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Despite being prohibited from being involved in the real-estate business for periods of 15 years and 12 years respectively, Michael James Marquette and Simon Robert Turner, owners of disgraced Sydney real-estate business Marquette Turner Luxury Homes, continue to tweet about property to 3,752 followers.
The most recent tweets on the marquetteturner Twitter feed include a link to a blog entry on the company website about Filipino furniture designer Vito Selma. On June 1, the company tweeted about luxury real estate in Tuscany, even though the Potts Point real-estate business lost its licence on May 31 following an investigation by the NSW Office of Fair Trading.
The investigation into the company’s activities found irregularities in managing trust funds for various clients and strata corporations.
Deeds Not Words Pty Ltd, trading as Marquette Turner Luxury Homes, has been permanently disqualified from being involved in the direction, management and conduct of the business of a licensed real-estate agent. Marquette and Turner, directors and former licensees of the corporation, have also been disqualified from being involved in the real-estate business for periods of 15 years and 12 years respectively.
The company also traded in the Newcastle area as Marquette Turner Strata Management.
The cancellation of the real-estate licence and the disqualification of Marquette and Turner were announced by NSW Fair Trading Minister Anthony Roberts.
Roberts says Fair Trading estimates the business had accessed trust monies for a two-year period without authorisation.
“This company and two of its directors were not able to account for these funds, which they administered on behalf of clients,” he says.
“This is a serious matter, and the punishment is entirely appropriate,” Roberts says.
“The Administrative Decisions Tribunal previously dismissed applications by the company and its two directors to overturn NSW Fair Trading’s decision.
“Consumers expect real-estate agents to be ethical and professional.”
According to NSW Fair Trading records, Marquette and Turner had their business licences suspended on December 10, 2009 for 60 days pending the outcome of disciplinary action. This suspension was stayed by Administrative Decisions Tribunal on January 6, 2010.
Property Observer has sought comment from Marquette and Turner but has not received a response.
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Disqualified agents Marquette and Turner still tweeting about real estate

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It’s been a bad year for Queensland. Floods, a cyclone and a weak tourism market have taken their toll, and now the April RP Data?Rismark Hedonic Home Value Index ranked Brisbane as Australia’s weakest capital city housing market. House price depreciated by 4.8% during the first four months of the year and by 7.2% over the past 12 months.
These statistics make for gloomy reading for anyone who currently owns property in Queensland’s capital.
However, for investors looking for medium-term growth potential, Brisbane could well present the most attractive opportunities.
It currently sits at 5 o’clock on the Property Observer Property Clock, meaning Brisbane is closest to bottoming out – and importantly, recovering.
Building activity and the resources boom are expected to light the spark of recovery and potentially the next housing recovery. Next in line is Perth, which has also undergone significant house price depreciation of late. As for the other capital cities, they’re only just heading into downswings, meaning many of the best investment opportunities in these cities have already passed investors by.
 
 
At 12 o’clock the market is at its peak (demand exceeds supply), at 3 o’clock the downswing has set in (an evenly supplied market0,) and by 6 o’clock it has bottomed out (an oversupplied market). At 9 o’clock the market is rebounding (supply is tightening).
 
<img src="/images/stories/clocksandtables/clock-generic.jpg">
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 Sydney
Population: 4,575,532  Median house price: $590,000  Rental yield: 4.3%  Property clock time: 1.30
<img src="/images/stories/clocksandtables/clock-sydney.jpg">
Consensus is that the Sydney market has peaked and is heading into a downswing, though no dramatic collapse in prices is anticipated. 
According to Terry Ryder, director of hotspotting.com.au, the Sydney market has been falling since early 2010, though “long-term prospects are solid”. “The change of state government will help [the market], if infrastructure promises are kept,” he says.
Louis Christopher, founder of property research firm SQM, also anticipates further house price falls as a result of higher interest rates and a downward swing in housing finance approvals. “However, the magnitude of the decline will be minimal compared to most other cities. This is one city that really is experiencing a genuine shortage of rental properties,” he says.
Digging a little deeper into the Sydney market, Chris Lackey, NSW state manager at WBP Property Group, observes two different cycles operating in the Sydney market: “Activity in the top end has slowed, with $1.5 million plus properties currently at 3 o‘clock in the property clock cycle. The middle and bottom markets are also softening and likely to remain flat for the year. There are some select areas that remain at their peak.”
Following publication of the RP Data-Rismark Hedonic Home Value Index for April, which showed Sydney prices up 0.5% year on year on a seasonally adjusted basis, Rismark joint managing director Christopher Joye also highlights the threat to homes at the top end of the market: “Luxury homes in areas like Sydney’s eastern suburbs will continue to face valuation headwinds as banks deal with the new normal of subdued credit growth,” he says.
<img src="/images/stories/data%20table%20sydney.jpg">
 
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Adelaide
Population: 1,203,186 Median house price: $400,000  Rental yield: 4.1%  Property clock time: 1.30
<img src="/images/stories/clock-adelaide.jpg">
<h2>Adelaide appears to be heading towards a moderate downswing, with rental vacancy rates steady and construction activity levelling off. House price depreciation appears to be accelerating slightly, with RP Data showing prices falling by 0.9% in April and 2.5% for the year to date.</h2>
Terry Ryder, who is the most bearish of Adelaide analysts Property Observer spoke with (he puts the Adelaide clock at 4 o’clock), says the market is in a period of “mild decline” though overall prospects are strong, “thanks to infrastructure, defence and resources projects”.
The South Australian capital also has the benefit of cheaper housing overall compared with other capital cities. Bart Quinn, WBP’s SA state manager, says that although prices and volumes have fallen in Adelaide, particularly in the first-home buyer segment, “underlying demand is steady for properties that are priced right”. “Generally, the Adelaide market remains cautious, but there are pockets that continue to remain well supported,” he says.
Louis Christopher says Adelaide vendors are only now cutting their asking prices, and he expects more pain to come. “However, there is a chance the magnitude of the declines will be modest.”
<img src="/images/stories/data%20table%20adelaide.jpg">
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Darwin
Population: 127,532  Median house price: $470,000  Rental yield: 5.6%  Property clock time: 1.45
<img src="/images/stories/clocksandtables/clock-darwin.jpg">
<h2>“After five to six strong years, Darwin’s market has finally paused and there is evidence of price decline,” Ryder says. However, he believes the recovery will be swift, once major gas projects move into the construction phase.</h2>
Such sentiments are not shared by Christopher, who says the Darwin bubble has “popped”.
“It is going to be a steep decline from here, particularly if the RBA lifts rates again,” he says.
RP Data-Rismark statistics for April show a 2.9% increase in prices in April, but just 0.3% growth for the quarter.
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Canberra
Population: 358,222  Median house price: $560,000  Rental yield: 4.8%  Property clock time: 2 o'clock
<img src="/images/stories/clocksandtables/clock-canberra.jpg">
<h2>RP Data-Rismark research for April shows that the Canberra market has not yet run out of steam, with prices continuing to rise steadily. House prices increased by 1.8% in April, are up 2.2% in 2011 and 2.3% for the April quarter.</h2>
A shortage of available property relative to demand, a tightening rental market, a fair demand for new houses and a steady volume of new home building are all keeping the housing market buoyant. However, this is offset by declining sales volumes and the second highest capital city prices after Sydney.
Terry Ryder says any dip in the market is likely to be small. “Canberra remains our most reliable city market, buoyed by strong incomes and low unemployment,” he says.
A bullish outlook is also held by Louis Christopher: “Stock levels are rising, however this is also another city where the magnitude of the declines may well be modest as the ratio of income to house prices appear to be fair.” 
<img src="/images/stories/data%20table%20canberra.jpg"> 
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Melbourne
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Population: 4,077,036 Median house price: $535,000 Rental yield: 4.1% Propety clock time: 2.25
<img src="/images/stories/clocksandtables/clock-melbourne.jpg">
Experts are in agreement that an oversupply of houses in Melbourne is contributing to the market heading into a moderate downswing, though no crash is expected. RP Data's April figures show Melbourne house prices are down 0.5% for April and down 3% for the year to date.
Brendan Smith, valuations manager at WBP, anticipates “tempered growth over the next 12 to 18 months” in Melbourne compared with what has transpired over the past decade. “This is due to the decline in the population growth of the region and the current oversupply of listed stock and property under construction,” he says.
However, Smith says auction clearance rates averaging around 60% to 65% for the first quarter of 2011 are further evidence that there is unlikely to be any “crash” or “bust” in the short term, but rather a return to more measured and sustainable growth.
Louis Christopher notes that stock levels in Melbourne have increased 105% during the past 12 months. As a result, he says vendors have just started to drop their asking prices, and he anticipates a 5% decline in house prices in 2011.
<img src="/images/stories/data%20table%20melbourne.jpg">
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Hobart
Population: 214,705  Average house price: $322,800 Rental yield: 4.8% Property clock time: 2.30
<img src="/images/stories/clocksandtables/clock-hobart.jpg"> 
Terry Ryder calls Hobart “the city with the weakest prospects”.
“The state economy and population growth is weak and political situation is unhelpful,” he says. “The market likely to fall further.”
Hobart prices have fallen 2.4% this year to March (because of the low volume of sales in Hobert, RP data on Tasmania are a month behind) according to RP Data-Rismark data, with demand for new housing soft and a decline in new home building approvals.
“Hobart stock levels are rising,” Louis Christopher says. “However, this is also another city where the magnitude of the declines may well be modest, as income-to-house prices appear to be fair.” 
<img src="/images/stories/data%20table%20hobart.jpg"> 
 
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Perth
Population: 1,696,065  Median house price: $481,825 Rental yield: 4.2% Property clock time: 4.40
<img src="/images/stories/clocksandtables/clock-perth.jpg"> 
According to RP Data-Rismark, Perth prices have fallen further than prices in any other capital city and the downward swing is accelerating, as reflected in Perth’s position on the property clock. For the 12 months to April, house prices are down by 7.3%. For the first quarter of 2011, they’re down 3%, and for the month of April they’re down 1.5%.
Analysts Louis Christopher and Brendan Aylmore, WA branch director at WBP, both highlight Perth’s sensitivity to interest rates. Christopher says another interest rate rise could send the property clock back to 2 o’clock, pushing back Perth’s recovery.
Aylmore says Perth’s housing market has been soft for an extended period, and although a slight lift in rental rates could result in an increase in first-home buyers “looking to exit the rent rut”, buyers remain cautious about upgrading, given the possibility of further rate rises and unstable economic conditions abroad.
Terry Ryder is more bullish and expects the market to recover on the back of the resources boom and government infrastructure spending.
<img src="/images/stories/data%20table%20perth.jpg">
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Brisbane
Population: 2,043,185 Median house price: $449,250 Average weekly rent: 4.5% Property clock time: 5.20
<img src="/images/stories/clocksandtables/clock-brisbane.jpg"> 
RP Data ranked Brisbane as the weakest performing capital city in its April index, with home values down 3.1% in the April quarter. For the year to date, home values are down 7.2%. RP Data research director Tim Lawless says Brisbane along with Perth have undergone a significant correction in home values, whereas other capital city markets have flattened out.
But Brisbane could be the next capital city hotspot once rebuilding efforts get into full swing. Experts anticipate a turnaround in the next 12 to 18 months.
Terry Ryder notes the impact of the floods on the market but expects Brisbane to show signs of recovery before the end of 2011. “The rebuild program and the resources boom will spark revival. Investor activity will pick up in the second half of 2011, with prices attractive and rents strong,” he says.
Louis Christopher is more bearish and says the downswing has another 12 months before the market bottoms out. “There is over six months’ worth of stock on the market,” he says. The Sunshine Coast and Gold Coast are basket case situations.”
WBP Queensland state manager Daniel Lewis has a more positive outlook and does not expect prices to fall any further. “Increasing rental prices are a positive sign for Brisbane moving forward, with hopes that this positive development will lure investors back into the market. Another positive factor is the relative affordability of housing when compared with other Australian capital cities,” he says.
<img src="/images/stories/data%20table%20brisbane.jpg">
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Brisbane clocks in near bottom of market

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McGrath CEO John McGrath has dismissed suggestions being made by some property experts that house prices in Sydney and Australia are 40% overpriced.
Writing on his <a target="_blank" title="John McGrath's blog" href="https://www.johnmcgrathblog.com.au/">blog</a>, McGrath says: “There’s no need to panic. Every few years, these so called property experts come out of the woodwork to generate headlines about the Sydney and Australian property market being 40% over priced.
“I’ve been in real estate for almost 30 years now and have heard these suggestions on at least eight occasions (seems like once every cycle). To date, I have yet to experience a market that has fallen more than 20%, and invariably within nine months, any market losses have typically been regained.  In the meantime, property values have kept doubling about every eight years.”
However, McGrath has revised his forecast that Sydney house prices will increase by 8% this year.
In his Winter 2011 review he blames the stalling of house price growth on stock market jitters and natural disasters, but believes growth will return to the market “at worst by the first quarter of next year”.
According to the latest RP Data-Rismark Home Values Index, house prices in Sydney have fallen 1.3% for the year to date on a seasonally adjusted basis, and unit prices are down 0.4%
McGrath believes rising rents will spur first-time buyers into the market, and new laws allowing self-managed super funds to invest in property will “put an enormous amount of pressure” on property prices.
Currently though, he says fears of a second house price correction in the Sydney market is creating hesitation among buyers.
McGrath remains bullish about the upper end of the market, saying there is still “reasonably strong buying up to $2 million for the right properties”.
And well he should be.
According to the AFR, McGrath has put up a seven-bedroom property he owns in Sydney’s Duffy Forest for sale with an asking price of $5.5 million. He paid $4.7 million for it when he bought it just over two months ago, before undertaking some renovations.
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John McGrath still positive, despite house price drop

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Kim Cannon, CEO of non-bank lender FirstMac, says the sector is “returning from the abyss” following its decision to take on the major banks with an online mortgage product.
Cannon expects as slow recovery for the non-bank sector, but believes things have turned around.
“It’s getting better every day,” Cannon says. “Pricing [of securitisations bonds] was the issue during the GFC crisis. But this has come back, though investors remain domestic-based.
Cannon heads to Brussels next week to attend the European Securitisation forum and “see what the mood is like” from overseas investors.
Brisbane-based FirstMac is offering mortgages through its loans.com.au brand.
Cannon told Property Observer he had been holding onto the brand for the last 13 years waiting for the right moment to offer it to the market.
“We have been waiting for right time, when we believe people will transact online. Since the emergence of the iPad and iPhone, people have become more dependent on the internet to do their shopping and product comparisons,” he says.
Cannon says mortgage brokers’ “love affair with the major banks” had pushed FirstMac to pursue an online route.
Research carried out by FirstMac has discovered that its target market for the product is not Gen Y borrowers, but 40- to 50-year-olds. “It’s quite the opposite of what we thought,” he says.
Recently, fellow non-bank lender Pepper Home Loans, predominantly a specialist lender, snapped up GE Money’s $5 billion loan book. The company will use the acquisition to move into the prime residential space.
Loans.com.au’s Dream Loan express is currently offered at a discounted rate of 6.58%, just lower than NAB’s UBank standard variable, available at 6.59%.
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Non-bank lenders hitting their stride

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Building figure approvals for April put out by the Australian Bureau of Statistics have added more gloom to Tasmania’s property woes, with the Master Builders Association describing the market as “horrific”.
Total dwelling approvals in Tasmania on a seasonally adjusted basis fell 8.7% in April, according to figures put out by the ABS. This is more than six times higher than the national average, which was -1.3% for the month of April. The national average for dwelling approvals rose 8.6% in the previous month.
In absolute terms, dwelling approvals slumped 29% in Tasmania. Master Builders Tasmania executive director Michael Kerschbaum told <a target="_blank" title="The Mercury" href="https://www.themercury.com.au/article/2011/06/01/234465_real-estate-news">The Mercury</a> this was a “horrific” result.
The latest data heaps more gloom on the embattled state, after the latest RP Data-Rismark report revealed that the value of Hobart homes fell by 2% to a median price of $315,000 in the three months to April.
According to hotspotting.com.au’s Terry Ryder, Hobart is the capital city market with the weakest prospects. “The state economy and population growth are weak, and the political situation is unhelpful,” Ryder says. “The market is likely to fall further.”
Louis Christopher, property analyst and director of SQM research, says Hobart is currently in a downswing, with stock levels on the rise. However, he does not expect dramatic price drops due to the fact that “incomes to house prices appear to be fair”.
Not only is new home construction falling, but the quality of homes being built has been called into question following a <a target="_blank" title="Sunday Tasmanian" href="https://www.themercury.com.au/article/2009/06/03/77235_tasmania-news">Sunday Tasmanian</a> investigation that revealed that new-home owners were falling prey to shonky builders using false accreditation details and were being left with defective and incomplete houses.
According to the newspaper, builders have been "shopping out" their licences to unregistered tradesmen for up to $25,000.
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Slump in building approvals adds to Tasmania's property woes

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Queensland leisure resorts that are able to tap into the MICE (meetings, incentives, conferences and events) market stand a better chance of weathering the current tough conditions, one expert has said.
In the wake of the collapse of the Couran Cove resort on Stradbroke Island, Jones Lang LaSalle senior vice-president of strategic advisory Julian Whiston says resorts that are reliant on the leisure demand are being more profoundly affected by current spending trends and the strong Australian dollar than those that cater to the MICE market.
“When consumer spending is down, they are the first to feel it,” he says, adding that the strong Aussie dollar has created a two-fold problem for Queensland: overseas tourists are less likely to come to Australia because of expense, and Australians are increasingly holidaying abroad because overseas trips have become more affordable.
Whiston says this assessment would hold broadly for the Australian leisure resort market. However, different markets have different sources of demand.
”Some need leisure more than others. Cities that have benefited from resources are not as dependent on leisure,” Whiston says.
Whiston says city hotels, such as those in the Brisbane CBD, are trading well due to an increase in corporate demand.
“Business events have come back quite strongly in Brisbane since the floods,” Whiston tells Property Observer.
His comments come as Couran Cove liquidators Will Colwell and Tim Michael from Ferrier Hodgson seek a buyer for the collapsed resort.
 Trevor Weinert of Colliers International has been appointed to sell the real-estate assets and rights of the resort.
 Up for sale are 158 strata-titled accommodation units (out of a total of 352 units in the resort). These range from waterfront hotel-style rooms to four-bedroom villas and “eco lodges”.
 The resort is also selling multiple parcels of land with existing development approvals, 14.5 hectares of development land, 2,168 square metres of freehold, three waterfront parcels totalling 5,515 square metres within the Lagoon Lodge precinct and rights to the resort’s facilities and features. These include four food and beverage outlets, conference facilities, a 77-berth marina with an additional 25 jetties, a day spa and an ocean-front surf club. The resort also provides access to 22 kilometres of surf beach.
Third-party unit owners continue to have access and use of their units, as well as ongoing access to “certain resort facilities and be able to privately let their units”.
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Queensland resorts need to widen their focus: Expert

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GDP figures showing the economy contracting 1.2% in the March quarter are unlikely to stop the Reserve Bank from raising interest rates in the next few months, according to Housing Industry Association chief economist Harley Dale.
The March quarter result is the largest quarterly fall in GDP since the March quarter of 1991.
Despite this, real gross national income increased by 0.3%, driven by an increase of 5.8% in the terms of trade on the back of stronger commodity prices.
Dale told Property Observer it was fair to say that updated domestic demand was “stronger than consensus expectations”, increasing the likelihood of an interest rate rise between now and August.
“I am not saying interest rate should rise, but this does increase the likelihood of a rate increase,” he says.
The ABS attributed to the shrinkage in the economy to the floods in December and the cyclones in Queensland and Western Australia, which it says has had a “significant impact on the March quarter activity”.
An increase in interest rates could put many more home owners under mortgage stress.
UBS analyst Jonathan Mott was reported in The Australian as saying that an increase in interest rates could force the value of mortgages considered in arrears to double.
The ABS figures revealed that expenditure on new housing and alterations made positive contributions to national accounts figures. New housing expenditure rose by 4.5% in the March 2011 quarter, and expenditure on alterations and additions increased by 4.9%, with total dwelling expenditure making a contribution to growth of 0.3%.
However, HIA senior economist Andrew Harvey says most of this positive contribution reflects decisions taken by home buyers before the interest rate hikes of late last year.
“This is a good result, but it is now history – the leading indicators for housing provide compelling evidence that new residential building is heading into a much weaker period,” he says.
“Given the backdrop of the persistently tight credit conditions still afflicting residential developments and major uncertainty over the Gillard Government’s proposed carbon tax, new housing construction is unfortunately not going to excite anytime soon.”
Dale says he expects renovation activity to continue in the coming quarters but on the evidence of new housing indicators, it will be difficult to keep repeating new dwelling growth in future quarters.
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Rates rise still likely, despite GDP fall: HIA

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Figures put out by RP Data and Rismark showing that capital dwelling values in Darwin increased by 2.4% in April should not be taken as a sign the market has rebounded, according to SQM founder Louis Christopher.
Christopher told Property Observer he does not trust monthly numbers and will wait to see Australian Bureau of Statistics and Australian Property Monitors quarterly figures.
However, his view of Darwin is that the market remains weak, with residents susceptible to interest rate rises given current house price levels.
“I don’t believe this is a turnaround,” he says. “The indicators we have say Darwin is susceptible to a correction.”
Christopher bases his bearish outlook on high stock levels and a rapid increase of stock on the market.
The average price of a house in Darwin is $470,000 – more expensive than Brisbane ($449,000) and Adelaide ($400,000) and not far off Perth ($481,000).
According to RP Data?Rismark Hedonic Home Value Index, Darwin, Sydney (0.3%) and Canberra (1.4%) were the only capital cities to record positive capital growth figures in April. Perth suffered the biggest monthly drop of -1.8%.
Hotspotting.com.au director Terry Ryder says that after five or six strong years, Darwin’s market has finally paused and there is evidence of price decline. “Recovery will be swift, however, once major gas projects move into the construction phase,” he says.
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Darwin outlook gloomy despite temporary rise: Christopher

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The $150 million Couran Cove Island Resort on the Gold Coast is to be sold after closing due to low occupancy rates and rising costs.
An official announcement by corporate recovery firm Ferrier Hodgson is due to be made later today. It is understood the business has entered into a members’ voluntary liquidation arrangement.
The resort is the latest in a line of Queensland resorts that have been sold, closed or placed into receivership, with their collapse blamed on the GFC, natural disasters and a drop in tourism.
“Over the past 13 years considerable time, energy and money has been invested to create the premium resort Couran Cove is today,'' a spokesman told the <a href="https://www.goldcoast.com.au/article/2011/05/31/319801_gold-coast-news" title="Gold Coast Bulletin" target="_blank">Gold Coast Bulletin's website</a>.
''The resort has been operating at a considerable loss for a number of years and sadly, despite our best efforts, this is an unsustainable position for any business operation.
''This is the most sensible course of action for the business and its shareholders, and the decision was made after much consideration and deliberation by the board.''
Among prominent Queensland resorts currently being sold on behalf of receivers are the 104-room Hotel M and Metropole Hotel, in Townsville (marketed by Jones Lang LaSalle) and the 42-room Lagoons@Port Apartments in Port Douglas (marketed by CB Richard Ellis).
In May 2010 the RACV bought the 149-room luxury Noosa Sanctuary apartment complex for an average price of just $400,000 an apartment. Developers had been expected to sell each apartment for an average of well over $1.5 million.
Palm Bay retreat on Long island near Townsville and Bale Resort in Port Douglas closed earlier this year.
Couran Cove is owned by InterPacific Group (Australia). It was developed in 1998 by American businessman Chuck Feeney, who reportedly lost more than $280 million in the venture. It is comprised of a mix of apartments, lodges and villas, some of which are privately owned.
InterPacific's other resorts include Pacific Islands Club Guam, Pacific Islands Club Saipan, Laguna Beach Resort in Phuket, Thailand and Bali Golf and Country Club in Nusa Dua, Bali.
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Trouble in paradise as another Queensland resort goes under

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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.
 
Retailers looking to rent property in Australia’s key CBD locations continue to pay among the highest premiums in the world, this despite the cautious retailing environment.
The latest CB Richard Ellis Global Retail MarketView ranks Sydney’s super prime retail locations (equivalent to rents paid for the best street-front space on Pitt Street Mall) as the third most expensive high street destination at $US1,301 per square foot per annum, behind New York’s Fifth Avenue (US$1,900 per square foot) and Hong Kong’s Pedder Street (US$1,697 per square foot).
Renting retail space in Sydney’s Pitt Street Mall is more expensive than renting in the most expensive streets in Paris, London or Tokyo.
 Brisbane’s Queen Street Mall ($US753 per square foot) and Melbourne’s Bourke Street (US$691 per square foot) rank eighth and 10th respectively.
 
<img src="/images/stories/cbre2%20june%201.jpg">
Joshua Loudoun, regional director of retail services at CBRE, expressed no surprise that Sydney maintained its high ranking in the super prime space.
He told Property Observer a key reason for this buoyancy is the very limited super prime space available, compared with what’s available in London or New York.
“Look at the length of Fifth Avenue or Regent Street compared to Pitt Street Mall,” he says.
“There is a lot of competition for rents,” he says. “Sydney has been consistently up there. The new Sydney Westfield and the opening of Zara in the Pitt Street Mall is attracting other retailers.”
Loudon expects to see continued rental growth in these markets.
“While retail spending has been subdued with consumers remaining cautious and opting to save more or shop more frugally, international retailers continue to be active in key Pacific markets,” he says.
“As a result, the cautious consumer story has not impacted on rents, as most key retail areas have either weathered the storm of subdued spending and cautious local retailer demand or witnessed rental growth due to tight supply constraints.”
 However, Loudoun says recent and new supply throughout the main CBD markets is likely to put pressure on rental levels until the demand from international and national retailers absorbs the newly built stock and back-fill space.
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Sydney's Pitt Street third most expensive in the world for retail

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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