<html><body>
WA’s Supreme Court has ruled that a ‘rent to buy’ scheme operated illegally because the owners were not licensed estate agents and also misled people who signed up.
The landmark ruling handed down by Master Craig Sanderson declared that unlicensed promoters of a rent-to-buy scheme, No Loan Home Pty Ltd, its sole director Filip (Fil) Butkovic and employee Nikola (Nik) Butkovic, of Nedlands, had engaged in misleading and deceptive conduct.
Under the ruling No Loan Home Pty Ltd, the proprietor of the business Perth’s Easyhomes WA has been restrained from advertising and promoting the scheme or entering into any further rent-to-buy transactions without first obtaining a real estate agent’s licence.
WA’s Consumer Protection first raised allegations about the scheme.
It says the ruling has implications for all promoters of rent-to-buy schemes, and is now looking into other similar schemes.
Rent-to-buy schemes are targeted at people who don’t qualify for a home loan.
Buyers enter into a contract whereby they agree to pay rent to the seller in return for being able to purchase the property at a later date.
Under the scheme being promoted by No Loan Home, the buyer paid an "upfront option fee" to the business of about $15,000, as well as an "ongoing option fee", a proportion of which was to be credited towards the final purchase of the property.
The buyer was required to sign a tenancy agreement with the seller in which rent was payable until the end of the contract period, usually four years, when the option to purchase would to be exercised.
“The Supreme Court judgment [handed down on May 30] supported the WA Commissioner for Consumer Protection’s allegation that the promoters had also breached the Australian Consumer Law by misleading potential purchasers regarding the future value of the property, the potential equity that they are able to build up over a four to five year period and their ability to obtain finance at the end of this period,” said WA’s Department of Commerce’s consumer protection division.
“The company’s website and advertising material makes misleading representations as to future property values without setting out the basis for these estimates.
“The Supreme Court ruled that the ‘rent to buy’ transactions are real estate transactions for the purposes of the act,” it said.
“The Supreme Court supported Consumer Protection’s belief that the promoters of these schemes were engaging in real estate transactions so were required to be licensed and were therefore operating outside the law,” said acting commissioner for consumer protection Gary Newcombe following the ruling.
“Our major concern was that the consumers who took part in these schemes didn’t have the protection that the licensing system and laws offer and now we have legal clarity over these issues following the Supreme Court ruling.
“Consumers have recourse to a fund for reimbursement where serious misconduct of a licensed real estate agent causes loss, and licensed agents are accountable to the Commissioner under a Code of Conduct and the Act. Those operating without a licence provide no such protections.
“These schemes prey on vulnerable people who are finding it difficult to either sell or buy a home. We urge consumers who have had dealings with No Loan Home or any other rent to buy scheme to contact us.”
Consumer advocate Neil Jenman, a long campaigner against rent-to-buy schemes, calls them “dangerous scams” that are “designed by predators who prey on the poor” in 2007.
“They are a complete rip-off and should be outlawed," Jenman said. “Like all slick scams, 'rent-to-buy' schemes are so seductive. The pitch goes like this: We are here to help you. We have a unique system. If the banks reject you, we can help you.  “And on and on and on it goes. One twisted truth after another.”
According to Jenman, victims of these scams are ripped off in three ways. "First, they are charged an exorbitant amount of rent ... second, as well as the exorbitant rent, the "buyers" (victims) pay an exorbitant price for the home, and thirdly, buyers are not the owners of the homes they are buying," he says.
</body></html>

lschlesinger-FZcF9M3vE6

WA “rent to buy’ scheme ruled deceptive and illegal with other similar schemes facing investigation

<html><body>
Low interest rates have kept demand for fixed-rate home loans at high levels, according to May mortgage processing figures from Mortgage Choice and AFG.
However, the broker figures also show that the May rate cut encouraged more borrowers to take out variable-rate products, suggesting that demand could rise if most of yesterday’s official rate cut is passed on by the major banks. 
According to Mortgage Choice spokesperson Belinda Williamson, the June rate cut and forecasts of further rate cuts could make variable-rate home loans even more attractive to borrowers. 
“Stronger demand for variable rate home loans is likely to be at the expense of fixed-rate loans,” she says. “More borrowers may choose variable over fixed, in at least the short term, as they become even more comfortable with variable rate loan pricing. In May, Mortgage Choice data suggested that borrowers found comfort in lenders’ decisions to pass on the majority of the rate cut savings. “On the flipside, fixed rate loan uptake levels could be influenced by increasingly attractive fixed-rate loan pricing. In recent months, some lenders dropped their fixed-rate loan pricing to below 6%,” Williamson says. As at June 4, 2012, the average three-year fixed-rate loan interest rate, based on lenders on the Mortgage Choice panel, was 6.28%, one-year was 6.14% and 5-year was 6.69%. "Borrowers will be wise to weigh up the benefits of further rate cuts against the affordability and security of fixed rate loan pricing," says Williamson.
Official ABS data on demand for fixed rates lags two months behind rate decisions (May housing finance data will only be released in July), with April showing 15% of borrowers choosing a fixed-rate product, the highest level in four years. 
So the May results from the two mortgage broking businesses – which combined write around one in five home loans in Australia – provide a good estimate of current consumer appetite for fixed-rate loans.
Mortgage Choice May figures show a small drop in fixed-rate demand in May, though fixed rates still account for one in five home loans written by its brokers.
This is below the six-month average (22.5%) but above the 12-month average (19%). 
Mortgage Choice highlighted that fixed-rate demand fell marginally, despite a number of lenders dropping their fixed-rate pricing below 6% in May. 
The Greater Building society offers a three-year fixed rate of 5.79% while seven lenders (Commonwealth Bank, ING Direct, ME Bank, CUA and Aussie, Citibank, IMB Building Society) offer a three-year fixed rate of 5.99%. 
The May Mortgage Choice figures show that basic variable mortgages were the only product category were demand rose over the month, up from 14% to 17% of all mortgages – above the 12-month average and at a nine-month high. 
According to Williamson, basic variable mortgages “tend to be more affordable but less flexible with fewer features at the borrower’s disposal”. 
“The increased interest in basic variable rate loans, which is now at a nine-month high, could signal a return to the market by first homebuyers, as these loans tend to be more popular with lower income and less experienced borrowers who are still finding their feet in home loan market.”
Click to enlarge
<a href="/images/stories/2012/06/mcjune6.jpg" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/06/mcjune6thumb.jpg"></a>
Similar to Mortgage Choice figures, close to one in five home loans written by AFG brokers in May was for a fixed-rate product. 
For AFG brokers, standard variable loans proved most popular with borrowers – accounting for 59% of all loans processed over May – up from 57.5% and rising for the second straight month having fallen from January to March.
According to Mortgage Choice May figures the biggest increase in variable-rate loan demand was recorded in SA (up 12%, to 85%), followed by NSW (up 4%, to 77%), WA (up 1%, to 79%) and Queensland (up 1%, to 74%). 
The only state to buck this trend was Victoria, where the popularity for variable-rate loans dropped by five percentage points, to 86%. 
Ongoing discount-rate loans – where the interest rate is discounted over the entire loan term, usually in exchange for an annual fee – made up 40% of all variable-rate loans approved in May. This was in line with April, but slightly below the six-month and 12-month average of 41%.
</body></html>

Low interest rates keep fixed mortgage demand high, but popularity of basic and standard variable products rising: Mortgage Choice and AFG

<html><body>
Tasmanian Liberal Senator David Bushby has joined the chorus of voices opposed to the government doubling the withholding tax rate to 15%.
The tax is charged on income foreign investors earn when they invest in Australian managed investments schemes, many of which fund large property and infrastructure projects.
Since the increase was announced in the budget, <a href="https://www.propertyobserver.com.au/tax/lend-lease-slams-15-withholding-tax-as-property-council-fails-to-convince-wayne-swan-to-scrap-it/2012053154915" target="_blank">the Property Council of Australia, Lend Lease and the Financial Services Council</a> have all slammed the decision, saying it will scare off foreign investors, but they have failed to sway Federal Treasurer Wayne Swan.
“The government’s policy reversal on a tax critical to foreign capital inflows sends the wrong signals,” wrote Bushby in a letter published in the Australian Financial Review today.
“Investment banks will reassess investments in listed property and other assets, and advise their clients of lower than expected future returns from Australia.
“For Australian investors who hold wealth and retirement assets in listed property and infrastructure assets, the withdrawal of foreign capital will only add downward pressure on share prices – and cause retirees even more grief,” he wrote.
Bushby accused the federal government of raising the tax without public reviews or industry consultation.
However, he failed to mention that under John Howard’s Coalition government the withholding tax rate stood at 30%.
It was cut to 7.5% by the Rudd government in July 2010.
The federal government has played down suggestions that the latest tax hike will scare off foreign investors.
Tony McDonald, general manager of Treasury’s international tax and treaties division, told a government committee there would be no “flight of capital” though he acknowledged that some transactions would not take place due to the higher tax rate.
He also said the impact of the tax hike on the economy would be “fairly minimal”.
McDonald made his remarks while giving evidence to the House of Representative Standing Committee on Economics earlier this week as it met to consider the withholding tax increase (as contained in the Income Tax Amendment Bill) and other new pieces of legislation.
According to Treasury estimates, the tax increase will bring in additional revenue of $260 million over the next four years.
Also giving evidence, Martin Codina, director of the Financial Services Council, claimed lost investment would be much higher than the increased tax revenue.
He claimed as much as $1 billion in investment had already been lost while goodwill generated by the low tax rate would also be lost.
</body></html>

Tasmanian Liberal senator joins chorus against doubling of foreign investor tax – but keeps quiet on Howard-era 30% tax rate

<html><body>
The Brisbane housing market is starting to experience the benefits of the resources boom but the Gold Coast remains one of the “worse performing markets,” says CBRE in its second quarter south-east Queensland market view report. 
The report notes that the Sunshine Coast housing market continues to struggle – though not to the same extent as the Gold Coast market – with both coastal markets not seeing much benefit from the mining boom in central and northern Queensland.
Click to enlarge
<a href="/images/stories/2012/06/cbrejune6.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/06/cbrejune6thumb.gif"></a>
CBRE mortgage valuations regional director Tom Edwards says the Gold Coast is clearly a buyers’ market, with slow conditions still prevailing. 
“The Gold Coast remains one of the worst-performing residential markets in Australia, with oversupply in the unit market a major issue,” he says. 
“The oversupply of prestige apartments is still the biggest issue on the Gold Coast, with a lack of active buyers in this sector,” says the report.
The Sunshine Coast faced similar conditions in the second quarter, though the value decline was not as steep. Some signs of increased activity were recorded in the quarter in the lower price brackets, but these markets remain overwhelmingly soft. 
“The prestige market, particularly in Noosa, is still trending down, with agents reporting very low levels of buyer interest,” says Edwards. 
The report says that these two markets are under pressure from low levels of buyer confidence, with sales volumes continuing to trend downwards. 
Illustrating clearly the uneven effects of the mining boom on regional property markets, recent figures released by the Real Estate Institute of Queensland (REIQ) for the March quarter show Gold Coast house prices down 5.1% to a median of $454,000. 
In comparison, house prices in the resource-rich Isaac region are up 28% to a median of $703,000 over the same period. 
Brisbane house prices improved 1.2% over the March quarter, according to the REIQ, to a median of $505,000, but are still down 4.7% over the past year. 
The REIQ says the March quarter result indicates the Brisbane housing market has turned a corner, with “positivity finally returning to the market”. 
However, according to CBRE the improvements in Brisbane have not been sufficient to indicate an increase in capital housing values in the state. 
“Improvements have been identified for properties within a 15-kilometre radius of the Brisbane CBD, though activity is still confined to realistically priced property,” says CBRE global research and consulting associate director Sam Reilly. 
“In some instances, back-up contracts are being sighted by valuers indicating some proven levels of demand that have also been illustrated by reduced selling periods." 
However, tough operating environments remain in areas that are not exposed to the benefits of the resource sector such as the Gold Coast and Sunshine Coast. 
CBRE says that Queensland, while remaining a state that is showing strong prospects courtesy of the huge expansion in the mining sector, is experiencing significant challenges in other sectors. 
Challenged sectors include tourism, manufacturing and construction. 
However, CBRE expects the mining boom to provide longer-term opportunities for the state including in terms of jobs and infrastructure improvements. 
Further west, the Toowoomba market continues to record historically low sales volumes, but buyer sentiment has improved as a result of the change in state government and interest rate reductions, says CBRE. 
According to Edwards, the short- to medium-term outlook for the overall south-east Queensland market is likely to continue remain segmented, with scheduled growth proportionate to resources proximity.
</body></html>

Brisbane property market recovering but Gold Coast still struggling: CBRE

<html><body>
The publication of yesterday's monetary policy statement shows the Reserve Bank board appears to have finally gotten the message that the residential housing market is not just treading water but is actually in decline. 
Previous monetary policy statements have acknowledged that the housing market had declined in 2011, but appeared to skirt around the issue of falling house prices in 2012 with some ambiguous-sounding adjectives. 
In May the RBA suggested the housing market was “subdued” and in April the RBA said it was “soft”. 
However, finally in its June statement, the bank has come out and admitted that the market is fallen again in 2012. 
“Housing prices had shown some signs of stabilising around the turn of the year, but have recently declined again,” reads the June statement, though it could not resist adding: “Generally, the housing market remains subdued.” 
This change in perspective on the housing market was noted by Bill Evans, Westpac’s chief economist. 
“In May, house prices were described as 'stabilising', whereas one month on the governor chooses to point out that prices have 'recently declined again',” Evan said in a note following the June cash rate announcement. 
Perhaps taking note of the RBA’s acknowledgement of the decline in the housing sector this year, the Housing Industry Association (HIA) for once did not have an angry word to say about the central bank, reserving its testiness for the banks. 
The HIA press releasebegan with the back-patting headline: “RBA deserves a policy tick of approval for rate cut” and went on to say that the decision to cut rates would “help confidence and activity in residential construction and the wider domestic economy”. 
“Today’s rate cut sends a clear signal that the Reserve Bank is serious about two things: insulating the Australian economy from volatility in the world economy; and improving confidence and activity in the domestic economy,” says HIA senior economist Andrew Harvey.
Harvey says the attention now is on Australia’s banks, which have a “social obligation in such volatile times to pass through 100% of the official rate cut to businesses and households”.
However, others were quick to warn that the rate cut would not be a magic pill for the residential property market. 
Mark Courtney, Colliers International research director, says banks are unlikely to pass on the rate cut in full – “if they pass on any rate cut at all”. 
“Consequently, today’s RBA decision is likely to have only a minimal impact on the real estate sector,” he says. 
“For a greater impact, additional cuts are still needed. Ideally, the RBA will be looking to reduce the official cash rate by another 25 to 50 basis points over the next few months.” 
Paul Nugent, director at Wakelin Property Advisory, warned property market participants not to expect a dramatic reaction in the residential property market off the back of the June rate cut, “at least not in the coming weeks”. 
“There won’t be a massive jump in auction clearance rates and certainly not a spike in property prices. Instead, I anticipate the market to remain steady.
“The market is finely balanced. On one side it’s been held back by weak consumer confidence off the back of international economic uncertainty. On the other side, we have reasonable local economic conditions, lower interest rates, improved affordability, and a transparent market," he says. 
Nugent says that if the interest rate reduction cycle continues, “at some moment a tipping point will be reached when the economic and property fundamentals become so compelling that it will overcome the current inertia born from uncertainty”.
“Keep an eye on the gap between net rental yields and the standard variable mortgage rate. It is currently around 4%, which is its long-term average.  If this gap falls to 3% as a result of falling interest rates and steady-to-rising rents, that will be a green light signal that the property market is ‘good value.’  This may be the tipping point for a more sustained recovery,” he says.
</body></html>

Finally! RBA board acknowledges housing market is neither subdued nor soft but declining

<html><body>
The Bank of Queensland (BOQ) is the first lender to move following today’s 25 basis point rate cut announced by the RBA. 
Just half an hour after the RBA decision, BOQ says will cut its standard variable rate by 20 basis points as of 16 June 2012, bringing its standard variable rate home loan to 6.91% p.a. 
The bank reported a statutory loss of $91m for first half 2012.
BOQ chief executive and managing director Stuart Grimshaw says continued global economic uncertainty had influenced BOQ’s decision to pass on 20 of the 25 basis points. 
“Volatility in overseas markets continues to push up the cost of funds and demand for deposits in Australia. 
“Competition for deposits is at an all time high, but the RBA is trying to encourage consumers to spend, so we’re pleased to assist by passing on a 20-basis-point cut today,” he says.
BOQ was also one of the first lenders to announce its rate decision following the May 1 RBA cash rate cut of 50 basis points - passing on 35 basis points to variable mortgage holders.
However, the bank lifted its standard variable mortgage rate by 0.1% in March, independently of the RBA, to cover the costs of higher funding.
It passed on both 25 basis point cash rate cuts in November and December in full.
</body></html>

Bank of Queensland passes on 20 out of RBA's 25 basis points

<html><body>
Mortgage Choice says today’s 25-basis-point rate cut was expected following a “somewhat subdued reaction to last month’s 50-basis-point rate cut, soft retail sales, weak consumer sentiment and concerns over the direction of the global economy”. 
“The second consecutive monthly cash rate cut will hopefully boost borrowers’ spirits by helping to increase their ability to repay their home loan,” says Mortgage Choice spokesperson Belinda Williamson. 
“Borrowers should be putting heat on their lender to pass on the full 0.25 percentage point rate cut savings." 
According to Michelle Hutchison, spokesperson for financial comparison website RateCity.com.au, today’s cash rate reduction should help boost spending following numerous signs that Australians don’t have confidence in the economy, including low take-up of mortgages, poor retail spending figures and banks holding a record $544 billion of consumer savings, according to APRA. 
“Even if lenders only pass on 20 basis points of this rate cut, by July, variable interest rates will have fallen by 92 basis points since October 2011, and variable-rate borrowers on a $300,000 mortgage would be paying $184 less per month in repayments,” she says. 
“In November 2009 when the cash rate was 3.5%, the average standard variable rate was 5.75%. 
“Even if lenders pass on the full 25 basis points this month, the average standard variable rate would still be 6.33%, which is 58 basis points higher than November 2009. So this means variable borrowers could be paying about $112 more per month for a $300,000 mortgage compared to November 2009,” she says. 
Tim Lawless, national research director at RP Data, says the rate cut will provide a further boost to housing affordability, “which the RBA has recently suggested is back around levels not seen since 2002”. 
“The big question now is how much of the rate cut will be passed on by the banks privately and whether this will be enough to provide a shot in the arm for the housing market. 
“Our latest index data showed capital city home values fell by 1.4% over the month of May, which is a factor the Reserve Bank would have been conscious of when deliberating their interest rate setting. Such a significant fall over a single month was unexpected, considering the cash rate was slashed by 50 basis points in the same month.  Not only did home values fall further in May, but we also saw consumer sentiment remain fairly steady, suggesting the May rate cut has had little effect in stimulating consumer confidence and spending,” says Lawless.
</body></html>

Decision to cut rates by 25 basis points will help spending and lift spirits: Mortgage Choice, RateCity.com.au

<html><body>
The Reserve Bank has cut the cash rate by 25 basis points to 3.5% today following its June monetary policy board meeting.
This is the lowest the cash rate has been since November 2009.
Borrowers will find out in the next few days how much of the rate cut will be passed on to them by their lenders.
ANZ will make its independent interest rate announcement on Friday, June 8 – the second Friday of the month.
Ahead of the RBA announcement, a Reuters poll of 20 economists had 10 expecting a 25-basis-point rate cut, four expecting no change, and six expecting a 50-basis-point cut.  
This was up from just four out of the 19 economists surveyed last week by Bloomberg, who expected the RBA to cut rates today.
</body></html>

RBA cuts cash rate by 25 basis points to 3.5%

<html><body>
Australia’s biggest mortgage broker, AFG, processed more than 7,600 mortgages worth more than $3 billion in May, recording its best month since March 2009.
The bump was helped by an increase in borrowers from WA, more loans from property investors and the average mortgage size rising from $383,000 to $393,000.
The May sales figures fell just short of the previous high of $3.15 billion from 8,988 loans mortgages written in March 2009, when the cash rate was at 3%, its lowest point for RBA records going back to 1990, with banks charging an average standard variable rate of around 5.8%.
In March 2009 the average size of a mortgage was $350,000.
The May figure was a 32% increase on the $2.27 billion (5,900) worth of mortgages processed in April – AFG brokers write one in every 10 mortgage processed in Australia.
In achieving its best month in more than three years, AFG bucked the overall national trend of stagnant mortgage growth, with the RBA recording only a 0.4% increase in housing credit provided over April and housing credit up just 5.3% for the year – the lowest growth since 1977.
Home loans processed for WA borrowers by AFG brokers hit an all-time high of $683 million over May, second only to NSW ($812 million) with Victoria ($641 million) and Queensland ($627 million) trailing behind. 
The percentage of mortgages arranged for property investment purposes increased from 35.2% to 37.1% over the month while those refinancing declined slightly from 36.2% to 35.8%
First-home buyers accounted for 15.8% of all mortgage sold – unchanged from April but well up on the 13.2% recorded a year ago by AFG brokers.
According to Mark Hewitt, general manager sales and operations, the automatic assumption that the May rate cut is behind the big increase tells only part of the story.
“We’re probably also seeing more borrowers turn to brokers to help them get the best deal in an increasingly competitive and complex market,” Hewitt says. 
“In addition, May is generally a stronger month, after the public and school holidays in April. 
“These figures do not conflict with the softening house price data published late last week. 
“Mortgages are processed before sales are confirmed, so our data is more a snapshot of where we are right now. Reduced property prices and interest rates are bringing more people back into the market, but anecdotally, many potential borrowers are still worried by both the offshore news as well as weakening conditions at home,” he says. 
Fixed-rate home loans remain near all-time highs (19.7%) “confirming continued borrower uncertainty” with lenders outside of the big four banks picking up 33% of AFG mortgage commitments in May.
</body></html>

AFG processes highest volume of mortgages in three years in May

<html><body>
Fund managers have acquired nearly half of the debt-laden Becton Property Group, which has struggled since the onset of the GFC. 
Following Darren Olney-Fraser’s fund management business the Mariner Corporation acquiring a 20% stake yesterday, Sydney-based fund manager Telopea Capital has bought a 19.9% stake, while property investment firm and fund manager Titanium Property has acquired a 7% stake. 
The three firms acquired the shares that were held by PricewaterhouseCoopers, the liquidator of Australian Capital Reserve (ACR), a financing company that collapsed in 2007. 
The decision to snap up the shares is  expected to provide some support to Becton following reports last week in the Fairfax press that the company was at the mercy of its lender after revealing debts of $200 million and assets of just $800 million. 
The sale was made possible following an agreement with ACR liquidator Greg Hall of PricewaterhouseCoopers and Macquarie Bank over the weekend. 
Mariner acquired 1.47 million shares for $1 million, equating to a price of 68¢ per share as well as $1.56 million in options, which can be converted into shares at no cost by 2021. Taking up the share options would raise Mariner’s stake to 26.9%. 
Andrew Kerr, managing director of Telopea Capital, says Becton has been held back because half of its shares have been controlled by a liquidator and says the recent transactions would provide diversification to its shareholder base and provide it with partners with “experience in capital partnerships and the real estate development markets”. 
In a statement Becton said it believed it had “sound long-term fundamentals” and that Mariner believed it was “in a good position to continue to reduce its debt from its current development projects and rebuild the business through the next property cycle”. 
Becton is currently working on three residential development projects with forecast settlements worth $1.23 billion and six retirement village projects with forecast settlements of $177 million. 
Current projects include Divercity in Waterloo in Sydney’s eastern suburbs; a master-planned development in Newleaf, Bonnyrigg near Liverpool in Sydney’s outer west, and Liv in Kensington, the inner-Melbourne suburb north-west of the CBD. 
Last week Becton revealed that it had obtained an extension on its financing arrangements with Suncorp on a $2.2 million loan for projects in Wahroonga and Hervey Bay but had not been able to negotiate the refinancing of a $73 million retirement community loan with Suncorp.
Becton is currently undertaking a revaluation of its retirement assets in conjunction with the Oman Investment Fund in the hope of securing a short-term extension of debt facility with Suncorp. 
The results of the revaluation will be completed on June 30, the value of retirement assets is expected to be reduced by between $20 million and$30 million.
</body></html>

Fund managers acquire nearly half of struggling Becton Property Group

<a href="https://www.apartments.com.au/developments/broadbeach-qld-4218">Broadbeach</a> offers plenty of reasons to live vertically, but moving from a substantial family home into an apartment can expose the compromises of high-density living. Privacy, room for guests and usable living space tend to matter more when an apartment is intended as a permanent home rather than an occasional coastal base.

A typical residential floor at <a href="https://www.apartments.com.au/new-apartments/the-eveleigh-broadbeach-7-9-surf-parade-broadbeach-qld-4218">The Eveleigh</a>, on Surf Parade,&nbsp;contains just four apartments. The 94-residence development by <a href="https://www.apartments.com.au/developers/hirsch-faigen">Hirsch &amp; Faigen</a> is predominantly made up of expansive three-bedroom homes, with a limited collection of half-floor penthouses above.

Across the apartment floors, <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> has used the relatively limited number of residences to give each home greater access to natural light and outlook. Living spaces extend towards full-height glazing, while a series of bay windows frame selected views across the Pacific Ocean, city and hinterland rather than treating the building edge as a continuous wall of glass.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360965]

“The apartment floors deliver a collection of homes that embrace controlled outlook via a series of bay windows deliberately framing moments of view,” Rothelowman Director Kim Lowman said.

From outside, those projecting forms contribute to the tower’s faceted profile. Strong horizontal and vertical elements establish its proportions, while the changing position of the sun alters the light, shadow and reflection across the façade throughout the day.

The same attention moves inside the apartments, where the material palette combines warm timber, natural stone, metallic detailing and softer curved forms. Kitchens sit within the main living zone, with stone island benches, integrated joinery and European appliances, before the living areas extend towards the glazing and the outlook.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360981]

Three genuine bedrooms provide room to accommodate family and guests, while two secure car spaces and storage address some of the practical considerations that can become more noticeable when moving from a larger home. Feedback from the display suite has centred on the warmth and restraint of the interiors, with buyers commenting that the residences feel like homes rather than conventional coastal apartments.

A limited collection of half-floor penthouses occupies the upper levels, increasing the scale of the living spaces and adding private balconies and elevated finishes. From this position, the outlook extends between the ocean and hinterland.

Outside the private residences, The Eveleigh separates its shared spaces between the podium and rooftop. The podium is centred on wellness, with subtropical landscaping surrounding a swimming pool and pool terrace, yoga garden, private gymnasium, sauna and hot and cold plunge facilities. Landscaped retreats and pavilions provide additional places to sit away from the main recreation areas.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360966]

Higher in the building, a rooftop pavilion and private dining suite sit alongside resident lounge, barbecue and outdoor dining areas, opening towards panoramic views across the ocean, city and hinterland.

“Buyers are no longer just looking for an apartment, but a lifestyle where they can relax, reset, and enjoy a balanced way of living,” Hirsch &amp; Faigen Director of Sales Matt George said.

Interest to date has come from established owner-occupiers and interstate lifestyle purchasers, including buyers planning a future move to the Gold Coast. Many are coming from larger homes and want to reduce ongoing maintenance without giving up space for family and guests, privacy, two car spaces or the ability to entertain at home.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360969]

Much of that daily life can also take place beyond the building without requiring a drive. Kurrawa Beach and Pratten Park are an easy walk from Surf Parade, while Pacific Fair, Oracle Boulevard, The Oasis, restaurants, cafés, entertainment and public transport are also within walking distance.

The Eveleigh is Hirsch &amp; Faigen's fourth Gold Coast development since entering the market in 2021, following The Hemingway at Palm Beach, The Emerson at Kirra and Yves at Mermaid Beach. Each of the preceding projects sold out before completion.

“Broadbeach had been on our radar throughout our time operating on the Gold Coast,” the developer said. “Following our projects in Palm Beach, Kirra and Mermaid Beach, Broadbeach represented the natural next step for the business.”

The Surf Parade site brought together proximity to the beach, protected coastal outlooks and walkability to dining, shopping and recreation. Hirsch &amp; Faigen also identified the street as an emerging premium residential address, with enough separation from Broadbeach's busier destinations to retain a quieter environment at home.

The Eveleigh is now under construction by Maxcon, with completion forecast for mid-2028. Three-bedroom residences are currently available from $2.87 million.

[smartcode_project_cta:default project_id=149670]

Joel Robinson

The Eveleigh brings house-like apartments to Broadbeach

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

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

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

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

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

<main data-perf-region="main">
Castle Hill, the longtime hub of the Hills District, has been one of the major beneficiaries of Sydney's Metro expansion, with improved connectivity helping drive continued population growth, development and buyer demand across the Hills District.

But despite that growth, the suburb has seen relatively few major new apartment projects brought to market over the past 18 months.

Hills District developer Reve Group is looking to fill that gap with <a href="https://www.apartments.com.au/new-apartments/nova-r-ve-castle-hill-2-garthowen-crescent-castle-hill-nsw-2154">Nova Rêve</a>, a major new mixed-use precinct on the corner of Garthowen Crescent and Old Castle Hill Road, a short walk from Castle Hill Metro Station and Castle Towers.

[smartcode_project:default project_id=152737 project_image_fid=377679]

The project will comprise three residential towers alongside a hotel, restaurants, cafes and a skybar, more than 1,600 sqm of ground-floor retail and almost an acre of landscaped gardens.

It represents the largest project undertaken by Reve Group, the development arm of the Kassis family, which has been building across the Hills District for more than 30 years through Kassis Homes.

[smartcode_project:default project_id=152737 project_image_fid=377675]

Nova Rêve also represents a significant step up from the family's first apartment development, Grand Rêve, which was delivered nearby on Garthowen Crescent.

Grand Rêve introduced larger, house-like apartment layouts and premium inclusions including Wolf and Sub-Zero appliances to the Castle Hill market.

Nova Rêve takes that approach to a precinct scale, combining the residential component with hospitality, retail and substantial public and resident landscaping.

[smartcode_project:default project_id=152737 project_image_fid=377685]

Reve Group Managing Director Sam Kassis said the project reflected the family's three decades of building in the Hills, which has evolved from trophy homes on quarter-acre blocks to larger-scale apartment development.

"Grand Rêve was our first apartment project here and it showed us what this pocket of Castle Hill could be. Nova Rêve is the refinement of that idea: not just apartments, but a place the whole suburb can use," Kassis said.

A key part of that approach is the hotel, which has been designed to operate as an amenity for the wider Castle Hill community rather than solely hotel guests.

It will include restaurants, cafes, skybars and all-day dining, alongside conference and event facilities catering to business functions, community groups and private events.

At ground level, more than 1,600 sqm of shops and cafes will open onto the surrounding streets and landscaped areas.

Almost an acre of gardens designed by Land and Form Studios will run through the precinct, incorporating pathways, seating, barbecue areas and children's play spaces.

[smartcode_project:default project_id=152737 project_image_fid=377680]

Reve Group's Romio Georges said creating an active ground plane had been central to the planning of Nova Rêve.

"There are gardens with pathways, barbecues, seating and play areas, shops and cafes opening onto the street, and a hotel with restaurants and a skybar that anyone in Castle Hill can walk into," Georges said.

The project's elevated position on one of Sydney's highest ridgelines will also provide apartments with outlooks toward the Sydney skyline, surrounding parkland and the Blue Mountains.

More than 80 per cent of the apartments will occupy corner positions, with Turner responsible for both the architecture and interiors.

&nbsp;

[smartcode_project_cta:default project_id=152737]

<h3 data-end="3697" data-section-id="q3n5ak" data-start="3672">&nbsp;</h3>
</main>

Larry Schlesinger

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News