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Westpac is forecasting consumer spending growth to slow to below 2% for the four quarters to June 2012, which the bank says makes the case for a rate cut even stronger. 
Along with “anaemic credit growth of 3% and modest falls in house prices it seems clear that interest rates are well into the contractionary zone,” writes the bank’s chief economist Bill Evans in the September Coast-to-Coast report. 
“With global growth prospects deteriorating there is a strong case for lower interest rates. That will provide a circuit breaker for the current slowing and help moderate the impact on the economy of the global downturn,” he says. 
Since July Westpac has been forecasting interest rates to be cut by 25 basis points by December and to fall by a total of 100 basis points over a 12-month period.
 <img src="/images/stories/westpacsept27.gif">
Source: Westpac
Evans says the Reserve Bank has acknowledged the need to revise down its “very optimistic growth forecasts” released in August but has not recognised the need for lower interest rates. 
“It seems clear to us that the Australian economy has entered a difficult period where domestic prospects are deteriorating; labour markets are weakening; and dismal news abroad will weigh further on confidence,” Evans says. 
Westpac has a more pessimistic outlook on the Australian economy than the RBA. 
The bank is forecasting Australian GDP growth to average 1.2% for 2011 and 2.5% for 2012, compared with the central bank’s forecasts of 2% for this year and 4.5% for 2012. 
The report also highlights a “loss of confidence amongst consumers and business” with a downturn in the labour market and private business conditions softening. 
“[These] will weigh on household income growth and reinforce recent consumer concerns about their job security. In this environment consumer spending is set to revert to the sub–par pace that has been evident for much of the time since the global downturn,” Evans says.
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Slowing spending makes rate cut more likely: Bill Evans

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Property group Dexus will look to acquire CBD office assets in the forthcoming financial year and has positive overall market outlook, according to its 2010-11 annual results. 
The group’s office portfolio, which comprises 60% of its $7.5 billion property book, delivered a return of 9% while its Australian industrial assets, which account for almost a quarter of its portfolio, returned 9.4%. 
Overall Dexus delivered a net profit of $553 million, an increase of $521.6 million on the previous year. 
In his CEO report, Victor Antink says he expects property markets will continue to recover in 2012. 
The Australian office market experienced 12 months of “above-average demand across all major markets driven by a strong domestic economy and robust employment growth,” the results show. 
During this period national vacancy rates continued a downward trend, with CBD vacancy hitting 7.6%. 
Nearly two-thirds of its office assets (65%) are held in Sydney, followed by Melbourne (14%), Perth (10%) and Brisbane (8%). 
The group completed 113 leasing transactions covering approximately 74,240 square metres of space during the year, providing increases in average rental income of 4.6% and a stable average lease duration of 5.3 years. 
“Vacancy is expected to remain relatively steady with below-average supply coming online over the next two years. We have seen increases in tenant enquiry over the year, particularly in Perth,” the report says. 
In Sydney, Dexus reported that international tenants, which make up a large proportion of the financial services and investment banking presence in the CBD, remain cautious and continue to delay relocation decisions – “due to continued uncertainty in the global economic markets”. 
During the year, Dexus completed <a href="https://www.propertyobserver.com.au/new-south-wales/prime-minister-julia-gillard-seeks-new-sydney-office-digs/2011081751191" title="Julia Gillard looks for new office digs" target="_blank">1 Bligh Street tower in Sydney</a> with Clayton Utz signing on as the major tenant, taking up the lower 15 floors of the 29-storey building. The Commonweath government is considering moving its NSW office to the building.
The $667 million development (Dexus share $227 million) is forecast to deliver a fully leased yield on cost of 7% and is currently 55% leased.
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Dexus looks for CBD office space in improving market

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Household savings rates are at levels last seen in the mid-1980s as more borrowers look to pay off their mortgage debt sooner, the RBA says. 
After trending up since the mid-2000s, the household saving rate rose further over the past year, reaching 10.5% of disposable income in the June 2011 quarter, according to the RBA’s latest Financial Stability Review.
<img src="/images/stories/savings.gif"> 
Over this time, many borrowers have continued to make “substantial excess principal repayments, even as higher interest rates have raised required interest – and thus total – repayments”.
<img src="/images/stories/housingequity.gif">
“The average excess repayment is currently equivalent to around three-quarters of the scheduled total (principal plus interest) repayment. Consistent with this tendency to pay debt ahead of schedule, surveys have shown that a high share of households consider repaying debt to be the wisest place for savings,” the RBA says. 
“Households that make excess repayments on their home loans generally build up buffers that they can draw down in the future if required. This should be regarded as a positive development for the resilience of the sector.”
<img src="/images/stories/mortgagerepayments.gif">
The RBA noted a substantial slowdown in the pace of household credit growth declining 4.5% in annualised terms over the six months to July.
Annualised growth in housing credit eased from 6.7% over the six months to January 2011 to 5.2% over the six months to July 2011. 
Growth rates of both owner-occupier and investor housing debt have moderated so far this year. The flow of new borrowing has also moderated, with the value of monthly housing loan approvals.
 
The RBA says recent surveys suggest the uptick in mortgage refinancing since early 2011 reflects households switching to cheaper loans – amid increased competition in the mortgage market – and consolidating debt, rather than taking out larger loans. As debt accumulation has slowed in recent years, the rate of housing equity injection has increased. 
Besides making excess mortgage repayments, net repayments on credit cards have picked up in recent months.
<img src="/images/stories/debtbytype.gif">
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Households saving like it's 1985

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Despite an overall increase in mortgage arrears rates over the first half of 2011, Australian households are coping well with current debt levels, says the RBA.
After broadly levelling out in 2010, mortgage arrears rates resumed their upward drift over the first half of 2011, the central bank reported in its Financial Stability Review.
By loan value, the share of non-performing housing loans on banks’ balance sheets increased to 0.8% in June, from 0.7% in December 2010.
The upward movement was also evident in the monthly data on securitised housing loans, with the 90+ day prime arrears rate up about 12 basis points over the same period, to 0.7%.
<img src="/images/stories/nonperformingloans.gif">
But the bank says mortgage arrears are “still low by international standards, and the bulk of housing loans in arrears are well collateralised,” the RBA says.
According to the RBA mortgage arrears are unlikely to rise as much as they have in some other countries, where arrears have risen sharply due to high unemployment or “an excessive easing in lending standards in earlier housing price booms”. 
Seven key reasons for Australian households’ arrears resilience can be extrapolated from the RBA review:
<ol>
<li>Housing prices in Australia did not grow especially rapidly in most parts of the country in the period since 2004, although Queensland and Western Australia were exceptions at various stages. </li>
<li>The decline in housing prices recently has been modest compared with the sharp downturns seen in some cases overseas. </li>
<li>Even before their tightening in 2009, lending standards in Australia had not eased as much as in some other countries. </li>
<li>The near-absence of sub-prime housing loans in Australia relative to the US.</li>
<li>Australian lenders also assess mortgage serviceability at higher interest rates than those prevailing at origination, a practice not always followed overseas. </li>
<li>A large share of mortgage borrowers in Australia make excess repayments. This increases the resilience of households to shocks, relative to countries where it is less common to do so. As well as providing a cushion against changes in borrowers’ financial circumstances, excess repayments increase the distance between the remaining loan balance and a property value that could be lower in the future, making negative equity positions less likely. </li>
<li>The labour market in Australia is in better shape than in many other countries, and its prospects are also more favourable given the macroeconomic outlook.</li>
</ol>
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Seven reasons households are well placed to deal with mortgage stress: RBA

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The recent financial turmoil appears to have played most heavily on the minds of first-home owners, according to a new survey commissioned by Mortgage Choice.
Two-thirds of first-home owners reported increasing their savings over late August and early September – soon after global share markets dived over overseas debt fears – the 2011 Saving &amp; Spending Insights Survey found.
Investors were not far behind when it came to saving for future unforeseen circumstances, with 63% creating a bigger buffer followed 57% of home buyers and 56% of “investor/home buyers”.
Overall, 83% of the 1,009 mortgage holders surveyed said they had saved money in the past year, with repaying the mortgage more quickly (45% of respondents) the second biggest reason after saving for a holiday (53%).
More than a third (37%) said they were saving for unexpected changes to their finances.
The survey found that a quarter of respondents were putting aside more than 20% of their after-tax income, almost double the current household savings rate of around 10.5%.
“It’s uplifting to see that despite facing a hefty interest rate increase last November, rising living costs and a flood levy, the vast majority of Australians with a mortgage managed to save money over the past 12 months in addition to meeting their repayments,” says Mortgage Choice spokeswoman Kristy Sheppard.
“Recent turbulence in financial markets is clearly influencing borrower attitudes to saving, but although they recognise the need to save for a rainy day, letting their hair down with some time away from work is even more important.”
Remarkably, about 34% of borrowers do not know their interest rate, with first homeowners the most likely to not know (39%).
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First-home owners inspired to save by economic turmoil: Mortgage Choice

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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.
January 2012 update: All three businesses and associated properties mentioned below remain up for sale, according to online business for sale listings.
An original colonial-style manor house and accompanying boutique hotel business in the Port of Strahan in Tasmania is up for sale and expected to sell at a significant discount to its valuation.
Franklin Manor is rich in colonial heritage and village charm. It was built in 1896 and is the original residence of the Strahan harbour master, Captain Edward T. Miles, who named it Moana.
Miles was sacked after attempting to secure a tender for construction of the harbour breakwater for his son, but later rose to the position of state minister for public works.
The property as well as the hotel business is being sold by John Blacklow from Knight Frank Tasmania. 
Blacklow tells Property Observer he expects the freehold property and business to sell for “well under” the $1,715,000 million government valuation. 
“We had a written offer for the property in 2007 for $2.3 million, so that shows you the capability,” he says. 
Franklin Manor is built on 9,652 square metres of land and was totally restored in 1989. 
It includes 14 suites, lounge, sitting room, function room, licensed restaurant, honour bar, underground wine cellar, separate managers’ residence and staff quarters known as “The Stables” (comprising four units). 
Strahan is on the northern end of Macquarie Harbour and has about 700 residents. 
It is one of the most visited tourist destinations in the state after Port Arthur and Cradle Mountain. 
Its key attractions are wilderness cruises down the Gordon River and the West Coast Wilderness steam railway, which links the tiny fishing village to Queenstown. 
“Ideally it would suit an owner-operator. It’s a good residence for families,” Blacklow says. 
The property and business have been on the market for just over two weeks and interest to date has come mainly from the eastern seaboard of the mainland. 
Franklin Manor is one of six tourist businesses up for sale in Strahan. 
Also up for sale is the 18-guest bedroom Gordon Gateway Motel freehold and business, with Hospitality Property Brokers Bowral marketing it for $1.98 million, and the Sharonlee Holiday Villas featuring 11 units being marketed by Best Properties La Trobe with an asking price of $1.3 million. 
Blacklow says the Strahan market has been slow for a couple of years in keeping with general trends in the overall Tasmanian market.
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Tasmanian trophy tourism offerings abound in slow market

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The Greater Building Society has cut its one year fixed-rate mortgage to 5.94%, well below that of the some of the major banks.
The rate is nearly 1% lower than Westpac’s one-year fixed rate (6.89%) and 0.45% lower than ANZ’s (6.39%) offering, currently the best one year rate of the Big Four banks.
The building society has also reduced its three-year fixed home loan rate to 6.35% per annum
Customers with a Greater fixed loan revert to the building society’s lowest (basic) standard variable rate (currently 6.94% per year) once their fixed rate period ends.
Product manager David Bryde calls the practice of taking consumers from a fixed rate to a high standard variable rate “the revert rort”.
“Having a fair revert rate as well as low fees and charges is why our comparison rate is so much lower than our competitors even when our headline rates are similar,” he says.
The Newcastle-based building society has 250,000 members across 66 branches in NSW, southeast Queensland and in Townsville.
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Greater Building Society fixed-rate home mortgage undercuts major banks

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Rental payments will have a greater weight in the calculation of inflation from the third quarter of 2011, while the weighting of mortgage fees has been reduced, the ABS has said. 
Besides rents, household services, health services and education will also get a greater weighting in CPI calculations. 
“The increase in the CPI weight[ing of rent] was driven by increases in the size and quality of dwellings being rented, and a slight increase in the proportion of people renting,” says CBA economist James McIntyre.
“Larger homes equal more rent, and as more housing is ‘consumed’, the weight in the consumption basket has increased.
“Low rental vacancy rates in major capital cities, and weak building activity in response to recent increases in interest rates, are likely to see elevated rental increases over the next few years.
“The larger CPI weight will compound the challenge this trend pose for the RBA in achieving its inflation target,” he says.
Not so, say ANZ economists Katie Deans and Riki Polygenis, who expect the new weights will have limited impact on ANZ’s or the RBA’s inflation forecasts.
“On balance, the composition of items increasing/decreasing in weight may lead to some minor upward bias to both headline and underlying inflation.  But our preliminary estimate is that this impact will be less than 0.1% per annum,” they say.
The weightings of fuel, furniture and financial services have all been reduced.
“Households have responded to rises in petrol prices over the years by consuming relatively less petrol.  The weight for automotive fuel fell by 0.13 points.  But at 3.6% of the CPI basket automotive fuel remains a major influence,” McIntyre says.
The largest decline in CPI weight occurred in the insurance and financial services sector.
“Most of this fall was due to the removal of the indirect charges for deposit and loan facilities, which was a volatile and somewhat unpredictable element of the CPI,” says McIntyre.
The reduced weighting of loan fees will be welcomed by Westpac, which claimed following the release of June quarter data that inflation figures had been “heavily influenced by another questionable upside surprise on the heavily weighted deposit and loan facilities sub-component”.
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New inflation calculation will weight rents more heavily

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Victorian Premier Ted Baillieu has moved to allay fears about the impact of increasing Chinese investment in Australia as he embarked on a trip of China last week.
He says the Foreign Investment Review Board is protecting “strategic interests”.
“Obviously the investment review board is in charge of these issues. Suffice to say work is being done so that we can keep an eye on our strategic interests, and I think that is a good thing,” Bailleu says.
Approved Chinese investments in Australia have totalled an estimated $60 billion since late 2007 including the purchase of farms, wineries and office towers.
This year, Chinese investment firms have continued buying up both rural properties and offices.
Recent transactions include Chinese conglomerate <a href="https://www.propertyobserver.com.au/office/chinese-investors-snap-up-sydney-office-tower-for-%24117-million/2011091351519" target="_blank">HNA Group purchasing the 1 York Street office tower</a> in the Sydney CBD for $117 million from Colonial First State, <a href="https://www.propertyobserver.com.au/rural/chinese-investors-buy-another-hunter-valley-winery/2011083051347" target="_blank">Chinese investors buying the Capercallie vineyard</a> in the NSW Hunter Valley for around $2 million, and another <a href="https://www.propertyobserver.com.au/new-south-wales/burraga-island-sells-to-chinese-interests/2011070150670" target="_blank">Chinese group buying Burraga Island</a>, a 121-hectare Shoalhaven River island for about $2.5 million.
In August Baillieu unveiled a strategy of Victoria increasing the promotion of its agricultural, manufacturing and financial services in China.
Bailleu says Chinese investment should be welcomed as it will help farmers sell their products in the second biggest and fastest growing economy in the world.
"I don't think we should be shy in any way ... about investment in Victoria," he says.
In a speech at the Australia-China Business Week forum in August, former premier of Victoria John Brumby said China's investment in Australia must be viewed as an opportunity, not a threat.
“The Australia-China Business Council has shown that trade with China generated the equivalent of $10,000 per Australian household in the past year alone. So this is, by any measure, an important relationship,” Brumby said.
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Chinese investment important for Australian property: Baillieu

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Australia’s housing market remains sound and will rebound once consumer confidence picks up, according to Mortgage Choice CEO Michael Russell.
“Housing prices are presently in the midst of a mild correction, but I would not support the view they are expected to dip sharply in the next six months,” Russell tells Property Observer.
“Essentially our strong domestic economy will continue to underpin housing prices in the short to medium term.”
Russell’s comments come just a few days after the IMF’s downgrade to global growth. Most economists and market commentators say Australia is well-placed to respond to any financial market crisis in Europe or the US.
According to Russell the “key mitigants” underpinning the Australian economy are: “positive population growth, relatively low and stable interest rates, strong employment numbers, tight rental vacancy rates and a much-publicised pent-up demand for both owner occupied and investment housing across the country”.
“While patchy, this pent-up demand is nevertheless substantial and is only being restrained as a consequence of fallen consumer confidence levels. All it would take is for an uptick in consumer confidence and I'm certain the overall demand for housing would increase,” he says.
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Mortgage Choice boss says housing fundamentals strong despite IMF downgrade

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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