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There was a small increase in the number of home loan borrowers more than one month behind in their mortgage repayments in the final quarter of 2012, according to the latest Fitch Dinkum Index.
The index monitors underlying Australian residential mortgage-backed securities – a form of funding where loans are bundled together and sold to institutional investors by lenders.
The percentage of loans between 30 and 59 days in arrears increased by 20 basis points in the December quarter from 0.49% to 0.69%, despite the RBA rate cut in October 2012.
This led to a marginal increase in 30+ delinquencies in the Australian prime RMBS sector to 1.46% of mortgages in the fourth quarter of 2012 compared with a rate 1.36% in the third quarter of 2012.
<img alt="fitchapril10one" height="170" width="470" src="/images/stories/2013/04/fitchapril10one.jpg">
“The stable environment and the significant number of [LMI] claims in the fourth quarter of 2012 have helped reduce 90 plus days arrears by 8 basis points to 0.55%, the lowest level since December 2010,” says Fitch.
With a stable outlook on Australian macro-economic conditions, Fitch expects arrears rates in 2013 to remain similar to what they were 2012.
Fitch expects a seasonal increase in arrears due to holiday and Christmas spending to be evident in the first quarter of 2013, although this will be partially mitigated by the December 2012 cash rate cut and some continuing impact from the October 2012 decrease.
“Australia’s economic conditions remain stable, as over the past 20 years. Low interest rates and over 20 years of economic growth have resulted in a rise in real estate values and a significant build-up in household debt,” says Fitch.
“An economic downturn, coupled with high unemployment and/or rising interest rates, would affect the ability of individuals to service debt.”
Low-doc arrears rates increased from 1.66% to 1.72% for borrowers more than a month behind on mortgage repayments.
Around 90% of securitised home loans are prime, full-doc mortgages with around 7% prime low-doc and the remainder non-conforming loans.
The Dinkum index is compiled by Hai Duong Le, James Zanesi, and Natasha Vojvodic.
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Mortgage arrears rates rise slightly in final quarter of 2012: Fitch

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The premises of the Midas Car Care centre on Whitehorse Road in the affluent east Melbourne suburb of Balwyn have sold for $2.85 million at auction today.
The 240 square metre premises standing on an 836 square metre site at <a href="https://www.realcommercial.com.au/property-retail-vic-balwyn-500657503">267 Whitehorse Road</a> is leased to Midas on a 10 year lease expiring in August with no further terms of Lease renewal.
The property, which has 30 square metres of street frontage on the ‘homeward’ bound side of Whitehorse Road was marketed as an opportunity for an investor to either re-lease, occupy or redevelop.
Its net income was around $112,000 per annum. There were around four bidders.
The investor report notes that the landlord recently agreed to reduce the rent to $120,160 per annum due to a long-standing relationship with the tenant.
In the first year of the lease in 2003, Midas paid rent of $90,000.
The premises have been leased by Midas for over 20 years and include work bays, 12 on-site car spaces and paved hardstands and driveways. Midas have indicated a keenness to extend their lease according to auctioneer David Scholes.
The redevelopable land is zoned business 2 with the premises marketed by Billy Holderhead and Sam Newton of Burgess Rawson.
In August 2011, two retail shops set on a 400 square metre block of land on <a href="https://www.realcommercial.com.au/property-retail-vic-balwyn-5798564">Whitehorse Road sold</a> for $3.68 million on a yield of around 3.5% through Nick Peden of Savills.
Midas is an international automotive service chain headquartered in the US with over 80 shops in Australia.
Midas Australia was acquired by Lazard Limited’s private equity arm in 2008/09.
Other prominent retailers on Whitehorse Road include McDonalds, branches of the Commonwealth Bank and NAB, Woolworths and First Choice Liquor.
Balwyn is located within the city of Borondara, about 10 kilometres east of the CBD with a large, <a href="https://www.propertyobserver.com.au/victoria/balwyns-school-zone-continues-to-draw-asian-buyers/2013031158731">affluent Chinese population</a> attracted to the suburb due to it being in the Whitehorse school zone.
Balwyn is home to the Balwyn High School along with a dozen other secondary schools nearby, including Box Hill High and Canterbury Girls School.
It is home to 2,861 residents of Chinese descent, out of a population of 12,944, according to the 2011 census.
The median house price is $1,280,000 according to RP Data and there is ample public transport infrastructure, particularly trams.
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Midas premises on Whitehorse Road in Balwyn sells for $2.85 million

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The premises of an ANZ bank branch in the Victorian heritage country town of Korumburra in South East Gippsland has sold at auction today for $462,000.
It had pre-auction hopes of around $325,000 with bids starting $300,000.
There were around six bidders and the property sold on a yield of around 5.2%.
The bank premises, with a three year lease beginning January 2013, were marketed by Raoul Holderhead and Jamie Perlinger of Burgess Rawson.
Located at <a href="https://www.commercialrealestate.com.au/property/2010343234/for-sale/vic/korumburra/offices/retail" target="_blank">27 Commercial Street</a> – the main retail strip running through the town – the two-level brick building measuring 177 square metres brings in annual income of just under $25,000.
It is leased to ANZ for three years with renewal options and with fixed 3% annual rent increases.
It has seven metres of street frontage and includes an ATM in the lobby.
The building which has housed the bank for 25 years was recently upgraded at a cost of $230,000.
The most recent sale on Commercial Street was a <a href="https://www.realcommercial.com.au/property-retail-vic-korumburra-500361699" target="_blank">vacant shopfront</a> measuring 110 square metres, which sold for $159,000 plus GST through Alex Scott &amp; Staff - Korumburra. It had been listed at $180,000.
Korumburra, which dates back to the 1880s, is 120 kilometres south-east of Melbourne with a trade catchment population of around 6,000 people.
It is the base of the popular tourist railway South Gippsland Railway.
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ANZ bank premises in Korumburra sell for $462,000

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The resurrection of the former debt-laden shopping centre owner and manager Centro into Federation Centres appears complete with Goldman Sachs upgrading its recommendation for the A-REIT from ‘neutral’ to ‘buy’.
Goldman Sachs A-REITs analyst Simon Wheatley says Federation Centres is now trading at a 6% premium to its net tangible assets of $2.22, but says this is justified due to its earnings per share (EPS) growth profile.
In his latest monthly A-REITs report, Wheatley notes the forecast EPS three-year compound annual growth rate for Federation Centres is 6.9% – among the highest of A-REIT stocks covered by Goldman Sachs “with potential further upside from acquisitions and development activity”.
“Federation Centres forecast 5.6% dividends per share yield (based on an 85% payout ratio) compares to the sector average of 5.2%,” says Wheatley.
“Overall, we think that Federation Centres has earnings catalysts in the short to medium term that many of its sector peers lack.”
Factors that led Goldman Sachs to upgrade its recommendation on Federation Centres include the ongoing simplification of its syndicates business, asset acquisitions, non-core asset disposals and the rollout of its $1.1bn development pipeline.
Federation Centres plans to develop 16 shopping centres over the next five years.
The A-REIT reported an <a target="_blank" href="https://www.propertyobserver.com.au/retail/federation-centres-emerges-from-centro-with-stronger-balance-sheet-and-back-in-the-black/2013021959432">interim net profit $115.91 million for the six months to December 31</a> - its first complete first-half results under its new Federation Centres brand.
This compared with a loss of $100 million recorded in the previous corresponding period, when it was known as Centro Retail Australia.
Federation Centres also reported a healthy balance sheet with its gearing down to 29.9% after entering into a number of joint-ownership agreements.
The Federation Centres portfolio comprises 78 properties valued at $6.6 billion with an occupancy rate of 99.5%.
It continues to simplify its previously complex mix of unlisted shopping centre syndicates with $548m of assets acquired by the group and $438m sold on market.
The company expects $1.2bn of assets expected to be transacted by 2015 with $500m to be sold on market and $700m potentially acquired by the group, subject to further capital recycling initiatives.
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Federation Centres resurrection complete with Goldman Sachs buy recommendation

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MFAA CEO Phil Naylor has hit back at mortgage brokers who claim they should be refunded their membership fees after being kicked out of the industry body for not completing education requirements by January 31.

The peak industry body announced last month that it had <a target="_blank" href="/news">cancelled the memberships of 1,100 mortgage</a> – around 1 in 10 members – for failing to obtain a Diploma in Financial Services or equivalent qualification necessary to become MFAA trademarked ‘Credit Advisers’. 
The diploma qualification is an MFAA requirement.
Credit regulator ASIC only requires that licensed mortgage brokers obtain a Certificate IV qualification.
“The MFAA has terminated the membership of some of its most senior and experienced members who see no merit in obtaining an additional educational qualification when they have been very successfully writing home loans for many years,” wrote a disgruntled mortgage broker on PropertyObserver.com.au.
“However, the MFAA is refusing to refund the members subscription fee of $422 despite discontinuing the members membership and the provision of the services that the fee pays for.
“Surely if the MFAA ceases a members membership how can it justify not refunding the membership fee?” 
Naylor told Property Observer these brokers had “no entitlement to a refund when they renewed [their annual memberships] knowing full well the conditions of membership. 
“Those members had their memberships ceased because they had failed to satisfy a well-publicised membership criteria for loan writers.  This was after many reminders over the past three years and warnings that their membership was at risk if they failed to achieve diploma or FastTrack status (available to existing members with more than five years’ experience). 
“Any member that renewed their membership in the past two years would have been aware that a condition of membership was that they achieve the above mentioned status by, originally, July 1 2012 – later extended to January 31 2013. 
Naylor said he was confident that a significant proportion of those who had their memberships cancelled were now completing the required courses and would be reinstated over the next month or so. 
“A stream of completions are coming into us every day. 
“We are confident that well over 90% of members will have satisfied the requirements by the end of May,” he says. 
Last year, MFAA membership numbers fell from around 12,000 as of June 2011 to 11,000 as of June 2012 despite the industry body taking on additional 1,295 new members, a review of MFAA annual reports shows.
Brokers make up 98% of the MFAA’s member base. 
The loss of so many brokers will impact on the MFAA’s future bottom line with its 2012 annual report showing that more than half of its $9.2 million annual revenue (inclusive of GST) came from membership fees. 
Membership fees including GST totalled $4.9 million in 2012 down from $5.1 million in 2011. 
Events, principally the MFAA's annual conference, bring in $2.3 million.
Training revenues, including courses provided to mortgage brokers add up to $719,000, but is a growing source of revenue.
The MFAA recorded an annual profit to June 2012 of $25,000 compared with a loss of $696,000 in 2011.
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Expelled mortgage brokers have no claim to membership fee refund: MFAA CEO

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UK menswear designer Peter Werth has signed a short-term lease to open a pop-up shop in the Howey Place shopping arcade in the Melbourne CBD.
Howey Place is a short, narrow covered laneway, running south from Little Collins Street between Swanston Street and Elizabeth Street.
The 9 Howey Place tenancy comprises a 33-square-metre premises taken on a short-term lease.
The rental was not disclosed however recent deals along Howey place have been transacted around the $4,000 a square metre plus GST mark.
The deal was brokered by Savills Australia retail director, Michael Di Carlo, alongside colleague Jeremy Marmur.
Peter Werth currently has an in-store outlet at Myers, also in the CBD.
According to Di Carlo, Peter Werth wished to test the market with a pop-up store. 
"<a target="_blank" href="https://www.propertyobserver.com.au/retail/pop-up-shops-on-the-rise-as-melbourne-retail-vacancy-rate-falls-cbre/2012032353993">Pop-up stores</a> have become very popular as a means of testing the market with a view to establishing a more permanent presence and we’re now seeing that concept defined by the length of the lease term as much as the style of tenancy,’’ Di Carlo said.
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UK menswear designer Peter Werth opens pop-up shop in Howey Place

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<img alt="collierslogo" height="94" width="470" src="/images/stories/2013/02/collierslogo.jpg">
Colliers International’s Ben Lalic says he would consider investing a spare $750,000 in large parcels of land with development upside. 
<img style="margin: 5px; float: left;" alt="lalicheadshot" height="200" width="200" src="/images/stories/2013/04/lalicheadshot.png">Agent: Ben Lalic
Position: Manager, office leasing – Sydney west
Company: Colliers International
Office location: Parramatta 
How long have you been in the industry?
I first started in real estate in 2001.
What’s happening in the area you specialise in?
The Parramatta market is very tight, with vacancy rates declining. There is limited A-grade vacancy with incentives reducing.
Describe the most interesting property you have leased:
Over the years there have been many interesting transactions, it is hard to pin point one precise property – the reason I am in this job is because every property is so versatile and unique.
What are the ingredients to being successful in your job? 
You have to be honest, reliable, proactive and love meeting new people. True success comes from having a forward vision and looking into the future, with your clients’ best interest at heart every time. By being in it for the long term, success will increase year-on-year.
What aspects of your role do you enjoy the most?
Meeting new people and finalising solutions for all parties involved.
Where would you invest a spare $750,000?
Crown Casino … just joking! This would depend on my investment goal at the time. However, I do like large parcels of land with development upside.
Which football team do you support?
NRL : Sydney Roosters; AFL: Collingwood, of course; A League: Central Coast Mariners
What’s your favourite app or techno gadget?
Garmin “e-trax 30” GPS with Topo Maps. I really enjoy the outdoors and getting away from the ‘big smoke’ and the GPS can take me everywhere
How do you use social media?
Facebook – only to keep in touch with family and close friends. I like keeping my personal life personal.
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In profile: Colliers International Parramatta leasing specialist Ben Lalic

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The Safeway supermarket that anchors Lend Lease’s Victoria Harbour Merchant Street retail strip in Melbourne’s Docklands has been listed for sale. 
The 2,681-square-metre supermarket on Merchant Street is the only full-line national supermarket in Docklands and the first major retail investment to be sold in the Victoria Harbour precinct. 
It was built by <a href="companies/lend-lease" target="_blank">Lend Lease</a> in 2008 and is leased to Safeway until May 2028 and brings in fully leased net income of around $910,000 per annum.
The sale includes two kiosks (72 square metres and 90 square metres) leased to food and beverage tenants and 120 car parks. 
Merchant Street includes 12 specialty retail outlets (totaling 1,500 square metres) at 63-93 Merchant Street and eight shops (measuring 1,300 square metres) across the road in The Gauge office building at 825 Bourke Street. 
Real estate listings suggest the strip is tightly held – unlike other parts of <a href="/news">Docklands</a> where many shops stand vacant – with no shops available for lease on Merchant Street and very few recent transactions. 
There are more than two dozen shops available for lease in other parts of Docklands, including in Victoria Harbour. 
The inclusion of the car park in the Safeway sale is considered a “key factor” bringing in “strong casual parking income due to its central location adjacent to Woolworths, ANZ, Lend Lease, Ericsson and Myer, and its proximity to NAB and Etihad Stadium, according to Colliers International agent Daniel Wolman. 
Wolman is marketing the property alongside Colliers International colleagues Lachlan MacGillivray and Tom Noonan. 
“Victoria Harbour’s car park market is also an exceptionally tightly held and lucrative market sector, one that is protected by planning policies aimed at minimising the construction of additional car bays within Docklands and the CBD.” 
Interest is expected from high net worth private investors and syndicators. 
A price in excess of $14 million is expected, The Australian reported. 
Victoria Harbour is home to more than 38,000 office works including 4,500 NAB staff who work in the 700 Bourke Street building, 6,500 ANZ staff who work in the ANZ building at 833 Collins Street, the Australia’s largest single-tenant office building and 1,000 Myer staff. 
There are 1,500 apartments close by and plans for another 1,800 to be built.
Lend Lease project director for Victoria Harbour Claire Johnston quotes the latest Macro Plan Dimasi report, which forecasts the current working population of 38,020 to nearly double to more than 69,980 by 2026.
“We are continuing to see strong investor demand for supermarket retail due to the strong covenant and ability to provide steady rental income through long term leases and food retail which has lower average occupancy costs than traditional retail uses,” Noonan says. 
“The demand for quality retail investment property is far outweighing supply, with only two metropolitan Woolworths transactions since February 2010, with average sub-6.5% yields, and our recent sale of Woolworths Byron Bay negotiated on a yield of sub-6%.”
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Lend Lease lists Docklands Safeway supermarket premises seeking $14 million-plus

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A “steady stream” of investors are adding their names to what could become a Slater &amp; Gordon class action against financial planners who recommended they invest in mortgage funds issued by collapsed Gold Coast-based fund manager and developer LM Investment Management (LMIM).

Slater &amp; Gordon had already issued legal proceedings against financial advisors on behalf of a number of those investors and says more proceedings will be issued in coming weeks.
LMIM was placed into voluntary administration last month with initial reports suggesting there may be <a href="https://www.propertyobserver.com.au/developments/irregularities-suspected-in-lmim-s-maddison-estate-mortgage-fund-reports/2013040160117" target="_blank">irregularities in how some of the funds operated</a>.
Administrators John Park and Ginette Muller from FTI Consulting have applied to become the receivers of the $400 million LM Managed Performance Fund, which has the $1 billion Maddison Estate on the Gold Coast as its primary investment asset. The application has the backing of ASIC, The Australian Financial Review reported.
Another Gold Coast residential development backed by the same LMIM fund, the 271-unit Rhodes apartment development (pictured below) on Mount Cotton Road at Capalaba is caught up in the collapse of LMIM.
<img alt="lmimapril10one" src="/images/stories/2013/04/lmimapril10one.jpg" width="470" height="264">
Last week administrators revealed the business lent its founder, Peter Drake, a loan worth $17 million.
Slater &amp; Gordon commercial litigation lawyer Mark Walter has told Property Observer the firm continues to field inquiries from investors and is confident of commencing proceedings in the “near future”.
The exact form they will take has not been decided but it could a class action with Slater &amp; Gordon specialists in this area.
Previous class actions have included litigation on behalf of investors against financial planners who recommended investments in Basis Capital Funds; a fund linked to the US sub-prime market, Premium Income Fund and collapsed Gold Coast property and financial services group MFS.
 
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Walter says some investors have up to $1 million invested in LMIM mortgage funds, but have little prospect of getting any of their money back.
Instead investors will seek to reclaim their money from financial advisers – LMIM used as many as 250 different financial advisory firms.
“Any advisor needs to have a reasonable basis for their recommendations,” says Walter.
He says the timing and the circumstances of these recommendations have been called into question with queries about the appropriate of recommending these product types for investors.
“Planners are required under the corporations act to be able to match up their recommendations with their clients’ objectives,” he says.
Walter warns that a six-year time limit generally applied for anyone wanting to sue, meaning anyone who invested in 2007 during the pre-GFC boom period needed to obtain immediate legal advice.
“We believe there is a large number of viable claims against financial advisors who recommended this and other high-risk products that will be affected by the time limit,” Walter says.
“It's important that people exercise their right to hold their advisors to account and seek legal advice before it is too late.
“We have found that funds like LM were particularly popular among financial planners in communities where there are large populations of retirees with money to invest.
“The people we are talking about are typically risk averse and conservative and have relied on the professional advice of financial advisors to invest in these funds. It is debatable whether these funds were appropriate for them given their conservative needs.”
Another law firm, Piper Alderman, has also been assisting unit holders who invested in the LM First Mortgage Fund in respect of a class action.
Piper Alderman partner Amanda Banton and her team are investigating claims against the responsible entity of the Fund, LM Investment Management Limited, its directors and other third parties, including advisors, associated with the fund’s demise with a view to bringing a class action or any other appropriate action.
“Those actions will seek to recover the losses sustained by unit holders, many of whom are elderly persons who invested their life savings,” says Piper Alderman.
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Angry investors line up to sue financial planners who spruiked LMIM mortgage funds

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New Zealand is facing the increasing risk of a “significant” downward house price adjustment as house prices continue to rise, most notably in Auckland and Christchurch.
The warning comes from Grant Spencer, deputy governor and head of financial stability, at the Reserve Bank of New Zealand (RBNZ) in a speech where he highlighted that New Zealand’s economy and banking system is even more reliant on a stable housing market than Australia.
New Zealand house prices are up 8% over the past year (compared with just over 2% in Australia), but unlike the boom of 2003 to 2007, the current house price pressures are concentrated in Auckland and Christchurch due to supply constraints and pent up demand from first-home buyers with house price inflation in the rest of the country less pronounced - around 4% over the past 12 months.
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“We have concerns that the current escalation of house prices is increasing risk in the New Zealand financial system, by increasing both the probability and potential effect of a significant downward house price adjustment that could result from a future economic or financial shock," said Spencer in a speech to the Employers and Manufacturers Association in Auckland.
“Unlike many other countries, New Zealand did not experience a major house price correction during the GFC and the median house price is now 12% above its end-2007 level. This has left us with house prices that are already high relative to international norms.
Spencer references the contentious US-based Demographia survey (dismissed by RP Data as “flawed”) in his observation that New Zealand house prices “are already high relative to international norms”.
“For example, in a recent international study of housing affordability, median New Zealand house prices (relative to disposable incomes) were the third highest amongst comparable countries.”
“The more that house prices continue to overshoot their long-run sustainable levels, the greater the prospect of an eventual significant downward correction,” he goes on to say.
 
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Spencer warns of the “significant damage that can result from sharp declines in house prices, both in terms of financial system losses and the economic stresses placed on borrowers”.
“The impact of such an adjustment could be worsened by existing economic headwinds in the form of an overvalued exchange rate, drought affected agriculture and the government’s significant fiscal consolidation,” he says.
Spencer presented figures comparing New Zealand economic reliance on its housing market versus the situation in Australia.
Housing assets account for 73% of New Zealand’s total asset base compared with 56% in Australia.
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“Two observations are key: first, the value of housing is a large share of total household assets in New Zealand compared to Australia (and the United States) where financial assets play a much greater role in saving for retirement,” says Spencer.
“Consequently, house price movements in New Zealand have a relatively large impact on household confidence and spending compared to many other developed countries where the state of the financial markets plays a larger role in driving consumer confidence and spending.”
Spencer also noted the New Zealand banking sector’s exposure to the housing sector with mortgage credit “by far the biggest asset class of the New Zealand banking system, making up just over half of total banking system lending” meaning housing is a “significant source of risk to both the household sector itself, and the New Zealand banking system”.
The RBNZ expects that household spending will generally pick up in line with stronger incomes but not to the extent to encourage “a rise in speculative investment that could extend house price pressures to the rest of the country”.
But he does warn of an alternative scenario:
"There is a risk of course that our assumptions turn out to be wrong: that the housing market continues to gather momentum and that households return to their pre-GFC ways of borrowing and spending in excess of incomes. The recent fourth quarter GDP numbers, which showed expenditure GDP growth of 1.4% and private consumption growth of 1.6% over the quarter, remind us that this alternative outlook for household behaviour is a real risk," he says.
The New Zealand cash rate is currently at 2.5% with current ‘best in market’ mortgage rates around 4.8% to 5%.
Spencer says mortgage rates are down half a percent over the past year due to lower funding costs on international markets.
Image courtesy of Flickr.
 
 
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New Zealand's house prices outperform Australia's but face “significant” correction risk: RBNZ deputy governor

A collection of just 25 large-format apartments and penthouses overlooking Goodwin Park is entering the Coolangatta market, with <a href="https://www.apartments.com.au/new-apartments/marea-residences-coolangatta-27-27a-dixon-street-coolangatta-qld-4225">Maréa Residences</a> combining a low-density, residential-only approach with uninterrupted park and Pacific Ocean outlooks.

Located at 27 Dixon Street, Maréa comprises three and four-bedroom residences alongside a limited number of dual-level penthouses, with the project positioned between Goodwin Park and <a href="https://www.apartments.com.au/developments/coolangatta-qld-4225">Coolangatta</a>’s coastal precinct.

Construction has commenced, with completion currently estimated for late 2027. Three-bedroom residences are priced from $1.8 million.

[smartcode_project:default project_id=150999 project_image_fid=374005]

The project has been designed around its northern outlook across the park, with the building’s architecture, landscaping and material palette intended to establish a connection with the neighbouring green space. The residences have been configured to maximise natural light and views across Goodwin Park towards the ocean.

Inside, the material palette incorporates timber, stone and brushed brass, complemented by curved detailing and ambient lighting. Kitchens and bathrooms carry the same natural material approach, while residences also include basement parking, storage and lift access.

Maréa’s penthouses are arranged over two levels and include private pools, adding another layer to the project’s focus on larger-format apartment living. Across the development, residences are configured with three or four bedrooms rather than the broader mix of smaller apartment types commonly found in larger projects.

[smartcode_project:default project_id=150999 project_image_fid=374010]

Resident amenity is concentrated at rooftop level, where landscaped entertaining terraces and pools take advantage of elevated views across Coolangatta and the Pacific Ocean.

The project has so far been particularly well received by local owner-occupiers and downsizers, according to Urban Activation Property Sales and Marketing Director Matt George, with the residential-only format, construction quality and northern park outlook among the features resonating with purchasers.

“The uninterrupted northern aspect overlooking Goodwin Park has been a key point of difference, with buyers attracted to the sense of serenity and open space the park provides, while still enjoying easy access to the ocean and being within walking distance of the lifestyle and amenities Coolangatta has to offer,” George said.

[smartcode_project:default project_id=150999 project_image_fid=374002]

“The combination of high-quality construction, a residential-only building, park outlook and proximity to the beach has resonated strongly with the local downsizer market.”

The Dixon Street address is within walking distance of Coolangatta Beach and the broader southern Gold Coast coastline, including the surf breaks at Snapper Rocks and Kirra. Coolangatta’s cafés, restaurants and retail are nearby, while Gold Coast Airport is also within close proximity.

[smartcode_project_cta:default project_id=150999]

Joel Robinson

Maréa Residences brings parkside apartments to Coolangatta

Melbourne developer PDG has secured Victorian Government approval for its $1.5 billion Southbank development <a href="https://www.apartments.com.au/new-apartments/the-one-1-queens-bridge-street-southbank-vic-3006">The One</a>, clearing the way for the long-dormant riverfront site opposite Crown to finally be developed.

The Minister for Planning has approved the project at 1-29 Queens Bridge Street, with the Department of Transport and Planning issuing the planning permit following its assessment.

The approval will allow PDG to develop the prominent 5,059 sqm site with a major mixed-use tower comprising premium apartments, including branded residences, a luxury hotel and boutique office space.

PDG acquired the site in late 2024, with its position directly opposite Crown's main entrance and near Melbourne's Arts Precinct making it one of Southbank's most significant remaining development opportunities.

<img alt="PDG" data-entity-type="file" data-entity-uuid="3933013e-6332-4386-b9be-089df05caf17" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.22%E2%80%AFAM.png?VersionId=sITIgBqDL0N3VNSMwWEmF5UA.uvcsRyu" />

Designed by COX in collaboration with ODO and PDG, the tower's architecture draws on the movement of the Yarra River, with six vertical pleats running the height of the sculpted facade.

The project will also see the heritage-listed Queens Bridge Hotel restored and incorporated into the development&nbsp;with new hospitality and public uses, including a rooftop venue.

A significant component of The One will be its residential amenity.

More than 5,000 sqm of resident facilities will be delivered across a single level, making it one of the largest consolidated residential amenity offerings proposed in an Australian apartment development.

The planning approval also incorporates a major upgrade of Queensbridge Square, which PDG will deliver in partnership with the City of Melbourne.

<img alt="PDG" data-entity-type="file" data-entity-uuid="73167fcd-1031-4b6f-a408-a064cfe45ed1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.17%E2%80%AFAM.png?VersionId=Pf1AEWxw6SNmBqR0zQW5lyEze.MtxgFp" />

The existing square will be revitalised as a new civic and pedestrian space along the Yarra River, strengthening the connection between the project, Southbank and the riverfront.

PDG Founder and Managing Director Vince Giuliano said the approval represented a major milestone for a site which has remained largely underutilised for more than 15 years.

“This is the most significant Planning Permit approval Melbourne has seen in recent years,” Giuliano said.

“For more than 15 years, this site has remained underutilised. This approval enables us to deliver a project that will contribute meaningfully to the revitalisation of Southbank, restore and reactivate an important heritage building, and create a new civic and hospitality destination for Melbourne.”

The latest approval follows an earlier planning permit issued by the City of Melbourne covering demolition works across part of the site at 9-29 Queens Bridge Street. Those demolition and early works are already underway.

PDG has also started generating early interest in the residential component from owner-occupiers ahead of a planned public launch in early 2027.

PDG secures approval for $1.5bn Southbank apartment development, The One

Local developer Harridan is seeking to turn its Woolloongabba apartment project into the first stage of a broader transformation of Burke Street, using a new 16-storey mixed-use building to establish a greener pedestrian connection toward the rapidly evolving Boggo Road transport and knowledge precinct.

The South East Queensland developer has filed plans for 154 apartments on the <a href="https://www.apartments.com.au/new-apartments/4-burke-street-woolloongabba-qld-4102">southern side of Burke Street</a>, where its proposal has been designed alongside a wider vision by LatStudios for the street.

That vision positions the southern side of Burke Street for buildings of 15 storeys and above, while envisaging lower-rise development of up to five storeys on the northern side to transition into Woolloongabba's existing character housing. It also proposes wider pedestrian verges, deep planting, new street trees and upgrades to the pedestrian approach to Boggo Road Station.

The Harridan development itself has been designed by Brisbane-based Arqus Design and will comprise 154 apartments across 16 storeys. The mix is weighted heavily toward two-bedroom apartments, with 121 proposed alongside 10 one-bedroom and 23 three-bedroom residences. There will typically be around 14 units per floor.

A lower-ground car park and three podium levels will accommodate 156 resident parking spaces, along with visitor and commercial parking. There will also be 154 resident bicycle spaces and 40 visitor bicycle parks.

&nbsp;

Harridan is a family-owned developer and part of the Holmwood Highgate Group, with more than three decades of development activity across South East Queensland. Its portfolio spans residential, commercial and industrial property, with current residential projects including Riverbank on Byron in Bulimba, Esperance Residences in Carina and The Precinct at Kinross Road in Thornlands.

Wooloongabba has been popular for apartment developers, particularly since the announcement of the 2032 Summer Olympics games in Brisbane.

While there have been a lot of development applications, it has failed to materialize into real supply.&nbsp;

Sarazin has been the major player in the area. They are under construction at Murcia Residences, on the fringe of East Brisbane and Woolloongabba. They have just launched <a href="https://www.apartments.com.au/new-apartments/the-stanley-residences-woolloongabba-8-trafalgar-street-woolloongabba-qld-4102">The Stanley Residences</a>, in Woolloongabba on Trafalagar Street. They also have Nuage coming soon on the nearby <a href="https://www.apartments.com.au/new-apartments/nuage-woolloongabba-14-wellington-road-woolloongabba-qld-4102">Wellington Road</a>.

First look: Harridan plans Burke Street transformation beside Boggo Road transport hub

IN BRIEF

<ul>
	<li>
	Just three double-storey Sky Homes sit at the top of The Waterline, each with its own private marina berth and rooftop terrace.
	</li>
	<li>
	Construction on The Waterline is complete, with the first residents expected to move in from mid-October.
	</li>
	<li>
	Sky Homes range from 282 sqm to 367 sqm and are priced from $3.65 million.
	</li>
</ul>

<hr />
Lewis Land has opened the first completed sky home for inspection at Harbour Shores, giving buyers their first opportunity to step inside one of just three double-storey residences crowning The Waterline.

Each sky home comes with its own private marina berth, rooftop terrace and Broadwater views, combining the scale of a larger home with direct access to the boating lifestyle that underpins the wider <a href="https://www.apartments.com.au/new-apartments/harbour-shores-biggera-waters-564-oxley-drive-biggera-waters-qld-4216">Harbour Shores</a> masterplan.

[smartcode_project:default project_id=113271 project_image_fid=366708]

Lewis Land Head of Development Michael Long said the inclusion of a berth with every Sky Home had become increasingly valuable as marina access across the Gold Coast tightened.

“Marina berths are becoming increasingly difficult to secure across the Gold Coast, so including one with every Sky Home makes this a genuinely rare offering,” Long said.

“The private 70-berth marina will accommodate boats up to 12 metres in length and is positioned just 2.5 kilometres from the Broadwater, placing the open ocean only 15 minutes away.

“Being able to step out of your home onto your boat is a rare luxury, and it’s something residents here can look forward to when it opens later this year.”

[smartcode_project:default project_id=113271 project_image_fid=366709]

The display opening comes as construction completes on The Waterline, with the first residents expected to move in from mid-October.

The three Sky Homes range from 282 sqm to 367 sqm and each feature three bedrooms, three bathrooms, multiple living zones, expansive kitchens with butler's pantries and large balconies taking in the Broadwater outlook.

Each residence also has three secure basement car spaces and additional storage.

“This is the first opportunity the Gold Coast has had to step into Harbour Shores and see, touch and feel what we’re bringing to life here,” Long said.

“There are only three Sky Homes within The Waterline, ranging in size from 282sqm to 367sqm, with each residence featuring three large bedrooms, three bathrooms, multiple living zones, expansive custom-built kitchens with butler’s pantry, and large balconies capturing Broadwater views.”

<img alt="Harbour Shores" data-entity-type="file" data-entity-uuid="bab65e10-4fab-45e1-92d8-fc56e2ab98ff" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%202.00.16%E2%80%AFPM.png?VersionId=XT8q76LsPkw3cYTsvN3JfFDaPLud90PN" />

Residents of The Waterline will have access to a private pool, along with Harbour Shores' wider collection of amenity including a lagoon pool, social clubhouse, tennis court, gym, yoga facilities and sauna.

Lewis Land partnered with Studio Collective to furnish the completed display, with the interiors designed to demonstrate how the residences could function as permanent homes rather than simply as show apartments.

Studio Collective Director Melissa Park said the surrounding waterways informed the interiors, but in a more restrained way than a traditional coastal scheme.

“We drew inspiration from the canals and coastal surrounds, but our approach was to interpret that subtly through layered materials and a grounded palette of earthy tones, rather than literal coastal references,” Park said.

“We introduced hero moments of green and teal to reference the surrounding waterways, while mirrored elements help reflect natural light.

“The result is a residence that feels elevated yet comfortable, somewhere buyers can genuinely imagine themselves living, entertaining and unwinding.”

Sky Homes are priced from $3.65 million.

Lewis Land is also offering private marina berths with The Residences, its limited collection of three and four-bedroom villas positioned directly along the Harbour Shores waterfront boardwalk.

Three-bedroom villas are priced from $2.99 million, while four-bedroom residences start from $3.19 million.

Harbour Shores is being marketed by Colliers International.

[smartcode_project_cta:default project_id=113271]

Lewis Land opens sky home display as The Waterline completes at Harbour Shores

St Vincent de Paul Society Housing Australia has filed plans for a major mixed-use housing precinct on the southern edge of the North Sydney CBD, adding another significant proposal to a pocket around North Sydn​ey Station that is quickly becoming one of the LGA's busiest development zones.

The State Significant Development Application covers a 5,990 sqm site at <a href="https://www.apartments.com.au/new-apartments/1-19-mackenzie-street-lavender-bay-nsw-2060">1-19 MacKenzie Street and 211 Blues Point Road in Lavender Bay</a>, immediately south of Nor​th Sydney Station and between the commercial core and the lower-rise Lavender Bay Heritage Conservation Area.

Designed by Wardle, the proposal would deliver a new residential tower comprising 88 build-to-sell apartments and 19 affordable apartments, alongside a separate co-living building with 57 rooms and a building manager's studio.

It would also see the significant restoration and upgrade of St Francis Xavier Catholic Church, the adaptive reuse of the former school building, new parish facilities, retail, a new public square and around 1,000 sqm of publicly accessible open space.

<img alt="Vinnies North Sydney" data-entity-type="file" data-entity-uuid="d5dd7f87-a617-463e-b577-17541e01f0e9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.10.13%E2%80%AFAM.png?VersionId=4R8TsFN3P_LrrXO2HswTOIrx2blil8lh" />

The project is seeking a concurrent rezoning of the site to R4 High Density Residential and an increase in the maximum building height to allow a tower reaching RL120, or up to 20 storeys. The proposal was progressed through the NSW Government's Housing Delivery Authority pathway.

The build-to-sell component will be weighted toward larger apartments, with just six one-bedroom apartments compared with 31 two-beds, 43 three-beds and eight four-bedroom residences.

The 19 affordable apartments will comprise two studios, 15 one-bedroom apartments and two two-bedroom apartments, taking the total apartment component to 107 residences before the 58 co-living rooms are included.

<img alt="Vnnies" data-entity-type="file" data-entity-uuid="7d568ca5-cb90-4e18-96c6-d9795dba0c56" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.10.05%E2%80%AFAM.png?VersionId=GY2R5M9VtQh0EKy1vajaea19PSLOPuRD" />

Wardle's design for the Vinnies site has sought to negotiate that emerging high-rise context while retaining the lower-scale character of MacKenzie Street and the adjoining heritage conservation area.

The main building adopts a three-storey podium and tower arrangement, with the podium aligned to the ridgeline and front setback of St Francis Xavier Church.&nbsp;Wardle has designed the podium with colonnades, seating, recessed entries and active ground-floor frontages, with sandstone-toned precast concrete and face brick referencing the materiality of the existing church.

The tower then steps back eight metres to the south and six metres to the north before rising in a sculpted form comprising four interlocking quadrants. Wardle has also introduced rounded forms and chamfered corners to reduce the tower's perceived bulk and improve view sharing with neighbouring development sites.

Resident facilities and outdoor areas are planned at the separation between the podium and tower at Level 3, oriented toward Sydney Harbour and the CBD skyline.

The tower itself will feature a glass reinforced concrete facade, with recessed balconies and deep reveals used both to provide shading and privacy and frame views toward the harbour and city. The lower levels take a different architectural approach, using brick and sandstone-toned finishes intended to establish a stronger relationship with St Francis Xavier Church. The Church itself will be conserved and upgraded for its continued use, while the former school building will be adaptively reused as part of the co-living component.

<img alt="Lavendar Bay" data-entity-type="file" data-entity-uuid="2d4418ad-90aa-4d49-af93-c80b140aea80" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.09.47%E2%80%AFAM.png?VersionId=Kv4gzbsACaGvZSRuaqcfGC54jEJRXIDJ" />

&nbsp;

The proposal adds to an increasingly concentrated pipeline of residential development around Blue Street, MacKenzie Street and Lavender Bay.

Just west of the site, Central Element lodged plans earlier this year for one of the most significant residential developments proposed in Lavender Bay in recent years.

Central Element's SJB-designed scheme at 64-66 Lavender Street and 3-7 Middlemiss Street would deliver 163 apartments across two towers rising 23 and 32 storeys, replacing five existing apartment buildings containing 32 homes. The project also forms part of the Housing Delivery Authority pathway.

<a href="https://www.apartments.com.au/news/nsw/first-look-central-element-reveals-lavender-bay-apartment-plans?utm_source=chatgpt.com" rel="noopener" target="_blank">First look: Central Element reveals Lavender Bay apartment plans</a>

Immediately around North Sy​dney Station, another two significant proposals have emerged at 5 and 15 Blue Street.

Zurich Australian Insurance Properties is seeking to adaptively reuse its longstanding commercial building at 5 Blue Street, directly above North Sydney Station, rather than demolishing the structure.

Its SSDA proposes converting the building into a 14-storey mixed-use development with 62 apartments and 86 co-living rooms, together with ground-floor retail and a major refurbishment of Blue Street Plaza. The application is currently at the Response to Submissions stage.

<a href="https://www.apartments.com.au/news/nsw/first-look-zurich-targets-north-sydney-office-conversion-with-148-unit-proposal-above-metro-station">First look: Zurich targets North Sydney office conversion with 148-unit proposal above Metro station</a>

&nbsp;

Larry Schlesinger

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