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There is some good news for struggling leisure operators in Queensland with a rosier outlook forecast for 2012, according to the Deloitte third-quarter Hotel Market Outlook.
The report confirms the two-speed state of the hotel sector – CBD business hotels strong, regional leisure hotels struggling – revealed in recent ABS accommodation statistics and other hotel reports.
However, year-end results for the Gold Coast market have been revised upward following a stable June quarter.
Deloitte expects the Gold Coast occupancy rate to rise to 67%, down only 1% from 2010, with average room rates set to reach $135, up 2% from 2010. Revenue per room (RevPAR) is anticipated to reach $91, increasing nearly 1% on 2010.
By 2012, occupancy levels are likely to increase by 2% to 69%, average room rates up by 4% to $141 and RevPAR rates of $98, representing a growth of 7.7%.
“Further increases in forecast results have been made for 2012 also due to anticipated improvements in domestic and international travel to the region,” the report says.
<img src="/images/stories/fnq-hotels.gif">
Forecasts have also been revised upwards for Tropical North Queensland following greater than anticipated demand and the diminishing impact of natural disasters. 
For 2012, the occupancy rate is expected to increase by 3% to 59%, the average room rates is forecast to increase by 1% to $119 and RevPAR is set to reach $70, an increase of 6%.
<img src="/images/stories/gchotsl.gif">
“Leisure destinations are fighting to maintain occupancy levels though, often at the expense of growth in room rates.  There is increased upside however, with the longer term outlook for the leisure segment improving over our previous forecast,” says Deloitte’s national leader for tourism, hospitality and leisure, Rutger Smits. 
The report highlights the impact of the Australian dollar quoting the Tourism Forecasting Committee, which recorded a negative net outflow of visitors of more than 1.5 million in May this year
 
“Australians are now holidaying in the rest of the world instead of at home, while foreigners are being deterred by the sheer strength of the Australian dollar,” the report says. 
City-based business hotels continue to perform at record levels due to rising business demand with Sydney leading the pack, followed by Melbourne.
Sydney hotel occupancies are expected to rise from a record 86.4% for the 12 months to June 2011 to 87.4% by 2012. Deloitte is forecasting 12% room rate growth with RevPAR for year-end 2012 projected at $187, down from $193 in previous projections.
Melbourne occupancies stand at 80.9% room occupancy for the 12 months to June 2011 with Deloitte forecasting an occupancy rate of 81.4% room, a room rate of $196, with RevPAR growing by 9.5% to $159.
More growth is forecast for the rebounding Brisbane market in 2012 with room occupancies reaching 82.7% by the end of 2012.
Perth’s reliance on business travel and reduced demand from leisure visitors, means forward estimates have been revised downwards though are still very healthy. RevPAR forecasts for 2012 have been reduced from 23% to 20% due to slower occupancy growth, with rate forecasts maintaining at $206 and occupancy forecasts down from 89% to 87%.
The RevPAR forecast for 2011 remains unchanged at $93 and 4.9% growth over 2010.  The report has increased the occupancy outlook from 63.5% to 64.3% finishing the year at $153, a 5.6% improvement over 2010.
The RevPAR forecast for 2012 has been revised downward slightly from $100 to $99, with slightly higher occupancies and lower room rates.
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Business hotels performing well while leisure sector struggles: Deloitte

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?The chance to buy back the 1890s-built Friendly Inn Hotel in Kangaroo Valley in the NSW Southern Highlands proved irresistible for publican Peter Thompson, who snapped it up for $2.01 million at auction over the weekend. 

It last sold for $3.367 million in August 2005 and has been in receivership since April 2011. It sold for $950,000 in 1991, according to RP Data. 
The property, located at 159 Moss Vale Road, Kangaroo Valley and measuring 14,440 square metres, was marketed by Joel Fisher, Glenn Price, Greg Haines and Dugald Parsons from CBRE Hotel on behalf of receivers PKF Chartered. 
It was previously owned by Double Bay finance broker Adam Tilley and auction house owners James Barnier and Stuart Fox. 
Thompson owned the property in the 1980s and is currently the owner of another heritage pub, the Royal in Adelong, NSW, dating back to 1868. 
The hotel includes a public bar, TAB terminal, ATM, a gaming lounge with nine gaming machines, a separate bistro with seating for 50 people, a lounge seating 40, a full commercial kitchen, outdoor beer garden, a first-floor three-bedroom manager’s residence and a walk-in bottle shop. 
Revenue generated by the hotel is “distinctly seasonal”, with quiet months between April and June. 
In the three months to June 2011, the hotel generated revenue of $380,000, with more than $195,000 coming from the bar and bottle store and $A152,000 from food sales. 
Food sales are most profitable (gross profit of 61%), with alcohol sales generating gross profit of more than 50%. 
Over the three-month period, the nine poker machines brought in revenue of about $29,000. 
Profit for the three-month period after all expenses and wages was $12,000. 
The Thompson family also owned the Great Southern Hotel in nearby Berry, which they sold in 2007 after a decade of ownership.
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Former owner jumps at opportunity to buy back Friendly Inn

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Lenders mortgage insurance provider Genworth has come out in support of a mandatory fact sheet educating home buyers about the insurance cover.
Genworth along with QBE LMI (formerly PMI) are the two biggest providers of this type of insurance, which is required where home buyers borrow more than 80% of the value of the property.
LMI, a once-off premium paid for by the home buyer, covers the lender for any shortfall between the value of the mortgage owed and value of the house in the event that the home buyer defaults and the lender is forced to sell the house.
It is often confused with mortgage protection insurance, which covers borrowers for the payment of their mortgage instalments in the event of unforeseen circumstances such as unemployment, illness or death.
The one-page fact sheet, aimed at helping consumers “understand the costs and benefits of lenders' mortgage insurance when they take out a home loan” was announced by federal treasurer Wayne Swan over the weekend.
“The aim is to allow consumers to compare quotes side-by-side, including the difference in premiums and rebate schedules, helping them get the deal that's right for them,” Swan says.
“This will help home buyers compare apples with apples when it comes to shopping for lenders' mortgage insurance.”
The Treasury advised against the introduction of a scheme to allow the transfer of lenders' mortgage insurance between lenders because it would be “expensive, extremely complex to implement and administer, and would likely benefit less than 1% of all borrowers”.
This is also supported by Genworth.
Genworth expects the mandatory fact sheet could be similar to the Government’s Key Fact Sheet for home loans, and could be handed out by lenders just prior to borrowers signing their home loan contract.
“Genworth believes it is important that homebuyers know how Lenders Mortgage Insurance works and the benefits it offers, plus their potential rights in relation to existing refund schedules if they switch home loans,” says Genworth CEO Ellie Comerford. 
According to Genworth, about 90% of loans to first home buyers are supported by LMI.
The one-page LMI fact sheet was announced on the back of recommendations contained in former RBA governor Bernie Fraser’s report ‘Banking Services: Cost-Effective Switching Arrangements’ and is due to be implemented in July 2012
The report recommends a new "tick and flick" service making it easier for consumers to switch to another bank, building society or credit union if their existing institution isn't providing good value and service.
From July next year customers will sign just one form that authorises their new financial institution to do “all the heavy lifting for them” including arranging the transfer of all automatic transactions linked to the customer's account and inform associated creditors and debtors about the new account details
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Mortgage insurance provider Genworth welcomes wider customer know-how

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The riverside suburb of New Farm is one of six Brisbane suburbs to record house price increases in excess of 10% over the year to June, according to the Real Estate Institute of Queensland.
It was also one of 66 Brisbane suburbs to record an increase in house prices over the year.
New Farm, located on the north-eastern shore of the Brisbane River, two kilometres from the CBD, was one of the hardest hit by the January floods.
The New Farm median house price increased by 14.6% to $1.1 million over the year to June 2011. The figures do not show sales volume, which may have contributed to the higher-than-expected change in median price.
An indication of how quickly the suburb has recovered was reflected in New Farm Park, just metres from the river’s edge, receiving Brisbane City Council's Pride Award as part of its Spotless suburb awards in July.
Earlier in August RP Data reported that New Farm had the highest number of properties for sale in flood-affected regions – 287 properties compared with 257 at the same time last year. The biggest median house price increase (18.3%) was recorded in Seventeen Mile Rocks, located 11 kilometres southwest of the Brisbane CBD and also on the Brisbane River.
Not all Brisbane riverside suburbs demonstrated similar house price growth, with the inner-city suburbs of Hawthorne and West End both recording price declines in excess of 11%.
Overall, the median house price in Brisbane decreased 1% to $510,000 over the June quarter and is unchanged over the year ending June.
<table style="width: 470px;" border="0" cellpadding="0" cellspacing="0"><tbody>
<tr>
<td class="mceSelected" valign="bottom" width="162">
Region
</td>
<td valign="bottom" width="73">
Median Sale 12mths Jun11
</td>
<td valign="bottom" width="73">
Median Sale 12mths Jun10
</td>
<td valign="bottom" width="56">
1yr change
</td>
</tr>
<tr>
<td class="mceSelected" nowrap valign="bottom" width="162">
ALDERLEY
</td>
<td nowrap valign="bottom" width="73">
$685,000
</td>
<td nowrap valign="bottom" width="73">
$600,500
</td>
<td nowrap valign="bottom" width="56">
14.1%
</td>
</tr>
<tr>
<td class="mceSelected" nowrap valign="bottom" width="162">
DOOLANDELLA
</td>
<td nowrap valign="bottom" width="73">
$429,500
</td>
<td nowrap valign="bottom" width="73">
$377,000
</td>
<td nowrap valign="bottom" width="56">
13.9%
</td>
</tr>
<tr>
<td class="mceSelected" nowrap valign="bottom" width="162">
NEW FARM
</td>
<td nowrap valign="bottom" width="73">
$1,100,000
</td>
<td nowrap valign="bottom" width="73">
$960,000
</td>
<td nowrap valign="bottom" width="56">
14.6%
</td>
</tr>
<tr>
<td class="mceSelected" nowrap valign="bottom" width="162">
PULLENVALE
</td>
<td nowrap valign="bottom" width="73">
$1,080,000
</td>
<td nowrap valign="bottom" width="73">
$970,000
</td>
<td nowrap valign="bottom" width="56">
11.3%
</td>
</tr>
<tr>
<td class="mceSelected" nowrap valign="bottom" width="162">
SEVENTEEN MILE ROCKS
</td>
<td nowrap valign="bottom" width="73">
$ 620,000
</td>
<td nowrap valign="bottom" width="73">
$524,000
</td>
<td nowrap valign="bottom" width="56">
18.3%
</td>
</tr>
<tr>
<td class="mceSelected" nowrap valign="bottom" width="162">
WOOLOOWIN
</td>
<td nowrap valign="bottom" width="73">
$749,350
</td>
<td nowrap valign="bottom" width="73">
$672,500
</td>
<td nowrap valign="bottom" width="56">
11.4%
</td>
</tr>
<tr>
<td class="mceSelected" nowrap valign="bottom" width="162"></td>
<td nowrap valign="bottom" width="73"></td>
<td nowrap valign="bottom" width="73"></td>
<td nowrap valign="bottom" width="56"></td>
</tr>
<tr>
<td class="mceSelected" valign="bottom" width="162">
Region
</td>
<td valign="bottom" width="73">
Median Sale 12mths Jun11
</td>
<td valign="bottom" width="73">
Median Sale 12mths Jun10
</td>
<td valign="bottom" width="56">
1yr change
</td>
</tr>
<tr>
<td class="mceSelected" nowrap valign="bottom" width="162">
ASCOT
</td>
<td nowrap valign="bottom" width="73">
$1,080,000
</td>
<td nowrap valign="bottom" width="73">
$1,202,500
</td>
<td nowrap valign="bottom" width="56">
-10.2%
</td>
</tr>
<tr>
<td class="mceSelected" nowrap valign="bottom" width="162">
HAWTHORNE
</td>
<td nowrap valign="bottom" width="73">
$750,875
</td>
<td nowrap valign="bottom" width="73">
$882,444
</td>
<td nowrap valign="bottom" width="56">
-14.9%
</td>
</tr>
<tr>
<td class="mceSelected" nowrap valign="bottom" width="162">
MANLY
</td>
<td nowrap valign="bottom" width="73">
$576,000
</td>
<td nowrap valign="bottom" width="73">
$675,000
</td>
<td nowrap valign="bottom" width="56">
-14.7%
</td>
</tr>
<tr>
<td class="mceSelected" nowrap valign="bottom" width="162">
STRETTON
</td>
<td nowrap valign="bottom" width="73">
$597,500
</td>
<td nowrap valign="bottom" width="73">
$670,000
</td>
<td nowrap valign="bottom" width="56">
-10.8%
</td>
</tr>
<tr>
<td class="mceSelected" nowrap valign="bottom" width="162">
TARINGA
</td>
<td nowrap valign="bottom" width="73">
$665,000
</td>
<td nowrap valign="bottom" width="73">
$800,000
</td>
<td nowrap valign="bottom" width="56">
-16.9%
</td>
</tr>
<tr>
<td class="mceSelected" nowrap valign="bottom" width="162">
WEST END
</td>
<td nowrap valign="bottom" width="73">
$725,000
</td>
<td nowrap valign="bottom" width="73">
$817,500
</td>
<td nowrap valign="bottom" width="56">
-11.3%
</td>
</tr>
</tbody></table>
 
“The Queensland property market continues to be impacted by lower consumer confidence and the uncertain nature of the global economic situation, including the recent pronounced stock market jitters around the globe,” says REIQ managing director Dan Molloy.
“The number of buyers active in the Queensland marketplace is still well below long-term averages and until there is more certainty surrounding interest rates and the global financial landscape generally this circumstance is unlikely to turnaround before next year.”
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Brisbane property market split as half rise and half fall in price

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The Queens Wharf Brewery hotel on the Newcastle Harbour has been listed for sale with hopes of about $8 million. 
The two-storey hotel, a popular entertainment venue in Newcastle, is located directly over the water at 150 Wharf Road and is part of the Honeysuckle wharf development. 
Up for sale is a ground- and first-floor bar, an a la carte restaurant, a gaming lounge with 15 poker machine entitlements, TAB facilities and a licence for the adjoining wharf area. The offering includes a development application approval for an alfresco gaming area. 
It last changed hands in August 2008 when it was bought by publican Michael Hogg for $8 million. 
In an arrangement that will run until 2019, Newcastle City Council earns $375,000 a year or 7% of the hotel's turnover, whichever is greater, from its ownership of the brewery. The new owner will have the option to extend the agreement to 2033. 
An expression of interest campaign closing September 22 is being steered by CB Richard Ellis’ Joel Fisher and Daniel Dragicevich in conjunction with Mike Wheatley of Knight Frank.
According to Wheatley the hotel brings in income of more than $10 million a year. 
He told Property Observer the listing has attracted a lot of interest from the Newcastle and Hunter regions and from Sydney publicans. 
“There is not much of similar quality in Sydney, so they’re making enquiries,” he says. 
“It’s a pretty unique asset,” he says. 
Fisher says although the vendor has listed the property for sale, a joint venture would also be welcomed from passive investors. 
“The hotel has favourable lease terms until 2033 with the rental effectively set at 7% of annual turnover,” he says. 
Dragicevich expects the hotel to appeal to a mix of traditional pub owners and operators, new entrants to the sector as well as newly established syndicates.
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Sydney publicans eager for taste of Newcastle hotel

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Legion House, a building in the Sydney CBD dating back to 1902, will become the first heritage building in Australia to achieve the new six-star environmental rating when its refurbishment is completed in 2013.
The building, which will be carbon-neutral when finished, will become the head office for construction and development company Grocon and is part of Grocon and GPT’s 161 Castlereagh Street development project.
Grocon CEO Daniel Grollo says the building will use “green” construction materials and methods, including sustainable bamboo, and will create its own renewable power through “biomass gasification technology”.
Grocon developed the Pixel building on the Carlton and United Brewery site, the first carbon-neutral building in Australia and rated Australia’s greenest building by the Green Building Council of Australia.
The NABERS (National Australian Built Environment Rating System) six-star rating, launched in August, is now the highest environmentally friendly rating an existing building can achieve.
Research by the Investment Property Databank has found buildings that achieve higher efficiency ratings deliver greater value and have a higher commercial value.
However, the launch of the new rating has attracted some controversy, with the Property Council of Australia slamming both the new rating and the way NABERS is managed.
It measures how efficiently a building uses energy, water, waste and the health of its indoor environment and is managed by the NSW Office of Environment and Heritage.
NABERS star ratings as applied to a typical office in Melbourne using only electricity and operating 50 hours a week:
 
<table cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td valign="top" width="205">
Rating
</td>
<td valign="top" width="205">
Carbon emissions
</td>
</tr>
<tr>
<td valign="top" width="205">
5 stars
</td>
<td valign="top" width="205">
? 67 kgCO2/m2
</td>
</tr>
<tr>
<td valign="top" width="205">
5.5 stars
</td>
<td valign="top" width="205">
?50 kgCO2/m2
</td>
</tr>
<tr>
<td valign="top" width="205">
6 stars
</td>
<td valign="top" width="205">
? 33 kgCO2/m2
</td>
</tr>
</tbody></table>
Source: NABERS
However, the launch of the new benchmark has attracted some controversy, with the Property Council of Australia alleging a lack of consultation and transparency at NABERS in what it calls a “decide first, consult later” management culture. 
The PCA says NABERS management has not consulted with industry stakeholders over the new rating and keeps its methodology in a “black box”. 
It claims the existing office tool methodology has been “trashed in favour of the totally different approach designed for hotels and shopping centres” and questions why it is two and half times harder for a Brisbane office building to move from five stars to six stars than a Sydney building. 
The PCA is calling for an overhaul of the existing NABERS management replaced by “a modern board, with an independent chair and world class corporate governance.” 
Matthew Clark, director of water and energy programs in the NSW Office of Environment and Heritage says the PCA response is disappointing and says a 12 week window for industry submissions on the new rating from November to February attracted 23 responses, 20 of which were supportive.
“We worked with our stakeholder advisory committee, which includes the PCA up until May this year. Based on advice from our national steering committee, we moved immediately to six stars.”
Clark says NABERS wishes to work closely with the PCA and is open to ongoing discussions with the industry body to make sure they feel involved.
The six-star rating is backed by the Green Building Council of Australia. 
“From now, six-star NABERS ratings will be possible, reflecting the fact that many buildings are moving above and beyond established benchmarks,” says GBCA executive director Andrew Aitken. 
Launching the new rating, Office of Environment and Heritage chief executive Lisa Corbyn said it was “called for by top performers in the commercial property industry who are already moving beyond NABERS five-star excellence towards a market-leading six star goal." "It reflects an ongoing improvement in the environmental performance of Australian buildings over the past 10 years, underpinned by the robustness of the NABERS tool as a performance measure."</body></html>

Heritage buildings can now shoot for six green stars

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Westpac’s regular pronouncements of a rate cut have failed to sway consumers, with more than two-thirds expecting rates to rise. 
The bank has backed up its rate cut expectations by lowering its three-year fixed rate product by 0.2% to 6.59% on home loans above $150,000
According to the latest Westpac Red Book, written by senior economist Matthew Hassan, the bank expects a 100 basis point rate cut by September 2012. 
However, despite an easing of late rise fears following the global turmoil, 61% of consumers still expect rates to rise over the next 12 months. 
Two out five consumers expect a 1% increase in the cash rate over the next year. 
Consumers in WA and Queensland are the least hawkish, while those in South Australia, NSW and Victoria have the highest expectation of a rate rise over the coming year. 
“The spread of consumer responses in August points to an average expected rise of 52 basis points over the next 12 months, in line with the consensus of economic forecasters,” says Matthew Hassan, senior economist at Westpac and author of the Red Book. 
“Consumers can be excused for being in two minds on rates with a similar divergence apparent between the consensus view of economic forecasters (+50 basis points by Jun 2012), and futures markets (–150 basis points by April 2012) around the same time,” he says.
<img src="/images/stories/westpacaugust19.jpg">
Source: Westpac Red Book
Industry bodies such as the HIA have said fears of interest rate rises are a key factor in the current stagnant housing market and drop in residential construction.
According to the Red Book, consumer sentiment about the housing market eased slightly in August, but still remains in positive territory. 
Consumer views on whether now is a “good time to buy a dwelling’ fell by 4% in August following 9.8% gain over the previous three months. 
Despite the fall the index remains above the 10-year average. 
Housing sentiment has suffered the biggest fall in Western Australia, down 10% over the last three months and unemployment expectations up 40%. 
“Although that may be surprising given the state’s resource sector exposure, the Perth housing market has been much weaker than the rest of the nation, especially price-wise,” Hassan says.
<img src="/images/stories/westpacaugust191.jpg">
Source: Westpac Red Book
In comparison sentiment to buying a car fell 6.2% in August, with the index running slightly below its long-run average and at its lowest reading since August 2008.
Major lenders such as the CBA and ANZ have all made big cuts to their fixed rate mortgage products – often seen as an indicator that rates will fall. 
Interest rates have not risen since November 2010.</body></html>

Consumers far more hawkish than banks on interest rates: Westpac Redbook

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Offshore investors are forecast to become more dominant in the Australian hotel market over the next six months, according to CBRE. 
Demand is expected to pick up in spite of the strong Australian dollar, with investors attracted by what is considered a safe, long-term investment market. 
Research by CBRE Hotels of offshore investor activity over the past 10 years has found that contrary to what might be expected, offshore investment in Australian hotels has picked up when the dollar is high and tailed off when the currency has lost value. 
According to CBRE Hotels regional director Rob Cross in general terms the strength of the Australian dollar has had no impact on hotel investment demand. 
“In fact the volatility of US and Europe has strengthened interest down under as we are viewed as a safe haven to park money,” he tells Property Observer. 
According to Cross, the only limitation to offshore investment is the current lack of purchasing opportunities in the Pacific region.” 
“Hotel investment demand well exceeds supply, as offshore buyers continue to circle the Australian hotel sector for any possible opportunity to secure assets, particularly in our strong corporate centres.” 
In 2001, when the Australian dollar fell to less than 40 US cents investment in Australian hotels dropped to around $500 million. In 2007, when the dollar rose to 90 US cents, investments soared to $1.8 billion.
According to Colliers total investment in the hotel sector sits at around the $550 million mark for the first six months of the year with $134 million worth of transactions recorded in the first three months and $411 million recorded in the second three months. 
Offshore buyers have been responsible for the bulk of these purchases notably: 
<ul>
<li>Singapore’s Pan Pacific Hotels Group acquired the 296-room Hilton Melbourne Airport Hotel for $108.9 million in January </li>
<li>Singaporean investor Michael Kum added the Travelodge in Melbourne’s Dockland’s to his portfolio for a reported $54 million in February.</li>
<li>US hospitality giant Host Hotels &amp; Resorts acquired a 75% stake of the Hilton Melbourne South Wharf Hotel for $137 million in April</li>
<li>US-based LaSalle acquired the Novotel on Collins for $205 million </li>
</ul>
According to Wayne Bunz, senior director at CBRE Hotels, investors have not been deterred by the strong Australian dollar and are willing to pay a premium to secure a hotel property in what is considered a safe market. 
“Despite the high Australian dollar, overseas investors still see value in Australian assets and consider hotels - notably those with a majority business clientele base - as safe, long term investments,” Bunz says.
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Offshore investors expected to buy up hotels

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Serviced apartments group Quest is now the fourth biggest hotel operator in Australia, according to rankings compiled by CBRE. 
The group was ranked seventh in December 2010. 
Quest’s ranking improved following the opening of new serviced apartment properties in the Melbourne suburbs of Moorabbin, Hawthorn and Cheltenham. 
The new properties mean Quest now operates 108 hotels in Australia, providing 5,800 rooms to mostly business travellers.
 The top three biggest hotel operators remain Accor (brands include Novotel, Sofitel, Grand Mercure, Hotel Formule 1), Mantra and the Intercontinental Hotel Group.
On the ownership front, Tourism Asset Holding Limited, Mirvac Investment Management and the Schwartz Family Company have retained their status as the three biggest hotel owners in the country. 
The biggest mover is Amalgamated Holdings which increased from eighth to sixth place in the rankings over the six-month period. 
The group owns Rydges resorts and the Thredbo Alpine Resorts and will add to its portfolio with new projects such as a boutique hotel on the site of the former Gowing Bros store in Sydney.
CBRE Hotels senior director Wayne Bunz says Amalgamated has sought to capitalise on the GFC period by acquiring a number of assets. 
“At the same time the overall number of rooms controlled by the Top 10 operators has dropped by over 2% in the first half of the year as new owner operators and investors vie for market share. This has seen investment funds such as GPT and Thakral drop in the rankings, with GPT having dropped out of the Top 10 list altogether,” Bunz says.
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Quest moves up in hotel rankings, closing in on Intercontinental

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Shopping centres will need to follow retail strips and start offering products and services that cannot be provided via the internet, according to Savills head of research Tony Crabb.
Crabb says retail strips are already starting to change in response to the growth of online shopping but enclosed centres need to get on board or they will lose business to the strips.
Examples of products and services customers cannot get online and that are growing in prevalence on retail strips are food vendors and hair salons.
He says such changes will need to occur at the enclosed centres where change has been management rather than market driven.
''Strips have and are reacting to the change but enclosed centres will need to get on board and reorganise their mix or lose business to the strips,'' Crabb says.
Savills associate director of retail services Michael Di Carlo says retailers should also investigate the latest technological innovations such at the “multi-channel retailing concept”, which is now the norm in the US and Europe.
Such a multi-channel approach is being pushed by shopping centre giant Westfield, which revealed in its half-year results today that it has signed up 140 retailers to its westfield.com.au transactional site.
Westfield CEO Steven Lowy says the group is embracing digital technology, including the use of the internet, mobile and social media to drive sales into its shopping centres
“With the launch of our transactional website in Australia, we are able to work with retailers in both their physical and online retail strategies,” he says.
Andy Hogg, Savills head of retail project management in Queensland, says creative use of finishes and layouts to establish a more inviting shopping experience is very important, “coupled with clever use of technology through customer interface products and digital media”.
Such an approach, he says, has been adopted by Australia Post GPO refurbishment in Brisbane.
The store will offer a dedicated area for online shopping and a 24-hour zone where customers can purchase products via a vending machine.
“What we are seeing starting to emerge now are pro-active retail clients changing the face of their store to combat the online retailing trend. They are not sitting on their hands, but rather are coming up with exciting new ideas and innovations in retail design to give their customers an experience they cannot get online,” he says.
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Retailers must offer something extra to fend off online threat: Savills

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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