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Sydney was the only capital city where rental vacancies eased over the month of July, according new research by property research company SQM Research. 
Vacancies eased by 0.2% to 1.6% during the month of July. A year ago the vacancy rate stood at 1.5%. 
Canberra again recorded the tightest vacancy rate for the month of July –  remaining at 0.7, or a total of 333 vacancies. 
Vacancies in Brisbane, Perth and Darwin all fell by 0.1% during the month of July. 
The Melbourne vacancy rate remained unchanged at 2.8%, with 10,238 properties available for rent. 
Nationally residential vacancies have plateaued for the month of July, remaining at a tight 1.9% for the second consecutive month. 
Total vacancies stand at 49,466 nationally, compared with 48,330 in July 2010. 
SQM managing director Louis Christopher says: “A general oversupply of stock for sale and an undersupply of properties for rent. That is where the market is right now. It perfectly explains why we have falling house prices while rents are rising at a faster rate than inflation.” 
<table cellpadding="0" cellspacing="0" border="0"><tbody>
<tr>
<td>
City
</td>
<td>
Vacancies July 2010
</td>
<td>
Vacancy %
</td>
<td>
Vacancies June 2011
</td>
<td>
Vacancy %
</td>
<td>
Vacancies July 2011
</td>
<td>
Vacancy %
</td>
</tr>
<tr>
<td>
Sydney
</td>
<td>
8398
</td>
<td>
1.5
</td>
<td>
7883
</td>
<td>
1.4
</td>
<td>
8575
</td>
<td>
1.6
</td>
</tr>
<tr>
<td>
Melbourne
</td>
<td>
9311
</td>
<td>
2.6
</td>
<td>
10086
</td>
<td>
2.8
</td>
<td>
10238
</td>
<td>
2.8
</td>
</tr>
<tr>
<td>
Brisbane
</td>
<td>
5739
</td>
<td>
2.3
</td>
<td>
5272
</td>
<td>
2.1
</td>
<td>
5018
</td>
<td>
2.0
</td>
</tr>
<tr>
<td>
Adelaide
</td>
<td>
1440
</td>
<td>
1.0
</td>
<td>
2277
</td>
<td>
1.6
</td>
<td>
2286
</td>
<td>
1.6
</td>
</tr>
<tr>
<td>
Perth
</td>
<td>
2591
</td>
<td>
1.6
</td>
<td>
2005
</td>
<td>
1.3
</td>
<td>
1900
</td>
<td>
1.2
</td>
</tr>
<tr>
<td>
Canberra
</td>
<td>
268
</td>
<td>
0.6
</td>
<td>
332
</td>
<td>
0.7
</td>
<td>
333
</td>
<td>
0.7
</td>
</tr>
<tr>
<td>
Hobart
</td>
<td>
307
</td>
<td>
1.3
</td>
<td>
451
</td>
<td>
1.9
</td>
<td>
442
</td>
<td>
1.9
</td>
</tr>
<tr>
<td>
Darwin
</td>
<td>
212
</td>
<td>
0.9
</td>
<td>
282
</td>
<td>
1.2
</td>
<td>
261
</td>
<td>
1.1
</td>
</tr>
<tr>
<td>
National
</td>
<td>
48330
</td>
<td>
1.9
</td>
<td>
49125
</td>
<td>
1.9
</td>
<td>
49466
</td>
<td>
1.9
</td>
</tr>
</tbody></table>
 
Perth is the capital city to experience the largest year-on-year decline, falling by 0.4% since July 2010.
 
The capital city to experience the largest year-on-year growth was Adelaide, rising by 0.6% to 1.6%, or a total of 2,286 vacancies.
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lschlesinger-FZcF9M3vE6

Rental vacancies ease in Sydney, plateau nationally

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Australian government employees’ super fund ARIA (Australian Reward Investment Alliance) is considering buying half of Perth’s QV1 office building for $300 million.
The 43-storey office tower at 250 St George Terrace was designed by architect Harry Seidler and completed in September 1991. It overlooks the Swan River.
It cost about $340 million to build.
The super fund is carrying out due diligence on the building, according to a report in the Australian Financial Review.
If the sale goes ahead it will be the biggest office deal of the year in Perth.
However, it is by no means certain. In April this year, Queensland Investment Corporation conducted due diligence on a half-share of QV1 but did not proceed with the purchase.
Up for sale is the half share owned by property group Dexus, which appointed CBRE as selling agent in August 2010. Rob Sewell, Rick Butler and Peter Agostino from CBRE are in charge of the sale.
The other half is owned by the Investa Property Group, which had pre-emptive rights to buy the half owned by Dexus.
Tenants include Shell, Chevron, Allens Arthur Robinson, Texaco, Freehills and PwC.
According to the QV1 website it is fully tenanted.
ARIA has a $2.5 billion unlisted property portfolio.
The super fund is being assisted by the Eureka Property Group, which last year helped ARIA acquire a tower on Clarence Street in Sydney for $83 million.
Office vacancies in Perth have dropped from more than 10% to 7.8% over the six months to July, with virtually no prime space available in the city.
The last major office transaction in Perth took place in June when half of 108 St George Terrace, the BankWest Tower, was sold for $260 million to US fund manager Brookfield Asset Management.
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Government employee super fund tipped to buy half of Perth office tower QV1

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Listed mortgage broker Mortgage Choice has revealed 2011 full-year cash profits of $15.9 million, an increase of 7.4% on the $14.8 million achieved in the previous year.
On an IFRS (international financial reporting standards) basis, net profit after tax was $27.5 million is up 17% on $23.5 million achieved in 2010.
The sold result was achieved despite CEO Michael Russell calling the last year “one of the most demanding for the company’s brokers and staff in our 19 years of operation”.
The franchise group’s mortgage book rose 6% to $42.4 billion on the back of significant franchise network growth “during a period defined by the financial conservatism of consumers and businesses”.
It 523 brokers generated $9.9 billion in housing loan approvals.
“We are pleased to announce a 7.4% rise in cash profit, a 5.4% lift in franchise numbers, our group market share reaching 4.1% of all new home loans in Australia and our customer satisfaction rating averaging 92.3% for the year,” Russell says. “We also saw stable productivity from our Mortgage Choice brokers, who average 58 loans each per year, and a doubling of the brokers in our aggregation arm, LoanKit.”
Russell says if mortgage conditions remain subdued for a number of years, its brokers are “well equipped to continue to run successful operations that concentrate on areas of growth located within both the home loan market and other realms of personal and commercial finance”.
“If interest rates hold steady into the 2012 calendar year, which is looking more likely, employment remains healthy and vendor discounting continues at this pace we could well see a second and third consecutive quarter of housing finance growth to finish off the calendar year,” he says.
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Mortgage Choice cash profits up 7% to $16 million

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Residential and commercial construction remains in the doldrums, according to the latest ABS statics.
The value of residential building construction undertaken during the June quarter fell 4.1% while commercial construction fell 6.1% on a seasonally adjusted basis.
During the June quarter just over $9.5 billion in residential building work was undertaken compared to $10.1 billion in the March quarter. Strong activity levels occurred in Queensland, with construction work up 14.9% over the quarter
Westpac says the state is experiencing a “strong post flood rebound” with strength in “infrastructure activity, both private and public”.
The biggest slump in construction activity occurred in the Northern Territory (down 19%) while among the bigger states NSW recording a decline of 4.4% with Victoria down 3.1%.
“Weakness was generally evident elsewhere. Public building activity is weakening as stimulus is being unwound. The housing sector is facing a number of headwinds and private non-residential building activity remains weak,” Westpac says.
The value of alterations and additions to existing houses increased marginally from $1.73 billion in the March quarter to $1.79 billion over the June quarter.
For the year to date, the value of residential building construction undertaken is down 7.6% while commercial building is down 23.2%. Westpac said construction work in the second quarter was broadly in line with expectations.
The HIA called the figures "a disappointing update for new housing activity".
HIA chief economist Harley Dale said: “New residential building work done fell by 5.4% reflecting a 1.8% decline in detached housing and a slump of 11.9% in "other dwellings".
“This result suggests that new dwelling investment will detract from GDP growth in the June quarter national accounts due for release in two week's time.”
Overall, construction activity rose 0.7% over the June quarter and is up 2% on the year due to engineering construction increasing 5.9% over the quarter and 21.2% for the year to date.
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New home building slumps in June quarter

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Median house prices in the resource boom town of Gladstone, 550 kilometres north of Brisbane, increased by 6.1% over the June quarter, according to Real Estate Institute of Queensland figures. The median house price in <a target="_blank" title="Gladstone" href="/news">Gladstone </a>now stands at $440,250 and has grown 10.8% over the year to June. The institute does not provide the number of properties sold, but realestate.com.au listings reveal that around 115 Gladstone properties changed hands over the three-months period. The most expensive Gladstone house currently up for sale on realestate.com.au is a six-bedroom, two-bathroom dwelling on a 1,500-square-metre block at 3 Yarroon Street, being sold by Darryle Branthwaite from Raine &amp; Horne Gladstone. The property is being targeted at developers and is already zoned for high-density residential with a price tag of $1.2 million.
The surge in houses prices in Gladstone follows the REIQ revealing that <a href="https://www.propertyobserver.com.au/queensland/gladstone-almost-out-of-rental-space-at-height-of-mining-boom/2011081651182" title="Gladstone almost out of rental space" target="_blank">rental vacancies over the June quarter fell from 1.4% to just 0.6% </a>on the back of big energy, mining and infrastructure projects scheduled to commence in the region over the next 10 years. “The multibillion-dollar investment in Queensland’s resources industry in the Central Queensland region is again behind Gladstone’s strong performance but we are also seeing this market strength radiate out to its neighbours of Mackay and Rockhampton in this quarter as well,” says chairwoman Pamela Bennett. Mackay’s median house price increased 4.4% to $413,500 over the quarter, while the number of preliminary house sales in Rockhampton was up 23% compared with the previous quarter.
According to Bennett, the strength of Queensland’s resources sector will underpin the Queensland property market more broadly from the second half of 2012 or early 2013. 
Latest figures from the institute show the median price of Coast housing fell by 0.1% during the three-month period and are down 2.8% for the year to June. It left the median price of Sunshine Coast houses at $450,000 at the end of the June quarter.
The three-month result outshone the Gold Coast (down 6.1%), the Fraser Coast (down 5.1%), <a target="_blank" title="Ipswich" href="/news">Ipswich </a>(down 4.7%), <a target="_blank" title="Cairns" href="/news">Cairns </a>(down 5.6%) and Rockhampton (down 3.9%).
The Sunshine Coast also performed well in volume of sales for the quarter, with figures slightly up while the Gold Coast fell 9% and Cairns was down 10%.
Best-performing suburb for the 12 months was the <a target="_blank" title="Mooloolah Valley" href="/news">Mooloolah Valley</a>, where the median price of a house rose 20.2% to $478,000 while <a target="_blank" title="Moffat Beach" href="/news">Moffat Beach</a> also fared well, up 13.5% to $520,000.
<a target="_blank" title="Doonan" href="/news">Doonan </a>was up 11.9% to $670,000 and <a target="_blank" title="Parrerrea" href="/news">Parrearra </a>rose 8.4% to $535,000.
At the other end of the scale, the median price of a house at Sunshine Beach fell 34.6% over the 12 months to June 30, down to $1.23 million.
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Gladstone Queensland's top performer: REIQ

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Investors looking for holiday rental properties might be better off considering self-catering apartments rather than bed and breakfasts or guest houses, according to a new survey.
Self-contained apartments had the highest national occupancy average rate of 40% in the June 2011 quarter, a Nielsen survey of 900 small accommodation owners commissioned by online holiday listings group Stayz has found.
In comparison, the occupancy rates for holiday houses, cabins and cottages over the period was just 27% and 25% for bed and breakfasts.
Stayz group business development director Justin Butterworth told Property Observer he had noticed a gradual trend of travellers looking for privacy and space, meaning “the configuration of holiday homes is appealing to more and more travellers”.
There is also the issue of price – B&amp;Bs and guesthouses add greater value in terms of the catering component, but at a higher price.
He says self-contained apartments have the versatility of suiting holidaymakers, business travellers and those in the process of relocating.
“They are also suitable for smaller groups,” he says, with families comprising 43% of those who stay in self-contained apartments, couples comprising 33% couples, and friends 15%.
“They access more of the market.”
The survey found that self-contained apartments generated the highest revenue – $8,192 per property per quarter, with holiday houses, cabins and cottages managing $3,048 and B&amp;Bs $2,214 – less than half the average for the entire sector ($4,553).
On average, small accommodation owners earn about $700 per weekend.
The sector as a whole registered a 30% vacancy rate during the quarter, with natural disasters and the strong currency factors in the low occupancy rate. The survey did not take into account seasonal variation.
Possibly the priciest guesthouse on the market currently is Mona, a historic Braidwood property offering guest house accommodation that has been listed by operators Greg and Kerry Schneider.
It’s a 45-hectare property with an 1890s homestead listed through Chris Meares of Meares &amp; Associates in conjunction with Christie's International Real Estate agent Ken Jacobs with a $5.5 million asking price.
<img src="/images/stories/monaguest.jpg" style="border-style: initial; border-color: initial;">
It includes a 1903 coach house used by Cobb &amp; Co (pictured above). Its stables, which date from the 1860s, have been converted into a marble-tiled 7,000-litre plunge pool for guests.
<img src="/images/stories/nimbin.jpg">
More affordable is Grey Gum Lodge (pictured above) in the hippie town of Nimbin, NSW, being sold with $629,000 hopes. It includes four queen-sized bedrooms and two double bed rooms all with en suite bathrooms and is set on 1,214 square metre block with views to Lillian Rock and Border Range. The property is being sold by Chris Hayward from GNF Real Estate Murwillumbah.
According to the Stayz survey, accommodation owners expect demand for self-contained apartments rise the most, with occupancy rates increasing from 40% to 50% in the September quarter before dropping slightly to 49% by June next year.
Occupancy rates for holiday houses, cabins and cottages are expected to increase from 27% to 31% next quarter and to rise again to 34% by June next year.
B&amp;B occupancies are forecasted to rise 3% to 28% next quarter and to rise again to 35% by June next year.
Holiday property owners in Western Australia are the most optimistic, with 45% expecting conditions to improve, while the gloomiest are in Tasmania, with nearly one in two (49%) expecting conditions to worsen.
Western Australia and Queensland had the highest occupancy rates during the quarter of 39% and 36%. South Australia, Tasmania and Queensland had occupancy rates of 30%, 31% and 36% respectively, while Victoria and NSW had the lowest each at 25%.
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Privacy preferences make holiday apartments better investments than B&Bs

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Dual-key apartments, which offer the option of separate lives or extra income, are a rarity in Australia. The two-in-one apartments have been available for the past decade, with Frasers leading the field.
According to Frasers group sales manager Adam Sparkes, dual-key apartments offer investors higher rental yield by splitting the apartment for separate occupants.
Typical dual-key apartments come with a shared foyer and then a main residence and a second smaller dwelling of one bedroom, a bathroom and kitchenette.
Each has a separate lockable door accessed without having to enter the other residence.
To date Frasers has sold 161 dual-key apartments in One Central Park (pictured), the first stage of its $2 billion Central Park urban village on Broadway in Chippendale, Sydney. Dual-key sales represent 33% of the 432 apartments sold to date, with an average sales price of just over a $1 million.
Its two bedroom dual-keys measure 102 square metres. The development also offers a one bedroom plus studio dual-key alternative that measures 82 square metres.
Frasers may be at the forefront of dual-key apartments currently, but the configuration is by no means a new phenomenon in Australia. Meriton’s 2002 Trafalgar, Sydney, development included 12 dual-key apartments, all of which contain a two-bedroom apartment and a studio accessed by a common door, but separated once inside. But none of Meriton’s current offerings are marketed with any dual-key apartments.
Among those to buy an off the plan dual-key apartment from Frasers was Zoran Milososki, a contractor hired to pour concrete at Central Park.
Milososki bought an 82-square-metre dual-key apartment for $945,000.
“The particular apartment configuration I chose consists of two one-bedroom suites with a common hallway and laundry, then two separate, secure doorways. It’s a smart investment, as I will rent out both properties to help pay off the mortgage,” he says.
Those buying purely for investment purposes will enjoy rental yield likely to be around 6% gross, with potential rents around $500 to $600 per week for each suite.
Another dual-key investor, Fiona Lyda, owner of Surry Hills boutique Spence &amp; Lyda, purchased a three-bedroom dual-key apartment at another Frasers’ development, Trio.
Trio features 16 dual-key apartments. The 10 that consist of one bedroom plus studio are priced from $935,000, and the six apartments that offer a one-bedroom/two-bedroom configuration start from $1.575 million.
Lyda will reside in one portion of the property while her 14-year-old daughter will live in the adjoining apartment in the years to come.
“We found this to be the perfect solution – buying a dual-key apartment in anticipation of the time when my daughter will appreciate living in her own space,” she says.
According to Sparkes the larger three-bedroom version sold well, with an average price of $1.45 million.
“The majority of these have been sold to owners that reside within the larger two-bedroom portion, with some having rented out the smaller studio space [for about $500 per week]. Those that chose to rent both portions are achieving around $800 to $850 per week for the two-bedroom and around $500 per week for the studio. Collectively that equates up to $1,350 per week, which is around a 4.8% gross rental yield.
Among Frasers' first development to feature dual-key apartments was Lumiere on Bathurst Street, which Sparkes says completely sold out before completion.
Beyond Sydney, Frasers is offering dual-key apartments for the first time in East Perth at its Queens Riverside development close to the Swan River foreshore on Adelaide Terrace.
The first apartments to market are in the 26-storey QIII (Q-three) building, which will include 58 dual key apartments among the 265 apartments being built.
The Perth prices for dual-key apartments will start from $600,000.
The QIII apartments are designed by Perth architect Bruce Robinson, who was also responsible for the design of Perth's Raffles hotel development.
Trio's apartment plans, click to enlarge:
<a href="/images/stories/triofloorplan.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/triofloorplanthumb.gif"></a>
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Some investors find dual-key apartments twice as nice

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Property investors who put money into Queensland projects by Great Northern Developments have received compliance assistance from regulator ASIC, including being able to recoup their investments. 
Based in Richmond, NSW, Great Northern raised funds from investors through loan agreements and promissory notes to finance its property development projects. 
In September 2010 the NSW Supreme Court found that Great Northern Developments had contravened the Corporations Act by failing to enter into a trust deed and by failing to appoint a compliant trustee before making offers of debentures that require disclosure. 
Great Northern financial statements for the June 30, 2009 reported total loans owing of $34.8 million, with $24.16 million described as loans from “investors”. 
At the time of the September 2010 judgement, court documents named Christopher Edwards, Lawrence Robson and Christopher Hawkins as company directors. 
Court documents describe Great Northern as being “in the business of acquiring properties in Queensland upon which it constructs apartments for sale. 
“It appears from GND’s financial statements that as at 30 June 2008 and 30 June 2009 it held land for resale at Bundaberg, Gladstone, Cairns and Gympie, and a property called ‘Degon Property’.” 
According to ASIC documents, notice to wind up the company was submitted on August 6, 2009.
 In September 2010, the court accepted an undertaking from Great Northern that it would enter into a trust deed and appoint a trustee in compliance with the act.
However, Great Northern was unable to secure a trustee, prompting ASIC to assist Great Northern to comply by ensuring that: 
<ul>
<li>those investors who elected to continue with their investment were transferred to the La Trobe Australian Mortgage Fund;</li>
<li>the continuing investors obtained a mortgage over Great Northern’s properties; and</li>
<li>those investors who did not wish to join the scheme were fully repaid their original investment and interest.</li>
</ul>
ASIC commissioner Peter Boxall, says its action were consistent with ASIC’s objective of achieving compliance as a first step to safeguard investor funds. “Where appropriate, and in the best interest of investors, ASIC will take steps to ensure that fundraising schemes which might be operating outside the requirements of the law are made compliant so that investors are afforded the relevant legal protections,” he says.
The Great Northern website lists four Queensland developments in its property portfolio including a retirement village in Gympie, the SurfAir Resort on the Sunshine Coast, the Silhouette Apartments in Brisbane’s West End and the Kingsholme apartments in Methyr, in New Farm, Brisbane.
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ASIC steps in to help Great Northern investors

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Deputy RBA governor Ric Battellino says banks raising mortgage rates above the last official November rate increase have contributed to the current savings culture.
During a speech to investment managers in Sydney, he also highlighted next month’s inflation data as key to future rate decisions.
Taking a retrospective look at the economy over the past year, Battelino says the banks’ response following the November rate rise with “substantially larger increases – around 40 basis points” changed consumer behaviour.
“The size of this increase, and the controversy it created, seemed to have a noticeable impact on household behaviour. Consumer confidence fell, though to levels that were still above average,” he says.
“Coincidentally, there was a renewed step up in financial market volatility, stemming from the widening government debt problems in Europe; this probably also contributed to households becoming less confident,” he says.
Battellino said natural disasters had had the biggest impact on the domestic economy at the start of the year.
“As we moved into the early months of 2011, domestic economic activity was severely disrupted by floods and cyclones. The two main economic impacts were the sharp fall in coal production and the destruction of the Queensland banana crop.
“The former meant that GDP was likely to fall in the March quarter, before recovering in the June and September quarters, while the latter meant that CPI inflation would spike higher over the year ahead due to a sharp, yet temporary, increase in banana prices.”
Domestic concerns shifted to global worries by the middle of the year.
“At the time of the July RBA monetary policy meeting, global economic growth had eased, and the downside risks stemming from the European debt problems looked more significant. In Australia, households remained cautious and the housing market was soft.
“Also, it now appeared that the slow recovery in coal production would mean that earlier GDP forecasts for 2011 would not be met. Nonetheless, the medium-term outlook for the Australian economy remained strong. In these circumstances, the board continued to hold rates steady, noting that the CPI outcome to be published in the next month would provide an update on inflation,” he says.
Decisions about interest rate policy through the remainder of the year, he said, would be a balance of these various forces.
“This challenge remains. In fact, with the recent volatility in financial markets adding to the uncertainty about the economic outlook, it does not look like the challenge will become any easier over the months ahead.”
Battelino summarised the three major trends for the year to date as:
<ul>
<li>First, the effects of the mining boom have turned out to be stronger than expected a year ago. The terms of trade are noticeably higher and forecasts for national income and mining investment have been revised up over the year.</li>
<li>Second, despite this strength in the mining sector, overall economic growth is turning out to be weaker. The forecasts published earlier this month reduced growth in GDP for 2011 to 3¼%, versus 3¾% expected last November. </li>
<li>Third, inflation outcomes for 2011 are likely to turn out to be higher than thought last November, both in headline and underlying terms. Inflation forecasts for the longer term have risen to be a little above the top end of the target range.</li>
</ul>
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Banks and bananas to blame for savings culture: RBA

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Mirvac’s retail portfolio has defied the current retailing gloom by delivering solid growth, with food majors Coles and Woolies accounting for a quarter of rental income.
Net income from retail assets increased by 4.3% to $125.9 million for the year ended June 30, 2011 with occupancy increasing from 97.9% to 99%.
The annual results reveal that more than a third (37%) of retail rent comes from food retailers with its top two tenants by income being Coles (12.4%) and Woolworths (11.6%). A distant third is the Reject Shop, bringing in 1.2% of annual rent.
Fashion stores bring in 19% of retail rent.
Occupancy costs remain “sustainable” at 13.2%.
The developer says its retail portfolio is well positioned with an 84.7% weighting to retail centres driven by “non-discretionary spending”.
Retail assets account for about 30% of Mirvac $5.9 billion property portfolio with the developer saying it will keep its weighting at this level going into 2012.
More than three-quarters (77.6%) of Mirvac’s retail assets are sub-regional shopping centres including the Taree City Centre, Ballina  Central and Kawana Shoppingworld on the Sunshine Coast.
CBD retail makes up just under 10% of the portfolio, with the North Sydney Greenwood Plaza and Melbourne’s Moonee Ponds Central the most notable assets in this class.
Mirvac expects the retail sector to remain subdued going into 2012.
“The outlook for the retail sector remains mixed. The possibility of higher interest rates and a recent softening in employment growth, together with an increase in the saving ratio has constrained consumer spending,” the annual report says.
“The saving ratio will, at some stage, stop increasing, while personal income should continue to grow; all of which should stimulate spending. Against this backdrop, there is expected to be little change in the average vacancy rate in the retail sector over the next six months.”
Overall, Mirvac delivered annual operating net profit after tax up 30.2% to $358.5 million.
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Coles and Woolies help Mirvac deliver 30% profit increase

Sydney developer&nbsp;<a href="https://www.apartments.com.au/developers/central-element">Central Element</a>&nbsp;is doubling down in Drummoyne, lodging plans for a boutique apartment development on St Georges Crescent, only one-kilometre down the road from its first Drummoyne development, Bianca.

The new project at 15A-21 St Georges Crescent,&nbsp;a&nbsp;1,701sqm north-facing site overlooking Iron Cove, will have 45 apartmnts across 10 levels. Eight of the units will be dedicated to affordable housing.

The site sits within walking distance of Drummoyne Village, Birkenhead Point, ferry services and the Bay Run, and offers harbour views towards the Sydney Harbour Bridge and CBD skyline.

Designed by MHN Design Union, the development will deliver a mix of one, two and three-bedroom apartments, alongside resident amenity including a gym, landscaped communal open space and three levels of basement parking.

The project has been lodged under the NSW Government's Low and Mid-Rise Housing reforms, with Drummoyne Village identified as a town centre capable of accommodating additional housing supply.

Central Element acquired the site earlier this year as part of its continued expansion across Sydney's eastern suburbs, lower north shore and inner west.

The developer's current pipeline includes luxury apartment projects Pearl Bondi and a separate development on Lamrock Avenue in Bondi, a residential project in Barry Street, Neutral Bay, and a mixed-use seniors living community in Greenwich.

Central Element Managing Director Nathan Chivas said the project would address a shortage of new owner-occupier housing opportunities in Drummoyne.

"While we're seeing a significant shift across Canada Bay as major infrastructure investment, population growth and planning reform drive a new chapter for the region, in suburbs like Drummoyne there remains a genuine shortage of new boutique luxury housing opportunities for owner occupiers," Chivas said.

"Sites of this nature are increasingly difficult to secure, particularly those that combine a north-facing aspect with direct water outlook. Our St Georges Crescent project responds directly to the market demand, offering a level of exclusivity, outlook and lifestyle in the highly sought after suburb."

The development application has been lodged with the City of Canada Bay Council, with the project expected to launch to market in early 2027.

&nbsp;

Joel Robinson

Central Element seeks second Drummoyne apartment development

The NSW Government has unveiled plans that could deliver around 1,300 new homes across Nowra and Kiama, continuing its push to unlock housing in well-located regional centres along the South Coast.

The proposals, now on public exhibition, would pave the way for around 830 homes in Nowra and a further 450 homes in Kiama, while also introducing affordable housing requirements and increased building heights in key locations.

The larger of the two proposals is centred on Nowra, where the NSW Government is seeking to rezone land within the Mandalay and Riverfront precincts.

The Mandalay sub-precinct, located close to Shoalhaven Memorial Hospital, Nowra Library and the city's aquatic centre, could accommodate around 530 new homes. Around 30 per cent of housing delivered on Homes NSW-owned land would be dedicated to social and affordable housing, equating to roughly 100 homes. Building heights would increase from the current two-storey limit to between three and six storeys.

A separate rezoning proposal for the Nowra Riverfront Precinct would unlock a further 377 homes while creating stronger connections between the Shoalhaven River and the CBD. The plans include building heights ranging from five to 12 storeys, floor space ratios of up to 2:1 and a requirement for two per cent affordable housing.

Together, the two proposals would deliver more than 900 homes across the broader Nowra area, reinforcing the city's role as one of regional NSW's key growth centres.

The housing push builds on previous infrastructure commitments in the Shoalhaven, including government funding aimed at supporting thousands of future homes in West Nowra through upgrades to water and wastewater infrastructure.

Further north, the NSW Government is also progressing plans for the former Kiama Depot site, a two-hectare parcel near Kiama's town centre.

The rezoning proposal would transform the former industrial site into a residential community capable of delivering up to 450 homes. Buildings would range between six and eight storeys, with at least 10 per cent of homes allocated as affordable housing. The proposal also includes approximately 600 parking spaces and improved walking and cycling connections.

Planning Minister Paul Scully said the proposals are designed to increase housing supply in locations close to jobs, transport and services.

"For too long, families have struggled to find somewhere to live, and activating underutilised sites allows us to deliver the new homes these families need," Scully said.

"The Minns Labor Government is getting on with the job of unlocking well-located sites close to transport, jobs, and town centres and building the homes our communities need.

"These rezonings are about removing barriers to housing delivery and making sure land is put to better use so more people can find a place to call home within the communities they choose."

The latest rezonings form part of the Minns Government's broader strategy to accelerate housing delivery across NSW, particularly in established centres where existing infrastructure can support additional population growth.

Community consultation on the proposals is now underway, with feedback set to inform the final planning controls before the rezonings are determined.

Around 1,300 new homes earmarked for Nowra and Kiama as NSW Government pushes housing supply

<a href="https://www.apartments.com.au/developers/mrcb">MRCB International</a> has commenced construction on its latest Gold Coast apartment development, Maris, on the site of the former Sundale Motel in Southport.

The start of construction by <a href="https://www.apartments.com.au/builders/binah-constructions">Binah</a> follows an exceptionally strong sales campaign, with more than 90 per cent of apartments sold since launch. Every purchaser has been local, an&nbsp;indicator of confidence in both the development and Southport's evolution into a thriving CBD.

<a href="https://www.apartments.com.au/new-apartments/maris-southport-20-queen-street-southport-qld-4215">Maris</a> will deliver 192 residences across 20 levels. The project forms part of MRCB's Australian and New Zealand development pipeline now exceeding $1.6 billion in gross development value, alongside a growing portfolio of projects globally.

[smartcode_project:default project_id=134403 project_image_fid=350663]

The company also commenced construction on its $600 million 26 Vista residences in Surfers Paradise last year, following strong sales momentum, with over 70 per cent of residences sold.

Maris has been designed to meet evolving buyer demand, offering architecturally designed layouts suited to long-term liveability. The approach reflects a growing preference for quality and adaptability among Gold Coast buyers.

Positioned next to the Broadwater in the <a href="https://www.apartments.com.au/developments/southport-qld-4215">Southport</a> CBD, Maris sits directly opposite the Broadwater Parklands light rail station and within easy reach of retail, dining and lifestyle precincts, placing residents at the centre of one of the Gold Coast's most connected and rapidly maturing urban centres.

[smartcode_project:default project_id=134403 project_image_fid=372756]

Maris will offer a full suite of resort-style residential amenities, including a pool, gym and sauna, along with a rooftop level featuring decks, lounges and dining and yoga areas that command sweeping views across the Broadwater and out to the ocean.

Binah, a New South Wales headquartered company co-founded by Amen Zoabi and Khalil Hafza in 2008, has expressed its excitement at establishing its first partnership with MRCB.

Binah's Managing Director Khalil Hafza said partnering with MRCB on Maris is a significant moment for Binah.

"MRCB's financial strength and a track record that speaks for itself give this project a solid foundation, and this marks the beginning of what will be a long and successful relationship.

"With the right people, systems and partnerships behind it, Maris is set to become a significant addition to the Gold Coast's premium residential market."

[smartcode_project:default project_id=134403 project_image_fid=350664]

MRCB International CEO Ravi Krishnan said the project's progression to construction reflects both sustained demand and tightening conditions across the apartment sector, as well as MRCB's continued confidence in the Gold Coast market.

"Commencing construction at Maris is a significant step and reflects the depth of demand for quality apartments in well-connected urban locations," said Krishnan.

"Across Southeast Queensland, new apartment supply remains constrained, particularly in established precincts with infrastructure and amenity already in place. Projects like Maris are increasingly critical in meeting that demand, especially on the Gold Coast and in the city's CBD precinct."

[smartcode_project:default project_id=134403 project_image_fid=372761]

Krishnan said Southport's ongoing transformation, supported by infrastructure investment and long-term planning, was underpinning renewed buyer confidence.

"We're seeing a clear shift back towards well-located urban centres where infrastructure, connectivity and amenity are already established," said Mr Krishnan. "Southport is evolving into a more mature CBD environment, and that is being reflected in buyer behaviour."

Construction at Maris is anticipated to be completed in 2029.

[smartcode_project_cta:default project_id=134403]

Construction commences on MRCB’s $200m Maris Residences in Southport

Moonee Valley Park’s latest residential release <a href="https://www.apartments.com.au/new-apartments/the-eveline-at-moonee-valley-park-moonee-ponds-100-thomas-street-moonee-ponds-vic-3039">The Eveline</a>, has achieved a new benchmark for off-the-plan apartment sales in the suburb, with the sale of The Alexandra penthouse selling for $5,435,000.

Positioned on the top floor of a 16-level residential building, the three-bedroom, three and-a-half-bathroom penthouse features uninterrupted city skyline views across the future Valley racetrack.&nbsp;

The landmark sale comes as momentum at the precinct continues to build, with the Moonee Valley Racing Club progressing works on its new racetrack ahead of the 2027 Cox Plate. The transformative development will see MVRC reimagine the beloved Valley as a vibrant year-round entertainment and lifestyle destination.

Alongside a world-class racing experience, the historic precinct will be activated with events, hospitality and public green spaces designed to attract broader audiences, while breathing new life into one of Melbourne’s most iconic destinations.&nbsp;

[smartcode_project:default project_id=142519 project_image_fid=372786]

Development partners <a href="https://www.apartments.com.au/developers/hamton">Hamton Property Group</a> and Hostplus have delivered five residential stages over the past four years, the most recent in November 2025 with Trackside House and Stonepine House. The flourishing community is now home to almost 500 families.&nbsp;

The latest residential release, The Eveline, has recorded strong demand since launching publicly last July, securing more than $200 million in sales to date, satisfying its pre sales hurdle for construction to commence.&nbsp;

Hamton Founder and Executive Chairman, Paul Hameister OAM said, the sales&nbsp;team have been overwhelmed by demand for these unique homes in this unique project.

"Buyers continue to be predominantly hyperlocal and attracted by the 40 hectare botanic masterplan in Melbourne’s inner north west," Hameister said.

[smartcode_project:default project_id=142519 project_image_fid=372788]

Hamton’s Sales and Marketing Director Fergus Humphries said the team has achieved more than 70 sales over the past eight weeks, including the penthouse purchase by a local buyer.

"These results reinforce that, even in a challenging market, purchasers continue to be drawn to quality projects that offer more than just a home, they offer a lifestyle.”

Designed by Cera Stribley, the penthouse has been created with entertaining in mind, spanning close to 400 sqm of indoor and outdoor living space, including multiple terraces designed to capture sweeping views across Melbourne’s skyline, the new Valley racecourse and sunset views over Moonee Ponds.

Moonee Valley Park is one of Melbourne’s largest urban renewal projects, transforming the iconic racecourse site into a vibrant mixed-use neighbourhood integrating homes, parklands, retail, racing and community amenities.

[smartcode_project_cta:default project_id=142519]

Moonee Valley Park penthouse sets suburb record as sales surge clears construction benchmark

A company linked to one of Australia's largest privately owned cattle businesses has lodged plans for a new residential tower in <a href="https://www.apartments.com.au/developments/newstead-qld-4006">Newstead</a>, continuing the rapid transformation of one of Brisbane's most sought-after, inner-city precincts.

Bottletree Holdings, an entity associated with Stanbroke Managing Director Brendan Menegazzo, has submitted a development application for a 28-storey mixed-use tower at <a href="https://www.apartments.com.au/new-apartments/9-longland-street-newstead-qld-4006">9 Longland Street</a>, a site that made headlines last year when it changed hands in an off-market transaction that reportedly set a benchmark land rate for the suburb.

The proposal would replace an existing two-storey commercial building on the 1,510 sqm corner site with a Bureau Proberts-designed tower comprising 76 apartments, ground-floor retail, office space and a suite of resident wellness amenities.

<img alt="9 Longland" data-entity-type="file" data-entity-uuid="c710a836-568e-4382-bc91-3c34b8e80a8b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-22%20at%209.41.45%E2%80%AFAM.png?VersionId=Vy.mQWBc7GA_a.vIBdxKqRC9XGjWalo2" />

According to planning documents lodged with Brisbane City Council, the development would comprise a mix of 36 two-bedroom apartments, 24 three-bedroom apartments and 16 four-bedroom residences, positioning the project firmly at the premium end of the market. The apartments would sit above a podium containing retail and commercial space, with three levels of communal recreation facilities spread throughout the tower. The proposal also includes 198 car spaces and 95 bicycle spaces.

Bureau Proberts has drawn heavily on Newstead's industrial heritage in developing the architectural response.

"Occupying a prominent corner in the heart of Newstead, the proposal draws from the area's industrial lineage of robust brick warehouses to deliver a distinctly contemporary response," the architects said in the design statement.

"It is conceived as a subtropical sanctuary and elevated private retreat embedded within one of Brisbane's most vibrant lifestyle precincts."

The design seeks to reinterpret the traditional Queensland vernacular through wraparound verandahs, deep shading elements and permeable facades that respond to Brisbane's subtropical climate.

<img alt="9 Longland" data-entity-type="file" data-entity-uuid="25524f59-395c-4825-8fad-9b639822fa8a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-22%20at%209.42.09%E2%80%AFAM.png?VersionId=dlWlbpCc_g3Y6yTLGqRVKvGJvO2ubMJ3" />

Planning documents describe the building as embodying the principles of "buildings that breathe", a design approach increasingly favoured in Brisbane's apartment market as developers focus on natural ventilation and outdoor living spaces.

The tower itself would rise above a heavily landscaped podium designed to reference the woolstore architecture that helped define Newstead and neighbouring Teneriffe for generations. At ground level, fine-grain retail tenancies would activate Longland Street, Wyandra Street and the existing Wyatt Street laneway, further extending the pedestrian network that has become a hallmark of the Gasworks precinct.

The application notes that more than 54 per cent of the site would be dedicated to landscaping and deep planting, while approximately 1,750 sqm of communal recreation space would be delivered across multiple levels.

<img alt="Planning" data-entity-type="file" data-entity-uuid="fed3b189-1054-4b68-af5f-b0befc4a66e5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-22%20at%209.42.19%E2%80%AFAM.png?VersionId=gqeE3cjsbnLAfeTUKA1HtPZfqDs6S4Xa" />

Bottletree paid $22 million for the 1,510 sqm development site, equating to more than $14,500 per sqm, a reflection of the strong demand for development opportunities in Newstead. The suburb continues to attract both developers and buyers, underpinned by the ongoing evolution of the Gasworks and Teneriffe precincts into some of Brisbane's most sought-after lifestyle destinations.

Brisbane City Council's Sustainable Growth Strategy and Inner City Strategy both identify Newstead as a priority growth precinct capable of accommodating additional housing density due to its proximity to employment hubs, public transport and lifestyle infrastructure.

The proposed tower joins a growing pipeline of high-end apartment developments in the suburb. Fortis recently launched <a href="https://www.apartments.com.au/new-apartments/crest-walker-newstead-12-kyabra-street-newstead-qld-4006">Crest &amp; Walker</a>, a 65-apartment owner-occupier-focused development on Kyabra Street, while Consolidated Properties Group is preparing to launch <a href="https://www.apartments.com.au/new-apartments/castile-47-skyring-terrace-newstead-qld-4006">Castile</a>, a 227-apartment waterfront project on Skyring Terrace.

Meanwhile, builder-developer BPG is planning its own Newstead project on Maud Street, comprising just over 100 apartments and more than 1,380 sqm of dedicated wellness and resident amenity spaces, further highlighting the shift towards lifestyle-driven apartment developments in Brisbane's inner-city market.

Larry Schlesinger

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