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A combination of declining rental vacancies and an influx of international workers has caused rents to rise by 14.6% in the inner-Perth market and by a whopping 18.6% in Freemantle as the city’s rental crisis deepens.
In Perth, the median weekly rent for a house has risen to $550 and $500 for an apartment, while in Freemantle a house will cost $593 a week to rent and an apartment $400 per week.
Rents for the September quarter are up 10.5% in Cockburn in Perth’s southern suburbs and 8.7% in Stirling West in the city’s northern suburbs.
Rents have risen by 7.9% in the western suburbs, where the average weekly rent for a house in Cottesloe, Mosman Park and Claremont is now $750 a week, compared with $695 three months ago.
Across the Perth metropolitan region, rents have risen 4.2% for the quarter, with median house and multi-residential rents increasing by $10 per week for the quarter, taking the median house rent to $400 per week and the median unit rent to $380 per week.
“This latest increase in rents will no doubt place further pressure on existing household budgets that are already under stress from across the board increases in living costs, including with groceries, gas and electricity,” says David Airey, president of the Real Estate Institute of Western Australia.
<table cellpadding="0" cellspacing="0" border="0" style="width: 352px;"><tbody>
<tr>
<td width="161">
Q3 2011
</td>
<td colspan="2" width="64">
House Median
</td>
<td width="64">
Unit Median
</td>
<td width="64">
Total Median
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="161">
Perth Metro Region
</td>
<td valign="bottom" colspan="2" nowrap width="64">
$400
</td>
<td valign="bottom" nowrap width="64">
$380
</td>
<td valign="bottom" nowrap width="64">
$395
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="161">
Armadale/Serpentine
</td>
<td valign="bottom" colspan="2" nowrap width="64">
$345
</td>
<td valign="bottom" nowrap width="64">
$310
</td>
<td valign="bottom" nowrap width="64">
$330
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="161">
Bassendean/Bayswater
</td>
<td valign="bottom" colspan="2" nowrap width="64">
$390
</td>
<td valign="bottom" nowrap width="64">
$350
</td>
<td valign="bottom" nowrap width="64">
$375
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="161">
Belmont
</td>
<td valign="bottom" colspan="2" nowrap width="64">
$380
</td>
<td valign="bottom" nowrap width="64">
$400
</td>
<td valign="bottom" nowrap width="64">
$390
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="161">
Canning
</td>
<td valign="bottom" colspan="2" nowrap width="64">
$400
</td>
<td valign="bottom" nowrap width="64">
$360
</td>
<td valign="bottom" nowrap width="64">
$380
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="161">
Cockburn
</td>
<td valign="bottom" colspan="2" nowrap width="64">
$420
</td>
<td valign="bottom" nowrap width="64">
$375
</td>
<td valign="bottom" nowrap width="64">
$400
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="161">
Fremantle
</td>
<td valign="bottom" colspan="2" nowrap width="64">
$593
</td>
<td valign="bottom" nowrap width="64">
$400
</td>
<td valign="bottom" nowrap width="64">
$475
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="161">
Gosnells
</td>
<td valign="bottom" colspan="2" nowrap width="64">
$385
</td>
<td valign="bottom" nowrap width="64">
$320
</td>
<td valign="bottom" nowrap width="64">
$370
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="161">
Hills
</td>
<td valign="bottom" colspan="2" nowrap width="64">
$400
</td>
<td valign="bottom" nowrap width="64">
$320
</td>
<td valign="bottom" nowrap width="64">
$395
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="161">
Joondalup North
</td>
<td valign="bottom" colspan="2" nowrap width="64">
$430
</td>
<td valign="bottom" nowrap width="64">
$380
</td>
<td valign="bottom" nowrap width="64">
$400
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="161">
Joondalup South
</td>
<td valign="bottom" colspan="2" nowrap width="64">
$450
</td>
<td valign="bottom" nowrap width="64">
$450
</td>
<td valign="bottom" nowrap width="64">
$450
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="161">
Melville
</td>
<td valign="bottom" colspan="2" nowrap width="64">
$470
</td>
<td valign="bottom" nowrap width="64">
$370
</td>
<td valign="bottom" nowrap width="64">
$433
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="161">
Perth City
</td>
<td valign="bottom" colspan="2" nowrap width="64">
$550
</td>
<td valign="bottom" nowrap width="64">
$500
</td>
<td valign="bottom" nowrap width="64">
$500
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="161">
Rockingham/Kwinana
</td>
<td valign="bottom" colspan="2" nowrap width="64">
$360
</td>
<td valign="bottom" nowrap width="64">
$300
</td>
<td valign="bottom" nowrap width="64">
$350
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="161">
South Perth/Victoria Park
</td>
<td valign="bottom" colspan="2" nowrap width="64">
$450
</td>
<td valign="bottom" nowrap width="64">
$380
</td>
<td valign="bottom" nowrap width="64">
$400
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="161">
Stirling East
</td>
<td valign="bottom" colspan="2" nowrap width="64">
$370
</td>
<td valign="bottom" nowrap width="64">
$350
</td>
<td valign="bottom" nowrap width="64">
$360
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="161">
Stirling West
</td>
<td valign="bottom" colspan="2" nowrap width="64">
$500
</td>
<td valign="bottom" nowrap width="64">
$388
</td>
<td valign="bottom" nowrap width="64">
$440
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="161">
Swan
</td>
<td valign="bottom" colspan="2" nowrap width="64">
$380
</td>
<td valign="bottom" nowrap width="64">
$350
</td>
<td valign="bottom" nowrap width="64">
$370
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="161">
Vincent/Stirling SE
</td>
<td valign="bottom" colspan="2" nowrap width="64">
$500
</td>
<td valign="bottom" nowrap width="64">
$360
</td>
<td valign="bottom" nowrap width="64">
$405
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="161">
Wanneroo North East
</td>
<td valign="bottom" colspan="2" nowrap width="64">
$420
</td>
<td valign="bottom" nowrap width="64">
$380
</td>
<td valign="bottom" nowrap width="64">
$410
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="161">
Wanneroo North West
</td>
<td valign="bottom" colspan="2" nowrap width="64">
$380
</td>
<td valign="bottom" nowrap width="64">
$340
</td>
<td valign="bottom" nowrap width="64">
$375
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="161">
Wanneroo South
</td>
<td valign="bottom" colspan="2" nowrap width="64">
$415
</td>
<td valign="bottom" nowrap width="64">
$353
</td>
<td valign="bottom" nowrap width="64">
$400
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="161">
Western Suburbs
</td>
<td valign="bottom" colspan="2" nowrap width="64">
$750
</td>
<td valign="bottom" nowrap width="64">
$400
</td>
<td valign="bottom" nowrap width="64">
$500
</td>
</tr>
</tbody></table>
Source: REIWA
As point of comparison, Sydney, Brisbane and Melbourne rents were unchanged over the September quarter according to research Australian Property Monitors.
A <a href="https://www.propertyobserver.com.au/landlords/perth-vacancies-tighten-for-fifth-month-in-a-row-sqm-research/2011112252474?source=flicker1" target="_blank">report put out today by SQM Research</a> reveals that the vacancy rate in Perth fell for the fifth straight month in October, tightening by 0.2% from 0.9% to 0.7%, with the number of rentals falling from 1,436 to 1,119.
The situation has deteriorated so much that tenants are offering $20 to $30 above the asking price to secure a lease or putting up with living in accommodation that Burswood property manager Hazel MacDonald told the Sydney Morning Herald she would not put her dog in.
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lschlesinger-FZcF9M3vE6

Perth rents soar as vacancies tighten further

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Investors in NSW and Queensland will have the opportunity to acquire more than 10,000 properties that qualify for the government’s national rental affordability scheme (NRAS) following the launch of the latest round of the program.
The two states have received more than half of the 17,000 incentives including for properties to be built in areas impacted by floods.
According to the latest government records, 54 applications have been approved to build a total of 4,800 dwellings in NSW, taking its total since the inception of the scheme to 6,800.
The most successful NSW applicant is property developer Frasers, which has been granted a licence to build 828 dwellings.
In Queensland, 62 applicants have been approved to build a total of 5,700 dwellings with the not-for-profit Queensland Affordable Housing Consortium granted a licence to build over 1,300 dwellings.
The state has been the biggest beneficiary of the scheme to date with 11,200 properties qualifying for government incentives.
Applications to build 2,300 dwelling have been approved in Western Australia (taking the total to 5,000) and over 1,000 in Tasmania (a total of 1,600). Around 900 qualifying homes will be built in Victoria taking the total to 6,900.
Ruby Janssen from Onyx, one of the largest sellers of NRAS-qualifying properties, says the schemes appeals to investors who want to invest in a positive cash flow property but still receive the negative gearing benefits.
“An NRAS property is really good for a first time investor as it does not put strain on their cash flow.
The scheme offers annual incentives for 10 years with the two key elements being a commonwealth government incentive currently of $7,143 per dwelling per year as a refundable tax offset or payment and a state or territory government incentive currently of $2,381 per dwelling per year in direct or in kind financial support.
According to Janssen, owners of NRAS properties receive around $60 less per week in week, but are compensated by receiving $183 dollars a week in tax-free rental income.
Realestate.com.au is advertising off-the-plan NRAS properties starting from just over $220,000 for a studio apartment in the Newstead on the Brisbane River.
An apartment block featuring eight two-bedroom apartments in Deception Bay, Queensland is asking $2.12 million.
The government has committed to support 50,000 NRAS properties, with up to 35,000 dwellings available to rent across the country by June 30 2014, and the remaining 15,000 available by June 30 2016.
To date 4,178 privately owned dwellings are tenanted or available for rent across the country under the scheme.
A couple with three children earning up to $104,913 per annum are eligible to rent an NRAS dwelling, while the lower limit starting at around $60,000 for a two-adult household.
The privately owned developments range from studio apartments to large family homes, and are located in areas identified by state and territory government partners where affordable rental accommodation is most needed, particularly in areas with employment, transport, schools and other services available nearby.
The scheme applies to newly built properties which are then tenanted to low and middle income earners.
Properties must be leased at 20% below the market rate.
According to real estate groups specialising in NRAS properties, the major banks are starting to get on board with financing the purchase of qualifying properties.
Westpac and NAB already providing financing for the scheme while <a target="_blank" href="/news">ANZ told Property Observer in September it was looking at ways to support government initiatives to house low-income earners.</a>
 
 
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National Rental Affordability Scheme opportunities for NSW and Queensland investors

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Major shareholders in Centro Retail Trust have backed a restructuring proposal for the Centro Properties Group.
Proxy votes submitted at nine meetings in Melbourne today voted in favour of the scheme with approvals of between 85% and 96%, the Australian Financial Review reported.
Investors in other Centro offshoots still need to vote on the proposal, but winning the support of Centro Retail Trust investors is considered crucial to the restructure going ahead.
The AFR notes, however, that some investors such as JP Morgan are still unhappy with the proposal and could vote it down.
Under the restructuring proposal Centro Properties Group will be wound up, with the remaining Australian assets held by subsidiary Centro Retail Trust and other unlisted Centro funds amalgamated into a new listed property trust, Centro Retail Australia.
The decision by institutional investors and hedge funds to back the <a href="https://www.propertyobserver.com.au/commercial/centro-shares-up-after-revised-restructure-proposal/2011112152461" target="_blank">proposal follows the Centro Retail Trust sweetening the deal</a> by offering investors a 10% improvement in their stake in Centro Retail Australia.
Centro faces a December 15 deadline to pay back $3 billion of debt, which it cannot meet under its existing structure. Failure by the board to win approval for the restructure will most likely cause the company to be placed in the hands of external administrators.
 
 
 
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Centro finds support for restructure proposal

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The availability of rental accommodation in Australia’s capital cities remains “excessively tight”, with Perth and Hobart leading the decline in available rentals in October, according to SQM Research. 
The vacancy rate in Perth fell by 0.2 percentage points in October from 0.9% to 0.7%, with the number of rentals falling from 1,436 to 1,119. This was the fifth successive month that the vacancy rate has fallen in Perth. SQM Research director Louis Christopher notes that the Perth suburb of Maylands has a vacancy rate of 0% with just one vacancy. “What this means is that there is only one rental property being advertised online for a period of over three weeks for this postcode,” Christopher says. The Hobart vacancy rate dropped from 2.1% from 1.9% during October, with just 443 rental properties available, according to SQM. The Sydney market also tightened from 1.4% to 1.3% during October, though there are 800 more vacancies than there were a year ago, when the vacancy rate was 1.2%. In terms of raw numbers, Darwin has the fewest number of available rentals at 261, though this is up from 216 in September. Darwin was also the only capital city to experience monthly growth, increasing by 0.2% during the month of October 2011. Nationally, residential vacancies dipped slightly during the month of October, falling from 1.9% to 1.8%, or a total of 45,896 vacancies nationally.
<img src="/images/stories/sqmnov22.gif">
Source: SQM Research
In the over-supplied Melbourne market, vacancies remained at 3%, well above the national average, and up from 2.6% a year ago. 
“On a grand scale we are definitely experiencing an excessively tight market, with only certain pockets of the country suffering an extreme level of vacancies such as Yan Yean South (3,754) in Victoria, which has recorded a vacancy rate of 19.5% for October, almost doubling its amount in vacancies year-on-year,” says Christopher. 
“For the meantime we do not see any light at the end of the tunnel where the rental market is concerned. The trends remain the same with no change in sight.” 
SQM’s calculations of vacancies are based on online rental listings that have been advertised for three weeks or more compared with the total number of established rental properties. 
SQM considers this a superior methodology compared with using a potentially incomplete sample of agency surveys or merely relying on online advertised listings.
 
 
 
 
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Perth vacancies tighten for fifth month in a row: SQM Research

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Investors considering buying in Melbourne should focus on areas where rental demand is strong as the outlook for capital gains over the short term remains weak, according to RP Data national research director Tim Lawless.
Lawless says “[rental] yield maximisation will be the main game for most investors until capital gains start to become apparent again”.
“Most investors should realise that capital gains are not going to be apparent for some time – the market came out of the growth phase around June last year, so we should expect capital gains to be relatively weak over the next year at least,” he writes in The Age.
Besides the potential for rental growth, Lawless says investors should also seek areas “ripe for long-term capital gains”
“Suburbs close to the city that are not reliant on foreign students are likely to be popular, as will be suburbs close to major working nodes and captive rental populations, such as universities and hospitals,” Lawless says.
However, investors will have to search hard to find a Melbourne area where the potential for rental growth is strong.
The city currently has the lowest rental yields of any capital city in Australia, with Melbourne houses returning an average gross rental yield of just 3.8%, with units only slightly better at 4.3% (The combined capital city benchmark is 4.3% for houses and 5% for units, according to RP Data).
Over the past 12 months, the weekly rent on an average Melbourne house increased by just 1.9% to $398 while weekly rents for units increased by just 0.9% to $363, growth well below historical annual rental increases in the Melbourne metro region of 6.5% per year.
When taking inflation into account, it is now cheaper to rent a house or unit in Melbourne than it was a year ago.
According to Lawless, part of the reason for Melbourne’s soft rental market has been an oversupply of housing.
“In the year to September, there were 65% more dwelling approvals in Victoria than in New South Wales, despite the two states having roughly the same level of housing demand as measured by raw population growth.
“The number of land sales in the Melbourne metro region is more than double what was recorded in the Sydney region, once again despite both having similar population growth,” he says.
Lawless says demand for apartment rentals is also being affected by a drop in overseas student numbers, which are well down on the highs of 2008-09.
“According to the Department of Immigration, there were 366,000 student visas lodged in Australia in 2008-09. In 2009-10, 282,000 student visas were lodged – a drop of about 30%,” he says.
 
 
 
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Melbourne investors should look for high rental yields, not capital growth, in the short term: Tim Lawless

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A lack of new industrial space should encourage investment in speculative industrial developments as rents in Australia’s biggest cities continue to rise, according to new research by CBRE.
Sydney ranks the fifth most expensive city in the world to rent industrial space, with Brisbane and Perth also ranking among the top 10.
Adelaide and Melbourne are ranked 17th and 18th respectively. However, while rents in Adelaide decreased over the quarter, Melbourne recorded the biggest increase of any of the main Australian markets at 1.4%.
According to CBRE, the majority of new<a href="https://www.propertyobserver.com.au/commercial/next-year-will-be-good-for-commercial-property-investment/2011112152466" target="_blank"> industrial space</a> is already pre-leased before completion or is purpose-built for industrial tenants.
CBRE’s Global Industrial Rent Index rose by 0.5% quarter-on-quarter in the third quarter and by 1.7% year-on-year, driven primarily by strong occupier activity in Asia Pacific and the stabilisation of rents in Europe, the Middle East, Africa and the US.
According to Ray Torto, global chief economist at CBRE, global industrial rents now reflect 2006 levels primarily due to rental movements in Asia Pacific, which have now surpassed pre-global financial crisis levels.
<img src="/images/stories/cbrenov22.gif">
Source: CBRE Research, exchange rate 30/09/2011
* Note: Tokyo rents are collected bi-annually in Q2 and Q4
“With occupier demand expected to remain robust across the majority of industrial markets, particularly in Asia Pacific and Latin America, we expect to see continued upward pressure on rents over 2012 and 2013, depending on the severity of the sovereign debt crisis,” Torto says.
Commenting on the current outlook for industrial development from a local perspective, CBRE Pacific regional director of industrial and logistics services Joshua Charles says “limited speculative development that has emerged in some markets has been rewarded with quick leasing transactions”.
This he says is due to the continuing expansion of third-party logistics occupiers and the growing storage and importing requirements of retailers in countries benefitting from high currency values.
“As a result the saying ‘if you build it they will come’ is starting to gain very real momentum. The slight growth in global rents, combined with the current space restrictions, has also led to a tightening in lease incentives and we expect this to continue moving forward,” he says.
However, according to Charles, landowners are holding off on speculative development due to the restrictions placed on them by lending institutions in some cases, while others have adopted a wait and see approach due to the current global economic volatility.
When converted into US dollars per square feet, Sydney ranks above Paris, Amsterdam and Hong Kong at $11 per square foot or $126 per square metre in local currency.
Tokyo remains the most expensive city to rent industrial followed by London, Singapore and Sao Paulo.
According to CBRE, Tokyo industrial rents remain at high levels on a global basis, due to the relocation and expansionary requirements of online retailers and third-party logistics operators in the aftermath of the Japan earthquake earlier this year.
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Rising industrial rents should encourage Australian investors: CBRE

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While all the attention has been focused on comic Julia Morris, winner of last night’s Celebrity Apprentice, Andrew Morello, winner of the first season of The Apprentice back in 2009, is continuing to ply his trade alongside Mark Bouris at Yellow Brick Road.
As winner of the inaugural show, Morello won a 12-month contract at Yellow Brick Road starting in January 2010, which caused him to relocate from Melbourne to Sydney.
He has now been a part of the financial services group for almost two years, tasked with the key role of growing the franchise network as Yellow Brick Road’s head of business development.
This he has done.
When Morello joined the team in January 2010, there were fewer than 50 franchisees on board. The current count is 79, with Bouris stating his intention of having a network of 125 by mid-2012.
Before his triumph on the reality show, Morello worked as real estate agent and auctioneer, but he has since honed his skills as a financial services expert.
Morello is one of the drawcards at the Home Buyer and Property Investor shows that do the rounds of capital cities, providing attendees with tips on saving money on their home loans as well as promoting the Yellow Brick Road brand.
In a recent interview with small business magazine Anthill.com.au, Morello described working with Bouris as “amazing”.
“His mindset is very impressive. For him it is more about changing the face of competition within the financial industry sector than it is about money. He has all the money in the world.”
During his YBR tenure Morello has developed an affinity for professionally minded LinkedIn social networking site, where he has over 500 business connections.  A search on Twitter for his name was unsuccessful.
Having spent the last two years based in Sydney, Morello reckons there are “some seriously great bargains up for grabs”.
“You don’t have to be an experienced investor to know what’s good value, there are lots of things you can do to help you make an informed decision on your property purchase.”
Among his tips for investors is to explore the market by checking out as many properties as possible: “Don’t rush in and put an offer on something without exploring the market first.”
He also suggests would-be buyers make use of free resources such as newspaper listings and property publications, numerous websites and local real estate agencies.
“Signing up with a few real estate email newsletters is a great way to stay up to date with the latest information on the market, but don’t just sit in front of the computer looking at them, get out there and see them for yourself,” he says.
Lastly, he advises talking to people who can give you “good-quality advice”. 
“Terry the baker may know about baking bread and living in the local area, but he may not be the most informed about a home loan,” Morello says. 
Sage advice from a guy who learnt about a lot about business earning $5 a day working at Morello Motors – his father’s car yard on Buckley Street in Moonee Ponds.
 
 
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Apprentice no longer, Andrew Morello further along the Yellow Brick Road

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The Real Estate Institute of Australia is urging the government to adopt a successful Canadian scheme that allows first-home buyers to tap into their superannuation to assist with making their first purchase.
The Canadian Home Buyer’s Plan has been in operation since 1992 and allows first-home buyers to withdraw up to $25,000 from their retirement savings plan to purchase or build a home.
The scheme has proven popular, with nearly 1.4 million Canadians withdrawing money from their retirement savings to participate in the plan between 1992 and 2004.
During this period, over 12% of Canadian first-home buyers aged 25 to 44 used the scheme.
According to the REIA, the Canadian scheme does not disadvantage the retirement plans of first-home buyers. Under the plan, funds withdrawn from retirement savings need to be repaid over a 15-year period so as not to impact the ability to enjoy a comfortable retirement.
The average age of first-home buyers in Australia is in the early 30s, with 55% of recent first-home buyers aged 18 to 29 and just over a third (34%) 30 to 39.
The institute has presented the Canadian plan to the government after it was floated at the October tax forum In Canberra by Nicholas Gruen, CEO of Lateral Economics.
“With the number of first-home buyers participating in the housing market declining considerably over the past two years, it is crucial that we look at ways to assist this group to enter the market,” says REIA acting president Pamela Bennett.
“There is proof that the scheme is working in Canada and we should be drawing on this success to assist first home buyers in Australia.
“There has been some speculation that first home buyers in Australia would not have enough in their superannuation for the deposit on a home.  However, in 2007 the median superannuation balance for those who were 25 to 34 was $28,999 and $63,600 for Australians aged between 35 and 44,” Bennett says.
“The Canadian Home Buyer’s Plan is the perfect example of this proposal in action and REIA would like to see it implemented in Australia as a solution to overcome the problems faced by first-home buyers.”
While the most recent REIA/Deposit Power Housing Affordability found the number of new finance commitments to first-home buyers increased 13.4% to a two-year high of 22,992, for the year to June, new finance commitments to first-home buyers have decreased by 2.1%.
Over the June 2011 quarter, the average loan size to first-home buyers increased 2.5% to $283,900, though this is down 1% for the year.
 
 
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REIA lobbies for Canadian-style first-home buyer scheme

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Shares in Centro Retail Trust have surged 26% to a high of 31.5¢ today on hopes that a revised and sweetened restructure proposal will be accepted by shareholders.
Shares in parent company <a href="https://www.propertyobserver.com.au/retail/centro-sells-adelaide-shopping-centre-following-brisbane-settlement/2011092051630">Centro Properties, which has been selling off its regional  and neighbourhood centres this year</a>, also rallied, increasing by 8.3% to 3.9¢.
This follows the retail trust offering its external investors a 10% improvement on their stake in the new entity – Centro Retail Australia – which would emerge under the restructuring proposal.
The improved offer was made after New York hedge fund Marathon Asset Management, which holds nearly 9% of Centro Retail Trust, and Sydney-based Orbis Funds Management, which holds nearly 5%, indicated they would vote against the merger in its previous form.
Proxy votes from Centro Retail shareholders on the resolution were due by 4pm today, with remaining shareholders voting in Melbourne tomorrow.
Under the restructuring proposal Centro Properties Group will be wound up, with the remaining Australian assets held by subsidiary Centro Retail Trust and other unlisted Centro funds amalgamated into a new listed property trust.
Centro faces a December 15 deadline to pay back $3 billion of debt, which it cannot meet under its existing structure. Failure by the board to win approval for the restructure will most likely cause the company to be placed in the hands of external administrators.
 
 
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Centro shares up after revised restructure proposal

Logan takes the biggest hit among Brisbane regional cities: September quarter REIQ

A company linked to one of Australia's largest privately owned cattle businesses has lodged plans for a new residential tower in <a href="https://www.apartments.com.au/developments/newstead-qld-4006">Newstead</a>, continuing the rapid transformation of one of Brisbane's most sought-after, inner-city precincts.

Bottletree Holdings, an entity associated with Stanbroke Managing Director Brendan Menegazzo, has submitted a development application for a 28-storey mixed-use tower at <a href="https://www.apartments.com.au/new-apartments/9-longland-street-newstead-qld-4006">9 Longland Street</a>, a site that made headlines last year when it changed hands in an off-market transaction that reportedly set a benchmark land rate for the suburb.

The proposal would replace an existing two-storey commercial building on the 1,510 sqm corner site with a Bureau Proberts-designed tower comprising 76 apartments, ground-floor retail, office space and a suite of resident wellness amenities.

<img alt="9 Longland" data-entity-type="file" data-entity-uuid="c710a836-568e-4382-bc91-3c34b8e80a8b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-22%20at%209.41.45%E2%80%AFAM.png?VersionId=Vy.mQWBc7GA_a.vIBdxKqRC9XGjWalo2" />

According to planning documents lodged with Brisbane City Council, the development would comprise a mix of 36 two-bedroom apartments, 24 three-bedroom apartments and 16 four-bedroom residences, positioning the project firmly at the premium end of the market. The apartments would sit above a podium containing retail and commercial space, with three levels of communal recreation facilities spread throughout the tower. The proposal also includes 198 car spaces and 95 bicycle spaces.

Bureau Proberts has drawn heavily on Newstead's industrial heritage in developing the architectural response.

"Occupying a prominent corner in the heart of Newstead, the proposal draws from the area's industrial lineage of robust brick warehouses to deliver a distinctly contemporary response," the architects said in the design statement.

"It is conceived as a subtropical sanctuary and elevated private retreat embedded within one of Brisbane's most vibrant lifestyle precincts."

The design seeks to reinterpret the traditional Queensland vernacular through wraparound verandahs, deep shading elements and permeable facades that respond to Brisbane's subtropical climate.

<img alt="9 Longland" data-entity-type="file" data-entity-uuid="25524f59-395c-4825-8fad-9b639822fa8a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-22%20at%209.42.09%E2%80%AFAM.png?VersionId=dlWlbpCc_g3Y6yTLGqRVKvGJvO2ubMJ3" />

Planning documents describe the building as embodying the principles of "buildings that breathe", a design approach increasingly favoured in Brisbane's apartment market as developers focus on natural ventilation and outdoor living spaces.

The tower itself would rise above a heavily landscaped podium designed to reference the woolstore architecture that helped define Newstead and neighbouring Teneriffe for generations. At ground level, fine-grain retail tenancies would activate Longland Street, Wyandra Street and the existing Wyatt Street laneway, further extending the pedestrian network that has become a hallmark of the Gasworks precinct.

The application notes that more than 54 per cent of the site would be dedicated to landscaping and deep planting, while approximately 1,750 sqm of communal recreation space would be delivered across multiple levels.

<img alt="Planning" data-entity-type="file" data-entity-uuid="fed3b189-1054-4b68-af5f-b0befc4a66e5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-22%20at%209.42.19%E2%80%AFAM.png?VersionId=gqeE3cjsbnLAfeTUKA1HtPZfqDs6S4Xa" />

Bottletree paid $22 million for the 1,510 sqm development site, equating to more than $14,500 per sqm, a reflection of the strong demand for development opportunities in Newstead. The suburb continues to attract both developers and buyers, underpinned by the ongoing evolution of the Gasworks and Teneriffe precincts into some of Brisbane's most sought-after lifestyle destinations.

Brisbane City Council's Sustainable Growth Strategy and Inner City Strategy both identify Newstead as a priority growth precinct capable of accommodating additional housing density due to its proximity to employment hubs, public transport and lifestyle infrastructure.

The proposed tower joins a growing pipeline of high-end apartment developments in the suburb. Fortis recently launched <a href="https://www.apartments.com.au/new-apartments/crest-walker-newstead-12-kyabra-street-newstead-qld-4006">Crest &amp; Walker</a>, a 65-apartment owner-occupier-focused development on Kyabra Street, while Consolidated Properties Group is preparing to launch <a href="https://www.apartments.com.au/new-apartments/castile-47-skyring-terrace-newstead-qld-4006">Castile</a>, a 227-apartment waterfront project on Skyring Terrace.

Meanwhile, builder-developer BPG is planning its own Newstead project on Maud Street, comprising just over 100 apartments and more than 1,380 sqm of dedicated wellness and resident amenity spaces, further highlighting the shift towards lifestyle-driven apartment developments in Brisbane's inner-city market.

Joel Robinson

Newstead apartment boom continues with Longland Street tower plans

ALAND has taken the next major step in delivering its vision for Leppington Town Centre, lodging State Significant Development plans for a $549 million residential precinct that would bring more than 1,200 new homes within walking distance of Leppington Station.

The proposal, now on public exhibition, forms the Residential Core Precinct of the broader Leppington Town Centre masterplan and would transform a 4.3-hectare site at <a href="https://www.apartments.com.au/new-apartments/156-166-rickard-road-leppington-nsw-2179">156-166 Rickard Road</a> into a high-density mixed-use neighbourhood comprising nine residential buildings rising between six and 25 storeys.

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The development has been designed by Rothelowman and is being pursued through a State Significant Development Application alongside a concurrent rezoning request under the NSW Government's Housing Delivery Authority pathway.

If approved, the project would deliver 1,206 dwellings, including 784 build-to-sell apartments, 208 build-to-rent apartments, 189 affordable housing units and a nine-storey serviced apartment building containing 112 rooms. The proposal also includes around 7,400 sqm of non-residential floor space, new public open space, communal recreation areas and a new internal street network.

<img alt="ALAND" data-entity-type="file" data-entity-uuid="c4f80d3b-cb05-4068-8a87-808317807a99" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-22%20at%209.12.36%E2%80%AFAM.png?VersionId=KfPqh1JBuxc53IWntEzGHAeBaCLmRmum" />

<h2 data-end="1990" data-section-id="s6350" data-start="1941">A key piece of Leppington's future town centre</h2>

The site sits around 250 metres from Leppington Station, which opened in 2015 as the terminus of the South West Rail Link and has long been earmarked as the catalyst for the suburb's transformation from a rural fringe location into a major strategic centre for Western Sydney.

Leppington has become increasingly important following the announcement of the Western Sydney International Airport and the emergence of Bradfield City Centre, with government planning identifying the precinct as a significant location for future housing and employment growth.

<img alt="ALAND" data-entity-type="file" data-entity-uuid="8ca0f098-affc-48c0-80d3-468ea090a20c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-22%20at%209.12.26%E2%80%AFAM.png?VersionId=o3mwgBFT6H9YUllI0JR.JfLsUYQy1CTa" />

According to Rothelowman, the proposal responds directly to Leppington's unique position between its agricultural past and its urban future.

"The site offers an opportunity to weave together multiple layers of history, from its ancient connections to Country along the ridgeline between two waterways and its origins as part of the Cumberland woodland, to its more recent agricultural uses, and its future as a new residential community," the architects said in the design report.

The architects said the project aims to establish a high-density residential typology that combines apartment living with extensive landscaping and public open space.

"The design responds by establishing a high-density typology that combines the convenience and amenity of contemporary apartment living with a renewed native landscape."

<h2 data-end="3541" data-section-id="1ko88s2" data-start="3485">Nine buildings arranged around parks and public space</h2>

The proposal has been designed around a landscape-led framework rather than a traditional podium-and-tower approach.

Across the site, approximately 7,500 sqm of public open space would be delivered through a network of north-south and east-west linear parks, connecting into the wider Leppington Town Centre open space network. A further 8,000 sqm of communal open space would be provided for residents.

<img alt="ALAND" data-entity-type="file" data-entity-uuid="f5113abf-5440-4610-9cdc-60a0d41a407e" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-22%20at%209.12.55%E2%80%AFAM.png?VersionId=k8zLMj4yZS4hStmGzZJfosjj5iArwIek" />

Rothelowman said the design seeks to maximise landscaping at ground level by concentrating development into compact tower footprints.

"Buildings are carefully lifted and distributed to minimise disturbance to the natural terrain, allowing the ground plane to remain open, permeable, and led by landscape," the design report states.

Rather than creating a continuous podium edge, the design team has focused on allowing landscaping to extend beneath and around the buildings.

"The ground plane is conceived as an extension of the surrounding environment, allowing landscape to flow up to and beneath the built forms."

The architectural language also draws on the area's natural landscape, with Rothelowman describing a material palette influenced by local gum trees, bark textures, creek systems and sandstone tones.

<h2 data-end="4971" data-section-id="s69utu" data-start="4922">Affordable housing and build-to-rent component</h2>

One of the more significant aspects of the proposal is the diversity of housing typologies.

In addition to traditional apartments for sale, the scheme includes a dedicated 25-storey build-to-rent building with 208 apartments and a 22-storey affordable housing building containing 189 homes.

The affordable housing component represents almost 16 per cent of the total dwellings proposed within the Residential Core Precinct.

<img alt="ALAND" data-entity-type="file" data-entity-uuid="f87e6808-e462-44c6-bfa8-a3de1816f2e3" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-22%20at%209.33.36%E2%80%AFAM.png?VersionId=WTsRKiUAyWw18S5S98yQB5oVuDcnJTxB" />

Community consultation undertaken ahead of the lodgement found support for additional housing in the area, particularly given ongoing affordability challenges across South West Sydney. Survey work conducted with local residents found housing affordability was one of the poorest-rated aspects of living in Leppington, while a majority of respondents were open to additional housing within the local government area.

The site's proximity to Leppington Station was identified as the most positively viewed aspect of the proposal, while public open space and affordable housing provisions also received majority support.

<h2 data-end="6184" data-section-id="1ngkie4" data-start="6140">Part of Leppington's broader expansion</h2>

ALAND will be a significant contributor to the broader vision for Leppington Town Centre, which is expected to accommodate more than 25,000 residents as the precinct evolves over the coming decades.

Located within Sydney's South West Growth Area, the 440-hectare Leppington Town Centre has been identified by the NSW Government as a strategic centre spanning both the Liverpool and Camden local government areas.

In 2023, Liverpool City Council and Camden Council, supported by the NSW Department of Planning and Environment, prepared a draft planning proposal to rezone land and amend development controls across a number of sites within the town centre.

The proposal outlines a new vision for Leppington Town Centre, reducing the amount of land allocated for business park uses while increasing land zoned for commercial development, housing and open space. The changes are designed to optimise land use across the precinct and support the delivery of a more walkable, transit-oriented centre anchored by Leppington Station.

&nbsp;

ALAND plots 1,200-home Leppington masterplan

Brisbane-based developer <a href="https://www.apartments.com.au/developers/trk-property-group">TRK Property Group</a>&nbsp;has enlisted renowned architecture firm Koichi Takada Architects to design its latest new apartment development.

The new 34-storey tower at <a href="https://www.apartments.com.au/new-apartments/57-berwick-street-fortitude-valley-qld-4006">57 Berwick Street, Fortitude Valley</a>,&nbsp;will have 189 apartments, complete with interiors by <a href="https://www.apartments.com.au/architects/byculprit">byCULPRIT</a>. The upper levels&nbsp;capturing views across the Story Bridge, city skyline, ranges, bay and river.

Residents will have access to a rooftop amenity floor with facilities including a pool, spa, sauna, hot and cold treatment, meditation garden, gym, yoga studio, private dining, BBQ, games lounge, wine display wall, work library, meeting rooms and outdoor work areas.

<a href="https://www.apartments.com.au/developers/trk-property-group">TRK</a> Founder and Managing Director, Arpan Kohli, said it will be a project "Brisbane hasn't seen before."

&nbsp;

"To deliver a project of this calibre, you need the right people involved," Kohli said.

"Koichi Takada Architects and byCULPRIT set the benchmarks for design excellence, and this project reflects that - a building of genuine architectural significance in one of Brisbane's most coveted locations, sitting between Howard Smith Wharves and the James Street precinct."

TRK recently launched <a href="https://www.apartments.com.au/new-townhouses/laya-residences-taigum-203-beams-road-taigum-qld-4018">LAYA Residences in Taigum</a>, 88 three-bedroom townhouses starting from $1,495,000. They have another apartment site in Indooroopilly, at <a href="https://www.apartments.com.au/new-apartments/140-central-avenue-indooroopilly-qld-4068">140 Central Avenue</a>. That will have 131 apartments.&nbsp;

&nbsp;

TRK proposes Koichi Takada-designed apartment development in Fortitude Valley

Perth development giant Finbar Group has completed its acquisition of the prominent 236 Railway Parade site in West Leederville, a year after first flagging plans for the transit-oriented development that will become its next major apartment project in Perth's inner west.

The ASX-listed apartment developer has secured the 4,997 sqm mixed use-zoned landholding opposite West Leederville Train Station for around $15 million, paving the way for the proposed Rosslyn Quarter development. The project is expected to deliver <a href="https://www.apartments.com.au/new-apartments/236-railway-parade-west-leederville-wa-6007">around 240 apartments across two towers</a>, alongside ground-floor commercial space.

The acquisition effectively concludes a process that began in mid-2025 when Finbar announced it had entered into a contract to purchase the site, subject to development approval and the finalisation of planning settings under the West Leederville Precinct Structure Plan. At that time, the company outlined plans for a pair of 18-storey towers with an estimated end value of around $200 million.

The site sits within the emerging Rosslyn Quarter precinct, approximately two kilometres from the Perth CBD and directly opposite the West Leederville Train Station. The location also places future residents within walking distance of the West Leederville Shopping Centre, Leederville's hospitality strip, and the neighbouring Subiaco activity centre.

Finbar CEO Ronald Chan said the acquisition builds on the developer's previous experience in the suburb, where it delivered the Motive Apartments project in 2017.

"We have previously enjoyed great success in developing in the West Leederville area given its excellent existing amenity and close proximity to the CBD, Leederville, Subiaco, and the West Leederville train station," Chan said.

He said the scale of the site would allow Finbar to deliver a well-located apartment project while strengthening its long-term development pipeline.

"The substantial scale of this site, with proposed potential for two eighteen-storey towers, will allow the Company to obtain scale benefits which will underpin the delivery of a medium-cost, well-located project," Chan said. "Importantly, this acquisition diversifies and strengthens our long-term development pipeline across metropolitan Perth, enabling us to time our product delivery strategically in line with market conditions."

According to Sterling Property, which brokered the transaction, the site was one of the most significant development opportunities to come to market in Perth's western suburbs in recent years.

Sterling Property Managing Director Brian Neo said opportunities of this scale in established inner-city locations remain tightly held.

"Sites of this scale and calibre, directly opposite a train station and within two kilometres of the CBD, are rarely offered to the market. When they are, they attract serious capital," Neo said.

The acquisition comes as Perth's apartment market continues to contend with limited development-ready sites in established suburbs, particularly those benefiting from both existing transport infrastructure and supportive planning frameworks.

With the West Leederville Precinct Structure Plan now adopted, Finbar can move forward with design development and the development approval process for what is expected to become one of the largest new apartment projects proposed in the suburb.

Finbar completes West Leederville site acquisition for Rosslyn Quarter project

The Gold Coast economy has grown by 25 per cent since 2020/21 to surpass $55 billion, but perhaps the more significant story is what sits behind the headline number.

For decades, the Gold Coast has been viewed through the lens of tourism, lifestyle and population growth. The latest State of the City Report suggests that perception is increasingly out of step with reality.

Released by Invest Gold Coast, the report ranks the Gold Coast as Australia's largest non-capital city economy and, perhaps more notably, second nationally behind Sydney for Economic Complexity, a measure that assesses the diversity and sophistication of an economy.

It's a result that places the Gold Coast ahead of Melbourne, Brisbane, Perth and Adelaide, highlighting the extent to which the city's economic base has broadened beyond its traditional industries.

Today, the Gold Coast supports more than 350,000 jobs, is home to over 83,000 businesses and generates $19 billion in annual exports. Manufacturing now accounts for 62 per cent of international export growth, while sectors including health, education, advanced manufacturing, technology and professional services are becoming increasingly important contributors to the local economy.

[smartcode_project:default project_id=150017 project_image_fid=372547]

Gold Coast Mayor Tom Tate said the report confirmed the city's evolution into one of Australia's most significant economies.

"The Gold Coast economy continues to grow at an incredible pace. This is no surprise to those of us who have watched the evolution up close," Mayor Tate said.

"As one of the most entrepreneurial, investment driven and opportunity focused economies in the country our ambition has been realised and possibilities are endless.

"The Gold Coast has built a reputation as the city that says yes. We say yes to investment, yes to opportunity and yes to people who want to build something.

"It's this mindset helping us drive major growth across health, advanced manufacturing, screen production, marine, technology and the knowledge economy."

[smartcode_project:default project_id=149670 project_image_fid=360975]

While population growth has been one of the defining stories of the past decade, the report points to a broader economic transformation taking place.

The city's knowledge economy now contributes $7.9 billion annually and supports around 31,000 jobs, while the health and wellbeing sector contributes $5.2 billion and employs more than 42,000 people. Together, the six priority sectors identified in the report account for almost $24 billion in economic output and more than 145,000 jobs.

One of the strongest examples is the Gold Coast Health and Knowledge Precinct at Southport. The 200-hectare precinct now contains more than $5 billion worth of health, education, research and innovation infrastructure and supports over 16,000 jobs.

The report also highlights the growing role of advanced manufacturing, particularly in aerospace, defence and modular construction.

Gold Coast-based Gilmour Space Technologies recently became the first Australian commercial company to attempt an orbital launch, while companies including Modscape and ModnPods are helping establish the Yatala-Stapylton corridor as one of Australia's fastest-growing advanced manufacturing hubs.

The city's entrepreneurial culture is also translating into business growth.

Since 2019/20, the number of businesses operating on the Gold Coast has increased by 22 per cent, while firms employing more than 200 people have grown by 80 per cent. The report suggests the next challenge is converting more local start-ups and medium-sized businesses into nationally significant companies.

Development activity remains another key indicator of confidence.

There are currently more than $23 billion worth of major projects underway across the Gold Coast, supported by a record 75 active cranes, a figure that now exceeds Brisbane and represents a 150 per cent increase since 2016.

[smartcode_project:default project_id=112024 project_image_fid=343235]

Importantly, the report notes the next phase of investment will need to extend beyond residential development.

While 93 per cent of crane activity is currently tied to housing, Invest Gold Coast argues future investment will increasingly need to focus on cultural, civic, infrastructure and industry-enabling projects that strengthen the city's long-term economic resilience.

Invest Gold Coast Chair Will Hodgman said the city was now benefiting from years of economic diversification.

"What is happening on the Gold Coast is the result of the city's economic base broadening, fuelled by industries with long-term, high-growth potential," Mr Hodgman said.

"This is no longer a secondary Australian economy, the Gold Coast is becoming a globally connected city with deeper capability across health, knowledge and creative industries, advanced manufacturing, technology and exports."

[smartcode_project:default project_id=108274 project_image_fid=365786]

Looking ahead, the Gold Coast's population is projected to exceed one million residents by 2046.

For a city that was once largely defined by tourism and lifestyle, the latest figures suggest the Gold Coast is becoming something more significant, one of Australia's most diverse and economically sophisticated urban economies, and increasingly one that national and international investors can no longer afford to overlook.

Larry Schlesinger

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