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The strongest-performing Westfield tenants over the past three months have been the mini-major outlets (Dick Smith, JB Hi Fi, Priceline, etc), which recorded a 3.1% increase in sales over the quarter.
Despite sales falling 1.4% in the third quarter they are still 1.1% up on the year with speciality store rents increasing by 3.8% over the 12 months to September.
Westfield CEO Steven Lowy told an analyst briefing that for the nine months to September, new leases in Australia were signed at rents 1% higher than expiring rent, “a solid result in this environment”.
“Earlier in the year, some high profile administration occurred, including Borders, Angus and Robertson in Colorado, where around 80 stores closed. In a matter of months, almost all of these lease-up is now complete. This clearly highlights the strength of our portfolio and the underlying demand for space,” he added.
In the speciality store category, general retailers (Rebel Sport, Cotton On, General Pants) were the strongest performers, recording sales growth of 3.1% for the quarter to be up 4.5% over the last 12 months.
Once again, shops targeting more affluent shoppers such as speciality fashion stores and jewellery stores had poor quarters with sales falling 4.7% and 3.5% respectively. Footwear stores recorded a 2.6% decline over the quarter.
Over the last 12 months to September Westfield’s fashion store tenants have recorded a 2.2% shrinkage in sales revenue.
Homeware stores recorded the poorest turnover growth among the speciality stores, with sales down 5.3% for the quarter.
Department stores (Myer, David Jones, Target), which anchor many Westfield centres, continue to be the worst performing Westfield tenants, with sales down 12.5% over the three months to September and down 7.5% over the last 12 months.
Discount department store (Big W, K-mart) sales also fell over the quarter to be down 4.1% but are down only 2.7% for the year to September.
Coles and Woolworths along with other supermarket tenants recorded moderate growth of 1% but are up a relatively healthy 2.5% over the last 12 months.
Westfield’s cinema multiplex tenants have made a strong comeback in the three months to September 30, recording the third-highest sales growth of all tenant categories.
Cinema sales are down 6.5% for the year but have made a solid comeback in the third quarter, with growth of 2.1%, nearly double the retail sales growth of the group as a whole of 1.1%.
This improvement follows the release of six-month results in August for Westfield, which showed cinemas sales had fallen <a href="https://www.propertyobserver.com.au/news/westfield-cinemas-struggling-perhaps-due-to-pricey-popcorn/2011081751194">8.7% across Westfield’s Australian business.</a>
The performance of Westfield’s cinema tenants over the three-month period is in sharp contrast to cinema operators in shopping centres owned and managed by GPT, <a href="https://www.propertyobserver.com.au/retail/poor-performance-of-cinemas-and-department-stores-hurt-gpt-s-bottom-line/2011102752099">which recorded a 9.3% drop in turnover over the same period.</a>
The release of Westfield’s fourth-quarter update in February 2012 should provide an indication of whether the recovery is a longer-term trend.
 
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lschlesinger-FZcF9M3vE6

Department stores - Myer, David Jones and Target - poorest-performing Westfield tenants

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Developers are optimistic about demand for new housing on the Gold Coast picking up over the next 12 months despite another lacklustre quarter.
Currently only two projects are selling more than eight lots per month, however 12 projects aim to sell at that rate next year, according to the latest Prodap report, a regular survey of over 150 active developers operating on the Gold Coast.
The projects to achieve sales of more than eight lots per month over the September quarter were Delfin Lend Lease’s Woodlands development at Waterford, which recorded 38, sales and Stockland’s Highland Reserve project in Upper Coomera, which recorded 25 sales.
One of the historically best-performing estates, The Observatory at Reedy Creek being developed by Stockland, recorded only 10 sales in the quarter, with plenty of stock remaining.
However a “surprisingly high number of developers expect to produce in excess of 100 lots over the next 12 months. This reflects an average sales rate of eight per month per project”.
The pick-up in residential land development is expected despite there being over 1,300 lots available for sale on the Gold Coast representing about 13 months’ worth of supply.
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/gcchartlarge.gif"><img src="/images/stories/gcchart.gif"></a>
Click to enlarge
Developers expect to increase their supply of new lots over the next 12 months ending September 2012 to be equivalent to two and a half years of supply at the current take up rate.
“Perhaps the developers are anticipating a revival of sales, or perhaps they are just being optimistic about their own particular project,” says<a target="_blank" href="https://www.propertyobserver.com.au/leisure/queensland-tourism-industry-needs-government-help-midwood/2011100551817"> Bill Morris, author of the report</a>.
This rate of new development could be even higher if the Commonwealth Games bid is successful. The successful bidder will be announced on November 11.
“A Gold Coast win will have a huge impact on employment over the next six years, with a budget of $2 billion allocated by the state government for new facilities,” says Morris.
“The core of these facilities will be a competitors' village to house an estimated 5,000 competitors in studio apartments.
“The site for the village is to be at Parkwood on the existing trotting and greyhound club land.”
Currently though sales continue to wallow at record lows, stock levels are not oversupplied even at the low sales level, and packaged housing production is low, putting upward pressure on rents.
Low sales levels are attributed to low interstate migration into Queensland ( less than 10,000 per year), which is affecting the demand for Gold Coast housing generally.
The suburb of Upper Coomera, where Coomera Waters is being developed by Austcorp, achieved the greatest number of land sales over the quarter at 68 while Pimpama recorded the highest number of house and land package sales with 17.
For advice on buying off the plan, download our free e-book.
 
 
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Gold Coast developers optimistic, despite slow sales

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Property group Metro Property Development has plans for another apartment and retail development in Brisbane’s Fortitude Valley after acquiring two adjoining sites measuring a total of 2,553 square metres. 
Settlement on the two sites at 1 Commercial Road and 977 Ann Street is due by November 2012, subject to appropriate development approvals. 
In the pipeline is a high-rise residential and retail development with more than 200 apartments and a total value of $105 million. 
If it goes ahead will add to more than a <a target="_blank" href="https://www.propertyobserver.com.au/developments/alex-perry-development-and-others-all-the-fashion-in-fortitude-valley/2011091551568">dozen residential projects under development or under construction in Fortitude Valley and Bowen Hills, adjacent to the Brisbane CBD</a> including Alex Perry’s 11-storey designer block being developed by Chrome Property Group. 
The 900-square-metre Anne Street site was occupied by a church organisation, which paid $522,500 in 1997. It had been recently listed for sale at about$3.6 million by Yong Commercial Sunnybank Hills.
The 1,450-square-metre Commercial Road car yard last traded at $1.97 million in 2003.
Both sales were negotiated by Elders Commercial’s Carl Charalambous. 
Charalambous says the sales are indicative of the strengthening market for new development sites in and around the Brisbane CBD. 
Metro founder and executive chairman David Devine says the latest acquisitions will take the company’s workbook of current and future apartment developments (including joint ventures) to 2,030 apartments worth $922 million and 800 residential development lots in Victoria worth $120 million. 
“Fortitude Valley has enjoyed strong capital growth over the past decade, with a median price growth rate of 5.5% from 2001 to 2010.  However, the suburb is still ranked as the fourth most affordable apartment market within the 21 suburbs that make up inner Brisbane,” Devine says. 
“We continue to see exceptional value in Brisbane’s inner-city suburbs like Fortitude Valley and Bowen Hills with the availability of high-quality sites, sustainable building costs and good demand from buyers.” 
Metro currently has three joint venture projects underway in Fortitude Valley and neighbouring Bowen Hills in partnership with Pearls Australasia, an Indian apartment developer. 
To date, all 195 apartments at The Chelsea in Bowen Hills have been sold while 200 of 285 apartments at the Madison Heights project in Bowen Hills have changed hands 
In the week following its launch, <a target="_blank" href="https://www.propertyobserver.com.au/developments/buyers-snap-up-20-of-fortitude-valley-s-brooklyn-offerings/2011101351911">40 apartments in the 141-apartment Brooklyn on Brookes’ development in the Valley were sold off-the-plan generating sales of $18 million</a> with buyers taking advantage of the Queensland Government’s $10,000 Building Boost. 
Colliers has forecast 1,800 apartments to come up for sale in the inner-Brisbane market over the next 12 months with a further 4,500 due to be released in 2013.
According to Metro Property an extra 22,000 people are expected to move to Fortitude Valley by 2030.
For advice on buying off the plan download our free e-book.
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Metro to add to Fortitude Valley apartment portfolio

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A five-year view of house prices in Australia’s four biggest cities following the release of the <a href="https://www.propertyobserver.com.au/residential/house-prices-fall-slightly-in-best-result-in-seven-months-rp-data-rismark/2011103052126?source=flicker1" target="_blank">RP Data/Rismark September house price index</a>
<img src="/images/stories/rpnov7.gif">
Source: RP Data/Rismark 
 
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House price growth: How capital city house prices have fared since 2006

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The receivers of the failed Record Funds Management have re-listed their vacant office block holding at 149 Castlereagh Street with offers at or under the $50 million mark expected to be considered.
Sales agents James Aroney and Robert Harris of Jones Lang LaSalle initially listed it with $60 million hopes in April 2010.
At one stage Telstra was considering tenanting the building, with an investor on board but the sale did not proceed following a due diligence report.
The building was recently redeveloped at a cost of $38 million to provide A-grade office and retail accommodation in the heart of the precinct.
Record was part of the failed Allco Finance Group.
Harris says the re-listing represents a “refreshed” offering in a market that is now “slightly different”.
The building stands on a 1,300-square-metre site with the lower ground, ground and level 1 comprising about 2,300 square metres of retail space and about 10,700 square metres of office space across 10 floors with floor plates of over 1,000 square metres.
The gross office rental is estimated at $573 per square metre, equating to annual income when fully leased of more than $8 million.
It has total annual outgoings of $1.7 million
Harris says it is rare for a building in Sydney’s CBD to have more than 10,000 square metres of contiguous office space. 
“149 Castlereagh Street provides tenants with an opportunity to occupy several adjoining floors which is ideal for medium to large organisations,” he says.
It is currently untenanted except for a small 102-square-metre shop and is one of only five buildings in Sydney’s CBD with over 10,000 square metres of contiguous space. 
The tower features environmentally sustainable design elements, modern fittings and fixtures and balconies on each floor.  The entrance has a three storey water feature as well as a three-storey public art design by glass artist Lisa Cahill.
With the amount of office stock “pretty lean” Harris says the building represents a “value-add” opportunity with the refurbishment now fully completed.
An issue of contention has been the building’s location near to Grocon’s 46-storey project at 163 Castlereagh.
However, with the new tower now half-way complete, Harris says it is clear that it will have a beneficial impact on 149 Castlereagh rather than a negative one. Efforts to sell 149 Castlereagh date back to April last year, when it was placed on the market by receivers Ernst &amp; Young.
In April 2010 the price tag was around the $60 million mark, but it had fallen to around $50 million by June 2010 despite a $38 million refurbishment, which was expected to increase its value to $90 million.
In March this year it was reported that receivers Ernst &amp; Young were negotiating a $50 million sale of 149 Castlereagh Street, but this did not eventuate. 
The Abacus Property Group and Hong Kong-based CLSA Capital Partners were among the parties expressing an interest in the building during a sales campaign that concluded on June 3 last year. 
Record Funds Management owned 149 Castlereagh Street before the company was placed in receivership in August 2009 as part of a property portfolio once worth about $2.1 billion.
Suncorp is the mortgagee and is reportedly owed between $70 million and $80 million.
It was bought by Allco for about $33 million in 2006.
The property is in the same precinct as major developments including the new ANZ/Freehills complex (adjoining to the south), the landmark Westfield redevelopment and the recently completed Mid City / 420 George Street project. 
Aroney says the new developments surrounding the building will attract significant interest from investors looking to get a foothold in the area. “This precinct, along with Barangaroo, offers tremendous upside and capital growth from both a commercial and retail perspective,” he says. 
The open market expressions of Interest campaign closes on November 23.</body></html>

Allco Sydney asset re-listed after last sale fails to get across the line

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New house and land activity in Sydney is expected to double over the next two years, according to property market analysts BIS Shrapnel.
Sydney lot production is expected to rise from the current estimated 3,000 lots per annum to a peak of 6,100 lots per annum by 2013-14 as outer Sydney accommodates much of the upturn in new house activity, according to BIS Shrapnel’s Outlook for Residential Land, 2011 to 2016.
This is still below the 7,600 lots per annum average over the five years to 2001 and reflects the still-high cost of land, which will maintain the shift to less expensive medium- and high-density dwellings and infill and knockdown development in established areas.
Further strengthening of economic conditions and income growth will improve the relative affordability of new housing in Sydney, the report says.
Melbourne has been the hotspot for new housing development in Australia over the past five years, with more than 16,000 lots produced annually from 2006 to 2011. However, this is forecast to decline to an annual average of 15,000 over the next five years.
 
<table cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td valign="top" rowspan="2" width="130">
City/Region
</td>
<td valign="top" colspan="4" width="270">
Average Annual Lot Production 
</td>
</tr>
<tr>
<td valign="top" colspan="2" width="135">
<table cellpadding="0" cellspacing="0" border="1"><tbody><tr>
<td valign="top" width="64">
2006-2011 
</td>
</tr></tbody></table>
</td>
<td valign="top" colspan="2" width="135">
2011-2016 Forecast
</td>
</tr>
<tr>
<td valign="top" colspan="2" width="133">
Sydney
</td>
<td valign="top" colspan="2" width="133">
2,368
</td>
<td valign="top" width="133">
5,660
</td>
</tr>
<tr>
<td valign="top" colspan="2" width="133">
Perth
</td>
<td valign="top" colspan="2" width="133">
7,719
</td>
<td valign="top" width="133">
10,160
</td>
</tr>
<tr>
<td valign="top" colspan="2" width="133">
Birsbane
</td>
<td valign="top" colspan="2" width="133">
5,760
</td>
<td valign="top" width="133">
6,520
</td>
</tr>
<tr>
<td valign="top" colspan="2" width="133">
Gold Coast
</td>
<td valign="top" colspan="2" width="133">
1,817
</td>
<td valign="top" width="133">
1,760
</td>
</tr>
<tr>
<td valign="top" colspan="2" width="133">
Sunshine Coast
</td>
<td valign="top" colspan="2" width="133">
1,932
</td>
<td valign="top" width="133">
1,940
</td>
</tr>
<tr>
<td valign="top" colspan="2" width="133">
Melbourne
</td>
<td valign="top" colspan="2" width="133">
16,232
</td>
<td valign="top" width="133">
15,000
</td>
</tr>
<tr>
<td valign="top" colspan="2" width="133">
Adelaide
</td>
<td valign="top" colspan="2" width="133">
3,150
</td>
<td valign="top" width="133">
2,700
</td>
</tr>
</tbody></table>
 
New house and land activity softened or fell in all major markets in 2010/11, due to the expiry of the First Home Owner’s Grant Boost Scheme, the sharp interest rate rises in 2009-10 (and further rise in November 2010), and slowing economic growth through the year, according to the report.
The fall in lot production was most profound in the southeast Queensland markets of Brisbane, the Gold Coast and Sunshine Coast, which collapsed to long-term lows, reflecting the underlying oversupply of dwellings across the region.
All other capital cities with the exception of Sydney and Perth also experienced a fall in lot production in 2010/11
After record lot production in Melbourne and new record levels in Adelaide in 2009-10, any pent-up demand pressures have now well and truly eased, and activity is slowing, the report says.
According to senior project manager and report series author Angie Zigomanis, in addition to the rising deficiency developing in a number of markets and the benign interest rate outlook driving a return of purchaser confidence, first-home buyer demand also appears to have bottomed out, “with the ‘pull forward’ effect created by the First Home Owner’s Grant Boost Scheme having been largely worked through”.
“We expect a slow recovery in first-home buyer demand through 2012, which will help to underpin upgrader demand for new houses and land.”
As a result BIS Shrapnel forecasts the residential land market to pick up nationally over 2011-12, and accelerate over 2012-13 as economic growth also strengthens.
Over 2013-14 the environment will begin to deteriorate again as interest rate rises eventually have an impact across all markets. The gains in employment and income growth up until then will overcome some of the initial rises and will continue to support activity.
But as inflationary pressures become more acute as the resource investment boom peaks and creates skills shortages and wages pressure, a sharp tightening in interest rates is expected, taking the standard variable rate to a forecast peak of 8.75% in the first half of 2014. This will have a negative impact not only on residential demand, but the economy as well, with residential activity forecast to enter a downturn over 2014-15, BIS Shrapnel says.
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Sydney house and land development to double in next two years: BIS Shrapnel

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The Reserve Bank has lowered both its inflation forecasts and GDP growth forecasts, paving the way for future rate cuts while noting the subdued and uneven housing market in its lengthy monetary policy statement following the Melbourne Cup Day rate cut.
“Reflecting recent developments in both the domestic and global economies”, the RBA now forecasts GDP growth in 2011 to be around 2.75% “with the slow recovery in coal production accounting for a significant part of the downward revision since earlier in the year”.
“In 2012, growth is expected to be around 3% to 3.5% and to be a little stronger in 2013.”
RBA inflation forecasts have also been lowered with underlying inflation (excluding the effect of the carbon price) expected to be around 2.5% in 2012, half a percentage point lower than forecast at the time of the August statement and within the 2% to 3% target band.
“In 2013, inflation is expected to pick up a little, but still be consistent with the inflation target,” the bank says.
The RBA says it reduced the cash rate to 4.5% this week to a more neutral stance, with inflation “likely to be consistent with the medium-term target and that economic growth remained moderate”.
“At its future meetings the board will continue to set monetary policy so that it is consistent with achieving sustainable growth and 2% to 3% inflation over time.”
Once again the RBA noted that the housing market remains subdued, with nationwide measures of housing prices declining over 2011.
“Perhaps not surprisingly, the weakest markets have been those that had the largest run up over the preceding few years. At the aggregate level, the ratio of housing prices to income has been broadly steady for almost a decade now after its earlier large increase,” it says.
“Growth in housing credit is noticeably slower than in earlier years and is running at a little below that in household disposable income.
“Nationwide housing prices are estimated to have fallen by around 1.25% in the September quarter and by 3.5% over the year. Brisbane and Perth have been the weakest markets over the year, with prices in these cities falling by around 5%.
“Auction clearance rates are below decade-average levels in Sydney and Melbourne. Demand for housing finance has been subdued since the beginning of the year, although the value of loan approvals has picked up a little in recent months. While housing turnover rose in the June quarter, it remains at quite a low level,” the bank notes.
“Indicators of dwelling investment have softened over the year, with builders reporting that households are cautious about committing to contracts. However, there are divergences in the level of activity by type of building and state. While the number of building approvals for detached houses has fallen since late 2010 to relatively low levels, the number of approvals for higher-density housing (mainly apartments) has been higher than over recent years.
“Growth in the dwelling stock is currently quite strong in Victoria, reflecting growth in the building of apartments. In contrast, the growth in dwellings in New South Wales has been soft, and well below the rate of population growth.”
According to the RBA, the largest risk to its inflation and GDP forecasts is the sovereign debt and banking problems in the euro area.
“The bank’s central scenario continues to be one in which the European authorities do enough to avert a disaster, but are not able to avoid periodic bouts of considerable uncertainty and volatility. A worse outcome in Europe would adversely affect the Australian economy, and underlying inflation would be likely to decline,” it says.
As a consequence of these bouts of uncertainty and volatility, the bank’s central scenario for global growth over the next couple of years has been revised lower since the previous statement to about 4%.
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RBA lowers inflation forecast in November statement, suggesting more rate cuts possible

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Refund Real Estate and Refund Financial Planning have been placed in the hands of administrators two weeks after parent business Refund Home Loans collapsed.
ASIC documents reveal that the two businesses were placed into voluntary administration on October 28.
Refund Real Estate is the newest company that formed the Refund group, having been launched in September 2010.
The venture was officially launched by deputy opposition leader Julie Bishop in July this year.
Refund Financial Planning commenced operations in February 2010 in an alliance with financial advice business Professional Investment Services.
It is understood that both general managers of these businesses have moved on.
Refund Home Loans entered into voluntary administration on October 14 due to $2.5 million in debt.
Refund Home Loans was started by Wayne Ormond in 2004.

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Wayne Ormond's Refund Real Estate and Refund Financial Planning in voluntary administration

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It took just 29 seconds for Stockland to sell 40 lots in its Brooks Reach community at Horsley in the Illawarra in an online sale. 
The lots sold online ranged in size from 550 square metres to 700 square metres priced around the early to mid $200,000 range. They were sold online to avoid potential buyers camping out to secure a lot.
The lots were part of a batch of 70 sold in the first week of trading in the newly opened community. 
Brooks Reach is the first masterplanned community to be launched in the area in the past decade. 
It will include about 600 new homes at completion and is the first land to come on line as part of the 4,700-hectare West Dapto Land Release Area announced by the New South Wales government last year.
The community will also be the location of a 34-home display village to be completed by March 2012 and anticipated to be the largest for the Illawarra.
The current average price for a home in the area is $430,000, while the average house-and-land package at Brooks Reach will be around $410,000. 
According to Stockland residential communities CEO Mark Hunter the result continued the recent general improvement in customer sentiment and buying activity in New South Wales. 
“The majority of buyers come from within a 10-kilometre radius of Horsley, demonstrating that there is demand for good affordable product in the fast-growing Illawarra region,” Hunter says. 
To further boost affordability, Stockland will also be releasing smaller lots from 300 square metres to 450 square metres in the next quarter. 
Stockland estimates that more than 3,000 construction-related jobs will be generated for the Illawarra community over the life of the project. 
Stockland’s investment in the Illawarra also includes the $330 million redevelopment of its Stockland Shellharbour shopping centre, only a 15-minute drive from Brooks Reach.
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Stockland takes 29 seconds to sell 40 Illawarra lots in online blitz

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Given the drop in approvals in 2009-10 and a lack of available development space, investors looking to get their hands on an off-the-plan apartment close to the Sydney CBD will need to act fast.
According to research by Colliers, there are limited opportunities not only for developers but also for individuals seeking to purchase a new apartment off the plan.
There were only 568 inner-city Sydney apartments for sale and 1,440 off-the-plan units for sale in 10 projects in the first half of 2011, according to Colliers, with only 384 apartments approved for development and 655 at the application stage.
Once the Stamford Residences and the Reynell Terraces (both in The Rocks) are completed there will no new supply in the northern precinct (stretching south from the Harbour foreshore to Market Street and east to Macquarie Street) until 2015, says Colliers.
East Exchange in Darlinghurst, which is being developed by the Maygood Group, is anticipated to be the next development completed in the eastern precinct, the zone incorporating blocks east of College Street, to the north of Oxford Street to William Street, west of Darlinghurst Road to William Street and the entire suburb of Woolloomooloo. Other projects due for completion in the short term in the east include the 87-apartment The Residences overlooking Hyde Park and being developed by Cbus Property and also Dominion, a 110-unit luxury apartment project being developed by Hilliers and Cbus Property
Within the southern precinct three projects are currently under construction including Parkview’s Inmark Tower, a 37-storey tower on George Street, which will have 217 apartments and is anticipated to be completed shortly.
This precinct is defined as south of Bathurst Street from Darling Harbour to Hyde Park, south of Liverpool Street (between Elizabeth and College streets), west of Wentworth Avenue, west of Elizabeth Street to Cleveland Street, north of Cleveland Street (between Elizabeth and Abercrombie streets), Broadway to the corner of Pitt and Hay Streets, north of Hay Street and west of Harbour Street.
The biggest CBD apartment project still selling off the plan is Fraser’s $2 billion Central Park project off Broadway. The first batch of 228 apartments, priced between $460,000 and $1 million, was sold off the plan within six weeks of being released in August 2010 followed by a second batch of 100 apartments released in October 2010 and a third batch of 150 apartments released in December 2010, with prices  between $610,000 and $1.25 million. Upon completion Central Park will comprise about 1,900 apartments, student housing, a hotel, a 16,000-square-metre multi-level retail centre and a 75,000-square-metre commercial office campus.
Colliers expects median apartment prices to continue to rise in the long term due to the scarcity of development sites.
As the new projects around Hyde Park and in Darlinghurst and Woolloomooloo settle in the coming years new price benchmarks are anticipated to be set.
Take-up rates from overseas-based buyers may decline in the short term while prospective purchasers wait to see if the strength in the Australian dollar is maintained.
However, the Sydney CBD’s demand drivers and limited development opportunities are likely to ensure this is a short-term trend.
“The potential level of future supply will continue to be impacted by the availability of funding and potentially some projects may not commence construction.  Future development prospects remain most prevalent in the southern precinct due to a number of brownfield sites,” Colliers says.
For advice on buying off the plan, download our free e-book. 
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Inner Sydney running out of space for off-the-plan developments

<a href="https://www.apartments.com.au/developers/mrcb">MRCB International</a> has commenced construction on its latest Gold Coast apartment development, Maris, on the site of the former Sundale Motel in Southport.

The start of construction by <a href="https://www.apartments.com.au/builders/binah-constructions">Binah</a> follows an exceptionally strong sales campaign, with more than 90 per cent of apartments sold since launch. Every purchaser has been local, an&nbsp;indicator of confidence in both the development and Southport's evolution into a thriving CBD.

<a href="https://www.apartments.com.au/new-apartments/maris-southport-20-queen-street-southport-qld-4215">Maris</a> will deliver 192 residences across 20 levels. The project forms part of MRCB's Australian and New Zealand development pipeline now exceeding $1.6 billion in gross development value, alongside a growing portfolio of projects globally.

[smartcode_project:default project_id=134403 project_image_fid=350663]

The company also commenced construction on its $600 million 26 Vista residences in Surfers Paradise last year, following strong sales momentum, with over 70 per cent of residences sold.

Maris has been designed to meet evolving buyer demand, offering architecturally designed layouts suited to long-term liveability. The approach reflects a growing preference for quality and adaptability among Gold Coast buyers.

Positioned next to the Broadwater in the <a href="https://www.apartments.com.au/developments/southport-qld-4215">Southport</a> CBD, Maris sits directly opposite the Broadwater Parklands light rail station and within easy reach of retail, dining and lifestyle precincts, placing residents at the centre of one of the Gold Coast's most connected and rapidly maturing urban centres.

[smartcode_project:default project_id=134403 project_image_fid=372756]

Maris will offer a full suite of resort-style residential amenities, including a pool, gym and sauna, along with a rooftop level featuring decks, lounges and dining and yoga areas that command sweeping views across the Broadwater and out to the ocean.

Binah, a New South Wales headquartered company co-founded by Amen Zoabi and Khalil Hafza in 2008, has expressed its excitement at establishing its first partnership with MRCB.

Binah's Managing Director Khalil Hafza said partnering with MRCB on Maris is a significant moment for Binah.

"MRCB's financial strength and a track record that speaks for itself give this project a solid foundation, and this marks the beginning of what will be a long and successful relationship.

"With the right people, systems and partnerships behind it, Maris is set to become a significant addition to the Gold Coast's premium residential market."

[smartcode_project:default project_id=134403 project_image_fid=350664]

MRCB International CEO Ravi Krishnan said the project's progression to construction reflects both sustained demand and tightening conditions across the apartment sector, as well as MRCB's continued confidence in the Gold Coast market.

"Commencing construction at Maris is a significant step and reflects the depth of demand for quality apartments in well-connected urban locations," said Krishnan.

"Across Southeast Queensland, new apartment supply remains constrained, particularly in established precincts with infrastructure and amenity already in place. Projects like Maris are increasingly critical in meeting that demand, especially on the Gold Coast and in the city's CBD precinct."

[smartcode_project:default project_id=134403 project_image_fid=372761]

Krishnan said Southport's ongoing transformation, supported by infrastructure investment and long-term planning, was underpinning renewed buyer confidence.

"We're seeing a clear shift back towards well-located urban centres where infrastructure, connectivity and amenity are already established," said Mr Krishnan. "Southport is evolving into a more mature CBD environment, and that is being reflected in buyer behaviour."

Construction at Maris is anticipated to be completed in 2029.

[smartcode_project_cta:default project_id=134403]

Joel Robinson

Construction commences on MRCB’s $200m Maris Residences in Southport

Moonee Valley Park’s latest residential release <a href="https://www.apartments.com.au/new-apartments/the-eveline-at-moonee-valley-park-moonee-ponds-100-thomas-street-moonee-ponds-vic-3039">The Eveline</a>, has achieved a new benchmark for off-the-plan apartment sales in the suburb, with the sale of The Alexandra penthouse selling for $5,435,000.

Positioned on the top floor of a 16-level residential building, the three-bedroom, three and-a-half-bathroom penthouse features uninterrupted city skyline views across the future Valley racetrack.&nbsp;

The landmark sale comes as momentum at the precinct continues to build, with the Moonee Valley Racing Club progressing works on its new racetrack ahead of the 2027 Cox Plate. The transformative development will see MVRC reimagine the beloved Valley as a vibrant year-round entertainment and lifestyle destination.

Alongside a world-class racing experience, the historic precinct will be activated with events, hospitality and public green spaces designed to attract broader audiences, while breathing new life into one of Melbourne’s most iconic destinations.&nbsp;

[smartcode_project:default project_id=142519 project_image_fid=372786]

Development partners <a href="https://www.apartments.com.au/developers/hamton">Hamton Property Group</a> and Hostplus have delivered five residential stages over the past four years, the most recent in November 2025 with Trackside House and Stonepine House. The flourishing community is now home to almost 500 families.&nbsp;

The latest residential release, The Eveline, has recorded strong demand since launching publicly last July, securing more than $200 million in sales to date, satisfying its pre sales hurdle for construction to commence.&nbsp;

Hamton Founder and Executive Chairman, Paul Hameister OAM said, the sales&nbsp;team have been overwhelmed by demand for these unique homes in this unique project.

"Buyers continue to be predominantly hyperlocal and attracted by the 40 hectare botanic masterplan in Melbourne’s inner north west," Hameister said.

[smartcode_project:default project_id=142519 project_image_fid=372788]

Hamton’s Sales and Marketing Director Fergus Humphries said the team has achieved more than 70 sales over the past eight weeks, including the penthouse purchase by a local buyer.

"These results reinforce that, even in a challenging market, purchasers continue to be drawn to quality projects that offer more than just a home, they offer a lifestyle.”

Designed by Cera Stribley, the penthouse has been created with entertaining in mind, spanning close to 400 sqm of indoor and outdoor living space, including multiple terraces designed to capture sweeping views across Melbourne’s skyline, the new Valley racecourse and sunset views over Moonee Ponds.

Moonee Valley Park is one of Melbourne’s largest urban renewal projects, transforming the iconic racecourse site into a vibrant mixed-use neighbourhood integrating homes, parklands, retail, racing and community amenities.

[smartcode_project_cta:default project_id=142519]

Moonee Valley Park penthouse sets suburb record as sales surge clears construction benchmark

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.

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.

<img alt="ALAND" data-entity-type="file" data-entity-uuid="fc20982d-a0a9-4989-8fb3-680ca9fdcd10" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-22%20at%209.12.44%E2%80%AFAM.png?VersionId=l5EEyS6Dkf_SLDQkwDeyAU2nXkSZP2RW" />

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;

Larry Schlesinger

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