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The Eastlakes apartment market, located six kilometres from the Sydney CBD and just a 15-minute drive from Sydney Domestic Airport, has been identified by RP Data as one Australia’s best-value suburbs.
Apartments make up more than two-thirds of the market (69%), with the average median price of $376,500 significantly more affordable than nearby Maroubra ($570,000), Kensington ($540,000) and Botany Bay ($500,000).
<img src="/images/stories/hotspot-eastlake-chart.png">
Sales prices for Eastlakes units have increased by 8% over the past year, according to RP Data, compared to more modest gains in Maroubra and a small drop in values in Kensington.
While Kensington and neighbouring Zetland have seen significant new apartment developments, such as Meriton’s Victoria Square project, there are no new apartment developments currently under way in Eastlakes.
Richard Movsessian from Century21 Coastline Properties is currently selling a 2-bedroom ground floor apartment at 17 Mascot Drive (below) at an advertised price of $397,000.
<img src="/images/stories/hotspot-eastlake1-cropped.png">
The property is advertised as being close to Eastlake's shopping centre, schools, cafes and transport to the CBD.
He tells Property Observer there was a lot of investor interest in Eastlakes just prior to the end of the financial year, but it had recently slowed down.
“First home buyers are back in the market. They are a bit more patient and are only buying a property if it is exactly what they want and [it] ticks every box,” he says.
“Properties priced fairly are selling well.
“Houses are selling slightly above the reserve price at auction while apartments are selling slightly under. There’s more competition for houses than for units,” he says.
Movsessian says the attractions of the suburb are its location – close to the University of NSW and the city – and its multicultural make-up.
According to RP Data, nearly 60% of Eastlake residents were born outside Australia.
Tass Evgeniou from Laing &amp; Simmons Kingsford is selling a two-bedroom unit at 6/6 Barber Avenue (below) aimed at first home buyers, renovators and investors, with a price tag of $370,000-plus.
<img src="/images/stories/hotspot-eastlake2-cropped.png">
He describes the Eastlakes market as very strong, and a good starting point for the eastern suburbs area.
“It’s a good location for investors and first home buyers because prices are more reasonable and still affordable.
“The price range and yields are also attractive,” he says.
Eastlakes is serviced by bus routes providing relatively easy access to the CBD while the Eastern Distributor motorway connects private vehicles to the city.
According to Evgeniou, apartments are selling close to the asking price – with “a little bit of negotiation”.
Eastlakes is already popular with investors, boasting an extremely strong rental market with two-thirds of units rented – more than the rate across Sydney (63%).
According to RP Data, many of the low-set brick complexes built more than 20 years ago which dominate the market present internal renovation potential, which can add value.
“They are also appealing due to the fact they have limited on-site amenity, which typically results in lower body corporate fees,” the RP Data/St George National Hotspots report says.
Phil Manning, senior property adviser at valuer WBP, says Eastlakes’ growth outlook is positive and on par with other suburbs in the region.
Mr Manning says a key attribute is its close proximity to parks and recreational facilities, making it popular with young families.
“A positive driver for Eastlake is the developing ‘food’ precinct in nearby Alexandria, which will provide attractive amenity for the local area,” he says.
“However, the finite number of unit housing in Eastlake could prove an inhibiting factor for the suburb in future as growing affordability issues direct people into smaller, more affordable dwellings. However, this is likely to be a positive for growth in existing unit stock.”
Besides the location and transport benefits, Mr Manning says Eastlakes also offers access to primary and secondary schools both in the suburb and surrounding areas.
According to the RP Data/St.George report, the most desirable areas are likely to be near public transport and shopping amenities.
“Complexes located adjacent to the large parklands are also likely to experience stronger demand,” the report says.
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Price and proximity make Eastlakes a hotspot

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Managers of unlisted property trusts will need to meet “concrete standards” on six areas of potential risk for retail investors, under a new ASIC proposal.
ASIC has proposed for unlisted property trusts to begin disclosing against the benchmarks and amended disclosure principles on July 1 next year.
The proposals follow a review of disclosure documents from responsible entities in the $28-billion-dollar unlisted property trust sector.
It found a number of cases where “inconsistent levels of disclosure may have impaired an investor’s ability to compare products”.
As a result, ASIC proposes extending its benchmark disclosure model used for other products to unlisted property schemes across six areas. They are:
<ul>
<li>gearing policy: addresses a scheme’s policy on gearing at an individual asset level</li>
</ul>
<ul>
<li>interest cover policy: addresses a scheme’s policy on the level of interest cover at an individual asset level</li>
</ul>
<ul>
<li>interest capitalisation: addresses whether the interest expense of a scheme is capitalised</li>
</ul>
<ul>
<li>valuation policy: addresses the way valuations are carried out by a responsible entity in relation to a scheme’s assets</li>
</ul>
<ul>
<li>related party transactions: addresses a responsible entity’s policy on related party transactions</li>
</ul>
<ul>
<li>distribution practices: addresses a scheme’s practices in relation to paying distributions from realised income.</li>
</ul>
Under the proposal, ASIC wants managers of trusts to discuss the six benchmarks in the product disclosure statement (PDS) in a manner “that allows prospective retail investors to make an informed decision about whether to invest”.
Furthermore, trust managers will need to notify investors of any material changes to the information a responsible entity has disclosed against a benchmark.
The benchmarks would also need to be supported by advertising material.
If a trust is not meeting the benchmark, it will need to address it on an ‘if not, why not’ basis – meaning explaining the alternative measures it has in place to mitigate the concern underlying the benchmark.
“Failing to meet one or more of these benchmarks does not mean a product provided by a particular responsible entity necessarily represents a poor investment,” the ASIC proposal says.
ASIC chairman Greg Medcraft says the proposals are aimed at improving the level, comparability and consistency of disclosure provided to retail investors.
“Our experience indicates that investors need better quality and relevant disclosure, presented in a way best suited to investor understanding,” Mr Medcraft said. “PDSs must be worded and presented in a clear, concise and effective manner to help retail investors assess an offer and make informed investment decisions.”
The proposals also clarify the eight disclosure principles in the current regulatory guide, and provide further guidance on how responsible entities should apply the principles.
Comments on the consultation are due by September 6.
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ASIC seeks better disclosure from unlisted property trusts

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Survey results compiled by Mortgage Choice suggest brokers could lose a chunk of business if they demand a fee for service.
According to the mortgage broking franchise, 61% of the 1,050 respondents said they would not pay a fee for using the services of a mortgage broker.
A quarter of those surveyed said they would not even consider paying a fee that was fully refundable upon the purchase settlement.
As a result of its own survey, Mortgage Choice has delayed introducing a fee until at least the next financial year.
Fee-for-service has become one of the most hotly debated topics in the mortgage broking industry, following the major banks opting to cut commissions in the wake of the GFC.
Brokers have traditionally provided their services for free, in return for being paid by lenders in upfront and trail commissions.
Commenting on the results of the survey, Mortgage Choice CEO Michael Russell said: “With most brokers currently not charging customers a fee for service, the debate is raising a lot of questions around what the industry’s next move could and should be and how lenders will react if fee for service came into play.”
“It is no surprise the survey respondents leaned very heavily towards not paying upfront for assistance that is currently free. Although more were willing to pay a refundable fee, the findings still left almost one in four refusing to even contemplate reaching into their wallet.
“Brokers need to carefully think through whether our individual businesses and the industry as a whole are in a strong enough position to forego at least one quarter of new business.
“Will consumers who are insufficiently educated as to a broker’s value simply divert their enquiry direct to lenders? Can service fees recoup such a significant loss of volume? How will lenders respond?”
Russell says the survey validated that the industry is not yet mature enough to introduce fees without penalising itself considerably.
“Based on this, other consumer research, conversations with our brokers and the condition of today’s housing finance market, Mortgage Choice is postponing any action on the fee for service front until at least the next financial year,” Russell says.
 
“We are taking into serious consideration our findings and will not move towards charging any fee if it puts at risk the business of 24% of potential customers.
Other key survey findings:
<ul>
<li>Of the 39% of respondents who said they would pay a fee for service, 50% would pay between $1 and $250, 32% would pay between $251 and $500, 8% would pay between $501 and $750 and the remaining 10% would pay more than $750.</li>
<li>Of the 76% who would contemplate paying a fee that was fully refundable upon the property purchase settlement, 35% would pay between $1 and $250, 36% would pay between $251 and $500, 11% would pay between $501 and $750 and 18% would pay more than $750. </li>
</ul>
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Consumers reluctant to pay for mortgage broking services

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Billionaire UK property developer Nick Candy is seeking an Australian partner for a super-luxury apartment development, with Melbourne looking the most likely location.
Candy has already looked at a development site in Sydney and met with developer Lend Lease six months ago, but no deal eventuated.
However, recent comments from Candy suggest he could now be eyeing Melbourne as a favoured location, telling the AFR he was “very impressed” when he visited the city two years ago.
“I was very impressed by the quality of the restaurants, the quality of the hotels. In some respects, I would say that Melbourne is even more international than Sydney,” Candy said.
Any development would most likely eclipse Melbourne’s most expensive apartment complexes, the Melburnian in St Kilda, where a 465-square metre-penthouse changed hands for $15 million (or $32,000 per square metre) in 2009 and the Salta Properties development at 150 Clarendon Street, in East Melbourne.
"[The Salta Properties development] is the most expensive apartment in recent memory," says Andrew Leoncelli CBRE’s director of residential Projects Victoria. "The Salta development comprised of 86 apartments which had an average sale price of $5 million an apartment with five apartments sold for well over $10 million," he tells Property Observer. 
Commenting on a possible Candy-led development, Leoncelli says "sophistication and luxury are part of everyday Melbourne life and a quality development that embodied this lifestyle would be well received".
Nick Candy is the chief executive of interior designer Candy &amp; Candy while his brother, Christian is CEO of private developer CPC Group.
One Hyde Park in Knightsbridge, Central London, which has been labelled the world’s most expensive apartment complex has been developed by Project Grande (Guernsey) Limited  - a joint venture partnership between CPC Group and the Prime Minister of Qatar.
Floor space at One Hyde Park is selling for $96,000 per square metre.
Apartment sales to date total £1.1 billion ($1.64 billion) with buyers hailing from Russia, Asia, Europe and the Middle East.
One Hyde Park took four years to build at a cost of £1.1 billion. Glazing and cladding alone cost £100 million. At the peak of its development, 2,500 worked on site.
It is located on one hectare of land at 100 Knightsbridge Road, with Hyde Park directly behind it, and just a short walk from Harrods and Harvey Nichols.
It consists of 86 apartments within four diamond-shaped pavilions, including four penthouses.
The apartments vary in size from 9,500 square feet over a single floor, with penthouses up to 30,000 square feet.
It houses the Mandarin Oriental hotel – the first of the chain to be opened in Europe – and retail tenants include Rolex, McLaren Automotive and Abu Dhabi Islamic Bank.
Following the apartment sales, loans from three banks to finance the development have been paid off.
The Candy brothers used a £6,000 loan from their grandmother to start renovating flats in London 15 years ago.
They sold their first £1 million apartment in Knightsbridge in the late 1990s.
Not all developments have yielded success. Last year financing for a $933 million project in Beverly Hills fell through, with CPC Group forced to sell the site at a loss of $300 million.
Candy is currently in Sydney for the movie debut of girlfriend and former Neighbours star Holly Valance.
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UK developer eyes off Australia for super-luxury apartments site

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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.
 
Brisbane’s serviced apartment market is mounting an exceptionally strong recovery, in direct contrast to dwindling numbers on the Gold Coast and Sunshine Coast.
Serviced apartment occupancy ratios in Brisbane soared during the March quarter of 2011, rising 65% in January 2011 to 83%, according to ABS data.
Guests spent just over 123,000 nights staying in the city’s 4,800 rooms in March 2011, compared with about 93,000 in January.
While guests are staying for slightly shorter periods (three days in March, down from 3.5 days in January), average takings per room have increased from $147 a night to $172.
The figures suggest the Brisbane market may present opportunities for investors.
Earlier this year, property analyst Michael Matusik suggested investors look at the serviced apartments sector ahead of the lacklustre residential sector.
Matusik calls serviced apartments “residential assets wrapped up in a commercial lease” and says most of the 900-plus serviced apartment projects are taking place in Queensland.
According to the CBRE Hotels Traveller Accommodation Property Database, Queensland makes up nearly half (47.6%) of Australia’s serviced apartment market.
Brisbane is one of the epicentres of growth, with the city accounting for nearly a quarter of all serviced apartment accommodation in the state.
“Serviced apartment products have several advantages over traditional residential investments,” Matusik says.
“Apart from offering pre-tax returns between 1% and 2% higher than standard residential properties, serviced apartments also offer a commercial lease arrangement.”
Furthermore, Matusik says the number of people who stayed in an Australian serviced apartment last year increased to 2.3 million, from just one million a decade ago.
The recovery in Brisbane serviced apartments’ mirrors a strong comeback in the corresponding hotel sector on the back of strong corporate demand.
According to CBRE research, serviced apartments in CBD locations are favoured by corporate travellers while those in regional centres are used predominantly by leisure travellers.
CBRE Hotels senior director for Queensland, Wayne Bunz, said in June the strength of the Brisbane market was spurring strong demand from hotel investors and could push forward a number of major development projects.
Gold Coast languishes
In contrast, the Gold Coast apartment market is starting to wear the basket-case label analysts have placed around its neck.
In the space of three months, occupancy rates have plummeted by 20%, falling from 78% in January to 58% in March, while the revenue generated per night’s accommodation fell equally dramatically – down from $165 to $129.
It’s a similar story on the Sunshine Coast, where serviced apartment blocks are less than half full (48%) compared with 61% in January 2011 and 70% in January 2010.
Serviced apartments currently up for sale on the Sunshine Coast include the 37-apartment Mirage Alexandra Headland at 6 Mari Street, up for sale for $2.9 million by Glenn Millar from Resort Brokers.
Millar is also selling a 49-apartment complex at Coolum Beach on the Sunshine Coast for $2.85 million. Further up the coast, the North Queensland market is faring better, with occupancy ratios holding steady at 65% in March compared to 66% in January.
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Brisbane serviced apartments fill up, while coast empties out

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The country’s peak insurance and actuarial bodies have called for better mapping of flood-prone areas and a focus on ways to mitigate flood risk as better ways to price residential flood insurance policies.
The calls come just days before the July 14 deadline for submissions to the government’s National Disaster Insurance Review (NDIR).
In its submission, the Insurance Council of Australia (ICA) will push for more government and local council funding to implement risk-mitigation strategies.
As an example of a successful strategy, the ICA points to a three-kilometre long, 11-metre high levy wall built by the Lismore City Council along the banks of Wilsons River in 2005. Costing $19 million, it was jointly funded by federal, state and local governments.
According to ICA chief executive Robert Whelan, the wall saved Lismore an estimated $15 million in damages from floods in January this year.
“Mitigation has taken a back seat because it's the hardest and most difficult thing to implement and it will ultimately be expensive. But it's also the most important,” Whelan said at a July 6 seminar in response to NDIR proposals.
In June, Brisbane architect Dion Seminara designed the <a href="https://www.propertyobserver.com.au/residential/flood-resistant-house-can-keep-high-and-dry/2011062750625">winning entry</a> for the LJ Hooker Flood Home Design Competition – a house built for less than $200,000 and raised above the ground to allow the water to flow through.
The Institute of Actuaries of Australia (IAA) has called for better flood mapping data for flood-prone areas in addition to state-funded mitigation programs.
“Insurance is not the answer to this – it doesn’t provide a long-term solution to the problems created by natural disasters,” said Daniel Smith, convener of the IAA’s National Disaster Committee at the same seminar.
Risk mitigation is a key tenant of the National Disaster Insurance Review’s guiding principles, announced by assistant treasurer Bill Shorten on March 4, 2011. The review is headed by former APRA board member John Townbridge.
“Risk mitigation by individuals and governments is a key objective. The context is clear: there need to be incentives on all parties to manage, limit or mitigate their risks. “Also it is evident that affordability of insurance is a function of the quality and effectiveness of risk mitigation,” Townbridge said in a speech to the IAA Biennial Convention in April.
The other guiding principles of the review are that government intervention in insurance markets is justifiable only where affordable insurance is not available and that individuals and businesses should be encouraged to insure themselves.
The review will also examine whether a relationship exists between disaster mitigation measures and the availability and affordability of insurance and consider whether it would be worthwhile to establish a natural disaster fund specifically to support the rebuilding of public infrastructure following a disaster.
The review was instigated in the wake of the Queensland and Victoria floods, when numerous flood victims did not have enough cover, or had no cover at all.
The floods also resulted in a far higher proportion of insurance disputes than any other natural disaster being referred to the Financial Ombudsman Service.
The review panel will provide a final report setting out its recommendations to the Assistant Treasurer by the end of September.
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Insurers urge government to invest in flood risk mitigation

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Demand for housing finance from owner-occupiers in Queensland increased by 1.6% to 8,607 commitments in May, according to latest ABS figures.
The increase is below the national average of 4.4% and well below the increase of 7% (revised up from 6.2%) recorded in April.
After underperforming for much of the past year, SA housing finance bounced back in May, rising 8.2% in May.
Owner-occupier mortgage commitment gains were recorded in WA (3.6%), Victoria (2.6%) and NSW (2.2%).
The modest increase for the Sunshine State leaves it 12% below its end 2010 level.
According to Westpac economist Julie Doel, the May outcome for Queensland suggests the post-flood recovery will be protracted.
Across Australia, mortgage finance was arranged for 49,437 owner-occupier dwellings in May 2011 with a combined value, excluding alterations and additions of just under $20.5 billion – an increase of 2.9%.
Doel says the May outcome is in line with expectations. Westpac had forecast 5% growth in owner-occupier mortgages compared with market estimates of 4.5%. It follows a gain of 4.6% in April.
However, Doel says excluding refinancing activity, housing finance to owner-occupiers rose by just 1.1% in May, down from April's 3.0% gain.
“Despite the April/May gains, the level of housing finance remains relatively low, circa that seen in the second half of the 1990s,” she says.
The value of fixed investment loans increased by 4.4% to $6.3 billion.
The number of loans for the construction or purchase of a new dwelling rose by 5.7% in May on top of the 3.3% rise experienced in April.
“Hopefully new home lending is finally dragging itself off the canvas, although we need much more than May’s improvement to lift us from what is a chronically low level of new home lending,” says HIA senior economist, Andrew Harvey.
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Queensland demand for mortgages slows

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Melbourne house prices will not recover in 2011 despite a recent improvement in buyer confidence, according to WBP Property Group.
According to the company’s CEO Greville Pabst, an increasing number of passed-in properties have sold in recent weeks after “tough post-auction negotiations”.
Statistics compiled by RP Data reveal that auction clearance rates in Melbourne improved to 55.1% for the week ending July 3, compared with 52.6% for the previous week.
RP Data recorded Melbourne auction clearance rates at 51.3% in mid-July.
Clearance rates are still well down on the year to date, which according the Real Estate Institute of Victoria, stands at 60%.
While taking note of the recent improved conditions, Pabst remains bearish on Melbourne house prices for the remainder of the year.
“There appears to be some early evidence that property values are currently in the lower trough. “However, while I don’t expect values to fall considerably further, it is unlikely that Melbourne will see any significant positive change in values in 2011,” Pabst says.
According to Property Observer’s Property Clock https://www.propertyobserver.com.au/ebook-where-is-your-market-on-the-property-clock the Melbourne market has some way to go before bottoming out.
Melbourne houses currently sit at 2.25 on the clock and units at 1.50, with 6 o’clock indicating the bottom of the market.
SQM Research managing director Louis Christopher is forecasting a 5% decline in Melbourne house and unit prices this year.
Hotspotting.com.au director Terry Ryder forecasts a minor decline due to a strong economy and continued population growth but has particular concerns for Melbourne inner-city apartments due to a large number of construction projects in the CBD, Docklands and Southbank markets.
For the year to May 2011, Melbourne house and unit median prices have fallen 3.6%, according to RP Data, compared with a national capital city decline of 2.7%.
Melbourne rental yields currently sit at 3.6% for houses and 4.2% for units. The national median yield for capital cities is 4.2% for houses and 5% for units.
Areas which have benefited from a spike in buyer demand include Melbourne’s inner-east, where a week ago clearance rates for units reached 90%.
However, Pabst says buyers in the east remain selective about which suburbs they favour as well as streets and property types.
“Buyers looking in the inner suburbs are in pursuit of lifestyle. They want to be close to the CBD and employment with good access to cafes, restaurants, shopping and recreational facilities; and they’re willing to pay for it,” he says
In recent weeks, the bayside suburb of St Kilda has seen mixed results as buyers vie for only a select few of the many properties on offer in the area.
Despite the overall outlook showing limited potential, Pabst says there are good opportunities for shrewd buyers to secure quality assets at good value.
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Melbourne prices to remain in the red in 2011: WBP

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Westpac is forecasting November 1 as the likely date for the RBA to next push up the cash rate.
According to the bank’s senior economist, Andrew Hanlan, a November rate rise is dependent on “an improvement in consumer spending and more clarity on the situation in Europe”.
“We anticipate greater momentum in the domestic economy as we head into 2012,” Hanlan says in Westpac’s July Market Insights report.
“By then, the disruptions from the floods and cyclones of early this year will have faded and the mining investment upswing will be gaining momentum and greater breadth, as construction on a number of new projects commences.”
Westpac firming up on November as the most likely date for a rate rise follows the ANZ forecasting no rate rise at all until February 2012.
In its July quarterly outlook, released last week, St George says “there is now a growing risk that no tightening will be needed this year”.
In its June 2011 report, Westpac chief economist Bill Evans said the bank still favoured a hike in the second half of 2011, with November more likely than August. In May 2011, Westpac had forecast a rate rise in September.
But following the July decision and accompanying RBA statement, Hanlan says the bank’s previous hawkish sentiment on rates has now moderated and suggests that, based on current information, there is no urgency to move rates.
“The strange thing is that we were very surprised when the bank suddenly adopted their hawkish tone during May as we judged that the case for a rate hike had not been made,” he says.
The 2011 second quarter inflation update, due to be released on July 27, is expected to be the next trigger as to whether the RBA adjusts rates upwards in August.
“We’re forecasting quarterly core CPI to moderate from 0.9% to 0.7%, an outcome that should extend the rate pause. “Given current domestic and global developments, the board is likely to need to see another 0.9% rise for it consider an immediate move on rates at the August meeting,” Hanlan says.
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Westpac firms on Cup day rate rise

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The renter-investor market looks to set to nearly double in size over the next two years, according to a survey of first-time investors carried out by Mortgage Choice.
Out of 1,060 respondents who plan to buy their first investment property over the next two years, 19% will be making their first home purchase.
Earlier this year, Terry Burke, professor of housing studies at Swinburne University, estimated 11% of all residential properties are purchased by people who rent their own homes.
The renter-investor market is strongest in Sydney, where 29% of respondents say buying an investment property will be their first home purchase, followed closely by Queensland’s Sunshine Coast (28%) and Melbourne (25%).
Investors are evenly split as to where they plan to buy their first property, with Queensland (22%), followed by Victoria (20%), South Australia (18.4%), NSW (18%) and WA (18%).
While the majority of investors plan to buy in the metropolitan region or state they live in, more than one in 10 (12.5%) Victorian investors plan to buy their first property in Queensland and a third of Northern Territory investors also favour the Sunshine state over their own backyard.
Mortgage Choice spokesperson Kristy Sheppard says the survey revealed that first-time property investors are “logical, well-planned, long-term thinkers who were determined, careful researchers and aware of their limitations”.
“This maybe why so many are buying for investment purposes before becoming a home owner,” she says.
According to Mortgage Choice, 84% of first-time investors already knew how much of an interest rate buffer they were going to factor into their repayment budget, and only 2% are not putting in a buffer.
Furthermore, 47% are looking to hold onto the property for 10 years or longer and 43% are looking at five to 10 years.”
Smartline Personal Mortgage Advisors has also noted a growing number of renter-investors, driven by a desire to live nearer to suburbs that suit their lifestyle and nearer to their workplaces.
Managing director Chris Acret says there are also financial incentives: if properties are held for longer, investors can draw on the equity to fund a home or additional investment properties and avoid paying selling costs and capital gains tax.
“There are also a range of options available to minimise cashflow shortfalls when owning an investment property, such as making interest-only payments, maintaining depreciation schedules, conducting regular rent reviews, and having tax adjustments paid back to you monthly,” he says.
Other key results from the Mortgage Choice survey are:
<ul>
<li>44% of first-time investors are not concerned by falling property prices and 40% are only a little bothered</li>
<li>23% will purchase alone, 69% will buy with a partner and 5% will buy with friends</li>
<li>The most common finance strategy is borrowing while using equity in their home as security</li>
<li>31% will use a mortgage broker for the purchase and 48% might use a broker</li>
<li>69% will make, or are already making, lifestyle sacrifices in order to buy</li>
<li>Favourite property type is a small house of one to three bedrooms</li>
<li>Top two property features were tenant demand in the area and right suburb and street.</li>
</ul>
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Renter-investor numbers rise to one in five: survey

Just a week after filing plans for the final stage of its major Keira Place masterplan, <a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> has unveiled another significant housing proposal in Wollongong, this time targeting a prominent site opposite North Wollongong Station.

The developer has lodged a State Significant Development Application for a 38-storey mixed-use tower at <a href="https://www.apartments.com.au/new-apartments/4-4a-flinders-street-north-wollongong-nsw-2500">4-4A Flinders Street</a>, around one kilometre north of the <a href="https://www.apartments.com.au/new-apartments/keira-place-wollongong-120-122-smith-street-wollongong-nsw-2500">Keira Place precinct</a> currently taking shape on the edge of the CBD.

<img alt="First look: Urban Property Group plans 38-storey North Wollongong tower as Keira Place expansion gathers pace" data-entity-type="file" data-entity-uuid="2b6428f1-6405-4038-8476-897de440e90d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/flinders%20podium.png?VersionId=QLqEvK0OuCEwRC47oHNftrw2B1YqaHF8" />

Designed by Studio.SC, the proposal comprises a 38-storey mixed-use development containing 303 apartments, including 45 affordable housing units, alongside 174 co-living residences. The scheme also includes ground-floor retail space, extensive landscaping and public domain improvements.

Studio.SC noted in the proposal it "outlines a vision for a landmark transit-oriented mixed-use development centred around North Wollongong Station, designed to support the city’s future growth while responding to the NSW Government’s housing and planning reforms."

The architecture firm said the proposal responds to the opportunities and constraints shaping future growth within the 400-metre catchment of the station and represents "a coordinated and future-focused approach to urban intensification, contributing to the long-term evolution of North Wollongong as a connected, walkable and high-density station precinct."

The site occupies a strategic corner bounded by Flinders Street, Station Street, Stafford Street and the Princes Highway, directly opposite North Wollongong Station.

<img alt="First look: Urban Property Group plans 38-storey North Wollongong tower as Keira Place expansion gathers pace" data-entity-type="file" data-entity-uuid="7863adad-1f71-4022-b850-f44b252738fd" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/flinders%20podium%20a.png?VersionId=WsU7av0g8_8R2tGHWxgHeFSlhu7yeY1V" />

The proposal follows Urban Property Group's recent submission for the second and final stage of Keira Place, which would deliver a further three buildings comprising 657 homes opposite Beaton Park. It builds on the first stage, which features 150 apartments across two towers and recently commenced construction.

Urban Property Group CEO Patrick Elias said breaking ground on the first stage marked a significant milestone for Wollongong and reflected the developer's long-term commitment to regional cities.

"Today's groundbreaking is about turning approvals into homes and moving quickly to deliver much-needed housing in Wollongong's city centre," Elias said.

"Keira Place will provide a diverse mix of homes close to jobs, transport and services, while setting a high benchmark for quality, durability and consumer protection."

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/urban-property-group-unveils-trio-of-towers-for-next-stage-of-new-wollongong-precinct-keira-place">Urban Property Group unveils trio of towers for next stage of new Wollongong precinct, Keira Place</a>

Joel Robinson

First look: Urban Property Group plans next major Wollongong tower

<a href="https://www.apartments.com.au/developers/arada">Arada</a> has wasted little time expanding its ambitions in Campsie, lodging plans for a second major project in the rapidly transforming town centre just months after unveiling its three-tower One Campsie proposal on Beamish Street.

The UAE-backed developer has now taken aim at one of the suburb’s most strategically positioned sites, filing a State Significant Development Application for a <a href="https://www.apartments.com.au/new-apartments/10-north-parade-campsie-nsw-2194">33-storey mixed-use tower</a> at 10 London Street and 43 North Parade, directly opposite the future Campsie Metro Station. The proposal is currently on public exhibition and represents another significant vote of confidence in Campsie's emergence as one of Sydney’s key transit-oriented growth centres.

Designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a>, the development would deliver 156 apartments above a podium containing retail and commercial space, creating a new residential and commercial gateway to the town centre. The scheme also includes a four-level above-ground parking podium and a dedicated residential amenity floor featuring wellness and recreation facilities. At least 10 per cent of the apartments would be allocated as affordable housing for a period of 10 years.

The proposal occupies a 1,631 sqm site bounded by London Street, North Parade and Dispensary Lane, immediately adjoining the future Metro station precinct and just metres from Beamish Street’s retail and dining strip. According to the Urban Design Report, the project seeks to deliver "a great place that prioritises human-scaled experience and provides spatial improvements to the area."

<img alt="First look: Arada doubles down in Campsie with 33-storey Metro-front tower plans" data-entity-type="file" data-entity-uuid="175a8324-015b-4856-abe3-ce6f23199fa7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/podium%20campsie.png?VersionId=742UGwXFhFBX4GEl6wX4PYIWREAgn6il" />

Woods Bagot describes the tower as a key marker within Campsie's next phase of growth.

"Located directly opposite the new Campsie Metro Station on North Parade, 10 London Street is a thoughtfully composed 33-storey mixed-use tower that contributes to the ongoing transformation of the town centre," the Architectural Design Report states. The report says the project is intended to provide "high-quality homes within a vibrant, connected urban environment, while helping define Campsie's future skyline."

A strong emphasis has been placed on the public realm. The ground floor incorporates over 500 sqm of retail space and active frontages along both London Street and North Parade, while the podium is wrapped by extensive landscaped planting intended to soften the building's scale and strengthen the pedestrian experience. The development would also widen surrounding footpaths and improve connections between the Metro station and the broader town centre.

Above the podium, residents would have access to more than 1,400 sqm of communal amenities, including a pool, gym and landscaped recreation spaces. A distinctive green-wall treatment extending across four podium levels forms a major architectural feature, helping differentiate the project within the emerging high-density precinct.

The tower's design is closely tied to the broader Campsie Town Centre Master Plan and the arrival of Sydney Metro. The Urban Design Report notes the proposal "directly supports the Campsie Town Centre Master Plan by delivering new homes in a location explicitly identified for growth, improved accessibility, and high-quality urban renewal." It adds that the project contributes to the master plan's vision for a strengthened town centre supported by thousands of new homes around the future Metro station.

<img alt="First look: Arada doubles down in Campsie with 33-storey Metro-front tower plans" data-entity-type="file" data-entity-uuid="bfd17654-253e-489a-bade-6278d63db412" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/base%20campsie.png?VersionId=3roJPMQGs36dazpkhvpvbDDP73Ld.Ica" />

The application follows Arada's recently lodged One Campsie project at 124–142 Beamish Street and 16–18 Ninth Avenue, where the developer is seeking approval for 346 apartments across three towers rising 24, 32 and 39 storeys. Together, the two proposals would cement Arada as one of the most influential developers shaping Campsie's future urban form.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-arada-files-for-trio-of-apartment-towers-in-campsie-town-centre">First Look: Arada files for trio of apartment towers in Campsie town centre</a>

Arada entered the Australian market in 2024 and has rapidly assembled a significant development pipeline across Sydney. Alongside its Campsie holdings, the developer is soon to launch <a href="https://www.apartments.com.au/new-apartments/wattle-green-2-fishburn-crescent-castle-hill-nsw-2154">Wattle Green</a> in Castle Hill, and has expanded its local operations following its acquisition of construction firm Roberts &amp; Co.

Located around 14 kilometres south-west of the Sydney CBD, the site sits at the centre of one of Sydney's fastest-changing middle-ring precincts. The Metro conversion of Campsie Station, combined with Canterbury-Bankstown Council's master planning framework, is driving significant residential intensification around Beamish Street and North Parade, with thousands of new homes expected over coming decades.

First look: Arada doubles down in Campsie with 33-storey Metro-front tower plans

For the first time in a long time, Australia's inflation story is starting to look more like a landing than a fight.

The latest Consumer Price Index figures from the Australian Bureau of Statistics showed annual inflation eased to four per cent in May, down from 4.2 per cent in April. On the surface, that might not seem like a major move. Inflation remains above the Reserve Bank's target range and some categories continue to record stubborn price growth.

But the significance of this result lies less in where inflation sits today and more in what it means for where interest rates are likely heading next.

The biggest takeaway is that inflation continues to move in the right direction.

Markets had been bracing for another sticky result after a period where progress appeared to stall. Instead, headline inflation came in softer than expected, helped by falling fuel prices and easing transport costs. Annual transport inflation halved from 6.6 per cent in April to 3.3 per cent in May, while automotive fuel prices fell 11.9 per cent during the month following lower oil prices and the impact of reduced fuel excise measures.

While petrol prices don't solve Australia's affordability challenges, they are one of the most visible and immediate costs for consumers. Falling fuel costs feed through the economy quickly, helping ease pressure on household budgets and business operating expenses.

The ABS data also showed headline inflation is now sitting at its lowest annual level in several months, reinforcing the broader trend that price growth is gradually moderating.

That trend is important because it aligns with what many economists and lenders have been saying for the last month.

Prior to this week's inflation data, ANZ, NAB and Commonwealth Bank had all shifted their forecasts, now believing the Reserve Bank had likely reached the peak of the interest rate cycle. Following the May inflation release, ANZ reaffirmed that view.

In its latest economic update, ANZ said it expects quarterly trimmed mean inflation to come in at 3.7 per cent for the June quarter, slightly below the Reserve Bank's forecast of 3.8 per cent. Importantly, the bank said that outcome, when combined with slowing economic activity, "supports our view that the cash rate has peaked".

The Reserve Bank has spent the better part of three years attempting to bring inflation under control through higher interest rates. If Australia's major banks are correct and rates have now peaked, the conversation shifts from how much higher rates could go to when they might begin coming down.

Westpac's caution comes from underlying inflation. The trimmed mean, the measure most closely watched by the Reserve Bank, increased from 3.4 per cent to 3.6 per cent annually. Housing inflation remains elevated at 6.5 per cent, reflecting ongoing increases in rents, electricity costs and new dwelling construction.

Electricity prices remain particularly problematic, rising 21.1 per cent over the past year following the removal of government rebates.

Housing construction costs are also showing signs of renewed pressure. ANZ noted new dwelling costs rose 0.9 per cent in May and are now running at an annualised pace of 8.6 per cent over the past three months. Builders continue to face higher labour, fuel and material costs, a reminder that inflationary pressures have not completely disappeared.

Housing affordability has deteriorated largely because of higher interest rates rather than higher property prices alone. Even modest reductions in mortgage rates would improve borrowing capacity, increase buyer confidence and reduce repayment pressure on existing homeowners.

While August is far from a certainty, the latest inflation result has strengthened the view that the next move in rates is more likely to be down than up. For borrowers, buyers and the development sector, that alone represents a significant shift from the conversation that dominated much of the past two years.

The inflation result the property market was waiting for

Commercial property group FiveX is doubling down on its move into the residential space.

The group, founded by Joshua and Marko Berger more than five decades ago, has followed up its plans for a 39-storey tower on North Sydney's Alfred Street with a proposed 61-storey tower in Chatswood.

The new tower at <a href="https://www.apartments.com.au/new-apartments/815-pacific-highway-chatswood-nsw-2067">815 Pacific Highway</a>, which would be one of the tallest proposed in Chatswood in recent years, will comprise 490 apartments, 76 of which will be dedicated affordable housing and managed by Evolve Housing for a minimum of 15 years.

The project will replace the long-standing Panorama Building, originally known as the BMA Tower, a 14-storey office building completed in 1972 and designed by Hungarian-born architect Hugo Stossel. At the time of its completion, the building was the tallest structure in Chatswood and became a local landmark due to its distinctive curved form and external glass lift.

<img alt="FiveX" data-entity-type="file" data-entity-uuid="956bd299-3864-47a0-8ea6-162b5524c5d8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-24%20at%201.02.03%E2%80%AFPM.png?VersionId=EWx7teUr7RcYrI9mgRytwppwt5AdUDtb" />

fjcstudio is behind the designs. Its Architectural Design Report argues the ageing commercial building no longer reflects Chatswood's role as one of Sydney's key strategic centres and that the site is ideally positioned to support significantly higher residential density.

"The site is located at the heart of Chatswood, within the TOD accelerated rezoning area that supports higher density development around the new Metro station," the report states.

"The site's role within a walkable 400-metre radius catchment is where housing, employment, retail and community uses are encouraged to cluster in support of transit-oriented living."

<img alt="fjc" data-entity-type="file" data-entity-uuid="8d198f5e-cc71-4175-9357-be6ec7207473" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-24%20at%201.18.27%E2%80%AFPM.png?VersionId=5WUFc3IYBPvhQMBUYLCsjJhzdcVeYodE" />

The proposal has undergone two rounds of review by the NSW State Design Review Panel, with the design evolving through an extensive assessment process focused on design excellence, public realm outcomes, residential amenity and the integration of affordable housing.

fjcstudio says the residential component provides a diverse mix of apartment typologies, supporting a broad demographic and contributing to housing supply in a highly accessible location close to major transport, employment and retail infrastructure.

The application follows FiveX's plans for a 39-storey tower at <a href="https://www.apartments.com.au/new-apartments/275-alfred-street-north-north-sydney-nsw-2060">275 Alfred Street</a>, which it <a href="https://www.apartments.com.au/new-apartments/275-alfred-street-north-north-sydney-nsw-2060">submitted through the same NSW Government pathway</a> in December. That's for 184 apartments.

Recent activity in Chatswood includes Hyecorp launching its Archer Street project, Celine, and Develotek securing approval for a 34-storey tower.

First look: FiveX targets Chatswood skyline with 61-storey tower after North Sydney plans

Bridgewell Capital and SLD Development seem to be bullish on the Killara apartment market, filing plans for a second new development next to the Killara Golf Club.

The new plans are for 79 apartments across an amalgamated 4,989 sqm site on Buckingham Road.&nbsp;The project has been designed by BKA Architecture and is being assessed under the NSW Government's Low and Mid-Rise Housing and Infill Affordable Housing reforms. It is just 300 metres from&nbsp;Killara train station.

The majority of the apartments are three-bedrooms (46), with 23 two-bedroom apartments, seven one-beds, and three four-bedroom apartments. 17 of the apartments&nbsp;are proposed as affordable housing, representing 15 per cent of the project's gross floor area, allowing the development to access additional floor space and height incentives available under the NSW Housing SEPP.

There will be 131 resident and visitor car spaces, and more than&nbsp;1,450 sqm of communal open space. Landscaped areas would account for approximately 45 per cent of the site.

<img alt="Killara" data-entity-type="file" data-entity-uuid="75ef5ef7-a53b-4932-a8f1-38f63169eec9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-24%20at%2011.04.00%E2%80%AFAM.png?VersionId=d_lG1A1StDaMQilljy25Fr8SF1BnAmKE" />

The site currently contains three detached dwellings and occupies a prominent position on the eastern side of Buckingham Road, with frontage to an area that has already begun transitioning towards higher-density housing. Existing apartment buildings of up to six storeys surround the site, while the Killara Golf Club forms its southern boundary.

The application has been lodged as a State Significant Development due to the affordable housing component and the scale of the project.

According to the design report, the proposal has been shaped by the area's evolving planning framework, which is encouraging greater housing density around transport infrastructure.

"The site sits along a growth area anticipated to undergo transformation in line with broader trends across New South Wales, driven by the implementation of the Low and Mid-Rise and Transport-Oriented Development State Housing Policies," the report states.

"Being within 800 metres walking distance to Killara Train Station, the project seeks to provide high-quality apartments designed for various family sizes, located in a vibrant landscaped setting."

The Upper North Shore suburb has become one of the most closely watched testing grounds for the NSW Government's housing reforms. A number of developers have moved quickly to consolidate sites around railway stations across suburbs including Killara, Lindfield, Gordon and Roseville, where the new planning settings are creating opportunities for apartment developments that would previously have been difficult to achieve.

The likes of Aqualand, Hyecorp, Holdmark and Vermont Property Group have projects in the region.

Bridgewell has several developments in the pipeline. Last September they submitted plans for <a href="https://www.apartments.com.au/news/nsw/bridgewell-capital-seeks-55-apartment-project-in-killara">55 new apartments</a> at&nbsp;23-25 Lorne Avenue in Killara, just the other side of Regimental Park from their new project. In May they filed for <a href="https://www.apartments.com.au/news/nsw/first-look-bridgewell-plots-120-apartments-and-childcare-centre-in-maroubra-town-centre">120 apartments in Maroubra</a>.

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Larry Schlesinger

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