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The mortgage discount war being waged between the major banks is reaching a point where it is starting to eat into their bottom lines, according to a banking analyst.
JP Morgan analyst Scott Manning says the average discounts offered on standard variable mortgage rates has jumped from 0.7% to 0.9% over the past 12 months.
According to Manning, mortgages discounted by 0.9% are not profitable if sold through a mortgage broker and loss making above a discount of 1.2% if sold through a branch.
Banks pay brokers upfront commissions of about 0.5% of the loan amount and monthly trail payments of around 0.15%.
Mortgage brokers recommend about a third of all loans written by the major banks with the CBA the most dominant player in the broker space, accounting for 32% of all third-party loans, according to August analysis by mortgage software group Stargate.
“We estimate that current pricing is about as competitive as it can get prior to diluting group returns,” Manning says in a note to clients.
Commonwealth Bank is offering new clients who take out loans through an accredited mortgage broker discounts off 1.02% off its advertised standard variable rate provided they pay a deposit of 20% and borrow more than $500,000 the Australian Financial Review reports.
The discount takes CBA’s effective mortgage rate to 6.79% matching that of NAB’s UBank offer.
The battle for mortgage business is being led by CBA, which is offering to beat the advertised mortgage rate of its big four competitors for the month of September.
The bank is looking to regain market share lost to NAB and ANZ since the start of 2010.
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Banks sacrificing profit for mortgage holder growth

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Property investors looking to finance off-the-plan properties using their self-managed super funds should seek comprehensive legal advice, according to a property lawyer.
According to Daniel Butler, director of DBA Lawyers, off-the-plan purchases remain popular using SMSF limited recourse borrowing arrangements (LBRA).
“There are a lot of apartments selling off-the-plan and a lot more to come, with many SMSFs investing in them,” he has told delegates at the Institute of Chartered Accountants National SMSF Conference in Melbourne.
However, despite last week’s ATO draft ruling on LBRAs, which includes an example of an off-the-plan purchase as an allowable single asset acquisition, issues around the timing of making borrowing arrangements remain.
The ATO example reads:
“The trustees of an SMSF pay an amount to secure the purchase of an apartment 'off the plan'. This is not the subject of an LRBA.
“Once the apartment is completed and strata titled the trustees are required to complete the purchase. The trustees can enter into an LRBA to facilitate its acquisition as it is a single acquirable asset.”
“This means you have to be really careful with the timing of your limited recourse borrowing arrangements,” Butler says.
“According to the ATO, you only enter into an LBRA arrangement at times of settlement.
“But hang on … you have to know upfront when you sign the contract that you will have the borrowing on board, so timing here is an issue. You need to be certain of the funding at the time you enter into the contract,” he says.
“When you sign an off-the-plan contract, you are acquiring something that has not yet developed; you are acquiring “thin air”.
“The ATO has been undecided on this issue as well; its view is also up there in thin air.”
Butler is hopeful though that based on submission made to the draft ruling the commissioner will resolve these issues.
Currently, though, it remains a purchase which continues to worry some financial advisors and accountants.
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Using a DIY super fund to buy property off the plan a grey area

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Foreign investors and local institutions have continued to drive sales of Melbourne offices over the first six months of the year, according to Colliers research. 
Foreign investors accounted for 38% of Melbourne CBD office purchasers over this period, almost a 20% rise from 2010.
 
Investment sales activity for transactions in excess of $20 million remained strong at the start of 2011, with seven buildings sold between January 2011 and July 2011 worth a total $569 million, slightly above the $543 million transacted from January 2010 to July 2010. 
The largest purchase by a foreign entity to date in 2011 was the acquisition of 595 Collins Street by US-based Primerica Real Estate Investors for $130 million from Investa Property Group. 
Another major transaction was the sale of 469 La Trobe Street acquired by Malaysian-based CIMB Group, for $84 million in April 2011.
According to IPD Australia’s Property Investment Digest, annual capital growth within Melbourne’s CBD office market increased for the fourth consecutive quarter. 
Capital returns increased by 5.6% per annum in June 2011 while income returns increased by 7.5% per annum, taking total returns to 13.4% per annum. 
Research by Colliers also found the number and value of acquisitions by institutions within the Melbourne CBD office market has risen considerably since 2008. 
Notable institutional buyers include the Challenger Diversified Trust which bought 31 Queen Street for $81 million in February 2011. 
As the market recovers from the GFC, institutions have been actively acquiring properties from private investors since 2009, increasing their market share of real estate holdings in the Melbourne CBD. 
Investors continue to be attracted by stable rental yields with premium and A-grade office yields sitting between 6.50% and 7.75%. 
Looking ahead, the relatively stable and improving Australian economy is likely to cause a healthy rental market, which will likely drive the investment sales market. 
Interest is likely to remain stable, if not increase, and yields are likely to tighten further. As the imbalance in supply-demand continues, capital values are likely to increase.
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Institutions and foreign investors buying up Melbourne offices

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Property investors who use their self-managed super funds to borrow and acquire real estate will need to ensure they fully understand their obligations and comply with the letter of the law, says the Australian Tax Office.
The warning has come from the very top of the industry, with ATO superannuation assistant commissioner Stuart Forsyth saying the forthcoming year will be a “big year” for regulation and compliance.
“We are acquiring new powers to prevent breaches of legislation,” Forsyth said during his keynote speech at the Institute of Chartered Accountants’ National SMSF Conference in Melbourne today.
“There will be minimum adverse impacts on people who do the right thing. “
Property investors who set up new DIY funds will receive particularly close attention (about 60,000 new SMSF funds register with the tax office each year), with ignorance of the rules and obligations unlikely to curry much favour with the ATO.
Areas that will receive special focus from the ATO will include breaching contribution caps and illegal early release of funds.
“One SMSF trustee has been sent to jail for long-term breaches and failure to lodge,” Forsyth says.
“You need a blooming good reason not to lodge.”
Speaking as part of the panel discussion following Forsyth’s address, Professor Gordon Cooper, principal of accountants Cooper &amp; Co, accused the ATO of being “ridiculous and draconian” in how it deals with breaches of contribution caps.
He gave the example of a client who was issued with a $70,000 due to being $10 over her contribution cap. Cooper was only able to get the assessment waived due his client being ill and being poorly advised.
“If she were not ill, she would most likely have had to pay the $70,000,” he says.
Also part of the discussion, Liz Westover, head of superannuation at the ICA, advised trustees to engage with the tax office rather than bury their heads in the sand – “that way you have a much better chance of a favourable outcome”.
The ATO is considering devising an online course that would be required for trustees.
The ATO has provided a list of <a href="https://www.propertyobserver.com.au/news/fifteen-ways-to-add-property-to-your-smsf/2011091651578" target="_blank">acceptable ways for SMSFs to invest in property</a>. For more on the rules regarding self-managed super funds and property, see our e-book 16 questions self-managed super fund trustees should ask before investing in property.
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SMSF trustees must be very vigilant concerning tax: ATO

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Consumer group Choice has no plans to launch a mortgage broking service, according to chief spokesman Christopher Zinn.
“We are not getting into mortgage broking, but we are looking at the possibility of financial advice,” Zinn has told Property Observer.
“We are interested in entering a number of markets where there is room for consumer benefit.
“We believe there is a great need for a trusted independent brand which can deliver cost-effective, reliable financial advice.
“Our role is to steer people in the right direction to make the right decisions. This might not mean doing it ourselves, but partnering with providers.”
Zinn says Choice can only earn remuneration which is conflict of interest free and “product-neutral”.
Zinn clarified Choice’s future plans following a confusing and erroneous report in the Australian Financial Review that said Choice was planning to offer financial advice and take on the mortgage broking industry.
Licensed mortgage brokers are not allowed to provide financial advice but can only recommend credit products.
Choice has already ventured into a quasi-mortgage broking space via its One Big Switch campaign in partnership with Lachlan Harris, former press advisor to Kevin Rudd.
<a target="_blank" href="/news"> The scheme aims to source better home loan offers for about 40,000 borrowers who have signed up but has to date not made any offers</a>.</body></html>

Choice denies plans to offer mortgage broking

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Reports that the major banks are unwilling to finance loans for properties that qualify for the government’s national rental affordability scheme (NRAS) are exaggerated, according to specialist providers.
Paul Thewlis, managing director of Onyx, which sells, finances and provides legal services for properties that qualify for the NRAS scheme, says the information contained in a leaked building blacklist document are a “distortion”. “This information is a year out of date,” he says.
The<a target="_self" href="https://www.propertyobserver.com.au/news/bank-s-blacklist-bans-finance-for-373-buildings/2011091251504"> document leaked to the Fairfax press</a> dates back to “late 2010” and highlights the major banks’ alleged reluctance to finance NRAS properties, with The Age reporting that “most other banks have also refused to finance investors or buyers for NRAS properties, apart from St George, which accepts borrowers for one project in Queensland”.
Charity group Mission Australia <a target="_blank" href="/news">slammed the bank's purported reluctance to lend to purchasers of some NRAS buildings</a>. According to Thewlis, two of the major lenders – NAB and Westpac (including its subsidiaries RAMS and St George/Bank of Melbourne) – along with other financiers including Adelaide Bank, Firstmac and The Rock Building Society provide NRAS financing.
“In August last year, Westpac said no. Now they have the most extensive policy in relation to NRAS,” he says. 
In March this year, Westpac sent a note to mortgage brokers notifying them the bank was expanding the number of approved NRAS property management consortiums from one in Queensland to six, comprising three more in Queensland and two in Western Australia. 
Previously, the bank would only approve loans for properties managed by the Queensland Affordable Housing Consortium. 
“The banks are gradually getting on board with NRAS. The finance industry is conservative. They want to fund NRAS deals, but because they don’t know much about it they believe it’s something to worry about,” he says. 
Jo Brown from NRAS Real Estate based in Sydney agrees with Thewlis that the banks are getting on board with financing. 
She says the two banks that currently do not provided NRAS financing – ANZ and the Commonwealth Bank – are working on entering the space. 
“They don’t have NRAS policies yet, but they are working on them,” she says. 
Brown says buyers of NRAS properties are “normal investors” who seek properties with neutral or positive cash flow in good areas. 
“Tenants are meticulous and really treasure their properties. They are less work than normal tenants,” she says. 
Mortgage broker and realtor Tim O’Shea’s experience with the major banks on NRAS deals has not been as fruitful as Onyx or NRAS Real Estate. 
O’Shea, who is principal at the Da Vinci Property Group based in Runaway Bay, Queensland, says in his experience Westpac (and subsidiary brands RAMS and St George) is the only major bank to provide NRAS financing. 
A Westpac NRAS policy document dated September 2010 says the bank requires a 30% deposit from borrowers unless the loan comes with lenders mortgage insurance, which then raises the maximum loan-to-valuation to 87%. 
The bank does not take into account tax incentives associated with the NRAS when determining serviceability assessments. 
O’Shea says penalising NRAS borrowers with high deposit requirements makes no sense. 
“It’s a very backward approach. The chances of the property being vacant are nil given the discounted rents,” he says. 
O’Shea says his discussions with the Commonwealth Bank suggest it is keen to get involved in NRAS financing and is looking to develop a policy. 
A spokesperson for NAB confirmed the bank does “finance individuals to purchase properties built under the federal government's NRAS”. 
A spokesperson for ANZ says: "We currently do not finance investment properties built under the federal government's National Affordability Rental Scheme, but we’re currently looking at ways we can support government initiatives to house low-income earners."
Property Observer is awaiting responses from Commonwealth Bank.</body></html>

More banks lending to properties in NRAS affordability scheme

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Lufthansa is the latest international airline to snap up prime CBD office space in Sydney, according to Ray White’s commercial division. 
Germany’s national carrier has secured a five-year lease for approximately 320 square metres of office space at 189 Kent Street, Sydney, near Wynward Station. 
Real estate listings show offices up for lease in the recently refurbished 15-storey building at gross rentals of between $380 and $450 per square metre. 
Lufthansa was previously based at 143 Macquarie Street, also in the Sydney CBD. 
“We understand Lufthansa's Kent Street office may also accommodate business travel payment company Air Plus International,” says Ray White commercial office leasing director John Skufris. 
“[The building] offers a brand-new foyer, near-new passenger lifts, sweeping city views, shower facilities and availability of basement parking,” he says.
The Lufthansa lease follows Qantas, Air Pacific and Eva Air all seeking new Sydney CBD premises over the past 24 months. 
Other airlines to take up space this year in the CBD include Japan Airlines and Nippon Travel, which both moved to 22 Market Street. 
Singapore Airlines is expected to sign a deal to take up 1,500 square metres of space in the Sydney CBD in 2012. 
Qantas moved from Bridge Street retail to office space, while Eva Air relocated to the city from Mascot. 
Ray White Commercial's Anthony Harris says the airlines recognise the convenience of the CBD location. 
“Airlines also have less need for a retail presence as so much of their business nowadays is online,” he adds.
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Airlines flying high in Sydney CBD office space

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Australian property group Dexus has leased more than 500,000 square metres of warehouse rooftop space in California for use in the provision of solar power, the biggest project of its kind in the US.



The 513,588-square-metre deal has been struck with electricity provider Southern California Edison and will run for 20 years.



SCE will install a solar power system encompassing approximately 36,000 solar panels. At peak generating capacity, the rooftop solar station will generate up to 10 megawatts (DC), enough power to serve approximately 5,200 homes in southern California. 



The new solar station will be part of a network of solar plants SCE is building through southern and central California. 



Electricity generated by these installations will be transferred directly into the neighbouring SCE energy grid through more than a dozen groups of inverters and transformers built alongside the building. 



Victor Hoog Antink, CEO of Dexus Property Group, says the project underscores the group’s commitment to corporate responsibility and sustainability. 



“The new lease will unlock further value with the Dexus distribution centre to now host two tenants: SCE on the rooftop and Whirlpool within the building it has occupied since 2008,” he says.



Tom Catania, vice president of Government Relations for Whirlpool Corporation, says he expects the warehouse to “soon include the next generation of sustainable appliances, namely ‘smart’ appliances that can receive and respond to a smarter and greener electricity grid”.



Construction on the solar panel station is planned to commence in late 2011 and the station is expected to be online and serving SCE customers in 2012. 



The California state government requires that a third of electricity come from renewable sources by 202o.
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California solar panel leasing deal sets bright warehouse leasing record

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The Australian Tax Office, as part of its draft ruling on limited recourse borrowing arrangements (LBRA), has clarified what constitutes an “acquirable asset” or a “single acquirable asset”. It now allows self-managed super funds to acquire properties even if they comprise two or more proprietary rights and has provided 15 examples to help DIY funds grasp what constitutes eligible property borrowing:

Example 1: Two adjacent blocks of land

As part of the SMSF's investment strategy, the trustees want to acquire two adjacent blocks of land under the one LRBA. The vendor will only sell the two blocks together, however, there are no physical or legal impediments to the two blocks of land being sold separately.

The two blocks of land are not a single acquirable asset. As a result, the two blocks of land cannot be acquired under one LRBA. However, each block could be acquired under a separate LRBA.
Example 2: A factory complex on more than one title
An SMSF trustee wants to enter into an LRBA to acquire a factory. The entire factory covers three separate legal titles. The factory is a single acquirable asset and can be acquired under one LRBA.
Example 3: Farmland with multiple titles
The trustee of an SMSF wants to enter into an LRBA to acquire a farm. While the farm has been conducted as a single primary production business it comprises two separate titles.
Although only one farming business is conducted on the land, there is no physical or legal impediment to the land represented by the different titles from being dealt with separately. That is, there is no obstacle to part of the farm (one of the titles) being sold off, leaving the farming business to be conducted on the remaining land. As a consequence, the farm is not a single acquirable asset and cannot be acquired under one LRBA.
If, however, the farming business concerned a piggery and the piggery is conducted in a large shed constructed over both titles then, similar to the approach with the factory in Example 2, it would be a single acquirable asset.
The trustees of an SMSF pay an amount to secure the purchase of an apartment 'off the plan'. This is not the subject of an LRBA. 
Example 4: Completed off-the-plan apartment

Once the apartment is completed and strata titled the trustees are required to complete the purchase. The trustees can enter into an LRBA to facilitate its acquisition as it is a single acquirable asset.

Example 5: House built in situ
An SMSF owns a vacant block of land. The trustees of the SMSF want to enter into an LRBA to construct a house in situ on the block of land.
The house cannot be a single acquirable asset under section 67A. As the house is built in situ it does not exist as an asset separate from the land that can be held on separate trust. Money lent to build a house effectively results in the acquisition of services and building materials and these acquisitions would not satisfy the LRBA requirement that the arrangement involves the acquisition of a single acquirable asset.
Example 6: Apartment with separate car park
The trustee of an SMSF wants to enter into an LRBA to purchase an apartment with a separate car park. The apartment and car park are each on a separate legal title. The laws of the state in which the apartment is located do not allow the two titles to be disposed of separately.
As the two titles cannot be assigned or transferred separately, the apartment together with the car park is a single acquirable asset.
Example 7: Serviced apartment and furnishings
The trustees of an SMSF want to enter into an LRBA to purchase a serviced apartment that will be leased to the provider of short-term residential accommodation. The vendor is an entity associated with the accommodation provider. The purchaser of the apartment is required by the vendor to also purchase a furnishing package.
The apartment without the furnishing package is a single acquirable asset and its acquisition could be funded under an LRBA. However, the apartment and the furnishing package together are not a single acquirable asset. The furnishing package is also not a single acquirable asset as it would include multiple furniture items.
Examples relating to repairs and improvements of assets using borrowings
Example 8: Purchase of land and construction of house using borrowings
An SMSF wants to enter into an LRBA where the single acquirable asset is a vacant block of land. The SMSF intends for the borrowing to provide sufficient funds for the construction of a house on that block.
This arrangement would not satisfy the requirements of section 67A if money borrowed under the LRBA is used to construct the house and thus improve the acquirable asset (the land). Applying money borrowed under the LRBA to improve the asset is contrary to subparagraph 67A(1)(a)(i). Additionally, building a house on the land would result in it no longer being the same acquirable asset.
Example 9: Renovation of property using borrowings
An SMSF enters into an LRBA where the single acquirable asset is a three bedroom residential property. The SMSF renovates the property adding a bathroom using borrowings under the LRBA.
The addition of the bathroom improves the asset as compared with the asset as it was at the time when the LRBA was entered into. The arrangement will no longer satisfy the requirements of section 67A as money borrowed under the LRBA has been applied to improve the asset in contravention of subparagraph 67A(1)(a)(i).
Example 10: Machinery
An SMSF trustee enters into an LRBA where the single acquirable asset is a piece of machinery. Immediately after its acquisition money borrowed under the LRBA is used to fund repairs to the asset to return it to its full functionality.
The arrangement continues to satisfy the requirements of the LRBA provisions.
Examples relating to whether an asset is the same asset or a different asset
Example 11: Subdividing land
The trustees of an SMSF enter into an LRBA to acquire a vacant block of land. Once the LRBA is in place that block of land is subdivided resulting in two separate titles.
The arrangement ceases to satisfy the requirements of the LRBA provisions as the original asset has now been replaced with two different assets and the replacement is not covered by section 67B. As the exception in section 67A ceases to apply to the LRBA, if the borrowing is maintained the trustee will contravene subsection 67(1).
Example 12: House built over two titles
The trustee of an SMSF enters into an LRBA where the single acquirable asset is a house which is built over two titles. Subsequently the house is relocated so that it stands on only one of the titles.
The arrangement ceases to satisfy the requirements of the LRBA provisions. The relocation of the house results in the asset under the arrangement no longer being a single object of property. Following the relocation there are two separate assets, the block of land with the house and a vacant block of land, that could be dealt with separately. If the borrowing is maintained the trustee will contravene subsection 67(1).
Example 13: Reconstruction of a house damaged by fire
An SMSF trustee enters into an LRBA where the single acquirable asset is land on which a four bedroom lowset brick house had been constructed prior to the SMSF entering into the arrangement.
The house was severely damaged by fire and the local council required it to be demolished. As a result of an insurance policy, the four bedroom house was reconstructed using the insurance proceeds.
As rebuilding the house is restoring the asset to what it was at the time of entering into the LRBA (that is, a house and land) it does not result in a different asset being held under the LRBA. The arrangement continues to satisfy the requirements of the LRBA provisions.
Example 14: Construction of a different type of building
Assume the same facts as in Example 13, however, insurance proceeds are used to construct two, two bedroom units on the land following approval for dual occupancy.
The construction of the two units on the land fundamentally alters the character of the land and house that existed at the time when the LRBA was entered into. Consequently, the original asset, being the land and the four bedroom house, has been changed to dual occupancy dwellings resulting in a different asset. The exception in section 67A will cease to apply to the LRBA and if the borrowing is maintained the trustee will contravene subsection 67(1).
Example 15: Replacement arising from insurance claim
An SMSF enters into an LRBA where the single acquirable asset is an item of equipment. The item of equipment is subsequently destroyed and a new item of equipment is provided by the insurer as a replacement.
The arrangement ceases to meet the requirements of the LRBA provisions as the item of equipment has been replaced in its entirety and that replacement is not covered by section 67B. If instead a cash payment is made by the insurer to the holding trust, the arrangement would also cease to meet the requirements of LRBA provisions. The exception in section 67A will cease to apply to the LRBA and if the borrowing is maintained the trustee will contravene subsection 67(1).

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Fifteen ways to add property to your SMSF

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Investors are being sought to buy half of the Caroline Chisholm Centre in the ACT, the five-storey national headquarters of the Department of Human Services.
The half share is expected to fetch between $90 and $100 million, with the sales process being handled by Jim Shonk and John Marasco from Colliers International. 
Shonk and Marasco are acting under the instruction of receivers at KordaMentha. 
The half share listed for sale was owned by failed property trust and Allco subsidiary Record Realty, which was placed in receivership in September last year. 
 
At the height of the last equity and property booms Record Realty was worth more than $2 billion. 
Shonk told Property Observer he expected the half share to find a market from either local institutional investors or offshore institutional investors in Asia or Europe. 
It has a passing gross rental of $17,092,023 for the 100% interest, with over $1 million coming from car parking fees.
The building is situated in Greenway, ACT, within the Tuggeranong Town Centre on the Corner of Athllon Drive and Soward Way. 
It is a premium-grade five-storey office building with more than 40,000 square metres of office space on a 5.35-hectare site, all occupied by the department.
It was purpose-built in 2007 as the department’s national headquarters. The government is also the anchor tenant of the Tuggeranong Town Centre, 25 kilometres south of the Canberra CBD.
The complex includes around 1,100 car spaces, conference facilities, auditorium, amphitheatre/TV studio, gymnasium and café with commercial kitchen. 
The federal government has signed an 18-year lease expiring July 4, 2025, plus two further option periods of five years each. 
The property is “unexpired residue of a Crown Lease for a period of 99 years.
from 26 June 2002”, effectively a lease in perpetuity, with a statutory right to take up successive further 99 year terms, at no cost other than an application fee, currently about $2,500. 
The other half is held by Singapore-based Frasers, which acquired it in June 2007 for $108 million and forms part of its commercial property trust. 
The building is being sold by expressions of interest closing October 21.
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Another Allco asset on the sale block

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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