<html><body>
The decision to allow Perth shops to trade on Sundays helped push up the performance of Federation Centres' WA portfolio of shopping centres, the group has revealed in its March quarter update.
The new laws were introduced on August 26 last year allowing all general retail shops in the <a target="_self" href="https://www.commerce.wa.gov.au/consumerprotection/PDF/Misc/Metropolita_area_map.pdf">Perth metropolitan area</a>, including major supermarkets and department stores, the right to open their doors on Sunday between 11am and 5pm.
“Following the introduction of Sunday trading in August 2012, the performance of our WesternAustralian portfolio was particularly strong, recording moving average turnover growth of 4.9% at the end of the period," said Federation Centres chief operating officer Mark Wilson.
The performance of the WA portfolio was substantially better than annual retail sales growth of 2.4% and the performance of Federation Centres shopping malls in other states.
"Our NSW portfolio also showed encouraging signs, with moving average turnover growth of 2.5%.
"The portfolio located in NSW and Western Australia represents approximately 50% of the total by value.
"Trading conditions in Victoria and Queensland however remained more subdued, with moving average turnover growth of only 0.3% and 1.2% respectively over the period," he said.
Overall Federation Centres reported a "solid" first quarter of the year with occupancy at a rate of 99.4%.
Overall annual sales growth increased to 2.4% at 31 March 2013 from 2.0% at 31 December 2012, with specialty retailers continuing a positive trend to show annual sales growth of 2.5%.
Federation Centres, formely called Centro Retail Australia, has a portfolio of 46 shopping centres worth $4.4 billion.
It has recently sold over $200 million worth of non-core shopping centre assets held in Centro syndicates, while also acquiring the <a href="/news">Centro at Gympie for %63.8 million</a>.
</body></html>

lschlesinger-FZcF9M3vE6

Perth Sunday trading delivers boost to Federation Centres WA malls

<html><body>
Sydney remains the preferred location of choice for Australia's biggest companies with around 36% of the companies listed on the S&amp;P ASX 300 headquartered in the city.
And it is set to grow in prominence in the coming years with the S&amp;P ASX All Ordinaries Index up 23% from May 2012 to mid-February 2013.
"Historically, there is a lag of between one and three years from movements in the All Ordinaries to net absorption in the Sydney CBD," according to a new Sydney office report by Andrew Ballantyne and Tim O’Connor of Jones Lang LaSalle.
<img alt="ASX_300_headquarters" height="311" width="470" src="/images/stories/april23maitland/ASX_300_headquarters.jpg">
Perth, with its mining boom attracting resource companies to lease in the city, is not far behind Sydney with about 80 of the S&amp;P 300 based in the WA capital city.
Melbourne is third and Brisbane fourth, according to Knight Frank.
"Sydney is the headquarters of corporate Australia.
"As such, Sydney is the finance and administrative heart of Australia. 
"The market capitalisation of the Australian Stock Exchange is $1,400 billion, making it the ninth largest stock exchange in the world.
</body></html>

Sydney CBD remains the capital for big business headquarters: Chart of the week

<html><body>
The decision by Fivex Commercial Property to convert office space on Flinders Street into retail space for <a href="/news">Japanese gift and homewares retailer Daiso</a> is likely to herald a trend across Melbourne as large ground floor retail space becomes scarcer. 
The first floor in Fivex's 'Riverview House” across the road from Flinders Station, and previously tenanted by the Commonwealth Bank, is currently being converted into a Daiso store, accessed via escalators. 
The move is in line with Fivex’s plans to reposition the use of the building with another floor in the building being converted into a gym and another is being transformed into a child-care centre. 
A digital advertising board  was recently wrapped around the first floor of the building on the corner of Flinders Street and Elizabeth Street to generate a seperate source of income. 
The Daiso deal has an upside for both tenant and landlord: the landlord receives a higher rent for the retail space then he would if it were office space while the tenant pays a lower rent then they would if they had leased a ground floor space, though without the passing foot traffic. 
The lease was negotiated by Ben Tremellen, Colliers International retail leasing manager, who tells Property Observer that international retailers are struggling to find large ground floor spaces in the Melbourne CBD. 
He says new international retailers all require at least 500 square metres of space and they all want to be on Collins Street between Elizabeth and Swanston Street or on the Bourke Street Mall. 
“It’s near impossible to find this sort of foot print,” he says. 
“There are definitely a lot of office landlords seeking to activate the ground floor and level one and provide space for those retailers that can’t get a footprint on the ground floor,” he says. 
Converting from office to retail could also become an option for some office landlords who can’t secure tenants in the lower floors of some of their buildings. 
The Melbourne office market is expected to soften further over 2014 and move increasingly in favour of tenants over landlords. 
BIS Shrapnel forecasting the vacancy rate to hit 10% by the end of the year. 
The Property Council of Australia recorded the highest CBD office vacancy rates in Flagstaff (13.9%), the Western Core (8.2%), Eastern Core (7.1%) and Spencer Street (6.9%) in its most recent office market report.
Retailers seeking prime Melbourne CBD space may also not have the appetite for the high rents charged on Bourke Street. 
According to Knight Frank, "super-prime" rents on Bourke Street Mall range from $7,500 per square metre to $10,000 per square metre.
</body></html>

Office-to-retail conversion a growing CBD trend as ground floor space dries up: Colliers International

<html><body>
The value of commercial finance commitments rose 1.5% in March to $29.64 billion, following a rise of 0.9% in February, according to the latest seasonally-adjusted data from the ABS.
The rise in March and February followed a 9% fall in January with commercial lending continuing to trend downwards.
In trend terms, loans for commercial purposes were down 1.1% over March.
Revolving credit commitments rose 4.7%, after a fall of 6.3% in the previous month.
Fixed lending commitments rose 0.4%, following a rise of 3.4% in the previous month.
The value of commercial mortgage commitments for the purchase of housing for rent or re-sale trended up 1.4% in March 2013 and the seasonally adjusted series rose 4.6%.
The value of total personal finance commitments (credit cards, personal loans) rose 0.6% in seasonally adjusted terms.
Fixed lending commitments rose 10.1%, while revolving credit commitments fell 11.8%.
The value of total lease finance commitments trended down 0.6% in March 2013. The seasonally adjusted series fell 4.1%, after a rise of 1.6% in February 2013.
Yesterday, the ABS revealed that the number of housing finance commitments <a target="_blank" href="https://www.propertyobserver.com.au/residential/mortgage-lending-surges-up-52-in-march-abs/2013051361314?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news">lifted 5.2% in March</a> and 5.8% in value, led by strong gains in NSW and Victoria.
</body></html>

Commercial mortgage commitments up 1.5% in March: ABS

<html><body>
Westfield speciality tenants signing new leases in Australian malls have scored an average 5.1% rent reduction than the expired rents, according to the group’s March quarter update.
The shopping centre group completed 380 leasing deals over the first three months of the year across its portfolio of 38 malls in Australia.
Excluding new projects, the leases represented 2.2% of specialty retail space across the Australian portfolio.
The rent reductions were offered against a subdued retail backdrop with comparable specialty sales up just 0.3% for the quarter.
Westfield reported that retail sales in the quarter were negatively impacted by the timing of Easter as well as 2012 being a leap year.
“Whilst retail conditions remain subdued the productivity of the portfolio remains high at $9,863 per square metre (psm) with continuing demand for space from both domestic and international retailers,” said Westfield in its quarterly update.
"Average specialty rent for the Australian / New Zealand portfolio grew by 2.4% from March 2012 with average rent in Australia now at $1,522 psm and New Zealand at NZ$1,127 psm.
"In Australia, for the 3 months over 380 leasing deals were completed. Excluding projects, this represented 2.2% of specialty area, which were completed at rents 5.1% lower than expiring rents," 
Overall, Westfield said performance across the group's global operations over the three months to March 31 was in line with expectations.
It previously reported that <a target="_blank" href="https://www.propertyobserver.com.au/retail/westfield-top-10-malls-westfield-sydney-shines-but-bondi-junction-disappoints/2013040260098">Westfield Sydney and Westfield Liverpool</a> were the top performing mall in its Australia and New Zealand portfolio.
During the quarter, Westfield commenced $700m of new projects including the $400m redevelopment of the Mt Gravatt mall in Brisbane, the US$150m redevelopment at Garden State Plaza in New Jersey and the US$90m redevelopment at Montgomery in Maryland.
It also entered into an agreement with O'Connor Capital Partners to form a US$1.28bn joint venture comprising a portfolio of six Westfield regional malls in Florida while disposing of its joint venture interest in Brazil.
Westfield's global portfolio comprises 100 shopping centres in 4 countries with around 22,000 retail shops, 1.1bn annual customer visits and over $40bn in annual retail sales. 
The global portfolio at 31 March 2013 was 97.4% leased, up 20 basis points compared to the same period last year.
</body></html>

Westfield's Australian tenants score 5% discount on new leasing deals amid "subdued" retail conditions: March quarter update

<html><body>
The tiny Macarthur Credit Union has become only the third lender to pass on more than the RBA’s 25 basis point May cash rate cut to borrowers.
The credit union, which dates back to 1971 when it formed to service coal miners and truck drivers as the Clutha Employees Credit Union Ltd, cut its standard variable rate by 26 basis points to offer a new 5.99% standard variable rate.
As the Macarthur Credit Union, it services 17,000 members in Camden, Campbelltown and Wollondilly in the Macarthur region of NSW, south west of Sydney.
The other lenders to pass on more than the RBA's May cash rate reduction to date are ANZ (27 basis points) and the Greater Building Society (30 basis points).
“It’s great to see most lenders passing on the Reserve Bank’s 0.25 percentage points and even better to see some lenders going further. Macarthur Credit Union is the third lender so far to drop its standard variable rate by more than the Reserve Bank’s 0.25 percentage point cash rate drop, even if it’s only by an extra 0.01 percentage point,” said RateCity.com.au CEO Alex Parsons.
“We’re hoping that this latest round of rate cuts by the Reserve Bank will spark greater competition between lenders. The game has changed for Australia’s lending market and now is the time for borrowers to take advantage of what lenders are offering.
RateCity.com.au has counted 39 lenders announcing rate cuts since last week’s decision by the RBA to cut the cash rate by 25 basis points to a 53-year-low of 2.75%:
<div align="center">
<table align="left" style="width: 470px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="45%" nowrap>
Company
</td>
<td width="32%" nowrap>
Standard variable
rate movement
</td>
<td width="22%" nowrap>
New standard
variable rate
</td>
</tr>
<tr>
<td width="45%" nowrap>
Greater Building Society
</td>
<td width="32%" nowrap>
-0.30%
</td>
<td width="22%" nowrap>
5.75%
</td>
</tr>
<tr>
<td width="45%" nowrap>
ANZ
</td>
<td width="32%" nowrap>
-0.27%
</td>
<td width="22%" nowrap>
6.13%
</td>
</tr>
<tr>
<td width="45%" nowrap>
Macarthur Credit Union
</td>
<td width="32%" nowrap>
-0.26%
</td>
<td width="22%" nowrap>
5.99%
</td>
</tr>
<tr>
<td width="45%" nowrap>
AMP Bank
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
6.25%
</td>
</tr>
<tr>
<td width="45%" nowrap>
Aussie Home Loans
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
5.24%
</td>
</tr>
<tr>
<td width="45%" nowrap>
Bank MECU
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
5.74%
</td>
</tr>
<tr>
<td width="45%" nowrap>
Bank of Melbourne
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
6.15%
</td>
</tr>
<tr>
<td width="45%" nowrap>
Bank SA
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
6.22%
</td>
</tr>
<tr>
<td width="45%" nowrap>
Bankwest
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
6.14%
</td>
</tr>
<tr>
<td width="45%" nowrap>
Bendigo Bank
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
6.26%
</td>
</tr>
<tr>
<td width="45%" nowrap>
BMC Mortgage
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
5.28%
</td>
</tr>
<tr>
<td width="45%" nowrap>
BOQ
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
6.26%
</td>
</tr>
<tr>
<td width="45%" nowrap>
Coastline Credit Union
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
5.34%
</td>
</tr>
<tr>
<td width="45%" nowrap>
Commonwealth Bank
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
6.15%
</td>
</tr>
<tr>
<td width="45%" nowrap>
Heritage Bank
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
5.89%
</td>
</tr>
<tr>
<td width="45%" nowrap>
IMB
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
5.91%
</td>
</tr>
<tr>
<td width="45%" nowrap>
ING DIRECT
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
5.41%
</td>
</tr>
<tr>
<td width="45%" nowrap>
Intech Credit Union
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
5.93%
</td>
</tr>
<tr>
<td width="45%" nowrap>
Macquarie Bank
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
6.24%
</td>
</tr>
<tr>
<td width="45%" nowrap>
MyRate
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
5.42%
</td>
</tr>
<tr>
<td width="45%" nowrap>
nab
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
6.13%
</td>
</tr>
<tr>
<td width="45%" nowrap>
Newcastle Permanent
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
5.80%
</td>
</tr>
<tr>
<td width="45%" nowrap>
P&amp;N Bank
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
5.95%
</td>
</tr>
<tr>
<td width="45%" nowrap>
Pacific Mortgage Group
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
5.02%
</td>
</tr>
<tr>
<td width="45%" nowrap>
People's Choice Credit Union
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
6.12%
</td>
</tr>
<tr>
<td width="45%" nowrap>
Police Credit
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
5.74%
</td>
</tr>
<tr>
<td width="45%" nowrap>
Queenslanders CU
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
5.25%
</td>
</tr>
<tr>
<td width="45%" nowrap>
RAMS Home Loans
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
6.10%
</td>
</tr>
<tr>
<td width="45%" nowrap>
RESI Mortgage Corp
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
5.31%
</td>
</tr>
<tr>
<td width="45%" nowrap>
SGE Credit Union
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
5.82%
</td>
</tr>
<tr>
<td width="45%" nowrap>
St George Bank
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
6.24%
</td>
</tr>
<tr>
<td width="45%" nowrap>
Summerland CU
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
5.54%
</td>
</tr>
<tr>
<td width="45%" nowrap>
Suncorp Bank
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
6.24%
</td>
</tr>
<tr>
<td width="45%" nowrap>
UBank
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
4.87%
</td>
</tr>
<tr>
<td width="45%" nowrap>
Westpac
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
6.26%
</td>
</tr>
<tr>
<td width="45%" nowrap>
Yellow Brick Road
</td>
<td width="32%" nowrap>
-0.25%
</td>
<td width="22%" nowrap>
6.15%
</td>
</tr>
<tr>
<td width="45%" nowrap>
loans.com.au
</td>
<td width="32%" nowrap>
-0.24%
</td>
<td width="22%" nowrap>
4.75%
</td>
</tr>
<tr>
<td width="45%" nowrap>
Community First Credit Union
</td>
<td width="32%" nowrap>
-0.22%
</td>
<td width="22%" nowrap>
6.12%
</td>
</tr>
<tr>
<td width="45%" nowrap>
Police Bank
</td>
<td width="32%" nowrap>
-0.20%
</td>
<td width="22%" nowrap>
5.84%
</td>
</tr>
</tbody></table>
</div>
Source: RateCity.com.au, ranked by biggest cuts then alphabetically, effective dates vary between lenders
</body></html>

Macarthur Credit Union beats RBA with 26 bps rate cut: RateCity guide of 39 lender rate cuts

<html><body>
Midland Brick heiress Marilyn New has finally secured the sale of her Perth hotel with the four star Esplanade River Suites serviced apartments in Como selling to the Chinese-based Narada Hotel Group for around $31 million.
A year ago, she sold the 4.5-star, 300-room Esplanade Hotel in Fremantle to <a href="https://www.propertyobserver.com.au/leisure/marilyn-new-sells-fremantles-esplanade-hotel-for-%2490-million/2012040454156">Singaporean property fund Ascendas</a> for $90 million.
Narada’s purchase, reported by The Australian Financial Review, continues a trend of Asian hotel groups buying prominent Australian hotels.
Recent noteworthy purchases include the Dong Run Group purchasing the <a href="https://www.propertyobserver.com.au/industry-news/palazzo-versace-hotel-sale-helps-lift-sunland-interim-profits-as-residential-sales-slow/2013021459356">Palazzo Versace hotel on the Gold Coast</a> for $68.5 million at the end of 2012, Hong Kong-listed Shangri-La Asia paying $352 million to fully own the Sydney’s Shangri-La Hotel in The Rocks and William Han, chairman of China-based White Horse Australia Holdings Pty Ltd and non-executive director of Western Australia's Padbury Mining buying Lindeman Island in the Whitsundays for around $12 million in April last year with plans to redevelop the island.
Narada bills itself as one of the Top 10 hotel groups in China and among the Top 100 in the world, managing 15,000 guestrooms in 11 provinces in China.
The group was established in 1995 and has assets comprising hotels, infrastructure and real estate development worth 5 billion yuan ($816 million).
The Esplanade River Suites on Melville Parade overlooks the Swan River, and features 101 guest rooms and apartments as well as the Pagoda Restaurant and Bar and conferencing facilities.
It opened in February 1998 on the site of the historic Pagoda Ballroom, which was built in 1922 as a dance hall and tearooms.
The hotel retains the distinctive red-roof Pagoda design.
The sale of Esplanade River Suites was negotiated by Aaron Desange of?Jones Lang LaSalle’s Hotels &amp; Hospitality Group.
It was sold as vacant possession.
</body></html>

Marilyn New exits Perth hotel scene with Esplanade River Suites sale to Chinese hotel group Narada 

<html><body>
First-home buyers continue to stay on the sidelines of the housing market with economists noting the flow-on effect this is having for the wider housing market recovery. In addition the <a href="/news">different incentives on offer in state and territory housing markets</a> and with different expiry dates, is distorting the picture, pulling forward demand in some cases, but with a vaccum likely to follow when incentives are withdrawn.
ABS housing finance figures show that first-home buyer activity retreated further in March with this segment accounting for 14.2% of total owner-occupied housing finance compared with 14.4% in February.
First-home buyer numbers, as a proportion of the total dwellings financed, are at their lowest level since May 2004 – a nine-year-low..
A year ago they made up 18.1% of the market with the first-home buyer market peaking at 31.4% in May 2009, with first-home buyers spurred on by the $7,000 first-home owner boost (FHOB) for existing homes and $14,000 bonus for new homes, which ran from October 2008 to December 2009 (halved in the final two months).
<img src="/images/stories/2013/05/fhbmay14twothumb.gif" width="470" height="328" alt="fhbmay14twothumb">
This decline in first-home buyers is against a backdrop of a stronger-then-expected rise in home lending, which lifted 5.2% in March led by strong gains in NSW and Victoria.
Westpac economist Matthew Hassan highlights a point made by other economists like <a href="/news">AMP Capital’s Shane Oliver</a> that the current housing market recovery has been weak by comparison to previous easing cycles
He told the Australian Financial Review it had taken “a very long time to generate any movement in the sector", but that prior to yesterday’s housing finance bounce, the recovery had been “sub-par”.
Hassan pointed to the lack of activity in the first-home buyer market as a key issue for a sustained recovery, as they typically purchase the homes of those looking to upgrade and move up the property ladder.
“Ultimately you need a new entrant to drive ongoing growth on the buyer side,” he said.
A similar point was made by Commonwealth Bank economist Michael Workman who called first-home buyers “still the missing link to the overall housing activity story”.
“Higher levels of first home buyers in the market are needed to make a solid impact on total housing activity,” he said.
ANZ property market analysts David Cannington and Paul Braddick said that “looking through the distortions from state and territory government first-home buyer policy changes in recent months” the March data indicates “the combined impact of improved housing affordability and low rental vacancy rates (putting upward pressure on rents) is supporting moderate growth in first-home buyer finance, albeit from low levels”.
"First-home buyer activity increased in March (on a trend basis), however its share of the total value of housing finance commitments (excluding refinancing) decreased to 10.9% - the lowest first-home owner share since April 2004," said Cannington and Braddick.
"Growth in the number of first home-buyer commitments in March was lowest in Tasmania, followed by the Northern Territory (-21.3% m/m and -17.5% m/m respectively).
"The withdrawal of the First Home Buyer Grant on established homes in NSW and Queensland and the unwinding of Northern Territory first-home buyer concessions have weighed on first- home buyer lending in these states.
"However, moderate growth in first home-buyer finance in many states in recent months indicates the combined impact of improved housing affordability and low rental vacancy rates (putting upward pressure on rents) issupporting first home buyer activity," the said.
ANZ prepared the following sets of graphs to show how the first-home buyer segment is tracking in each of the state and territory markets, with the five biggest markets – NSW, Victoria, Queensland, Western Australia and South Australia – showing mild improvements, but declining trends in the three smallest states.
Click to enlarge
<a href="/images/stories/2013/05/fhbmay14one.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2013/05/fhbmay14onethumb.gif"></a>
</body></html>

Lack of first-home buyer recovery halting stronger housing market rebound: Matthew Hassan

<html><body>
Property Council of Australia chief executive Peter Verwer has warned the government not to introduce further changes to its withholding tax rules, which could create more uncertainty in the minds of institutional investors.
The withholding tax is charged on income paid to foreign investors who invest in managed schemes, many of which fund large infrastructure and property projects in Australia.
Last year, the government doubled the tax rate on distributions from 7.5% to 15% for all buildings in managed schemes, except those constructed after July 1 with a five-star energy rating, where a 10% tax rate has been implemented.
Verwer told Property Observer that the important thing was certainty amid concerns that government may tinker with the thin capitalisation regime – the debt side of institutional investments.
“There is the potential for them to make changes to the thin capitalisation regime, which would send a further negative signal to rest of the world and would complicate the ability of schemes to raise money internationally,” he said.
Currently, institutional investors can borrow up to 75% and take advantage of a favourable tax regime for this debt. The proposed changes would reduce the gearing threshold at which the thin-cap rules apply.
“International investors have been dismayed by the chopping and changing regime.
"They see Australia’s economic growth as attractive for long-term investment, but are dismayed at the ad hoc approach taken to taxing them,” he said.
Verwer said the PCA’s preference was for a single, low rate “that sends a clear message to the world”.
</body></html>

Property Council warns against further tinkering with offshore investment rules

<html><body>
The cash rate may be back to what it was in January 1960, but it was a different era for those seeking a home loan.
For those who missed it, the RBA’s <a target="_blank" href="/news">decision to cut the cash rate to 2.75% last week</a> meant that the benchmark borrowing rate fell to a 53-year-low below a 'cash rate' setting of 2.89% in January 1960.
This was not the official benchmark figure it is today, since the Reserve Bank did not publish a cash rate target until January 1990.
Rather the cash rate was a proxy measure of short-term interest rates at a time when the banking sector was highly regulated and getting a home loan meant making an appointment with your bank manager and wearing your best suit to an interview.
<img alt="commsecmay13one" height="333" width="470" src="/images/stories/2013/05/commsecmay13one.gif">
Source: CommSec
There were no foreign banks, no discount online mortgage offerings, nor the plethora of different mortgage products tailored for different types of borrowers and investors.
There were no honeymoon rates, low-doc loans, reverse mortgages, packaged home loans or off-set accounts with such product innovation only coming to the fore in the late 1990s and early 2000s.
Getting a good home loan rate meant having a good relationship with your bank manager.
The headline home loan rate was also lower at 5.00% through 1959 and 1960, according to <a target="_blank" href="https://www.propertyobserver.com.au/economy/a-return-to-the-1950s-glory-days-is-on-the-cards-commsec-s-craig-james/2013050861160?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=economy">CommSec chief economist Craig James</a> compared with an average standard variable rate of around 6.17%, according to RateCity.com.au following the 25 basis point reduction.
However, a standard variable rate would not even have been quoted in 1960s, with most home loans on fixed-rates with "flexible" mortgage rates only appearing more commonly in the mid-1960s. Certainly most of the Commonwealth Bank's lending would have been done on fixed-rates.
 
<hr class="system-pagebreak">
Assistant RBA governor Guy Debelle pointed out in a speech in 2010 the differences between mortgage lending today and forty and fifty years ago.
"In the 1960s and early 1970s, the Australian financial system was heavily regulated," Debelle said.
He highlighted a number of wide-ranging controls including that interest rates that banks could charge on their loans and pay on their deposits were controlled.
"Banks were subject to reserve ratios and liquidity ratios. There were directives on the overall quantity of loans banks should make, as well as moral suasion on who they should lend to.
"Institutions were specialised – trading banks lent to businesses, savings banks held large quantities of government debt and lent to households (almost entirely for housing), and finance companies lent for more risky property loans and consumer credit," he explained.
Finance companies likes of the Finance Corporation of Australia funded Alan Bond's first property speculations now subsumed into ANZ-owned Esanda.
However, this heavy regulation of the banks would later result in them losing market share as the unregulated financial sector, primarily building societies moved in.
The banks’ share of total financial intermediary assets declined from nearly 90% in the early 1950s to 70% in 1970.
"The banks’ share of housing credit was just below 60% in 1976 with much of the rest of the mortgage market being provided by credit unions and building societies. Finance companies, which were generally associated with the banks, often provided top-up funding to bank mortgages but were not a particularly large share of the overall market," explained Debelle.
Compare this with today's mortgage market where banks have 96% of outstanding home loans and credit unions and building societies just 4%.
And there are other differences.
It certainly was not possible as it is today to contact your mortgage broker if you felt you were paying too high an interest rate and ask them to source a better deal with another lender.
Or demand that your bank offer you a better rate.
In 1959/60 Australia's GDP growth was 4.4% compared with 3.1% through 2013.
The unemployment rate was under 2% compare with the current 5.5%, meaning decidely fewer borrowers were worrying about paying off their mortgages.
It certainly was not the market-driven banking and lending system we have today while a high Australian dollar - a key factor in the RBA's decision to cut the cash rate on Tuesday - was not a problem as the currency only floated in 1983.
The floating of the dollar coincided with federal treasurer Paul Keating deregulating the banking system between 1983 and 1985 granting 40 new foreign exchange licences in June 1984; and granting 16 banking licences to 16 foreign banks in February 1985.
Australia’s sixth biggest mortgage lender, ING Direct, only began offering its cheap online home loans and high-interest savings accounts in 1999.
Bear in mind that in 1960, the Reserve Bank of Australia had only just come into official being in under the Reserve Bank Act 1959, tasked with undertaking the central banking functions of the Commonwealth Bank.
The Commonwealth Bank as we know it today, originated from this date offering commercial banking and savings banking activities in the form of the newly created Commonwealth Banking Corporation.
Monetary policy was of course entirely different with no RBA imperative to maintain an inflation target of between 2% and 3%.
And it’s not just the nature of the banking system that was so different, house prices had yet to boom as they did in the 1990s and 2000s.
Housing was far more affordable meaning mothers did not have to go out into the workforce to help pay for the mortgage and buying your first home was not the financial commitment it is today.
The boom in property values prior to the GFC saw house price to income ratios of less than to two in the 1960s rise to above four to one currently.
As for household debt that's in a different stratosphere.
In 1960 household debt to Australia’s GDP was less than 20%.
Today it’s just under 150%.
 
</body></html>

It's really not back to the 1960s for borrowers despite a 2.75% cash rate

<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

<main data-perf-region="main">
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]

<h3 data-end="3697" data-section-id="q3n5ak" data-start="3672">&nbsp;</h3>
</main>

Larry Schlesinger

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News