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Regional towns servicing the northern Queensland mining region are likely to benefit from the announcement that freight company Aurizon will invest in the development of rail and port infrastructure servicing the coal-rich Galilee Basin.
Aurizon, formerly state-owned QR National, has agreed to acquire a majority (51%) interest in Hancock Coal Infrastructure Pty Ltd (HCI), which owns GVK Hancock's rail and port projects.
The investment will facilitate the building of multi-billion-dollar port and rail infrastructure linking the remote Galilee Basin to the Abbot Point coal terminal, 495 kilometres to the north, allowing coal to exported offshore.
The Galilee Basin is 200 kilometres west of the existing coalfields in the Bowen Basin and has been labelled "Australia's next coal precinct".
The development of a number of Gina Rinehart’s Hancock Prospecting joint venture coal mining projects with India-based GVK require the building of the rail line and port in order to proceed.
The Galilee Basin covers around 250,000 square kilometres and contains vast quantities of thermal coal, which is used to generate electricity.
Writing in The Conversation last year, Sonya Duus from the Australian National University, said while the average-sized coal mine in Queensland currently produces around 5 million tonnes (Mt) of coal every year, one of the GVK Hancock proposed mines - The Alpha Coal project would produce 30 Mt per annum, and would still not be the largest in the new basin.
GVK Hancock is hoping to export up to 60 million tonnes of coal a year.
The development of the $6 billion rail link has the potential to create thousands of jobs in the construction phase of the railway and port as well as mining jobs when the mines are operational.
This could increase demand for accommodation in regional towns to house fly-in-fly-out workers.
Property values in remote towns situated close to the proposed Galilee Basin mines including Alpha, Jericho, Hughenden, Charleville, Winton and Middleton could all rise once the mines are operational.
In a recent webinar, <a href="https://www.hotspotting.com.au" target="_blank">hotspotting.com.au</a>'s Terry Ryder picked Mackay as a potential “next Gladstone”  due to its proximity to the Bowen Basin and export port facilities.
"This is one of the most significant deals in Queensland’s coal history. The development of the rail and port infrastructure will unlock the Galilee Basin and see the development of Alpha, Kevin’s Corner and Alpha West, creating one of the largest integrated coal development projects globally," said Dr G V Krishna Reddy, chairman of GVK.
"The proposed relationship with Aurizon would allow us to jointly develop the most cost and time efficient rail and port solution for the Galilee Basin.
"At full capacity, the proposed arrangement is intended to provide sufficient equity and debt funding for the projects to reach financial close. The parties jointly will leverage the work already completed by GVK, the significant potential for ECA financing and Aurizon’s experience and capacity to undertake major projects and capability in heavy haul rail and infrastructure."
GVK Hancock received the primary state and commonwealth environmental approvals for its greenfield rail project in May and August 2012 respectively. GVK Hancock’s port project received Commonwealth environmental approval in October 2012.
Collectively the proposed development of the rail and port infrastructure – which is expected to deliver export capacity of 60 mtpa – could represent an investment for Queensland in the order of $6 billion.
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North Queensland mining towns boosted by investment in Galilee Basin railway line

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<img src="/images/stories/2012/10/kflogo.jpg">
Knight Frank's Sydney investment sales specialist, John Bowie Wilson says investors are testing the water in the Sydney commercial market for the right opportunity.
<img style="margin: 5px; float: left;" alt="johnbowiewilson" height="225" width="228" src="/images/stories/2013/03/johnbowiewilson.png">Agent: John Bowie Wilson

Position: NSW Director - City Sales

Company: Knight Frank

Office location: Sydney

How long have you been in the industry?

14 years but the last five feel like ten.

What’s happening in the area you specialise in?

There are more buyers in the Sydney commercial market than there have been in a while. As the cost of debt has come down and yields have blown out, potential investors are feeling encouraged to seek out the right opportunities. However, the market is not cheap and while the outlook on the global economy remains uncertain there is still limited urgency to invest money.

Describe the most interesting property you have sold

Many years ago I was lucky enough to sell the smallest freehold building in Clarence Street in the Sydney CBD. The site area was 40 sqm and the total building area was around 80 sqm. From memory I sold it for $900,000. The real highlight of the building was the internal staircase, which, for space saving purposes, had to be pulled down from the ceiling to ascend to the upper level.

What are the ingredients to being successful in your job?

Being persistent, proactive, positive and personable plus the ability to work smart.

What aspects of your role do you enjoy the most?

Finding a solution for a client in a difficult market that results in a successful outcome for both parties.

Where would you invest a spare $750,000?

In my home. Owning your own principal residence outright is the best and most tax effective investment you can ever make.

Which football team do you support?

I love all football but am not a diehard fan of any specific code, however, I do support the Sydney Swans and the NSW Waratahs.

What’s your favourite app or techno gadget?

Not sure it is a techno gadget but my Nespresso coffee machine. It is the only thing that’s keeping me awake during the day after a night up with my new born twins – liquid gold.
How do you use social media?

To stay in touch with my business network and overseas friends and family.

Connect with John Wilson Bowie: <a target="_blank" href="https://www.linkedin.com/in/johnbowiewilson">On LinkedIn</a>

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In profile: Knight Frank’s Sydney city commercial specialist John Bowie Wilson

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The belief that high times may be returning to the Melbourne property market may have been taken a little too literally by two Epping estate agents who have been charged with a number of drug-related offences after rental properties they manage were allegedly used to grow hydroponic marijuana.
Following raids last week, two directors and the joint owners of Barry Plant Epping have been charged by Victoria Police after the discovery of hydroponic setups at residential properties in Epping, Wollert, South Morang and Mill Park.
Twenty-five properties managed by Barry Plant Epping were allegedly used for the marijuana-growing operations. So far Whittlesea Crime Investigation Unit detectives have executed 16 warrants and located about 3,000 cannabis plants as part of an ongoing investigation.
According to the Herald Sun, the alleged elaborate drug labs were set up at a cost of more than $660,000.
Five western suburbs men allegedly rented the homes since November and cultivated the crops.
Barry Plant chief executive Mike McCarthy said he was ''shocked and dismayed'' at alleged activities of the two directors adding that the real estate group operated independently of the Epping franchise.
The two directors charged are not employed by Barry Plant, but could lose their franchising licence with the group if the alleged offences are proven.
McCarthy said Barry Plant had taken immediate steps to contact the property owners whose properties had been turned into drug labs.
He added that the two men have professed their innocence and are co-operating with Barry Plant head office.
“Nothing like this has occurred in our history. These are serious charges and everyone in our group, from head office right through our 82 franchises, is shocked and dismayed," McCarthy said in a statement on Saturday.
Victorian police said a 52-year-old Greenvale man and a 52-year-old Lalor man have been charged with aid/abett cultivate and traffic a large commercial quantity of drugs. A 52-year-old Epping man has been charged with a number of counts of cultivate a commercial quantity of drugs. Five western suburbs men have been charged with separate counts of cultivate and traffic commercial quantity of drugs. A 36-year-old Thomastown man has been released pending further enquiries.
Last December, Property Observer reported on trouble for an Adelaide tenant after <a target="_blank" href="https://www.propertyobserver.com.au/south-australia/pot-plants-in-real-estate-ads-bring-adelaide-police-to-the-open-for-inspection/2012121358447">photos allegedly showing cannabis growing in two pot plants</a> in the backyard of a Henley Beach South house were inadvertently included in a real estate ad.
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Barry Plant Epping estate agents charged over rental property marijuana crops

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In the wake of natural disasters, nearly one in four Queenslanders are now fixing their home loan rate, while nationally demand for cheaper fixed-rate home loans is also rising, according to Mortgage Choice.
During February, fixed-rate home loans were most popular in Queensland, where demand reached 23.05% of all new Mortgage Choice loan approvals.
“Following the spate of natural disasters the sunshine state has endured over the past few years, in comparison to other states it isn’t surprising to see more borrowers in Queensland choose the peace of mind offered by fixed-rate loans,” says Mortgage Choice spokesperson Belinda Williamson.
Nationally, the proportion of borrowers fixing their home loan rate increased from 16.3% in January to 18.4% in February as all the major banks cut their fixed-rate home loan offerings to include a two-year fixed rate home loan <a target="_blank" href="https://www.propertyobserver.com.au/news/monday-feb-25-feature-the-fix-is-on-for-bank-mortgage-rates-should-you-take-the-deal/2013022159504">"with a four in front of it"</a> - at 4.99%.
At the other end of the spectrum, Victorians were the least likely to take out a fixed-rate loan in February, with only 11.08% of the state’s loan approvals for fixed rates.
“This may suggest that Victorians are the least conservative state and are tipping further variable rate cuts to come,” says Williamson.
Fixed-rate loans are also popular in NSW and the ACT, accounting for nearly one in five loans approved by Mortgage Choice mortgage brokers in February.
Not surprisingly, ongoing discounted rate loans – where the variable rate is discounted for the life of the loan, usually in exchange for an annual fee – were the most popular products over February, accounting for 42% of all loan approvals nationally followed by basic variable and standard variable loans, which both accounted for 17% of loan approvals.
According to mortgage comparison website RateCity.com.au’s database of more than 100 lenders, the average three-year fixed rate is now 5.47% – the lowest level on record. The average standard variable rate is currently 0.42 percentage points higher at 5.89 percent.
Mortgage comparison website Mozo.com.au says fixed rate home loans are at an all-time low with an average fixed rate of 4.99% - 60 basis points lower than the average 5.6% variable rate, according to its database of home loans.
A spokesperson for Mozo says there would need to be another three to four cash rate cuts from the RBA for variable rates to fall as low as fixed rate.
Mozo visitor interest in fixed rates has tripled since December.
These are the lowest advertised variable and fixed mortgage rates based on listings on mortgage comparison websites <a href="https://www.ratecity.com.au/" target="_blank">ratecity.com.au</a>, <a href="https://mozo.com.au/" target="_blank">Mozo.com.au</a>,  <a href="https://www.infochoice.com.au/" target="_blank">infochoice.com.au</a> and <a href="https://www.homeloanfinder.com.au/">homeloanfinder.com.au</a> as of March 11:
Where the headline rate is the same, the lender with the lowest comparison rate gets preference.
Lowest variable rate offerings:
<table border="1" cellspacing="0" cellpadding="0" width="470"><tbody>
<tr>
<td width="134" valign="top">
Provider
</td>
<td width="124" valign="top">
Loan name
</td>
<td width="97" valign="top">
Rate
</td>
<td width="116" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="134" valign="top">
State Custodians
</td>
<td width="124" valign="top">
State Custodians Peak Performance Offset (Refinance Only)
</td>
<td width="97" valign="top">
4.99%
</td>
<td width="116" valign="top">
5.38%
</td>
</tr>
<tr>
<td width="134" valign="top">
Easy Street
</td>
<td width="124" valign="top">
Honeymoon Home Loan Special
</td>
<td width="97" valign="top">
4.99%
</td>
<td width="116" valign="top">
5.70%
</td>
</tr>
<tr>
<td width="134" valign="top">
Loans.com.au
</td>
<td width="124" valign="top">
Blackboard Special
</td>
<td width="97" valign="top">
5.09%
</td>
<td width="116" valign="top">
5.11%
</td>
</tr>
</tbody></table>
 Lowest one-year fixed-rate offerings
<table border="1" cellspacing="0" cellpadding="0" width="470"><tbody>
<tr>
<td width="137" valign="top">
Provider
</td>
<td width="123" valign="top">
Loan name
</td>
<td width="95" valign="top">
Rate
</td>
<td width="114" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="137" valign="top">
Quick Direct
</td>
<td width="123" valign="top">
One year fixed
</td>
<td width="95" valign="top">
4.79%
</td>
<td width="114" valign="top">
5.46%
</td>
</tr>
<tr>
<td width="137" valign="top">
UBank
</td>
<td width="123" valign="top">
UHomeLoan for refinance
</td>
<td width="95" valign="top">
4.83%
</td>
<td width="114" valign="top">
5.03%
</td>
</tr>
<tr>
<td width="137" valign="top">
Loans.com.au
</td>
<td width="123" valign="top">
Dream Loan Express
</td>
<td width="95" valign="top">
4.89%
</td>
<td width="114" valign="top">
5.28%
</td>
</tr>
</tbody></table>
Lowest three-year fixed-rate offerings
<table border="1" cellspacing="0" cellpadding="0" width="470"><tbody>
<tr>
<td width="131" valign="top">
Provider
</td>
<td width="131" valign="top">
Loan name
</td>
<td width="96" valign="top">
Rate
</td>
<td width="111" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="131" valign="top">
ME Bank
</td>
<td width="131" valign="top">
Member Package SMHL Standard Home Loan
</td>
<td width="96" valign="top">
4.99%
</td>
<td width="111" valign="top">
5.49%
</td>
</tr>
<tr>
<td width="131" valign="top">
Teachers Mutual Bank
</td>
<td width="131" valign="top">
Teachers Fixed Option Loan
</td>
<td width="96" valign="top">
4.99%
</td>
<td width="111" valign="top">
5.90%
</td>
</tr>
<tr>
<td width="131" valign="top">
eMoney
</td>
<td width="131" valign="top">
Pro pack 75
</td>
<td width="96" valign="top">
5.00%
</td>
<td width="111" valign="top">
5.51%
</td>
</tr>
</tbody></table>
*A comparison rate includes both the interest rate and the fees and charges relating to a loan, combined into a single percentage figure.
For information on refinancing, watch our free webinar <a href="/news">The Do's and Don’ts of Refinancing Your Existing Home Loan ... and How to Avoid Unnecessary Hurdles</a>
 
 
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Anxious Queenslanders fix their home loans, while Victorians don't: guide to cheapest variable and fixed rates

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The number of Sydney houses and units listed for sale online has fallen by 13.3% over the past year leading an overall 1.1% annual decline in capital city listings, according to new February figures from SQM Research.
There were 25,857 properties listed for sale in Sydney in February compared with 29,810 a year ago, while nationally listings have fallen from 345,543 to 341,662.
However, Melbourne listings have risen by 5.3% over the same period to 43,621 – the biggest annual rise of all capital cities - and there are now nearly 18,000 more properties listed for sale in Melbourne than in Sydney.
This suggests that talk of a recovery in the Melbourne housing market may be premature given the level of stock that still needs to be absorbed while the Sydney market appears to be strengthening.
Listings were up 1.9% over February but SQM says this was to be expected and “as the seasonal pause in the real estate world comes to a complete end and the property market begins to pick up again”.
“Most capital cities only experienced modest increases, with Canberra and Sydney being the only exceptions, climbing by 8.5% and 10.2% respectively during February,” says SQM Research managing director Louis Christopher.
“A year-on-year comparison however, reveals that stock listings have decreased since this time in 2012, falling by 1.1% on a national level and it is the opinion of SQM Research that this result is far more telling of the current direction of the property market than the month to month comparison due to seasonality.”
Year-on-year figures indicate that all capital cities apart from Melbourne and Canberra (+ 2.1%) recorded declines in the number of properties listed for sale.
Apart from Sydney, strong yearly declines in listings were also recorded in Darwin (-9.2%) with more modest declines recorded in Perth (-3.8%) and Adelaide (-3.2%) and Brisbane (-2%).
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Sydney property listings down 13.3% over past year indicating improving housing market: SQM Research

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ANZ has left its standard variable rate unchanged following its March interest rate review - despite new funding costs easing.
ANZ’s standard variable mortgage rate remains at 6.40% per annum (6.50%pa comparison rate).
This follows the RBA leaving the cash rate unchanged at 3% on Tuesday.
“Each month we assess a wide range of factors affecting the ANZ Group and our retail customers as part of the interest rate review. This month those factors included the funding environment and our competitive situation," said ANZ CEO Australia Philip Chronican.
We have seen some easing of new funding costs from both wholesale markets and domestic deposits over recent months which has taken some of the pressure off what had been a relentless rise in funding costs since late 2007.
“Combined with other factors however, the range of ongoing pressures saw the ANZ Group’s net interest margin fall slightly in the first quarter of our 2013 financial year.
“At the same time ANZ’s mortgage lending remains competitively priced for our customers and well below one of our larger competitors.”
Variable interest rates for small business lending also remain unchanged.
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ANZ leaves standard variable rate unchanged at 6.4% following independent review

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Four out of five consumers (80%) say now is a good time to buy a home, according to a new consumer sentiment survey carried out by RP Data and online survey firm Nine Rewards in the first week of March.
This is up slightly from the 76% who said it was a good time to buy property when surveyed in October last year.
Rising confidence about stepping onto the property ladder comes as more consumers expect property prices to rise over the next six and 12 months.
More than one third (38%) of those surveyed expect house prices to rise over the coming six months, with 51% predicting prices to rise over the next 12 months.
By comparison, when the survey was conducted in October 2012, 33% of respondents expected home prices to rise over six months, while 42% expected to see a rise over 12 months.
Only 8% of respondents expect prices to fall over the next six months and the next 12 months.
About 54% are expecting prices to remain stable over the next six months and 41% expect no change in house prices over the next 12 months.
RP Data national research director Tim Lawless says the latest survey data shows a substantial upward shift in consumer expectations for housing market conditions.
"The results revealed distinctive differences from region to region where, as an example, 60% of respondents in Perth expected prices to rise over the next six months, and a larger 68% expected higher prices over the coming twelve months," he said
"In contrast, survey participants in Tasmania delivered a much more sedate reaction with only 30% of local respondents expecting prices to rise over the next twelve months."
"As consumer confidence in housing market conditions rises, we are likely to see a larger number of dwelling sales as the year progresses. Transaction data from last year was already showing an improvement in home sales, with 7.6% more homes transacted over the second half of 2012 compared with the first half. If the survey responses are anything to go by, we should see a continuation of this trend through 2013."
The survey also examined what the most important factors were for consumers when choosing a property.
More than half the respondents indicated that their personal financial situation was the most important factor, followed by prospects for capital growth in the housing market (20%), then interest rates (12%).
Only 9.4% indicated job security was their most important factor, while less than 4% indicated government incentives were the most important factor in their decision.
The results of the survey were compiled based on the responses from 1,040 Australians last week.
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Housing market sentiment rising with 80% of consumers saying now is a good time to buy: RP Data

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The Perth CBD office market will continue to benefit from demand for space driven by companies tied to resources projects with the prospect that the vacancy rate could tighten to below 4% by the end of the year, according to Colliers International.
This compares with a national vacancy rate of 8.3%, expected to rise to 8.8% by January 2014.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2013/03/colliersmarch8.gif"><img src="/images/stories/2013/03/colliersmarch8thumb.gif"></a>
The Perth market remains highly attractive to investors with premium net rents currently at $835 per square metre and A-grade gross office rents currently at $736 per square metre with yields at a healthy 8.5%.
A-Grade rents have risen 16% since December 2009 and are expected to increase slightly over the next six months.
Perth A-Grade net face rents exceed that of the Sydney core CBD, and remain well in advance of other Australian capitals.
“In dollar terms, Perth CBD is looking increasingly unaffordable with rents getting back up to levels not seen since the GFC,” says Nerida Conisbee, national director of research at Colliers International and author of the latest CBD Office Research &amp; Forecast Report
“All things being equal, Colliers International expects CBD vacancy rates over the next six months to tighten to a mid-year estimate of slightly under 5% with the likelihood of further tightening to around 4.0% by the end of the year.
“However, if the mining sector rebounds as expected, this, together with the expected take-up by the oil and gas sector, could see the vacancy rate contract even further, though this depends on how quickly confidence and investment in the WA resource sector rebounds in 2013.
“The ongoing issue of tight supply, high rents and low vacancies adds further impetus to the need for near-city suburban office development,” she says.
The most recent Property Council of Australia’s (PCA) Office Market Report for the second half of 2012 found that the office vacancy rate for the Perth CBD increased from 4.2% to 5.7% due to decreased demand for commercial office accommodation but also due to a record increase in new office space being completed.
There was 180,000 square metres of new office space added to the Perth CBD over 2012, but only 12,249 square metres of space is forecast to be over 2013.
The tightest Perth market is the premium grade market, which had a vacancy rate of 4.5% as of January 2013, according to the PCA.
From 2014 onwards the new office pipeline will gradually increase again.
Demand for office space will also be impacted by a growing urban population - the population of the greater Perth urban area is expected to grow by more than 35% by 2026, with the residential population of Perth city expected to reach nearly 50,000 over the same period.
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Perth CBD office vacancy rate could tighten to below 4% by end of 2013: Colliers International

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The auction of a much-hyped vacant Lygon Street shopfront and upstairs residence failed to live up to expectation with the property passed in today.
There were just two bidders at the on-site auction and just one genuine bid of $1.65 million.
The 70 Lygon Street, Brunswick East, property was passed in on a vendor bid of $1.8 million.
Colliers International agents Tom Noonan and Jeremy Gruzewski had expected the property to sell for in excess of $2 million in the tightly held retail and cafe strip.
They are currently working through offers with Noonan expecting to announce a sale early next week.
<img src="/images/stories/2013/03/lygonmarch11one.jpg" width="470" height="314" alt="lygonmarch11one">
Expectations were high that the property would attract a premium with 100 enquiries received prior to auction and around 15 contracts issued.
In October last year, the historic Lygon Street premises of <a target="_blank" href="https://www.propertyobserver.com.au/retail/lygon-street-premises-of-donatis-fine-meats-slices-records-with-emotion-driven-%24289-million-auction-sale/2012103057521">Donati’s Fine Meats</a> sold for $2.89 million at auction, with a private investor paying nearly $1.4 million above pre-auction expectations – a yield of just 2.3% amid “emotionally-driven” bidding.
Gruzewski and Noonan also marketed the Lygon Street butchery last year.
The 70 Lygon Street property stands at on the corner of Lygon and St Phillip Streets. It comprises 226 square metres of space, of which 75 square metres is ground floor retail on a site measuring 230 square metres.
The second floor has a three-bedroom residence.
<img src="/images/stories/2013/03/lygonmarch11two.jpg" width="470" height="314" alt="lygonmarch11two">
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Lygon Street vacant corner shop passed in at auction 

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Chinese and Malaysian investor appetite for Australian residential development sites and off-the-plan apartments is set to rise over 2013 as both countries undergo political change and a degree of uncertainty.
China has already transitioned to new leadership, with  Xi Jinping replacing Hu Jintao as general secretary of the Communist Party in November, along with six new appointments to the Politburo Standing Committee, the inner sanctum of the Chinese Communist Party, the world’s most powerful political organisation.
While the transition has been smooth, high net worth Chinese investors will be concerned, perhaps even alarmed, at recent reports that Xi Jinping is arguing for a return to "Leninist" principles.
"Why did the Soviet Union disintegrate? Why did the Soviet Communist Party collapse? An important reason was that their ideals and convictions wavered," Jinping reportedly told his party behind closed doors and reported widely outside of China, including by the <a target="_blank" href="https://www.nytimes.com/2013/02/15/world/asia/vowing-reform-chinas-leader-xi-jinping-airs-other-message-in-private?pagewanted=all&amp;_r=0">New York Times</a>.
Such comments - not reported in the state-controlled Chinese press - may encourage Chinese investors to increase their already substantial investment in Australian residential real estate.
Jittery Malaysian investors may also be considering upping their investments in Australia ahead of a national election which must take place before the end of June, with political tensions rising following the recent deportation of Australian independent senator Nick Xenophon, over his apparent support for opposition leader Anwar Ibrahim, which has raised questions about Malaysia's so-called democractic freedoms.
They will also be concerned at the loss of financial market confidence following the benchmark FTSE Bursa Malaysia KLCI Index falling more than 4% since January over concerns that the ruling Barisan Nasional may win fewer seats in parliament.
Melbourne in particular stands out, with Chinese developers investing almost $500 million there in the past two years.
Wallace Wang, a property developer and vice-president of the SRE Group headquartered in Hong Kong and Shanghai, told the ABC in September last year that investing in property in Australia was attractive for its lifestyle, a good return on investment and – importantly – because its regulatory system was transparent.
In a further sign of growing Chinese interest in Australian real estate, the Australia China Real Estate Association set up in Sydney last year to help Chinese investors get a better understanding of the Australian culture and regulatory differences.
 
 
<hr class="system-pagebreak">
Malaysian investors are also active in Melbourne.
“Malaysian investors want to put their money in a strong offshore market like Australia while they still can,” a commercial agent told Property Observer.
In recent months two prominent sites in the Melbourne CBD have sold to Malaysian investors.
In late 2012 <a href="/news">Malaysian developer Mammoth Empire</a> secured a prime development opportunity in the northern fringe of CBD after acquiring the low-rise 398-406 Elizabeth Street site for $15.1 million.
Mammoth Empire is currently building a 55-storey residential tower – MY80 – on the adjoining corner of A’Beckett and Elizabeth streets at a cost of $250 million.
In January a Malaysian investor paid $11 million for the former flagship Fletcher Jones showroom at 1 Queen Street at the north-west corner of Flinders Street, above expectations of around $10 million.
The investor is expected to lease the existing asset and resell it at a future time if commercial prices rise and possibly after it has secured a redevelopment permit, according to a report in The Age.
The former Fletcher Jones premises was marketed by Clinton Baxter of Savills and Matthew Stagg of Colliers International.
The property offers development potential by virtue of its prime corner position and spectacular views along the Yarra River and across to Southbank.
Baxter told Property Observer prior to the sale that the views were “extraordinary – up the Yarra to the MCG, and across the river to Southbank and Crown”.
“The views can never be built out.  So most likely, you will see a brand-new apartment, office or hotel building on the site in a few years’ time,” he said.
Other noteworthy commercial sales to Malaysian investors include the listed Starhill Real Estate Investment Trust, managed by Malaysian conglomerate YTL Corp, which in June paid $415 million for a portfolio of three five-star Marriott hotels – the Sydney Harbour Marriott, the Brisbane Marriott and the Melbourne Marriott.
At the same time as Malaysian investors look to snap up property in Australia, Chinese developers are also looking to escape local property rules and invest offshore in places like Sydney and New York.
Shanghai Greenland Group is spending 8 billion yuan ($1.2 billion) on projects in Australia, according to the Australian Financial Review.
The Chinese government has introduced tougher home purchase rules in around 40 cities to keep house prices under control and also introduced a property tax in Shanghai and Chongqin.
There are also plans for a nationwide real estate tax.
According to a report in Malaysian newspaper The Star, quoting fund managers and analysts, a change in government could cause the Malaysian market to go into limbo for up to six months as the new government determines its investment policies.
The main concern among fund managers and analysts is whether the policies of the opposition – should it win the next general election – will be market friendly.
Government is held by the Barisan Nasional (BN), which won 140 seats in the 2008 election, its worst result since the 1969 elections and down from the 198 it won in 2004.
The opposition Pakatan Rakyat coalition won 82 seats, denying the BN a two-thirds majority required to pass amendments to the Federal Constitution.
There have been three prime ministers and leaders of the BN since the 2008 election victory.
The current prime minister (since 2009) is Datuk Seri Najib Tun Razak.
The ruling BN coalition’s tenure expires on April 28, 2013, and the prime minister must call for the general election within 60 days of this date.
For more on the allure of Australian property to Asian buyers, <a target="_blank" href="http://propertyobserver.com.au/ebooks/free-ebook-australias-allure-for-asian-residential-property-investment">download our free eBook. </a>The eBook is also available for<a target="_blank" href="http://propertyobserver.com.au/ebooks/australias-allure-for-asian-residential-property-investment-free-ebook"> free download in Chinese.</a>
 
 
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Asian governments in transition impact property investment appetite

Perth’s new apartment market recorded its strongest quarter of sales since Q4 2021, with 412 apartments sold in Q1 2026 and a record quarterly sold value of $537 million, according to Urbis’ latest Apartment Essentials results.

Urbis said the March quarter result reflects strong, highly product‑specific demand across both ends of the market, from more attainable projects delivering at scale, through to premium stock being absorbed by equity‑rich downsizers.&nbsp;

David Cresp, Partner at Urbis, said the key story in Perth is not demand, it is the market’s ability to convert demand into delivered housing.&nbsp;

“This is the strongest sales quarter since Q4 2021, and it reinforces that demand in Perth is real and it’s local,” David Cresp said. “But the task now is delivery, turning that demand into projects that can actually be built and completed.”&nbsp;

[smartcode_project:default project_id=110291 project_image_fid=302785]

<h2>Affordable product leads, premium demand remains resilient</h2>

Sales in Q1 were led by more affordable projects, with The Boulevard (SKS Group) recording 115 sales in the quarter, the presentation noting this is only the second time a single project has surpassed 100 quarterly sales. The project was able to offer more affordable housing product right next to a train station.&nbsp;

Palmyra West (Finbar) also delivered strong results with 28 sales in Q1, following 84 sales in Q4, with an average price of under $800,000, underscoring depth of demand for well‑located, attainable new stock.&nbsp;

At the premium end, Urbis said downsizer demand is continuing, with the results highlighting Romeo (Applecross, Finbar) recording 75 sales and reaching almost 50% sold in one quarter.

Jual (Shenton Park, Celsius Property) also posted a strong quarter with 28 sales, reaching 39% sold in one quarter.

Urbis noted that Perth apartment demand is not speculative, not investor‑led, and not uniform, describing it as localised, often equity‑driven and highly product‑specific, a pattern reflected in the polarisation between strong “attainable” performers and premium downsizer product.&nbsp;

[smartcode_project:default project_id=148957 project_image_fid=364102]

<h2>Prices underpinned by costs, and the delivery risk is growing</h2>

Urbis said pricing pressure is cost not demand‑driven: construction costs and delivery risk are now a central constraint, with the results noting build costs remain elevated and volatile, and that energy, fuel and labour uncertainty weigh on feasibility.

David Cresp said a growing challenge for private Build‑to‑Sell developers is simply securing a builder in the current environment.

“Developers are really feeling the pressure from a building market that was operating at capacity and securing a builder is challenging,” David Cresp said, adding that even where a builder can be secured, “trying to get to the price that makes the development financially viable is incredibly challenging in the current market.”&nbsp;

Urbis’ broader WA commentary also notes that industry remains at or above capacity with lot and housing creation, and that many builders are limiting new sales to manage stretched workforces and fixed‑price contract pressures, conditions that flow directly into apartment feasibility and delivery timing.

[smartcode_project:default project_id=108869 project_image_fid=317905]

<h2>Supply: improving later, but still constrained, and Perth lags eastern benchmarks</h2>

While near‑term supply remains constrained, Urbis’ forecast shows completions lifting “Supply is forecast to be back above 1,500 apartments per annum for the first time since 2019”, with 1,775 completions forecast for 2026, and volumes remaining above that level over the following years.&nbsp;

Looking further ahead, completions are forecast to reach 2,500 in 2028, with the report noting 32% of that total is social/affordable, reflecting the role of government‑supported delivery in rebuilding the pipeline.&nbsp;

However, Urbis said Perth remains behind comparable markets on pipeline scale. In a national comparison of projects under construction, the report shows under construction Perth Build‑to‑Sell (BTS) at 3,446 apartments versus the Gold Coast at 7,922. Mr Cresp said “The challenge for Perth is how to we grow the delivery pipeline”.

Urbis’ conclusion is that Perth’s market is increasingly defined by product discipline and delivery certainty, with the research identifying “delivery certainty is key” and calling out builder risk and procurement models as core success factors, alongside “timing and staging”.&nbsp;

Joel Robinson

Perth apartment sales hit strongest pace since late 2021 as builder capacity tightens

<a href="https://www.apartments.com.au/developers/sammut-developments">Sammut Group</a> has secured development approval for its latest Brisbane apartment project, marking the Sydney developer’s next step in expanding its Queensland pipeline following the success of its debut Gold Coast development, Coast.

The approved project at <a href="https://www.apartments.com.au/new-apartments/44-glen-road-toowong-qld-4066">44 Glen Road, </a><a href="https://www.apartments.com.au/developments/toowong-qld-4066">Toowong</a> will deliver a 15-storey riverfront apartment building with 42 residences, significantly increasing the scale of the site’s previous approval for a smaller luxury scheme. Designed by Bureau^proberts, the development will comprise a mix of predominantly four-bedroom and two-bedroom apartments positioned to maximise Brisbane River and city views.

Sammut Director Julian Sammut said the group had been actively searching Brisbane for several years before identifying Toowong as the right fit.

“Brisbane was the right step for Sammut,” Sammut said.

“With the success of Coast we thought we should definitely look to do more in Queensland alone. We then pushed up to look at Brisbane. We've been looking for I'd say two to three years actually and it was hard to find the right location.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-23%20at%203.27.14%E2%80%AFPM.png?VersionId=dYAVIL7qdcGA8ojvkslSrLjczXFejSSx" />

Sammut said suburbs including New Farm and Teneriffe were considered before the group ultimately focused on Toowong due to its strong downsizer demographic and limited supply of developable riverfront land.

The site was acquired off-market after what Sammut described as a lengthy negotiation and planning process, with the developer pursuing an uplift to the original approval.

“We are DA approved now which is very exciting,” Sammut said.

“We've had our change approval come through and we've obviously doubled the height, 15 storeys plus rooftop. We've got 42 amazing apartments that are going to be coming to market soon.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-23%20at%203.27.26%E2%80%AFPM.png?VersionId=ohkRkY0dIZlqdfME2EZePsCQavRiBadE" />

Bureau^proberts said the design responds to Toowong’s evolving urban character, balancing contemporary apartment living with the area’s established residential identity.

“A place where traditional Queensland living has taken place for centuries; Toowong is seeing a shift of contemporary influence, commercial and retail hubs mixed with well-considered residential offerings – all the while maintaining its character and charm,” the architect noted in planning documents submitted to Brisbane City Council.

The architecture practice said the project’s form was shaped by its riverfront setting, flood considerations, neighbouring building scales, and view corridors.

“They said the mix of four and two-bedroom apartments capture the ‘fundamental qualities of Queenslander living,’ translated into the context of a contemporary subtropical building.”

The development sits just off Coronation Drive within walking distance of Toowong’s retail precinct and the upgraded Regatta ferry terminal, while also benefiting from proximity to the incoming green bridge connection to West End. Sammut said the accessibility and amenity offering were central to the site’s appeal.

The approval adds to growing residential activity along the Toowong riverfront, joining nearby projects including Consolidated Properties’ Monarch Residences and Spyre Group’s ARC Residences.

Sammut secures approval for debut Brisbane apartment development in Toowong

Developer Lanevick is heading back into Sydney’s apartment market after focusing more heavily on the luxury townhouse and terrace sector in recent years.

Lanevick, founded and directed by Steve Maroun, is expecting to receive approval in the coming months for a new apartment development in Gladesville, with the aim to launch it to the market later this year.

The 51-apartment project, designed by Studio Johnston, will comprise a mix of one-, two-, and three-bedroom apartments positioned toward the Hunters Hill downsizer market.

“Traditionally it’s been difficult for people in that market to downsize because there just hasn’t been the right product available,” Maroun said.

“We’re targeting buyers who might have 30 to 40 per cent of their house value sitting in the bank after downsizing.

“They still want good spacious entertaining areas, they still want quality design, but they also want flexibility and the ability to enjoy life a bit more after working hard for a long time.”

The project sits near Boronia Park and within close proximity to the Parramatta River foreshore, an area Maroun says offers more of a Hunters Hill lifestyle than a traditional apartment precinct.

“From a lifestyle perspective, it’s really more Hunters Hill than Gladesville,” Maroun said. “You’re close to the foreshore, close to parklands, and still connected back into the village precinct.”

From level four and above, apartments will capture water views&nbsp;toward Sydney Harbour. Communal amenity will include rooftop entertaining areas, wellness spaces, and a gym tailored toward owner-occupier buyers.

“We’ve really designed these apartments around that buyer coming from the Hunters Hill LGA and what they’re actually looking for in their next chapter.”

The proposed development has also been designed to respond to the changing character of the broader Gladesville town centre, where a growing number of mixed-use and residential proposals are expected to emerge over the coming years.

“Gladesville presented a rare opportunity to deliver a genuinely design-led residential project within an evolving lifestyle precinct, just moments from the growing Gladesville town centre, and we’ve approached the project with a strong focus on architecture, liveability and long-term community value,” Maroun said.

Maroun said Lanevick saw a first-mover advantage within the precinct as planning controls continue to evolve to accommodate greater housing density.

“We think there’s a real opportunity there that hasn’t really been serviced properly yet,” he said.

“There’s going to be a broader evolution of the whole Gladesville village precinct over time, particularly with more activation and mixed-use outcomes.”

The Venus Street proposal will include a commercial and retail component at ground level designed to contribute to that evolving streetscape activation.

“A big part of the thinking was how do you activate that area properly and create more vibrancy and amenity, which is what Hunters Hill has been looking for,” Maroun said.

Lanevick’s focus since 2020 has largely been on smaller-scale luxury townhouse and terrace developments. The developer recently completed Royale Randwick, also designed by Studio Johnston, where prices reached $3.65 million. The project was featured in the UDIA NSW 2026 Professional Development Prospectus and was also named a finalist for Development of the Year.

&nbsp;

Lanevick to cater for Hunters Hill downsizers with new Gladesville apartment development

Property developer One Living, backed by former Macquarie banker turned investment manager Chris Green’s investment firm, has unveiled plans to bring more institutional capital into housing to help address the national supply crisis.

The New York-based investor has focused his firm, GreenPoint Partners, on addressing the supply shortage hitting middle market housing in Australia.

It is backing the new One Living business to develop more than 1000 units along the eastern seaboard. The new firm is starting with a development on Mona Vale Road, on the border of Mona Vale and Pymble, in Sydney’s Northern Beaches, with around 140 apartments planned. They are eyeing off more sites across the city.

With cost pressures rising in the industry, One Living’s model is to be a vertically integrated developer-builder, so it can respond directly to the housing gap by removing the cost inefficiencies embedded in traditional residential delivery.

“We are building a platform designed to operate at scale and starting in a market where there’s a clear need for quality, attainable housing,” One Living joint managing director Joseph Scuderi said.

“It’s that missing middle – it’s that attainable end of housing… that’s what most Australians invest into and what Australians can actually afford.”

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="798dfa93-4941-4db6-a696-31e9dc18e81c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.31.50%E2%80%AFPM.png?VersionId=mKBqi5C_DmeiXS.AtJkcR8LQIxqCqmFi" />

GreenPoint Partners brings years of experience assembling and scaling real estate operating businesses across major markets. And Green sees a big opportunity in Australia.

“For its size, sophistication and importance to the community, Australia’s living sector has remained largely under-institutionalised, which represents significant opportunity,” Green said. “GreenPoint identified that gap, assembled the right team, and is backing One Living to build a platform that is aligned to market needs.”

Green said being a builder-developer would give the company the capacity and flexibility it required to deliver reasonably-priced homes.

“We want it to be at that attainable level; not super high end luxury but at that attainable level,” he said.

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="74a5344a-4b26-4d4a-ada3-056b1220be77" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.32.15%E2%80%AFPM.png?VersionId=vY8hXHO4reBMdO8ZXMWCNtGZJofUPQ3j" />

&nbsp;

One Living will undertake a component of affordable housing in its schemes, which it will own and operate, and it could also run build-to-rent on some sites.

Green praised local policy settings.

“The NSW government is being very supportive, strategic and pragmatic in terms of how do we generate more supply of housing,” he said. “We think it’s actually positive for development and the bit that’s been lacking at that attainable level is that it’s lots of relatively small private developers, whereas we want to create an institutional platform.”

One Living is also&nbsp;looking at high-density projects and could take on more institutional funding in the future.

“The way we will be able to achieve economies of scale is through size,” Green added.

One Living enters Sydney's new apartment market with Northern Beaches site acquisition

It's been several years since there's been an opportunity to buy a brand new townhome in Melbourne's coastal suburb of Mordialloc. Even apartment developments in recent times have been few and far between in the area.

Local developer LDS Property identified the gap in new housing, securing a site on White Street, directly opposite&nbsp;Woodlands Golf Club Mordialloc. They've recently launched&nbsp;<a href="https://www.apartments.com.au/new-townhouses/wm-residences-mordialloc-102-white-street-mordialloc-vic-3195">WM Residences</a>, just 13 townhouses which they have already started building.

Projects by Buxton Director Heath Thompson, who is selling WM Residences, says the townhouses x that perfect middle ground be

"Mordialloc residents have had limited options to downsize within the suburb, often forcing them to look elsewhere despite long-standing ties to the area," Thompson says.

"With very little comparable new supply coming to market, projects like WM Residences are well placed, particularly as buyers look to capitalise on current conditions amid constrained supply."

[smartcode_project:default project_id=134646 project_image_fid=6109]

The development, designed by regarded architecture firm&nbsp;<a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a>,&nbsp;adopts a deliberately restrained architectural approach, focusing on simplicity, durability and liveability rather than overt design gestures.

The boutique scale is central to the offering. With only 13 three-bedroom residences, each home is configured to prioritise functional layouts and everyday use, supported by private terraces and secure two-car garages.

Ewert Leaf’s design response leans into a calm, neutral material palette. Interiors are defined by oak flooring, white walls and soft finishes, creating a consistent and understated backdrop. The approach avoids trend-driven detailing in favour of longevity, with an emphasis on natural light and spatial clarity.

[smartcode_project:default project_id=134646 project_image_fid=6110]

Beyond aesthetics, the homes are designed to meet contemporary performance expectations. Each residence targets a minimum 6-star energy rating, incorporating double glazing, comprehensive insulation and all-electric Bosch appliances.

The project’s location supports a walkable coastal lifestyle, sitting within close proximity to Mordialloc’s foreshore, Main Street retail strip and the train station. Local cafés and dining venues, including Suburbia Deli and Hendriks Café, are within a short walk, reinforcing the area’s established neighbourhood character.

[smartcode_project:default project_id=134646 project_image_fid=6116]

While <a href="https://www.apartments.com.au/developments/mordialloc-vic-3195">Mordialloc</a> is often defined by its beach and pier, the project taps into other areas of day to day living, offering easy access to local food, casual dining and transport, rather than positioning itself purely as a lifestyle retreat.

WM Residences reflects a continued trend across Melbourne’s coastal suburbs towards smaller-scale, design-led townhouse developments, particularly on infill sites where proximity to amenity is already established.

With construction commenced prior to its market entry, the project aligns with a growing preference among buyers for developments with visible progress and defined delivery timeframes.

[smartcode_project_cta:default project_id=134646]

Larry Schlesinger

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