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Offshore Asian investors as well as the local wine industry are eyeing up the collapsed Pettavel and Strathmore vineyards being sold by Knight Frank agents Michael Hede and Leigh Morris on behalf of receivers.
Hede expects a price of between $5 million and $6 million for the historic Pettavel Vineyard and between $2 million and $3 million for the Strathmore Vineyard, both about 70 kilometres from Melbourne.
The vineyards, up for sale by expression of interest by July 13, are available for purchase in one line or separately.
Hede and Morris were appointed by receivers PricewaterhouseCoopers three weeks ago to sell the vineyards, which continue to trade.
<img src="/images/stories/pettavel.jpg">
Pettavel (pictured above), located at 65 Pettavel Road, Waurn Ponds in Geelong is a 45-hectare winery, vineyard and 915-square-metre restaurant. It features 12.5 hectares of shiraz vines and a 6.4-hectare olive grove.
<img src="/images/stories/strathmore.jpg">
Strathmore (pictured above) at Muhlebach Road, Sutherland Creek, is a 129-hectare vineyard with two renovated residences and three kilometres of waterfrontage on the Moorabooi River.
Hede sold a 40.5-hectare winery in the Macedon ranges for $1.8 million.
The owners of Pettavel, Mike and Sandi Fitzpatrick, listed the vineyard up for sale in October 2009.
The better price expectations for Pettavel are due to its state-of the art winery facility, which has refrigeration tanks capable of storing 1.5 million litres wine, its cool-climate location and a well-known label.
Pettavel has been producing wines for the Asian market for last five years.
Strathmore’s selling points are its river frontage and the installation of a desalination plant that allows either saline or bore water to be used for irrigation.
Chinese investors have already snapped up red wine vineyards in South Australia and Victoria, with real-estate firm Gaetjens Langley setting up an office Guangzhou to cater for the demand from China.
In April Gaetjens sold a small wine business with vineyard, residence, cellar door and brand in the Barossa Valley for between $2.5 million and $3 million to a Chinese buyer, the AFR reported.
Acton Real Estate also reports fielding inquiries from at least one Chinese delegation a week in Western Australia's Margaret River region.
The expressions of interest come as the Cheviot Kirribilly Vineyard Property Group, which owns 923 hectares of vineyards, reveals it has run out of cash to fund the business and plans to sell six of its vineyards by the end of the year.
An oversupply of grapes is the chief reason for the current challenges facing the viticulture industry.
The 2011 crop of 1.6 million tonnes exceeded market estimates.
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Vineyard sales bring grape expectations from Asian investors

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As we look to what's ahead for 2012, Property Observer is republishing some of our most noteworthy stories of 2011.
 
A three-bedroom pre-built home on stilts costing less than $200,000 will be showcased as a solution to dealing with the threat facing properties in flood-prone regions.
The model home will be promoted to governments and consumers as an affordable and appropriate form of construction in flood-prone areas.
Designed by Brisbane architect Dion Seminara, it was the winning entry of the LJ Hooker Flood Home Design Competition, which was co-sponsored by L J Hooker, industry think tank the Future Housing Task Force and the Australian Institute of Architects’ Archicentre.
It comes in the wake of the wake of the December 2010/January 2011 Queensland floods and cyclone, which left the state with a $6.8 billion damage bill, and a report by the Australian Department of Climate Change that says up to $63 billion worth of existing residential buildings are at risk of flooding this century.
The house features a flood clearance level of 4.5 metres above the first floor, allowing floodwater to flow through the building without placing pressure on the structure.
The ground floor is constructed out of materials and finishes that can be hosed down without damage and is suitable for both urban and bush environments.
The home is designed to be built offsite and transported in two parts.
“One of the main aims of the design was to provide for an easy clean-up after the flood, with a flexible multipurpose use of the ground level for vehicles or storage,” Seminara says.
“The concept home is built on posts, making it suitable for any sloping site, and has the flexibility to be expanded through interlocking pavilion extensions.”
Besides these features, Seminara’s winning entry also met the following requirements:
<ul>
<li>Successfully integrate flood resistant, energy efficient and sustainable design.</li>
<li>Meet or provide a well-substantiated challenge to requirements set by the Building Code of Australia along with local and statutory authorities.</li>
<li>Provide three bedrooms and not exceed 220 square metres in size.</li>
<li>Provide undercover accommodation for two cars.</li>
<li>Be able to be constructed on a site with up to a 1:4 slope.</li>
<li>Be built from 80% lightweight materials.</li>
<li>Have a construction budget not exceeding $200,000, excluding consultants and authorities fees and permits, site preparation costs, service connections, site allowances, landscaping works and contingency.</li>
</ul>
According to Climate Change Risks to Australia’s Coast, published by the Australian Department of Climate Change as many as 247,600 individual buildings are potentially at risk of inundation in Australia this century.
The winning design will be built as a demonstration project by Ken Mitchell, director of the Queensland Lifestyle Development Group.</body></html>

Flood-resistant house can keep high and dry

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Support is growing for listed property trust managers to link the fees they charge investors more closely to the performance of their trusts.
The latest to criticise the current fee system is Bill Moss, chairman of Moss Capital, currently locked in the battle to acquire management control of the $3.63 billion Charter Hall Office REIT.
Moss says he will cut the office trust’s base management fee to 30 basis points from an average of 41 if his company is voted as the new manager at a shareholder meeting scheduled for July 27, 2011.
He argues property fund managers should have cut fees more than they have since the global financial crisis, given the poor performance of the listed property trust sector and rationalisation in the industry, The Australian reports.
ASX-listed Centuria Property, which manages a $1 billion unlisted property trust, agrees fees should be re-evaluated.
It says historically, many funds (listed or unlisted) have been able to charge a “success” fee despite poor performance.
Centuria’s performance fee is only charged subject to investment costs being recovered and a minimum 10% internal rate of return per annum being generated for investors.
The fund is also opposed to what it calls “poison pill” provisions, which require the relevant fund to pay the responsible entity, even if it is removed by a vote of investors before the end of a fund.
Centuria’s funds do not include poison pill provisions, and its CEO believes no reputable fund should.
“Whether a trust is listed or unlisted, these are issues that need to be eliminated,” Centuria CEO John McBain tells Property Observer.
“Performance fees are not being tested.”
Centuria’s position on fees is supported by Property Funds Association of Australia, with CEO Geoffrey Gedge saying they will “restore faith with investors”. 
Bianca Rose, portfolio manager of equities and property at Ibbotson Associates Australia, says excessive management fees are part of the reason A-REITs have performed poorly since the outbreak of the GFC.
“There were many reasons why A-REITs performed so poorly: too much debt, paying out unsustainably high dividends, paying expensive management fees to related companies, and sourcing earnings from newer, less stable income sources rather than from traditional Australian property rental,” Rose writes in an ASX investor update newsletter.
Rose says the sector has now recovered and performance prospects are excellent.
“The sector is likely to be one of the most attractive growth asset classes over the next five years on a risk-adjusted basis,” she says.
Moss is battling three hedge funds Orange Capital, Luxor Capital and Point Lobos Capital for control of Charter Hall Office Trust, which hold a combined 19% of the trust’s units.
Moss established the business as the Macquarie Office Trust 1987, before it was taken over by the Charter Hall Group in 2010.
The Charter Hall Office REIT portfolio is made up of 33 office buildings in major business districts across Australia (62%) and the United States (38%).
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Support grows for performance-based A-REIT fees

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Investors should be looking at the Perth, Brisbane and Sydney housing markets, according to forecasts by BIS Shrapnel.
House prices are forecast to rise by between 15% and 19% in these capital cities by June 2014, led by Perth.
BIS Shrapnel predicts Perth median house prices will rise by 19% from the current estimated June 2011 median price of $480,000 to $570,000 by June 2014.
Sydney house prices are predicted to increase by 18% over this period, from $640,000 to $755,000, and Brisbane is forecast to record the third-fastest growth rate of 15%, from $440,000 to $505,000.
The solid growth expectations for Perth, Brisbane and Sydney are forecast on the basis of these markets “currently building new dwellings at well under the level of underlying demand” combined with relatively weak price growth in recent years, the company says.
Rental stock is expected to tighten notably in Brisbane and Perth, “which will create a flow-on effect to upgrader demand,” says BIS Shrapnel senior manager and study author Angie Zigomanis. “With economic conditions and income growth to be strongest in Western Australia and Queensland (and to a lesser extent New South Wales), this should underpin moderate price rises averaging 5% to 6% per annum in the three years to June 2014,” he says.
<img src="/images/stories/bisshrapnel.jpg">
House prices in all the other capital cities are forecast to grow by less than 10%, with BIS Shrapnel expecting Melbourne house prices to grow notably slower than the rest of the east coast market –just 6% by June 2014, from $575,000 to $608,000.
Only the currently flat Hobart market is predicted to grow at a slower rate than Melbourne – just 5% over the next three years, from $365,000 to $385,000.
The modest outlooks for Melbourne, Adelaide, Hobart, Canberra, and Darwin are a result of affordability in these markets at close to long-terms lows and construction currently exceeding underlying demand.
According to BIS Shrapnel, prices levels in these centres will be underpinned by strengthening economic conditions, “although there is very little upside, given the diminishing pent-up demand,” Zigomanis says.
The median house price in these centres is forecast to rise 1.5% to 2.5% per annum over the next three years and to record declines in real terms.
Average median house price growth across the eight capital cities to June 2014 is forecast at 10.75% on the back of the resources boom and employment growth.
Zigomanis calls current market conditions “just a lull or a pause”.
“Economic growth is forecast to regain traction through 2011 and continue to accelerate in 2012 and 2013 as resources investment flows through to the rest of the economy,” he says. “Strengthening employment growth – the unemployment rate is forecast to fall below 4% in 2013 – will also see net overseas migration inflows turn around, and the underlying demand for new dwellings begin to rise. With new dwelling starts currently declining, the corresponding fall in completions means the underlying deficiency of dwellings nationally will increase.
“This will underpin the strength of residential conditions, causing rental markets to tighten and rental growth to pick up, particularly in those markets where it has been weakest in the last couple of years,” he says.
Another factor contributing to improving market conditions will be a correction in first-home buyer demand, “which should begin to revert back to long-term averages as the ‘pull forward’ effect is worked through”. Although interest rates are forecast to rise further, Zigomanis says historically this is not inconsistent with rising first-home buyer demand.
Zigomanis says the drop in demand from first-home buyers has bottomed out and should slowly improve over the year. 
BIS Shrapnel is forecasting a 50-base point rise in the cash rate in 2011-12.
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Perth, Sydney and Brisbane best short-term investment prospects: BIS Shrapnel

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Mirvac has taken an $80.8 million balance sheet hit as a result of the Brisbane floods.
The listed property developer has announced a downgrade of its December 31, 2010 half-year results due to the impact of the floods on its $290 million Tennyson Reach residential development on the Brisbane River.
As a result of the sustained impact of the floods Mirvac has revised the carrying value of the development. It has also deferred development of the undeveloped portion of the site and will seek to offload it.
The impact on Mirvac’s previously disclosed December 2010 net tangible assets per security will be $0.02. Consequently, Mirvac’s pro-forma December 2010 NTA will now be $1.58.
“Since the January floods, the Tennyson residential market has been characterised by limited transactions, consequential pricing impacts and uncertainty in relation to the outcomes of the Queensland Floods Commission of Inquiry,” Mirvac says in an ASX update.
“The Group's continued assessment of these sustained market conditions has led the Group in taking a conservative approach to the reassessment of the carrying value of Tennyson Reach, including 43 unsold apartments and remaining undeveloped land. This has led to a provision of $80.8 million, resulting in zero residual value as at 31 May 2011,” Mirvac says.
Mirvac has also amended the project’s forecast settlement and pricing profile for the unsold lots of Farringford, stage two of development.
In its half-year results presentation on February 22, 2011, Mirvac had settled on 45 of the 92 lots of Farringford and 109 out of 115 of Softstone and Lushington.
Mirvac acquired the Tennyson Reach property in August 2005 with plans to build 185 apartments at a cost of $290 million to be completed between 2013 and early 2017.
In its half-year results presentation on February 22, 2011, Mirvac reported flooding to the basement of the building affecting nine ground-floor apartments and landscaped areas, one of which was still held by the company.
The company says it will spend $3 million to $5 million in the second half of 2011 to reinstate ground-floor flood-impacted apartments as part of its Queensland flood contribution. 
In its June 24 update, the company says it project managed the clean-up and has restored the apartments to their original state from the time when the apartments were finished in 2009. 
Mirvac expects to open the Tennyson Reach sales office before the end of 2011.
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Brisbane floods force $80 million downgrade for Mirvac

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Residential property remains the most valuable asset in Australian investors’ portfolios despite sentiment towards property falling to its lowest level in almost six years.
Investor sentiment towards direct and indirect property investment has fallen 10.2 points in the second quarter of 2011, according to The CoreData Investor Sentiment Research Report.
It now stand at -19.6 on the CoreData Investor Sentiment Index, the lowest point since the research firm started tracking it the third quarter of 2006.
<img src="/images/stories/sentiment.jpg">
Source: The CoreData Investor Sentiment Research Report
 
This well below overall investment sentiment, which fell by 1.7 points in the second quarter from -4.3 to -6.0, indicating that investor confidence has been shaken in recent times.
A score of zero means investors are neutral about the market, a score of 100 is extremely positive and a score of minus 100 is extremely negative.
“Property is incredibly unattractive at the moment,” CoreData principal Andrew Inwood tells Property Observer.
“Investors are only buying where there are discounted opportunities – they expect property to be cheaper in the future than now.
“They’re just buying cash. Nothing is attractive at the moment,” he says.
The third quarter of 2010 was the last positive investment sentiment quarter recorded by CoreData, a result Inwood calls “an anomaly”.
More than half (55%) of the 816 investors who took part in the study believe shares will outperform residential property in the third quarter of 2011, up from 50% who believed shares would outperform residential property in the second quarter.
Despite the pessimistic outlook, in terms of actual value, residential property still has the greatest worth among investments, while savings accounts have the least, the report has found.
However, cash appears to be king.
Around a third (29%) of investors are expected to rebalance their portfolios in favour of cash in the third quarter of 2011, up from just over 22% last quarter, while the number of investors considering Australian equities has fallen from 25% to 21%.
“Investors are clearly fragile and wary of investing as they expect the economy to slow down. It certainly looks like they will be sitting on the sidelines for some time yet,” Inwood says.
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Investor sentiment for property slips

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Commercial property and REITs are becoming more attractive at the expense of residential property for millionaire Asia Pacific investors, according to the latest Merrill Lynch/ Capgemini World Wealth Report.
In 2010, the commercial share of real-estate holdings has risen among high-net-worth individuals (those with those with investable assets of US$1 million or more) from 24% to 37%.
By comparison, residential assets as a proportion of real-estate holdings have declined from 60% to 51%, with REITs making up the balance (up from 12% a year ago).
“Commercial real estate is still perceived as an opportunity in the emerging markets of these regions but is languishing in more developed markets,” the report says.
Overall, real-estate investments make up nearly a third (31%) of the investment portfolios of millionaires in the Asia Pacific, up from 28% a year earlier and far above the 19% global average, according to the report.
“Residential real estate remains especially attractive and lucrative for these HNWIs given the strong fundamentals in the region, where the growing middle classes in emerging economies are straining the relatively tight supply of high-quality residential real estate,” the report says.
Globally high-net-worth investors are expected to decrease their real-estate exposures from 19% to 15%, pushing up their equity allocations. 
Australia ranks ninth on the list of high-net-worth individuals (above Italy), with 193,000 residents making the elite group. This is up from 174,000 in 2009, a growth of 11%
Globally, the wealth of high-net worth individuals has risen to $47.2 trillion, with Asia Pacific millionaire investors accounting for $10.8 trillion, the second-highest behind North America ($11.6 trillion).
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Millionaire investors shift focus to commercial property

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Non-bank lenders are dreading the end to early exit variable mortgage fees ban, which comes into effect on July 1, 2011, following a Senate vote to uphold the ban. 
The ban will make life even harder for struggling non-bank lenders, who have used exit fees to hold onto customers and compete with the major banks.
Non-bank lenders charge an average exit fee – a penalty for customers who leave a lender after the first three or five years of a loan – of $1,900. However, some lenders charge as much as $7,000.
All of the major banks except Westpac have now scrapped their exit fees, which were between $700 and $900. Westpac will have to step into line by July 1.
The market share of non-bank lenders has plummeted since the start of the global financial crisis in 2007, when global securitisation markets – the major source of funding for non-bank lenders – dried up.
The campaign for an exemption to the ban, which the Senate did not agree to, was led by the Mortgage &amp; Finance Association of Australia, which represents non-bank lenders and mortgage brokers.
It claims without exit fees the non-bank lenders will find it hard to compete with banks and that with less competition, interest rates will increase.
"It became clear during our lobbying that there are many in Parliament who share our concerns that the breadth of competition in the mortgage market needs to be enhanced in order to keep interest rates low," MFAA chief executive Phil Naylor says.
"Non-bank lenders are synonymous with bringing down the margin on home loans in Australia.”
The MFAA calls the exit fee ban misguided, quoting its survey of 1,000 borrowers, which found that just 1.7% listed exit fees as a concern.
Mortgage broking franchise Mortgage Choice lists more than 10 small lenders on its panel.
Spokeswoman for the group Kristy Sheppard says smaller lenders do not enjoy the economies of scale of the big banks and exit fees helps them to compete by reducing establishment fees on home loans.
"We are disappointed with the decision because it may have the unintended consequence of reducing competition in the mortgage market," she says.
Other critics of the bank include Aussie Home Loans. Founder John Symond built up the Aussie brand in the late 1990s on the back of securitised funding, which allowed it to offer mortgages at better rates than the major banks.
Not only will this regulation make it easier for borrowers to secure a better loan, but it will make the lending market more competitive, particularly among the major banks. Banks and lenders will now have to offer more competitive rates and conditions in order to secure and maintain borrowers.
In a time when housing affordability is a major issue, this is a positive step forward and will no doubt be welcomed by home owners.
Brent Pullar, estate agent and owner of Harcourts Frankston, says the ban is a positive step forward in a time when housing affordability is a major issue.
Pullar says the ban will make the lending market more competitive, “particularly among the major banks”.
Damian Smith, CEO of mortgage comparison website RateCity, has welcomed the ban, saying it will help some borrowers switch to better deals without being penalised and drive up competition.
However, he has played down the impact of the ban, saying other fees and charges will deter many borrowers from switching, particularly lenders mortgage insurance.
LMI is required for loans where more than 80% of the value of the property is borrowed.
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Non-bank lenders say mortgage exit fees are vital

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The much-besieged Western Australian regional town of Mandurah has claimed the title of Australia’s fastest-growing district, adding 2,805 residents at a rate 3.38% over the last year, according to the latest ABS population estimates
Mandurah, 72 kilometres south of Perth, has attracted headlines of all the wrong kind of late.
It is rated among the 20 worst-performing suburbs across the country in terms of mortgage delinquency rates, according to Fitch Ratings.
Mandurah owners and investors who purchased premium waterfront apartments off the plan during the height of boom are now desperately trying offload them, a report on Perth Now claims.
But strong population growth appears to have helped keep Mandurah house price declines in check.
House prices have fallen by 2.8% over the year to March 2011, according to the REIA Market Facts.
This is significantly smaller than 6.5% yearly price declines recorded for Perth.
According to the ABS figures, Mandurah now has 85,814 people.
From 2005 to 2010 its population has grown at annual growth rate of 4.34%. In June 2005, the town’s population was estimated at 69,407.
The opening of the Perth-Mandurah railway line in December 2007 sparked the initial boom, with the town growing from an isolated fishing community to the second-biggest city in WA and attracting a wave of investors and coastal developments.
Second behind Mandurah is the fellow WA town of Bunbury (growth of 3.25% for the last year, 4.18% annually over the last five years), followed by four Queensland districts – Hervey Bay (3.24%), Cairns (2.59%), Mackay (2.42%) and Tweed (2.40%) on the Gold Coast.
Over the last five years Hervey Bay has had the fastest annual growth of 4.73%, adding 12,547 residents to the coastal town near Fraser Island.
Perth’s recorded the greatest population increase of all the capital cities, increasing by 2.26% for the year to June 2010 and at an annual rate 2.68% from 2005 to 2010 to currently stand at 1,696,065.
Darwin’s population is up 2.1% to 127,532 and has grown at the fastest annual rate over the last five years of 2.77%.
Of the big east coast cities, Melbourne has grown fastest over the 12 months to June 2010, adding 79,014 people (1.98%) for a total of 4,077,036, followed by Brisbane (up 1.94%, or 38,960people), which now has 2,043,185 people, and Sydney (up 1.68%, or 75,644 people), which now has 4,575,532 people.
Adelaide’s population is up 1.27% to 1,203,186, Canberra is up 1.78% to 358,222 and Hobart has grown by 1.27% to 214,705.
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Mandurah population growth helps stem price decline

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Name: Kathy MacDermott Company/organisation: Property Council of Australia Position: Executive director, Queensland branch City of residence: Brisbane No. of years in the industry: 25 years
Kathy MacDermott has traded in a career as a property journalist for one executive director of the Queensland branch of the Property Council of Australia. She is currently lobbying for help for the Queensland market, which is recovering from the devastating floods in early 2011.
 
What sparked your initial interest in property? 
I joined a public relations firm which specialised in property communications. It was the height of the late ’80s boom, and we were working on major projects from Cairns to the Gold Coast, across all sectors. It was interesting, rewarding, and I soon discovered what a dynamic sector property is.
 What was the first property you bought?
A post-war home in 1992
 
Are you a trader or holder of property? 
Holder
So far, who or what has been your biggest influence in your life or career? 
In my life, my husband, who has been the primary carer to our three children and ran our household for the past 14 years. Career wise, Queensland businesswoman Christine Lohman, who introduced me to the world of property and taught me the joy of work! She remains an important friend and mentor to me.
What are the ingredients you need to be successful in the property market? 
 Research and relationships. You need to test out trends and statistics with trusted sources who have worked through a variety of cycles and operate in the market you are investing in.
You worked as a property journalist for 11 years before moving into communication roles and now your role at the Property Council – do you think the media provides fair commentary on the property market? 
Absolutely. We are fortunate in Australia to have extensive, dedicated coverage of the property sector by specialist journalists.
What’s more interesting – writing about property or lobbying on behalf of the industry? 
They both present extremely interesting opportunities. Writing about property was particularly fascinating because of the people you get to meet and interview, and I loved my 11 years in journalism. Now with the Property Council I have the opportunity – and privilege – to advocate on behalf of the industry in Queensland. Our sector is the largest employer and contributor to state revenue, so we play a critical role in the economic wellbeing of the community.
What is your reaction to the recent Queensland state budget? Is enough being done to assist the property market? 
The state budget included a series of initiatives identified by the Property Council. We particularly welcome the stimulus to the new-home market and the creation of the Major Projects Office, which will help attract investment to the state. We continue to advocate for a cut in property taxes and charges – in particular the removal of the “temporary” 0.5% land tax surcharge introduced in December 2008.
Are you bullish or bearish about house prices in Queensland? Why? 
The current market in Queensland reminds me of 1992 when I bought my first home. At this time price growth was slow, but it was a good time to enter the sector. If you buy with a medium- to long-term investment horizon, there are opportunities in all cycles.
If you had a $500,000 to invest right now, where would you invest it? 
A unit in Brisbane’s West End to secure a foothold in this vibrant, inner-city suburb.
Was there ever a dud investment in your property portfolio? And why? 
No, all sound.
What would be your advice to someone buying their first investment property?
Buy in a suburb you know well, as you have a good understanding of values as well as how long it is taking for properties to sell and rent. Take your time. Buy near public transport, shops and primary schools.
What are you reading at the moment? 
Jasper Jones by Craig Silvey
What are you listening to at the moment?
 Bunny (my sister’s band)
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Kathy MacDermott: Property research and relationships the key

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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