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Investing in property over the last two decades has delivered strong compared with shares and other asset classes, according to the latest Long Term Investing report from fund manager Russell Investments. The fund manager says taxation policies have been a key factor in the sector’s long-running attractiveness.
Over the past 10 years to December 2011 residential investment property has outperformed all other asset classes at the lowest and highest tax rate at 7.2% p.a. and 5.8% p.a. respectively.
Over the 20-year period, Australian shares returned 9% p.a. and 7% p.a. at both the lowest and highest marginal tax rates respectively, with residential investment property achieving the second highest return of 8.1% p.a. and 6.6% p.a. at the lowest and highest marginal tax rates respectively.
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Cash had the lowest returns under both tax regimes of all asset classes over 20 years.
Calculations by Russell Investments over the 20-year period show that the effective tax rate for top marginal tax payers is most favourable for Australian shares at 20%, with residential investment property at 26% and Australian REITs and 23%.
In comparison, the effective tax rate for overseas shares is 28%, it rises to 36% for global REITS and is at 49% for cash and bonds.
“The impact of personal taxation on residential investment property has also been less significant as a result of the tax deductibility of expenses relating to residential investment property,” says the Russell Investments report.
“All three asset classes (Australian shares, residential investment property and Australian REITS) also provide tax deferral benefits and qualify individual and superannuation investors for a capital gains tax discount on liquidation, which contributes to their after-tax attractiveness relative to bonds and cash,” the report continues.
Earlier this week, Prime Minister Julia Gillard ruled out removing generous tax break offered to property investors who negatively gear their investments over concerns it would “distort the market”.
Russell Investments does caution investors that residential property is no longer a risk free asset class or a sure bet for future growth.
“The investment fundamentals of residential property are becoming less attractive compared to listed shares,” says Greg Liddell, Russell’s director of consulting and advisory services. 
“The main risks for residential property relate to relatively high valuations and the prospect of further deleveraging by Australian households.
“Low rental yields will make it difficult for residential property to outperform listed shares as an investment over the next decade,” he says.
At the Prime Minister’s Economic Forum in Brisbane yesterday, Westpac boss Gail Kelly said compound growth in house prices were over for good and Australia would not see another housing boom.
Share board image courtesy of <a target="_blank" href="https://www.flickr.com/">Flickr</a>.
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lschlesinger-FZcF9M3vE6

Residential property investment outperformed all other asset classes for past 10 years: Russell Investments 

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NSW property investors should not rush to exchange off-the-plan properties ahead of the June 30 end to state stamp duty concessions unless they have completed all the necessary research and due diligence, according to research and investment firm the Aviate Group. 
From July 1 investors buying off the plan will only get a $5,000 handout from the government instead of saving up to $22,490 under the zero stamp duty option under the soon-to-end NSW home builders' bonus, <a href="https://www.propertyobserver.com.au/landlords/nsw-property-investors-condundrum-take-the-%2422490-housing-bonus-now-or-just-%245000-after-july-1/2012061255081" target="_blank">creating a conundrum</a> about whether to buy now or wait in the expectation of unit property market having staggered growth over the next few years. 
They are likely to be encouraged by some developers to complete their purchases over the next two weeks and take the bigger incentive. 
Meriton boss Harry Triguboff says he will be going “hell-for-leather” to sell to investors before July 1 “because they’ll still get something”. 
Developers have the added impetus of getting as many investors over the line before July 1, as the first-home buyers’ market is also expected to retreat for three months between July 1 and October 1, until the double $15,000 first-home owners’ grant for a new property purchases kicks in. 
But Aviate Group managing director Neil Smoli says property investors should never make a rushed decision to purchase an investment property, no matter how tempting the incentive. 
An investment property, he says, is a long-term prospect, “and the right property will always deliver long term growth”. 
“If an investor has undertaken all the necessary research and due diligence on an investment property that falls within the concession price bracket, they should by all means proceed with a purchase before the end of the financial year and pocket the stamp duty saving,” Smoli says. 
“However, it is never a good idea to make an investment decision based purely on an incentive. If a property does not have the potential to deliver reliable returns and capital growth opportunities over the long term, no government incentive at the time of purchase will change this fact.” 
According to Smoli, a rushed decision before July 1 may jeopardise an investor’s security down the track. 
“The short-term benefit of an incentive will pass relatively quickly, but the shortcomings of an ill-informed investment property purchase may have a lasting negative impact. 
“At the end of the day, an investor must analyse their capacity to meet repayments, considering the complete range of factors such as the likely rental, cost of different insurance requirements and strata fees, to name a few. An investment decision influenced solely by a government incentive is perhaps a sign that the investor is not ready to invest.” 
“While growth in property prices may be subdued at present, astute investors still recognise that good properties with the right attributes still have the potential to outperform other investment alternatives,” Smoli says. 
“It’s important to recognise that price growth statistics, even when confined to individual suburbs, can be misleading. Each development – indeed each apartment within each development – has variables that determine its capacity to perform as a quality investment over the long term. Some developments merely streets apart can have entirely different capital growth outlooks, depending on the investment criteria applied.” 
Aviate is also calling for stamp duty to be abolished, calling it “an unnecessary burden for buyers”.
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Property investors should not rush NSW purchases ‘purely for the incentive’: Aviate

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Damian Smith, a regular commentator on mortgage trends, has resigned as CEO of financial comparison website RateCity.com.au after three years at the helm.

He will remain at RateCity.com.au. until the end of the month before taking up a new opportunity at Telstra’s Application Venture Group (AVG) with the aim of developing an offering in the consumer health space.


Andrew Willink, founder of RateCity.com.au.and chairman and founder of the Canstar group of companies, will take over from Smith as interim CEO while a replacement is recruited.
Michelle Hutchinson, RateCity.com.au’s public relations manager and consumer advocate, has taken over as spokesperson for the website.


“I am leaving RateCity with a heavy heart,” Smith tells Property Observer.


“I have loved my time here.”


Since his appointment as CEO in 2009, Smith has been the spokesperson for the website and a regular media commentator on mortgage trends and interest rates.


RateCity.com.au was set up in 2006 as a free financial comparison service for consumers. It earns money by generating qualified leads for financial institutions.
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RateCity.com.au to lose CEO Damian Smith to Telstra venture capital opportunity

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The sale of Australian CBD hotels to offshore interests continues, with a Malaysian investment trust paying $415 million for a portfolio of three five-star Marriott hotels.
The Sydney Harbour Marriott, the Brisbane Marriott and the Melbourne Marriott have been bought by Malaysia-listed Starhill Real Estate Investment Trust, managed by Malaysian conglomerate YTL Corp.
Asian buyers have accounted for 93% of all hotel sales this year.
The Marriott properties formed part of Colonial First State’s (CFS) Commonwealth Property Hotel Fund, which is being wound-up.
The sale was negotiated by Mark Durran and Craig Collins of Jones Lang LaSalle Hotels, who says the federal government’s changes to withholding tax on management investment trusts “caused some friction” but did not prevent the deal from going ahead.
The three hotels were acquired by CFS between June 2000 and April 2001.
The jewel in the crown is the 550-room Sydney Harbour Marriott at the northern end of Pitt Street, which was constructed in 1989 and underwent a $35.5 million refurbishment during the 2002-2003 financial year.
The Brisbane Marriott is a 267-room hotel constructed in 1998, and the Melbourne Marriott is a 185-room hotel constructed in 1982. It underwent an $8 million refurbishment in 2002.
Prior to the acquisitions Starhill had a market capitalisation of around RM1,025 million ($324 million as of June 2010) comprising  the JW Marriott Hotel Kuala Lumpur and 60 units of serviced apartments, four levels of commercial podium and two levels of car parks located within The Residences at The Ritz-Carlton, Kuala Lumpur.
The Australian acquisitions will bring its portfolio to around $1 billion.
The five-star hotel sale attracted significant interest from offshore investors and takes total hotel sales to $614 million for the first six months of the year, with  Jones Lang LaSalle estimating that this could double by the end of the year.
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Malaysian REIT pays $415 million for Marriott five-star hotel portfolio

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McGrath Mid North Shore agent Peter Chauncy has ranked as Australia’s top estate agent, according to a new Top 100 survey by industry magazine Real Estate Business.
Chauncy, who sells property in Chatswood, Crows Nest, Lane Cove and Naremburn, racked up 79 property sales over the 2011 calendar year worth $88 million.
The rankings were compiled based on a range of criteria including sales volumes, sales numbers and average sale prices.
Chauncy admits to being a workaholic who works 75 hours each week, but says he loves it.
“I really am passionate, and that enthusiasm and passion really rubs off on people, and I think that’s been a key part to our success,” he says.
Chauncey will become principal at the new McGrath Crows Nest office when it opens in August this year.
His most recent sale was a 1,094-square-metre site on Talus Street in Naremburn, which he sold alongside David Howe for $2.655 million. The site has approval for an eight-apartment complex.
Another McGrath agent, Wayne Vaughan from the Epping office, ranked fifth on the list, with sales of $73 million. Four McGrath agents made it into the top 10, and 10 were among the top 100.
Ray White dominated the list, with 17 out of the top 100 spots.
Edward Hobbs from Biggin &amp; Scott Richmond ranked second ($81 million in sales) followed by Ric Serrao from Raine &amp; Horne Double Bay ($74 million) and Glen Coutinho from hockingstuart Hawthorn ($85 million)
In dollar terms, Jason Boon from Richardson &amp; Wrench Elizabeth Bay/Potts Point ranked first, with $130 million worth of sales from just 55 transactions.
Jay Standley from Barr and Standley Real Estate Bunbury, WA, managed the highest number of sales at 189 (or more than one sale every two days) to rank 53rd overall.
The top female agent was Karen Vogl from hockingstuart Ringwood in Melbourne’s eastern suburbs, who clocked up $80 million in sales and ranked 11th overall.
Nearly half (47) of the top 100 were NSW agents. There were 17 each from Victoria and Queensland and 14 frm WA.
The top 100 was based on agency submissions and received over 400 submissions, according to Alex Whitlock, publisher of Real Estate Business.
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McGrath Mid North Shore agent Peter Chauncy named Australia’s top estate agent by Real Estate Business

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Melbourne’s urban growth boundary will extend outwards over the next 20 years to incorporate six new fringe suburbs and provide new homes for up to 100,000 people.
The plans, unveiled by Victorian Planning Minister Matthew Guy, includes the development of six new metropolitan suburbs at Diggers Rest, Lockerbie, Lockerbie North, Manor Lakes, Merrifield West and Rockbank North and follow the completion of the Logical Inclusions Review of Melbourne’s Urban Growth Boundary (UGB).
The new suburbs will expand Melbourne’s urban boundary to the North (Mitchell and Whittlesea), to the West (Hume, Melton and Wyndham) and South East (Cardinia and Casey) by 6,000 hectares.
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The 6,000-hectare expansion is significantly less than the 43,000-hectare expansion planned under by the previous Victorian government.
Plans for the new suburbs include the building of new train station, town centres, open space and other key infrastructure
Over the next 20 years there will be
<ul>
<li>3,800 homes developed for 10,700 residents in Diggers Rest in Melton as well as local town centre located, the extension of Houdini Drive, a multi-purpose community centre and additional sportsgrounds.</li>
<li>10,500 new homes for 29,500 new residents in Lockerbie (incorporating parts of Hume, Mitchell and Whittlesea) as well as a new train station, a new north-south arterial road, three state primary schools and a secondary school, four new sports reserves and a new principal town centre next to the future train station.</li>
<li>4,600 new homes for 13,000 new residents in Lockerbie North (incorporating parts of Mitchell and Whittlesea)  along with a new train station, a new north-south arterial road, two state primary schools and a secondary school, two new sports reserves, a transit oriented town centre next to the future train station.</li>
<li>4,850 new homes for 13,500 new residents in Manor Lakes (in Wyndham) along with two state primary schools, two large new recreation reserves, a local town centre and an important new north-south arterial road.</li>
<li>7,000 new homes for 20,000 in Merrifield West (in Hume) along with the development of two state primary schools, football and soccer grounds, two local town centres and a number of local parks</li>
<li>6,650 new homes for 18,500 new resident in Rockbank (in Melton) over a longer 25 year time frame) along with the development of two state primary schools, a secondary school, three active recreation reserves, two local community facilities, higher order civic uses, passive recreation and linear trail network, a major and local town centre and an important east-west arterial road. </li>
</ul>
 
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Merrifield West residents travelling into the city will have to rely on the Donnybrook V/Line rail station or drive seven kilometres to the Craigieburn rail station, while Rockbank North and Lockerbie residents will need to use already busy V/Line rail stations until the new train station proposed for Beveridge is completed. 
There will be an expansion of the Diggers Rest V/Line rail station.
Guy says the urban expansion plan will provide opportunities for Melbourne’s economic and social future.
“Housing, employment, infrastructure and all the other elements that make up our community need to be planned and implemented carefully,” he says
“The completion of this review will lead to urban growth boundary modifications to ensure adequate long-term land supply and enable planning for population growth to be completed well ahead of time.”
Many of these new outer suburbs are already the focus of new housing developments, with the March quarter Oliver Hume residential communities report noting that 10 new communities comprising a total of 3,400 lots launched over the first three months of the year.
Four of the 10 projects were located in Wyndham, three in Melton, two in Whittlesea and one in Hume.
The report says it would take 6.8 months to sell the current level of supply represents 6.8, exceeding the industry benchmark of six months for the first time since the September quarter of 2006.
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All municipalities experienced a rise in supply with 20 months’ worth of supply in Mitchell (Wallan-Beveridge) and also double-digit level of supply in Melton. The City of Hume is now the tightest market, with only 4.2 months of supply. 
The report also notes declining land prices with average lot prices having fallen $16,000 to a median of $210,000 from their peak of $225,750 in the December quarter of 2010, a fall of 7.5% over the 15 months.
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Melbourne urban sprawl to extend into six new suburbs over next 20 years

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Sydney’s low rental vacancy rate continues to insulate the residential property market against wider economic forces, according to the latest CBRE review of the NSW residential market. 
The report quotes Residex figures showing that Sydney house prices are down 0.4% over the past 12 months to March to a median of $667,500 – a strong result relative to Melbourne (6.2% decline to March) and Brisbane (down 4.3%). 
It also notes RP Data-Rismark figures showing a 1.2% gain in Sydney house prices for the March quarter to a median of $572,000. 
CBRE assesses the Sydney’s housing market as being “reasonably positioned in relation to the remainder of the Australian market”. 
In line with a similar trend in Perth, the picture is brightest for affordable properties priced under $500,000, which continue to attract most demand, with prestige homes remaining under pressure. 
CBRE associate director of global research  consulting Sam Reilly says this stability is linked to low vacancy rates, “which continue to underpin the market”. 
“This [low vacancy rate] has somewhat insulated Sydney from the significant declines in capital values that have been witnessed recently in other states,” he says. 
Sydney’s vacancy rate remained unchanged at a very low 1.6% in March quarter figures released by the Real Estate Institute of Australia (REIA) – the lowest of all capital city market, with Brisbane at 1.7%, Perth at 1.9% and Melbourne and 2.3%.
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REIA says that a vacancy rates lower than 3% indicate strong demand for rental accommodation. 
House rents rose by 6.9% and unit rents by 8.9% over the year to March 2012 according to CBRE, with weekly rents for houses and units sitting at $545 and $490 respectively as at March this year. 
The CBRE report also notes that sales volumes for Sydney houses have shown signs of a recovery, with a moderate increase of 3.2% over the year to March 2012 to 42,118. 
There were 40,452 units sold during the same period, representing an increase of 6.2% on the previous year, meaning that annualised house sales surpassed more affordable unit sales for the first time since the end of 2009.
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This occurred at a time when the NSW government offered an additional $7,000 for first-home buyers as part of its first-home owner boost scheme, which ran from October 2008 to December 2009. 
CBRE senior director for NSW residential mortgage valuations Ted Hoskin says although the house and unit markets remain under pricing pressure, recent results pointed to a moderate recovery for the state. 
“With increased sales volumes for both property types, it appears that although not yet supporting a longer term recovery, the sustained down trend in market activity appears to have stopped and a greater degree of stability is now being recorded,” he says. 
Buy activity and demand differs from region to region: 
Eastern suburbs 
 
Though buyer activity has dropped since the end of the first-home owners’ stamp duty exemption, properties in the eastern suburbs priced around $500,000 continue to experience strong levels of demand. 
“For both houses and units between $500,000 and $1 million there has been a slight decrease in buyer demand, with agents reporting conditions have decreased from mid-2011,” he says. 
Sydney CBD 
The Sydney CBD market experienced solid demand for units priced below $500,000 although units up to $1 million faced weaker conditions. 
Sydney’s north-west and western suburbs 
Prices remain relatively stable across the quarter, with steady demand particularly evident in the lower to mid-market ($400,000 to $650,000). 
CBRE says property priced up to $1 million is experiencing consistent levels of buyer enquiry, which is a positive sign. 
The south-west market, including growth centres around the Macarthur area, has slowed for lower-priced properties ($280,000 to $400,000), with reduced buyer demand and contracting sales volumes. 
The south-west middle market between $400,000 and $500,000 has attracted steady levels of demand. 
South Sydney 
Prestige properties in Sydney’s south fared best in the quarter, with steady demand for well-presented properties in good positions between $1 million to $2 million. 
Wollongong and Illawarra 
Wollongong and Illawarra had the strongest $500,000 price bracket for all NSW dwellings in 2012 to date, while pressure was evident in the same bracket in Sydney’s southern suburbs, including the Sutherland shire, after strong growth at the end of 2011.
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Low rental vacancy rate ‘insulating’ Sydney residential property market against economic woes: CBRE

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Westpac has used the RBA cash rate cuts of May and June to position Bank of Melbourne as its budget bank brand among its multi-brand offering while reeling in the discounts offered by its mortgage franchise RAMS.
Before the RBA began cutting the cash rate in November, St George, BankSA and Bank of Melbourne all offered a benchmark standard variable rate of 7.8%, with Westpac’s six basis points higher at 7.86%
RAMS was significantly cheaper with a rate of 7.63%, a 23-basis-point difference.
Fast-forward eight months and Westpac still has the highest standard variable mortgage rate at 6.89%, but Bank of Melbourne is now the lowest of the budget bank brands, with a standard variable mortgage rate of 6.8%, followed by BankSA (6.85%) and St George (6.86%)
RAMS maintains its position as having the lowest standard variable rate of the Westpac brands at 6.75% but is now only five basis points lower than Bank of Melbourne – thanks mainly to RAMS not passing on any of the December RBA cash rate cut – and only 14 basis points lower than Westpac.
Rate changes for Westpac brands following start of RBA cash rate cutting cycle in November 2011
<table style="width: 470px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="102" valign="top">
Brand
</td>
<td width="78" valign="top">
SVR June
</td>
<td width="78" valign="top">
 SVR May
</td>
<td width="73" valign="top">
SVR Feb 
</td>
<td width="77" valign="top">
SVR Dec 2011
</td>
<td width="77" valign="top">
SVR Nov 2011
</td>
<td width="60" valign="top">
SVR Oct 2011
</td>
<td width="71" valign="top">
Total change since Nov
</td>
</tr>
<tr>
<td width="102" valign="top">
Westpac
</td>
<td width="78" valign="top">
6.89% (- 20 bps)
</td>
<td width="78" valign="top">
7.09% (- 37 bps)
</td>
<td width="73" valign="top">
7.46% (+10 bps)
</td>
<td width="77" valign="top">
7.36% (-25 bps)
</td>
<td width="77" valign="top">
7.61% (-25 bps)
</td>
<td width="60" valign="top">
7.86%
</td>
<td width="71" valign="top">
-97 bps
</td>
</tr>
<tr>
<td width="102" valign="top">
St.George
</td>
<td width="78" valign="top">
6.86% (-18 bps)
</td>
<td width="78" valign="top">
7.04% (-38)
</td>
<td width="73" valign="top">
7.42% (+12 bps)
</td>
<td width="77" valign="top">
7.30% (-25 bps)
</td>
<td width="77" valign="top">
7.55% (-25 bps)
</td>
<td width="60" valign="top">
7.80%
</td>
<td width="71" valign="top">
- 94 bps
</td>
</tr>
<tr>
<td width="102" valign="top">
BankSA
</td>
<td width="78" valign="top">
6.85% (-19 bps)
</td>
<td width="78" valign="top">
7.04% (- 38 bps)
</td>
<td width="73" valign="top">
7.42% (+12 bps)
</td>
<td width="77" valign="top">
7.30% (-25 bps)
</td>
<td width="77" valign="top">
7.55% (-25 bps)
</td>
<td width="60" valign="top">
7.80%
</td>
<td width="71" valign="top">
- 95 bps
</td>
</tr>
<tr>
<td width="102" valign="top">
Bank of Melbourne
</td>
<td width="78" valign="top">
6.80% (-19 bps)
</td>
<td width="78" valign="top">
6.99% (-41 bps)
</td>
<td width="73" valign="top">
7.40% (+10 bps)
</td>
<td width="77" valign="top">
7.30% (-25 bps)
</td>
<td width="77" valign="top">
7.55% (-25 bps)
</td>
<td width="60" valign="top">
7.80%
</td>
<td width="71" valign="top">
-100 bps
</td>
</tr>
<tr>
<td width="102" valign="top">
RAMS
</td>
<td width="78" valign="top">
6.75%  (-21 bps)
</td>
<td width="78" valign="top">
6.96% (-32 bps)
</td>
<td width="73" valign="top">
7.28% (+10 bps)
</td>
<td width="77" valign="top">
7.38% (0)
</td>
<td width="77" valign="top">
7.38% (-25 bps)
</td>
<td width="60" valign="top">
7.63%
</td>
<td width="71" valign="top">
- 88 bps
</td>
</tr>
</tbody></table>
 Bank of Melbourne is also trying to convince borrowers that it is a separate entity to its big four parent, with the ads in its windows talking about it matching the big four on price while beating them on service.
“Not a bad bit of spin for a bank wholly owned by the country's second-biggest major. It's a question of whether customers will buy it,” wrote Stewart Oldfield, an analyst at Investorfirst Securities, in the Fairfax press.
Oldfield says Westpac’s multi-brand strategy in Victoria is about trying win new customers by offering them a “regional bank” experience in a state where regional bank representation is low compared with the national average.
“Privately, the bank also highlights the ability to price brands differently, depending on market conditions,” he says.
What is also noticeable is that the range of standard variable rates offered across the five brands has shrunk from 23 basis points in November to just 14 basis points in June, providing less of an incentive for borrowers to refinance from one Westpac mortgage brand to another.
Westpac kicked off its multi-brand mortgage strategy –likened to that of consumer products giant Unilever – following the outbreak of the GFC.
It acquired the RAMS brand name and franchised stores for just $140 million in January 2008 following the disastrous float of the then non-bank lender.
One month later Gail Kelly left her role as St George chief executive to assume the position of Westpac CEO.
Twelve months later Westpac bought St George for $18.6 billion.
Westpac relaunched the Bank of Melbourne brand in August last year, replacing St George in the Victorian market.
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Westpac uses rate cuts to push Bank of Melbourne challenge to RAMS discount brand

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Australian housing prices are unlikely to rise in winter despite an increase in buyer enquiries, says McGrath Estate Agents chief executive John McGrath, who is forecasting a “long and slowish recovery” over the next three to five years.
In his latest winter market review, McGrath, notes that in March, “the country’s largest mortgage broker, AFG, had its second biggest month ever in NSW since their index commenced in 2004 with $842 million in new lodgements”.
“While this clearly indicates more buyers are out there, they remain very price sensitive,” he writes.
“Reserve Bank interest rate cuts will no longer have the effect we’re used to given the banks’ reluctance to pass on the full amount. The official cash rate is now at its lowest since November 2009, when the economy was recovering from the initial impact of the GFC.
“While this might result in more sales activity in winter, it won’t push prices higher because buyers are still worried about Europe and are wary of protecting themselves financially as we enter a new era of aversion to debt,” he says.
Overall though, McGrath says Australia’s housing markets are not in a bad state, “but people continue to wait for positive signs”.
“This has been a protracted and agonising period of uncertainty. The constant flow of good and bad news both at home and overseas continues to undermine confidence.
“Once we see some positive and sustained economic change overseas, I believe our property market will begin a long and slowish recovery over a three to five year timeframe,” he says.
McGrath’s bearish outlook on prices is unchanged since December, when he noted a “marked improvement in buyer enthusiasm” but said that people were “looking for more good news to regain their confidence to buy and sell”.
Similarly in March, McGrath said there would be no significant price “increases until the Europe is resolved and we see further signs of recovery in the US”.
His observations echo those of <a href="https://www.propertyobserver.com.au/trends/time-to-buy-a-dwelling-sentiment-improves-but-unlikely-to-flow-through-to-purchases-westpacs-bill-evans/2012061355096" target="_blank">Westpac chief economist Bill Evans</a> following the 7.5% increase in the ‘time to buy a dwelling” Westpac-Melbourne Institute consumer sentiment sub-index.
Evans said “buyers will tend to be reluctant to follow through on purchases while there are concerns about the economic outlook and job security”.
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‘Long, slowish recovery’ on the cards Australian property market despite rise in buyer enquiries: John McGrath

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Two successive rate cuts helped lift consumer sentiment about buying a house or unit in June but have had little impact on overall consumer sentiment, according to the latest Westpac Melbourne Institute Index of Consumer Sentiment. 
Responses to questions on “time to buy a dwelling” and “time to buy a car” both showed an improvement in June, with these indexes rising 8.2% and 7.5% respectively. 
The “time to buy a dwelling” index now stands at 128, compared with 118.2 in May and 115.4 in June last year, well above the historical average of 122.3. 
The overall index increased by just 0.3% from 95.3 in May to 95.6 in June and is well down on the 101.2 level recorded a year ago and the historical average of 101.7. 
The latest survey of 1,200 adults over 18 was conducted in the week from June 4 to June 10. The RBA cut the cash rate by 25 basis points to 3.5% on June 6.
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“Lower interest rates and lower prices are clearly improving affordability and buyer sentiment on both fronts although buyers will tend to be reluctant to follow through on purchases while there are concerns about the economic outlook and job security,” says Westpac chief economist Bill Evans. 
Commenting on the overall consumer index, Evans says “clearly other factors are dominating rates in the minds of consumers – those factors are concerns about the domestic economy and international conditions”. 
Evans says the June survey included additional questions on “news” categories recalled and whether news was assessed to be favourable or unfavourable. 
“The results show negative news around the economy and international conditions dominated.” 
“This is another disappointing result. It follows a second consecutive cut in the official cash rate by the Reserve Bank.” 
“Sentiment has risen only 1.1% from its April level and remains 1.7% below the level recorded in October last year despite a 125-basis-point reduction in the cash rate that has brought the average standard variable mortgage rate down by nearly 1%,” says Evans.
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'Time to buy a dwelling' sentiment improves but unlikely to flow through to purchases:  Westpac’s Bill Evans

<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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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.

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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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