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Sales have plummeted in department stores and cinema multiplexes leasing space in Westfield centres in Australia over the last six months, according the group’s half-year results. 
Department store sales are down 8.5%, while cinema sales are down 8.7%. 
Supermarkets remain Westfield’s strongest major tenant, with sales up 2.7% over the six-month period. 
Mini-majors, which include JB Hi-Fi and Dick Smith’s, suffered a 1.6% drop in sales, while turnover was down 1.3% in discount department stores. 
The poor performance of Westfield’s department store tenants come as one Australia’s biggest department stores, David Jones, continue to struggle.
In June David Jones, which has nine out of its 37 department stores in Westfield shopping centre, issued a profit downgrade with total sales for the fourth quarter of the 2011 financial year expected to be about 11% lower than earlier forecast. 
For speciality stores, general retail (down 3.1%) and homewares (3.4%) are struggling with footwear (up 3.9%) and food retail (up 3.2%) the strongest performing store categories. 
Fashion stores recorded a 1.2% increase in sales turnover.
<img src="/images/stories/westfieldaugust17.gif">
On the back of its investments in Milan and the World Trade Centre site, the pipeline of future development work has increased to approximately $11 billion. 
Total new project commencements for 2011 are expected to be between $750 million to $1 billion. 
Over the six months to June Westfield commenced work on $570 million of new projects including a $320 million redevelopment of the Fountain Gate mall in Melbourne with remaining $250 million being spent on smaller projects across the United States, the United Kingdom and Australia.
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lschlesinger-FZcF9M3vE6

Westfield cinemas struggling, perhaps due to pricey popcorn

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Half-year results released by Westfield reveal a widening gap between the rents it charges specialty tenants in Australia versus those charged in the UK and US. 
Rents charged speciality tenants in Australian and New Zealand have grown by 4.3% over the six months of the year to $1,444 per square metres. 
In comparison rents charged tenants in the US are up 2.7% in the to about $650 per square metres while in the UK rents have fallen by 3.6% to about $1,260 per square metre. 
Westfield shopping centre performance
<table cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td valign="top" width="103">
 
</td>
<td valign="top" width="115">
Occupancy
</td>
<td valign="top" width="107">
Speciality rents per square metre
</td>
<td valign="top" width="103">
Increase in six months to June 30 2011
</td>
<td valign="top" width="89">
Speciality sales growth
</td>
</tr>
<tr>
<td valign="top" width="103">
Australia and NZ
</td>
<td valign="top" width="115">
99.5%
</td>
<td valign="top" width="107">
$1,444
</td>
<td valign="top" width="103">
4.3%
</td>
<td valign="top" width="89">
1.8% (Aus)
1% (Nz)
</td>
</tr>
<tr>
<td valign="top" width="103">
UK
</td>
<td valign="top" width="115">
98.5%
</td>
<td valign="top" width="107">
$1,260
</td>
<td valign="top" width="103">
-3.6%
</td>
<td valign="top" width="89">
20%
</td>
</tr>
<tr>
<td valign="top" width="103">
US
</td>
<td valign="top" width="115">
92%
</td>
<td valign="top" width="107">
$650
</td>
<td valign="top" width="103">
2.7%
</td>
<td valign="top" width="89">
6%
</td>
</tr>
<tr>
<td valign="top" width="103">
Group
</td>
<td valign="top" width="115">
96.7%
</td>
<td valign="top" width="107">
 
</td>
<td valign="top" width="103">
3.2%
</td>
<td valign="top" width="89">
 
</td>
</tr>
</tbody></table>
Source: Westfield half-year results June 2011 
The increase in rents in Australia was not matched by a rise in speciality sales. 
Sales over the six-month period increased by just 1.8% in Australia and 1% in NZ compared with a 20% increase in sales in the UK and a 6% increase in the UK. 
In its submission to the productivity commission earlier this year Westfield defended the high rents it charges as fair given the amount of people who visit their centres. 
The high rents do not appear to be discouraging tenants in Westfield stores in Australia and New Zealand, with more than 1,500 deals completed over the six-month period representing about 200,000 square metres of space. 
Westfield’s 44 shopping centres in Australian and New Zealand also have the highest occupancy rate (99.5%). 
For the year to June net profit of $650 million was recorded, in line expectations.
Westfield Group CEOs Peter Lowy and Steven Lowy say the results are consistent with full-year earnings and distribution forecasts and demonstrate the resilience of the business and the continuing improvement of the operating platform.
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Gap widening between Aussie and overseas retail rents: Westfield

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Retail rents are forecast to come under pressure in Adelaide’s premier shopping strip, the Rundle Mall, due to a rise in vacancies.
According to CBRE, vacancies in the mall rose to 3% in June 2011 compared with  2.2% a year ago, with the closure of Borders and Colorado the notable tenant departures.
The 1,800-square-metre, three-level store located at 97 Rundle Mall was vacated by Borders in June and remains listed for lease, with CBRE’s retail services manager Julia Pottenger and Lou Rentis from Brock Commercial Adelaide marketing the property.
A further nine shops in the mall are listed for lease on realcommercial.com.au.
Prescott Securities chief economist Darryl Gobbett told The Adelaide Advertiser in June the mall was struggling due to people spending their money on staple items like groceries and keeping their savings intact.
The 3% vacancy rate is figure is significant when compared with vacancy rates in other premier CBD retail strips.
On Sydney’s Pitt Street Mall, the vacancy rate has shrunk to just 0.6% while in the more subdued Brisbane market, the vacancy rate on the Queen Street Mall stands at 1.9%.
Overall CBRE’s Adelaide Retail MarketView report paints a picture of tough conditions for the retail sector, with many retailers opting to mark down and clear stock outside the traditional sale periods to create cash flow.
CBRE global research and consulting manager Kate Gray says a number of recent receiverships have also impacted the sector, causing the closure of three of the Colorado Group’s sites along with the Borders store on Rundle Mall.
“Retail property had performed exceptionally well compared to other property sectors during the GFC due to the stimulus packages offered,” Gray says.
“It is unsurprising that there are now signs of weakness, with 2011 likely to be a year of consolidation for the sector.”
According to Pottenger there is still demand for some high-profile locations such as Rundle Street and The Parade in Norwood.
The Parade and O’Connell Street have experienced declining vacancies and relatively stable rentals, with the vacancy rate on O’Connell Street decreasing to 3.2% in June from 4% a year before and the vacancy rate on The Parade falling from 5.3% to 4.3% over the same period.
However, vacancy rates on King William Road and Jetty Road have jumped to 5.4% and 6.3% respectively.
This has led to easing rentals on Jetty Road, where 13 shops were vacant as at June, with a further two stores being advertised for lease with a sitting tenant.
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Vacancies rise on Rundle Mall in weakening Adelaide retail market

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The amount of industrial space under construction in Sydney is expected to triple in both 2011 and 2012, according to research by CBRE. 
About 360,000 square metres of industrial space was completed in in Sydney in 2010, but an annual average of 1.2 million square metres will be built in 2011 and 2012 annually, according to CBRE’s latest Sydney industrial market report. 
Recovery in the Sydney industrial market and demand for space from large retailers and third-party logistics providers is encouraging developers including Dexus, Australand and Goodman to undertake speculative projects. 
More than half (720,000 square metres) of the speculative development will take place in the outer northwest of the city near Eastern Creek. 
Significant projects near Eastern Creek due to be completed over 2011-12 include distribution centres for Kmart (51,569 square metres), Ingram Micro (38,618 square metres) and Metcash (80,000 square metres). 
CBRE is forecasting that net face rents in Sydney will grow by 2.4% over the full 2011 year and by a further 3.1% in 2012, with incentives beginning to decline and tenant demand on the rise. 
“An abundance of new supply is forecast as developers and investors capitalise on the industrial supply shortage across metropolitan Sydney,” says CBRE research analyst Gareth Dingle. 
“Approximately 89% of the new supply due to complete in 2012 will take place in the outer west, underpinned by demand from large retailers and third-party logistics providers.” 
CBRE regional director of industrial, logistics and investments Joshua Charles says key infrastructure continued to be the main driver of demand for industrial property throughout Sydney. 
“As occupiers look to cut costs along their supply chains, infrastructure is a critical consideration and this is driving demand in markets such as the Outer North West where 723,468 square metres of space is due to be completed in 2012 – the highest level on record,” he says. 
“The continued recovery of the industrial market is expected to be slow but sure over the coming years and will be fuelled by increasing container throughput at Port Botany and projected positive growth in industrial production.” 
Other forecasts: 
<ul>
<li>stronger year ahead for Sydney’s north, with new construction expected to increase from just 5,000 square metres last year to over 42,000 square metres in 2011. </li>
<li>In the central west, new supply remains subdued however demand is expected to be bolstered by the completion of the Enfield Intermodal Logistics Centre.</li>
</ul>
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Sydney's industrial construction to triple in next year with Eastern Creek fillip: CBRE

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Rental vacancies continue to rise on the Gold Coast and other Queensland coast markets, according to the quarterly figures put out by The Real Estate Institute of Queensland.
The Gold Coast vacancy rate has risen to 5.2% in the June 2011 quarter up from 3.6% in the March quarter.
In June 2008, the Gold Coast vacancy rate stood at 3.8%, suggesting seasonal factors are not the only reason for vacancies rising to nearly double those of greater Brisbane (2.7%).
REIQ Gold Coast president John Newlands says people displaced by the Brisbane floods have now moved out of rented accommodation on the coast and back to Brisbane.
"We do rely heavily on tourism and from the construction side of things, so both those industries have been down but coming into summer tourism will obviously have a spike because people come to the Gold Coast in those summer months, so that should have a reflection on the vacancy rate coming into that period of time," he says.
The troubled Gold Coast market has been flagged by property analyst Michael Matusik, who says just one in seven dwellings approved on the Gold Coast was actually being built.
“This is against a typical 75% completion rate. Yet Gold Coast mayor Ron Clarke denies that there is anything wrong, citing that net employment has increased on the Gold Coast over the last 12 months and claiming that winning the 2018 Commonwealth Games bid will fix any issues. That assumes that there is anyone left with a job on the Gold Coast in seven years’ time,” he says.
The March 2011 quarter Midwood Gold Coast report revealed that the average for a one bedroom apartment on the Gold Coast had fallen from $295 a week to $290 a week while the average weekly rent for two bedroom apartments had stagnated at $350 a week.
A search across realestate.com.au found 1,029 two-bedroom apartments on the Gold Coast available to rent for under $350 a week.
Among these, McGrath agent Margaret Robins is offering a two-bedroom apartment overlooking Kirra Beach for just $205 a week.
Julie Roberts from Surfers Real Estate is offering a two-bedroom apartment with parking on Brighton Street, Biggera Waters, within walking distance of Broadwaters in Surfers Paradise for $225 a week.
<table border="1" cellspacing="0" cellpadding="0" width="389"><tbody>
<tr>
<td width="197" nowrap>
 
</td>
<td width="64">
Jun- 08
</td>
<td width="64">
Mar-11
</td>
<td width="64">
Jun-11
</td>
</tr>
<tr>
<td width="197" nowrap valign="bottom">
 
</td>
<td width="64" valign="top">
 
</td>
<td width="64" valign="bottom">
 
</td>
<td width="64" valign="bottom">
 
</td>
</tr>
<tr>
<td width="197" nowrap>
Brisbane SD
</td>
<td width="64">
2.1%
</td>
<td width="64">
2.3%
</td>
<td width="64">
2.7%
</td>
</tr>
<tr>
<td width="197" nowrap>
Gold Coast City
</td>
<td width="64">
3.7%
</td>
<td width="64">
3.6%
</td>
<td width="64">
5.2%
</td>
</tr>
<tr>
<td width="197" nowrap>
Sunshine Coast Regional
</td>
<td width="64">
3.2%
</td>
<td width="64">
3.7%
</td>
<td width="64">
4.9%
</td>
</tr>
</tbody></table>
Source: REIQ
Rental vacancies have also risen in other coastal regions heavily reliant on tourism.
The Sunshine Coast vacancy rate has risen to 4.9% over the June quarter, from 3.7% in March. In June 2008, vacancies stood at 3.2%.
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Rental vacancies on the rise on Gold Coast

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As we look to what's ahead for 2012, Property Observer is republishing some of our most noteworthy stories of 2011.
 
There is almost no rental accommodation available in the resource boom town of Gladstone, according to quarterly Real Estate Institute of Queensland figures.
Vacancies in Gladstone, 550 kilometres north of Brisbane, have fallen from 1.4% to just 0.6% in the June quarter on the back of big energy, mining and infrastructure projects scheduled to commence in the region over the next 10 years.
In March 2009 the Gladstone vacancy rate stood at 6.1%
The regional town’s property market is now the focus of significant residential development, with Devine receiving approval to rezone a 469-hectare site from farming to residential. 
Devine plans to develop up to 2,900 homes and other facilities for a community of 7.500 people as part of a new $1.4 billion community. Construction is due to begin in 2012.
A search across realestate.com.au reveals just 84 Gladstone properties for lease.
Kellie McDonald from Raine and Horne Gladstone is offering a three-bedroom house on Stoneybrook Drive for $500 per week.
RE/MAX Gold – Gladstone is offering a partially furnished two-bedroom flat on Illawarra Drive for rent at $300 per week.
Vacancy rates:
<table width="333" cellpadding="0" cellspacing="0" border="0"><tbody>
<tr>
<td nowrap width="197">
AS AT END OF:
</td>
<td width="72">
Jun-11
</td>
<td width="64">
Mar-11
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="197"></td>
<td valign="bottom" nowrap width="72">
 
</td>
<td valign="bottom" nowrap width="64">
 
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="197">
Brisbane SD
</td>
<td valign="bottom" nowrap width="72">
2.7%
</td>
<td valign="bottom" nowrap width="64">
2.3%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="197">
MAJOR REGIONAL CENTRES
</td>
<td valign="bottom" nowrap width="72">
 
</td>
<td valign="bottom" nowrap width="64">
 
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="197">
Gladstone Regional
</td>
<td valign="bottom" nowrap width="72">
0.6%
</td>
<td valign="bottom" nowrap width="64">
1.4%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="197">
Gladstone City
</td>
<td valign="bottom" nowrap width="72">
0.7%
</td>
<td valign="bottom" nowrap width="64">
n/a
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="197">
Mackay Regional
</td>
<td valign="bottom" nowrap width="72">
1.6%
</td>
<td valign="bottom" nowrap width="64">
1.3%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="197">
Mackay City
</td>
<td valign="bottom" nowrap width="72">
1.6%
</td>
<td valign="bottom" nowrap width="64">
n/a
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="197">
Rockhampton Regional
</td>
<td valign="bottom" nowrap width="72">
2.0%
</td>
<td valign="bottom" nowrap width="64">
1.8%
</td>
</tr>
</tbody></table>
Source: REIQ
Resource projects earmarked for Gladstone include a $41 billion coal mining project scheduled from 2011 to 2020, a $75 billion energy project scheduled from 2011 to 2017, a $7 billion rail project (2011 to 2014) and an $8 billion port project (2011 to 2020).
Based on March Real Estate Institute statistics, Gladstone’s vacancy rate is lower than that of Sydney (1.1%), Brisbane (1.8%) and Melbourne (1.7%).
While vacancies have eased slightly in Mackay from 1.3% to 1.6% and from 1.8% to 2% in Rockhampton, they are still significantly tighter rental markets than the Brisbane metropolitan market, where vacancies have eased from 2.3% to 2.7% over the quarter.
According to the REIQ, the regional areas have continued to experience extremely tight rental conditions as the influx of residents who have obtained work in the resources sector places increasing pressure on the supply of rental properties.
“This is being reflected in the RTA rents, with the highest increases in median rents occurring in areas such as Gladstone, Mackay, Rockhampton and other smaller regional areas like Central Highlands, Isaac and Banana,” says REIQ managing director Dan Molloy.
According to the Midwood report, property developer Devine will next year commence building a $1.4 billion master planned community just outside of the Gladstone CBD.
The 496-hectare site, to be developed over the next 12 years, will include 2,900 dwellings for up to 7,500 residents, an education campus, a mixed-use commercial zone and 182 hectares of open space.
Photo courtesy of Tourism Queensland
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Gladstone almost out of rental space at height of mining boom

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On the back of the release of the August 2 RBA minutes, Westpac has <a target="_blank" title="Ten twists and turns in interest rate rollercoaster" href="https://www.propertyobserver.com.au/trends/economy/ten-twists-and-turns-the-interest-rate-forecast-rollercoaster/2011080851078">stuck with its view that rates will fall</a>, now saying the cut is likely in December.
The bank was the first of the majors to forecast a drop in interest rates this year, when it stepped out on its own in July.
“We remain comfortable with our view that the RBA will be lowering interest rates over the year ahead with a first move expected in December,” write Westpac senior economists Matthew Hassan and Andrew Hanlan.
The economists say the minutes give voice to an “alternative, more dovish scenario”.
“It's noted that the "downside risks to demand have probably increased," as a result of the "acute uncertainty in global financial markets over the recent period".
“The minutes then go on to set out the downside risk in more detail with the impact of escalating turmoil on confidence and demand the main risk to the growth and inflation outlook.
“Given the continued uncertainty globally, and the more questionable pace of demand domestically the Board is likely to again opt to leave rates unchanged in September.” 
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Westpac sticks with interest rate cut prediction, with December expectations

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AMP Capital Investors’ shopping centre division is reportedly considering a bid for the Cairns Central shopping centre.

The 52,725-square-metre, two-level centre was put up for sale by joint owners Westfield and Lend Lease earlier this year with a price tag in excess of $450 million following a dispute lasting four years.

Simon Rooney from Jones Lang LaSalle is handling the sales process.

Representatives of AMP Capital Shopping Centres have been in Cairns inspecting the centre.

A local shopping centre expert told The Cairns Post the representatives were undertaking a valuation of the shopping centre along with the due diligence.

"They are one of many looking at Cairns Central, but there are really only half a dozen realistic buyers," he says.

Stockland is another potential buyer, and current half-owners Westfield or Lend Lease’s Australian Prime Property Fund Retail might buy the other out.

AMP Capital Investors owns about $20 billion in property assets including 14 shopping centres in NSW, three in Queensland, four in Victoria, three in Western Australia, one in the Northern Territory and four in New Zealand.

Prominent centres in the AMP portfolio include the Macquarie in Sydney, which is due for a $350 million makeover, and Pacific Fair on the Gold Coast, expected to be redeveloped at a cost of $450 million.

A spokesperson for AMP says the company does not comment on speculation about portfolio sales or purchases but says visiting centres across Australia is part of its “day-to-day operations” as the owner of a large shopping centre portfolio. 

Major tenants include Myer, Target, Coles, BI-LO, a six-screen Birch, Carroll and Coyle cinema complex, along with JB Hi-Fi and174 specialty shops.

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AMP scouting out Cairns Central shopping central

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Fear of a second global financial crisis was the deciding factor in keeping interest rates on hold, according to the Reserve Bank’s August 2 monetary policy meeting minutes released today.

“Members discussed the downside risks to global growth, in particular those risks stemming from the fiscal problems in the United States and Europe. It was possible that these could play out in a disruptive manner, leading to a marked rise in global risk aversion, as had occurred in 2008,” the minutes read.
RBA board members also noted that h
ousing credit growth had slowed further and the rate of credit card debt repayment had picked up. 

"Housing price data suggested that nationwide prices had fallen slightly over recent months, to be down by around 2% over the past year," the minutes read.
Despite these concerns, the minutes reveal that the RBA is still weighing up whether to leave rates on hold or lift them, rather than considering the possibility of a rate cut. It notes the European Central Bank raised rates in July.

Rising inflation above target levels remains a concern.

“The recent inflation data had been higher than expected…  Measures of underlying inflation had also picked up, and it was reasonable to conclude that the earlier easing in underlying inflation had run its course,” the minutes read.

“Members considered whether the recent information warranted further policy tightening. The argument for tightening further was that underlying inflation had started to pick up and the central projection in the staff forecasts envisaged it rising above the target range during the forecast period. 

“The case against tightening at this meeting was that the downside risks to demand had probably increased, as a result of the acute uncertainty in global financial markets over the recent period. “If the financial market turmoil continued, it could further weaken household and business confidence. This in turn could weaken the outlook for demand relative to the central forecast and, over the medium term, dampen the inflation outlook.”

Other local factors noted by the RBA board included “very subdued” credit growth, softer asset prices and the high exchange rate.

“Taken together they suggested that financial conditions were already exerting a reasonable degree of restraint,” the board says.

“Having considered all these factors, members judged that it was prudent to leave the setting of monetary policy steady at this meeting, and to continue to assess the outlook for growth and inflation at future meetings,” the board concludes.
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Fears of second GFC kept rates on hold: RBA

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The prime Sydney office market is forecast to deliver the strongest rental growth over the next two years but is also the most vulnerable if a recession hits, according to research by Morgan Stanley.
 
The investment bank forecasts effective rental growth of 7.2% and 10.4% in Sydney over 2012 and 2013. 
However, if a recession were to strike, Sydney would suffer a 5% to 6% drop in office demand, about three times greater than what occured in other capital cities during the last two recessions. 
This is due to Sydney’s heavy reliance on financial services demand and its 50% to 60% office A-REIT exposure.
<img src="/images/stories/morganstanleyaugust16.gif">
Morgan Stanley says there is a 30% chance of Australia falling into recession. 
Barring a recession though, Sydney and Melbourne are forecast to yield the greatest office rental returns over the next three years. 
Melbourne is forecast to match Sydney’s effective rental growth of 7.2% in 2012 before tailing off to 6.7% in 2013. 
“Although there are still prime vacancies within the Sydney market, a subdued development pipeline and our assumption of steady, but below average recovery in demand, should see the market tighten and vacancies down to around 4.7% by 2013,” write Morgan Stanley analysts Lou Pirenc, Todd McFarlane and John Meredith. 
A moderation of historically high incentives is also expected to contribute to stronger rental growth in Sydney. 
Melbourne and Sydney are expected to benefit from tight vacancy levels in 2012 and 2013. 
Vacancies in Sydney are expected to decline to 5.5% in 2013 from the current level of 8% and from 5% to 4.4% in 2012 in Melbourne before increasing to 5.5% in 2013. 
In contrast, new office stock coming on board in Brisbane, Perth and Canberra is expected to result in limited rental growth over the next three years. 
“In Sydney and Melbourne, we expect supply will remain relatively contained for the next two years, until new projects can be brought on,” the report says.
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Sydney office market strongest but most vulnerable to recession: Morgan Stanley

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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