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The regional housing market is at its most affordable in almost a decade, according to the latest HIA-CBA Housing Affordability Index.
Overall housing affordability improved by 5.5% over the 2012 December quarter representing an 18.4% advance on the same period of 2011.
Affordability improved in all capital city and state regional housing markets with the biggest regional improvement occurring in NSW, where the affordability multiple improved from 1.43 to 1.31.
The HIA defines the affordability multiple as “the number of full time average incomes required to reach the qualifying income to service a loan on a median priced home”.
Tasmania is the most affordable regional market with a multiple of 1.13 with Hobart also the most affordable capital city market with a multiple of 1.20.
Click to enlarge
<a href="/images/stories/2013/03/hiamarch22.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2013/03/hiamarch22thumb.gif"></a>
Sydney remains the least affordable capital city housing market with an affordability multiple of 1.75.
Victoria is the least affordable regional housing market with a multiple of 1.55.
Overall, the index improved from 65.3 to 68.9 with the national affordability multiple improving from 1.53 to 1.45.
A year ago it was 1.72.
“This is the eighth consecutive quarter of increase in the index, bringing it close to levels not seen since the depths of the GFC during 2009,” says HIA senior economist, Shane Garrett.
“For regional areas, affordability is at levels last seen during the early 2000’s decade. Affordability is on the increase in every part of the country.
“This has been driven by the weakness of price developments as well as the two cash rate reductions effected by the RBA in the final quarter. Continued growth in earnings has also served to make housing more affordable”.
“It is worth noting that affordability would be even more favourable to householders had recent RBA rate cuts been passed on fully be lenders.”
Despite the continued improvement in housing affordability first-home buyer numbers remain at <a target="_blank" href="/news">near record eight year lows</a> with Garrett noting that “transactions activity on the ground is very sluggish”.
“This underlines the need for stronger interventions from the RBA in terms of interest rates and from the government with regard to the heavy taxation of home purchase,” he says.
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Regional housing affordability at its best since early 2000s: HIA

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Struggling fashion designer Bettina Liano has slammed the high rents charged in the Melbourne CBD after closing her Little Collins Street boutique and opening a new shop in New York’s SoHo district.
In a scathing attack reported in fashion industry magazine Ragtrader, Liano said her rent was over $20,000 a month for the 134-square-metre store - double what she is paying to rent at 246 Mott Street in SoHo. Liano says she also plans to open stores in San Francisco, Los Angeles and Miami.
The empty store at 269 Little Collins Street is vacant and <a href="https://www.realcommercial.com.au/property-retail-vic-melbourne-500634111" target="_blank">listed for lease by Max Cookes and Zelmain Ainsworth of CBRE</a> with a seven- to 10-year lease term.
''What I was paying for the Little Collins Street store was exorbitant,'' she told Ragtrader. "It cost me over $20,000 a month but this store in SoHo is less than $10,000 a month. And there are people here. In Little Collins Street, there's no traffic, it's tumbleweeds."
She had previously closed her store on Chapel Street, where she paid rent of <a target="_blank" href="https://www.propertyobserver.com.au/retail/bettina-liano-closing-australian-stores-and-selling-jeans-in-the-united-states/2013022159492">$25,000 per month.</a>
Her comments come as the Melbourne Fashion Week is underway.
The Age reports that Liano's Little Collins Street store was closed last month due to a breach of her lease after she failed to fulfil her rental obligations.
Melbourne ranked as the <a target="_blank" href="https://www.propertyobserver.com.au/retail/sydney-melbourne-and-brisbane-in-world-s-top-10-priciest-shopping-strips/2012121858568">sixth most expensive prime retail rent market in the world last year </a>at $850 per square foot per annum, falling short of London at $988 per square foot, according CBRE figures.
Other vacant retail spaces on Little Collins Street include a 27-square-metre café and basement space below the Causeway Hotel at <a href="https://www.realcommercial.com.au/property-retail-vic-melbourne-500513571" target="_blank">353 Little Collins Street</a>, which is being marketed for lease by Jeremy Marmur and Michael DiCarlo of Savills Melbourne.
An 80-square-metre retail space at <a href="https://www.realcommercial.com.au/property-retail-vic-melbourne-500257701" target="_blank">347 Little Collins Street</a> is also vacant and available for lease through Savills Melbourne.
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Bettina Liano slams “exorbitant” Melbourne rents as Little Collins shop sits empty

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A property bubble is building in Australia’s commercial property market due to a “wall of money” flowing into the sector from offshore institutional investors, Paul Weightman, chief executive of property trust and fund manager Cromwell, has warned.
Speaking at an RBS Morgans function in Brisbane yesterday, Weightman said the current bubble building was different to that which occurred prior to the GFC when rising rents led to compressed capitalisation rates – the amount of time it takes for a building to pay for itself.
He says the current bubble is compressing rental yields without proper regard to the fundamentals, according to his comments reported by The Australian Financial Review.
Weightman added that it was hard to see where office and retail rental growth would come from in capital city commercial property markets in the eastern states (Sydney, Melbourne, Adelaide, Canberra and Brisbane).
“We have enormous amount of capital from offshore looking to find a home in the Australian market but we have pretty poor underlying property fundamentals," he said.
A recent report from Colliers International anticipated <a href="https://www.propertyobserver.com.au/office/chart-of-the-week-why-2014-will-feature-renewed-growth-in-the-office-market/2013031859780" target="_blank">no growth in the commercial CBD office market in 2013</a>, but renewed growth from 2014.
The most recent<a href="https://www.propertyobserver.com.au/office/sydney-the-only-partial-bright-spot-as-cbd-office-vacancies-rise-with-mining-demand-down-pca/2013020659204" target="_blank"> Property Council of Australia office report</a> for the second half of 2012 said net absorption at 83,685 square metres across Australian CBD office markets was the lowest since the six months to July 2009 and less than half the 20-year historical average.
In anticipation of the bubble bursting, Cromwell will look to sell some of its assets and reduce the amount of debt it carries – as it did in 2006 prior to the market collapsing.
Cromwell was recently included in the S&amp;P/ASX 300 Index.
It reported statutory accounting profit of $29.5 million for the six months to December 2012 compared to a prior year loss of $6.8 million
Cromwell has a $1.9 billion commercial property portfolio comprising a mix of office, industrial and retail assets in east coast markets.
Prominent CBD assets include 321 Exhibition Street, a 20 level office building and the 18 level 320 LaTrobe Street both in Melbourne and the twin office tower complex on Victoria Avenue in Chatswood acquired in 2006.
Cromwell property trusts include the recently closed and oversubscribed Ipswich City Heart Trust comprising the $93 million Ipswich City Heart Building, a 9-storey commercial office/retail building to be constructed in the Ipswich CBD offering investors an 8% return.
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Cromwell to sell assets as commercial property bubble builds: Paul Weightman

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Melbourne eastern suburbs estate agents PhilipWebb have ditched "Jurassic" newspaper print advertising and will instead recommend that its clients only advertise their properties online.
It has previously advertised real estate listings via local publications including The Weekly Review, but believes that clients get the best value for money by advertising online.
It will place ads in print, but only if directed to do so by clients.
News Limited's Leader community newspapers publish a number of editions servicing the Melbourne eastern suburbs market as does Fairfax through its community newspapers joint venture with Antony Catalano's Metro Media Publishing group, publisher of the The Weekly Review.
PhilipWebb believes that print advertising is just a way for estate agents to get their brand noticed - paid for by the client.
PhilipWebb is promoting its online-only message via a slick-looking graphical <a href="https://www.youtube.com/watch?feature=player_embedded&amp;v=7AdbWYRDM2c" target="_blank">YouTube</a> video with the heading “why it’s time to abandon Jurassic advertising”.
It begins with the statement “Once upon a time dinosaurs ruled the planet…much like newspapers” and goes on to talk about the “meteoric rise of digital advertising which points to a similar fate for newspapers”.
“But newspapers are being kept alive by real estate agents who use your money to promote themselves instead of what should be the star attraction: your property.”
The video claims that a newspaper marketing campaign costs between $5,000 and $12,000 “most of it on an advertising dinosaur which is lucky to attract 0.5% of your target audience”.
The group promises a full online advertising campaign for $2,800 including GST.
The video, which is being promoted to clients via social media, also plays on the PhilipWebb name calling it the “webb revolution”.
 
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Founder and director PhilipWebb says advertising properties in newspapers is not a “great return on investment for any vendor”.
“However, we know that nine of out ten people use websites to research buying properties. Online advertising allows you to reach your exact demographic through priority placement and refined searching.”
Webb said in his experience only about 50% of <a href="https://www.propertyobserver.com.au/residential/vendor-sentiment-index-rising-sqm-research/2013022559538" target="_blank">vendors</a> understand the benefits of online marketing.
PhilipWebb will continue to promote its brand in local newspapers because clients still flick through the local paper.
“The fact is that newspapers are lucky to attract about 0.5% of your target audience,” Mr Webb said.
“That’s not great return on investment for any vendor.”
“Some clients browse the paper over the weekend and equate that with the serious searching potential buyers do online. Our experience is that it is quite rare.
“We believe in investing our clients’ money where it’s going to provide value, and a much larger percentage of people (89%) committed to purchasing property are looking solely online.
“If our clients wish to include newspaper advertising as part of their campaign, then of course we are happy to arrange this for them, but we no longer recommend they spend thousands on paper advertising. Simply put, we don’t see it working like it used to,” he says.
He believes that video will have increasing importance as the digital revolution continues.
“We strongly believe in the engaging power of video. We believe that its ability to reach buyers on an experiential level positions them to view - if not buy - a property much better than static text and images.”
PhilipWebb stopped advertising in metro dailies in 2000.
The real estate group has offices in <a target="_blank" href="/news">Doncaster</a>, <a target="_blank" href="/news">Ringwood</a> and <a target="_blank" href="/news">Mitcham</a> and promotes itself as the largest non-franchised firm in Melbourne with 110 staff.
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Melbourne estate agents PhilipWebb ditch “Jurassic” newspaper advertising

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Melbourne real estate groups Jellis Craig and Bennison Mackinnon have merged their operations to form a boutique Stonnington group servicing the upmarket inner south east suburbs of<a href="/news"> South Yarra</a>, <a href="/news">Prahran</a>, <a href="/news">Windsor</a>, <a href="/news">Toorak</a>, <a href="/news">Armadale</a>, <a href="/news">Kooyong</a>, <a href="/news">Glen Iris</a>, <a href="/news">Malvern</a> and <a href="/news">Malvern East.</a>
Jellis Craig Bennison Mackinnon is aiming to be the dominant group in the municipality of Stonnington and to have stronger representation in <a href="/news">Richmond </a>and on the <a href="/news">Mornington Peninsula</a>.
The combined group will have 350 staff operating across a 13 office network.
The co-branded component of the merger will include combined offices in Armadale, South Yarra, Richmond and Sorrento and will launch on April 15 2013.
Jellis Craig CEO Nick Dowling told Property Observer this was a "one off merger" that perfectly complimented where both agencies are geographically strong.
He added that both agencies are also well-aligned culturally.
The four co-branded offices will include new signage featuring both brands with Bennison Mackinnon colours predominent.
Dowling says this is a mark of respect for the "rich heritage" that both brands carry and to show that it is a "genuine merger".
The remaining nine offices will continue to operate under the Jellis Craig banner.
“Bennison Mackinnon and Jellis Craig each have a rich and successful heritage in residential sales and property management collectively spanning more than 50 years. Joining forces will further cement our dominant market positions across our key geographic areas,” says Dowling.
CEO of Bennison Mackinnon group Andrew McCann will join the Jellis Craig board.
McCann says the combined group will have access to a significantly increased referral network, client database and technology platform.
“Together we are creating a formidable force within the inner south eastern suburbs of Melbourne while further strengthening our operations in Richmond and Sorrento. We will be focusing on increasing our strong positions in these markets as well as ensuring we are well positioned to capitalise on new growth opportunities.”
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Jellis Craig and Bennison Mackinnon merge to form boutique Melbourne agency

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Department store giant David Jones may look to redevelop its flagship department stores in the Sydney and Melbourne CBDs as it reported a 13.5% decline in interim profits.
<a href="/companies/david-jones" target="_blank">David Jones</a> reported a company-wide profit after tax of $73.5 million for the six months to January 26 compared with $85 million in the same period in 2012.
Leasing and occupancy costs increased from $93.3 million in 2012 to $95.6 million in 2013 over the six month period.
“In 2012 independent property consultant Cushman &amp; Wakefield concluded that the potential worth of the company’s Sydney and Melbourne flagship CBD store properties (on an existing use basis) was $612 million,” said David Jones in its half-year results announcement.
The flagship stores are the two Sydney stores on Elizabeth Street and Market Street in Sydney - the former being the very first David Jones store, which opened in 1927 - and the Melbourne store on Bourke Street Mall.
“The company is continuing to explore options to unlock the development value of these assets, whilst retaining ownership of its retail trading space.
“Priority has been given to the two Sydney sites as it felt these have the greatest potential.
“CB Richard Ellis has been appointed to advise the company on maximising the value of these assets.
“This remains a significant opportunity for the company however it is complex and will take time.”
The Australian Financial Review speculated this could mean adding "airspace" above its Sydney stores with "20 storeys to its Market Street store and perhaps five stories on Elizabeth Street where development is restricted because it could overshadow Hyde Park".
The extra storeys would be turned into hotels and apartments.
As part of interim results briefing, David Jones said it would continue to focus on its omni channel retailing (OCR) strategy, which includes emphasis on online sales.
Online sales increased 288% in the second quarter of 2013 following the launch of the David Jones web store in mid-2012.
David Jones chief executive Paul Zahra also highlighted that the company would examine its store portfolio in light of its broader omni channel retailing strategy and with six store leases in “less robust demographic locations:” set to expire in the next five years.
Stores in <a target="_blank" href="/news">Bondi Junction</a> and Canberra Centre will be refurbished over the next 12 months while the company will also focus on improving the productivity of stores with a target of lifting its average proportion of selling space compared to gross lettable area from a current 76% across the store portfolio to 85%.
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David Jones considers development of flagship Sydney and Melbourne stores

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Australia’s largest customer-owned lender, CUA, has cut its three-year fixed rate from 5.25% to 5.1%, effective from Friday (March 22).
The move follows <a href="/news">Westpac lifting its two-year fixed-rate</a> from 4.99% to 5.29% today and expectations from mortgage broker Loan Market and Channel Nine's Ross Greenwood that fixed-rates would start rising again.
In his money minute segment today on Channel Nine Today Greenwood said the Westpac move was indicative of the banks changing their views on loan rates.
CUA general marketing manager Jason Murray highlighted that the move was "contrary to one of the nation’s largest banks".
Murray says the CUA’s three-year fixed rate is significantly lower than the equivalent standard rates offered by the Big Four banks, now by thirty four basis points (0.34%).
"On an average loan size of $300,000 with a 30 year term, a three-year fixed rate home loan from CUA at 5.10% could save homebuyers $63 per month, or $2,2681 over the three year duration of the loan, compared to the average rate of the big four banks on their equivalent products.
 “While one of Australia’s largest banks has moved to increase their fixed rates, CUA has chosen to make further cuts to its entire suite of fixed rate products. We are determined to offer customers the best deal we possibly can and these cuts further demonstrates that. 
“CUA aims to provide Australians with an innovative alternative based on value and service to the major banks and we are constantly looking at ways to reinforce this to our customers,” he says.
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CUA cuts three-year fixed rate to 5.1% and sticks boot into big banks

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Australia’s  biggest mall, Chadstone Shopping Centre, ranked as the top performing shopping centre in Australia in 2012 with 5% growth in sales, according the latest 'Big Gun' rankings compiled by Shopping Centre News.
Shopping Centre News defines a Big Guns centre as one with a gross lettable area of  45,000 square metres or more.
The 155,000-square-metre Chadstone mall (pictured below) in <a target="_blank" href="/news">Malvern East</a>, jointly owned by CFS Retail Property Trust and Gandel Group, generated moving annual turnover of $1.365 billion. The result was well ahead of the second best performing mall, the Westfield Bondi Junction, which recorded sales of $961 million – a decline of 1.2%.
<img alt="chadstonemarch20one1" height="310" width="470" src="/images/stories/2013/03/chadstonemarch20one1.jpg">
In early 2013 updates, shopping centre landlords CFS Retail Property Trust, Westfield, AMP Capital Shopping Centres and Stockland all reported <a target="_blank" href="https://www.propertyobserver.com.au/retail/shopping-centre-leasing-enquiries-rising-as-overall-outlook-brightens-jones-lang-lasalle-survey/2013031359856">improved retail trade conditions</a> with the ABS recording a 0.9% seasonally adjusted rise in retail sales over January to $21.6 billion.
“Despite what has been a challenging year, the underlying fundamentals remain mildly accommodative for retail expenditure,” said Michael Gorman, CFS Retail Property Trust fund manager.
Speciality sales lifted 4% across the CFS Retail Property Trust portfolio in January.
Gorman said <a href="/news">Chadstone</a> had benefited from "judicious remixing" of its retailing tenancy profile including opening a Zara store in August last year and "exiting some underperforming brands".
He told The Australian Financial Review the luxury precinct remained a strong performer, as did the Apple store.
Westfield occupied eight of the top 10 positions on the Shopping Centre News list with the performance of Westfield Sydney notable. The most recent addition to the Westfield group, the Sydney CBD mall generated $837 million in sales, growth of 11.3%.
Westfield Sydney also ranked first by speciality store sales generating $15,660 in turnover per square metre, growth of 3.4% ahead of Chadstone (up 8.6% to $14,333 square metres) and Westfield Chermside ($13,692 per square metre, no growth).
However, demonstrating what according to Shopping Centre News publisher Michael Lloyd was not the “greatest of years” for retail sale growth, annual turnover fell at Sydney eastern suburbs shopping  mecca Westfield Bondi Junction and Westfield Chermside in Brisbane.
 
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Top 10 malls by moving annual turnover
<ol>
<li>Chadstone, Melbourne - $1,365.4 million (+5%)</li>
<li>Westfield <a target="_blank" href="/news">Bondi Junction</a>, Sydney - $961 million (-1.2%)</li>
<li>Westfield <a target="_blank" href="/news">Chermside</a>, Brisbane - $876 million (-1.6%)</li>
<li>Westfield <a target="_blank" href="/news">Doncaster</a>, Melbourne - $840 million (+3.4%)</li>
<li>Westfield Sydney - $837 million (+11.3%)</li>
<li>Westfield Southland, Melbourne - $787 million (+ 1%)</li>
<li>Westfield <a target="_blank" href="/news">Marion</a>, Adelaide - $783 million (+ 1.3%)</li>
<li>Westfield <a target="_blank" href="/news">Carindale</a>, Brisbane - $762 million (0%)</li>
<li>Robina Town Centre, Gold Coast - $748 million (+0.9%)</li>
<li>Westfield Warringah Mall, NSW - $714 m (-0.2%)</li>
</ol>
Source: Shopping Centre News
Chadstone Mall is valued at $3.21 billion and returns a terminal yield of 5.5% according to CFS Retail Property Trust figures.
Around 20 milllion people shop at the mall every year.
The largest tenant in the mall is Myer which occupies 12% of the gross lettable area followed by David Jone with 9.9%, Hoyts cinemas with 5.1% and Target with 4.9%.
In addition there are over 500 speciality stores including internatinal retailers Zara and GAP.
Chadstone Mall dates back to the 1960s and is a super-regional shopping centre owned by Colonial First State Global Asset Management, with 50% owned by its listed property trust Colonial First State Retail Property Trust (CFS) since 1994.
In November last year Victorian planning minister Matthew Guy approved <a target="_blank" href="https://www.propertyobserver.com.au/retail/chadstone-mall-%24500-million-expansion-wins-victorian-government-planning-approval/2012111257765">a $500 million expansion of Chadstone Mall.</a>
The expansion plans include the building of twin 14-storey buildings comprising offices and a hotel at the southern end of the mall, two floors of international retailers, refurbishments of the cinemas and food precincts, and the addition of 1,400 new car-parking spaces.
The Shopping Centre News report found that around $40 billion was spent across 93 “big gun” malls over 2012 with 52 reporting an incerase in sales and 33 experienced a decrease in sales.
Overall 2012, retail spending across the 93 malls grew 1.7% over the year.
This was below national retail sales growth of 2.5% as recorded by the ABS.
Image courtesy of Flickr.
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Chadstone, the nation's biggest shopping mall, records 5% retail sales growth

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<img alt="macreemarch20one" height="94" width="470" src="/images/stories/2013/03/macreemarch20one.gif">
John Macree says he loves selling industrial manufacturing plants as they are "often like a time capsule back to a very different era".
<img src="/images/stories/2013/02/macreemarch20two.png" width="200" height="200" alt="macreemarch20two" style="margin: 5px; float: left;">Agent: John Macree
Position: head of NSW sales and investments
Company: Jones Lang LaSalle
Office location: Sydney

How long have you been in the industry? 
28 years. I started in property management working at Government Insurance Office GIO. I then moved into industrial sales and leasing with Hooker Corporation in the mid-1980s. I’ve been in sales with Jones Lang LaSalle for the past 13 years. 
What’s happening in the area you specialise in? 
There’s strong demand for well-leased passive investments in all price points. Current active buyer groups in the sub-$20m range include private investors and self-managed super funds. In the over-$20m range, institutional investors – both listed and wholesale – as well as offshore buyers are active. Residential development sites are in demand – particularly those within a 20km radius of the CBD. 
Describe the most interesting property you have sold. 
I love selling industrial manufacturing plants; they are often like a time capsule back to a very different era. One of the more interesting manufacturing sales was the Capral Aluminium manufacturing facility at Rose Hill. They manufactured a range of products from aluminium and ingots. 
The site had a range of sale issues including flood affectations and site contamination. It also had bomb shelters that were built during WWII – at the time it was identified as a potential target. The reason was that it manufactured aircraft propellers for the war effort. It made it an interesting protracted sale process. 
The property has now been redeveloped and is a premier Industrial business park owned by the Goodman Group. 
What are the ingredients to being successful in your job? 
Understanding the clients’ needs, and being able to manage issues. The role is more than a sales role – it involves problem solving, providing counsel as well as negotiation skills. 
What aspects of your role do you enjoy the most? 
Re-selling properties for clients – particularly those that are making a healthy profit. 
Where would you invest a spare $750,000? 
I would leverage it into property and invest a small portion into equities. 
Which football team do you support? 
Waratahs in rugby, Manly in NRL and Swans in AFL.
What’s your favourite app or techno gadget? 
My iPad. 
Follow on Twitter or LinkedIn (provide details): 
Twitter: <a target="_blank" href="https://www.twitter.com/jllaustralia">www.twitter.com/jllaustralia</a>
LinkedIn: <a target="_blank" href="https://au.linkedin.com/pub/john-macree/55/433/3b0">https://au.linkedin.com/pub/john-macree/55/433/3b0</a>
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In profile: Jones Lang LaSalle’s head of NSW sales and investments John Macree

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The premises of a brothel formerly owned by bankrupted Gold Coast entrepreneur Ken Lacey have been listed for April 3 auction.
The <a href="https://www.commercialrealestate.com.au/property/2010324947/for-sale/nsw/chinderah/industrial-warehouse" target="_blank">31-33 Morton Street, Chinderah</a>, property is near <a href="/news">Tweed Heads</a> on the far north coast of NSW.
The listing includes photos of the entertainment area complete with pole-dancing space as well as of the bedrooms, one of which has a jacuzzi and tiger print pillows.
{yoogallery src=[images/stories/2013/03/march20lacey]}
The vacant property comprises a 568-square-metre two-level building, which has current approval for a 24-hour brothel formerly known as Lacey’s Club Lace bordello.
The listing of the brothel made front page news in the <a href="https://www.goldcoast.com.au/article/2013/03/20/448963_gold-coast-news" target="_blank">Gold Coast Bulletin</a> today after one of Ken Lacey's sons  - Jade Lacey - had his current prison sentence extended by two years.  Another son - Dionne Lacey - is also serving a long jail sentence.
Sam Johnson and James Shugg of Ray White Commercial Coolangatta/Tweed Heads have the listing.
Johnson tells Property Observer, the property offers investors net yields of around 8% to 10%.
"We've received 11 serious enquiries and had a 127 hits on the website, so there's good interest in the property," he says.
Johnson says the property would appeal to investors or developers who might also be interested in running the brothel, which is currently vacant.
Development approval to expand the existing facilities with 19 industrial units expired in January, but could be easily renewed, he says.
“The approved brothel has recently undergone a complete refurbishment,” Johnson says.
“This was a high-class brothel which the former milk magnate Ken Lacey had originally purchased as an inheritance for his sons Jade and Dionne, who are presently serving prison sentences for a number of offences.
“Ken has withdrawn from the sex industry and the property will be sold vacant.
“The property certainly has a colourful history as a previous owner of the brothel Victor Elliott was gunned down there in a contract killing in 2000.”
Shugg says the total land area of the property was 4,093 sqm and there was potential gross rental income of $180,000 per annum.
“The property also includes two large 200-square-metre warehouses with an attached 85-square-metre office,” he said.
“There’s an additional 2000-square-metre of hardstand with approval for 19 industrial units.”
Last September, Property Observer reported on a brothel in the outer Melbourne suburb of Campbellfield which had $3 million price hopes but was <a href="https://www.propertyobserver.com.au/leisure/campbellfield-brothel-fails-to-perform-at-auction-and-passed-in-at-%2428-million/2012092856879" target="_blank">passed in at auction</a>.
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Former Ken Lacey Tweed Heads brothel premises with pole dancing space listed for April auction

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.

Joel Robinson

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

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

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]

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>.

Larry Schlesinger

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