<html><body>
Investors casting their eye over Adelaide should hold off for at least another 12 months, according to CBRE’s assessment of the South Australian market.
Sam Reilly, CBRE’s global research and consulting manager, says the short-term forecast remains subdued due to a “lower than national average population growth and declining activity in the construction sector”.
Despite the poor outlook over the next six to 12 months, some parts of the Adelaide market have shown signs of growth at a time when the rental vacancy rate is 0.9% - the lowest in the country.
In comparison, the Sydney vacancy rate is 1.4% and it is 1.7% in Canberra.
According to Melissa Gow, CBRE’s director of valuation and advisory services, South Australia’s temporary position on the wrong side of the two-speed national economy is being mirrored in its residential market which is in a phase of cyclical contraction, with interest rate movements likely to determine capital value trends over the next 12 months.
However, Gow says a prolonged period of low vacancy could result in renewed interest from investors as upward pressure is placed on rents.
More positive long-term forecasts for the South Australian residential market are being driven by the “ripple effect” of substantial resource projects once they begin production.
“Noteworthy projects such as the expansion of Olympic Dam are expected to have a flow-on effect on employment and infrastructure spending in the state,” says Reilly.
The heritage suburb of Maylands, 4 kilometres north-east of the Adelaide CBD, has outperformed every other Adelaide suburb to record annual capital growth of 14.1% and a median price of $708,000.
More affordable suburbs that have also recorded impressive capital growth of 12.8% and 12.3% respectively are West Croydon and Virginia, with median house prices under $480,000.
The western suburb of Findon has the strongest units market in Adelaide, posting capital growth of 16.6% and a median value of $311,000, followed by St Mary’s, a suburb just south of the CBD, where prices have risen 14.7% over the last 12 months to a median value of $239,000.
While there have been reasonable price gains across all price brackets, the cheapest quartile experienced the biggest decline in house prices – most notably, the outer northern suburbs of Elizabeth Downs and Elizabeth North where median prices decline 5.7% and 4.7% respectively.
The tightest vacancy rates are in Adelaide North (0.49%), the residential zone situated north of the River Torrens and within the Adelaide Park Lands, followed by the CBD and inner-north suburbs (0.79%).
The withdrawal of the booted first home owner grant has contributed to drop in demand for houses under $500,000.
Limited price growth is expected for properties priced between $500,000 and $1 million due to affordability and interest rate sensitivities in the price range.
Homes above $1 million are undergoing a more significant price correction with lower demand and longer selling periods.
In the prestige market above $2 million there has been a general slow-down in buying activity. According to CBRE, homes in this price range need to be reasonably priced to attract buyer interest.
</body></html>

lschlesinger-FZcF9M3vE6

Adelaide investor prospects subdued for now

<html><body>
<img src="/images/stories/brighton2-cropped.jpg">
Australian commercial property investors are being targeted as potential buyers of a historic piece of British Victorian architecture.
The 524-metre, grade 2-listed pier, which juts out from Brighton beach, is being marketed by Ben Allen and Richard Baldwin from GVA Humberts Leisure on behalf of the Noble Group, which has owned the pier since 1984.
Brighton Pier has featured in films, television programs and documentaries dating back to 1896 with the likes of Grace Kelly, Bette Davis and Greta Garbo all appearing in scenes set on the landmark. A Midsomer Murders episode, "The Sword of Guillaume", was filmed on Brighton Pier with the House of Horror used as the murder scene.
The asking price is undisclosed but the Noble Group will be looking to recoup the £35 million it has invested in the heritage building, which was formerly known as the Palace Pier.
A spokesperson for GVA Humberts Leisure told Property Observer there had been international interest in the pier including from the USA, Russia and Kuwait, and would not rule out interest from Australia.
An advertising campaign is running in The Australian.
Investors will be able to take advantage of a favourable Australian dollar/UK sterling exchange rate with $1 now buying 67 pence.
According to a report by Investment Property Databank, values of UK commercial real estate rose in 2010 for the first time in four years. Values rose 6.9% compared with a drop of 5.6% in 2009. Australian investors have kept clear of the UK commercial market in recent times.
According to Rosey McGrath, UK marketing and communications manager at CB Richard Ellis, its research showed that Australian investors were not registering as significant purchasers in the current UK market.
“The last major Australian acquisition from memory was the Australian Future Fund – purchasing a 17.2% stake in Gatwick Airport in December 2010 and in the Bullring Shopping Centre in Birmingham in September 2009,” she says.
The current pier was built by the Marine Palace &amp; Pier Company in 1899 at a cost of £137,000 on the site of an earlier Old Chain Pier, dating back to 1823.
It was designed by R St George Moore, an engineer from London, as an amusement and pleasure emporium complete with filigree arches and kiosks. It was the third pier to be built in Brighton.
Facilities on the pier include 18 themed attractions and rides, two modern amusement arcades, together with retail and entertainment outlets, Horatio's and Victoria's Bars and the recently refurbished Palm Court restaurant.
According to GVA Humberts the pier is ranked alongside Brighton’s pavilion as one of the city’s most important assets, and has served as the catalyst to the resurgence of Brighton’s seafront. At peak season, the pier’s businesses employ more than 300 people.
David Biesterfield, Noble Group’s development director, says: “Over eight million visitors come to Brighton annually and its status as ‘London by the Sea’, the resurgence of British tourism and the forthcoming Olympics represent an exciting opportunity for further increasing the number of visitors to the pier.
"We anticipate a great deal of interest in the sale of this world-renowned asset.”
A train ride from London to Brighton takes under an hour.
The sale of the pier is part of a sale of the entire issued share capital of the Brighton Marine Palace &amp; Pier Company, which was established by Act of Parliament in 1888, to develop and operate the pier.
The Noble Group, based in Tyneside in the north-east of England, is one of the UK’s largest amusement arcade operators.
It also owns a wide-ranging commercial property portfolio and has a variety of other business interests.
</body></html>

Aussie investors sought for historic Brighton Pier

<html><body>
Property group Dexus has paid $17 million for a 27,128-square-metre industrial property in La Palma, California.
The initial purchase price yield is 4.3%.
The US acquisition comes exactly a week after Dexus offloaded a 70,000-square-metre Toronto warehouse for $67 million.
The building, at 5911 Fresca Drive, has 149 square metres of newly appointed office space and has direct access to the 5 and 91 freeways, as well as close proximity to the Los Angeles and Long Beach ports.
The acquisition enhances Dexus’ presence in the California market and grows its US portfolio, which now comprises 88 industrial properties totalling more than 2.3 million square metres.
</body></html>

Dexus acquires Californian warehouse for $17 million

<html><body>
Mirvac is poised to sell a 50% stake in its under-construction 8 Chifley Street, Sydney office tower to listed Singapore commercial investment real estate trust K-REIT for $150 million.
The deal is due to be completed before the end of July.
K-REIT, a subsidiary of the Keppel Land Group, has adopted a strategy of making accretive acquisitions of office buildings, according to The Australian.
In May K-REIT purchased an additional four floors of the 30 storey Prudential Tower at 30 Cecil Street in Singapore, bringing its total ownership of the building to more than 92%.
It already owns the 18-storey 77 King Street tower in the Sydney CBD, which it purchased last year for $118 million, as well as a 50% stake in the 32-storey 275 George Street in Brisbane, purchased from Charter Hall in 2009 for $166 million.
Number 8 Chifley Street, a 30-storey office tower in the heart of Sydney, is due for completion in 2013 at a cost of $300 million.  Upon completion it will have 19,000 square metres of net lettable space.
Mirvac is yet to announce any prospective tenants for the building.
The premium grade building is designed by architect Rogers Stirk Harbour + Partners and Lippmann Associates in association with Mirvac Design.
Sydney CBD prime gross office rents are set to rise to an average of $849 per square by January 2012, according to an autumn 2011 report by the Property Council of Australia and Macquarie Bank.
</body></html>

Singapore commercial trust to invest in Sydney tower

<html><body>
<img src="/images/stories/95.jpg">
The passing yield generated following the <a href="https://www.propertyobserver.com.au/commercial/sussex-street-office-sale-yields-6-annual-growth/2011070750727">$32.5 million sale of Standards Australia’s 12-storey B-grade building</a>, on the corner of <street><address>Bathurst Street</address></street> and <street><address>Sussex Street</address></street>, in the Sydney CBD. It last traded at $15.25 million in 1999 – reflecting 6.2% annual capital appreciation. The block was bought by <state>Queensland</state>’s Cornerstone Properties, which is backed by <city><place>Brisbane</place></city>’s Pidgeon family. Ian Triganza and James Aroney at Jones Lang LaSalle negotiated the sale.
 
<hr>
<img src="/images/stories/315m.jpg"> 
The price paid by a local investor for a free-standing office building at <street><address>46 Fullarton Road</address></street> in the <city>Adelaide</city> suburb of <city><place>Norwood</place></city>. The sale represents an initial yield of 7% and was negotiated by CB Richard Ellis’s Ben Younger and Will Brown. The 1,717-square-metre building is fully leased with a net lettable area of 741.5 square metres.
 
<hr>
<a href="https://www.propertyobserver.com.au/commercial/eclectic-heritage-cbd-corner-sells-smartly/2011070650717"><img src="/images/stories/1909.jpg"></a>
 
The year a landmark <a href="https://www.propertyobserver.com.au/commercial/eclectic-heritage-cbd-corner-sells-smartly/2011070650717">heritage office building on the corner of Collins and <address>
<street>King Street</street>, <city>Melbourne</city>
</address></a>, which sold for about $14 million, was built. The deal was negotiated by Knight Frank agents Langton McHarg and Marcus Quinn. The six-level retail and office building, which is on the Victorian Heritage Register, has a net lettable area of 3,510 square metres and is on a site of 856 square metres.
 
<hr>
<img src="/images/stories/16.jpg"> 
The sales price achieved by Colliers agents Jim Shonk and Michael Heather for a retail site at 
<address>
<street>25 Garema Place</street>, <city>Canberra</city>
</address>. The property has a total net lettable area of 230 square metres and generated a yield of 8%. The property is currently tenanted by Flight Centre and Anton’s Hair Studio on five-year leases. The property was sold by the Green family to an undisclosed buyer.
 
<hr>
<img src="/images/stories/4248.jpg"> 
The size of the Granville development site sold by Parramatta City Council to a private developer for $2.02 million at auction. The site is located at <street><address>23 Elizabeth Street</address></street> and has development application approval for 19 townhouses. The sale was negotiated by CB Richard Ellis’ Harry Bui and Frank Oliver.
</body></html>

Commercial sales wrap

<html><body>
Property developer Frasers has entered an agreement with Japanese construction firm Sekisui House to jointly develop the majority of the $2 billion Central Park project in central Sydney.
While the value of the deal has not been disclosed, a spokesperson confirmed that it is 50/50 joint venture.  “Both parties are equal partners in the joint venture,” she told Property Observer.
Work on the 5.8-hectare, mixed-use site began in late 2008 and completion of the project is expected to take between eight and 10 years.
To date, more than 500 apartments have been sold off-the-plan for the first residential stage, ‘One Central Park’, which is due for completion by mid-2013. The 116-metre, 33-storey tower will comprise a 632 apartments upon completion and has been designed by French architect Jean Nouvel.
The first batch of 228 apartments, priced between $460,000 and $1 million, was sold off-the-plan within six weeks of being released in August 2010.
A second batch of 100 apartments was released in October 2010, priced between $515,000 and $1.2 million, and a third batch of 150 apartments was released in December 2010 between $610,000 and $1.25 million.
Central Park is 1.5 kilometres from the Sydney Town Hall and is defined by Broadway, Abercrombie Street, O’Connor Street, Wellington Street and Kensington Street in Chippendale.
Upon completion Central Park will comprise about 1,900 apartments, student housing, a hotel, a 16,000-square-metre multi-level retail centre and a 75,000-square-metre commercial office campus.
Due to the demand, construction of Central Park’s second residential stage, ‘Park Lane’, has been brought forward, with construction expected to begin shortly.
Frasers is currently involved in similar joint ventures with Sekisui House in Singapore.
Sekisui House Limited has a market cap of 541 billion yen ($6.76 billion) and recently marked the completion in Japan of two million homes.
Under the terms of the joint venture, which will come into effect after satisfaction of relevant conditions, Frasers will continue as development manager, project manager and sales and marketing manager for the project.
Frasers Property Australia CEO Guy Pahor says the joint venture will allow Frasers to recycle capital into other development opportunities in line with the company’s strategic growth objectives.
Frasers purchased the site in 2007, began demolition and early infrastructure works in 2008 and achieved master plan approval in early 2009.</body></html>

Japanese developers partner with Frasers on Central Park 

<html><body>
While first home buyer numbers decline, rent-to-invest property buying appears to be on the rise, according market analysts and commentators.
Renter-investors refer to generally younger buyers who choose to forgo the first home owner grant and purchase an investment property as their first home.
Mortgage broker Smartline has noticed a growing number of first-time buyers who are foregoing the grant in order to get into the property market.
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.
Burke says the rise of young "renter-investors" mirrors the decline of first home buyers.
According to latest Real Estate Institute of Australia statistics, first home buyers have declined to just 16% of new finance commitments in the March quarter.
At the same time, the number of borrowers taking out investment loans continues to hold steady. According to figures for June 2011 compiled by AFG, property investors still account for more than a third of investment loans (36.2%) recommended by its mortgage brokers.
Chris Acret, managing director of Smartline Personal Mortgage Advisors, says the growing number of renter-investors is being driven by a desire to live nearer to suburbs that suit their lifestyle, with attractions such as beaches, cafés, and city proximity) and nearer to their workplaces.
“With the cost of properties located in these ‘lifestyle areas’ out of reach for many first-home buyers, they’re taking a more creative approach,’ he says.
There are also financial incentives: if properties are held for a longer period of time, 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,” Mr Acret explains.
McGrath Real Estate CEO John McGrath has also noted more first home owners entering the market as investors.
Faced with prospect of renting for life to live in desirable lifestyle locations, McGrath says they are choosing to invest in properties outside the CBD inner ring.
He says while they must forgo the first home owner grant, there are significant tax benefits in being negatively geared.
Furthermore, he says strong rental returns make it easier to manage repayments on an investment loan.
“I have long advocated home ownership as a cornerstone investment in people’s financial future. However, I would rather see young Australians buying an investment property than doing nothing at all,” he says.
McGrath says renting-investing is entirely do-able if a buyer is on a good income.
While mortgage broker Mortgage Choice does not have specific data on renter-investors, a survey of 1,000 first home buyers carried out in February suggests a growing number are thinking along those lines.
It found that 14.2% of first home buyers who will purchase a home in the next two years intend to rent out one or more of the rooms, compared with 7.8% of  recent first home buyers who already rent out a room in their homes.
</body></html>

One in 10 buyers choosing to “rent to invest”

<html><body>
Time on market for prestige houses and units in the ACT has blown out due to an oversupply of properties, according to CBRE’s latest market assessment.
Properties priced between $500,000 and $1 million are taking between two and six months to sell, while those priced above $1 million are taking between three and six months to sell.
As a result, the prestige ACT market is now a buyer's domain, according to CBRE’s ACT Residential Marketview for the second quarter of 2011.
Prestige sellers in the outer suburbs of Canberra are particurlarly struggling, CBRE associate director for valuation and advisory services, Marcus Hon told Property Observer.
 
Prestige units are taking longer to sell than prestige homes due to an oversupply of properties.
“Asking prices are staying put. But units that would have taken one or two months to sell are now taking four months to sell,” he explains.
According to Mr Hon, realistic pricing has become very important in the prestige sector to stimulate genuine buyer interest, given the current level of buyer caution.
But strong conditions remain in the investment market, with off-the-plan sales exceeding expectations.
“There has been speculation that the minimal 5% outlay has been the persuasive factor in getting potential purchasers to commit to residential projects,” says CBRE global research and consulting manager Sam Reilly.
“However, this has created a degree of risk as over 1,000 settlements are due to occur in the next two years.”
The prestige market remains strongest in suburbs closest to Canberra where there is limited supply with Hon noting good levels of inquiry in the inner north and southern suburbs.
There have been some exceptions.
According to Mr Hon, a prestige home in Nicholls, Gunghahlin, sold recently for $1.6 million.
Gunghahlin was recently the site of the biggest land sale of the year in the ACT with a 35-hectare site selling in June to the Village Building Company for $36.25 million in an auction that attracted bids from 11 local and interstate companies.
The ACT housing market remains strongest for properties priced around the RP Data median price of $483,750.
CBRE says buyers and sellers are well-matched in the entry level house and unit market, where properties are priced around $500,000.
While CBRE has noted “reasonable levels of enquiry” in this price bracket, a buyers’ market has emerged for properties above this mark.
Overall, the ACT residential market has bucked the national trend of falling housing prices despite its economy forecast to underperform relative to the national economy up until 2015.
Deloitte Access Economics forecasts growth per annum of 2.5% over this period.
While buyer demand has declined across all sectors in recent months, this had not translated to negative corrections in capital values, indicating a good level of resilience in the market.
“While the general slowdown that has impacted the Australian residential sector is now evident in the ACT, this market has avoided the price falls that have been experienced across some of the other major markets, notably Perth and south-east Queensland,” says Reilly.
“As the biggest employer, the government keeps things going. Government spending has an immediate flow through to employment,” he says.
“There has been no talk yet of spending reforms.
“It is difficult to get reforms passed given the current government. If we had a majority government, there might be more speculation about reforms.”
“As is always the case in the ACT, government spending measures will remain critical to the future performance of the market. Given the lack of substantial reforms or announcements in this area the outlook is stable in the medium term.”
Reilly says the Gunghalin Drive extension, ASIO building construction works and the Woden Green precinct development have all had a positive influence on surrounding areas.
</body></html>

Canberra prestige homes taking six months to sell: CBRE

<html><body>
Strata and community title property owners are unlikely to be compensated in any carbon tax compensation package, according to lobby group Strata Community Australia (SCA).
The industry body claims about one third of energy usage in strata buildings is in common services such as lifts, air-conditioning and security lighting and is thus beyond the direct control of individuals.
Any change to energy use, SCA argues, requires a concerted and collective effort as well as specialist knowledge.
The SCA estimates there are about two million strata and community title lots in 270,000 schemes across Australia.
It has voiced its concerns less than a week before the government reveals the details of its carbon tax package on July 10.
According to the 2006 Census, 22.5 % of Australian households were in medium and high density dwellings.
According to SCA chief executive Mark Lever, any compensation package will be “fundamentally flawed” without specific measures to help Australia's 270,000 body corporates adjust to a low-carbon future.
Lever says the sector has already missed out on a “long list of past and present programs which failed to recognise that almost a quarter of Australian households do not live in standard detached housing”.
"We have seen governments time and again tailor programs for individuals and businesses and overlook the fact that, for many, basic services are provided through communal structures. “Recent examples include disaster relief, renewable energy incentives and the home insulation program," he says.
Strata Community Australia is the new name of the National Community Titles Institute, which advocates on behalf of body corporates and community title and strata property owners.
</body></html>

Apartment and townhouse owners require carbon compo: industry body

<html><body>
Lenders are taking advantage of constant media speculation of interest rate rises and the new ban on exit fees to entice borrowers to refinance into fixed rate products.
The push by lenders follows the RBA opting to leave interest rates on hold in July.
Big four bank ANZ is now forecasting the next rate rise may not be until February 2012, saying: “Australian interest rate markets are currently flirting with the idea that the next move in interest rates might be down.”
The HIA has weighed into the debate, arguing that the RBA needs to keep rates on hold for the foreseeable future.
"In this environment, a rate hike would do considerably more damage than might have historically been expected – not in the least to the housing industry,” says HIA chief economist Harley Dale.
Mortgage comparison website RateCity has recorded 18 lenders that have dropped their three-year fixed rates by as much as 60 basis points during June.
On average, fixed interest rates are now just 8 basis points above the current average standard variable rate of 7.30%, with 36 lenders listed on the RateCity database offering three-year fixed rates below that variable average.
Research compiled by RateCity for Property Observer revealed that 18 lenders dropped their 3-year fixed rates by up to 0.60%, while three lenders increased their 3-year fixed rates by up to 0.20%.
The biggest movement downwards has been made by small lenders – Select Credit union has cut its 3-year fixed rate loan by 60 basis points to 7.39% while non-bank lender AIMS Home Loans has cut its 3-year fixed rate loan by 47 basis points to 7.30%.
Of the bigger lenders, Westpac cut its 3-year fixed rate loan by 20 basis points (7.29%) and ANZ by 10 basis points to 7.24%.
According to Damian Smith, CEO of mortgage comparison website RateCity, lenders are offering attractive fixed rate home loan deals to encourage lending and to “retain current customers with longer-term deals as exit fees on variable rate loans are banned”.
“Lenders are clearly competing harder with their fixed rate deals at the moment, despite a general consensus that interest rates will rise in the coming months. 
“The ban on excessive early fees does not include break costs for fixed rate home loans, so it’s a better deal for lenders to increase their customer base for fixed loans,” he says.
However, hotspotting.com.au director Terry Ryder has warned borrowers to stop listening to media speculation, which “to date has been inaccurate”.
July mortgage statistics put out by mortgage broker AFG suggest borrowers are buying into the media speculation.
According to AFG, the percentage of borrowers who take out fixed rate loans has risen from 6.6% from February 2011 to 8.2% in July.
In contrast, introductory ‘honeymoon’ loans – where the borrower is offered a very cheap initial rate – have declined from 13.2% to 11.5%.
Mortgage Choice revealed that the popularity of fixed interest rate home loans hit its highest level in five months in June 2011, reaching 12.3% of all approvals.
The broker is urging mortgage holders to stop and think carefully before considering refinancing their mortgage following the exit fee ban.
“We want to ensure consumers understand the exit fee ban applies only to new home loans taken out after 1 July, not existing loans, and there are still other switching costs and home loan aspects that must be considered,” says Mortgage Choice spokesperson Kristy Sheppard.
She warns that borrowers who decide to switch should take note that if a current home loan has exit fees, those don’t simply disappear on July 1.
“Also, there is still a range of other switching costs that you may incur, such as discharge fees, break costs and lenders mortgage insurance. Weigh up the costs and benefits against your goals.”
The ban on exit fees, also known as deferred establishment or early repayment fees, applies only to all new home loans taken out after July 1.</body></html>

Lenders trying to entice fixed rate borrowers

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>.

&nbsp;

&nbsp;

&nbsp;

Larry Schlesinger

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News