<html><body>
The major banks have come to different conclusions about the future movement of interest rates following Glenn Stevens’ testimony to the House of Representatives Economics Committee. 
Stevens told the committee the RBA had the capacity to hold firm during the current economic turmoil while keeping a close eye on inflation and local demand. 
Most hawkish is the Commonwealth Bank, which is sticking with earlier forecasts of a 0.25% increase in November. The bank is forecasting the cash rate will rise to 5.75% by 2013. 
“In our view, it appears that the risk is the RBA leaves rates on hold until the uncertainty over the global economic outlook fades. We still expect the next move by the RBA to be a hike,” Commonwealth Bank economists say. 
CBA is forecasting inflation to rise to 3.2% in the 2012 calendar year following a forecasted 2.8% increase in 2011 calendar year. Unemployment is expected to drop from 4.9% to 4.8%. 
The bank’s economists say a pick-up in housing loan approvals over the three months to June should help stem the deterioration in housing credit growth. 
ANZ, which in the wake of the August correction in equity markets said emergency rate cuts were possible, is now forecasting rates to “remain on hold for the foreseeable future”.
“We cannot rule out the possibility of interest rate cuts given the now softer domestic/global economic outlook and the potential for greater dislocation in global financial markets. Indeed, while we broadly agree with the RBA's optimistic medium-term outlook, there are some clear near-term risks, most importantly a potential rise in the unemployment rate,” says Riki Polygenis, senior economist at ANZ.
“But any monetary policy easing (at this stage) is unlikely to be early or aggressive given the RBA's ongoing inflation concerns."
NAB has adjusted its expectations for a 25-basis-point hike in December and now “expect a considerable period of inaction by the RBA” with a rate increase in mid-2012. 
“The downside risks to the Australian economy have built over the past few months. Concerns for international growth prospects have been reflected in sharp falls in Australian equity markets since the last week of July which, if sustained, are likely to weaken consumer spending and erode business confidence. This has come at a time when indicators of the Australian economy, such as employment growth and business conditions reported in the NAB Business Survey, have slowed, tempering expectations for economic growth in the second half of the year,” says NAB economists Alan Oster and Rob Henderson. 
HSBC chief economist Paul Bloxham says the next move is more likely to be up than down, on the back of rising inflation.
</body></html>

lschlesinger-FZcF9M3vE6

Commonwealth Bank expects rates to rise, other banks not so sure

<html><body>
Property developer Lend Lease has warned of a weaker residential outlook as it revealed a 50% increase in annual profits. 
Lend Lease delivered an operating profit after tax for the year ended 30 June 2011 of $485.3 million.
Profit growth was achieved across all regions, even though challenging economic conditions continued in offshore markets.
Chief executive officer Steve McCann says it remains cautious about the residential market though noting that risk of interest rate increases has receding.
“Continued strong employment levels should improve consumer sentiment over time,” McCann says.
The outlook for Australia, Lend Lease’s biggest market, is relatively unstable, compared with greater uncertainty in the other international markets it operates in including the US and Europe.
Overall though, the developer believes property fundamentals remain sound and that there is a strong “equity appetite for Australian property and infrastructure”.
The financial results reveal that Lend Lease exchanged contracts on 2,299 residential land lots over the financial year with a gross value of $497 million a decrease of 14% from the previous year.
However, residential pre-sales are up 29% and the decline in residential land settlements has been offset by an increase in average lot prices. 
On the commercial front, the results note the completion of the 58,000 square metre Darling Quarter mixed-use development, tenanted by the Commonwealth Bank, and approval of the $6 billion Barangaroo development. 
Construction of the basement at Barangaroo, which will service the three office towers to be built on the site, will commence in the coming weeks with the construction of the first tower due to start before the end of the year. 
McCann says Lend Lease is in discussion with major Barangaroo tenants with further details to be released over the coming months. 
In Victoria Harbour the Convesso and Serrata residential towers are under construction with pre-sales levels “strong”. Construction of the 60 metre high C7 commercial office has commenced and will be anchor tenanted by engineering firm Aurecon. Construction of the 30-storey Concavo, another residential tower in the harbour, will be launched in October. 
Currency fluctuations led to Lend Lease’s property investment portfolio declining by $258 million over the financial year to be currently valued at $2 billion. Two thirds of its assets are held in the US and Europe.
The portfolio generated just over $100 million in income compared to $137 million in the previous financial year.
</body></html>

Lend Lease profits up 50%, but it warns of tough times ahead

<html><body>
Comments made by RBA governor Glenn Stevens today suggest the bank will hold tight on interest rates while global "anxiety” remains and expectations that inflationary pressures may ease.
In response to questions about monetary policy at House of Representatives Economics Committee meeting in Melbourne, Stevens said that during “times of extreme turbulence, it is good to sit still”
“We are in a position to exert a certain degree of restraint right now - inflation looks like it is OK in core terms,” he said.
He also hinted that the RBA could cut rates if the global situation deteriorated alluding to the big cuts it made to interest rates in late 2008, early 2009 following the GFC.
Stevens said it monetary policy continued to be about “balancing various forces (global and local)” and that it was not getting any easier.
On the global front, while he said uncertainty has not gotten worse, “some serious volatility in equity markets” has been witnessed this week indicating there is still a bit of angst out there in international financial markets.
The key concerns are the sovereign debt issues facing the US and Europe, a problem which Australia does not have to contend with. He said the prospects in Asia remain good and that the Chinese economy is still going well.
“But we cannot say the [global] anxiety has gone away.”
The RBA will look at global factors in light on what impact they might have on demand and hence on prices.
He said households were being prudent by saving, but noted the negative effects were being felt by retailing following a period of 15 years of “appalling saving and high spending”
The increase in savings and more caution, Stevens said would leave households finances in good position, if there is a downturn at some point.
In his speech preceding questions from the committee Stevens noted that “asset prices have declined, credit growth has moderated further and the exchange rate remains very high”.
“While each of these is affected by factors other than monetary policy, together they suggest a fair degree of restraint is being exerted by financial conditions. Under the circumstances, the Board judged the most prudent course was to sit still through this period, in spite of inflation data that, on their face, continue to be concerning.”
“Looking ahead, the year-ended CPI inflation rate will probably remain well above 3% in the September quarter. It is then likely to come down as the impact of last summer's floods on food prices continues to unwind; we will see those effects around the end of the year and the early part of next year.” 
Stevens says the bank will abstract carbon price effects in setting monetary policy, just as it did with the implementation of the GST a decade ago. 
“It is the more persistent path of inflation on which the bank must focus.”
</body></html>

RBA likely to sit on its hands as global anxiety persists

<html><body>
The lawyer representing a couple from Denmark, Western Australia suing Queensland-based The Investors Club (TIC) over alleged misleading and deceptive conduct says other investors might also consider similar action. 
"This is the first case that we have filed against The Investors Club, however is not inconceivable that there may be other similar cases,” says Carita Kazakoff from law firm Slater &amp; Gordon.
Hugh Wilson and Marilee Coombs are suing TIC and two employees, Bryn Campbell and Brian Walters, after they were convinced to purchase a unit that they claim they later discovered was grossly overpriced.
Slater &amp; Gordon has begun legal action in the Federal Court in Perth, with the case set to be heard on September 12. 
They couple allege the company and the two staff members engaged in misleading and deceptive conduct when they advised them to purchase the property on the Gold Coast in 2007. 
Kazakoff says Wilson and Coombs were told by TIC that the Kirribilli Heights unit in Highland Park was worth up to $1 million, and they would make an instant profit of $300,000 on settlement. 
However, after the couple purchased the property an independent valuation revealed the unit was worth as little as $450,000 at the time of the deal. 
“My clients, who are in their late 50s and 60s, wanted a secure investment for their future. They trusted the professional advice given to them by The Investors Club. However, after purchasing the Gold Coast property they are now hundreds of thousands of dollars out of pocket, and at risk of losing their family home. 
“The Investors Club and its two staff members ought to have known that the purchase price of the property was well above market value, and that promises of an instant profit, and appreciation in value of $60,000 in the first year were unreasonable,” she says. 
Coombs says she relied on the advice and assurances of The Investors Club and Campbell and Walters that this was a sound investment. 
In a statement to Property Observer, The Investors Club says it is “concerned to hear that an investor is taking action against a branch manager and support member in Western Australia over information provided for a property purchase in Kirribilli Heights Complex, Queensland, before the global financial crisis in 2007”.
“The property was valued at the time of purchase by the lender’s valuer, a respected independent national valuer, at the sale price of $905,000. Six staff members at The Investors Club, including the branch manager who is presently being sued, also purchased property in the complex, with a similar valuation.
“The investor, who is now suing The Investors Club, struggled with the mortgage repayments and the line of credit they had taken on the loan when the global financial crisis hit. They had the property retrospectively valued (in the last 12 months), returning a $450,000 valuation. The valuation returned at a much lower price as another owner in the complex selling four units as mortgagee in possession sales, when the financial crisis hit, brought down prices for all the properties in the complex.
“Other investors in the complex are experiencing a similar fall in value and have followed The Investors Club strategy for investing in property for the long term, holding through this unexpected turn of events unique to this block. In its experience The Investors Club have seen house prices come back one to three years after forced sales have pushed them down.
“The Investors Club strategy is to make property investing as safe as possible; it recommended a broker to the investor who denied them the loan on the property.”
The club says it has helped over 9,700 investors, “without any complaint to a state tribunal in its 18 years of operation”.
</body></html>

Queensland property investors sue over what they say is inflated price

<html><body>
The Illawarra region can absorb the closure of Bluescope’s Port Kembla steel plant with only moderate impact on property prices, according to hotspotting.com.au director Terry Ryder. 
His comments are at odds with some analysts’ predictions of a 20% drop in property prices on the back of the factory closure. 
“I don't think the BlueScope announcement will have a major impact on prices in the Illawarra region. The City of Wollongong has a population above 200,000 and while the BlueScope job losses don't help the local economy, the city is big enough to absorb it, particularly given the other, positive things that are happening,” Ryder says. 
“Manufacturing accounts for about 12% of jobs in Wollongong, and there are many other strong employment sectors. Tourism, retail, health care, education and construction are all big sectors in Wollongong.” 
Another positive, Ryder says, is that BHP will seek to employ many of those who lose their BlueScope jobs. 
Ryder points to comments from Phil Ruthven, chairman of research group IBISWorld, who said recently that he expected the Illawarra region to move increasingly away from manufacturing jobs and more towards a tourism-based economy. 
Ruthven expects that tourism alone will “probably replace all the manufacturing jobs you've got in steel ... over the next 20 years, or 10 years even”. 
“There's a substantial amount of new development happening in the region, including a $250 million shopping centre by GPT, a $315 million health facility, a $40 million apartment development and a Buddhist university campus,” Ryder says.
</body></html>

BlueScope factory closure will not kill Illawarra region: Terry Ryder

<html><body>
More conservative A-REITs with limited exposure to corporate and development activities have been the strongest performers in the sector over the last six months.
 
Analysis by Atchison Consultants has found that property developers Stockland and Australand have been among the worst performers, while office REITs have been among the strongest performers.
 
Over the six months to August, Stockland and Australand’s share prices have fallen by more than 26%, though they are some way off the worst-performing stock, supermarket owner Centro, whose stock has fallen more than 70%.
 
“Common determinants of the underperformance of these A-REITs included exposure to residential property development markets, disappointing earnings results and restructuring and corporate activities,” says Mark Wist, senior asset consultant at Atchison. 
“Stockland’s performance may have been worse but for its announced buyback of 5% of its issued capital, which should be accretive to both earnings and asset backing.” 
Strong performers include two office trusts – the Commonwealth Property Office Fund and the Investa Office Fund, which have lost less than 5% of their value over the six-month period, compared with All Ordinaries Accumulation Index, which fell by 17% over the period. 
Besides being conservative, Wist says other common drivers of strong performers include solid net operating income growth, the ability to meet earnings guidance and a willingness to consider the needs of investors. 
“An exception to the corporate activity element was Investa’s takeover of ING Office Fund in March, which corresponded to a share price increase, as it resolved rather than creating outstanding uncertainty,” he says. 
 
Six-month A-REIT performance – the best and worst 
<table width="522" cellpadding="0" cellspacing="0" border="0"><tbody>
<tr>
<td valign="bottom" nowrap width="277">
Best performers of S&amp;P/ASX 300 A-REIT Accumulation Index
</td>
<td valign="bottom" nowrap width="47">
 
</td>
<td valign="bottom" nowrap width="198">
Performance over six months to 19/08/2011
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="277">
Commonwealth Property Office Fund
</td>
<td valign="bottom" nowrap width="47">
CPA
</td>
<td valign="bottom" nowrap width="198">
-3.4%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="277">
Challenger Diversified Property Group
</td>
<td valign="bottom" nowrap width="47">
CDI
</td>
<td valign="bottom" nowrap width="198">
-4.0%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="277">
Investa Office Fund
</td>
<td valign="bottom" nowrap width="47">
IOF
</td>
<td valign="bottom" nowrap width="198">
-4.9%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="277">
Charter Hall Retail REIT
</td>
<td valign="bottom" nowrap width="47">
CQR
</td>
<td valign="bottom" nowrap width="198">
-5.8%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="277">
General Property Trust
</td>
<td valign="bottom" nowrap width="47">
GPT
</td>
<td valign="bottom" nowrap width="198">
-7.0%
</td>
</tr>
</tbody></table>
 
<table width="522" cellpadding="0" cellspacing="0" border="0"><tbody>
<tr>
<td valign="bottom" nowrap width="277">
Worst performers of S&amp;P/ASX 300 A-REIT Accumulation Index
</td>
<td valign="bottom" nowrap width="47">
 
</td>
<td valign="bottom" nowrap width="198">
Performance over six months to 19/08/2011
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="277">
Centro Properties Group
</td>
<td valign="bottom" nowrap width="47">
CNP
</td>
<td valign="bottom" nowrap width="198">
-72.7%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="277">
FKP Property Group
</td>
<td valign="bottom" nowrap width="47">
FKP
</td>
<td valign="bottom" nowrap width="198">
-46.6%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="277">
Charter Hall Group
</td>
<td valign="bottom" nowrap width="47">
CHC
</td>
<td valign="bottom" nowrap width="198">
-27.8%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="277">
Stockland
</td>
<td valign="bottom" nowrap width="47">
SGP
</td>
<td valign="bottom" nowrap width="198">
-26.8%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="277">
Australand Property Group
</td>
<td valign="bottom" nowrap width="47">
ALZ
</td>
<td valign="bottom" nowrap width="198">
-26.5%
</td>
</tr>
</tbody></table>
 Wist says the future of Centro is dependent on whether shareholders vote in favour of a corporate restructure that will “extinguished any hope of rescuing any investor capital beyond the 5¢ for convertible bond investors” and cause it to emerge as a $4.4 billion new retail REIT “effectively controlled by the lenders”. 
A vote against the restructure would be a disaster, Wist says.
</body></html>

Conservative A-REITs performing best: Analyst

<html><body>
Perth has registered the biggest improvement in housing affordability among capital cities over the June quarter, according to the HIA-Commonwealth Bank Housing Affordability Index. 
Housing affordability improved by 3.2% in the WA capital, which led a 0.8% improvement nationally over the quarter. 
Perth was followed by Sydney (2%), Melbourne (1.9%), Hobart (1.5%), Canberra (1%) and Adelaide (0.2%) 
Brisbane was the only capital city where affordability declined, falling by 2.7%. 
Outside of the capital cities, affordability improved in the non-metropolitan regions of New South Wales (3%), Victoria (2%), and Western Australia (2.5%), but deteriorated in South Australia (-0.4%) and Tasmania (-3%). Non-metropolitan Queensland did not register any change in affordability during the quarter.
The national improvement took the Affordability Index to a level that is 7.2% above the level registered in the June 2010 quarter. 
“Earnings growth and a small decrease in mortgage lending rates worked to improve housing affordability over the June 2011 quarter. These factors more than offset a small increase in the median house price,” says HIA’s senior economist, Andrew Harvey. 
The HIA says it was predominantly global economic uncertainty that led to this improvement in Australian housing affordability. 
The RBA kept rates on hold during the quarter and improved conditions for Australian banks in wholesale lending markets facilitated a slight lowering of mortgage lending rates, it says. 
In addition, average weekly ordinary time earnings posted respectable growth of 1.2% in the quarter, equivalent to an annualised rate of 4.8%, the HIA says.
</body></html>

Housing affordability improves in all capitals but Brisbane

<html><body>
Home loan approvals from first-home buyers jumped to 35% in June, compared with an average of 27%, according to mortgage broker Mortgage Choice.
The significant monthly increase, reported by AAP, follows the mortgage broker revealing in its annual results released yesterday, that the number of first home buyer dwellings financed in the June 2011 quarter was up 13.4% on the March quarter.
The improvement in first home buyer activity follows a lacklustre year of mortgage take-up with Mortgage Choice reported a 2% drop in mortgage approvals against an overall nationwide contraction of 7.8%.
Mortgage Choice says a 35% drop in first-home buyer mortgages for the financial year was a major contributing factor in the contraction in mortgage commitments as existing home owners need to sell to first-home buyers before moving onto their next property.
Mortgage Choice CEO Michael Russell attributed the fall in numbers to the ending of the boosted first-home owners' grant, which he says brought forward purchases in 2009 and 2010.
However, Russell expects housing finance commitment numbers, which improved in the June 2011 quarter, to continue for the remainder of 2012 if interest rates hold steady, employment remains healthy and lenders continue to discount their mortgages. Yesterday, NAB subsidiary UBank cut its three-year fixed rate loan by 50 basis points to 6.59%, 20 basis points below its standard variable loan. News about a return of first home buyers follows the federal Treasury saying it had never investigated the impact of the decade old first-home owners’ grant on inflation.
The grant was introduced in July 2000. Treasury secretary Martin Parkinson said it had not “undertaken any formal modelling on house prices or the inflationary impact of the scheme”.
Federal treasurer Wayne Swan has admitted the grant has had a small effect on house prices, the Australian Financial Review reported.
</body></html>

First-home buyer numbers up: Mortgage Choice

<html><body>
Redundancy packages will not rescue the Illawarra property market, according to property analyst Michael Yardney, CEO of Metropole Property Strategists.
The regional area is about to lose its main employer, Bluescope Steel, and about 800 jobs when the Port Kembla factory is closed.
David Laing, Property Council of Australia’s Illawarra chairman, has suggested some employees receiving large redundancy packages may fuel property purchases in the short term, but Yardney disagrees.
“People won’t stay in the region unless there are jobs and a means for them to earn an income,” Yardney tells Property Observer.
Instead he expects a substantial drop in property prices and says it could take up to a decade for the market to recover.
According to Yardney, the only beneficiaries could be the resource-rich regions of WA and North Queensland, where steel workers might look to transfer their skills.
“Having such a large work force disappear from a small demographical area will result in less demand and will also affect already shaky market sentiment –redundancy payments are irrelevant,” Yardney says.
“People won’t buy until they have job security. They will take the opportunity to leave the area.”
Yardney also warns of a flow-on effect to other parts of the local economy, with small businesses such as car dealerships, supermarkets and furniture stores suffering.
Recovering will be dependent on how long it takes for different industries to establish themselves in the area and how councils respond.
“When BHP shut its steel works in the late 1990s it took a long time for Newcastle to recover,” he says.
In the case of Heinz pulling out of Dandenong in July 2000, Yardney says the region was insulated because there were other industries were people could find jobs.
The lesson for investors he says is to only invest in area where there is a wide demographic of people and a wide-spread economy.
MacroPlan Australia senior economist Jason Anderson is forecasting a 20% decline in Illawarra property values while agents in the area are forecasting a surge in vacancies for both commercial and residential properties, the Australian Financial Review reported.
</body></html>

BlueScope Steel closure will severely hurt Illawarra market: Michael Yardney

<html><body>
The median price of Melbourne land has fallen for the second consecutive quarter, down 2.5% to $220,000, as supply levels reach their highest point since 2008, according to research by Oliver Hume.
In the March quarter, Melbourne land prices fell by 0.3% (or $750) to $225,000.
Based on the current rate of project sales, 2,250 Melbourne lots are available for sale equating to 3.4 months of supply. Six months’ supply is considered to be the industry benchmark, but that was last experienced in the September quarter of 2006.
The Olive Hume June quarter house-and-land package index shows a median house-and-land package cost of $457,209, up 2.8% since the start of the year.
However, land, which peaked at 51% of the package price in the December quarter 2010, has now slipped back to around 48%.
In contrast, the median building permit value has increased by 8.4% or $12,600 since the start of the year, to $237,209.
This trend contradicts wider market sentiment, which suggests that in the current climate purchasers are spending more on land than on houses.
While median lot size in the first stage of each new project in the June quarter increased by about 6.6% to 468 square metres the median house size median increased by about 8% to 250 square metres.
The City of Wyndham, which has the highest median house-and-land package at over $515,000, is also where the biggest houses are being built in relation to the land size.
Houses in Wyndham are being built on 55% of the block at a median permit price of $284,000.
Residential developments in Point Cook account for one-third of all dwelling growth in the City of Wyndham over the six months to June 2011, or about 730 dwellings.
Realestate.com.au lists more than 500 blocks of land up for sale in Wyndham, with prices ranging from $340,000 for a 500-square-metre block to $650,000 for a 626-square-metre block.
According to Oliver Hume, Melbourne has most likely reached the peak of the current land-price cycle, with the decline in first-home buyers a key factor.
First-home buyer activity over the last six months has declined from around 70% to around 45% of all buyers, with a greater reliance on upgrading buyers to underpin sales.
“However, this market segment is subject to the vagaries of the established housing market, where auction clearance rates are declining and are now worse than during the global financial crisis and in line with levels last experienced in 2004,” the report says.
The most affordable municipality is Cardinia, with a house-and-land package median of $393,725. It is the only municipality with a median below $400,000.
</body></html>

Melbourne land price falls for second consecutive quarter

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

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News