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Western Sydney is emerging as speculative industrial development hotspot, according to Joshua Charles, regional director of industrial services at CB Richard Ellis.
Charles says six speculative projects (those not being built for a specific tenant) are now on the go, with most of these occurring in western Sydney. These new developments started four to six months ago, as a year ago there were no speculative projects on the horizon in western Sydney.
Industrial construction is being driven by a lack of available warehouse space at the same time as western Sydney emerges as a logistics and retail distribution hub.
In April, CBRE reported that the supply of large industrial space in western Sydney had all but dried up following supermarket group IGA snapping up 22,750 square metres of space in two separate buildings in the western Sydney suburb of Glendenning and Arndell Park, the Blacktown industrial suburb.
Among the mega projects under construction in western Sydney is Goodman’s 56-hectare Bungarribee Industrial Estate, bounded by the M4 Motorway, Great Western Highway and Brabham Drive in Huntingwood West.
Grocery wholesaler Metcash has signed up for an 82,015-square-metre warehouse and office building on the estate, which is being built over three stages with delivery dates between October 2011 and May 2012.
Other speculative projects earmarked for western Sydney are at various stages of development.
DEXUS Property Group has committed to build a 21,000-square-metre warehouse in Erskine Park, 42 kilometres west of Sydney in the Penrith area and has also lodged plans for a 4,800-square-metre building at Blacktown.
Two projects are proposed for Eastern Creek, 40kilometres west of Sydney. Australand is planning a 21,800-square-metre project, and Goodman has development application approval for a 6,000 sqm facility on ING’s former Interchange Park site
“If the development is on a well-located piece of land, by the time it’s at the lock-up stage, it will have been leased,” Charles says.
Pent-up demand for warehouse space has been building since the end of the GFC.
According to Charles, construction of new industrial space ended in 2007-08. Before the GFC, 100,000 square metres of new industrial space came onto the market every year.
“Demand is building up. If you look at the third-party logistics market, it is undergoing massive growth,” Charles says.
“Buildings that were once vacant are now being leased.”
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Western Sydney emerging as industrial hotspot

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Calls by retailers for a review of the current rental-cost model in Australia as well as for more regulation are not supported by Australia’s biggest shopping centre developers. 
Market forces are driving high rents, the Shopping Centre Council of Australia says in its submission to the Productivity Commission’s inquiry into the retailing industry. 
“Retail rents are the product of market forces, and there is no justification for additional regulation,” the SCCA says. 
The collapsed REDgroup business, owner of Borders and Angus &amp; Robertson book stores, is among those calling for a review of rent models put in place by landlords. 
It identified high rents as a key challenge facing Australian retailers. 
Similarly, in its submission, Myer says Australian retailers pay higher rents than retailers in all the other major countries in the world, in addition to significantly higher infrastructure costs and taxes. 
“As a result, our cost of doing business is higher, and it is harder for Myer and other Australian retailers to compete on a world scale,” Myer’s submission says. 
Such pleas are unlikely to draw much sympathy from the likes of Westfield, Centro and Stockland, all of whom are members of the SCCA. 
According to the SCCA, the high rents charged reflect the “demand for space, the high cost of land zoned for commercial and retail purposes and the high cost of development, construction and maintenance”. 
This high cost, it says, is balanced by “retailers in shopping centres generally being more profitable, based on the much higher turnovers achieved”. 
It also defends the high cost of rents relative to other first-world countries following the April Global Retail Marketview report by CB Richard Ellis, which ranked Sydney as the third most expensive prime retail rental market, with Brisbane and Melbourne ranked eighth and 10th. 
In its submission the SCCA admits that “occupancy cost ratios in US shopping centres are lower than in Australian shopping centres (although not by as much as is commonly claimed)” but says this is “mainly because the amount of competing retail space in the US is around twice that in Australia, on a per capita basis”. 
The SCCA has called for regular reviews of retail tenancy legislation with the aim of removing “unnecessary and counterproductive regulation”. It says a “thorough analysis of costs and benefits” should be undertaken before additional regulation is imposed. 
The SCCA says the Australian retail leasing industry “is very highly regulated by world standards, with substantial protections established for retailers”.
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Shopping centre owners defend high rents

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The outlook for the Sydney CBD office leasing market is strong, with enquiries in the April quarter more than four times the level recorded from June to August 2010, according to the latest CBRE and Property Daily Sydney CBD Leasing Market Report.
Jenine Cranston, CBRE senior director of office services, says the market has rebounded, with enquiries for leasing adding up to more than 200,000 square metres in the first quarter of 2011.
Cranston says the strongest growth was evident at the smaller end of the market, in the 100-square-metre to 500-square-metre range.
“There has also been significant growth in larger enquiries for over 3,000 square metre of space, with a 50% + improvement in the level of enquiry by square metres and a more than 70% improvement in the number of enquiries since quarter one, 2010,” she says
As a result, CBRE forecasts that the increase in new enquiries will translate into a higher level of lease signings over the remainder of 2011.
In February, Rob Dickins, Savills national head of office leasing, forecast continued recovery of the Sydney CBD office market on the back of a strong finish to 2010.
Dickins says confidence and the ability to take advantage of generous incentives drove a number of smaller financial and professional services firms to be particularly active in 2010. The positive outlook comes on the back of 20 new leases being signed in April, compared with just 17 for the first three months of the year. The 20 leases signed in April represent the most activity for a single month since November 2010 and only the third time since August 2008 that 20 or more leases have been signed in a calendar month.
The average size of CBD leases remains low, with the average for April at 912 square metres, compared with the average size of 1,312 square metres in March. The year to date has the lowest average lease size since October 2009.
During the year to April 2011, 24 deals of more than 3,000 square metres were signed, accounting for 144,124 square metres of space. Conversely, 93 leases of less than 1,000 sqm were signed over the period, accounting for just 36,310 square metres.
The finance and insurance sector remains the main driver of demand, accounting for more than a third of gross absorption during the year, with public administration and community services and business services the next biggest contributors.
Major leases signed recently include merged stockbroking group Bell Potter and Southern Cross Equities signing up for 3,000 square metres (floors 37 and 38) of the nearly completed 1 Bligh Street Tower, Sydney.
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Smaller leases drive Sydney CBD commercial market recovery

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Landlords providing student accommodation at the cheaper end of town are unlikely to see an increase in rents, due to a drop in the number of international students undertaking vocational training in Australia.
Figures put out by Australian Education International for the year to March 2011 reveal an overall 8.9% decline in enrolments by full-fee international students on student visas.
Digging deeper, the AEI figures show that demand for vocational education and training visas fell by 21% over the year to March 2011, while higher education visas grew by 3.6% during the same period.
Overseas students enrolling in TAFE courses generally apply for VET visas, while those attending university apply for HE visas.
As a consequence, demand for the cheap housing usually sought by overseas TAFE students has fallen, but the more affluent student market remains buoyant.
This is reflected in the lopsided situation facing student accommodation providers such as Student Housing Australia, which has a portfolio of 2,200 apartments in Melbourne.
The organisation says demand for its apartments near TAFE colleges has dropped, but its apartments servicing RMIT, the University of Melbourne and Monash University are full, with students on waiting lists.
Mark McDonald, director of SHA, places the blame for this not on the high Australian dollar – as many have claimed – but on changes made to permanent residency rules introduced in January 2009.
“The high dollar is not a factor. When the Australian dollar went from 55 cents to 80 cents and then 90 cents, it had no effect on demand,” he says.
What has had the most damaging impact, according to McDonald, are changes made to immigration rules limiting the number of courses that give students extra points towards permanent residency applications.
Obtaining a cooking or hairdressing qualification was once seen as an easy route to becoming an Australian resident, but in January 2009, the Department of Immigration stopped accepting permanent residency applications from applicants who had completed these courses.
And it appears the government has toughened up its policies of late.
In January, TAFE Directors Australia chairman Bruce Mackenzie lamented to The Australian that an easing up of assessments for students applying for higher education courses while maintaining tougher risk assessment for vocational applicants was discouraging overseas vocational students.
The flow-on diminished demand for cheaper housing has caused some landlords to spruce up their properties to appeal to the higher end (and higher education end) of the market.
Ben Bassingthwaite, property manager at Century 21 Westside in Brisbane, who says rents have stalled in lower price brackets, notes an improvement in the quality of student accommodation in Fortitude Valley to appeal to the more affluent end of the market.
“Australian students tend to rent more expensive properties compared to Asian students,” he says. “Overseas students are looking for cheaper accommodation. They are more accepting of smaller rooms and bathrooms.”
McDonald believes the government has shot itself in the foot by changing the immigration rules.
“Because New Zealand has not changed its permanent residency policy, students are now going there to do their vocational training, becoming New Zealand residents and then coming to Australia,” he says.
SHA rents out private studios for between $200 and $350 a week, and students sign year-long leases.
Bassingthwaite says weekly rents in Fortitude Valley range between $100 and $140 a week.
“Ninety dollars a week will get you a fairly rundown room,” he says.
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Immigration changes lead to drop in demand for lower-end student housing

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Dixon Advisory’s US residential property fund has closed with $69.5 million in the coffers, falling just short of the maximum sought of $80 million, but well in excess of the minimum $30 million offer size.

In the last 48 hours before closing, it attracted close to $10 million from investors.

Its US Masters Residential Property Fund is the first Australian-listed property trust with a primary strategy of investing directly in United States residential property.

At the end of May, Dixons had raised $43 million with Alex MacLachlan, its head of fund management, saying the strong Australia dollar was helping things along.

A spokesperson for the fund told Property Observer there has been a wide mix of investors, including self-managed super funds and private investors. 

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US property fund reaches almost $70 million

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Gold Coast unit and townhouse prices have fallen 2.7% to $355,000 in the March 2011 quarter, leading an overall easing of prices in south-east Queensland.
Median unit and townhouse price in Brisbane fell 1.4% to $395,000, while on the Sunshine Coast the median unit price decreased 2.1% to $350,000, according to Real Estate Institute of Queensland’s March report.
Figures compiled by Colliers suggest the outlook for Gold Coast apartments is stronger than that of Brisbane.
By the end of March 2011, 1,334 Gold Coast apartments were available for sale, with 2,665 apartments have received development approval, and a further 2,300 awaiting approval. 
In comparison, the supply of available apartments in Brisbane rose to 2,553 at the end of March, the highest on record, with Colliers noting a softening in demand over the previous six months. Colliers estimates that 4,334 apartments are likely to be released for sale over the next 12 months.
“The underlying fundamentals of the Gold Coast property market remain steady going into 2011… The northern area of the Gold Coast is showing particularly strong population growth, which should have a positive long-term effect on property markets,” Colliers says. 
Looking at Brisbane, the Colliers report says the market could be “adversely impacted by rising interest rates and increasing vacancy in the medium term”. 
“Whilst the vacancy rate for the inner-Brisbane apartment market is currently only 3.1% per cent, there is a substantial volume of investor stock completing and a large number of apartments are expected to be released for sale over the next 12 months. These factors will have a noteworthy impact on vacancy and limit the potential for significant rental growth in many locations,” it says. 
Areas to buck the trend of declining prices, according to the REIQ, were Toowoomba, the Fraser Coast, Rockhampton and the Townsville region – attributed to the construction of new unit or townhouse developments, or the sale of more expensive existing stock, in these areas during the period. 
Rockhampton and Townsville both recorded median price increases of 4.5% during the March 2011 quarter. Higher-priced unit sales in Yeppoon boosted Rockhampton, while sales in new waterfront developments in North Ward and South Townsville underpinned that region’s result during the quarter.
For the region as a whole REIQ agents are witnessing a significant drop in demand compared with the same period last year, creating a strong buyers’ market. 
REIQ chairman Pamela Bennett says many sellers have had to be “very realistic about what price they can achieve in the current conditions if they want to make a sale”. 
In the three months to March, the number of preliminary unit and townhouse sales in Queensland decreased 15%. 
“The unit and townhouse market has been impacted by lower numbers of first-home buyers and investors, who are the type of buyers usually the most interested in this more affordable segment of the market,” Bennett says. 
“First-home buyers continue to languish at about 15% of the Queensland residential property market, while investors appear to have adopted a wait-and-see approach until a clearer picture emerges on interest rates and the economy.  
“The prestige market is also struggling, with the number of preliminary sales of units and townhouses for more than $1 million across Queensland dropping about 40%, compared to the December quarter.”
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Queensland unit prices falling

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First-home buyers in South Australia will receive less assistance from the State Government from 2012, when the first home bonus grant is halved.
From July 1, 2012, the first home bonus grant, which is currently $8,000, will be cut to $4,000 and will be abolished entirely on 1 July 2013, state treasurer Jack Snelling announced in the 2011-12 State Budget.
The bonus grant was introduced on June 5, 2008.
Snelling says the bonus had the unintentional effect of driving up prices for entry-level homes.
The $7,000 first-home owner’s grant remains in place for the purchase of homes valued under $575,000
Snelling says he is confident the boost will not have a negative impact on the housing sector.
"I am confident that by then (2013) we will be seeing a fair bit of recovery in the property market.
"I think that by doing it this way we might bring a bit of activity forward,” he says.
"That money I would prefer to be spending in areas of most need. I don't think the first-home owner’s bonus does much for housing affordability,” he says.
The phasing out of the bonus grant will save the State Government $3.8 million in 2012-13 and $9.5 million in 2014-15.
The Property Council of Australia, while acknowledging the stark fiscal and political realities, expressed disappointment at property taxes not being addressed, calling them the “elephant in the room”. 
Nathan Paine, executive director of the Property Council’s South Australia division, says it looks forward to working with the State Government “in pursuit of an equitable, efficient and reliable tax system that helps us unleash the state’s pent-up economic potential”.
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First-home buyer boost to end in SA

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“Venice-like” islands, laneway jetties and rooftop gardens are some of the architectural features that could one day grace the Parramatta River foreshore, the commercial, government and retail hub of greater western Sydney.
These were the concepts contained in the winning “Ideas on Edge” entries selected by judges as part of the Parramatta Council’s plans to develop a 2.2-hectare site between the Lennox and Bernie Banton bridges on the Parramatta River.
The development zone is connected to transport, shopping facilities and Parramatta’s dining precinct, “Eat Street” (Church Street in the CBD).
One of the judges, Sydney architect and executive chairman of Hassell Ken Maher, says the top three winners demonstrated an ability to capture the city’s relationship with the river.
“Parramatta Islands”, for instance, takes advantage of Parramatta’s waterfront access by proposing opening up the area to business, culture and social life, based on similar principles adopted in the cities of Venice, Amsterdam and Suzhou.
Another winning submission “Vertical Farming and Laneway Jetties” was recognised for its ability to reduce transport costs.
“The ‘Innovation Ecosystem” submission was chosen as a winner after the judges found that “it brings nature and commerce together and encompasses mixed-use development, including housing, an aged-care facility and just about everything you can think of”.
Parramatta Council will now take on board all of the ideas submitted when creating a functional brief for the site. The council will also consider the long-term master planning of the whole site.
Expression of interest will be accepted later this year.
A $70,000 prize pool will be distributed to the three winning entries, which came from Sydney, Brisbane and Arkansas, in the US.
The competition received 160 submissions from architects, designers, artists and students from all over the world including the United Arab Emirates, China, Belgium, Netherlands, United Kingdom and the US.
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Parramatta has Venitian dreams

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The uptake of online shopping has not dampened demand for rental space from bulky goods retailers in New South Wales, according to property manager Centuria Property Funds.
In recent months, Centuria has renewed or signed new leases for in excess of 11,000 square metres of showroom space to a variety of bulky goods tenants including Harvey Norman, Fantastic Furniture, Pillow Talk and Carpet Call in both metropolitan and regional centres in NSW. 
Centuria attributes the demand for rental space from bulky goods retailers (those selling furniture, whitegoods, bedding and manchester, and electrical equipment) to growth in the sector.
Jason Huljich, CEO of Centuria, says bulky goods has been one of retail’s more resilient sectors over the course of the past 18 months.
“Unlike areas of discretionary retail spending such as clothing, footwear, books and music, which have been increasingly threatened by online, internet-based competition, the bulky goods side of the equation has fared reasonably well,” he says.
According to Huljich, the logistics and cost of shipping a couch or washing machine sourced online from Europe or the US is very different from doing the same thing with clothes or shoes.
“Accordingly, we expect this level of demand for quality rental space to continue and will continue to target opportunities for our portfolio,” he says.
However, Huljich’s positive outlook is at odds with NAB forecasts. In its March 2011 Retail Market Outlook report, respondents to the survey identified bulky good as the weakest retail property sector in all states.
ABS Australian retail trade numbers for April 2011 show a year on year growth rate of 1.1%, equating to annualised retail sales growth of 3.3%.
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Property manager says bulky goods have staying power, but NAB disagrees

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Real-estate agents selling properties in Australia’s ski fields are all dreaming of a white Christmas in July as they face a lacklustre selling season.
Depending on who you speak to, the predictions for property sales this winter range from low-key optimism to downright pessimism.
Reasons for the gloom range from Australia’s growing savings culture to little new stock coming on board to banks’ unwillingness to provide financing.
However, all believe that plenty of powder on the ground will go a long way to attracting buyers.
“If it’s a good snow season, it will help our cause,” says Steve Forbes, director at Snowy Mountains real-estate group Forbes Stynes. “We need snow consistently on the ground.”
He is blunt about the current prospects for sellers: “The market is dead. I’m expecting price drops of around 20%.”
Sales volumes at Forbes Stynes are down 50% since 2010. In 2005-06 the agency sold about 50 properties in Thredbo. Last year it sold 18.
Forbes says property sales were hurt by the impact of the GFC and the subsequent savings culture that emerged, with fewer people spending money on luxuries such as ski lodges and chalets.
“The situation will only change when people stop saving and start spending again. Two years ago the national savings ratio was in negative territory, now it’s positive. When we see that change, then I will become more bullish again,” he says.
When Property Observer spoke to Forbes he was preparing to sell the 25-suite Marritz Alpine Chalet at Perisher on behalf of receivers. The property sold the following weekend for $3.1 million, with Forbes telling the AFR it was half of what it would cost to build such a building today.
Although not nearly as gloomy as Forbes, Toni Wheelhouse from Raine &amp; Horne Thredbo is also hoping for good snow falls this season.
“If there’s a lot of snow, people who come for a holiday get excited. They think, ‘This is great, let’s buy a property’.”
Ski season is traditionally a time when people make inquiries about properties, but Wheelhouse says sales are strongest around Christmas time.
She says the Victorian it has taken a small dip relative to the New South Wales market, but the change is not major.
“The outlook is fairly even. It boomed in 2008 and then dropped off, but it’s been quite steady since,” she says.
No investor interest
Unlike buyers of residential and commercial, purchasers of snow properties buy them because they love to ski, not as an investment.
Forbes says in his 10 years of selling snow properties, he has never sold to an investor. “There is no interest from overseas investors. Why should they buy here? There are way better places to buy.”
Forbes says although most people who buy a property near the snow are happy with the income or possible tax benefits, most are just looking for holiday home. “They are rarely a straight and pure investor such as people who buy residential property in the CBD,” he says.
A survey carried out last year of 2000 home owners and investors by PRDnationwide found that people who wanted a second home were nearly four times as likely to buy a beachfront property as a ski lodge. CBD apartments were also more popular locations for second homes.
??? <img src="/images/stories/secondhome.jpg" style="display: block; margin-left: auto; margin-right: auto;">Doug Edwards, owner of Mountain High Real Estate, which sells properties in the Thredbo and Jindabyne regions, agrees that most purchases are for lifestyle rather as a “pure investment scenario”.
Although he prefers not to call the market – “it’s pretty hard to judge” – he says there has been a positive start to the season with “lots of inspections and inquiries”.
Usually Edwards sells 30 to 40 properties a year. This year he doesn’t think he’ll sell more than 25.
 
How much money do you need?
Prices can range from a few hundred thousand dollars for a small two-bedroom apartment to more than $1 million for a modern, architecturally designed pad with a view.
Edwards says “top-of-the-line” new 130-square-metre apartments in Thredbo and Jindabyne can sell for between $1.1 million and $1.25 million, up from about $850,000 five years ago.
“The newer apartments are much larger and have more facilities, such as onsite parking and under-floor heating,” he says. Having just recently listed a three-bedroom apartment for $1.3 million, he says the premium end of town is very tightly held.
The older style, smaller (75 to 80 square metres) two-bedroom units fetch about $500,000, he says.
Edwards has fewer concerns than Forbes about banks’ willingness to lend – he says many buyers use their personal wealth or their super to make purchases.
Wheelhouse is more bearish about the top end of town. She says $1 million plus units are taking longer to sell and owners have had to drop prices to get sales through.
“Depending on condition, you’re probably looking at about $500,000 for a two-bed place or a one-bed with loft,” she says. Add a great location and an amazing view and the price tag pushes up towards the $1 million mark.
Future growth
As for future property developments, among the biggest planned is the village earmarked for James Packer’s Perisher Blue ski field.
In May 2009 Packer’s Consolidated Press Holdings signed an agreement with the NSW government to relinquish control of the Perish Blue car park to make way for a new recreation, retail and commercial village with 800 beds of accommodation. In return CPH got new 40-year leases with options for another 20 years.
However, the village is still some way away, with work anticipated to begin in the summer of 2012-13.
Wheelhouse says there are also plans to rebuild the 65-bed Thredbo Alpine Hotel, part of the Rydges group.
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Let it snow,  agents pray

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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