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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.
 
Not content with being home to the premier football team in Australia, Geelong is also developing into an investment hotspot, with its more affordable house prices luring Melburnians willing to make the commute.
Geelong, which a population of about 180,000 people, is an hour’s drive or train ride from the Melbourne CBD but has median house prices significantly below those of its big-city neighbour.
The regional city has been picked as a hotspot by hotspotting.com.au’s Terry Ryder and is ranked 74th on Your Investment Property magazine’s Top 100 suburbs survey earlier this year.
Ryder tells Property Observer Geelong is a good long-term prospect for investors, and will get stronger.
“It has quite a lot to offer, and is viable alternative to Melbourne,” Ryder says.
“It is considerably cheaper. As a general rule of thumb, a house in Geelong is $100,000 cheaper than Melbourne. Land is also cheaper to buy.”
A ring road currently under construction will improve links to Melbourne, as will a $4 billion rail connection, also under way.
“There are also plans to upgrade Avalon to a second international airport and extends rail links from Melbourne to the airport,”Ryder says.
Currently, a peak express train from Railway Terrace, Geelong to Melbourne’s Southern Cross takes 53 minutes.
Other factors in its favour, according to Ryder, are its water-based lifestyle centred around the bay and surf beaches and strong job prospects.
Ryder says plans to relocate car import and export trade from the Port of Melbourne to the Port of Geelong will bring up to 1,500 jobs to the region.
And he says the success of footy team should also not be underestimated in terms of attracting people to the region.
“Having a team that wins does make a difference. It generates confidence in the community and has economic benefits, too,” he says.
Building activity appears to be picking up, with a total of 249 domestic new building permits issued in the City of Greater Geelong in June 2011, an increase of 35.3% on the previous month, according to the latest economic report for the region. 
House and unit prices in Geelong have performed well over the last 12 months, exceeding price growth in the Melbourne unit market and not far behind house price growth, according to Real Estate Institute of Australia’s June quarter figures. 
During the three-month period to June, 438 houses were sold, with a median price of $370,000. Cheaper houses are priced just above $300,000 while more expensive properties sell around the $480,000 mark
House prices are down 3.7% over the June quarter but for the year are up a 7.2%.
Over the same period, 69 units changed hands at a median price of $317,000.
Unit prices are up 8.7% over the June quarter and up 13.2% for the year to June.
How Geelong stacks up against Melbourne and other regional cities 
<table cellpadding="0" cellspacing="0" border="1" style="width: 470px;"><tbody>
<tr>
<td valign="top" width="93">
 
</td>
<td valign="top" width="92">
Distance to Melbourne
</td>
<td valign="top" width="86">
Median house price
</td>
<td valign="top" width="71">
Change over 12 months
</td>
<td valign="top" width="87">
Median unit price
</td>
<td valign="top" width="69">
Change over 12 months
</td>
</tr>
<tr>
<td valign="top" width="93">
Geelong
 
</td>
<td valign="top" width="92">
80 kms
 
</td>
<td valign="top" width="86">
$370,000
</td>
<td valign="top" width="71">
7.2%
</td>
<td valign="top" width="87">
$317,000
</td>
<td valign="top" width="69">
13.2%
</td>
</tr>
<tr>
<td valign="top" width="93">
Ballarat
 
</td>
<td valign="top" width="92">
120 kms
</td>
<td valign="top" width="86">
$289,000
</td>
<td valign="top" width="71">
24.4%
</td>
<td valign="top" width="87">
$230,000
</td>
<td valign="top" width="69">
26%
</td>
</tr>
<tr>
<td valign="top" width="93">
Bendigo
 
</td>
<td valign="top" width="92">
160 kms
 
</td>
<td valign="top" width="86">
$288,000
</td>
<td valign="top" width="71">
7.4%
</td>
<td valign="top" width="87">
$200,000
</td>
<td valign="top" width="69">
-21.6%
</td>
</tr>
<tr>
<td valign="top" width="93">
Melbourne
 
</td>
<td valign="top" width="92">
 
</td>
<td valign="top" width="86">
$590,000
</td>
<td valign="top" width="71">
9.3%
</td>
<td valign="top" width="87">
$475,000
</td>
<td valign="top" width="69">
8.1%
</td>
</tr>
</tbody></table>
Source: REIA market facts
According to the Victoria’s Department of Human services, the median rent on a one-bedroom flat in Geelong is $178 per week, compared with $155 a year ago, and a two-bedroom flat rents for a median of $260 (compared with $257 a year ago).
The REIA puts the median rent on a three-bedroom house at $300 per month, down 3.2% over the June quarter but up 7% for the year.
Four-bedroom houses rent for a median $380 a week, up 5.6% compared with the same quarter last year.
According to RP Data, median rental yields in Greater Geelong are just under 4%. In Geelong West, yields are around 4.4% (median sales price of $386,000) and in North Geelong yields are around 4.6% (median sales price of $314,000).
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lschlesinger-FZcF9M3vE6

Hotspot: Geelong's on the ball with rising yields 

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Charter Hall Retail REIT will continue to re-weight its shopping centre portfolio in favour of Australian shopping centres anchored by Coles and Woolworths following the release of annual results for the year to June 30, 2011.
Strong sales from anchor tenants Coles and Woolworths helped the REIT deliver profits of $62.9 million for the year off a portfolio valued at $1.93 billion.
Coles and Woolworths occupy 67% of gross lettable space in the REIT’s $1.4 billion Australia portfolio.
The annual report highlighted the resilience of its two key tenants, with the listed property trust reporting that Coles and Woolworths are among the top retailers in the world. Charter Hall says its weighting to the “non-discretionary food retail sector” underpins its Australian portfolio.
Charter Hall’s dependence on Coles and Woolies follows property developer Mirvac highlighting the role of the two supermarket groups played in propping up its retail portfolio in the last financial year.
In its 2011 annual results <a href="https://www.propertyobserver.com.au/news/coles-and-woolies-help-mirvac-deliver-30-profit-increase/2011082351258" target="_blank">the two supermarket groups accounted for a quarter of Mirvac’s total retail rental income</a>.
During the financial year, the Charter Hall retail trust increased its weighting in Australian properties and sold many of its offshore assets.
The trust will look to offload its remaining US and New Zealand properties over the course of the next financial year, with a medium-term strategy to exit Europe and invest further in Australian properties.
“With a portfolio of predominantly Australian shopping centres anchored by leading national supermarkets, I am confident we are well positioned to deliver defensive and resilient income and capital growth prospects for unit holders,” says chairman John Harkness.
Its Australian shopping centres performed slightly higher than expectations, with net operating income growth of 3.8% and occupancy rates of 98.8%.
The trust acquired 15 Australian shopping centres during the course of the financial year, including eight neighbourhood and regional shopping centres from Woolworths in a $266 million joint venture with Telstra Super.
The most expensive of these was the Gordon Shopping Centre on the Sydney North Shore, anchored by Woolworths and Harvey Norman and bought for $67 million, and the Albany Creek Shopping Centre, in the north-western suburbs of Brisbane bought for $40 million, anchored by Coles.
In total its 70 properties in Australia worth $1.4 billion make up 91% of Charter Hall’s net tangible assets.
The remaining 9% are made up seven shopping centres in Europe (Poland and Germany), 13 in the US and two in New Zealand.
Its total portfolio comprises 93 shopping centres (down from 138 following offshore divestments) covering gross lettable area of 695,000 square metres.
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Charter Hall has a taste for Coles and Woolies

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The Reserve Bank’s Monetary Policy Committee has left the cash rate unchanged at 4.75% for the 10th straight meeting.
It is now 11 months since the RBA last raised the cash rate. It raised the rate by 25 basis points to 4.75% in November 2010.
In his statement accompanying the decision, RBA governor Glenn Stevens said the board noted that “financial conditions have been easing somewhat, with interest rates for some housing and business loans declining slightly due to increased competition and the fall in some funding costs in financial markets”.
“The exchange rate has also declined from the very high levels of a few months ago. Credit growth remains low, however, and asset prices have declined,” he said.
Global factors continued to weigh on the mind of the RBA, Stevens said:
“Conditions in global financial markets have continued to be very unsettled, with uncertainty increasing about both the prospects for resolution of the sovereign debt and banking problems in Europe, and the outlook for global economic growth. While temporary impediments that had contributed to a slowing in growth in some countries over recent months are lessening, recent data suggest a continuing period of soft economic conditions in both Europe and the United States. Moreover, the uncertainty and financial volatility have reduced confidence, which could result in more cautious behaviour by firms and households in major countries,” Stevens said.
The decision was in line with a survey of 22 economists by Reuters, with all forecasting no rate change in October.
Four institutions, including Westpac, are tipping the cash rate to come down before the end of the year.
The dollar fell slightly, trading around the 95 US cents mark, 0.2% down on the day.
Laing + Simmons general manager Leanne Pilkington says she hopes the decision to leave rates on hold will continue to entice potential buyers to invest in the still-fragile property marketplace.
“The residential property market has been sluggish in recent months, to say the least,” she says.
“Uncertainty is understandable given the continuing instability of the Australian stock market, which has recently seen huge losses wiped from the value of shares, and the lingering unpredictability of US and Eurozone financial markets. Falling confidence has inevitably led to reduced spending and the underlying fear of another recession has everyone sitting on their hands.”
While she says there is still a strong case to be made for a cut in the official cash rate in the coming months, the decision to leave interest rates on hold does give a certain reprieve for those looking to enter the property market.
“A strong spring season will restore much-needed confidence in the housing market. Already there is evidence that it is being buoyed by a rush of [NSW] first-home buyers looking to get a foot in the door before the removal of stamp duty concessions on existing properties kicks in on December 31.”
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As expected, RBA leaves rates on hold

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Directors of the ASX-listed Investa Office Fund have decided not to exercise a call option to acquire a 50% interest in 242 Exhibition Street, a 42-storey office building in the Melbourne CBD.
The option was granted by the fund’s holding company Investa, Property Group, and expired at midnight on September 30, 2011.
Investa Property Group jointly owns 242 Exhibition Street in conjunction with the Investa Commercial Property Fund.
While the fund says the qualities and characteristics of the property are complementary with the strategy of “repositioning the portfolio to core Australian CBD office markets”, its immediate capital priorities are to execute the unit buyback and dispose of the offshore property assets, both of which it says are progressing well.
The Exhibition Street A-grade building is worth about $425 million.
It has 65,913 square metres of net lettable area and an average floor size of 1,400 square metres. The building’s major tenant is Telstra.
Investa Office Fund holds a $2.6 billion portfolio of investment grade office buildings in core CBD markets in Australia and selected offshore markets in the US and Europe.
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Investa Office Fund declines half-stake in Melbourne office building

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Construction of apartments looks set to pick up over spring following a big jump in non-house dwelling approvals in August, according to ABS estimates.
The seasonally adjusted estimate for private sector dwelling approvals excluding houses rose 35.1% to 5,829 dwellings in August following a rise of 0.4% in July.
The biggest increase occurred in NSW, with unit approvals up 45% over August, with a 19% increase in Queensland and a 17% rise in Tasmania.
There were smaller increases in Victoria (7%) and WA (5%).
Westpac says dwelling approvals were much stronger than expected in August "but are dominated by what are likely to be temporary boosts".
"Outside of these influences, conditions remain decidedly soft," the bank says.
It cautioned against reading too much into the "very sharp" spike in units saying this segment is "often very volatile as it includes large, 'lumpy' multi-unit high rise developments".
"Although the August rise was 'shared' across NSW, Victoria and Queensland, by far and away the biggest spike was in NSW where unit approvals more than doubled month-to-month to the highest reading since January 2003.
"Digging down into the detail, the rise was driven by 'high rise' apartments which saw an extraordinary 1,890 dwellings approved - the biggest reading since 2002."
"This is more than likely to be due to several very large projects passing approvals and as such is not a strong guide to underlying momentum, although these approvals will clearly still feed into actual building activity," the bank says.
The Housing Industry Association (HIA) described the August result as "solid" but expressed concern at continual slide of the "core detached housing sector" which is down 4.4% for the three months to August 2011.
According to HIA senior economist Andrew Harvey, this reflects the fact that"interest rates are too high and consumers are increasingly cautious given volatility in the global economy and weakness in the non-resource domestic economy".
With the $10,000 building boost for new houses kicking off in Queensland on August 1, private sector housing approvals increased by 16% over the month.
However, overall private sector new house approvals fell 1% in August 2011 to 7,547 houses, following a rise of 0.2% in the previous month.
Overall, dwelling approvals were up 11.4% on a seasonally adjusted basis following a rise of 1.8% in July.
The seasonally adjusted estimate for the value of total residential building rose 10.8% and the value of non-residential building rose 20.3%.
Overall, the value of total building approved rose 14.2% in August following a fall of 4.1% in July.
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New unit approvals up 35% in August: ABS

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The battle for fixed-rate borrowers continues with NAB cutting its one-, two- and three-year fixed rate mortgages.
The bank’s one year fixed-rate product has been cut by 15 basis points to 6.34%, bringing it under that of its major bank rivals but still higher than <a target="_blank" href="/news">Greater Building Society’s one-year rate</a>.
Commonwealth Bank’s one-year fixed rate is 6.38%, followed by ANZ on 6.39% and <a target="_blank" href="/news">Westpac on 6.49%</a>.
NAB has also cut its two-year and three-year fixed-rate products by 10 basis points to 6.39% and 6.34% respectively.
NAB’s rate cuts follow September figures put out by AFG showing <a target="_blank" href="/news">a big jump in fixed rate mortgages processed by its brokers</a>.
About 16.6% of all new home loans processed by AFG brokers in September were fixed-rate products, compared with 9.4% in August.
Yesterday, NAB’s head of business lending Joseph Healey claimed <a target="_blank" href="/news">the bank was feeling no ill effects from consistently cutting its mortgage rates.</a>
NAB executive general manager of consumer product solutions John Salamito points to the latest Reserve Bank of Australia figures that show that NAB continued to grow its home lending above average market growth for the 20th month in a row.
He also turned up the heat on its big four rivals.
“NAB has offered the lowest standard variable interest rate amongst the major banks for more than two years, as well as continuing to offer competitive fixed rates,” he says.
“Our latest adjustments to fixed rates reflect current markets and our commitment to offering customers competitive rates.”
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NAB undercuts big rivals on one-year fixed rates

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Property investors continue to come under heavy fire for distorting the housing market and exacerbating housing affordability problems as the Canberra Tax Forum gets under way today.
The latest to have a go at landlords is Sarah Toohey, campaign manager of lobbying group Australians for Affordable Housing, who says the current tax system allows investors to use their rental properties like an offshore bank account. Toohey is not attending the tax summit.
Toohey points the finger at negative gearing provisions, which she says “encourage investors to make a loss and reduce their tax payable”.
“Essentially it allows higher income earners to use rental housing as a tax shelter. It's the offshore account of the Australian tax system,” Toohey writes in an opinion piece for the ABC’s opinion website The Drum.
“If that wasn't enough, investors also get a 50% tax discount on any capital gain they make on the sale of the property. It means that any income gained through property appreciation gets taxed at half the rate of other income,” she adds.
Her complaint follows <a href="https://www.propertyobserver.com.au/residential/housing-academic-says-landed-gentry-destroying-fair-go/2011092851716" target="_blank">property investors being called the “landed gentry”</a> by Ian Winter, executive director at Australian Housing and Urban Research Institute and <a href="https://www.propertyobserver.com.au/tax/academic-calls-on-canberra-to-fix-housing-tax-mess/2011100251762" target="_blank">accused of being unfairly favoured under the current tax system</a> by Melbourne University’s Miranda Stewart.
Toohey says the insidious effect of these two tax breaks (negative gearing and capital gains) is felt when they work together.
“Tax deductibility encourages investors to borrow more than they can afford, because they're really borrowing to make a loss on the cost of running the property, in anticipation of a capital gain payoff.
“Because investors aren't constrained by what they can actually pay, they push up house prices, and get an unfair advantage over first-home buyers, indeed all home buyers, who can only spend what they're able to afford based on their income,” she says.
Toohey quotes ATO statistics for the 2008-09 financial year that show that landlords claimed a collective loss of $6.5 billion, while earning $24 billion in rent.
“These tax breaks go to people who need it least, generally existing home owners with some wealth to spare. They encourage investment in established housing at and do little to relieve the shortage of 493,000 rental properties that are affordable and available to people on low incomes,” she says.
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Property investors under fire as tax summit kicks off

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An auction of the next tranche of 7-Eleven convenience stores is expected to attract interest from private investors, particurlarly those with self-managed super funds. 
The 10 stores are all based in NSW within a roughly 80-kilometre radius from the Sydney CBD.
The Sydney auction is schedule for November 9 and is the third auction of 7-Eleven properties in New South Wales this year.  Previous auctions attracted yields of between 6% and 8%.
The stores, purchased as part of 7-Eleven’s acquisition of 250 retail sites from Mobil Retail in 2010, include service stations, convenience stores and customer parking.
All stores come with 15-year leases to 7-Eleven with three renewal options of five years each. 
They range in size from 1,200 square metres in Yagoona on the Hume Highway to a 4,300-square-metre site in Wilson Street in St Mary’s. 
The sale is being handled by John Macree, NSW head of sales and investments at Jones Lang LaSalle, who says prices and yields are expected to vary greatly given the different sizes.
 
Macree says the NSW portfolio will appeal to “self-funded retirees including those with self-managed super funds because of the stable long-term income stream and the banks’ willingness to offer attractive finance packages on these style of assets”. 
He says that following the success of the previous campaign, a number of prospective buyers had already been making enquiries. 
“The last auction attracted a number of keen bidders and we expect that some of those who missed out on an opportunity last time will be heading to the auction room again in November. This portfolio is attractive for a number of reasons including the quality of the tenant, long-term leases and prime locations,” he says. 
During a previous auction in July 12 out of 13 sites sold, with a 5,575-square-metre Hoppers Crossing site on the corner of Old Geelong and Heaths Road achieving the highest price of $3.49 million. 
The properties that will be up for auction in November include: 
<table cellpadding="0" cellspacing="0" border="1" style="width: 470px;"><tbody>
<tr>
<td valign="top" width="308">
Location
</td>
<td valign="top" width="308">
Site area (sqm)
</td>
</tr>
<tr>
<td valign="top" width="308">
Emu Plains, 126-128 Old Bathurst Road 
</td>
<td valign="top" width="308">
3,328 
</td>
</tr>
<tr>
<td valign="top" width="308">
St Mary’s, 2 Wilson Street 
</td>
<td valign="top" width="308">
4,328 
</td>
</tr>
<tr>
<td valign="top" width="308">
Gymea, 110 Gymea Bay Road and 353 President Avenue 
</td>
<td valign="top" width="308">
1,233 
</td>
</tr>
<tr>
<td valign="top" width="308">
Lindfield, 238-240 Pacific Highway 
</td>
<td valign="top" width="308">
1,708
 
</td>
</tr>
<tr>
<td valign="top" width="308">
Yagoona, 519 Hume Highway 
</td>
<td valign="top" width="308">
1,267
 
</td>
</tr>
<tr>
<td valign="top" width="308">
Ingleburn, 72 Cumberland Street 
</td>
<td valign="top" width="308">
1,728 
</td>
</tr>
<tr>
<td valign="top" width="308">
Ryde, 328 Blaxland Road 
</td>
<td valign="top" width="308">
2,093
</td>
</tr>
<tr>
<td valign="top" width="308">
Lansvale, 22-36 Hume Highway
</td>
<td valign="top" width="308">
4,874
</td>
</tr>
<tr>
<td valign="top" width="308">
Woolooware, 192-196 Kingsway
</td>
<td valign="top" width="308">
2,532
</td>
</tr>
<tr>
<td valign="top" width="308">
Turramurra, 1408 Pacific Highway
</td>
<td valign="top" width="308">
2,824
</td>
</tr>
</tbody></table>
The 7-Eleven company has 32% of the convenience retailer Eastern Seaboard market. The company generates approximately $3 billion in sales per year.
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Investor interest expected for 7-Eleven portfolio auction

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Five out of 20 economists surveyed by the Australian Financial Review expect the Reserve Bank to cut interest rates by the end of the year, while six tip rates to fall over the next six months. Five others expect rates to rise in the next six months.
The most popular six-month forecast (the view held by nine out of 20 economists) is for the RBA to leave its finger on the pause button.
In the previous AFR quarterly survey carried out at the end of June, only four out twenty economists (Westpac, St.George, Goldman Sachs and UBS) correctly predicted that rates would remain on hold at 4.75% with the majority of economists expecting a rate rise by now.
The economic barometer has shifted significantly over the past three months as the world economy lurched from one crisis to the next and the outlook for the US and the Eurozone remains unstable and uncertain.
Looking ahead to March next year, Shane Oliver, AMP’s head of investment strategy, is tipping the greatest fall in the cash rate by 75 basis points to 4% by while at the opposite end of the scale HSBC’s chief economist Paul Bloxham expects the cash rate to rise by 25 basis points to 5% over this period.
Oliver forecasts GDP growth of just 1.5% for the 2011 calendar year and 3.2% for the 2012 calendar year.
Four economists, including Westpac’s chief economist Bill Evans expects the cash rate to sit at 4.25% by March next year.
<table border="1" cellpadding="0" cellspacing="0"><tbody>
<tr>
<td valign="top" width="205">
Economist
</td>
<td valign="top" width="205">
3 month forecast
</td>
<td valign="top" width="205">
6 month forecast
</td>
</tr>
<tr>
<td valign="top" width="205">
Shane Oliver, AMP
</td>
<td valign="top" width="205">
4.5%
</td>
<td valign="top" width="205">
4%
</td>
</tr>
<tr>
<td valign="top" width="205">
Warren Hogan, ANZ
</td>
<td valign="top" width="205">
4.75%
</td>
<td valign="top" width="205">
4.75%
</td>
</tr>
<tr>
<td valign="top" width="205">
John Honan, Ausbil Dexia
</td>
<td valign="top" width="205">
4.75%
</td>
<td valign="top" width="205">
4.75%
</td>
</tr>
<tr>
<td valign="top" width="205">
Gavin Stacey, Barclays Capital
</td>
<td valign="top" width="205">
4.75%
</td>
<td valign="top" width="205">
5%
</td>
</tr>
<tr>
<td valign="top" width="205">
Dominic Bryant, BNP Parabis
</td>
<td valign="top" width="205">
4.5%
</td>
<td valign="top" width="205">
4.25%
</td>
</tr>
<tr>
<td valign="top" width="205">
James McIntyre, CBA
</td>
<td valign="top" width="205">
4.75%
</td>
<td valign="top" width="205">
5%
</td>
</tr>
<tr>
<td valign="top" width="205">
Joshua Williamson, Citigroup
</td>
<td valign="top" width="205">
4.75%
</td>
<td valign="top" width="205">
4.75%
</td>
</tr>
<tr>
<td valign="top" width="205">
Adam Boyton, Deutsche Bank
</td>
<td valign="top" width="205">
4.5%
</td>
<td valign="top" width="205">
4.25%
</td>
</tr>
<tr>
<td valign="top" width="205">
David Bassanese, Fin review
</td>
<td valign="top" width="205">
4.5%
</td>
<td valign="top" width="205">
4.25%
</td>
</tr>
<tr>
<td valign="top" width="205">
Paul Bloxham, HSBC
</td>
<td valign="top" width="205">
4.75%
</td>
<td valign="top" width="205">
5%
</td>
</tr>
<tr>
<td valign="top" width="205">
Stephen Walters, JP Morgan
</td>
<td valign="top" width="205">
4.75%
</td>
<td valign="top" width="205">
4.75%
</td>
</tr>
<tr>
<td valign="top" width="205">
Richard Gibbs, Macquarie Grp
</td>
<td valign="top" width="205">
4.75%
</td>
<td valign="top" width="205">
4.5%
</td>
</tr>
<tr>
<td valign="top" width="205">
Alan Oster, NAB
</td>
<td valign="top" width="205">
4.75%
</td>
<td valign="top" width="205">
4.75%
</td>
</tr>
<tr>
<td valign="top" width="205">
Stephen Roberts
</td>
<td valign="top" width="205">
4.75%
</td>
<td valign="top" width="205">
5%
</td>
</tr>
<tr>
<td valign="top" width="205">
Su-Lin Ong, RBC Capital Mkts
</td>
<td valign="top" width="205">
4.75%
</td>
<td valign="top" width="205">
4.75%
</td>
</tr>
<tr>
<td valign="top" width="205">
Felicity Emmett, RBS
</td>
<td valign="top" width="205">
4.75%
</td>
<td valign="top" width="205">
5%
</td>
</tr>
<tr>
<td valign="top" width="205">
Besa Deda, St.George Bank
</td>
<td valign="top" width="205">
4.75%
</td>
<td valign="top" width="205">
4.75%
</td>
</tr>
<tr>
<td valign="top" width="205">
Roland Randall, TD Securities
</td>
<td valign="top" width="205">
4.75%
</td>
<td valign="top" width="205">
4.75%
</td>
</tr>
<tr>
<td valign="top" width="205">
Scott Haslem, UBS
</td>
<td valign="top" width="205">
4.75%
</td>
<td valign="top" width="205">
4.75%
</td>
</tr>
<tr>
<td valign="top" width="205">
Bill Evans, Westpac
</td>
<td valign="top" width="205">
4.5%
</td>
<td valign="top" width="205">
4.25%
</td>
</tr>
</tbody></table>
The range of six month-forecasts highlights the “very usual, set of complex forces” shaping the Australian economy mentioned by RBA governor Glenn Stevens in a recent speech.
Evans’ predictions of two rate cuts by March 2012 come with forecasts of low GDP growth of just 1.2% for the 2011 calendar year and 3.6% for the 2012 calendar year on the back of “underperforming housing”
Optimistic forecasters include Nomura’s Stephen Roberts and Roland Randall from TD Securities, who expect the economy to grow by 4.6% during the 2012 calendar year.
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Economists divided on six-month rates forecast

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Cairns is still attracting its fair share of lifestyle migrants, albeit at a slower rate than before, but the number of economic migrants has diminished, according to the October Month in Review report from Herron Todd White.
“People relocating to Cairns tend to fall into two classes – the lifestyle and the economic migrants,” the report says.
“With the slowdown in the Cairns economy, the economic migration component, consisting largely of young singles or young couples or young families moving to Cairns for employment reasons, has diminished,” the Cairns office of Herron Todd White says.
According to the report, recent lifestyle migrants are typically the “pre-retirement empty-nester demographic, looking for a nice place to live but with opportunities for full- or part-time work if required”.
“Indeed, cashed-up lifestyle migrants who have sold up in Sydney or Melbourne to move to Cairns are like gold in the current market environment.”
According to the Cairns office market observations, lifestyle migrants are demanding a variety of accommodation styles, “some buying up big as if expecting to be constantly descended upon by the friends and relatives they have left behind, while others are seeking well-located unit accommodation with good amenities”.
The northern beaches are often a preferred destination, the report says.
The latest report puts the Cairns residential property market at the bottom of the property cycle and says it is still “very much a buyer’s market”, with property demand from investors and first-home buyers weak and the market for low-end housing slow.
“Demand for better-quality houses and units in good locations remains solid, largely sustained on the basis of the trade-up buyer segment,” it says.
“There are two types of trade-up buyer: existing locals trading up (or down or sideways) in response to changing circumstances and/or preferences, and people relocating to Cairns.”
“Locals are also active in the trade-up market, but the catch with this segment is selling their existing home. We often hear of sales that fall through because buyers are unable to sell their existing house in the presently slow market environment.”
Two recent reports have highlighted the struggles facing the Cairns market.
The Moody’s mortgage delinquency report highlighted the <a href="/news">tourist regions of far north Queensland, Sunshine Coast and Gold Coast as having performed very poorly over the June quarter</a>, with delinquencies of 2.59%, 2.68%, and 3.11% respectively.
Similarly, the RP Data Equity Report says far north Queensland <a href="https://www.propertyobserver.com.au/residential/queensland-hit-hardest-post-gfc-as-6.3-of-homes-worth-less-than-their-purchase-price/2011092851719" target="_blank">has recorded the greatest proportion of properties in a negative equity position</a>, at 13.5% of all homes.
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Cairns still attracting lifestyle buyers, as tide  goes out on economic migration

Sydney developer&nbsp;<a href="https://www.apartments.com.au/developers/central-element">Central Element</a>&nbsp;is doubling down in Drummoyne, lodging plans for a boutique apartment development on St Georges Crescent, only one-kilometre down the road from its first Drummoyne development, Bianca.

The new project at 15A-21 St Georges Crescent,&nbsp;a&nbsp;1,701sqm north-facing site overlooking Iron Cove, will have 45 apartmnts across 10 levels. Eight of the units will be dedicated to affordable housing.

The site sits within walking distance of Drummoyne Village, Birkenhead Point, ferry services and the Bay Run, and offers harbour views towards the Sydney Harbour Bridge and CBD skyline.

Designed by MHN Design Union, the development will deliver a mix of one, two and three-bedroom apartments, alongside resident amenity including a gym, landscaped communal open space and three levels of basement parking.

The project has been lodged under the NSW Government's Low and Mid-Rise Housing reforms, with Drummoyne Village identified as a town centre capable of accommodating additional housing supply.

Central Element acquired the site earlier this year as part of its continued expansion across Sydney's eastern suburbs, lower north shore and inner west.

The developer's current pipeline includes luxury apartment projects Pearl Bondi and a separate development on Lamrock Avenue in Bondi, a residential project in Barry Street, Neutral Bay, and a mixed-use seniors living community in Greenwich.

Central Element Managing Director Nathan Chivas said the project would address a shortage of new owner-occupier housing opportunities in Drummoyne.

"While we're seeing a significant shift across Canada Bay as major infrastructure investment, population growth and planning reform drive a new chapter for the region, in suburbs like Drummoyne there remains a genuine shortage of new boutique luxury housing opportunities for owner occupiers," Chivas said.

"Sites of this nature are increasingly difficult to secure, particularly those that combine a north-facing aspect with direct water outlook. Our St Georges Crescent project responds directly to the market demand, offering a level of exclusivity, outlook and lifestyle in the highly sought after suburb."

The development application has been lodged with the City of Canada Bay Council, with the project expected to launch to market in early 2027.

&nbsp;

Joel Robinson

Central Element seeks second Drummoyne apartment development

The NSW Government has unveiled plans that could deliver around 1,300 new homes across Nowra and Kiama, continuing its push to unlock housing in well-located regional centres along the South Coast.

The proposals, now on public exhibition, would pave the way for around 830 homes in Nowra and a further 450 homes in Kiama, while also introducing affordable housing requirements and increased building heights in key locations.

The larger of the two proposals is centred on Nowra, where the NSW Government is seeking to rezone land within the Mandalay and Riverfront precincts.

The Mandalay sub-precinct, located close to Shoalhaven Memorial Hospital, Nowra Library and the city's aquatic centre, could accommodate around 530 new homes. Around 30 per cent of housing delivered on Homes NSW-owned land would be dedicated to social and affordable housing, equating to roughly 100 homes. Building heights would increase from the current two-storey limit to between three and six storeys.

A separate rezoning proposal for the Nowra Riverfront Precinct would unlock a further 377 homes while creating stronger connections between the Shoalhaven River and the CBD. The plans include building heights ranging from five to 12 storeys, floor space ratios of up to 2:1 and a requirement for two per cent affordable housing.

Together, the two proposals would deliver more than 900 homes across the broader Nowra area, reinforcing the city's role as one of regional NSW's key growth centres.

The housing push builds on previous infrastructure commitments in the Shoalhaven, including government funding aimed at supporting thousands of future homes in West Nowra through upgrades to water and wastewater infrastructure.

Further north, the NSW Government is also progressing plans for the former Kiama Depot site, a two-hectare parcel near Kiama's town centre.

The rezoning proposal would transform the former industrial site into a residential community capable of delivering up to 450 homes. Buildings would range between six and eight storeys, with at least 10 per cent of homes allocated as affordable housing. The proposal also includes approximately 600 parking spaces and improved walking and cycling connections.

Planning Minister Paul Scully said the proposals are designed to increase housing supply in locations close to jobs, transport and services.

"For too long, families have struggled to find somewhere to live, and activating underutilised sites allows us to deliver the new homes these families need," Scully said.

"The Minns Labor Government is getting on with the job of unlocking well-located sites close to transport, jobs, and town centres and building the homes our communities need.

"These rezonings are about removing barriers to housing delivery and making sure land is put to better use so more people can find a place to call home within the communities they choose."

The latest rezonings form part of the Minns Government's broader strategy to accelerate housing delivery across NSW, particularly in established centres where existing infrastructure can support additional population growth.

Community consultation on the proposals is now underway, with feedback set to inform the final planning controls before the rezonings are determined.

Around 1,300 new homes earmarked for Nowra and Kiama as NSW Government pushes housing supply

<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]

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.

Larry Schlesinger

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