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House prices and home sales in Silicon Valley, the technology hub south of San Francisco, increased strongly in the months leading up to the floating of Facebook shares on the Nasdaq index. 
In the city of Palo Alto, where Facebook has its headquarters, the median price of single-family house has risen 9% in the past year to $1.28 million, according to the Zillow Home Values Index – the biggest jump since 2008.
Click to enlarge
<a href="/images/stories/zillow.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/zillowthumb.gif"></a>
 
This median price equates to about 34,000 Facebook shares at the current price of $38 per share.
According to Zillow, 85% of homes in Palo Alto increased in value in March, while only 11% decreased in value.
Earlier this year, before the listing of Facebook shares, founder Mark Zuckerberg paid about $7 million for 465-square-metre, seven-bedroom house in an affluent neighbourhood of Palo Alto. 
The prospective listing of professional networking site LinkedIn has also helped drive up property prices around its Mountain View headquarters, just south of Palo Alto.
LinkedIn’s plans to list on the New York Stock Exchange (NYSE) were announced in January, with house prices in Mountain View up 5.1% year-on-year to a median of $741,000.
Mountain View is also the headquarters of Google.
Figures compiled by US real estate listings website Sawbuck show that two months prior to the listing of Facebook, there were 1,531 home sales, compared with just 840 in the two months before Facebook announced its plans to go public.
The surge in prices in Silicon Valley is in sharp contrast to the overall performance in the US housing market.
According to the benchmark S&amp;P/Case-Shiller index of property values, house prices fell 3.6% percent in March year-on-year to their lowest level since 2003.
US house prices are down 33% from their peak in 2006.
According to Kenneth Rosen, chairman of Fisher Center for Real Estate and Urban Economics at the University of California, Berkeley, the boom in Silicon Valley house prices could continue into 2013.
“It’s just the beginning of the story, and I suspect we’ll see an explosion in the next couple years,” Rosen told Bloomberg.
“You’ve got young people with real money, and it’s not surprising they want to have a house,” he added.
According to Bloomberg, around 300 companies filed IPOs last year with 10% of those in California.
Venture capitalists invested almost $23.3 billion in Silicon Valley start-ups last year, according to estimates from the National Venture Capital Association show.
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lschlesinger-FZcF9M3vE6

Silicon Valley property market ‘likes’ Facebook IPO as local real estate prices rise

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A new office trust has been launched by Charter Hall giving high-net-worth investors and self-managed super funds (SMSFs) the opportunity to invest in a tax-advantageous A-grade Perth CBD office building, with yields of 9% promised.
The trust, known as the Charter Hall Direct 144 Stirling Street Trust, is made up of a single asset, the Hatch Building at 144 Stirling Street on the northern fringe of the Perth CBD.
The property is a recently constructed 11,0000-square-metre A-grade office building on a corner site with four street frontages and parking for 250 cars.
Engineering and consulting group Hatch is the key tenant and recently reviewed its lease for a further 10 years.
The trust aims to provide investors with sustainable and stable, tax-advantaged income and the potential for capital growth through investment in the Hatch building.
Charter Hall Direct is forecasting a first year income yield of 8.85%, growing to over 9% during the life of the Trust.
According to trust manager Charter Hall Direct Property, the unlisted property funds arm of the ASX-listed Charter Hall group, the trust has been launched in response to growing demand for investment opportunities in the Perth CBD.
Head of Charter Hall Direct Property Richard Stacker says advisers and investors are looking for alternative investments that have a return profile that is less correlated to equity markets and other asset classes.
“The growing spread between term deposits and direct property, which currently sit at around 3% to 4% after the recent lowering of interest rates, means SMSFs are very attracted to the yields on offer in direct property.”
Stacker says investors are looking to commercial property to enhance their overall portfolio returns. "We are currently in one of the best buying cycles since the mid-1990s and investors who understand or are being advised by people who understand property cycles are taking full advantage of this. "Investors need to be selective on the markets and property sectors they invest in. For example, in the resource based states commercial property markets are expected to outperform given the current climate and strong employment growth prospects.
“The new trust is one opportunity for retail investors and SMSFs to benefit from the resources boom, employment growth in Western Australia and what we expect will be strong continued demand for high quality office space over the medium term," he says. Stacker says 80% of Charter Hall Direct Property's equity flows are coming from SMSF investors and it is a segment he expects to see more growth from over the coming years. Minimum investment in the trust is $50,000. For end-of-financial-year tax tips for property investors, <a target="_blank" href="/news">sign up for our free webinar on Wednesday, May 23 at 12.30pm</a>.
 
 
 
 
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New office trust to provide ‘tax-advantaged’ income and yields of 9% to investors and SMSFs

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Australia is not suffering from a nationwide undersupply of housing, according to Rob Sindel, chief executive of building products group CSR.
"I think that some of the forecasts that we've previously seen around 180,000 and 200,000 housing starts a year being underlying demand, I don't believe those because they were predicated on the basis of household formations, the number of people living in a house shrinking. That hasn't come to pass. We've actually seen that number start to turn the other way, " Sindel told the ABC’s Inside Business program.
“[The number of people living in a house has] started to go up after falling for a number of years,” Sindel said.
“What you've got is you've got shortages in certain places. You've got shortages in NSW, you've got shortages in south-east Queensland. You've got a shortage in Western Australia.  “You don't have a shortage in Victoria. And it's often driven by land shortages, it's driven by a number of factors. So I think it's very hard to categorise the Australian market as just one market. There is a series of undermarkets,” he says.
Sindel warns that the current dip in housing construction is looking like being a much longer affair than dips experienced during the 1990s, which he says “were six or eight months then you could see your way through the other side”. “This time I think we had the dip, we had the stimulus, and now we've dipped again on the basis- and I think people are very fearful about what's happening in Europe and we've got a lot more information through the media.
“So people are putting off those big decisions like buying a house and so you're seeing a much, much more drawn-out recovery,” he says.
CSR estimates that total housing starts in Australia will fall to about 140,000 in the year to March 2013, down from the 148,300 in 2012.
Last week CSR reported that net profit fell to $76.3 million in the year to March 31 from $503.4 million the previous year.
Trading revenue fell to $1.8 billion from $1.9 billion.
"Excluding the global financial crisis and the introduction of the GST, this represents the lowest level of housing activity in the past 15 years," CSR said in a statement.
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No Australia-wide housing shortage: CSR’s Ross Sindel

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International brands like Zara and Apple have helped drive shoppers back to Westfield shopping centres and drive up sales among mini-major retail tenants, according to the latest quarterly update from the shopping centre group.
Turnover in the mini-major category, which includes Zara and Apple along with the likes of JB Hi-Fi, Dick Smith and Priceline, was up 2.7% for the year to March and 4.3% for the first three months of 2012, according to March quarter results filed by Westfield Retail Trust (WRT), the spin-off entity that manages the $13 billion portfolio of Australian and New Zealand shopping centres.
Over the quarter sales among mini-majors grew at nearly four times the rate of total speciality sales across Westfield’s Australian portfolio (1.1%) and more than double the 1.2% growth achieved over the year to March.
“Retailers such as Apple and Zara demonstrate the success that can be enjoyed through an exciting and engaging retail experience. These mini-majors are proving to be great destinational retailers,” said Westfield Retail Trust chairman Richard Warburton in his address to shareholders.
Warburton says Westfield centres are continuing to “evolve and adapt to the environment and new retail trends”. 
<img src="/images/stories/westfieldpittst.jpg">
“Innovative dining precincts, expanded retail services, new market entrants and larger-format stores are examples of this,” he adds. 
Zara opened its 1,800-square-metre store in Westfield Sydney on Pitt Street mall in April last year – its first store in Australia.
A new Zara store is planned at Westfield Doncaster for later this year.
There are Apple stores in Westfield Doncaster and Westfield Southland in Melbourne, Westfield Chermside in Brisbane and Westfield Hornsby in Sydney.
According to the quarterly results, cinema tenants are also performing much more strongly, with sales rising 9.3% for the first quarter of 2012 to be up 4% for the 12 months to March 2012, <a target="_blank" href="https://www.propertyobserver.com.au/news/westfield-cinemas-struggling-perhaps-due-to-pricey-popcorn/2011081751194">reversing a trend of declining sales</a> reported last year.
The decline in department store sales appears to be bottoming out, with sales at the likes of Myer and David Jones down 0.2% for the quarter compared with a 5.2% decline in turnover for the year to March.
Discount department store sales (Kmart, Target, Big W) fell 2.5% over the quarter, with jewellery stores (3.7%) and footwear retailers (1.8%) also performing poorly.
Click to enlarge
<a href="/images/stories/westfieldmay21.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/westfieldmay21thumb.gif"></a>
 
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The impact of international stores in driving retail sales was noted recently by CBRE retail services associate director Max Cookes.
Cookes says international retailers have helped Melbourne retain its mantle as one of the strongest-performing retail markets in the country. 
“The recent level of enquiry we have received from international retailers has been stronger than this time last year,” says Cookes.
“Over the past 18 months, we have successfully reached agreements with Zara, Topshop, Paul Smith and Thomas Pink, who have all opened flagship locations in Melbourne.”
According to the WRT update, speciality Westfield rents increased 3.1% for the 12 months to March 31.
Speciality sales were strongest in Westfield’s Victoria shopping centres rising over the first three months of the year 3.1% to be up 4% for the 12 months to March 2012 compared with the previous 12-month period.
In comparison NSW speciality sales were up just 0.3% and down 0.6% for the year.
The second strongest performing state was WA, with Westfield centres recording a 2% rise in speciality sales for the quarter, accelerating from just 0.6% growth for the 12 months.
Speciality retail sales generate over $9,700 per square metre in Australia, and over NZ$8,200 per square metre in New Zealand with the portfolio remaining above ensures continued demand for quality retail space with the portfolio remaining above 99.5% leased.
In February, the trust reported comparable net operating income growth up 4.3% in the year to December 2011 attributed to “the strength, quality and resilience of the property portfolio”. 
Over 2011 Westfield signed over 2,800 lease deals covering more than 375,000 square metres of retail space. 
Westfield Retail Trust managing director Domenic Panaccio says Westfield Sydney sales continue to grow strongly across all categories, with the luxury precinct and food retail performing well. 
“Customer traffic also continues to grow. The Westfield Sydney and Sydney Central Plaza precinct is the most productive centre in the trust’s portfolio from a specialty sales perspective and we are extremely pleased with our flagship asset,” he says. 
Panaccio says the Westfield Sydney project is now complete, with the $1.34 billion Westfield Sydney Facility repaid. 
The trust also reconfirmed that distributable earnings and distribution in 2012 are forecast to be 18.75¢ per stapled security.
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Zara, Apple and reviving cinemas among best-performing Westfield tenants

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Newcastle pubs have proved popular with Sydney investors, with both Newcastle offerings selling at a yield of 7.9% as part of an auction of seven ALH pubs in Melbourne on Friday.
Although the auction was well attended, there were few bidders at the auction at Melbourne’s Crown Casino, with four of the pubs passed in despite the best efforts of auctioneer David Scholes and the placing of a number of vendor bids.
Bidders appeared intent on securing bargains and yields of around 9%, with initial bidding on some of the pubs starting at well below the price suggested by Scholes on behalf of vendors.
<img src="/images/stories/dubbotav.jpg">
At one point, with bidders unwilling to meet the $12 million to $13 million starting price for the biggest property in the portfolio, the 4,100-square-metre Macquarie Inn Hotel and Dan Murphy’s in Dubbo (pictured above). Scholes tried to whip up interest by reminding them that fugitive Malcolm Naden was no longer hiding out at the nearby White Plains zoo.
“You can rest easy. He’s been captured,” Scholes said.
All seven pubs were auction with new 20-year leases (with five renewal options of 10 years each) to pub operator ALH and are 75% owned by Woolworths and 25% owned by private hotelier the Bruce Mathiesen Group.
<img src="/images/stories/doncastertav.jpg">
Despite pre-auction interest, the prized asset, the Cherry Hill Tavern Hotel and BWS bottle shop (pictured above) sitting on a 9,100-square-metre site near The Pines Shopping Centre in the affluent Melbourne eastern suburb of Doncaster, failed to sell.
Agents expect the 1,900-square-metre building, which includes an alfresco dining room and TAB gaming bar a well as a “thriving BWS bottle shop”, to sell post-auction
<img src="/images/stories/jewells.jpg">
The Jewells Tavern and BWS (pictured above) on the corner of Gradburn Parade and Gurdie Street in Newcastle was the only property to meet the reserve and sell at auction.
It sold for $5.821 million, just above the vendor bid of $5.82 million following a bidding contest between the eventual Sydney winner and a Melbourne buyer.
Having undergone a recent $865,000 refurbishment, the 1,000-square-metre brings in net rent of $460,000 per annum and sits on a 5,700-square-metre site adjacent to the Jewells Town Plaza Shopping Centre.
 
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<img src="/images/stories/charlestown.jpg">
The Mattara Hotel in Charlestown in Newcastle (pictured above), with net rent of $415,000 per annum, sold prior to auction for $5.25 million on a 7.9% yield.
<img src="/images/stories/caboolture1.jpg">
The Club Tavern and BWS on Beerburrum Road in Caboolture (pictured above), with net rent of $600,000 per annum and situated 41 kilometres north of Brisbane, sold post-auction on a yield of 7.9%.
Also selling post-auction was the Granada Hotel and BWS in Berriedale in Tasmania. There were four bidders on the property, with the winning bidder ($3.3 million) having the first right to negotiate with the vendor.
The pub eventually sold for close to the winning bid price on a yield of around 8%. It is located directly opposite from the $80 million MONA museum, the top tourist attraction in Tasmania.
The Westower Tavern, BWS and Dan Murphy’s on the Pacific Highway in Ballina, with annual net rent of $730,000 and across from the Big Prawn redevelopment, was passed in with a series of low bids not accepted.  The vendor is seeking around $10 million for the property, which measures 2,300 square metres.
The seven properties were marketed jointly by Burgess Rawson agents Billy Holderhead, Raoul Holderhead, Simon Staddon and Pat Kelly alongside Scott Callow, Daniel Dragicevich, Joel Fisher and Craig Harley from CBRE Hotels.
For end-of-financial-year tax tips for property investors, <a target="_blank" href="/news">sign up for our free webinar on Wednesday, May 23 at 12.30pm</a>.
 
 
 
 
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Newcastle ALH pubs sell to Sydney investors on 7.9% yields but Doncaster’s Cherry Hill tavern passed in

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Four St Hilliers Construction sites will reopen today, creditors of the failed business have been advised by administrators Trent Hancock and Michael Hird of Moore Stephens Sydney Corporate Recovery Group. 
The four sites, which take the total number of sites reopened since the company went into voluntary administration last week to eight, are all training facilities that are being constructed for the Department of Defence and have a combined value of $170 million.
They are:
<ul>
<li>Training facility at Watsonia, Victoria </li>
<li>Wide Bay Training Facility, Tin Can Bay, Queensland </li>
<li>Greenbank Training Facility, Greenbank, Queensland </li>
<li>Maintenance Training Facility, Bandiana, Victoria </li>
</ul>
In a statement the administrators and St Hilliers executive chairman Tim Casey and his team said they were optimistic that the 13 NSW social housing projects would reopen next week following a “constructive meeting with NSW Public Works on Friday”.
A creditors’ meeting will be held in Sydney on Friday.
Contractors on the defence sites are still owed money by St Hilliers, with ABC Wide Bay reporting that a Gympie electrical contractor PHE is owed $1 million for work on the defence force training base at Tin Can Bay. 
PHE manager Geoff Lobegeier says PHE will lodge a claim for the money but is worried the bill will not be paid. 
“I will do my best to pay my subcontractors because I've got a contract with them and ... that will leave us short ... so a business can only survive on money flow, so that's a huge concern," he told the ABC. 
Lobegeier is demanding the federal government step in and pay him the money. 
In the statement the administrators said they were in “active dialogue with all clients regarding all St Hilliers Construction Pty Ltd sites with the objective of reopening all remaining sites in NSW, Queensland, ACT and Victoria as soon as possible”. 
“The administrator and the company will continue to keep all stakeholders informed of progress,” the statement says.
 
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Four St Hilliers sites being built for Department of Defence to reopen today

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Dixon Advisory’s US Masters Residential Property Fund, the only listed Australian property trust with a primary strategy of investing in US residential property, is seeking to double in size ahead of its July listing on the Australian Stock Exchange. 
<a href="https://www.propertyobserver.com.au/overseas/dixon-advisorys-us-portfolio-up-to-101-properties-as-it-moves-further-into-new-jersey-suburbs/2012022153486" target="_blank">The fund has to date bought over 130 rental properties in New Jersey</a> and raised over $100 million from local investors. 
It is now seeking to raise a further US$50 million ($50.6 million) from Australian investor with the right to receive oversubscriptions for a further US$50 million. 
The new offer closes on June 12 ahead of a proposed July 20 ASX float. 
The fund is currently listed on the small-cap National Stock Exchange (NSX) under the code URF with a last traded share price of $1.60 giving it a market capitalisation of $99.8 million. 
The current share price is trading at a premium to its May 11 unaudited net asset value of $1.56 per unit, but below its listing price of $1.70 per unit. 
Fund investment manager Alan Dixon says investment opportunities in the US market are “highly attractive,… especially at a time when property prices are at cyclical lows, rental demand remains strong and rents are increasing. 
“This is particularly the case in the New York metropolitan area, where the fund is initially targeting with a specific focus in Hudson County, New Jersey.” 
Earlier in the month, the fund announced it was investing in a joint venture with Urban American, a US real estate investment firm specialising in multi-family properties in the New York metropolitan area, to acquire a portfolio of 13 specific multi-dwelling apartment complexes with 398 residential units in Hudson County, New Jersey, with the funding contributing US$10.2 million of the acquisition cost of US$38 million. 
Since launching, the fund has targeting the New York metropolitan region and has bought 132 properties in Hudson County, New Jersey worth $27.5 million with yields ranging from 5.7% to 10.3%. 
It has conditional acceptances on a further 99 properties worth a combined $23 million. 
Combining this joint venture with conditional and unconditional acceptances on detached houses in Hudson County takes its total acquisition costs to US$76.1 million. 
The fund has bought free-standing houses for an average of US$219,000 and units for an average of US$95,000. 
The properties are all located in Hudson County within close proximity to public transportation networks providing easy access to Manhattan and various public amenities. 
In its presentation to shareholders said valuations remained very depressed “but improving”, the mortgage market remained broken “but healing slowly” and rental demand was “robust” with “growing rents, low vacancy, quality applicants”. 
Housing affordability is at record highs but applicants can’t get mortgages, the fund says. 
The fund expects to pay semi-annual distributions to unit holders and of a minimum 10¢ per unit for the calendar year ending December 31, 2012.
 
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Dixon Advisory’s US property fund seeking extra $100 million ahead of ASX listing 

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The first creditors meeting for the collapsed construction arm of St Hilliers has been set for May 25 as accusations continue to fly over decisions to award government contracts to the Sydney-based property and construction group just months before it collapsed.
A spokesperson for administrators Trent Hancock and Michael Hird of Moore Stephens Sydney Corporate Recovery Group says the meeting will be held in Sydney but could not provide details about the number of creditors or how much they are owed.
Creditors will include hundreds of building contractors, many of which are small business operators who have worked on St Hilliers projects around the country and have not been paid for their work.
Yesterday the administrators met with major clients, but smaller contractors are yet to receive any reassurances.
At the same time the NSW’s Barry O’Farrell government continues to come under heavy fire for awarding tenders to St Hilliers to take over 13 public housing projects in Wollongong, the Hunter, Shoalhaven and Coffs Harbour worth $25 million just two months ago.
St Hilliers won the tender to complete the projects following the collapse of previous contractor, Sydney-based building company Perle, in February last year.
Embattled NSW Finance Minister Greg Pearce says the federal government should investigate the collapse of the construction business and has accused St Hilliers of using the voluntary administration as “cynical attempt” to avoid its debts.
However, Pearce has in turn been accused of passing the buck after approving St Hilliers as the winning bidder for the public housing projects.
Pearce has defended the appointment of St Hilliers and says the NSW government performed two financial assessments of the company before it was contracted to complete the NSW projects.
He claims that “no one at all raised with me any issue about St Hilliers’ financial position”.
Among those caught out by the collapse is Lake Macquarie landscaper Matt Corfield, who worked on a public housing project in Teralba in the Hunter and is owed more than $6,000 by St Hilliers and a further $10,000 from Perle.
Corfield told the Newcastle Herald he had received “an iron-clad guarantee” from St Hilliers he would be paid because “there was no way the government could afford the embarrassment of a second collapse”.
"Now this has happened. They owe me $6,732. It was supposed to be a stimulus job, but it’s reverse stimulus because it could put us out of business.”
Corfield has three full-time employees, a full-time apprentice and a casual worker, who he says could all end up on the dole as a result of the collapse.
The Coffs Coast Advocate reports that Coffs Harbour tradesmen working on a public housing project are owed $660,000 and like Corfield have been caught up in the second collapse of a government-appointed building contractor on the same project.
 
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Yesterday, administrators announced that <a target="_blank" href="https://www.propertyobserver.com.au/news/anxious-wait-for-creditors-and-contractors-as-30-st-hilliers-projects-worth-%24300-million-stuck-in-limbo/2012051754737">four St Hilliers projects</a> – two commercial projects in Sydney and mining projects for BHP and Xstrata – had reopened but as many 26 remain closed leaving up to 1,000 contractors out of work and not yet paid.
The four projects have a combined value of $31 million but still leave the value of stalled projects at between $300 million to $500 million based on different media estimates.
It’s difficult to calculate the value of current St Hilliers projects, as all links on the company’s website lead to the administrators’ statement – archived press releases are inaccessible.
In a strange coincidence Greg Pearce’s website <a href="https://www.gregpearce.com.au/" target="_blank">https://www.gregpearce.com.au</a> is also not working and automatically redirects to <a target="_blank" href="https://www.myelectorate.com.au/">https://www.myelectorate.com.au/</a>.
Yesterday the administrators, Trent Hancock and Michael Hird of Moore Stephens Sydney Corporate Recover Group, along with St Hilliers executive chairman Tim Casey and his team met major clients.
The Department of Defence has $173 million of work with St Hilliers.
A spokesman said it was investigating options with the administrators that would deliver the “best outcomes for all parties as soon as possible”.
But the cause of the problem, the need for an additional $150 million in funding for the Ararat Prison extension, is unresolved.
Victorian Corrections Minister Andrew McIntosh says the larger players in the project’s consortium, including Commonwealth Bank and Bilfinger Berger, should deliver the Ararat Prison and pay all contractors and sub-contractors.
“It is incumbent on them to deliver on their contractual obligations,” he said on a visit to Ararat.
He said the government was committed to the project but played down any government intervention.
“The best use of taxpayers’ money is to enforce the terms of that contract,” he said. “The most important thing is we desperately need the 350 beds as soon as possible.”
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St Hilliers creditors’ meeting set for May 25 as hundreds of contractors still await payment on projects

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Newcastle-based lender the Greater Building Society, perhaps most famous for getting Jerry Seinfeld to do its advertising, can now also claim to have the lowest three-year fixed home loan rate in Australia.
The Greater has reduced its three-year fixed Ultimate (packaged) Home Loan by 15 basis points to 5.79% per annum. Product manager David Bryde believes this is the lowest three-year home loan rate in Australia.
Mortgage comparison website RateCity.com.au had listed IMB Building Society as having the lowest three-year fixed-rate loan at 5.89%, but this offer appears no longer available, with the IMB website showing an advertised three-year fixed rate of 5.99%.
This 5.99% three-year fixed-rate also offered by the Commonwealth Bank, ING Direct, ME Bank, CUA, Aussie and Citibank.
The Greater has also cut its credit card rate by 0.49%, bringing it down to a starting rate 10.25% from June 1.
“The Greater continues to offer Australian consumers with better value home loans and credit cards than the major banks as well as outstanding service,” says Bryde.
“Alternatives to the major banks are already here and it is already easier to switch financial institutions than people think,” he adds.
The Greater Building Society is one of Australia’s largest building societies with almost 250,000 customers across NSW and South East Queensland with 66 branches.
 
 
 
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First Jerry Seinfeld, now Greater Building Society claims cheapest three-year fixed-rate loan

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Property investors who take up an offer from HSBC Bank of a discounted fixed rate mortgage product if they pay the first year's interest on the loan upfront could cut their end-of-year tax bill by thousands of dollars, while making a small saving on their mortgage repayments.
HSBC has cut its fixed-rate mortgage products by 10 basis points and is offering an additional 10-basis-point discount for investors that who take up the “interest-in-advance” offering.
The rate cut means the bank’s three-year fixed-rate product has dropped to 6.09% but will drop to 5.99% for those investors who take up the interest-in-advance offer.
Paying the interest upfront will allow investors to claim a tax deduction for the interest expense earlier.
HSBC has calculated that investors taking out a $300,000 mortgage on a three-year fixed rate term would have to pay $17,970 interest in advance for the full year with mortgage repayments reduced by $300 over this period.
According to accounting firm Chan &amp; Naylor, an investor on a taxable income of $100,000 would be able to reduce his tax bill by more than $7,000 (from $26,700 to $19,691.70)  by paying the $19,691.70 before the end of the current tax year.


Alice Del Vecchio, head of mortgages for HSBC Bank Australia, says paying interest in advance on a fixed-rate loan allows customers to enhance the tax effectiveness of their property investment. 
“With tax season approaching, many of our customers will be considering various investment strategies, so offers like these come at an opportune time,” she says.
The HSBC fixed-rate cut comes as ABS March housing finance data revealed that fixed-rate mortgage demand climbed to its highest level since April 2008, with nearly 15% of borrowers opting for a fixed-rate product during the month.
Please note this article does not constitute tax advice and the numbers quoted are for illustrative purposes only.
Here’s a guide to the range of headline three-year fixed rate products currently on offer:
5.79%
The three-year fixed-rate offering of Greater Building Society
5.99%
The three-year fixed-rate offering of Commonwealth Bank, ING Direct, ME Bank, CUA and Aussie, Citibank, IMB Building Society.
6.03%
The three-year fixed-rate offering of LJ Hooker Finance
6.04%
The three-year fixed-rate offering of ANZ
6.09%
The three-year fixed-rate offering of HSBC Bank Australia and NAB, St.George, Bank of Melbourne, BankSA
6.13%
The three-year fixed-rate offering of Suncorp
6.15%
The three-year fixed-rate offering of Myrate.com.au
6.19%
The three-year fixed-rate offering of Westpac and ANZ
6.29%
The three-year fixed-rate offering of Heritage Bank and Homeloans Ltd
 
6.33%
The three-year fixed-rate offering of Bankwest
6.34%
The three-year fixed-rate offering of Bendigo Bank
6.37%
The three-year fixed-rate offering of Yellow Brick Road
6.39%
The three-year fixed-rate offering of bankmecu
6.46%
The three-year fixed-rate offering of Resi Mortgages
 
 
 
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Tax savings for property investors who take up HSBC interest upfront offer on fixed-rate mortgages

<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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