code 3037) in the north west with an 84% rise to 1,081 listings, the Sunday Age reported.
Hoppers Crossing, Tarneit and Truganina (post code 3029) in the West have the highest number of listings at 4,048 – a rise of 54% for the year to June.
 <a rel="shadowbox" href="/images/stories/2012/07/sqmjuly91.gif" title="Click to enlarge">For advice on buying your dream land package, </a><a _cke_saved_href="https://www.propertyobserver.com.au/short-course/free-short-course-10-keys-to-buying-your-dream-land-package" target="_blank" href="/property-observer">sign up for our free short course</a>.
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Oversupply figures paint distorted housing picture of outer-Melbourne suburb of Clyde amid Melbourne’s 55,000 listings

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Markedly fewer economists expect the Reserve Bank to cut interest rates in August following last week’s decision to keep the cash rate unchanged at 3.5% at the July 3 meeting.
Of the 25 economists surveyed by Bloomberg on July 6, just over half – 13 out of 25 – expect the RBA to cut rates on August 7.
This compared with more than two-thirds of economists (19 out 28) surveyed a week before the July 3 meeting who said the RBA would cut rates on August 7.
Among the four major banks, ANZ has shifted from expecting a rate cut in August to now anticipating rates to remain on hold. The three other major banks continue to expect the RBA to cut the cash rate in August.
The RBA monetary policy decision statement of July 3 appears to have created more uncertainty about an August rate cut.
The statement noted a “more subdued international outlook than was the case a few months ago” and said that the local economy “continued to grow in the first part of 2012, at a pace somewhat stronger than had been earlier indicated”.
It noted, however, that housing remained “subdued”.
The June statement – following the 25-basis-point cut in June – spoke of a “more uncertain international environment”, deteriorating financial market sentiment and declining house prices.
Looking beyond August, the picture is cloudier about where interest rates may be heading.
The median expectation among the 25 economists survey by Bloomberg is for just one more rate cut over the next 12 months to a cash rate of 3.25%.
However, there is a wide divergence of opinion, with a forecast range from 2.5% to 4% by the end of the financial year. Of the 25 economists surveyed, 13 expect the cash rate setting to be 3.25%, which would mean just one more rate cut.
Westpac is still forecasting a cash rate of 2.75% by year end. According to Westpac chief economist Bill Evans, a cash rate of 2.75%  would mean an average standard variable mortgage rate of between 6.05% and 6.5%, given the current gap in the cash rate and bank mortgage rates.
There is even wider divergence among economists polled by Bloomberg after June 2013. While the median remains at 3.25%, just five economists are forecasting this to be the cash rate, with forecasts ranging from a cash rate of 2.5% to 4.5%.
A separate Saturday Age survey of 22 economists compiled by Tim Colebatch forecasts an average cash rate of 3% by June 2013, equating to two 25-basis-point rate cuts.
Out of the 22 economists polled, 12, expect a cash rate of 3.25% by the end of the financial year, a view held by noted chief economists Alan Oster (NAB), Shane Oliver (AMP Capital) and Paul Bloxham (HSBC).
By far the most bearish is Neville Norman, associate professor in the department of economics at Melbourne University, who forecasts the cash rate to rise to 4.5% by year end.
Forecast of 22 economists polled by Saturday Age:
2.75% Burchell Wilson (ACCI), Des Moore (Institute for Private Enterprise), Andrew Hanlan (Westpac), Julie Toth (Australian Industry Group), Tom Kennedy (JP Morgan)
3% Brad Crofts (Australian Workers Union), Richard Gibbs (Macquarie Bank), Peter Jones (MBA)
3.25% Saul Eslake (Bank of America Merrill Lynch), Richard Robinson (BIS Shrapnel), Chris Caton (BT Financial Group), Michael Workman (CBA),  Andrew Boak (Goldman Sachs Australia), Andrew Harvey (HIA), Paul Bloxham (HSBC), Alan Oster (NAB), Hans Kunnen (St.George), Annette Beacher (TD Securities),
3.5% Jakob Madsen (Monash University)
4.5% Neville Norman (Melbourne University)
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Certainty of August rate cut dims as economists home in on 3% cash rate forecast by June 2013

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The Northern Territory $10,000 BuildBonus available to home buyers building or purchasing a new home has been extended to the end of this year.
This the second time the NT government has extended the deadline for the handout, which applies to new homes up to a value of $600,000.
It was originally due to end on December 31, 2011, before being extended to June 30 this year.
The NT government also offers first-home owners stamp duty concession of up to $26,730 (the duty owned on the first $540,000 value of a property) and no land tax.
NT Treasurer Delia Lawrie says the Henderson government “continues to help more families, couples and singles into their own properties with the most generous housing incentives in Australia”.
“Whether it is your first home or an investment property, BuildBonus provides a one-off, $10,000 grant to all home buyers purchasing or building a new home to the value of $600,000,” she says.
“As well as giving first-home buyers a leg up, the scheme promotes investment in the housing sector, stimulating our construction sector and creating more rental housing stock.
“The territory’s strong economy means strong demand for housing, and the Territory government is meeting the challenges of growth with record land release and generous support for homebuyers.
“Right now there is land available to purchase across Palmerston, as well as over 2,000 units shovel-ready across Darwin.”
Further information on BuildBonus can be found on the <a href="https://www.housingnt.nt.gov.au" target="_blank">NT government's website.</a>
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Northern Territory government extends $10,000 new home bonus to December 31, 2012

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Upset Provident Capital debenture holders have expressed shock at the sudden collapse of the mortgage fund manager as it emerges that 85% of loans their investments funded were six months or more in arrears.
The collapse of fund management and mortgage lender Provident Capital seemingly has the hallmarks of other recent collapses including Elderslie Finance Corporation, Westpoint, Storm Financial,  and Estate Mortgage/Pyramid Building Society.
All attracted small investors with promises of high returns. The Provident investors were lending to developers with high risk, albeit offering first mortgages that totalled $97 million over the projects.
A Federal Court order remains in force that prevents the media naming any of the specific failed property projects that Provident lent against.
But as word gets out about the receivership of Provident Capital, shocked debenture holders have been contacting Property Observer concerned about their investments.
“I had absolutely no idea that the company was struggling, and I feel betrayed by the lack of information given,” said one debenture holder.
Another investor said her investment would be considered “small” by Provident’s terms, but was a “huge” one for her, “as I have very little money”.
Provident says that as of December 31, 2011 there were already 12 loans in the portfolio worth more than $2.5 million (aggregating to $69 million) and eight borrowers who owe more than $4 million each (aggregating to $62.million).
The April information booklet also reveals that:
•             Legal proceedings had commenced against eight loans in the fund with an aggregate amount owed of $6.5 million accounting for 6.7% of the loan book.
•             As of December 31, 2011, the company’s equity capital ratio was 2.73%, compared with ASIC’s benchmark ratio of 20%.
•             The arrears rate across the entire $176 million loan portfolio was 59.4% by value.
•             Provident was heavily exposed to just two markets. Out of a total of 55 loans in the fixed interest term portfolio, 30 were for properties in NSW worth $51.2 million with 15 in Queensland totalling $38.9 million.
The information booklet reveals that Provident stopped accepting new debenture holders after March 31 but would continue to accept reinvestments (rollovers) including interest from existing investors.
Of the $96 million invested by debenture holders, $63.5 million worth of investments mature between March and December 2012, $24.6 million between 2013 and 2017 and $7.6 million beyond 2017.
The receivers have expressed a hope of enabling a "meaningful" return for the 3500 investors.
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Collapsed Provident Capital debenture holders shocked as 85% of loans were six months or more in arrears

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The construction industry continued to contract in June, with the biggest decline recorded in the building of new apartments, according to the Australian Industry Group Australian (AI Group) Performance of Construction Index. 
 
The overall index, compiled in conjunction with the Housing Industry Association (HIA), remained broadly unchanged at 34.8 and in steep contraction given that a reading of 50 or below indicates a contraction in activity. 
The index has now been in contracting for 25 straight months, reaching its lowest reading of 28.9 in February 2009.
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The apartment building sub-sector index fell from 26.7 in May to 21.8 to be the weakest sub-sector, recording its steepest fall in 10 months. 
Both residential and commercial construction sub-sectors remained “deeply in “negative territory in the month. 
"The residential and commercial construction sub-sectors continue to be a drag on overall business activity, with lack of demand and access to finance both holding these important sub-sectors back,” says Peter Burn, director of public policy at Ai Group. 
“Engineering construction (down to a reading of 39.9) is stronger particularly due to mining-related projects but the overall construction sector continues to languish," Burn adds. 
HIA chief economist Dr Harley Dale noted the “steeper contraction in new orders for detached houses and apartments”, which he says “unfortunately confirm that new home building conditions will deteriorate further in the second half of 2012”. 
“Residential construction activity looks set to trough at GFC-equivalent levels and yet we’re not in the midst of the GFC. That is a concerning update on Australia’s economic prospects and policy makers should heed this clear signal for policy action," Dale says. 
The results of the index also reveal that poor demand and falling workloads impacted heavily on activity (down from 30.2 to 28.9), new orders (down from 33.7 to 33.4) and employment (up marginally from 38.4 to 38.7) in June. 
Engineering construction remains the strongest sector despite falling by 1.4 points to 39.9 in June.
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Apartment construction activity records sharpest fall in 10 months in June: AIG/HIA construction index

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Mortgage fund manager Provident Capital was signing on small investors to its fixed-term mortgage fund with promises of returns above 9% in the months before it was placed in receivership yesterday.
Receivers from PBB have taken over the running of the company due to concerns debenture holders could be left short-changed.
Property Observer understands that 3,500 small investors have about $30,000 each invested in fixed-term products that mature at different times, with fears that Provident could run out of money to pay investors with later maturation dates.
The $120 million fund is invested in first mortgages covering residential, commercial and rural properties principally for property development.
In the December 2011 newsletter, Provident Capital managing director Michael O’Sullivan told clients: “We have recently launched a ‘lock in your rate’ campaign for our three-year and five-year fixed term investments, so that you can take advantage of our higher rates of returns before they are reduced.”
As of December 1 2011, Provident was offering new investors an annual return on maturity of 9.2% for a three-year fixed interest term and 9.55% for a five-year term.
<img src="/images/stories/2012/07/provident2.jpg">
In the December letter O’Sullivan added that Provident had a “proud track record of meeting all our investor payments on time, every time, there’s never been a better time to lock in your rates and take another fresh look at Provident Capital”.
In the same newsletter, Provident advertised its monthly income fund as offering an average annual return of 10.61% over the previous 12 months to October 2011 as well as it having previously been voted best-performing mortgage fund by Morningstar.
In its previous September newsletter, O’Sullivan told investors Provident “continues to go from strength to strength” and highlighted its “proud track record of meeting all our investor payments on time, every time during this entire period”.
Six months, later, in an information booklet published in April this year Provident said that as of December 31  the arrears rate across  its $176 million loan portfolio was 59.4% by value, of which the arrears rate for the fixed term investment funded component was 90.2%, "much of which was more than 180 days in arrears".
The lender continued to advertise its low-doc lending products through the mortgage broker channel this year, with an advertisement appearing on page six of Mortgage Professional Australia’s June 2012 issue.
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The ad says Provident is offered low-doc non-conforming loans of up to $1.5 million for residential, commercial and rural purchases and promises brokers weekly commissions and no-commission claw-backs.
Non-conforming loans are generally provided to borrowers with poor or impaired credit history.
SQM research withdrew its rating and report of the Provident Capital Monthly Income Fund on June 14 a day before Provident’s $120 million debenture fund was frozen by federal court order.  The monthly income product is a seperate product to the debenture offering.
SQM withdrew its rating after downgrading the fund from 3.75 out of five to 3.25 in April, “a direct result of ongoing deterioration in the manager’s financial position and a lack of satisfactory communication from the manager on the current status of the responsible entity managing the monthly income fund”. 
SQM managing director Louis Christopher said at the time “the ongoing decline in the financial health of its manager cannot be ignored” 
A rating of 3.25 indicates that “caution is required”. 
On January 6 SQM had upgraded its rating of the fund from 3.5 to 3.75, a “good” rating and suitable for inclusion on investors’ approved product list - based on financials to June 30.
Christopher tells Property Observer SQM acted to downgrade the rating of the monthly income fund "the moment" it became aware of problems at Provident.
Provident results for the six months to December 31 (released in April 2012) reveals a loan portfolio worth $176 million
There are 95 residential loans worth just under $100 million, with 24 commercial loans worth $22 million and 17 rural loans worth $33 million.
The company made a half-year loss after tax of $9 million compared to profits of $800,000 in the previous corresponding period.
“The current economic climate presents a number of challenges. In particular, it is taking longer to recover all amounts owing where loans are in arrears and property values may not be sufficient to repay the amount owing,” says Provident
As of December 31 2011, the company’s equity capital ratio was 2.73% as compared to the benchmark ASIC ratio of 20.
The booklet notes that the “loans are designed to meet the needs of borrowers who do not fit the lending criteria of Australia’s traditional financial institutions or who simply choose not to borrow from them”.
 The Australian reported PPB Advisory partner and joint receiver Marcus Ayres as saying it would seek to recover funds by repossessing houses of defaulting borrowers and slowly releasing them into the market or by selling the defaulting loans if an investor could be found.
"This won't be a fire sale and we won't be putting all these properties out on to the market at the same time," Ayres said.
Provident has raised more than $1 billion of investor funds for investment in portfolios of registered first mortgages since 1998.
Have you invested in Provident Capital debentures or do you have a Provident Capital mortgage? Send an email to Property Observer with any news or thoughts:<a href="mailto:news@propertyobserver.com.au">news@propertyobserver.com.au</a>
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Provident Capital signing on new mortgage fund investors with 9% plus on offer in months prior to receivership

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Corporate watchdog ASIC has continued its crackdown on mortgage and savings advertised offerings that it feels may mislead consumers.
Having required <a href="https://www.propertyobserver.com.au/industry-news/asic-demands-equal-prominence-for-mortgage-comparison-rate-in-online-mortgage-advertising/2012061955177" target="_blank">mortgage lender Resi</a> to give equal prominence to mortgage comparison rates, ASIC has now prompted RAMS to change how it advertises its 5.75% savings account, which is issued by parent company Westpac.
ASIC Commissioner Peter Kell says advertisements should give balanced information to ensure the overall effect creates realistic expectations about a financial product or service.  He reminds promoters of financial services that ASIC will be regularly reviewing ads and will take action when they don’t comply with the law.
The RAMS 5.75% savings account includes a bonus 0.8%, which is only payable subject to a number of conditions being met including making a minimum deposit of $200 per month and making no withdrawals in the month.
<img src="/images/stories/2012/07/ramssaver.jpg">
The ASIC press release noted its concerns surrounding the online, television and outdoor ads, which featured a prominent headline claim offering a 5.75% interest rate, followed with smaller statements that it included a “0.8% p.a. Bonus” and “monthly deposit conditions apply”.
ASIC notes “concerns that ads promoting the online savings account were potentially misleading or likely to mislead”.
“ASIC was concerned that the ads left out important information and failed to give enough prominence to the conditions associated with the 0.8% bonus.
“Of particular concern to ASIC was that the ads did not disclose that in order to achieve the monthly bonus rate, consumers could not make any withdrawals from the account during the month,” said ASIC.
A spokesperson for RAMS says the company responded promptly to ASIC’s concerns and no customers have been adversely affected.
“ASIC advised us of some concerns relating to the prominence and completeness of conditions to qualify for the high bonus variable rate of 5.75% p.a. in our advertising.
“RAMS moved quickly to address these concerns by promptly amending all advertising including additional text and voice over to specify the conditions (such as no withdrawals during the month) more prominently in television commercials,” says a spokesperson.
ASIC recently released a   Regulatory Guide 234 Advertising financial products and advice services: Good practice guidance.
“ASIC’s guidance will help industry participants understand their obligations but we are also sending a message that we will take action in response to misleading ads for financial products and services,” says Kell.
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ASIC warns mortgage lenders over misleading advertising

<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.

&nbsp;

[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.

&nbsp;

[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.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360969]

Much of that daily life can also take place beyond the building without requiring a drive. Kurrawa Beach and Pratten Park are an easy walk from Surf Parade, while Pacific Fair, Oracle Boulevard, The Oasis, restaurants, cafés, entertainment and public transport are also within walking distance.

The Eveleigh is Hirsch &amp; Faigen's fourth Gold Coast development since entering the market in 2021, following The Hemingway at Palm Beach, The Emerson at Kirra and Yves at Mermaid Beach. Each of the preceding projects sold out before completion.

“Broadbeach had been on our radar throughout our time operating on the Gold Coast,” the developer said. “Following our projects in Palm Beach, Kirra and Mermaid Beach, Broadbeach represented the natural next step for the business.”

The Surf Parade site brought together proximity to the beach, protected coastal outlooks and walkability to dining, shopping and recreation. Hirsch &amp; Faigen also identified the street as an emerging premium residential address, with enough separation from Broadbeach's busier destinations to retain a quieter environment at home.

The Eveleigh is now under construction by Maxcon, with completion forecast for mid-2028. Three-bedroom residences are currently available from $2.87 million.

[smartcode_project_cta:default project_id=149670]

Joel Robinson

The Eveleigh brings house-like apartments to Broadbeach

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

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

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

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

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

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

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