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The Productivity Commission has urged governments to act quickly to implement standardised retail tenancy documents in its draft review of the retailing sector.
The 461-page report acknowledges competitive concerns expressed by the likes of failed book retailer REDGroup, but as with previous inquiries, the Productivity Commission will not intervene.
REDGroup, along with Australian Newsagents' Federation among others, complained of the large gap between rents paid by anchor tenants versus those paid by smaller specialty retailers in shopping centres.
The commission recommends the implementation of national disclosure statement prior to the signing of lease agreements - one of three projects it wants implemented on a national basis.
The national disclosure document, a project being undertaken by National Retail Tenancy Working Group, is designed to provide tenants with important leasing information before contractual obligations are incurred.
To date it has only been implemented in NSW, Victoria and Queensland.
Australian Retailers Association executive director Russell Zimmerman says the organisation supports recommendations for a harmonisation of lease information and nationally consistent model legislation as well as voluntary national code of conduct for shopping centre leases that is enforceable by the ACCC.
However, the ARA is “disappointed there is no further recommendations for third-party reporting of turnovers to avoid abuse of predatory negotiations from landlords nor a national registration of retail leases as suggested in ARA’s submission”.
In their submissions both Westfield and Stockland were critical of the time taken to implement this and other harmonisation projects.
“The various jurisdictions have taken more than two years to agree to the content of a common lessor’s disclosure statement and, so far, only NSW, Victoria and Queensland have agreed to adopt one,” Westfield wrote.
“The agreed disclosure statement which took effect in these states on 1 January 2011 is still deficient because of peculiar state legislative requirements. A single disclosure statement, which can operate in all jurisdictions, must be achieved.”
Stockland wrote that it considered retail tenancy reforms would result in a greater harmonisation of legislation and result in cost efficiencies through the removal of administrative and compliance costs.
“However, Stockland does not consider that the retail tenancy reforms are being implemented in a timely manner. By way of example, a single disclosure statement does not yet operate in all jurisdictions,” the company wrote in its submission.
The comments by Stockland and Westfield were supported by Shopping Centre Council of Australia, which also criticised the lack of timeliness with implementation:
The other two projects being undertaken by the working group are the development of nationally consistent measuring and reporting standards for tenancy enquiries, complaints and dispute resolution; and the development of common terms to be used nationally in reference to retail tenancy leases and the simple meaning of these terms.
The report also recommends a re-examination of outstanding recommendations from its 2008 retail tenancy report. 
 
<hr class="system-pagebreak">
 
These recommendations include: 
<ul>
<li>improving, where practicable and cost-effective, education, information and dispute resolution procedures</li>
<li>moving towards self-regulation rather than continued reliance on government legislation</li>
<li>removing the more restrictive elements of retail tenancy legislation, including divisions between jurisdictions and the broader market for commercial tenancies, that impede contracting between firms.</li>
</ul>
Key concerns to emerge from the 123 submissions received from retailers include:
<ul>
<li>Significant differences in retail rents in Australia compared with the United States.</li>
<li>Reporting of turnover data in shopping centres is used to set rents at “excessive” levels.</li>
<li>Shop fit-out requirements, particularly the inability of retailers to negotiate competitive quotes for the work undertaken.</li>
<li>Standard lease terms (a provision incorporated in most state and territory legislation in a bid to improve security of tenure for tenants) that are normally of five years duration, do not provide sufficient security and are insufficient to amortise capital costs.</li>
<li>Limited negotiating power of retail tenants in shopping centres at the time ofrenegotiating a lease.</li>
<li>Landlords who exploit their superior bargaining power when a lease expires by seeking “excessive” rent increases</li>
<li>Retailers’ lack of security of tenure during "lease hold over" periods</li>
<li>Lack of publicly available information relating to shopping centre rents</li>
</ul>
Photo courtesy of Tourism Victoria 
<ul></ul>
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Governments urged to implement standardised retail tenancies

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Shares in Charter Hall Office REIT, the target of a failed hedge fund-led management takeover a week ago, have fallen this morning as the listed property sector continues to trade down.
Its shares were last trading at $3.20, compared with $3.17 at the start of trading today.
The fall in the share price follows two significant events: a bad day of trading for the REITs sector as a whole and the REIT announcing the sale 14 US office properties to Boston-based private equity group Beacon Capital for $1.58 billion.
The properties were sold at a 2% premium to their July 31 book value.
Yesterday a number listed property trusts hit 12-month lows including Mirvac, Australand, Charter Hall, CFS Retail Property Trust. They fell on the back of billions wiped of global share markets with the Australian market falling 2.27%.
Australand was down another 1o¢ today to $2.38. The stock has now fallen more than 9% since the release of half year results on July 27.
CFS Retail Property Trust was down marginally in trading today, down 6¢ to $1.67 after falling 3.45% yesterday to $1.68.
Mirvac continued to trade down today after falling 1.3% yesterday to $1.13. It was last trading at $1.12.
Stockland was trading unchanged around $3 following a fall of 2.61% yesterday while Charter Hall was unchanged at $2.03.
Westfield Retail Trust was last trading at $2.435 up 1.5¢ from its opening price. Westfield shares were up from $8.01 to $8.13.
Leighton shares were up 58¢ to $20.65.
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A-REIT trading down a week after Charter Hall takeover bid

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The value of mortgages sold via AFG mortgage brokers declined by 3.7% in July, with Victoria the worst-performing state, recording a decline of 7.4%.
In total AFG brokers sold $2.29 billion worth of mortgages in July, compared with $2.38 billion in June.
Significant declines were also recorded in NSW (down 5.9%) and Western Australia (down 5%), with Queensland almost flat (down 0.5%). The only state to go up was South Australia, rising by 13.7%, but off a much lower base.
Nearly two out of every five new mortgages (39.1%) arranged by AFG in July was to refinance an existing mortgage, with only 11.7% of mortgages arranged for owner occupiers moving or upgrading their homes. 
Just over a third of mortgages (35.6%) were arranged for investors, but this number is down from the 36.2% recorded in June. 
First-home buyer numbers increased marginally from 12.9% to 13.6% but are still down on the 14.1% recorded in January.
Mark Hewitt, general manager of sales and operations at AFG, says the latest figures confirm a much more worrying trend: that most Australians are still fearful about their financial future. 
“Ever since the interest rate rise last November, home buyers have gone into their shells. Western Australia, supposedly the prime beneficiary of a resources boom, has the most depressed property market of all.” 
In Western Australia, total mortgage sales for the first six months of 2011 were 3% lower than for the last six of 2010, with investor interest lagging behind the national average (30.7% compared with 35.6%). The average loan in WA size for July fell to $371,-000 – exactly the same as the average loan processed four years ago in July 2007. 
“Domestic financial news is dominated by talk of rate rises and the carbon tax. Gloomy international financial news has seen stock markets slump. We’re all looking for strong economic leadership to provide the market with some much-needed confidence,” Hewitt says. 
The average size of a mortgage arranged by an AFG broker rose marginally to just over $386,000 in July nationally, and to $456,000 in Sydney.
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Victoria worst-performing state as mortgage sales fall nationwide: AFG

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Non-CBD markets vacancy rates are declining at three times the speed of their CBD neighbours, according to The Property Council’s latest Office Market Report.
 
The non-CBD market vacancy dropped by 0.9% over six months to July 2011 to 10.5%. 
Over the same period vacancies in CBD markets declined from 8.7% to 8.4% while across all office market vacancies decreased from 9.6% to 9%.
East Melbourne, where the vacancy rate fell from 5.4% to 2.5% over the period, is the most tightly held significant office market nationally. 
Vacancies on St Kilda Road, recently identified as the hottest office market in Australia by Savills, (24,000 square metres lased over the second quarter of 2011) declined only marginally from 14% to 13.4%. 
However, CBRE director of office services Grant Tinker says the latest figures did not give an accurate indication of how robust and active the St Kilda Road market had been. 
“We expect a massive decline in vacancy rates in the next survey,” he says.
“Many large transactions have been agreed or are close to being agreed, which will take a few months to work through the figures. 636 St Kilda Road is the only building in the precinct that can offer large space (3,000 square metres plus) on contiguous floors, and we will very quickly run out of available stock,” he says.
Vacancies also declined strongly in Melbourne’s Southbank market, falling from 7% to 5.7% over the period. In June 2010, the Southbank vacancy rate was 9.7%.
Strong falls in vacancies also occurred in the Chermside market, north of the Brisbane CBD, falling from 6.5% to 5.7% over the six-month period. A year ago the vacancy rate was at 8%. 
Jennelle Wilson, Knight Frank’s associate director of research in Queensland, says the secondary Brisbane market has been a major beneficiary of mining, engineering and projects in the Brisbane CBD. 
“This market has rebounded from the lows recorded 12 months ago. Average gross face rents increased by $20 per square metre over the past six months to be $525 per square metre and incentives have tightened from 28% to 26.5% over the same period. On an annual basis this represents gross effective rental growth of 7.1% over the past year,” she says. 
North Sydney is another strong fringe performer, with vacancies falling from 11.8% to 9.2% from July 2010 to July 2011 compared with the Sydney market, where vacancies have increased from 8.3% to 9.3% over the same period. 
Peter Flint, CBRE state director of office services, says that the north shore office market would change the most dramatically out of the Sydney metro markets, and vacancy rates would change substantially over this quarter.
“The main vacancies in North Sydney are centred in B-grade stock and A-grade vacancy in contiguous floors is virtually non-existent,” Flint says.
“The sheer size of each of the three approved development sites in north Sydney means that the existing space vacuum won’t change anytime soon. This is forcing larger occupiers to look up the line to St Leonards where again the direct vacancy of 43,000 square metres is concentrated in lower-quality buildings and big take-ups are predicted in A-grade buildings in this quarter.”
Flint says the pressure-relief valve is Chatswood, which has the highest vacancy in NSW at 17%.
But like St Kilda, he believes these deal evidence and space take-up in the current quarter will lead to a dramatic drop in the direct and sublease vacancy numbers.
“We are tracking 5,000 square metres of our own deals in that market for the month of August,” he says.
The non-CBD sector is also likely to be boosted by a greater demand for space from large corporates, according to CBRE. 
Recent office reports have forecast that more large corporates will look to lease office space in fringe CBD markets due to a lack of large floor plate space. 
An influx in big business is also expected in inner-Sydney suburbs like Pyrmont and Ultimo, where prime gross office rents are on average 43% lower than the nearby CBD.
The decline in vacancy rates nationally was the result of stronger demand and lower-than-average supply combined with resurgent occupier confidence around the country. 
On the demand side, 219,059 square metres of new office space was leased over the period, 18% above the 20-year historic net rent average of 185,743 square metres. 
On the supply side just 198,999 square metres of space was added over the six months to July 2011, 35% below the 20-year historic average of 303,743 square metres. 
CBRE executive director of global research and consulting Kevin Stanley says the results support the recent actions of investors to weigh into the office sector.
“Market fundamentals are continuing to improve and this will inevitably lead to a rise in rents and values,” he says.
”While most leasing agents report that low business confidence is resulting in protracted leasing negotiations, ultimately more office space is being filled across Australia. The ongoing expansion of occupied business space has pushed vacancy down in the first six months of 2011 in all major office markets, except the Sydney CBD.</body></html>

Fringe office markets outpace metro neighbours

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Commercial property experts believe the Adelaide office market has peaked, with vacancy rates set to rise as more office stock comes on board over the next 12 months. 
According to The Property Council’s latest Office Market Report, the core (inner-CBD) Adelaide’s vacancy rate declined from 7.5% to 7.3% while the CBD vacancy rate fell from a six-year high of 8.4% to 7.9% over the six months to July 2011. 
Premium-grade vacancies decreased from 3.8% to 2.1%, the lowest level since January 2007. 
In the six months to July 2011, Adelaide recorded a net absorption of 6,633 square metres compared with a net absorption rate of 302 square metres for the previous six months.
However, according to South Australian Property Council (SA Division) executive director Nathan Paine, a significant amount of new supply will enter the Adelaide office market over the next 18 months: 20,812 square metres in the remainder of 2011, and more than 40,000 square metres in 2012. 
“While much of this future space is pre-committed, it will take some time for the market to digest all of the new supply and back-fill space,” he says. 
Newly completed A-grade core office space includes the $100 million 12-floor Aurora on Pirie Tower 1 with 13,000 square metres of space developed by Adelaide developer Urban Construct. A second tower of similar size is also planned for Pirie Street.
Knight Frank director of leasing in Adelaide Martin Potter also expects the increased supply to push up vacancy rates. 
“Adelaide has experienced positive net absorption over the past 12 months, however new supply coming onto the market in the next two years will see an increase in vacancy particularly, for the back fill space,” he says. 
Potter says the Adelaide market has been characterised by a flight to quality stock continues with prime stock showing low vacancies, with the lower grade properties still experiencing double digit vacancy. 
“Demand for Prime office space should see continued development; however two tiered markets will see movement away from C- and D-grade stock,” he says. 
CBRE director of office services Andrew Bahr has also noticed patchy conditions in Adelaide. 
Bahr says caution has prevailed in Adelaide in the first six months of the year, with concern over capital costs continuing to be a key issue. He says companies are staying put in their current offices and not moving, which is hurting the market. 
“A real stalemate exists in regard to demand and supply and large amounts of high-quality contiguous space will be in limited supply until late 2012 or early 2013.” 
Bahr says there had been a slight increase in activity in the past month and this trend is expected to continue over the next six to 12 months. 
However, he also has concerns about the local market being able to absorb new office space in the next few years. 
“A concern in 2013 is the fact that some 50,000 to 60,000 square metres of secondary space will be coming on the market, and has our local market got the capacity to absorb this much space?”
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Adelaide office market has peaked: Property Council

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Superannuation fund managers will have to disclose to members the risk profile of property and all other assets held in their portfolios following the release of new industry guidelines by the Association of Superannuation Funds of Australia and the Financial Services Council.
The guidelines are a precursor to Australian Prudential Regulation Authority regulations coming in June 2012 that will require superannuation funds to identify and disclose, on a standardised basis, the risk of negative returns over a 20-year period for each of their investment options.
The release of the guide comes as more self-managed superfunds inquire about converting to APRA-regulated schemes and property continues to grow as a component of DIY funds.
There are currently about 3,500 small APRA funds (schemes with fewer than five members) in Australia, with an uptake in enquiries from SMSFs considering converting to prudential status noted recently by Melbourne brokerage E.L &amp; C Baillieu.
According a survey by Multiport, about 13% of the 1,400 SMSFs it administers are borrowing to invest, with 56% of the loans used to invest in property.
Under the new industry guidelines, superannuation funds will be required to provide a “standard risk measure” ranging across seven risk bands, from “very low” to “very high”, for each of the investment options they offer.
This will enable consumers to better understand the investment risk in the option they have chosen and make it easier to compare funds.
Financial Services Council chief executive John Brogden says the standard risk measure will help consumers to make better informed, confident decisions about their superannuation.
“Having a clear understanding of risk is just as important as being aware of fees or returns. With a wide variety of investment options available across a large number of funds, it is essential that investment risk is fully disclosed and comparable,” Brogden says.
“The standard risk measure will ensure consumers are more aware of the investment risk in the option they have chosen and will enable them to compare ‘apples with apples’ when looking at different investment options.”
ASFA chief executive Pauline Vamos says the release of the guidance paper is a key part of the increased transparency in “true to label” reporting that consumers will see from the current superannuation reform process.
The methodology for determining an investment option’s rating according to the standard risk measure will be supported by a structured review process and both APRA and ASIC will review its operation as part of their normal activities.
According to ASIC chairman Greg Medcraft, the standard risk measure should assist investors to compare funds and to make better informed decisions.
The government’s new shorter product disclosure statement regime, which commences in June 2011, is expected to include the risk measure.
For more on self-managed super funds and property, see Property Observer's e-book 16 questions self-managed super fund trustees should ask before investing in property.
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Super funds to disclose property risk level

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Sharing a room in a dusty top end does not come cheap anymore.
According to flat-sharing website Easyroommate.com, Darwin rates as the second most expensive city to flat share, with Alice Springs ranking fourth
Average monthly flat share rentals in Darwin have risen to $867 per room, with only Sydney at $910 more expensive. The average monthly rate for in Alice Springs stands at $750 per room, more expensive than Melbourne, Perth and Brisbane.
On average, flat sharers in the Northern Territory pay $808 per month compared with just $553 a month in Victoria, the cheapest flat-share market.
The Northern Territory figure is up on $779 recorded in July last year.
Demand for flat-sharing accommodation in the Northern Territory has driven up prices due to extremely low vacancy rates and the high cost of property.
SQM Research calculates the vacancy rate in Darwin at 1.2%, with just 282 vacancies in all properties, compared with 317 in the previous month. Nationally the residential vacancy rate stands at 1.9%.
While the high prices may be disappointing for those looking to share a flat, the news will be encouraging for Darwin investors. According to RP Data the NT capital is already delivering the best rental returns in capital city markets.
Rental yields on Darwin houses stand at 5.2%, compared with 4.2% nationally, and at 5.6% for units, compared with 4.9% nationally.
The gap between the Northern Territory and the rest of Australia is significant – on average it is $137 more expensive to flat share in the territory than in Western Australia ($672) and $159 more expensive than in NSW ($650).
Melbourne’s vacancy rate of 2.8%, more than double Darwin’s, contributes to its relatively cheap flat share accommodation, according to SQM Research.
<table border="1" cellpadding="0"><tbody>
<tr>
<td>
Major Cities and Towns
</td>
<td>
State
</td>
<td>
Monthly Average Rent Per Room
</td>
</tr>
<tr>
<td>
Sydney
</td>
<td>
NSW
</td>
<td>
$910
</td>
</tr>
<tr>
<td>
Darwin
</td>
<td>
NT
</td>
<td>
$867
</td>
</tr>
<tr>
<td>
Canberra
</td>
<td>
ACT
</td>
<td>
$790
</td>
</tr>
<tr>
<td>
Alice Springs
</td>
<td>
NT
</td>
<td>
$750
</td>
</tr>
<tr>
<td>
Melbourne
</td>
<td>
VIC
</td>
<td>
$693
</td>
</tr>
<tr>
<td>
Perth
</td>
<td>
WA
</td>
<td>
$693
</td>
</tr>
<tr>
<td>
Gold Coast
</td>
<td>
QLD
</td>
<td>
$672
</td>
</tr>
<tr>
<td>
Brisbane
</td>
<td>
QLD
</td>
<td>
$667
</td>
</tr>
<tr>
<td>
Hobart
</td>
<td>
TAS
</td>
<td>
$650
</td>
</tr>
<tr>
<td>
Newcastle
</td>
<td>
NSW
</td>
<td>
$650
</td>
</tr>
<tr>
<td>
Sunshine Coast
</td>
<td>
QLD
</td>
<td>
$650
</td>
</tr>
<tr>
<td>
Adelaide
</td>
<td>
SA
</td>
<td>
$607
</td>
</tr>
<tr>
<td>
Cairns
</td>
<td>
QLD
</td>
<td>
$600
</td>
</tr>
</tbody></table>
Source: Easyroommate
Michal Nowak, country manager for Easyroommate, says the rental demand in the Northern Territory, especially in Darwin, has caused prices to reach levels far higher than other states.
“Accommodation demand is outstripping supply across the country, but it is particularly acute in Darwin and hence why the rental costs are so high there.
“Since the beginning of the economic downturn many prospective tenants and frustrated buyers are choosing to rent rooms to lower their outgoings and make substantial savings towards a future house deposit,” he says.
However, home owners are renting out spare rooms as another revenue channel to supplement income.
The research found rentals in Queensland’s major cities and towns to be cheaper than those in the Northern Territory and Western Australia, partly due to the lower impact the rental squeeze has had on the Sunshine State.
In the battle of the big two – Sydney and Melbourne – the research highlights a huge difference in average monthly rental costs.  Melbourne (at $693) has average rental costs of $200 less per month than Sydney ($910). Adelaide and Cairns have the cheapest average monthly rents at $607 and $600 respectively.</body></html>

Bunking down in Darwin no longer cheap

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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.
 
It just squeezed onto Your Investment Property’s Top 100 survey at number 100, but the small coastal Northern NSW town of Ballina offers rental yields on a par with and in some cases better than those in the large capital cities, proving the suburb has more to offer than just a giant prawn.
Ballina is 600 kilometres north of Sydney, 80 kilometres from the Queensland border and just 30 kilometres from Byron Bay.
Houses in Ballina cost under $420,000 and units are priced around the $330,000 mark, according to RP Data.
While not inexpensive, they are well below median capital city house and unit prices ($487,000 and $420,000 respectively) and substantially more affordable than Byron Bay, where the median house stands at $737,000 and $545,000 for units.
While capital growth has been about 7% over the past three years, it has accelerated over the last year, and is expected to pick up further with a wave of baby boomers expected to relocate to coastal towns over the next few years. 
According to SQM research, vacancy rates in Ballina are currently at 2.1%, and should tighten further as the population increases. 
SQM Research predicts population growth of 2% annually for the next few years, which will push up demand for housing. 
McGrath Estate Agents have recorded increased sales activity on the Northern Rivers and Tweed Coast, where Ballina is. 
In the January – June 2011 period, the two-year-old McGrath Ballina/Byron Bay offie clocked 64 sales, compared with 49 sales for the corresponding period in 2010, an increase of 41%. 
McGrath chief executive John McGrath says this activity is encouraging for regional markets and maintains there are “exceptional buying opportunities in many key lifestyle markets that were hit hard by the GFC”. 
David Mills, principal of McGrath Ballina/Byron Bay and McGrath Tweed Heads, says more than half the buyers were from out of the area with the bulk of enquiries coming via the internet or from McGrath’s in-house magazine. 
“Freestanding houses in the $450,000 to $700,000 price range are most popular. Water and beachfronts are down approximately 15% to 20% to their pre-GFC values, providing good buying opportunities, while buyer activity is on the rise,” Mills says. 
Besides the obvious coastal attractions, Ballina was rated highly by property analysts due to its good transport connections by road, rail and air. The town is serviced by the nearby Ballina-Byron Gateway, which carries commercial flights to Melbourne and Sydney, making it particular attractive to sea changers. 
Amenities include a hospital, several schools, several supermarkets and independent grocery stores. 
As an established holiday destination, Ballina offers a wide range of leisure activities including kayaking, fishing and golf, as well as numerous restaurants and cafes.
 Barb Joblin from Ray White Ballina is selling a two-bedroom house on River Street near the harbour for $189,000 squarely targeted at the baby boomer retirees who enjoy “fishing and living on the waters’ edge”.
At the more expensive end of town Graeme Hellyar, also from Ray White Ballina, is selling a four-bedroom duplex on Dolphin Drive on the Ballina Quays with an asking price $489,000.
Investors considering purchasing in Ballina are warned that the area does suffer from coastal erosion, so while a beachfront property may seem desirable, a better investment might be properties a street or two back from the coast.</body></html>

Hotspots: Grey wave sweeping Ballina

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Lachlan Harris has hit back at critics of his One Big Switch mortgage discount campaign, telling them to “watch this space”. 
The One Big Switch campaign, which was launched on July 31 and is backed by consumer group Choice, has attracted in excess of 10,000 subscribers, 10 times the initial target of 1,000. 
Harris, a former Rudd government advisor, told Property Observer numbers are rising rapidly but would not comment on exact figures. 
“Some people will always feel uncomfortable when you try and introduce change,” he says. 
Critics of the scheme include Herald Sun columnist Scott Pape (the Barefoot Investor), who in his latest blog claimed the idea that you can “‘group buy’ a home loan for thousands of people is ridiculous”. 
“Anyone who has applied for a mortgage knows the bank determines your rate by taking into account your personal income, equity and credit history,” Pape says. 
Most of Pape’s criticism was directed at consumer group Choice, which Pape says has “sold its soul” by getting involved in a venture “which share in the kickbacks that the banks will pay them for each punter they put through”. 
Similar concerns about Choice involvement have been expressed by the Mortgage and Finance Association of Australia. 
While supportive of the scheme and Choice backing it, MFAA chief executive Phil Naylor questioned Choice’s commercial involvement in an industry in which it has previously performed impartial advocacy.
Choice will earn a referral fee from each One Big Switch subscriber who takes up a lender offer. However, the consumer watchdog claims the money will be used to recover the costs of running the campaign.
Earlier the ABA issued a press release calling the scheme a “gimmick” and claimed bank customers would be better off talking directly with their bank if they’re not satisfied with their current mortgage. 
Harris says the more borrowers who sign up the better the deal they will be offered. 
Lenders of all sizes will be able to compete for mortgage business from those who have signed up but borrowers will be under no obligation to take up the offer. 
Harris says discussions with lenders are ongoing but will not say how many have expressed interest in getting involved.
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Lachlan Harris defends One Big Switch from critics

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A retail shop in Hoppers Crossing has sold at auction for $635,000 in lacklustre bidding. The price represents a yield of 7.9% on rental income of just under $50,000.
Just one bidder in a room of a 50 investors at Crown Casino in Melbourne made an offer on the 90-square-metre property currently tenanted by takeaway Noodle Land, which also has a shop in Werribee.
The investor had initially bid at $620,000, below the reserve price, but a revised offer of $635,000 was accepted by the vendor. The property was marketed for sale by Jamie Perlinger and Billy Holderhead from Burgess Rawson.
Expectations for the property were around the $680,000 mark.
The sale of the shop follows a 5,575-square-metre 7-Eleven service station at Hoppers Crossing on the corner of Old Geelong and Heaths roads selling for $3.49 million, the highest price achieved in an auction of 12 such sites. The sale was achieved at a yield of 6% and marketed by Jones Lang LaSalle agents Steve Bolton and Ben Galanos.
The property sold with a seven-year lease with three renewal options of seven years.
It is located at the front of the Hogans Corner Shopping Centre, which is anchored by Woolworths.
<a target="_blank" href="/news" title="Hoppers Crossing">Hoppers Crossing</a> is in the middle of the municipality of Wyndham, the fastest-growing municipality in Australia. According to ABS data the Wydnham population increased by 8% from 2009 to 2010 to stand at 154,094 as of June 2010.
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Hoppers Crossing loses some of its bounce

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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