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Westfield has taken its overseas spending tab for the week to $600 million following a 50% investment in Italy.
The shopping centre group will spend $160 million to acquire a 50% interest in a development site in Milan, Italy.
It follows the retail giant’s August 10 announcement that it will spend $440 million to acquire a half-share of a Brazilian shopping mall owner.
The 60-hectare site adjacent to Milan's Linate airport has planning approval to develop a regional shopping centre similar in scale to Westfield London.
The site is being acquired in a joint venture with Gruppo Stilo, an Italy-based developer owned principally by its founder, Antonio Percassi.
Westfield chairman Frank Lowy says the acquisition is “another significant step in the expansion of our business globally”.
"This acquisition represents a unique opportunity, notwithstanding the volatile financial markets at present, to establish our franchise in one of the wealthiest population centres in Europe. We believe that this site represents one of, if not the, best shopping centre development opportunities in Continental Europe,” he says.
Milan, in the north of Italy, is the country's major financial centre and has the highest income demographic. It is considered to be one of the world's fashion capital cities.
The project is due to be completed in 2015 to coincide with the Milan World Expo.
Westfield expects the 170,000-square-metre project would represent a total investment in the range of €1 billion to €1.25 billion ($1.38 billion to $1.72 billion ) with a target yield in the range of 7%  and 7.5% and an unlevered internal rate of return of between 12% - 15% on the capital invested.
On completion, the centre will be branded Westfield Milan and will be managed by Westfield in conjunction with Gruppo Stilo.
Westfield expects to invest a further €20 million ($28 million) in acquiring additional development rights, which will be payable when a second stage project of approximately 60,000 square metres commences in the future.
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Westfield to spend $160 million to develop Italian shopping centre

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It’s a case of chalk versus cheese or perhaps mutton versus lamb when comparing the US housing market with Australia’s subdued market, according to analysis compiled by RP Data.
The US housing market is significantly worse off than Australia on every key metric.
The five most significant differences are:
<ul>
<li>US home prices are down 32% from their peak in 2006. While Australian house prices are down 1.9% for the year to June, since 2006 they have increased by 31%.</li>
<li>US transaction volumes are running 33% below the five-year average and are yet to show any consistent improvement. Australian transaction volumes are tracking about 16% below the five year average. </li>
<li>Nearly a quarter (22.7%) of all US homes were in negative equity at the end of the first quarter 2011, according to US-based data analytics group CoreLogic. A further 5% are in “near negative equity?. RP Data will release an “Australian Equity Report” that will show extremely low number of homes are showing negative equity. </li>
<li>The percentage of homes that are at least 90 days in arrears is slightly higher than 8% in the US. Comparable data for Australia shows delinquent housing loans remain well below 1%. </li>
<li>Distressed sales - homes that are being sold by the lender or sold at a price lower than the amount owed on the property - comprise 30% of all sales in the USA. The number has tripled over the last two years and CoreLogic estimates the number of short sales is expected to increase by another 25% during 2011. While there is no official data on home foreclosures in Australia, outgoing Commonwealth Bank CEO Ralph Norris said last year the percentage of home foreclosures in Australia was “about 0.000001%”</li>
<li> The vast majority of US home loans are on a 30-year fixed term basis which means most mortgage holders cannot immediately take advantage of the very low interest rate environment until they are able to re-finance. In comparison, while the percentage of people taking up fixed rate mortgage in Australia has picked up recently to around 13%, the vast majority are on variable rate loans, meaning they immediately benefit if rates are cut.</li>
</ul>
RP Data national research director  Tim Lawless says the US government and banking sector are looking for increasingly creative ways to combat the high rate of default and rising number of bank and Government owned properties.
“Banks in the US are offering principal reductions on mortgages and flexible re-payment options rather than facing the likely losses if the property is taken to market or the mortgage holders simply chose to walk away from the debt,” Lawless says.
 Unlike Australia, most mortgages in the US are non-recourse, so if the home is worth less than the loan it is very difficult for the bank to recoup its loss from the borrower. 
“A principal reduction is simply reducing the amount of out-standing debt payable by the mortgagee in order to ensure that they don’t walk away from their debt responsibility,” he says. 
While the US housing market is vastly different to Australia, Lawless says Australians should not be complacent. 
“The mortgage market meltdown in the US has resulted in a greater level of data transparency which is a good thing and potentially one way in which the Australian economy can learn from the changes now being made in the US".
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US and Aussie housing markets chalk and cheese: RP Data

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The NSW government’s regional relocation grant is encouraging more Sydneysiders to consider relocating to the Southern Highlands and other regional areas.
Almost 10% of the 15,000 people who attended the Country &amp; Regional Living Expo at Rosehill Racecourse last weekend registered an interest in a Southern Highlands property, according to Raine &amp; Horne <a target="_blank" title="Bowral" href="/news">Bowral </a>principal Matthew Anstee.
Anstee says the regional relocation grant is a driving factor.
The <a target="_blank" title="Government grants" href="https://www.propertyobserver.com.au/australian-capital-territory/government-incentives-by-the-numbers/2011080150974">grant</a>, which will operate for four years, until June 30, 2015, provides applicants with a one-off payment of $7,000 to help with the expense of relocating from a metropolitan property to a regional home not exceeding $600,000.
Metropolitan areas include local government areas of <a target="_blank" title="Sydney" href="/news">Sydney</a>, the Blue Mountains, Hawkesbury, <a target="_blank" title="Gosford" href="/news">Gosford</a>, <a target="_blank" title="Wyong" href="/news">Wyong</a>, Wollondilly, <a target="_blank" title="Wollongong" href="/news">Wollongong </a>and <a target="_blank" title="Newcastle" href="/news">Newcastle</a>.
Anstee says he is surprised by the reaction and interest from Sydneysiders in the regional relocation grant.
Anstee says his team left the expo with “30 very hot leads”.
In addition, the agency secured a deposit from a retired couple from Sydney’s Northern Beaches for a new three-bedroom apartment in the Bowral Apartment complex, at 184 -186 Victoria Street Bowral, valued at $580,000.
Anstee says white- and blue-collar job opportunities in the Southern Highlands are also attracting city-based buyers.
“We have a population of 52,000, which is growing, as well as strong mining and retail sectors that underpin this growth,” he says.
“Yet we have a shortage of lawyers, accountants and administration staff, which is a great opportunity for city-based professionals considering a lifestyle shift to this region, which is just 90 minutes from Sydney.”
Stephen Millard from Raine &amp; Horne <a target="_blank" title="Wagga Wagga" href="/news">Wagga Wagga </a>in the Riverina says one of the great fears for those moving to regional centres is job opportunities.
"However, in Wagga Wagga we have a shortage of skilled labourers and professionals. This includes a deficit of legal and accounting professionals, as well as tradespeople.”
A three-bedroom house on an 800 square metre block in Wagga Wagga sells for about $290,000.
Raine &amp; Horne <a target="_blank" title="Tamworth" href="/news">Tamworth </a>principal Bryan Bolitho says $310,000 secures a modest three-bedroom house in the New England region.
“We recently sold a smart three bedroom home at Lot 11, Boulevard Place, Tamworth for $345,000, which came with an en suite, ducted air conditioning and a double garage," Bolitho says.
Bolitho says jobs are available at the mines at <a target="_blank" title="Gunnendeh" href="/news">Gunnedah </a>and in the agricultural sectors in Tamworth.
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Regional grants convincing Sydneysiders to consider a tree change

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The current turbulent market will encourage more buyers to use their self-managed superannuation funds to buy property, according to Belle Property CEO Peter Hanscomb. 
“Superannuation funds themselves have recently provided very low return on investment due to the current challenging economic conditions,” he says.
“Property is turning out to be a far more appealing investment opportunity given its consistency in capital growth and return caused by a growing population in Queensland.”
According to Hansomb, property is generally not as susceptible to market peaks and troughs as the share market, and therefore provides a safer environment for investors.
One of the most beneficial aspects of investing using an SMSF is that all costs associated with the property are paid by the SMSF. 
This includes council rates, land tax (if it applies), loan fees and repayments, maintenance and repairs conducted on the property and the property management costs.
“This is particularly appealing, given the recent astronomical hike in stamp duty in Queensland. Most buyers would be keen to not have to be directly responsible for this added tax,” Hanscomb says.
Another advantage, he says is that the SMSF also receives all proceeds of rent or other income into a low-tax environment, and can improve or renovate the property as any other investor may.
“Despite home buyer and investor confidence being slightly shaken recently by the stamp duty increases, the local property market is actually currently providing a number of incentives to invest now. 
“Interest rates are still low, and due to property values having stabilised, it is very affordable right now to enter the market at all price points.”
A survey carried out by Mortgage Choice found that about 15% of first-time property investors on the Gold Coast plan to use their self-managed super funds to buy their first investment property.
Nearly 6% intend to use their SMSFs to purchase the property in its entirety, and about 9% expect to use their super to help supplement other sources of funding.
About 6% of first-time Sydney investors and 5% of Melbourne investors plan to tap into their super funds when making their first property acquisition.
The March Multiport SMSF Investments Pattern Survey found that a least 13% of the 1,400 SMSFs administered by the firm are borrowing to invest using limited-recourse loans. (Multiport will publish an updated report over the next couple of weeks.) 
The average property loan among Multiport client funds is $200,000, compared with $110,000 for shares and managed investments. And 56% of the loans taken by these SMSFs are invested in property.
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Real estate more appealing to SMSFs in turbulent share market: Belle Property

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The listed property sector looks set to trade down for a second day in a row.
Stockland has continued to fall despite releasing a strong set of financial results yesterday and is down 14.5 cents to $2.53 in the first hour of trading.
Westfield is down 14¢ to $7.59 while Leighton Holdings is down 57¢ to $18.72.
GPT is the only major stock in the index trading up on the back of today’s profit upgrade. Its share price has risen 10c to $2.81.
Yesterday, Stockland CEO Matthew Quinn attributed the “subdued” performance of its share price due to investors pricing in a structural correction in the housing market when it viewed it as only a cyclical change.
It has been a rollercoaster week for the listed property trust sector since global markets started unravelling
On Monday A-REITs dropped 3.1% of their value. On Tuesday the sector rallied by 1.29% with some of the stocks like Westfield Group and the Westfield Retail Group making strong gains.
However, on Wednesday the sector again tracked down, falling 1.8% and shedding $5.7 billion of its value to just above $56 billion.
In the first 11 days of the August, the sector has shed more than 8% of its value and is down more than 14% of the year.
Despite the volatility of the sector, analysts do not expect a repeat of what happened to the sector during the GFC due to A-REITs adopting a more defensive position.
According to Scott Courtney, head of research at Morningstar, the average gearing level of REITs is currently about 30% compared with 40% before the GFC.
"This is the fundamental difference. This is why they are in a better position to weather the impact of a global crisis than before," he says. "They are comfortably well below their covenant levels, whether it is measured against interest repayments or asset values,” he told The Australian.
They have also sold off their non-core assets and diversified their funding sources by tapping into the commercial bond market, and re-negotiated their debt repayment deadlines.
With the lower gearing levels, head of property equity at NAB Bill Halmarick told the Australian Financial Review listed property trusts no longer suffered from severe capital constraints.
However, he does not believe a drop in base rates will encourage more borrowing. Instead he says trusts might look to lock in cheaper interest rates swaps or hedging positions.
The paper quotes an investment banker who says the opposite – that REITs should use the current cheap debt environment to increase borrowing and look to make opportunistic asset acquisitions.
In 2008 the S&amp;P/ASX300 AREIT Accumulation Index produced an annual return of -55.30%.
Morningstar analyst Bianca Rose attributing the poor performance to A-REITs “taking on too much debt, paying out unsustainably high dividends, paying expensive management fees to related companies, and sourcing earnings from newer, less stable income sources rather than from traditional Australian property rental income sources”.
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REITs fall again in rollercoaster week, except GPT

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The number of borrowers taking out fixed-rate loans in June 2011 has increased to 3,301, more than double that of June 2010, according to ABS data.
 June was also the highest month-on-month increase since December 2010 when borrowers were spooked by the large variable rate increases of November 2010. In May 2011, borrowers took out 3,148 fixed rates loans. 
The biggest take up of fixed rate loans has occurred in WA (up 140%) and the ACT (up 139%) with all other states recording big increases.
The increase in fixed-rate demand comes as more lenders cut their fixed rates.
From August 12, the Commonwealth Bank’s reduced fixed rates kick in, including its three-year fixed rate dropping by 50 basis points to a market-leading 6.59%. 
The proportion of fixed-rate home loan applications submitted via comparison website RateCity has increased significantly in recent months, making up 23% of applications in July compared to 13% January. 
RateCity CEO Damian Smith says lenders have started competing aggressively in the fixed home loan market. 
“Most lenders have been dropping their fixed home loan rates steadily this year but we haven’t seen this level of fixed rate movement since the global financial crisis.
“We saw 17 lenders that have dropped some of their residential fixed home loan rates this week alone; the average three-year fixed rate has hit a new low of 7.20% from 7.42% in December 2010. 
Smith says that while fixed interest rate movements can be an indicator of the direction of the interest rate cycle, there are other explanations for the movement in rates. 
“Fixed rate movements are generally good predictors of what lenders think will happen to interest rates, so there’s obviously some possibility that variable rates might go down given the global turmoil. 
“But in addition to this, lenders are using attractive fixed rates to kick start a very slow home lending market. 
RateCity’s top three-year fixed and variable rates, as at August 11, 2011
<div align="center">
<table width="100%" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td nowrap width="47%">
Variable home loans
</td>
<td nowrap width="52%">
Three-year fixed home loans
</td>
</tr>
<tr>
<td width="47%">
Better Option Home Loans, Advantage Plus Variable &lt;$2m - 6.59%
</td>
<td width="52%">
ING Direct, Residential Fixed 3 years - 6.69%
</td>
</tr>
<tr>
<td width="47%">
Pacific Mortgage Group, Variable - 6.67%
</td>
<td width="52%">
MyRate, Residential Fixed 3 years - 6.70%
</td>
</tr>
<tr>
<td width="47%">
eMoney, Full Doc Variable Pro Pack
</td>
<td width="52%">
Commonwealth Bank, Residential Fixed 3 years - 6.74%
</td>
</tr>
<tr>
<td width="47%">
loans.com.au, Dream Loan Express - 6.69%
</td>
<td width="52%">
Citibank, Standard Fixed 3 years - 6.79%
</td>
</tr>
<tr>
<td width="47%">
Mortgageport Management, Essential - 6.69%
</td>
<td width="52%">
RAMS Home Loans, Standard 3 years fixed – 6.79%
</td>
</tr>
</tbody></table>
</div>
Note: Non-bonded institutions only, excludes introductory home loans and packages
Source: RateCity.com.au
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Borrowers flock to fixed-rate mortgages amid uncertainty

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Regional tourist accommodation providers are likely to feel more pain as record numbers of Australians take advantage of the strong Australian dollar to head overseas rather than holiday locally. 
According to ABS Overseas Arrivals and Departures data for June, Australians took 7.44 million overseas trips in the 2010-11 financial year (up 9.9% on 2009-10), compared with 5.91 million international visitors to Australia (up 3.8% on 2009-10). 
For the first time overseas trips taken by Australians outnumbered international arrivals by more than 1.5 million. The number of Australians heading overseas first exceeded arrivals in June 2008. 
Over the June quarter arrival numbers declined by 0.5% to be up just 0.5% on a year ago, below average annual growth of 1% over the last six years. 
Furthermore, visitors are spending less when they are here, with Westpac forecasting total travel export volumes for the second quarter are likely to be down 5% on a year ago.
<img src="/images/stories/tourismjump.jpg">
The flat overall growth in visitor numbers has had less of an impact on CBD hotels, where occupancy rates remain strong as the sector is far more reliant on business travellers. 
According to the Tourist and Transport Forum, business visitor numbers rose by an impressive 11.3% over the March quarter while holidaymaker numbers – the bread and butter of regional hotels – declined by 5.3%. 
As a consequence while CBD hotel occupancy rate and room takings have remain robust due to strong business demand, regional hotels, motels and guest houses have headed in the opposite direction. 
This two-speed nature of tourist accommodation was starkly revealed in the June quarter ABS figures, complemented by research by STR Global that revealed occupancy rates were significantly higher for CDB hotels (77%) compared with non-CBD hotels (68%) over this period. 
According to STR Global, demand for business accommodation was particurlarly prevalent in Perth, with room rates rising 9.6% in the first six months of the year, followed by 8.1% in Brisbane and 8.4% in Sydney. 
The outlook for 2012 looks a little brighter for regional providers. 
While it remains to be seen if the recent correction in the Australian dollar will be sustained, the Tourist and Transport Forum is forecasting 5.1% growth in holiday visitors in 2012, nearly double the growth of 2.6% achieve in 2011. 
In addition, visitors are expected to stay an average of four nights in 2012, compared to 2.9 in 2011.
However, the 300 property market participants who took part in the NAB June quarter commercial survey see little change over the next two years.
They forecast the capital values of CBD hotels are tipped to rise by a healthy 5.3% over the next 12 months and by 6.2% over the next two years.
In comparison, hotel property values outside of the CBD are expected to stagnate over the next year (declining 0.2%) and to rise by just 1.6% over the next two years.
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Jump in overseas trips bad news for regional hotels

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Property developer Stockland expects the carbon tax to have minimal impact on the cost of building a new house.
Stockland CEO Matthew Quinn says the controversial tax will add only 0.6% or $2,500 to the cost of one of its house-and-land package.
“The carbon tax is something the industry can take in its stride,” Quinn says, comparing its impact to the introduction of GST.
His comments are likely to infuriate the Housing Industry Association and Real Estate Institute of NSW, which are both campaigning hard against the carbon tax.
The HIA claims the carbon tax will have “painful and widespread repercussions for residential building”. 
“New housing is already designed and built to meet stringent energy regulations that make them substantially more energy-efficient than existing homes,” says HIA chief executive Graham Wolfe. 
“Lifting the cost of new homes further through a new tax without any benefit at all to the individual home buyer makes no sense.” 
The REINSW estimates that the average residential building price will increase by $5,000 as a result of the carbon tax, plus an additional $740 in additional GST and stamp duty imposts.
 “It is bad enough that the carbon tax will push up the cost of an average new home by at least $5000 but to then make that increase subject to not one but two existing taxes, is just unconscionable”, says REINSW president Wayne Stewart.
Stockland is forecasting the carbon tax to add a maximum of $4 million annually in electricity and gas costs to its operational costs from the 2013 financial year onwards.
It expects to pass 50% of this cost on to consumers.
Quinn says Stockland has taken “massive steps” to mitigate against the carbon price including “huge reduction” in the amount of greenhouse gases its developments emit.
Stockland’s current emissions total 166,000 tonnes, mainly from electricity usage in commercial buildings, meaning it will not be liable to purchase carbon credits.
It has reduced its greenhouse gas intensity by 34% for offices and 16% for retail developments over the last five years and is targeting a further 7% reduction in for offices and 20% for retail by 2014.
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Carbon tax won't increase housing costs much: Stockland

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Meriton boss Harry Triguboff says an expected rate cut this year must not be followed by a subsequent rate rise.
Triguboff believes a rate cut will encourage more home buyers to return to the market.
"We must ensure that the Reserve Bank doesn't just drop them and then raise them again," Triguboff says.
"What happens is, as you drop them, people start buying, then you raise them and people can't pay."
He also called on the government to commit to offering permanent assistance for first-home buyers.
An interest rate rise will not hurt Meriton, since the company has the cash in hand to build without borrowing from the banks.
Meriton has approval for 800 units at Epping Park, with 130 already built.
Unit sales have been “average”, with Triguboff telling The Australian he is working with the state government to get things moving more quickly.
To encourage buyers, Meriton has been offering to pay the stamp duty on units at its Epping Park development in North Sydney. One-bedroom apartments are for sale at $460,000 and two-beds for $600,000.
Meriton has 13 apartment projects under construction, mostly in Sydney, including projects in St Ives, Epping and Rhodes
A major project is the 77-level Infinity tower in the Brisbane CBD, with one-bedroom apartments for sale from $380,000 rising up to just under a $1 million for three-bedroom units.
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Cashed-up Triguboff wants rates kept low

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The amount of commercial finance loans written by banks has soared in June, according to the latest ABS figures.
In June banks wrote a total of $34.7 billion worth of commercial loans, up from $29.4 billion in April. The sector accounts for 93% of all commercial loans written in Australia.
As with housing finance, and personal lending, banks were the only beneficiaries in a month when commercial finance fell 6.5% on a seasonally adjusted basis following an increase of 8.8% in May.
The latest figures come as the Commonwealth Bank revealed a 22% increase in second-half profits on the back of increased business and household lending.
At the same time smaller developers continue to have problems obtaining finance for commercial developments.
Revolving commercial credit commitments fell 8.4% and fixed lending commitments fell 5.6% over the month.
Since December 2010 when commercial finance commitments increased from $30.5 billion to $32.8 billion, commercial mortgages have followed a pattern of falling one month and rising the next.
The decline in June takes commercial mortgage commitments below the $30.1 billion achieved in October 2010.
Personal lending fell marginally in June, with commitments of $6.99 billion, compared with $7.05 billion in May and $6.82 billion in April.
Banks share of personal lending stands at 85% – banks wrote $6.8 billion out of $8 billion of personal loans in June
Leasing suffered the biggest monthly drop, falling 7.2% to $374 million.
As revealed yesterday, owner-occupier mortgages remained flat at $14.1 billion.
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Banks big winners in commercial finance slump

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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