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The Australian office of Knight Frank has been commended as a strong performer after the UK-based real estate group delivered a 10% increase in profits for the 2011 financial year.
During the year Knight Frank continued to grow its Australian operations.
The Australian office now has more than 620 employees in Australia and operates from 22 locations. During the year it acquired M² Office Leasing, a commercial leasing business active in North Sydney and Macquarie Park.
Stephen Ellis, executive chairman of Knight Frank Australia, says there was a high level of activity in the Australian market last year.
Notable successful campaigns run by Knight Frank over the last 12 months include the sale of the Woollahra Hotel for more than $16 million and the sale of the Coles-anchored Cove Hill Shopping Centre in Hobart for $13.2 million. Significant leasing deals arranged by Knight Frank include MTAA Superannuation Fund leasing nearly 9,000 square metres of office space to Comcare in Canberra.
“Knight Frank continued to grow its Australian operations, building its agency business on top of a strong management and valuation platform,” Ellis says.
 
“Last year we recruited a number of key personnel in investment, office and industrial services, particularly on the east coast. We also recruited a six-person project management team in Sydney, as we continue to invest in accordance with our three-year plan.”
 
Knight Frank delivered global profits before tax of £101.9 million ($156.5million) for the year ending March 31, 2011, compared with profits of £92.3 million ($141.7 million) in the previous 12-month period.
 
The strong bottom line result was achieved on the back of a 7% increase in turnover to £308.4 million (AU$473.6 million) compared with £288 million ($442.2 million).
 Commenting on the global results, Nick Thomlinson, senior partner and chairman of the Knight Frank Group, says the real estate group’s European business has traded profitably in difficult markets and it has continued to expand its operations in Asia Pacific, “with strong performances in Australia, India, Greater China and Singapore”.
“Our global strategy remains focused on organic growth in key markets with the best people. This year we have opened offices in Dubai, South Africa, Austria and Switzerland and expanded our network in China, Australia, India and the UK,” he adds.
While the prime central London residential market strengthened (capital values are up 9% and rents up 17% over the reporting period) Knight Frank warned of significant headwinds facing the UK residential market, with the regions furthest from London likely to be most affected by weaker economic performance and consumer confidence.
According to Knight Frank, the key trend across the prime European markets has been for activity to be concentrated in the more established rather than emerging markets.
“Good examples of this include locations like Tuscany, southern France, Switzerland and Paris, which have all seen strengthening demand over the past 12 months – something we expect to continue into 2012,” it says.
Looking ahead, Thomlinson predicts another strong year despite “some uncertainty in the financial markets”.
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Strong Australian demand helps Knight Frank post profits up 10%

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The decision by the Macquarie group to sell its stake in the Charter Hall Office REIT to two sovereign funds shows the keenness of offshore investors for Australian commercial assets.
The investment bank pulled out a consortium bid it led to acquire the Charter Hall Office REIT after selling its stake in the trust to two sovereign funds that formed part of the consortium – the Canada’s Public Sector Pension Investments Board (PSP Investments) and Singapore’s GIC fund.
Both funds will inject an additional $100 million to acquire Macquarie’s share of the fund and take their investments to $400 million each, The Australian Financial Review reported.
According to Mark Wist, senior asset consultant at Atchison Consultants, the Australian market is appealing to offshore funds due to its “high yield structure, good market transparency, governance systems and the fact that it is well researched”.
In addition, while the Australian dollar has strengthened against many currencies, particurlarly the US dollar, which has “crushed” American investment, Wist points out that it has not be as strong against either the Canadian or Singapore dollar.
The decision by the two funds to up their stakes in the Charter Hall Office REIT follows Chinese conglomerate HNA Group’s purchase of 1 York Street for $117 million from Colonial First State and the Canada Pension Plan Investment Board paying $455 million for a half share of the Northland Shopping Centre in Melbourne.
The latest investments are small change for the two sovereign funds – GIC has more than $100 billion invested in global assets while PSP Investments has $55 billion of assets under management.
The consortium still has an offer on the table for the office trust after upping its bid earlier in October by 4¢ to $2.43 per unit, equating to a 7.6% discount to pro forma net tangible assets or a 4.9% discount to gross asset value as of June 30 2011.
It follows an August bid by the then Macquarie Capital Group-led consortium for the listed office trust of $2.39 per unit. This equates to $3.52 per unit when including the expected return from the sale of the trust’s US office portfolio to Beacon Capital Partners for $1.71 billion, which will conclude in May 2012.
The revised October bid includes an option to conclude the Australian sale before the US sale completes.
The Charter Hall Office REIT comprises 18 investment-grade office buildings in Australia, including flagship properties 1 Martin Place and the Citigroup Centre in the Sydney CBD, and was valued at $1.9 billion in its 2011 annual report.
Macquarie will remain an advisor to the consortium.
In July this year, the Charter Hall group won approval to continue to manage the Charter Hall Office A-REIT after unit holders voting overwhelmingly against a resolution for a management <a href="https://www.propertyobserver.com.au/news/proxy-votes-in-charter-hall-office-reit-battle-line-up-to-reject-takeover-proposal/2011072750930">takeover by a consortium of hedge funds.</a>
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Macquarie pulls out of consortium to bid for Charter Hall Office REIT

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The challenges facing the operators of hotels and resorts in regional markets have been highlighted in a speech today by Ric Battellino, deputy governor of the Reserve Bank. 
Speaking about the two-speed nature of the economy, Battelino told delegates at Citi's third annual Australian and New Zealand Investment Conference in Sydney that the increasing numbers of Australians heading overseas, rather than a drop in the number of foreign tourists, is hurting the tourism industry.
“Overseas trips by Australians are running about 60% higher than five years ago. Given the increase in overseas travel, it is not surprising that the traditional holiday destinations in Australia, such as the Gold Coast and North Queensland, are currently among the weaker parts of the Australian economy,” he said.
His comments come as a number of high-profile leisure assets in Queensland have been listed for sale, including 103-hectare <a href="https://www.propertyobserver.com.au/leisure/another-queensland-golf-course-for-sale/2011102351992" target="_blank">Noosa Springs development on the Gold Coast</a> and  <a target="_blank" href="https://www.propertyobserver.com.au/developments/offers-over-%2430-million-sought-for-austcorp-s-coomera-waters-gold-coast-development/2011101851986?source=flciker2">Austcorp Group’s masterplanned 476-hectare Coomera Waters development</a> on the Gold Coast.
Latest ABS figures show that Australians heading overseas outnumbered visitors by 181,000 in August, with 649,000 Australians headed overseas compared with 468,000 short-term visitors. Short-term departures are up nearly 11% compared with a year ago, while overseas visitor numbers are trending down 1% over the same period.
Battelino also noted that the commercial property sector was still dealing with the effects of over-gearing that occurred just before the GFC and would take some time to recover.
“In other sectors, such as commercial property, the weakness is mainly the result of investors and lenders having to deal with the consequences of over-gearing in the pre-2008 period,” he said.
“When too much borrowing and lending occurs, as it did in this sector, it can take many years for the excesses to be unwound. Some large adjustments have already taken place in the commercial property sector but the process probably still has further to run.”
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Aussies holidaying abroad hurting domestic hotel operators: RBA

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Lend Lease’s Australian Prime Property Fund has acquired the Cairns Central shopping centre in its entirety after paying $261 million to buy the 50% share held by joint owner Westfield.
Westfield’s half-share in the centre was valued at $225 million on a yield of 6% in its most recent annual accounts ending June 30, 2011.
The sale to Lend Lease will generate a healthy return for Westfield, which acquired its 50% interest in the centre in October 2006 for $160 million. Lend Lease bought its share in 2001.
The 52,725-square-metre, two-level centre was put up for sale by Westfield and Lend Lease earlier this year with a price tag in excess of $450 million. The sales campaign was run by Simon Rooney of Jones Lang LaSalle with Perpetual Trustees appointed to manage the process following a four-year dispute over management of the centre.
Major tenants of the mall include Myer, Target, Coles, BI-LO, a six-screen Birch, Carroll and Coyle cinema complex, along with JB Hi-Fi and 174 specialty shops.
The shopping centre attracts around 8.8 million visitors a year with speciality store turnover at $10,200 per square metre, higher than the average for regional shopping centres, The Australian Financial Review reports.
Besides Westfield, which bid for Lend Lease’s share of the mall, other bidders for the mall including QIC <a href="https://www.propertyobserver.com.au/queensland/amp-scouting-out-cairns-central-shopping-central/2011081651179" target="_blank">while AMP Capital Investors undertook a valuation and due diligence of the centre in August this year</a>.
The sale of Westfield’s share of the mall ends an unhappy partnership with Lend Lease – since 2007 the two companies have battled through the courts over management of the centre.
APPF’s property portfolio comprises interests in 15 shopping centres, with over 2,800 tenants and is valued at $3.7 billion. Assets include the recently upgraded MidCity centre on Pitt Street Mall in the Sydney CBD.
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Lend Lease buys Westfield's stake in Cairns Central shopping centre

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Apartment construction turnover is forecast to suffer a slump in the next 12 months before picking up again in 2012-13, according to the Australian Industry Group/Australian Constructors Association Construction Outlook survey for October. 
Turnover generated from the construction of new apartments grew by 2% for the 2010-11 year, but is forecast to fall by 1.2% over 2011-12 before picking up by 4.8% over 2012-13. 
Demand from the resource sector will drive the construction industry over the next two years, with engineering construction turnover forecast to increase by 13% in 2011-12 and by 14.2% in 2012-13, driven by mining investment and the strong pipeline of heavy industrial projects, led by oil and gas processing. 
Overall, the outlook for construction firms is increasing, with total turnover forecast to grow by 10.3% in 2011-12 and by 12% in 2012-13, nearly double the turnover growth of 6.3% achieved in 2010-11. 
The commercial construction sector is expected to gain momentum over the next two years, but activity will continue to lag engineering construction reflecting low levels of work in planning. 
The total value of commercial work is forecast to increase by a subdued 2.4% in 2011-12 but will pick by 6.2% in 2012-13, due mainly to a stronger impetus from private-sector investment. 
While noting the very strong outlook for engineering construction AIG chief executive Heather Ridout says it also shows that the broader building and construction industry still faces many challenges.
“Residential construction remains in the doldrums and while commercial construction shows welcome signs of life, prospects very much depend on the market segment and the location,” she says.
The report also finds that construction businesses are facing increased pressures in the procurement of building materials and capital equipment and, more significantly, worsening skill shortage bottlenecks. More than two-thirds of businesses (68.8%) reported either major or moderate difficulty in the recruitment of qualified labour during the six months to September 2011.
While expressing concerns at the procurement of building materials and finding skilled labour,  Australian Constructors Association president Peter Brech<a href="https://www.wwfax.com.au/mtcgi/tracklink3.php?x=0107ABEE.02E9D075&amp;href=http%3a%2f%2fwww.constructors.com.au%2fboard-member-peter-brecht">t</a> says the prospects for the industry are positive “underpinned by robust growth in engineering construction work and encouraging signs of recovery in the commercial construction sector”.
The survey undertaken over August and September covered the responses of 100 companies employing almost 74,000 people with combined turnover of almost $30 billion or approximately 30% of total industry activity.
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Apartment construction to slump in 2012: Industry survey

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The economic recovery in Queensland is flowing through into surging demand for office space in the Brisbane CBD, but a recovery for the weak Gold Coast market is still some way off, according to research by CBRE. 
Deloitte forecasts the Queensland economy to grow by an average of 5.3% between 2012 and 2106, driven by demand for commodities, nearly double the forecast growth rate of NSW (2.7%) and significantly higher than that forecast for the overall economy (3.4%). 
In line with this resurgence, the Brisbane CBD office market has tightened to levels last seen in 2009, with rebounding white-collar employment and demand for space from the resources sector shrinking the overall vacancy from 9.4% to 7.4% in the six months to July 2011. 
In the prime space, the vacancy rate stands at just 4%. 
Over the six months to July 2011, the net absorption of office space was over 36,000 square metres, with prime gross rents around $750 per square metre mark and secondary rents just under $500 per square metre. 
The vacancy rate is forecast to rise to 9.5% in the first half of 2012 as new stock comes on board, including GPT Group’s One One One Eagle Street, the 54-level premium-grade office tower on the Brisbane River, which will feature 64,000 square metres of office space. 
ANZ, Ernst and Young, and law firms Gadens and Norton Rose have precommitted to an aggregate of 30,000 square metres of space in the new building.
Another building due for completion next year, Leighton Properties’ 27-storey, 28,000-square-metre King George Central A-grade office tower at 145 Ann Street, is 85% pre-committed.
 <img src="/images/stories/cbreoct24.gif">
CBRE is forecasting rental growth of approximately 4.4% per annum in the prime market and 2.2% in the secondary market until 2016. 
“Substantial” demand for office space from the resources sector has caused the Brisbane vacancy rate to tighten far more quickly than previously anticipated, according to CBRE state director for office services David Prosser. 
“There has been a noticeable flight to quality, which has resulted in a contraction in vacancy rates for Brisbane’s prime CBD office space,” he says. 
“In addition, there is a limited amount of prime contiguous floor options immediately available which has resulted in some rental growth, albeit minimal, in some A-grade buildings.” 
The picture is decidedly less rosy as one heads down the M1 freeway, with nearly a quarter (22.4%) of Gold Coast office space vacant. 
According to CBRE senior associate director of global research and consulting Craig Godber, the Gold Coast is sitting “temporarily in the slow lane of the two-speed state recovery”. 
However, positive economic forecasts auger well for the medium-term outlook – particularly as there is limited new supply set to enter the market over the next few years. 
“Growth forecasts suggest a sharp rebound for the state economy in 2012 underpinned by a surge in business investment due to a rapidly expanding resources sector and the growth of white-collar employment,” Godber says. 
CBRE senior director of office services Tania Moore says strengthening of net absorption and the absence of new supply has provided an opportunity for a tightening in the vacancy cycle to begin. 
“The stabilisation of rentals and incentives is further evidence of the market’s solid fundamentals,” she says. 
“However, given the extent to which the Gold Coast office market has fallen, the path to recovery will continue to be gradual and staggered.” 
Some pockets of the market are recovering faster than others, led by Robina, the inland suburb about 16 kilometres west of Surfers Paradise underpinned by tenant demand and an easing vacancy rate. 
Robina is likely to be the only Gold Coast precinct to witness any significant supply additions in the short term. 
“While any new additions to the broader Gold Coast market still appear years away, unless pre-commitment driven, the Robina precinct may prove to be the exception,” Godber says. 
“The rapid tightening in the precinct’s vacancy rate could support new supply by as early as next year.”
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Brisbane office market surges ahead, leaving Gold Coast in the dust

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Aussie Home Loans founder and executive chairman John Symond is encouraging borrowers to fix at least a portion of the mortgage repayments after the mortgage broker became the latest lender to cut its fixed-rate product suite.
Aussie has cut its three-year fixed rate to 6.29% per annum, pointing out that this is “considerably lower than the average advertised standard variable rate of the four major lenders at 7.8%”.
It beats the three-year fixed rate of 6.48% <a target="_blank" href="https://www.propertyobserver.com.au/news/commonwealth-bank-cuts-fixed-home-loan-rates/2011080951090">being offered by the Commonwealth Bank</a>, which owns a third of Aussie.
According to mortgage comparison website Ratecity.com.au, Aussie (alongside AMP) now offers the third cheapest three-year fixed rate product behind Newcastle Permanent (5.99%) and Homestar Finance (6.25%).
Symond points out that the RBA would have to cut the cash rate six times (assuming cuts of 25 basis points) to bring it in line with its current fixed-rate offering and says the time is right for home owners to consider locking in at least part of their mortgage, as the current fixed rates are extremely competitive.
"Over the years I have advised people to stick with variable and pay off as much as you can in order to pay the loan off faster," he said. "However, with these competitive rates, it makes sense to lock away part of your loan as an insurance policy against global uncertainties," he adds.
"The cost of funding is quite high and while the current round of aggressive fixed rates may be good news for consumers, they may not last forever, so it pays to look at your home loan now," he says.
<table border="0" cellspacing="0" cellpadding="0" align="left" style="width: 470px;">
<thead><tr>
<td></td>
<td>
Aussie Optimizer Fixed Rate
</td>
<td>
Comparison Rate* Aussie Optimizer Fixed Rate Converting to Aussie Optimizer 
</td>
</tr></thead>
<tbody>
<tr>
<td>
1 year fixed
</td>
<td>
6.33%
</td>
<td>
7.65%
</td>
</tr>
<tr>
<td>
2 year fixed
</td>
<td>
6.39%
</td>
<td>
7.52%
</td>
</tr>
<tr>
<td>
3 year fixed
</td>
<td>
6.29%
</td>
<td>
7.37%
</td>
</tr>
<tr>
<td>
4 year fixed
</td>
<td>
6.59%
</td>
<td>
7.36%
</td>
</tr>
<tr>
<td>
5 year fixed
</td>
<td>
6.69%
</td>
<td>
7.31%
</td>
</tr>
</tbody>
</table>
 
 
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Now may be the time to fix your mortgage: John Symond

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As we look to what's ahead for 2012, Property Observer is republishing some of our most noteworthy stories of 2011.
 
Regional towns located close to major mining and resource projects have dominated a list of locations where house sales numbers are tracking significantly above the five-year average, according to analysis by RP Data.
<img src="/images/stories/rpchart.gif">
Top of the list is Port Hedland in the iron-ore rich Pilbara in the north of Western Australia, where the median house price is $775,000 and rental yields are averaging 13%.  RP Data recorded 61 home sales in Port Hedland during the June quarter, 22 more than the 39 houses that have changed hands on average every quarter over the past five years – a 56.5% increase.
Next on the list is Isaac in the Bowen Basin coal mining region of Queensland, where 133 houses were sold over the June quarter compared to five year average of 94 house sale while third spot is occupied by the Upper Hunter Shire in NSW’s Hunter Valley, a region synonymous with coal and natural gas extraction and where house sales are tracking 38% above the five year quarterly average.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/rpdataoct25large.gif"><img src="/images/stories/rpdataoct25.gif"></a>
 
At the other end of the spectrum, the list of regions where house sales numbers have plummeted the greatest include areas affected by flooding and coastal regions affected by a drop in demand for lifestyle properties.
It is headed by the Lockyer Valley in Queensland, a region afflicted by severe flooding from earlier in the year, where sales have fallen by more than half.
However, most prominent in this list is the third-placed Melbourne’s inner-city unit market, where transactions are down 48% compared with the five year average, with 665 sales recorded compared to a quarterly average over 1,200. RP Data says this fall may be attributable to the combined effects of a slowdown in the local market as well as lower overseas student numbers.
The list also includes a number of lifestyle markets along the Queensland coast such as Cairns, Whitsunday, Gold Coast, Cassowary Coast, Fraser Coast and Sunshine Coast, which RP Data says are all “prime examples of how the sea change has pretty much come to a standstill resulting in few transactions around these coastal regions”. Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/rpdataoct251large.gif"><img src="/images/stories/rpdataoct251.gif"></a>
“The results highlight how the multi-speed economy is influencing housing markets particularly from a resources and lifestyle market perspective,” RP Data says.
“How long these trends persist is anyone’s guess, however clearly the resource driven markets are intrinsically linked to commodity prices and resource demand while any improvement across the key lifestyle markets is dependent on uplift in buyer demand for holiday/retirement homes and improved prospects for a rental return and capital gain which may start to once again attract investors.”</body></html>

Investors strike it rich in mining towns but markets still dampened in flood-affected areas

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The growing demand among Australian commercial investors and developers for food-based retail shopping centres has been partly vindicated by a comprehensive European survey that has found that two-thirds of online shoppers are happy to purchase clothing and footwear without trying them on.
Only a third of the 10,000 European shoppers surveyed by CBRE described the “touch and feel” in-store experience as important or extremely important.
Furthermore, the survey found that clothing and footwear are among the internet’s fastest-growing retail categories, particularly among younger shoppers, who also use the internet to buy computer games and music.
Perhaps most telling for Australian fashion retailers, online-only fashion store ASOS is the UK’s fastest-growing retailer.
Overall, two-fifths of the 10,000 shoppers surveyed by CBRE between May and June 2011 in Great Britain, France, Germany, Sweden, Spain, Italy, Poland, Belgium, Hungary and Russia said they shopped online.
However, the survey also found that the physical store remains an essential part of the shopping experience, with 90% of people stating they visit shops to view products before buying online.
Recent research by Knight Frank forecast strong demand for food-based neighbourhood shopping centres in 2012 from private investors, unlisted property trusts and syndicates.
Following publication of annual results, <a target="_blank" href="https://www.propertyobserver.com.au/commercial/retail/stockland-plans-smaller-regional-shopping-centres-to-combat-online-threat/2011081051105">Stockland said its new shopping centres would have a higher proportion of food, leisure, retail services and entertainment offerings</a> following research that found that higher-end fashion is more exposed to online sales.
In its annual results <a target="_blank" href="https://www.propertyobserver.com.au/news/coles-and-woolies-help-mirvac-deliver-30-profit-increase/2011082351258">Mirvac revealed that Coles and Woolies accounting for a quarter of rental income</a> of it retail portfolio with fashion stores contributing a combined 19%.
Despite only canvassing the opinions of European shoppers, CBRE senior manager for retail services James McNeill says the results are likely to be closely monitored by Australian retailers, given the intense focus on the impact of online retailing.
“Although it’s clear that an online presence is now vital for any leading international brand, our research shows that the most successful retailers are those who understand how consumer channels such as online and in-store combine to create a truly multi-channel offering,” he says.
“A store supplemented with an online presence is the best of both worlds in most cases.”
In a recent report, Savills head of research Tony Crabb said shopping centres would need to follow retail strips and start offering products and services that could not be provided via the internet such as food vendors and hair salons.
Savills associate director of retail services Michael Di Carlo says retailers should also investigate the latest technological innovations such at the “multi-channel retailing concept”, which is now the norm in the US and Europe.
Such a multi-channel approach is being pushed by shopping centre giant Westfield, which revealed in its half-year results today that it has signed up 140 retailers to its westfield.com.au transactional site.
In western Europe the propensity to shop online correlates with wealth – 61% of higher earners shop online compared with 44% of lower earners, according to CBRE.
Men are leading the online shopping charge, the survey also found.
Photo courtesy of Tourism Victoria
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Food-based retail a safer investment as two-thirds of European fashion customers happy to shop online

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Commercial property investor sentiment in Australia (alongside New Zealand and Taiwan) has remained upbeat in tandem with a particurlarly positive outlook for the Pacific region, according to CBRE’s latest Investment ViewPoint report. 
With the Australian economy in good shape relative to other regions, the report says the country’s commercial property sector is “something of a safe haven for investors away from the instability currently affecting the United States and Europe”. 
“Barring any major shocks or other unforeseen events, the outlook for the next few months is positive and there is a strong pipeline of deals, particularly in Australia, Japan, Korea and Singapore,” says CBRE executive director of global research and consulting Kevin Stanley. 
The September report highlights a steady flow of transactions in Australia underpinned by sustained offshore buyer demand for quality office properties. 
Noteworthy transactions included the <a href="https://www.propertyobserver.com.au/office/chinese-investors-snap-up-sydney-office-tower-for-%24117-million/2011091351519" target="_blank">$117 million acquisition by Chinese multinational HNA Group of a 22-storey office building at 1 York Street</a>. 
HNA, whose core business is focused on air travel, logistics and financial services, has previously acquired property in New York. 
Rick Butler, CBRE senior managing director of international investments, says it remains to be seen if this deal will herald a significant pick-up in Chinese investment activity in Australia. 
“Whilst the deal is certainly an interesting one, it is not likely to mark the beginning of an immediate trend towards increased Chinese investment in Australian commercial property,” he says. 
While future investment from Chinese firms is uncertain, for the year to date offshore buyers have remained very active in Australia, accounting for $3.19 billion in deals – or 40% of commercial real estate transactions (the highest share in close to two decades). 
“Investors from overseas continue to seek exposure to the quality end of the office sector and Asian investors in particular are stepping up their presence,” Butler says. 
“Deals for a number of major office properties in Sydney and Melbourne have recently closed or are going through due diligence and the bulk of these involve a foreign buyer. Offshore groups are stealing the march on most domestic super funds and wholesale funds, which with a few exceptions have been inactive in recent months and are unlikely to enter the market until mid-2012.” 
The only exceptions to the positive outlook for Asia were Hong Kong and India, where the mood soured further during September, with investors becoming more risk-averse and demanding further discounts on property asking prices.
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Investor interest to remain strong for Australian commercial property: CBRE

<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.

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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.

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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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