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Sales of residential land on Melbourne’s fringes are set to retreat to levels last seen in 2006 as land prices continue to fall.
Following reports showing that 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" target="_blank">30% of all released Melbourne land is being returned by building companies,</a> there seems to be little respite for Melbourne residential developers in 2013, with a higher number of projects competing for business from seemingly reluctant buyers adding to the challenges they face.
According to the latest quarterly report from Oliver Hume, there has been a 29% increase in the number of residential projects being marketed on Melbourne fringes since 2006 with the real estate group forecasting 160 active projects in 2013.
Oliver Hume anticipates that land sales are likely to fall to around 65 per project a year.
“Put simply, since 2006, there has been a 29% increase in the number of projects and a 5% decline in the number of land settlements.
“For the majority of projects, double-digit sales rates may be a long way away,” says report author Andrew Perkins.
Land prices have now fallen for by a cumulative 16% over eight consecutive quarters with an average residential lot price of $190,000.
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Melbourne land prices peaked at an average residential lot price of $225,750 in December 2010.
At the same time, developers continue to offer highly contentious rebates to customers with the median rebate rising slightly during the quarter to $15,000.
Median rebates ranged from $10,000 in Cardinia and Whittlesea to $16,500 in Casey.
When discounting for rebates, Wyndham is the only municipality with a median land price above $200,000.
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The biggest decline from peak prices has occurred in Whittlesea, where the average lot price has fallen 18.6% since peaking in December 2010, falling from $229,850 to just $187,250 – a decline of $42,700. Whittlesea is about 40 kilometres north east of Melbourne.
Land prices have declined 16.9% in Melton, 35 kilometres to the west of the Melbourne CBD. Prices peaked later in Melton than in other fringe suburbs. They reached their highest point in September 2011 of $189,500 and have since declined to just $157,500 – a decline of $32,000.
Casey in Melbourne’s outer south east recorded the third steepest fall in in values with the median land price falling 14.5% from their peak in December 2010 from $232,550 to $198,000 – a decline of nearly $34,000.
Double-digit declines from peaks were also recorded in Hume (values down 13.1%) in Melbourne’s outer north west and in Melbourne’s newest land market Mitchell: Wallan- Beveridge, where values are down 13.8% to just $153,000 – the cheapest place to buy land on the outskirts of Melbourne.
Wyndham and Cardinia recorded the only single digit falls: 9.3% and 9.9% respectively.
For the fourth consecutive quarter, the retail supply has waxed and waned between 3,600 and 3,700 lots, which at current project sales rates, represents 6.6 months supply.
Only three of the seven municipalities recorded an increase in supply over the December quarter: Mitchell (Wallan-Beveridge), Casey and Hume.
Mitchell (Wallan-Beveridge) has the most supply with 9.9 months supply; followed by Whittlesea with 9.5 months. Wyndham and Hume are the smallest with 4.9 and 5 months supply respectively.
"Although many analysts suggest that Melbourne house prices will rise in the year ahead, few would suggest that we are in for a period where growth-area land prices may start to climb.
"There are nevertheless several indicators suggesting the down-side risk is no longer greater than the upside potential," says Oliver Hume.*
Exacerbating the challenges facing fringe land developers, a recent report by Essential Economics warned that Melbourne’s growth areas needed $10 billion spent on new education, transport and health services in the next 15 years - this from a Victorian government trying to rein in spending.
In addition, Essential Economics found there were more limited job opportunities in the 10 councils that form Melbourne's outer urban ring including Wyndham, Melton, Hume, Whittlesea, Yarra Ranges, Casey and Cardinia.
*Update to article: An earlier version of the article included an incorrect statement:  " Oliver Hume reports that developers are holding back on releasing large amounts of land to the market as take—up remains poor." This statement was incorrect and has been removed.
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Melbourne land sales heading for toughest year since 2006 as rebates rise: Oliver Hume

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The CBD hotels sector continues to out-perform all other commercial property sectors with expectations dimming for offices and retail property returns, according  the latest NAB’s quarterly survey of commercial property players.
The NAB Commercial Property Index rose slightly to -17 points in the fourth quarter of 2012 from a low of -19 points in the previous quarter.
However, this was solely due to a sharp increase in the CBD Hotels index as capital growth and rental expectations fell in all other commercial property markets.
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“Recovery expectations also postponed in all markets, with property professionals less optimistic about prospects for longer-term capital and income growth,” says the report authored by NABs’ head of research Peter Jolly and chief economist Alan Oster.
On a state-by-state basis, WA was identified as the strongest market, but NSW the most optimistic state by the end of 2014 with Victoria lagging.
“Debt and equity funding still a problem for developers and consumer confidence continues to be identified as the main challenge for property firms in the next year.”
The results are based on a December survey of 270 commercial real estate agents and property managers, property developers, asset/fund managers and commercial property owners and investors.
The CBD Hotel Index rose to +58 points in the December quarter, with more respondents anticipating future capital value.
“CBD hotel operators are benefiting from strong demand for CBD hotel rooms and limited supply additions, which is contributing to revenue per available room (revPar) and room rate growth,” says NAB.
CBD hotels was the only sector to record a rise in capital values over the December quarter (up 1.7%) with retail property recording the greatest decline in value (-1.4%) followed by industrial (-1.2%) property.
Office property values slipped by a relatively modest 0.6% over the quarter.
The outlook is also strongest for CBD hotels with respondents anticipating capital growth of 3% over 2013 and 4% over 2014.
Modest growth is predicted for industrial property (0.3% and 1.2%) and offices (0.1% and 1.2%) with expectations gloomiest for retail property with values forecast to decline by 0.2% this year, before a modest rise of 0.8% in 2014.
NAB says the lower expectations for capital growth and rental growth in the office property market are due to the domestic economy entering a soft patch along with weaker employment conditions seen in the finance/ business/ property sectors in the latest quarterly NAB Business Survey, which has weighed down on confidence.
“With the economy continuing to weaken and unemployment set to rise noticeably through 2013, the outlook for commercial office property has also weakened,” says NAB. 
Commercial property landlords hoping for a better rental return in 2013 will be disappointed.
The NAB survey found that rents contracted in all markets in the final quarter of the 2012 led by retail (-2.1%) with rents down in all states.
Retail participants in the survey are slightly less pessimistic this quarter about rental expectations, expecting average rents to fall 1.5% this year and by 0.4% in 2014. There are more subdued expectations in the office market with rents to remain flat in 2013 and grow by 1% by 2014
Rental expectations for industrial property also revised down with rents to grow 0.8% in next year and 1.7% in 2014.
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Little for office and retail landlords to cheer about as commercial property outlooks dims: NAB survey

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House prices on the Gold Coast and Sunshine Coast declined relatively modestly over 2012 and showed signs of recovering in the final quarter of the year, according to new figures released by the Real Estate Institute of Queensland (REIQ).
The figures suggest these tourism-dependent, retiree-friendly coastal markets averted the “catastrophe” suggested by Sunrise presenter and finance guru David Koch and his wife Libby a year ago.
House prices on the Gold Coast declined by 3.1% over the year with the median price declining from $480,000 to $465,000 on an annualised basis.
This compares with a steeper decline of 4.8% recorded over the 2011 calendar year.
Over the final three months of the year, Gold Coast house prices lifted by 1.1% - a better result than the Brisbane city market, where house prices gained just 0.4% over the final quarter of the year.
On the Sunshine Coast, house prices fell 2.9% over the year with the median price declining from $445,000 to $432,050 on an annualised basis.
In 2011, Sunshine Coast house prices fell 5.3%, according to the REIQ.
There are indications that house price declines may be slowing down with the Sunshine coast recording just a 0.2% decline over the final three months of 2012.
<table cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td valign="top" width="111">
Region
</td>
<td valign="top" width="94">
Median sale price Dec 2012
</td>
<td valign="top" width="76">
Qrtly change
</td>
<td valign="top" width="95">
Median sale price for 12 months to Dec 2012
</td>
<td valign="top" width="104">
Median sale price for 12 months to Dec 2011
</td>
<td valign="top" width="104">
1yr change 2012
</td>
<td valign="top" width="104">1yr change 2011</td>
</tr>
<tr>
<td valign="top" width="111">
Gold Coast
</td>
<td valign="top" width="94">
$465,000
</td>
<td valign="top" width="76">
+1.1%
</td>
<td valign="top" width="95">
$465,000
</td>
<td valign="top" width="104">
$480,000
</td>
<td valign="top" width="104">
-3.1%
</td>
<td valign="top" width="104">-4.8%</td>
</tr>
<tr>
<td valign="top" width="111">
Sunshine Coast
</td>
<td valign="top" width="94">
$429,000
</td>
<td valign="top" width="76">
-0.2%
</td>
<td valign="top" width="95">
$432,050
</td>
<td valign="top" width="104">
$445,000
</td>
<td valign="top" width="104">
-2.9%
</td>
<td valign="top" width="104">-5.3%</td>
</tr>
<tr>
<td valign="top" width="111">
Brisbane City
</td>
<td valign="top" width="94">
$510,000
</td>
<td valign="top" width="76">
+0.4%
</td>
<td valign="top" width="95">
$510,000
</td>
<td valign="top" width="104">
$512,000
</td>
<td valign="top" width="104">
-0.4%
</td>
<td valign="top" width="104">-5.2%</td>
</tr>
</tbody></table>
Source: REIQ
REIQ CEO Anton Kardash said the latest quarterly result demonstrated that the second half of 2012 was one of improvement.
“This is the second consecutive quarter where the market has exceeded expectations,” he said.“Historically the December quarter is quieter than the September quarter- and we did have a very strong September quarter last year - but what these figures are showing us is that buyers continue to be more active than the year before.
The REIQ also reported increased buyer activity in Queensland’s tourism centres with the numbers of house sales up 27% on the Sunshine Coast and 19% on the Gold Coast compared to the December 2011 quarter.
“Buyers are once again looking at our beautiful tourism regions, perhaps attracted by the lower price-points that are now available in some of these areas,” says Kardash.
REIQ Gold Coast zone chair John Newlands said the positive results show signs that the housing market on the Gold Coast is now in a period of stabilisation.
“Recovery appears to be on its way with both the lower end and prestige markets performing well over the quarter,” he said.
Commenting on the Sunshine Coast, zone chair Lloyd Edwards said market conditions generally are faring well, with a very upbeat and positive sentiment in the marketplace.
"We are seeing more completed sales, most likely due to buyers being frustrated by the tight rental market conditions in the region," he said.
“The month of December saw uncharacteristically high activity despite the dramatic decrease in properties coming onto the market as interest rates reduced their holding costs.
"The beach community of Buddina appears to be back in favour with buyers with its median house price increasing by 14.9% over the year ending December, possibly attributed to the varying number of waterfront properties sold.
A year ago <a href="https://www.propertyobserver.com.au/queensland/sunshine-coast-mayor-slams-kochie-for-catastrophic-warning-to-property-investors/2012012353114" target="_blank">Sunrise presenter and finance guru David Koch and his wife Libby</a> outraged Gold Coast and Sunshine Coast estate agents and developers by describing the two South East Queensland coast markets as “catastrophes” He said an oversupply of apartments on the Gold Coast and Sunshine Coast was “nothing short of devastating” and that it would be years before there would be any sort of recovery.
Coastal Queensland estate agents took to the parochial local newspapers to vent their anger at Kochie.
But he remained unfazed, responding with a <a href="https://kochie.com.au/20120129527/why-gold-coast-real-estate-agents-are-the-worlds-supreme-optimists-or-loose-with-the-truth">barrage of real estate data</a>, including quoting figures from RP Data showing that Gold Coast house prices had fallen 15.1% from their peak in March 2010, with units were down 15% from December 2011 quarter.
On the Sunshine Coast, he said, house prices were down 13.9 % from their peak in December 2009 with units falling even further, down 16% from their peak in March 2010.
The figures out today from the REIQ suggest the worst may has passed for these two markets, though early indications about the Gold Coat unit market suggest falls will be greater than those experienced in the detached housing market.
Figures released in the December quarter Prodap report, which looks at new housing,says Gold Coast house prices fell by 4.5% over 2012 with units down 7.3%.
Bill Morris, author of the Prodap Report, said he had not seen such a grim picture of the new housing production market since the 1981-82 recession.
The problem for the Gold Coast land market, said Morris, was that “established houses are cheaper and in many cases better located than new houses”.
“In other words, replacement costs are higher than the price of older homes,” he said.
REIQ figures till the end of September 2012, record a 5.5% decline in the median price of Sunshine Coast units to $325,000, with Gold Coast City units down 2.8% to a median of $330,000
Residex provides a collective Gold Coast unit figure in its regional property update.
It records that Gold Coast unit prices fell 4.34% for the year to October to a median value of $325,000.
As a point of comparison, country Queensland unit values fell by less than half of that - down only 1.95% over the same period to a median of $278,500.
However the Gold Coast unit price correction in 2012 was less than half the 8.74% fall recorded over the previous 12 month period to October 2011, suggesting the market may be close to bottoming out.
RP Data has Surfers Paradise unit prices down 2.8% over 2012, but Broadbeach units up 2.3%.
These suggest modest price corrections over 2012.
Telling though, sales volumes continued to fall steeply, indicating the market remains severely depressed in terms of sales activity.
This most likely reflects a disconnected market with vendors unwilling to set realist price expectations (and take a loss on their investments) combined with buyers in search of an expecting to secure big discounts off the previous selling price.
RP Data records 728 unit sales in Surfers Paradise in 2012, a 12% decline compared with the already low figure of 831 sales recorded in 2011.
Putting this in context, RP Data recorded 2,359 sales on Surfers Paradise in 2007 – that’s more than three times as many as there were last year.
Sales picked up a little on Broadbeach – rising from 295 in 2011 to 317 in 2012 – but this is less than half the 714 sales recorded in 2007 before the GFC began to bite.
Certainly new and off the plan apartment sales on the Gold Coast remain very weak.
The November quarter Midwood Report reported on a deeply troubled Gold Coast apartment market with developers reporting only 19 high-rise apartment sales over the November quarter, a 70% plunge from sales figure a year ago, according to the latest Midwood Report.
Quarterly sales figures were more than double the paltry eight sales recorded in the August quarter, but just a fraction of the 73 sales recorded in November quarter of 2011.
In total there are 705 high-rise apartments available for purchase on the Gold Coast, which at current sales rates would take close to a decade to clear.
The Midwood report classifies high-rise sales as those developments of 40 storeys and higher.
All but three of the sales over the quarter were in the Brookfield Multiplex-constructed $700 million Hilton Surfers Paradise (pictured below), following prices being reduced by up to a third.
There were no sales reported in the two other major high-rise apartments – Niecon’s Oracle and Juniper’s Soul, both of which are in the hands of receivers.
Midwood records 47 unit sales on the Sunshine coast over the November quarter with 40 of these sales occurring at Saltwater, being developed by RGD Property group in Birtinya with prices starting from $360,00 for a one bedroom apartment. 38 units remain up for sale.
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David Koch “catastrophe” comments revisited: Gold Coast and Sunshine Coast house prices record modest declines in 2012

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Real estate funds manager, investor and developer Folkestone will shortly secure settlement on the sale of 41 dwellings in the first stage of its key Karratha residential development The Ranges.
Reporting its first interim results since restructuring, Folkestone announced a net profit after tax for the six months ending December 31 of $30,000 compared to a net profit after tax of $700,000 in the corresponding period in 2011 following a number of acquisitions and sales of non-core parts of the business.
Folkestone managing director, Greg Paramor said the company had been very active over the reporting period, and had completed its transformation “from a pure real estate developer to a real estate funds manager, investor and developer providing real estate wealth solutions to private clients and select institutions.”
<img alt="karrathafeb20one" height="345" width="470" src="/images/stories/2013/02/karrathafeb20one.jpg">
“Over the past 18 months, we have sold legacy assets, recycled capital and established a funds management platform that now offers listed and unlisted real estate funds to private clients and a number of institutional investors” said Paramor, who was co-founder and CEO of Mirvac from 2004 to 2008.
Stage 1 of the Ranges comprises 2.2 hectares with a “Tourism” zoning and development approval for 108 single level, one bedroom villas with pool and BBQ facilities.
Folkestone has a 25% interest in the project.
The settlements of the first 41 dwellings in Stage 1a  to individual investors is due to commence in March 2013.
The development is designed to provide accommodation to business travellers to Karratha in the Pilbara, WA’s resource heartland and the focus of a number of long?term LNG  and other resource projects.
<img alt="karrathafeb20two" height="346" width="470" src="/images/stories/2013/02/karrathafeb20two.jpg">
A further 14 dwellings in Stage 1b have been sold and a marketing campaign for the balance of the 53 dwellings in Stage 1 is underway.
Construction of a further 32 villas is expected to commence mid-2013.
Folkestone also settled on a further 7.1 hectare adjoining rear?lot to the project following negotiations with the WA Government and the local indigenous community regarding Native Title clearance issues.
During the reporting period, Folkestone acquired the Austock property funds management business.
Folkestone also completed its joint-venture (with AMP) Noone Street, Clifton Hill residential development featuring 87 dwellings in the inner suburb of Melbourne, acquired in June 2007. The final apartment was settled on September 20.
The project delivered a cash return of $9 million, of which $300,000 occurred in the reporting period.
Folkestone also launched its first real estate income fund at Sydney Olympic Park, the first in a series of such funds.
The Fund acquired a new 5,920 square metre commercial building at 7 Murray Rose Ave, Sydney Olympic Park for $29.25 million, leased to Thales Australia, as its new Australian headquarters.
Offering a commencing annualised yield of 8.1%, the high number of applications to invest in the unlisted fund meant that it closed oversubscribed.
Paramor says he expects economic and financial markets to remain “challenging but believe there will be a number of attractive investment opportunities in both the residential and non?residential sectors in the next 12 months”.
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Restructured Folkestone prepares for first Karratha residential settlements

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Of the 278,222 square metres leased in the Sydney CBD in 2012, the 'property &amp; business services' sector was the dominant sector, leasing 42% of the stock, or 115,678 square metres, according to Savills.
Demand from the ‘finance and insurance’ and the ‘property and business services’ sectors, which make up the majority of tenants in Sydney, continues to build.
The two sectors combined accounted for more than 78% of leases signed during the last 12 months totalling a massive 215,528 square metres. Much of this is precommitment for projects completing in 2015/16.
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Chart of the week: Who is leasing office space in the Sydney CBD?

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The Commonwealth Bank, NAB and ANZ have joined Westpac by offering a two-year fixed-rate home loan at 4.99%.
Unlike Westpac, the sub-5% offerings were not announced in press releases.
The Commonwealth Bank offers its two-year fixed rate of 4.99% under its wealth package offering with a comparison rate of 6.09%. For non-package Westpac customers, the two-year fixed rate is 5.14% (comparison rate of 6.29%).
NAB offers a two-year fixed home loan under its choice package offering at 4.99% with a comparison rate of  6.00%. For non-package NAB customers, the two-year fixed rate is 5.09% (comparison rate of 6.21%).
ANZ revealed its two-year fixed rate home loan of 4.99% in an update to mortgage brokers on February 13. The rate is available under its Breakfree package offering, which includes a 0.15% discount. A comparison rate on this loan is not provided.
Two-year fixed rates and three-year fixed rate home loans are the fixed-rate terms preferred by most fixed-rate borrowers.
Westpac cut its two-year <a target="_blank" href="https://www.propertyobserver.com.au/news/westpac-lead-the-big-banks-below-5-on-nfixed-home-loans/2013020659208">fixed rate to 4.99% on February 7</a>, joining a number of non-bank lenders who offer fixed-rates below 5%. The Westpac comparison rate is 6.27%
The lowest two-year fixed rate is 4.79% offered by online lender iMortgage under its fixed pro pack home loan with a comparison rate of 5.43%. iMortgage is the online lending arm of ASX-listed non-bank lender Homeloans Ltd.
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Commonwealth Bank, NAB and ANZ match Westpac with 4.99% fixed rate package offerings

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Shopping centre owner and manager Federation Centres has reported an interim net profit $115.91 million for the six months to December 31 - its first complete first-half results under its new brand following the restructuring of the debt-laden Centro business.
The profit compared with a loss of $100 million recorded in the previous corresponding period, when it was known as Centro Retail Australia.
Federation Centres also reported a healthy balance sheet with its gearing down to 29.9% after entering into a number of joint-ownership agreements.
Last week, in its first significant deal under its new name, Federation Centres agreed to sell half-shares in four malls and a convenience centre to the Industry Superannuation Property Trust (ISPT), one of Australia’s biggest unlisted property trusts for $371.4 million.
This follows Federation Centres selling 50% interests in three shopping centres - Galleria (WA), The Glen (Victoria) and Colonnades (SA) - to the Perron Group for $690 million in June last year.
Federation Centres expects its gearing to fall to 24.2% once it completes the ISPT transaction.
The results show the group manages 78 properties in its portfolio.
It owns 40 malls outright, 34 are parts of syndicates and seven are joint-ventures.
The portfolio is valued at $6.6 billion and has an occupancy rate of 99.5%.
It is well spread across Australian metro regions with the highest presence in NSW (34%), Victoria/Tasmania (25%) and WA (22%).
Federation Centres reported 2% growth in retail sales.
It has a development pipeline over five years of $1.1 billion – with Federation Centres' share being around half of this at $591 million.
Federation Centres also continues to simplify its previously complex mix of unlisted shopping centre syndicates with $548m of assets acquired by the group and $438m sold on market.
The company expects $1.2bn of assets expected to be transacted by 2015 with $500m to be sold on market and $700m potentially acquired by the group, subject to further capital recycling initiatives
Chief executive Steven Sewell said the company had “entering a new era” where it can utilise its sound financial position and work with its strategic alliances to enhance its portfolio of Australian shopping centres, “with the clear objective of providing sustainable returns for investors”.
“The portfolio continues to benefit from a strong exposure to non-discretionary spending. All retail categories showed growth, although department store sales remained subdued.
“Supermarkets and specialty retailers, which make up approximately 75% of Federation Centres’ total annual sales, achieved annual sales growth of 1.7%," he said.
"The mini major category, with 8% of sales, increased turnover by 8%. Department store sales, which represented 3% of turnover, improved by 0.1%.
“Full-year earnings are now forecast, subject to any unforeseen events, to be in the range of 15.5 to 15.75 cents per security with distributions paid to investors representing a payout ratio of between 80% and 90%"
 
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Federation Centres emerges from Centro with stronger balance sheet and back in the black

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There was a noticeable drop in the number of houses and units available to rent in January, but this is mainly attributable to seasonal factors, says SQM Research director Louis Christopher. 
The national vacancy rate tightened by 0.4 percentage points from 2.3% to 1.9% over January with just over 54,000 properties available for rent across the eight capital city markets compared with 63,000 in December. 
All capital cities recorded tightening rental markets led by Melbourne where the vacancy rate tightened from 3.6% in December to 3% in January with 2,600 fewer rental properties available for lease. 
Perth remains the tightest capital city rental market with its vacancy rate tightening from 0.9% to 0.8% - a distressing sign for Perth renters. 
Other capital city vacancy rates are: Adelaide (1.4%), Brisbane (1.9%), Canberra (1.5%), Sydney (1.6%), Darwin (1.4%) and Hobart (1.9%). 
SQM Research points out that the January decline in vacancies is similar to that of the month’s preceding the Christmas period, “strengthening the assumption that December’s elevated figures were due predominantly to seasonality”.  
Year on year, SQM Research has record a modest national increase of 0.1% with many of the capital cities’ vacancy rates remaining relatively the same. 
Canberra and Darwin however, have recorded the most dramatic yearly differences with Canberra increasing by 0.8% in vacancies and Darwin by 0.4%. 
“Thus as it currently stands, the rental market although loosening somewhat since the corresponding period of the previous year (January 2012) remains for the most part - tight, with the majority of capital cities excluding Melbourne, continuing to record vacancy rates of under 3%,” says Christopher. 
“Having said this, SQM Research believes with a housing recovery commencing in many parts of the country, the rental crisis that many localities have been experiencing over the past 12 months, may slowly begin to be alleviated, with potential first home buyers who have been sitting tight, now beginning exit the rental market to purchase their own homes. 
“Taking into account seasonality, vacancy rates have proven to be very steady over the past two years now for the major capital cities. We note that in Hobart, there appears to be a tightening in vacancies once again, which may help existing real estate investors in what has been a severe downturn for that city.
“When considering more micro localities, there are some clear pockets of oversupply and under supply such as Melbourne’s Southbank, which is recording a very high vacancy rate of 10.9% right now.  This goes to show it is important to consider the local factors as well as the greater macro tides.”
Vacancy rates for individual postcodes are available on the SQM Research.
SQM’s calculations of vacancies are based on online rental listings that have been advertised for three weeks or more compared to the total number of established rental properties.
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Rental market tightens in January to national vacancy rate of 1.9% mainly due to seasonality: SQM

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Reserve Bank board members noted a number of improvements in the housing market on the back of previous rate cuts when it decided to leave the cash rate on hold at 3% in February, according to the minutes of the February 5 monetary policy meeting released today.
The minutes suggest the RBA has adopted a wait-and-see approach on the impact 175 basis points cut from the cash rate since November 2011 will have on an already firming housing market and other non-mining sectors of the economy.
“While conditions remained soft in the construction industry, there were some signs that the housing market had firmed, partly due to the series of interest rate reductions over 2012," read the minutes.
“Notwithstanding month-to-month volatility, building approvals had increased since the middle of 2012, particularly in states other than Victoria, and prices and rental yields in the established housing market had also picked up."
In the December minutes – when the RBA cut the cash rate by 25 basis points to 3% - the RBA board that consumer sentiment had improved, “consistent with employment growth picking up to a moderate pace and better conditions in the housing market”.
The February 5 minutes note that following the December cash rate announcement, "most Australian lenders had reduced their standard variable housing rates by around 20 basis points.
"This reduction had brought the average interest rate on outstanding housing loans to well below its longer-run average and only a little above its 2009 low. Rates on small and large business loans were also close to their 2009 lows," read the minutes.
At the February meeting, RBA board members were also briefed on the GDP outlook, which is forecast to be a bit below trend at 2.5% over 2013, but also that "improving conditions in the housing market were expected to continue to provide support to dwelling investment, while non-mining business investment was expected to pick up gradually over time".
Apart from the weaker GDP outlook, the RBA board said housing finance remained relatively subdued, and indicators suggested that non-mining business investment would continue to be weak in the near term the negative side.
However, the minutes end with the RBA hinting at a wait-and-see approach noting that "interest rate sensitive parts of the economy had shown some signs of responding to these lower rates, which were well below their longer-run averages, and further effects could be expected over time".
"Noting that monetary policy was already accommodative as a result of the substantial easing of policy over the past 15 months, and that this stimulus was continuing to work its way through the economy, the Board judged that it was prudent to leave the cash rate unchanged at this meeting," concluded the RBA.
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Housing market has firmed following rate cuts: RBA February minutes

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Mixed-use development sites accounted for the highest number of properties listed for distressed sale in 2012 with the rising trend of distressed sales set to continue in 2013 - led by Queensland.
Distressed property listings surged 36% in the second half of 2012 on the back of 5,207 companies going into external administration in the first half of the year, according to a new report by Colliers International. 
Around 816 distressed properties were advertised for sale across the country in 2012, up by 5% from the 777 properties on the market in 2011.  
The second half of 2012 is expected to yield a similar number of company collapses (the monthly average to November is 900 compared with 883 in 2011) meaning a similar high number of distressed properties will be listed for sale by administrators and banks in 2013.
According to the Colliers report author Felice Spark, there was sharp spike in the number of distressed properties coming to market in the November – 177 properties compared with a monthly average of 68 in 2012 – as banks increasingly brought distressed assets to a more active market. 
While Spark expects a spike in the amount of distressed real estate coming to market in 2013, she says a market correction has taken place “with prices now having dropped as low as they can go to support sales”. 
“It is unlikely that market conditions will worsen in 2013, but also unlikely that we will see much improvement over the next 12 to 24 months. 
“With little change expected, now is as good a time as any to go to market. Recent distressed sales activity has revealed market interest from prospective buyers and prices holding strong,” she says. 
Development sites overtook industrial property in 2012 in terms of number of distressed assets on the market across Australia, followed by the industrial, commercial, residential and rural and agribusiness sectors. 
<img height="286" width="470" src="/images/stories/2013/02/distressedpropertyFeb19chart.gif" alt="distressedpropertyFeb19chart">
“While 2011 saw the number of distressed assets on the market increase across all property sectors over 2010; it was more of a mixed bag in 2012,” says Spark. 
“Three sectors, in particular, saw a big spike in the number of distressed assets coming to market; being development sites, rural and agribusiness, and mixed-use developments. 
"Pubs/hotels, retail and healthcare and retirement all saw a minor increase in distressed property," she says.
An example of a recent successful distressed development site sales ws a 1,271 square metre property <a target="_blank" href="https://www.realcommercial.com.au/property-industrial+warehouse-nsw-lurnea-500341419">at 124 Hoxton Park Road, Lurnea in Liverpool</a> in Sydney’s outer west, which sold above the reserve for $1.405 million in August last year.
It had previously sold for $700,000 in 2000 and had been listed for sale for $1.6 million in August 2007. 
The property, which is zoned for high density residential, was put up for mortgagee-in-possession sale after the owner had trouble re-financing his loan. 
On a state-by-state basis, Queensland continued to have the lion’s share of distressed property sales, increasing slightly from 2011 levels and maintaining an almost 50% share of distressed properties nationwide.  
Queensland saw a marginal increase of 3.5%, going from 382 properties to 395 properties, whilst South Australia saw an increase of 20 properties to 32 properties. 
Victoria witnessed a substantial spike during 2012 of 56%, going from 61 properties to 95 properties.
Spark says the banks have now begun pushing through, forcing properties to be put to market, with a trend towards secondary or regional-based property.
Industrial led the way in Victoria in 2012 representing approximately 40% of appointments.
NSW saw a decline in the number of distressed properties on the market, falling back slightly from 256 properties to 242 properties.
Conversely, the industrial, commercial and residential sectors all witnessed declines in the number of distressed properties on the market in these sectors.
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Distressed property listings set to spike in 2013 led by defaulting development sites: Colliers International

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

Joel Robinson

The Eveleigh brings house-like apartments to Broadbeach

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

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

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

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

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

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

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