<html><body>
A refinancing drive rather than a pick-up in demand for investment properties has caused “buy-to-let” investor loans to soar to a three-year record high in the UK, according to figures from the UK’s Council of Mortgage Lenders.
There were 32,000 buy-to-let loans, worth £3.5 billion ($5.3 billion), taken out from April to June 2011, the highest number and value since the last quarter of 2008.
However re-mortgaging accounted for 65% of the overall increase in buy-to-let lending in the quarter, with the value of the 15,230 loans for re-mortgage at £1.6 billion, 27% higher than in the first quarter, and accounting for 53% of the total gross buy-to-let lending – up from 51% in the first quarter.
The quarterly result were described as encouraging by Council of Mortgage Lenders director general Paul Smee, who says first-time buyers are not being replaced by “buy-to-let landlords”.
However, figures are still well down on the highs of 2007, when the value of buy-to-let mortgages numbers reached 346,000 and a cumulative value of £44.6 billion
<table style="width: 470px;" cellpadding="0" border="1"><tbody>
<tr>
<td>
Period 
</td>
<td>
 Number of new BTL mortgages
</td>
<td>
Value of new BTL lending
</td>
<td>
Percentage of new lending by value
</td>
</tr>
<tr>
<td>
2009
</td>
<td>
93,500
</td>
<td>
£8.5 billion
</td>
<td>
5.9%
</td>
</tr>
<tr>
<td>
2008
</td>
<td>
222,700
</td>
<td>
£27.2 billion
</td>
<td>
10.7%
</td>
</tr>
<tr>
<td>
2007
</td>
<td>
346,000
</td>
<td>
£44.6 billion
</td>
<td>
12.3%
</td>
</tr>
</tbody></table>
Source: UK Council of Mortgage Lenders
Gross mortgage lending totalled an estimated £12.9 billion in September. This represented a 2% decrease from the £13.1 billion lent in August but was 4% higher than September 2010 (£12.4 billion), according to the Council of Mortgage Lenders.
Gross lending for the third quarter of 2011 is estimated at £38.6 billion, a 15% increase from the second quarter of this year (£33.5 billion) and a 2% increase from the third quarter of 2010 (£37.9 billion).
The Bank of England reported in its Credit Conditions Survey that demand for buy-to-let lending increased significantly. Respondents to the survey expect demand for secured lending for house purchases and buy-to-let properties to be broadly unchanged in the next three months.
 
Buy-to-let mortgages are provided for investors to purchase a property to rent out privately to tenants and have been a fixture of the UK mortgage market since the late 1990s.
Rates and fees on buy-to-let mortgages are generally higher than those for owner-occupier mortgages due to the perception that they are riskier loans. Interest costs from buy-to-let mortgages can be deducted from the taxable portion of rental income to reduce an investor’s tax bill.
In Australia, the September APRA statistics show that about 31% (or $323 billion) of all mortgages arranged by banks are for property investors.
Recent statistics compiled by mortgage broker AFG for September show the percentage of loans sold to investors rose to 37.7% compared with 34.5% a year ago.
In Australia line of credit (or home equity) loans have traditionally been the most popular types of loans used by investors to buy an investment property.
However, AFG figures suggest investors are opting for fixed-rate loans rather than equity loans as lenders continue to discount their fixed loan offerings.
Over September the percentage of fixed rate loans sold by AFG brokers rose from 9.4% to 16.6% while equity loans decline from 9.6% to just 7.7%.
For advice on buying your first investment property, download our free e-book.
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lschlesinger-FZcF9M3vE6

Number of UK investors refinancing increases as 'buy-to-let' loans hit three-year high

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Queensland-based mortgage lender FirstMac has revealed strong profit figures for the 2011 financial year with both operating profit before tax and net profit after tax well above five-year average figures. 
The company reported operating profit before tax of $15.7 million and net profit after tax for the year of $9.5 million, compared with five-year averages of $10.9 million per annum and $6.0 million per annum respectively. 
Loans and advances for 2011 fell marginally from the previous year to $4.4 billion, representing a 2% decrease, with new loan originations broadly equivalent to the level of discharges. 
The lender forecasts loans and advances to increase over the course of 2011-12 as a result of increasing origination levels and following the launch of its online direct retail model branded Loans.com.au. This new distribution channel commenced in March 2011, with increasing settlement volumes experienced from June 2011. 
FirstMac noted that while the average cost of funding across its mortgage portfolio increased over the 2011 financial year, residential mortgage assets have re-priced in line with major bank margin increases, benefiting the group’s net interest margin. 
FirstMac managing director Kim Cannon says the group has maintained its distribution network since the start of the GFC and continues to originate new mortgages. 
“FirstMac provides the proof that it is possible to offer home loan products with competitive interest rates and also maintain a healthy net interest margin. If we can do this, it is possible for all lenders to do.” 
FirstMac was one of the few non-bank lenders able to continue lending during the GFC and has successfully participated in the Australian government’s mortgage securitisation program, raising $1.4 billion from the scheme. 
In 2002 FirstMac entered the securitisation market and began self-funding its own loan business, by issuing bonds on global capital markets. Since 2003, FirstMac has publicly issued over $9 billion of residential mortgage-backed securities.
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FirstMac posts strong profits for 2011 financial year

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Westpac is the first of the major lenders to say it will pass on today’s 0.25% rate cut in full to its variable rate mortgage holders, though borrowers will have to wait two weeks for some relief. 
The bank says it will cut its standard variable home loan rate by 0.25% to 7.61% per annum with the new rate only becoming effective on Monday, November 14. 
The Commonwealth Bank has also confirmed that it will pass on the full 0.25% to its borrowers, but will cut rates 10 days sooner on November 4 with its base variable rate reducing to 7.05%. 
“A reduction in interest rates will provide a timely boost to sentiment and generate a positive flow-on effect for the broader Australian economy,” said Rob Coombe, group executive Westpac Retail and Business Banking. 
Both banks were beaten to the bell by super fund-owned ME Bank, which announced last week that it would pass on any interest rate cut in full to its customers. 
It confirmed this move today following the RBA decision with Ian Hendey, group executive of brand, product and distribution, saying its decision “highlights the importance of acting in the best interest of customers, especially in an environment where concern over shareholder profit often supersedes customer-centric strategy”. 
“This time last year, when the RBA raised its cash rate by 0.25% p.a., ME Bank bucked the trend by doing the right thing by its customers and only raising its standard variable home loan rates in line with the cash rate rise of 0.25%," he says.
Online lender loans.com.au says it will pass on the full rate cut to borrowers immediately. 
Loans.com.au managing director Marie Mortimer says the interest rate cut would not only be passed through to those who hold existing loans but would be extended to potential borrowers who had already applied for preapproval on their new home loans.
“From Wednesday (November 2), this entire group can expect to save almost $50 a month on the cost of an average home loan of $300,000 as their interest rate will be slashed by the full 0.25%,”she says.</body></html>

Banks start passing on rate cut with varying speed

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The decision by the Reserve Bank to cut the cash rate by 0.25% on Melbourne Cup Day has been applauded by Mortgage Choice, RP Data, Ray White and the HIA, who all say it will deliver a boost to consumer confidence. The commentators all issued their views within minutes of today's rate cut announcement.
“The RBA knows times are challenging for many consumers and businesses and has reacted by reducing the interest rate restriction on the economy, to boost confidence,” says Mortgage Choice spokeswoman Kristy Sheppard.
According to Sheppard, the less restrictive rate setting should help businesses “to a position where they feel less pressure to cut employee hours and/or numbers”.
“Borrowers will be delighted, but the move probably won’t result in most heading to shops – de-leveraging and building a protective financial shield against tougher times is their focus.”
“Our national survey completed last month discovered only one in five of the respondents, all of whom were mortgage holders, would spend more if interest rates drop. In fact, over half will now contribute more into their home loan and not spend any extra,” Sheppard says.
RP Data head of research Tim Lawless says the rate cut should not come as a surprise from a housing market perspective, “considering the soft market conditions that have been evident since June last year have created no inflationary pressures”.
“In fact, capital city home values are down 3.6% from their December 2010 peak and rental rates have increased by just 4.5% over the 12 months to September.
“The improved debt servicing position will be a welcome improvement to anyone with a mortgage, however the primary benefit from the rate cut is likely to be seen in an improvement in consumer sentiment which should lead to an uplift in housing transaction volumes which are currently tracking about 13% below the five year average nationally,” he says.
Brian White, chairman of the Ray White Group, says the nation’s two-year  discussions about a possible rate increase have been “clearly been inhibiting the psyche of some potential buyers and sellers who have lacked the economic confidence to make decisions about property transactions in that period”.
"There are many people on the sideline who have been awaiting a more favourable cash rate before engaging in the market and this, in turn, has been impacting other sectors of our economy."
"It's encouraging for the RBA to recognise that people need to feel secure in their property equity in order to spend elsewhere. When an individual buys a home they are effectively embarking on a long journey with the RBA," White says.
HIA acting chief economist Andrew Harvey says the RBA made the right call for the economy.
“Both consumers and business need a shot of confidence given offshore and domestic economic circumstances. Today the RBA used the opportunity to administer that shot and it is exactly the right call.”
In his statement on the November Monetary Policy Decision, RBA governor Glenn Stevens suggested that the lower quarterly inflation figure and concerns about confidence outside the resources sector in September pushed the bank over the line:
“Over the past year, the board has maintained a mildly restrictive stance of monetary policy, in view of its concerns about inflation. With overall growth moderate, inflation now likely to be close to target and confidence subdued outside the resources sector, the board concluded that a more neutral stance of monetary policy would now be consistent with achieving sustainable growth and 2% 3% inflation over time,” Stevens said.
He also noted the moderation in the pace of global growth and the moderate expansion in the US economy, despite the fact that US economic expansion picked up in the September quarter.
Global concerns appeared to outweigh the recovery in local equity markets and the recent rise of the Australian dollar on the thinking of the RBA board.
“Equity markets have gained ground and the Australian dollar has risen significantly as risk aversion has lessened. But it is likely to be some time yet before concerns about the European situation can definitively be laid to rest and the effects of the recent turmoil on confidence may result in a period of precautionary behaviour by firms and households,” Stevens said.
“Financial conditions have been easing somewhat recently, with market interest rates declining a little and competition to lend increasing.  But overall conditions have remained tighter than normal, with borrowing rates still a little higher than average, credit growth subdued and asset prices lower than earlier in the year. The exchange rate has been very variable over the past few months, but on the whole has remained at historically high levels,” Stevens added.
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Rate cut will help the economy and boost confidence, say quick-draw industry players

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The Reserve Bank has cut the cash rate by 0.25%, taking the official lending rate to 4.5% following its November Monetary Policy meeting.
The bank had kept the cash rate on hold at 4.75% for a year, having last increased rates by 0.25% at its November 2, 2010 Melbourne Cup Day meeting.
Economists at <a href="https://www.propertyobserver.com.au/economy/third-quarter-inflation-of-0.6-means-rates-likely-to-stay-on-hold/2011102652074">all the major banks</a> tipped the Reserve Bank to cut interest rates after September quarter underlying inflation came in under expectations.
The 0.25% cut will save borrowers around <a href="/news">$46 a month, according to RateCity</a>.  
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RBA cuts rates by 0.25%

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Established house prices across Australia’s eight capital cities declined by an average of 1.2% over the September 2011 quarter, led by a 2.5% fall in Brisbane, according to preliminary ABS estimates.
Brisbane has also registered the greatest annual fall, with prices down 5.2% since the September 2010 quarter.
All the capital cities registered a decline in house prices over the quarter with Melbourne registered the third biggest decrease in existing capital city house prices with a 1.7% decline.
Sydney house prices proved the most resilient with, just a 0.2% fall.
Perth house prices declined by 1.3%, Adelaide fell by 0.9%, Canberra fell by 2%, Hobart fell by 1% and Darwin fell by 0.4% over the quarter.
Year-on year, preliminary estimates show that the price index for established houses for the weighted average of the eight capital cities decreased 2.2%.
Annually, house prices decreased in the other capital cities were: Darwin (-4.4%), Perth (-4.2%), Adelaide (-3.2%), Canberra (-2.2%), Melbourne (-2.1%), Sydney (-0.3%) and Hobart (-0.3%).
</body></html>

House prices fall 1.2% in September quarter: ABS

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September sales of new homes have declined to levels last seen in December 2000, according to the latest HIA - JELD-WEN New Home Sales Report. 
The number of new homes sold in the month of September fell by 3.5% to about 5,000, down by 14% over the September quarter, according to the HIA’s survey of major residential builders. 
Detached house sales fell by 3.3% in September and are down 15.3% over the September quarter. Sales of multi-units fell by 5.5% in September.
 <img src="/images/stories/hianov1.gif">
On the back of the introduction of the <a href="https://www.propertyobserver.com.au/residential/queensland-building-grant-to-boost-construction-after-government-induced-downturn-westpac/2011083151376" target="_blank">$10,00o state Building Boost</a>, the volume of detached house sales increased by 5.7% in Queensland in September. 
However, sales fell in all of the other four mainland states, with Victoria posting the largest monthly fall, with sales declining by 6.6% in September. 
Detached house sales fell by 4.7% in New South Wales, 5.9% in South Australia, and 3.5% in Western Australia.
The figures follow ABS building approval figures for August – a leading indicating of future construction – which revealed a 1% decline in private sector house approvals to just over 7,500. 
“The September figures highlight the present soft conditions facing new home building and reinforce the importance that the RBA board calls it right today by cutting interest rates,” says HIA acting chief economist Andrew Harvey. 
“Monetary policy is arguably the most powerful economic tool in modern open economies but interest rate cuts still take time to boost the economy – so any further deferral of the decision to cut rates would be the wrong move,” he adds.</body></html>

New home sales at 11-year low: HIA

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On the back of the majority of lenders cutting their fixed rate mortgages over the past few months, the popularity of fixed rates has soared to a three-and-a-half year high, according to October approval figures from mortgage broker Mortgage Choice. 
In October, nearly 20% of borrowers took out a fixed-rate mortgage product, up from 17% in September and significantly higher than the 12-month average of 13.5%. 
Fixed-rate mortgages are now more popular than the traditionally popular “no frills” basic variable loan and the more feature-rich standard variable loan, which were each selected by about 15% of borrowers. 
Ongoing discount mortgages, where the rate is discounted over the life of the loan in return for an annual fee, remain by far the most popular product choice (43% of approvals), but their popularity declined slightly in October.
<img src="/images/stories/mcnov1.gif">
Source: Mortgage Choice
Basic variable rates were the most popular with new home loan borrowers only 11 months ago. At that time, the product type accounted for 34% of the broker’s new approvals. 
Today, this sits at less than 16%, the second lowest point since Mortgage Choice began recording such data in January 2003. 
<a href="/news">According to mortgage comparison website</a> Ratecity.com.au, 70% of lenders, including<a style="font-size: 14px; text-align: left;" href="/news" target="_blank"> St George</a>, <a style="font-size: 14px; text-align: left;" href="/news" target="_blank">Westpac</a>, <a style="font-size: 14px; text-align: left;" href="/news" target="_blank">Greater Building Society</a>, <a style="font-size: 14px; text-align: left;" href="/news" target="_blank">Credit Union Australia</a> and <a style="font-size: 14px; text-align: left;" href="/news" target="_blank">ING</a>, have cut their fixed mortgage rates recently.
Company spokeswoman Kristy Sheppard says comparing October 2011 loan approval data with that extracted one year ago shows “how much the industry has changed in reacting to subdued housing finance demand and a relatively positive interest rate outlook”. 
“Then, basic variable rate was the loan of choice at just over 34% of approvals. Standard variable rate followed with just under 34%, then ongoing discount rate at 17% and fixed rate at 11%. 
“That situation has now flipped. New borrowers’ appetite for fixed rate loans is at a three and a half year high of 20% of approvals and ongoing discount rate loans account for 43% of approvals. 
“In an environment of rising living costs and economic uncertainty it is unsurprising borrowers are taking advantage of the relatively low fixed rates and attractive variable rate discounts offered by lenders hungry for business,” she says. 
The popularity of standard variable, line of credit (popular with investors) and introductory rate home loans all fell in October, to 15%, 4% and 1% of approvals respectively.
</body></html>

More borrowers locking in interest rates: Mortgage Choice

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More than a quarter of Dexus shareholders have voted against the remuneration package for the property group’s highest-paid executives and directors at its annual general meeting in Sydney.
A tally of the votes revealed that 28% of shareholders opposed the remuneration report for the financial year ending June 30, 2011, despite Dexus delivering annual returns four times greater than the <a href="/news">S&amp;P/ASX 200 Property Accumulation Index</a>.
Dexus is the first company in its sector to record a strike against its executive pay and only the seventh company where more than 20% of shareholders have voted against executive remuneration since the vote became mandatory in 2005.
A vote above 20% against the remuneration report is generally considered a sign of trouble for companies.
Should a similar number vote against the remuneration next year, it could force boardroom changes at Dexus.
Dexus CEO Victor Hoog Antlink received a 9.7% pay increase for the 2011 financial year, taking home $3.95 million.
In his AGM address Dexus chairman Chris Beare noted the particular media attention given recently to property sector executive pay and that of Antlink.
Beare responded to the “dissenting vote” by saying the board believed it aligned behaviour to returns for shareholders”.
The vote came as shock to Beare and the Dexus board following 96% of shareholders voting in favour of last year’s remuneration package.
“We thought investors were of a similar mind,” he said, adding that the dissenting vote “troubled” the board in a year in which it had outperformed most of its peers on measures of total shareholder returns and at the same time as it pays its CEO and key executives around the industry average.
“We have spoken to our proxy advisors and a number of investors to try to understand the recent concerns. After the AGM season we commit to consult more deeply, then undertake a comprehensive review or our executive remuneration framework,” Beare said.
Since 2005 listed companies have been required to publish a report setting out the full details of the remuneration of their ten most highly paid executives and all directors and submit it to a vote by shareholders.
In 2008 more than three quarters of shareholders voted against the excessive pay to executives at Valad Property Group shortly before its collapse.
The vote is non-binding and does not require the company to cut its pay.
Dexus will report back to shareholders on the outcome of the review at a later date.
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Shareholders unhappy with executive pay at Dexus

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Shareholders in commercial property trust Dexus has been rewarded with returns nearly four times higher the average return of the S&amp;P/ASX 200 Property Accumulation Index, the company has revealed at its AGM.
The company delivered a net profit to investors of $553 million for the 2011 financial year equating to a total shareholder return of 21.3% as measured by the S&amp;P/ASX 200 Property Accumulation Index, compared with an average index return of 5.8%.
Investors were reminded that only one company with a market capitalisation over $1 billion delivered better returns than Dexus.
“Since June [2011] our total return has continued to outperform the index and we have beaten the index on a three-year rolling basis every year to 30 June since we stapled in 2004,” said Dexus chairman Chris Beare.
The top-performing company in the index was Charter Hall Office REIT, which delivered total shareholder returns of 42.1%. Charter Hall has also been the top performing A-REIT over the month of October, with its share price up nearly 17%. Over this period Dexus share price gains have been a more modest 3.7%.
Developer Australand returned shareholders 26.9% over the year, but was only admitted to the S&amp;P Index in December 2010 while Charter Hall Retail REIT delivered an index return of 25.4% but has funds under management of less than $1 billion.
Australand shares are up 13% over October while Charter Hall Retail is up 4.5%.
Annual returns of investment of companies in the S&amp;P/ASX 200 Property Accumulation Index
<table width="348" cellpadding="0" cellspacing="0" border="0"><tbody>
<tr>
<td valign="bottom" nowrap width="64">
Security
</td>
<td valign="bottom" nowrap width="64">
Exchange
</td>
<td valign="bottom" nowrap width="145">
Description
</td>
<td valign="bottom" nowrap width="75">
30/06/2011
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
 
</td>
<td valign="bottom" nowrap width="64">
 
</td>
<td valign="bottom" nowrap width="145">
 
</td>
<td valign="bottom" nowrap width="75">
 
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
CQO
</td>
<td valign="bottom" nowrap width="64">
ASX
</td>
<td valign="bottom" nowrap width="145">
Charter Hall Office
</td>
<td valign="bottom" nowrap width="75">
42.1%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
ALZ
</td>
<td valign="bottom" nowrap width="64">
ASX
</td>
<td valign="bottom" nowrap width="145">
Australand Property
</td>
<td valign="bottom" nowrap width="75">
26.9%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
CQR
</td>
<td valign="bottom" nowrap width="64">
ASX
</td>
<td valign="bottom" nowrap width="145">
Charter Hall Retail
</td>
<td valign="bottom" nowrap width="75">
25.4%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
DXS
</td>
<td valign="bottom" nowrap width="64">
ASX
</td>
<td valign="bottom" nowrap width="145">
Dexus Property Group
</td>
<td valign="bottom" nowrap width="75">
21.0%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
ABP
</td>
<td valign="bottom" nowrap width="64">
ASX
</td>
<td valign="bottom" nowrap width="145">
Abacus Property Group
</td>
<td valign="bottom" nowrap width="75">
20.7%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
GPT
</td>
<td valign="bottom" nowrap width="64">
ASX
</td>
<td valign="bottom" nowrap width="145">
GPT Group
</td>
<td valign="bottom" nowrap width="75">
18.5%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
IOF
</td>
<td valign="bottom" nowrap width="64">
ASX
</td>
<td valign="bottom" nowrap width="145">
Investa Office Fund
</td>
<td valign="bottom" nowrap width="75">
17.9%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
GMG
</td>
<td valign="bottom" nowrap width="64">
ASX
</td>
<td valign="bottom" nowrap width="145">
Goodman Group
</td>
<td valign="bottom" nowrap width="75">
16.5%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
CPA
</td>
<td valign="bottom" nowrap width="64">
ASX
</td>
<td valign="bottom" nowrap width="145">
Commonwealth Prop
</td>
<td valign="bottom" nowrap width="75">
7.3%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
BWP
</td>
<td valign="bottom" nowrap width="64">
ASX
</td>
<td valign="bottom" nowrap width="145">
BWP Trust
</td>
<td valign="bottom" nowrap width="75">
4.6%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
CFX
</td>
<td valign="bottom" nowrap width="64">
ASX
</td>
<td valign="bottom" nowrap width="145">
CFS Retail Property
</td>
<td valign="bottom" nowrap width="75">
2.8%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
MGR
</td>
<td valign="bottom" nowrap width="64">
ASX
</td>
<td valign="bottom" nowrap width="145">
Mirvac Group
</td>
<td valign="bottom" nowrap width="75">
1.3%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
WRT
</td>
<td valign="bottom" nowrap width="64">
ASX
</td>
<td valign="bottom" nowrap width="145">
Westfield Retail Trust
</td>
<td valign="bottom" nowrap width="75">
0.0%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
XPJ
</td>
<td valign="bottom" nowrap width="64">
ASX
</td>
<td valign="bottom" nowrap width="145">
XJO A-REIT
</td>
<td valign="bottom" nowrap width="75">
-0.1%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
SGP
</td>
<td valign="bottom" nowrap width="64">
ASX
</td>
<td valign="bottom" nowrap width="145">
Stockland
</td>
<td valign="bottom" nowrap width="75">
-2.0%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
WDC
</td>
<td valign="bottom" nowrap width="64">
ASX
</td>
<td valign="bottom" nowrap width="145">
Westfield Group
</td>
<td valign="bottom" nowrap width="75">
-3.0%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
CHC
</td>
<td valign="bottom" nowrap width="64">
ASX
</td>
<td valign="bottom" nowrap width="145">
Charter Hall Group
</td>
<td valign="bottom" nowrap width="75">
-3.5%
</td>
</tr>
</tbody></table>
Source: Atchison Consultants
Beare described the result as a “solid performance” due to the quality of its properties and the focus of its management team.
Dexus owns, manages and develops office and industrial property in Australia and the United States.
“While we are proud of our outperformance we know that for investors it is absolute performance that matters and the A-REIT sector including Dexus did not do well for investors through the GFC,” Beare said.
</body></html>

Dexus returns four times better than S&P property index

<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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