<html><body>
“Hysteria” about Australian housing being overvalued is spooking institutional investors from investing in much needed new housing, says Rismark economist Christopher Joye.
Joye says contrary to what’s being said by some in the media, housing in Australia is not overvalued.
Delivering a presentation titled “Australia’s Broken Housing Model” at the recent HIA Housing Summit which highlighted a serious undersupply of new homes to meet population growth, he said current housing valuations could be explained by market fundamentals with “dire predictions never remotely coming to pass”.
Joye pointed out that  peak-to-trough fall in housing values during the GFC were less than 5% and provided the following graph to show historical valuations of property.
<img src="/images/stories/2013/larry_uploads/chris_joye_YBR.jpg" width="470" height="301" alt="chris_joye_YBR">
“Since 2003 house prices have tracked disposable incomes…as an asset-class, housing has been a very safe store of wealth,” said Joye.
He said the housing market had significantly outperformed equities and bonds and the current market cycle should be investment-friendly.
“We should be seeing a surge in new supply,” said Joye, but instead “institutional capital has certainly been ‘spooked’ by housing hysteria”.
Joye highlighted that Australia has a population planning crisis and equally a serious housing/infrastructure crisis.
“Australia needs to build seven million new homes in next 37 years to accommodate 13.7 million extra people by 2050.
“This equates to around 200,000 new homes per year, but since 2000 only 156,000 new dwellings have been approved on average per annum."
To address this chronic undersupply of new homes, Joye focused on property taxes.
“Housing is one of the most heavily taxed sectors of the Australian economy, both in absolute and relative terms,” he said, contributing 12% of total govt tax revenue and 45% of total state/local govt revenue.
New housing, he said adds 1.2% of value to the economy; but accounts for 2.8% of total government tax revenues.
According to Joye, tax reform could drive a 30% to 40% affordability gain.
“We need to work out how to more equitably redistribute the national tax/infrastructure burden,” he says, pointing to guidance in the Henry Review including:
<ul>
<li>Reform (land) taxes that discourage institutional capital</li>
<li>Replace inefficient transaction taxes with immobile taxes</li>
<li>Relax zoning restrictions/allow higher densities</li>
<li>Speed up approval decisions through State govt direction</li>
<li>Overcomes NIMBY (not in my bank yard) conflicts that plague councils</li>
</ul>
Furthermore, he said an obvious savings would be to convert first-home owner grant into an interest-free loan due on sale, which would save  around $1 billion per annum.
</body></html>

lschlesinger-FZcF9M3vE6

Australian housing is not overvalued but “dire predictions” spooking new housing investors: Christopher Joye

<html><body>
Borrowers who don’t have a 20% deposit will be forced to pay higher lenders mortgage insurance (LMI) premiums following the two dominant providers – Genworth and QBE LMI – both increasing their premiums in the last 12 months. 
This is despite Australia having among the lowest mortgage default rates in the world. 
Fitch reported that mortgage delinquencies rose from 1.57% in the December 2011 quarter to 1.6% in the first quarter of 2012 – equating to about $35 million worth of loans turning bad. 
LMI is a one-off premium that protects lenders if a borrower defaults on their home loan - if the property sells at a loss, the lender can make a claim against its LMI provider for the shortfall. 
LMI can added thousands of dollars to the cost of buying a home and is particularly an issue for first-home buyers given the 20% deposit requirement. 
Calculations using the Genworth LMI premium estimator show that a first-home buyer borrowing 95% on a house valued at $500,000 (so a $25,000 deposit) would be required to pay an LMI premium of close to $16,000 on a 30 year variable-rate loan. 
A 10% deposit would reduce the premium to just under $8,000. 
A further issue is a lack of portability – if borrowers refinance with a new lenders and they still don’t have a 20% deposit, LMI must be paid again. 
Mortgage broker and director of Investors Choice Mortgages, Jane Slack-Smith, says she would expect LMI premiums to increase if there was an increase in delinquent loans “however it is not something I have seen in my business and not something that I have heard either LMI provider discuss in their updates”. 
Slack-Smith suggests that with interest rates so low, potentially the LMI providers are expecting issues for today’s buyer in the future when rates return to the long term norm of around 7.5% - “a way of hedging the future risk”. 
QBE LMI chief executive Jenny Boddington told Property Observer it increased base premiums on its core LMI products as of July 1 this year.
"We regularly review our pricing to ensure stable and reliable provision of our lenders’ mortgage insurance across the economic cycles,” she says.
Boddington says changes to premiums in recent years have mainly been driven by increased regulatory capital requirements, continuing subdued returns on our investment portfolio and slight increases in claims.
A spokesperson for Genworth confirmed that premiums have increased in the Australian market over the past twelve months.
“As a prudent insurance business, Genworth regularly reviews all elements associated with our product offering.
“This review takes into consideration the current market environment and the costs associated with providing our product and service delivery, including the cost of capital, portfolio performance and changing investment yields.
“Each individual LMI premium is calculated on the basis of a wide range of factors related to the size of the borrower’s deposit, the loan purpose, and the property. As such, pricing changes are based on a detailed analysis of each risk factor.”
Updates sent to brokers by lenders confirm the increases as well as changes to some products and offerings. 
An email sent to mortgage brokers by the Commonwealth Bank’ in June tells them that LMI will increase for “home/investment home loan and line of credit applications created from Sunday 2 June 2013”. 
“We are making these changes in line with pricing changes from our preferred LMI provider, Genworth,” says the Commonwealth Bank’s head of third party banking Kathy Cummings. 
An email sent to brokers by Suncorp says QBE LMI will increase base premium on three of its products - “lmiHOME™, lmiINVEST™ and lmiFIRST HOME™”. 
It’s not all bad news.
The Suncorp note also says QBE has of July 1 extended the eligibility criteria for its lmiFIRST HOME product - a discounted lenders mortgage insurance offering designed for first home buyers - to individuals who are purchasing or building a residential property for owner-occupation and who also qualify for the first-home owners grant and FHB stamp duty concessions.
The move is presumably to take in those FHBs who have qualified for the bigger state grants now available for new home purchases.
</body></html>

More pain for first-home buyers as Genworth and QBE LMI push up mortgage insurance premiums

<html><body>
Solid interest remains to lease high quality industrial facilities aligned to major road networks and port infrastructure, says Dexus head of office and industrial, Kevin George.
The assessment of industrial leasing demand was made as the property group released an update on recent leasing activity within the $2.5 billion Dexus-managed industrial portfolio.
“Our leasing activity in recent months has been focused on established markets with existing and new tenants.
“While Australian industrial leasing markets appear to have paused in terms of the strength in demand, solid interest remains for high quality facilities aligned to major road networks and port infrastructure,” says George.
Key recent leasing achievements include a 10 year lease over 10,605 square metres Garigal Road, Belrose, commencing 1 January 2014, considered a "significant result considering the difficult conditions in the Sydney north shore industrial market".
Other recent deals include:
<ul>
<li>At Knoxfield Industrial Estate terms were agreed with Toll Transport to extend its lease over 36,123 square metres until July 2015</li>
<li>At Axxess Corporate Park, Melbourne Australian Postal Corporation exercised its option for a fiveyear extension over 4,354 square metres commencing September 2013. This resulted in a total of 9,911 square metres being leased at this property across 13 transactions over the three months to 30 June 2013</li>
<li>At 10-16 South Street, Rydalmere lease terms were agreed with two tenants totalling 8,360 square metres, including Payless Shoes occupying 5,294 square metres for 10 years, Deluxe Wood occupying 1,498 square metres for 4.4 years and Renz Australia occupying 1,568 square metres for four years. This leasing activity results in the occupancy for this property increasing to 93.1% and a WALE improving to 4.1 years</li>
<li>At Quarry at Greystanes Wilson and Bradley signed a five-year lease over 3,976 square metres at 3 Basalt Road and leveraging on DEXUS’s long-term relationship with the Wesfarmers Group, Bunnings was secured for a one year term over 12,490 square metres at 2-6 Basalt Road. This leasing activity has resulted in 100% occupancy across all competed developments at Quarry at Greystanes, which comprises over 113,000 square metres</li>
<li>At 12 Frederick Street, St Leonards two existing tenants have renewed their leases. Australian Postal Corporation at Unit 9 has extended its term by three years over 1,914 square metres and Metal Manufacturers at Unit C has extended its term for five years across 1,304 square metres</li>
</ul>
“Industrial tenant demand has been driven mainly by logistic providers benefiting from companies outsourcing their supply chains, as well as major retailers as they continue to consolidate their multiple warehouses," says Mark Cuddy, regional general manager of office and industrial. “The recent leasing achievements demonstrate our capabilities to actively manage the industrial portfolio, build on existing tenant relationships and improve occupancy.” 
</body></html>

“Solid” leasing interest for high quality industrial property: Dexus

<html><body>
The recovery in the new building sector slipped in the March quarter.
The total number of dwelling units commenced fell 5.5% to 38,702 dwellings in the March quarter following a rise of 4.1% in the December quarter, according to new ABS figures.
Construction of new private sector houses fell 3% to 22,343 commencements while unit commencements fell 9.5% to 14,778 dwellings.
However both are up on the same quarter by 4.6% for houses and 21.3% for units.
On a dollar value basis, the seasonally adjusted estimate of new residential building work done fell 0.6% to $10.275 billion while unit construction work fell 0.1% to $3.769 billion.
</body></html>

New dwelling commencements fell 5.5% in March quarter: ABS

<html><body>
The banking sector has hit back at claims by building societies and credit unions that they offer significantly higher variable mortgage rates.
A campaign by the Customer Owned Banking Association claims that the average standard variable rate for customer owned banking institutions is 5.75%, which is 0.42% lower than the major banks.
This, it says, will save home loan customers around $64 a month or $19,220 over the life of a $250,000 loan.
In response, Australians Bankers’ Association (ABA) chief executive Steven Munchenberg said very few people pay the advertised standard variable rate, with most bank customers paying less.
In a blog post, he quoted ABA research showing that when mortgage discounts are factored in, bank customers pay on average a variable rate of 5.59% below the 5.62% offered by building societies and credit unions once their discounts are factored in.
This was based on the ABA analysing the full range of actual advertised rates for 518 variable home loan products offered by banks and others to customers, based on Canstar’s data for June 2013.
“The results suggest there is very little difference between banks and CUBS (credit unions and building societies,” writes Munchenberg.
“Of course, the CUBS draw comparison with just the major banks, but even here, the major banks’ average home loan interest rate, including their sub-brands, is 5.59%, below the average for the CUBS.”
He also points out that the analysis shows that one credit union has the lowest rate on offer, at 4.29% (without naming the institution) but that another unnamed credit union has the highest rate, at 7.45%.
“The message here is a simple one.  There’s no black and white ‘banks bad, credit unions good’.
“There are, however, more than 500 different home loan products from over 100 different lenders.
“If a customer feels they are paying too much, or they want a better deal, they should talk to their bank or get onto one of the comparison websites, like Canstar (www.canstar.com.au), and shop around. 
“You can also negotiate with a lender to see if they’ll offer you a discounted rate.  The best deal might be with a bank, a credit union, a building society or some other lender, but look at the actual rates, not sweeping generalisations,” he says.
</body></html>

Mortgage wars: Banks claim lower discounted rates than building societies and credit unions 

<html><body>
The expanding Zarraffa’s Coffee chain has signed a 10 year lease for a new coffee shop at 175 Ferry Road in the recently refurbished Southport Park Village in Southport on the Gold Coast.
Industry sources indicated the rental was approximately $675 square metres gross for the 160 square metre site which includes external seating and a drive through area.
The deal, which includes two, five-year renewal options, was negotiated by CBRE’s retail nanager Kevin Ramsey.
The new store is located on a transport corridor, directly across from The Southport School, at 175 Ferry Road.
Zarraffa’s Coffee founder and CEO, Kenton Campbell selected the area specifically due to its strategic location and accessibility. 
“Site selection is critical to the success of our drive thru operations and we seek to ensure all stores are positioned in accessible locations that enjoy close proximity to both residential areas and major thoroughfares,” he says. 
Zarrafa’s operates an existing Ferry Rd store, opened in 2009 located on the corner of Cotlew Street and Ferry Road. It will continue to operate in tandem with the new site to service commuters and local residents in the vicinity. 
Ramsey says<a href="https://www.realcommercial.com.au/property-retail-qld-southport-500493627" target="_blank"> Southport Park Village’</a>s location - close to a number of schools and exposure to thousands of vehicles has driven significant tenant interest. 
He says negotiations have commenced with a dental clinic, gym and beauty services tenant.
Tenancies at Southport Park Village range in size from 35 square metres to over 250 square metres while rents range from $500 to $675 per square metre for retail and $300 to $400 per square metre for commercial office tenancies.
Zarraffa's has around 50 stores across South East Queensland.
</body></html>

Zarraffa’s Coffee signs 10 year Gold Coast lease

<html><body>
Investors with around $400,000 to spend may be able to acquire a Bankstown strata office with the potential to deliver a return in excess of 7%.
The 103 square metre office is in the NAB Building at 410 Chapel Road in the heart of the Bankstown CBD.
It is listed for sale at $399,000 plus GST having previously been advertised at $428,000 in September last year - a discount of around 7%.
It is for sale as vacant possession.
It has been listed for rent at $29,000 per annum net, which equates to a yield of around 7.2%.
Bankstown is around 20 kilometres south west of Sydney and part of the Greater Western Sydney growth corridor.
It is being sold by <a target="_parent" href="https://commercial.net.au/listing/details.aspx?listingID=1974926">Chris Wade of the Commercial Property Group.</a>
It includes a reception area, boardroom, four offices and server room plus self contained kitchen facilities and two basement car spaces with direct lift access.
</body></html>

Reduced Bankstown office offers 7% plus yield potential

<html><body>
The Pace Development Group, which is building the Evo apartment project in Parkville, have instructed Gadens Lawyers to act on its behalf, in order to seek further details from Linking Melbourne Authority with respect to how the East West Link may affect the development.
Pace is due meet with Linking Melbourne Authority tomorrow to discuss the impact of the East West Link.
"At this stage we are unable to comment with any certainty given that the East West Link is at a preliminary stage," said a spokesperson for Pace.
To our knowledge, funding has not been provided to complete the delivery of the project and prioritization of this project does not appear to be high in the recently released National Infrastructure Plan (June 2013) prepared by Infrastructure Australia."
An East West Link video shows Evo apartments completely surrounded by highways with Linking Melbourne Authority chief executive Ken Mathers telling The Age the tollway would probably rise to the level of the fifth floor of the development.
<img src="/images/stories/2013/larry_uploads/evo_east_west_link.jpg" width="470" height="211" alt="evo_east_west_link">
At the same time Australand has confirmed that it does not anticipate any unexpected impact on its Jardin Parkville apartment development following the release of plans for stage one of the Melbourne East West Link – the six kilometre roadway and tunnel which will link the Eastern Freeway to CityLink - with a number of construction sites earmarked for the suburb.
An article in the Melbourne Leader published earlier this week, which ran with the headline "Residents and developers look for certainty over East West toll road" included a reference that Australand state manager of residential properties ­Robert Pradolin suggested that "he did not know if the government would acquire Australand property".
<h1></h1>
Australand's publicists were unable to shed any light on the suggestion about possible government acquisition of Australand property when contacted by Property Observer.
There has been no statement issued by Australand, but Robert Pradolin has since contacted Property Observer to confirm that the project will not be impacted in any unexpected way.
<a target="_blank" href="https://www.propertyobserver.com.au/news/monday-july-1-jardin-parkville-the-latest-to-launch-in-the-parkville-master-planned-community/2013062862793">Jardin Parkville at Cade Way </a>is the latest stage of the apartment precinct of the master-planned community within Parkville Garden.
He repeated comments to the Melbourne Leader that the East West link would actually improve transport options.
"It will mean easy access to both northern and southern suburbs."
But, another apartment project that will be seriously impacted is the soon to be completed Evo Apartments featuring 175 apartments over seven levels developed by the Pace Development Group at 107-115 Manningham Street (pictured above).
It is directly across from the Ross Straw Field, which will be occupied for construction of the link and tunnel.
{yoogallery src=[images/stories/2013/07/july1parkville]}
Both developments are being promoted as offering close proximity to Royal Park, part of which will become a freeway connecting City Link from the south to the new tunnel and the Eastern Freeway.
“An Evo lifestyle is having Melbourne’s largest area of open space, Royal Park, beckoning from the front door – where parklands, reserves and tree-lined streets offer the ideal environment for relaxation and rejuvenation,” says the Evo marketing website.
As part of the development of the 18 kilometre cross-city road connection extending across Melbourne from the Eastern Freeway to the Western Ring Road, tunnel boring is expected to begin in Royal Park near the Up?eld railway line, which will also be established as place for the storage of materials and equipment and construction personnel parking.
Ross Straw Field would also be occupied for construction while project maps prepared by Linking Melbourne Authority show that Elliot Avenue, in the heart of Royal Park will provide an “important access point to and from the tunnels”.
“The entry and exit points remain below ground level until they meet with the existing road surface, minimising the footprint on Royal Park,” the project map notes.
While upset residents in established homes caught up in the path of the new tunnel have been promised they will receive compensation for their homes at market value as well as have their stamp duty and legal fees paid, those who bought off the plan in Evo will receive no compensation from the Victorian government for any loss in value or the inconvenience caused by construction works, noise, disruption and any loss of park-promised lifestyle.
Victorian premier Denis Napthine says the state government is committed to delivering the project sustainably, “which will mean protecting and restoring any parkland affected by the project”.
“A lot of work has been undertaken already, including geotechnical drilling, flora and fauna studies and extensive ongoing community consultation to inform the best design for the project,” he says.
The design identifies 118 properties that may be directly affected by surface construction that is required for the project, with these numbers subject to change as the project develops.
This includes 92 residential and 26 commercial properties.
“We recognise that this is a very sensitive process and we have made every effort to contact residents before publicly releasing the detailed design. We will be supporting landowners every step of the way by providing them with advice relating to their individual circumstances,” said Victorian transport minister Terry Mulder.
“Should a property be required for construction of the project, the acquisition and compensation process provides a fair price, based on market value.
“Compensation will also include claims for reasonable costs such as stamp duty, registrations fees and conveyancing costs incurred in purchasing a replacement property, up to the value of the acquired property.”
An earlier version of the story incorrectly suggested that there may have been doubt over Australand's Jardin Parkville apartment development proceeding.
 
</body></html>

East-West link casts no shadow over Australand's Parkville project progress but Evo buyers caught in the middle

<html><body>
CBD office vacancy rates continue to rise with the greater availability of space putting pressure on yields.
Jones Lang LaSalle recorded negative net absorption of -191,900 square metres in the June quarter and a rise in the national CBD office market vacancy rate to 10.9%.
The graph below also shows the impact of vacant sub-leased space on the rising vacancy rate.
<img src="/images/stories/2013/larry_uploads/JLL_office_vacancy_rate.jpg" width="470" height="314" alt="JLL_office_vacancy_rate">
Jones Lang LaSalle reports that five of the six CBD office markets are recording double digit vacancy rates as of June 2013.
Brisbane (14.3%), Adelaide (12.7%) and Canberra (11.6%) recorded higher vacancy over the quarter, while Sydney (10.2%) and Melbourne (10.0%) moved above 10% for the first time in the current cycle.
Perth (7.9%) is the only CBD office market now recording vacancy below 10%. 
In line with a rise in vacancies, yields are compressing:
<img src="/images/stories/2013/larry_uploads/JLL_office_vacancy_rate2.jpg" width="470" height="295" alt="JLL_office_vacancy_rate2">
</body></html>

National CBD office vacancy rates rises to 10.9%: Chart of the week

<html><body>
Uncertainty has been cast over the RBA cutting the cash rate on August 6 follows publication of the <a target="_blank" href="https://www.propertyobserver.com.au/residential/gradual-improvement-in-housing-conditions-as-dwelling-prices-rise-rba-july-minutes/2013071663333?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=newsplus">minutes of the July monetary policy meeting</a>, despite three of the four big banks pencilling in a 25 basis point cut next month.
The Australian dollar's depreciation, given added weight in the minutes, is expected to push up inflation and assist trade-exposed non-mining sectors making an August rate cut less likely.
Interest rate futures markets have reduced the probability of a rate cut from around 65% to 50% following the publication of the minutes, and in particurlar the final paragraph which mentions a higher inflation outlook following depreciation of the dollar.
But complicating the picture, the Australian dollar has risen strongly since publication of the minutes yesterday and is currently up more than 1 cent to 92.5 US cents.
HSBC chief economist Paul Bloxham says the currency and the RBA's interest rate outlook are “intertwined”.
"Slower than expected rebalancing may see the need for further policy stimulus from the RBA, but further weakness in the Australian dollar could obviate the need for further cuts," Bloxham says.
The major banks have played down, to an extent, the impact of the Australian dollar with Westpac, the Commonwealth Bank and NAB all pencilling in a rate cut next month.
ANZ is tipping November as the next likely movement down to a cash rate of 2.5%.
The Westpac economics team, led by chief economist Bill Evans, believes that the language being used in the minutes “is more about justifying the decision not to move in July despite further deterioration in the real economy rather than specifically providing guidance for future meetings”.
“The minutes show the exchange rate adjustment was a key factor in the decision and tend to confirm our view that the currency decline made July tactically unattractive for a rate move.
“A more downbeat assessment of domestic economic conditions in the July minutes and weak data releases since the meeting suggest the case for further easing to support demand has been strengthened,” says Westpac.
Westpac expects two further rate cuts – one in the December quarter and one in the March quarter - to take the cash rate to an expected terminal point of 2% in the current easing cycle.
Commonwealth Bank economist John Peters notes that the bias towards a rate cut is “somewhat more muted” than earlier in the year following the slide in the Australian dollar, but says that nothing in the minutes “makes us uncomfortable with our view that another RBA cash rate cut of 0.25% is coming most probably in August, after the second quarter CPI is released on July 24”.
NAB made its case for an August rate cut <a target="_blank" href="/news">last week</a> – bringing forward an earlier November decision after the bank's business conditions survey hit a four-year low.
The only outlier is ANZ with economist Justin Fabo highlighting expectations that a lower Australian dollar will stay the RBA’s hand with it appearing “relatively content to wait at least a little longer to gauge the effect of accommodative financial conditions on economic activity.
“Importantly, the RBA appears confident that the Australian dollar depreciation will be sustained and that the currency will fall further over time (but this is expected to be associated with lower terms of trade and weaker mining investment which will drag on growth),” he says.
“The minutes noted that the effect of lower interest rates was “apparent across a range of indicators” – mainly associated with the housing market to date – and that this process had further to run.
“Hence, even a low second quarter core CPI print of 0.3% to 0.4% quarter-on-quarter on 25 July is unlikely to be enough to tip the Bank into easing policy in early August.
“That said, near-term rates decisions are likely to be keenly debated as there appears to be little risk from easing policy modestly further.
“Indeed, it might help nudge the Australian dollar a little lower which would be beneficial in our view and seemingly from the RBA’s view.
“The (unknown) timing of the federal election complicates the outlook for monetary policy as the Bank will want to steer clear of the election (and can do so because it is not clearly “behind the curve” in terms of its policy settings).
“Overall, we maintain the view that the cash rate is still likely to be lowered at least modestly further later this year (we have a 25 basis point cut pencilled in for November)," says Fabo.
</body></html>

Uncertainty over August rate cut despite NAB, Westpac and Commonwealth Bank confidence

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.

Joel Robinson

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

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

Nova Rêve arrives as Reve Group bets on Castle Hill's next growth phase

A collection of just 25 large-format apartments and penthouses overlooking Goodwin Park is entering the Coolangatta market, with <a href="https://www.apartments.com.au/new-apartments/marea-residences-coolangatta-27-27a-dixon-street-coolangatta-qld-4225">Maréa Residences</a> combining a low-density, residential-only approach with uninterrupted park and Pacific Ocean outlooks.

Located at 27 Dixon Street, Maréa comprises three and four-bedroom residences alongside a limited number of dual-level penthouses, with the project positioned between Goodwin Park and <a href="https://www.apartments.com.au/developments/coolangatta-qld-4225">Coolangatta</a>’s coastal precinct.

Construction has commenced, with completion currently estimated for late 2027. Three-bedroom residences are priced from $1.8 million.

[smartcode_project:default project_id=150999 project_image_fid=374005]

The project has been designed around its northern outlook across the park, with the building’s architecture, landscaping and material palette intended to establish a connection with the neighbouring green space. The residences have been configured to maximise natural light and views across Goodwin Park towards the ocean.

Inside, the material palette incorporates timber, stone and brushed brass, complemented by curved detailing and ambient lighting. Kitchens and bathrooms carry the same natural material approach, while residences also include basement parking, storage and lift access.

Maréa’s penthouses are arranged over two levels and include private pools, adding another layer to the project’s focus on larger-format apartment living. Across the development, residences are configured with three or four bedrooms rather than the broader mix of smaller apartment types commonly found in larger projects.

[smartcode_project:default project_id=150999 project_image_fid=374010]

Resident amenity is concentrated at rooftop level, where landscaped entertaining terraces and pools take advantage of elevated views across Coolangatta and the Pacific Ocean.

The project has so far been particularly well received by local owner-occupiers and downsizers, according to Urban Activation Property Sales and Marketing Director Matt George, with the residential-only format, construction quality and northern park outlook among the features resonating with purchasers.

“The uninterrupted northern aspect overlooking Goodwin Park has been a key point of difference, with buyers attracted to the sense of serenity and open space the park provides, while still enjoying easy access to the ocean and being within walking distance of the lifestyle and amenities Coolangatta has to offer,” George said.

[smartcode_project:default project_id=150999 project_image_fid=374002]

“The combination of high-quality construction, a residential-only building, park outlook and proximity to the beach has resonated strongly with the local downsizer market.”

The Dixon Street address is within walking distance of Coolangatta Beach and the broader southern Gold Coast coastline, including the surf breaks at Snapper Rocks and Kirra. Coolangatta’s cafés, restaurants and retail are nearby, while Gold Coast Airport is also within close proximity.

[smartcode_project_cta:default project_id=150999]

Maréa Residences brings parkside apartments to Coolangatta

Melbourne developer PDG has secured Victorian Government approval for its $1.5 billion Southbank development <a href="https://www.apartments.com.au/new-apartments/the-one-1-queens-bridge-street-southbank-vic-3006">The One</a>, clearing the way for the long-dormant riverfront site opposite Crown to finally be developed.

The Minister for Planning has approved the project at 1-29 Queens Bridge Street, with the Department of Transport and Planning issuing the planning permit following its assessment.

The approval will allow PDG to develop the prominent 5,059 sqm site with a major mixed-use tower comprising premium apartments, including branded residences, a luxury hotel and boutique office space.

PDG acquired the site in late 2024, with its position directly opposite Crown's main entrance and near Melbourne's Arts Precinct making it one of Southbank's most significant remaining development opportunities.

<img alt="PDG" data-entity-type="file" data-entity-uuid="3933013e-6332-4386-b9be-089df05caf17" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.22%E2%80%AFAM.png?VersionId=sITIgBqDL0N3VNSMwWEmF5UA.uvcsRyu" />

Designed by COX in collaboration with ODO and PDG, the tower's architecture draws on the movement of the Yarra River, with six vertical pleats running the height of the sculpted facade.

The project will also see the heritage-listed Queens Bridge Hotel restored and incorporated into the development&nbsp;with new hospitality and public uses, including a rooftop venue.

A significant component of The One will be its residential amenity.

More than 5,000 sqm of resident facilities will be delivered across a single level, making it one of the largest consolidated residential amenity offerings proposed in an Australian apartment development.

The planning approval also incorporates a major upgrade of Queensbridge Square, which PDG will deliver in partnership with the City of Melbourne.

<img alt="PDG" data-entity-type="file" data-entity-uuid="73167fcd-1031-4b6f-a408-a064cfe45ed1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.17%E2%80%AFAM.png?VersionId=Pf1AEWxw6SNmBqR0zQW5lyEze.MtxgFp" />

The existing square will be revitalised as a new civic and pedestrian space along the Yarra River, strengthening the connection between the project, Southbank and the riverfront.

PDG Founder and Managing Director Vince Giuliano said the approval represented a major milestone for a site which has remained largely underutilised for more than 15 years.

“This is the most significant Planning Permit approval Melbourne has seen in recent years,” Giuliano said.

“For more than 15 years, this site has remained underutilised. This approval enables us to deliver a project that will contribute meaningfully to the revitalisation of Southbank, restore and reactivate an important heritage building, and create a new civic and hospitality destination for Melbourne.”

The latest approval follows an earlier planning permit issued by the City of Melbourne covering demolition works across part of the site at 9-29 Queens Bridge Street. Those demolition and early works are already underway.

PDG has also started generating early interest in the residential component from owner-occupiers ahead of a planned public launch in early 2027.

PDG secures approval for $1.5bn Southbank apartment development, The One

Local developer Harridan is seeking to turn its Woolloongabba apartment project into the first stage of a broader transformation of Burke Street, using a new 16-storey mixed-use building to establish a greener pedestrian connection toward the rapidly evolving Boggo Road transport and knowledge precinct.

The South East Queensland developer has filed plans for 154 apartments on the <a href="https://www.apartments.com.au/new-apartments/4-burke-street-woolloongabba-qld-4102">southern side of Burke Street</a>, where its proposal has been designed alongside a wider vision by LatStudios for the street.

That vision positions the southern side of Burke Street for buildings of 15 storeys and above, while envisaging lower-rise development of up to five storeys on the northern side to transition into Woolloongabba's existing character housing. It also proposes wider pedestrian verges, deep planting, new street trees and upgrades to the pedestrian approach to Boggo Road Station.

The Harridan development itself has been designed by Brisbane-based Arqus Design and will comprise 154 apartments across 16 storeys. The mix is weighted heavily toward two-bedroom apartments, with 121 proposed alongside 10 one-bedroom and 23 three-bedroom residences. There will typically be around 14 units per floor.

A lower-ground car park and three podium levels will accommodate 156 resident parking spaces, along with visitor and commercial parking. There will also be 154 resident bicycle spaces and 40 visitor bicycle parks.

&nbsp;

Harridan is a family-owned developer and part of the Holmwood Highgate Group, with more than three decades of development activity across South East Queensland. Its portfolio spans residential, commercial and industrial property, with current residential projects including Riverbank on Byron in Bulimba, Esperance Residences in Carina and The Precinct at Kinross Road in Thornlands.

Wooloongabba has been popular for apartment developers, particularly since the announcement of the 2032 Summer Olympics games in Brisbane.

While there have been a lot of development applications, it has failed to materialize into real supply.&nbsp;

Sarazin has been the major player in the area. They are under construction at Murcia Residences, on the fringe of East Brisbane and Woolloongabba. They have just launched <a href="https://www.apartments.com.au/new-apartments/the-stanley-residences-woolloongabba-8-trafalgar-street-woolloongabba-qld-4102">The Stanley Residences</a>, in Woolloongabba on Trafalagar Street. They also have Nuage coming soon on the nearby <a href="https://www.apartments.com.au/new-apartments/nuage-woolloongabba-14-wellington-road-woolloongabba-qld-4102">Wellington Road</a>.

Larry Schlesinger

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News