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Following the higher-than-forecast quarterly inflation result for July (0.9% versus a forecast 0.7%), ANZ is now forecasting the Reserve Bank will lift the cash rate by 25 basis points at its August 2 meeting to 5%. While 5% is unlikely to be the peak in rates, a further tightening would be unlikely before the middle of 2012, the ANZ says.
The bank had previously forecast no further rate rises this year and even a possible rate cut.
However, it now says it is of the view that the CPI figure has “brought inflation in Australia to an uncomfortably high starting point given the robust 2012 outlook".
“This necessitates a small adjustment to the policy rate,” says ANZ chief economist Warren Hogan.
The bank says if rates are kept on hold it will be a “finely balanced decision, likely driven by international uncertainties and recent weakness in domestic data”. 
“Some members of the RBA board may well not want to hike in August. But with the RBA’s persistent focus on inflation, and the forward-looking nature of monetary policy, a small move now will likely be the RBA’s preferred action. The RBA should have capital to convince board members of the need to move given rates have been raised only once in the last 15 months,” Hogan says. 
“The most likely factor that could keep the RBA on hold in August would be a significant deterioration in the US debt situation.”
A decision to raise rates on August 2 would be followed by an extended policy of no rate rises, according to ANZ, as happened since the last rate rise in November 2010.
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Rates likely to go up next week: ANZ

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A private offshore investor has paid $395 million for 259 George Street, the 42-storey, 200-metre-high office tower in the Sydney CBD.
The building makes up 9% of the value of the Commonwealth Property Office Fund, which is managed by Colonial First State.
The sale price was negotiated at a 15.3% premium to the asset’s June 30, 2011 independent valuation of $342.5 million, a 2.9% rise on the previous year following a revaluation of the portfolio.
In 1999, the fund acquired 50% of the building for $127.5 million with a rental value a year of $5,454 per square metre. The remaining 50% interest was acquired in 2005 for $125 million.
The tower was constructed in 1983 and underwent a $115 million refurbishment in 2006, which repositioned the asset to high A-grade quality.
Suncorp, the anchor tenant, has naming rights for the concrete-and-glass building. Other tenants include Standard &amp; Poor’s, technology firm GBST and ASX-listed investment firm Argo.
Level 31 in the building is listed for lease by Ray White commercial agent Anthony Harris at a gross rent of $805 per square metre for 950 square metres of space.
Darren Steinberg, managing director of property at Colonial First State Global Asset Management described the result as a very pleasing result for fund unit holders.
Fund manager Charles Moore says the sale mitigates upcoming lease expiries along with projected capital expenditure requirements over the short to medium term.
The sale of 259 George Street follows the sale of three of the fund’s Perth-based office assets to GDI Property Group on July 12, 2011 for $152 million, close to their book value.
In June the fund reported a valuation upgrade of 2.9% covering 16 of its 29 office assets, for the year ending June 30. This lifted valuations by $68.2 million on the previous year's valuations.
Moore said at the time the revaluations confirmed the stabilisation in investment yields and the values of Australian office property.
"Despite the number of external shocks experienced in the broader market, we are encouraged by the solid transaction activity levels and expect to see positive valuation outcomes going forward," Moore said.
Settlement on 259 George Street is due on October 31.
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Sydney's Suncorp building sold for $395 million

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The sale of the Birallee Shopping Centre in Wodonga by Centro to Sydney-based investment firm Hadley Green for $11.7 million augers well for other regional shopping centres listed for sale.
The shopping centre, which has a gross lettable area of 5,686 square metres and is about a kilometre from the Wodonga town centre at 51-57 Elgin Boulevard, was sold by Colliers agent Lachlan MacGillivray.
The selling price was in line with the 30 June 2011 book value.
About 200 kilometres to the west of Wodonga, Michael Gross and Tim Darcy from Gross Waddell are selling the Deniliquin Plaza in the Riverina region of NSW by expressions of interest closing on August 17.
Offers of around $8 million are expected for the centre, which is bounded by Hardinge, Wood, Macauley streets and Hussey Lane, a commercial precinct west of Deniliquin.
It serves about 19,000 potential consumers in an agricultural region that produces rice, milk, potatoes and tomatoes.
It last sold for $6.6 million in August 2002.
Nearly three-quarters (72%) of the plaza’s $730,000 rental income comes from the Coles tenancy, which occupies 2,994 square metres – 71% of the 4,212-square-metre gross lettable area.
Coles holds a 20-year lease expiring in 2017 and pays percentage rent of 2% of gross sales for sales above $21.7 million. The lease has four renewal options of five years.
Other brand-name tenants include the Reject Shop (630 square metres), Bakers Delight (83 square metres) and Liquorland (204 square metres), plus a St George ATM. 
Leases range in length from three years to eight years. 
Hadley Green, which holds five more shopping centres in its portfolio, is forecasting an initial 9% investment yield for the Birallee Shopping Centre on the back of strong income and capital growth.
The shopping centre was jointly owned by the listed Centro Retail Trust and the CSI Fund, into which Centro-managed syndicates invested, the Australian Financial Review reported.
MacGillivray says syndicates and private purchases are “particurlarly hungry” for this type of asset due to its strong fundamentals, secure income and stable nature of tenancy profile.
The shopping centre sale follows the listing of Centro Albion Park shopping centre in Albion Park, a suburb of Wollongong in the Illawarra region of NSW by Colliers director of retail investment services NSW Heath Crampton.
The centre is part of an $83 million syndicate of three regional shopping centres Centro is looking to wind up in order to pay out investors.
Crampton, who is expecting a yield of between 8.5% and 9% for the Albion centre, expects shopping centre investment activity to pick-up significantly in the second half of the year.
This, he says is “primarily due to the introduction of several new institutional managed wholesale funds with a focus to acquire sub-regional and neighbourhood assets with a capital value of sub-$100 million”. 
“This sub-$100 million market has predominantly been limited to private investors in the last 24 months.” 
In April the Bundoora Square Shopping Centre (4,800 square metre of gross lettable area), about 15 kilometres from Melbourne, sold for $20.9 million at an equivalent market yield of about 7.4%.
In December 2010, the Findon Westside Shopping Centre (about 4,000 square metres of lettable area) in the western suburbs of Adelaide was sold for $13.2 million at an equivalent market yield of 7.74%.</body></html>

Centro Wodonga sale bodes well for regional shopping centre market

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Stockbroking firm Bell Potter has confirmed to Property Observer that it will lease two floors near the top of Aurora Place at 88 Phillip Street in the Sydney CBD.
The firm will reportedly pay gross rent in excess of $1,500 per square metre for about 3,000 square metres of office space in RBS Tower, as it is now known, setting a new record for an office leasing deal in Australia.
Bell Potter’s move to Aurora place from its existing premises at Level 33, Grosvenor Place at 225 George Street follows its merger with Southern Cross Equities in early July.
Southern Cross Equities already occupies two floors in Aurora Place.
Knight Frank is the appointed agent for the 41-storey building, which was designed by Renzo Piano and has a distinctive glass curtain wall.
Elsewhere in the building, Ray White agent Jeremy Piggin is currently offering space of 313 square metres at a gross rent of $1,460 per annum, equating to total annual rent of $456,980.
Piggin says he had a sublease listing in the building but has been unsuccessful to date in finding a tenant for the 39th floor space.
The latest report by The Australian follows an Australian Financial Review report in June that Bell Potter was set to take floors 37 and 38 in the building at a net rent in excess of $1,300 per square metre.
Also in June, executive recruitment firm Spencer Stuart paid a net rent of $1,125 for 1,200 square metres of space at 1 Macquarie Place in Sydney – the most expensive leasing deal of the quarter, according to Savills’ second-quarter Sydney office report.
During the June quarter five major leasing deals were signed with European commercial bank WestLB renewed its lease of 1,200 square metres of space at 7 Macquarie Place at a gross rent of $742 per square metre.
Aurora place, which has 49,000 square metres of net letable area, was acquired by the Korean Pension Scheme in December 2009 for $685 million.
The deal equated to just under $14,000 per square metre of net letable area at a yield of 6.7%.
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Bell Potter sets office leasing record for Sydney premises

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Western Australia will be the best-performing industrial market over the next two years, according to NAB’s June quarterly commercial property forecast. 
Respondents forecast growth in property values and rental returns in the industrial sector to exceed the industrial markets of every other state up until June 2013 due to supply constraints. 
Across a sector where negative conditions persist (only retail faces more headwinds), industrial property capital values in WA are forecast to grow by 2.5% in 2012 and 3.9% in 2013, in comparison with modest forecast national growth of 0.1% and 1.7% respectively. 
Industrial rents in WA are expected to lift by 1.1% in 2012 before doubling to 2.2% in 2013. While modest, they are significantly better than the national outlook with rents set to contract by 0.5% in 2012 and increase by only 0.8% in 2013. 
An under-supply of industrial properties relative to demand will cause WA industrial vacancies to fall to just 2.3% by 2013 from a current level of 4.5% and a national average of 6.4%. 
 <img src="/images/stories/indusrialnabjuly28.jpg">
Source: NAB
Activity in the WA market is being supported by strong state economic growth during which companies, especially in the mining and resources sectors, have expanded their industrial requirements. 
As a consequence 40% of respondents identified leasing incentives as “not at all significant” – the highest proportion of responses across all state markets. 
Savills Perth quarterly industrial update revealed few industrial sales and no new developments. The biggest sale of the quarter was a 6,600-square-metre industrial property at 4 Beach Street, Kwinana Beach, 43 kilometres south of Perth, which sold for $6.4 million at a yield of 10.5% 
Three plots of land zoned for industrial development changed hands in the second quarter of the year all located in Bibra Lake, a suburb 20 kilometres south of the Perth CBD. The biggest of these was a 6,800-square-metre plot at Phoenix Park bought for $2.2 million at $326 per square metre. 
Nationally, the June quarter survey revealed expectations of a weaker upswing, with the industrial index set to rise by 23 points by June 2012, compared with a rise of 55 points in the March quarter. 
The gloomier outlook is as a result of weaker sentiment in the manufacturing sector and broader economy. 
Overall, industrial rents are expected to decline by 0.9% in the June quarter, with vacancy rates picking up slightly in industrial markets in June as the domestic economy slows.
The impact of rental incentives in the national industrial property space is seen as “somewhat significant”, but trends remain divergent across the states. 
June quarter respondents assessed the industrial property market as mildly over-supplied, but supply is expected to tighten over the next three to five years, especially in WA.</body></html>

Industrial market strongest in WA: NAB

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As we look to what's ahead for 2012, Property Observer is republishing some of our most noteworthy stories of 2011.
 
Investors in retail property outside of the Sydney CBD face the prospect of both declining asset values and a contraction of rental growth over the next two years, according  to the NAB June quarter commercial property survey.
The 300 property market respondents surveyed by the bank forecast NSW retail property values would be down 1.6% in the June 2011 quarter and would continue to decline by 1.4% in 2012 and 0.6% in 2013.
The outlook for rents is equally bleak, with a forecasted decline in values of 1.6% in June 2011 expected to be followed by declines of 1.6% in the December 2011 quarter and falls of 1.5% and 0.6% in 2012 and 2013.
CBD retail property was identified as the best-performing property type “by some margin”, with the bulky goods sector, which includes automotive parts, whitegoods and furniture, the weakest. 
The poor outlook for NSW reflects “the expected impact of impending interest rate increases on disposable incomes already stretched by the higher cost of living in the state,” according to the report. 
More than half (54%) of respondents identified leasing incentives as “very significant” or “significant” for retail property in NSW. 
Respondents also said excess supply was most prevalent in Queensland and NSW. 
And while the national retail market is expected to be broadly balanced over the next three years, NSW is expected to “somewhat over-supplied. 
A review of the performance Sydney metropolitan retail property market in the second quarter of 2011 by CB Richard Ellis draws similar conclusions, following only a 1.6% increase in retail turnover in the first six months of 2011.
CBRE reports of a “relatively flat” retail property sector for Sydney, bar the super-prime Pitt Street Mall retail strip where vacancies have shrunk to just 0.9%.
In comparison, the vacancy rate for prime Sydney retail property remains unchanged at 5.1% while vacancies for bulky good stores are three times higher at 14.6% for prime locations and 16.5% for secondary locations.
Vacancies are also high in some of the more fashionable suburban retail strips, relative to the Sydney CBD (3.1%). On the Oxford Street thoroughfare in Paddington, the vacancy rate stands at 6.7%, and it is at 7.1% in the Double Bay precinct.
The vacancy rate on the more affordable King Street strip in Newtown in Sydney’s inner west is at just 2.6%.
About 1.35 million square metres of new shopping centre retail space is set to come onto the market in regional areas outside the Sydney metro area by 2014. Projects to be completed in 2012 include Stockland neighbourhood shopping centres in Merrylands and Glenrose.
Shopping centre extensions are also underway at the Macquarie Centre in Ryde, Westfield Miranda, Stockland Shellharbour and the Warringah mall, which will add 123,00 square metres of floor space to regional retail shopping floor space.
The poor outlook for bulky goods is reflected in all seven of the bulky good projects currently underway in NSW, being constructed for retailers with no speculative developments. These include four Bunnings outlets in outer western Sydney, a 39,000-square-metre IKEA in Tempe and a Costco outlet in Auburn.
NSW’s poor showing reflects the continuing struggles of the retail sector as whole, with the sector expected to remain the weakest-performing commercial property market “by some margin” over the next year with conditions remaining “very soft,” according to NAB.
For a sector as a whole, the NAB Retail Property Index fell by 28 points in June following a drop of 23 points in March.
It remains the weakest performer in the industrial property space as retailers continue to suffer from low retail sales turnover and weak consumer confidence. 
Nationwide capital value expectations for retail property improved marginally in June, with values down -1.8%, compared with a -1.9% fall in March. Capital values were negative in all other states, except WA where they were flat. 
WA is the only state where capital values are forecast to rise (growth revised down from 2.8% to 1.4%) over the year to June 2012.
Looking ahead to June 2013, Queensland is expected to match Western Australia, (currently the strongest performing retail property market) with growth of 1.8% in the value of retail properties. 
Respondents again identified the CBD area as the most favoured location for retail property with bulky goods again considered to be the worst category of retail property in all states.
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Apart from Pitt Street Mall, NSW retail outlook bleak: NAB

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Westpac, the only major lender to go out on a limb by suggesting the RBA will start cutting rates this year, has questioned the manner in which the latest CPI figure was calculated.
The June quarter CPI figure came in above Westpac and other economists’ expectations at 0.9%.
Market expectations were for 0.7% quarterly rise.
In a note following the release of the CPI figure, Westpac warns that “both headline and core numbers are heavily influenced by another questionable upside surprise on the heavily weighted deposit and loan facilities sub-component”.
Westpac had expected a fall in this sub-component of 0.3%.
Instead it rose another 2.1% in the June quarter to be up 5.4% for the year.
This followed a 4.6% spike in the March quarter that Westpac says “appeared to be a lagged impact from mortgage interest rate changes in late 2010 but looked overly-big at the time”. “This was the biggest upside surprise versus our own forecasts and alone contributed about 0.1% to the June headline result,” the bank says.
It goes on to say that it notes “with relief that the ABS plans to change this troublesome sub-component from the CPI from the September quarter – dropping the problematic 'indirect' estimate of costs for one based on 'direct' charges”. Other upside quarterly surprises in June were seen for food (+1.4% versus 0.7% expected by Westpac), clothing and footwear (+2.5% versus an expected fall of 0.5%), household contents and services (+1.5% versus 0.6%) and communications (+0.4% versus an expected flat result).
These were partially offset by downside surprises on housing costs (0.4% versus Westpac expectations of 0.7%) and health (+2% versus 2.6% expected). According to Westpac, the four forces at work in the June quarter CPI result are the surprise pick-up in discretionary items; the ongoing impact from food price pressures; clear moderation in pressures in housing costs and the issue around deposit &amp; loan facilities.
It expects rates to remain on hold in August.
 
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Isolated Westpac questions CPI calculation method

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Investors in offices will benefit from strong capital growth and higher rental increases relative to other commercial assets over the next two years, according to NAB’s June quarterly commercial property survey.
For the June quarter, the offices sector was the second-strongest performing commercial sector after hotels.
However, offices are forecast to overtake hotels as the best-performing commercial property sector over this two-year period.
Capital value are tipped to rise by 1.6% by June 2012 and 3.5% by June 2013, according to the 300 respondents comprising real estate agents, property developers, investors, valuers and fund managers.
The office sector also leads rental growth expectations, with gross rents expected to rise 0.8% in 2011, 2.3% in 2012 and by 3.8% in 2013.
Office expectations have however been revised down from the March quarter survey when 2.8% capital growth was forecast by March 2012 and 4.3% forecast by March 2013.
The CBD remains the best-performing location for office property, especially in Queensland.
Overall office markets conditions are expected to improve in all states led by WA where renewed business expansion plans, especially in mining-related companies, will drive demand for office space.
A survey carried out by Macquarie Bank and the Property Council of Australia forecast Perth prime office rents to rise to $859 per square metre by January 2012, the highest nationally, with yields of 7.6%.
NAB expects that the continual recovery in financial and business services sectors will lead the recovery in NSW while Queensland’s office market will benefit as the mining boom begin flowing through the economy.
Rental expectations are strongest in WA and weakest in Queensland where vacancies are highest. Incentives remain a key feature of the office property leasing market in all states bar WA.
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/commercialnabjuly271large.gif"><img src="/images/stories/commercialnabjuly271.jpg"></a>
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Office vacancy rates are expected to fall in all markets over the next one to two years as tenant demand strengthens.
The national office vacancy rate is expected to fall to 6.1% by June 2013 from a current level of 7.4% with vacancies forecast to be lowest in WA (4.7%) and highest in Queensland (7.4%).
According to NAB, supply in the office market is currently assessed as neutral, but is expected to tighten in the next three to five years.
Overall the NAB Commercial Property Index fell to -5 points in June compared to a rise of six points in March with all sectors reporting weaker conditions.
Conditions for hotels (up 27 points) and office (up 11 points) property remain positive, but negative conditions persist in the retail (down 28 points) and industrial (17 points) sectors.
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Offices to outperform other commercial sectors: NAB

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Pressure will grow on the RBA to consider an interest rate increase following news the consumer price index rose 0.9% in the June quarter, according to the Australian Bureau of Statistics.
The latest quarterly inflation data takes the annual rate to 3.6%, higher than the 3.4% predicted by economists.
Westpac had predicted a quarterly inflation figure of 0.7%.
The RBA flagged the June inflation figure as one of the key determinants of future interest rate policy.
Commenting on the June CPI figure, ANZ economists Warren Hogan, Katie Dean and Riki Polygenis, said in normal circumstances, the RBA would respond to such a number with an interest rate rise at its next meeting.
"However, given heightened global uncertainty and weak domestic confidence (consumer and business), we do not think the RBA will respond immediately," the economists said.
Tim Waterer, senior FX dealer at CMC Markets, said with inflationary pressures clearly present, “an RBA rate hike before the year ends is now well and truly back on the agenda”.
“Recent talk of possible rate cuts seems but a distant memory as evidenced by the AUD/USD's swift ascent through $1.105,” he adds. The RBA will next make a decision on interest rates on August 2.
The higher than expected inflation number saw the Australian dollar surge past $1.10 to $1.1065 a post-float record for the currency, rising by almost 1 cent.
It was recently trading at $1.104.
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Higher-than-expected inflation figures could trigger rates rise

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Sales of office buildings in the Melbourne CBD are expected to soar past the $2 billion mark in 2011, according to Nick Rathgeber, director of institutional investment services at Colliers.
Rathgeber says investor demand continues to outweigh stock supply in what he calls “Australia’s hottest office market”.
For the first six months of the year seven office buildings have sold for a combined $569 million.
Based on the sales to date, the average sale price stands at $81 million, below 2010 average of $89 million.
The 2010 figure was boosted by the sale of 717 Bourke Street for $242 million and the Commonwealth Property Office Fund’s acquisition of the Grocon portfolio for $581 million. Sales of Melbourne office buildings reach $1.76 billion in 2010.
Rathgeber expects the Melbourne CBD to continue to perform strongly into 2012 and beyond.
“The reasons for Melbourne being the hottest office market in Australia will not change overnight. The fundamentals of our economy are very healthy and the medium-term forecast for office rental growth in the CBD is very strong,” he says.
“It will take years rather than months for other capital cities to offer a superior investment profile to Melbourne.”
According to Jones Lang LaSalle the Melbourne CBD vacancy rate has fallen to 2% from a 10-year average of 3.2%. The national CBD vacancy rate sits at 4.1%.
CBD office buildings listed for sale include 477 Bourke Street, 661 Bourke Street, 601 Bourke and 565 Bourke Street, all being sold by CBRE agents Mark Coster and Martin O’Sullivan by expressions of interest.
Coster told Property Observer he expects to sell all of them.
Price expectations are about $72 million for 477 Bourke Street, which has 12,000 square metres of net lettable area and annual income $5.7 million. The building will be sold by expressions of interest on August 11.
Defence Plaza at 661 Bourke Street (annual income of $7.5 million, 19,000 square metres) is expected to sell for about $108 million on July 28.
Prices above $30 million are expected for 601 Bourke Street, which Coster and O’Sullivan are selling in conjunction with Robert Anderson and James Kaufman from Jones Lang LaSalle. The building comprises 8,000 square metres of net lettable area.
In June Brookfield Prime Property Fund’s acquired 50% of 111 Bourke Street for $120 million from the Motor Trades Association at a yield of 7.17% for 24,000 square metres of prime office space. The MTA acquired it in October 2008 for $121 million.
The other two recent noteworthy sales include 469 La Trobe Street, comprising 20,000 square metres of office space, acquired by CIMB TrustCapital Singapore for $84 million.
The building at 595 Collins Street holds the title of highest value sale for the year to date, sold by Investa Property Group for $130 million to Korean National Pension Service in April.
Colliers’ second-quarter Melbourne office report records more than $60 million worth of sales in fringe and suburban markets, with leasing activity dominated by deals on St Kilda Road.
The biggest leasing CBD leasing deal of the quarter was the Commonwealth Bank pre-committing to leasing 8,500 square metres of office space at 357 Collins Street at a net rent of $385 per square metre.
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Melbourne office sales to reach $2 billion in 2011: Colliers

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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