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Asian investors, hotel operators and high-net-worth individuals looking for a luxury retreat are lining up as potential buyers of the Ruffles Lodge &amp; Spa in Willow Vale in the Gold Coast hinterland.
The property is being marketed by Paul Fraser and Dean Humphries from Jones Lang LaSalle Hotels, with Fraser expecting it to sell for between $6 million and $8 million.
It is about 25 minutes north-west of Surfers Paradise and 45 minutes south of Brisbane.
According to the information memorandum, the lodge made a net operating profit of around $215,000 in the 2010-11 financial year.
Annual gross revenue has ranged between $1.1 million and $1.45 million since the lodge was expanded in late 2008.
The average daily room rate across the 12 villas has also ranged from $449 to $482 per night over the last three trading years despite occupancy ranging between 30% and 50%.
“This level of occupancy is largely representative of the lodging industry, which places more emphasis on achieving a high room yield as opposed to the number of room nights occupied,” reads the information memorandum.
“As a result room yield (RevPAR) has ranged between $181 and $240, akin to other five-star hotel operations in Brisbane and the Gold Coast.”
Fraser says the asset would appeal to someone like mining magnate Clive Palmer, who has already snapped up a number of bigger resorts in the struggling regional Queensland tourism market.
“It is tough market, but there is a lot of stock-standard hotel stock out there.
“Ruffles is a premium offering targeted at niche, high-end clientele. It gets a lot of repeat business. It’s a step up. No expense has been spared,” Fraser tells Property Observer. 
Alternatively, he says it could be turned into a private residence.
“This asset is very versatile,” he says.
The resort, which operates under the Peppers brand, is owned and operated by John and Jan Nicholls, who acquired the 18 hectares of elevated land in 2003.
The Nicholls spent 16 years running a charter boat business taking guests around the Western Pacific islands and the Great Barrier Reef before moving to Sydney in 1987 and building a much larger charter boat business, which they sold in 1996.
Following construction of the 12 luxury villas, including a two-bedroom private residence and conference and restaurant facilities, the lodge opened its doors in 2008.
The day spa, owners’ cottage and three of the villas were designed by Sydney architectural firm Allen Jack + Cottier, which also designed Elysia, the award-winning spa and health retreat in the Hunter Valley.
The main building is an extension of the Queenslander style with large veranda, stone walls, high ceilings and aged timbers re-milled from 100-year-old wharves along the Brisbane River.
The restaurant has two separate dining rooms, both with views of the coast.
According to the Ruffles website, the “‘garden gazebo”, situated on a raised knoll with views in all directions and the sun all day, is an “ideal place to relax with a book”.
“It was a massive passion of the Nicholls to build the lodge,” says Fraser. “They are selling as they are retiring and moving to Sanctuary Cove.”
Aside from the 12 luxury villas, the property includes a health spa, infinity pool, restaurant and conference facilities.
While Fraser does not yet have revenue figures, he says it has attracted a substantial number of bookings due to its location in the hinterland (as opposed to being on the coast), with little competition in the area.
Prices range from $379 for a two-night stay in the garden villa to $959 for one night in the two-bedroom executive spa.
A "5 Senses Food Fantasy Weekend" starts from $775 per night, and a degustation lunch prepared by executive chef Steve Houghton costs $100.
“The immaculate, architect-designed luxury lodge is five kilometres from Dreamworld, but its tranquil location makes it seem worlds away. Set high on a hill in manicured gardens, five private villas, three tree houses, and an executive lodge suite with an expansive separate living room have views to the Gold Coast beaches and high-rises as well as the surrounding bushland,” is how accommodation review website Fodors describes the lodge.
Ruffles Lodge is being sold via an international expressions-of-interest campaign closing July 12.
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lschlesinger-FZcF9M3vE6

Asian investors interested in five-star Gold Coast Ruffles resort

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WA estate agents are enjoying an improved operating environment in 2012 following a difficult 2011, says David Airey, president of the Real Estate Institute of Western Australia (REIWA). 
His comments follow the surprise finding of the 2012 <a href="https://www.propertyobserver.com.au/industry-news/one-in-five-queensland-and-wa-real-estate-offices-made-a-loss-in-2011-macquarie-benchmarking-report/2012061955194" target="_blank">Macquarie Residential Real Estate Benchmarking report</a> that 18% of WA estate agents made a loss in 2011. 
Airey attributed 2011 difficulties to “sluggish turnover” off the back of low consumer confidence. 
“Thankfully, we have seen things turn around in December 2011 and March this year, with prices up slightly and turnover jumping by 24% for the start of this year,” he tells Property Observer. 
Airey says listings have now come down to a long-term average and the market has returned to a more usual pattern after bouncing around for the past five years. 
Figures released by the REIWA on June 6 show that the number of properties for sale in Perth has come down significantly to be at its lowest level since April 2010.
The institute says the number of properties on the market including houses, units and land fell to 12,975 in early June. 
At the end of May, REIWA data showed current listings in the metropolitan region sitting at 13,291, with the number of listings trending downwards during 2012 after a peak in March of 14,358. 
“We are now at a level below the start of the year and have pretty much returned to the equilibrium we might expect from normal market conditions. 
“This is because the 2,840 listings for land is over-represented when compared with historic trends, and more developers are now listing on reiwa.com,” Airey says. 
At the same time as listing are falling, the REIWA says reported sales have been showing a steady increase as the market returns to average turnover levels. 
Airey says the high number of listings and lesser number of sales in 2011 made life difficult for many agencies, some of which were relying on rent rolls for bread-and-butter income.
The Macquarie report found that 20% of Queensland estate agents made a loss in 2011.
Real Estate Institute of Queensland (REIQ) CEO Anton Kardash says the reduction in profitability for Queensland real estate agencies in 2011 is not overly surprising "given the terrible natural disasters we experienced last year".
“These adverse weather events, coupled with the ongoing national and global economic uncertainty at the same time, meant that Queensland real estate agencies experienced some of these leanest times in many years. Indeed, many agencies choose to close their doors, reduce staff, or amalgamate to remain financially viable," Kardash says.
“This year, however, is heralding a much better period for Queensland agencies with greater overall confidence being reported in the market as well as strengthening levels of activity.
“Many agents believe the bottom of the Queensland market has passed which, together with lower interest rates and more affordable property prices, is starting to attract buyers.”
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Improved operating environment for WA estate agents in 2012: REIWA’s David Airey

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The seasonally adjusted estimate for new private sector house commencements fell 7.8% in the March quarter, following a fall of 2.6% in the December quarter, according to preliminary estimates from the ABS.
New house starts are down 13.1% for the year to March to 20,306.
More volatile unit commencements fell 21.6% in the March quarter following a fall of 6.3% in the December quarter.
Unit starts are down 37.7% for the year to March to 9,492.
Combined (houses and units) dwelling commencements fell 12.6% in the March quarter following a fall of 4.5% in the December quarter and are down 24.5% for the year to March.
The combined fall was significantly below market expectations, which centred on a 2.3% fall in the quarter noted Commonwealth Bank associate economist Diana Mousina.
"Monthly building approvals data, which tends to be a good leading indicator of quarterly construction data, did not suggest such a large drop in first quarter dwelling commencements.
"The housing market has been a major spot of weakness in the economy and the large fall in housing starts in the first quarter of 2012 confirm this trend," she says.

The number of seasonally adjusted dwelling commencements fell in six of the eight states and territories in the March 2012 quarter.
Dwelling commencements fell by 37.4% in New South Wales, 8.3% in Victoria, 4.8% in Western Australia, 15.8% in Tasmania, 0.4% in the Northern Territory, and 41.2% in the ACT.
Seasonally adjusted dwelling commencements increased by 2.5% in Queensland and by 0.6% in South Australia.
On a trend basis, WA recorded its eighth straight quarter of declining dwelling commencements with Victoria and South Australia recording seven straight quarterly declines.
The HIA says the March quarter figures highlight "the urgency of investment and reform to boost new housing supply".
"Dwelling commencements have been declining since the middle of 2010 and are currently running at an annualised level of 122,492," says HIA chief economist, Harley Dale.
"Excluding the new home building recession around the GST, this is the lowest level for dwelling commencements since the September quarter of 1996. Furthermore, it is a weaker outcome than was evident at any time during the GFC.
"Carve through the current argy bargy about how strong or weak the Australian economy is and you find that new housing is unequivocally weak," says Dale.
Master Builders Australia (MBA) described the March quarter result as "devastating".
MBA chief economist, Peter Jones says the extremely poor dwelling commencements result reflect high levels of consumer caution and low levels of confidence.
“The figures are a major setback for an industry that has now fallen to lows experienced during the global financial crisis. This puts at risk the viability of many building and construction operations," he says.
“The results confirm the urgency of the Reserve Bank’s decision to cut interest rates in May and June.
“Consumers are nervous due uncertainty regarding the Euro crisis, minority government and the pending introduction of the Carbon Tax.
“The glass is less than half-full for the housing sector. Jobs are being lost and more at risk," he says.
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New home construction continues to slide, with starts down 7.8% in March quarter: ABS

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One in five estate agencies in Queensland and nearly the same proportion in the other mining boom state WA (18%) made a loss in 2011, according to the Macquarie 2012 Residential Real Estate Benchmarking report.
The proportion of loss-making estate agencies in these two states is higher than in any other mainland state according to the report, based on Macquarie’s survey of 416 agencies carried out in February.
The figures are before principles pay themselves a salary.
The president of the Real Estate Institute of Western Australia, David Airey, said he was not surprised by the finding saying that in 2011 his state experienced three quarters of declining house price following four quarters of decline from the previous year.
He says for WA estate agents the key issue has been the slump in turnover.
“Consumer confidence has been very low for the last couple of years resulting in very sluggish turnover, which at times has been 30% below normal expectations,” Airey says.
Just 71% of Queensland agencies made a profit – the lowest proportion of all states – compared with a national average of 77%.
WA agents performed better, with 78% reporting a profit.
Around 14% of NSW real estate agencies made a loss in 2011 -just below the national average of 15%.
Despite its lacklustre property market, Victoria had the smallest proportion of firms making a loss (6%), with 85% of Victorian real estate agents making a profit in 2011 – helped by a greater focus on property management than other states.
Click to enlarge
<a rel="shadowbox" href="/images/stories/2012/06/macquariejune20.gif" title="Click to enlarge"><img src="/images/stories/2012/06/macquariejune20thumb.gif"></a>
The report notes that Queensland and WA agencies far exceed the average in terms of loss-making agencies in the period.
“They are also the two states which faced arguably the toughest sales markets in the period, excepting some regional centres that benefited from resources sector strength,” says Macquarie.
Further evidence of the tough operating environment in Queensland and WA was evidenced by the number of agencies in these two state reporting declines in gross sales commissions and agency revenue figures.
<ul>
<li>About 56% and 49% of Queensland and WA agencies respectively reported declines in gross sales commissions, against a national average of 46% .</li>
</ul>
<ul>
<li>About 46% and 45% of Queensland and WA agencies respectively reported declines in agency revenue, against a national average of 40%. </li>
</ul>
The report attributed the high proportion of Queensland agencies making a loss to a “well-documented period of natural disasters (including the Brisbane floods) in early 2011, which had a direct impact on the sales market and agencies”.
In comparison, the report says although Victoria also experienced a high number of agencies recording declines in agency revenue and gross sales commissions (46% and 52% respectively), “what is known for certain is that agencies in Victoria have rent rolls that are 35% larger, by properties under management, than the national average”.
The report found that the industry has shifted to greater focus on property management with revenue from the rent roll now accounting for 42% of total revenue in 2011 compared to 36% in 2009 with the average rent roll size increasing from 375 properties in 2009 to 436 in 2012.
Nationally, 39% of agencies reported an overall increase in profit while 42% reported a decrease.
Nearly a quarter of agencies (22%) did not make a profit in the financial year, while 58% achieved a return above 10%.
The best-performing agencies (profit margins of greater than 30%) accounted for just 10% of total agencies that took part in the survey.
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One in five Queensland and WA real estate offices made a loss in 2011: Macquarie Benchmarking Report

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The Property Council of Australia (PCA) has slammed the decision of a House of Representatives Economics Committee backing the doubling of the withholding tax charged for foreign investors who invest in Australian managed investment schemes. 
Many of these managed funds are used to fund big property and infrastructure projects. The new tax rate of 15% (up from the current 7.5% rate) is due to kick in on July 1. 
Government members on the committee backed the raising of the tax rate, while Coalition members backed a position held by the PCA that the tax should be scrapped because it discourages foreign investment. 
The tax hike has also been slammed by <a href="https://www.propertyobserver.com.au/tax/lend-lease-slams-15-withholding-tax-as-property-council-fails-to-convince-wayne-swan-to-scrap-it/2012053154915" target="_blank">property developer Lend Lease</a> and the Financial Services Council, which represents fund managers and superannuation funds. 
“The evidence provided by industry shows that Treasury’s reasoning is inadequate, flawed and economically harmful,” says Property Council chief executive Peter Verwer. 
“It is particularly galling that government members endorsed Treasury’s position despite Treasury’s repeated refusal to reveal its modelling on the impacts of a higher tax on the economy.” 
“Treasury didn’t even bother to assess the impact of a higher withholding tax on the federal government’s own revenue streams.”
His comments come soon after a <a href="https://www.propertyobserver.com.au/leisure/malaysian-reit-pays-%24415-million-for-marriott-five-star-hotel-portfolio/2012061455118" target="_parent">Malaysian investment trust payed $415 million for a portfolio of three five-star Marriott hotels,</a> with the deal going ahead despite the prospect of the higher withholding tax rate “causing some friction”, according to Mark Durran and Craig Collins of Jones Lang LaSalle Hotels, who negotiated the deal. 
Verwer says Treasury’s analysis of the tax hike is flawed on three counts. 
“First, Treasury says that international investors are more interested in Australia’s AAA credit rating than tax rates.” 
“Treasury doesn’t understand that investors actively compare tax rates in different countries to assess the relative impact on their investment returns.” 
“It should be obvious that after-tax returns are critical to investor decision-making,” he says. 
Secondly, Verwer says that Treasury “ignores any difference between the headline withholding rate promoted by a country and the effective rate – the rate actually imposed on investors.” 
“Treasury has not done its homework and has been conned into believing that other countries apply a 15% rate.” 
“In fact, most countries charge pension funds withholding tax of 5% or less, many charge zero.” 
“Other countries are determined to attract the patient equity capital of large pension funds, particularly when debt markets are increasingly unstable.”
“By doubling our withholding tax rate, Australia reduces its ability to compete with the lower effective rates of other countries.”
Lastly, Verwer says: “Treasury has failed to realise that a higher withholding tax will scare off international investors, which will reduce both economic activity and government revenue flows.”
“You can’t tax investment that doesn’t occur.” 
Verwer pointed to a recently released Allen Consulting Group report modelling the impact of the proposed withholding tax increase on tax takings and the broader economy. 
The report, commissioned by the PCA, shows that by 2015-16, instead of collecting $75 million, state and federal governments will only receive $36 million and GDP will shrink by $30 million. 
Both the Property Council and Financial Services Council say they have evidence that more than a $1 billion of global funds have already been directed to other countries or frozen, following the 2012 federal budget announcement.
In its defence, the government claims the new tax rate is a better balance of the needs of Australia to remain an attractive destination for foreign investors while ensuring a fair return.
Treasury is estimating a tax return of $260 million over four years generated from the withholding tax.
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Treasury’s doubling of withholding tax ‘flawed and economically harmful’: Property Council

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Another iconic Australian live music venue could one day become a residential development following the listing of the Tivoli live music venue in Fortitude Valley in inner Brisbane. 
The 1,500-seat music venue with its Art Deco façade is located at 48-52 Costin Street in and is considered one of Fortitude Valley’s premier live entertainment venues, hosting recent performances by Katy Perry and Lily Allen. 
It follows the listing of the former <a href="https://www.propertyobserver.com.au/leisure/jerry-pilarinos-melbourne-venue-the-palace-formerly-the-metro-nightclub-listed-for-receivership-sale/2012061955174">Metro nightclub</a> – currently The Palace live music venue – in Melbourne. 
The Tivoli is being marketed by Leon Alaban and Sean Dollar of Ray White Hotels Australia on behalf on behalf of Dromahair Pty Ltd, which acquired it in 1999 for $1.65 million and has operated it as a music venue since. 
John O’Rourke – part of the O’Rourke property development family – is the managing director of Dromahair Pty Ltd, a hospitality business based in NSW, and has also been the manager of the Tivoli since 2004. 
Since purchasing the Tivoli he has invested millions in turning it into a premier music venue. 
O’Rourke is also the managing director and owner of Longyard Golf course in Tamworth and Strutters Nightclub in Rockhampton. 
The venue, which occupies a site area of approximately 2,160 square metres, is licensed to operate from 10am to 2am, Monday to Sunday. 
It will be auctioned onsite at 11am on Wednesday, July 18, 2012. 
Alaban says the O’Rourke family have decided to sell the Tivoli as a freehold going concern. 
“The O’Rourke family have decided to divest the Tivoli, as it forms part of a family trust and is therefore being sold to dissolve the trust and pay out the beneficiaries,” he says. 
A price well in excess of the previous selling price is expected, with Alaban telling Property Observer the O’Rourke family is putting it to auction to let the market decide its value. 
Potential buyers include entertainment promoters looking for a foothold in the industry as well as investors who would want to turn the Tivoli into a residential development further down the track. Hoteliers and pub and tavern owners may also show interest, says Alaban. 
The Tivoli has no development approval and is currently zoned for small recreation or nightclub use with an eight-storey height limit. 
There is no heritage protection for the property. 
The Tivoli, which has a distinctive Art Deco façade, was built in 1917 and started life as bakery.
It adjoins the massive $2.9 billion redevelopment of the RNA Showgrounds on the northern fringe of Fortitude Valley. 
“The showgrounds precinct is set to be transformed into a lifestyle and cultural hub for the community which will have enormous economic and infrastructure benefits to Brisbane and the immediate surrounding areas,” says Alaban.
“The venue presents immaculately and has an enviable reputation throughout the entertainment industry,” he says. 
“The Art Deco-style auditorium with mezzanine holds 1,500 standing or 700 seated patrons. The Tivoli also features a reception and foyer, a main bar, lower bar, mezzanine bar, artists lounge, kitchen and designated outdoor smoking area.”
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Brisbane’s Art Deco Tivoli nightspot up for sale and could be potential residential development site

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HSBC chief economist Paul Bloxham and Westpac senior international economist Huw McKay have come to different conclusions about rate cut expectations for the remainder of 2012 following the release of the minutes from the June 1 RBA monetary policy meeting.
Bloxham expects just one more 25-basis-point rate cut this year, taking the cash rate to 3.25%, while McKay expects three more taking the cash rate to 2.75% by December.
“We think the RBA is probably a little ahead of the curve, having cut rates last month,” says Bloxham. 
“With global risks still tilted to the downside, we continue to expect that there may still be one more 25 basis points cut in the second half of 2012, but it is a close call,” he says. 
Bloxham says interest rate markets pricing in 90 basis points in cuts is “overdone”.
He notes the more “upbeat” nature of the minutes compared with the post-meeting statement.
“Today's minutes reiterated that the 25-basis-point cut in June was insurance against the possible effect of weakening global conditions, which was afforded because inflation is expected to remain low. In their view, local conditions had not significantly weakened. 
“They also told us that the RBA viewed the decision to cut rates on 5 June as 'finely balanced'. 
“We agree. As we noted before the meeting, our view was that local conditions did not warrant a further cut in interest rates. The minutes seem to suggest that on local conditions alone, they would probably have left rates steady. But the cut was in response to weakening global conditions.” 
McKay, however, says the best policy response from the RBA would be to reduce the cash rate by a further 75 basis points by the end of the year.
“The month-to-month path for the policy rate to achieve that end point is difficult to define precisely, with the fluid nature of the European picture making the potential timing more event-driven than is usual,” he says.
“We feel that the best policy response given the balance of domestic and international forces would be to deliver 25 basis points cuts at successive meetings in July and August, before a final move in the December quarter.”
McKay agreed with Bloxham that the June decision was a difficult one for the RBA board, which was ultimately swayed in favour of a rate cut by global concerns.
“The minutes to the board meeting of June 5, which resulted in a 25-basis-point cut in the policy rate to 3.5%, imply very strongly that a large cut was not countenanced, and that if the decision was being made solely on domestic grounds, a cut would not have been delivered,” McKay says.
“The rationale seems to have been that there were enough elements of resilience in the domestic figures for the bank to take some time to assess the impact of past easing on activity, but that with the potential for global tensions to ‘intensify’ precautionary behaviour, the ‘finely balanced’ arguments turned in favour of a cut.”
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HSBC expects one more rate cut following RBA June meeting, but Westpac says minutes suggest three more by December

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Watched by millions of DIY renovation fans, contestants on The Block 2012 worked hard to renovate their South Melbourne terraces in the hopes of securing the prize winning highest price at auction, scheduled for June 30.
Contestants may have high hopes of <a target="_blank" href="https://www.propertyobserver.com.au/auctions/with-%2453-million-outlay-the-block-2012-terraces-will-have-to-outperform-south-melbourne-market-to-make-close-to-a-profit/2012060454976">sale prices around the $1.2 million mark</a> but could struggle to achieve this given recent sales history.
This year there have been 12 sales of South Melbourne terraces with only four disclosing their prices, resulting in an average price of just over $1 million.
It wasnt helped this week with <a target="_blank" href="/news">South Melbourne</a> one of six suburbs to drop off the $1 million median house price perch over the past 12 months following soft trading conditions , according to first quarter 2012 figures released by the Real Estate Institute of Victoria.
The suburb had a median selling price for the first three months of the year of $967,000, according to the REIV.
RP Data put South Melbourne's median house price at a lower $925,000, down 11% over the year. But it is up 47% over the past five years. RPData suggests that the median price for houses priced over $750,000 sits at $1.068 million.
On the positive side, alternate figures compiled by Australian Property Monitors (APM) for the six months to March 2012 revealed South Melbourne to be the top-performing Melbourne suburb, with median house prices up 22.5% to $1 million, ahead of Mont Albert (up 22.4% to $1.2 million) and Fitzroy (up 22%t to $955,000).
According to Robert Larocca, spokesman for the REIV, the sale at auction of a two-bedroom terrace at 304 Moray Street at the end of March most closely resembles the type of properties that feature on The Block.
The Moray Street terrace (below) sold at auction for <a target="_blank" href="https://www.propertyobserver.com.au/https://www.thehomepage.com.au/property/residential/304-moray-street-south-melbourne/413387">$1.06 million through David Wood of Hocking Stuart Albert Park</a>.
<img src="/images/stories/2012/06/morayst.jpg">
According to the REIV, since January 1 2011 there have been 27 sales of South Melbourne terraces, of which nine vendors have disclosed the selling price.
Based on disclosed sales, two-bedroom sales have averaged $1.13 million, three-bedroom terraces have averaged $1.3 million and one four-bedroom terrace sold for $1.8 million in April last year.
<table cellpadding="0" cellspacing="0" border="0" style="width: 470px;">
<colgroup>
<col width="99">
<col width="64">
<col width="23">
<col width="71">
<col width="123">
<col width="221">
<col width="64">
</colgroup>
<tbody>
<tr height="17">
<td width="99" height="17">Street number</td>
<td width="64">Street</td>
<td width="23"></td>
<td width="71">SaleDate</td>
<td width="123">Sale Price</td>
<td width="221">Agent</td>
<td width="64">Bedrooms</td>
</tr>
<tr height="17">
<td height="17">308</td>
<td>Albert</td>
<td>Rd</td>
<td align="right">26/05/2012</td>
<td>$1,050,000</td>
<td>Greg Hocking</td>
<td>2</td>
</tr>
<tr height="17">
<td height="17">67</td>
<td>Nelson</td>
<td>Rd</td>
<td align="right">26/05/2012</td>
<td></td>
<td>Marshall White &amp; Co Pty Ltd</td>
<td>2</td>
</tr>
<tr height="17">
<td height="17">164</td>
<td>Cecil</td>
<td>St</td>
<td>19/05/2012</td>
<td>$1,060,000</td>
<td>Hocking Stuart</td>
<td>3</td>
</tr>
<tr height="17">
<td height="17">18</td>
<td>Howe</td>
<td>Cr</td>
<td align="right">12/05/2012</td>
<td></td>
<td>Greg Hocking</td>
<td>3</td>
</tr>
<tr height="17">
<td height="17"></td>
<td>Bank</td>
<td>St</td>
<td>11/4/2012</td>
<td></td>
<td>Cayzer Real Estate</td>
<td>3</td>
</tr>
<tr height="17">
<td height="17">304</td>
<td>Moray</td>
<td>St</td>
<td>24/3/2012</td>
<td>$1,060,000</td>
<td>Hocking Stuart</td>
<td>2</td>
</tr>
<tr height="17">
<td height="17">162</td>
<td>Nelson</td>
<td>Rd</td>
<td>25/2/2012</td>
<td>$1,300,001</td>
<td>Cayzer</td>
<td>2</td>
</tr>
<tr height="17">
<td height="17">141</td>
<td>Napier</td>
<td>St</td>
<td>3/12/2011</td>
<td>$925,000</td>
<td>Hocking Stuart</td>
<td>3</td>
</tr>
<tr height="17">
<td height="17"></td>
<td>Raglan</td>
<td>St</td>
<td>1/12/2011</td>
<td></td>
<td>Marshall White &amp; Co Pty Ltd</td>
<td>3</td>
</tr>
<tr height="17">
<td height="17"></td>
<td>Ferrars</td>
<td>St</td>
<td>24/11/2011</td>
<td></td>
<td>Hocking Stuart (Albert Park) Pty Ltd</td>
<td>3</td>
</tr>
<tr height="17">
<td height="17">168</td>
<td>Napier</td>
<td>St</td>
<td>22/10/2011</td>
<td></td>
<td>Hocking Stuart</td>
<td>2</td>
</tr>
<tr height="17">
<td height="17">47</td>
<td>Cobden</td>
<td>St</td>
<td>21/8/2011</td>
<td></td>
<td>Cayzer</td>
<td>2</td>
</tr>
<tr height="17">
<td height="17">297</td>
<td>Dorcas</td>
<td>St</td>
<td>6/8/2011</td>
<td>$1,320,000</td>
<td>Cayzer</td>
<td>3</td>
</tr>
<tr height="17">
<td height="17">401</td>
<td>Dorcas</td>
<td>St</td>
<td>17/6/2011</td>
<td></td>
<td>Buxton</td>
<td>3</td>
</tr>
<tr height="17">
<td height="17">403</td>
<td>Dorcas</td>
<td>St</td>
<td>17/6/2011</td>
<td></td>
<td>Buxton</td>
<td>5</td>
</tr>
<tr height="17">
<td height="17">405</td>
<td>Dorcas</td>
<td>St</td>
<td>17/6/2011</td>
<td></td>
<td>Buxton</td>
<td>4</td>
</tr>
<tr height="17">
<td height="17">407</td>
<td>Dorcas</td>
<td>St</td>
<td>17/6/2011</td>
<td></td>
<td>Buxton</td>
<td>4</td>
</tr>
<tr height="17">
<td height="17">364</td>
<td>Park</td>
<td>St</td>
<td>18/5/2011</td>
<td></td>
<td>Kay &amp; Burton Albert Park</td>
<td>4</td>
</tr>
<tr height="17">
<td height="17"></td>
<td>Dorcas</td>
<td>St</td>
<td>29/4/2011</td>
<td>$1,300,000</td>
<td>Cayzer Real Estate</td>
<td>3</td>
</tr>
<tr height="17">
<td height="17">36</td>
<td>Ferrars</td>
<td>Pl</td>
<td>1/4/2011</td>
<td>$1,800,000</td>
<td>Cayzer Real Estate</td>
<td>4</td>
</tr>
<tr height="17">
<td height="17"></td>
<td>Nelson</td>
<td>Rd</td>
<td>12/3/2011</td>
<td>$1,700,000</td>
<td>Cayzer</td>
<td>3</td>
</tr>
</tbody>
</table>
In the two years prior (2009 and 2010) REIV counts 40 sales of South Melbourne terraces, with all but three vendors willing to disclose the selling price.
Based on disclosed prices from 2009 to end of May 2012:
Two-bedroom terrace prices have ranged from $810,000 to $1.3 million.
Three-bedroom terrace prices have ranged from $710,000 to $2.17 million
Four-bedroom terrace prices have ranged from $850,000 to $2.25 million
The most recent sale was this <a target="_blank" href="https://www.domain.com.au/Property/For-Sale/House/VIC/South-Melbourne/?adid=2009656432">two-bedroom terrace at 308 Albert Street</a> (below), which sold at auction on May 26 for $1.05 million through Greg Hocking having had a $900,000-plus asking price.
<img src="/images/stories/2012/06/albertst1.jpg">
Also over the same weekend, this two-bedroom corner terrace (below) sold in a private sale for an undisclosed priced through Marshall White. It had a price guide of $695,000.
<img src="/images/stories/2012/06/terrace1.jpg">
The top sale for 2012 has been the $1.3 million paid for a two-bedroom terrace at 162 Nelson Road. This <a target="_blank" href="https://realestate.melbourneweeklyportphillip.com.au/overview/3312510/162-nelson-road-south-melbourne-3205/">1960s terrace</a> (below) sold at auction through Cayzer Real Estate’s Michael Szulc and Simon Carruthers and was aimed (given its ungainly appearance) at the renovation market:
<img src="/images/stories/2012/06/nelson.jpg">
But The Block contestants are unlikely to get anywhere near the top sale of the past three years, which was this <a href="https://www.realestate.com.au/property-house-vic-south+melbourne-106135143.pdf?15b1d46d6819249753bc9cee2184f96e">four-bedroom terrace on two street frontages of land at 21 Ferrars Place</a> (below), which sold under the hammer for $2.25 million through Hocking Stuart in December 2009.
<img src="/images/stories/2012/06/ferrars.jpg" width="470">
The cheapest recent sale has been this modern three-bedroom terrace on Napier Street (below), which sold for <a href="https://www.realestate.com.au/property-house-vic-south+melbourne-108600571">$925,000</a> at auction in December last year through David Wood from Hocking Stuart Albert Park.
<img src="/images/stories/2012/06/napier2.jpg" width="470">
This most expensive property sold over since January 2011 is this grand, renovated <a href="https://www.realestate.com.au/property-house-vic-south+melbourne-107253317">four-bedroom terrace at 36 Ferrars Place</a> (below), which sold at auction in February for $1.8 million through Cayzer Real Estate.
<img src="/images/stories/2012/06/ferrars2.jpg" width="470">
The listing describes it as an “architect-renovated dress-circle gem … a wonderful blend of period features and contemporary finishes embrace you upon entering this warm home with style”.
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South Melbourne terrace sale prices: A guide for The Block 2012 contestants and June 30 auction bidders

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The continued deterioration of the housing market despite lenders reducing mortgage interest rates to well below 1996 levels was discussed by the Reserve Bank board before it cut the cash rate by 25 basis points on June 1.
Overall, the minutes of the meeting  indicate that fears of a “softening” global situation spilling over into “precautionary behaviour” in Australia prompted the RBA to reduce the cash rate by 25 basis points at its June 1 monetary policy meeting.
It says the decision to cut rates was “finely balanced”.
The RBA notes that “in aggregate, housing prices continued to decline, and activity in the housing market remained weak”.
The board also acknowledged challenges facing new home construction, noting a “sharp fall in dwelling approvals in April partly accentuated by the introduction of new legislative guidelines in Western Australia”.
The RBA highlights that mortgage rates continue to fall and are now well below the average rate of more than 25 years.
“Short-term interest rates in Australia had fallen sharply following the board's decision in early May to lower the cash rate by 50 basis points,” says the RBA board.
“Following the cash rate announcement, most lenders had reduced their standard variable housing rates by between 30 and 40 basis points.
“As a result, the average interest rate on outstanding housing loans at present was about 40 basis points below the post-1996 average, while rates on small and large business loans were 30 and 60 basis points lower, respectively. Members discussed the strong competition among banks for term deposits and the continuing pressure this was having on the funding costs for Australian banks.”
The RBA notes that overall, data on the domestic economy appeared to be broadly consistent with the central bank's most recent forecasts.
“In particular, employment growth was picking up gradually, but the unemployment rate was still expected to move somewhat higher over the coming quarters. Output growth was expected to increase towards trend over the remainder of this year, and inflation (excluding the impact of the carbon tax) was expected to remain in the lower part of the 2% to 3% range.”
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RBA notes continuing decline in house prices despite low mortgage interest rates at June 1 meeting

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Mortgage lenders have been warned they must give equal prominence to the comparison rate when advertising mortgage products online.
This follows non-bank lender Resi agreeing to change its online home loan advertising following ASIC concerns the ads “failed to adequately disclose the comparison rate on its home loans”. The comparison rate is a single figure that includes both the interest cost and the other major fees and charges for a loan, making it easier for consumers to shop around and compare loans.
The National Consumer Credit Protection Act 2009 (National Credit Act) requires any advertising of loan interest rates to include a “comparison rate” in equal prominence.
In the case of Resi, ASIC says it was concerned “that the ad’s comparison rate wasn’t prominent enough and although the required statutory warning about the accuracy of the comparison rate was given, there was no clear reference to that warning.  “In a separate part of the website Resi included a table of other home loan products together with their interest rates but did not include any comparison rates,” says the corporate watchdog. “ASIC strongly encourages credit providers and brokers to carefully review advertising practices and all promotional materials to ensure compliance with the National Credit Act as well as ASIC’s expectations.”  ASIC commissioner Peter Kell says: “consistent disclosure of comparison rates in marketing material is a key tool for consumers trying to shop around and find the best rate on their home loan, and ASIC is closely monitoring this area.  “ASIC will act when advertisements don't comply with the law,” he adds.  ASIC acknowledged that Resi was co-operative in responding to its concerns and “promptly corrected its website”.
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ASIC demands equal prominence for mortgage comparison rate in online mortgage 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.

&nbsp;

[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.

&nbsp;

[smartcode_project_cta:default project_id=152737]

<h3 data-end="3697" data-section-id="q3n5ak" data-start="3672">&nbsp;</h3>
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Larry Schlesinger

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