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The battle to lock in fixed rate mortgage customers continues to heat up with online bank ING Direct reducing its three-year fixed-rate mortgage below the offerings of the major banks.
The online bank has cut its three-year fixed-rate home loan to 6.29%, below that of Westpac, St George as well as Greater Building Society and Credit Union Australia (CUA) who have all cut their fixed rates in the last seven days.
The bank has also cut its four- and five-year rates to 6.59% and 6.69% respectively.
ING Direct executive director of delivery Lisa Claes says the cuts are aimed at the bank maintaining its “competitive position in what is a very active market for fixed rate loans".
"Historically customers would need to pay a premium for a fixed loan. Currently that is not the case. We haven't seen such a difference between the variable rate and long-term fixed rates for some time.”
<a target="_blank" href="/news"> St George’s is offering its three-year fixed-rate mortgage at 6.39%</a>, while parent bank <a target="_blank" href="/news">Westpac is offering a rate of 6.44%</a>.
Commonwealth Bank’s three-year fixed rate stands at 6.59%, as does NAB’s online offering UBank.
<a target="_blank" href="/news">CUA is offering a rate of 6.34%</a> while the<a target="_blank" href="/news"> Greater is offering a three-year rate of 6.35%</a>.
The new ING Direct three-year fixed rate matches the rate offered on AMP Select Package Residential 3 Year Fixed, currently the cheapest fixed rate product offering according to comparison website <a target="_blank" href="/news">Ratecity.com.au</a>.
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lschlesinger-FZcF9M3vE6

ING slices fixed rates to undercut all competitors

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The Rockingham property market is not in distress, but showing some signs of struggle, according to recent sales data and observations from mortgage brokers and estate agents.
According to Moody’s latest mortgage delinquency report for post code 6168, comprising the suburbs of <a href="/news">Rockingham</a>, <a href="/news">Cooloongup</a>, <a href="/news">Garden Island</a>, <a href="/news">Hillman </a>and <a href="/news">Peron</a>, has a 30-day-plus mortgage delinquency rate of 5.31%, three times the national average of 1.67%.
Borrowers living in the post code are also the most heavily geared, with loan-to-value ratios of 86.5% on an average loan balance of about $172,000.
The neighbouring postcode 6167 (encompassing suburbs such as Bertram, Kwinana Beach and Parmelia) rated fifth with 5% of borrowers 30 days or more delinquent.
Joe Desousa, principal of Aussie Home Loans in Rockingham, says he has not noticed any higher rates of delinquencies and says refinancing work is easier than it has been for the last two years.
He says if the 5% arrears figure were for 90-day-plus delinquencies that would be cause for concern.
“A borrower being 30 days in arrears means they have missed just one payment, which could just be due a problem with a direct debit as happened with one of my clients today,” he tells Property Observer.
Val Pagett, a Mortgage Choice broker in Port Kennedy, Secret Harbour and Warnbro, has a different story to tell and says some borrowers are “struggling like crazy” due to falling property values at the lower end of town.
“People are getting into strife because when they try to consolidate their debts, they find the values of their homes have declined so they have no equity,” she says.
“Some homes in Rockingham and Warnbro have dropped $60,000 to $70,000 in value.”
According to Pagett, properties values are coming down by mortgagee sales in the area.
Realestate.com.au lists just under 2,000 properties for sale in postcode 6168, with five listed as mortgagee sales. A key word search using the word “reduced” brings up 65 listings.
Recent sales suggest houses and apartments located near the ocean have sold at or below their original listings prices.
According to RP Data a one-bedroom apartment on Rockingham Beach Road listed at $475,000 in early May sold two weeks later for $410,000.  It last sold in 2004 for $330,000.
A three-bedroom apartment on the same street sold for $940,000 in February having been listed for sale at $1.25 million in January 2009. It last sold for $745,000 in May 2004.
A little further away from the beach, a three-bedroom house on Seawind Drive sold for $447,500 in May just above its listing range of $445,000 to $465,000 in March 2010.
Land is also selling cheaply.
A 291-square-metre plot of land just one street from Cockburn Sound sold for $375,000 in April, having been listed in February for $425,000
James Eaves from the Mortgage Gallery in Rockingham says he was shocked to read about the high arrears rate.
He says many borrowers fly in and fly out of the area and earn healthy incomes working on the mines.
“It’s a blue-collar area, the average loan size is around the $400,000 mark,” he says.
According to Eaves, those in trouble might be borrowers who bought at the height of the boom and are trying to sell at the bottom of the market.
Estate agent Jim Baker from LJ Hooker Rockingham says from his point of view the market has not softened drastically.
“Properties in the right location, well presented and at the right price are moving. I have sold three this month,” he says.
He says the primary appeal of Rockingham is its beaches and recreational opportunities.
“Investors are popping their heads out,” he says, with demand for rental properties coming from the nearby naval base.
He also notes a lot of “fly in, fly out” renters who work in Port Headland but set their families up in Rockingham.
“Rents in Port Headland can be $1,000 a week. In Rockingham $400 gets you a three-bedroom house.”
Roger Moorhouse, co-owner of Fruit Property, describes the market as fairly “tight and tough” but says houses do sell if priced correctly. He has dealt with a few mortgagee sales but says they equate to less than 1% of sales and the percentage has not increased.
Recent figures suggest the WA market as a whole is struggling.
According to the latest WA Supreme Court statistics, there has been a 28% increase in the number of homes repossessed in the last financial year – 1,242, or more than three per day – compared with the same period a year ago.
A report by RP Data says recent property price declines have largely contributed to the state's high level of negative and low equity.
<a href="/news">Moody’s </a>does not provide 90-day-plus arrears data.
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The most delinquent town in Australia says it's not that bad

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The latest mortgage arrears report by Fitch suggests smaller lenders and non-banks are doing as good a job as the major banks in managing their mortgage risk. 
The Fitch Dinkum 30+ Days RMBS Index (the Dinkum 30+) decreased to 1.69% in the second quarter of 2011 (from 1.79% in the first quarter). 
Over the same period <a target="_blank" href="/news">Moody’s calculated the national mortgage delinquency rate for 30 days plus rose</a> from 1.36% to 1.67%, attributing this increase to weaknesses in the non-mining job sectors of the economy. 
Residential mortgage-backed securities (RMBS) are a means for lenders to raise funds by selling bundles of loans to investors.
Major RMBS issuers include FirstMac, Challenger, Macquarie Bank’s PUMA fund, Resimac and Liberty Financial.
The percentage of borrowers more than 30 days behind on their mortgage repayments decreased in the second quarter of the year but remains at historically high levels, according to the latest Fitch Dinkum Index.
The index measures the performance of mortgages backed by residential mortgage backed securities (RMBS) – a means of funding loans outside of bank deposits.
<img src="/images/stories/fitchsept27.gif">
The benchmark Fitch Dinkum 30+ Days RMBS Index (the Dinkum 30+) decreased to 1.69% in the second quarter of 2011 (from 1.79% in the first quarter).
The 0.1% decline was in line with forecasts, as the variables which negatively affected households during the first quarter of the year – increasing interest rates, natural disasters, seasonal spending – tailed off.
According to Fitch, 30+ days arrears have stabilised as a result of the RBA leaving the cash rate unchanged at 4.75% since November last year.
“The stable mortgage rates over the second quarter of 2011 have allowed households to slightly adjust to the challenges which hampered mortgage performance during the first quarter, such as increasing interest rates, natural disasters, and seasonal Christmas spending,” says James Zanesi, associate director in Fitch’s Structured Finance team.
“Mortgage performance is also expected to continue its stabilisation through the third quarter of 2011 as the effect of Christmas spending continues to pass through, borrowers affected by natural disasters in the first quarter continue to cure their delinquency status and households adjust their spending to the increases in mortgage rates over the last two years,” he adds.
The biggest threat to the performance of the mortgage market in the long term is the increasing cost of living, together with potentially higher levels of mortgage rates. 
Fitch believes the current unemployment rate is not a concern for arrears in 2011.
Other key findings over the second quarter of 2011:
<ul>
<li>Borrowers that take out low-doc loans, primarily those self-employed, employed) remain under pressure despite 30+ days delinquency rates decreased to 6.55% from 6.74% in the first quarter of the year. </li>
</ul>
<ul>
<li>Arrears rates for non-conforming borrowers low-doc borrowers (loans for borrowers with poor credit history) decreased by 1.05% to 15.83%. </li>
</ul>
<ul>
<li>The percentage of loans 30 to 59 days in arrears decreased by 8 basis points to 0.71%. Fitch expects this trend to continue, although eventual monetary policy decisions and the increased cost of living may potentially elevate mortgage arrears for longer. The percentage of loans 60-89 in arrears decreased to by 3 basis points to 0.31%.  As is the case for the Dinkum 30, the stabilisation of household expenditure has positively affected 60-89 days arrears. Fitch does not expect volatility in the 60-89 days delinquencies bucket in the long term. </li>
</ul>
<ul>
<li>The percentage of loans more than 90 days in arrears increased marginally (1 basis point) to 0.66% but is still below the 0.72% peak reached in December 2008 (following the liquidity crunch). In the current scenario of relatively flat house prices, a strong economy and stable employment, it is very unlikely 90+ days delinquencies will reach a new peak.</li>
</ul>
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Mortgage arrears high but stabilising: Fitch

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Credit Union Australia (CUA), the nation’s biggest customer-owned lender, has cut its three-year fixed-rate home loan rate by five basis points to 6.34%, bringing it under the four major banks. 
The CUA’s three-year fixed-rate home loan is now 31basis points lower than the average of the Big Four’s equivalent three-year fixed-rate home loan products. 
It was recently voted a top three favourite home in the Mozo People’s Choice Awards 2011. 
“Given the current uncertainty in the market, Australians looking for stability and security around their mortgage repayments may find fixing their loan for a longer-term period of three years a good option,” says Andrew Hadley, CUA’s group GM for strategy and marketing.
Comparing fixed-rate home loans
<table border="1" cellspacing="0" cellpadding="0" width="429"><tbody>
<tr>
<td width="34%">
 
</td>
<td width="33%">
3 Year Fixed Rate 
</td>
<td width="33%">
Comparison Rate 
</td>
</tr>
<tr>
<td width="34%">
CUA
</td>
<td width="33%">
6.34%
</td>
<td width="33%">
7.02%
</td>
</tr>
<tr>
<td width="34%">
ANZ
</td>
<td width="33%">
6.59%
</td>
<td width="33%">
7.52%
</td>
</tr>
<tr>
<td width="34%">
Westpac
</td>
<td width="33%">
6.64%*
</td>
<td width="33%">
7.63%*
</td>
</tr>
<tr>
<td width="34%">
NAB
</td>
<td width="33%">
6.64%
</td>
<td width="33%">
7.49%
</td>
</tr>
<tr>
<td width="34%">
CBA
</td>
<td width="33%">
6.74%
</td>
<td width="33%">
7.62%
</td>
</tr>
</tbody></table>
Source: CUA, correct as of September 29, 2011 *Non-packaged rate
<a target="_blank" href="/news">Westpac</a>, <a target="_blank" href="/news">St George</a> and <a target="_blank" href="/news">The Greater Union Society</a> also cut their fixed rates this week.</body></html>

CUA undercuts major banks with fixed rate cut

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St George Bank has joined the fixed-rate cutting party, trimming its rates for the fifth time in three months.
 
The bank has cut its three-year fixed home loan rate by 0.15 to 6.39% per annum as well as trimming its two-year fixed home loan rate by 0.05% to 6.39% for its Advantage Package customers. 
It follows parent bank <a href="/news">Westpac cutting its fixed rates </a>earlier this week. <a href="/news">The Greater Building Society </a>also cut its rates earlier this week.
St George Bank chief executive Rob Chapman says today’s decrease means the bank has cut its three-year fixed home loan rate by 0.9% per annum since it began cutting fixed rates in July this year. 
The Advantage Package includes a home loan, credit card, and transaction account. 
Chapman says a fixed rate mortgage offers “the reassurance of repayments locked in for a fixed period” 
According to RateCity’s Damian Smith <a href="/news">cashed-up banks will continue to cut fixed rates</a> in an effort to stimulate first home buyer interest and lock borrowers in for longer periods of time.
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St George joins Westpac in cutting fixed rates

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Ahead of the October Tax Forum, The Housing Industry Association has demanded drastic measures at both federal and state levels to cut housing taxes.



The industry body points to research by the Centre for International Economics that has found that residential building is the second most heavily taxed sector in Australia in relative terms (after retailing), with the average tax burden estimated at around 31% of the value of output compared with an economy-wide average of 24.4%.



New housing contributes more than twice as much in government taxation revenues (2.8%) as it does in value added to the economy (1.2%).



Sydney home buyers are feeling the brunt of the tax burden, paying an estimated 44% or $268,000 of the purchase price in taxes, followed by Melbourne buyers (38%, $184,000) and Brisbane (36%, $191,000) buyers. 
<img src="/images/stories/hiasept291.gif">
About 40% of the tax bill is made up of what the CIE classifies as “hidden and ambiguous taxes” including the “excessive portion” of infrastructure charges and the cost of meeting “overly stringent” minimum energy efficient ratings. 
Direct taxes – stamp duty, land taxes and GST – make up 28% of the tax bill while indirect taxes – taxes on resources: capital, labour and land – account for 32%. 
Stamp duty, which is levied at a state level, is deemed the most inefficient tax, according to the CIE report, which estimates that cutting stamp duty by $500 million would create a $738 million benefit to consumers and up to a $51 million benefit to producers.
<img src="/images/stories/hiasept292.gif">
Overall, the CIE report say policy action to remove or significantly housing taxes will “pay big dividends in terms of improved efficiency, faster growth and increased housing supply”. 
“It’s time to recognise and act on the fact that the tax burden on new housing in Australia is excessive,” says HIA managing director Shane Goodwin. 
“We’ve got to the point where the tax on a median new Sydney home is over $260,000, and it’s clear the type of impact this is having in terms of decreased affordability and constrained housing supply.” 
According to the HIA, the tax forum presents an opportunity for the Gillard government to put in place the foundation for a strong taxation reform agenda that will not only boost productivity and growth, but can help address policy issues such as Australia’s large and growing housing affordability problem.
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HIA demands tax relief for new housing ahead of tax summit

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Global hotel investor interest will be sparked following the announcement that Colonial First State Global Asset Management will sell the three five-star Marriott hotels in Sydney, Melbourne and Brisbane that comprise its unlisted Commonwealth Property Hotel Fund. 
The hotels that will be put on the block are the 28-storey Brisbane Marriott acquired in June 2000, located at the Northern End of Queen Street and comprising 267 rooms; the 34-storey Sydney Harbour Marriott at the northern end of Pitt Street acquired by the fund in April 2001 and comprising 550 rooms and the 186-room Melbourne Marriott on the corner of Exhibition and Lonsdale streets in the theatre precinct acquired in February 2001. 
The Sydney Harbour Marriott is the most valuable asset in the portfolio, comprising 58% of its value. 
A global marketing campaign exclusively led by Jones Lang LaSalle Hotels Craig Collins and Mark Durran will commence in early 2012. 
In late 2009, the fund sold the Surfers Paradise Marriott Resort &amp; Spa for about $75 million to Indonesia’s Rajawali Group. 
John van der Wallen, fund manager for Commonwealth Property Hotel Fund, says the proceeds from that sale were used to pay down debt and to fund “extensive refurbishment works to set the remaining hotels up for the sale process”. 
The fund spent $18 million refurbishing the Sydney Harbour Marriott and $10 million on the Melbourne Marriott. 
“Refurbishment works included upgrading room accommodation, telecommunication and internet systems in Sydney and Melbourne, upgrading restaurants and bars in Sydney and Brisbane, while the façade and entry to the Melbourne Marriott is currently being improved,” van der Wallen says. 
Van der Wallen says the sale of the hotels “is in line with the realisation strategy of the fund and will allow investors to recycle their capital”. 
Collins says investor interest in the hotels is strong: “The sale of this portfolio is one of the most anticipated offerings in the Australian hotel investment market for some years. Over the past six months we have been constantly asked by investors when these hotels are coming to market. The time has finally arrived.” 
Collins believes the sale of this portfolio will be of particular appeal to major global investors looking for large-scale acquisitions.</body></html>

Three CBD Marriott hotels up for sale

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Former Real Estate Institute of Australia president David Airey has been elected president of the Real Estate Institute of Western Australia for a term of two years. 
His appointment might help garner national media attention for WA agents operating in one of the toughest housing markets. 
In June Airey made front-page business headlines when he estimated that about 10,000 real estate agents – one in six – had quit the industry in the past year due to falling sales. 
According to the Australian Financial Review, nearly 1,000 agents quit the WA market over this time. 
Airey says he is looking forward to the challenge of promoting the services of REIWA agents to those people looking to buy or rent in a difficult market. 
“I have great faith in the long-term future of the housing market and in the skills of REIWA members when it comes to finding the right buyers and tenants for sellers and owners,” he says. 
Airey has served as REIWA’s deputy president since 2006 and been a member of the REIWA council since 2003 and will be supported by Ian Cornell as REIWA deputy president. 
He will replace outgoing president Alan Bourke, who has completed his two-year tenure. 
Bourke will remain on the REIWA Council serving the institute in a new role as chairman of the Institute’s Finance and Risk Management Committee.
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Former REIA president David Airey to lead REIWA

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Banks will continue to trim their fixed-rate mortgages, but by smaller margins, according to RateCity CEO Damian Smith. 
“There are more rate cuts to come, but in the absence of an RBA rate cut, it would be hard to see them coming down as fast as they have since the start of August,” he tells Property Observer. 
Smith says although banks won’t admit it, they are “awash with cash right now”. 
“Term deposit rates are declining far more than banks have budgeted for. They are looking to get this money off their books,” he says. 
Smith says banks are also trying to kick-start the first-home buyer market, which according to RateCity research is down $11 billion compared with 12 months ago. 
“Banks don’t have too many other tools available to them right now. They can’t cut variable rates because that will affect all customers and they don’t want to crazy on LVRs because they don’t want to take on bad customers,” he says. 
Furthermore, the ban on exit fees has made fixed-rate loans more attractive to lenders, as it allows them to lock borrowers in for a longer period of time. 
About 70% of lenders that RateCity compares on its website have cut their fixed rates, the most recent being <a target="_blank" href="/news">Westpac </a>and <a target="_blank" href="/news">The Greater Building Society</a>. 
On average the benchmark three-year fixed rate has fallen from about 7.28% to 6.7% 
RateCity’s fixed interest home loan rates over the past 12 months 
<div style="text-align: left;" align="center">
<table cellpadding="0" cellspacing="0" border="0" style="width: 470px;"><tbody>
<tr>
<td nowrap width="20%">
Date
</td>
<td nowrap width="30%">
Average 1-year fixed
</td>
<td nowrap width="24%">
Average 3-year fixed
</td>
</tr>
<tr>
<td nowrap width="20%">
October 2010
</td>
<td nowrap width="30%" style="text-align: center;">
6.97%
</td>
<td nowrap width="24%" style="text-align: center;">
7.40%
</td>
</tr>
<tr>
<td nowrap width="20%">
November 2010
</td>
<td nowrap width="30%">
7.03%
</td>
<td nowrap width="24%">
7.44%
</td>
</tr>
<tr>
<td nowrap width="20%">
December 2010
</td>
<td nowrap width="30%">
7.10%
</td>
<td nowrap width="24%">
7.43%
</td>
</tr>
<tr>
<td nowrap width="20%">
January 2011
</td>
<td nowrap width="30%">
7.10%
</td>
<td nowrap width="24%">
7.43%
</td>
</tr>
<tr>
<td nowrap width="20%">
February 2011
</td>
<td nowrap width="30%">
7.10%
</td>
<td nowrap width="24%">
7.45%
</td>
</tr>
<tr>
<td nowrap width="20%">
March 2011
</td>
<td nowrap width="30%">
7.10%
</td>
<td nowrap width="24%">
7.48%
</td>
</tr>
<tr>
<td nowrap width="20%">
April 2011
</td>
<td nowrap width="30%">
7.05%
</td>
<td nowrap width="24%">
7.38%
</td>
</tr>
<tr>
<td nowrap width="20%">
May 2011
</td>
<td nowrap width="30%">
7.09%
</td>
<td nowrap width="24%">
7.41%
</td>
</tr>
<tr>
<td nowrap width="20%">
June 2011
</td>
<td nowrap width="30%">
7.08%
</td>
<td nowrap width="24%">
7.42%
</td>
</tr>
<tr>
<td nowrap width="20%">
July 2011
</td>
<td nowrap width="30%">
7.09%
</td>
<td nowrap width="24%">
7.38%
</td>
</tr>
<tr>
<td nowrap width="20%">
August 2011
</td>
<td nowrap width="30%">
7.03%
</td>
<td nowrap width="24%">
7.28%
</td>
</tr>
<tr>
<td nowrap width="20%" style="text-align: center;">
September 2011
</td>
<td nowrap width="30%" style="text-align: center;">
6.69%
</td>
<td nowrap width="24%" style="text-align: center;">
6.70%
</td>
</tr>
</tbody></table>
</div>
The above rates were collected at the 1st of each month, except September 2011 figures, which are correct as at September 28. Source: RateCity.
 
Smith says the possibility of a rate cut by the RBA is now much stronger than it was six weeks ago.
Besides the advertised rate cuts, Smith also confirmed earlier reports that borrowers of good standing are able to negotiate discounts of more than 1% with some of the lenders.
“If someone like the CBA directly acquired a client, they could get their variable rate reduced from around 7.7% to something like 6.5%,” he says.
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Cashed-up banks will continue to cut fixed-rate mortgages: RateCity

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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.
 
The small town of Moranbah in northern Queensland is drawing investors from across Queensland and as far as Western Australia with rental yields of 15% as mining activity picks up after the January floods. 
Located along the Peak Downs Highway between Mackay and Clermont, in the resources-rich mining region of Isaac, Moranbah has experienced a rapid house price rise in the past year. According to RP Data, the Moranbah median house prices rose 5.2% over the past year to $463,000. 
According to RP Data, there have been 131 sales in <a target="_blank" title="Moranbah" href="/news">Moranbah </a>for the year to date, and of these 109 were house sales. 
Properties returning high rental yields include this three-bedroom house on Bernborough Avenue (pictured below), which sold in August for $585,000. It has been put in the rental pool asking $1,800 a week, representing a yield of 16%. It was marketed by Julie Williamson Real Estate as having a weekly rental potential of $1,400 per week.  The 900-square-metre block traded at $15,000 in 2004 when it sold by BHP Mitsui Coal.
<img src="/images/stories/moranbah1.jpg">
The most expensive property (below) sold this year was a contemporary four-bedroom house on Bernborough Avenue that was built on an 800-square-metre block of land that last traded for $72,600 in 2006. It had been listed for sale in 2008 at $799,000 and did not sell. In June, it sold for $840,000.
<img src="/images/stories/moranbahexxy.jpg">
On the same street, a three-bedroom fibro house built in 1982 that sold for $445,000 in 2009 was recently sold, having been listed at $590,000. 
According to the REIA, the resource-intensive regions of Isaac ($445,000) and Gladstone ($415,000) have showed the highest median house prices of any council region in the state outside of south-east Queensland and are on an equal footing with Brisbane, where the median price currently stands at $435,000 (a drop of 5.4% for the year). 
The major coal mining projects underway are the Goonyella and Peak Downs coal mines, operated by the BHP Billiton Mitsubishi Alliance (BMA) and Anglo Coal’s Moranbah North mines. 
Demand for rental accommodation and new residential developments has received a further boost with the Queensland government ruling earlier this month that it will require 80% of BMA employees across all operations live in the region where they work.
BMA will be required to build 400 homes, the first 160 to be built in Moranbah by June 2013, and the remaining 240 across the Bowen Basin over the following four years.
Infrastructure investment continues to pour into Moranbah with Leightons subsidiary John Holland recently selected as the preferred tenderer for the construction of the $400 million proposed Connors River Dam to Moranbah Pipeline.
The project involves the construction of 136 kilometres of large diameter buried pipeline that will carry around 45,000 megalitres of water per annum from the proposed Connors River Dam to the Bowen Basin and surrounding areas and help meet the water supply needs of the resources sector. John Holland is expected to be confirmed as principal contractor in March 2012.
Hotspotting.com.au director Terry Ryder tells Property Observer he does not generally recommend mining towns to property investors, “because they are at the high-risk end of the investment spectrum” but if he had to suggest a good case study it would be Moranbah. 
“It has had a remarkable track record of capital growth (averaging 28% per year over the past decade) and providing 9% to 10% rental returns. Moranbah managed to avoid any serious price decline post-GFC and is now trending up again with the new resources boom,” he says. 
Generally though, he warns that mining towns have volatile markets and are highly vulnerable to the cycles of the resources sector. 
“When the GFC struck, we saw vacancies in some mining towns go from zero to 10% almost overnight, as miners downsized or closed mines completely,” he says. 
Realestate.com.au lists 125 houses in Moranbah for sale starting at $520,000 for a three-bedroom house and 30 properties available to rent, with the asking price for a three-bedroom house at $1,500 per week. 
According to Bella Exposito from Moranbah Real Estate, who has worked in the area for 34 years, prices have really picked up since June. Her agency has 25 properties under contract, and her most recent sale was a three-bedroom house for $600,000. 
“This property would have sold for around $450,000 a year ago,” she says. 
Bella says 90% of the properties are rented by mining employees or contracted tradesmen, with mining companies footing the rental bill. 
She flies out regularly to meet with investors in Melbourne and Sydney and says demand is very strong. 
Another local agent, Roz Robinson, from LJ Hooker reports similar investor interest and “huge demand”. 
“We are selling some properties within 24 hours if not quicker. We have an extensive buyers’ list… There are a lot of investors from WA,” she says. 
Robinson attributes the demand to the mining activity and says while new land is being released for development, she expects it to be absorbed quickly and to have no impact on pricing. 
Earlier in June it was announced that a 104-hectare parcel of land would be fast-tracked to improve the supply of residential land and ease housing affordability in the township. The site is to be jointly developed by the Urban Land Development Authority and BHP with plans for 1,500 houses. 
Bill Moss, founder of the Midwood Report, says mining towns like Moranbah and Gladstone are seeing annual rental increases far greater than any other parts of Queensland, as much as 38% in some cases. 
“Coal mines have been resurrected after the January floods. Since they have restarted, a lot more people are coming back to mining towns,” he says. 
“From March onwards there has been a lot more demand for housing in the Bowen basin” – a 60,000-square-kilometre portion of Central Queensland that includes Moranbah, Clermont and Emerald. 
The Bowen Basin region:
<img src="/images/stories/moranbahmap.gif">
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Hotspots: Investors mine for yields of up to 16% in Moranbah

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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