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The large format retail property sector will likely not be able to sustain the strong growth trend of 2016 as weakening consumer demand for household goods is likely to hurt the sector in the near term, according to new research.
Last year saw a fall in vacancy rates at retail centres, while rental growth was the strongest since before the GFC, investment yields firmed on the back of record investment transactions, and double-digit total returns were recorded. But these buoyant conditions will not be sustained, says research firm BIS Shrapnel’s latest Large Format Retail Property report.
Report author Maria Lee, senior project manager at BIS Shrapnel, notes that the key drivers of consumer demand for household goods—which accounts for the majority of floorspace in large format centres—are either already weak or have started to weaken. Sluggish economic growth and subdued consumer sentiment are likely to continue for some time. 
Meanwhile, housing commencements and alterations and additions activity have peaked, while turnover of existing dwellings fell sharply in 2016. 
“We’re already seeing the effects in turnover data, which has slowed sharply in recent months” says Lee, qualifying that “the larger retailers and chains are holding up better, but they aren’t immune.” 
Chart below shows the slowdown in demand.
<a href="https://www.propertyobserver.com.au/images/2017/02/20/BISShrapnel-chart.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/02/20/BISShrapnel-chart.png" alt="">
Meanwhile, the closure of Masters and planned reconfiguration of most of its stores into large format centres with an internal mall will cause a spike in ‘new’ supply of centres. 
“There’s still a lot of uncertainty at this stage regarding the fate of the ex- Masters stores. However, if we take at face value Home Consortium’s plans, and allow for Bunnings to take some of the vacant stores, there could be up to 700,000 square metres of ‘new’ centre floorspace as well as new development on sites owned by Masters,” said Lee.
BIS Shrapnel says this represents several years’ demand even allowing for the ‘transfer’ of turnover from Masters to replacement retailers. The report cautions that, at a time of softening demand, the sector could have trouble absorbing the floorspace and forecasts rental growth to weaken. 
On a more positive note, the report predicts stronger consumer spending growth in the longer term and a continued expansion of the retailer pool that large format centres tap into. 
“The sector continues to evolve. Large format centres offer relatively cheap space that is attractive to a range of uses. Some centres are morphing into mixed-use, lifestyle or even convenience centres” says Lee. 
Overall, BIS Shrapnel forecasts internal rates of return of around 10 percent over a five or 10 year investment horizon. This compares well with other shopping centre types and property classes. 
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prateek24-ezbwHMbNAk

Large format retail property to take a breather after strong growth in 2016: BIS Shrapnel

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A waterfront residential development site on 11 hectares set in Sydney’s prestigious Eastern Suburbs has been listed for sale and is expected to sell for more than $280 million. 
Located off Anzac Parade in Little Bay, Little Bay Cove features more than 11 hectares of land including civil works complete along with masterplan development consent which allows for immediate commencement. All remediation, site works, roads, park landscaping and infrastructure have been completed. The site is fully serviced with all required amenities, including water, electricity and gas, according to a media release.
The sale, through an expressions of interest campaign launching February 28, is being managed by Knight Frank’s Tim Holtsbaum and Eugene Evgenikos along with JLL’s Ben Hunter and Sam Brewer.
Holtsbaum said the site is one of the last Eastern Suburbs coastal subdivisions available for development.
“We’ve seen some large residential site sale transactions occur nearby in the South Sydney market but nothing of this prestige, with the coastal lifestyle and beach views,” said Holtsbaum.
“We expect Little Bay Cove to generate significant interest from both local and offshore developers due to its unique characteristics. It is located just 20 minutes’ drive from the Sydney CBD, near all transport and amenity, and is nestled along Sydney’s iconic beaches, stretching from Bondi, Bronte, Coogee and out to Little Bay.”
Fronting Little Bay Beach, the site neighbours four of Sydney’s premium golf courses, including The New South Wales Golf Club, St Michaels Golf Club and the Coast Golf Club. Express bus and future light rail services provide convenient transport to the CBD.
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Residential site with approval in Sydney's Little Bay on sale with $280 million hopes 

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Developer Mirvac posted a 7 percent rise in profit for its first half ended December 31, capitalising on a record $3.1 billion of residential pre-sales, while its CEO Susan Lloyd-Hurwitz used the occasion to bat for a taskforce to tackle housing affordability.  
Mirvac said statutory profit increased to $508 million from $473 million over the comparable period, while revenue was up 17 percent to $1,36 billion. 
The company announced a half-year distribution of 4.9 cents per stapled security to unit holders and said it would deliver a growth of 9 percent to 11 percent for the full financial year.
CEO and managing director Lloyd-Hurwitz said the company had “delivered a solid set of results in the first half of FY17.”
In its results presentation, Mirvac said it secured future income with a record $3.1 billion of residential pre-sales, while settling 977 residential lots and was on track to settle over 3,300 lots in FY17. The majority of settlements are expected in the second half of the financial year that ends June 30, 2017.
On defaults, Mirvac said the default rate was 2% till January 31, with average price $675,000 per lot, although more than 70% defaults were re-sold with “financial upside”.
She was cited by The Australian as saying that an inclusive taskforce was needed to make housing more affordable. 
“Crisis is a strong word, but when Sydney is the second-most unaffordable city in the world I think it’s probably a justified term,” Lloyd-Hurwitz told The Australian. “It’s something we need to address holistically.”
Sydney was recently ranked second behind Hong Kong in terms of affordability for home buyers, in a study by Demographia. 
Earlier this week, former RBA governor Glenn Stevens was taken on board by NSW Premier Gladys Berejiklian to advise the government on housing affordability.
“We don’t build enough housing for people to come to Australia. There are a whole host of issues around planning, tax — a whole host of issues that need to be thought through,” Lloyd-Hurwitz said. 
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Mirvac posts solid first half results, CEO bats for housing affordability taskforce

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Buy an apartment in Brisbane and get guaranteed rental income for a year, 3 years or even more, scream ads by developers on various websites targeted to property investors.
Sounds like a good deal? But as the adage goes, if it's too good to be true, it probably isn't.
Promises of such guarantees are sometimes used by developers to lure investors to a weak market or masking an overpriced offer, warns a post on hotspotting.com.au.
CoreLogic's Cameron Kusher noted in a <a href="https://blog.corelogic.com.au/2016/10/differences-unit-supply-sydney-compared-melbourne-brisbane/" target="_blank">blog post </a>in October 2016 that "Brisbane is set to see the biggest uplift in total unit stock followed by Melbourne and clearly in more immature unit markets this carries a risk".  
He highlighted inner-city locations in Melbourne and Brisbane as carrying the most risk from an oversupply of units. If everything is built over the next 24 months, unit stock in Brisbane Inner will increase by 33.6%, it will rise by 33.3% in Inner-North and by 32.5% in Holland Park-Yeronga.
This contrasts with 21.1 percent for Melbourne City and 10.4 percent for Inner-City Sydney.
Without passing judgement on the ads or the claims, Property Observer found a few offering rental guarantees in Brisbane.
Polo on Kingsley, a collection of three-bedroom townhouses starting from $699,000 in the Brisbane suburb of Yeronga promise a 5 percent rental guarantee for 12 months. The project is being undertaken by Polo Development Group and marketed by McGrath Projects.
Another builder, Dwyer Quality Homes, which has projects in Brisbane, the Sunshine Coast and Gold Coast, is offering three-year rental guarantees.
It also has an FAQ section that explains the scheme and lists all the positives. The website says the income “gives you guaranteed rental income and ensures peace of mind with your new investment.”
Sometime back, Domain reported that apartments were released in a 45-unit, nine-storey block The Woodstore with a <a href="https://www.domain.com.au/news/rental-guarantee-for-investors-in-new-brisbane-project-20150408-1mg26y/">6 per cent rental guarantee</a> for 12 months for the first five buyers… check status of that…
The two-bedroom apartments start at $450,000 in the development in Chermside, 9 km north of the city’s CBD.
“Chermside has such a strong rental market, with a lot of demand for properties – especially new ones! – that this sort of rental guarantee is no issue for us at all,” Murray Thornton, managing director of DevCorp, was cited as saying by Domain. 
There are a number of rental-guarantee investment ads on Gumtree as well.
One such ad is for <a href="https://www.propertyobserver.com.au/https://www.gumtree.com.au/s-ad/brisbane-city/property-for-sale/sky-tower-cbd-tallest-building-rental-guarantee/1138569153" target="_blank">Skytower at 222 Margaret Street</a>, which will be Brisbane’s tallest building when completed. Apartment prices start at $471,000 and comprise one, two and three bedroom apartments. 
Another seller has advertised for the luxury <a href="https://www.propertyobserver.com.au/https://www.gumtree.com.au/s-ad/newstead/property-for-sale/5-rental-guarantee-luxury-inner-city-investment/1136778752" target="_blank">Newstead project</a> where apartments are available in one to three bedrooms. The advertised price is $450,000 and upwards, and there is a 5% rental guarantee upon settlement. 
<img src="https://www.urban.com.au/images/2017/02/16/BrisbaneCoreLogic.png" alt="">
Rental guarantees or a trap?
Terry Ryder’s <a href="https://www.hotspotting.com.au/news/be-careful-with-rental-guarantees">Hotspotting</a> outlines a scenario of the trap behind rental guarantees.
“Developers offer them when they're struggling to sell apartments at the prices they want,” the post says. 
This is how they work:
A developer has a block of 100 units and wants to sell them for $350,000. But because it’s an oversupplied market, their true value is only $300,000 and it will earn a rent of only $300 per week. At a sale price of $350,000, the investor's gross return is only 4.5%. 
Investors won't be drawn in by those numbers.
So the developer offers rental guarantees to lure investors. He keeps the pricing at $350,000 and offers a rental guarantee $400 per week for two years. This provides a return of 6%.
For an investor, 6% is attractive and he also see two years of income security. However, the developer will lease the unit for $300 because it’s the market rate and pay the $100 shortfall to the investor. This costs the developer a little more than $10,000 over two years.
But the developer has been paid $350,000 for a unit that's worth only $300,000. He's $40,000 in front. For 100 units, he's made an extra $4 million by selling units for more than they're worth.
But the real pain for the investor starts after the two-year agreement expires. The investor has to find tenants in the open market which is oversupplied and he will in all likelihood not get more than $300 per week.
The investor's return falls to 4.5% from 6% overnight. Under the developer's guarantee, the investor was earning $21,000 a year. Now he's earning less than $16,000.
To compound the pain, the value of the unit has fallen because the income has fallen. If the investor decides to sell, he's competing with developers selling new units with deals guaranteeing a 6% return. The investor has to match that if he hopes to sell.
At $300 per week rent, the unit is worth only $260,000 in the open market (at 6%).
The investor’s annual income has fallen $5,000 ($21,000 - $16,000) while at the same time his unit is worth $90,000.
 
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Rental guarantees for units in Brisbane... too good to be true?

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Commonwealth Bank’s half-year earnings have put it firmly on course for a record $10 billion profit for the full year, even though the lender recently restricted loans to refinancing for investors.
The bank’s profit rose 6 per cent to $4.9 billion in the first half, of which half came from the retail banking side, which is where the home loans are concentrated.
The bank advanced 140,000 new home loans, including 15,000 for first home buyers, it said in a media release.
On the recent move to restrict refinancing of investor loans to new customers, CBA chief executive Ian Narev told 2GB’s Ross Greenwood that the lender crossed the APRA’s 10 percent growth cap for lending to investors for the year and had to be peg it back.
“We went over the limit and we made it quite clear we went over the limit…we just had to take a couple of steps to make sure we remain within that regulatory limit,” said Narev.
Australian Prudential Regulation Authority chairman Wayne Byres had said late in 2016 that bank stability had been well served by the 10 per cent growth cap imposed on bank investor loan portfolios, with actual rates of growth around half that rate. 
On increasing interest rates for investor-only loans, Narev said rates are independent of the results, “simply because it responds to a regulatory requirement to keep our lending growth in investor loans below 10 pct a year”.
When pressed further about stopping refinancing of investor loans, he said the bank’s “No. 1 priority is that we’re there for existing customers” and that CBA is just “trying to be prudent in this environment”. He said new investor loans for refinancing wouldn’t be done through the broker channel.
The group’s statutory net profit after tax (NPAT) for the half year ended 31 December was $4,895 million, a 6 per cent increase on the prior comparative period. Cash NPAT was $4,907 million, an increase of 2 per cent on the prior comparative period. 
Its Board has announced an interim dividend of $1.99 per share, a 1 cent increase on the 2016 interim dividend. The interim dividend, which will be fully franked, will be paid on 4 April 2017 with the ex-dividend date being 22 February 2017. 
According to The Australian, CBA will be the second company in Australia to report a $10 billion profit for a year. Mining giant BHP reported $US15.9 billion in 2012.
In operating income terms, retail banking reported $3.9 billion in the first half, followed by business and private banking at $1.2 billion.
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CBA lending just to its own customers after investor lending exceeded APRA directive

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The popular Woodfrog Bakery has moved into Camberwell to open its seventh Melbourne shop in a deal brokered by Fitzroys. 
The bakery, which started its story from a vacant furniture shop in St Kilda, took the lease for ground floor space with extra first floor space at the rear of 570 Burke Road, Camberwell at $80,000 per annum net. 
The 81 sqm Camberwell site will join the bakery’s existing sites in St Kilda, Toorak, Kew, Melbourne CBD, Brighton and Doncaster. 
Fitzroys Chris James negotiated the five-year lease with options.
James said the bakery was keen to place itself in a high foot traffic location, with the property fronting the Camberwell Fresh Food Market, Target, Coles and Market Place car park, and positioned amongst the popular retail offerings of Burke Road.
“The large number of recently completed medium and high-density residential developments in the area, and high number of apartments in the pipeline are further underpinning the demand from for tenants for a presence on Burke Road.” 
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Melbourne's Woodfrog bakery leases into Camberwell 

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DEXUS Property Group’s statutory net profit fell more than 10 percent for the half-year ended December 2016 from the previous corresponding period, though the company raised its market outlook for the 2017 financial year.
The group, which invests directly in Australian office and industrial properties, said its development and leasing activities offset the impact of asset sales.
DEXUS’s underlying business (excluding trading profits) delivered FFO (funds from operations) per security of 29.7 cents, up 10.6% on the previous corresponding period. 
Statutory net profit after tax of $716.0 million was hurt by lower revaluations and lower trading profits which also drove down FFO, Adjusted Funds from Operations (AFFO) and distribution compared to the previous corresponding period, it said in an ASX release.
<img src="https://www.urban.com.au/images/2017/02/15/DexusFinResults.png" alt="">
The group said it settled on $688 million of asset sales, including the sale of 39 Martin Place, Sydney.
“We have significantly reduced our gearing as a result of the settlement of asset sales over the past six months,” said Alison Harrop, the chief financial officer. 
 <img src="https://www.urban.com.au/images/2017/02/15/DexusGearing.png" alt="">
Chief executive Darren Steinberg said: “Income growth from leasing activity and development completions during FY16 helped to offset the impact of recent asset sales, driving a solid underlying result.”
“We’ve progressed priority projects in our trading pipeline as well as opportunities to restock the future pipeline and we’re confident that the remaining forecast trading profits will be realised in the coming months, delivering on our FY17 target.” 
Dexus said it delivered “a strong” one-year total return of 13.9% across its office portfolio, helped by strong leasing deals in Sydney and gains from the sale of investment properties.  
It started construction of the core of 100 Mount Street, North Sydney and added new projects to the uncommitted development pipeline including 201 Elizabeth Street, Sydney.
Dexus has $22.7 billion of assets under management. The group manages an office portfolio of 1.7 million sqm primarily across Sydney, Melbourne, Brisbane and Perth. 
“While property fundamentals continue to improve in Sydney and Melbourne, we expect to see underlying valuation assumptions improving and further capitalisation rate compression for Prime properties over the next 12 months which will continue to support values in our key markets over 2017,” Steinberg said.
In summary, Steinberg was optimistic, saying Dexus has raised its market outlook for growth in underlying FFO per security from 3.0-3.5% to circa 4%, growth in FFO per security to circa 1% and distributions will be paid in line with free cash flow, delivering distribution per security growth of 3.5-4.5% for the 12 months ending 30 June 2017.
<img src="https://www.urban.com.au/images/2017/02/15/DexusPortfolio.png" alt="">
 
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Dexus first half profit falls 10 percent, hurt by lower revaluations

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Brisbane’s office market has crossed the low point in the cycle and is starting to show signs of a recovery, according to the latest office market report by Cushman &amp; Wakefield.
Queensland’s economic growth suggests tenant demand should continue to gather momentum, in spite of the fact that H2 2016 net absorption is estimated to be lower than the surprise H1 2016 result, the commercial real estate firm adds in its Q4 office market outlook.
Brisbane saw 190,000 sqm of new supply in 2016. Most recently 1 William Street (75,000 sqm) was completed in Q4, which is fully occupied by the Queensland government and largely represents the end of the current supply cycle with only the refurbished 310 Ann Street (18,400 sqm) scheduled for 2017. 
<a href="https://www.propertyobserver.com.au/images/2017/01/11/Q4BrisbaneEffectiveRent.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/01/11/Q4BrisbaneEffectiveRent.png" alt="">
<a href="https://www.propertyobserver.com.au/images/2017/01/11/Q4Brisbane-NetAbsorption.png" target="_blank">Click to enlarge </a>
<img src="https://www.urban.com.au/images/2017/01/11/Q4Brisbane-NetAbsorption.png" alt="">
There will be stock withdrawals of nearly 130,000 sim in 2017 leading to net-negative supply of 112,000 sqm over the year, says the report. In line with this, prime gross effective office rents are trending sideways. Following a 5.2 percent decline in 2015, rent decline moderated to 0.8 percent in 2016. 
Cushman &amp; Wakefield says its base case scenario of a U-shaped recovery in Brisbane looks set to continue, a view further bolstered by the results in its “Office leasing trends and outlook” survey in which respondents expected vacancy to decline to 14 percent over the next year. 
<a href="https://www.propertyobserver.com.au/images/2017/01/11/Q4Brisbane-KeyDeals.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/01/11/Q4Brisbane-KeyDeals.png" alt=""> <img src="https://www.urban.com.au/images/2017/01/11/Q4BrisbaneProjects.png" alt="">
Improvements to Queensland’s State Final Demand and strengthening commodity pricing provides upside potential for tenant demand. Queensland’s State Final Demand rose a modest 0.1 percent in the quarter ended September. “However, given the high level of vacancy, the market will continue to favour tenants over the near-term,” the outlook concludes. 
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Brisbane's office market showing signs of recovery: Cushman & Wakefield

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Melbourne’s appetite for Woolworths supermarket investments shows no signs of passing.
While the sale of Woolworths Glenroy for about $9.8 million was recently announced, an off-the-plan opportunity at Brunswick has just been listed.
Both were brought to the market through CBRE.
A group of local private investors has snapped up the freestanding Woolworths Glenroy for $9,750,000, reflecting a tight yield of around 4 percent.
Positioned in the northern suburb of Glenroy, the Woolworths supermarket has a remaining lease term of three years. 
The deal follows the sale of Woolworths Middle Brighton which transacted for $32,080,000, at a yield of 3.77 percent, in 2016.
CBRE’s Mark Wizel, Justin Dowers, Kevin Tong and Joseph Du Rieu steered the latest sale campaign. 
“The level of enquiry and interest that we experienced from buyers during the sales campaign was extremely positive, particularly given the short remaining lease term and the prospect of a decline in the turnover rent,” Wizel said.
Dowers said the rental agreement was based on a low base rental, with a significant proportion of the income derived from turnover rent. 
Although rival Coles Coburg North has impacted Woolworths Glenroy, Dowers said investors were ultimately attracted to the opportunity of owning a Woolworths supermarket only 16 km from the Melbourne CBD. 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/13/WoolworthsGlenroy.jpg" alt="">
Meanwhile, the first Woolworths investment opportunity of 2017 has also been listed. The Woolworths Metro supermarket, Brunswick will be sold off-the-plan and is estimated for completion in 2018.
Pace Development Group are set to sell the ground floor Woolworths Metro Supermarket.
The Woolworths Metro store at 808-818 Sydney Road, Brunswick, will service 86 residential apartments on the seven upper levels of the property. 
CBRE’s Victorian Retail Investments team lead by Mark Wizel, Justin Dowers and Joseph Du Rieu are looking after the sales campaign.
Duane Vella, commercial development manager at Pace, said; “Given the 86 apartments that will be constructed above the supermarket are now sold out, we are confident investors will be eager to secure the retail component as a long term investment.”
Vella said Pace has managed the project in partnership with Woolworths from design to completion which should appeal to the buyer market.
Dowers said there is an increased demand for highly secure retail investment properties being sold off the plan. In the past 18 months the market has seen the sale of Woolworths Launceston, Woolworths North Caulfield and a Bunnings in Yarrawonga all off the plan.
“The pending sale of Woolworths Brunswick is the first metropolitan supermarket in Victoria to be offered to the market since Woolworths Middle Brighton was sold for a record yield of 3.77 percent by CBRE in June 2016.”  
The property will be sold by way of an international public expressions of interest, closing in late March 2017.
 
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Investors make a beeline for Woolworths stores in Melbourne

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A growing regional economy, driven by rising tourism numbers and major projects, has Whitsundays Airlie Beach poised as a lucrative opportunity for property investors, according to real estate group PRDnationwide.
All the key drivers of a rising property market are in place and properties are selling at the fastest pace in nine years, says PRDnationwide Whitsunday principal Christie Leet.
“Activity in the property market picked up to a good pace in the second half of 2016, pushing the Whitsundays into a balanced market and ready for another major upswing (after nine years of weak prices),” said Leet.
“The Australian dollar has stabilised at a level that entices overseas visitors and we have domestic visitors taking advantage of low airfares and increased capacity.
“Properties are selling quickly again and the excess housing and rental stock has all but vanished.”
Also, land is limited in the Whitsundays, with much of it taken up by Conway National Park and the last beachfront blocks that can be developed on the Whitsunday Coast are now under construction at Funnel Bay.
“With major construction and refurbishment projects under way or about to begin, there will be even greater demand for housing as construction workers move into the region,” he said.
The Whitsunday Coast Airport has an expansion project on the table with a $59 million masterplan, including plans for the introduction of international flights.
Redevelopments at Daydream Island Resort ($30 million) and South Molle Island ($200-$300 million), as well as a $600 million redevelopment at Lindeman Island Resort, are fuelling jobs growth on the Whitsunday Coast.
Leet said the start of construction at the Adani Carmichael Coal Project, a $16 billion investment in the Central and North Queensland economies, and the reopening of the Collinsville mine, which is in the Whitsunday Shire, would provide even greater demand on housing in the Whitsundays.
“The workforce will be fly-in-fly-out and we have seen in the past that miners like to set up a home base where the family can enjoy the best North Queensland has to offer,” he said.
“Thousands of miners and their families will also be looking for somewhere to relax and enjoy their time off without having to travel too far.”
Tiger Airways is adding 110,000 extra seats into the Whitsundays from March and Jetstar has announced they will add another 65,000 seats into the Whitsundays from April.
Census 2011 results from the Australian Bureau of Statistics indicate that the construction, transport and utilities sectors employ the most permanent residents in the region combined.
According to Queensland government estimates, the Whitsunday region had a resident population of 34,016 as at June 2013. Medium population projections suggest the region may experience average population growth of 2.1% (or 691 persons) per annum over the next two decades, with an estimated resident population of 49,700 persons by the end of 2036. Based on an average household size of 2.4 persons per residence, this level of population growth may yield demand for an additional 288 residential dwellings per annum over the same period. With the average number of new dwelling approvals for the last 5 years at 173p.a, this leaves an expected shortage of 115 dwellings per year. This shortage will push house, land and rental prices upwards as the demand increases.
“The lifestyle benefits of the Whitsundays, represented by the Great Barrier Reef, the islands, beautiful beaches (including one of the world’s best), and natural environment, are well documented and have helped the region become the number one Great Barrier Reef destination.”
But it is the underlying strength of tourism and the local economy, combined with the timing of the market, that is behind the sudden move in the property market.
“The all-important construction industry is ramping up with key projects already under construction or about to start but the low vacancy rates are creating the demand needed for more accommodation projects to come online,” Leet said.
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Whitsunday's growing economy puts property back in overdrive: PRDnationwide

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

Joel Robinson

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

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Castle Hill, the longtime hub of the Hills District, has been one of the major beneficiaries of Sydney's Metro expansion, with improved connectivity helping drive continued population growth, development and buyer demand across the Hills District.

But despite that growth, the suburb has seen relatively few major new apartment projects brought to market over the past 18 months.

Hills District developer Reve Group is looking to fill that gap with <a href="https://www.apartments.com.au/new-apartments/nova-r-ve-castle-hill-2-garthowen-crescent-castle-hill-nsw-2154">Nova Rêve</a>, a major new mixed-use precinct on the corner of Garthowen Crescent and Old Castle Hill Road, a short walk from Castle Hill Metro Station and Castle Towers.

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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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Nova Rêve arrives as Reve Group bets on Castle Hill's next growth phase

A collection of just 25 large-format apartments and penthouses overlooking Goodwin Park is entering the Coolangatta market, with <a href="https://www.apartments.com.au/new-apartments/marea-residences-coolangatta-27-27a-dixon-street-coolangatta-qld-4225">Maréa Residences</a> combining a low-density, residential-only approach with uninterrupted park and Pacific Ocean outlooks.

Located at 27 Dixon Street, Maréa comprises three and four-bedroom residences alongside a limited number of dual-level penthouses, with the project positioned between Goodwin Park and <a href="https://www.apartments.com.au/developments/coolangatta-qld-4225">Coolangatta</a>’s coastal precinct.

Construction has commenced, with completion currently estimated for late 2027. Three-bedroom residences are priced from $1.8 million.

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The project has been designed around its northern outlook across the park, with the building’s architecture, landscaping and material palette intended to establish a connection with the neighbouring green space. The residences have been configured to maximise natural light and views across Goodwin Park towards the ocean.

Inside, the material palette incorporates timber, stone and brushed brass, complemented by curved detailing and ambient lighting. Kitchens and bathrooms carry the same natural material approach, while residences also include basement parking, storage and lift access.

Maréa’s penthouses are arranged over two levels and include private pools, adding another layer to the project’s focus on larger-format apartment living. Across the development, residences are configured with three or four bedrooms rather than the broader mix of smaller apartment types commonly found in larger projects.

[smartcode_project:default project_id=150999 project_image_fid=374010]

Resident amenity is concentrated at rooftop level, where landscaped entertaining terraces and pools take advantage of elevated views across Coolangatta and the Pacific Ocean.

The project has so far been particularly well received by local owner-occupiers and downsizers, according to Urban Activation Property Sales and Marketing Director Matt George, with the residential-only format, construction quality and northern park outlook among the features resonating with purchasers.

“The uninterrupted northern aspect overlooking Goodwin Park has been a key point of difference, with buyers attracted to the sense of serenity and open space the park provides, while still enjoying easy access to the ocean and being within walking distance of the lifestyle and amenities Coolangatta has to offer,” George said.

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“The combination of high-quality construction, a residential-only building, park outlook and proximity to the beach has resonated strongly with the local downsizer market.”

The Dixon Street address is within walking distance of Coolangatta Beach and the broader southern Gold Coast coastline, including the surf breaks at Snapper Rocks and Kirra. Coolangatta’s cafés, restaurants and retail are nearby, while Gold Coast Airport is also within close proximity.

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Maréa Residences brings parkside apartments to Coolangatta

Melbourne developer PDG has secured Victorian Government approval for its $1.5 billion Southbank development <a href="https://www.apartments.com.au/new-apartments/the-one-1-queens-bridge-street-southbank-vic-3006">The One</a>, clearing the way for the long-dormant riverfront site opposite Crown to finally be developed.

The Minister for Planning has approved the project at 1-29 Queens Bridge Street, with the Department of Transport and Planning issuing the planning permit following its assessment.

The approval will allow PDG to develop the prominent 5,059 sqm site with a major mixed-use tower comprising premium apartments, including branded residences, a luxury hotel and boutique office space.

PDG acquired the site in late 2024, with its position directly opposite Crown's main entrance and near Melbourne's Arts Precinct making it one of Southbank's most significant remaining development opportunities.

<img alt="PDG" data-entity-type="file" data-entity-uuid="3933013e-6332-4386-b9be-089df05caf17" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.22%E2%80%AFAM.png?VersionId=sITIgBqDL0N3VNSMwWEmF5UA.uvcsRyu" />

Designed by COX in collaboration with ODO and PDG, the tower's architecture draws on the movement of the Yarra River, with six vertical pleats running the height of the sculpted facade.

The project will also see the heritage-listed Queens Bridge Hotel restored and incorporated into the development&nbsp;with new hospitality and public uses, including a rooftop venue.

A significant component of The One will be its residential amenity.

More than 5,000 sqm of resident facilities will be delivered across a single level, making it one of the largest consolidated residential amenity offerings proposed in an Australian apartment development.

The planning approval also incorporates a major upgrade of Queensbridge Square, which PDG will deliver in partnership with the City of Melbourne.

<img alt="PDG" data-entity-type="file" data-entity-uuid="73167fcd-1031-4b6f-a408-a064cfe45ed1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.17%E2%80%AFAM.png?VersionId=Pf1AEWxw6SNmBqR0zQW5lyEze.MtxgFp" />

The existing square will be revitalised as a new civic and pedestrian space along the Yarra River, strengthening the connection between the project, Southbank and the riverfront.

PDG Founder and Managing Director Vince Giuliano said the approval represented a major milestone for a site which has remained largely underutilised for more than 15 years.

“This is the most significant Planning Permit approval Melbourne has seen in recent years,” Giuliano said.

“For more than 15 years, this site has remained underutilised. This approval enables us to deliver a project that will contribute meaningfully to the revitalisation of Southbank, restore and reactivate an important heritage building, and create a new civic and hospitality destination for Melbourne.”

The latest approval follows an earlier planning permit issued by the City of Melbourne covering demolition works across part of the site at 9-29 Queens Bridge Street. Those demolition and early works are already underway.

PDG has also started generating early interest in the residential component from owner-occupiers ahead of a planned public launch in early 2027.

PDG secures approval for $1.5bn Southbank apartment development, The One

Local developer Harridan is seeking to turn its Woolloongabba apartment project into the first stage of a broader transformation of Burke Street, using a new 16-storey mixed-use building to establish a greener pedestrian connection toward the rapidly evolving Boggo Road transport and knowledge precinct.

The South East Queensland developer has filed plans for 154 apartments on the <a href="https://www.apartments.com.au/new-apartments/4-burke-street-woolloongabba-qld-4102">southern side of Burke Street</a>, where its proposal has been designed alongside a wider vision by LatStudios for the street.

That vision positions the southern side of Burke Street for buildings of 15 storeys and above, while envisaging lower-rise development of up to five storeys on the northern side to transition into Woolloongabba's existing character housing. It also proposes wider pedestrian verges, deep planting, new street trees and upgrades to the pedestrian approach to Boggo Road Station.

The Harridan development itself has been designed by Brisbane-based Arqus Design and will comprise 154 apartments across 16 storeys. The mix is weighted heavily toward two-bedroom apartments, with 121 proposed alongside 10 one-bedroom and 23 three-bedroom residences. There will typically be around 14 units per floor.

A lower-ground car park and three podium levels will accommodate 156 resident parking spaces, along with visitor and commercial parking. There will also be 154 resident bicycle spaces and 40 visitor bicycle parks.

&nbsp;

Harridan is a family-owned developer and part of the Holmwood Highgate Group, with more than three decades of development activity across South East Queensland. Its portfolio spans residential, commercial and industrial property, with current residential projects including Riverbank on Byron in Bulimba, Esperance Residences in Carina and The Precinct at Kinross Road in Thornlands.

Wooloongabba has been popular for apartment developers, particularly since the announcement of the 2032 Summer Olympics games in Brisbane.

While there have been a lot of development applications, it has failed to materialize into real supply.&nbsp;

Sarazin has been the major player in the area. They are under construction at Murcia Residences, on the fringe of East Brisbane and Woolloongabba. They have just launched <a href="https://www.apartments.com.au/new-apartments/the-stanley-residences-woolloongabba-8-trafalgar-street-woolloongabba-qld-4102">The Stanley Residences</a>, in Woolloongabba on Trafalagar Street. They also have Nuage coming soon on the nearby <a href="https://www.apartments.com.au/new-apartments/nuage-woolloongabba-14-wellington-road-woolloongabba-qld-4102">Wellington Road</a>.

Prateek Chatterjee

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