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The Australian building and construction industry has been plunged into deeper crisis with the construction arm of St Hilliers being placed into voluntary administration due to funding issues relating to the Ararat prison project.
An associated company, St Hilliers Ararat Pty Ltd, part of a consortium contracted to undertake the $350 million expansion of the Ararat Prison in central Victoria, has been placed in liquidation.
A statement on the St Hillers website says that Michael Hird of Moore Stephens Sydney Corporate Recovery Group has been appointed as voluntary administrator.
The construction arm has been placed in administration “due to exposure under guarantees for debts of St Hilliers Ararat Pty Ltd relating to the Ararat Prison project in Victoria”.
“Negotiations over several months between the Ararat Prison equity investors and its bankers in conjunction with the state of Victoria have failed to reach a definitive agreement for additional funding of approximately $150 million.
“The St Hilliers Group could not allow further debts to be incurred without adequate funding. As a consequence, the group determined that the only prudent course of action was to cease work on the Ararat project and place St Hilliers Construction Pty Ltd into voluntary administration.”
St Hilliers Group executive chairman Tim Casey described the decision to place the construction arm in administration as “very regrettable”.
“We have over a number of months explored and exhausted all possible avenues to recapitalise the construction business and find a solution to the significant cost and time overruns on the Ararat project.
“Unfortunately a solution was not possible under the current regime.
“We will now work actively and constructively with the administrator and all stakeholders to continue all viable projects and to find a way to restructure the construction business going forward.
“For the rest of the St Hilliers Group it remains business as usual,” Casey says.
<img src="/images/stories/sthilliers2.jpg">
The construction arm employs about 360 people, and the group has annual turnover of around $700 million with a head office in Sydney as well as offices in Melbourne, Canberra, and Brisbane.
Its collapse adds to the growing number of building companies that have collapsed recently.
<a href="https://www.smartcompany.com.au/construction-and-engineering/048778-suburban-tradies-collapse-as-construction-and-building-industries-suffer-through-2012">According to a SmartCompany review of insolvency appointments in March</a>, more than 80 building and construction firms entered administration, liquidation or were hit by a winding-up notice over the previous month on the east coast alone.
High-profile collapses have included <a href="https://www.propertyobserver.com.au/news/kell-rigby-one-of-australia-s-oldest-most-respected-building-companies-set-for-voluntary-administration/2012020853012">century-old building firm Kell &amp; Rigby</a>, with creditors voting in April to liquidate the business. Other collapses include Royal &amp; Taricon Construction, Amorin Constructions, BQL Constructions, Bina Constructions, Simtom Constructions, Australian Property and Construction Pty Ltd.
<img src="/images/stories/araratprison.jpg">
The $400 m Ararat prison project (artist's impressions above and below) is a joint venture with New Zealand firm Hawkins and is being built to address a shortage of prison facilities in Victoria and was commissioned by the Brumby government in 2010.
<img src="/images/stories/araratprison2.jpg">
The project is about 18 months behind schedule, with unions claiming that subcontractors are owed more than $10 million. Last week the consortium told subcontractors there was no money to pay them.
Only 12 workers turned up to work on the project last week out of 250.
Earlier this month concerns were reported about St Hilliers being able to complete the prison project, with construction union Victorian secretary Bill Oliver writing to the company to express concerns about non-payment of suppliers and deterioration of health and safety on other St Hilliers sites.
The administration does not involve St Hilliers Property Pty Ltd, the entity responsible for the group’s activities in funds management, property development and asset management with independent custody arrangements in place.
According to a statement posted on the St Hilliers website, the administrators will be seeking to complete viable projects once they assess the position of each of the projects.
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St Hilliers construction arm placed in voluntary administration

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Treasury secretary Martin Parkinson has rejected criticisms that the government’s spending cuts and taxation policies announced in the budget (and aimed at generating a surplus) are undermining the efforts of the RBA to stimulate spending and borrowing following the 0.5% rate cut announced on May 1.
Speaking to economists in Sydney today, Parkinson said the current directions of monetary and fiscal policy were not at cross purposes but simply reflected “a return to their normal roles following an extreme event.”
“The primary objective of fiscal policy, outside of extreme events like the GFC, is to maintain the budget in a sustainable position from a medium-term perspective, while monetary policy should play the primary role in managing demand to keep the economy stable,’’ Parkinson said.
“In an economy with unemployment forecast to be not far from reasonable estimates of its lowest sustainable rate, and commodity prices remaining near historical highs, it is appropriate that the budget return to surplus to remain consistent with the medium-term fiscal objective."
Last week, economists said returning the budget to surplus could dampen domestic growth.
Credit Suisse strategists Damien Boey and Atul Lele suggested fiscal and monetary policy were working against one another. “In principle, the budget could bring the economy to the brink of recession, but for the timely intervention of the RBA,’’ they said.
Releasing the federal budget last week, Wayne Swan said returning the budget to surplus would ensure the Reserve Bank “continues to have the flexibility for further interest rate cuts if it thinks that's necessary”.
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Government fiscal policies not undermining rate cuts: Treasury's Martin Parkinson

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Minutes released today from the RBA’s May 1 monetary policy meeting show that the continued weak housing, construction and mortgage conditions were factors in the bank cutting the cash rate by 50 basis points, though the pace of house price decline may be slowing.
However, Westpac chief economist Bill Evans says the minutes provide no guidance "to suggest either that a cut can be expected next month or that the board, having cut by a larger than expected amount is prepared to wait and assess the impact over a few months before moving again".  "Our current forecast is for rates to bottom out at 3.25% with cuts of 25bps in both July and September. However, the specific timing of these moves and whether the Bank eventually decides to go a little lower is most uncertain with three weeks between now and the June Board meeting and in particular global developments highly volatile," he says.
The May 1 minutes note that “members were briefed on the continued weakness in the housing market generally and residential building activity in particular”.
The minutes also note that “demand for housing finance had eased in the past few months and recent data suggested that dwelling prices had continued to decline, although there were tentative signs that the pace of decline had been more gradual overall in recent months”
“Despite dwelling prices declining relative to incomes and rises in rental yields, forward-looking indicators implied little prospect of an imminent recovery in housing construction.
“Information from liaison suggested that households were unwilling to commit to contracts for new dwellings because of concerns about job security and declining dwelling prices,” say the May minutes.
The weakness in the housing market was noted in both the April and March minutes after the Reserve Bank reported in February that “there were signs of [house price] stabilisation in some major cities around the end of the year”.
In April the RBA noted “soft overall conditions in the housing sector”.
In March, the RBA said the “housing market remained soft, with auction clearance rates in February broadly unchanged from late 2011.
“Housing credit continued to grow at a slower rate than nominal income.”
 
 
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'Continued weakness’ in housing influenced May rate cut decision but little guidance from RBA on future rate cuts

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The rate of construction of Melbourne apartment projects is expected to slow due to projects taking longer to transition from marketing to construction, according to the latest research by real estate group Oliver Hume.
The group also forecasts the number of high-rise building approvals to halve over 2011-12.
According to Oliver Hume, the high number of active projects in part suggests a softening in the sector, “as absorption rates slow with projects taking longer to move to construction”
March quarter figures in the Melbourne Apartment Market report show that the number of apartment projects being developed in the metropolitan region has fallen below 300 for the fourth successive quarter.
Although there are fewer active projects, the higher number of apartments in each project expected to be fully developed could mean more units being marketed off-the-plan than in the previous corresponding quarter.
In total there were 295 active projects in the March quarter (the highest since the June quarter 2011), which if fully developed ("and more will than will not") will deliver around 40,100 apartments: compared with around 321 projects and 37,230 apartments in the corresponding quarter 12 months ago.
Of these 40,100 apartments, more than half – 22,000 – are currently under construction or already completed.
Five local government areas – Boroondara, Melbourne, Port Phillip, Stonnington and Yarra – contain more than 55% of all metropolitan Melbourne apartment projects, compared with 80% of all apartment projects in 2008.
Over the quarter a total of 35 new projects were released, injecting close to 3,000 apartments into the pipeline. 
During the previous quarter there were 36 new projects released, containing approximately 3,030 apartments. 
The most active market is the City of Melbourne, with 17,650 apartments, followed by Stonnington and Yarra. Boroondara and Port Phillip make up the top five.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/oh.gif"><img src="/images/stories/ohthumb.gif"></a>
According to Oliver Hume, the median one- and two-bedroom entry prices for apartments are $366,750 and $502,000 respectively, with the price difference between one- and two-bedroom apartments continuing to drop. The difference is now only $135,500, down from around $151,000 six months ago.
Since 2008, the entry-level price of a one-bedroom apartment in metropolitan Melbourne has risen at an average rate of 2.4% a year, from $335,000 to $366,500. 
The entry-level price of a two-bedroom apartment has risen by 2.9% a year, from $450,000 to $520,000. 
The report found that only one in every five new projects contained some form of community facilities or amenities. 
Across all new releases, the median entry living area of both one and two-bedroom apartments is 44 and 64 square metres respectively. 
According to Oliver Hume, high-rise building approvals in Melbourne are expected to halve over 2011-12 compared with a year ago.
The real estate group says high-rise approvals will slip back to around 17% of all approvals, comprising a total of around 8,000 approvals. This is down from some 15,000 in 2010-11 and about the same as in 2009-10.
High-rise apartment approvals in Victoria peaked in 2010-11 to just over 60% of all multi-unit dwelling approvals and 41% of total approvals, with most of these developments occurring around the Melbourne CBD.
Andrew Perkins, national head of research at Oliver Hume, expects lower rates of approval for the rest of the year following the largest-ever spike in Melbourne apartment developments.
The drop in high-rise building approvals comes alongside an overall dip in multi-unit approvals with Oliver Hume forecasting multi-unit approvals in 2011-12 to slip back to 15,900 or 35% of all dwelling approvals compared to a dwelling approval peak of 24,400 in 2011-12.
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Melbourne high-rise approvals to halve compared with last year as construction slows: Oliver Hume

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Ahead of an expected turnaround in the Brisbane market, John McGrath will extend his real estate business into the Queensland capital city, with five new offices set to open over the next 12 months.
A McGrath Estate Agents company-owned office will open in the inner-Brisbane suburb of Paddington on May 21, followed by another four franchised Brisbane offices over the next 12 months.
Currently McGrath has offices at Surfers Paradise and Palm Beach in Queensland, plus two in the ACT and about 40 in NSW.
A fourth Queensland office will open in Toowoomba next month to service regional and outer Brisbane areas.
McGrath’s chief executive John McGrath says the expansion into Brisbane had been planned for two years, with the decision contingent on finding the right location and team.
“I firmly believe that the Brisbane real estate market is trending upwards,” he says. “The past few years have been tough but there is plenty of evidence that a healthy recovery is underway.
“The time now feels right to make our move into Brisbane. There is a new State government, the financial benefits of the resource boom are filtering through to the commercial sector and the impacts of the Global Financial Crisis and floods are beginning to recede.
In November <a target="_blank" href="https://www.propertyobserver.com.au/industry-news/mcgrath-expands-from-outer-to-inner-canberra/2011111652399">John McGrath announced plans to open two new offices in Canberra</a>, with branches in Dickson and Woden.
It entered the ACT market in 2010 with an office in Gungahlin in north ACT.
However McGrath has yet to establish a foothold in the Victorian market, with no agents or real estate branches in Melbourne or other locations.
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McGrath Estate Agents to expand into Brisbane market

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Demand for fixed-rate mortgages soared to a four-year high in March as customers took advantage of an extremely competitive market and low fixed rates on offer.
Analysis of ABS housing finance data by CommSec shows that nearly 15% of home loans taken out in March were on fixed-rate terms, the highest proportion since April 2008, when fixed rate mortgages accounted for 19% of all home loan commitments.
CommSec chief economist Craig James says “home loan buyers clearly are shopping around for the best deals, and that may mean more cocktail loans – part variable, part fixed (known as a split loan)”.
Borrowers are also taking advantage of fixed rates that are currently, on average, lower than variable-rate mortgages.
According to research by mortgage comparison website RateCity.com.au, the average three-year fixed rate is 6.24%, compared with the standard variable mortgage rate average of 6.74%.
RateCity.com.au lists IMB Building Society’s three-year fixed rate product, which has an interest rate of 5.89% as the lowest rate in the market, followed by the Greater Building Society at 5.95%.
Lenders to have cut their fixed-rate mortgages recently include ME Bank, which cut its three-year fixed rate on the Super Member Home Loan to 5.99% on May 7.
Towards the end of April Westpac brands Rams, Bank of Melbourne and St George all cut their three-year fixed-rate products to 5.99% (the two banks for a limited time).
The growing appeal of fixed rate mortgages was foreshadowed in March Mortgage Choice figures (released in April), which found that the popularity of fixed-rate loans among its borrowers had jumped to a four-year high. Fixed-rate loans accounted for 26% of approved home loans written by Mortgage Choice mortgage brokers in March, up from 20.6% in February and well above the 12-month average of 17.7%.
At the time, Mortgage Choice spokesperson Belinda Williamson attributed the increase in demand for fixed-rate mortgages to concerns over that the Reserve Bank might increase the cash rate or lenders moving their interest rates independently of the central bank.
“Borrowers’ appetites for fixed-rate loans may have also been spurred on by competitive lender pricing,” Williamson added.
In April 2008 borrowers locked in fixed rate mortgages as the cash rate climbed to 7.25%, the highest rate since December 1994, following six years of incremental rate increases.
However, borrowers that switched to fixed-rate products in April 2008 were severely stung as the RBA entered into a big rate cutting cycle soon after  (starting in September 2008) to counter the effects of the GFC, reducing the cash rate from 7.25% to a record low of 3% by April 2009.
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Fixed-rate mortgage demand reaches four-year high: ABS

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The Reserve Bank does not expect the residential construction sector to mount a recovery in the near future, assistant governor Philip Lowe has said in a speech comparing the performance of the mining and non-mining sections of the economy.
His comments come as ABS housing finance figures show the number of loans for the construction or purchase of new homes lifted by 3.5% in March but are still tracking at post-GFC levels of below 8,000 monthly mortgage commitments.
Lowe said the RBA had expected dwelling approvals to pick up gradually over 2011, but this pick-up had not eventuated.
He described this as the “biggest surprise” in terms of the demand-side of the economy.
“One possible explanation for this is that it is one of the side effects of a return to more traditional savings and borrowing behaviour by households,” Lowe said.
“This change in behaviour is having ripple effects through the economy, including through a lowering of expected capital gains on housing.
“This has made developers, financiers and households less willing to commit to new construction despite rising rental yields, lower prices relative to income and ongoing growth in population.
“While, at some point, the improving fundamentals should generate a pick-up in home building, the recent forward-looking indicators do not suggest that this is imminent,” Lowe said.
During the speech, Lowe also highlighted that the RBA expects the current low rate of underlying inflation to persist over the next few years, which would give it the flexibility to cut interest rates further.
“The bank’s latest inflation forecast is for underlying inflation, abstracting from the effects of the carbon price, to stay close to its recent rate over the next one to two years,” said.
He also highlighted big differences in the growth rates and demand for goods and services related to the mining sector compared with the non-mining sector, with the March quarter CP data showing “declines in the prices of most goods, the price of domestic holidays, and for the price of new dwellings”.
“These are all areas where demand growth has been soft and firms’ margins are under downward pressure,” Lowe said.
He said the RBA expected overall GDP growth to “return to around trend over the forecast horizon” with recent reductions in the cash rate providing “some boost to demand in the non-mining-related parts of the economy”.
“However, it does seem likely that growth in some sectors will remain below the average experienced over the past couple of decades.
“How things develop will depend importantly on the ability of firms to improve their productivity and on the ability of the labour market to match workers with the new jobs being created.”
 
 
 
 
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No imminent recovery in home building: RBA

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Property investors seeking property investments that best match their investment strategies now have a new search tool launched by real estate portal <a href="https://www.homesales.com.au/" target="_blank">Homesales.com.au</a>.
The free search tool allows property investors to search for properties based on whether they are seeking a positive or negative cashflow investment.
Investors are also able to search based on suburban historical capital growth performance, suburban rental yields, suburban population size and the percentage of people who own properties in the suburb.
Investors can choose from a number of mortgage repayment options when beginning their searches.
Capital growth performance and yield data is provided by Residex, while suburb home ownership and population data is “created” by Residex based on ABS data from the 2006 census.
Each property listing also provides median weekly rents for houses and units in the suburb, the annual number of sales, average vendor discounting and average number of days on market – all provided by Residex.
While each listing provides a “Property Rental Yield” category, this information is not currently provided.
The search does not include properties listed for auction or those with a price on application listing.
Homesales.com.au is a website in the stable of ASX-listed online car sales classifieds portal carsales.com.au.
“Property investment is about making informed rather than emotional decisions. Therefore it was important to build a unique service for this part of the property marketplace,” says homesales.com.au general manager Rhett Dallwitz.
Dallwitz says the investment property search is the first of a number of market-specific launches homesales.com.au is planning moving into the next financial year.
For more on online tools for property investors, sign up for our free webinar this Thursday, May 17 at 12.30pm.
 
 
 
 
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New online investment property search from homesales.com.au prioritises financial strategy alongside location

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Some signs of life returned to the mortgage market in March, with owner-occupier mortgage commitments rising 0.3% on a seasonally adjusted basis over the month, according to the latest ABS estimates. 
The value of investment housing commitments seasonally adjusted fell 1.0% in March 2012 while the total value of dwelling commitments excluding alterations and additions falling  0.5% on a seasonally adjusted basis in March to $20.18 billion.
The strongest gains were made in the resource-rich states, with owner-occupier mortgage commitments up 3.5% ($232 million) in Western Australia and 2% ($176 million) in Queensland. 
The Northern Territory was the standout among the smaller markets with a 23% ($73 million) increase. 
NSW remained flat with just a 0.1% increase in mortgage lending while there were falls recorded in Victoria (down 79, 0.6%), Tasmania (down 37, 4.5%), the ACT (down 22, 2.6%), and South Australia (down 14, 0.4%).
Mortgage broker Loan Market calculated that national results for the March 2012 quarter were 10% up on the corresponding quarter in 2011 with all states and territories on the mainland on the rise. Only Tasmania bucked the trend.
Western Australia and Queensland had March quarter increases of 25% and 16%  respectively, while the Northern Territory was up 18% and NSW 11%. There was a 4% increase in South Australia, 3% in the ACT and 2% in Victoria. Tasmania had an 8% decrease.
Loan Market corporate spokesperson Paul Smith says the latest figures are "highly encouraging". 
“We are obviously seeing more confidence from consumers so far this year, compared to last, which augers well for the months ahead.”
Smith says this month’s lowering of official interest rates from 4.25% to 3.75% would also have an impact on the home finance market in the coming months.
“With two consecutive months of flat activity, we should see the figures for May and June spike in reaction to the RBA’s rate cut,” he says.
”Even though most lenders held back on passing on the full 50 basis points, they still lowered their variable rates by significant margins in a positive move for home loan customers.
The Housing Industry Association (HIA) noted that the number of loans for the construction or purchase of new homes lifted by 3.5% in March,  "a welcome piece of good news given the existing weak conditions facing the new home building sector", according to HIA senior economist, Andrew Harvey.
“The March figures reflect a period prior to the 50 basis point cut in interest rates which occurred in May, and although the cut was only partiallly passed on by Australia’s banks, this factor should act to spur a further modest improvement in new home lending in the coming months,” Harvey says.
New South Wales was a key driver of the national result with the March 2012 seasonally adjusted number of loans for new housing (construction and purchase of new) up by 13.6%.
Elsewhere, Victoria rose by 1.7%, South Australia by 0.5%, Western Australia by 1.9%, Tasmania by 7.3%, the NT by 19.3% and the ACT by 12.1%. Queensland was the only jurisdiction which saw new home lending fall in the month of March (down by 2%).
The number of first-home buyer loans as a share of total owner-occupied home loans dropped to 16.4% in March 2012 from 17.2% in February 2012.
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Mining states lead rebound in demand for owner-occupier mortgages in March: ABS

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Mortgage Choice and Aussie Home Loans will be able to continue to require that their mortgage brokers be members of the Mortgage and Finance Association of Australia (MFAA) without the threat of legal action, following a ruling by the Australian Competition and Consumer Commission (ACCC).
Aussie and Mortgage Choice along with Virgin Money and ING Bank lodged applications in 2007 and 2008 known as “third line forcing notifications” seeking protection from legal action for its exclusive arrangement with the MFAA.
The requirement restricted brokers’ choice of industry body membership and did not recognise membership of rival industry body the Finance Brokers Association of Australia (FBAA).
The notifications protected the four organisations until such time as the ACCC made its ruling.
During the course of the review, ING Bank withdrew its notification and Virgin Money advised that it did not engage in the conduct.
Exclusive dealing arrangements such as third line forcing are prohibited under Australian competition rules, but organisations can apply to the ACCC for protection from legal action for these arrangements to continue.
The applications proved highly controversial within the mortgage broking industry.
In making its ruling, ACCC chairman Rod Sims said the consumer watchdog believed the arrangements “continue to deliver a benefit to the public, notwithstanding the commencement of a national regulatory regime for the credit industry in 2010”.
“The MFAA's membership requirements impose higher educational and certain other professional standards on its members than the regulatory regime,” said the ACCC in its ruling.
"The ACCC considers requiring MFAA membership is likely to assist those lending businesses to ensure that their brokers are of a consistent high standard and to meet their compliance obligations under the National Consumer Credit Protection Act.
“The ACCC acknowledges requiring MFAA membership restricts choice of professional association for these brokers, thereby limiting competition from other similar professional associations.  However, given the small number of mortgage brokers currently affected by the notified conduct compared to the overall size of the industry, the ACCC considers that any public detriment is likely to be minimal.
“Further, the MFAA membership requirement is only imposed by two industry participants.  There are a large number of other businesses that individual brokers can work for if they disagree with the MFAA membership requirement.”
 
 
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ACCC allows Aussie and Mortgage Choice to require MFAA membership

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

Joel Robinson

The Eveleigh brings house-like apartments to Broadbeach

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

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

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

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

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

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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.

[smartcode_project:default project_id=152737 project_image_fid=377679]

The project will comprise three residential towers alongside a hotel, restaurants, cafes and a skybar, more than 1,600 sqm of ground-floor retail and almost an acre of landscaped gardens.

It represents the largest project undertaken by Reve Group, the development arm of the Kassis family, which has been building across the Hills District for more than 30 years through Kassis Homes.

[smartcode_project:default project_id=152737 project_image_fid=377675]

Nova Rêve also represents a significant step up from the family's first apartment development, Grand Rêve, which was delivered nearby on Garthowen Crescent.

Grand Rêve introduced larger, house-like apartment layouts and premium inclusions including Wolf and Sub-Zero appliances to the Castle Hill market.

Nova Rêve takes that approach to a precinct scale, combining the residential component with hospitality, retail and substantial public and resident landscaping.

[smartcode_project:default project_id=152737 project_image_fid=377685]

Reve Group Managing Director Sam Kassis said the project reflected the family's three decades of building in the Hills, which has evolved from trophy homes on quarter-acre blocks to larger-scale apartment development.

"Grand Rêve was our first apartment project here and it showed us what this pocket of Castle Hill could be. Nova Rêve is the refinement of that idea: not just apartments, but a place the whole suburb can use," Kassis said.

A key part of that approach is the hotel, which has been designed to operate as an amenity for the wider Castle Hill community rather than solely hotel guests.

It will include restaurants, cafes, skybars and all-day dining, alongside conference and event facilities catering to business functions, community groups and private events.

At ground level, more than 1,600 sqm of shops and cafes will open onto the surrounding streets and landscaped areas.

Almost an acre of gardens designed by Land and Form Studios will run through the precinct, incorporating pathways, seating, barbecue areas and children's play spaces.

[smartcode_project:default project_id=152737 project_image_fid=377680]

Reve Group's Romio Georges said creating an active ground plane had been central to the planning of Nova Rêve.

"There are gardens with pathways, barbecues, seating and play areas, shops and cafes opening onto the street, and a hotel with restaurants and a skybar that anyone in Castle Hill can walk into," Georges said.

The project's elevated position on one of Sydney's highest ridgelines will also provide apartments with outlooks toward the Sydney skyline, surrounding parkland and the Blue Mountains.

More than 80 per cent of the apartments will occupy corner positions, with Turner responsible for both the architecture and interiors.

&nbsp;

[smartcode_project_cta:default project_id=152737]

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Larry Schlesinger

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