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As the One Big Switch campaign passes 10,000 subscribers, new Mortgage Choice research reveals the popularity of ongoing discount home loans jumped 6% in July.
Ongoing discount home loans – where the interest rate is discounted over the entire loan term usually in return for an annual fee – reached an unprecedented 38.6% of approvals in July, with the number of these loans rising in all states.
Mortgage Choice spokeswoman Kristy Sheppard says ongoing discount mortgages could rise to 50% of all loan approvals over the coming months.
“With the cash rate on hold for the longest period since November 2006 to August 2007, this month we may see a reduction in fixed rate appetite and continued growing hunger for ongoing discount rate home loans,” she says.
Sheppard says the popularity of ongoing discount home loans is unsurprising given the array of deals on the table as lenders vie for greater market share.
“Upcoming borrowers will be adding up the value they place on guaranteed steady minimum repayments against the chance of a longer stretch of steady interest rates.”
The One Big Switch campaign, a commercial venture launched by former Rudd advisor Lachlan Harris and consumer group Choice, allows those who sign up to be approached by a panel of lenders offering them the opportunity to switch to a cheaper mortgage.
The growing attractiveness of ongoing discount rate mortgages comes as banks cop a spray from comparison website Mozo for treating small businesses such as estate agents as second-class citizens when it comes to providing them with banking products.
Mozo research reveals an average 0.56% difference between the best interest rates on offer to personal savings account customers and business savings account customers.
All of the big four banks (Westpac, NAB, Commenwealth and ANZ) and a handful of others impose tiered rates on business savers where balances under a certain level earn no interest at all.
Nearly half of the banks surveyed, including NAB, Westpac, St George, BankWest and Citibank, offer bonus interest rates to personal customers but not to business customers. Standard rates are also often lower for business customers.
Despite expectation of a fixed rate demand starting to trend down, during July demand for fixed rate products continued to rise, accounting for 13.3% of all mortgages approved by Mortgage Choice.
The appeal of fixed-rate loans diverged more widely across the country than in previous months.
Fixed-rate approvals increased in NSW and Queensland but fell in South Australia, Western Australian and Victoria.
The popularity of ongoing discount home loans continued to rise in July, increasing by more than 6% to an unprecedented 38.6%, with approvals rising in all states.
Demand for line of credit home loans, often more popular with investors, fell slightly to 4.7% of approvals and below the 12 month average
Introductory rate or honeymoon loans fell 1.6% to 3.3%.
<img src="/images/stories/mortgagechoiceaugust3.jpg">
Source: Mortgage Choice
The RBA decision to leave rates on hold at 4.75% in August was welcomed by many in the industry.
"The RBA has accurately assessed the Australian economy, including the property market, and left rates on hold,” says Real Estate Institute of Australia acting president Pamela Bennett.
CBA chief economist Michael Blythe says attention will now turn to the quarterly Statement on Monetary Policy, due on Friday, August 5.
“This statement will allow policy makers to flesh out the thinking behind the August decision and will also provide updated forecasts for growth and inflation,” he says.
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Discount mortgages gain ground as One Big Switch passes 10,000

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Vendors who list their properties through NSW agency Starr Partners will have the option of including a warranty to cover property and appliance repairs in the first 12 months of s sale.
The policy will cost $499, with vendors given the opportunity to opt in before settlement and transfer the warranty to the buyer’s name during settlement. Optional extras such as air conditoner and washing machine cover can be added at an additional cost.
Starr Partners is the first agency in Australia to offer this style of protection, which is already a $1.5 billion business in the US, according to Warranty Week.
The scheme is particurlar popular in the troubled California market, where buyers continue topurchase home warranties as part of existing home sales at a rate of approximately nine out of every 10 transactions.
Billy Jensen, president of the Home Warranty Association of California, attributes growth to the state’s home warranty industry to increased recognition that managing household expenses is paramount during a challenging economy.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/stories/starraugust3.jpg">
Source: Warranty Week (US figures)
Starr Safeguard will cover a property’s major systems including electricals, plumbing, lock systems and minor roof damage as well as the major appliances (hot water system, stove, cooktop and dishwasher).
The launch of the cover follows a survey of 200 people by Starr Partners that found strong support for the concept.
Almost 90% of respondents said they were either concerned or very concerned about the ability to cover additional costs that might arise in your first year of ownership, and 97% said a warranty was either important or very important to making a purchase.
Nearly all respondents said a home warranty would be a benefit when buying a house.
Douglas Driscoll, Starr Partners CEO, says the warranty will fills the gap in the market. “Home and contents insurance can cover property damage due to flood or fire. Building inspections usually focus on the structure and building work. Starr Safeguard, on the other hand, covers single items that fail – for example, plumbing failures due to blockages by tree roots.”
Driscoll says vendors also benefit from home buyer cover giving buyers confidence and peace of mind that potential problems may be covered.
“It also covers the seller throughout the selling process. For instance, if a covered hot-water system blows just before the sale, Starr Safeguard will contribute to its repair or replacement,” he says.
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Real estate agency introduces home buyers home warranty initiative

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Australians who own homes near the ski slopes in Niseko, Japan will open them up to survivors of the March tsunami over the summer months.
The resort town will welcome about 450 residents from Fukushima as part of a relief program that offers disaster victims temporary accommodation in one of the village’s many holiday condominiums.
Participants will stay in 63 properties – ranging from backpacker to luxury accommodation – for periods of a few days to up to a few months.
They will pay only a minimum fee for running costs, courtesy of the property owners, made up of a large contingent of Australian investors, who discovered the ski village in the mid-1990s.
The “Niseko Tsunami Relief,” program was initiated by members of the local and international property owner community in Niseko and is being organized jointly with the Hokkaido Voluntary Evacuation Support Network.
According to Bill Aslanidis, operations manager at LJ Hooker Japan, overseas owners visit Niseko regularly and have a keen interest in the area and Japan, and wanted to help with relief efforts in a direct way.
Niseko holiday companies will provide the necessary management services for free.
Primary beneficiaries of the program will be mothers with young children seeking an escape from the ongoing radiation crisis in Fukushima, and a safe, clean environment in which to spend the summer holidays.
Municipal government offices, local businesses and many local volunteers will also play a role.
Local businesses and members of the community have also joined forces to offer the participants area orientation, as well as a range of outdoor activities such as rafting, hiking and sports, discounts at restaurants and shops, and various events.
The program runs until the end of August.
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Japanese tsunami victims offered ski field summer homes by charitable Australian investors

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Sentiment towards property investment remains surprisingly strong, though potential investors are steering clear of Perth, according to a new survey.
Nearly two-thirds (59%) of the 2,200 investors and home buyers surveyed by Metropole Property Investment plan to buy an investment property over the next year.
Although Perth is the epicentre of the mining boom, investors appear unwilling to speculate on the WA capital, with only 9% expecting it to show good capital growth over the next two years.
<img src="/images/stories/yardneyaugust3.jpg">
According to Michael Yardney, founder of Metropole, investors are responding to the current poor market sentiment and are not willing to think long term.
“Perth has shown the least growth over the past 12 months. Investors are only interested in what has recently happened as opposed to what might happen in the future,” Yardney says.
“Most people miss the bottom of the market because they are waiting for the good news. They want certainty and comfort. There are too many mixed messages coming out of the market – they don’t want to speculate.”
According to ABS June quarter statistics, the values of established houses in Perth have dropped by 4.1% compared with the same quarter in 2010, the biggest drop of all capital city markets.
Seasonally adjusted data for June, released by RP Data-Rismark, shows the Perth housing market down 4.7% on the year, with a median price of $461,000.
Brisbane house prices are down by an even greater amount over this period, according to RP Data-Rismark (6.3%).
However, Metropole survey respondents are more optimistic about Queensland’s capital city, with 16% choosing it as the best place to invest.
Current market sentiment did not appear to factor in the minds of respondents when it came to Melbourne and Sydney.
The currently flat Sydney market is still seen as a safe bet by more than a quarter (28%) of respondents, while Melbourne came in a close second with 23% of the vote.
Melbourne was rated the weakest-performing capital city in the June quarter by RP Data-Rismark, with values down 2% compared with the same time last year. A similar decline was recorded in the ABS June quarter results.
Only 5% of respondents expect Adelaide property values to grow strongly over the next two years, with mining towns and regional towns equally unpopular.
Alongside the positive outlook for property investment, nearly a fifth of respondents plan to buy a new home in the next year.
The positive findings about property investment come despite 43% of respondents expecting property prices to fall over the next year, compared with only 27% who expected prices to fall when surveyed six months ago.
Yardney says the message from the survey is that despite all the negative message sentiment, many Australians are still keen to take advantage of the current market and buy their first homes, upgrade their current homes or buy investment properties. 
“And they’re willing to make sacrifices to ensure this happens.” 
The biggest concern of investors and buyers is obtaining finance, though this has fallen from 33% six months ago to 28% followed by economic uncertainty and negative cash flow. 
Metropole respondents said they were willing to make major lifestyle sacrifices (food, alcohol, day to day spending, buying a cheaper property) to get onto the property ladder, which concurs with the results of a survey by Mortgage Choice in July.
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Property investors still prospecting, but Perth's off the table

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The RBA has left interest rates on hold for the eighth straight meeting.
The cash rate remains at 4.75%. It was last raised by 25 basis points in November last year.
Before the decision, economists were split over whether the central bank would raise interest rates following higher-than-forecast CPI figures for the June quarter.
Annual inflation currently stands at 3.6%, outside of the RBA’s target band of between 2% and 3%.
Concerns over continued economic woes in Europe and the US were factors identified as inhibiting a rate rise.
The Australian dollar hardly changed in response to the news, trading at $1.097 off a day high of $1.10.
A statement by RBA governor Glenn Stevens following today’s decision revealed that global concerns outweighed domestic inflation worries.
“At today's meeting, the board considered whether the recent information warranted further policy tightening. On balance, the Board judged that it was prudent to maintain the current setting of monetary policy, particularly in view of the acute sense of uncertainty in global financial markets over recent weeks. In future meetings, the board will continue to assess carefully the evolving outlook for growth and inflation,” Stevens says.
Stevens says downside risks to the global economy have increased, however, as concerns have grown over the outlook for the public finances of both Europe and the United States.
On the issue of inflation, Stevens said year-ended CPI inflation has been high, affected by the extreme weather events earlier in the year.
“As these effects reverse over the next couple of quarters, CPI inflation should decline. But measures that give a better indication of the trend in inflation have begun to rise over the past six months, after declining for the previous two years. While they have, to date, remained consistent with the 2 to 3% target on a year-ended basis, the board remains concerned about the medium-term outlook for inflation,” he says.
Commenting on the RBA’s decision, RP Data national research director Tim Lawless says Australians have become very interest rate-sensitive, a fact that can be seen in the low number of transactions across the housing market and weak growth in retail spending.
“At a time when inflation has risen outside of the RBA’s comfort zone we also have a situation where consumers simply aren’t spending and are lacking confidence. The stability in interest rates over the past nine months would have been welcomed by many mortgage holders, however speculation about future rate lifts is likely to continue to dampen market conditions anyway,” he says.
The RBA’s decision to keep rates on hold follows ABS data that reveals the magnitude of house price falls as well as the continued deterioration of the home building sector.
House prices have fallen by 1.9% across capital city markets for the year to June 2011, with the biggest falls in Perth and Brisbane, while home building approvals fell to a two-year low in June 2011.
The seasonally adjusted estimate for total dwellings approved fell 3.5% following a fall of 6.3% in the previous month, according to ABS figures.
“Evidence continues to mount of an accelerated deterioration in new home building conditions,” says HIA chief economist Harley Dale.
“That situation highlights the appropriateness of continued steady interest rates, the need for stimulus to arrest the new housing decline, and the importance of reform at the October Tax Forum to remove the excessive taxation levied on new residential construction,” Dale says.
Westpac said building approvals were significantly weaker than expected in June, with surprising weakness noted in Queensland.
“They are now 19.6% lower since December - a surprise given that initial falls were mainly due to disruptions from weather events in January to February that were expected to see a significant bounce mid-year as activity returned to normal in affected areas and rebuilding activity came through,” says Julie Doel from Westpac Economics.
“Instead, approvals recorded a partial revival in March (+8.1% for the month) but have moved steadily lower since. Some of this may be because of approval waivers for post-flood rebuilds in parts of Queensland.”
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RBA keeps rates on hold for eighth straight month

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A Sydney mortgage broker who advised clients to invest up to $7 million in a Hong Kong business called US Mortgage Giant has been permanently banned by ASIC from providing financial services. 
An ASIC investigation found that Erin Watson, 35, of Woolooware, NSW had engaged in misleading and deceptive conduct by enticing about 100 investors from the Hunter Valley, Sydney, Canberra and Wollongong to join the scheme between 2005 and 2007. 
ASIC found that from September 2006 to March 2008 Watson used clients’ money to pay her home loan, family members, clients of Home Equity and companies associated with Home Equity.
Watson was a director of Home Equity Pty Ltd and still remains a director of a number of companies including, but not limited to, Home Mortgages Australia Pty Ltd. 
A search across Yellow Pages reveals a Home Equity Pty Ltd located at Level one 7/448 458 Parramatta Road in Strathfield, Sydney. The company is listed as a “financier”. Calls to the number did not go through. According to ASIC, between March 2007 and February 2008 neither Watson nor the aforementioned companies held an Australian Financial Services licence, nor was she an authorised representative of an AFS licensee. However, during this period Watson met with potential investors, dealt with clients and signed agreements entered into by Home Mortgages Australia. 
Watson representing to clients that they would be investing in a large experienced overseas company based in Hong Kong known as US Mortgage Giant, which she told them invested in property and finance. 
She convinced investors their investments were “watertight” by lodging documents with ASIC that US Mortgage Giant was a legal entity and a significant shareholder of Home Mortgages Australia and a number of associated companies. 
Watson told investors they were investing in a tax deduction scheme which she said had Tax Office approval while it was in fact being investigated by the Tax Office, the SMH reported in June last year. 
In July 2009 she told investors she was winding up the scheme. 
Watson has the right to apply to the Administrative Appeals Tribunal for a review of ASIC’s decision.
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Mortgage broker gets ASIC life ban for deceptive conduct

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Three eastern Melbourne suburbs – Glen Iris, Armadale and Kew – achieved rental growth in excess of 10% in the last quarter, according to the latest quarterly market report compiled by RUN Property.
Kew registered the biggest increase in absolute terms, with rents rising by $52 a week over the 12 months from June 2010 to June 2011 to $567.
Glen Iris rents increased by $35 per week to $375, while Armadale rents increased by $37 per week to just under $400.
Inner-city rental increases were led by Glebe in Sydney’s inner west.
Tenants taking out new leases in June 2011 in Glebe are now paying on average $585 per week compared, with $523 a year ago, an increase of $62.
Despite the 11.8% increase in rental income generated over the year, Glebe failed to make onto the <a href="https://www.propertyobserver.com.au/hotspots/of-15000-suburbs-21-rise-to-the-top-as-worth-a-look-for-investors/2011072750933" title="Editor's commentary" target="_blank">Top 100 investment hot spots lists</a> of either Australian Property Investor or Your Investment Property.
Neutral Bay on Sydney’s inner North shore recorded the biggest percentage increase of 12.1%, with rents increasing by $53 over the period from $440 to $493.
In total, eight Sydney suburbs recorded rental increase of above 10% for the year: Kogarah, Randwick, Potts Point, <a target="_blank" title="Redfern" href="/news">Redfern</a>, <a target="_blank" title="Surry Hills" href="/news">Surry Hills</a> and <a target="_blank" title="Chippendale" href="/news">Chippendale</a>.
<a target="_blank" title="Nundah" href="/news">Nundah </a>is Brisbane’s rental hotspot, achieving growth of 5.9% over the year to June 2011. Rents in the suburb, which is about eight kilometres north east of the CBD, have increased by $17 over the past year to just over $300 per week.
The rent increases relate only to new tenancy agreements.
RUN Property chief executive Rob Farmer says rising rents will boost the confidence of investors and encourage more to buy, especially during the property market’s quieter winter months.
“Rental growth has been strong and consistent over the past 18 months, so it surprises me that more investors are not taking advantage of the dip in sales activity to secure their next bargain investment,” he says. 
RUN Property manages 18,000 properties throughout Melbourne, Sydney and Brisbane.
<img src="/images/stories/victoriarents.jpg">


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Rents rocketing in Melbourne's eastern suburbs

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The Australian Bankers’ Association has labelled the Choice campaign to encourage borrowers to switch their mortgage providers a “gimmick”
“The Choice gimmick is fine, but bank customers would be better off talking directly with their bank if they’re not satisfied with their current mortgage,” says Steven Münchenberg, chief executive of the ABA. “People already have a lot of negotiating power in the competitive home lending marketplace, especially now, when demand for credit is low,” he says.
Münchenberg claims that borrowers are “routinely offered discounts, which can shave up to 1% off the interest rate saving thousands of dollars over the full term of the loan”.
The Choice campaign was set up in tandem with loan advisor One Big Switch, set up by Lachlan Harris, Kevin Rudd’s former spin doctor.
The scheme was launched on July 31, 2011 following the government ban on mortgage exit fees and has already attracted in excess of 10,000 borrowers by mid-Tuesday who have pledged to explore switching to a better mortgage deal.
The scheme had an initial target of 1,000 borrowers and will close on August 14.
Mortgage holders register at www.bigbankswitch.com, with lenders then competing to make offers to the registered group. They are under no obligation to switch.
It has the partial support of the Mortgage and Finance Association of Australia, which is predominantly made up of mortgage brokers and smaller lenders.
MFAA chief executive Phil Naylor has welcomed it as an attempt to “free up competition in the home loan sector” but has questioned Choice’s commercial involvement in an industry in which it has “previously performed impartial advocacy”.
“One Big Switch is a joint venture between Choice and a commercial operation that matches borrowers with the best bank mortgage rate,” Naylor says.
“One Big Switch will earn commissions on successful mortgages and Choice has announced it will receive referral fees for its part in the transactions both practices of which Choice has, in the past, been critical.
“The MFAA is surprised that Choice is now becoming commercially entwined in the industry,” he says.
Choice says any fees received from One Big Switch will be used to recover the costs of running the campaign.
Criticism of the scheme comes on the back of bank regulator APRA writing to bank chairmen calling for appropriate pricing of mortgages including adequate loan to value ratios and other risk criteria.
APRA is concerned that lower mortgage growth is encouraging an aggressive approach by banks to win mortgage business including easing of lending standards to pre-GFC levels.
Naylor says that consumers should be aware that One Big Switch is not a new service; it is the service that 12,000 MFAA approved broker members perform for clients every day.
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Choice's Big Switch home loan campaign a 'gimmick', say bankers

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The failed bid by of a consortium of three hedge funds to instigate a management takeover at Charter Hall Office REIT is unlikely to deter further action, according to JP Morgan analyst Scott Jackson.
His comments follow the three US hedge funds - Orange Capital, Point Lobos Capital and Luxor Capital, which collectively hold 19.06% of Charter Hall units, announcing that they will continue with their co-operative arrangement until the end of October.
Last week, unit holder in the A-REIT voted overwhelmingly (62% opposed) against a proposed resolution by the consortium to sack the current Charter Hall Office REIT management and replace it with Moss Capital management and wind up the fund.
Despite the heavy defeat, Jackson says the action yielded benefits for the hedge funds included an increase in the unit price and a current review of corporate governance arrangements and fee structures.
A similar best practice review will also be undertaken of the Charter Hall Office REIT management team.
Since Orange Capital along with Point Lobos Capital and Luxor Capital began agitating for a management takeover the share price rose to a peak of $3.60, though it has fallen since then and is currently trading around the $3.34 mark. At the start of the year it was trading below $2.90.
The portfolio is fully price at $3.96, representing a discount on net tangible assets of about 17%, and has a market cap of $1.875 billion.
One analyst told the Australian Financial Review it would be preposterous to assume the A-REIT would not be trading where it is now were it not for the action of the hedge funds.
Andrew Parsons, managing director of Resolution Capital, writing in the Sydney Morning Herald said the shareholder revolt showed the difficulty of management of externally advised REITs to serve “two masters; “investors and the owners of the management entity”.
Parsons says a crisis of confidence still shrouds A-REITs in the wake of the Federal Court case concerning Centro - the risk of its collapse should have been apparent to experienced directors.
“On a positive note, with debt at reasonable levels and lower distributions payout ratios pointing to sustainable distributions per unit, A-REITs are becoming reliable providers of income and are capital self-sufficient. However many continue to trade at a discount to net tangible assets and their offshore REIT peers,” he says.
In tabling its resolution, Orange Capital had claimed that the board of Charter Hall Office management has an inherent conflict of interest and was incentivised to favour the interests of Charter Hall and not make decisions that are in the best interests of unit holders.
“From here it’s a matter of trying to guess what their next bet is – but hedge funds are typically not long-term holders of these assets,” Jackson told Property Observer.
“They won’t just sell out and go away. They are now a lot more determined to push up the share price to net tangible assets,” he says.
Possible option could see the hedge funds targeting large investors to buy up the assets in the fund and then get the fund wound up and realised at book value.
The office assets held by the fund are currently valued at $3.6 billion. However the fund is currently in the process of selling off its US office assets. Sale of these assets will reduce the fund to around $1.9 billion, geared to around 30%.
Prior to the takeover bid, the Charter Hall Office REIT, along with many other office REITS, was trading at a significant discount to its net tangible assets.
Mark Wist, senior asset consultant at Atchison Consultants, recently told Property Observer the Charter Hall vote could be seen as a “barometer for sentiment in the A-REIT space” indicating little appetite for change.
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Hedge funds still aggressively hovering over A-REITs

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US equity firm Blackstone has bought ailing property trust Valad for $207 million.
The sale will see unit holders receive a payout of $1.80 – a steep discount to net tangible assets.
At its peak the trust was valued at $2.40 a share. It was last trading at $1.78.
A resolution to approve the buyout was supported by 95% of unit holders.
Valad chairman Trevor Gerber blamed the GFC for the group’s downfall.
As at June 30, 2010, the group had $8.1 billion in assets under management across 22 funds and mandates in Europe and Australia. In 2009 the fund had $9.2 billion. 
Australian assets held by the fund include the Sheraton Noosa Spa and Resort, which it attempted to sell earlier this year. The sale was suspended in May pending the Blackstone takeover.
Substantial shareholders include UK-based private investment firm Centaurus Capital, which held 10% of the shares, Morgan Stanley Australia (6.36%) and Mitsubishi UFJ Financial Group (6.37%)
The buyout is subject to approval by the NSW Supreme Court.
Valad is due to stop trading on August 12 with investors being paid out on August 26.
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Blackstone snaps up heavily discounted Valad

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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