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Construction of the 11-storey Alex Perry-designed apartment block in Fortitude Valley is due to begin in January next year as a record number of inner-city Brisbane developments look to sell enough units off the plan to convince lenders to finance their construction.
A spokesman for the <a target="_blank" title="Alex Perry: Inspired by beauty" href="https://www.propertyobserver.com.au/queensland/alex-perry-inspired-by-beauty/2011060850445">Perry project</a> says developer Chrome Property Group is in final negotiations with the builder and says the development “on course”.
While reluctant to reveal exact numbers, he says the first “chunk” of apartments was sold to investors from Sydney who attended the June launch. Inquiries have come from as far afield as Romania.
<img src="/images/stories/alexperrydevel.jpg">
The 131-apartment development (pictured above) is expected to have an end value of $75 million, with one-bedroom apartments selling in the high $300,000s and two-bedroom units selling around the $550,000 mark.
<img src="/images/stories/belise.jpg">
Construction of another development, the 20-storey Belise at 510 St Paul’s Terrace (pictured above), is due to commence in the second quarter of next year.
The project comprises 199 apartments.
A spokesperson for this development told Property Observer about 50 had been sold off the plan since launching in October last year.
“We have just had our first interstate buyer from Perth, and we have also had one Chinese buyer,” he says.
<img src="/images/stories/mands.jpg">
Laing O’Rourke’s $250 million M&amp;A project (pictured above), which is currently under construction on McLachlan, Connor and Ann streets in Fortitude Valley, has sold more than 65% of the 234 one- and two-bedroom apartments. 
<img src="/images/stories/mosaic.jpg">
Another development under construction, Leighton’s 18-storey Mosaic project (pictured above) on East, Church and Ann streets had sold roughly half of its 212 apartments by the end of March and is due for completion by late 2012. 
The first four levels are due become serviced apartments or a boutique hotel. 
Other projects at the development stage include a number of approved projects by Metro Property Group, including the Brooklyn on Brookes development at 116 Brookes Street, which will consist of 191 apartments over 14 levels.
According to Troy Linnane, national director of valuation and consultancy at Colliers, financiers require a significant number of pre-sales to fund developments.
This could prove something of a challenge for the more than dozen other developments
Colliers has forecast 1,800 apartments to come up for sale in the inner Brisbane market over the next 12 months with a further 4,500 due to be released in 2013.
Currently Colliers estimates the annual take-up of apartments in the inner Brisbane market at around 1,200 with around 60% of the sales in the inner north market which includes Fortitude Valley, Bowen Hills, Newstead, Tenerife and Hamilton.
Linnane says developers are “pushed” at the moment when it comes to selling off the plan and for all the proposed projects to go ahead will require interest from interstate and overseas investors.
Another challenge for developers, according Linnane, is the similarity of the developments – they’re all mainly one- and two-bedroom units, he says.
In the inner-north Brisbane market, there were 108 sales from 20 projects during the first quarter from a total stock of over 1,200 apartments, according to the most recent Colliers report on the Brisbane apartment market.
While investor demand is continuing to underpin transaction volumes in the inner-city market, “especially for price-pointed, affordable stock generating strong rental income”, Collier warns that the market “may be adversely impacted by rising interest rates and increasing vacancy in the medium term”.
Sales volumes for new apartments declined for the second consecutive quarter during the three months to March 2011, though volumes are stabilising when compared against a moving annual average.
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Alex Perry development and others all the fashion in Fortitude Valley

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The reluctance by the major banks to lend on apartment developments creates opportunities for “speciality lenders” to step in prudently, according to Mortgage Choice spokeswoman Kristy Sheppard.
Speaking to Property Observer following the leaking of <a href="https://www.propertyobserver.com.au/news/bank-s-blacklist-bans-finance-for-373-buildings/2011091251504" target="_blank">a major bank blacklist of 373 apartment projects</a> that one unnamed bank will not lend against, Sheppard says providing finance where other banks decline is an area a number of lenders can leverage to build their market share.
“Some already are,” she says. “For example, speciality lenders and others who provide ‘alternative verification lending’ often scrutinise a borrower's situation more closely from an individual perspective while still abiding by serviceability rules and credit scoring systems.
“Obviously the balance of risk versus benefit has to be right for the lender and the customer in these circumstances too, but a less restrictive approach is taken when examining each deal,” she adds.
<a target="_blank" href="/news">Mortgage brokers have said that the existance of the blacklist makes their roles even more important.</a>
The most recent financial results for Mortgage Choice show that almost a third of its mortgages were arranged by banks outside the Big Four, with 10% of loans coming from non-bank lenders and building societies.
Lisa Montgomery, CEO of Resi Mortgages, says with borrowers now more cautious and lenders tightening criteria and reducing loan-to-value ratios on smaller apartments (between 40 and 60 square metres) there is “an appetite for all lenders to see if there is a deal”.
While the word “blacklist” evokes an emotion, Montgomery says it is prudent for the major banks to limit their exposure and risk on certain medium- and high-density projects.
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Building blacklist creates opportunity for specialist lenders: Mortgage brokers

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NAB predicts the cash rate will stay on hold until November 2012 following the release of revised, softer inflation figures.
Should the prediction prove true, it would mean 24 months of no change to official rates. The last time rates went up was in November 2010, when the RBA pushed up rates by 25 basis points to the current level of 4.75%
The bank pushed back its May 2012 rate rise prediction after the ABS revised core inflation to a lower figure in the June quarter and in the words of the bank’s economist Alan Oster and Rob Henderson, “fundamentally altered the history of the underlying CPI”.
June quarter CPI is now estimated to have risen by 0.6% (down from the previous estimate of 0.9%), to be 2.5% higher over the year (previously 2.7%).
The September quarter CPI figure will be calculated under the revised methodology after the ABS found an increased number of expenditure classes to be seasonal and this has affected seasonality in the underlying CPI.
According to Oster and Henderson, it appears that about half of the downward revision in the June quarter was attributable to the seasonal adjustment of petrol, hospital and medical services and tobacco, although these are likely to be reversed in other quarters.
Westpac is sticking with its forecast of a December rate cut due to households' growing unemployment expectations, which rose 8.5% in September following on from a 2% gain in August. 
"It is also worth noting that both the level of unemployment expectations and the rate of change in unemployment expectations are now giving a strong signal that households are already under stress and that a rate hike based on domestic fundamentals is not called for. In fact the current survey is now giving a very strong signal that based on household fundamentals; the next more in rates is more likely to be down," says Westpac's economic team. 
"With every passing month, the message coming from household sector is increasingly clear: that interest rates are very contractionary and in fact, the case is building that they should be lowered if the RBA would like to keep a neutral to modestly tight policy setting."
<img src="/images/stories/westpacsept15.gif">
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Interest rates on hold until November 2012: NAB

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The luxury Sea Temple Golf and Country Club in Port Douglas as well as the adjoining housing estate has been put by for sale by the Juniper Development Group.
A spokesperson for Juniper declined to give a price estimate for the 6,100-square-metre 71-hole Thomson, Wolveridge and Perrett-designed championship golf course and the remaining 51 home sites, which have an average size of 764 square metres.
The development is being sold via an expressions-of-interest campaign led by Paul Nyholt and Wayne Bunz from CBRE closing on October 13.
The links-style golf course is located on Old Port Road in Port Douglas on the edge of the ocean, framed by tropical rainforest and mountain views.
The golf course is home to a variety of native mammals and birdlife, with some lucky golfers able to tee off under the watchful gaze of a crocodile.
It has existing development approval for an additional 10 fairway lots averaging 1,333 square metres.
It was launched by Juniper in October 2007 as a $38 million house-and-land development with plans for 63 lots to envelope the golf club.
The listing of the Sea Temple golf course, country club and housing estate follows receivers being appointed in July to sell two Queensland golf courses bought in 2002 by a Babcock &amp; Brown investment syndicate.
The Robina Woods golf course has been listed for receivership sale through CB Richard Ellis and McVay Real Estate, along with the nearby The Colonial course.
The listing of the Sea Temple golf course, country club and housing estate follows receivers being appointed in July to sell <a target="_blank" href="https://www.propertyobserver.com.au/news/babcock-and-browns-queensland-golf-course-investment-caught-in-the-rough/2011070750736">two Queensland golf courses bought in 2002 by a Babcock &amp; Brown investment syndicate</a>.

The Robina Woods golf course has been listed for receivership sale through CB Richard Ellis and McVay Real Estate, along with the nearby The Colonial course.
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Sea Temple development seeks golfing devotee developer

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The Housing Industry Association and the Master Builders Association have demanded government action to arrest the slide in new dwelling starts following a third decline in four quarters. 
Dwelling commencements are down 7% for the 2010-11 year after a 4.7% fall in the June quarter to 37,820 following the release of ABS data. 
Detached house commencements fell by 2.2% to 23,106 while commencements of “other dwellings” dropped by 8.8% to 14,406. 
The number of seasonally adjusted dwelling commencements fell in five of eight states and territories in the June 2011 quarter.
Dwelling commencements fell by 20.1% in NSW, 16.3% in Queensland, 1.3% in Western Australia, 14.3% in Tasmania, and 69.4% in the Northern Territory.
Dwelling commencements increased in Victoria (6.8%), South Australia (4.5%), and the Australian Capital Territory (30%).
HIA chief economist Harley Dale says the renewed weakness in dwelling commencements, which began in mid-2010, “reflects a lack of policy reform progress in reducing the high cost base to new housing and a deterioration in household confidence and demand”.
Dale expects commencements to fall considerably further in 2011-12. 
Dale says dwelling commencements are running at an annualised level of just over 151,000 in the June 2011 quarter. 
“The urgent need for stimulus to kick-start new home building is crystal clear as Australia moves further away from the underlying demographic demand for around 175,000 dwellings per annum.”
Peter Jones, chief economist at the MBA, says residential building has failed to kick-on after recovering ground lost in the GFC and is in danger of weakening further unless policy changes.
“Housing faces a potential crisis-in-the-making given past levels of underbuilding, and for a wider economy desperate for a traditional driver to spark activity in parts of Australia caught in the slow lane of the two speed economy.
“At the very least, a long period of interest rate stability from the Reserve Bank is vital to ensure an upswing in the interest-rate-sensitive residential building sector becomes entrenched.”
“Governments at all levels need to address inefficient developer charges and other policies that add an unfair cost premium to new dwellings.”
CBA economist James McIntyre noted the continued weak demand for private sector housing starts, a downward trend that has now run to six consecutive quarters. 
“The ‘fiscal fade’ effect has been significant in this segment of the housing construction sector, as the effects of the removal of the boost to first home buyer grants and higher interest rates work through,” he says. 
“We expect some near term improvement in private housing commencements, on account of improved housing sentiment and the extended pause in the rate hike cycle. 
“However the recent pattern of approvals has been weak, and could be exacerbated by the recent financial market turmoil.  This suggests downside risk to our outlook. 
Whilst we expect a pickup in dwelling commencements in late 2011, we expect any recovery to be short lived.  Our call for a resumption of the rate hike cycle in 2012 will weigh on the sector. 
The bank expects the next rate hike to occur in February 2012.
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Housing industry asks for government intervention as housing starts slide

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Cashed-up self-managed super funds are expected to develop an appetite for fixer-uppers following the release of draft rules that allow them to renovate properties they hold provided they don’t borrow the money to make the improvements. 
According to Aaron Dunn, managing director at The SMSF Academy, the draft ATO ruling has “many positive implications, in particular it allows trustees to use cash in the fund to improve an acquired asset”.
 
SMSFs with cash reserves are likely to find older properties in need of renovation more attractive propositions, Dunn says, while those funds that need to borrow to invest are likely to find newer properties, including those available off the plan, more attractive. 
Under the draft ruling released by the ATO, money borrowed by SMSFs under limited recourse borrowing arrangement (LRBA) provisions can be used not only to acquire a property but “also in carrying out repairs and maintenance to the asset whether necessary at the time of its acquisition or at a later time”. 
However, “no amount that has been borrowed by the SMSF trustees under the LRBA may be applied to improve the single acquirable asset”. 
If a trustee of an SMSF uses borrowed money to improve their property, they will contravene the rules covering LBRA provisions. 
The ATO provides examples to demonstrate the difference between repairing or maintaining a property and improving one: 
Repair or maintenance examples (borrowing allowed)
 
<ul>
<li>A fire damages a part of the kitchen (cooktop, benches, walls and ceiling). Restoration of the damaged part of the kitchen would constitute repair of what is a subsidiary part of the asset being the house and land. </li>
</ul>
<ul>
<li>The guttering on the house is replaced and the house is repainted. A fence is replaced. A fire alarm is installed to comply with new council requirements. This would be repair or maintenance. </li>
</ul>
<ul>
<li>A cyclone damages the roof of the house. Replacement of the roof in its entirety is a repair. </li>
</ul>
Improving examples (borrowing not allowed)
 
<ul>
<li>If the kitchen was also extended by extension of the house this extension would be an improvement. </li>
</ul>
<ul>
<li>The addition of a new pool or a new garage would be an improvement. </li>
</ul>
<ul>
<li>The addition of a second storey to the house at the time of also replacing the roof would be an improvement.</li>
</ul>
Rural property example
Repair or maintenance examples (borrowing allowed)
 
<ul>
<li>Replacing a section of the cattle yards or the existing fencing is a repair. 
</li>
<li>Ensuring the bores, windmills, tanks and troughs continue working is repair or maintenance. This would include laying new pipes between the tank and trough. 
</li>
</ul>
 
Improving examples (borrowing not allowed)
 
Each of the following additions is an improvement:
<ul>
<li>a new set of cattle yards; 
</li>
<li>a new bore, tank, windmill and trough; 
</li>
<li>a dam; 
</li>
<li>a further two kilometres of fencing. 
</li>
</ul>
 
Comments on the proposed ruling can be submitted up until October 28.
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Older properties take on new sheen for SMSFs following tax reno ruling

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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.
 
Woolworths has taken the unusual step of buying the Centro Lismore, NSW, shopping centre, where it is the anchor tenant on a short-term lease. 
Woolworths is traditionally a developer of shopping malls, but is not a long-term holder of these assets. 
Corporate affairs spokesman Simon Berger told Property Observer the main focus for Woolworths remained being a retailer and “looking for opportunities to serve our customers”. 
“We will develop or acquire where it suits our interests and customers, but we also lease in plenty of places,” he says. 
“We are quite flexible and adaptable quite… We don’t have a one-size-fits-all approach.” 
Berger would not confirm if Woolworths had plans to acquire similar assets: “We won’t rule it out, but equally we won’t rule it in.”
Neither Berger nor Heath Crampton, the Colliers agent who negotiated the sale, would disclose the sales price. The Australian Financial Review says Woolworths paid about $23 million, a yield of less than 7%. 
Centro Lismore is part of the Centro MCS 34 syndicate, which includes seven shopping centres, including Centro Pinelands, valued at $28 million. 
Centro Lismore was valued at $15.9 million as of December 31 2010, down 3.64% from a valuation six months previously. It has 100% occupancy and 0.4% sales growth. 
The Woolworths lease is due to expire in December 2015 and according to the AFR, the syndicate has refused to renew the lease. 
The centre is located in the heart of Lismore. Besides Woolworths, it has a Rivers clothing store and 17 other speciality stores and has a gross lettable area of 8,300 square metres. 
Heath Crampton has been appointed to sell the Centro Albion Park, which also has Woolworths as the anchor tenant. <a target="_blank" href="https://www.propertyobserver.com.au/retail/troubled-centro-now-offloading-seven-shopping-centres/2011090751471">It is one of seven regional Centro malls listed for sale by the ailing shopping centre business since July.</a> 
An expressions-of-interest campaign for the Albion mall closed on August 23. Crampton says the store has not yet been sold, but “a party has been nominated”. 
Centro is looking to liquidate its retail portfolio under a restructuring plan to form a new entity. Shareholders will vote on the restructure in December. 
In June Charter Hall Retail REIT completed its purchase of a portfolio of eight Woolworths supermarket anchored shopping centres for $284 million from Woolworths Ltd.
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Woolworths puts Lismore Centro in its shopping basket

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Sales of neighbourhood and sub-regional shopping centres have topped $1 billion for the year to date, according to new market analysis from CBRE, with 38 centres changing hands between January and August.
This is 37% higher than in the entire 2010 calendar year, when 28 centres were traded for a total of $713 million, with four months of the 20111 still to go.
So far this year, five sub-regional shopping centres have changed hands, including Centro Hervey Bay in Queensland, Carnes Hills Marketplace in Sydney, Point Cook in Melbourne, Ballina Central in northern NSW and Highlands Marketplace in the NSW Southern Highlands.
A total of 35 neighbourhood centres have also been traded, with this sector of the market benefiting from its bias towards food and service retailing.  Recent transactions include the $40.1 million sale of Albany Creek Shopping Centre in Brisbane to Charter Hall Retail REIT.
The Property Council of Australia defines a sub-regional shopping centre as a “medium-sized shopping centre typically incorporating at least one full-line discount department store, a major supermarket and approximately 40 or more specialty shops with a total gross lettable retail area of between 10,000 and 30,000 square metres.”
A neighbourhood centre is defined as a “local shopping centre comprising a supermarket and approximately 35 specialty shops with a total gross lettable retail area will typically be less than 10,000 square metres”.
CBRE regional director of retail investments Steve Wakeham says demand for quality retail investment opportunities is continuing to increase, despite the recent negativity in relation to the impact of internet retailing and a slowdown in retail trade.
“If the current momentum is maintained, we expect in the order of 60 neighbourhood and sub-regional sales to be concluded in 2011, particularly given that sales activity is traditionally higher in the second half of the year.”
He attributes the marked increase in sales activity to both the improved availability of debt funding and the higher volume of sales listings in 2011.
Earlier this month, Centro listed a further three regional shopping centres for sale,<a target="_blank" title="Centro lists seven centres" href="https://www.propertyobserver.com.au/retail/troubled-centro-now-offloading-seven-shopping-centres/2011090751471"> taking the total since July to seven.</a>
“There has been a noticeable increase in the volume of listings this year and at the same bank finance has freed up, providing the necessary debt funding to underwrite a higher number of transactions,” he says.
Wakeham says institutional investors had been the most active purchasers this year. At the top end, this included offshore institutional investors such as GIC and the Canadian Pension Plan Investment Board, alongside local A-REITs, particularly Charter Hall, and domestic superannuation funds
“These investors have very particular requirements and are looking for centres that are either dominant now or can be redeveloped to be the dominant centre in their particular catchment,” Wakeham says, adding that the Woolworths portfolio sale had been a key litmus test for the market.
“Charter Hall’s purchase of eight Woolworths centres highlighted the attractiveness of well located, convenient, supermarket-based centres with the portfolio attracting significant interest from both local and offshore investors.”
The CBRE analysis excluded regional shopping centre sales, which tend to skew the results given the limited number of regional transactions and the high value attributed to such transactions.
It also excluded the Lend Lease purchase of ING Retail for $1.4 billion, concluded at the end of 2009.
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Suburban shopping centre sales top $1 billion for year: CBRE

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Take-up of office space in Parramatta, often dubbed “Sydney’s second CBD”, increased by 81% for the 12 months to June 2011, according to research by Savills.
The market has now “passed through the trough in the cycle” and is expected to stabilise in the coming 12 months.
The Parramatta CBD – the fifth-largest suburban office centre in Australia, with 685,171 square metres of stock as at June 2011 – is expected to benefit from a strong recovery in the Sydney CBD market, though “ confidence and sentiment remain the biggest drivers”.
In quality grade terms, approximately 34% of office stock is A grade, with B and C grade space comprising approximately 45% of the market.
In the 12 months to June 2011, Savills identified 22,492 square metres of leases in the Parramatta market, with demand for space from the finance and insurance sector accounting for 92% of the stock, or 20,763 square metres.
While this is a big jump on 2010 figures, it is still well down on the five-year average of 52,665 square metres.
The overall vacancy rate in Parramatta decreased to 9.3% in the 12 months to June 2011, according to the latest figures released by the Property Council of Australia, with B-grade stock vacancies falling from 12.4% to 5.6%.
Net A-grade rents in Parramatta typically cost between $270 and $355 per square metre per annum, and B-grade buildings lease for between $200 and $245 per square metre per annum. February was a particurlarly strong month for leasing activity, with insurer QBE and professional services business Deloitte pre-committing to 18,000 square metres of space at Eclipse Tower, a 19-storey office tower to be built at 60 Station Street.
The 25,000-square-metre building is being developed by Leighton Properties and UK-based Grosvenor and is due for completion in 2012.
According to Savills, these pre-commitments are a positive sign for the Parramatta office market; “however, it remains to be seen if this will have any long term effect on rental levels within the locality”.
Looking further ahead, there are currently three projects totalling more than 85,000 square metres of mooted new stock in the supply pipeline.   However, Savills says none of these projects will proceed without significant levels of pre-commitment.
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Parramatta office leasing up 81% in a year: Savills

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Melbourne house prices have mounted a strong comeback in the June quarter, rising 5.4% to a median of $590,000, according to the latest Real Estate Institute Market Facts report. 
The gain reverses a 6% drop over the March quarter, when the Melbourne median price fell to $565,000. 
Acting REIA president Pamela Bennett called Melbourne market the “standout” performer reflecting “a very stable and strong market and resilient house sales”. 
Sydney house prices remained virtually unchanged, up 0.1%, but remains head and shoulders the most expensive in the country at a median value of just over $644,000. 
Median house prices decreased in four of the eight capital cities over the quarter. The largest decrease was evident in Darwin, where the median house price declined 6.4% to $515,000.
The median house price in Perth decreased 3.1% to $470,000 over the June quarter.
Nationally, median house prices increased by 1.2% to $541,188, with other dwellings (units) up 0.5% $430,230. These are the largest increases recorded since the September quarter of 2010. 
The improved performance of the property market over the June quarter was accompanied by an increase in the value of owner occupier and investment loans; both recorded a significant recovery compared to the previous quarter, increasing 12.8% and 19.3% respectively.
“There are signs of some slowing in the pace of global economic growth which may pose some challenges to policy makers to maintain stable economic performance. Maintaining cash rates at the current level will provide respite to mortgage holders and stable economic growth,” Bennett says.
There were also strong gains in Hobart, where the median price increased by 2.4% to $370,000 following a 5.6% fall in the March quarter. 
On the rental front, rents for three-bedroom houses remained unchanged in most capital cities. Hobart and Darwin were the only capital cities where median rents for three-bedroom houses recorded a change declining 8.7% and 2.7% respectively. 
Darwin maintains the highest rent for a three-bedroom house, at $540 per week, while Adelaide recorded the lowest rent for this type of dwelling, at $320 per week.
Sydney recorded the highest weekly rent for two-bedroom other dwellings, while Adelaide and Hobart recorded the lowest weekly rents.
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Melbourne house prices up 5.4% in June quarter: REIA

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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