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Property and investment group FKP will be seeking to fill a gap in the Sydney North Shore market as it undertakes a major refurbishment of its 15-storey office tower at 465 Victoria Avenue in Chatswood.
Marcus Pratley of Richardson &amp; Wrench, co-leasing agent alongside Robert Gishen of Colliers, says he expects larger companies to jump at the opportunity, as there is a paucity of space that size between North Sydney and Chatswood.
“For corporates looking for 5,000 square metres and above there is nothing available. We expect the completed building to have major appeal to larger occupiers,” he says.
Each floor of the building will be modernised, and the 15,000 square metres of space refurbished to an A-grade standard. FKP’s construction team has been appointed to complete the refurbishment.
Net rent expectations for the refurbished building, which will commence in August and take 10 months to complete, are between $400 and $460 per square metre.
Floor plates in the building are about 985 square metres.
The modernisation will include the construction of a double-height foyer incorporating a lobby lounge and café.
It will have glazed facades, sculptural ceilings, a stone feature wall, lounge-style seating, a timber-paneled lift lobby and a floor of warm-toned limestone trimmed with stainless steel. Uplighting will ensure the foyer will glow at night, enhancing the building’s street presence.
This lobby extension will create a prominent street presence, increasing connectivity to Victoria Avenue.
The foyer will flow into the outdoor retail area, which will be rejuvenated. It will have new shops, a rotunda, lawns and a dining precinct.
As part of the redevelopment the existing pedestrian bridge to the old railway station will be removed, and the entry on the corner of Railway and Brown streets will be given greater prominence.
The building and services upgrade is registered for a five-star National Australian Built Environment Rating System and four-star green star rating with sustainability upgrades to all floors maximising usable space and natural light.
FKP Property Group acquired Vero Tower, as it was then known in August 2007, for $98 million. The purchase price represented a price per square metre of $6,465 and initial passing yield of 7.2%.
The building first sold in 1998 for $78 million and then in 2004 for $86 million.
The A Grade building was purpose-built for insurance group Royal Sun Alliance in 1995.
The building is situated close to Chatswood Interchange, which services about 70,000 commuters per day as well as Willoughby Council’s $200 million entertainment quarter called The Concourse, which will open in September.
Suncorp, the former tenant, has already vacated the building.
Andrew Hall, FKP executive general manager commercial and industrial, says each floor can accommodate a workspace ratio of one employee per 10 square metres.
Office vacancies in Chatswood currently sit at about 20%, high compared with a national CBD vacancy rate of between 7% and 8%.
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Chatswood office tower refurbishment to appeal to larger tenants

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Consolidated Pastoral Company has added the 23,000-hectare Comely-Mapala station near Bauhinia, south west of Rockhampton, to its 19-strong cattle property portfolio.
It is the first major cattle station sale since the government’s month-long live cattle ban was lifted on July 7. The ban cast doubt over rural property valuations and according to Herron Todd White valuer Terry Roth increased the risk profile of investing in the northern Australian cattle industry.
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The price was not disclosed but is reportedly significantly below the $35 million asking price.
The sale of the property was negotiated by Elders agent Virgil Kenny on behalf of Bill Reid.
Reid purchased the property from the Georgina Pastoral Company in 2008 for $26.5 million, including cattle.
The Comely-Mapala Station was sold bare of livestock.
According to the Australian Financial Review, Reid was happy with the price paid by Consolidated Pastoral.
Consolidated Pastoral’s 19 properties covering more than 5.7 million hectares and is responsible for the management of more than 350,000 cattle across North Australia.
The company is majority owned by London-based private equity firm Terra Firma.
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First Top End cattle station sold since live export ban

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An increase in mortgage enquiries coupled with declining property prices may point to a return of buyers and investors to Western Australian and Queensland.
For the year to July 2011, mortgage enquiries have increased from 16.7% to 18.5% in Queensland and from 11.6% to 13.5% in Western Australia as a percentage of all enquiries on mortgage comparison website Yourmortgage.com.au.
During roughly the same period, property prices have declined by 6.3% in Brisbane and by 4.7% in Perth, according to the June RP Data?Rismark Hedonic Home Value Index.
The drop in capital values has been coupled with rental yields in both cities remaining at or above the national average for capital cities, indicating there may be opportunities for investors.
The position of investors appears particularly strong in Brisbane, where yields for both houses and units are well above the national capital city average – 4.7% for houses compared with 4.2% nationally and 5.3% for units compared with 4.9% nationally.
Perth houses are yielding above average returns of 4.3%, while units are returning a yield of 4.7%, just below the national average.
RP Data senior research analyst Cameron Kusher says Brisbane units, which are currently valued at median price below $380,000 compared with a capital city average of $420,000, are looking particurlarly attractive to investors.
Rismark economist Christopher Joye also sees opportunities for investors: “Patient folks opportunistically investing in housing are probably going to find the best prices, and valuation fundamentals, that they will have had access to in a long time.” 
“The Australian housing market’s demand- and supply-side fundamentals remain healthy. And they will improve further in the year ahead. The one fly in the ointment is interest rates. 
“When the RBA comes to cut them, affordability in this country is likely to be the best we’ve seen in over a decade, which will help fuel a robust recovery and encourage investors to allocate scarce capital to boosting housing supply,” he says. 
Analysis of the Yourmortgage.com.au statistics reveal that more than third of inquiries came from prospective NSW buyers, up 0.66% to 37.84%, while increases over this period were also recorded in the ACT (up 0.2% to 2.07%) and in the Northern Territory (up 0.55% to 0.99%).
The biggest drop in buyer activity occurred in Victoria, where mortgage enquiries declined by 3.39% to 21.8% over the course of the year.
The Melbourne investor market has been battered by the twin forces of declining property values and the lowest rental yields among all capital cities.
Melbourne property values have declined by 3.9% for the year to June, while gross rental yields stand at 3.7% for houses and 4.3% for units.
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Borrowing enquiries up in Queensland and WA

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Thinking of buying or building a new house or even investing? Varying state government grants are always available, but there were several changes following the release of state budgets. From today, Queenslanders will be able to access an extra $10,000 for newly build houses.  We have taken a snapshot of what’s currently on offer across all states and territories:
 
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New home buyers will benefit from a short term $10,000 Queensland building boost grant, which is available for newly built homes purchased before the start of 2012. The grant is available to individuals, corporations or trustees (including superannuation funds) buying or building a new home in Queensland for a value less than $600,000 (house and land) and can be applied for multiple times provided the conditions are met. The grant is available up until January 31, 2012. The $7,000 first-home owner grant remains in place.
<a target="_blank" title="Queensland first home buyer grant" href="https://www.budget.qld.gov.au/current-budget/tax-reform/faqs.shtml" style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;">Click here to find out more.</a>
 
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The first home bonus is available for first home buyers who purchase a house up to a value of $600,000 in Victoria. A further $6,500 is available for those buying in a designated regional Victorian location. Both grants are available up until June 30, 2012 and are in addition to the existing $7,000 first home owner grant scheme, which remains in place across the state.
<a target="_blank" title="Victorian first home buyer grant" href="https://www.sro.vic.gov.au/sro/SROnav.nsf/childdocs/-6BF180369BCB3975CA2575A1004420CF-65A02CC2EEDDD527CA2575A1004420E8?open">Click here to find out more.</a>
<a target="_blank" title="Eligible regional municipalities" href="https://www.sro.vic.gov.au/sro/SROnav.nsf/LinkView/DBFEE9B4136A31E1CA2575CB00012C3265A02CC2EEDDD527CA2575A1004420E8">Click here for a list of eligible regional municipalities.</a>
 
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The amount you might be able to snap as part of the Northern Territory government’s “BuildBonus” incentive. The grant is available to home buyers and investors, including companies and trustees, that sign a contract to purchase or build a new home (including signing a contract for a house and land package), or unit (including off the plan) or commence construction of a new home as an owner-builder. The grant is available up until December 31, 2011. The value of a new unit or new home or the total construction cost of a new home (including the value of the land on which it is built) is capped at $530,000. The BuildBonus is available to first-home buyers in addition to the first home owner grant. (This means that eligible first home buyers are eligible for assistance of up to $17,000.)
<a target="_blank" title="Northern Territory BuildBonus" href="https://www.housingnt.nt.gov.au/Buy/buildbonus/index">Click here to find out more.</a>
 
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This money is up for grabs as part of a Regional Relocation Home Buyers Grant in NSW, which will operate for four years June 30, 2015. The scheme provides a one-off payment to assist with the cost of relocating from a metropolitan home to a regional home. The metropolitan area means the local government areas of the Sydney metropolitan area, Blue Mountains, Hawkesbury, Gosford, Wyong, Wollondilly, Wollongong and Newcastle. All applicants must have owned and occupied the metropolitan home as their principal place of residence within 12 months before the contract exchange date of the regional home purchase. It is available for purchases up to $600 000. All applicants must sell the metropolitan home either before or within 12 months after the completion date of the regional home purchase. A further $7,000 is also available via the first-home owner grant.
<a target="_blank" title="NSW home buyer grants" href="https://www.osr.nsw.gov.au/benefits/rrg/">Click here to find out more.</a>
 
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First Home buyers who qualify for the $7,000 first-home owner grant in South Australia may also be eligible for a first home bonus grant of up to $8,000 if they enter into a contract to purchase or build a new home, or commence construction as owner builders before July 1, 2012. As part of the 2011 state budget the $8,000 first home bonus grant will be phased out by July 1, 2013. It will be reduced to $4,000 from July 1, 2012 and then to be fully abolished from July 1, 2013. The first home owner grant is not being phased out.
<a href="https://www.revenuesa.sa.gov.au/fhog/index" title="SA home buyers" target="_blank">Click here to find out more.</a>
 
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The Home Buyers Assistance Account in Western Australia provides a grant of up to $2,000 for the incidental expenses of first-home buyers when they purchase an established or partially built home through a licensed real estate agent for the purchase price of $400,000 or less. This is in addition to the first home owner grant, which is still available in the WA.
<a target="_blank" title="First home buyers wa" href="https://www.finance.wa.gov.au/cms/content.aspx?id=344">Click here to find out more.</a>
 
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The first home owner grant is still available in Tasmania.
<a target="_blank" title="Tasmania first home owner grant" href="https://www.sro.tas.gov.au/fhog">Click here to find out more.</a>
 
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The first home owner grant is still available in ACT. 
<a href="https://www.revenue.act.gov.au/home_buyer_assistance/first_home_owner_grant" title="ACT first home owner grant" target="_blank" style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;">Click here to find out more.</a>
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Government property grants by the numbers: State by state

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The West Australian newspaper group and the Real Estate Institute of Western Australia have taken on Realestate.com.au with a new a listings website for the local state market.
The website <a href="https://www.westrealestate.com.au/">www.westrealestate.com.au</a> is owned by West Australian newspapers, with content and listings provided by the REIWA and its members.
“This is a strategic business move to ensure that the independence of both The West and reiwa.com is maintained and ensures healthy competition for the national providers of online real estate advertising,” says REIWA chief executive Anne Arnold. 
Most agents would see these comments directed squarely at News Corp-0wned REA, which has 70% of the online property ad market. Next biggest is Domain.com.au, owned by Fairfax, which only has a 20% share, according to AFR. 
The website’s launch follows reports of growing discontentment among agents towards ASX-listed REA Group over plans to approach home owners directly to run ads on its site and the group pushing up advertising rates in a flat property market.
In a recent AFR interview, Geoff Baldwin, chief executive of 14 RE/MAX offices in WA, called REA “chief extortionists”.
“They continue to put the price up and say to us, ‘You need us, you need our product’. Now they come out in public and say, ‘It’s our intention to go direct to the public’.”
REA chief executive Greg Ellis has defended the increase in subscription prices, saying its rates are still lower than what newspapers charge for property ads.
Ellis says REA will not approach customers without the consent of their agents.
“We have no plans at all to disintermediate the agents,” he says.
Realestate.com.au has a market cap of more than $1 billion.
In the 2010 financial year, it generated $194.3 million in revenue, an increase of 16% on the previous year.
Last month David Burkett, chief executive of the Independent Print Media Group, said it planned to turn Homehound, a rival listings website, into a more serious competitor to REA.
“Real estate agents always have issues with REA, but they still advertise with it,” Burkett says.
Homehound is a joint venture between real estate franchise groups LJ Hooker, Raine &amp; Horne, Century 21 and Ray White and the Hannan media family.
Earlier in July, it was reported that Liberal Party powerbroker Michael Kroger and The Weekly Review magazine, launched by Anthony Catalano, former property editor and marketing manager for The Age, had been involved in separate bids to establish top-end websites that would challenge the dominant position of realestate.com.au.
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West Australian launches localised REA rival

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HSBC economist Paul Bloxham says the case for the RBA raising interest rates is “solid”, but they won’t go up in August.
Instead, borrowers should expect a rate hike in the fourth quarter of 2011 due to an expectation of inflation continuing to rise.
This follows ANZ chief economist Warren Hogan going out on a limb by suggesting rates will rise at the next RBA monetary policy meeting on August 2 following higher-than-forecast June quarter inflation data.
In a note titled “The RBA Observer” Bloxham writes that in a normal state of the world, two quarters of the inflation measure being outside the target band (2% to 3%) would be enough to motivate a hike. 
However, Bloxham says the world is currently “full of tail risks”. 
“And, as the RBA governor is fond of saying, monetary policy is set with the principle of ‘least regret’ in mind. 
“We think the ‘least regret’ approach implies steady policy next week to let the smoke clear. 
“What smoke? Two main things: to determine if recent weaker domestic business and consumer sentiment are temporary or something that genuinely impacts economic activity and to allow some of the global risks to resolve.” 
Uncertainty about whether the US can resolve the debt ceiling crisis may also way on the RBA’s decision. 
Unfortunately for the RBA, as Bloxham notes, the deadline to lift the debt ceiling is only “a few hours after the RBA makes its cash rate announcement, but a few hours before a policy change would be implemented the next morning. 
“Lifting rates in that window may be risky if things don’t go so well in the US,” he says. 
Bloxham says a weakness in the supply side of the economy combined with weak productivity growth “mean the economy cannot grow as fast as previously, without generating inflation”. 
“We expect the supply side will remain weak when demand will be rising. Indeed, much of the demand in the economy is already set in train, in the form of a large number of massive mining investment projects,” he says. 
“Over the coming year or two, these inexorable forces are expected to collide and drive up inflation. We think that the pick-up in inflation in the first half of the year is the beginning of this trend and expect the RBA to see it the same way.”
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Rates will go up, but not this time around: HSBC's Bloxham

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An increase in the cash rate will spark house price falls, according to Cameron Kusher, senior research analyst at RP Data. 
The June RP Data-Rismark Hedonic Home Value Indices reveals that while national houses prices fell for the sixth straight month, down 0.2% on a seasonally adjusted basis, the drop in values has been moderating since January, when capital city values fell by 1.2% due to the impact of natural disasters. 
However, Kusher told Property Observer that if rates go up (ANZ is forecasting a rate rise as early next week, HSBC in the fourth quarter of 2011), bigger monthly falls in house prices are expected. 
Besides interest rate fears, Kusher says problems in the US and Europe need to be resolved to increase confidence in housing and bring investors back into the market. 
Rents and yields need to increase further to attract investors, he says. 
“Yields are not where investors would like them to be… Some cities are doing better, for example units in Brisbane and Sydney,” he says. 
Rismark economist Christopher Joye says: “We think the RBA is likely to raise rates at least once or twice more to address Australia’s burgeoning inflation problem, which means dwelling values will probably soften a bit further. This should open up attractive investment opportunities.”
“Higher rates means the rental market will tighten beyond its already firm levels, with vacancy rates near all-time lows. In turn, this will drive rents and yields even higher. Over the next year we expect to see wages and disposable incomes continue to rise solidly while house prices flat-line or taper modestly,” Joye say
According to the latest index, Canberra has been Australia’s best-performing housing market over the last three months. 
Reflecting the flat state of the national market, Canberra house prices only increased by 0.5% over the June quarter, but still easily outperformed the next best market, Sydney, where house prices have fallen by 0.2% over the quarter. 
Melbourne house prices recorded the biggest quarterly fall of all capital city markets, down 1.6%, with Perth and Brisbane both recording falls of 1.3%. 
The Victorian capital also has the lowest rental yield, with gross rental yields of 3.7% for houses and 4.3% for units. Darwin is the strongest, with yields of 5.2% for houses and 5.6% for units. 
For the year to date Canberra is now the second-strongest housing market, behind Sydney (up 0.5%), with values down 0.3%. 
Brisbane remains easily the most depressed, down 6.3% compared with the same time last year, followed by Perth (4.7%), Adelaide (3.1%) and Darwin (2.7%).
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Kusher says Canberra along with Sydney is the country’s most resilient market. 
Key reasons for this include the government’s heavy control of land release to developers and new housing supply relative other states, its low unemployment rate and “pretty decent” rental yields. 
“Rental yields [of 5% for houses and 5.4% for units] are encouraging people to invest in the Canberra market,” he says. 
“The other factor is Canberra’s big public service sector, with a lot of people earning above-average wages.” 
Kusher says the falls in Melbourne house prices reflects a market that is now correcting itself following two periods of accelerated growth in excess of the capital city benchmark.
“We have seen the same thing happen in Brisbane and Perth,” he says. 
The latest index also revealed the continued weakness in the premium market with the most expensive 20% of the market down 5.6% year-on-year, well in excess of the 2% drop nationally. 
“This comes back to poor equity markets and low confidence,” Kusher says.
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House prices to fall following next interest rate rise: RP Data

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Government proposals to reduce stamp duty and consider alternative tax arrangements for housing have been welcomed by the Housing Industry Association, but the organisation says more needs to be down address the “chronic housing shortage”.
During the two-day October Forum, the state taxes session discussion will look at opportunities to replace stamp duties on property conveyances with reformed land taxes.
The personal tax session discussion will consider whether there are opportunities to improve efficiency in the housing market with alternate tax settings and policies.
According to the discussion paper, stamp duty on conveyances currently contributes almost a quarter (23%) of state revenues, while land taxes account for 11% of state revenues.
However, the government acknowledges that stamp duty can suppress the number of transactions in the housing market and reduce the effective supply of housing.
HIA managing director Shane Goodwin says an acknowledgment that stamp duties are a highly inefficient tax while also leaving room for substantial reform to this taxation element is one of the pleasing aspects of the discussion paper.
Other proposals the HIA has welcomed include a commitment not to change the treatment of the family home in income support means tests and a reiteration of the importance of improving the efficiency of housing supply.
However, the HIA says much more needs to be done to reduce the tax burden placed on new housing by all tiers of government.
Goodwin says independent economic modelling by the Centre for International Economics has found that the total taxation burden on a new home can be well over 40% of its purchase price.
"Worryingly, most of the taxation burden is borne by the home buyer. The Tax Forum could be used to reduce this large impost on homes and hence increase housing supply and improve affordability." "Housing is a true necessity of life, and the current restrictions to housing supply have created a large dwelling shortage that has driven escalating prices and climbing rents, and has placed unnecessary financial pressure on Australians already struggling to meet the rising costs of living," he says.
In the discussion paper, the government says that stamp duty applied to the transfer of property increases the cost of buying and selling a home and can have implications for individuals and the economy.
“Many factors influence decisions about where to live, but these transactional costs can make it more costly for Australians to move location to find work, can make it more costly to upsize or downsize a home as family circumstances change, and can penalise people who move for non-work reasons,” the paper says.
The HIA is one just two housing industry bodies – the other being the Property Council of Australia – that have received direct invitation to participate in the forum.
The forum, which will take place Parliament House in Canberra on October 4 and 5, will be a precursor to setting the federal government’s tax reform agenda.
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Proposed housing tax reforms don't go far enough: HIA

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The two-speed nature of the leisure property sector has been starkly revealed in NAB’s June quarterly survey of the hotel property sector. 
While overall conditions for the sector have softened, but remain positive, the outlook for CBD hotels versus those in regional markets could not be more different. 
This is reflected in NAB’s All Hotels Index (a measure of sentiment and confidence in the sector), which stands at +54 in June for CBD hotels, compared with -5 for non-CBD hotels. 
According to the 300 property market participants who took part in the survey, the capital values of CBD hotels are tipped to rise by a healthy 5.3% over the next 12 months and by 6.2% over the next two years. 
In comparison, hotel property values outside of the CBD are expected to stagnate over the next year (declining 0.2%) and to rise by just 1.6% over the next two years. 
Growth in CBD hotel values and room rates is being supported by the business travel sector and the absence of new supply in the main capital cities. 
The undersupply of CBD hotel rooms is expected to persist, with the booming resources sector driving business demand. 
And while demand from international travellers was even weaker across the sector, this was especially felt in non-CBD hotels, where demand from this source was assessed as “poor”. 
A July report by research firm STR global found Perth to be leading a nationwide revival in hotel room revenue, with rates rising 9.6% in the first six months of the year, followed by 8.1% in Brisbane and 8.4% in Sydney.
According to Bryon Merzeo, business development manager from STR Global Australia and New Zealand, while international growth has been powerful, domestic consumer stays on Tuesdays, Wednesdays and Thursdays have been “incredible”.
However, non-CBD hotels, which are not able to tap into the corporate traveller market, are facing headwinds from a tourism market suffering from the high Australian dollar and ongoing consumer caution. 
According to the NAB survey, demand from business travellers (the key market consumer segment) is rated as only “good” for non-CBD hotels compared to “very good” for CBD hotels. 
CBD hotel room rates are also increasing and are forecast to increase at far healthier rate than those outside of metropolitan regions. 
CBD room rates increased by 4.4% in the June quarter, with the strongest gains recorded in NSW (5.3%). They are tipped to rise by 5.8% over the next year and 6% over the next two years.
Outside of the CBD, hotel room rates fell by 1.2% in the June quarter (following growth of 1% in the March quarter). Over the next year non-CBD room rates are going nowhere (a rise of 0.2%) and are tipped to increase by a modest 2.3% over the next two years. 
On the key measure of revenue generated per available room (RevPar), the biggest increase occurred NSW in the June quarter with takings up 5.1%, outperforming the CBD sector as a whole, which increased by 4.7%. 
Non-CBD hotel room revenue lagged far behind growing by just 0.3% over the quarter. Revenue forecasts are modest with increases of 1.6% and 3.4% over the next two years. 
Looking ahead, CBD hotels in NSW and Western Australia are expected to see the greatest increase in revenue generated from their available rooms. 
Occupancy rates were significantly higher for CDB hotels (77%) compared with non-CBD hotels (68%) in the June quarter with average occupancy rates highest in NSW and WA (75% in both markets) and lowest in Queensland (68%). 
The diverging performance of the two hotel markets has already been revealed in the March quarter tourist accommodation figures which revealed rising occupancy rates and per night room takings in all major CBD markets, but declining occupancies and returns in many regional markets. 
These trends are expected to remain broadly unchanged over the next year, although respondents are forecasting a moderate pick-up in demand for non-CBD hotel rooms from domestic and international travellers, consistent with higher occupancy. 
Offshore investors have also signed several hotel deals this year, signalling confidence in the metro hotel market. 
In May LaSalle Investment Management snapped up the 380-room Novotel Melbourne on Collins Street in the CBD for $204 million, and US hospitality property group Host Hotels &amp; Resorts spent about $137 million for a 75% stake in the 396-room Hilton Melbourne South Wharf Hotel. 
In January, the 276-room Hilton Melbourne Airport Hotel was sold to Pan Pacific Hotels Group for $109 million in a deal negotiated by CBRE. 
CBD hotels listed for sale include the 202-room Rendezvous Adelaide at 55 Waymouth Street being sold by Jones Lang LaSalle agents James Gatland, Aaron Desange and Mark Durran with $60 million plus hopes.
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The 278-room Citigate Perth at 707 Wellington Street is up for sale by Desange and Mark Durran from Jones Lang LaSalle with expectations above $65 million.
Overall, conditions for hotel property remain positive but have softened since the March quarter survey as a result of high Australian dollar, interest rate concerns and consumer caution.
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Regional hotels booked for trouble, but CBD hotels have staying power

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Real estate agents have been warned not to dispense inaccurate information to clients about the virtues of setting up a self-managed super fund to buy an investment property.
Liz Westover, head of superannuation at the Institute of Chartered Accountants, recently received a letter in the mail from an estate agent full of what she called “technically wrong and misleading” information, “particurlarly in relation to tax measures”.
“Furthermore, the information was presented in such a way that it all sounded very straightforward,” Westover writes on her blog.
“These issues are never straightforward, and there are a range of factors that need to be given due consideration, not only before entering these borrowing arrangements but also before setting up an SMSF.”
She says investors should consider factors include costs, risks, returns, responsibilities of operating one’s own super fund, insurance and current superannuation savings.
“As we all know, SMSFs are not the best superannuation option for everyone, and they should not be set up simply as a vehicle to borrow to buy real estate.
“Borrowing can be a valuable tool within an SMSF to bolster retirement savings, but it must be used appropriately and in full knowledge of the facts and all the associated risks,” Westover says.
The warning comes as the popularity of using a SMSF to invest in property continues to grow.
A survey carried out by SMSF provider Multiport in late March 2011 found that at least 13% of the 1,400 SMSFs it administers are borrowing to invest using limited-recourse loans, and more than half (56%) of these loans are used to buy property
The average property loan among Multiport client funds is $200,000, compared with $110,000 for shares and managed investments.
In total SMSFs that Multiport surveyed hold 16% of their assets in property, nearly double the allocation in global shares.
John McIlroy, CEO of Multiport, says the higher weighting to direct property is not surprising, as direct property has become a more popular form of investment since the legislation change in 2007 that allowed SMSFs to borrow.
A survey of by Mortgage Choice revealed that one in 10 first-time investors will use their self-managed super fund to make their first investment.
Westover says the misleading information in the estate agent letter highlights the role a professional accountant play as trusted advisers on such matters.
“No doubt, many professional accountants have been approached by clients looking for advice, having been told of the benefits of borrowing within an SMSF, perhaps by a real estate agent or by other means,” she says.
For more on self-managed super funds, see our e-book 16 questions self-managed super fund trustees should ask before investing in property.
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Estate agents warned not to give dodgy SMSF advice: accountant

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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