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The Newcastle residential real estate market strengthened in the last six months of 2012 with rising prices and rents attracting growing enquiries from out-of-town investors.
Interest has been particularly strong among investors for cheap inner-city units offering rental yields of between 5% and 7%.
<a href="https://www.propertyobserver.com.au/new-south-wales/newcastle-fringe-suburbs-attracting-first-home-buyers-and-investors-with-many-options-under-%24300000-htw/2012120258247" target="_blank">Market momentum</a> was also maintained by a stable presence of first-home buyer despite the withdrawal of the $7,000 grant at the end of September last year.
“Despite somewhat softer conditions in the Hunter Valley’s coal industry, record trade in the Newcastle port is driving the employment market in Newcastle, with infrastructure investment in the City positioning it as one of the most robust regions in NSW,” says PRDnationwide research analyst Oded Reuveni-Etzioni.
In December last year, the NSW announced a new master plan for the Newcastle CBD with the aime of revitalising the Newcastle City Centre.
“Marked by the termination of the railway at Wickham the plan prescribes a replacement of the existing railway line with a pedestrian-friendly corridor and is expected to stimulate investment in the CBD,” says Reuveni-Etzioni.
PRDnationwide records the <a href="/news">Newcastle</a> median house price up 9.3% $405,000 and the unit price up 6.4% just under $350,000 for the 2012 calendar year.
Both house and unit prices in Newcastle have been trending up since around June 2009 – though the progression has not been smooth, as the graph below prepared by PRDnationwide shows.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2013/03/newcastlemarch19graph.gif"><img src="/images/stories/2013/03/newcastlemarch19graphthumb.gif"></a>
Final figures are not yet compiled for the six months to December 2012, but PRDnationwide expects they will mirror the December 2011 period when around 1,300 house and 489 unit sales were recorded.
Preliminary figures record 1,649 transactions for the year – 1,235 houses and 414 units sold.
PRDnationwide figures record that 40% of house sales and 68% of unit sales in the region where for properties in the inner city suburbs.
“Comparing the December 2012 unit price point with the corresponding period in 2011 revealed a 7% decline in units selling between $300,000 and $399,999 along with an increase in the size of price brackets between $400,000 and $800,000. The demand for luxury apartments priced $800,000 plus declined by two per cent from 2011,” says Reuveni-Etzioni.
Apartments priced below $300,000 made up 25% of unit sales over the year and yielding “attractive” rental returns of between 5% and 7% and proved attractive to investors.
Current investor listings include a <a target="_blank" href="https://www.realestate.com.au/property-apartment-nsw-newcastle-109446051">two-bedroom Quest serviced apartment on Hunter Street</a> seeking offers above $299,000 and marketed by Josh Mana of Raine &amp; Horne – Newcastle. The apartment offers guaranteed income of $1,653 per month – a gross yield in excess of 6%.
Another inner city listing is a one-bedroom, <a target="_blank" href="https://www.realestate.com.au/property-apartment-nsw-newcastle-113209003">sixth floor apartment on Watts Street</a> being offered for $273,000 by Christian Booth of Robinson Property – The Junction. The property is rented at $325 per week – a yield of 6.2%.
 
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Reuveni-Etzioni says realistically-priced off-the-plan stock also experienced strong uptake from investors and first home buyers, with first time buyers taking advantage of the $15,000 first home buyers grant and stamp duty exemptions.
“There are currently approximately 250 units under development in the inner city, with a large portion of units sold off the plan. This level of development is considered adequate when the growth in demand for units is taken into consideration,” he says.
PRDnationwide records a Newcastle rental vacancy rate of 1.7% for January 2013.
Rental vacancy figures from the Real Estate Institute show a higher vacancy rate of 2.5% for February (2% for January), but still well below the balanced market figure of 3% - indicating a market that favours landlords over renters.
According to local council area figures, two-bedroom unit rents rose 7.3% over the year to $346 per week while three-bedroom house rents increased by 5.4% to $400 per week.
“Of particular interest was growth in rents for single bedroom apartments, with a median price increasing by 10.4% over 2012. Not surprisingly, the inner city represented 50% of single bedroom dwellings within the LGA,” says Oded Reuveni-Etzioni.
He says the strong performance of the Newcastle property market following the GFC “was initiated by first home buyers and upgraders, with investor activity increasing in 2012”.
“In the second half of the year first time buyers’ activity remained stable despite the cancellation of incentives for existing dwellings.
“A growing number of second-home buyers purchased units as a medium-term investment with an outlook to use it for their main residence in the long term.
“Investors were induced back into the market by rising rent prices and a decline in the cost of funding. Anecdotal evidence points to a growing number of out-of-town enquiries, with particular interest in inner city apartments,” says Reuveni-Etzioni.
In the detached housing market, the suburb of Merewether recorded the highest number of sales for the period (85 sales) followed by New Lambton (79 sales) with the $900,000 plus bracket almost doubling to represent 13% of the market in the second half of 2012.
Photo by Michael Coghlan, courtesy of Flickr.
 
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lschlesinger-FZcF9M3vE6

Investor interest rising as sub-$300,000 Newcastle inner-city units offer 5% to 7% yield potential: PRDnationwide

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Now is the “perfect” time to consider buying an investment property, says Aussie Home Loans founder John Symond.
He says there are at least half a dozen suburbs in each capital city where gross rental yields are greater than the cost to repay the mortgage, and in some cases, where rent is increasing year on year.
“It’s the perfect time for the average Australian to consider a move into property investment if they have some money saved,” says <a target="_blank" href="https://www.propertyobserver.com.au/residential/demand-rising-for-tiny-studio-apartments-but-mortgage-hurdles-higher-aussie-john-symond/2013011058719">Symond</a>.
“Both fixed rates and variable rates are the lowest they have been in years; interest rates can be below 5%, housing prices in some areas are historically low but are starting to move back up, and now investors can earn rental yields between 5% and 10% in some areas," he says.
Figures derived from RP Data analysis show that Bella Vista in Sydney’s outer north west (33 kilometres from the CBD) is offering investors the highest average gross rental yield followed by Ultimo, just on the edge of the CBD.
The Sydney suburbs offering the highest gross rental yields are:
<ol>
<li>
<a href="/news">Bella Vista</a> (11.5%)</li>
<li>
<a href="/news">Ultimo</a> (9.0%)</li>
<li>
<a href="/news">Wyong</a> (7.3%) plus high rental growth of 24.1%</li>
<li>
<a href="/news">Bradbury</a> (7.3%); </li>
<li>
<a href="/news">Tregear</a> (7.3%)</li>
<li>
<a href="/news">Jamisontown</a> (7.1%)</li>
</ol>
Source: RP Data
<ol></ol>
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John Symond says it’s the "perfect time" to invest with Bella Vista offering the top gross rental yield in Sydney

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The current housing market recovery is the weakest cyclical upswing since the late 1980s, according to ANZ.
The following chart, prepared by ANZ in its March quarter research report, compares the current upswing in house prices (which began in February last year) with four other cyclical upswings.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2013/03/anzmarch18chartone.gif"><img src="/images/stories/2013/03/anzmarch18chartthumb.gif" width="470"></a>
The previous housing market upswing between February 2009 and February 2010 was both the most rapid and shortest-lived, following on from 425 basis points cut from the cash rate between September 2008 and April 2009 as the RBA took drastic steps to keep credit markets flowing in the wake of the GFC.
It also followed the availability of the first home owner boost scheme, which provided an additional $7,000 for first-home buyers buying existing homes and $14,000 for those building or buying new homes.
The scheme ran from October 2008 to December 2009 (the grant was halved between October 2009 and December 2009) with the contention being that it artificially inflated house prices as vendors capitalised on rising demand from eager first-home buyer numbers.
The current modest recovery follows an expected 225 basis points being cut from the cash rate since November 2011. This reflects ANZ's forecast of a further 50 basis points cut from the cash rate in 2013 on top of the 175 basis points already cut to date. 
"If the current cycle were to only have 175 basis points then our starts/dwelling investment forecast would be even softer," says ANZ's head of property research Paul Braddick.
ANZ economists Ivan Colhoun and Katie Dean, authors of the Australian portion of the quarterly report, say while there are some moderate signs of improvement in residential building approvals, this sector still faces “serious constraints”.
“Soft house price expectations, poor housing deposit affordability for first-home buyers, relatively tighter credit conditions for developers, difficult approval processes and limited land availability and accessibility all mean that this is prospectively the weakest cyclical recovery of the past five housing upswings,” they say.
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Current housing upswing the weakest since 1987: ANZ

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Borrowers can secure variable mortgage rate discounts of as much as 1.2% off the standard variable rate as banks continue to compete for new business in a slow-growth mortgage environment.
Banks are advertising their variable rate discounts in print campaigns and through their websites, but never these discounts, and certainly never available to all their customers.
Existing borrowers with equity in their homes may be able to secure similar or greater discounts in negotiations with their bank manager if they are of good standing and can demonstrate that they intend to refinance into a cheaper home loan with another lender.
However, borrowers should be aware that refinancing can be an<a target="_blank" href="/news"> expensive protest.</a>
Last month <a href="/news">Channel Nine finance journalist Ross Greenwood </a>suggested any borrower “worth their salt” could get 100 basis points cut from the standard variable rate.
The suggestion was made to Commonwealth Bank CEO Ian Narev at a media briefing – Narev responded by saying the standard variable rate was just a benchmark rate against which the bank determines the rate offered to its customers.
Canstar researcher Mitchell Watson told Fairfax that NAB, Macquarie Bank and building society IMB had all increased the discount offered on home loan packages recently.
''Our data would suggest that you can achieve up to 1.2 percentage points off the standard variable rate, which is being offered by Citibank,'' Watson said.
120 basis points - Citibank
Citibank’s standard variable rate is 6.69% with its website showing its lowest variable rate offering being 5.49% - a difference of 1.2 percentage points.
To be offered this rate borrowers must have a minimum 30% deposit – a hefty requirement – and a minimum loan amount of $150,000.
105 basis points – Bank of Queensland
The Bank of Queensland is offering 105 basis points off the standard variable rate for the first two years of the loan as part of its Home Loan Privileges Package. The offer is available for home loan applications between February 1, 2013 and March 31 2013 and settled by July 31, 2013. The offer is for loan amounts from $250,000 and $1,000,000. After the two-year period, a discount rate of 0.85% p.a. off the applicable standard variable rate will apply for the remaining life of the loan.
Bank of Queensland’s standard variable rate is 6.51%.
101 basis points – Macquarie Bank
Macquarie Bank is offering a 101 basis point discount off the standard variable rate for the life of the loan for loans with a loan to value ratio of 80% or less. The offer is available under its classic loan, premium loan and line of credit offerings. The offer is for new home loan lodgements only that settle  by June 30.
Macquarie Bank’s standard variable rate is 6.45%. 
101 basis points – Bankwest
Bankwest is offering a 101 basis point discount off the standard variable rate for two years under its Double Deal Home Loan – a variable rate of 5.38%. The offer requires a 5% deposit. The offer rolls over to the regular save home loan rate after two years, which is currently 5.89%. 
100 basis points - Westpac
Westpac is advertising “up to 1% discount” in its “Castles” campaign which is running in newspapers across Australia.
The discount is available for a limited time for customers who take out a new home loan of $500,000 or more under its premier advantage package.
This discount incorporates the standard 0.7 percentage point discount under its package home loan offering plus the additional 0.3 percentage point discount for new loans of $500,000 or more.
90 basis points – Suncorp
Suncorp is offering this discount off the standard variable rate for the life of the loan under is its home package plus offering, which includes a platinum credit card. The discount rate is only available to new customers who take out a standard variable rate home loan as part of the package, with a balance of between $250,000 and $499,999 and who contribute a minimum 20% deposit. 
Suncorp has a standard variable rate of 6.49%
85 basis points - NAB
NAB’s lowest variable rate offering is 5.53% - 85 basis points below its standard variable rate of 6.38%.
The offer is for new loans issued from February 11, 2013 and only for a limited time.
The loan must have a balance of $500,000 or more.
80 basis points – Commonwealth Bank
The Commonwealth Bank is offering a maximum discount of 0.8% off the standard variable rate for package home loan borrowers. The offer is for new loans issued from January 9 and requires a balance of $150,000. The special office is “subject to change without notice”.
The bank’s standard variable rate is 6.40%
80 basis points - ANZ
ANZ is offering a maximum discount of 0.8% off the standard variable rate under its breakfree package offering.  The offer is for new loans issued from November 13, 2012 and only for a limited time.
The maximum saving is available for borrowers who take out a loan of $500,000 or more with a loan to value ratio equal or less than 80% - this would require a minimum deposit of $100,000 on a $500,000 loan.
70 basis points – Bendigo Bank
Bendigo Bank is offering a maximum 0.7% off the standard variable rate under its home loan package plus. It requires a minimum loan amount of $250,000. The bank has a standard variable rate of 6.51%.
65 basis points - IMB
Building society IMB is offering a platinum package home loan rate of 5.51%. The loan requires a $500,000 loan balance and a minimum 20% deposit. IMB’s standard variable rate is 6.16%.
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Bank home loan discounts: who's making the biggest offers

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Property investors can use limited recourse borrowing (LRBA) to fund off-the-plan investments using their self-managed super funds.
Under this strategy, your SMSF receives a concessionally taxed rent, pays off the loan while you are still working, and transfers the property to you upon retirement.
After your retirement, you can either:
• Take the property as a non-cash, lump-sum benefit (although capital gains tax is payable on any capital profit, the tax rate is an effective 10% – if the property was owned by the fund for at least 12 months); or
• Buy the property from the fund for its market price. No CGT is payable if the property is backing the payment of a superannuation pension, but you are personally liable for stamp duty.
Under limited recourse borrowing rules SMSFs require a separate lending arrangement for each “single asset”.
In May last year, the ATO clarified what constitutes a single acquirable asset and provided a specific example of what constitutes a single asset in relation to a completed apartment: “The trustees of an SMSF enter into a contract to purchase a strata-titled apartment off the plan. A deposit is required upon entering into the contract, with the balance to be paid upon settlement for the completed strata-titled apartment.
“A single LRBA can be entered into to fund both the deposit and the balance to be paid under the contract upon settlement. Both the deposit and the settlement payment are applied for the acquisition of a single acquirable asset being the completed strata-titled apartment.”
According to AMP financial planning, the ruling recognises that “generally speaking, under LBRA rules, the single acquirable asset is considered to be the completed strata-titled unit, or land with a completed house on it – despite the fact that the building activity is yet to occur”.
As a result, where a contract is entered into for a unit off the plan or a house and land package, both the initial deposit and the final payment upon settlement can now be funded by a LRBA.
Previously, under the draft ruling, it had been suggested that the initial deposit for these types of transactions would need to have been made from existing SMSF assets.
Mortgage Choice broker Michelle Towner,who specialises in helping investors acquire apartments off the plan using SMSF borrowing rules, stresses the importance of these investments being structured correctly and that buyers must engage a qualified financial planner, lawyer or accountant to draft up the contracts.
She says the contract needs to be worded correctly so that when the asset is transferred from the bare trust to the super fund, the SMSF beneficiaries don’t risk having to pay double stamp duty.
The bare trust is the arm’s length holding trust that holds the property until the mortgage has been paid off.
In particular, any off the plan contract must be written to say the deposit is for the acquisition or deferred purchase of the property, not just an option or right to buy the property.
Investors will need to work with a professional to ensure the borrowing arrangements are worded and structured correctly.
For great tips on buying off the plan, download Property Observer’s free ebook – <a href="https://propertyobserver.us2.list-manage.com/track/click?u=24bd0766a834290948593f5aa&amp;id=14e9848476&amp;e=7a53fc6dd9" rel="nofollow" target="_blank">14 tips for buying off the plan: The 2013 guide for investors and owner-occupiers.</a>
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Consider buying off-the-plan using your self-managed super fund

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Accessing financing for new residential developments continues to be a problem for smaller developers, says assistant RBA governor Christopher Kent.
“While finance is available to households on relatively favourable terms, some developers continue to report difficulties in obtaining finance for new construction, with banks requiring a higher proportion of pre-sales than was typical prior to the global financial crisis,” said Kent in a <a href="https://www.rba.gov.au/speeches/2013/sp-ag-140313" target="_blank">recent speech</a> to The Australian Institute of Building in Sydney.
Obtaining funding is not so much of a problem for large developers.
“According to the Reserve Bank's industry liaison, large developers that have a good reputation and a strong balance sheet have access to credit, while small developers have tended to experience more difficulty in borrowing funds,” said Kent.
A 2013 insolvency and distressed assets white paper by Colliers International found that development sites overtook industrial property in 2012 in terms of number of distressed assets on the market across Australia, followed by the industrial, commercial, residential and rural and agribusiness sectors.
<img src="/images/stories/2013/distressed_assets.gif" width="600" height="391" alt="distressed_assets">
“Three sectors, in particular, saw a big spike in the number of distressed assets coming to market; being development sites, rural and agribusiness, and mixed-use developments,” says Felice Spark, director of research at Colliers International and author of the report.
Queensland had the highest number of distressed property assets listed for sale over 2012 with 395 properties listed for sale - a 3.5% increase compared with the 382 properties advertised for sale over 2011.
The biggest increase in distressed assets listed for sale state-by-state occurred in Victoria where there was a 56% increase with numbers rising from 61 properties listed for sale in 2011 to 95 properties listed for sale in 2012.
New South Wales saw a decline in the number of distressed properties on the market, falling back slightly from 256 properties to 242 properties.
“The banks have now begun pushing through, forcing properties to be put to market, with a trend towards secondary or regional-based property,” says Spark.
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Smaller developers struggling to get funding as banks require higher pre-sales: RBA

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Borrowers who choose to fix their home loan for two years at 4.99% would still be $1,500 better off if variable rates fell by 0.5 percentage points over this period, according to a new study by financial comparison website RateCity.com.au.
It found that the cash rate would need to fall by a cumulative 1oo basis points (four rate cuts of 25 basis points each) over this period to a record low of 2% and be passed on in full by lenders for variable borrowers to come out better off.
The study was based on the average of the major four banks’ lowest advertised two-year fixed-rates of 4.99% compared to their lowest advertised variable rates of 5.67%, for a $300,000 home loan with a 30-year loan term.
Borrowers could potentially save even more if they were to fix with AMP, which is offering the lowest two-year fixed-rate on <a href="https://www.ratecity.com.au" target="_blank">RateCity’s</a> database of 4.84%.
However, they should consider all the aspects of any fixed-rate home loan offer beyond just the rate (including fees, the ability to make extra repayments without penalty and other conditions) before deciding on which loan is right for them.
They could also consider splitting their loan between fixed and variable to have a degree of certainty about home loan repayments and also benefit from any variable rate cuts or access other variable rate home loan benefits such as an off-set account or the ability to make additional repayments without penalty.
The likelihood of further rate cuts is being <a href="/news">discounted by lenders with the Commonwealth Bank </a>now not expecting any more rate cuts this year and Business Spectator columnist and economist Stephen Koukoulas writing yesterday that the<a href="https://www.propertyobserver.com.au/news/unemployment-stays-steady-through-february-at-54/2013031459873?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news" target="_blank"> better-than-expected unemployment data</a> meant interest rates were likely to be locked in for a few months at the minimum.
Official ABS figures shows the proportion of borrowers who are choosing to fix their home loan is trending up with 13.1% of dwellings financed with fixed-rate home loans over the past six months to January compared with 12.2% in the previous six months.
February figures from Mortgage Choice (a month ahead of the ABS) recorded an increase in fixed-rate demand to 18% of all home loans with nearly one-in-four Queenslanders opting for a fixed-rate home loan compared with just 11% of Victorians.
Alex Parsons, RateCity’s CEO, said the findings revealed why so many borrowers are currently choosing to fix their home loan.
“It’s unusual to see so many fixed home loans offering cheaper rates than variable.
In fact, out of more than 100 lenders in RateCity’s database, 21 lenders are now offering two-year fixed-rate home loans under 5% – including all four major banks.
Compared to variable, only one lender is currently offering a home loan under 5% – <a href="/news">State Custodians at 4.99%.</a>
This loan does require a hefty 25% deposit and is only available for borrower who are refinancing.
“We discovered that it would take at least three 25 basis point cuts within the first six months or four 25 basis point cuts within the first 12 months for borrowers to be better off with a variable rate,” says Parsons.
“Of course this is off the assumption that any RBA changes are passed on in full immediately which has not recently been the case.
“Borrowers need to remember there are several factors that can impact how much you can save or lose by fixing your home loan such as timing of when rate cuts occur, if lenders pass on the full cuts and if you’ve locked in a good value deal. So to make the most of the home loan market, make sure you use RateCity to compare what lenders are offering and save.”
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Borrowers better off with two-year fixed-rate even if cash rate falls to 2.5%: RateCity

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A four-bedroom Mosman house above Chinaman’s Beach, which sold for $3.05 million through McGrath Estate Agents prior to auction, was the top Sydney sale last week.
It was first listed for sale in August last year with an asking price of $3.3 million.
It last sold for $2.4 million in 2006 and previously for $1.15 million in 2000.
The two-storey, high-set house at the end of a cul-de-sac was advertised as having a master bedroom with a “resort-style” ensuite bathroom with water views and outdoor access.
According to RP Data, Mosman has a median sales price of $2.1 million with an average time on market of 92 days and average discounting of 11%.
The house was sold by Matthew Smythe of McGrath - Neutral Bay who had been giving a $2.9 million plus price guide.
The 60 year old house underwent a redesign by the architectural firm <a target="_blank" href="https://mosmandesignawards.com.au/2011/nominations/35-upper-fairfax-road">Atelier Haefeli</a> about three years ago.
The RP Data Top 10 sales last week were all in NSW:
<a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/35_upper_fairfax_road_mosman_nsw_2088/4484342" target="_blank">35 Upper Fairfax Road, Mosman, NSW, 2088</a>, four-bedroom house, sold prior to auction on March 9 by McGrath Estate Agents for $3.05 million
<a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/1_albany_street_point_frederick_nsw_2250/5495682" target="_blank">1 Albany Street, Point Frederick, NSW, 2250</a>, five-bedroom house, sold prior to auction on March 9 by L J Hooker Terrigal for $2.95 million
<a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/18_govett_street_randwick_nsw_2031/5754429" target="_blank">18 Govett Street, Randwick, NSW, 2031</a>, four-bedroom house, sold at auction on March 9 by Ray White Double Bay for $2.95 million
<a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/36_pauling_avenue_coogee_nsw_2034/1931958" target="_blank">36 Pauling Avenue, Coogee, NSW, 2034</a>, five-bedroom house, sold at auction on March 5 by Raine &amp; Horne Bondi Junction for $2.625 million
<a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/53_francis_street_manly_nsw_2095/3979013" target="_blank">53 Francis Street, Manly, NSW, 2095</a>, four-bedroom house, sold prior to auction on March 9 by Cunninghams Property for $2.355 million
<a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/158_copeland_road_east_beecroft_nsw_2119/1351083" target="_blank">158 Copeland Road E, Beecroft, NSW, 2119</a>, four-bedroom house, sold at auction on March 9 by Century 21 Joseph Tan Real Estate for $2.26 million
<a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/34_park_road_hunters_hill_nsw_2110/3007794" target="_blank">34 Park Road, Hunters Hill, NSW, 2110</a>, four-bedroom house, sold at auction on March 9 by McGrath Hunters Hill for $2.2 million
<a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/18_windsor_street_paddington_nsw_2021/5277848" target="_blank">18 Windsor Street, Paddington, NSW, 2021</a>, four-bedroom house, sold at auction on March 9 by McGrath Estate Agents for $2.175 million
<a href="https://www.realestate.com.au/property-house-nsw-tamarama-113037495" target="_blank">2 Illawong Avenue, Tamarama, NSW, 2026</a>, three-bedroom house, sold at auction on March 9 by McGrath Estate Agents for $2.11 million
<a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/23/69_north_steyne_manly_nsw_2095/3981908" target="_blank">23/69 North Steyne, Manly, NSW, 2095</a>, three-bedroom unit, sold prior to auction on March 9 by Clarke &amp; Humel Property Manly for $1.98 million
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Mosman house above Chinaman’s Beach tops RP Data top 10 sales

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There was a 38.1% rise in construction loans for investment purposes in January, according to ABS January housing figures.
This increase was highlighted by Commonwealth Bank economist Diana Mousina who called it "one positive part" of the otherwise disappointing January data release.
However she told Property Observer this number tended to be "quite volatile".
Overall construction lending rose 4.7% over January and is up 19.5% over the past year. 
"Residential construction activity is in the early stages of a recovery and we expect to see a continued lift in activity over the year. 
"Rising residential construction is an important element in the RBA’s game plan for 2013," say Mousina.
<img alt="CBA_construction_approvals" height="455" width="500" src="/images/stories/2013/CBA_construction_approvals.gif">
Source: Commonwealth Bank
Nationally, loans to buy and build homes rose slightly.
HIA economist Geordan Murray says the aggregate number of loans to owner occupiers for the construction and purchase of new homes rose only 0.6% in  January.
"It would have been a touch optimistic to expect the interest rate cuts late in 2012 to have an immediate impact, but we expect the effects of this to emerge over the coming months.
“While we didn’t see a material improvement in number of loans for new homes in January 2013, activity over the month was still 9.3% higher than we saw in January 2012.
"From this perspective, we have started the year in a better position than we did in 2012.
“If we consider the total value of lending for housing, there was an increase of 2.4% during the month of January 2013. After contracting in the months of November and December 2012 it is pleasing to see lending regain some of the lost ground,” says Murray.
Peter Jones, Master Builders Australia’s chief economist, said the 0.6% rise in the number of loans for the construction of dwellings and for the purchase of new dwellings (and 9.3% up on the corresponding figure in January 2012) was a "welcome pick up but a far cry from the sort of strong housing recovery builders were hoping for given where we are in the current easing cycle". 
“Consumers remain overly cautious about committing to a significant purchase like housing. The industry is hoping the rise in consumer confidence will quickly translate into the new housing market," he says.
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Investor loans to build new homes up 38% in January: ABS

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Australian house prices are high but they reflect the high cost of living, says Gary Thomas, president of the US National Realtors Association, who is currently visiting Australia.
Thomas says there is no perception among his constituency that Australian housing is in a bubble that may burst – a claim made by the likes of <a href="https://www.propertyobserver.com.au/news/us-economist-predicts-australian-housing-crash/2011081551170" target="_blank">US economist Harry Dent and others.</a>
The National Realtors Association is the largest trade assocation in the US, representing around one million US real estate agents.
“Australian property prices certainly are high relative to what we pay in the US, but it all depends on your average income,” Thomas tells Property Observer.
Thomas has more than 35 years’ experience in American real estate and has occupied numerous industry roles.
He operates real estate business Evergreen Realty, which has seven offices throughout Orange County, Southern California with a head office in Irvine and more than 7,000 estate agents on its books.
The most recent figures from US data provider CoreLogic showed that US home prices, including distressed sales, increased on a year-over-year basis by 9.7% in January 2013 compared to January 2012
Morgan says the US market is definitely improving with prices starting to inch up including in his home state of California and in Florida and Arizona, to name just a few.
“It’s kind of ironic that the recovery is occurring in the states the hardest hit,” he says.
In Southern California he says there is only 30 days’ worth of real estate inventory available to purchase at current sales rates – very low by historical standards.
Despite the lack of stock, house prices are not accelerating as they did in the boom years prior to the GFC, though they are rising at a more sustainable pace.
Among the reasons for this is that obtaining financing is still very hard with much stricter lending practices now in place.
“It’s like an inquisition” is how he describes lender inquiries into whether a borrower should receive mortgage approval.
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Australian housing not perceived as being in a bubble: US real estate industry boss

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

Joel Robinson

The Eveleigh brings house-like apartments to Broadbeach

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

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

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

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

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

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

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