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Victorian property investors looking for opportunities under $500,000 should look at apartments in the inner-Melbourne suburb of St Kilda East and also cast their nets as far as Geelong, Bendigo and Ballarat, according to analysis by Herron Todd White (HTW) valuers in the latest Westpac Property Report.
<img src="/images/stories/2012/05/vicregionalmap.jpg">
“Throughout Victoria and Melbourne there are abundant opportunities for buyers in the under-$500,000 price range, and in this sought-after end of the market prospects for future capital growth look good virtually across the board,” HTW chief executive Brendan Hulcombe.
HTW says St Kilda East is very appealing to investors on a tight budget and would provide change on $500,000, with apartments trading at a median unit price of $465,000 and yields ranging from 4% to 4.5%.
According to HTW, affordability – particularly in the apartment market, is encouraging investor interest in St Kilda East, which is just six kilometres from the Melbourne CBD.
Other factors keeping rental demand high are good transport connections via trams servicing the main shopping hubs like Chapel Street and Acland Street and the cosmopolitan feel of Carlisle Street, as well as a predominantly young local population “creating a compelling urban lifestyle that should underpin future capital growth”.
There are currently a spate of new developments being marketed off the plan to investors, including the Hotham Street Apartments, due for completion in 2013, which will offer 18 dwellings with basement car parking with prices starting from around $380,000.
Geelong
Geelong also offers opportunities under $500,000, with the key drawcards of this market being a manageable commute into Melbourne and more affordable prices.
“Employment opportunities are strengthening in Geelong, and a population shift away from Melbourne towards the urban growth boundary has seen Geelong’s population continue to increase.
“Geelong is viewed as an investment hotspot and a good all-round performer for 2012. Rental yields range from 4.5% to 5% and median house prices rose by 5.7% last year giving investors a healthy overall return,” says HTW.
Geelong has a median house price of $530,000, with apartments ranging from around $290,000 to $390,000. Vacancy rates are also low at 2.3%.
Bendigo 
HTW notes that the Bendigo residential market has stabilised over the last quarter with demand remaining buoyant alongside reasonable sales turnover providing good opportunities for investors to take advantage of the city’s current rental shortage.
Bendigo yields are generally between 5.5% and 7%, with a current median house price of $277,500 and $227,500 for apartments, meaning investors could quite possibly by one of each and still stick to their budget of $500,000.
“Latrobe University plays a key role underpinning demand for rental accommodation in Bendigo, and yields are higher than for other nearby regional centres like Echuca and Shepparton. Proposed investment in the city’s health infrastructure by the state government will continue to promote Bendigo as a major regional growth centre,” notes HTW.
HTW valuers say a land shortage is emerging in Bendigo and price growth in residential house lots has become quite noticeable in recent months.
“As a guide, some new developments such as the Evergreen Links Estate in Eaglehawk have experienced price rises of 25% over the past year. This shortage points to good prospects for further capital growth in the future,” says HTW.
Ballarat 
A growing population and a very low vacancy rate at around 1% make Ballarat a good option for investors.
“Ballarat property prices have remained stable and affordable with median prices of $285,000 and $223,750 for houses and apartments respectively,” says HTW.
“Investors are experiencing yields ranging from 4.75% to 5.5%, and the vacancy rate is very low at around 1%,” says HTW.
Ballarat’s current population of around 96,000 people is forecast to rise to 130,000 by 2030 due to regional employment opportunities.
According to HTW, the desirability of Ballarat is further enhanced by its mix of period houses and modern homes, with the one hour commute to Melbourne attracting buyers priced out of the metropolitan market.
“The Ballarat West Growth Area and the Alfredton West Precinct Plan have resulted in significant rezoning of land, and this will lead to the development of new major activity centres along the lines of Lucas – Ballarat’s newest suburb, which is expected to release up to 2,300 new land plots over the next 12 to 14 years,” says HTW.
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Regional centres Geelong, Ballarat and Bendigo offer best sub-$500,000 property investment opportunities in Victoria: HTW

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There’s good news for first-time investors and buyers, with banks now considering casual and secondary incomes when assessing mortgage applications, according mortgage advisors Smartline.
The mortgage broking franchise says the banks are now looking favourably at a variety of income types when considering home loan applications, having tightened their lending rules in the fallout from the GFC.
“While overtime, bonuses and second jobs used to be regularly accepted by lenders, unfortunately this changed when the GFC hit,” says Smartline managing director Chris Acret.
“Those with casual or contract employment or who were self-employed also found it much more difficult to secure home financing as banks becoming very risk adverse.
“Thankfully, lenders are increasingly ‘normalising’ their lending criteria and while we haven’t yet returned to pre-GFC levels, it’s moving in the right direction,” he says.
The move will be welcomed by those investors and buyers who are self-employed or on contract or casual employment.
According to Smartline, some lenders will now also consider the income of a person working in a temporary, casual or contract position after three months, particularly if the applicant works in certain roles, such as an accountant, teacher, nurse or engineer.
This is because banks have “sensibly” revised their view on income types in light of changing work practices.
“The full-time position that was guaranteed for life is slowly becoming less and less relevant as both employers and employees look for greater flexibility in the workplace and in their lives,” says Acret.
However, he warns that different lenders could have quite different criteria when it came to assessing income types.
Find out why buying an investment property as your first purchase could be the easiest and cheapest way to get your foot on the property ladder by signing up for next week’s free Property Observer webinar with Michael Matusik: Tips for buying your first property as an investment. The webinar takes place on Tuesday, June 5 at 12.30pm.
 
 
 
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Banks considering alternative income sources when assessing mortgage applications: Smartline

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Residential construction remains in the doldrums, with the value of residential building work completed falling 2% in the March quarter to just under $11 billion, according to the latest quarterly ABS construction figures.
New residential building work fell 1.3% to $9.6 billion on a seasonally adjusted basis, the fourth consecutive quarterly fall following a smaller 0.3% fall in the December quarter.
The value of renovations fell 5.3% to $1.8 billion over the quarter.
The value of residential building is down 8.3% on the March 2011 quarter on a seasonally adjusted basis.
HIA senior economist, Andrew Harvey, says the result for new dwelling construction and renovations is a concern "as it suggests not only that dwelling investment will again detract from GDP growth in the March 2012 quarter, but also that the renovations side of the residential building industry is now also facing headwinds”.
"Renovations have been the positive news story for the residential building industry with the value of total work holding up relatively well, but there are now mounting signs that this side of the industry is slowing.
“Today’s data is just another piece of evidence that current policy settings need to be amended. The official GDP growth forecasts remain too optimistic, interest rates need to be cut again next week and governments need to quickly support the domestic non-resources industry, including residential building and manufacturing so that the nation is well-placed to grow in the longer-term,” he says.
Non-residential construction work fell 9.2% in the quarter to $7.46 billion and is down 6.8% year-on-year.
Combined, the seasonally adjusted estimate of total building work done fell 5% to $18.45 billion in the March quarter.
The total value of building work has fallen 7.7% since the 2011 March quarter.
On the back of the big resource projects, engineering work rose 13.3% for the quarter to $29.84 billion and is up 35.6% year-on-year.
Commenting on the quarterly data, Westpac says housing construction activity weakened, "with the sector facing a number of headwinds" though lower interest rates will provide support to the sector over coming quarters.
An indication of the impact of large resource projects, construction work jumped 38.8% in WA, but declined in all other states. 
Westpac says the  construction sector is likely to add around 0.6 percentage points to first quarter GDP growth, a little above the 0.4 percentage points it anticipated. 
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Value of residential construction falls 2% in March quarter: ABS

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The fall in the Australian dollar in the last few months is currently not great enough to encourage expat Australians to invest back in the local residential property market, according to Greville Pabst, chief executive of property valuers and consultants WBP Property Group. 
Pabst says a falling Aussie dollar is positive news for expatriates, with the improved conversion rate giving them “greater buying power”. 
However, he says the fall in the dollar has been minimal to date and “insufficient to spur a dramatic surge of expatriate investment in the local market”. 
“Should the Australian dollar deteriorate to or below 90 cents against the US dollar we expect to see an influx of expatriate buyers,” he says. 
“A fall of 10¢ in the dollar (AUD) equates to a saving of $53,500 for expats based on the purchase of a property at Melbourne’s current median house price of $535,000. This is a great incentive in anyone’s eyes. 
Expats sometimes buy residential property in Australia as an investment while they live abroad, but often choose to move into the property once they return to Australia. 
Yesterday, Property Observer reported that the fall in the dollar would strengthen <a href="https://www.propertyobserver.com.au/commercial/falling-dollar-encouraging-even-more-offshore-investment-in-australian-commercial-property/2012052754857">already strong demand for commercial property from offshore investors</a>. 
Pabst says falls in the Australian dollar will also lead to improved affordability in the local education sector for international students, “which will have a positive impact on activity in the property sector”. 
A fall in the dollar would be particularly beneficial to Chinese property investors and Chinese international students, with the yuan pegged to the US dollar. 
LJ Hooker executive chairman Janusz Hooker says the real estate group is already seeing interest from expats due to the falling dollar and lower house prices. 
“On Sydney's north shore last weekend LJ Hooker had an expat fly over from Miami as well as a couple from London looking at local residential property,” he tells Property Observer. 
“LJ Hooker has seen a number of expats looking at residential property.   Expats are looking at it as a 'now' opportunity. 
“A number of experts are split if the dollar will stay below parity, so Australians living overseas with plans to come home, combined with a soft real market over the past 12 months, are very interested,” he says.
The Australian dollar is currently trading at just above 98 US¢.
Since April this year it has declined from around $1.04 against the US dollar to below 98¢, with a more gradual decline commencing from the $1.09 level in February.
Australian dollar versus US dollar since July 2010
<img src="/images/stories/dollarchart1.gif">
Source: XE.com
It reached parity with the US dollar in November 2010 and rose to a 29-year high of $1.108 on July 27 2011 before retreating.

Currently economists are tipping the dollar to fall as low as 95 US¢ due to concerns over Greece exiting the euro, Spanish banks falling in trouble and data showing the Chinese economy is slowing, potentially reducing demand for Australian raw material.

AMP Capital Investors chief economist Shane Oliver says the current fall in the dollar “looks and feels like the pull-back last year when the Aussie dollar went from a high of about $US1.10 in the middle of last year to fall to 94¢.

However, he believes that the currency should trade back to parity or stronger than the US dollar by the end of the year.

A further drop in interest rates could also cause the Australian dollar to fall – Australia’s high interest rates relative to other markets has made the country appealing to global investors who have bought Australian dollars and kept the currency buoyant.

 
 
 
 
 
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Australian dollar needs to fall below 90 US¢ to bring back expat residential property buyers: WBP

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Fixed-rate mortgages currently account for around one in four loans (22%) written by Mortgage Choice brokers and could rise even higher following Australia’s biggest mortgage lender, the Commonwealth Bank, cutting fixed interest rates twice in May. 
However, demand for fixed-rate loans is still well below the record levels written in December 2007 (36%) and February 2008 (37%), according to data prepared by Mortgage Choice for Property Observer.
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Source: Mortgage Choice
The rush to take out fixed-rate mortgages over this period burned many fixed-rate borrowers who took the three-year fixed products, as the RBA rapidly reduced the cash rate in response to the GFC. 
The RBA cut the cash rate from 7.25% in August 2008 to 3% by April 2009. 
Borrowers who took out a three-year fixed-rate loan in August 2008 would only have been able to refinance into a cheaper product late last year – unless they were willing to pay early exit fees – in some cases, thousands of dollars. 
“The cash rate continued to rise during early February 2008, while fixed-rate demand began tapering off as the impact of the GFC moved closer to home,” explains Mortgage Choice spokeswoman Belinda Williamson. 
“In the years since we have not seen fixed-rate demand return to the pre-GFC levels. The closest it has come was in March 2012, when fixed-rate demand reached 26%.” 
She says the jump in fixed-rate loan demand in 2007, up from 23% in July 2007 to 27% in August 2007, coincided with the cash rate rising for the first time in almost one year. 
“The cash rate jumped again in November 2007, and during this same month, Mortgage Choice reported record levels in the fixed-rate loan uptake (to 37%, up nearly six percentage points from October 2007),” Williamson says. 
“The cash rate continued to rise during early February 2008, while fixed-rate demand began tapering off as the impact of the GFC moved closer to home.” 
Currently, demand for fixed-rate mortgages has remained high despite the Reserve bank cutting the cash rate in November and December, and a double rate cut in April.  <a target="_blank" href="/news">Westpac predicts another 50 basis points in cuts between now and August.</a>
Official ABS figures also have fixed-rate demand at 14.5%, the highest level since 2008, with most of the growth occurring during the period starting in November when the RBA began cutting official rates.
Figures compiled by Canstar Cannex for The Australian also show that fixed rate loan commitments have grown rapidly after making up just 7.5% of all new mortgages in March last year.
In January 2010, fixed rates accounted for just 0.88% of Mortgage Choice loans – the lowest level in five years.
Currently, demand is being driven by the cheap rates on offer in the fixed-rate space.
The Commonwealth Bank currently offers a standard variable mortgage of 7.01% but a three-year fixed rate of 5.99%, which illustrates in a nutshell why fixed-rate products remain so appealing. 
Aside from the CBA, Westpac has trimmed its three year-fixed mortgage by 20 basis points to 6.19%; HSBC has cut its three year fixed-rate product to 6.09% (or 5.99% for those investors who take up the interest-in-advance offering) and ME Bank has cut its three-year fixed rate mortgage product to 5.99%.
 
 
 
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Fixed-rate mortgage demand driven by cheap deals – but still off GFC peaks: Mortgage Choice 

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Property investors looking for good income streams should consider investing in regional NSW towns like Tamworth, Dubbo and <city><place>Orange</place></city>, according to research by PRDnationwide. 
“Our research reveals high yields for residential property in regional areas. While it has been common knowledge that higher yields can be achieved in regional cities, the fall in house and unit prices in some areas have pushed yields even higher,” says Oded Reuveni-Etzioni, research analyst at PRDnationwide. 
The property group has selected the three regional towns that are defying the overall subdued conditions in regional NSW due to their diverse economies and strong investment by the mining sector. 
Reuveni-Etzioni says these conditions are providing strong yields in the short term, with a potential for capital growth in the medium and long term. 
<img src="/images/stories/2012/05/dubortam.jpg">
He provides the following guide with examples for investors. 
<a target="_blank" href="/news"><place>Tamworth</place> </a>
This large and stable economy led by retail, healthcare, manufacturing and  education is also complemented by robust tourism and equine industries. The city experienced one the strongest growth in population in NSW, equating to an average increase of 1.5% per annum in the five years to June 2011. 
The indicative median rental yield in March 2012 was 6.3% for a three-bedroom house and 6.3% for a two-bedroom unit. 
Examples for some properties achieving higher yields include: 
<ul>
<li>
<street><address>Campbell Street, South</address></street><place>Tamworth</place> (three-bedroom house) –  Sold for $210,000 and rented out for $270/week = 6.7% return. 
</li>
<li>
<street><address>Cohen Lane, North</address></street><place>Tamworth</place> (two-bedroom house) – Sold $169,000 and previously rented out for $225/week = 6.9% return. 
</li>
<li>
<street><address>Napier Street, East</address></street><place>Tamworth</place> (three-bedroom house) – Sold for $260,000 and rented out for $345/week = 6.9% return. </li>
</ul>
 
 
 
<a target="_blank" href="/news">Dubbo</a> 
The Dubbo area is known for its rare earth resources, with several mining companies currently moving into the production stage, while others are investing in infrastructure to support their operations. The mining activity supports strong retail and agricultural sectors, creating a diverse economy that in turn maintains pressure on the retail, industrial and residential property markets. According to the local council the largest employers in the town are retail trade, healthcare and education. Manufacturing is also an important employment sector. 
The indicative median rental yield in March 2012 was 5.8% for a three-bedroom house (low unit activity made the yield for this type of dwelling not reliable). Examples for some properties achieving higher yields include:
<ul>
<li>
<street><address>Sheraton Road</address></street>, Dubbo (three-bedroom house) – Sold in March for $290,000 and rents for $350/week = 6.3% return. 
</li>
<li>Opal Street, Dubbo (three-bedroom house) – Sold in March for $230,000 and rents for $320/week = 7.2% return. 
</li>
<li>Wheelers Lane, Dubbo (four-bedroom house) – Sold in March for $181,000 and advertised for rent at $300/week = 8.6% return.</li>
</ul>
<city><place><a target="_blank" href="/news">Orange</a></place></city> 
A low unemployment rate of 4.5% is an indication for the strength of the local economy. Information obtained from the Orange City Council identified government health services and Newcrest Mining as the largest employers in the region. The city experienced the strongest growth in population in the state, equating to 2% in the 12 months to June 2011 and an average of 1.5% per annum in the five years to June 2011. 
The indicative median rental yield in March 2012 was 6.3% for a three-bedroom house and 6.1% for a two-bedroom unit. Examples for some properties achieving high yields include:
<ul>
<li>
<address>
<street>Anson Street</street>, <city>Orange</city>
</address> (three-bedroom house) – Sold in February 2012 for $290,000 and rents for $340/week = 6.1% return. 
</li>
<li>
<address>
<street>Courallie Drive</street>, <city>Orange</city>
</address> (three-bedroom house) – Sold in February 2012 for $290,000 and rents for $350/week = 6.3% return. 
</li>
<li>Spring Street, <city><place>Orange</place></city> (two-bedroom unit) – Sold in February 2012 for $240,000 and rents for $320/week = 6.9% return. 
</li>
<li>
<address>
<street>Burrendong Way</street>, <city>Orange</city>
</address> (two-bedroom unit) – Sold in February 2012 for $213,000 and advertised for rent at $285/week = 7% return.</li>
</ul>
 
 
 
 
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High rental yields on offer in regional NSW towns Tamworth, Orange and Dubbo: PRDnationwide

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 The City of Melbourne, Southbank and Docklands will continue to be the epicentre of high-density urban renewal projects in Melbourne until 2014, according to a new report compiled for the Property Council of Australia by consultants Charter Keck Kramer (CKC). 
However beyond 2014, CKC anticipates that there will be an increased provision of medium-density projects, “particularly across the established middle region, as well as continuing supply of smaller apartment projects”. 
The apartment push into the suburbs is already occurring in established middle-region suburbs like Dandenong, 30 kilometres from the CBD, where 43% of construction activity is currently for apartment projects. 
Apartment projects account for more than a third (34%) of construction activity in Box Hill, 28% of activity in Footscray and 22% of activity in Sandringham. 
CKC says it can be confidently predicted that residential urban renewal supply will slow considerably after 2014, “given the heavy influence of apartments within the urban renewal concept”. 
“The evident slowing in the established housing market since 2010, and the more pronounced reduction in off-the-plan apartment sales activity at the same time will translate through to lower future completion levels,” says CKC.
The report anticipates that 421 major residential urban renewal projects (including several multiple stage developments) will be completed between 2012 and 2014. 
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The projects are expected to deliver 34,440 dwellings, with 82% of these being apartments, with the higher concentration of supply in larger projects of more than 100 dwellings. 
Over this period, about 42% of new apartment buildings will have more than 10 levels, compared with 31% in the construction period from 2005 to 2011. 
High-rise apartments will remain concentrated within the established inner-city municipalities. 
The report notes that pattern of major residential urban renewal concentrated in the City of Melbourne (including parts of the St Kilda Road precinct), Southbank and will continue to prevail. 
However, it notes that though the City of Melbourne will account for a lesser concentration (29%) of overall activity than it has over the recent past. 
Stonnington and Yarra local government areas account for the greatest increases in relative supply between the recent past and forthcoming periods. Their shares of overall metropolitan activity will increase by 3 percentage points to 9% each. 
The CKC report ranks the City of Melbourne as the top urban renewal LGA from 2005 to 2011 (6,651 apartments) followed by Southbank (2,718 apartments); Docklands (1, 956 apartments, 2026 total dwellings); South Yarra (1,352 apartments) and Port Melbourne (1,070 apartments, 1,183 total dwellings). 
In total CKC identified 607 individual major urban renewal projects (including several multiple stage developments) that have been completed between 2005 and 2011, containing 39,355 new dwellings.
The report, Making the Numbers Stack Up, was released in response to Victorian government projections that over the 40 years to 2051, Victoria’s population will increase by 3.2 million to 8.7 million. 
Over the same period, Melbourne’s population is expected to grow to 6.5 million, while regional Victoria is projected to grow to 2.3 million. 
The report concludes that there is currently “strong alignment between policy and market preferences for supply into locations offering high amenity and transport connectivity”. 
“Metropolitan policy should reinforce this nexus and seek to minimise constraints to new development where such preconditions exist so as to optimise supply opportunities and maximise community benefits associated with urban renewal. 
“Locations that currently do not exhibit the necessary preconditions to support higher density outcomes must undergo a period of progressive step changes in market conditions and density before apartments can be supported. 
“Not every centre, nor every suburb, can be expected to accommodate higher-density urban renewal but those suburbs which have the necessary preconditions (transport, amenity and supportive house price structures) should be expected to provide opportunities for appropriate urban renewal to occur,” says the PCA.
Photograph courtesy of <a href="https://www.flickr.com/" target="_blank">Flickr</a>.
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Melbourne urban renewal to slow and spread to the suburbs from 2014: Charter Keck Cramer

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Borrowers will have to wait until July at the earliest for the next rate cut, according to the latest Bloomberg poll of economists.
Just four out of the 19 economists surveyed by Bloomberg expect the RBA to cut rates again when it meets on June 5.
Analysts say the Reserve Bank might wait for fresh inflation data before making its next decision, but will also be keep a close watch on global events, particularly in Europe and in China, <a target="_blank" href="https://www.propertyobserver.com.au/news/rba-worried-about-china-industrial-slowdown-glenn-stevens/2012052854866">as mentioned by RBA governor Glenn Stevens yesterday</a>.
If the RBA relies on the official ABS data, it will have to wait until August 7 to make its next interest rate decision, as June quarterly CPI data will only be released on July 25.
Westpac chief economist Bill Evans expects at least a 50-basis-point cut between now and August, but says Westpac is reserving its right to review its forecast on the RBA's decision at its June 5 meeting “until next week, when more information will be available around the global situation”. 
“We were also disappointed at the poor response of Consumer Sentiment in May and the continued deterioration in respondents' already weak confidence about job prospects. That prompted us to subtly moderate our view from 50bps in June/August to 'at least' 50bps. 
“With the RBA's concerns around Europe and the assessment that policy is only mildly stimulatory the case for an immediate rate response is respectable. In fact a case to front-load the cut to offset any further confidence damage from Europe is also respectable,” says Evans.
The Reserve Bank might be swayed to move earlier by fresh data from other sectors, which will come out of over the next few days. 
Tomorrow retail trade figures for April will be released giving an indication of consumer sentiment, while on Thursday building approvals data for April will give the RBA a sense of whether residential construction may pick up in the months ahead.
The RBA will also be able to reflect on a weaker housing market when the RP Data-Rismark May Home Value index is released on Friday.
RP Data national research director Tim Lawless says the housing market over May has remained “fairly soft, suggesting the recent interest rate cuts and strong labour force results are yet to have a positive influence on housing market conditions”.
“Over the month to date, the daily RP Data-Rismark Home Value Indices have fallen lower for each of the major capital cities apart from Adelaide,” he says.
Retail sales figures are forecast to rise by just 0.2% in April after an unexpected 0.9% increase in March.
The RBA will also take note of the disappoint result in the May Westpac Melbourne Institute Index with consumer sentiment rising just 0.8% despite the 0.5-percentage-point rate cut.
 
 
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Reserve Bank may put rate cut cycle on hold in June: Economists

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Discounted sales of low-rise apartment by receivers have helped drive a 49% increase in Gold Coast sales over the March quarter, the first quarterly sales increase in 12 months. 
There were 113 unconditional sales on the Gold Coast and adjoining Tweed Coast, with the low-rise sector accounting for 46 of these. 
Despite this increase, quarterly sales remain at very low post-GFC levels – in March 2008 there were more than 500 quarterly sales. 
In doing so it overtook the high-rise sector sales rate for the first time in six years.
During the whole of 2011, there were only 103 low-rise apartment sales. 
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“Several low-rise projects are in the hands of receivers resulting in price reductions and renewed marketing campaigns which has created the higher sales rate, and this is expected to continue,” commented Colliers in the March quarter update. 
Ilanah Aqua and Azzura Greens at Hope Island were the strongest performing low-rise projects across the Gold and Tweed Coasts, with 17 and 16 sales respectively for the quarter, driven by receivership sell-downs. 
According to Colliers, there are 10 low-rise projects on the Gold Coast containing 144 apartments available for sale. 
Based on the current increased sales rate, this stock could be exhausted within 9.4 months unless new projects are released to the market. 
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Only four of the seven precincts covered in this report have low rise apartment stock and all have very low levels, with the exception of the north shore precinct. 
The north shore precinct was the best-performing low-rise precinct on the Gold Coast in terms of sales volumes, with 36 sales across three projects, while Surfers Paradise was the weakest. 
Surfers Paradise recorded only one project sale during the March quarter – XXV Breaker Street at Main Beach where two sales were recorded at $1 million each.
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With the north shore experiencing a higher-than-average sales rate, this stock level will be taken up quickly, leaving very low supply levels across the Gold Coast in the low-rise sector.
Across the region, the average sale price of a new apartment was approximately $640,848.
The report notes that the number of apartment projects have almost halved in the past three years, with just 47 projects being marketed currently compared with 80 in 2009 – the lowest level since 2004.
There were 1,245 apartments available for sale at the end of March 2012, equating to 33.1 months (2.75 years) of supply based on the current quarterly sales rate.
Only one new project was added to during the March quarter: Sykes Apartments in Southport, with one- and two-bedroom units being marketed from $285,000 to $385,000.
Three projects sold out at Coolongatta: Ciel, Elysee and Reflection Tower Two; two at Robina: Sidewalk on Scottsdale and St Kilda; and one at Broadbeach: Sierra Grand.
Tony Holland, Colliers International director of residential project market, says the increase in sales on the Gold Coast could signal a turnaround for the market.
“Confidence is clearly on the improve – the economic outlook for Queensland is good, recent changes in government at both a state and council level have created a more positive sentiment, and this month’s interest rate reduction of 50 basis points will also work to improve confidence,” he says.
“With no new stock entering the market in the short term, availability continues to fall, which will lead to supply shortages in some areas, particularly in the low-rise sector. Our research has found that for the first time in six years the low-rise sector recorded a higher sales rate than the high-rise sector, with 46 sales,” he says.
“Potential future supply of new apartments across the Gold and Tweed Coasts stands at around 12,500, 64%t of which are located between Hope Island and Surfers Paradise, but there is no certainty as to whether and when these will actually be built,” says Lynda Campbell, Colliers International Gold Coast research manager.
“The second half of 2011 saw the north shore precinct reporting sales volumes at their lowest levels since the end of 2008 but this has turned around to now be the best performing precinct on the Gold Coast, with a total of 42 sales reported for the quarter.
“The increased sales rate in the north shore precinct has resulted in a sharp decline in availability, particularly in the one-bedroom and one-plus-study sector, leaving almost no stock remaining,” says Campbell.
 
 
 
 
 
 
 
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Low-rise receiver sales help drive 49% increase in Gold Coast apartment sales over March quarter: Colliers

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Investors who borrow through their self-managed super funds to acquire property continue to breach the rules and risk being reported to the Tax Office, warns Heather Gray, a partner at law firm DLA Piper.
Her warning comes as the ATO revealed in its third-quarter update (to March 31) that it had prosecuted of more than 1,500 people for tax and superannuation offences, sending “a clear warning to tax cheats that they can expect to be caught”. 
Properties acquired by a SMSF <a target="_blank" href="https://www.propertyobserver.com.au/finance/clarity-for-smsf-property-investors-as-ato-defines-single-acquirable-asset/2012052454820">using limited-recourse borrowing rules</a> have to be acquired via a separate trustee with a custodian holding the legal title.
“Clients still get this wrong all the time,” said Gray at the Institute of Chartered Accountants in Australia’s Business Forum 2012.
“They will ring you (their financial advisor) on a Monday morning all excited saying they have found a great property over the weekend for their super fund.
“They will tell you they have signed a contract and want to sit down to discuss how they will structure the investment in their fund,” says Gray.
But, she says, invariably the custodian has not signed the contract.
“In fact the client has not even thought about the custodian; it’s not even a twinkle in their eye as yet.”
“And they have paid the deposit, who knows from where – probably from some random banking account,” Gray says – not from the fund.
Such basic mistakes can result in investors breaching SMSF borrowing rules and being reported to the ATO.
“It is the super fund buying the property and the super fund that must provide the money,” explains Gray.
Furthermore it is the custodian, which holds the legal title, and it must be the one that signs the contract of sale.
Tax Commissioner Michael D'Ascenzo says the March quarter ATO prosecution figures show that there are “significant risks and consequences for people who do not properly fulfil their legal and civic responsibilities in relation to tax and superannuation”.
"The year-to-date results to 31 March reveal that the ATO successfully prosecuted 1,106 individuals and 400 companies for tax and superannuation offences," he says.
“We have a range of measures in place to ensure we detect and deal with those who evade their obligations. This includes information sharing and working with other government agencies, and also with overseas counterparts.
"The ATO pursues tax cheats to the full extent of the law to ensure honest taxpayers have their interests looked after. Australians don't want to face an unfair burden when dishonest people avoid their tax obligations, and they expect the ATO to provide a level playing field,” says D’Ascenzo.
Last week the ATO finalising guidelines for what constitutes a single acquirable asset under limited recourse borrowing rules and clarifying what <a target="_blank" href="https://www.propertyobserver.com.au/renovating/ato-ruling-specifies-allowable-repairs-and-renovations-for-smsf-property-investors/2012052454821">renovations and repairs are allowed to be carried out on properties</a> acquired through super.
 
 
 
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SMSF investors still making basic mistakes on property purchases as ATO cracks down on super ‘cheats’

<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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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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