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Rental yields on houses in Australia's two biggest cities of Sydney and Melbourne are down to record low levels, increasing the risks for property investors and ultimately, residential mortgage-backed securities (RMBS), according to new report by Moody's Investors Service.
Low rental yields have increased net costs in servicing a housing investment relative to incomes, making investment properties less affordable, says Moody's in its just-released report on Australian RMBS titled, Record Low Rental Yields Increase Risks for Residential Property Investors. 
Net costs refer to investment loans costs less rental income.
Nearly half of the investor loan mortgages backing Australian RMBS were originated in Sydney and Melbourne. Housing investment loans account for 32% of the mortgages backing Australian RMBS. 
"Deteriorating affordability increases the risks for Australian residential property investors and therefore for residential mortgage-backed securities backed by loans on investment properties," said JP Truijens, assistant vice-president at Moody's.
"The deteriorating affordability of servicing investment properties makes residential property investors more vulnerable to risks such as loss of income, interest rate increases, vacancies or rent reductions, and therefore increases their probability of default." 
According to the report, deteriorating affordability also reduces investors' flexibility around refinancing or restructuring their mortgage loan terms, giving them less options should they experience hardship.
On average, the net annual cost of servicing an investment in a median-priced three-bedroom house in Sydney funded with an 80% loan- to-value (LTV) mortgage was $41,300 as of 31 December 2015, up 78% from three years earlier. In Melbourne, the cost was $26,674, up 63% from three years earlier.
Investors in Sydney houses require 39.6% of net household income to service their investment properties, while Melbourne house investors require 26.5%, both record highs. 
For investments in median-priced two bedroom apartments in Sydney, the average net annual servicing cost was $16,270 as of end-2015, up 70% from three years earlier. In Melbourne, the cost was $15,147, up 35% from three years earlier. 4
Investors in Sydney apartments require 16.7% of net household income to service their property investments - the highest in a decade - while Melbourne apartment investors require 15.5%, a record high. 
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The fall in rental yields has increased the level of 'cashflow' losses suffered by residential property investors over the past three years and made them dependent on greater levels of house price appreciation to cover their losses.
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A greater dependency on price appreciation makes residential property investing, and in turn, investment loans more risky.
Moody's says the performance of residential property investment loans will deteriorate through 2016 and 2017. Investment loans taken in 2014 and 2015 - at the peak of the recent house price cycle - will be behind this deterioration, it adds.
The credit rating agency also does not expect any major improvement in the cost of servicing property investment loans in the near term.
The negative impact of low rental yields and the deteriorating affordability of servicing property investments will be most evident in RMBS issued in 2016 and 2017.
Australian RMBS portfolios are typically made up of loans that are one to two years seasoned and so the bulk of the 2014 and 2015 investor loans to be securitised will be found in 2016 and 2017 vintage RMBS.
 
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prateek24-ezbwHMbNAk

Record-low rental yields in Sydney, Melbourne increase default risk for investors: Moody's report

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Chinese investment in Australia returned to positive growth in 2015, with commercial real estate making up for the drop in investment in the mining sector, says a new report by KPMG Australia and the University of Sydney.
The return of the mega deal, with seven investments of $500 million or more during the year, helped propel the total value of investment to US$11.1 billion ($15.09 billion), a 32.9 percent increase on the previous year in US$ terms (or a 59.5 percent increase in AU$).
This was the second highest inflow year for new Chinese investment into Australia, behind the previous peak driven by mining sector investment in 2008, says the latest Demystifying Chinese Investment in Australia, analysing Chinese outbound direct investment into Australia in 2015. 
On an international stage, Australia maintained its position as the second largest recipient of aggregated Chinese direct investment between 2005 and 2015, behind the United States, attracting a cumulative US$78.7 billion during the period.
In Australia, commercial real estate remained dominant for the second year in a row, accounting for 45 percent of the total deal volume. Commercial real estate investment grew to $6.85 billion from $4.37 billion in 2014. NSW attracted 94 percent of this investment, with investors focusing more on long-term development projects.
China Investment Corporation’s $2.45 billion purchase of Investa Office Portfolio was the major deal of the year in this sector.
<img src="/images/2016/04/11/Screen%20Shot%202016-04-11%20at%2010.29.04%20AM.png" alt="" width="471" height="370">
This year’s report also includes new research analysing the sentiment and attitudes of Chinese investors towards the Australian market.
“Following two years of moderately declining Chinese investment, the resurgence of interest and the diversification by Chinese companies in 2015 is a strong endorsement of the attractiveness of Australia’s economy. Alongside continued interest in the NSW and Victorian commercial real estate sectors, there has been activity and major deals in renewables, agribusiness, and for the first time, healthcare,” said report co-author, Doug Ferguson, head of KPMG Australia’s Asia and International Markets.
Professor Hans Hendrischke, Professor of Chinese Business &amp; Management at the University of Sydney Business School commented, “Our research has also shown that, for Chinese companies looking to expand internationally, Australia is seen as a strong first port of call."
The year also saw a lowering of the Foreign Investment Review Board limits for mandatory approval for agricultural land acquisition and the rejection of an application from a Chinese investor to purchase S Kidman &amp; Co – illustrating the sensitive and very public debate over investment in this sector. Nonetheless, Chinese investors are expected to remain strongly interested in Australian agribusiness.
Chinese investment in Australian infrastructure sector continued during the year, with the major deal being the 99-year lease of the Darwin Port to the Landbridge Group for $506 million. The outlook continues to look positive, with Chinese companies attracted to the strong local pipeline of opportunities offering relatively safe returns and a longer term investment horizon for co-operation.
Overall, Chinese investors remain bullish on Australia, with 65 percent saying their 3 year outlook is positive, and 55 percent planning to increase their Australian holdings in 2016.
 
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Commercial real estate tops Chinese investment in Australia in 2015: report

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The fringe property market of Canberra has undergone significant development within the past 24 months, say valuation firm Herron Todd White in their April 2016 property clock. 
The once greenfield sites on the fringes of the city are now being developed into well planned and flourishing suburbs providing opportunity for owner-occupiers, investors and government housing alike.
The Gungahlin district near the ACT and NSW border is considered a fringe location by many locals due to its relatively new development and up until 2010 consisted of only five suburbs which were developed in the mid 1990s. Gungahlin is now a thriving area with half a dozen new suburbs emerging in the past five years.
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One of the newest suburbs to be developed is Moncrieff which is still under construction. Local demand for vacant land in Moncrieff was so high that 77 residential blocks were sold within three minutes and many potential purchasers missed out. The average price of a vacant land in Moncrieff was $280,000. Naturally one of the factors causing such high demand in the fringe areas is the high prices being achieved in areas closer to the CBD.
In the past 24 months, we have seen a massive hike in prices for older stock within the Inner north and inner south precincts. For example, buyers have been purchasing older dated homes for $700,000 plus and then knocking them down in order to build a more modern custom-designed home, which essentially means they are paying $700,000 just for land.
For entry-level buyers it is hard to compete in these areas therefore they have ventured to areas such as Gungahlin which allows them to buy vacant blocks and build their dream homes at a much more affordable price. Gungahlin is tipped for strong growth in the next decade with the first stage of the light rail designed to cater to the Gungahlin region and due to be complete by 2020. With transport being a key factor in the success of a fringe area the long-term expectations for Gungahlin are strong in relation to other fringe areas in Canberra.
Property Observer found a few examples of recent sales in Canberra's fringes:
<img src="/images/2016/04/11/700_canberra.jpg" alt="" width="550" height="334">
1. A two-bedroom apartment at <a href="https://www.realestate.com.au/property-apartment-act-gungahlin-120611081">24/80 Gozzard Street Gungahlin ACT 2912</a> (above) sold for $331,000
<img src="/images/2016/04/11/main-1.jpg" alt="" width="656" height="492">
2. A three-bedroom villa at <a href="https://www.realestate.com.au/property-house-act-gungahlin-121991866" target="_blank">78 Mary Gillespie Gungahlin ACT 2912</a> (above) sold for $522,000 recently.
Across Canberra 69 auctions were held this week with a 64 percent sales success including the $1,515,000 sale of the former bolthole of the former Federal Treasurer Joe Hockey.
Over the three months to December 2015, 7.6 percent of Canberra homes re-sold at a loss compared to 11.2 percent over the previous quarter and 10.9 percent a year earlier, according to the latest Pain &amp; Gain report from Core Logic RP Data.
The median price for a house in Forrest is $2,150,000, according to CoreLogic RP Data.
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Canberra's fringe suburbs seeing spike in home prices: HTW

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Broken Hill tops CoreLogic RP Data's latest list for top NSW investor rental yields.
Median Gross Yield
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<th>Suburb</th>
<th>Median Rent</th>
<th>Gross Yield</th>
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<td>Broken Hill</td>
<td>$230</td>
<td>10.1%</td>
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<td>Cobar</td>
<td>$280</td>
<td>9.1%</td>
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<td>Tuross Head</td>
<td>$580</td>
<td>8.6%</td>
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<td>West Wyalong</td>
<td>$240</td>
<td>8.5%</td>
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<td>Malua Bay</td>
<td>$700</td>
<td>8.2%</td>
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<td>Condobolin</td>
<td>$238</td>
<td>8.0%</td>
</tr>
<tr>
<td>Darlington Point</td>
<td>$228</td>
<td>7.9%</td>
</tr>
<tr>
<td>Wellington</td>
<td>$210</td>
<td>7.8%</td>
</tr>
</tbody>
</table>
Property Observer profiles Broken Hill in NSW from a rental perspective.
The median sale price of a house in Broken Hill was $118,000, compared with a national average of $485,000. 
The median price change over one year was 10.50 percent.
While Median Rent was $230pw against a national average of $395, the median gross yield was 10.1 percent. 
Property Observer went looking for dwellings around the median price up for rent or rented and came up with these: 
<img src="/images/2016/04/11/Screen%20Shot%202016-04-11%20at%208.43.05%20AM.png" alt="" width="830" height="537"> 
1. A furnished three-bedroom house at <a href="https://www.realestateview.com.au/rental-properties/10-king-street-broken-hill-nsw/property-details-rent-residential-9844026" target="_blank">10 King Street</a> (above) is up for rent for $250 pw, at a rental yield of about 13 percent. This property sold for $99,000 in June 2015.
<img src="/images/2016/04/11/hill2.jpg" alt="" width="574" height="381">
 
2. A two-bedroom house at <a href="https://www.realestateview.com.au/rental-properties/49-bonanza-street-broken-hill-nsw/property-details-rent-residential-9844025" target="_blank">49 Bonanza Street</a> (above) has a rental of $240 pw. This one sold way back in 2004 for $55,000, according to CoreLogic RP Data.
<img src="/images/2016/04/11/hill3.jpg" alt="" width="575" height="349">
3. A three-bedroom house at <a href="https://www.realestateview.com.au/rental-properties/628-argent-street-broken-hill-nsw/property-details-rent-residential-9844024" target="_blank">628 Argent Street</a> (above) matches the median rental of $230 pw, and yields 13.3 percent. This one last traded for $90,000 in 2014.
<img src="/images/2016/04/11/hill4.jpg" alt="" width="578" height="379">
 
4. A three-bedroom house at <a href="https://www.realestateview.com.au/rental-properties/38-cummins-street-broken-hill-nsw/property-details-rent-residential-9835311" target="_blank">38 Cummins Street</a> (above) is also available for $230 pw. The last sale price for the property was $142,000 back in 2005.
<img src="/images/2016/04/11/hill5.jpg" alt="" width="563" height="342">
 
5. Another three-bedroom house at <a href="https://www.realestateview.com.au/rental-properties/627-chapple-lane-broken-hill-nsw/property-details-rent-residential-9810772" target="_blank">627 Chapple Lane</a> (above) is available for $220 pw. This last traded price for this property was $35,500 in 2003, CoreLogic RP Data shows.
 
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Broken Hill tops property rental yields at 10 percent

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A pair of office towers across the road from Redfern train station has planning approval to be redesigned for new apartments. 
An application to redesign and reconfigure the existing towers for residential and commercial uses at 1 Lawson Square Redfern was approved in 2014.
The modification, approved by the Department of Planning and Environment, will change the plans to allow for:
* a reduction in the width of both towers
* changes to the internal layouts of each floor of both towers
* six additional residential apartments to the original approval, an increase from 156 to 162 apartments
* amending the proposed design and materials for the external facades of the buildings to include concrete, marble, glazing and metal balustrades
A department spokesperson said the modification application was publicly available on its website and referred to the City of Sydney Council between December 2015 and January 2016.
“Key issues raised during consultation include privacy for nearby residences, size and adequacy of the revised apartments, the new façade design and proposed materials,” a spokesperson said.
“To address the issue of privacy for neighbouring properties the Department has requested south-facing windows to be treated with privacy screens and has included a new condition requiring all window sills in Tower 1 to be 1.7 metres in height.
“In addition to the reconfigured layout which will produce apartments of an acceptable size, the Department has requested larger balconies.
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Redfern office towers to be redesigned into residential apartments

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Home buyers continued to take advantage of low interest rates with a greater proportion fixing their home loans in the first three months of the year, according to a report released by ASX-listed Australian Finance Group.
The start of calendar 2016 has seen lending for fixed rate products peak at 17.7 percent of AFG’s total volume for the quarter, according to the company's Mortgage Index.
By comparison, the percentage of those fixing their rates in the first quarter of the 2016 financial year was 11.4 percent. 
“With sections of the money market making the call of a rate cut in the coming months there are some very attractive fixed rates available. With rates being at historical lows the downside risk of fixing is relatively small so many borrowers are choosing to lock in now,” said Mark Hewitt, AFG general manager, Sales and Operations.
“Despite this month’s decision by the Reserve Bank of Australia to leave the cash rate on hold at a record low 2% there are also no guarantees lenders won’t make their own moves outside the RBA cycle. Some are talking about increased funding and regulatory costs and locking the low rates in now is a way borrowers can insulate themselves against any out of cycle increases by the banks. This quarter has also seen investor numbers on the rise again, with an increase from 31 percent of AFG’s total volume to 33 percent as lenders return to the investor market having fallen below the growth cap set by the regulator last year.”
AFG’s overall volume was up 5.7 percent on the same quarter in 2015, with Victoria leading the states with an increase of 15.7 percent, followed by SA up 11.3 percent, NSW up 10.5 percent and Queensland recording a rise of 7.6 percent. The resources downturn has hit WA activity with that state recording a drop of 16.7 percent and NT dropping by 28 percent on the same time last year.
“In a positive message for the health of the lending market, the average LVR (loan to value ratio) of 68 percent is the lowest it has been for three years,” said Hewitt.
“This means homebuyers are continuing to borrow within their capabilities.”
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Fixed rates for home mortgage in favour: AFG index

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Construction company Sekisui House announced that it has received development approval at their $750 million ‘The Hermitage’ in Sydney's Gledswood Hills for a nine-hole Par 3 golf course and driving range, the first of its kind in Australia to be created by golf legend Greg Norman.
The $11 million golf course to Sydney’s south-west is a collaboration between Sekisui House, Greg Norman Golf Course Design and club operator, Wests Campbelltown. 
<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/2016/04/8/700_golf.jpg" alt="" width="563" height="296">
Stretching over 1,365 metres, with an average distance of 152 metres for each hole, the golf course will also include a commercial driving range and practice facilities. 
Construction is expected to start in mid-2016, with a public opening earmarked for early 2018.
Greg Norman Golf Course Design was established in 1987 and is considered a leading signature golf course design firm. It has opened more than 90 courses globally.
“The Hermitage estate is the idyllic location to showcase my unique and wholly sustainable golf course designs while providing award-winning facilities for the residents and the local community. I have a deep-rooted passion for continuing to develop and support the game of golf in Australia,” Norman said in a statement.
Since its launch of The Hermitage in 2012, Sekisui House has sold more than 870 lots.
<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/2016/04/8/700_norman.jpg" alt="" width="581" height="353">
The Hermitage will feature 35 hectares of open green space and established trees (the equivalent of nearly 80 football pitches), 10 distinct park locations, two golf courses including an 18 and 9 hole golf course set over 120 hectares, a new public primary school accommodating up to 1,000 pupils and the future ‘Gledswood Village’ that will include amenities including groceries, cafes, health care, a country club and restaurants.
The Hermitage is about 55 km from Sydney’s CBD and 35 km from Parramatta. It will have a projected population of over 6,000 people living within 2,000 homes and completion is expected in 2022.
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Sekisui House gets nod for Australia's first Greg Norman nine-hole course

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The home auction market is picking up after the slight pause for Easter holidays, with 1,677 capital city homes scheduled to go under the hammer this week, according to CoreLogic RP Data.
While Sydney had more auctions than Melbourne over the past two weeks, this week, Melbourne’s auction activity is set to rise, bringing the total number of residential auctions to 730, as opposed to the 624 scheduled for Sydney.
Auction volumes remain relatively steady across the remaining capital cities.
<img src="/images/2016/04/8/Screen%20Shot%202016-04-08%20at%2010.03.30%20AM.png" alt="" width="314" height="196">
Melbourne's 730 auction figure will be well ahead of last weekend’s 482 listings and higher than the 562 auctioned over the same weekend last year, wrote Domain Group’s chief economist Dr Andrew Wilson in his blog. 
Although auction activity is on the rise, overall autumn listings will likely remain below the levels recorded last year over the same period. Falling interest rates a year ago were a catalyst for a surge in housing market activity in Melbourne. 
The west will again clearly host the highest number of auctions this weekend with 126.  The north-east is next highest with 111 followed by the outer east (91), the inner south  (88), the inner city (82), the north (77), the inner east (54) and the south-east with 53 auctions.
Mount Waverley has the highest number of auctions listed this weekend, with 16, followed by Preston with 14, Reservoir and East Bentleigh, each with 13, Pascoe Vale with 10 and a number of suburbs with nine auctions scheduled including Glen Waverley, Essendon, Noble Park and Hawthorn.
The robust Melbourne home auction market resumed last weekend without missing a beat following the Easter holiday break.
Melbourne recorded a clearance rate of 73.8 per cent, which was just below the 74.1 per cent recorded on the pre-Easter weekend a fortnight ago and also below the boom-time 77.5 per cent recorded over the same post-Easter weekend last year.
Last Saturday’s result was just below the average weekend rate of 75.4 per cent recorded over the previous nine Saturdays, with a high of 79.2 per cent and a low of 73.4 per cent reported over that period.
Low interest rates continue to fuel buyer activity in both Melbourne and Sydney's housing markets, said Dr Wilson. This week the Reserve Bank predictably decided to leave official rates on hold over April at the record low two per cent for the 11th consecutive month. 
A near-term cut in rates, however, remains on the cards with continuing mixed reports on the health of the national economy. The latest Australian Bureau of Statistics data indicates that the recent home building boom has peaked, the trend for retail sales growth is declining, house prices are flat or falling, inflation remains low in an increasingly lifeless economy and the Australian dollar continues to track well above the preferred levels of policymakers.
Sydney auction numbers are down this weekend with the local market straining to regain momentum after the Easter holidays.
This Saturday, just 509 homes are scheduled to go under the hammer. This is below the 539 listed last weekend and also well below the 535 homes auctioned over the same weekend last year, he said.
Sydney auction levels this autumn remain far below those recorded over the same period last year. Falling interest rates a year ago were a catalyst for an unprecedented surge in housing market activity in Sydney, but so far in 2016 they have remained on hold. 
Sydney’s inner west has the highest number of auctions listed this weekend, with 82, followed by the upper north shore (78), the south (74), the city and east (58), the lower north (56), the south-west (34), the west (31), Canterbury Bankstown (28), the northern beaches (27), the north-west (19) and the central coast (17). The Blue Mountains have no auctions scheduled. 
Mosman, with nine auctions, will be the busiest this weekend followed by Ryde, Randwick, Carlingford, Killara and Marrickville, each with seven, and Blacktown with six. There are also several suburbs with five auctions scheduled on Saturday, including Epping, St Ives, Lane Cove North, Strathfield and Bexley.
The Sydney weekend home auction market returned from the Easter holidays in the same robust form it has consistently produced so far this year, notes Dr Wilson.
Sydney reported a clearance rate of 73.7 per cent last weekend, just below the 74.1 per cent recorded on the pre-Easter weekend the fortnight previous and also below the boom-time 86.8 per cent recorded over the same post-Easter weekend last year.
Last Saturday’s result was just below the average weekend rate of 74.5 per cent recorded over the previous nine Saturdays, with a high of 76.9 per cent and a low of 71 per cent reported over that period.
Over the week ending April 3 there were 1,582 capital city auctions with CoreLogic collecting results for 1,434 auctions, accounting for almost 91% of all auctions.
The final clearance rate was recorded at 66.6% which is down from the previous week and the lowest clearance rate in three weeks. The number of auctions increased from just 554 over the previous week. Excluding Sydney and Melbourne, clearance rates rose in Brisbane, Adelaide and Hobart but fell elsewhere. Auction volumes were also higher this week across all regions except Tasmania. 
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Melbourne sees sharp rise in auctions, but Sydney numbers down

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Developer Oliver Hume Property Funds said it is crafting a millennial-specific approach to new developments, who will make up 43 percent of buyers over the next three years. 
As a result, Oliver Hume will incorporate a ‘lifestyle manager’ into all new developments, such as Nord in North Melbourne, for millennials looking to spend less time on errands and more time socialising and career networking.
According to the Future Leaders Index 2015, 65 percent of millennials say they feel busy often or all of the time, and 61 percent report having difficulty juggling all the elements in their lives.
The Pew Research Center, an American think tank, defines "adult millennials" as those born between 1981 and 1996. 
The Lifestyle Manager is on-site to simplify tasks such as signing for parcels, online shopping, giving tradespeople access, organising dry-cleaning, assisting to organise social events within the building and recommending activities in the area, such as taking one of the apartment’s electric bikes for a ride.
“Given young professionals are the dominant market in North Melbourne, providing these conveniences and benefits has been a key priority for Nord, as we want our residents to be free to enjoy their lives without excessive errands,” says Oliver Hume Property Funds executive chairman Michael Duster.
Nord will launch its leasing campaign on April 16.
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Nord project targets millennials with ‘lifestyle manager’

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Rental property website Rent.com.au Limited (ASX: RNT) is raising more than $5.4 million through a rights issue to fund its offline branding campaign, the company said in a release.
Rent.com will issue up to 36,376,607 shares at $0.15 each and it is a fully underwritten, non‐renounceable pro rata offer.
The issue will raise $5,456,491 (before costs) and the company will have a total of $8.5 million cash (after costs) after completion of the issue.
The highlights of the fund raising are:  
* Demand for sub‐underwriting allocation was heavily oversubscribed
* Funds to be used primarily on commencing offline marketing activities
Rent.com founder and managing director Mark Woschnak said he was pleased with the strong demand from institutional and sophisticated investors. 
“We recently announced that March 2016 was one of our strongest months on record, with the strongest new agent registrations since listing and all‐time highs in the number of unique visitors and also non‐agent listings on the site,” Woschnak said.
“We have a strong Board and executive team, robust and scalable technology and are now well capitalised to further accelerate our commercialisation objectives by commencing offline marketing activities to support our recently deployed national sales team.”
Shareholders as at the Record Date of April 13 will be eligible to buy one additional share for every three they hold at the Record Date, with acceptance forms to be returned by April 28, the media release said.
The issue price of $0.15 per share represents an 18% discount to the 10-day Volume Weighted Average Price (“VWAP”).
Jett Capital Advisors Pty Ltd are the lead manager and underwriter of the Offer, with GMP Securities acting as brokers. 
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Rent.com.au to raise $5.45 million through rights issue

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.

Joel Robinson

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.

[smartcode_project:default project_id=152737 project_image_fid=377679]

The project will comprise three residential towers alongside a hotel, restaurants, cafes and a skybar, more than 1,600 sqm of ground-floor retail and almost an acre of landscaped gardens.

It represents the largest project undertaken by Reve Group, the development arm of the Kassis family, which has been building across the Hills District for more than 30 years through Kassis Homes.

[smartcode_project:default project_id=152737 project_image_fid=377675]

Nova Rêve also represents a significant step up from the family's first apartment development, Grand Rêve, which was delivered nearby on Garthowen Crescent.

Grand Rêve introduced larger, house-like apartment layouts and premium inclusions including Wolf and Sub-Zero appliances to the Castle Hill market.

Nova Rêve takes that approach to a precinct scale, combining the residential component with hospitality, retail and substantial public and resident landscaping.

[smartcode_project:default project_id=152737 project_image_fid=377685]

Reve Group Managing Director Sam Kassis said the project reflected the family's three decades of building in the Hills, which has evolved from trophy homes on quarter-acre blocks to larger-scale apartment development.

"Grand Rêve was our first apartment project here and it showed us what this pocket of Castle Hill could be. Nova Rêve is the refinement of that idea: not just apartments, but a place the whole suburb can use," Kassis said.

A key part of that approach is the hotel, which has been designed to operate as an amenity for the wider Castle Hill community rather than solely hotel guests.

It will include restaurants, cafes, skybars and all-day dining, alongside conference and event facilities catering to business functions, community groups and private events.

At ground level, more than 1,600 sqm of shops and cafes will open onto the surrounding streets and landscaped areas.

Almost an acre of gardens designed by Land and Form Studios will run through the precinct, incorporating pathways, seating, barbecue areas and children's play spaces.

[smartcode_project:default project_id=152737 project_image_fid=377680]

Reve Group's Romio Georges said creating an active ground plane had been central to the planning of Nova Rêve.

"There are gardens with pathways, barbecues, seating and play areas, shops and cafes opening onto the street, and a hotel with restaurants and a skybar that anyone in Castle Hill can walk into," Georges said.

The project's elevated position on one of Sydney's highest ridgelines will also provide apartments with outlooks toward the Sydney skyline, surrounding parkland and the Blue Mountains.

More than 80 per cent of the apartments will occupy corner positions, with Turner responsible for both the architecture and interiors.

&nbsp;

[smartcode_project_cta:default project_id=152737]

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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.

[smartcode_project:default project_id=150999 project_image_fid=374005]

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.

[smartcode_project:default project_id=150999 project_image_fid=374002]

“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.

[smartcode_project_cta:default project_id=150999]

Prateek Chatterjee

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