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Housing affordability is set to worsen in Sydney due to a “chronic” undersupply of land for new housing, according to the annual UDIA State of the Land Report.
The report labels Sydney as the most expensive market for residential land in Australia and calls for a federal government plan to ensure Sydney and other capital cities have a rolling supply of development ready to meet the demands of growing city populations.
“Unfortunately official information has not been released since 2010/11, but most experts believe [Sydney] retains the highest median lot price in the country,” says UDIA national president Julie Katz.
Nationally, the report delivers a damning verdict on the release of residential land for new homes in Australia’s major capital cities with Perth lot production down about 11% over the past 12 months despite an improvement in demand for houses.
The report found that the median size of lots has been gradually declining as a result of the scant supply and high cost of land with Adelaide the only city to have experienced a decline in median lot price and offering lots under a median size of 400 square metres.
Research from the National Land Survey Program (NLSP) carried out for the UDIA in November last year found that the average first home buyer is paying on average 30% more for a block of land and getting 36% less land than during the height of the property boom. 
According to the UDIA, Adelaide and Brisbane both produced the least amount of lots in a decade over 2011-12.
Melbourne is the only major land market with a healthy supply of new land, but paradoxically, where demand for fringe residential land is poor with around <a href="https://www.propertyobserver.com.au/victoria/long-slow-road-to-recovery-for-melbourne-residential-land-market-with-prices-to-fall-further-charter-keck-cramer/2012121158413">30% of greenfield land being returned to developers</a> by building companies and developers forced to offer hefty rebates and other incentives to attract buyers.
In Sydney, the situation is almost the exact opposite with not enough land being released to meet future demand.
On a positive note, the UDIA reports that land supply has improved in Sydney under policy changes instigated by the O’Farrell government and along with Melbourne is the only capital city market where lot production did not fall in 2011-12.
In her address to the UDIA National Congress in Melbourne today, Katz warned of an ongoing and increasing undersupply of land right across the national housing market that is having major negative impacts on the affordability of Australian housing.
"The Report clearly illustrates the growing gap between land supply and demand throughout Australia, and clearly outlines why fixing Australia's housing problems must be a major element of all Federal political party's economic and social policies." 
"The Report paints a concerning picture for policy makers around the country and especially for new homebuyers looking to enter the market, as the increasing undersupply of land and housing is putting substantial pressure on housing affordability." 
"It is well known that Australia's housing shortage is most severe in the affordable housing category.
The UDIA is calling for the federal government to establish a national strategic plan, requiring cities to maintain a specified rolling supply of development-ready land to meet demand driven by population growth
It is also calling for “federal funding to be linked to state governments establishing comprehensive land-use plans which are aligned with detailed, costed infrastructure plans and underpinned by delivery time frames”.
Other recommendations include:
<ul>
<li>The Productivity Commission to undertake an inquiry into 'developer levies', assess the impact of these levies on broader based tax collections and investigate alternative methods of financing infrastructure </li>
<li>Through the identification of leading practice, State Governments should encourage Local Councils and relevant State Agencies to reform the processes involved in assessing applications for development </li>
<li>Conduct a thorough bi-annual audit of all Commonwealth-owned land in order to regularly update its Register of Surplus Commonwealth Land 
</li>
</ul>
“What is desperately needed is a suite of Government policies which will bring about an accelerated, but more coordinated approach to serviced land release while simultaneously departing from the inequitable first user pays approach to funding infrastructure,” says Katz. 
According to Katz, housing issues appear to have dropped off the federal government and COAG's priority list. 
“The findings in the Report demonstrate a clear need for greater focus from Government on housing supply and affordability, not a winding back of commitments," says Katz.
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Sydney fringe epicentre of chronic undersupply of residential land: UDIA

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Meriton boss Harry Triguboff has celebrated becoming an octogenarian with plans to spend $100 million on a 31,500 square metre industrial site at Mascot in Sydney with plans to build 1,000 apartments.
Triguboff has also called on the Reserve Bank to cut interest rates further to help stimulate a recover in the property market.
“There is no doubt that the catalyst for a property market recovery lies with the Reserve Bank dropping rates further,” Triguboff said in comments reported by The Australian.
He says reports of strong price growth in Sydney are confined to selected areas mainly within 10 kilometres of the Sydney CBD and driven by Asian buyer demand.
“The real test for property values will be if China’s economy starts to slow,” says Triguboff.
Triguboff is Australia’s sixth richest man with a $3.95 billion fortune according to Forbes Magazine.
He says the $100 million he will spend to acquire the Mascot site from industrial landlord, the Goodman Group, equals the most he has ever spent on a development site.
The Australian reports that a deal to the acquire the site is "imminent" following "on and off" negotiations.
He spent $100 million on a South Dowling Street site four years ago, the thoroughfare that runs past Zetland, Alexandria, Waterloo and Surry Hills, where most of Meriton’s inner Sydney apartments now stand.
It is his first site acquisition in Mascot, which has a mix of residential, commercial and industrial areas and is also where Sydney International Airport is located.
The three hectare site is adjacent to the Mascot railway station and is currently zoned for commercial mixed-use purposes and has yet to receive residential development planning approval.
In June last year Goodman said the site had potential for 800 to 1,000 apartments and 6,000 square metres of retail space.
It formed part of Goodman's special purpose investment vehicle, the Goodman Trust Australia (GTA), which launched in March 2011 via the acquisition of the ING Industrial Fund.
Triguboff says the project will take around four years to complete and will include a shopping centre, supermarket and other retail.
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Harry Triguboff celebrates 80th birthday with proposed $100 million inner Sydney site acquisition ..... and calls for more rate cuts

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Former RBA governor Bernie Fraser has called on the major banks to do the seemingly unthinkable and cut their variable mortgage rates outside of the RBA.
His comments come as the RBA is expected to leave the cash rate on hold today and most likely in April as well.
The major banks have passed on around 80% to 85% of RBA cash rate cuts dating back to November 2011 – increasing their interest margins on home loans and delivering record profits and dividends to shareholders.
Over the past year mortgage customers of the big four banks have received an average rate cut of 0.93 percentage points out of 1.25 percentage-point cut from the official cash rate by the RBA.
Fraser argues that the major banks have been looking after the interests of their shareholders over those of their mortgage customers, dismissing claims that the banks are balancing the interests of both groups.
'It's a question of the relative priority they attach to their shareholders and their customers. That's been the case right through the recent period when they haven't always passed on all the RBA moves,'' said Fraser in comments reported by Fairfax.
''They've had scope then, they have scope now, to [move downwards on interest rates] independently of the Reserve Bank. They've got room in terms of profitability; it's a question of their priorities, really.''
While the major banks have not reduced variable rates independently of the major banks, a number of smaller lenders have done so.
Last month, <a href="/news">three small lenders led by Holiday Coast Credit Union</a> cut their variable rates outside of any cash rate cut by the Reserve Bank.
Another small lender, Sydney-based non-bank <a href="/news">BMC Mortgage Corporation</a> was the first lender to cut its variable rates outside of an official RBA rate cut, dropping its rates by 10 basis points.
While the major banks have not cut variable rates they have cut fixed mortgage rates, which are funded off cheaper short-term debt, to offer one and two-year fixed rates at 4.99%.
Fraser is the chairman of Members Equity Bank, which offers a number fixed-rate home loans at 4.99%, and was governor of the Reserve between 1989 and 1996.
He has questioned the current level of competition in the home loan market amid the major banks earning ''very, very healthy'' profits.
Australian Bankers' Association chief executive Steven Munchenberg suggested the major banks may eventually cut variable rates independently if funding markets continued to improve.
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Major banks can and should cut variable rates independently of RBA: Bernie Fraser

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Malaysian developer Mammoth is seeking to expand its residential apartment projects in Melbourne following the success of its first project, MY80 Silver Skies.
The $250 million, 55-level skyscraper development at the corner of Elizabeth and A’Beckett streets is 80% sold with completion due late next year.
Mammoth has already added to its Melbourne CBD residential site inventory following its purchase, last December, of a sister site at 398 Elizabeth Street for $15.1 million, after negotiations with Mark Wizel at CBRE.
Mammoth hopes to build a sister tower on the site to complement MY80 (pictured below).
<img height="708" width="400" src="/images/stories/2013/03/my80march5one.jpg" alt="my80march5one">
“Melbourne has a vibe and an infrastructure that makes it one of the most liveable cities in the world. I have been very happy with our investments in Melbourne, and I am looking for other opportunities, particularly in the retail sector,” Mammoth owner and director Sean Ng told Property Observer during his recent visit to Melbourne.
“There are not many major cities in the world that has the infrastructure, the vibe and soul like Melbourne and still easily accessible by car or public transport.
“I want to bring to the people of Melbourne a sense of vibrancy with our projects and also international retail experiences.”
While Mammoth is not a well-known name (yet) in Australia, it is a substantial property development business in Malaysia, with its latest project being the 40-hectare development ‘Empire City’ on the outskirts of Kuala Lumpur, which will include retail, hotels, apartments and offices in a 12-tower complex with two Marriot-managed hotels and a 20-screen cinema complex.
The MY80 Melbourne site is smaller in comparison as it sits on a 1012-square-metre site.
<img height="246" width="470" src="/images/stories/2013/03/my80march5two.jpg" alt="my80march5two">
It is located just one block from RMIT University, Melbourne Central shopping centre and railway station and the Queen Victoria Markets.
The University of Melbourne is a short walk to the north and private colleges are in plentiful supply in the neighbourhood.
Designed by architectural firm Hayball, the curving, shimmering tower will offer residents a range of benefits not usually seen in this corner of the city.
The top floor is dedicated to a rooftop sky deck and terrace with spectacular views of Melbourne from the hills of the Dandenongs to city lights to the bay.
“A perfect place to sit back, relax with a wine from the cellar and catch up with friends, or for time out reading your favourite book – Manhattan style at its best,” says Andrew Fortey, co-founder and managing director of PDS Group, which represents Mammoth Empire Holdings and other Asian property developers in Melbourne.
“We see there are substantial opportunities for growth as we enter the Asian market, and we’ve already had referral work from the Asian-based developers in Melbourne and our portfolio of Asian developers continues to grow,” says Fortey.
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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Mammoth seeks new Melbourne apartment opportunities following success with first residential tower

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It is a good idea to treat rental guarantees with suspicion and do the numbers several times to be sure they really stack up.
Buyers’ agent Catherine Cashmore warns against buying into a development that is offering a rental guarantee because “it is always factored into the sales price, and once the guarantee expires, the unit’s yield will revert back to market forces”.
Cashmore says current rental guarantees are in the order of 5% to 7%. If an investment has a gross return of 6% and the developer guarantees $300 a week rent that would put the purchase price at $260,000.
But if the market rent is in fact $250 a week, the property is really worth $218,000. This would have you paying 19.2% over the market value. The developer only has to pay $5,200 in total over two years to guarantee the $300 a week rent and the company would pocket $42,000 – or $36,800 net – on the sale price.
For great tips on buying off the plan, download Property Observer’s free ebook – <a target="_blank" href="https://propertyobserver.us2.list-manage.com/track/click?u=24bd0766a834290948593f5aa&amp;id=14e9848476&amp;e=7a53fc6dd9" rel="nofollow">14 tips for buying off the plan: The 2013 guide for investors and owner-occupiers.</a>
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Take rental guarantees with a grain of salt: Tips for buying off the plan

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Westpac chief economist Bill Evans has joined the other major bank economists by tipping the Reserve Bank to leave the cash rate on hold tomorrow at 3%.
Of the 29 economists surveyed by Bloomberg, 27 expect no change in the cash rate tomorrow while 25 out of 29 expect the RBA to hold firm in April as well.
The only economists tipping the RBA to cut the cash rate tomorrow are French bank BNP Paribas’s senior Asia economist Dominic Bryant and Macquarie Bank’s chief economist Richard Gibbs.
Not only has Westpac come back into line with the big four banks and most other economists, but it has also pushed back its expectations for the next rate cut from February to June.
A June cash rate of 2.75% or 2.50% is tipped by 17 out of 29 economists.
As the timetable for future RBA cash rate cuts appears to be pushed back towards the middle of the year – and may be at an end according to HBSC chief economist Paul Bloxham –  borrowers can source fixed and variable home loan rates with a <a href="/news">“four” in front of them</a> as lenders compete for business in a slow-growth credit environment.
Two non-bank lenders are offering variable home loans at 4.99% - Easy Street, owned and operated by Sydney-based Community First Credit Union and a refinance-only home loan from State Custodians.
These are the lowest advertised variable and fixed mortgage rates based on listings on mortgage comparison websites <a target="_blank" href="https://www.ratecity.com.au/">ratecity.com.au</a>, <a target="_blank" href="https://mozo.com.au/">Mozo.com.au</a>,  <a target="_blank" href="https://www.infochoice.com.au/">infochoice.com.au</a> and <a href="https://www.homeloanfinder.com.au/">homeloanfinder.com.au</a> as of March 4:
Where the headline rate is the same, the lender with the lowest comparison rate gets preference.
Lowest variable rate offerings:
<table width="470" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td valign="top" width="134">
Provider
</td>
<td valign="top" width="124">
Loan name
</td>
<td valign="top" width="97">
Rate
</td>
<td valign="top" width="116">
Comparison rate*
</td>
</tr>
<tr>
<td valign="top" width="134">
State Custodians
</td>
<td valign="top" width="124">
State Custodians Peak Performance Offset (Refinance Only)
</td>
<td valign="top" width="97">
4.99%
</td>
<td valign="top" width="116">
5.38%
</td>
</tr>
<tr>
<td valign="top" width="134">
Easy Street
</td>
<td valign="top" width="124">
Honeymoon Home Loan Special
</td>
<td valign="top" width="97">
4.99%
</td>
<td valign="top" width="116">
5.70%
</td>
</tr>
<tr>
<td valign="top" width="134">
Loans.com.au
</td>
<td valign="top" width="124">
Blackboard Special
</td>
<td valign="top" width="97">
5.09%
</td>
<td valign="top" width="116">
5.11%
</td>
</tr>
</tbody></table>
 Lowest one-year fixed-rate offerings
<table width="470" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td valign="top" width="137">
Provider
</td>
<td valign="top" width="123">
Loan name
</td>
<td valign="top" width="95">
Rate
</td>
<td valign="top" width="114">
Comparison rate*
</td>
</tr>
<tr>
<td valign="top" width="137">
Quick Direct
</td>
<td valign="top" width="123">
One year fixed
</td>
<td valign="top" width="95">
4.79%
</td>
<td valign="top" width="114">
5.46%
</td>
</tr>
<tr>
<td valign="top" width="137">
UBank
</td>
<td valign="top" width="123">
UHomeLoan for refinance fixed rate one year
</td>
<td valign="top" width="95">
4.83%
</td>
<td valign="top" width="114">
5.34%
</td>
</tr>
<tr>
<td valign="top" width="137">
Loans.com.au
</td>
<td valign="top" width="123">
Dream Loan Express
</td>
<td valign="top" width="95">
4.89%
</td>
<td valign="top" width="114">
5.28%
</td>
</tr>
</tbody></table>
 
Lowest three-year fixed-rate offerings
<table width="470" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td valign="top" width="131">
Provider
</td>
<td valign="top" width="131">
Loan name
</td>
<td valign="top" width="96">
Rate
</td>
<td valign="top" width="111">
Comparison rate*
</td>
</tr>
<tr>
<td valign="top" width="131">
ME Bank
</td>
<td valign="top" width="131">
Member Package SMHL Standard Home Loan
</td>
<td valign="top" width="96">
4.99%
</td>
<td valign="top" width="111">
5.49%
</td>
</tr>
<tr>
<td valign="top" width="131">
homeloanHQ
</td>
<td valign="top" width="131">
Rate Lock Home Loan
</td>
<td valign="top" width="96">
4.99%
</td>
<td valign="top" width="111">
5.53%
</td>
</tr>
<tr>
<td valign="top" width="131">
Teachers Mutual Bank
</td>
<td valign="top" width="131">
Teachers Fixed Option Loan
 
</td>
<td valign="top" width="96">
4.99%
</td>
<td valign="top" width="111">
5.90%
</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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The cheapest home loan rates on offer starting at 4.79% as just two economists tip March rate cut in Bloomberg survey

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Buying apartments and townhouses off the plan often attracts exemptions or reduced stamp duty for property purchases in states across Australia.
Each Australian state and territory has its own concessions and incentives, but if you are a first-home buyer chances are you are eligible for some sort of stamp duty discount or waiver.
The schemes mostly provide assistance for individuals buying their first homes, but seniors wishing to downsize might be eligible in some places as well.
From time to time, schemes have been unveiled for upgrading buyers aimed at stimulating the construction of new homes. Some schemes have required purchasing off the plan before construction commences, and others subsidise part of the stamp duty after construction commences. The schemes typically have eligibility requirements regarding the top price that precludes consideration.
Some governments require stamp duty payments after exchange documents are signed, but others delay the payment of stamp duty until the registration of the strata plan. A useful website for reference is <a target="_blank" href="http:www.stampdutycalculator.com.au">stampdutycalculator.com.au</a>, which calculates the amount of stamp duty payable on a state-by-state basis depending on whether you are an owner-occupier, investor or first-home buyer.
Also check state government websites for the latest information in your area.
Here is a list of specific off the plan grants available as at March 1, 2013.
NSW
A first-home buyer who purchases a $550,000 new home will get $35,240 in assistance. This includes a $15,000 grant for firsthome owners who purchase or build a new home valued at up to $650,000. The grant is available until December 31, 2013, reducing to $10,000 from January 1, 2014. Non-first-home buyers, including investors, who buy a new home are eligible for $5,000, whether the new home is off the plan or newly built, with a value up to $650,000. The $5,000 grant is also available to buyers of vacant land that is intended to be the site of a new home, valued up to $450,000. First-home owners are also eligible for a maximum stamp duty saving of $20,240 for homes up to a value of $550,000, with duty concessions for new homes valued between $550,000 and $650,000. The transfer duty exemption cap on vacant land is $350,000, with duty concessions for vacant land valued between $350,000 and $450,000.
QLD
A $15,000 first-home owner construction grant (FHOCG) is available. The FHOCG applies to new property bought or built at a value under $750,000. First-home buyers also pay no duty on purchases up to $500,000, with a phasing-out rebate applicable for values up to $600,000.For non-first-home buyers, the Queensland government offers a concessional stamp duty rate of 1% up to a value of $350,000, with stamp duty charged at normal rates for the remaining value of the home purchase. The buyer must occupy the home for a period of 12 months – an applicant may lose the concession if he or she sells or leases part or all of the home before moving in or within a year of moving in.
SA
South Australian first-home buyers buying off the plan have the chance to secure up to $23,500 from the state government, provided they buy or build a new home. The $23,500 handout comprises a doubled first-home owner grant of $15,000 for contracts entered into up to a value of $575,000, plus a further $8,500 housing construction grant (HCG) available until June 30, 2013. The HCG is available to all buyers of new homes for properties valued up to $400,000, phasing out for properties valued up to $450,000 where contracts are entered into between October 15, 2012, and June 30, 2013, inclusive. If you are purchasing a new or substantially refurbished apartment:
• within the area of the Corporation of the City of Adelaide;
• on any land within the area where the Bowden Redevelopment project (Bowden Village); or
• on any land located within the area known as 45 Park, Gilberton;
You may be eligible for an off the plan stamp duty concession of up to $21,330 (capped at stamp duty payable on a $500,000 apartment), if your contract to purchase was entered into between May 31, 2012, and June 30, 2014. This concession is in addition to the first-home owners’ grant. If eligible, no stamp duty will be payable where the apartment has a market value of $500 000 or less. Where an apartment purchased has a market value greater than $500 000, the buyer will be entitled to a stamp duty concession of $21,330. A calculator is available on the RevenueSA.sa.gov.ua website to determine the stamp duty payable and concession that could be applicable. A partial concession will be available for contracts entered into between July 1, 2014, and June 30, 2016. South Australian first-home buyers of established homes are entitled to a $5,000 first home owner grant, which expires on June 30, 2014.
WA
A $7,000 first-home owner grant remains in place for a newly constructed or established home. It does not apply to vacant land purchased to build a new home. The total value of the home must not exceed $750,000 if the property is located south of the 26th parallel of South Latitude, or $1 million if located north of the 26th parallel of South Latitude. First-home buyers eligible for the $7,000 grant pay no stamp duty on homes valued up to $500,000 and up to $300,000 for vacant land.
ACT
A $7,000 first-home owner grant remains in place for both existing and new homes where the price of the property or construction of the home does not exceed $750,000.
TAS
A $7,000 first-home owner grant remains in place for both existing and new homes, with no cap on the value. Tasmanian first-home buyers buying or building a new home (including off-the-plan) are eligible for an additional $8,000 under the First Home Builder Boost Scheme, which applies from January 1, 2013 to June 30 2014 if they qualify for the first-home owner grant.
NT
A $12,000 first-home owner grant is available up to a maximum of $600,000 if the home is an established home in the urban area. An urban area means all land located wholly within the boundaries of:
• the Darwin, Palmerston or Litchfield municipalities;
• Wagait Shire;
• the Darwin Waterfront Precinct;
• the “prescribed area” for the Darwin Rates Act.
Outside of urban areas, the grant amount is $25,000.
VICTORIA
The Victorian state government does not provide any extra incentives for first-home buyers purchasing off the plan.
A $7,000 first-home owner grant is available for those buying established homes or newly-constructed homes, including those bought off the plan. The price of the property or construction of the home must not exceed $750,000.
For great tips on buying off the plan, download Property Observer’s free ebook – <a target="_blank" href="https://propertyobserver.us2.list-manage.com/track/click?u=24bd0766a834290948593f5aa&amp;id=14e9848476&amp;e=7a53fc6dd9">14 tips for buying off the plan: The 2013 guide for investors and owner-occupiers.</a>
Photo by Caleb Roenigk, courtesy of Flickr
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State-by-state incentives for FHBs buying off the plan

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<img src="/images/stories/2013/02/collierslogo.jpg" width="470" height="94" alt="collierslogo">
Colliers International’s Michael Heather heads up its investment services in Canberra, a market in the spotlight in an election year. He says he would invest a spare $750,000 in the IQ apartment complex in Canberra City.
<img src="/images/stories/2013/02/heatherfeb27one.png" width="228" height="225" alt="heatherfeb27one" style="margin: 5px; float: left;">Agent: Michael Heather
Position: Director, Investment Services
Company: Colliers International
Office Location: Canberra
How long have you been in the industry? – Five years
What’s happening in the area you specialise in? – Yields are holding steady for prime office assets with strong cash flow security while yields for secondary office assets are more volatile
Describe the most interesting property you have sold – Brucella, it was a vacant commercial building previously occupied by the Therapeutic Goods Administration which was used for testing pharmaceuticals
What are the ingredients to being successful in your job? – Persistence, effective communication, technical expertise and knowledge of local market
What aspects of your role do you enjoy the most? – Satisfaction from brokering a deal between a seller and a buyer
Where would invest a spare $750,000? – In the soon to be developed IQ apartment complex in Canberra City
Which football team do you support? – Sydney Swans
What’s your favourite app or techno gadget? – the AFL app on my ipad
How do you use social media? – I am on LinkedIn
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In profile: Colliers International Canberra director Michael Heather

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Any home loan rate that has a 'four' in front of it is always going to attract a lot of interest.
So says the Commonwealth Bank’s general manager for home loans, Clive van Horen, after Australia’s biggest mortgage lender joined the other major banks by offering a 4.99% two-year fixed home loan rate this month.
The major banks took a while to join the fixed-rate cutting party, but now each is offering a two-year fixed rate starting with 'four' as they try to get more borrowers to lock in their mortgage rate and lender for anywhere from one to five years.
Van Horen tells Property Observer there has been a pick-up in borrowers opting for fixed-rate mortgages since the bank began cutting its fixed rate.
“Customers want to get certainty,” he says.
There is a growing proportion of borrowers who are hedging their bets by splitting their loan and keeping part of it on a variable rate, he says. 
“That way they get the best of both worlds.”
Similarly, Westpac, which was the first of the major banks to offer a sub-5% fixed rate this year is seeing an uptick in people fixing their home loans at its current 4.99% two-year fixed rate.
“At the moment (and not surprisingly) the two year deal is the most attractive but historically the three year fixed has been the most popular as people look for both security and peace of mind when it comes to longer-term repayments,” Westpac spokesperson Danny Johns says.
A spokesperson for NAB says it is already seeing increased demand for fixed rates after cutting one and two year fixed-rates earlier in the month.
"Generally, the three year rate is the most popular, but at the moment with the two year rate at 4.99%, it has generated a lot of interest."
Borrowers can get even cheaper fixed rates if they’re prepared to look outside the major banks. Mutual lender ME Bank has cut its three-year fixed rate to 4.99%, while iMortgage, the online lending arm of ASX-listed non-bank lender Homeloans Ltd, is offering a two-year fixed rate of 4.79% - currently the lowest rate in the market. 
The right set of curves 
Lenders are able to offer these lower fixed-rates because short-term funding costs have come down. 
Nomura banking analyst Victor German explains that banks price their fixed-rate home loans off a swap curve, which is essentially a measure of yields paid between banks for short term funding of different maturities.
He says the current two-year swap yield has dropped below 3% - currently it sits at 2.97% - while the three-year year swap is at 3.15%. 
So even at a two-year or three-year fixed-rate of as low as 4.79% there is a healthy margin for the bank or non-bank lender – and margins have been increasing as the recent financial results put out by the Commonwealth Bank, ANZ and NAB attest. 
German says the fixed-rates being offered by the banks is simply a play to get more business through the door in an environment of lower credit growth. The move also allows banks to lock customers in for a fixed period of time with the added benefit of cross-selling them other products and improve that all-important bank ratio: number of products per customer. 
The question borrowers may be asking themselves is: should I now consider fixing all or some of my mortgage repayments and take advantage of the low rates on offer?
But there might also be an argument for waiting a while longer – given the margins available, further fixed-rate cuts seem a distinct possibility.  
To fix or not
It’s a difficult argument for Australian borrowers to resolve. 
Many who fixed pre-GFC got badly burned when fixed rates tumbled as the RBA took an axe to the cash rate to keep the economy and housing market afloat. 
That’s unlikely to occur to the same extent because, firstly, the cash rate is already at the GFC low of 3% and, secondly, it appears that the global economy is more or less in recovery phase. 
Last week’s statement by RBA Glenn Stevens to a parliamentary committee suggested low rates are here to stay and may fall further if the economy fails to fire, but that any further cash rate cuts could be on hold for some time.
Still, with NAB's chief economist Alan Oster tipping a cash rate of 2.25% by year-end, fixed-rate borrowers could lose out if such a scenario eventuates.
Currently, the enticements of fixed-rates are the low sub-5% offers in the market and the certainty of repayments. 
It remains, however, a marginal product with the majority of borrowers; 80% to 85% choose a variable offer of some kind. 
According to audience figures compiled by comparison website <a href="https://www.homeloanfinder.com.au/" target="_blank">HomeLoanFinder.com.au</a>, the three-year fixed-rate product is by far the most popular, but there is also some interest for attractive two-year and five-year products.
Fixed-rate product popularity:
<table border="1" cellpadding="0" cellspacing="0"><tbody>
<tr>
<td valign="top" width="196">
1 year fixed rate
</td>
<td valign="top" width="189">
1.40%
</td>
</tr>
<tr>
<td valign="top" width="196">
2 year fixed rate
</td>
<td valign="top" width="189">
10.24%
</td>
</tr>
<tr>
<td valign="top" width="196">
3 year fixed rate
</td>
<td valign="top" width="189">
67.32%
</td>
</tr>
<tr>
<td valign="top" width="196">
4 year fixed rate
</td>
<td valign="top" width="189">
1.40%
</td>
</tr>
<tr>
<td valign="top" width="196">
5 year fixed rate
</td>
<td valign="top" width="189">
19.64%
</td>
</tr>
</tbody></table>
Source: <a href="https://homeloanfinder.com.au/" target="_blank">HomeLoanFinder.com.au</a>
 
<hr class="system-pagebreak">
Even with fixed-rates this low, Australians are reluctant to take out a fixed-rate home loan. 
Mortgage Choice CEO Michael Russell says borrowers are not “knocking down the doors” at banks to re-finance. 
Demand for fixed-rate home loans peaked at around 20% over 2012 according to Mortgage Choice figures, but is now trending down back towards long-term averages of around 15%. 
Compares this with the UK, where record low fixed-rates of around 4% are enticing over 90% of borrowers to fix their rate. 
Why the relatively poor take-up of fixed rates in Australia? 
There are a number of sensible arguments for not taking out a fixed-rate home loan even with the low rates on offer, beyond the obvious risk of missing out on repayment reductions if the cash rates fall. 
Firstly, there is the inflexibility of the products such as the seemingly paradoxical penalties for paying off your home loan earlier and the restrictions on making extra repayments.
Plus there is the fact that fixed-rate home loans are not included as part of the government ban on mortgage exit fees, which began in mid-2011, meaning borrowers cannot refinance without incurring heavy penalty fees. 
But, borrowers should also keep in mind that though the gap between the standard variable rate and the fixed rate may appear quite large in advertising material and on websites, if they are of good standing they may be able to negotiate anything from 80 to 100 basis points off the benchmark rate wiping out much if not all the benefit of fixing. 
And remember, the really big discounts are the ones negotiated behind closed doors – between borrower and bank manager – not those advertised on the windows of bank branches.
“The discounts off standard variable rate are compelling at the moment,” says Michael Russell to emphasis this point. 
What happens when your fixed term expires?
Having weighed up all the options (and hopefully spoken to a reputable mortgage broker somewhere along the line) if you do decide to take out a fixed-rate home loan remember to keep in mind when the term expires. 
Once the term expires, most borrowers will revert to the standard variable rate and plus possibly whatever discount they were entitled to under their fixed-rate mortgage contract. 
Depending on what has happened to rates since you fixed, the difference could be quite large meaning higher mortgage repayments. 
Westpac contacts borrowers about four to six weeks before their fixed rate term expires. 
“We write to them asking them whether they want to re-fix at any new rate that may then apply or if not they will then move to our applicable variable rate,” says Johns. 
“So if someone was moving off a fixed rate now they would go on our current variable rate of 6.51% - and if they are a package customer they would get a discount of 0.7% on that rate, that is a variable rate 5.81%. 
“But if they wanted to get a reasonable fixed rate deal they could currently get the two year at 4.99% (inclusive of a package discount of 0.2%) or on a three year deal.” 
Van Horen says that when a Commonwealth Bank customer’s fixed-rate term is about to expire, the bank notifies them that the loan will revert to the floating variable rate plus whatever discount was agreed initially. 
“They can either choose the variable or fix again.”
This is a vast improvement on the days when it was a lot harder for borrowers to switch lenders and the rate reverted to the floating variable rate without notification.
But you still need to keep checking your mortgage statements just in case - not all lenders may be as proactive.
</body></html>

The fix is on for bank mortgage rates: should you take the deal?

<html><body>
Westpac’s Bill Evans is now the only major bank economist tipping the RBA to cut the cash rate to 2.75% on March 5.
ANZ’s Warren Hogan has changed his call from a rate cut in March to the RBA leaving the cash rate on hold with 21 out 28 economists (including the Commonwealth Bank’s Michael Blythe and NAB’s Alan Oster) surveyed by Bloomberg expecting the RBA to hold firm.
Last week 20 out of 28 economists surveyed by Bloomberg tipped the cash rate to remain on hold in March.
A similar number – 19 out of 28 – are tipping no change in the cash rate in April with a small majority of economists (16 out of 28) tipping a lower cash rate in May (14 tip 2.75%, two tip 2.5%).
ANZ, Commonwealth Bank and NAB all expect a further rate hold in April but their end-of-year forecasts are quite divergent.
ANZ sees a cash rate of 2.50% by year-end, the Commonwealth Bank sees no more rate cuts this year, NAB sees a cash rate of 2.25% and Westpac expects the March rate cut will be the last for the year.
In his <a target="_blank" href="/news">statement to a parliamentary committee today</a> RBA governor Glenn Stevens hinted rates may not change in the next few months with the telling comment being that it is now “prudent to sit still” and wait to see what further impact lower rates will have on house prices and other sectors of the economy.
Westpac chief economist Bill Evans said on the back of the release of the February consumer sentiment index a week ago that the case remains for lower rates and still expects the RBA to cut rates by another 25 basis points at its March meeting.
According to Evans, the key report the RBA will deliberate on will the next Capital Expenditure Report (CAPEX), which is due to be released by the ABS on Thursday.
“This document will provide the first estimate of mining and non-mining investment intentions for the 2013/14 financial year.
“With the bank’s major concern being the need to rebalance the economy towards non mining investment, this report will be the most reliable assessment of whether business is responding to the low rates and the more constructive global environment, or whether more encouragement is required.
Apart from Westpac, the other respondents tipping a rate cut on March 5 are all foreign-based investment banks - BNP Paribas, CIMB, Deutsche Bank, Goldman Sachs, Macquarie Bank and Merrill Lynch.
</body></html>

Westpac’s Bill Evans on his own as ANZ, Commonwealth Bank and NAB tip no rate cut in March or April: Bloomberg

<a href="https://www.apartments.com.au/developments/broadbeach-qld-4218">Broadbeach</a> offers plenty of reasons to live vertically, but moving from a substantial family home into an apartment can expose the compromises of high-density living. Privacy, room for guests and usable living space tend to matter more when an apartment is intended as a permanent home rather than an occasional coastal base.

A typical residential floor at <a href="https://www.apartments.com.au/new-apartments/the-eveleigh-broadbeach-7-9-surf-parade-broadbeach-qld-4218">The Eveleigh</a>, on Surf Parade,&nbsp;contains just four apartments. The 94-residence development by <a href="https://www.apartments.com.au/developers/hirsch-faigen">Hirsch &amp; Faigen</a> is predominantly made up of expansive three-bedroom homes, with a limited collection of half-floor penthouses above.

Across the apartment floors, <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> has used the relatively limited number of residences to give each home greater access to natural light and outlook. Living spaces extend towards full-height glazing, while a series of bay windows frame selected views across the Pacific Ocean, city and hinterland rather than treating the building edge as a continuous wall of glass.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360965]

“The apartment floors deliver a collection of homes that embrace controlled outlook via a series of bay windows deliberately framing moments of view,” Rothelowman Director Kim Lowman said.

From outside, those projecting forms contribute to the tower’s faceted profile. Strong horizontal and vertical elements establish its proportions, while the changing position of the sun alters the light, shadow and reflection across the façade throughout the day.

The same attention moves inside the apartments, where the material palette combines warm timber, natural stone, metallic detailing and softer curved forms. Kitchens sit within the main living zone, with stone island benches, integrated joinery and European appliances, before the living areas extend towards the glazing and the outlook.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360981]

Three genuine bedrooms provide room to accommodate family and guests, while two secure car spaces and storage address some of the practical considerations that can become more noticeable when moving from a larger home. Feedback from the display suite has centred on the warmth and restraint of the interiors, with buyers commenting that the residences feel like homes rather than conventional coastal apartments.

A limited collection of half-floor penthouses occupies the upper levels, increasing the scale of the living spaces and adding private balconies and elevated finishes. From this position, the outlook extends between the ocean and hinterland.

Outside the private residences, The Eveleigh separates its shared spaces between the podium and rooftop. The podium is centred on wellness, with subtropical landscaping surrounding a swimming pool and pool terrace, yoga garden, private gymnasium, sauna and hot and cold plunge facilities. Landscaped retreats and pavilions provide additional places to sit away from the main recreation areas.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360966]

Higher in the building, a rooftop pavilion and private dining suite sit alongside resident lounge, barbecue and outdoor dining areas, opening towards panoramic views across the ocean, city and hinterland.

“Buyers are no longer just looking for an apartment, but a lifestyle where they can relax, reset, and enjoy a balanced way of living,” Hirsch &amp; Faigen Director of Sales Matt George said.

Interest to date has come from established owner-occupiers and interstate lifestyle purchasers, including buyers planning a future move to the Gold Coast. Many are coming from larger homes and want to reduce ongoing maintenance without giving up space for family and guests, privacy, two car spaces or the ability to entertain at home.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360969]

Much of that daily life can also take place beyond the building without requiring a drive. Kurrawa Beach and Pratten Park are an easy walk from Surf Parade, while Pacific Fair, Oracle Boulevard, The Oasis, restaurants, cafés, entertainment and public transport are also within walking distance.

The Eveleigh is Hirsch &amp; Faigen's fourth Gold Coast development since entering the market in 2021, following The Hemingway at Palm Beach, The Emerson at Kirra and Yves at Mermaid Beach. Each of the preceding projects sold out before completion.

“Broadbeach had been on our radar throughout our time operating on the Gold Coast,” the developer said. “Following our projects in Palm Beach, Kirra and Mermaid Beach, Broadbeach represented the natural next step for the business.”

The Surf Parade site brought together proximity to the beach, protected coastal outlooks and walkability to dining, shopping and recreation. Hirsch &amp; Faigen also identified the street as an emerging premium residential address, with enough separation from Broadbeach's busier destinations to retain a quieter environment at home.

The Eveleigh is now under construction by Maxcon, with completion forecast for mid-2028. Three-bedroom residences are currently available from $2.87 million.

[smartcode_project_cta:default project_id=149670]

Joel Robinson

The Eveleigh brings house-like apartments to Broadbeach

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

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

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

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

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

<main data-perf-region="main">
Castle Hill, the longtime hub of the Hills District, has been one of the major beneficiaries of Sydney's Metro expansion, with improved connectivity helping drive continued population growth, development and buyer demand across the Hills District.

But despite that growth, the suburb has seen relatively few major new apartment projects brought to market over the past 18 months.

Hills District developer Reve Group is looking to fill that gap with <a href="https://www.apartments.com.au/new-apartments/nova-r-ve-castle-hill-2-garthowen-crescent-castle-hill-nsw-2154">Nova Rêve</a>, a major new mixed-use precinct on the corner of Garthowen Crescent and Old Castle Hill Road, a short walk from Castle Hill Metro Station and Castle Towers.

[smartcode_project:default project_id=152737 project_image_fid=377679]

The project will comprise three residential towers alongside a hotel, restaurants, cafes and a skybar, more than 1,600 sqm of ground-floor retail and almost an acre of landscaped gardens.

It represents the largest project undertaken by Reve Group, the development arm of the Kassis family, which has been building across the Hills District for more than 30 years through Kassis Homes.

[smartcode_project:default project_id=152737 project_image_fid=377675]

Nova Rêve also represents a significant step up from the family's first apartment development, Grand Rêve, which was delivered nearby on Garthowen Crescent.

Grand Rêve introduced larger, house-like apartment layouts and premium inclusions including Wolf and Sub-Zero appliances to the Castle Hill market.

Nova Rêve takes that approach to a precinct scale, combining the residential component with hospitality, retail and substantial public and resident landscaping.

[smartcode_project:default project_id=152737 project_image_fid=377685]

Reve Group Managing Director Sam Kassis said the project reflected the family's three decades of building in the Hills, which has evolved from trophy homes on quarter-acre blocks to larger-scale apartment development.

"Grand Rêve was our first apartment project here and it showed us what this pocket of Castle Hill could be. Nova Rêve is the refinement of that idea: not just apartments, but a place the whole suburb can use," Kassis said.

A key part of that approach is the hotel, which has been designed to operate as an amenity for the wider Castle Hill community rather than solely hotel guests.

It will include restaurants, cafes, skybars and all-day dining, alongside conference and event facilities catering to business functions, community groups and private events.

At ground level, more than 1,600 sqm of shops and cafes will open onto the surrounding streets and landscaped areas.

Almost an acre of gardens designed by Land and Form Studios will run through the precinct, incorporating pathways, seating, barbecue areas and children's play spaces.

[smartcode_project:default project_id=152737 project_image_fid=377680]

Reve Group's Romio Georges said creating an active ground plane had been central to the planning of Nova Rêve.

"There are gardens with pathways, barbecues, seating and play areas, shops and cafes opening onto the street, and a hotel with restaurants and a skybar that anyone in Castle Hill can walk into," Georges said.

The project's elevated position on one of Sydney's highest ridgelines will also provide apartments with outlooks toward the Sydney skyline, surrounding parkland and the Blue Mountains.

More than 80 per cent of the apartments will occupy corner positions, with Turner responsible for both the architecture and interiors.

&nbsp;

[smartcode_project_cta:default project_id=152737]

<h3 data-end="3697" data-section-id="q3n5ak" data-start="3672">&nbsp;</h3>
</main>

Larry Schlesinger

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