<html><body>
Prices for apartments in the inner-Melbourne suburb of Carlton are starting to rise following a decade of subdued activity.
Carlton, directly north of Melbourne’s CBD, comprises 14,000 residents.
It includes a high proportion of students, given its close proximity to the University of Melbourne and RMIT.
For the 10 years prior to November 2009, Carlton apartment prices increased by 2.9%, according to RP Data.
In the 10 months from November 2009 to November 2010, growth has more than tripled to 9.7% to a median unit price of $255,000
The current median stands at $275,000, an increase of 17% over the past year, but still highly affordable when compared to the Melbourne unit market, where the median unit price stands at $440,000 and is declining (down 3.8% on the year to May 2011).
In Carlton, unit prices are trading at a 2.1% discount while the 44 days they are on the market, on average, suggests there is some room for investors to negotiate on price.
Estate agents Dingle Partners list one-bedroom investment apartments in Carlton for sale between $200,000 and $220,000 and two-bedroom apartments under $500,000.
In a promotional video for the suburb, Dingle Partners lists Carlton’s close proximity to the city, its cafes and restaurants on Lygon Street, its “immaculately retained Victorian architecture”, European-styled squares and beautifully maintained public gardens as some of the attractions of the suburb.
Mario Lambiase from Ray White in Brunswick is currently marketing a one-bedroom student unit at 131 Pelham Street to investors. The unit has an annual net rental return just under $13,000.
The price is not disclosed, however another one-bedroom apartment in the same complex being sold by Moss Estate Agents is listed at $195,000 with tenants currently paying $1,325 per month.
Lambiase says the Carlton unit market has come back 5% to 10% in the last quarter.
“Buyers’ confidence is returning and they are starting to purchase,” he tells Property Observer.
According to Lambiase, there is strong investor interest in the market both locally and interstate, particurlarly given the large student community that rents in Carlton.
He lists the close proximity of Melbourne University, good transport connections, shopping and the cosmopolitan feel of Carlton as reasons to invest in the area.
Ben Williams from Hocking Stuart Carlton says investors have returned to the market, sensing there is good value in Carlton.
He says the 70%-30% split in favour of owner-occupiers over investors is now evening out.
“Rents in Carlton are very strong. They are holding up better than sales,” Williams says.
“If you are looking for an investment near to the city, this is a pretty safe place to park your money.”
Property valuer WBP says positive growth expectations for Carlton North (the residential zone north of Rathdowne Street) market remain strong in the medium and long term.
WBP attributes demand for Carlton primarily due to its proximity to the Melbourne CBD together with local facilities including parks, restaurants, bars and cafes, and universities.
WBP describes Carlton North as a “gentrified suburb with hospitality and lifestyle facilities en masse” including the cafes and restaurants on Lygon Street and green spaces of nearby Princes Park and Royal Park.
“Other local factors that support interest and underpin value include Melbourne University and local hospitals including the Royal Children's, Royal Melbourne, Royal Women's and the soon-to-be-completed Peter MacCallum,” the valuation group says.
Like Lambiase and Dingle Partners, WBP highlights nearby green spaces of Princes Park and Royal Park at Parkville, as well as the café culture and restaurants, as attractive prospects for buyers and renters.
“Carlton North is a highly-sought residential area with high value and strong growth potential.  Popular streets include Canning, Rathdowne and Station Street.
“Neighbouring suburb Prince Hill is also a popular residential location, which offers many of the same benefits as Carlton North,” the firm reports.
Carlton is also attracting developer activity, with Australand currently selling units off-the-plan for its 148-unit Lume project. A 40-square-metre, one-bedroom ground floor apartment in the Allure tower is being marketed for $430,000.
Lume will include three towers ranging in height from four to six levels around the block bound by Cemetery Road East, Cardigan, Keppell and Swanston streets. 
More than a third of the Lume apartments have been allocated as public housing.
The Carlton residential market is dominated by units, which account for 76.4% of all dwellings.
Being a student accommodation hub, 85.7% of units are rented – significantly higher than the 65.6% rental proportion recorded on average throughout the city.
As highlighted by Dingle Partners, Carlton is a well-established suburb with many preserved Victorian-era, heritage-listed buildings.
As a result, the majority of units are situated within old buildings, maintaining the architecture of their time.
According to the St George National Hotspots report, some such old buildings have received significant external renovations, while some newer buildings have taken their place, offering modern conveniences such as gyms and pools.
“As is the case for older suburbs of Melbourne, small cottage and terrace-style dwellings are still quite prominent and are likely to afford significant internal renovation potential,” the St George report says.
Median rents for Carlton units are recorded at $380 per week, and this figure coupled with the median unit price results in an indicative gross rental yield of 7.7%.
The suburb is well serviced by trams providing easy access to the suburb and the CBD.
</body></html>

lschlesinger-FZcF9M3vE6

Hotspot: Investors tap into Carlton student rental market

<html><body>
The Reserve Bank board has, as expected, kept interest rates on hold at 4.75% in July.
Slower employment growth, sluggish household credit growth and inflation running at the bottom half of the target range were listed as reasons for keeping rates on hold for the seventh-straight meeting.
The Australian dollar eased slightly against the US dollar following the announcement – a sign the market now anticipates the next rate rise is now further off.
At 2.35pm the dollar was trading at $1.067 to the US dollar, compared with $1.07 prior to the announcement.
“Growth in employment has moderated over recent months and the unemployment rate has been little changed, near 5%,” said RBA governor Glenn Stevens in a statement following the announcement.
“Most leading indicators suggest that this slower pace of employment growth is likely to continue in the near term. Reports of skills shortages remain confined, at this point, to the resources and related sectors.
“After the significant decline in 2009, growth in wages has returned to rates seen prior to the downturn.
“Credit growth remains modest. Signs have continued to emerge of some greater willingness to lend and business credit has expanded this year after a period of contraction. Growth in credit to households, on the other hand, has slowed. Most asset prices, including housing prices, have also softened over recent months.
“Year-ended CPI inflation is likely to remain elevated in the near term due to the extreme weather events earlier in the year. However, as the temporary price shocks dissipate, CPI inflation is expected to be close to target over the next 12 months. In underlying terms, inflation has been in the bottom half of the target range, though a gradual increase is expected over time.”
Mr Stevens notes that while the global economy is continuing to expand, the pace of growth slowed in the June quarter.
</body></html>

RBA leaves rates at 4.75% in July

<html><body>
A portfolio of industrial properties held by BRW rich-lister Peter Gunn will be marketed at international investors with a particular focus on the Asian investment market.
The portfolio is being marketed exclusively by CBRE.
Gunn, Australia’s 50th richest man with a fortune estimated at $800 million, wants to reweight his property portfolio and put some capital in CBD commercial assets.
CBRE will look to take advantage of better market conditions when marketing the portfolio.
Commercial property sector sales surge by 432% in the second quarter of the year to $2.7 billion with the industrial sector accounted for 8% of all transactions.
The portfolio, held by Gunn’s PGA Group, is made up of five warehouse/distribution centres and two approved development sites.
It includes properties PGA has been trying to offload for a number of years.
Up for sale is the 5.65=hectare industrial property at 34 Airds Road, Minto in NSW, purchased in September 1997 for $7.25 million, which has been for sale since 30 October 2008.
The 6.65-hectare development site at 295 Archerfield Road in Richlands, Queensland was purchased for $4.3 million in 2000 and has been listed for sale since April 2009.
Another long-held property up for sale is a 2.54-hectare industrial property at 39 Britton Street in Smithfield in NSW, tenanted by Snack Brands Australia, which was purchased by the PGA Group in April 1993 for $900,000.
The other properties listed for sale are at 39 Britton Street, Smithfield (NSW), 34 Jonal Drive, Cavan (SA), 42-44 Jonal Drive, Cavan (SA), 96-108 Greens Road, Dandenong South (VIC) and 110-116 Greens Road, Dandenong South (VIC).
The assets make up a total building area of close to 65,000 square metres and a combined land area of 235,000 square metres with a weighted average lease expiry of 5.97 years.
The campaign will look to take advantage of a turnaround in investor sentiment towards commercial property, which saw commercial property transactions surge by 432% in the second quarter of 2011 to $2.7 billion, 14% above the long-term quarterly average turnover.
Notable recent transactions include the $65 million sale of a Coles distribution centre in Victoria to the Roberts family.
CBRE regional director for industrial, logistics and investments, Joshua Charles expects interest from both local and international investors.
“These assets are of excellent quality and several of the properties offer significant upside,” Charles says.
“Given the geographical spread and the potential price range we expect the sale to attract broad ranging buyer demand.”
According to CBRE, the PGA Group is “keen to fully exploit the strong international interest in Australian industrial assets”.
Expressions of interest close August 18, 2011.</body></html>

CBRE hoping to offload Gunn industrial portfolio to Asian investors

<html><body>
The near-completion of the government’s $16.2 billion Building the Education Revolution (BER) project as well as the imminent end of other stimulus measures have contributed to a dramatic turnaround in sentiment among the building sector.
Peter Jones, chief economist at the Master Builders Australia, says the poor outlook generated from the June quarter survey is “ringing alarm bells”.
The building industry activity index has again fallen below the 50-point ‘neutral’ mark, meaning builders expect the overall industry to be lower over the next six months relative to the past six months.
“The BER was critical in terms of cushioning the industry,” Jones tells Property Observer.
“It has been extraordinarily positive and incredibly beneficial for construction and the wider economy,” he says.
Jones says the expectation has been that as the project neared completion, other sectors would take up the baton, but this has not happened.
“It has been a clunky gear change,” he says.
May ABS figures show new private sector home approvals have plummeted by a seasonally adjusted 7.8%, with NSW recording its second worst May approval figure in statistical history and Queensland’s worst May figure since 1987.
According the MBA, the commercial building outlook is weaker than residential.
The non-residential index measuring current conditions registered 43.3 in the June quarter, up on the previous reading but remaining well below the ‘satisfactory’ 50 level.
Furthermore, expectations about future building activity have fallen back in the June quarter after ticking higher in the previous two quarters. The index remains below the neutral mark and non-residential builders face the prospect of falling activity levels as government stimulus programs come to an end.
For the residential sector, conditions remain unchanged in the June quarter with builders expecting little change in residential building conditions over the next six months. The index fell back to 48.4 in the June quarter from 51.4.
The MBA survey of 470 builders across all sectors of the industry uncovered a concern that private sector demand will not be able to fill the gap left by the BER, social housing and other government stimulus programs.
The Building the Education Revolution project alone has generated 24,000 projects, according to government statistics.
Other stimulus programs that have been culled include the removal of stamp duty concessions for Queensland non-first home buyers (ending on August 1, 2011) and an end to stamp duty concessions for Tasmanian first-home buyers, which were removed on June 17, 2011.
Besides an expected drop in building activity, the survey revealed a host of other factors contributing to what Jones calls a “dramatic turnaround in builder sentiment”.
These include builders reporting a drop in their own-business activity fell in the June quarter (from 56.3 to 55.7 on the index and trending down for the last four quarters) and an overall decline in profitability.
Furthermore, builders do not expect profitability to improve over the remainder of 2011, with the profitability expectations index trending down and returning to a neutral position, following some improvement during the preceding year.
Profitability expectations are now “not far from lows reached during the GFC and well down on the much healthier levels of profitability achieved prior to the global crisis”.
</body></html>

Construction outlook “ringing alarm bells”: MBA

<html><body>
Owner-occupiers are taking advantage of slumping industrial property prices to buy up properties in the regional NSW industrial markets of Newcastle and Wollongong. 
In Wollongong, 95km south of Sydney, heavy and light industrial prices have fallen significantly in recent years, according to market analysis contained in the July 2011 Herron Todd White report.
Properties which sold prior to the GFC have subsequently changed hands at discounts of up to 40%.
Price falls have been greatest in land zoned for heavy industrial, with few recent sales available to establish current values.
The market has bas been “subdued for some time”, according to the report, with occupier demand effectively limited to companies which have a specific business need to be located within the Illawarra.
A lack of interest in Wollongong industrial space from outside the Illawarra region, combined with its inability to compete with Sydney, suggests rental growth is unlikely.
Consequently, there is little demand for industrial properties in the area with owner-occupiers accounting for the greatest proportion of sales in the area.
Industrial properties within Wollongong are achieving net face rental rates between $70 and $125 per square metre, in line with the rental rates achieved by properties within Western Sydney.
A similar story is being played out about 260 kilometres up the coast in Newcastle, where owner-occupiers are dominating an industrial market characterised by falling rental rates.
Herron Todd White’s Newcastle valuation team reports an increase in incentives offered for difficult-to-lease stock and rental rates “regularly below $100 per square metre “specialised in nature or with overhead gantry cranes”.
Two owner-occupier trends are emerging in Newcastle: the use of self-managed superannuation funds to purchase industrial properties, and smaller professional firms buying industrial units, fitting them out as offices and having an area of storage and parking in the warehouse component.
“This also allows for easy expansion, should they require more office space. We know of many set-ups like this as the entry price is cheaper than buying office space and usually parking is easier for staff,” the report says.
The expansion of the mining sector in Newcastle is having a small trickle-down effect, with some leasing deals and sales occurring “but not significantly so”.
An exception in the Newcastle market is the port area, where significant investment in coal infrastructure is being made in light of the mining boom.
However, according to Herron Todd White, it remains uncertain whether this investment will have a flow-on effect into the greater Newcastle area.
Similar softer market conditions are in play in Byron Bay on the NSW far north coast, where industrial property owners are being forced to accept low returns on their investments.
</body></html>

Industrial investors shunning soft NSW regional markets

<html><body>
ANZ has shifted its view on interest rates and now expects no increase until as late as February 2012.
Furthermore, any serious global fallout from Greek sovereign debt issues could see a rate cut for Australians.
In a research note addressing its change of view on monetary policy, the bank forecasts a second interest rate increase (from 5% to 5.25%) by August 2012.
Prior to this change of position, ANZ had, as part of a Reuters’ poll of 22 economists carried out on July 1, forecast a 50-basis-point increase (or two quarter-percentage point increases) by the first quarter of 2012.
The bank says its changed view is “primarily based on a downgrade to our employment outlook due to more mixed conditions in the non-mining economy”.
According to ANZ, an increase in the cash rate in the short term will require second-quarter inflation figures (released in late July) to be 0.8% or greater – an increase it is not anticipating.
In the medium term, the bank expects inflation to trend higher, but says the recent fall in oil prices has taken some pressure off inflation forecasts in the near term.
Any financial market dislocation could see interest rates go down, not up, according to Westpac senior economist Justin Smirk.
“This risk scenario must now also be considered. In the short term this would seem to require a GFC II-type shock, likely emanating from sovereign debt concerns.
“In the medium term, an extended period of soft or softening global growth and lower commodity prices that sees core inflation remain moderate in the lower half of the band (0.5% per quarter or below), employment growth remain sub-par and the unemployment rate begin to drift up could also see the bank change its view about the current setting of monetary policy.”
In the Reuters poll, the bank had forecast the unemployment rate to remain at 4.9% in July.
Westpac, which forecasts a rate rise before the end of 2011, expects the unemployment rate to remain at 4.9%.
It says jobs growth of 15,000 in the June labour force release should be enough to hold the unemployment rate flat.
Total job advertising recovered just over half of the 6.5% decline in May, with a rise of 3.7% in June, Westpac noted.
“To some extent this was a disappointing result suggesting the drop in job advertising in May could be indicative of weaker economic conditions overall rather than just the effects of the Easter/ANZAC Day extended long weekend, which was combined with school holidays,” says Westpac senior economist Justin Smirk. Aussie Home loans founder John Symond has also weighed into the interest rate debate, warning a further rate rise could trigger a recession.
“There are many reasons why the Reserve Bank should not lift rates, perhaps the most important being the fact that the non-mining economy is slowing, with retail sales and consumer confidence down,” Symond says.
“We are currently seeing a two-speed economy and many non-mining industry sectors are suffering.
“As a result, one or two more rate rises could well tip Australia into recession,” he says.
Out of 22 economists surveyed by Reuters, only one from Goldman Sachs expected interest rates to remain unchanged by the end of 2011.
Of the remaining 2o economists (excluding ANZ, given its new forecast), nine expect rates to be at 5% by year-end while 11 anticipate two rate rises to 5.25% this year.
</body></html>

ANZ predicts no rate rise until February 2012

<html><body>
Only 1394 new private homes in NSW were approved for construction in May this year according, to latest Australian Bureau of Statistics figures.
That represents a seasonally adjusted 27% decline in NSW approvals since March this year and follows a 13.5% fall in April.
The May figure is the second worst May approval figure in ABS record-keeping history according to lobby group the Urban Taskforce.
 
Approvals for private sector detached houses increased by a seasonally adjusted 3% in May but that was nowhere near enough to offset a big drop in higher density home approvals.
“In May NSW saw a seasonally adjusted 35.7% drop in higher density home approvals following a 22.2% in April,” Urban Taskforce chief executive Aaron Gadiel says.
“All up that’s a 50% drop in seasonally adjusted approvals for apartments and townhouses in just two months.
“In seasonally adjusted terms May was the worst month for NSW higher density home approvals since February last year.”
In the light of the figures Gadiel says the NSW Government may need to bring forward plans to review the state’s planning system and development levies.
According to Gadiel approval numbers are strong indicators of likely construction activity in around 18 months’ time.
“If these numbers do not improve the state’s housing supply and construction workforce may face greater difficulties in the not too distant future,” he said.
The decline in NSW home approvals led a 7.8% national decline in May.
Victoria’s private sector home approvals fell by a seasonally adjusted 18.4% in May but the state still recorded its second best May in ABS record-keeping history.
Queensland recorded a 3.4% seasonally adjusted increase after a 34.3% correction in April, but neither of those increases were strong enough to make up for the decline since May last year.
National seasonally adjusted approval figures for private sector detached houses remained flat in May but higher density approvals fell by a massive 20.1%.
Victoria saw a seasonally adjusted 45.8% drop in private sector higher density approvals which followed 21.5% and 53.9% increases in the previous two months.
NSW saw a seasonally adjusted 35.7% drop in higher density approvals after a 22.2% drop in April.
In trend terms NSW’s private sector home approvals declined for four straight months, Victoria’s fell for eight straight months, Western Australia’s dropped for five straight months and Queensland trended positively in May for the first time in five months.
“If the Federal Government’s unable to pursue policies that will dampen interest increases then it must urgently act to reduce the costs of supplying new homes,” Gadiel says.
 “Otherwise the nation’s supply of new housing will literally dry up before our eyes.”
</body></html>

NSW new home approvals near record low

<html><body>Retail rental vacancies in Melbourne's iconic laneways and arcades have fallen to just 0.8% in the first quarter of 2011, according to the latest City of Melbourne Property Watch report.</body></html>

Big squeeze on Melbourne laneway retail vacancies

<html><body>The number of mortgage broking firms operating in Australia has contracted by 26% in the year to March 2011 but lending activity has increased by 18%, according to new figures from Market Intelligence Strategy Centre. 
</body></html>

Brokers drop 26% as value of loans written drops $2.7 billion

<html><body>
Investors in stand-alone retail warehouses are set to benefit from a battle for the hardware market between Woolworths and Bunnings, according to Colliers.
Woolworths is taking on Bunnings with its new Masters hardware stores.
It has reportedly secured 80 sites so far, with about 14 stores currently under construction.
Between 10 and 20 Masters stores are anticipated to be operating by 2012.
Woolworths’ entry into the hardware warehouse market will see it compete not only with Bunnings, but with Mitre 10, IKEA, Harvey Norman and Costco for prime warehouse locations.
This is expected to put upward pressure on property and land prices as retailers search for warehouse-sized blocks.
Over the medium term Colliers is forecasting a trend towards increased rental and values associated with these developments.
According to Colliers there is already “fierce competition between market participants, [who often pay] premiums for sites to ensure they lock their competitors out of certain locations”.
“The entry of Woolworths is likely to be a positive for property markets and investors in this type of asset, as it broadens the pool of potential tenants and provides a strong lease covenant,” says Colliers director of research and author of the retail forecast report, Nora Farren.
“The presence and activity of two large players in the market should also improve the depth of the market, and evidence for rental and property values.”
The hardware sector has also benefited from reduced competition from residential developers over the past few years due to funding difficulties, allowing hardware retailers to target these sites.
The Woolworths stores will cost between $20 million and $25 million to establish, depending on whether they are purchased or leased.
Masters stores will comprise an average 13,500 square metres of retail and will stock traditional hardware items, kitchen appliances, whitegoods, light fittings, floor coverings, window treatments, outdoor furniture and children’s play equipment.
The first Masters store will be in Braybrook in Melbourne’s west and is scheduled to open in September or October, 2011.
The battle between the retailing giants comes as demand for renovation materials looks strong.
While residential building activity continues to slump (forecast to fall 13% up until 2011/12) the renovations segment of the housing market to be in “reasonably fit shape”, according to the HIA.
It is forecasting renovations growth of 2.7% in 2011/12 and 4.6% in 2012/13, taking renovations expenditure to just over $33 billion – a record high for renovations expenditure since 2004/05.
Woolworths is targeting urban fringe locations in Victoria and Queensland for its stores, while Bunnings is expanding into inner city and suburban markets, with the focus on NSW, traditionally the domain of independent operators.
This year Metcash committed to a new 82,000-square-metre facility for its hardware business at the Bungarribee industrial estate, in Huntingwood, Western Sydney.
Danks has announced plans for a new 50,000-square-metre Victorian distribution centre at Hoppers Crossing. The new facility more than doubles its previous capacity.
The strong outlook for hardware warehouses will boost the bulky goods property sector, which has struggled in 2011.
NAB rated bulky goods the worst-performing retail property sector in all states in its March 2011 quarterly report.
</body></html>

Hardware battle to push up warehouse prices: Colliers

Eddy Haddad's <a href="https://www.apartments.com.au/developers/level-33">Level 33</a> is levelling up its approved Wollongong development, as the coastal city south of Sydney continues to prove popular in the high-density development space.

Level 33, a longtime developer in the Wollongong area, has gone through the NSW Government's Housing Delivery Authority to upsize its approved two-tower development on the corner of Crown Street and Gladstone Avenue, just 100 metres from Wollongong Station.

The developer currently has approval for 252 apartments across two buildings rising to 19 storeys. It is now seeking approval for 33 and 38-storey towers that would deliver 467 apartments, including 67 affordable homes.

Designed by <a href="https://www.apartments.com.au/architects/bka-architecture">BKA Architecture</a>, the development would comprise apartments above a three-level podium with around 1,100 sqm of retail space, along with basement parking for 448 vehicles.

According to the Urban Design Report by BKA, the proposal has the capacity to "reinforce the precinct's identity by strengthening links between health, education, and transport services, while also contributing to Wollongong's ongoing evolution as a key regional centre."

Wollongong is somewhat in vogue. Between Level 33 and Urban Property Group, the two developers have several thousand apartments planned across the city.

Level 33 is currently delivering Easterly Wollongong, one of its most boutique projects to date with just 21 high-end apartments, as well as Atchison &amp; Kenny, a 329-apartment development due for completion later this year. The developer also plans to redevelop the 13,088 sqm WIN Grand megasite into a new $500 million precinct with nearly 600 apartments and has more than 900 apartments planned for the former Bunnings Warehouse site at the intersection of Gipps and Flinders streets.

Urban Property Group is also playing a major role in the city's transformation. Its five-tower Keira Place precinct will deliver more than 800 homes, and it has recently lodged plans for a further 300 apartments near Wollongong Station.

Joel Robinson

First look: Level 33 upsizes Wollongong apartment towers

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>

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.

Larry Schlesinger

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News