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A lack of infrastructure and long commutes are likely to prevent property values rising in Melbourne’s six new suburbs, says market commentator Monique Sasson Wakelin.
Speaking on ABC radio, Wakelin said one of the limitations of people who live out there will be that they will be “reliant on V-Line [trains] and/or their car”.
“Given the distances we are talking about out of the city, where most of the employment opportunities are, there limitations to what people can expect in the medium term and even in the long term in terms of capital appreciation,” Wakelin says.
The six new suburbs are Diggers Rest near Sunbury, Lockerbie near Greenvale, Lockerbie North, Manor Lakes in Wyndham, Merrifield West in the city of Hume and Rockbank North near Melton.
They extend Melbourne’s urban growth boundary by almost 6,000 hectares of former farm and green wedge land.
They are between 20 to 40 kilometres from the Melbourne CBD, with Lockerbie North the furthest away and Rockbank North the closest at about 20 kilometres.
Rockbank North and Lockerbie are serviced by nearby but busy V/Line rail stations, with a rail station is ''proposed'' in Lockerbie but there is no timeline for its completion.
However, Wakelin says for those aspiring to buy own homes but have very limited funds to do it, “this is a fabulous opportunity to get in”.
She says the new suburbs present opportunities for those wanting their own home on a relatively large block and with access to the bush – as long as buyers don’t mind the commute.
“It’s a heck of a commute – let’s face it … and not very green either if you are taking the car or going by train,” she says.
“If you’re feeling energetic, on a nice day when it’s not teeming with rain or very hot, you could push-bike it in.”
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Little capital appreciation likely in six new Melbourne suburbs due to lack of transport: Monique Sasson Wakelin

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The national residential vacancy rate remained unchanged at a tight 1.8% in May, with Melbourne having the highest number vacancies and the highest vacancy rate, according to SQM Research. 
There are currently 50,408 residential vacancies nationally, representing a fall of 440 vacancies month-on-month.
Year-on-year however, vacancies have risen by 7,270, with the national vacancy rate increasing by 0.2% since May 2011. 
None of the eight capital cities recorded an increase in the vacancy rate over the month, with vacancies tightening by 0.1% in Brisbane, Canberra and Darwin in May. 
Melbourne has the highest vacancy rate by far at 3.1%, while Darwin is the tightest market with just 100 vacancies, or a vacancy rate of 0.4%. 
The Real Estate Institute of Australia (REIA) says a vacancy rate of 3% or higher is “generally considered to reflect an oversupply of rental accommodation” while anything under 3% indicates a “strong demand for rental accommodation”.
 
Here’s a guide to residential vacancies in the eight capital cities starting with Melbourne:
<img src="/images/stories/2012/06/11427.gif">
The number of residential vacancies in Melbourne, reflecting a May vacancy rate of 3.1%. A year ago the vacancy rate was 2.4%, with 8,578 properties available for rent.
 
<hr>
<img src="/images/stories/2012/06/9140.gif">
The number of residential vacancies in Sydney, reflecting a May vacancy rate of 1.7%. A year ago the vacancy rate was 1.3%, with 7,034 properties available for rent.
 
<hr>
<img src="/images/stories/2012/06/4120.gif">
The number of residential vacancies in Brisbane, reflecting a May vacancy rate of 1.4%. A year ago the vacancy rate was 1.6%, with 4,584 properties available for rent.
 
<hr>
 
<img src="/images/stories/2012/06/2680.gif">
The number of residential vacancies in Adelaide, reflecting a May vacancy rate of 1.6%. A year ago the vacancy rate was 1.3%, with 2,041 properties available for rent.
 
<hr>
<img src="/images/stories/2012/06/1157.gif">
The number of residential vacancies in Perth, reflecting a May vacancy rate of 0.6%. A year ago the vacancy rate was 1%, with 1,770 properties available for rent
 
<hr>
<img src="/images/stories/2012/06/753.gif">
The number of residential vacancies in Hobart, reflecting a May vacancy rate of 2.6%. A year ago the vacancy rate was 1.7%, with 467 properties available for rent.
 
<hr>
 
<img src="/images/stories/2012/06/434.gif">
The number of residential vacancies in Canberra, reflecting a May vacancy rate of 0.9%. A year ago the vacancy rate was 0.6%, with 272 properties available for rent.
 
<hr>
<img src="/images/stories/2012/06/100d.gif">
The number of residential vacancies in Darwin, reflecting a May vacancy rate of 0.4%. A year ago the vacancy rate was 1.3%, with 317 properties available for rent.
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Residential vacancies at 1.8% nationally in May with Melbourne's landlords facing biggest challenge at 3.1%: SQM 

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One of Melbourne’s most well-known nightspots and the former site of the Metro nightclub has been listed for sale by receivers Ferrier Hodgson, with Asian developers and nightclub operators showing interest.
The building dates back 100 years, starting life as a cinema.
The three-storey building, currently operating as live music venue The Palace, will be marketed exclusively by CBRE sales agents Mark Wizel, Josh Rutman and Scott Callow via an international public tender campaign closing on July 27.
The building is stands at 20-30 and 30A Bourke Street in the Melbourne CBD between Spring and Exhibition streets on a 1,442-square-metre site with 25 metres of Bourke Street frontage.
It is just a stone’s throw from the Victorian Parliament and well-known Melbourne eateries Grossi Florentino, The European and Pelligrini’s.
Wizel says early developer interest has “centred on the highest and best use for the property being a high-density residential project subject to the relevant planning approvals”.
“Sites of this size at the top end of Bourke Street 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.”
The property is also expected to attract both investors and potential owner-occupiers, given the highly lettable existing improvements – acts at the Palace have included Kylie Minogue, The Darkness and Kaiser Chiefs.
Callow says there has also been strong early interest from nightclub operators and publicans who could look “to restore ‘The Metro’ to its former glory days as one of Melbourne’s leading music and entertainment venues.”
Receiver and Ferrier Hodgson partner George Georges, who was appointed in February this year, says the landmark property had already generated significant interest.
“The Metro is well known as part of the fabric of life in central Melbourne,” he says.
“It’s a brilliantly located site with a huge variety of optional uses and tremendous potential for development.”
The 100-year old building has also been home to the Melbourne Revival Centre.
The property with reported $15 million expectations is owned by Kefi Nominees, directed by nightclub identity and property developer Jerry Pilarinos.
It has been put up for sale by Ferrier Hodgson after Pilarinos’s company Kefi Nominees was forced into administration by Bankwest.
Kefi acquired it in 2007 for $10 million from Irene Meletsis.
Kefi listed The Metro for sale in May last year through Colliers International with an asking price of $20 million as a residential development site, but without a building permit.
At the same time as Kefi listed The Metro for sale, Fairfax Media reported that Pilarinos sold an apartment project, the Tresor on the north-west corner of Chapel Street and Alexandra Avenue, to builder Fridcorp for around $13 million.
He also failed last year in a court bid to recoup $500,000 he invested into small technology company Computronics Holdings.
Songstress Lana Del Rey is listed as next to perform at the Palace, with 1980s icon Rick Astley appearing in November.
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Jerry Pilarinos' Kefi Nominees set to sell Melbourne venue The Palace, formerly the Metro nightclub

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Collapsed builder Reed Construction is confident of winning a legal claim of between $50 million and $60 million from the NSW govermnment with Reed Group owner Geoff Reed saying he will use the money to pay back around $70 million owed mainly to sub-contractors.
"Reed Constructions Australia Pty Ltd was forced into voluntary administration following the Roads and Maritime Services' (RMS) premature and unreasonable action in terminating its contracts with Reed Constructions, combined with both RMS and Department of Education and Communities Ministers announcing  that their respective departments do not owe Reed any money," said Geoff Reed in a statement on the company website.
"This assertion by the Ministers is not only premature and an apparent breach of the confidential Expert Panel process, but also contrary to Reed’s genuine belief that in excess of $60 million are owed by these Departments."
Reed says its financial difficulties have been caused by "issues solely relating to the matters in dispute with the NSW Government".
Last week Reed joined a long list of failing building companies after being placed in the hands of administrators with debts of about $70 million.
Other prominent building groups to collapse recently include 100-year-old builder <a href="https://www.propertyobserver.com.au/news/kell-rigby-one-of-australia-s-oldest-most-respected-building-companies-set-for-voluntary-administration/2012020853012" target="_blank">Kell &amp; Rigby</a> and <a href="https://www.propertyobserver.com.au/news/st-hilliers-founder-says-government-owes-it-millions-but-reed-group-government-claim-rejected/2012052854859" target="_blank">St Hilliers Construction</a>.
Ferrier Hodgson partners John Melluish and Ryan Eagle were appointed administrators of Reed Construction as well as administrators of RST Nominees Pty Limited on June 15, 2012.
Most of the $70 million is owed to around 2,000 sub-contractors, who are listed as unsecured creditors, ranking behind employees.
Sub-contractors are being represented by debt-collecting company Recoup.
Melluish and Eagle say they will undertake an “urgent assessment of the financial position of the companies”.
“We will be doing everything we can to provide key stakeholders with clarity about the future of the company,” says Melluish.
“Reed Constructions suffered a number of losses on contracts largely arising from an inability to recover additional costs.”
A first meeting of creditors will be held on June 27 in Sydney.
Last month Reed Constructions was dropped as the contractor of four major NSW road projects after it failed to meet a deadline to prove that more than $200 million of works could be finished on time.
Reed claims it is owed money from the road projects as well as on work done on the government’s Building for the Education Revolution projects, a claim rejected by the NSW Department of Education.
Problems at Reed Constructions were highlighted as far back as February by NSW opposition leader John Robertson, who warned that the firm was on the brink of collapse with more than 1,500 jobs at risk.
The Reed website directs readers to the administrators’ statement.
Other businesses within the Reed Group will continue to operate as normal.
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Contractors must wait in line as Reed Construction prepares to sue NSW government following $70 million collapse

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The Commonwealth Bank is telling everyone it “CAN”, but it is ANZ and NAB that are steaming ahead this year when it comes to lending to owner-occupiers.
Analysis of APRA banking figures for the first four month of 2012 show that ANZ has written nearly $3.8 billion in owner-occupier mortgages and NAB more than $3.3 billion, growth of 3.2% and 2.6% respectively.
In comparison the Commonwealth Bank has written just $1.29 billion in new loans between January and the end of April (growth of 0.7%) while Westpac (including all its subsidiary brands) ranks outside the top four, managing $1.05 billion in new mortgages (growth of 0.6%).
Bankwest, owned by the Commonwealth Bank, wrote $1.46 billion (up 4%) in new loans ranking as the third biggest lender of 2012 with Suncorp also prominent with new lending totalling $1.14 billion – an increase of 5% over the first four months of the year.
 
<table cellpadding="0" cellspacing="0" border="1" style="width: 470px;"><tbody>
<tr>
<td valign="top" nowrap width="62">
Rank
</td>
<td valign="top" nowrap width="155">
Bank
</td>
<td valign="top" nowrap width="82">
New lending Jan 1 to April 30
</td>
<td valign="top" nowrap width="92">
loan book  April 2012
</td>
<td valign="top" nowrap width="84">
loan book Dec 2011
</td>
</tr>
<tr>
<td valign="top" nowrap width="62">
1
</td>
<td valign="top" nowrap width="155">
ANZ
</td>
<td valign="top" nowrap width="82">
$3,795
</td>
<td valign="top" nowrap width="92">
$122,199
</td>
<td valign="top" nowrap width="84">
$118,404
</td>
</tr>
<tr>
<td valign="top" nowrap width="62">
2
</td>
<td valign="top" nowrap width="155">
NAB
</td>
<td valign="top" nowrap width="82">
$3,310
</td>
<td valign="top" nowrap width="92">
$128,602
</td>
<td valign="top" nowrap width="84">
$125,292
</td>
</tr>
<tr>
<td valign="top" nowrap width="62">
3
</td>
<td valign="top" nowrap width="155">
BankWest
</td>
<td valign="top" nowrap width="82">
$1,456
</td>
<td valign="top" nowrap width="92">
$37,098
</td>
<td valign="top" nowrap width="84">
$35,643
</td>
</tr>
<tr>
<td valign="top" nowrap width="62">
4
</td>
<td valign="top" nowrap width="155">
CBA
</td>
<td valign="top" nowrap width="82">
$1,287
</td>
<td valign="top" nowrap width="92">
$177,874
</td>
<td valign="top" nowrap width="84">
$176,588
</td>
</tr>
<tr>
<td valign="top" nowrap width="62">
5
</td>
<td valign="top" nowrap width="155">
Suncorp
</td>
<td valign="top" nowrap width="82">
$1,143
</td>
<td valign="top" nowrap width="92">
$22,004
</td>
<td valign="top" nowrap width="84">
$20,861
</td>
</tr>
<tr>
<td valign="top" nowrap width="62">
6
</td>
<td valign="top" nowrap width="155">
Westpac
</td>
<td valign="top" nowrap width="82">
$1,047
</td>
<td valign="top" nowrap width="92">
$167,292
</td>
<td valign="top" nowrap width="84">
$166,244
</td>
</tr>
<tr>
<td valign="top" nowrap width="62">
7
</td>
<td valign="top" nowrap width="155">
Bendigo &amp; Adelaide Bank
</td>
<td valign="top" nowrap width="82">
$787
</td>
<td valign="top" nowrap width="92">
$14,295
</td>
<td valign="top" nowrap width="84">
$13,508
</td>
</tr>
<tr>
<td valign="top" nowrap width="62">
8
</td>
<td valign="top" nowrap width="155">
Bank of Queensland
</td>
<td valign="top" nowrap width="82">
$381
</td>
<td valign="top" nowrap width="92">
$12,095
</td>
<td valign="top" nowrap width="84">
$11,714
</td>
</tr>
<tr>
<td valign="top" nowrap width="62">
9
</td>
<td valign="top" nowrap width="155">
Macquarie Bank
</td>
<td valign="top" nowrap width="82">
$287
</td>
<td valign="top" nowrap width="92">
$1,951
</td>
<td valign="top" nowrap width="84">
$1,664
</td>
</tr>
<tr>
<td valign="top" nowrap width="62">
10
</td>
<td valign="top" nowrap width="155">
Members Equity Bank
</td>
<td valign="top" nowrap width="82">
$260
</td>
<td valign="top" nowrap width="92">
$4,360
</td>
<td valign="top" nowrap width="84">
$4,099
</td>
</tr>
<tr>
<td valign="top" nowrap width="62">
11
</td>
<td valign="top" nowrap width="155">
Citigroup
</td>
<td valign="top" nowrap width="82">
$243
</td>
<td valign="top" nowrap width="92">
$5,011
</td>
<td valign="top" nowrap width="84">
$4,767
</td>
</tr>
<tr>
<td valign="top" nowrap width="62">
12
</td>
<td valign="top" nowrap width="155">
AMP Bank
</td>
<td valign="top" nowrap width="82">
$201
</td>
<td valign="top" nowrap width="92">
$5,333
</td>
<td valign="top" nowrap width="84">
$5,132
</td>
</tr>
<tr>
<td valign="top" nowrap width="62">
13
</td>
<td valign="top" nowrap width="155">
ING Direct
</td>
<td valign="top" nowrap width="82">
$166
</td>
<td valign="top" nowrap width="92">
$27,878
</td>
<td valign="top" nowrap width="84">
$27,712
</td>
</tr>
<tr>
<td valign="top" nowrap width="62">
14
</td>
<td valign="top" nowrap width="155">
Heritage Bank
</td>
<td valign="top" nowrap width="82">
$115
</td>
<td valign="top" nowrap width="92">
$3,014
</td>
<td valign="top" nowrap width="84">
$2,899
</td>
</tr>
<tr>
<td valign="top" nowrap width="62">
15
</td>
<td valign="top" nowrap width="155">
HSBC Bank Australia
</td>
<td valign="top" nowrap width="82">
$40
</td>
<td valign="top" nowrap width="92">
$3,500
</td>
<td valign="top" nowrap width="84">
$3,460
</td>
</tr>
</tbody></table>
Source: APRA Figures are in millions
Suncorp Bank head of personal lending Tony Meredith attributes the growth in its mortgage lending pipeline in recent months to “an attractive product and service proposition in target markets and a renewed focus on the broker channel”.
Growth has come from the bank’s key target markets in the mortgage space – refinancers and first-home owners.
“We’ve been growing strongly in the broker space, having reaffirmed our commitment to, and investment in, this important channel through a range of technology, commission and servicing improvements,” Meredith tells Property Observer.
“Suncorp Bank consistently has greater customer satisfaction scores than the major banks for both personal and business lending. We continue to see disenfranchised customers of the major banks make the switch to Suncorp Bank, testament to our strong customer proposition in making it easier to get a good value home loan, suited to the individual’s needs.”
Smaller banks feature prominently on the list, with Bendigo &amp; Adelaide Bank managing mortgage lending growth of 5.8% and Members Equity bank 6.3%.
ING, which has the sixth biggest mortgage book (or fifth if you put Commonwealth Bank and Bankest together) has written just $166 million in new owner-occupier mortgages over the first four months of the year and ranks 13th, behind a swathe of smaller lenders.
Lisa Claes, executive director of direct business at ING Direct, says the bank is satisfied with its current rate of mortgage growth, which she says is “on a par of where it has been since the GFC”.
“We are not driven by market share targets, but by a sustainable growth proposition.
“We want to grow our mortgage book responsibly – we are happy with where we are, but we are not complacent,” she says.
Macquarie Bank, which grew its investment housing lending book by 33% over the same four-month period, was also the top owner-occupier lender in percentage terms, growing its book by 17% and benefiting from its closer ties to the mortgage broker market.
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ANZ and NAB steamrolling over CommBank and Westpac in owner-occupier mortgage lending

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A growing number of self-managed super fund investors are using related-party loans to buy property, but they should tread carefully, according to Heather Gray, a partner at DLA Piper and chairwoman of the Superannuation Committee of the Law Council of Australia.
Related-party loans are those provided by a member of the fund or by a family member and can seem an attractive option SMSF investors providing funding at a higher loan-to-value ratio (LVR) and lower interest rates than those provided by a bank.
But Gray says the issue of related-party loans came up very often for advisors in relation to “compliance issues”.
Her warning comes as Australian National Audit Office (ANAO) reports of the continuing growth of the SMSF sector, with 32,875 new funds registered in 2010-11 compared with 29,578 in the previous financial year, taking the total number of SMSFs as of June 2011 to 442,528 with 841,283 members.
Click to enlarge
<a title="Click to enlarge" href="/images/stories/2012/06/anao.gif" rel="shadowbox"><img src="/images/stories/2012/06/anaothumb.gif"></a>
Gray says the ATO views related-party loans in the same way it views investments made into the fund that are not at arm’s length.
“If the interest rate is too low the ATO may look at the deal and say, ‘This is a sham’ – it’s not really a loan but a contribution and just a way of getting money into the fund without breaching the contribution cap,” Gray told delegates at the 2012 Institute of Chartered Accountants in Australia’s Business Forum.
“You would then be taxed unfavourably because you exceeding the contribution cap and all the advantages of borrowing through your SMSF [to acquire property] would be lost.”
Conversely, if the interest rate is too high the ATO may rule that it breaches the sole purpose test through providing a “non-retirement” benefit to the members.
In nearly all cases, Gray says when the ATO has targeted a fund it has due to the fund not satisfying the sole-purpose test.
The sole-purpose test requires that an SMSF be maintained to provide benefits to members upon their retirement, or their dependants if the member dies before retirement.
According to the ANAO, since 2004–05, the number of SMSFs has increased by 64%.
SMSF sector is the largest superannuation sector by number of funds, and in 2011 held 30% of all superannuation assets ($407.6 billion).
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More SMSFs borrowing from trust fund members to acquire property creating compliance issues

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The impending end of off-the-plan stamp duty concessions for NSW property investors has helped the Crown Group sell out all apartments in stage one of its V tower in Parramatta.
<img src="/images/stories/2012/06/v1.jpg">
From July 1 investors and non-first-home buyers will get a $5,000 grant from the NSW government for off-the-plan purchase under $650,000, compared with a maximum of $22,490 under the current arrangement for purchases under $600,000.
The $300 million “vertical village” was officially launched over the weekend with a display suite opening.
The project has been selling for the past few months, with construction of the 27-storey tower – set to be Parramatta’s tallest building – beginning in April.
<img src="/images/stories/2012/06/v2.jpg">
Fairfax Media reported the sell-out of stage one and a rush to buy over the weekend. The developer has now moved onto selling stage two apartments.
Property Observer was told in April that 86 apartments had already been sold in the project. No current sales tally has been provided today.
It was launched in Singapore on April 19.
The building will feature 466 luxury apartments, a resort-style hotel with pool, gym and conference facilities, as well as office and retail space and is due for completion in 2014.
The project features 50 studios (from 40 square metres) priced from $350,000; 70 one-bed-plus study apartments (from 50 square metres) from $399,000; 260 two-bedroom apartments, which include two studies, (from 80 square metres) from $500,000; and 50 three-bedroom units (from 100 square metres) from $600,000.
<img src="/images/stories/2012/06/v3.jpg">
The tower was designed by architects Allen Jack + Cottier, with interior spaces designed by Japanese/Australian architect Koichi Takada.
The design includes modern aluminium-clad curtain walling, concealed balconies and a glazed exterior that mirrors the energy of the city’s commercial district below.
Gardens located on three levels provide pockets of retreat and a rooftop garden offers views of Parramatta and its surrounds.
Crown group chief executive Iwan Sunito says the development will provide a world-class urban lifestyle in Parramatta.
V by Crown is located in the heart of Parramatta’s city centre, close to Church Street’s eateries and Westfield shopping centre, rail and ferry connections, as well as Parramatta Heritage Parklands.
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Stamp duty handout expiry helps sell out first stage of V development in Parramatta

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Consumers are growing more confident that mortgage rates will continue to fall over the next 12 months following the May and June RBA rate cuts, but a significant proportion still expect rates to rise, according to the June Westpac-Melbourne Institute consumer survey.
The June results show for the first time since Westpac began asking the question (in February 2010) a majority of consumers (52%) expect mortgage rates to fall over the next 12 months.
This compares with the less than 40% who expected rates to fall when the question was last asked in February this year and fewer than 20% of consumers who thought so in August 2011 – before the RBA began its current rate cutting cycle.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/06/westpacjune18.gif"><img src="/images/stories/2012/06/westpacjune18thumb.gif"></a>
Of those who expect rates to fall over the course of the next year the vast majority (83%) expect mortgage rates to fall by less than one percentage point, while the remaining 17% expect a fall in excess of one percentage point.
A quarter of consumers surveyed still expect mortgage rates to rise over the next year, while slightly less (23%) expect no change in mortgage rates.
Westpac senior economist Matthew Hassan says the results indicate that consumers have a “firmer sense of where rates are likely to head” but cautions that the “consensus is not particularly strong”.
“At 52%, the proportion expecting rates to fall is well short of the 70 to 90% that were calling rates to rise in surveys conducted in 2010-11.”
Hassan also points out that the responses from consumers to the question of where mortgage rates are heading fluctuated over the week they were asked indicating a “lack of conviction”.
“Responses over the course of the survey week (June 4 to June 10) – which was a very busy one for interest rate developments, economic surprises and the unfolding crisis in Europe – show significant daily fluctuations and a less certain view amongst those surveyed later in the week.
“The high and rising proportion saying they simply don’t know also suggests a more uncertain outlook for rates,” he says.
Hassan says the bottom line is that “predicting mortgage interest rates has become very hard” due to mixed signals in the “official guidance”. 
As an example he says the RBA has cut rates (usually a sign the economy is worsening) but affirmed “Australia’s positive prospects”. 
“Add to this the surprisingly upbeat first quarter economic data on the domestic front, the deeply threatening and uncertain situation in Europe, and the less predictable linkage between official cash rate changes and mortgage interest rates and it’s not surprising consumers are unsure about future moves,” he says. 
Hassan also points out that interest rate market pricing and economist surveys are equally unhelpful. 
“The former is being skewed by investors seeking ways to profit from downside risks to the global growth scenario – and implies 100bps of easing by year end. 
“Economist forecasts range from up 25bps to another 100bps in cuts to the cash rate with a median view of a 25 bps reduction (Westpac’s forecast is for 75 bps,” he says. 
“And in both cases the forecasts are for the official cash rate rather than the average standard variable mortgage rate,” he says. 
State-by-state responses to the question indicate that consumers from South Australia (59%) and NSW (56%) are the most optimistic about rates falling while those in Queensland (49%) are the least optimistic.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/06/westpacjune181.gif"><img src="/images/stories/2012/06/westpacjune181thumb.gif"></a>
Men are more optimistic than women about rates falling, as are those that own their home outright or have a mortgage compared with renters.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/06/westpacjune182.gif"><img src="/images/stories/2012/06/westpacjune182thumb.gif"></a>
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Consumer sentiment swings towards greater rate cut anticipation: Westpac 

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Westpac’s discount bank brand, Bank of Melbourne, has cut its benchmark three-year fixed rate by 20 basis points to 5.79%, one of the lowest rates on offer in the market. 
This matches Greater Building Society’s 5.79% three-year fixed rate. 
The bank of Melbourne has also reduced rates on its one- and two-year fixed-rate products by 15 basis points. 
Bank of Melbourne’s new fixed home loan rates under the Advantage Package are: 
<ul>
<li>1 year – 5.74% p.a. </li>
<li>2 years – 5.74% p.a. </li>
<li>3 years – 5.79% p.a. </li>
</ul>
In addition to the fixed-rate cuts, the bank has also lifted its life-of-loan discounts on packaged variable home loans. 
From tomorrow the bank is also offering life of loan discounts of up to 0.9% p.a. off new standard variable rate home loans through its Advantage package. 
“More customers are talking to us about fixing all, or part, of their home loan to help manage their finances and gain greater certainty in these uncertain times,” says Bank of Melbourne chief executive Scott Tanner.
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Bank of Melbourne cuts fixed rates and improves incentives for borrowers

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NSW Treasurer Mike Baird has defended the government’s timetable of changes to handouts available to first-home buyers, non-first-home buyers and investors announced in the state budget.
The changes initially grabbed favourable headlines due the size of first-home owner grants –up to $35,240 for those purchasing a new home – but the <a href="https://www.propertyobserver.com.au/residential/nsw-budgets-needlessly-complex-artificial-deadlines-have-short-term-and-long-term-consequences-for-residential-property/2012061455119" target="_blank">artificial deadlines</a> has since been heavily criticised for killing off the investor market and encouraging first-home buyers to wait until after October 1.
The program of changes, announced on June 12, gave investors (and non-first home buyers) just 18 days to complete off-the-plan purchases to take advantage of a a zero stamp duty option – and the potential saving of $22,490 through the NSW home builders' bonus, which ends on June 30.
For first-home buyers, the state government decided to scrap the $7,000 first-home owners’ grant entirely for established home purchases and replace it with a $15,000 grant for new homes – but only from October 1.
This means that many first-home buyers are likely to put off their new home purchases until after October 1, when there will be up to an additional $8,000 up for grabs.
The executive director of the Housing Industry Association, David Bare, expects the three-month lag would be felt in the construction market and could have a significant impact on the cash flow for builders.
Meriton boss Harry Triguboff says this three-month time frame will be “hopeless” for developers targeting the first home-buyers’ market.
But a spokesperson for NSW Treasurer Mike Baird told Property Observer the three-month notice period for first-home buyers “provides a reasonable timeframe for the market to adjust to the changes and is in line with the timeframe applied to stamp duty concession changes in last year’s budget”.
In the 2011-2012 NSW budget, delivered on September 6 last year, Baird gave first-home buyers just under four months’ notice that stamp duty concessions under the first home plus scheme would be limited to the purchase of newly constructed homes (including off-the-plan purchases) from January 1 this year under a new scheme, the first home – new home scheme.
The expired first home plus scheme meant borrowers did not have to pay any stamp duty for homes under $500,000 – a saving of up to $17,990.
The spokesperson for the Treasurer also said the home builders’ bonus had been due to expire on June 30.
“However from the July 1, the NSW government will introduce the new home grant of $5,000 which will go to all non-first-home buyers of new properties up to $600,000.”
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NSW Treasurer Mike Baird defends timing of changes to home buyer handouts

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

The Eveleigh brings house-like apartments to Broadbeach

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

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

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

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

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

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Castle Hill, the longtime hub of the Hills District, has been one of the major beneficiaries of Sydney's Metro expansion, with improved connectivity helping drive continued population growth, development and buyer demand across the Hills District.

But despite that growth, the suburb has seen relatively few major new apartment projects brought to market over the past 18 months.

Hills District developer Reve Group is looking to fill that gap with <a href="https://www.apartments.com.au/new-apartments/nova-r-ve-castle-hill-2-garthowen-crescent-castle-hill-nsw-2154">Nova Rêve</a>, a major new mixed-use precinct on the corner of Garthowen Crescent and Old Castle Hill Road, a short walk from Castle Hill Metro Station and Castle Towers.

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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.

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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.

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Reve Group's Romio Georges said creating an active ground plane had been central to the planning of Nova Rêve.

"There are gardens with pathways, barbecues, seating and play areas, shops and cafes opening onto the street, and a hotel with restaurants and a skybar that anyone in Castle Hill can walk into," Georges said.

The project's elevated position on one of Sydney's highest ridgelines will also provide apartments with outlooks toward the Sydney skyline, surrounding parkland and the Blue Mountains.

More than 80 per cent of the apartments will occupy corner positions, with Turner responsible for both the architecture and interiors.

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Larry Schlesinger

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