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Further encouraging signs for the housing market have emerged in the September Westpac Melbourne Institute Index of Consumer Sentiment. 
The sub-index tracking responses on “whether now is a good time to buy a dwelling” jumped by 15.1% following an 8.1% overall gain in consumer sentiment from August to September. 
“[The sub-index] is now at its highest level for two years and is certainly sending an encouraging signal to an otherwise subdued housing market,” says Westpac chief economist Bill Evans. 
However, he cautioned that there is a risk that this signal may be overstating the prospects for the housing market. 
“With households still being particularly concerned about their own financial position over the next 12 months there is a risk that, while seeing value, they will not be prepared to act on this,” Evans says. 
He says support for the bank’s cautious view on housing can be seen in households’ attitudes towards the wisest place for savings. 
“This question did not send quite the same positive message to the housing market with a modest increase (14.6% to 16.8%) in the proportion of respondents who favoured real estate as a wise place for savings. That was despite a further reduction in those favouring equities from 8.4% to 7%.
“In both cases household favourability continues to run at historically low levels.” 
The Westpac Melbourne Institute Index of Consumer Sentiment now stands at 96.9 compared with 89.6 recorded in August, a “surprisingly strong result” that Evans says “emphasises just how important interest rates are to households”. 
“Concrete evidence of the improved outlook for interest rates came shortly after the August survey when the major banks actually lowered their fixed-rate mortgage rates. While possibly coming as a surprise this action would have comforted anxious households,” Evans says. 
“The second contributing factor is likely to be the strong recovery in economic growth in the June quarter which was reported to have been 1.2% following the contraction of 0.9% in the March quarter. That development gained particularly wide media coverage and would have boosted households’ spirits.” 
Despite the surprisingly strong September rise, the index remains at a weak level overall, reflecting the very weak starting point in August. 
It is 14.8% below the average reading in 2010; 14.4% below its level a year ago; 7.1% below the average for the first half of 2011 and 4.2% below the reading in June. 
All the components of the Index increased in September. 
<ul>
<li>The sub-index tracking respondents’ assessments of family finances compared to a year ago surged by 11.2%</li>
<li>the sub-index on expected finances over the next 12 months was up by 9.5%; </li>
<li>the sub-index tracking the outlook for economic conditions over the next 12 months surged by 16.6%;</li>
<li>the sub-index measuring consumers’ 5 year economic outlook was up by 4.5%; </li>
<li>sentiment towards buying a major household item increased by 3.2%.</li>
</ul>
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lschlesinger-FZcF9M3vE6

Consumer sentiment for buying a house at two-year high: Westpac

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A draft tax office ruling allowing self-managed super funds to renovate and upgrade properties should make property an even more attractive asset for DIY funds to hold.
The ruling to be released today will allow renovations to properties held in SMSFs as long as the money comes from within in the fund (it cannot be borrowed) and the renovation does not fundamentally alter the nature of the property.
Previously the ATO has ruled that SMSFs could not borrow money from any sources to improve their properties.
Liz Westover, head of superannuation at the Institute of Chartered Accountants, says the draft ruling provides “much-needed clarity and is a long time coming”.
“It is much more sensible approach,” she says.
She says the ruling on improvements is welcome given that real estate assets are usually held for a long time.
“Over 20 years you will probably want to put in a new kitchen or bathroom. Now you can fund these improvements using other assets in your fund,” she says.
The ICA has been in discussions with the ATO over borrowing clarifications and says the draft ruling provides examples of what constitutes an allowable improvement.
The institute will support the draft ruling.
Westover acknowledged Australia’s love affair with property, but cautioned SMSFs that the potential of the investment is what matters: “You still need to look at the quality of the investment, not simply that you can borrow to acquire real estate.”
The draft ruling also has the support of the SMSF Professionals’ Association of Australia (SPAA), with national technical manager Peter Burgess telling the Australian Financial Review: “This change will mean that property is now a more attractive option than it was previously.”
Figures released by the ATO over the March quarter found SMSFs invested an additional $500 million in direct real estate.
This increase coincides with the appeal of DIY super funds continuing to grow, with $3 billion added to SMSFs over this period, taking the total invested to $418 billion held by 7,500 funds.
The tax office has also clarified rules around borrowing to repair property. SMSFs will be able to borrow to undertake repairs as long as it does not change the character of the dwelling.
The draft ruling also provides clarity over the definition of a single acquirable asset that can be acquired under limited recourse borrowing.
“The previous view of the ATO was that one title equates to one asset. In reality this does not always work. For example if you have an apartment with a separate car park, you might have offended the rules. Now holding that type of asset should be OK,” she says.
“You can now have one structure over a number of titles. As an example, previously, banks would not lend on factory over three titles,” she says.
<a target="_blank" title="ATO" href="https://law.ato.gov.au/atolaw/view.htm?rank=find&amp;criteria=AND~SMSFR%202011%2FD1~basic~exact&amp;target=EF&amp;style=java&amp;sdocid=DSF/SMSFR2011D1/NAT/ATO/00001&amp;recStart=1&amp;PiT=99991231235958&amp;Archived=false&amp;recnum=1&amp;tot=1&amp;pn=RDB:::RDB">The ATO will issue the draft ruling at 2pm today.</a>
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SMSF renovation tax ruling makes DIY property investment more alluring

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Australia’s cities are heading in the wrong direction, according to American futurist Joel Kotkin, a world-renowned supporter of suburban development, who says we should be expanding outwards rather than looking to create our own mini-Manhattans.
Kotkin, who hails from New York but now calls Los Angeles home, is well-placed to comment on whether Australian cities are developing in the right direction.
Los Angeles sprawls outwards into never-ending suburbs while <a href="https://www.propertyobserver.com.au/residential/start-spreading-the-news-australian-cities-must-become-more-like-manhattan-christopher-joye/2011090151384" title="Australia must become more like Manhattan" target="_blank">New York skyscrapers rise up to the heavens</a>.
“I am from New York. You are not Manhattan,” is how he puts it rather bluntly, adding that there are only a handful of places in the world that are conducive to Manhattan-style living.
His criticisms are manifold, ranging from environmental to emotional.
He warns that high-rise living has the potential to ruin what is great about cities like Melbourne and Sydney – the ability to live 15 minutes from the CBD and have a backyard.
Secondly, he worries about who is buying up these apartments and argues that the market in Australia for high-density living is not big enough to sustain the number of apartments being built.
Instead, wealthy businessmen from overseas who want an apartment close to the city who are buying up many of the upmarket ones while Asian families looking for an apartment for their kids to live in when they are studying in Australia are snapping up the studios.
This makes these new suburbs vulnerable to what Kotkin calls the Hong Kong effect – suburbs that feel deserted, where there is no one on the streets.
Anyone who has taken a walk around Docklands after dark might have experienced something similar. Indeed many Australian-based property analysts have made similar observations, with the likes of Metropole’s Michael Yarney noting the large apartment uptake by investors and the sheer number of inner-city apartments up for sale at the moment.
Kotkin calls the move to build greener apartment blocks “garbage” and says all high-density housing does is raise the temperature.
If you want evidence of this, all you need to do he says is spend a summer in New York and note the difference in temperature between Brooklyn and Manhattan, he says.
So what does Kotkin suggest?
He believes Australian cities should be expanding outwards into low-density suburbs supported by better transport infrastructure, such as bus shuttle services and other rapid transport solutions.
“‘Telecommuting’ should be encouraged.  This is a work arrangement where the daily commute to work is replaced by home-based (or even café-based) mobile technology with employees only coming into the city when needed, and perhaps outside of the tradition rush hour,” Kotkin says.
Not surprisingly, Kotkin is very supportive of the government’s National Broadband Network infrastructure project.
With just months to go until construction of the first high-rise Barangaroo building in Sydney and the last parcel of land in Melbourne’s Docklands recently hived off to developers, the sustainability of these high-rise precincts will come increasingly under the spotlight.
His visit to Australia coincides with leaking of the so-called bank “blacklist” of more than 370 no-go apartment projects.
While none of the major banks owned up to the blacklist, if the blogosphere and Twitter responses are anything to go by, the general public are not overly enthused at the thought of Australian cities becoming awash with high-rise apartments (some apparently featuring windowless bedrooms) with many urging the list to be published.
This surprisingly supportive response, perhaps answers the question: Are we ready for Manhattan-style living?
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Urban sprawl should go out, not up

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The challenging trading conditions facing real estate firms in Australia have been highlighted in a new global business failures report by Dun &amp; Bradstreet. 
Real estate firm failures in Australia constitute a far higher proportion of total business failures than the global average, according to the research group. 
The Australian finance, insurance and real estate sector accounted for 16.5% of business failures in the second quarter of 2011, higher than services (14.8%), construction (8.9%) and manufacturing (4.9%). 
The finance, insurance and real estate sector registered a 16.6% increase in failures over the quarter compared with 12 months ago. 
R estate, finance and insurance business failures in advanced countries as a whole accounted for just 5.5% of total failures (made up 3.2% real estate failures, 2.3% finance and insurance failures). 
Globally, real estate failures dropped 14% compared with the same quarter last year. 
In the depressed UK housing market, finance, insurance and real estate failures accounted for only 6.3% of business failures (down 3.2% for the quarter), while in the US the real estate sector contributed just 4.5% of business failures, a quarterly drop of 13.3% 
The increase in Australian failures goes against the global grain, with the D&amp;B report noting a strong decrease in real estate failures globally. 
Overall the number of Australian business failures rose 12.1% year-on-year in the second quarter, up from a 4.1% year-on-year increase in the first quarter of 2011. 
D&amp;B says the rise in insolvencies may reflect “knock-on, lagged effects of the 2008-09 global financial crisis, declines in business credit and higher interest rates”. 
“Outside the mining sector, sentiment is generally still poor and the strong currency is straining profits,” says D&amp;B. 
According to Dun &amp; Bradstreet CEO Christine Christian, insolvency activity in Australia is up across almost all sectors, “with a significant deterioration in retail and service sector failures, reflecting subdued confidence”. 
“There is an increasing risk that the global economic slowdown will intensify the upward trend in insolvency levels. The global economic recovery is running out of steam. Downside risks to growth, including debt crises in Europe and the United States and volatility in financial markets, remain high,” she adds.
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Australian real estate sector struggling: Dun & Bradstreet

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NSW has recorded a 5.4% rise in building approvals on a seasonally adjusted basis in July, helping the nation limp to a 1% increase, according to ABS figures released today.
The 5.4% increase follows a 3.8% increase in June, but comes after two big drops in May (12%) and April (15%).
Victoria suffered the biggest drop of the eastern seaboard states, down 3.1% in July, following a 6.6% gain in June.
Tasmania suffered a 26% drop in building approvals in July
The 1% increase to 12,227 dwellings nationally was the result of an uptick in public sector approvals, which increased by 77% from 256 units to 454 units. Private sector approvals were down 0.7% during July and have fallen for three consecutive months.
Queensland suffered a 14.5% decrease in private sector housing approvals – the biggest fall across all states – and the fourth straight month that housing approvals have fallen as new home builders awaited the start of the state government’s $10,000 building boost, which kicked off on August 1.
<ul>
<li>The seasonally adjusted estimate for private sector houses fell 0.2% in July 2011 to 7,600 houses following a fall of 3.3% in the previous month.</li>
<li>The seasonally adjusted estimate for private sector dwellings excluding houses approved fell 1.4% to 4,173 dwellings following a fall of 4.5% last month.</li>
<li>The seasonally adjusted estimate of the value of total building approved fell 4.4% in July following a fall of 1.4% last month.</li>
<li>The seasonally adjusted estimate for the value of total residential building fell 1.2% and the value of non-residential building fell 9.7%.</li>
</ul>
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NSW building approvals up: ABS

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The Rydges Wollongong will undergo a startling transformation from February next year when it converts from a 70-room hotel into a 90-bed private psychiatric facility. 
The redevelopment of the hotel located at 112 Burelli Street follows a “complex” lease agreement being negotiated between the owner of the building, Australian Property Trust, and new tenant Evolution Health Care. 
A development approval will be lodged by Australian Property Trust with Wollongong City Council within the month to undertake a $4 million refit of the Rydges Hotel property. 
Evolution Health Care will lease the building on a “long-term arrangement”. 
The deal was negotiated by Colliers International’s national director of transaction services – healthcare and retirement living, Phil Smith, as advisor to the Australian Property Trust. 
Smith says the transaction was a long and complex negotiation, and is a great result for both parties and the broader Illawarra community, which is poorly served in terms of mental health. 
The Australian Property Trust acquired the building in 2004 when it was known as the City Pacific Hotel and appointed Rydges to manage the property. 
In 2005, the trust spent $3.25 million upgrading the hotel, including adding nine new rooms. 
Evolution Health Care chairman and CEO Ben Thynne says Wollongong Clinic will deliver state-of-the-art private mental health services to the Illawarra region. 
“Local psychiatrists have, and will continue to, be involved with the planning of the facility, which will offer vital services such as general psychiatry, depression, bi-polar and post-traumatic stress disorders,” he says.
Thynne says the clinic will add 80 jobs and 90 additional private hospital beds to the Illawarra when fully functional.
The Australian Property Trust is a subsidiary of the Melbourne-based ECS Property Group and includes the Rydges North Melbourne and Rydges Eaglehawk Resort in its property portfolio. 
The expansion into the health sector is part of a move to further diversify the unlisted group. Besides its hotel assets, the trust owns residential development sites, land subdivision and commercial property. 
Australian Property Trust CEO Mark Etherington says the conversion of the existing hotel to a private hospital will allow the group to improve income streams and strengthen profitability.
“We have earmarked further acquisitions that will compliment this current model of asset value-add,” he says.
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Wollongong hotel to become psychiatric facility

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Though none of the major banks will own up to creating the leaked buildings “blacklist”, bloggers have urged the unnamed bank to publish the list of more than 370 buildings. 
Westpac says it does not have a blacklist but judges applications on a case-by-case scenario. 
The Commonwealth Bank says it has a “watchlist” of developments that require extra care for credit and valuations but does not have a blacklist of buildings it will not finance in Victoria or elsewhere. 
NAB says it does not have a blacklist and judges each case on its merits. 
ANZ also denied keeping a blacklist.
"We don't keep a blacklist of properties. Lending for property is assessed on a case-by-case basis and is dependent on a number of factors, including how the loan will be serviced, the level of equity the customer has, the value of the asset for which the loan is used, as well as the resale value of the property," a bank spokesperson says.
The general response from bloggers and those on Twitter has been extremely positive, with the banks complimented for their prudent approach and for making it harder for developers to sell dodgy projects. 
The<a href="https://www.propertyobserver.com.au/news/bank-s-blacklist-bans-finance-for-373-buildings/2011091251504?source=flicker1" title="Blacklist" target="_blank"> list of 373 apartment projects was leaked to The Age</a> by mortgage brokers, but the newspaper said it was unable to publish the list for legal reasons. <a target="_blank" href="/news">Mortgage brokers have said their services are more important than ever.</a> 
“It would be good if some public-spirited person would get hold of the bank lists and publish them so the hoi polloi would know what to avoid,” commented EDwardKelly on The Age’s website.
 
“The only problem I have with this approach is that the lists aren't publicly available. Sounds like a sensible approach to me, protects the consumer (but only if they aren't already locked in) as well as the bank, so why not go one step better and get the information out there for all to see so people don't get caught out?” commented another reader.
“What bothers me about this is the large number of people within the cone of silence that have access to this list and know not to go near the place, but there will still be real estate agents trying to sell the apartments to poor sods out there without this crucial info,” added another concerned reader.
Some of the blacklisted projects part of the government's National Rental Affordability Scheme, <a target="_blank" href="/news">which has drawn the ire of charity group Mission Australia.</a>
On Twitter, Steve Kenna from buyers and sellers agents The Real Estate Helpers said news of the list was “good information for agents selling apartments or buyers looking at buying one”.
Gemma from Sydney commented that it was about time that “shoddy developers were called out”. 
“Sure, people need housing and in their rush to secure a place will try and buy anything no matter how badly made or ugly. The banks are doing them a favour. But how to sort out the fact that only the wealthy can now live in the city? Everyone who works there or around there has to commute because they are being pushed further and further out,” she commented.
“Good on banks,” said a reader from Sydney.  “If you go to Pymble (in Sydney), there are so many new buildings just dumped along the Pacific Highway, while the traffic is getting worse and worse. Most of these new apartments are unaffordable.”
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Bank urged to publish building blacklist

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Asia-based buyers continue to invest in the Sydney CBD, with Chinese conglomerate HNA Group the latest to buy prime commercial real estate, following its purchase of 1 York Street for $117 million from Colonial First State.
The 22-storey building formed part of the CFS’s unlisted direct property investment fund and has a net lettable area of 18,400 square metres.
It was acquired by CFS from AMP Asset Management in June 2001 for about $78 million.
AMP Society acquired the building in 1994 as part of a $544 million purchase of UK-based Hammerson Plc's Australian commercial real estate portfolio.
The sale price reflected an initial yield of 8.5% with the deal negotiated by Vince Kernahan, Jon Chomley and Andrew Reed of Colliers International with Aurelio di Napoli from DTZ Sydney advising HNA together with Linda Zhu of DTZ’s Sydney-based China desk.
It follows CFS’s listed Commonwealth Property Office selling 259 George Street in July to the Singapore-based Tay family for $395 million.
Also in July, Singapore's K-REIT fund bought a half share of Mirvac's 8 Chifley Square for about $169 million.
Further purchases are likely from HNA with the group planning to spend around $190 million on real estate purchases in Australia. The company has more than $10 billion in assets under management.
Richard Li, a global investment manager with HNA Group, was reported in The Age as saying the strength of the economy made Australia an attractive place to invest, and ''given the excellent market conditions, HNA is expected to purchase further assets in the future''. The HNA Group is the parent company of Shanghai-based Hainan Airlines.
The York Street building was constructed in 1973 and is a B-grade office building comprising 22 levels of office accommodation, ground floor lobby and parking for 125 vehicles.
 
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Chinese investors snap up Sydney office tower for $117 million

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Buyers have snapped up 34 apartments off the plan out of an available 45 in the Endeavour block at the Breakfast Point masterplanned development in Sydney’s Canada Bay over the weekend.
The Endeavour building forms part of the new Harbour precinct of Breakfast Point and is due for completion in early 2013.
It is one of four unit buildings to be constructed in the Harbour precinct of the development, located on the southern shores of the Parramatta River.
Endeavour's 45 apartments include a mix of layouts: one bedroom plus study, two bedrooms, two bedrooms plus study, three bedrooms and two double-level penthouses with house-like proportions. Endeavour will be completed late next year.
One- and two-bedroom apartments sold from $545,000, three-bedroom apartments sold for $1.3 million each and a penthouse sold for $2.1 million.
Upon completion in 2016, Breakfast Point, the 52-hectare waterfront development, will accommodate 1,865 homes and house up to 5,000 people.
In May, the $2 billion project in reached the $1 billion sales milestone with more than 1,300 homes and apartments sold over the past 11 years by its joint developers Rose Group and Cbus Property, the national construction industry superannuation fund.
<img src="/images/stories/breakfastpoint3.jpg">
The sale of the Endeavour apartments follows 70% of units in another Harbour precinct block, Acacia, selling off the plan in May. 
All four buildings within The Harbour precinct are named after ships that played major roles in the discovery and settlement of Sydney.  A nautical character will be reflected in all of the buildings. 
The Harbour precinct will be enclosed by luxurious gardens and also features The Pier, which includes a residents-only 25-metre horizon lap pool, which flows into a lagoon pool, timber sun deck and a white shingle roof pavilion. 
Some of the Endeavour apartments have views across the Parramatta River.
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Buyers say good morning to Breakfast Point development

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Few estate agents working in regions that are the first recipients of the government’s National Broadband Network are promoting it in their listings.
Those who are mentioning it are taking a long-term view to it adding value to connected properties over time.
Kiama Downs and the township of Minnamurra – about 120 kilometres south of Sydney – were among the first sites on the mainland to benefit from the rollout of the government’s super-fast wholesale broadband project.
Realestate.com.au lists 406 properties for sale in the Kiama region, and just five of these mention having access to the fibre-based network as one of the features of the property.
Robert Perea from Raine &amp; Horne Kiama is promoting the NBN in his listings.
But he says its “early days” regarding the NBN in the Kiama area. 
“The NBN, while generating interest, is a great service, but I don’t believe will adversely affect prices in the area of interest in this listing or future listings,” he says.
<img src="/images/stories/renfrewroad.jpg">
Agents Joe Dingham and Neil Campbell from Ray White Gerringong, about 10 kilometres south of Kiama, both mention access to the broadband network in their listings at 240 Willowvale Road (pictured below) and 46-48 Renfrew Road (pictured above).
<img src="/images/stories/willowviewroad.jpg">
Dingham tells Property Observer although no one as yet has contacted him specifically to enquire about the NBN he expects it will definitely add value to properties.
Eight of the 145 properties in Willunga, about 50 kilometres south of Adelaide, listed for sale on realestate.com.au mention broadband in their write-ups.
Deborah Tucker from Raine &amp; Horne McLaren Vale is selling four lots of land at Magnolia Court, 5 Norman Road, Willunga between $285,000 and $295,000.
She writes: “NBN - (the fast broadband) has been brought to the entrance to Magnolia Court - ready for future connections.”
<img src="/images/stories/waverleydrive.jpg">
Neville Brown from Michelmore Ollwitz First National is selling a two-bedroom house at 13 Waverley Drive, Willunga, asking $700,000. He mentions the house being “National Broadband Network connected” as one of its features.
Brown told Property Observer that while no prospective buyers have enquired about the NBN, he believed it would be a distinct advantage once there is more awareness.
Internet provider Internode recently reported that its first NBN customer, freelance photographer Paul Gosney and his family, relocated from Sydney to Minnamurra after learning that it would one of the first release sites for the network.
Gosney says the NBN will make it easier for him to send files overseas for post-production.
Not everyone is singing the NBN’s praises. 
Opposition spokesman for communications and broadband Malcolm Turnbull has expressed concerns about the government stringing fibre cables overhead rather than underground in a bid to save money on the multibillion-dollar project. 
“My fear is that as the NBN faces blowouts in both the cost and time taken to complete the project, the overwhelming urge will be to override the wishes and interests of local communities and string fibre overhead,” Turnbull says.
“[Broadband Minister Stephen] Conroy has already sacrificed economic responsibility in his rush to build this network, now he is going to trample over the rights of local communities to have a say in the preservation of their own environment and local amenity.”
The other towns where the NBN has been rolled out are Armidale in NSW, the whole of Tasmania, parts of Brunswick in Melbourne; and parts of the Townsville suburbs of Aitkenvale and Mundingburra.
Midway Point, an outer suburb of Hobart, was the first location to get NBN access in August last year. Out of the 312 properties Midway Point listed on Realestate.com.au, 15 mention access to the fibre-based network.
In an interview with the Australian Financial Review NBN Co chief executive Mike Quigley says consumers should know by Christmas whether they will get access to the broadband network within in the next three years.
Main picture courtesy of Tourism New South Wales
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Agents slow to spruik fast broadband

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.

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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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