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Sales of existing homes in the ACT may rise over the next three months while new home sales activity will most likely fall over this period, following housing grant changes announced by the ACT government as part of its 2013-14 budget.
From September 1, first-home buyers (FHBs) in the ACT will receive $12,500 if they buy or build a new home or buy one that has been substantially renovated (subject to changes to the FHOG Act currently before the Assembly).
FHBs planning on buying an existing home have a little under three months to obtain the existing $7,000 grant, which now expires on August 31.
Combined with substantial stamp duty savings under the Home Buyer Concession Scheme (HBCS) - available to both first-home buyers and non-first-home buyers and which is to be continued, a first-home buyer in the ACT could save around $28,500 (including around $16,00 in stamp duty savings) if they buy a new home from September 1 for under $425,000.
However, the three month delay in implementing the new $12,500 grant scheme may result in a drop in new home sales until September 1 as FHBs thinking of buying a new home wait to access the new grant.
It may also artificially inflate sales of existing houses and apartments as first-home buyers rush to finalise their purchases before the $7,000 grant expires on August 31.
While the ACT government says the initiative is aimed at improving affordability, it could push up existing house and unit prices as vendors lift their asking prices given the likely increased demand.
House and land developers and apartment developers could also factor in the higher $12,500 incentive into their prices.
The ending of the existing $7,000 grant, the launch of the new $12,500 grant and the extension of the HBCS was revealed ahead of the ACT budget, to be announced today.
It will bring the ACT in to line with NSW, Queensland, Victoria, Tasmania and South Australia, which are all incentivising the purchase of new homes, whilst removing incentives for existing homes in moves aimed at helping the struggling residential construction sector.
Earlier this month the Tasmanian government announced that from July 1, <a target="_blank" href="/news">Tasmanian first-home buyers</a> who build or buy a new home (including off-the-plan) will be entitled to a $7,000 FHOG, while those buying an existing home will receive no grant.
The ACT Home Buyer Concession Scheme that was due to expire on June 30.
The scheme offers stamp duty concession to first-home buyers and anyone else purchasing a new home or residential vacant land under certain thresholds.
From 5 June 2013, the income test will be further increased from $150,000 to $160,000 per household.
Under this new initiative 70%of Canberra households will be eligible for the concession against this criteria.
Properties worth under $425,000 will only pay $20 – a saving of around $16,000.
Properties between $425,000 and $525,000 will pay a discounted duty.
From September 1, a purchaser can also be eligible for both the $12,500 handout plus the stamp duty concession.
“For example, an eligible first home buyer who purchases a house and land package worth $415,000 will pay only $20 in stamp duty and will receive a $12,500 cash payment,” says the ACT Revenue office on its website.
The ACT government also announced changes to its Land Rent Scheme, introduced in 2008 to increase access to affordable home ownership by allowing households to lease a block of land on an ongoing basis rather than incur the costs of purchasing the land at a discount rate of 2% (subject to eligibility criteria), and a standard rate of 4%
From October 1 the scheme will be retargeted towards low to moderate income households who meet the eligibility criteria for the discount rate.
From this date, the standard rate will no longer be available to new entrants to the scheme.  However, those already participating in the scheme at the standard rate will be unaffected by this change.
 
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These are the key dates first-home buyers need to diarise:
All dates correct as of June 4 2013.
June 5, 2013 - ACT
From 5 June 2013, the income test  for the Home Buyer Concession Scheme will be further increased from $150,000 to $160,000 per household. Under this new initiative 70%of Canberra households will be eligible for the concession against this criteria. Properties worth under $425,000 will only pay $20 – a saving of around $16,000.
June 30, 2013 - Victoria
The date the Victorian government ends its $7,000 first-home owner grant. The grant is available if the price of the property or construction of the home does not exceed $750,000. An exception to this requirement is where the contract relates to a home that is on, or to be built on, primary production land.
June 30 2013 - South Australia
The $8,000 Housing Construction Grant (HCG) will expire on June 30. It applies to contracts entered into between 15 October 2012 and 30 June 2013, or in the case of owner builders, where construction commenced between 15 October 2012 and 30 June 2013. A property value cap of $450,000 applies.
July 1, 2013 – Victoria
The start of the $10,000 grant in Victoria for newly constructed homes. In addition, the state government will also increase stamp duty cuts of 40% for all first home owners (including those buying existing homes) for homes valued up to $600,000. The combination of a $10,000 first-home owner grant and 40% stamp duty cut means that Victorians buying a newly constructed first home for $400,000 will save over $16,500.
August 31, 2013 – ACT
The $7,000 first-home buyer for existing home purchases ends.
September 1, 2013 – ACT
First-home buyers (FHBs) in the ACT will receive $12,500 if they buy or build a new home or one that has been substantially renovated.
January 1, 2014 - NSW
The $15,000 grant for first-home owners who purchase or build a new home in NSW valued at up to $650,000 will reduce to $10,000 from this date.
June 30, 2014 – Tasmania
Up until this date, Tasmanian first-home buyers of established homes are entitled to a $7,000 grant. From July 1, 2014, the grant is only available to those who buy or building a new home, including off the plan and house and land packages.
June 30, 2014 – South Australia
Up until this date, South Australian first-home buyers of established homes are entitled to a $5,000 grant. From July 1, 2014, no first-home owner grant is available to purchasers of established homes.
June 30, 2014 – South Australia
Stamp duty concessions for first-time buyers who purchase an apartment off the plan in the Adelaide CBD will end on this date. The scheme is available on the transfer of a new CBD apartment or a "substantially refurbished apartment" for a contract entered into from May 31, 2012, to June 30, 2014, capped at stamp duty payable on a $500,000 apartment of $21,330. 
June 30, 2014 – Tasmania
The $8,000 First Home Builder Boost Scheme grant available to Tasmanians building a new home (including off-the-plan) if the qualify for the first-home owner grant will end on this date.
September 1, 2014 - Victoria
All first home buyers (whether purchasing newly constructed or established homes) will benefit from a 50% stamp duty concession for homes valued up to $600,000.
June 30, 2016 - South Australia
Partial stamp duty concessions for first-time buyers who purchase an apartment off the plan in the Adelaide CBD will end on this date.
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lschlesinger-FZcF9M3vE6

ACT lifts first-home owner grant to $12,500 but for new homes only from September 1

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A Melbourne-based private investor has matched the six-star environmental rating of Grocon’s Pixel building in Carlton paying $6 million for the multi-coloured office asset.
The building had been listed with $6 million hopes in mid-April as part of an <a target="_blank" href="https://www.propertyobserver.com.au/commercial/carlton-s-green-but-multi-coloured-pixel-office-block-listed-for-sale-by-grocon/2013041860518">international expressions of interest campaign</a> aimed at investors and owner-occupiers.
<img alt="pixelapril19one" src="/images/stories/2013/04/pixelapril19one.jpg" width="470" height="313">
It stands on a 276 square metres site at 205 Queensberry Street Carlton on the corner of the Carlton &amp; United Brewery site on the CBD’s northern edge with a distinctive façade of multi-coloured leaf-shaped tiles aimed at deflecting heat and glare.
The Pixel building has received more than two dozen architectural and environmental awards since it was built in 2010, including a perfect score from the Green Building Council of Australia (GBCA).
<img src="/images/stories/2013/04/pixelapril19two.jpg" width="470" height="300" alt="pixelapril19two">
In 2009, whilst under construction the GBCA awarded it a six-star Greenstar rating with a perfect score of 105 credits for design and 104 credits for as built.
<img alt="pixelapril19three" height="325" width="470" src="/images/stories/2013/04/pixelapril19three.jpg">
In 2012, it also achieved the world’s highest LEED rating and score from the US Green Building Council.
The building was designed by Melbourne-based Studio505 with four levels of office space (around 1,100 square metres) and a rooftop garden with wind turbines and solar panels powering the building.
The sale of the building was handled by CBRE agents Mark Wizel, Josh ­Rutman and Tom Tuxworth.
"The buyer was based locally recognized the quality of the offering in a boutique inner city locale, " Wizel tells Property Observer. 




"Interest received during the campaign was from varied groups in the private, corporate, educational and government sectors highlighting the underlying interest and appetite for buildings that are delivered with characteristics exemplified by that of the Pixel building," he says.
 
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Grocon’s six-star Pixel building sells to Melbourne-based private investor for $6 million

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The issuing of the <a href="/news">first two significant investor visas</a> to wealthy Asian investors has generated a seemingly disproportionate amount of press coverage amid claims that the program could deliver significant benefits ranging from funding key NSW infrastructure projects to stimulating the prestige end of the property market and creating a whole new class of managed investment products.
Some estate agents operating at the prestige end of the Sydney and Melbourne markets are talking about the impact the visa will have on sales and prices while property listings websites are attributing large spikes in searches for Australian property <a href="/news">in part to the ‘SIV-effect’</a>
Macquarie Bank has launched a new investment fund specifically targeted at providing SIV-qualifying investment options while <a href="/news">property fund manager Centuria</a> says all its new syndicate investments now qualify as part of the program.
But aren’t we getting a little ahead of ourselves?
Firstly, it bears mentioning again that just two visas have been issued to date - the first to a Chinese toy manufacturer who made a $5 million investment in Victoria state bonds - with Department of Immigration seemingly in no hurry to approve applications despite a pipeline of more than 400 applications.
At last count there were 222 invitations issued to investors, 212 of them to Chinese investors.
To qualify for a visa, offshore investors must commit to invest $5 million in complying investments.
These include Commonwealth, State or Territory government bonds, ASIC-regulated managed funds with a mandate for investing in Australia; and direct investment into Australian proprietary companies.
Direct property investment does not qualify – an investor cannot buy a $10 million mansion on Sydney harbour for example and apply for the visa - but logic dictates that successful applicants will want a place to live and given their wealth, a prestige home will most likely be on the shopping list.
<a href="/news">Dominic Ong, who heads up a new Knight Frank special significant visa team</a> specifically targeting wealthy Chinese investors, says he is showing Asian clients around some of the most expensive Sydney waterfront real estate.
He says they are looking in the $30 million to $50 million price range describing them as “ultra-wealthy Chinese individuals”.
“They want the best properties on the waterfront with a private jetty, harbour bridge view, swimming pool and many car parks.
“They want homes they can use for private functions and for entertaining,” he says.
Ong also says there is strong interest from wealthy Chinese investors in office, shopping centres and hotels (when they can find them) and development land – though none of these investment would qualify on their own for an SIV.
 
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The scheme is being heavily promoted throughout China with the Bank of China recently completing a SIV road show of Chinese cities to spread the word.
Ong says the market response has been “very positive”.
The NSW government has been the most vocal at trumpeting the significance of the scheme for its economy, given that it requires that investors put a third of the required $5 million into NSW Investor Migrant Waratah Bonds – the only state to have such a requirement.
The state bond program is used to fund key infrastructure projects such as new roads and highways with commentators writing that “infrastructure queue jumpers” as some have called them – will pour hundreds of millions of dollars into state coffers, paying for new roads and highways.
NSW deputy premier Andrew Stoner reported in parliament last week that 138 applicants had been nominated by New South Wales for a significant investor visa which if they proceeded to invest would deliver a minimum of $207 million paid into Waratah bonds.
“That is more money for WestConnex, upgrades to the Pacific and Princes highways and the Bridges for the Bush program,” he said.
Were all these applicants to be granted visas, then around $200 million in funds would indeed flow into NSW coffers – but that’s a pretty big ‘if’ and "when".
Other reports have talked about an apparent upper-end expectation of 400 visas being granted per year in NSW alone once the program is in full swing.
The Department of Immigration has made public statements about how many visas it expects to issue and given the slow progress to date, 400 a year in NSW seems wildly optimistic.
Certainly though, the overall importance of Asian and other foreign investment has been building for some time as seen in recent shopping centre purchases like the $400 million spent by a Korean pension fund for a half-stake in the <a href="https://www.propertyobserver.com.au/retail/gpt-confirms-sale-of-half-stake-in-erina-fair-shopping-centre-to-asian-interests-for-%243971-million-thegptgroup-jllnews/2013052061487" target="_blank">Erina Mall shopping centre on the Central Coast </a>and numerous other transactions and projects.
Andrew Stoner revealed in the same parliamentary budget update that he had just met with the Commonwealth Bank's head of institutional banking Ian Saines, David Jones chief executive officer Paul Zahra and China UnionPay chairman Su Ning to launch a partnership that will see all 170,000 Commonwealth Bank merchant terminals across Australia accept China UnionPay cards.
“This is a wonderful thing for the increasing number of Chinese tourists visiting Australia, Chinese students and business visitors to our fair shores who use China UnionPay cards,” Stoner said.
For its part, David Jones stores will now accept UnionPay credit cards.
All of this points to expectation of a rise in Chinese investor interest across all spheres of the Australian economy from business to farms to hotels to prestige real estate.
This is clearly happening. 
But as to the impact of the significant investor visa program, it has been largely non-existent to date.
Too many unknown factors remain for anyone to be certain just what kind of impact it will have over the medium and long-term.
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More hype than reality: Significant investor visa “queue jumpers” yet to be significant

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A composite of both private sector and ABS housing data points to a "modest slowdown" in housing market growth, says Westpac senior economist Matthew Hassan. 
His comments follow the latest data from RP Data-Rismark showing a surprise <a target="_blank" href="/news">1.2% correction in dwelling values over May</a> despite Sydney auction clearance rates heading for their highest monthly result since April 2002. 
“The latest monthly data on Australia's housing market is a little tricky to reconcile with auction clearance rates hitting new highs in Sydney and recovering solidly in Melbourne, and a range of other market metrics pointing to continued recovery but a notable decline in prices through April-May,” says Hassan.
However, he points out that even in the two major capital cities, auction activity should only really be read as a "partial measure  as they account for about 15% of turnover in Sydney and 20% in Melbourne and tends to cover a different stock of properties compared to private sales".
To account for the volatility in monthly housing market measures, Westpac track six month annualised growth rates “for confirmation of shifts, keeping half an eye on three month growth rates near turning points”. 
It also favours using a composite of the four data providers – RP Data- Rismark, Australian Property Monitors (APM), ABS and Residex - to “strip out some of the measurement 'noise'”.
“On this basis there has been a modest slowdown from a 3.5% annual pace over the second half of last year to around 2% currently," says Hassan.
But, he adds, if the April-May weakness extends into June and is confirmed by other measures, that could be a more “pronounced slowing”.
 “Interpretation-wise, there are a few things that may account for the 'wedge' between the strong auction indicators and soft price growth – it may be that sellers are accepting lower prices in order to get sales or it may be that there is more pronounced weakness outside of the 14-20% of sales that go via auction. 
“That said, the divergence is not normally that large. 
“On balance we would tend to favour the auction data for now but will as it stands the price data is showing no indication of following earlier high clearance rate periods into double-digit price growth territory,” he says.
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April and May composite data points to "modest" slowdown in housing market: Westpac’s Matthew Hassan

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Investors should get their foot on the property ladder now while interest rates are low and heading lower and as the property market heats up, says Yellow Brick Road founder Mark Bouris.
“I think right now and for the next five years property in the major cities will become the hottest investment class you can possibly think of,” Bouris said in an interview on Channel Nine’s Saturday breakfast show.
Bouris expects the RBA to cut interest rates even further – below 2.5% - with borrowers getting bank mortgage rates at historical lows of between 4% and 4.5%.
“What [these low interest rates do] is reposition house prices upwards,” Bouris says.
“From now until about five years’ time house prices will go up quite a lot and it’s a good time to take the opportunity to invest in real estate.”
Bouris says you don't want to be entering the property market in five years’ time when you are paying the top price.
According to Bouris, property investing is a “cycle game”.
“You need to get in while the rates are coming down and make sure you are not paying the top price.
“Everything in business or investments  is all about your entry price or purchase price,” he says.
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Property the “hottest investment class” for the next five years: Mark Bouris

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Property investors should not be too alarmed at the <a href="/news">1.2% fall in capital city house prices recorded over May</a> by RP Data- Rismark, suggests economist Christopher Joye.
Weekly auction clearance rates suggest the housing market remains “in very good shape” writes Joye in The Australian Financial Review today.
He says the latest decline may be the result of people “questioning the outlook” following the May 7 rate cut – as happened a year ago, when consumer confidence “barely budged” and house prices fell 1.1% despite a surprise double (50 basis points) rate cut on May 2.
“It took until June and July for house prices and consumer confidence to belatedly respond,” writes Joye.
Joye says it would be a “real surprise” if house prices and mortgage lending did not rise in the coming months spurred on by low mortgage rates below 5%.
His comments suggest the RBA won’t response to the latest housing market data with a rate cut given the recent weakness in the Australian dollar give it a “more accommodative policy stance than it originally planned”.
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Housing market still in “very good shape” despite “sizeable” May fall: Christopher Joye

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Perth was the only mainland capital city to buck a "broad-based" 1.2% decline in capital city dwelling values in May, the latest RP Data- Rismark monthly index shows.
This follows a 0.5% fall in April with RP Data-Rismark recording an eight capital city median value of $491,000 for May.
Capital city dwelling values are now just 1.1% higher over the first five months of 2013 and 2.9% higher compared to May last year, when the market bottomed out following a a 7.4% peak-to-trough fall.
Melbourne stood out as being one of the weakest performers with values down 2.1% over May and 1.9% over the quarter to a median of $512,500.
Adelaide dwelling values fell 2.3% to $380,000, Sydney dwelling values fell 1% to $580,000 and Brisbane dwelling values fell 0.9% to $425,000.
In contrast, Perth dwelling values lifted 1% over May to a median of $500,000 with the gain restricted to detached houses, which lifted 1.1% over May to a median of $519,000 with Perth unit values falling 0.4% to $423,250.
Perth house values are up 6.9% over the past 12 months while unit values have fallen 0.5% over the same period.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2013/06/rpdataindexjune3one.gif"><img src="/images/stories/2013/06/rpdataindexjune3onethumb.gif"></a>
Among the smaller capital city markets, Darwin experienced a notable correction, with its dwelling values down 3.5% to $487,500 while Canberra dwelling values fell 1.3% to $512,250.
Dwelling values declined despite key housing market metrics such as auction clearance rates, vendor discounting, time-on-market and transaction volumes performing well with a drop in consumer confidence and weak mortgage growth factors in receding property values.
According to Rismark CEO Ben Skilbeck there are one of two means by which these metrics improve: “either buyers increase their offer price in order to meet vendor expectations or, alternatively, vendors reduce their expectations in order to meet buyer offers”.
“The first is usually associated with a rising market, while the second relates to a flat or declining market.
“If credit growth is anaemic and consumer confidence is weak, both of which is currently the case, it’s a good indication that strength in auction clearance rates, and other associated metrics, may largely be driven by vendors reducing their initial expectations in order to meet buyer offers.
“Given the weak housing markets of 2011 and 2012 were followed by a very robust 2013 first quarter, we may well be seeing some natural market volatility associated with vendors acquiescing and taking the opportunity to sell,” he says.
<a href="https://www.propertyobserver.com.au/residential/price-growth-didn-t-emerge-amid-stellar-sydney-autumn-auction-results-and-speedy-private-treaty-sales/2013053061705" target="_blank">The same point </a> - that a stellar autumn auction season and speedy private treaty sales did not translate into price growth - was made on Property Observer last week.
Combined with these metrics, the May 7 RBA rate cut to 2.75% - passed on in full by nearly all lenders – also failed to drive up property values.
<img src="/images/stories/2013/06/rpdatachartjune3onethumb.gif" width="470" height="173" alt="rpdatachartjune3onethumb">
RP Data national research director Tim Lawless notes that the fall in dwelling values over the month of May and for the quarter was “broad-based with all capital cities apart from Perth and Hobart (up 2.2% over May to $321,000) recording a fall in values over the month, and with half of the capital cities recording a fall in values over the quarter”.
Despite its correction in May, Darwin remains the strongest performing housing market since the market bottomed out in May last year with values up 10.1%
It also has the highest gross rental yields for both houses (6.2%) and units (6.3%).
Melbourne is the weakest rental market with houses offering a gross rental yield of 3.7% and Melbourne units at 4.6%.
Lawless says the weak May result comes on the back of a substantial fall in consumer confidence over both April and May which can partly be attributed to a growing level of uncertainty about domestic economic conditions and possibly a sour reaction by consumers to the Federal Budget announcements in mid-May.
“The RP Data-Rismark daily index tracked higher from late April through to the 10th of May, and then went into a consistent decline over the remainder of the month.
“How much of this downwards pressure can be attributed to the lower confidence reading is anyone’s guess, but the correlation of housing market conditions with consumer confidence is a strong one.
“If we see confidence levels remain in the doldrums, there is likely to be a similar dampening effect on the housing market,” he says.
RP Data’s combined capital city index is stock weighted, meaning that larger cities like Sydney, Melbourne and Brisbane have a larger impact on the aggregated results.
“With Melbourne dwelling values down by 2.1% over the month and 1.9% over the last three months, the pull-down effect on the aggregated index has been substantial,” says Lawless.
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Perth bucks 1.2% "broad-based" property market decline in May: RP Data-Rismark

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With expectations strong that the RBA will leave the cash rate on hold tomorrow at 2.75%, the latest APRA banking figures provide a sobering reminder of just how the dominant the major banks are in the home loan market.
And how far behind the so-called “fifth banking pillar” is in reality.
The Commonwealth Bank is Australia’s biggest mortgage lender by some distance with an owner-occupier home loan book of $219 billion, followed by Westpac ($170 billion), NAB ($141 billion) and ANZ ($128 billion), the APRA April figures show.
The fifth biggest mortgage lender to owner-occupiers is ING Direct with a home loan book of $27.6 billion followed by the regional banks Suncorp ($24 billion), Bendigo &amp; Adelaide Bank ($16 billion) and Bank of Queensland ($12.5 billion).
Collectively, these second-tier banks have a mortgage book of around $80 billion, still nearly $50 billion below that of the smallest of the big four banks, ANZ.
In investment housing lending, the top two reverse with Westpac leading the pack with a $125 billion mortgage book followed by the Commonwealth Bank ($98 billion), NAB ($53 billion) and ANZ ($49 billion).
Bank of Queensland is the fifth-biggest investment mortgage lender ($10.5 billion) followed by Suncorp ($9.8 billion), ING ($9.7 billion) and Bendigo and Adelaide Bank ($9.6 billion).
For borrowers considering taking out a home loan with one of the big four banks or refinancing into a big four bank home loan, these are their lowest advertised fixed and variable offerings:
Standard variable rates:
<table border="1" cellspacing="0" cellpadding="0" width="346"><tbody>
<tr>
<td width="134" valign="top">
Provider
</td>
<td width="97" valign="top">
Rate
</td>
<td width="116" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="134" valign="top">
NAB
</td>
<td width="97" valign="top">
6.13%
</td>
<td width="116" valign="top">
6.22%
</td>
</tr>
<tr>
<td width="134" valign="top">
ANZ
</td>
<td width="97" valign="top">
6.13%
</td>
<td width="116" valign="top">
6.23%
</td>
</tr>
<tr>
<td width="134" valign="top">
Commonwealth
</td>
<td width="97" valign="top">
6.15%
</td>
<td width="116" valign="top">
6.29%
</td>
</tr>
<tr>
<td width="134" valign="top">
Westpac
</td>
<td width="97" valign="top">
6.26%
</td>
<td width="116" valign="top">
6.39%
</td>
</tr>
</tbody></table>
Discount variable rate package offerings:
<table border="1" cellspacing="0" cellpadding="0" width="470"><tbody>
<tr>
<td width="134" valign="top">
Provider
</td>
<td width="124" valign="top">
Loan name
</td>
<td width="97" valign="top">
Rate
</td>
<td width="116" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="134" valign="top">
NAB
</td>
<td width="124" valign="top">
NAB Choice Package with 85 basis point saving $500k+)
</td>
<td width="97" valign="top">
5.28%
</td>
<td width="116" valign="top">
5.66%
</td>
</tr>
<tr>
<td width="134" valign="top">
Commonwealth Bank
</td>
<td width="124" valign="top">
Wealth Package 80 basis point saving
</td>
<td width="97" valign="top">
5.35%
</td>
<td width="116" valign="top">
N/A
</td>
</tr>
<tr>
<td width="134" valign="top">
ANZ
</td>
<td width="124" valign="top">
Breakfree Home Loan Package with 70 basis point discount ($700k+)
</td>
<td width="97" valign="top">
5.43%
</td>
<td width="116" valign="top">
5.50%
</td>
</tr>
<tr>
<td width="134" valign="top">
Westpac
</td>
<td width="124" valign="top">
Premier Advantage Package with 70 basis point discount
</td>
<td width="97" valign="top">
5.56%
</td>
<td width="116" valign="top">
N/A
</td>
</tr>
</tbody></table>
Lowest one-year fixed-rate offerings
<table border="1" cellspacing="0" cellpadding="0" width="470"><tbody>
<tr>
<td width="137" valign="top">
Provider
</td>
<td width="123" valign="top">
Loan name
</td>
<td width="95" valign="top">
Rate
</td>
<td width="114" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="137" valign="top">
Westpac
</td>
<td width="123" valign="top">
Choice account and Premier Advantage package (limited time offer)
</td>
<td width="95" valign="top">
4.79%
</td>
<td width="114" valign="top">
5.87%
</td>
</tr>
<tr>
<td width="137" valign="top">
NAB
</td>
<td width="123" valign="top">
NAB Choice Package
</td>
<td width="95" valign="top">
5.09%
</td>
<td width="114" valign="top">
5.86%
</td>
</tr>
<tr>
<td width="137" valign="top">
ANZ
</td>
<td width="123" valign="top">
Breakfree Home Loan Package with 15 basis point discount
</td>
<td width="95" valign="top">
5.19%
</td>
<td width="114" valign="top">
5.66%
</td>
</tr>
<tr>
<td width="137" valign="top">
Commonwealth Bank
</td>
<td width="123" valign="top">
Wealth Package
</td>
<td width="95" valign="top">
5.19%
</td>
<td width="114" valign="top">
5.97%
</td>
</tr>
</tbody></table>
Lowest three-year fixed-rate offerings
<table border="1" cellspacing="0" cellpadding="0" width="470"><tbody>
<tr>
<td width="131" valign="top">
Provider
</td>
<td width="131" valign="top">
Loan name
</td>
<td width="96" valign="top">
Rate
</td>
<td width="111" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="131" valign="top">
ANZ
</td>
<td width="131" valign="top">
Breakfree Home Loan Package with 15 basis point discount
</td>
<td width="96" valign="top">
4.99%
</td>
<td width="111" valign="top">
5.39%
</td>
</tr>
<tr>
<td width="131" valign="top">
NAB
</td>
<td width="131" valign="top">
NAB Choice Package
</td>
<td width="96" valign="top">
5.09%
</td>
<td width="111" valign="top">
5.80%
</td>
</tr>
<tr>
<td width="131" valign="top">
Commonwealth Bank
</td>
<td width="131" valign="top">
Wealth Package
</td>
<td width="96" valign="top">
5.09%
</td>
<td width="111" valign="top">
5.86%
</td>
</tr>
<tr>
<td width="131" valign="top">
Westpac
</td>
<td width="131" valign="top">
Fixed with 20 basis points discount
</td>
<td width="96" valign="top">
5.29%
</td>
<td width="111" valign="top">
N/A
</td>
</tr>
</tbody></table>
*A comparison rate includes both the interest rate and the fees and charges relating to a loan, combined into a single percentage figure.
For information on refinancing, watch our free webinar <a href="/news">The Do's and Don’ts of Refinancing Your Existing Home Loan ... and How to Avoid Unnecessary Hurdles</a>.
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Cash rate likely to remain on hold in June: cheapest Big Four banks fixed and variable offerings

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There is "medium-term risk" of house prices rising too fast and Australia entering housing "bubble territory", says The Australian Financial Review’s economic commentator David Bassanese.
Bassanese expects the RBA to have a “fairly easy” decision to make about leaving the cash rate on hold at 2.75% when it meets tomorrow, but beyond that the path is uncertain.
He says the RBA would want a “reasonable lift” in established house prices as part of a recovery in non-mining sectors of the economy but would not want house prices to rise “too far or too fast” – the reason it is likely to be cautious about cutting rates “anytime soon”.
He still maintains the belief that there is one more 25 basis point rate cut on the cards.
He expects house prices to rise by around 10% to 15% over the course of the RBA’s easing cycle, peaking around mid-2014 and says the recent improvements in home sales rates in NSW suggests house prices are moving in the right direction.
“Having been flat for several years, they are not yet in danger of reaching bubble territory – though that remains a medium-term risk,” he says.
Since November 2011 the RBA has cut the cash rate by 200 basis points from 4.75% to 2.75%.
As noted by <a href="/news">AMP Capital chief economist Shane Oliver in May</a>, house prices had risen just 1.9% a year-and-a-half into the easing cycle since November 2011 compared with an 11% gain in the last easing cycle, which commenced in September 2008.
RP Data- Rismark will today report around <a href="https://www.propertyobserver.com.au/residential/autumn-blues-as-dwelling-values-dip-again-in-may-rpdata-timlawless/2013052661671" target="_blank">a 1% correction in house prices</a> following a 0.5% decline in April.
<a href="/news">Twenty four out of twenty five economists</a> polled by Bloomberg expect the RBA to leave the cash rate on hold in June when it meets on Tuesday.
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"Medium-term risk" of Australia reaching housing “bubble territory”: David Bassanese

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There are 18 inner city locations in Brisbane, Sydney, Melbourne and Canberra likely to appeal to a growing “white collar renter class” willing to pay a premium to be close to the city, according to new research by Urbis.
This group typically has a higher income than average, are aged between 25-39 years, without many kids and who enjoy buildings with architectural features and amenities like rooftop gardens.
Half of these locations are within five kilometres of Sydney comprising Erskineville, Alexandria, Newtown, Camperdown, Darlington, Pyrmont, Ultimo.
There are four within a short walk or drive of the Brisbane CBD (Brisbane City, Fortitude Valley, Kelvin Grove, Herston), four surround the Melbourne CBD (Melbourne, North Melbourne, Docklands and Carlton) and two in Canberra (Braddon and Civic).
Urbis provides a number of typical examples of the emerging renter class in these locations.
They include “Lucy”, a 28-year-old professional woman in the property industry, who is about to get married to her partner Ned, who is finishing his PhD.
She is renting a room in a new 45-storey apartment building in the Brisbane CBD to take advantage of its proximity to work and amenities, such as shops and bars.
After their wedding, Lucy and Ned are planning to purchase a modern, small one bedroom apartment with good views in the CBD, in another 45-storey tower.
Another example is twenty-somethings Anne and Tom, who moved from outer suburban Sydney to a one bedroom en-suite on Bowman Street in inner city Pyrmont.
The shift resulted in them paying a rental premium associated with inner city housing, which was partially offset by less spending on public transport and allowed them to sell one of their cars.
Their apartment offers good access to recreational and entertainment precincts in and around the CBD, and provides enough seclusion and distance from the day to day hustle and bustle of the CBD to not feel like an ‘inner city’ location.
According to ABS census data analysed by Urbis, renters account for 48.7% of residents in medium and high-density areas compared with 30.4% in other areas.
The average household income of this renter class is $94,400 per annum compared with $82,300 in other areas, while the Census data also shows that 60% are aged below 39.
 
<hr class="system-pagebreak">
The Urbis report also identifies the rise of young professional woman as important decision makers when it comes to the buying and renting of inner city apartments.
“Young women are now more likely to be professional and have higher incomes than was the case 15 years ago.
“They are also likely to be in a relationship, but not necessarily married. They are more independent, and have more economic power," says Urbis.
Rothelowman principle Nigel Hobart says location is an “obvious key motivator, with proximity to work, dining, sporting and entertainment all driving the choice to reside in the inner city.
“On the wish list for both owner-occupier and white-collar rental tenants are not only the obvious features such as larger floor plans, high quality finishes, fixture and fittings, generous internal storage, and good external space but also a desire to live in buildings with high quality, distinctive architecture that incorporates attractive communal spaces to facilitate interaction both with other residents and the surrounding community," Hobart says.
“These tenants seek amenity criteria similar to owner-occupiers, and are prepared to pay higher rents and sign longer term leases to secure such apartments, making them an attractive market for investors,” says Hobart.
Rothelowman designed the MaxVic development Habitat (pictured below) on Melbourne’s Southbank, which he says is an example of a project designed to meet the demands of the white-collar rental market.
<img alt="habitatjune3one" height="703" width="400" src="/images/stories/2013/06/habitatjune3one.jpg">
The project features a distinct patterned façade rising from the Sturt Street arts precinct, a rooftop sky garden and a landscaped three story vertical garden designed to appeal to a more sophisticated market.
“Today’s more informed purchaser requires these fundamentals as a given, but also demands insight into their lifestyle needs or the needs of their target tenant in the case of the investor,” Hobart says.
This inner city urban renewal favouring a more savvy and professional renter class is also noted by property investment adviser Sam Saggers from Positive Real Estate.
“Today, drive around inner Sydney and it’s easy to notice the changes to Alexandria, Green Square and Harold Park.
“The change could be argued as urban renewal and not true gentrification, as of course publically listed companies such as Mirvac are pushing a new level of housing in these zones,” Saggers says.
He also anticipates that gentrification could spread beyond the inner city zones into previously unfashionable places like Blacktown in the outer west and has identified three market drivers that often change an area for the better. They are better economics, population growth and a new zone of wealth creation, which he calls “the final piece of the puzzle that sees an area enhance itself for the better and eventual gentrification to occur based on more wealth changing the market landscape”.
According to Urbis, the spread of higher density living beyond the inner city suburbs to places like  Ringwood in Melbourne’s east and Castle Hill in Sydney’s north-west should ideally be happening, but there have yet to be substantial increases in residential density, despite these aspirations.
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New breed of Gen Y white collar renters seeking out 18 inner city apartment hotspots: Urbis

<a href="https://www.apartments.com.au/developments/broadbeach-qld-4218">Broadbeach</a> offers plenty of reasons to live vertically, but moving from a substantial family home into an apartment can expose the compromises of high-density living. Privacy, room for guests and usable living space tend to matter more when an apartment is intended as a permanent home rather than an occasional coastal base.

A typical residential floor at <a href="https://www.apartments.com.au/new-apartments/the-eveleigh-broadbeach-7-9-surf-parade-broadbeach-qld-4218">The Eveleigh</a>, on Surf Parade,&nbsp;contains just four apartments. The 94-residence development by <a href="https://www.apartments.com.au/developers/hirsch-faigen">Hirsch &amp; Faigen</a> is predominantly made up of expansive three-bedroom homes, with a limited collection of half-floor penthouses above.

Across the apartment floors, <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> has used the relatively limited number of residences to give each home greater access to natural light and outlook. Living spaces extend towards full-height glazing, while a series of bay windows frame selected views across the Pacific Ocean, city and hinterland rather than treating the building edge as a continuous wall of glass.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360965]

“The apartment floors deliver a collection of homes that embrace controlled outlook via a series of bay windows deliberately framing moments of view,” Rothelowman Director Kim Lowman said.

From outside, those projecting forms contribute to the tower’s faceted profile. Strong horizontal and vertical elements establish its proportions, while the changing position of the sun alters the light, shadow and reflection across the façade throughout the day.

The same attention moves inside the apartments, where the material palette combines warm timber, natural stone, metallic detailing and softer curved forms. Kitchens sit within the main living zone, with stone island benches, integrated joinery and European appliances, before the living areas extend towards the glazing and the outlook.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360981]

Three genuine bedrooms provide room to accommodate family and guests, while two secure car spaces and storage address some of the practical considerations that can become more noticeable when moving from a larger home. Feedback from the display suite has centred on the warmth and restraint of the interiors, with buyers commenting that the residences feel like homes rather than conventional coastal apartments.

A limited collection of half-floor penthouses occupies the upper levels, increasing the scale of the living spaces and adding private balconies and elevated finishes. From this position, the outlook extends between the ocean and hinterland.

Outside the private residences, The Eveleigh separates its shared spaces between the podium and rooftop. The podium is centred on wellness, with subtropical landscaping surrounding a swimming pool and pool terrace, yoga garden, private gymnasium, sauna and hot and cold plunge facilities. Landscaped retreats and pavilions provide additional places to sit away from the main recreation areas.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360966]

Higher in the building, a rooftop pavilion and private dining suite sit alongside resident lounge, barbecue and outdoor dining areas, opening towards panoramic views across the ocean, city and hinterland.

“Buyers are no longer just looking for an apartment, but a lifestyle where they can relax, reset, and enjoy a balanced way of living,” Hirsch &amp; Faigen Director of Sales Matt George said.

Interest to date has come from established owner-occupiers and interstate lifestyle purchasers, including buyers planning a future move to the Gold Coast. Many are coming from larger homes and want to reduce ongoing maintenance without giving up space for family and guests, privacy, two car spaces or the ability to entertain at home.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360969]

Much of that daily life can also take place beyond the building without requiring a drive. Kurrawa Beach and Pratten Park are an easy walk from Surf Parade, while Pacific Fair, Oracle Boulevard, The Oasis, restaurants, cafés, entertainment and public transport are also within walking distance.

The Eveleigh is Hirsch &amp; Faigen's fourth Gold Coast development since entering the market in 2021, following The Hemingway at Palm Beach, The Emerson at Kirra and Yves at Mermaid Beach. Each of the preceding projects sold out before completion.

“Broadbeach had been on our radar throughout our time operating on the Gold Coast,” the developer said. “Following our projects in Palm Beach, Kirra and Mermaid Beach, Broadbeach represented the natural next step for the business.”

The Surf Parade site brought together proximity to the beach, protected coastal outlooks and walkability to dining, shopping and recreation. Hirsch &amp; Faigen also identified the street as an emerging premium residential address, with enough separation from Broadbeach's busier destinations to retain a quieter environment at home.

The Eveleigh is now under construction by Maxcon, with completion forecast for mid-2028. Three-bedroom residences are currently available from $2.87 million.

[smartcode_project_cta:default project_id=149670]

Joel Robinson

The Eveleigh brings house-like apartments to Broadbeach

A long-stalled Campbelltown development site is back in play, with new plans for 139 apartments set to supersede a mixed-use scheme approved almost a decade ago but never built.

The new proposal for 28 Cordeaux Street would deliver 116 market and 23 affordable apartments in a part 14-storey building, bringing a substantial new project into a Campbelltown market where new apartment supply remains limited.

Plans have been filed over the 3,092 sqm corner site at Moore-Oxley Street, around 600 metres from Campbelltown Railway Station and the city-centre retail core.

The site already carries a mixed-use residential approval dating to 2016. Doroch Architects has now been engaged on a larger replacement scheme, which is progressing as a State Significant Development Application following a Housing Delivery Authority determination in August 2025.

The apartment mix comprises 39 one-bedroom, 72 two-bedroom and 28 three-bedroom residences. Two-bedroom apartments make up just over half of the project, while three-bedroom homes account for 20 per cent.

<img alt="First look: New 139-apartment plans revive long-stalled Campbelltown city centre site" data-entity-type="file" data-entity-uuid="136dd5b9-3791-4da6-9e31-76f533f5b4de" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Campbelltown%20da2.png?VersionId=LgOSy9nwf5u.MGswBBwaGGxuX8QpHSl_" />

Of the 139 apartments, 23 will be delivered as affordable housing under the in-fill affordable housing provisions of the Housing SEPP. The affordable component represents 15 per cent of the residential gross floor area and will be managed by a registered Community Housing Provider.

Doroch has sought to break the scale of the building into two distinct elements, with a masonry podium of around four storeys establishing the street edge before the residential tower steps back above.

The corner position has shaped that approach. Cordeaux Street faces toward the commercial and civic centre, while Moore-Oxley Street leads into the lower-scale residential neighbourhood to the south, and the design verification report describes the site as "bridging the commercial core to the north and established residential areas to the south."

The podium will be expressed predominantly in face brick, while the upper levels shift to brushed and grooved concrete cladding with darker metal detailing. Recessed sections, deep balcony edges and landscaping break down the upper form, with an approximately 11.8-metre setback to the northern boundary addressing the adjoining St Peters Anglican School.

<img alt="First look: New 139-apartment plans revive long-stalled Campbelltown city centre site" data-entity-type="file" data-entity-uuid="c8b3d2d3-c561-4bfc-a5d9-a68c0c10dac1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Campbelltown%20da1.png?VersionId=AeAEyJU02Gk2k5noUj2StziCvdQ7fW4B" />

Campbelltown has been starved of new residential developments in the last decade.

The only other notable development set to come to market this year is ALAND's Queen Square, a mixed-use precinct on over two hectares that will comprise apartments above a vibrant ground-level retail and hospitality dining precinct.

First look: New 139-apartment plans revive long-stalled Campbelltown city centre site

First Look: Sherlock Construction pitches apartments for low-rise Deception Bay

Queensland builder-developer MAYD has revealed the first look at its major North Kirra beachfront development, lodging amended plans that reduce the number of apartments and increase the proportion of larger residences.

The project is planned across a substantial 4,742 sqm amalgamated site spanning seven lots at <a href="https://www.apartments.com.au/new-apartments/2-6-pacific-parade-bilinga-qld-4225">2-6 Pacific Parade</a> and 27-33 Golden Four Drive in Bilin​ga, directly opposite Nor​th Kirra Beach.

<a href="https://www.apartments.com.au/developers/mayd-group">MAYD</a> secured the site for $32.5 million in 2025, in what was one of the Gold Coast's largest property transactions of the year.

The development will be delivered across two stages, with the first stage carrying an estimated gross realisation value of around $360 million.

The latest amendments seek to reduce the overall apartment count and shift the project further toward the owner-occupier market, with larger residences designed for buyers wanting considerably more space than traditionally offered in a beachfront apartment.

The residential mix will include townhomes, oversized two-bedroom apartments, substantial three-bedroom residences and four-bedroom homes.

MAYD has appointed Cera Stribley to lead the architecture and interiors, with the Melbourne-based design practice drawing on the beachfront setting through a series of ocean-facing terraces and heavily landscaped balconies.

Strong horizontal forms and curved balconies will define the exterior, with subtropical landscaping integrated throughout the building to soften the built form and increase the connection between the residences and the beachfront.

The project will also include an extensive collection of resident wellness and lifestyle facilities, continuing the broader shift across the Gold Coast's luxury apartment market toward larger homes supported by resort-style amenity.

<img alt="MAYD" data-entity-type="file" data-entity-uuid="d1bcbb05-e659-4b47-8bd4-1e595315e2ad" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%202.05.03%E2%80%AFPM.png?VersionId=jj0XEud1X1DuLt7_KyElhjMdZGOXmLHP" />

MAYD Founder Todd Mould said North Kirra was increasingly appealing to buyers attracted to the more established, lower-density character of the southern Gold Coast.

"North Kirra presents one of the most compelling luxury residential opportunities currently emerging in Australia, combining absolute beachfront with the character and authenticity that buyers are increasingly seeking, and the same sense of tight-knit community that defined Burleigh and Currumbin perhaps 10 or 15 years ago," Mould said.

"With Gold Coast Airport on its doorstep, it also offers a level of accessibility that broadens its appeal across almost every market demographic."

The project comes as the southern Gold Coast continues to attract an increasing share of high-end apartment development and buyer activity.

Kirra in particular has emerged as one of the region's more tightly held beachfront markets, with its relatively low-density character, established surf and hospitality scene and proximity to Gold Coast Airport differentiating it from the higher-density markets further north.

Mould said those characteristics had informed the approach MAYD and Cera Stribley had taken to the project.

"We've worked closely with Cera Stribley to create a vision that is deeply connected to its surroundings," he said.

"Inspired by the coastline itself, the architecture has been shaped around space, privacy and resort-style living, creating a collection of homes that reflects the next generation of luxury on the southern Gold Coast."

MOTIV Managing Director Carly Cottam, who has been appointed to market the project, said buyer attention had continued to move south along the Gold Coast.

"Purchasers who may once have defaulted to Broadbeach, Main Beach or Surfers Paradise are increasingly recognising the value of a genuine beachfront location that offers lower density, strong amenity and a more established sense of community," Cottam said.

"Kirra has a powerful combination of growing demand and genuine scarcity. Beachfront supply is inherently constrained, the area remains relatively low density, and buyers are increasingly placing a premium on locations that feel established, uncrowded and authentic rather than heavily developed."

Cottam said the proximity to Gold Coast Airport was also proving increasingly important for interstate and second-home buyers.

"Being minutes from Gold Coast Airport makes it particularly compelling for interstate buyers, frequent travellers and second-home purchasers who can access an authentic coastal lifestyle almost immediately after stepping off a flight."

The acquisition takes MAYD's active development portfolio to more than $500 million, with the North Kirra project representing one of its largest undertakings to date.

MAYD is targeting an early 2027 launch.

First look at MAYD's North Kirra mixed-use precinct

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Castle Hill, the longtime hub of the Hills District, has been one of the major beneficiaries of Sydney's Metro expansion, with improved connectivity helping drive continued population growth, development and buyer demand across the Hills District.

But despite that growth, the suburb has seen relatively few major new apartment projects brought to market over the past 18 months.

Hills District developer Reve Group is looking to fill that gap with <a href="https://www.apartments.com.au/new-apartments/nova-r-ve-castle-hill-2-garthowen-crescent-castle-hill-nsw-2154">Nova Rêve</a>, a major new mixed-use precinct on the corner of Garthowen Crescent and Old Castle Hill Road, a short walk from Castle Hill Metro Station and Castle Towers.

[smartcode_project:default project_id=152737 project_image_fid=377679]

The project will comprise three residential towers alongside a hotel, restaurants, cafes and a skybar, more than 1,600 sqm of ground-floor retail and almost an acre of landscaped gardens.

It represents the largest project undertaken by Reve Group, the development arm of the Kassis family, which has been building across the Hills District for more than 30 years through Kassis Homes.

[smartcode_project:default project_id=152737 project_image_fid=377675]

Nova Rêve also represents a significant step up from the family's first apartment development, Grand Rêve, which was delivered nearby on Garthowen Crescent.

Grand Rêve introduced larger, house-like apartment layouts and premium inclusions including Wolf and Sub-Zero appliances to the Castle Hill market.

Nova Rêve takes that approach to a precinct scale, combining the residential component with hospitality, retail and substantial public and resident landscaping.

[smartcode_project:default project_id=152737 project_image_fid=377685]

Reve Group Managing Director Sam Kassis said the project reflected the family's three decades of building in the Hills, which has evolved from trophy homes on quarter-acre blocks to larger-scale apartment development.

"Grand Rêve was our first apartment project here and it showed us what this pocket of Castle Hill could be. Nova Rêve is the refinement of that idea: not just apartments, but a place the whole suburb can use," Kassis said.

A key part of that approach is the hotel, which has been designed to operate as an amenity for the wider Castle Hill community rather than solely hotel guests.

It will include restaurants, cafes, skybars and all-day dining, alongside conference and event facilities catering to business functions, community groups and private events.

At ground level, more than 1,600 sqm of shops and cafes will open onto the surrounding streets and landscaped areas.

Almost an acre of gardens designed by Land and Form Studios will run through the precinct, incorporating pathways, seating, barbecue areas and children's play spaces.

[smartcode_project:default project_id=152737 project_image_fid=377680]

Reve Group's Romio Georges said creating an active ground plane had been central to the planning of Nova Rêve.

"There are gardens with pathways, barbecues, seating and play areas, shops and cafes opening onto the street, and a hotel with restaurants and a skybar that anyone in Castle Hill can walk into," Georges said.

The project's elevated position on one of Sydney's highest ridgelines will also provide apartments with outlooks toward the Sydney skyline, surrounding parkland and the Blue Mountains.

More than 80 per cent of the apartments will occupy corner positions, with Turner responsible for both the architecture and interiors.

&nbsp;

[smartcode_project_cta:default project_id=152737]

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</main>

Larry Schlesinger

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