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MAB Corporation has listed a service station and convenience store complex with top brands as tenants, close to the Melbourne CBD, with price expectations in the mid-$20 millions.
The West Gate Express property will be sold through expressions of interest closing July 14, subject to leases to Viva Energy Australia (Shell/Coles Express), Hungry Jack’s and Red Rooster on 15-year terms.
The total net income from the freeway style fuel/food complex is around $1.41 million.
The listing agents are Savills’ Chris Jones, Clinton Baxter and Ben Hegerty, with Dawkins Occhiuto’s, Andrew Dawkins and Walter Occhiuto.
Jones said it was difficult to put a price on the property given the fact that it could not be replicated and that there had been no sales of comparable investments.
Developed by MAB, the new complex comprises nearly 700 square metres of buildings and 1,200 square metres of canopy on a 10,000 square metre site. Frontages to the West Gate Freeway and Cook Street provide exposure to more than 180,000 vehicles per day.
"This is an exceptional opportunity on one of Australia’s busiest roads with an extraordinarily secure lease profile to several high profile national and international tenants and very strong underlying land value," said Jones.
Baxter said the property also offered substantial depreciation benefits, low projected capital expenditure, and a tenancy diversity which minimised risk profile.
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MAB’s West Gate servo in Melbourne on the market through Savills

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The downturn in Perth’s office market could last for at least two more years, with the CBD vacancy rate yet to peak, according to a grim forecast by research firm BIS Shrapnel. 
Prime net stated rents are forecast to fall by a further 19% and net effective rents by a further 23 percent. Rents will stay depressed for the remainder of this decade. 
Average stated rents are not expected to regain current levels over the next 10 years, according to some of the key findings of BIS Shrapnel’s research. 
The research contrasts with some commentators’ views that the Perth CBD office market is close to the bottom of the cycle. The CBD vacancy rate has already blown out to around 22 percent from just 4 percent in 2012, prime net stated rents have fallen by more than 20 percent, and effective rents have fallen by 60%. With the volume of new completions slowing down, the argument is that the market will start to recover. 
Not so, says BIS Shrapnel. The next two years will be rocky for the Perth office market. 
Demand for office space in Perth is closely tied to investment and in particular, resources investment — both in terms of the resources companies themselves and those who service them. The problem is that the downturn in resources-related investment is not over yet. 
BIS Shrapnel estimates that Western Australia is less than 40 percent through a near 70 percent decline in engineering construction. Whilst investment in iron ore has been falling for a number of years, the decline in oil and gas investment is just beginning. As mega projects (such as Gorgon 1st to 3rd train and Wheatstone) are completed and not replaced by projects of similar value, this will contribute directly and indirectly into further falls in employment and demand for office space. 
“Falls in resources investment will swamp the positives for office employment coming from increased mining production” says Lee Walker, senior project manager at BIS Shrapnel. 
The completion of Woodside’s new 55,000 square metre headquarters at 98 Mounts Bay Road in 2018 is expected to push the office vacancy rate even higher to an estimated 24 percent by June of that year. 
“Rising vacancies and increasing competition to secure tenants will put further downward pressure on market rents” says Walker. 
Average prime net stated rents are expected to fall by close to 20 percent over the next two years, with effective rents forecast to fall by 23 percent—putting the peak to trough fall in effective rents at nearly 70 percent. 
“It’s too early to call the bottom of the cycle. There’s more pain to come for building owners. The balance of power in leasing negotiations will clearly favour tenants over the next few years” concludes Walker.
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Downturn in Perth office market far from over: BIS Shrapnel

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Australia’s cities may witness a retail renaissance as governments invest in public transport infrastructure like the light rail which is likely to support the expansion of retail outside of the core CBD areas, says new research by real estate firm Colliers International.
Seasonally adjusted national retail sales data released by the Australian Bureau of Statistics grew at 3.6 percent year on year, just below the rolling 10-year average rate. 
Given the rotation toward the services-orientated sectors, it’s unsurprising that retail sales are strongest within the south eastern states, according to the research.
New South Wales and Victoria, now boast annualised growth rates of (4.95 per ent year on year) and (4.30 percent year on year) respectively, well above the national average. Retail sales growth in resource orientated economies of Queensland and Western Australia are less impressive at just (1.2 percent year on year) and (2.04 percent year on year) respectively.
Retail market conditions have been mixed across states, reflecting in part the ABS sales data trends, according to Michael Bate, head of Retail and national director at Colliers International.
“Within the CBD markets, our proprietary Colliers Edge data from Quarter 1 in 2016 (1Q16) suggests that rental growth has been the strongest in Sydney while incentive levels across almost all cities has remained broadly unchanged. 
“CBD sales activity confirms this trend, with cap rates remaining the sharpest in Sydney and Melbourne. However, we note that all CBD’s have experienced cap rate compression on an annualised basis.
“Going forward we expect apparel /department stores to maintain momentum and we should see some growth in cafes /restaurants as the impacts of the lower dollar and increased tourism take hold.
“The Light Rail really is a game-changer, especially for Sydney CBD retailers and harks back to the city’s glory days when trams connected shoppers with a network of department stores.
“Department store retailers like Marcus Clark &amp; Co., Waltons, Anthony Hordern &amp; Sons and Mark Foy’s ruled Sydney’s CBD up until mid-last century. In the CBD core alone there were around 18 department stores connected by Sydney’s network of trams.
“Fast forward to today and with retail vacancy at negligible levels, the requirement for larger floor space in excess of 2,000 sqm and significant growth in white collar employment retailers will now be forced to look outside the core of the CBD to the north at Circular Quay and south towards Central Station. The backbone of this retail renaissance is light rail, increasing connectivity between outlets and facilitating the necessary foot traffic to support new retailers” he continued.
Sydney’s transformation has already begun with construction of the light rail currently underway on George Street and other areas adjacent to the CBD. The light rail is being supplemented by the Sydney Metro project that will extend from Sydney’s North West, through the CBD and then out to the South Western corridor. Both projects are expected to open for initial operation in 2019.
Melbourne’s well-integrated tram system is already in operation but there is further development afoot. Currently the City Loop rail network is running at capacity, so to optimise the efficiency of CBD rail transport, the Metro Tunnel will traverse the City Loop, allowing more trains to run into, and out of the city. The project will incorporate five new underground stations, with two of these located in the CBD. Construction will take place between 2018 and 2026. 
In Queensland, a plan for a proposed $1.54 billion Brisbane Metro was revealed in January this year, while the Queensland government has labelled the Cross River Rail as its highest priority infrastructure project. Both rail projects are aimed at increasing overall CBD transport efficiencies, however, funding for both projects has not yet been finalised. 
In the Gold Coast, stage 1 of the light rail project has been completed, with stage 2 currently under construction. Stage 2 will connect the existing light rail network in the south to Helensvale station. 
In Perth, the Metro Area Express (MAX) is a proposed high capacity service running from the CBD to Mirrabooka in the north with the objective of reducing traffic congestion. Construction will commence in 2019 with completion estimated to occur in late 2022.
The reintroduction of light rail systems in Australia’s CBDs will not only alleviate congestion, it will facilitate the growth of retail precincts as the demand for amenity and retail sites increases.
“Over the past 5 years, we have witnessed the introduction of many offshore brands to our CBDs as the tastes of domestic consumers evolves. Brands such as Uniqlo, H&amp;M, Zara and Topshop are not asking for 150m of space, they’re asking for 1,500sqm or more, often over multiple floors” said Bate.
Nationally, investment volumes have risen swiftly in the 2016 calendar year to date and now sit at just under A$3.3 billion. Although this is still a long way off the volumes of 2015, investor demand for retail assets remains strong.
“The decision by institutions like Vicinity Centres and Blackstone to recycle capital has lifted overall transaction volumes,” said Lachlan MacGillivray, head of Retail Investment Services at Colliers International.
Shopping centre dynamics are more diverse, although it appears that across centre categories, rental growth was weakest in Perth.
Data through to 1Q16 suggests that shopping centre incentive levels have moved a little higher, particularly within the sub-regional category although the quantum of movement remains in the low single digits. 
Shopping centre cap rates compressed across all cities and categories on an annualised basis with the only exception being Perth’s regional centres where there was no movement over the year to 1Q16. Across centre categories cap rates are generally sharpest in Sydney in Melbourne while remaining higher in Perth and Adelaide.
“Market conditions also augur well for the retail sector more generally. Consumers will continue to benefit from record low interest rates as the RBA strives to support our economic transition from mining towards services. Additionally, discretionary spending will be supported by oil prices that are well below 2014 highs, even with the recent rally back towards the US$50 mark” he continued.
According to Andrew Johnston, national director of Retail Valuations at Colliers International, the national supply of retail floor area would increase from 429,000 sqm in2016 to a peak of just over 580,000 sqm in 2017. 
“This supply is concentrated to shopping centres and large format assets acrossNSW and Victoria. Overall retail supply levels taperfrom 2017 onward with 500,000 sqm, 153,000 sqm and 74,000 sqm being delivered in 2018, 2019 and 2020 respectively. Supplyis weighted toward shopping centres, with Queensland and NSW being the main recipients in 2018”.
Johnston went on to say that large format retail experienced some rental growth with the strongest annualised gains taking place in Sydney and Adelaide.
“Incentives over the year have remained broadly stable although there have been slight increases in Melbourne (+3%y/y) and Perth (+4%y/y). Large format cap rates have compressed further with the strongest activity taking place in Sydney” he said.
OUTLOOK
Despite some high profile corporate missteps occurring over the year, and some sluggish economic data releases, we caution from adopting a gloomy outlook for retail. Lower for longer interest rates and subdued fuel prices relative to 2014 will continue to support discretionary spending. 
Additionally the economic rotation toward services and a lower Australian dollar should support retail sales in the south eastern states and those areas exposed to the tourism sector. 
The spatial demand from international retailers together with CBD transport infrastructure development should lead to rental growth over time. On the investment side, the demand for assets remains high as evident in recent transactional activity. The key challenge looking forward is simply the lack of stock availability coming to market.
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Game changer light rail to breathe new life into CBD retail: Colliers

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Hoteliers the Grove family have bought back The Indian Ocean Hotel in Western Australia’s Scarborough from the receivers, shortly after it was put up for sale.
The family acquired it for an undisclosed sum, but it had been offered for about $18 million on a 7 percent yield when first put on the market more than a year ago, according to a report in The Australian Financial Review. 
The 59-room, 3.5-star hotel on Hastings Street in the city's north-western suburbs was being marketed by CBRE Hotels’ Ryan McGinnity and David Kennedy under instruction from the receivers and managers appointed, HLB Mann Judd (Insolvency WA). 
The marketing campaign closed on May 12.
The five-level, 59-room hotel includes Indi Bar and Bistro, and has hosted some of Perth’s best live music over the past two decades, including Rolling Stones, The Waifs, John Butler and Dave Hole.  
The hotel, built in 1972, was placed in the hands of receivers in April after the death of majority owner Bill Grove, said the AFR report. 
It was originally called the White Sands Hotel. The Grove family took over as managers in 1985 and renamed it the Indian Ocean Hotel in 1990.
Hotel owner Andrew Grove and CBRE’s selling agents declined comment to the AFR, but the paper cited a source close to the family as saying that "The property and business is now back in the hands of the family who have owned the property for over 30 years” and they are “excited to be in control of the business and property again”.
Located within the Metropolitan Redevelopment Authorities’ $57.4 million Scarborough Redevelopment Area, the Indian Ocean Hotel offers potential for future development, with a residential 160 zoning and additional special use as hotel. 
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Grove family buy back Indian Ocean Hotel in WA's Scarborough

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A standalone retail and residential property in Kensington on the north-west fringe of Melbourne’s CBD is up for auction with expectations of more than $850,000. 
The 513 Macaulay Road property comprises a solid brick shop and dwelling of 136 square metres on a 103 square metre site zoned Commercial 1 with frontage to Macaulay Road and rear access via La Nauze Lane. 
It will be auctioned on June 30 through Teska Carson. The listing agents are Anthony Choi and Fergus Evans.
The retail and upstairs components have the potential to be accessed separately providing the ability to create separate tenancies.
Evans said he expected strong interest from investors looking to add a city fringe asset to their portfolio, and from owner-occupier/investors looking to move into the area.
“With interest rates low and returns from other asset classes somewhat less attractive we are seeing the smaller investor and self-managed super funds enter the market in much higher numbers and it’s properties such as this one in Kensington that have been prominent in sales results,’’ Evans said.
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Shop and dwelling in Melbourne’s Kensington to go under hammer

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A cafe/eatery in Melbourne’s Mulgrave will go under the hammer at Burgess Rawson auction on June 29.
The <a href="https://www.burgessrawson.com.au/buying/VIC/East/Mulgrave/Retail/3P1317#.V2ale1fwzow" target="_blank">7/2 Stadium Circuit and Oval Concourse</a> shop has a building area of 257 sqm including mezzanine, with a capital intensive tenant fitout.
The tenant is on a secure 12-year lease plus options through to 2028.
The lease comes with fixed 4 percent increases and the lessee pays the usual outgoings.
The property includes dual alfresco areas and comes with an exclusive seven-day licensed business. 
Waverley Park is a Mirvac development with 1,400 dwellings, 3,500 residents and Hawthorn Football Club (AFL) corporate headquarters and training grounds.
Its rental income was $103,415 pa as at Nov 2016.
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Cafe in Melbourne's Mulgrave up for sale at Burgess Rawson auction

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Coles has placed its newly developed Coburg North Village shopping centre — anchored by a flagship Coles Supermarket — in Melbourne, on the market through Savills.
The 6,283 square metre GLA centre, on the corner of Gaffney and Sussex streets, will by sold by expressions of interest closing July 13.
The deal includes a new 15-year lease to Coles and Liquorland with the property earning an estimated $1.9 million per annum.
According to marketing agents Pat De Maria, Tom Forrest and Steven Lerche, the complex is expected to attract strong local and off-shore interest due to the appeal of retail investments.
Retail property transactions are currently running at $7 billion to $8 billion a year, bolstered by off-shore and institutional investors and compressed yields, according to Savills’ research. 
“The limited availability to purchase quality retail investments, and the high level of investment demand has intensified competition for available assets,’’ De Maria said.
The centre opened in August 2015 and has a flagship full-line ‘market style’ Coles Supermarket and Liquorland of 4,175 square metres. 
There are 15 other retailers, including a medical centre and pharmacy.
Forrest said the centre benefitted from a large main trade area accommodating more than 46,000 residents and was forecast to grow to 52,050 by 2026.
 
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Coles puts flagship Coburg North Village in Melbourne on market

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Construction continues to be the mainstay of China’s economy -- flowing through to heavy industries such as steel and cement -- but the rebound is not sustainable, according to NAB's latest commentary on the country's growth outlook.
The NAB Group Economics report titled China’s economy at a glance, says new construction starts rose by 16 percent year-on-year (yoy) over the first five months of the year – with lower growth in May than March and April. But May's slower growth was largely due to base effects.
NAB says the construction rebound is not sustainable, with recovery in house prices largely driven by policy relaxation, loose credit and the poor performance of alternative investment options for individuals – re-inflating the property bubble that had previously deflated to a degree across 2014 and 2015.
Among other economic factors, growth in industrial production was unchanged in May at 6 percent yoy – in line with market expectations.
Fixed asset investment was softer in May, with trends mixed at a sub-sector level – with an acceleration in real estate investment, while investment in manufacturing continued to trend lower.
China’s trade surplus widened in May to US$50 billion (from US$45.6 billion previously) due to a month-on-month increase in exports. Price effects continue to influence trade values – with commodity imports increasing strongly in May – particularly construction related iron ore and copper.
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Construction still drives China’s growth but sustainability concerns remain: NAB

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NSW's centres of Bathurst/Orange have been a rising market for houses while units are at the start of the recovery cycle, according to valuation firm Herron Todd White's property clock -- a simple broad brush means of suggesting where property prices are and what direction they're headed. 
Like Sydney, the larger centres of Bathurst and Orange include a collection of suburbs. Surrounding the established areas and retail districts, the suburbs have their own characters as a result of previous, current, and planned development.
Google Maps shows the localities around Bathurst including Gormans Hill, Kelso, Robin Hill, Llanarth, Windradyne and Eglinton. Around Orange there is Glenroi, Warrendine, Calare and Bletchington. Neither of these is an exhaustive list.
The suburbs compete and can exceed in terms of land value with central localities, particularly if they have, or plan to have, large modern houses and good amenities. The variability, and sometimes the inferiority, of older central development can hold those areas back. In addition the market power of families who on average prefer a modern house and surroundings, as opposed to the relative market power of retirees and students who, for example, prefer to be closer to town, evens out the market.
In terms of investment, student-specific accommodation has reduced the demand and volatility for central accommodation in the general market, while incomes are a determinant of what can be achieved in the suburbs. 
Property Observer looked up recent sales in some of the fringe suburbs such as Gormans Hills (Bathurst) on www.realestate.com.au.
1. The median house price in Gorman Hills is $295,000, according to CoreLogic RP Data. No data was available for units. Among the recently sold was a four-bedroom house at <a href="https://www.realestate.com.au/property-house-nsw-gormans+hill-122431910" target="_blank">46 Fish Parade Gormans Hill NSW 2795</a> for $275,000.
 
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2. The median house price in Eglinton was $365,000, according to CoreLogic RP Data. As an example of recent sale, a three-bedroom house at <a href="https://www.realestate.com.au/property-house-nsw-eglinton-121180614" target="_blank">25 Cottonwood Drive Eglinton NSW 2795</a> fetched $355,000.
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Fringes of Bathurst and Orange can compete with central locations on land value: HTW

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Industria REIT has sold its 7 Brandl Street, Brisbane Technology Park, for $25.5 million to a domestic buyer.
The sale was negotiated CBRE agents Mike Walsh and Peter Court who described it as a well leased investment grade product. 
The national marketing campaign delivered a total of six offers upon close which was further improved to a cash unconditional position from the successful purchaser.
Offers also came from two offshore parties presenting sharp bids at close of the campaign.
 
Peter Court said he expects continued widespread interest from ‘new’ entrants into the Brisbane market across a range of asset classes which bodes well for 2016 transaction volumes.
The sale of 7 Brandl St in the Brisbane Technology Park for $25.5m was above the book value of $23.15m (c8.4% cap rate). 
The asset has a 5.2 year weighted average lease expiry with a new lease and lease extension completed in 2H16 with Fujitsu (the asset was 88% occupied at December 2015). 
Settlement is due on 31 July 2016 with proceeds to be used to pay down debt.
In 2014 Industria REIT (ASX code: IDR) sold 53 Brandl Street, Brisbane Technology Park for $10.25 million after an unsolicited offer significantly above the 30 June 2014 book value of $9.20 million. 
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Industria REIT sells Brandl Street in Brisbane

Roseville is poised for a wave of new apartment development following the NSW Government's rezoning of land around Roseville Station under its Transport Oriented Development program.

The new planning controls have unlocked significant development potential within walking distance of the station, with a number of sites expected to be amalgamated and redeveloped in the coming years as developers seek to take advantage of the increased density allowances.

One of the more restrained developments in the precinct, and set among the first to be delivered having commenced well before the recent changes, is Hyecorp's Juliet. The boutique apartment project is already well under construction and remains on track to welcome residents by the end of the year, offering a markedly different proposition to many of the larger-scale developments now likely to emerge across the suburb.

[smartcode_project:default project_id=7395 project_image_fid=278194]

<a href="https://www.apartments.com.au/new-apartments/juliet-roseville-64-pacific-highway-roseville-nsw-2069">Juliet</a> will comprise just&nbsp;34 one-, two-, and three-bedroom apartments opposite Roseville Station. For Hyecorp, which has delivered projects across Sydney's Lower North Shore for more than three decades, Roseville presented a rare opportunity to address a growing gap in the market.

"<a href="https://www.apartments.com.au/developments/roseville-nsw-2069">Roseville</a> has long been one of the North Shore's most tightly held and desirable suburbs, offering a unique combination of village charm, established greenery, excellent transport connections, and proximity to some of Sydney's best schools and lifestyle amenities," Hyecorp said.

"We recognised a growing demand from local homeowners seeking to downsize without leaving the community they have built their lives around. The location presented a rare opportunity to create homes that cater specifically to that buyer profile."

[smartcode_project:default project_id=7395 project_image_fid=278196]

The six-level development has been designed by <a href="https://www.apartments.com.au/architects/pbd-architects">PBD Architects</a> as a collection of residences that feel more like homes than apartments. The brief centred generous floorplans, abundant natural light, quality finishes, and strong connections to outdoor space.

PBD Architects drew inspiration from Roseville's established garden suburb character, creating a building that sits comfortably within its surroundings rather than dominating them. The architecture incorporates natural materials, soft forms, layered landscaping, expansive balconies, and generous setbacks to strengthen the connection between residents and the suburb's leafy environment.

"The focus was on designing spacious, house-like residences for discerning owner-occupiers and downsizers who wanted to remain on the North Shore without compromising on comfort, privacy, or design," PBD said.&nbsp;

"Every apartment was to feel considered, timeless, and highly functional."

[smartcode_project:default project_id=7395 project_image_fid=278195]

Inside, residences feature engineered timber flooring, stone kitchen benchtops and splashbacks, integrated Fisher &amp; Paykel appliances, ducted air conditioning, and large outdoor entertaining areas designed to take advantage of district and treetop views.

Residents will also have access to a rooftop barbecue and lounge area, alongside practical amenities including parcel lockers, EV charging capability, bicycle storage, a dog wash bay, and a basement car wash facility.

The majority of purchasers so far have been local owner-occupiers from Roseville, Lindfield, Chatswood, Killara, and the broader Upper North Shore, many of whom are transitioning from larger family homes.

"Buyers are looking for spacious, house-like apartments that allow them to downsize without feeling like they are sacrificing comfort or functionality," Hyecorp noted.

"They value large kitchens, generous living areas, ample storage, quality finishes, secure parking, lift access, and low-maintenance living."

[smartcode_project:default project_id=7395 project_image_fid=278204]

Juliet sits directly opposite Roseville Train Station and within walking distance of Roseville Village, while Chatswood's retail and dining precinct is only minutes away. The development is also surrounded by some of Sydney's most established schools, including Roseville College, Ravenswood, Pymble Ladies' College, and Knox Grammar, as well as nearby parklands and golf courses.

Juliet is currently more than 75 per cent sold ahead of its anticipated completion in late 2026.

[smartcode_project_cta:default project_id=7395]

Joel Robinson

Juliet to sit quietly amid Roseville apartment boom

Sherpa Property Group has unveiled the third instalment of its Flourish series, securing full approval for the two-tower, $500 million Flourish Soleira development in Palm Beach.

<a href="https://www.apartments.com.au/new-apartments/flourish-soleira-1150-1154-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a> will rise from a prominent site in the commercial heart of Palm Beach, the long-time home of Cash Converters and a range of local retailers.

The project will introduce a new retail and dining precinct at ground level, beneath 286 apartments.

[smartcode_project:default project_id=150017 project_image_fid=370959]

“We’re very committed to not only providing affordable residential offerings that are much needed in Palm Beach, but also delivering a vibrant new commercial heart that complements the extraordinary growth of the southern Gold Coast,” Sherpa Property Group founder Christie Leet said.

The development will sit under Sherpa's Flourish brand, which is aimed at providing a pathway into the beachside suburb for locals, first-home buyers and downsizers. In a move designed to assist first-home buyers entering the market, Sherpa has reserved all one and two-bedroom, one-bathroom apartments exclusively for eligible first-home buyers.

[smartcode_project:default project_id=150017 project_image_fid=370964]

“Our vision through Flourish is to create a vibrant retail and lifestyle focal point within the Palm Beach centre zone, delivering thriving communities underpinned by lifestyle-rich locations,” Leet said.

“So far, Flourish has been an incredible success, and we hope to carry this momentum as we progress the next two Flourish projects in Palm Beach.”

[smartcode_project:default project_id=150017 project_image_fid=371430]

Located across 1150-1164 Gold Coast Highway and 3 Sixth Avenue, the development will comprise two towers. The northern tower will deliver 154 apartments, while the southern tower will add a further 132 residences, helping address ongoing demand for new apartments in the tightly held coastal suburb.

Flourish Soleira will also feature the most extensive rooftop amenity offering ever delivered in Palm Beach.

The two towers will be connected by a skybridge, with residents gaining access to a rooftop recreation deck featuring a full-width swimming pool, hot and cold plunge pools, wellness spaces, a gymnasium, private dining facilities, massage treatment rooms, barbecue areas, a basketball court, golf simulator, indoor and outdoor dining spaces, sun lounges and extensive landscaping.

LPS Group is expected to start construction later this year.

Sherpa is already well advanced on construction of its debut Flourish project, Flourish Amargo, located just around the corner from Soleira. Meanwhile, Flourish Oasis, positioned opposite Amargo, recently commenced construction and has nearly sold out its collection of 47 apartments.

[smartcode_project_cta:default project_id=150017]

Sherpa unveils $500m mixed-use Palm Beach precinct, Flourish Soleira

Are mortgage holders set to get a reprieve from the RBA in 2026?

Big Four bank NAB believes so. They are now expecting the next move from the RBA to be a cut, rather than a hike, which they had pencilled in for August. They are unsure of the timing of the cut however, they note in their latest&nbsp;NAB Economics RBA Watch.

NAB Chief Economist, Dr Sally Auld, said recent data suggests the economy has lost momentum and the outlook for rates has shifted, noting that the broader economic backdrop has changed since earlier in the year.

“The next move in the cash rate is likely to be down, but the timing is uncertain," Dr Auld said.

"In February, growth was above trend, the economy was operating above capacity and there was uncertainty over the restrictiveness of rates. None of these conditions exist today,” she outlined.

Dr Auld said recent data pointed to softer momentum across the economy while acknowledging that at the same time, uncertainty remains a key feature of the outlook.

“Both Q1 GDP data and the NAB business survey suggest momentum in the economy has slowed, meaning that growth has likely peaked for the cycle. That said, we are cognisant there is still considerable uncertainty around the outlook, both with respect to activity and inflation.”

Dr Auld said inflation risks and labour market outcomes would be important to watch.

“On the prices side, we are still forecasting above target core inflation through to mid-2027. Margins will compress and weaker labour market outcomes are a risk.”

She said tighter financial conditions are expected to weigh on housing and activity.

“Tighter financial conditions will be reflected in a slowing in house price growth and housing credit growth. In summary, we have greater conviction that the next move in rates is down, but less conviction on the timing.”

Mortgage relief? NAB forecasts RBA rate cut, not hike, after softer economic conditions

A local downsizer has splashed $6.5 million on a penthouse in Perifa's Alex &amp; Willow development in Crows Nest. 
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The purchaser sold their long-held family home in the area before embarking on a six-month search for the right apartment. After inspecting a range of options across the Lower North Shore, the buyer returned to <a href="https://www.apartments.com.au/new-apartments/alex-willow-crows-nest-82-90-alexander-street-crows-nest-nsw-2065">Alex &amp; Willow</a>. 
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The buyer profile reflects the project’s broader purchaser mix. <a>Alex &amp; Willow</a> has attracted predominantly local downsizers looking to transition from larger homes without compromising on space or quality, alongside a smaller cohort of upsizers and investors drawn to the project’s location and design credentials. 
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The milestone sale comes as the project, developed by&nbsp;<a href="https://www.apartments.com.au/developers/perifa">Perifa</a>&nbsp;and delivered by <a href="https://www.apartments.com.au/builders/versatile-made-construction">Versatile Construction</a>, both part of Versatile Group, reaches 60 per cent sold.

[smartcode_project:default project_id=6680 project_image_fid=371325] 
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Eddie Mansour, Managing Partner of <a href="https://www.apartments.com.au/project-marketer/ray-white-projects">Ray White Projects</a>, said the result demonstrates not only a headline price but also depth of demand. 
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“This is an exceptional outcome and a clear reflection of sustained buyer demand for premium, well-located downsizer product,” Mansour said.

“We’re seeing a consistent pattern of local homeowners selling family residences and reinvesting into high-quality apartments that allow them to remain within their community. Alex &amp; Willow has resonated strongly with this group because it offers genuine scale, thoughtful design and immediate proximity to the village.” 
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The sale reflects a broader and consistent trend of local downsizers actively seeking high-quality, low-maintenance residences close to established village centres. Agents report that demand for this product type has remained resilient, particularly where developments offer a rare combination of scale, design quality and walkable amenity. 
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Fabrizio Perilli, Managing Director of Perifa and Versatile Group, said the sale marks a defining moment for the project. 
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“The penthouse sale is a strong endorsement of the quality we have delivered, alongside our partners, and the clear demand from local downsizers for premium, boutique residences in this location,” Perilli said.&nbsp; 
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“Most importantly, we’re proud to see the Alex &amp; Willow community beginning to take shape. As we move closer to completion, we’re looking forward to welcoming residents and seeing the project come to life.”&nbsp;

[smartcode_project:default project_id=6680 project_image_fid=338516] 
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Designed by <a href="https://www.apartments.com.au/architects/nettletontribe">Nettleton Tribe</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/richards-stanisich">Richards Stanisich</a>, Alex &amp; Willow is a boutique collection of generously sized two- and three-bedroom residences in the heart of Crows Nest village.&nbsp;

Completion is slated for early 2027.

[smartcode_project_cta:default project_id=6680]

Alex & Willow, Crows Nest penthouse sells off the plan for $6.5 million

Fresh from launching the first stage of its Wollongong precinct, <a href="https://www.apartments.com.au/new-apartments/keira-place-wollongong-120-122-smith-street-wollongong-nsw-2500">Keira Place</a>, builder-developer Urban Property Group has unveiled plans for the next phase of the masterplanned community.

Now on public exhibition through the NSW Government's Housing Delivery Authority pathway is a State Significant Development Application for a further 657 homes on the prominent gateway site opposite Beaton Park.

The proposal comprises three buildings, including two build-to-sell towers rising 25 and 30 storeys, delivering 391 apartments, alongside a 12-storey co-living building with 266 residences, making it one of the largest co-living proposals currently planned in regional New South Wales.

Of the apartments proposed in the build-to-sell towers, the majority, 310, are two-bedroom dwellings. The balance comprises 44 one-bedroom apartments and 37 three-bedroom residences. Apartment sizes range from around 50 sqm for one-bedroom homes to approximately 90 sqm for three-bedroom apartments.

<img alt="Smith St" data-entity-type="file" data-entity-uuid="19347059-1612-41a0-9c74-b86a657237f8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-10%20at%2010.02.18%E2%80%AFAM.png?VersionId=sWXnaCcA.cIC6N8YT1dg5pJ2e1V3Z6z7" />

The submission says the proposal has evolved significantly from its original Housing Delivery Authority application following extensive consultation with the State Design Review Panel and Wollongong City Council.

The final scheme has been designed to align with the emerging vision for the Flinders Street Precinct, an area identified by Council as a future high-density mixed-use neighbourhood capable of accommodating substantial housing growth close to transport, employment and community infrastructure.

According to the design report prepared by COX Architecture, the development aims to "deliver a built outcome consistent with the future character of the Wollongong CBD while responding to the site's unique constraints and opportunities."

"Our vision for the next phase of the site evolution in Wollongong is grounded in three design pillars that guide the design response: place, natural environment and celebration," COX said.

"Inspired by its surroundings and grounded in the stories of place on Wodi Wodi Country, the design proposal acknowledges the established character of its setting while creating a unique and timeless identity that sits harmoniously within it.

"The design proposal responds to its specific site conditions, acknowledging the vegetation, climate, wind conditions and solar access of the site."

The architecture responds directly to the site's position between Wollongong's urban core and its natural landscape setting.

COX identified views towards Mount Keira and the Illawarra Escarpment as defining features of the site, while the upper levels of the towers will also capture expansive views across the city and out to the Pacific Ocean.

The design team has positioned the tallest buildings closer to the rail corridor, where overshadowing impacts can be better managed while establishing a landmark built form on the northern approach into the city.

<img alt="Smith St" data-entity-type="file" data-entity-uuid="79580d5b-500c-4ebf-9629-797146a4a694" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-10%20at%209.51.59%E2%80%AFAM.png?VersionId=WbTB1EKSG.KDfsfz0F3wp1QVa2oCMGR5" />

Urban Property Group secured the 11,000 sqm Smith Street site in 2022 and has since progressed plans for the broader Keira Place precinct.

Construction recently commenced on the first stage of Keira Place, which will deliver 150 apartments across two residential buildings, including 27 affordable housing apartments and 18 specialist disability accommodation dwellings, alongside activated ground-floor retail and commercial space.

Urban Co-CEO Patrick Elias said the commencement of construction marked a significant milestone for Wollongong and reflected the developer's long-term commitment to regional cities.

"Today's groundbreaking is about turning approvals into homes and moving quickly to deliver much-needed housing in Wollongong's city centre," Elias said.

"Keira Place will provide a diverse mix of homes close to jobs, transport and services, while setting a high benchmark for quality, durability and consumer protection."

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/groundbreaking-marks-start-of-construction-at-keira-place-in-wollongong-cbd">Groundbreaking marks start of construction at Keira Place in Wollongong CBD</a>

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Prateek Chatterjee

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