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Westpac, AMP and ING Direct are among a number of lenders that have lowered their fixed interest rates in the last month.
The moves downward come as more borrowers opt to fix their repayments in anticipation of future rate rises.
The RBA is expected to keep rates on hold at its July 5 monetary policy meeting.
According to Mortgage Choice, the popularity of fixed interest rate <a href="https://www.mortgagechoice.com.au/">home loans</a> hit their highest level in five months in June, reaching 12.3% of all approvals, compared to 11.6% in May and a one-year moving average of 9.5%.
Constant speculation about interest rate rises in the latter half of 2011 and beyond may have convinced a higher number of borrowers to lock in their rate “rather than feel their stomach churn with each piece of speculation,” according to Mortgage Choice.
Every state apart from SA saw a rise in popularity for fixed rate loans. The largest increase in interest came from WA, where demand rose from 9.4% in May to 14.2% in June.
There is now only one tenth of a percentage point difference between the average three-year fixed rate – traditionally the most popular fixed rate product – and the average basic variable rate.
Newcastle Permanent Building Society has made the most recent changes to fixed rates loan.
From July 4, its two-year fixed rate loan reduces from 7.19% to 7.09% and its four-year fixed rate loan drops from 7.69% to 7.59%.
On June 27, Westpac cut rates on nine out of ten of its fixed rate products, the biggest cut coming to its two-year fixed rate mortgage which reduced from 7.39% to 7.29%.
The Commonwealth Bank has also cut rates on a variable rate mortgage, announcing on June 24 it had reduced the interest rate on its no-fee variable interest rate home loan by 13 basis points to 7.11%. Ongoing discount loans remain the most popular choice among borrowers (32%) followed by standard variable rate mortgage (25% of all loans) and basic variable mortgages (21%)
According to Mortgage Choice, a range of good ongoing discount rate home loan deals still available to borrowers account for overriding popularity of that product type.
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lschlesinger-FZcF9M3vE6

Lenders continue to cut fixed rates

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Former Westpoint directors Norman Carey and Graeme Rundle, of Perth, Western Australia, have been charged in the Magistrates Court in Perth on two criminal charges each, brought by ASIC.
ASIC alleges they contravened sections 184(2)(a) and 601FD of the Corporations Act.
Specifically, ASIC alleges that in January 2006, Carey and Rundle breached their duties as officers of Westpoint Management Limited and Westpoint Corporation Pty Ltd and that “these breaches occurred when they executed deeds extending the time for Westpoint Corporation Pty Ltd to exercise an option to purchase the Warnbro Fair Shopping Centre and adjoining land (WFSC)”. ASIC alleges the breaches also involved transfer of the option to purchase WFSC to Bowesco Pty Ltd, a Carey family trustee company.
Each charge carries a maximum penalty of five years’ jail. At the time of the alleged offences, Carey and Rundle were officers of Westpoint Management Limited, the responsible entity for the managed investment scheme Warnbro Fair Syndicate, which owned the WFSC. They were also officers of Westpoint Corporation Pty Ltd. The Commonwealth Director of Public Prosecutions is prosecuting the matter, which returns to court on July 15, 2011. On Friday, June 24, 2011, a jury found Graeme Rundle guilty on two charges of making false or misleading statements to a financial institution in support of a $71 million credit facility application to fund a Westpoint building of the Scots Church project in York Street, Sydney. He will be sentenced in respect of the Scots Church project in the District Court of NSW on August 12, 2011.
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ASIC brings  charges against Wespoint duo

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Property developer Stockland has added 376 independent living units to its retirement portfolio following the purchase of three villages for $22 million.
All three – two in Queensland, one in the ACT – have been purchased from the Retirement Villages Group.
The biggest acquisition is Pine Lake village, located at Elanora on the Gold Coast, which has 147 units.
It has also purchased the 5.4-hectare Ridgecrest village at Page in Canberra, which has 126 units and marks Stockland’s entrance into the local ACT retirement market.
The remaining purchase is Greenleaves, in Upper Mount Gravatt south east of Brisbane, which has 103 units.
The acquisitions take Stockland’s portfolio taking the total number of independent living units and serviced apartments to 7,403. This is in line with Stocklands “three R” strategy of investing in residential, retail and retirement.
In November 2010, Stockland acquired retirement village operator Aevum for $266 million, doubling the size of its retirement living business in the process.
With the integration of the Aevum business almost complete, CEO of Stockland Retirement Living David Pitman says the company is in a position to purchase selectively targeted villages without a significant increase to its overheads.
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Stockland buys retirement villages in Queensland and ACT

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Real estate institutes have expressed concern that a national licence for real estate agents, due to commence on July 1, 2012, will lower industry standards.
 
Development of the national real estate licence forms part of the Council of Australian Governments’ project to develop a national licensing system across a range of licenced professions.
The aim of the project is to remove inconsistencies between states and territories and to enhance consumer protection.
Under the proposed scheme, the education requirement is likely to be a Certificate IV course, which can be completed in two days.
If this were to be adopted, it would lower the diploma requirement already in place in Western Australia, Northern Territory, Tasmania and South Australian.
Strongest reservations have come from the Real Estate Institute of Western Australia, where a WA Upper House committee looking into the state legislation required to meet the Commonwealth’s request recently rejecting the COAG proposal.
REIWA president Alan Bourke says on the face of it the proposal makes good sense, but if you look at the details, it will have the effect of “watering down” existing high standards and lowering the benchmark for training and for ongoing professional development.
The institute is demanding a diploma level for licensing, compulsory continuing professional development; and licensing required for commercial agency work.
Tim McKibbon, CEO of the Real Estate Institute of NSW, says industry consensus has not yet been reached on what the minimum licensing requirements should be.
But he says current entry level requirements in NSW are too low.
“You can do a two-day course over a weekend to become a licensed agent in NSW,” he says.
“Standards need rise considerably to maintain the integrity of the profession and for consumer confidence.”
REIA acting president and chairman of the Queensland institute Pam Bennett says it is imperative that “standards are not lowered for the sake of political expediency”.
"Buying a house is the single biggest investment most Australians will make. The REIA is adamant that the key to providing a low-risk professional service to home buyers is through mandating a high level of initial qualification and ongoing professional development.
“The REIA also believes that with more and more individuals having exposure to commercial real estate, either directly or through their superannuation fund, it is imperative that commercial agents are included in the national licensing system.”
Victorian institute CEO Enzo Raimondo welcomes a national licensing scheme as long as it does not result in the removal or reduction of licensing requirements.
“The move to a national licensing regime is about reducing red tape and building a seamless national economy. Reducing or removing licensing requirements is neither compatible with nor necessary to achieving that aim,” he says.
Speak in her capacity as REIQ chairman Bennett says the standard of assessment and quality of training from some training providers should be examined to “ensure newcomers to the profession learn the skills and knowledge required to not only succeeds in real estate, but to function professionally and within the multitude of laws that govern our industry”.
The government is currently preparing a consultation regulation statement on national licensing for the real estate profession.
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Real estate institutes fear mooted licensing scheme will lower standards

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Buying a new home in Western Australia is “akin to navigating a plane through the volcanic ash cloud emerging from a vociferous eruption”, according to the Housing Industry Association.
This dire analogy follows news that new home sales in WA decreased by 6% in May (compared with a national of -2.4%) to what the HIA says are “dangerously low volumes”.
Over the three months to May 2011, new house sales in WA have fallen 5.2% on the previous quarter.
“Housing affordability has deteriorated in Western Australia in recent years in the face of, among other factors, inadequate land supply and a consequential sluggish rate of new home building,” the HIA’s May 2011 quarter new home sales report says.
“If any inroads are to be made on the Western Australian affordability dilemma, policy action is required to provide a shot of adrenalin in addition to longer-term reform.”
The May 2011 decline in new home sales is led by NSW, where new home sales have fallen by 7.8%. However, the state recorded growth in new home sales for the six consecutive months.
New home sales in NSW are up 21% in the May quarter, compared with the previous quarter.
The outlook for NSW new home sales is poor, given uncertainty over interest rates
“New South Wales desperately needs to maintain upward momentum in new home sales, and secure a pattern of consistency. Failure to do so will only see a worsening of the housing shortage and ongoing deterioration in already poor affordability conditions,” the report says.
“Expediting land supply, hastening building approval processes and reducing excessive new infrastructure taxation would go a long way toward this.”
Victorian new home sales have also declined sharply in May – down 6.7%.
The HIA calls this result a “discontinuation of a heartening upward trend in new home sales”. For the May 2011 quarter, though, Victorian new home sales are up 7.8%.
In South Australia, new home sales have fallen 3.2% in May, the seventh consecutive month of declines. They are down 13% for the May 2011 quarter.
“New [South Australian] home sales continue to stumble in the face of some formidable headwinds. The foremost headwind would no doubt be above-average bank lending rates, combined with ongoing rhetoric suggesting the need for more hikes this year,” the HIA report says.
“However, the second-most influential factor keeping activity down is credit constraints. Small to medium developers are struggling to acquire finance from a reduced volume of bank lenders who, in fact, have a very low appetite for debt in the property industry at this present time.”
Sales of detached houses increased by 19% in Queensland, but from a very low base. For the quarter they are up 5%.
The HIA says the Building Boost Grant of $10,000 announced in the Queensland state budget for those households who build or buy a new home bodes well for some rallying in new home sales in the final months of 2011.
“However, given the policy won’t be introduced until August “it’s likely to be really tough going for the new home building industry at least until the fourth quarter of this calendar year,” it says.
National unit sales continue to be volatile, up by a healthy 23.3% for the month but still down 8% over the three months to May.
Nationally, combined new homes and units sold in May 2011 eased by 0.2% to leave sales volumes well down on their average for the last twenty years.
"Leading indicators of new home construction are universally weak and unfortunately the May update for new home sales is no exception,” says HIA chief economist Harley Dale.
“The combination of supply-side obstacles which include a lack of available finance, and softer demand which is not helped by incessant chatter about a fictitious house price bubble, is reflected in new home building indicators being well down,” he says.
“In the absence of policy action it is hard to see this situation turning around in the foreseeable future.”
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WA new home sales volumes at dangerously low levels : HIA

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Dixon Advisory’s US Masters Residential Property fund has bought 19 properties in New Jersey for a combined price of about US$3.8 million (A$3.54 million).
The fund listed on the National Stock Exchange on June 29 and has been trading at $1.61 a share following a listing price of $1.60.
Managing director Allan Dixon tells Property Observer the properties have net yields around 11%, well above the fund’s 8% target yield.
The average purchase price is $200,000, with cheapest property costing $125,000 and the most expensive in the low $300,000 range.
The purchases are expected to be settled on July 10.
“They are all two family duplexes. Some are side by side, others are one floor above, one floor below,” Dixon explains.
The free-standing properties are non-strata, requiring purchase of all sub-divided units.
The fund is currently negotiating on a further 27 properties in New Jersey.
<a target="_blank" title="Dixon Advisory snaps up properties in New Jersey" href="https://www.propertyobserver.com.au/news/australian-investment-fund-snaps-up-19-properties-in-us-state-of-new-jersey/2011070150672">It has close to $70 million worth of investor capital at its disposal to invest in residential properties in areas within commuting distance of Manhattan, in New York.</a>
Dixon says the fund will look to make further purchases in the New Jersey area as it looks to take advantage of property management economies of scale.
Dixon says favourable tenancy rules as well as the “good gentrification potential” are some of the reasons that attracted the fund to the New Jersey market.
“We looked at Boston, Washington, Baltimore, but kept coming back to New York. It has the best metrics: strong employment growth over the last year, it is a service-based economy and is looking very robust.”
Dixon Advisory has set up an office in New York, run by local property experts, to undertake due diligence on potential property purchases.
The fund’s managing director Alex MacLachlan hails from New Jersey.
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Australian investment fund snaps up 19 properties in US state of New Jersey

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The central Queensland coastal town of Gladstone, 550 kilometres north of Brisbane, is emerging as a property investment hotspot, according to the May quarter Midwood report.
Median house prices in Gladstone have increased 8% over the year to March 2011 to $395,000, compared with flat house prices in nearby Bundaberg over this period and a 2% decline on the Fraser Coast.
Vacancy rates have tumbled in Gladstone falling from 4.1% in March 2010 to just 1.4% in 2011, and rents have gone up for all categories of housing.
According to the July Herron Todd White report, “soaring rents [in Gladstone] are still attracting investors into the market, with very good yields currently available”.
“The Gladstone residential market continues to perform strongly with values still climbing, and heightened activity due to the announcement of major LNG projects in October 2010 and January 2011,” the report says.
“Modern properties are still in high demand and are obtaining the best yields, especially when furnished. There are still opportunities to make a profit in the construction of new dwellings, with end values generally exceeding the total of construction and land costs.” 
Changes in median weekly rents (March 2010 quarter to March 2011 quarter)
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="123">
 
</td>
<td valign="top" width="123">
One-bedroom flat
</td>
<td valign="top" width="123">
Two bed-room flat
</td>
<td valign="top" width="123">
Three-bedroom house
</td>
<td valign="top" width="123">
Four-bedroom house
</td>
</tr>
<tr>
<td valign="top" width="123">
Gladstone
</td>
<td valign="top" width="123">
+6% ($190)
</td>
<td valign="top" width="123">
+22% ($280)
</td>
<td valign="top" width="123">
+26% ($360)
</td>
<td valign="top" width="123">
29% ($450)
</td>
</tr>
<tr>
<td valign="top" width="123">
Mackay
</td>
<td valign="top" width="123">
+9% ($250)
</td>
<td valign="top" width="123">
+7 ($300)
</td>
<td valign="top" width="123">
+4% ($390)
</td>
<td valign="top" width="123">
+4% ($480)
</td>
</tr>
<tr>
<td valign="top" width="123">
Bundaberg
</td>
<td valign="top" width="123">
-9% ($155)
</td>
<td valign="top" width="123">
0% ($200)
</td>
<td valign="top" width="123">
+2% ($265)
</td>
<td valign="top" width="123">
-2% ($310)
</td>
</tr>
<tr>
<td valign="top" width="123">
Queensland
</td>
<td valign="top" width="123">
2% ($255)
</td>
<td valign="top" width="123">
0% ($310)
</td>
<td valign="top" width="123">
2% ($330)
</td>
<td valign="top" width="123">
1% ($390)
</td>
</tr>
</tbody></table>
Source: Midwood Report 2011
Gladstone is set to benefit from big energy, mining and infrastructure projects scheduled to commence in the region over the next 10 years.
These include a $41 billion coal mining project scheduled from 2011 to 2020, a $75 billion energy project scheduled from 2011 to 2017, a $7 billion rail project (2011 to 2014) and an $8 billion port project (2011 to 2020).
According to the Midwood report, property developer Devine will next year commence building a $1.4 billion master planned community just outside of the Gladstone CBD.
The 496-hectare site, to be developed over the next 12 years, will include 2,900 dwellings for up to 7,500 residents, an education campus, a mixed-use commercial zone and 182 hectares of open space
On June 24, the Gladstone Regional Council announced it had approved a 63-unit development on Glenlyon Street, which it says “will help ease the housing stress being experienced in the city”.
The “G60” development is being undertaken by developer Stokeston.
According to Council Development Portfolio spokesman Craig Butler, the approval will add to the residential options available within the region, “particularly when considering that, at the end of the March 2011 quarter, there were in excess of 4,500 residential lots approved for subdivision and in excess of 550 units approved”.
"With the number of dwellings approved this year already exceeding the total number approved in the whole of the 2009 calendar year, being in excess of 400 houses currently under construction, the amount of residential activity is certainly on the rise.” 
The population Gladstone increased by 3% from 2009 to 2010 to 50,158. In the 2006 census, the population was recorded at 28,808.
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Gladstone becoming an investor hotpsot: Herron Todd White

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The mortgage lending market remains flat, according to the latest RBA data.
Housing loans to owner-occupiers by banks and other lenders rose 0.5% in May 2011, up from $829.1 billion in April 2011 to $833.4 billion, on a seasonally adjusted basis.
Commenting on the latest data, Westpac says widespread flooding in Queensland early in 2011 disrupted activity and slowed housing credit growth.
“The outlook for housing credit is lacklustre,” the Westpac Bulletin says. “Housing affordability is a constraint, households are looking to pay down debt and interest rates are a headwind.”
Aggregate loans to investors rose 0.4% from $354.4 billion in April 2011 to $355.7 billion in May 2011.
According to Westpac, since April 2010 investor credit growth has slowed against the backdrop of moderating house prices.
Overall, housing credit increased by 0.5% during May 2011, a small increase on the 0.4% recorded in the preceding months of April and March.
During the year to May, housing credit has increased by 6.2%, the slowest nominal annual growth rate since 1976 and down from 8.3% a year ago.
Business credit rose by 0.1% over May, after falling by 0.5% during April. Over the year to May, business credit has declined by 1.5%.
Total credit provided to the private sector by banks and other lenders rose 0.3% in May, after no increase was recorded in April.
For the year, total credit growth stands at 3.1%, less than a third of the average growth rate of 10.9% recorded over the preceding decade.
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Mortgage lending remains flat

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A heavily discounted share price makes property developer Mirvac a likely target for a takeover bid, according to John Kim, a property analyst at Asian investment firm CLSA.
Kim says takeover bids could come from private equity, an Asian developer or property group Lend Lease.
According Kim, Mirvac’s securities are currently trading at a 20.9% discount to its net tangible assets, compared with a more modest 4.7% discount for competitor Stockland.
Furthermore, Mirvac offers stronger earnings growth potential than Stockland, with three-year earnings per unit compound growth rate of 5.9%, compared with 1% for Stockland.
Morgan Stanley analysts come to a similar conclusion about Mirvac’ share price, discounting it at 19.6% to net tangible assets with Stockland at a discount of 5.5%, according to it June property market research report.
However, Morgan Stanley forecasts Stockland’s EPS yield for the next 12 months at 9.7%, compared with 9% for Mirvac.
News of a possible takeover comes soon after Mirvac wrote off $80 million on its balance sheet as a result of flood damage to its Tennyson Reach residential development on the Brisbane River.
Kim says Mirvac, which holds 46% of its assets in offices, will benefit from a recovery in the office market over the next three years when vacancies drop to 3% in Melbourne and 4% in Sydney by 2014, The Australian reports.
He also expects Mirvac to continue to benefit from strong demand for central city apartments, citing the recent brisk sale of units its ERA project in Chatswood, North Sydney.
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Mirvac touted as possible takeover scenario

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Darwin is currently Australia’s best-performing housing market, while Perth’s house price decline continues despite its strong market fundamentals.
Dwelling prices in the Northern Territory capital city increased by 2.1% in the three months to May 2011, compared with a nationwide capital city decline of 1.2% over this period, according to the RP Data?Rismark Hedonic Home Value Index.
For the year to date, Darwin dwelling prices are down by 3.2%, led by a poorly performing units market.
Unit prices are down 6% in May, 2.2% over the May quarter and 5.2% for the year to date, dragging the median price down to $383,500.
In comparison, house prices are up 0.8% in May, up 3.2% for the May quarter and down 1.7% for the year, with the median house price sitting at $497,000.
 
Darwin’s median dwelling price now stands at $460,000.
Darwin currently has the strongest rental market, with gross rental yield of 5.4% for houses and 5.7% for units.
RP Data research director Tim Lawless says the latest index shows that gross Australian apartment yields have now risen to 5%.
Apart from Darwin, unit rental yields are improving for property investors in Canberra (5.4%), Brisbane (5.2%) and Sydney (5.2%).
The worst yields are in Melbourne (4.2%), Adelaide (4.6%) and Perth (4.9%).
Perth recorded the biggest drop in dwelling prices for the three months to May 2011 as capital city prices continue to decline at a greater rate than those in the rest of the country.
Perth house prices are down 4.5% for the quarter to $475,000, and down 5.1% for the year.
The median price of a Perth dwelling currently stands at $462,500. For the year, Perth dwelling prices are down 7.5%.
“Despite what appears to be fairly strong fundamentals, the Perth housing market doesn’t appear to be turning just yet,” Lawless says. “For a city that is recording rapid population growth, low unemployment and a large private capex boom, house prices have nevertheless been contracting since late 2007 after years of above average capital growth in the pre-GFC period
“The critical missing piece of the puzzle seems to be buyer demand.”
<a href="/images/stories/joyejune303.jpg" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/joyejune303thumb.jpg"></a>
For the three months to May, Hobart’s dwelling prices declined by 1.9% ($315,100), Melbourne’s by 1.8% to $500,000, Brisbane’s by 1.4% to $425,000, Adelaide’s by 1.3% to $382,500 and Canberra’s by 0.7% to $483,750.
The Sydney housing market remains flat, declining just 0.1% in the May 2011 quarter to $522,000. For the year to date the market is up 1%, the only capital city to record positive growth for 2011.
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Darwin bucks national trend of falling house prices: RP Data-Rismark

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

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